8-K
Westamerica Bancorporation (WABC)
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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): January 16, 2020
_______________________________
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 January 16, 2020, 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 January 16, 2020
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: January 16, 2020 | By: | /s/ JESSE LEAVITT |
| Jesse Leavitt | ||
| Vice President and Chief Financial Officer |
EdgarFiling EXHIBIT 99.1
Westamerica Bancorporation Reports Fourth Quarter 2019 Financial Results
SAN RAFAEL, Calif., Jan. 16, 2020 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the fourth quarter 2019 of $20.7 million and diluted earnings per common share ("EPS") of $0.77. These results compare to net income of $20.4 million and EPS of $0.75 for the third quarter 2019 and net income of $19.1 million and EPS of $0.71 for the fourth quarter 2018.
“The annualized net interest margin was 3.08 percent during the fourth quarter 2019. Our annualized funding costs as a percentage of our interest-earning assets improved from 0.04 percent for the third quarter 2019 to 0.03 percent for the fourth quarter 2019. Operating expense represented only 46 percent of revenues for the fourth quarter 2019. Asset quality remained healthy during the fourth quarter 2019 with nonperforming assets totaling only $4.9 million at December 31, 2019,” said Chairman, President and CEO David Payne. “Annualized fourth quarter operating results generated a return on average shareholders’ equity of 11.8 percent, and the Company also paid its shareholders a $0.41 dividend per common share in the fourth quarter,” concluded Payne.
Net interest income on a fully-taxable equivalent (FTE) basis was $40.5 million for the fourth quarter 2019, compared to $40.3 million for the third quarter 2019 and $40.3 million for the fourth quarter 2018. The annualized net interest margin (FTE) was 3.08 percent for the fourth quarter 2019, compared to 3.11 percent for the third quarter 2019 and 3.06 percent for the fourth quarter 2018. Checking and savings deposits, which pay much lower interest rates than time deposits, represented ninety-six percent of the Company’s average deposit base during the fourth quarter 2019.
The Company recognized no provision for loan losses for the fourth quarter 2019 given low levels of nonperforming loans and other credit quality attributes.
Noninterest income for the fourth quarter 2019 totaled $11.7 million, compared to $11.8 million for the third quarter 2019, and $11.9 million for the fourth quarter 2018.
Noninterest expense for the fourth quarter 2019 totaled $24.2 million, compared to $24.0 million for the third quarter 2019. Noninterest expense for the fourth quarter 2019 was $1.6 million lower than the fourth quarter 2018 due to lower employee benefit costs, FDIC insurance assessments, and intangible amortization in the fourth quarter 2019. Lower 2019 FDIC assessments are due to application of Westamerica Bank’s assessment credit described in our December 31, 2018 Form 10-K, Part 1, Item 1, “Premiums for Deposit Insurance.”
The tax rate (FTE) applied to pre-tax income (FTE) was 26.0 percent for the fourth quarter 2019 compared to 27.5 percent for the third quarter 2019 and 27.8 percent for the fourth quarter 2018. The fourth quarter 2019 tax provision was reduced by $352 thousand resulting from a customary adjustment to true-up the Company’s 2018 estimated tax provision to the filed 2018 tax return.
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 – 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, 2018 filed on Form 10-K and quarterly report for the quarter ended September 30, 2019 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.
