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8-K

Westamerica Bancorporation (WABC)

8-K 2021-07-15 For: 2021-07-15
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________

FORM 8-K

_________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  July 15, 2021

_______________________________

WESTAMERICA BANCORPORATION

(Exact name of registrant as specified in its charter)

_______________________________

California 001-09383 94-2156203
(State or Other Jurisdiction of Incorporation) (Commission File Number) (I.R.S. Employer Identification No.)

1108 Fifth Avenue

San Rafael, California 94901

(Address of Principal Executive Offices) (Zip Code)

(707) 863-6000

(Registrant's telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

_______________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, no par value WABC The Nasdaq Stock Market, LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition. On July 15, 2021, the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

Exhibit 99.1 Press release dated July 15, 2021
Exhibit 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

WESTAMERICA BANCORPORATION
Date: July 15, 2021 By: /s/ Jesse Leavitt
Jesse Leavitt
Senior Vice President and Chief Financial Officer

EdgarFiling EXHIBIT 99.1

Westamerica Bancorporation Reports Second Quarter 2021 Financial Results

SAN RAFAEL, Calif., July 15, 2021 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the second quarter 2021 of $22.6 million and diluted earnings per common share ("EPS") of $0.84. Second quarter 2021 results include “make-whole” interest income on corporate bonds redeemed prior to maturity, which increased EPS $0.04. These results compare to net income of $20.1 million and EPS of $0.75 for the first quarter 2021, which included “make-whole” interest income on corporate bonds redeemed before maturity that increased EPS $0.02.

"Westamerica continued originating loans for our customers under the second round of the Paycheck Protection Program during the second quarter 2021. Average total deposits grew $327 million from the first quarter 2021 to the second quarter 2021. Westamerica’s valuable deposit base generated a very low 0.03 percent annualized cost of funding our loan and bond portfolios during the second quarter 2021. Operating expenses were well managed in the second quarter 2021 declining $615 thousand from the first quarter 2021 and $463 thousand from the second quarter 2020. Credit quality remained stable with nonperforming loans of $4.4 million at June 30, 2021,” said Chairman, President and CEO David Payne. “Second quarter 2021 results generated an annualized 12.2 percent return on average common equity, and shareholders were paid a $0.41 per common share dividend during the quarter,” concluded Payne.

Net interest income on a fully-taxable equivalent (FTE) basis was $44.5 million for the second quarter 2021, including “make-whole” interest income on corporate bonds redeemed prior to maturity of $1.4 million. Second quarter 2021 net interest income (FTE) compares to $42.6 million for the first quarter 2021, which included “make-whole” interest income on corporate bonds redeemed prior to maturity of $700 thousand. Average PPP loans grew $19 million from the first quarter 2021 to the second quarter 2021. Average total deposits grew $327 million from the first quarter 2021 to the second quarter 2021. Checking and savings deposits represented ninety-seven percent of the Company’s average deposit base during the second quarter 2021.

At June 30, 2021, nonperforming loans totaled $4.4 million and the allowance for credit losses on loans was $23.7 million. The Company continues to work with loan customers requesting loan payment deferrals due to economic weakness caused by the pandemic. At June 30, 2021, loans with deferred payments totaled $586 thousand, all of which were consumer automobile loans.

Noninterest income for the second quarter 2021 totaled $11.0 million, compared to noninterest income for the first quarter 2021 of $10.2 million. The increase in noninterest income was primarily due to higher levels of merchant processing services fees and debit card fees.

Noninterest expense for the second quarter 2021 was $24.3 million compared to $24.9 million for the first quarter 2021; the decline in noninterest expense was primarily attributable to the seasonal decline in payroll related taxes.

Westamerica Bancorporation’s wholly owned subsidiary Westamerica Bank, operates commercial banking and trust offices throughout Northern and Central California.

