SAN RAFAEL, Calif., Jan. 18, 2018 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the fourth quarter 2017 of $4.2 million and diluted earnings per common share ("EPS") of $0.16. Fourth quarter 2017 results include adjustments to asset values triggered by enactment of the Tax Cuts and Jobs Act of 2017 which reduced EPS $0.48, recognition of a loss contingency which reduced EPS $0.12, and securities gains which increased EPS $0.18. Fourth quarter 2017 results compare to third quarter 2017 net income of $15.0 million and EPS of $0.57, and to fourth quarter 2016 net income of $14.5 million and EPS of $0.56.

"Fourth quarter 2017 net income benefited from higher net interest income; Westamerica's annualized net interest margin on a fully taxable equivalent basis increased to 3.12 percent in the fourth quarter 2017 from 3.10 percent in the third quarter 2017. The margin is supported by a relatively low cost of funding, which has been steady at 0.04 percent of loans and investments from the fourth quarter of 2016 through the fourth quarter 2017. Asset quality remains very high with nonperforming assets totaling only $7.9 million at December 31, 2017 and net loan losses for the year 2017 were just 0.08 percent of average loan balances," said Chairman, President and CEO David Payne.  "After the accounting charges required by the new tax law, Westamerica's capital position remains solid with total capital to assets of 10.7 percent at December 31, 2017 compared to 11.1 percent at September 30, 2017. Westamerica increased its quarterly dividend to $0.40 per common share in the fourth quarter 2017," concluded Payne.

The annualized net interest margin on a fully taxable equivalent basis was 3.12 percent for the fourth quarter 2017, compared to 3.10 percent for the third quarter 2017, and 3.15 percent for the fourth quarter 2016. Net interest income on a fully taxable equivalent basis was $36.6 million for the fourth quarter 2017, compared to $35.7 million for the third quarter 2017, and $36.0 million for the fourth quarter 2016. The annualized funding cost of deposits and other interest-bearing borrowings, as a percentage of average earning assets, was unchanged at 0.04 percent for the fourth quarter 2017, third quarter 2017, and fourth quarter 2016. Checking and savings deposits, which earn relatively low interest rates and are less volatile than time deposits during periods of rising market interest rates, represented 95 percent of average total deposits during the fourth quarter 2017.

The Company recognized no provision for loan losses for the fourth quarter 2017 given stable nonperforming loan volumes and other credit quality attributes. At December 31, 2017, the allowance for loan losses totaled $23.0 million.

Noninterest income for the fourth quarter 2017 totaled $20.3 million, including $8.0 million in securities gains, compared to $12.5 million for the third quarter 2017 and $11.5 million for the fourth quarter 2016. Merchant processing fees were $2.3 million for the fourth quarter 2017, $2.2 million for the third quarter 2017 and $1.7 million for the fourth quarter 2016; the increase is due to successful sales efforts and increased processing volumes.

Noninterest expense for the fourth quarter 2017 totaled $30.2 million, including a $625 thousand impairment of low income housing limited partnership investments due to enactment of the Tax Cuts and Jobs Act of 2017 and a $5.5 million loss contingency accrual. As disclosed in the Company's Form 8-K filed October 19, 2017 and Form 10-Q filed November 3, 2017, the Company has determined that it is obligated to provide refunds of revenue recognized in prior years to some customers; the Company has estimated the probable amount of these obligations and accrued a liability as of December 31, 2017.

The book tax provision on a fully taxable equivalent basis for the fourth quarter 2017 totaled $22.6 million, of which $12.3 million represents the charge to re-measure the Company's net deferred tax asset triggered by enactment of the Tax Cuts and Jobs Act of 2017.

