Westamerica Bancorporation Reports Third Quarter 2021 Financial Results

SAN RAFAEL, Calif., Oct. 21, 2021 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the third quarter 2021 of $22.1 million and diluted earnings per common share ("EPS") of $0.82. Third quarter 2021 results include “make-whole” interest income on corporate bonds redeemed prior to maturity, which increased EPS $0.02. These results compare to net income of $22.6 million and EPS of $0.84 for the second quarter 2021, which included “make-whole” interest income on corporate bonds redeemed before maturity, which increased EPS $0.04.

"Westamerica’s valuable deposit base generated a very low 0.03 percent annualized cost of funding our loan and bond portfolios during the third quarter 2021. Operating expenses remained well managed in the third quarter 2021, delivering fifty-five percent of revenue to pre-tax income. Credit quality remained solid with nonperforming loans of $1.8 million at September 30, 2021,” said Chairman, President and CEO David Payne. “Third quarter 2021 results generated an annualized 11.6 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 $44.0 million for the third quarter 2021, including “make-whole” interest income on corporate bonds redeemed prior to maturity of $732 thousand. Third quarter 2021 net interest income (FTE) compares to $44.5 million for the second quarter 2021, which included “make-whole” interest income on corporate bonds redeemed prior to maturity of $1.4 million. PPP loan average balances declined to $145 million for the third quarter 2021 from $208 million for the second quarter 2021; at September 30, 2021 PPP loans totaled $103 million. Checking and savings deposits represented ninety-eight percent of the Company’s average deposit base during the third quarter 2021, generating a low 0.03 percent annualized cost of funding interest-earning assets.

At September 30, 2021, nonperforming loans declined to $1.8 million due to the full payoff of a $3.1 million non-accrual loan during the third quarter 2021. The allowance for credit losses on loans was $23.9 million at September 30, 2021. The Company continues to work with loan customers requesting loan payment deferrals due to economic weakness caused by the pandemic. At September 30, 2021, loans with deferred payments totaled $1.0 million, all of which were consumer automobile loans.

Noninterest income for the third quarter 2021 totaled $11.3 million, compared to noninterest income for the second quarter 2021 of $11.0 million. The increase in noninterest income was primarily due to higher levels of deposit related fees.

Noninterest expense for the third quarter 2021 was $24.7 million compared to $24.3 million for the second quarter 2021.

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 June 30, 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.

	Public Information October 21, 2021
WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
September 30, 2021
1. Net Income Summary.
		(in thousands except per-share amounts)
						%
		Q3'2021		Q3'2020		Change	Q2'2021
	Net Interest and Fee Income (FTE)	$43,952		$41,780		5.2%	$44,499
	Provision for Credit Losses	-		-		n/m	-
	Noninterest Income	11,282		10,476		7.7%	11,032
	Noninterest Expense	24,697		24,603		0.4%	24,291
	Income Before Taxes (FTE)	30,537		27,653		10.4%	31,240
	Income Tax Provision (FTE)	8,474		7,602		11.5%	8,661
	Net Income	$22,063		$20,051		10.0%	$22,579
	Average Common Shares Outstanding	26,866		26,930		-0.2%	26,865
	Diluted Average Common Shares	26,875		26,946		-0.3%	26,887
	Operating Ratios:
	Basic Earnings Per Common Share	$0.82		$0.74		10.8%	$0.84
	Diluted Earnings Per Common Share	0.82		0.74		10.8%	0.84
	Return On Assets (a)	1.22%		1.24%			1.29%
	Return On Common Equity (a)	11.6%		11.2%			12.2%
	Net Interest Margin (FTE) (a)	2.60%		2.78%			2.70%
	Efficiency Ratio (FTE)	44.7%		47.1%			43.7%
	Dividends Paid Per Common Share	$0.41		$0.41		0.0%	$0.41
	Common Dividend Payout Ratio	50%		55%			49%
						%
		9/30'21YTD		9/30'20YTD		Change
	Net Interest and Fee Income (FTE)	$131,034		$124,390		5.3%
	Provision for Credit Losses	-		4,300		n/m
	Noninterest Income	32,503		31,678		2.6%
	Noninterest Expense	73,894		74,021		-0.2%
	Income Before Taxes (FTE)	89,643		77,747		15.3%
	Income Tax Provision (FTE)	24,854		21,172		17.4%
	Net Income	$64,789		$56,575		14.5%
	Average Common Shares Outstanding	26,851		26,977		-0.5%
	Diluted Average Common Shares	26,868		26,998		-0.5%
	Operating Ratios:
	Basic Earnings Per Common Share	$2.41		$2.10		14.8%
	Diluted Earnings Per Common Share	2.41		2.10		14.8%
	Return On Assets (a)	1.25%		1.25%
	Return On Common Equity (a)	11.6%		10.7%
	Net Interest Margin (FTE) (a)	2.67%		2.95%
	Efficiency Ratio (FTE)	45.2%		47.4%
	Dividends Paid Per Common Share	$1.23		$1.23		0.0%
	Common Dividend Payout Ratio	51%		59%
2. Net Interest Income.
		(dollars in thousands)
						%
		Q3'2021		Q3'2020		Change	Q2'2021
	Interest and Fee Income (FTE)	$44,444		$42,246		5.2%	$44,983
	Interest Expense	492		466		5.6%	484
	Net Interest and Fee Income (FTE)	$43,952		$41,780		5.2%	$44,499
	Average Earning Assets	$6,754,281		$6,001,287		12.5%	$6,603,343
	Average Interest-
	Bearing Liabilities	3,370,840		2,931,717		15.0%	3,298,221
	Yield on Earning Assets (FTE) (a)	2.63%		2.81%			2.73%
	Cost of Funds (a)	0.03%		0.03%			0.03%
	Net Interest Margin (FTE) (a)	2.60%		2.78%			2.70%
	Interest Expense/
	Interest-Bearing Liabilities (a)	0.06%		0.06%			0.06%
	Net Interest Spread (FTE) (a)	2.57%		2.75%			2.67%
						%
		9/30'21YTD		9/30'20YTD		Change
	Interest and Fee Income (FTE)	$132,485		$125,733		5.4%
	Interest Expense	1,451		1,343		8.0%
	Net Interest and Fee Income (FTE)	$131,034		$124,390		5.3%
	Average Earning Assets	$6,535,949		$5,627,517		16.1%
	Average Interest-
	Bearing Liabilities	3,267,311		2,785,451		17.3%
	Yield on Earning Assets (FTE) (a)	2.70%		2.98%
	Cost of Funds (a)	0.03%		0.03%
	Net Interest Margin (FTE) (a)	2.67%		2.95%
	Interest Expense/
	Interest-Bearing Liabilities (a)	0.06%		0.06%
	Net Interest Spread (FTE) (a)	2.64%		2.92%
3. Loans & Other Earning Assets.
		(average volume, dollars in thousands)