Westamerica Bancorporation Web Address: www.westamerica.com

For additional information contact: Westamerica Bancorporation 1108 Fifth Avenue, San Rafael, CA 94901 Robert A. Thorson – SVP & Treasurer 707-863-6840 investments@westamerica.com

FORWARD-LOOKING INFORMATION:

The following appears in accordance with the Private Securities Litigation Reform Act of 1995:

This press release may contain forward-looking statements about the Company, including descriptions of plans or objectives of its management for future operations, products or services, and forecasts of its revenues, earnings or other measures of economic performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may."

Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors — many of which are beyond the Company's control — could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. The Company's most recent reports filed with the Securities and Exchange Commission, including the annual report for the year ended December 31, 2020 filed on Form 10-K and quarterly report for the quarter ended March 31, 2021 filed on Form 10-Q, describe some of these factors, including certain credit, interest rate, operational, liquidity and market risks associated with the Company's business and operations. Other factors described in these reports include changes in business and economic conditions, competition, fiscal and monetary policies, disintermediation, cyber security risks, legislation including the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2011, the Sarbanes-Oxley Act of 2002 and the Gramm-Leach-Bliley Act of 1999, and mergers and acquisitions.

Forward-looking statements speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date forward looking statements are made.

WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
June 30, 2021
1. Net Income Summary.
%
Q2'2020 Change Q1'2021
Net Interest and Fee Income (FTE) 44,499 $ 42,063 5.8 % $ 42,583
Provision for Credit Losses - - n/m -
Noninterest Income 11,032 9,554 15.5 % 10,189
Noninterest Expense 24,291 24,754 -1.9 % 24,906
Income Before Taxes (FTE) 31,240 26,863 16.3 % 27,866
Income Tax Provision (FTE) 8,661 7,301 18.6 % 7,719
Net Income 22,579 $ 19,562 15.4 % $ 20,147
Average Common Shares Outstanding 26,865 26,935 -0.3 % 26,821
Diluted Average Common Shares 26,887 26,951 -0.2 % 26,842
Operating Ratios:
Basic Earnings Per Common Share 0.84 $ 0.72 16.7 % $ 0.75
Diluted Earnings Per Common Share 0.84 0.72 16.7 % 0.75
Return On Assets (a) 1.29 % 1.30 % 1.23 %
Return On Common Equity (a) 12.2 % 11.1 % 11.1 %
Net Interest Margin (FTE) (a) 2.70 % 2.99 % 2.74 %
Efficiency Ratio (FTE) 43.7 % 48.0 % 47.2 %
Dividends Paid Per Common Share 0.41 $ 0.41 0.0 % $ 0.41
Common Dividend Payout Ratio 49 % 57 % 55 %
%
6/30'20YTD Change
Net Interest and Fee Income (FTE) 87,082 $ 82,610 5.4 %
Provision for Credit Losses - 4,300 n/m
Noninterest Income 21,221 21,202 0.1 %
Noninterest Expense 49,197 49,418 -0.4 %
Income Before Taxes (FTE) 59,106 50,094 18.0 %