Westamerica Bancorporation, through its 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 Bancorporation1108 Fifth Avenue, San Rafael, CA 94901Robert A. Thorson - SVP & Chief Financial Officer707-863-6840investments@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, 2016 filed on Form 10-K and quarterly report for the quarter ended September 30, 2017 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, 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 18, 2018  
WESTAMERICA BANCORPORATION      
FINANCIAL HIGHLIGHTS        
December 31, 2017        
           
1. Net Income Summary.        
    (in thousands except per-share amounts)
        %  
    Q4'17 Q4'16 Change Q3'17
           
  Net Interest and Fee Income (FTE) $ 36,644   $ 35,959   1.9 % $ 35,680  
  Reversal of Provision for Loan Losses   -     -   n/m     -  
  Noninterest Income 20,300   11,545   75.8 % 12,548  
  Noninterest Expense 30,167   24,577   22.7 % 24,114  
  Income Before Taxes (FTE) 26,777   22,927   16.8 % 24,114  
  Income Tax Provision (FTE) 22,617   8,474   n/m   9,097  
  Net Income $ 4,160   $ 14,453   -71.2 % $ 15,017  
           
  Average Common Shares Outstanding 26,384   25,773   2.4 % 26,309  
  Diluted Average Common Shares 26,538   25,925   2.4 % 26,404  
           
  Operating Ratios:        
  Basic Earnings Per Common Share $ 0.16   $ 0.56   -71.4 % $ 0.57  
  Diluted Earnings Per Common Share 0.16   0.56   -71.4 % 0.57  
  Return On Assets (a) 0.30 % 1.07 %   1.09 %
  Return On Common Equity (a) 2.7 % 10.3 %   9.9 %
  Net Interest Margin (FTE) (a) 3.12 % 3.15 %   3.10 %
  Efficiency Ratio (FTE) 53.0 % 51.7 %   50.0 %
           
  Dividends Paid Per Common Share $ 0.40   $ 0.39   2.6 % $ 0.39  
  Common Dividend Payout Ratio     250 % 70 %   68 %
           
        %  
    12/31'17YTD 12/31'16YTD Change  
           
  Net Interest and Fee Income (FTE) $ 144,118   $ 145,077   -0.7 %  
  Reversal of Provision for Loan Losses   (1,900 )   (3,200 ) n/m    
  Noninterest Income 56,628   46,574   21.6 %  
  Noninterest Expense 103,292   101,752   1.5 %  
  Income Before Taxes (FTE) 99,354   93,099   6.7 %  
  Income Tax Provision (FTE) 49,329   34,246   44.0 %  
  Net Income $ 50,025   $ 58,853   -15.0 %  
           
  Average Common Shares Outstanding 26,291   25,612   2.7 %  
  Diluted Average Common Shares 26,419   25,678   2.9 %  
           
  Operating Ratios:        
  Basic Earnings Per Common Share $ 1.90   $ 2.30   -17.4 %  
  Diluted Earnings Per Common Share 1.89   2.29   -17.5 %  
  Return On Assets 0.92 % 1.12 %    
  Return On Common Equity 8.4 % 10.9 %    
  Net Interest Margin (FTE) 3.12 % 3.24 %    
  Efficiency Ratio (FTE) 51.5 % 53.1 %    
           
  Dividends Paid Per Common Share $ 1.57   $ 1.56   0.6 %  
  Common Dividend Payout Ratio     83 % 68 %    
           
2. Net Interest Income.        
    (dollars in thousands)
        %  
    Q4'17 Q4'16 Change Q3'17
           
  Interest and Fee Income (FTE) $ 37,115   $ 36,459   1.8 % $ 36,153  
  Interest Expense 471   500   -5.8 % 473  
  Net Interest and Fee Income (FTE) $ 36,644   $ 35,959   1.9 % $ 35,680  
           
  Average Earning Assets $ 4,682,897   $ 4,561,619   2.7 % $ 4,587,848  
  Average Interest-        
    Bearing Liabilities 2,701,190   2,681,585   0.7 % 2,687,620  
           
  Yield on Earning Assets (FTE) (a) 3.16 % 3.19 %   3.14 %
  Cost of Funds (a) 0.04 % 0.04 %   0.04 %
  Net Interest Margin (FTE) (a) 3.12 % 3.15 %   3.10 %
  Interest Expense/        
    Interest-Bearing Liabilities (a) 0.07 % 0.07 %   0.07 %
  Net Interest Spread (FTE) (a) 3.09 % 3.12 %   3.07 %
           
