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Westamerica Bancorporation (WABC) SEC Filing 8-K Material Event for the period ending Thursday, July 15, 2021

Westamerica Bancorporation

CIK: 311094 Ticker: WABC

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.    
  (in thousands except per-share amounts)
    % 
  Q2'2021Q2'2020ChangeQ1'2021
      
 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%
      
    % 
  6/30'21YTD6/30'20YTDChange 
      
 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.    
  (dollars in thousands)
    % 
  Q2'2021Q2'2020ChangeQ1'2021
      
 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%
      
    % 
  6/30'21YTD6/30'20YTDChange 
      
 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.    
  (average volume, dollars in thousands)
    % 
  Q2'2021Q2'2020ChangeQ1'2021
      
 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%
      
    % 
  6/30'21YTD6/30'20YTDChange 
      
 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.  
  (average volume, dollars in thousands)
    % 
  Q2'2021Q2'2020ChangeQ1'2021
      
 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%
      
    % 
  6/30'21YTD6/30'20YTDChange 
      
 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.    
  (dollars in thousands) 
  Q2'2021 
  AverageIncome/Yield (a) / 
  VolumeExpenseRate (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% 
      
  Q2'2020 
  AverageIncome/Yield (a) / 
  VolumeExpenseRate (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.    
  (dollars in thousands except per-share amounts)
    % 
  Q2'2021Q2'2020ChangeQ1'2021
      
 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 
      
    % 
  6/30'21YTD6/30'20YTDChange 
      
 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.    
  (dollars in thousands)
    % 
  Q2'2021Q2'2020ChangeQ1'2021
      
 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%
      
    % 
  6/30'21YTD6/30'20YTDChange 
      
 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.    
  (dollars in thousands)
    % 
  Q2'2021Q2'2020ChangeQ1'2021
      
 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%
      
    % 
  6/30'21YTD6/30'20YTDChange 
      
 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%  
      
  (dollars in thousands)
    % 
  6/30/216/30/20Change3/31/21
 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.    
  (dollars in thousands)
    % 
  6/30/216/30/20Change3/31/21
      
 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.    
  (in thousands, except per-share amounts)
    % 
  6/30/216/30/20Change3/31/21
      
 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    
  (shares in thousands)
    % 
  Q2'2021Q2'2020ChangeQ1'2021
      
 Total Shares Repurchased -  13 n/m 4 
 Average Repurchase Price$- $52.27 n/m$61.09 
 Net Shares Issued (1) (1)n/m (57)
      
    % 
  6/30'21YTD6/30'20YTDChange 
      
 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.    
  (unaudited, dollars in thousands)
    % 
  6/30/216/30/20Change3/31/21
 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.    
  (unaudited, in thousands except per-share amounts)
    % 
  Q2'2021Q2'2020ChangeQ1'2021
 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 
      
    % 
  6/30'21YTD6/30'20YTDChange 
 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    

 



 

 

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Ticker: WABC
CIK: 311094
Form Type: 8-K Corporate News
Accession Number: 0001171843-21-004903
Submitted to the SEC: Thu Jul 15 2021 12:45:59 PM EST
Accepted by the SEC: Thu Jul 15 2021
Period: Thursday, July 15, 2021
Industry: National Commercial Banks
Events:
  1. Earnings Release
  2. Financial Exhibit

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