Income Tax Provision (FTE) 16,380 13,570 20.7 %
Net Income 42,726 $ 36,524 17.0 %
Average Common Shares Outstanding 26,843 27,001 -0.6 %
Diluted Average Common Shares 26,865 27,024 -0.6 %
Operating Ratios:
Basic Earnings Per Common Share 1.59 $ 1.35 17.8 %
Diluted Earnings Per Common Share 1.59 1.35 17.8 %
Return On Assets (a) 1.26 % 1.25 %
Return On Common Equity (a) 11.6 % 10.4 %
Net Interest Margin (FTE) (a) 2.72 % 3.04 %
Efficiency Ratio (FTE) 45.4 % 47.6 %
Dividends Paid Per Common Share 0.82 $ 0.82 0.0 %
Common Dividend Payout Ratio 52 % 61 %
2. Net Interest Income.
%
Q2'2020 Change Q1'2021
Interest and Fee Income (FTE) 44,983 $ 42,498 5.8 % $ 43,058
Interest Expense 484 435 11.3 % 475
Net Interest and Fee Income (FTE) 44,499 $ 42,063 5.8 % $ 42,583
Average Earning Assets 6,603,343 $ 5,635,014 17.2 % $ 6,244,622
Average Interest-
Bearing Liabilities 3,298,221 2,774,450 18.9 % 3,130,227
Yield on Earning Assets (FTE) (a) 2.73 % 3.02 % 2.77 %
Cost of Funds (a) 0.03 % 0.03 % 0.03 %
Net Interest Margin (FTE) (a) 2.70 % 2.99 % 2.74 %
Interest Expense/
Interest-Bearing Liabilities (a) 0.06 % 0.06 % 0.06 %
Net Interest Spread (FTE) (a) 2.67 % 2.96 % 2.71 %
%
6/30'20YTD Change
Interest and Fee Income (FTE) 88,041 $ 83,487 5.5 %
Interest Expense 959 877 9.4 %
Net Interest and Fee Income (FTE) 87,082 $ 82,610 5.4 %
Average Earning Assets 6,424,973 $ 5,438,578 18.1 %
Average Interest-
Bearing Liabilities 3,214,688 2,711,515 18.6 %
Yield on Earning Assets (FTE) (a) 2.75 % 3.07 %
Cost of Funds (a) 0.03 % 0.03 %
Net Interest Margin (FTE) (a) 2.72 % 3.04 %
Interest Expense/
Interest-Bearing Liabilities (a) 0.06 % 0.07 %
Net Interest Spread (FTE) (a) 2.69 % 3.00 %
3. Loans & Other Earning Assets.
%
Q2'2020 Change Q1'2021
Total Assets 7,004,695 $ 6,058,365 15.6 % $ 6,650,164
Total Earning Assets 6,603,343 5,635,014 17.2 % 6,244,622
Total Loans 1,257,087 1,232,073 2.0 % 1,251,540
Total Commercial Loans 413,797 344,053 20.3 % 395,473
Paycheck Protection Program (PPP) Loans 207,515 132,500 56.6 % 188,971
Commercial Loans 206,282 211,553 -2.5 % 206,502
Commercial RE Loans 546,470 578,572 -5.5 % 559,191
Consumer Loans 296,820 309,448 -4.1 % 296,876
Total Investment Securities 4,394,169 3,957,851 11.0 % 4,440,621
Debt Securities Available For Sale 3,953,016 3,293,009 20.0 % 3,947,549
Debt Securities Held To Maturity 441,153 664,842 -33.6 % 493,072
Total Interest-Bearing Cash 952,087 445,090 113.9 % 552,461
Loans/Deposits 20.7 % 23.7 % 21.8 %
%
6/30'20YTD Change
Total Assets 6,828,409 $ 5,856,913 16.6 %
Total Earning Assets 6,424,973 5,438,578 18.1 %
Total Loans 1,254,328 1,178,004 6.5 %
Total Commercial Loans 404,685 283,718 42.6 %
PPP Loans 198,294 66,250 199.3 %
Commercial Loans 206,391 217,468 -5.1 %
Commercial RE Loans 552,795 579,157 -4.6 %
Consumer Loans 296,848 315,129 -5.8 %
Total Investment Securities 4,417,267 3,901,868 13.2 %
Debt Securities Available For Sale 3,950,298 3,214,376 22.9 %
Debt Securities Held To Maturity 466,969 687,492 -32.1 %
Total Interest-Bearing Cash 753,378 358,706 110.0 %