        %  
    12/31'17YTD 12/31'16YTD Change  
           
  Interest and Fee Income (FTE) $ 146,018   $ 147,193   -0.8 %  
  Interest Expense 1,900   2,116   -10.2 %  
  Net Interest and Fee Income (FTE) $ 144,118   $ 145,077   -0.7 %  
           
  Average Earning Assets $ 4,622,339   $ 4,476,755   3.3 %  
  Average Interest-        
    Bearing Liabilities 2,696,399   2,624,688   2.7 %  
           
  Yield on Earning Assets (FTE) 3.16 % 3.29 %    
  Cost of Funds 0.04 % 0.05 %    
  Net Interest Margin (FTE) 3.12 % 3.24 %    
  Interest Expense/        
    Interest-Bearing Liabilities 0.07 % 0.08 %    
  Net Interest Spread (FTE) 3.09 % 3.21 %    
           
3. Loans & Other Earning Assets.        
    (average volume, dollars in thousands)
        %  
    Q4'17 Q4'16 Change Q3'17
           
  Total Assets $ 5,534,700   $ 5,370,412   3.1 % $ 5,441,612  
  Total Earning Assets 4,682,897   4,561,619   2.7 % 4,587,848  
  Total Loans 1,285,748   1,356,350   -5.2 % 1,287,740  
    Commercial Loans 327,790   349,022   -6.1 % 324,727  
    Commercial RE Loans   575,984   546,145   5.5 % 566,794  
    Consumer Loans 381,974   461,183   -17.2 % 396,219  
  Total Investment Securities 3,397,149   3,205,269   6.0 % 3,300,108  
    Available For Sale (Market) 2,216,054   1,821,998   21.6 % 2,066,568  
    Held To Maturity 1,181,095   1,383,271   -14.6 % 1,233,540  
    Unrealized (Loss) Gain (3,522 ) (5,571 ) n/m 4,039  
           
  Loans/Deposits 26.7 % 28.8 %   27.3 %
           
        %  
    12/31'17YTD 12/31'16YTD Change  
           
  Total Assets $ 5,439,682   $ 5,246,144   3.7 %  
  Total Earning Assets 4,622,339   4,476,755   3.3 %  
  Total Loans 1,315,202   1,424,259   -7.7 %  
    Commercial Loans 339,234   354,831   -4.4 %  
    Commercial RE Loans   567,006   590,012   -3.9 %  
    Consumer Loans 408,962   479,416   -14.7 %  
  Total Investment Securities 3,307,137   3,052,496   8.3 %  
    Available For Sale (Market) 2,052,456   1,651,500   24.3 %  
    Held To Maturity 1,254,681   1,400,996   -10.4 %  
    Unrealized Loss (3,522 ) (5,571 ) n/m    
           
  Loans/Deposits 27.9 % 31.0 %    
           
4. Deposits, Other Interest-Bearing Liabilities & Equity.    
    (average volume, dollars in thousands)
        %  
    Q4'17 Q4'16 Change Q3'17
           
  Total Deposits $ 4,811,035   $ 4,702,129   2.3 % $ 4,714,579  
    Noninterest Demand   2,172,678   2,077,213   4.6 % 2,103,042  
    Interest Bearing Transaction 899,822   871,947   3.2 % 891,532  
    Savings 1,501,872   1,492,748   0.6 % 1,475,969  
    Time greater than $100K 106,746   113,781   -6.2 % 108,673  
    Time less than $100K 129,917   146,440   -11.3 % 135,363  
  Total Short-Term Borrowings 62,833   56,669   10.9 % 76,083  
  Shareholders' Equity 610,200   558,057   9.3 % 599,473  
           
  Demand Deposits/        
    Total Deposits 45.2 % 44.2 %   44.6 %
  Transaction & Savings          
    Deposits / Total Deposits 95.1 % 94.5 %   94.8 %
           
