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Westamerica Bancorporation (WABC) SEC Filing 8-K Material Event for the period ending Thursday, October 21, 2021

Westamerica Bancorporation

CIK: 311094 Ticker: WABC

EXHIBIT 99.1

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 ChangeQ2'2021 
         
 Net Interest and Fee Income (FTE)$43,952 $41,780 5.2%$44,499 
 Provision for Credit Losses- - n/m- 
 Noninterest Income11,282 10,476 7.7%11,032 
 Noninterest Expense24,697 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 Outstanding26,866 26,930 -0.2%26,865 
 Diluted Average Common Shares26,875 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 Share0.82 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 Income32,503 31,678 2.6%  
 Noninterest Expense73,894 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 Outstanding26,851 26,977 -0.5%  
 Diluted Average Common Shares26,868 26,998 -0.5%  
         
 Operating Ratios:       
 Basic Earnings Per Common Share$2.41 $2.10 14.8%  
 Diluted Earnings Per Common Share2.41 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 ChangeQ2'2021 
         
 Interest and Fee Income (FTE)$44,444 $42,246 5.2%$44,983 
 Interest Expense492 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 Liabilities3,370,840 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 Expense1,451 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 Liabilities3,267,311 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 ChangeQ2'2021 
         
 Total Assets$7,158,462 $6,414,399 11.6%$7,004,695 
 Total Earning Assets6,754,281 6,001,287 12.5%6,603,343 
 Total Loans1,176,114 1,312,758 -10.4%1,257,087 
   Total Commercial Loans333,327 444,091 -24.9%413,797 
     Paycheck Protection Program (PPP) Loans144,641 243,104 -40.5%207,515 
     Commercial Loans188,686 200,987 -6.1%206,282 
   Commercial RE Loans 543,429 566,626 -4.1%546,470 
   Consumer Loans299,358 302,041 -0.9%296,820 
 Total Investment Securities4,615,540 4,360,119 5.9%4,394,169 
   Debt Securities Available For Sale4,235,141 3,750,737 12.9%3,953,016 
   Debt Securities Held To Maturity380,399 609,382 -37.6%441,153 
 Total Interest-Bearing Cash962,627 328,410 193.1%952,087 
         
 Loans/Deposits18.9% 23.7%  20.7% 
         
      %  
  9/30'21YTD 9/30'20YTD Change  
         
 Total Assets$6,939,636 $6,044,098 14.8%  
 Total Earning Assets6,535,949 5,627,517 16.1%  
 Total Loans1,227,971 1,223,250 0.4%  
   Total Commercial Loans380,638 337,566 12.8%  
     PPP Loans180,214 125,632 43.4%  
     Commercial Loans200,424 211,934 -5.4%  
   Commercial RE Loans 549,639 574,950 -4.4%  
   Consumer Loans297,694 310,734 -4.2%  
 Total Investment Securities4,484,084 4,055,733 10.6%  
   Debt Securities Available For Sale4,046,289 3,394,467 19.2%  
   Debt Securities Held To Maturity437,795 661,266 -33.8%  
 Total Interest-Bearing Cash823,894 348,534 136.4%  
         
 Loans/Deposits20.4% 23.6%    
         
4. Deposits, Other Interest-Bearing Liabilities & Equity.     
  (average volume, dollars in thousands)      
      %  
  Q3'2021 Q3'2020 ChangeQ2'2021 
         
 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 Transaction1,246,667 1,039,833 19.9%1,208,584 
   Savings1,864,401 1,634,814 14.0%1,822,625 
   Time greater than $100K68,811 72,045 -4.5%70,750 
   Time less than $100K83,414 90,994 -8.3%84,512 
 Total Short-Term Borrowings107,547 94,031 14.4%111,750 
 Shareholders' Equity755,682 714,400 5.8%744,746 
         
 Demand Deposits/       
    Total Deposits47.6% 48.7%  47.5% 
 Transaction & Savings        
    Deposits / Total Deposits97.6% 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 Transaction1,195,762 987,666 21.1%  
   Savings1,811,711 1,563,387 15.9%  
   Time greater than $100K70,258 72,718 -3.4%  
   Time less than $100K84,508 92,531 -8.7%  
 Total Short-Term Borrowings105,001 68,917 52.4%  
 Other Borrowed Funds71 232 -69.5%  
 Shareholders' Equity745,382 708,559 5.2%  
         