						%
		Q3'2021		Q3'2020		Change	Q2'2021
	Total Assets	$7,158,462		$6,414,399		11.6%	$7,004,695
	Total Earning Assets	6,754,281		6,001,287		12.5%	6,603,343
	Total Loans	1,176,114		1,312,758		-10.4%	1,257,087
	Total Commercial Loans	333,327		444,091		-24.9%	413,797
	Paycheck Protection Program (PPP) Loans	144,641		243,104		-40.5%	207,515
	Commercial Loans	188,686		200,987		-6.1%	206,282
	Commercial RE Loans	543,429		566,626		-4.1%	546,470
	Consumer Loans	299,358		302,041		-0.9%	296,820
	Total Investment Securities	4,615,540		4,360,119		5.9%	4,394,169
	Debt Securities Available For Sale	4,235,141		3,750,737		12.9%	3,953,016
	Debt Securities Held To Maturity	380,399		609,382		-37.6%	441,153
	Total Interest-Bearing Cash	962,627		328,410		193.1%	952,087
	Loans/Deposits	18.9%		23.7%			20.7%
						%
		9/30'21YTD		9/30'20YTD		Change
	Total Assets	$6,939,636		$6,044,098		14.8%
	Total Earning Assets	6,535,949		5,627,517		16.1%
	Total Loans	1,227,971		1,223,250		0.4%
	Total Commercial Loans	380,638		337,566		12.8%
	PPP Loans	180,214		125,632		43.4%
	Commercial Loans	200,424		211,934		-5.4%
	Commercial RE Loans	549,639		574,950		-4.4%
	Consumer Loans	297,694		310,734		-4.2%
	Total Investment Securities	4,484,084		4,055,733		10.6%
	Debt Securities Available For Sale	4,046,289		3,394,467		19.2%
	Debt Securities Held To Maturity	437,795		661,266		-33.8%
	Total Interest-Bearing Cash	823,894		348,534		136.4%
	Loans/Deposits	20.4%		23.6%
4. Deposits, Other Interest-Bearing Liabilities & Equity.
		(average volume, dollars in thousands)
						%
		Q3'2021		Q3'2020		Change	Q2'2021
	Total Deposits	$6,223,500		$5,533,144		12.5%	$6,074,730
	Noninterest Demand	2,960,207		2,695,458		9.8%	2,888,259
	Interest-Bearing Transaction	1,246,667		1,039,833		19.9%	1,208,584
	Savings	1,864,401		1,634,814		14.0%	1,822,625
	Time greater than $100K	68,811		72,045		-4.5%	70,750
	Time less than $100K	83,414		90,994		-8.3%	84,512
	Total Short-Term Borrowings	107,547		94,031		14.4%	111,750
	Shareholders' Equity	755,682		714,400		5.8%	744,746
	Demand Deposits/
	Total Deposits	47.6%		48.7%			47.5%
	Transaction & Savings
	Deposits / Total Deposits	97.6%		97.1%			97.4%
						%
		9/30'21YTD		9/30'20YTD		Change
	Total Deposits	$6,017,175		$5,188,797		16.0%
	Noninterest Demand	2,854,936		2,472,495		15.5%
	Interest-Bearing Transaction	1,195,762		987,666		21.1%
	Savings	1,811,711		1,563,387		15.9%
	Time greater than $100K	70,258		72,718		-3.4%
	Time less than $100K	84,508		92,531		-8.7%
	Total Short-Term Borrowings	105,001		68,917		52.4%
	Other Borrowed Funds	71		232		-69.5%
	Shareholders' Equity	745,382		708,559		5.2%
	Demand Deposits/
	Total Deposits	47.4%		47.7%
	Transaction & Savings
	Deposits / Total Deposits	97.4%		96.8%
5. Interest Yields Earned & Rates Paid.
		(dollars in thousands)
		Q3'2021
		Average		Income/		Yield (a) /
		Volume		Expense		Rate (a)
	Interest & Fee Income Earned
	Total Earning Assets (FTE)	$6,754,281		$44,444		2.63%
	Total Loans (FTE)	1,176,114		14,893		5.02%
	Total Commercial Loans (FTE)	333,327		3,866		4.60%
	PPP Loans	144,641		1,865		5.12%
	Commercial Loans (FTE)	188,686		2,001		4.21%
	Commercial RE Loans	543,429		7,457		5.44%
	Consumer Loans	299,358		3,570		4.73%
	Total Investments (FTE)	4,615,540		29,182		2.53%
	Total Interest-Bearing Cash	962,627		369		0.15%
	Interest Expense Paid
	Total Earning Assets	6,754,281		492		0.03%
	Total Interest-Bearing Liabilities	3,370,840		492		0.06%
	Total Interest-Bearing Deposits	3,263,293		473		0.06%
	Interest-Bearing Transaction	1,246,667		101		0.03%
	Savings	1,864,401		272		0.06%
	Time less than $100K	83,414		42		0.20%
	Time greater than $100K	68,811		58		0.33%
	Total Short-Term Borrowings	107,547		19		0.07%
	Net Interest Income and
	Margin (FTE)			$43,952		2.60%
		Q3'2020
		Average		Income/		Yield (a) /
		Volume		Expense		Rate (a)