    12/31'17YTD 12/31'16YTD Change  
           
  Total Deposits $ 4,722,250   $ 4,590,351   2.9 %  
    Noninterest Demand   2,095,522   2,026,939   3.4 %  
    Interest Bearing Transaction 888,116   862,581   3.0 %  
    Savings 1,492,725   1,428,059   4.5 %  
    Time greater than $100K 109,563   118,750   -7.7 %  
    Time less than $100K 136,324   154,022   -11.5 %  
  Total Short-Term Borrowings 69,671   61,276   13.7 %  
  Shareholders' Equity 596,356   542,301   10.0 %  
           
  Demand Deposits/        
    Total Deposits 44.4 % 44.2 %    
  Transaction & Savings          
    Deposits / Total Deposits 94.8 % 94.1 %    
           
5. Interest Yields Earned & Rates Paid.      
    (dollars in thousands)  
    Q4'17  
    Average Income/ Yield (a) /  
    Volume Expense Rate  
           
  Interest & Fee Income Earned        
    Total Earning Assets (FTE) $ 4,682,897   $ 37,115   3.16 %  
    Total Loans (FTE)   1,285,748   15,671   4.84 %  
    Commercial Loans (FTE) 327,790   4,168   5.05 %  
    Commercial RE Loans   575,984   8,009   5.52 %  
    Consumer Loans 381,974   3,494   3.63 %  
    Total Investments (FTE) 3,397,149   21,444   2.52 %  
           
  Interest Expense Paid        
    Total Earning Assets   4,682,897   471   0.04 %  
    Total Interest-Bearing Liabilities 2,701,190   471   0.07 %  
    Total Interest-Bearing Deposits 2,638,357   461   0.07 %  
    Interest-Bearing Transaction 899,822   60   0.03 %  
    Savings 1,501,872   225   0.06 %  
    Time less than $100K 129,917   75   0.23 %  
    Time greater than $100K 106,746   101   0.38 %  
    Total Short-Term Borrowings   62,833   10   0.06 %  
           
  Net Interest Income and          
  Margin (FTE)   $ 36,644   3.12 %  
           
    Q4'16  
    Average Income/ Yield (a) /  
    Volume Expense Rate  
           
  Interest & Fee Income Earned        
    Total Earning Assets (FTE) $ 4,561,619   $ 36,459   3.19 %  
    Total Loans (FTE) 1,356,350   16,526   4.85 %  
    Commercial Loans (FTE) 349,022   4,084   4.66 %  
    Commercial RE Loans   546,145   8,386   6.11 %  
    Consumer Loans 461,183   4,056   3.50 %  
    Total Investments (FTE) 3,205,269   19,933   2.49 %  
           
  Interest Expense Paid        
    Total Earning Assets   4,561,619   500   0.04 %  
    Total Interest-Bearing Liabilities 2,681,585   500   0.07 %  
    Total Interest-Bearing Deposits 2,624,916   491   0.07 %  
    Interest-Bearing Transaction 871,947   58   0.03 %  
    Savings 1,492,748   230   0.06 %  
    Time less than $100K 146,440   90   0.24 %  
    Time greater than $100K 113,781   113   0.40 %  
    Total Short-Term Borrowings   56,669   9   0.06 %  
           
  Net Interest Income and        
  Margin (FTE)   $ 35,959   3.15 %  
           
6. Noninterest Income.        
    (dollars in thousands except per-share amounts)
        %  
    Q4'17 Q4'16 Change Q3'17
           
  Service Charges on Deposits $ 4,756   $ 5,064   -6.1 % $ 4,989  
  Merchant Processing Services 2,346   1,678   39.8 % 2,153  
  Debit Card Fees 1,569   1,566   0.2 % 1,784  
  Other Service Fees 620   620   0.1 % 652  
  ATM Processing Fees 696   551   26.4 % 684  
  Trust Fees 739   682   8.4 % 718  
  Financial Services Commissions 155   157   -1.4 % 148  
  Securities Gains 7,955     -     n/m     -  
  Other Income 1,464   1,227   19.3 % 1,420  
  Total Noninterest Income $ 20,300   $ 11,545   75.8 % $ 12,548  
           