 Demand Deposits/       
    Total Deposits47.4% 47.7%    
 Transaction & Savings        
    Deposits / Total Deposits97.4% 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 Loans144,641 1,865 5.12%  
       Commercial Loans (FTE)188,686 2,001 4.21%  
     Commercial RE Loans 543,429 7,457 5.44%  
     Consumer Loans299,358 3,570 4.73%  
   Total Investments (FTE)4,615,540 29,182 2.53%  
   Total Interest-Bearing Cash962,627 369 0.15%  
         
 Interest Expense Paid       
   Total Earning Assets 6,754,281 492 0.03%  
   Total Interest-Bearing Liabilities3,370,840 492 0.06%  
   Total Interest-Bearing Deposits3,263,293 473 0.06%  
     Interest-Bearing Transaction1,246,667 101 0.03%  
     Savings1,864,401 272 0.06%  
     Time less than $100K83,414 42 0.20%  
     Time greater than $100K68,811 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 Loans243,104 2,501 4.08%  
       Commercial Loans (FTE)200,987 2,147 4.25%  
     Commercial RE Loans 566,626 7,298 5.12%  
     Consumer Loans302,041 3,448 4.54%  
   Total Investments (FTE)4,360,119 26,768 2.46%  
   Total Interest-Bearing Cash328,410 84 0.10%  
         
 Interest Expense Paid       
   Total Earning Assets 6,001,287 466 0.03%  
   Total Interest-Bearing Liabilities2,931,717 466 0.06%  
   Total Interest-Bearing Deposits2,837,686 450 0.06%  
     Interest-Bearing Transaction1,039,833 85 0.03%  
     Savings1,634,814 238 0.06%  
     Time less than $100K90,994 47 0.21%  
     Time greater than $100K72,045 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 ChangeQ2'2021 
         
 Service Charges on Deposits$3,578 $3,298 8.5%$3,235 
 Merchant Processing Services3,159 2,860 10.5%3,279 
 Debit Card Fees1,740 1,611 8.0%1,791 
 Trust Fees839 756 11.0%827 
 ATM Processing Fees573 606 -5.4%618 
 Other Service Fees475 454 4.5%491 
 Financial Services Commissions95 58 63.8%95 
 Securities Gains- - n/m34 
 Other Noninterest Income823 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 Services8,998 7,495 20.1%  
 Debit Card Fees5,132 4,538 13.1%  
 Trust Fees2,467 2,247 9.8%  
 ATM Processing Fees1,792 1,703 5.2%  
 Other Service Fees1,435 1,380 4.0%  
 Financial Services Commissions260 306 -15.0%  
 Securities Gains34 71 n/m  
 Other Noninterest Income2,268 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 ChangeQ2'2021 
         
 Salaries & Benefits$11,813 $12,540 -5.8%$12,097 
 Occupancy and Equipment4,759 5,014 -5.1%4,808 
 Outsourced Data Processing2,429 2,338 3.9%2,425 
 Professional Fees724 669 8.2%830 
 Courier Service534 500 6.8%567 
 Amortization of        
   Identifiable Intangibles67 72 -6.9%68 
 Other Noninterest Expense4,371 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 Equipment14,447 14,737 -2.0%  
 Outsourced Data Processing7,244 7,067 2.5%  
 Professional Fees2,496 1,701 46.7%  
 Courier Service1,605 1,499 7.1%  
 Amortization of        
   Identifiable Intangibles204 218 -6.4%  
 Other Noninterest Expense11,323 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 ChangeQ2'2021 
         
 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 Change6/30/21 
 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 Change6/30/21 
         