Loans/Deposits 21.2 % 23.5 %
4. Deposits, Other Interest-Bearing Liabilities & Equity.
%
Q2'2020 Change Q1'2021
Total Deposits 6,074,730 $ 5,200,475 16.8 % $ 5,748,070
Noninterest Demand 2,888,259 2,496,840 15.7 % 2,713,632
Interest-Bearing Transaction 1,208,584 980,872 23.2 % 1,130,760
Savings 1,822,625 1,558,201 17.0 % 1,746,815
Time greater than 100K 70,750 72,267 -2.1 % 71,241
Time less than 100K 84,512 92,295 -8.4 % 85,622
Total Short-Term Borrowings 111,750 70,116 59.4 % 95,575
Other Borrowed Funds - 699 -100.0 % 214
Shareholders' Equity 744,746 705,882 5.5 % 735,496
Demand Deposits/
Total Deposits 47.5 % 48.0 % 47.2 %
Transaction & Savings
Deposits / Total Deposits 97.4 % 96.8 % 97.3 %
%
6/30'20YTD Change
Total Deposits 5,912,303 $ 5,014,731 17.9 %
Noninterest Demand 2,801,428 2,359,788 18.7 %
Interest-Bearing Transaction 1,169,888 961,295 21.7 %
Savings 1,784,929 1,527,282 16.9 %
Time greater than 100K 70,994 73,058 -2.8 %
Time less than 100K 85,064 93,308 -8.8 %
Total Short-Term Borrowings 103,707 56,223 84.5 %
Other Borrowed Funds 106 349 -69.6 %
Shareholders' Equity 740,147 705,606 4.9 %
Demand Deposits/
Total Deposits 47.4 % 47.1 %
Transaction & Savings
Deposits / Total Deposits 97.4 % 96.7 %
5. Interest Yields Earned & Rates Paid.
Income/ Yield (a) /
Expense Rate (a)
Interest & Fee Income Earned
Total Earning Assets (FTE) 6,603,343 $ 44,983 2.73 %
Total Loans (FTE) 1,257,087 15,168 4.84 %
Total Commercial Loans (FTE) 413,797 4,763 4.62 %
PPP Loans 207,515 2,713 5.25 %
Commercial Loans (FTE) 206,282 2,050 3.98 %
Commercial RE Loans 546,470 6,994 5.13 %
Consumer Loans 296,820 3,411 4.61 %
Total Investments (FTE) 4,394,169 29,556 2.69 %
Total Interest-Bearing Cash 952,087 259 0.11 %
Interest Expense Paid
Total Earning Assets 6,603,343 484 0.03 %
Total Interest-Bearing Liabilities 3,298,221 484 0.06 %
Total Interest-Bearing Deposits 3,186,471 466 0.06 %
Interest-Bearing Transaction 1,208,584 93 0.03 %
Savings 1,822,625 263 0.06 %
Time less than 100K 84,512 42 0.20 %
Time greater than 100K 70,750 68 0.39 %
Total Short-Term Borrowings 111,750 18 0.07 %
Net Interest Income and
Margin (FTE) $ 44,499 2.70 %
Income/ Yield (a) /
Expense Rate (a)
Interest & Fee Income Earned
Total Earning Assets (FTE) 5,635,014 $ 42,498 3.02 %
Total Loans (FTE) 1,232,073 15,376 5.02 %
Total Commercial Loans (FTE) 344,053 4,052 4.74 %
PPP Loans 132,500 1,673 5.07 %
Commercial Loans (FTE) 211,553 2,379 4.52 %
Commercial RE Loans 578,572 7,892 5.49 %
Consumer Loans 309,448 3,432 4.46 %
Total Investments (FTE) 3,957,851 27,009 2.73 %
Total Interest-Bearing Cash 445,090 113 0.10 %
Interest Expense Paid
Total Earning Assets 5,635,014 435 0.03 %
Total Interest-Bearing Liabilities 2,774,450 435 0.06 %
Total Interest-Bearing Deposits 2,703,635 424 0.06 %
Interest-Bearing Transaction 980,872 74 0.03 %
Savings 1,558,201 224 0.06 %
Time less than 100K 92,295 47 0.20 %
Time greater than 100K 72,267 79 0.44 %
Total Short-Term Borrowings 70,116 10 0.06 %
Other Borrowed Funds 699 1 0.35 %