    Total Revenue (FTE) $ 56,944   $ 47,504   19.9 % $ 48,228  
    Noninterest Income/Revenue (FTE) 35.6 % 24.3 %   26.0 %
    Service Charges/Avg. Deposits (a) 0.39 % 0.43 %   0.42 %
    Total Revenues (FTE) Per Avg.          
  Common Share (a) $ 8.56   $ 7.33   16.8 % $ 7.27  
           
        %  
    12/31'17YTD 12/31'16YTD Change  
           
  Service Charges on Deposits $ 19,612   $ 20,854   -6.0 %  
  Merchant Processing Services 8,426   6,377   32.1 %  
  Debit Card Fees 6,421   6,290   2.1 %  
  Other Service Fees 2,584   2,571   0.5 %  
  ATM Processing Fees 2,610   2,411   8.2 %  
  Trust Fees 2,875   2,686   7.0 %  
  Financial Services Commissions 639   568   12.6 %  
  Securities Gains 7,955     -     n/m    
  Other Income 5,506   4,817   14.3 %  
  Total Noninterest Income $ 56,628   $ 46,574   21.6 %  
           
    Total Revenue (FTE) $ 200,746   $ 191,651   4.7 %  
    Noninterest Income/Revenue (FTE) 28.2 % 24.3 %    
    Service Charges/Avg. Deposits 0.42 % 0.45 %    
    Total Revenues (FTE) Per Avg.          
  Common Share $ 7.64   $ 7.48   2.0 %  
           
7. Noninterest Expense.        
    (dollars in thousands)
        %  
    Q4'17 Q4'16 Change Q3'17
           
  Salaries & Benefits $ 12,652   $ 12,439   1.7 % $ 12,816  
  Loss Contingency (2) 5,542   3   n/m     -  
  Occupancy and Equipment 4,860   4,860   0.0 % 4,907  
  Outsourced Data Processing 2,325   2,131   9.1 % 2,383  
  Amortization of          
    Identifiable Intangibles 755   863   -12.4 % 760  
  Professional Fees 627   797   -21.3 % 512  
  Impairment of Tax Credit Investments 625     -   n/m     -  
  Courier Service 423   494   -14.4 % 451  
  Other Operating 2,358   2,990   -21.2 % 2,285  
  Total Noninterest Expense $ 30,167   $ 24,577   22.7 % $ 24,114  
           
  Noninterest Expense/        
    Avg. Earning Assets (a) 2.56 % 2.14 %   2.09 %
  Noninterest Expense/Revenues (FTE) 53.0 % 51.7 %   50.0 %
           
        %  
    12/31'17YTD 12/31'16YTD Change  
           
  Salaries & Benefits $ 51,519   $ 51,507   0.0 %  
  Loss Contingency (2) 5,542   3   n/m    
  Occupancy and Equipment 19,430   19,017   2.2 %  
  Outsourced Data Processing 9,035   8,505   6.2 %  
  Amortization of          
    Identifiable Intangibles 3,077   3,504   -12.2 %  
  Professional Fees 2,161   3,980   -45.7 %  
  Impairment of Tax Credit Investments 625     -   n/m    
  Courier Service 1,732   1,952   -11.3 %  
  Other Operating 10,171   13,284   -23.4 %  
  Total Noninterest Expense $ 103,292   $ 101,752   1.5 %  
           
  Noninterest Expense/        
    Avg. Earning Assets 2.23 % 2.27 %    
  Noninterest Expense/Revenues (FTE) 51.5 % 53.1 %    
           
8. Allowance for Loan Losses.        
    (dollars in thousands)
        %  
    Q4'17 Q4'16 Change Q3'17
           
  Average Total Loans $ 1,285,748   $ 1,356,350   -5.2 % $ 1,287,740  
           
  Allowance for Loan Loss (ALL)        
  Beginning of Period   $ 23,628   $ 26,359   -10.4 % $ 24,103  
  Reversal of Provision for Loan Losses       -     -   n/m     -  
  Net ALL Losses (619 ) (405 ) n/m   (475 )
  ALL End of Period $ 23,009   $ 25,954   -11.3 % $ 23,628  
  ALL Recoveries/Gross ALL Losses     47 % 66 %   53 %
           