 Nonperforming Loans:       
    Nonperforming Nonaccrual$801 $409 95.8%$652 
    Performing Nonaccrual436 3,971 -89.0%3,564 
 Total Nonaccrual Loans1,237 4,380 -71.8%4,216 
 90+ Days Past Due Accruing Loans537 360 49.2%167 
 Total1,774 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 /       
 Loans2.11% 1.84%  1.99% 
 Nonperforming Loans/Total Loans0.16% 0.36%  0.37% 
         
10. Capital.       
  (in thousands, except per-share amounts)     
      %  
  9/30/21 9/30/20 Change6/30/21 
         
 Shareholders' Equity$837,953 $825,576 1.5%$842,196 
 Total Assets7,403,573 6,563,215 12.8%7,147,779 
 Shareholders' Equity/       
    Total Assets11.32% 12.58%  11.78% 
 Shareholders' Equity/       
    Total Loans73.99% 63.02%  70.49% 
 Tangible Common Equity Ratio9.83% 10.91%  10.24% 
 Common Shares Outstanding26,866 26,898 -0.1%26,865 
 Common Equity Per Share$31.19 $30.69 1.6%$31.35 
 Market Value Per Common Share56.26 54.35 3.5%58.03 
         
  (shares in thousands)      
      %  
  Q3'2021 Q3'2020 ChangeQ2'2021 
 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 Repurchased4 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 Change6/30/21 
 Assets:       
   Cash and Due from Banks$1,011,048 $398,964 153.4%$939,929 
         
   Debt Securities Available For Sale4,602,706 3,983,994 15.5%4,304,162 
   Debt Securities Held To Maturity (3)356,106 577,795 -38.4%414,413 
         
   Loans1,132,472 1,310,009 -13.6%1,194,834 
   Allowance For Credit Losses on Loans(23,882)(24,142)-1.1%(23,737)
   Total Loans, net1,108,590 1,285,867 -13.8%1,171,097 
         
   Other Real Estate Owned- 43 n/m- 
   Premises and Equipment, net31,603 33,437 -5.5%32,080 
   Identifiable Intangibles, net900 1,173 -23.3%967 
   Goodwill 121,673 121,673 0.0%121,673 
   Other Assets170,947 160,269 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 Transaction1,257,460 1,040,712 20.8%1,200,634 
     Savings1,894,290 1,653,000 14.6%1,849,258 
     Time148,882 161,450 -7.8%153,577 
   Total Deposits6,288,961 5,539,190 13.5%6,076,389 
         
   Short-Term Borrowed Funds119,102 107,973 10.3%90,043 
   Other Liabilities157,557 90,476 74.1%139,151 
 Total Liabilities6,565,620 5,737,639 14.4%6,305,583 
         
 Shareholders' Equity:       
   Common Equity:       
     Paid-In Capital470,711 467,236 0.7%470,365 
     Accumulated Other       
       Comprehensive Income71,284 103,623 n/m86,921 
     Retained Earnings295,958 254,717 16.2%284,910 
 Total Shareholders' Equity837,953 825,576 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 ChangeQ2'2021 
 Interest & Fee Income:       
 Loans$14,789 $15,291 -3.3%$15,064 
 Equity Securities109 103 5.8%110 
 Debt Securities Available For Sale (4)26,452 22,652 16.8%26,481 
 Debt Securities Held To Maturity2,091 3,235 -35.4%2,362 
 Interest-Bearing Cash369 84 339.3%259 
 Total Interest & Fee Income43,810 41,365 5.9%44,276 
         
 Interest Expense:       
   Transaction Deposits101 85 18.8%93 
   Savings Deposits272 238 14.3%263 
   Time Deposits100 127 -21.3%110 
   Short-Term Borrowed Funds19 16 18.7%18 
 Total Interest Expense492 466 5.6%484 
         
 Net Interest Income43,318 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 Services3,159 2,860 10.5%3,279 
   Debit Card Fees1,740 1,611 8.0%1,791 
   Trust Fees839 756 11.0%827 
   ATM Processing Fees573 606 -5.4%618 
   Other Service Fees475 454 4.5%491 
   Financial Services Commissions95 58 63.8%95 
   Securities Gains- - n/m34 
   Other Noninterest Income823 833 -1.2%662 
 Total Noninterest Income11,282 10,476 7.7%11,032 
         