Net Interest Income and
Margin (FTE) $ 42,063 2.99 %
6. Noninterest Income.
%
Q2'2020 Change Q1'2021
Service Charges on Deposits 3,235 $ 3,151 2.6 % $ 3,304
Merchant Processing Services 3,279 2,277 44.0 % 2,560
Debit Card Fees 1,791 1,459 22.8 % 1,601
Trust Fees 827 714 15.8 % 801
ATM Processing Fees 618 518 19.3 % 601
Other Service Fees 491 420 16.9 % 469
Financial Services Commissions 95 123 -22.8 % 70
Securities Gains 34 71 n/m -
Other Noninterest Income 662 821 -19.4 % 783
Total Noninterest Income 11,032 $ 9,554 15.5 % $ 10,189
Total Revenue (FTE) 55,531 $ 51,617 7.6 % $ 52,772
Noninterest Income/Revenue (FTE) 19.9 % 18.5 % 19.3 %
Service Charges/Avg. Deposits (a) 0.21 % 0.24 % 0.23 %
Total Revenues (FTE) Per Avg.
Common Share (a) 8.29 $ 7.71 7.6 % $ 7.98
%
6/30'20YTD Change
Service Charges on Deposits 6,539 $ 7,399 -11.6 %
Merchant Processing Services 5,839 4,635 26.0 %
Debit Card Fees 3,392 2,927 15.9 %
Trust Fees 1,628 1,491 9.2 %
ATM Processing Fees 1,219 1,097 11.1 %
Other Service Fees 960 926 3.7 %
Financial Services Commissions 165 248 -33.5 %
Securities Gains 34 71 n/m
Other Noninterest Income 1,445 2,408 -40.0 %
Total Noninterest Income 21,221 $ 21,202 0.1 %
Total Revenue (FTE) 108,303 $ 103,812 4.3 %
Noninterest Income/Revenue (FTE) 19.6 % 20.4 %
Service Charges/Avg. Deposits (a) 0.22 % 0.30 %
Total Revenues (FTE) Per Avg./
Common Share (a) 8.14 $ 7.73 5.2 %
7. Noninterest Expense.
%
Q2'2020 Change Q1'2021
Salaries & Benefits 12,097 $ 12,900 -6.2 % $ 12,665
Occupancy and Equipment 4,808 4,791 0.4 % 4,880
Outsourced Data Processing 2,425 2,324 4.3 % 2,390
Professional Fees 830 643 29.1 % 942
Courier Service 567 508 11.6 % 504
Amortization of
Identifiable Intangibles 68 73 -6.8 % 69
Other Noninterest Expense 3,496 3,515 -0.5 % 3,456
Total Noninterest Expense 24,291 $ 24,754 -1.9 % $ 24,906
Noninterest Expense/
Avg. Earning Assets (a) 1.48 % 1.77 % 1.62 %
Noninterest Expense/Revenues (FTE) 43.7 % 48.0 % 47.2 %
%
6/30'20YTD Change
Salaries & Benefits 24,762 $ 25,918 -4.5 %
Occupancy and Equipment 9,688 9,723 -0.4 %
Outsourced Data Processing 4,815 4,729 1.8 %
Professional Fees 1,772 1,032 71.7 %
Courier Service 1,071 999 7.2 %
Amortization of
Identifiable Intangibles 137 146 -6.2 %
Other Noninterest Expense 6,952 6,871 1.2 %
Total Noninterest Expense 49,197 $ 49,418 -0.4 %
Noninterest Expense/
Avg. Earning Assets (a) 1.54 % 1.83 %
Noninterest Expense/Revenues (FTE) 45.4 % 47.6 %
8. Allowance for Credit Losses.
%
Q2'2020 Change Q1'2021
Average Total Loans 1,257,087 $ 1,232,073 2.0 % $ 1,251,540
Beginning of Period Allowance for
Credit Losses on Loans (ACLL) 23,483 $ 24,804 -5.3 % $ 23,854
Provision for Credit Losses - - n/m -
Net ACLL Recoveries (Losses) 254 (275 ) -192.4 % (371 )
End of Period ACLL 23,737 $ 24,529 -3.2 % $ 23,483
Gross ACLL Recoveries /
Gross ACLL Losses 176 % 66 % 60 %
Net ACLL (Recoveries) Losses /
Avg. Total Loans (a) -0.08 % 0.09 % 0.12 %
%
6/30'20YTD Change
Average Total Loans 1,254,328 $ 1,178,004 6.5 %
Prior Period ACLL 23,854 $ 19,484 22.4 %