  Net ALL Losses /Avg. Total Loans (a) 0.19 % 0.12 %   0.15 %
           
        %  
    12/31'17YTD 12/31'16YTD Change  
           
  Average Total Loans $ 1,315,202   $ 1,424,259   -7.7 %  
           
  Allowance for Loan Loss (ALL)        
  Beginning of Period   $ 25,954   $ 29,771   -12.8 %  
  Reversal of Provision for Loan Losses       (1,900 )   (3,200 ) n/m    
  Net ALL Losses (1,045 ) (617 ) n/m    
  ALL End of Period $ 23,009   $ 25,954   -11.3 %  
  ALL Recoveries/Gross ALL Losses     82 % 91 %    
           
  Net ALL Losses /Avg. Total Loans 0.08 % 0.04 %    
           
9. Credit Quality.        
    (dollars in thousands)
        %  
    12/31/17 12/31/16 Change 9/30/17
           
  Nonperforming Loans (1):        
    Nonperforming Nonaccrual $ 1,641   $ 3,956   -58.5 % $ 1,498  
    Performing Nonaccrual   4,285     4,429   -3.2 %   4,285  
  Total Nonaccrual Loans 5,926   8,385   -29.3 % 5,783  
  90+ Days Past Due Accruing Loans 531   497   6.8 % 434  
  Total 6,457   8,882   -27.3 % 6,217  
  Repossessed Loan Collateral (1) 1,426   3,095   -53.9 % 1,426  
    Total Nonperforming Assets (1) $ 7,883   $ 11,977   -34.2 % $ 7,643  
           
  Total Loans Outstanding   $ 1,287,982   $ 1,352,711   -4.8 % $ 1,284,782  
           
  Total Assets   $ 5,513,046   $ 5,366,083   2.7 % $ 5,445,808  
           
  Loans:        
  Allowance for Loan Losses $ 23,009   $ 25,954   -11.3 % $ 23,628  
  Allowance/Loans 1.79 % 1.92 %   1.84 %
  Nonperforming Loans/Total Loans 0.50 % 0.66 %   0.48 %
           
10. Capital.        
    (in thousands, except per-share amounts)
        %  
    12/31/17 12/31/16 Change 9/30/17
           
  Shareholders' Equity $ 590,239   $ 561,367   5.1 % $ 603,957  
  Total Assets 5,513,046   5,366,083   2.7 % 5,445,808  
           
  Shareholders' Equity/        
    Total Assets 10.71 % 10.46 %   11.09 %
  Shareholders' Equity/        
    Total Loans 45.83 % 41.50 %   47.01 %
  Tangible Common Equity Ratio 8.63 % 8.26 %   8.98 %
  Common Shares Outstanding 26,425   25,907   2.0 % 26,319  
  Common Equity Per Share $ 22.34   $ 21.67   3.1 % $ 22.95  
  Market Value Per Common Share $ 59.55   $ 62.93   -5.4 % $ 59.54  
           
  Share Repurchase Programs        
    (shares in thousands)
        %  
    Q4'17 Q4'16 Change Q3'17
           
  Total Shares Repurchased   -     -   n/m     -  
    Average Repurchase Price $ -   $ -   n/m   $ -  
  Net Shares Issued (106 ) (242 ) n/m   (15 )
           
        %  
    12/31'17YTD 12/31'16YTD Change  
           
  Total Shares Repurchased 6   137   n/m    
    Average Repurchase Price $ 56.51   $ 41.94   n/m    
  Net Shares Issued (518 ) (379 ) n/m    
           
11. Period-End Balance Sheets.        
    (unaudited, dollars in thousands)
        %  
    12/31/17 12/31/16 Change 9/30/17
  Assets:        
    Cash and Due from Banks $ 575,002   $ 462,271   24.4 % $ 561,757  
           
    Investment Securities:        
    Available For Sale 2,193,507   1,890,758   16.0 % 2,090,477  
    Held to Maturity 1,158,864   1,346,312   -13.9 % 1,204,240  
           