| Public Information January 16, 2020 | |||||
|---|---|---|---|---|---|
| WESTAMERICA BANCORPORATION | |||||
| FINANCIAL HIGHLIGHTS | |||||
| December 31, 2019 | |||||
| 1. Net Income Summary. | |||||
| % | |||||
| Q4'2018 | Change | Q3'2019 | |||
| Net Interest and Fee Income (FTE) | 40,288 | 0.5 | % | 40,349 | |
| Provision for Loan Losses | n/m | ||||
| Noninterest Income | -1.4 | % | |||
| Noninterest Expense | -6.1 | % | |||
| Income Before Taxes (FTE) | 6.1 | % | |||
| Income Tax Provision (FTE) | -0.9 | % | |||
| Net Income | 19,055 | 8.8 | % | 20,390 | |
| Average Common Shares Outstanding | 1.2 | % | |||
| Diluted Average Common Shares | 1.0 | % | |||
| Operating Ratios: | |||||
| Basic Earnings Per Common Share | 0.71 | 7.9 | % | 0.76 | |
| Diluted Earnings Per Common Share | 6.3 | % | |||
| Return On Assets (a) | |||||
| Return On Common Equity (a) | |||||
| Net Interest Margin (FTE) (a) | |||||
| Efficiency Ratio (FTE) | |||||
| Dividends Paid Per Common Share | 0.40 | 2.5 | % | 0.41 | |
| Common Dividend Payout Ratio | |||||
| % | |||||
| 12/31'18YTD | Change | ||||
| Net Interest and Fee Income (FTE) | 155,410 | 3.9 | % | ||
| Provision for Loan Losses | n/m | ||||
| Noninterest Income | -1.5 | % | |||
| Noninterest Expense | -7.4 | % | |||
| Income Before Taxes (FTE) | 13.6 | % | |||
| Income Tax Provision (FTE) | 17.4 | % | |||
| Net Income | 71,564 | 12.3 | % | ||
| Average Common Shares Outstanding | 1.2 | % | |||
| Diluted Average Common Shares | 0.9 | % | |||
| Operating Ratios: | |||||
| Basic Earnings Per Common Share | 2.69 | 10.8 | % | ||
| Diluted Earnings Per Common Share | 11.6 | % | |||
| Return On Assets | |||||
| Return On Common Equity | |||||
| Net Interest Margin (FTE) | |||||
| Efficiency Ratio (FTE) | |||||
| Dividends Paid Per Common Share | 1.60 | 1.9 | % | ||
| Common Dividend Payout Ratio | |||||
| 2. Net Interest Income. | |||||
| % | |||||
| Q4'2018 | Change | Q3'2019 | |||
| Interest and Fee Income (FTE) | 40,802 | 0.3 | % | 40,804 | |
| Interest Expense | -12.3 | % | |||
| Net Interest and Fee Income (FTE) | 40,288 | 0.5 | % | 40,349 | |
| Average Earning Assets | 5,270,708 | -0.5 | % | 5,176,744 | |
| Average Interest- | |||||
| Bearing Liabilities | -3.4 | % | |||
| Yield on Earning Assets (FTE) (a) | |||||
| Cost of Funds (a) | |||||
| Net Interest Margin (FTE) (a) | |||||
| Interest Expense/ | |||||
| Interest-Bearing Liabilities (a) | |||||
| Net Interest Spread (FTE) (a) | |||||
| % | |||||
| 12/31'18YTD | Change | ||||
| Interest and Fee Income (FTE) | 157,369 | 3.8 | % | ||
| Interest Expense | -3.6 | % | |||
| Net Interest and Fee Income (FTE) | 155,410 | 3.9 | % | ||
| Average Earning Assets | 5,212,635 | -0.4 | % | ||
| Average Interest- | |||||
| Bearing Liabilities | -3.4 | % | |||
| Yield on Earning Assets (FTE) | |||||
| Cost of Funds | |||||
| Net Interest Margin (FTE) | |||||
| Interest Expense/ | |||||
| Interest-Bearing Liabilities | |||||
| Net Interest Spread (FTE) | |||||