Adoption of ASU 2016-13(1) - 2,017 n/m
Beginning of Period ACLL 23,854 21,501 10.9 %
Provision for Credit Losses - 4,300 n/m
Net ACLL Losses (117 ) (1,272 ) -90.8 %
End of Period ACLL 23,737 $ 24,529 -3.2 %
Gross ACLL Recoveries /
Gross ACLL Losses 91 % 46 %
Net ACLL Losses /
Avg. Total Loans (a) 0.02 % 0.22 %
%
6/30/20 Change 3/31/21
Allowance for Credit Losses on Loans 23,737 $ 24,529 -3.2 % $ 23,483
Allowance for Credit Losses on
HTM Securities 9 16 -44.6 % 9
Total Allowance for Credit Losses 23,746 $ 24,545 -3.3 % $ 23,492
Allowance for Unfunded
Credit Commitments 101 $ 53 90.0 % $ 101
9. Credit Quality.
%
6/30/20 Change 3/31/21
Nonperforming Loans:
Nonperforming Nonaccrual 652 $ 590 10.5 % $ 402
Performing Nonaccrual 3,564 3,643 -2.2 % 3,569
Total Nonaccrual Loans 4,216 4,233 -0.4 % 3,971
90+ Days Past Due Accruing Loans 167 290 -42.4 % 132
Total 4,383 4,523 -3.1 % 4,103
Repossessed Loan Collateral - 43 -100.0 % -
Total Nonperforming Assets 4,383 $ 4,566 -4.0 % $ 4,103
Total Loans Outstanding 1,194,834 $ 1,316,359 -9.2 % $ 1,293,756
Total Assets 7,147,779 6,463,889 10.6 % 6,912,481
Loans:
Allowance for Credit Losses on Loans 23,737 $ 24,529 -3.2 % $ 23,483
Allowance for Credit Losses on Loans /
Loans 1.99 % 1.86 % 1.82 %
Nonperforming Loans/Total Loans 0.37 % 0.34 % 0.32 %
10. Capital.
%
6/30/20 Change 3/31/21
Shareholders' Equity 842,196 $ 808,076 4.2 % $ 812,132
Total Assets 7,147,779 6,463,889 10.6 % 6,912,481
Shareholders' Equity/
Total Assets 11.78 % 12.50 % 11.75 %
Shareholders' Equity/
Total Loans 70.49 % 61.39 % 62.77 %
Tangible Common Equity Ratio 10.24 % 10.81 % 10.15 %
Common Shares Outstanding 26,865 26,933 -0.3 % 26,864
Common Equity Per Share 31.35 $ 30.00 4.5 % $ 30.23
Market Value Per Common Share 58.03 57.42 1.1 % 62.78
Share Repurchase Programs
%
Q2'2020 Change Q1'2021
Total Shares Repurchased - 13 n/m 4
Average Repurchase Price - $ 52.27 n/m $ 61.09
Net Shares Issued (1 ) (1 ) n/m (57 )
%
6/30'20YTD Change
Total Shares Repurchased 4 193 n/m
Average Repurchase Price 61.09 $ 51.50 n/m
Net Shares (Issued) Repurchased (58 ) 129 n/m
11. Period-End Balance Sheets.
%
6/30/20 Change 3/31/21
Assets:
Cash and Due from Banks 939,929 $ 500,820 87.7 % $ 866,457
Debt Securities Available For Sale 4,304,162 3,708,370 16.1 % 3,990,570
Debt Securities Held To Maturity (2) 414,413 638,281 -35.1 % 469,259
Loans 1,194,834 1,316,359 -9.2 % 1,293,756
Allowance For Credit Losses on Loans (23,737 ) (24,529 ) -3.2 % (23,483 )
Total Loans, net 1,171,097 1,291,830 -9.3 % 1,270,273
Other Real Estate Owned - 43 n/m -
Premises and Equipment, net 32,080 34,061 -5.8 % 32,216
Identifiable Intangibles, net 967 1,245 -22.4 % 1,035
Goodwill 121,673 121,673 0.0 % 121,673
Other Assets 163,458 167,566 -2.5 % 160,998
Total Assets 7,147,779 $ 6,463,889 10.6 % $ 6,912,481
Liabilities and Shareholders' Equity:
Deposits:
Noninterest-Bearing 2,872,920 $ 2,702,885 6.3 % $ 2,798,542
Interest-Bearing Transaction 1,200,634 997,593 20.4 % 1,179,484
Savings 1,849,258 1,605,169 15.2 % 1,791,636