    Loans 1,287,982   1,352,711   -4.8 % 1,284,782  
    Allowance For Loan Losses (23,009 ) (25,954 ) -11.3 % (23,628 )
    Total Loans, net 1,264,973   1,326,757   -4.7 % 1,261,154  
           
    Other Real Estate Owned 1,426   3,095   -53.9 % 1,426  
    Premises and Equipment, net 35,301   36,566   -3.5 % 35,507  
    Identifiable Intangibles, net 3,850   6,927   -44.4 % 4,605  
    Goodwill   121,673   121,673   0.0 % 121,673  
    Other Assets 158,450   171,724   -7.7 % 164,969  
           
  Total Assets $ 5,513,046   $ 5,366,083   2.7 % $ 5,445,808  
           
  Liabilities and Shareholders' Equity:        
    Deposits:        
    Noninterest Bearing $ 2,197,526   $ 2,089,443   5.2 % $ 2,128,342  
    Interest-Bearing Transaction 904,245   865,701   4.5 % 873,145  
    Savings 1,494,024   1,493,427   0.0 % 1,491,168  
    Time 231,818   256,170   -9.5 % 241,925  
    Total Deposits 4,827,613   4,704,741   2.6 % 4,734,580  
           
    Short-Term Borrowed Funds 58,471   59,078   -1.0 % 66,337  
    Other Liabilities 36,723   40,897   -10.2 % 40,934  
  Total Liabilities 4,922,807   4,804,716   2.5 % 4,841,851  
           
  Shareholders' Equity:        
    Common Equity:        
    Paid-In Capital 433,267   406,139   6.7 % 427,188  
    Accumulated Other        
    Comprehensive Loss (16,832 ) (10,074 ) n/m   (3,433 )
    Retained Earnings 173,804   165,302   5.1 % 180,202  
  Total Shareholders' Equity 590,239   561,367   5.1 % 603,957  
           
  Total Liabilities and          
    Shareholders' Equity $ 5,513,046   $ 5,366,083   2.7 % $ 5,445,808  
           
12. Income Statements.        
    (unaudited, in thousands except per-share amounts)
        %  
    Q4'17 Q4'16 Change Q3'17
  Interest & Fee Income:        
    Loans $ 15,410   $ 16,235   -5.1 % $ 15,082  
    Investment Securities:        
    Available for Sale 12,359   9,422   31.2 % 11,347  
    Held to Maturity 6,435   7,552   -14.8 % 6,716  
  Total Interest & Fee Income 34,204   33,209   3.0 % 33,145  
           
  Interest Expense:        
    Transaction Deposits 60   58   3.1 % 60  
    Savings Deposits 225   230   -2.3 % 220  
    Time Deposits 176   203   -13.1 % 181  
    Short-Term Borrowed Funds 10   9   13.6 % 12  
  Total Interest Expense 471   500   -5.8 % 473  
           
  Net Interest Income 33,733   32,709   3.1 % 32,672  
           
  Reversal of Provision for Loan Losses   -     -   n/m     -  
           
  Noninterest Income:        
    Service Charges   4,756   5,064   -6.1 % 4,989  
    Merchant Processing Services 2,346   1,678   39.8 % 2,153  
    Debit Card Fees 1,569   1,566   0.2 % 1,784  
    Other Service Fees 620   620   0.1 % 652  
    ATM Processing Fees 696   551   26.4 % 684  
    Trust Fees 739   682   8.4 % 718  
    Financial Services Commissions 155   157   -1.4 % 148  
    Securities Gains 7,955     -   n/m     -  
    Other 1,464   1,227   19.3 % 1,420  
  Total Noninterest Income 20,300   11,545   75.8 % 12,548  
           
  Noninterest Expense:        
    Salaries and   Benefits 12,652   12,439   1.7 % 12,816  
    Loss Contingency (2) 5,542   3   n/m     -  
    Occupancy and Equipment 4,860   4,860   0.0 % 4,907  
    Outsourced Data Processing 2,325   2,131   9.1 % 2,383  
    Amortization of Identifiable Intangibles 755   863   -12.4 % 760  
    Professional Fees 627   797   -21.3 % 512  
    Impairment of Tax Credit Investments 625     -   n/m     -  
    Courier Service 423   494   -14.4 % 451  
    Other 2,358   2,990   -21.2 % 2,285  
  Total Noninterest Expense 30,167   24,577   22.7 % 24,114  
           