| 3. Loans & Other Earning Assets. | |||||
| % | |||||
| Q4'2018 | Change | Q3'2019 | |||
| Total Assets | 5,680,321 | -0.6 | % | 5,570,843 | |
| Total Earning Assets | -0.5 | % | |||
| Total Loans | -6.2 | % | |||
| Commercial Loans | -19.0 | % | |||
| Commercial RE Loans | -0.2 | % | |||
| Consumer Loans | -5.9 | % | |||
| Total Investment Securities | 2.7 | % | |||
| Equity Securities | n/m | ||||
| Debt Securities Available For Sale | 12.8 | % | |||
| Debt Securities Held To Maturity | -24.0 | % | |||
| Total Interest-Bearing Cash | -13.8 | % | |||
| Loans/Deposits | |||||
| % | |||||
| 12/31'18YTD | Change | ||||
| Total Assets | 5,620,618 | -0.4 | % | ||
| Total Earning Assets | -0.4 | % | |||
| Total Loans | -3.9 | % | |||
| Commercial Loans | -15.1 | % | |||
| Commercial RE Loans | 3.6 | % | |||
| Consumer Loans | -6.4 | % | |||
| Total Investment Securities | 3.6 | % | |||
| Equity Securities | -46.9 | % | |||
| Debt Securities Available For Sale | 13.6 | % | |||
| Debt Securities Held To Maturity | -19.9 | % | |||
| Total Interest-Bearing Cash | -23.7 | % | |||
| Loans/Deposits | |||||
| 4. Deposits, Other Interest-Bearing Liabilities & Equity. | |||||
| % | |||||
| Q4'2018 | Change | Q3'2019 | |||
| Total Deposits | 4,917,901 | -1.6 | % | 4,770,976 | |
| Noninterest Demand | -0.0 | % | |||
| Interest-Bearing Transaction | -0.5 | % | |||
| Savings | -3.1 | % | |||
| Time greater than 100K | -12.6 | % | |||
| Time less than 100K | -14.0 | % | |||
| Total Short-Term Borrowings | -25.9 | % | |||
| Shareholders' Equity | 7.5 | % | |||
| Demand Deposits/ | |||||
| Total Deposits | |||||
| Transaction & Savings | |||||
| Deposits / Total Deposits | |||||
| % | |||||
| 12/31'18YTD | Change | ||||
| Total Deposits | 4,872,081 | -1.4 | % | ||
| Noninterest Demand | 0.6 | % | |||
| Interest-Bearing Transaction | 0.5 | % | |||
| Savings | -3.6 | % | |||
| Time greater than 100K | -16.8 | % | |||
| Time less than 100K | -13.5 | % | |||
| Total Short-Term Borrowings | -14.3 | % | |||
| Shareholders' Equity | 7.1 | % | |||
| Demand Deposits/ | |||||
| Total Deposits | |||||
| Transaction & Savings | |||||
| Deposits / Total Deposits | |||||
| 5. Interest Yields Earned & Rates Paid. | |||||
| Income/ | Yield (a) / | ||||
| Expense | Rate | ||||
| Interest & Fee Income Earned | |||||
| Total Earning Assets (FTE) | 40,932 | 3.11 | % | ||
| Total Loans (FTE) | 5.05 | % | |||
| Commercial Loans (FTE) | 5.09 | % | |||
| Commercial RE Loans | 5.40 | % | |||
| Consumer Loans | 4.41 | % | |||
| Total Investments (FTE) | 2.67 | % | |||
| Total Interest-Bearing Cash | 1.63 | % | |||
| Interest Expense Paid | |||||
| Total Earning Assets | 0.03 | % | |||
| Total Interest-Bearing Liabilities | 0.07 | % | |||
| Total Interest-Bearing Deposits | 0.07 | % | |||
| Interest-Bearing Transaction | 0.04 | % | |||
| Savings | 0.06 | % | |||
| Time less than 100K | 0.24 | % | |||
| Time greater than 100K | 0.42 | % | |||