 Noninterest Expense:       
   Salaries and Benefits11,813 12,540 -5.8%12,097 
   Occupancy and Equipment4,759 5,014 -5.1%4,808 
   Outsourced Data Processing2,429 2,338 3.9%2,425 
   Professional Fees724 669 8.2%830 
   Courier Service534 500 6.8%567 
   Amortization of Identifiable Intangibles67 72 -6.9%68 
   Other Noninterest Expense4,371 3,470 26.0%3,496 
 Total Noninterest Expense24,697 24,603 0.4%24,291 
         
 Income Before Income Taxes29,903 26,772 11.7%30,533 
 Income Tax Provision7,840 6,721 16.7%7,954 
 Net Income$22,063 $20,051 10.0%$22,579 
         
 Average Common Shares Outstanding26,866 26,930 -0.2%26,865 
 Diluted Common Shares Outstanding26,875 26,946 -0.3%26,887 
         
 Per Common Share Data:       
   Basic Earnings$0.82 $0.74 10.8%$0.84 
   Diluted Earnings0.82 0.74 10.8%0.84 
   Dividends Paid0.41 0.41 0.0%0.41 
         
      %  
  9/30'21YTD 9/30'20YTD Change  
 Interest & Fee Income:       
 Loans$44,434 $44,378 0.1%  
 Equity Securities329 309 6.5%  
 Debt Securities Available For Sale (4)77,822 66,396 17.2%  
 Debt Securities Held To Maturity7,051 10,759 -34.5%  
 Interest-Bearing Cash766 1,053 -27.3%  
 Total Interest & Fee Income130,402 122,895 6.1%  
         
 Interest Expense:       
   Transaction Deposits283 243 16.5%  
   Savings Deposits785 679 15.6%  
   Time Deposits330 386 -14.5%  
   Short-Term Borrowed Funds53 34 55.9%  
   Other Borrowed Funds- 1 -100.0%  
 Total Interest Expense1,451 1,343 8.0%  
         
 Net Interest Income128,951 121,552 6.1%  
         
 Provision for Credit Losses- 4,300 n/m  
         
 Noninterest Income:       
   Service Charges 10,117 10,697 -5.4%  
   Merchant Processing Services8,998 7,495 20.1%  
   Debit Card Fees5,132 4,538 13.1%  
   Trust Fees2,467 2,247 9.8%  
   ATM Processing Fees1,792 1,703 5.2%  
   Other Service Fees1,435 1,380 4.0%  
   Financial Services Commissions260 306 -15.0%  
   Securities Gains34 71 n/m  
   Other Operating2,268 3,241 -30.0%  
 Total Noninterest Income32,503 31,678 2.6%  
         
 Noninterest Expense:       
   Salaries and Benefits36,575 38,458 -4.9%  
   Occupancy and Equipment14,447 14,737 -2.0%  
   Outsourced Data Processing7,244 7,067 2.5%  
   Professional Fees2,496 1,701 46.7%  
   Courier Service1,605 1,499 7.1%  
   Amortization of Identifiable Intangibles204 218 -6.4%  
   Other Operating11,323 10,341 9.5%  
 Total Noninterest Expense73,894 74,021 -0.2%  
         
 Income Before Income Taxes87,560 74,909 16.9%  
 Income Tax Provision22,771 18,334 24.2%  
 Net Income$64,789 $56,575 14.5%  
         
 Average Common Shares Outstanding26,851 26,977 -0.5%  
 Diluted Common Shares Outstanding26,868 26,998 -0.5%  
         
 Per Common Share Data:       
 Basic Earnings$2.41 $2.10 14.8%  
 Diluted Earnings2.41 2.10 14.8%  
 Dividends Paid1.23 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       

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Ticker: WABC
CIK: 311094
Form Type: 8-K Corporate News
Accession Number: 0001171843-21-007059
Submitted to the SEC: Thu Oct 21 2021 4:56:00 PM EST
Accepted by the SEC: Thu Oct 21 2021
Period: Thursday, October 21, 2021
Industry: National Commercial Banks
Events:
  1. Earnings Release
  2. Financial Exhibit

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