Time 153,577 162,765 -5.6 % 154,171
Total Deposits 6,076,389 5,468,412 11.1 % 5,923,833
Short-Term Borrowed Funds 90,043 86,170 4.5 % 95,479
Other Borrowed Funds - - n/m 1,681
Other Liabilities 139,151 101,231 37.5 % 79,356
Total Liabilities 6,305,583 5,655,813 11.5 % 6,100,349
Shareholders' Equity:
Common Equity:
Paid-In Capital 470,365 467,386 0.6 % 469,885
Accumulated Other
Comprehensive Income 86,921 93,732 n/m 68,901
Retained Earnings 284,910 246,958 15.4 % 273,346
Total Shareholders' Equity 842,196 808,076 4.2 % 812,132
Total Liabilities and
Shareholders' Equity 7,147,779 $ 6,463,889 10.6 % $ 6,912,481
12. Income Statements.
%
Q2'2020 Change Q1'2021
Interest & Fee Income:
Loans 15,064 $ 15,278 -1.4 % $ 14,581
Equity Securities 110 103 6.8 % 110
Debt Securities Available For Sale (3) 26,481 22,429 18.1 % 24,889
Debt Securities Held To Maturity 2,362 3,616 -34.7 % 2,598
Interest-Bearing Cash 259 113 129.2 % 138
Total Interest & Fee Income 44,276 41,539 6.6 % 42,316
Interest Expense:
Transaction Deposits 93 74 25.7 % 89
Savings Deposits 263 224 17.4 % 250
Time Deposits 110 126 -12.7 % 120
Short-Term Borrowed Funds 18 10 80.0 % 16
Other Borrowed Funds - 1 -100.0 % -
Total Interest Expense 484 435 11.3 % 475
Net Interest Income 43,792 41,104 6.5 % 41,841
Provision for Credit Losses - - n/m -
Noninterest Income:
Service Charges 3,235 3,151 2.6 % 3,304
Merchant Processing Services 3,279 2,277 44.0 % 2,560
Debit Card Fees 1,791 1,459 22.8 % 1,601
Trust Fees 827 714 15.8 % 801
ATM Processing Fees 618 518 19.3 % 601
Other Service Fees 491 420 16.9 % 469
Financial Services Commissions 95 123 -22.8 % 70
Securities Gains 34 71 n/m -
Other Noninterest Income 662 821 -19.4 % 783
Total Noninterest Income 11,032 9,554 15.5 % 10,189
Noninterest Expense:
Salaries and Benefits 12,097 12,900 -6.2 % 12,665
Occupancy and Equipment 4,808 4,791 0.4 % 4,880
Outsourced Data Processing 2,425 2,324 4.3 % 2,390
Professional Fees 830 643 29.1 % 942
Courier Service 567 508 11.6 % 504
Amortization of Identifiable Intangibles 68 73 -6.8 % 69
Other Noninterest Expense 3,496 3,515 -0.5 % 3,456
Total Noninterest Expense 24,291 24,754 -1.9 % 24,906
Income Before Income Taxes 30,533 25,904 17.9 % 27,124
Income Tax Provision 7,954 6,342 25.4 % 6,977
Net Income 22,579 $ 19,562 15.4 % $ 20,147
Average Common Shares Outstanding 26,865 26,935 -0.3 % 26,821
Diluted Common Shares Outstanding 26,887 26,951 -0.2 % 26,842
Per Common Share Data:
Basic Earnings 0.84 $ 0.72 16.7 % $ 0.75
Diluted Earnings 0.84 0.72 16.7 % 0.75
Dividends Paid 0.41 0.41 0.0 % 0.41
%
6/30'20YTD Change
Interest & Fee Income:
Loans 29,645 $ 29,087 1.9 %
Equity Securities 220 206 6.9 %
Debt Securities Available For Sale (3) 51,370 43,744 17.4 %
Debt Securities Held To Maturity 4,960 7,524 -34.1 %
Interest-Bearing Cash 397 969 -59.0 %
Total Interest & Fee Income 86,592 81,530 6.2 %
Interest Expense:
Transaction Deposits 182 158 15.2 %
Savings Deposits 513 441 16.2 %
Time Deposits 230 259 -11.3 %
Short-Term Borrowed Funds 34 18 88.9 %