	Interest & Fee Income Earned
	Total Earning Assets (FTE)	$6,001,287		$42,246		2.81%
	Total Loans (FTE)	1,312,758		15,394		4.67%
	Total Commercial Loans (FTE)	444,091		4,648		4.16%
	PPP Loans	243,104		2,501		4.08%
	Commercial Loans (FTE)	200,987		2,147		4.25%
	Commercial RE Loans	566,626		7,298		5.12%
	Consumer Loans	302,041		3,448		4.54%
	Total Investments (FTE)	4,360,119		26,768		2.46%
	Total Interest-Bearing Cash	328,410		84		0.10%
	Interest Expense Paid
	Total Earning Assets	6,001,287		466		0.03%
	Total Interest-Bearing Liabilities	2,931,717		466		0.06%
	Total Interest-Bearing Deposits	2,837,686		450		0.06%
	Interest-Bearing Transaction	1,039,833		85		0.03%
	Savings	1,634,814		238		0.06%
	Time less than $100K	90,994		47		0.21%
	Time greater than $100K	72,045		80		0.44%
	Total Short-Term Borrowings	94,031		16		0.07%
	Net Interest Income and
	Margin (FTE)			$41,780		2.78%
6. Noninterest Income.
		(dollars in thousands except per-share amounts)
						%
		Q3'2021		Q3'2020		Change	Q2'2021
	Service Charges on Deposits	$3,578		$3,298		8.5%	$3,235
	Merchant Processing Services	3,159		2,860		10.5%	3,279
	Debit Card Fees	1,740		1,611		8.0%	1,791
	Trust Fees	839		756		11.0%	827
	ATM Processing Fees	573		606		-5.4%	618
	Other Service Fees	475		454		4.5%	491
	Financial Services Commissions	95		58		63.8%	95
	Securities Gains	-		-		n/m	34
	Other Noninterest Income	823		833		-1.2%	662
	Total Noninterest Income	$11,282		$10,476		7.7%	$11,032
	Total Revenue (FTE)	$55,234		$52,256		5.7%	$55,531
	Noninterest Income/Revenue (FTE)	20.4%		20.0%			19.9%
	Service Charges/Avg. Deposits (a)	0.23%		0.24%			0.21%
	Total Revenues (FTE) Per Avg.
	Common Share (a)	$8.16		$7.72		5.7%	$8.29
						%
		9/30'21YTD		9/30'20YTD		Change
	Service Charges on Deposits	$10,117		$10,697		-5.4%
	Merchant Processing Services	8,998		7,495		20.1%
	Debit Card Fees	5,132		4,538		13.1%
	Trust Fees	2,467		2,247		9.8%
	ATM Processing Fees	1,792		1,703		5.2%
	Other Service Fees	1,435		1,380		4.0%
	Financial Services Commissions	260		306		-15.0%
	Securities Gains	34		71		n/m
	Other Noninterest Income	2,268		3,241		-30.0%
	Total Noninterest Income	$32,503		$31,678		2.6%
	Total Revenue (FTE)	$163,537		$156,068		4.8%
	Noninterest Income/Revenue (FTE)	19.9%		20.3%
	Service Charges/Avg. Deposits (a)	0.22%		0.28%
	Total Revenues (FTE) Per Avg./
	Common Share (a)	$8.14		$7.73		5.4%
7. Noninterest Expense.
		(dollars in thousands)