| Total Short-Term Borrowings | 0.08 | % | |||
| Net Interest Income and | |||||
| Margin (FTE) | 40,481 | 3.08 | % | ||
| Income/ | Yield (a) / | ||||
| Expense | Rate | ||||
| Interest & Fee Income Earned | |||||
| Total Earning Assets (FTE) | 40,802 | 3.10 | % | ||
| Total Loans (FTE) | 4.97 | % | |||
| Commercial Loans (FTE) | 5.41 | % | |||
| Commercial RE Loans | 5.29 | % | |||
| Consumer Loans | 4.09 | % | |||
| Total Investments (FTE) | 2.59 | % | |||
| Total Interest-Bearing Cash | 2.23 | % | |||
| Interest Expense Paid | |||||
| Total Earning Assets | 0.04 | % | |||
| Total Interest-Bearing Liabilities | 0.08 | % | |||
| Total Interest-Bearing Deposits | 0.08 | % | |||
| Interest-Bearing Transaction | 0.05 | % | |||
| Savings | 0.06 | % | |||
| Time less than 100K | 0.24 | % | |||
| Time greater than 100K | 0.39 | % | |||
| Total Short-Term Borrowings | 0.06 | % | |||
| Net Interest Income and | |||||
| Margin (FTE) | 40,288 | 3.06 | % | ||
| 6. Noninterest Income. | |||||
| % | |||||
| Q4'2018 | Change | Q3'2019 | |||
| Service Charges on Deposits | 4,496 | -2.7 | % | 4,510 | |
| Merchant Processing Services | -0.7 | % | |||
| Debit Card Fees | -6.9 | % | |||
| Trust Fees | 3.8 | % | |||
| ATM Processing Fees | -1.0 | % | |||
| Other Service Fees | -17.3 | % | |||
| Financial Services Commissions | 9.7 | % | |||
| Securities Gains | n/m | ||||
| Other Income | 1.3 | % | |||
| Total Noninterest Income | 11,897 | -1.4 | % | 11,809 | |
| Total Revenue (FTE) | 52,185 | 0.1 | % | 52,158 | |
| Noninterest Income/Revenue (FTE) | |||||
| Service Charges/Avg. Deposits (a) | |||||
| Total Revenues (FTE) Per Avg. | |||||
| Common Share (a) | 7.75 | -1.1 | % | 7.67 | |
| % | |||||
| 12/31'18YTD | Change | ||||
| Service Charges on Deposits | 18,508 | -3.4 | % | ||
| Merchant Processing Services | 5.2 | % | |||
| Debit Card Fees | -4.3 | % | |||
| Trust Fees | 0.9 | % | |||
| ATM Processing Fees | 0.9 | % | |||
| Other Service Fees | -12.2 | % | |||
| Life Insurance Gains | -26.0 | % | |||
| Financial Services Commissions | -21.4 | % | |||
| Securities Gains (Losses) | n/m | ||||
| Other Income | -1.9 | % | |||
| Total Noninterest Income | 48,149 | -1.5 | % | ||
| Total Revenue (FTE) | 203,559 | 2.6 | % | ||
| Noninterest Income/Revenue (FTE) | |||||
| Service Charges/Avg. Deposits | |||||
| Total Revenues (FTE) Per Avg. | |||||
| Common Share | 7.64 | 1.4 | % | ||
| 7. Noninterest Expense. | |||||
| % | |||||
| Q4'2018 | Change | Q3'2019 | |||
| Salaries & Benefits | 13,055 | -5.8 | % | 12,559 | |
| Occupancy and Equipment | -4.5 | % | |||
| Outsourced Data Processing | 2.7 | % | |||
| Professional Fees | 19.3 | % | |||
| Courier Service | 18.6 | % | |||
| Amortization of | |||||
| Identifiable Intangibles | -83.7 | % | |||
| Other Operating | -12.6 | % | |||
| Total Noninterest Expense | 25,787 | -6.1 | % | 24,033 | |
| Noninterest Expense/ | |||||
| Avg. Earning Assets (a) | |||||
| Noninterest Expense/Revenues (FTE) | |||||
| % | |||||