  Income Before Income Taxes 23,866   19,677   21.3 % 21,106  
  Income Tax Provision 19,706   5,224   n/m   6,089  
  Net Income $ 4,160   $ 14,453   -71.2 % $ 15,017  
           
  Average Common Shares Outstanding 26,384   25,773   2.4 % 26,309  
  Diluted Common Shares Outstanding 26,538   25,925   2.4 % 26,404  
           
  Per Common Share Data:        
    Basic Earnings $ 0.16   $ 0.56   -71.4 % $ 0.57  
    Diluted Earnings 0.16   0.56   -71.4 % 0.57  
    Dividends Paid 0.40   0.39   2.6 % 0.39  
           
        %  
    12/31'17YTD 12/31'16YTD Change  
  Interest & Fee Income:        
    Loans $ 61,740   $ 69,139   -10.7 %  
    Investment Securities:        
    Available for Sale 44,664   34,276   30.3 %  
    Held to Maturity 27,432   30,636   -10.5 %  
  Total Interest & Fee Income 133,836   134,051   -0.2 %  
           
  Interest Expense:        
    Transaction Deposits 233   259   -10.0 %  
    Savings Deposits 890   907   -1.8 %  
    Time Deposits 733   911   -19.6 %  
    Short-Term Borrowed Funds 44   39   12.5 %  
  Total Interest Expense 1,900   2,116   -10.2 %  
           
  Net Interest Income 131,936   131,935   0.0 %  
           
  Reversal of Provision for Loan Losses   (1,900 )   (3,200 ) n/m    
           
  Noninterest Income:        
    Service Charges   19,612   20,854   -6.0 %  
    Merchant Processing Services 8,426   6,377   32.1 %  
    Debit Card Fees 6,421   6,290   2.1 %  
    Other Service Fees 2,584   2,571   0.5 %  
    ATM Processing Fees 2,610   2,411   8.2 %  
    Trust Fees 2,875   2,686   7.0 %  
    Financial Services Commissions 639   568   12.6 %  
    Securities Gains 7,955     -   n/m    
    Other 5,506   4,817   14.3 %  
  Total Noninterest Income 56,628   46,574   21.6 %  
           
  Noninterest Expense:        
    Salaries and   Benefits 51,519   51,507   0.0 %  
    Loss Contingency (2) 5,542   3   n/m    
    Occupancy and Equipment 19,430   19,017   2.2 %  
    Outsourced Data Processing 9,035   8,505   6.2 %  
    Amortization of Identifiable Intangibles 3,077   3,504   -12.2 %  
    Professional Fees 2,161   3,980   -45.7 %  
    Impairment of Tax Credit Investments 625     -   n/m    
    Courier Service 1,732   1,952   -11.3 %  
    Other 10,171   13,284   -23.4 %  
  Total Noninterest Expense 103,292   101,752   1.5 %  
           
  Income Before Income Taxes 87,172   79,957   9.0 %  
  Income Tax Provision 37,147   21,104   76.0 %  
  Net Income $ 50,025   $ 58,853   -15.0 %  
           
  Average Common Shares Outstanding 26,291   25,612   2.7 %  
  Diluted Common Shares Outstanding 26,419   25,678   2.9 %  
           
  Per Common Share Data:        
  Basic Earnings $ 1.90   $ 2.30   -17.4 %  
  Diluted Earnings 1.89   2.29   -17.5 %  
  Dividends Paid 1.57   1.56   0.6 %  
           
           
  Footnotes and Abbreviations:        
  (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        
  (1) All originated and purchased non performing loans and repossessed loan collateral have been combined as of Q1 '17.   Prior period presentation has been updated, accordingly.  
  (2) Represents the Company's estimated refunds to customers of revenue recognized in prior years.  
           

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