						%
		Q3'2021		Q3'2020		Change	Q2'2021
	Salaries & Benefits	$11,813		$12,540		-5.8%	$12,097
	Occupancy and Equipment	4,759		5,014		-5.1%	4,808
	Outsourced Data Processing	2,429		2,338		3.9%	2,425
	Professional Fees	724		669		8.2%	830
	Courier Service	534		500		6.8%	567
	Amortization of
	Identifiable Intangibles	67		72		-6.9%	68
	Other Noninterest Expense	4,371		3,470		26.0%	3,496
	Total Noninterest Expense	$24,697		$24,603		0.4%	$24,291
	Noninterest Expense/
	Avg. Earning Assets (a)	1.45%		1.63%			1.48%
	Noninterest Expense/Revenues (FTE)	44.7%		47.1%			43.7%
						%
		9/30'21YTD		9/30'20YTD		Change
	Salaries & Benefits	$36,575		$38,458		-4.9%
	Occupancy and Equipment	14,447		14,737		-2.0%
	Outsourced Data Processing	7,244		7,067		2.5%
	Professional Fees	2,496		1,701		46.7%
	Courier Service	1,605		1,499		7.1%
	Amortization of
	Identifiable Intangibles	204		218		-6.4%
	Other Noninterest Expense	11,323		10,341		9.5%
	Total Noninterest Expense	$73,894		$74,021		-0.2%
	Noninterest Expense/
	Avg. Earning Assets (a)	1.51%		1.76%
	Noninterest Expense/Revenues (FTE)	45.2%		47.4%
8. Allowance for Credit Losses.
		(dollars in thousands)
						%
		Q3'2021		Q3'2020		Change	Q2'2021
	Average Total Loans	$1,176,114		$1,312,758		-10.4%	$1,257,087
	Beginning of Period Allowance for
	Credit Losses on Loans (ACLL)	$23,737		$24,529		-3.2%	$23,483
	Provision for Credit Losses	2		-		n/m	-
	Net ACLL Recoveries (Losses)	143		(387	)	-137.0%	254
	End of Period ACLL	$23,882		$24,142		-1.1%	$23,737
	Gross ACLL Recoveries /
	Gross ACLL Losses	115%		56%			176%
	Net ACLL (Recoveries) Losses /
	Avg. Total Loans (a)	-0.05%		0.12%			-0.08%
						%
		9/30'21YTD		9/30'20YTD		Change
	Average Total Loans	$1,227,971		$1,223,250		0.4%
	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	2		4,300		n/m
	Net ACLL Recoveries (Losses)	26		(1,659	)	-101.6%
	End of Period ACLL	$23,882		$24,142		-1.1%
	Gross ACLL Recoveries /
	Gross ACLL Losses	101%		49%
	Net ACLL (Recoveries) Losses /
	Avg. Total Loans (a)	0.00%		0.18%
		(dollars in thousands)
						%
		9/30/21		9/30/20		Change	6/30/21
	Allowance for Credit Losses on Loans	$23,882		$24,142		-1.1%	$23,737
	Allowance for Credit Losses on
	HTM Securities (2)	7		16		-56.9%	9
	Total Allowance for Credit Losses	$23,889		$24,158		-1.1%	$23,746
	Allowance for Unfunded
	Credit Commitments	$101		$53		90.0%	$101
9. Credit Quality.
		(dollars in thousands)
						%
		9/30/21		9/30/20		Change	6/30/21
	Nonperforming Loans:
	Nonperforming Nonaccrual	$801		$409		95.8%	$652
	Performing Nonaccrual	436		3,971		-89.0%	3,564
	Total Nonaccrual Loans	1,237		4,380		-71.8%	4,216
	90+ Days Past Due Accruing Loans	537		360		49.2%	167
	Total	1,774		4,740		-62.6%	4,383
	Repossessed Loan Collateral	-		43		-100.0%	-
	Total Nonperforming Assets	$1,774		$4,783		-62.9%	$4,383
	Total Loans Outstanding	$1,132,472		$1,310,009		-13.6%	$1,194,834
	Total Assets	7,403,573		6,563,215		12.8%	7,147,779
	Loans:
	Allowance for Credit Losses on Loans	$23,882		$24,142		-1.1%	$23,737
	Allowance for Credit Losses on Loans /
	Loans	2.11%		1.84%			1.99%
	Nonperforming Loans/Total Loans	0.16%		0.36%			0.37%
10. Capital.
		(in thousands, except per-share amounts)
						%
		9/30/21		9/30/20		Change	6/30/21
	Shareholders' Equity	$837,953		$825,576		1.5%	$842,196
	Total Assets	7,403,573		6,563,215		12.8%	7,147,779
	Shareholders' Equity/
	Total Assets	11.32%		12.58%			11.78%
	Shareholders' Equity/
	Total Loans	73.99%		63.02%			70.49%
	Tangible Common Equity Ratio	9.83%		10.91%			10.24%
	Common Shares Outstanding	26,866		26,898		-0.1%	26,865
	Common Equity Per Share	$31.19		$30.69		1.6%	$31.35
	Market Value Per Common Share	56.26		54.35		3.5%	58.03
		(shares in thousands)
						%
		Q3'2021		Q3'2020		Change	Q2'2021
	Share Repurchase Programs:
	Total Shares Repurchased	-		35		n/m	-
	Average Repurchase Price	$-		$52.42		n/m	$-
	Net Shares (Issued) Repurchased	(1	)	35		n/m	(1	)