| 12/31'18YTD | Change | ||||
| Salaries & Benefits | 53,007 | -3.7 | % | ||
| Occupancy and Equipment | 2.9 | % | |||
| Outsourced Data Processing | 2.6 | % | |||
| Professional Fees | -13.3 | % | |||
| Courier Service | 5.6 | % | |||
| Loss Contingency (1) | n/m | ||||
| Amortization of | |||||
| Identifiable Intangibles | -72.0 | % | |||
| Other Operating | -14.5 | % | |||
| Total Noninterest Expense | 106,916 | -7.4 | % | ||
| Noninterest Expense/ | |||||
| Avg. Earning Assets | |||||
| Noninterest Expense/Revenues (FTE) | |||||
| 8. Allowance for Loan Losses. | |||||
| % | |||||
| Q4'2018 | Change | Q3'2019 | |||
| Average Total Loans | 1,189,744 | -6.2 | % | 1,142,668 | |
| Allowance for Loan Loss (ALL) | |||||
| Beginning of Period | 22,027 | -10.0 | % | 20,117 | |
| Provision for Loan Losses | n/m | ||||
| Net ALL Losses | n/m | ||||
| ALL End of Period | 21,351 | -8.7 | % | 19,828 | |
| Gross ALL Recoveries / | |||||
| Gross ALL Losses | |||||
| Net ALL Losses / | |||||
| Avg. Total Loans (a) | |||||
| % | |||||
| 12/31'18YTD | Change | ||||
| Average Total Loans | 1,209,167 | -3.9 | % | ||
| Allowance for Loan Loss (ALL) | |||||
| Beginning of Period | 23,009 | -7.2 | % | ||
| Provision for Loan Losses | n/m | ||||
| Net ALL Losses | n/m | ||||
| ALL End of Period | 21,351 | -8.7 | % | ||
| Gross ALL Recoveries / | |||||
| Gross ALL Losses | |||||
| Net ALL Losses / | |||||
| Avg. Total Loans | |||||
| 9. Credit Quality. | |||||
| % | |||||
| 12/31/18 | Change | 9/30/19 | |||
| Nonperforming Loans: | |||||
| Nonperforming Nonaccrual | 998 | -34.0 | % | 633 | |
| Performing Nonaccrual | -2.3 | % | |||
| Total Nonaccrual Loans | -8.8 | % | |||
| 90+ Days Past Due Accruing Loans | -20.1 | % | |||
| Total | -9.9 | % | |||
| Repossessed Loan Collateral | -87.6 | % | |||
| Total Nonperforming Assets | 5,769 | -14.7 | % | 4,697 | |
| Total Loans Outstanding | 1,207,202 | -6.7 | % | 1,133,229 | |
| Total Assets | 5,568,526 | 0.9 | % | 5,616,055 | |
| Loans: | |||||
| Allowance for Loan Losses | 21,351 | -8.7 | % | 19,828 | |
| Allowance/Loans | |||||
| Nonperforming Loans/Total Loans | |||||
| 10. Capital. | |||||
| % | |||||
| 12/31/18 | Change | 9/30/19 | |||
| Shareholders' Equity | 615,591 | 18.8 | % | 713,378 | |
| Total Assets | 0.9 | % | |||
| Shareholders' Equity/ | |||||
| Total Assets | |||||
| Shareholders' Equity/ | |||||
| Total Loans | |||||
| Tangible Common Equity Ratio | |||||
| Common Shares Outstanding | 1.2 | % | |||
| Common Equity Per Share | 23.03 | 17.4 | % | 26.41 | |
| Market Value Per Common Share | 55.68 | 21.7 | % | 62.18 | |
| Share Repurchase Programs | |||||
| % | |||||
| Q4'2018 | Change | Q3'2019 | |||
| Total Shares Repurchased | n/m | ||||
| Average Repurchase Price | n/m | ||||
| Net Shares Issued | n/m | ||||
| % | |||||
| 12/31'18YTD | Change | ||||
| Total Shares Repurchased | n/m | ||||
| Average Repurchase Price | 58.46 | n/m | |||
| Net Shares Issued | n/m | ||||
| 11. Period-End Balance Sheets. | |||||