Other Borrowed Funds - 1 -100.0 %
Total Interest Expense 959 877 9.4 %
Net Interest Income 85,633 80,653 6.2 %
Provision for Credit Losses - 4,300 n/m
Noninterest Income:
Service Charges 6,539 7,399 -11.6 %
Merchant Processing Services 5,839 4,635 26.0 %
Debit Card Fees 3,392 2,927 15.9 %
Trust Fees 1,628 1,491 9.2 %
ATM Processing Fees 1,219 1,097 11.1 %
Other Service Fees 960 926 3.7 %
Financial Services Commissions 165 248 -33.5 %
Securities Gains 34 71 n/m
Other Operating 1,445 2,408 -40.0 %
Total Noninterest Income 21,221 21,202 0.1 %
Noninterest Expense:
Salaries and Benefits 24,762 25,918 -4.5 %
Occupancy and Equipment 9,688 9,723 -0.4 %
Outsourced Data Processing 4,815 4,729 1.8 %
Professional Fees 1,772 1,032 71.7 %
Courier Service 1,071 999 7.2 %
Amortization of Identifiable Intangibles 137 146 -6.2 %
Other Operating 6,952 6,871 1.2 %
Total Noninterest Expense 49,197 49,418 -0.4 %
Income Before Income Taxes 57,657 48,137 19.8 %
Income Tax Provision 14,931 11,613 28.6 %
Net Income 42,726 $ 36,524 17.0 %
Average Common Shares Outstanding 26,843 27,001 -0.6 %
Diluted Common Shares Outstanding 26,865 27,024 -0.6 %
Per Common Share Data:
Basic Earnings 1.59 $ 1.35 17.8 %
Diluted Earnings 1.59 1.35 17.8 %
Dividends Paid 0.82 0.82 0.0 %
Footnotes and Abbreviations:
(1) Effective January 1, 2020, the Company adopted Accounting Standards Update (ASU) 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments ("CECL"), resulting in a period opening adjustment to the allowance for credit losses for loans and held-to-maturity debt securities, other liabilities, deferred tax assets, and shareholders' equity.
(2) The Company adopted ASU 2016-13, effective January 1, 2020. Debt Securities Held To Maturity of 414,413 thousand at June 30, 2021, 469,259 thousand at March 31, 2021 and 638,281 thousand at June 30, 2020 are net of related reserve for expected credit losses of 9 thousand, 9 thousand and 16 thousand, respectively.
(3) Interest income on Debt Securities Available For Sale included make-whole interest income on called corporate bonds of 1.4 million in the second quarter 2021 and 700 thousand in the first quarter 2021.
(FTE) Fully Taxable Equivalent. The Company presents its net interest margin and net interest income on a FTE basis using the current statutory federal tax rate. Management believes the FTE basis is valuable to the reader because the Company’s loan and investment securities portfolios contain a relatively large portion of municipal loans and securities that are federally tax exempt. The Company’s tax exempt loans and securities composition may not be similar to that of other banks, therefore in order to reflect the impact of the federally tax exempt loans and securities on the net interest margin and net interest income for comparability with other banks, the Company presents its net interest margin and net interest income on a FTE basis.
(a) Annualized

All values are in US Dollars.

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