						%
		9/30'21YTD		9/30'20YTD		Change
	Total Shares Repurchased	4		228		n/m
	Average Repurchase Price	$61.09		$51.39		n/m
	Net Shares (Issued) Repurchased	(59	)	164		n/m
11. Period-End Balance Sheets.
		(unaudited, dollars in thousands)
						%
		9/30/21		9/30/20		Change	6/30/21
	Assets:
	Cash and Due from Banks	$1,011,048		$398,964		153.4%	$939,929
	Debt Securities Available For Sale	4,602,706		3,983,994		15.5%	4,304,162
	Debt Securities Held To Maturity (3)	356,106		577,795		-38.4%	414,413
	Loans	1,132,472		1,310,009		-13.6%	1,194,834
	Allowance For Credit Losses on Loans	(23,882	)	(24,142	)	-1.1%	(23,737	)
	Total Loans, net	1,108,590		1,285,867		-13.8%	1,171,097
	Other Real Estate Owned	-		43		n/m	-
	Premises and Equipment, net	31,603		33,437		-5.5%	32,080
	Identifiable Intangibles, net	900		1,173		-23.3%	967
	Goodwill	121,673		121,673		0.0%	121,673
	Other Assets	170,947		160,269		6.7%	163,458
	Total Assets	$7,403,573		$6,563,215		12.8%	$7,147,779
	Liabilities and Shareholders' Equity:
	Deposits:
	Noninterest-Bearing	$2,988,329		$2,684,028		11.3%	$2,872,920
	Interest-Bearing Transaction	1,257,460		1,040,712		20.8%	1,200,634
	Savings	1,894,290		1,653,000		14.6%	1,849,258
	Time	148,882		161,450		-7.8%	153,577
	Total Deposits	6,288,961		5,539,190		13.5%	6,076,389
	Short-Term Borrowed Funds	119,102		107,973		10.3%	90,043
	Other Liabilities	157,557		90,476		74.1%	139,151
	Total Liabilities	6,565,620		5,737,639		14.4%	6,305,583
	Shareholders' Equity:
	Common Equity:
	Paid-In Capital	470,711		467,236		0.7%	470,365
	Accumulated Other
	Comprehensive Income	71,284		103,623		n/m	86,921
	Retained Earnings	295,958		254,717		16.2%	284,910
	Total Shareholders' Equity	837,953		825,576		1.5%	842,196
	Total Liabilities and
	Shareholders' Equity	$7,403,573		$6,563,215		12.8%	$7,147,779
12. Income Statements.
		(unaudited, in thousands except per-share amounts)
						%
		Q3'2021		Q3'2020		Change	Q2'2021
	Interest & Fee Income:
	Loans	$14,789		$15,291		-3.3%	$15,064
	Equity Securities	109		103		5.8%	110
	Debt Securities Available For Sale (4)	26,452		22,652		16.8%	26,481
	Debt Securities Held To Maturity	2,091		3,235		-35.4%	2,362
	Interest-Bearing Cash	369		84		339.3%	259
	Total Interest & Fee Income	43,810		41,365		5.9%	44,276
	Interest Expense:
	Transaction Deposits	101		85		18.8%	93
	Savings Deposits	272		238		14.3%	263
	Time Deposits	100		127		-21.3%	110
	Short-Term Borrowed Funds	19		16		18.7%	18
	Total Interest Expense	492		466		5.6%	484
	Net Interest Income	43,318		40,899		5.9%	43,792
	Provision for Credit Losses	-		-		n/m	-
	Noninterest Income:
	Service Charges	3,578		3,298		8.5%	3,235
	Merchant Processing Services	3,159		2,860		10.5%	3,279
	Debit Card Fees	1,740		1,611		8.0%	1,791
	Trust Fees	839		756		11.0%	827
	ATM Processing Fees	573		606		-5.4%	618
	Other Service Fees	475		454		4.5%	491
	Financial Services Commissions	95		58		63.8%	95
	Securities Gains	-		-		n/m	34
	Other Noninterest Income	823		833		-1.2%	662
	Total Noninterest Income	11,282		10,476		7.7%	11,032
	Noninterest Expense:
	Salaries and Benefits	11,813		12,540		-5.8%	12,097
	Occupancy and Equipment	4,759		5,014		-5.1%	4,808
	Outsourced Data Processing	2,429		2,338		3.9%	2,425
	Professional Fees	724		669		8.2%	830
	Courier Service	534		500		6.8%	567
	Amortization of Identifiable Intangibles	67		72		-6.9%	68