| % | |||||
| 12/31/18 | Change | 9/30/19 | |||
| Assets: | |||||
| Cash and Due from Banks | 420,284 | -11.2 | % | 415,639 | |
| Investment Securities: | |||||
| Equity Securities | n/m | ||||
| Debt Securities Available For Sale | 16.0 | % | |||
| Debt Securities Held to Maturity | -25.0 | % | |||
| Loans | -6.7 | % | |||
| Allowance For Loan Losses | -8.7 | % | |||
| Total Loans, net | -6.6 | % | |||
| Other Real Estate Owned | -87.6 | % | |||
| Premises and Equipment, net | 0.3 | % | |||
| Identifiable Intangibles, net | -27.9 | % | |||
| Goodwill | 0.0 | % | |||
| Other Assets | 0.9 | % | |||
| Total Assets | 5,568,526 | 0.9 | % | 5,616,055 | |
| Liabilities and Shareholders' Equity: | |||||
| Deposits: | |||||
| Noninterest-Bearing | 2,243,251 | -0.1 | % | 2,265,640 | |
| Interest-Bearing Transaction | 0.3 | % | |||
| Savings | -1.8 | % | |||
| Time | -13.3 | % | |||
| Total Deposits | -1.1 | % | |||
| Short-Term Borrowed Funds | -39.6 | % | |||
| Other Liabilities | 27.9 | % | |||
| Total Liabilities | -1.3 | % | |||
| Shareholders' Equity: | |||||
| Common Equity: | |||||
| Paid-In Capital | 3.7 | % | |||
| Accumulated Other | |||||
| Comprehensive Income (Loss) | n/m | ||||
| Retained Earnings | 16.2 | % | |||
| Total Shareholders' Equity | 18.8 | % | |||
| Total Liabilities and | |||||
| Shareholders' Equity | 5,568,526 | 0.9 | % | 5,616,055 | |
| 12. Income Statements. | |||||
| % | |||||
| Q4'2018 | Change | Q3'2019 | |||
| Interest & Fee Income: | |||||
| Loans | 14,783 | -4.6 | % | 14,431 | |
| Investment Securities: | |||||
| Equity Securities | 5.0 | % | |||
| Debt Securities Available for Sale | 19.0 | % | |||
| Debt Securities Held to Maturity | -26.3 | % | |||
| Interest-Bearing Cash | -29.9 | % | |||
| Total Interest & Fee Income | 1.1 | % | |||
| Interest Expense: | |||||
| Transaction Deposits | -28.2 | % | |||
| Savings Deposits | -5.3 | % | |||
| Time Deposits | -9.6 | % | |||
| Short-Term Borrowed Funds | -16.5 | % | |||
| Total Interest Expense | -12.2 | % | |||
| Net Interest Income | 1.3 | % | |||
| Provision for Loan Losses | n/m | ||||
| Noninterest Income: | |||||
| Service Charges | -2.7 | % | |||
| Merchant Processing Services | -0.7 | % | |||
| Debit Card Fees | -6.9 | % | |||
| Trust Fees | 3.8 | % | |||
| ATM Processing Fees | -1.0 | % | |||
| Other Service Fees | -17.3 | % | |||
| Financial Services Commissions | 9.7 | % | |||
| Securities Gains | n/m | ||||
| Other | 1.3 | % | |||
| Total Noninterest Income | -1.4 | % | |||
| Noninterest Expense: | |||||
| Salaries and Benefits | -5.8 | % | |||
| Occupancy and Equipment | -4.5 | % | |||
| Outsourced Data Processing | 2.7 | % | |||
| Professional Fees | 19.3 | % | |||
| Courier Service | 18.6 | % | |||
| Amortization of Identifiable Intangibles | -83.7 | % | |||
| Other | -12.6 | % | |||
| Total Noninterest Expense | -6.1 | % | |||
| Income Before Income Taxes | 7.6 | % | |||
| Income Tax Provision | 3.9 | % | |||