	Other Noninterest Expense	4,371		3,470		26.0%	3,496
	Total Noninterest Expense	24,697		24,603		0.4%	24,291
	Income Before Income Taxes	29,903		26,772		11.7%	30,533
	Income Tax Provision	7,840		6,721		16.7%	7,954
	Net Income	$22,063		$20,051		10.0%	$22,579
	Average Common Shares Outstanding	26,866		26,930		-0.2%	26,865
	Diluted Common Shares Outstanding	26,875		26,946		-0.3%	26,887
	Per Common Share Data:
	Basic Earnings	$0.82		$0.74		10.8%	$0.84
	Diluted Earnings	0.82		0.74		10.8%	0.84
	Dividends Paid	0.41		0.41		0.0%	0.41
						%
		9/30'21YTD		9/30'20YTD		Change
	Interest & Fee Income:
	Loans	$44,434		$44,378		0.1%
	Equity Securities	329		309		6.5%
	Debt Securities Available For Sale (4)	77,822		66,396		17.2%
	Debt Securities Held To Maturity	7,051		10,759		-34.5%
	Interest-Bearing Cash	766		1,053		-27.3%
	Total Interest & Fee Income	130,402		122,895		6.1%
	Interest Expense:
	Transaction Deposits	283		243		16.5%
	Savings Deposits	785		679		15.6%
	Time Deposits	330		386		-14.5%
	Short-Term Borrowed Funds	53		34		55.9%
	Other Borrowed Funds	-		1		-100.0%
	Total Interest Expense	1,451		1,343		8.0%
	Net Interest Income	128,951		121,552		6.1%
	Provision for Credit Losses	-		4,300		n/m
	Noninterest Income:
	Service Charges	10,117		10,697		-5.4%
	Merchant Processing Services	8,998		7,495		20.1%
	Debit Card Fees	5,132		4,538		13.1%
	Trust Fees	2,467		2,247		9.8%
	ATM Processing Fees	1,792		1,703		5.2%
	Other Service Fees	1,435		1,380		4.0%
	Financial Services Commissions	260		306		-15.0%
	Securities Gains	34		71		n/m
	Other Operating	2,268		3,241		-30.0%
	Total Noninterest Income	32,503		31,678		2.6%
	Noninterest Expense:
	Salaries and Benefits	36,575		38,458		-4.9%
	Occupancy and Equipment	14,447		14,737		-2.0%
	Outsourced Data Processing	7,244		7,067		2.5%
	Professional Fees	2,496		1,701		46.7%
	Courier Service	1,605		1,499		7.1%
	Amortization of Identifiable Intangibles	204		218		-6.4%
	Other Operating	11,323		10,341		9.5%
	Total Noninterest Expense	73,894		74,021		-0.2%
	Income Before Income Taxes	87,560		74,909		16.9%
	Income Tax Provision	22,771		18,334		24.2%
	Net Income	$64,789		$56,575		14.5%
	Average Common Shares Outstanding	26,851		26,977		-0.5%
	Diluted Common Shares Outstanding	26,868		26,998		-0.5%
	Per Common Share Data:
	Basic Earnings	$2.41		$2.10		14.8%
	Diluted Earnings	2.41		2.10		14.8%
	Dividends Paid	1.23		1.23		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) In the third quarter 2021, the Company recorded a $2 thousand reversal of provision for credit losses on Debt Securities Held To Maturity and the balance of the allowance for credit losses on Debt Securities Held To Maturity was reduced from $9 thousand at June 30, 2021 to $7 thousand at September 30, 2021.
	(3) The Company adopted ASU 2016-13, effective January 1, 2020. Debt Securities Held To Maturity of $356,106 thousand at September 30, 2021, $414,413 thousand at June 30, 2021 and $577,795 thousand at September 30, 2020 are net of related reserve for expected credit losses of $7 thousand, $9 thousand and $16 thousand, respectively.
	(4) Interest income on Debt Securities Available For Sale included make-whole interest income on called corporate bonds of $732 thousand in the third quarter 2021, $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