| Net Income | 19,055 | 8.8 | % | 20,390 | |
| Average Common Shares Outstanding | 1.2 | % | |||
| Diluted Common Shares Outstanding | 1.0 | % | |||
| Per Common Share Data: | |||||
| Basic Earnings | 0.71 | 8.5 | % | 0.76 | |
| Diluted Earnings | 7.0 | % | |||
| Dividends Paid | 2.5 | % | |||
| % | |||||
| 12/31'18YTD | Change | ||||
| Interest & Fee Income: | |||||
| Loans | 59,030 | -1.5 | % | ||
| Investment Securities: | |||||
| Equity Securities | 10.9 | % | |||
| Debt Securities Available for Sale | 22.8 | % | |||
| Debt Securities Held to Maturity | -20.9 | % | |||
| Interest-Bearing Cash | -11.8 | % | |||
| Total Interest & Fee Income | 4.6 | % | |||
| Interest Expense: | |||||
| Transaction Deposits | 13.2 | % | |||
| Savings Deposits | -5.5 | % | |||
| Time Deposits | -10.3 | % | |||
| Short-Term Borrowed Funds | -6.9 | % | |||
| Total Interest Expense | -3.6 | % | |||
| Net Interest Income | 4.7 | % | |||
| Provision for Loan Losses | n/m | ||||
| Noninterest Income: | |||||
| Service Charges | -3.4 | % | |||
| Merchant Processing Services | 5.2 | % | |||
| Debit Card Fees | -4.3 | % | |||
| Trust Fees | 0.9 | % | |||
| ATM Processing Fees | 0.9 | % | |||
| Other Service Fees | -12.2 | % | |||
| Life Insurance Gains | -26.0 | % | |||
| Financial Services Commissions | -21.4 | % | |||
| Securities Gains (Losses) | n/m | ||||
| Other | -1.9 | % | |||
| Total Noninterest Income | -1.5 | % | |||
| Noninterest Expense: | |||||
| Salaries and Benefits | -3.7 | % | |||
| Occupancy and Equipment | 2.9 | % | |||
| Outsourced Data Processing | 2.6 | % | |||
| Professional Fees | -13.3 | % | |||
| Courier Service | 5.6 | % | |||
| Loss Contingency (1) | n/m | ||||
| Amortization of Identifiable Intangibles | -72.0 | % | |||
| Other | -14.5 | % | |||
| Total Noninterest Expense | -7.4 | % | |||
| Income Before Income Taxes | 15.6 | % | |||
| Income Tax Provision | 27.8 | % | |||
| Net Income | 71,564 | 12.3 | % | ||
| Average Common Shares Outstanding | 1.2 | % | |||
| Diluted Common Shares Outstanding | 0.9 | % | |||
| Per Common Share Data: | |||||
| Basic Earnings | 2.69 | 10.8 | % | ||
| Diluted Earnings | 11.6 | % | |||
| Dividends Paid | 1.9 | % | |||
| Footnotes and Abbreviations: | |||||
| (1) In the second quarter 2019 and third quarter 2018, the Company recorded 553 thousand and 3.5 million in loss contingencies, respectively. The loss contingencies recorded in the second quarter 2019 include a 301 thousand increase in estimated customer refunds of revenue recognized prior to 2018 and a 252 thousand loss settlement to dismiss a lawsuit. The loss contingency recorded in the third quarter 2018 was the result of a mediated settlement to dismiss a lawsuit. The Company does not anticipate additional losses for these matters. | |||||
| (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 | |||||
| Certain amounts in prior periods have been reclassified to conform to the current presentation. |
All values are in US Dollars.