Westamerica Bancorporation Reports Fourth Quarter 2021 Financial Results - Form 8-K

Westamerica Bancorporation Reports Fourth Quarter 2021 Financial Results

SAN RAFAEL, Calif., Jan. 20, 2022 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the fourth quarter 2021 of $21.7 million and diluted earnings per common share ("EPS") of $0.81. Fourth quarter 2021 results compare to net income of $22.1 million and EPS of $0.82 for the third quarter 2021, which included "make-whole" interest income on corporate bonds redeemed before maturity, which increased EPS $0.02.

"Westamerica's operating expenses remained well managed in the fourth quarter 2021, delivering fifty-six percent of revenue to pre-tax income. Checking and savings deposits represented ninety-eight percent of the Company's average deposit base during the fourth quarter 2021, placing limited reliance on higher-costing time deposits. Credit quality remained solid with nonperforming loans of $1.0 million at December 30, 2021," said Chairman, President and CEO David Payne. "Fourth quarter 2021 results generated an annualized 11.2 percent return on average common equity. Shareholders were paid a $0.42 per common share dividend during the fourth quarter 2021, representing fifty-two percent of diluted earnings per share," concluded Payne.

Net interest income on a fully-taxable equivalent (FTE) basis was $43.1 million for the fourth quarter 2021, compared to $44.0 million for the third quarter 2021, which included "make-whole" interest income on corporate bonds redeemed prior to maturity of $732 thousand. Interest income on Paycheck Protection Program ("PPP") loans was $1.2 million for the fourth quarter 2021, compared to $1.9 million for the third quarter 2021. Average PPP loan balances declined to $69 million for the fourth quarter 2021 from $145 million for the third quarter 2021; at December 31, 2021 PPP loans totaled $46 million. Checking and savings deposits represented ninety-eight percent of the Company's average deposit base during the fourth quarter 2021, generating a low 0.03 percent annualized cost of funding interest-earning assets.

At December 31, 2021, nonperforming loans totaled $1.0 million and the allowance for credit losses on loans was $23.5 million. The Company continues to work with loan customers requesting loan payment deferrals due to economic weakness caused by the pandemic. At December 31, 2021, loans with deferred payments totaled $84 thousand, all of which were consumer automobile loans.

Noninterest income for the fourth quarter 2021 totaled $10.8 million, compared to noninterest income for the third quarter 2021 of $11.3 million.

Noninterest expense for the fourth quarter 2021 was $23.9 million compared to $24.7 million for the third quarter 2021; the lower fourth quarter operating expenses were primarily personnel benefit costs and other expenses.

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

[email protected]

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 September 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 January 20, 2022
WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
December 31, 2021
1. Net Income Summary.
		(in thousands except per-share amounts)
				%
		Q4'2021	Q4'2020	Change	Q3'2021
	Net Interest and Fee Income (FTE)	$43,117		$43,292		-0.4	%	$43,952
	Provision for Credit Losses		-			-		n/m		-
	Noninterest Income		10,842			13,959		-22.3	%		11,282
	Noninterest Expense		23,912			24,545		-2.6	%		24,697
	Income Before Taxes (FTE)		30,047			32,706		-8.1	%		30,537
	Income Tax Provision (FTE)		8,327			8,868		-6.1	%		8,474
	Net Income	$21,720		$23,838		-8.9	%	$22,063
	Average Common Shares Outstanding		26,866			26,838		0.1	%		26,866
	Diluted Average Common Shares		26,875			26,849		0.1	%		26,875
	Operating Ratios:
	Basic Earnings Per Common Share	$0.81		$0.89		-9.0	%	$0.82
	Diluted Earnings Per Common Share		0.81			0.89		-9.0	%		0.82
	Return On Assets (a)		1.17	%		1.44	%			1.22	%
	Return On Common Equity (a)		11.2	%		13.2	%			11.6	%
	Net Interest Margin (FTE) (a)		2.49	%		2.81	%			2.60	%
	Efficiency Ratio (FTE)		44.3	%		42.9	%			44.7	%
	Dividends Paid Per Common Share	$0.42		$0.41		2.4	%	$0.41
	Common Dividend Payout Ratio		52	%		46	%			50	%
				%
		12/31'21YTD	12/31'20YTD	Change
	Net Interest and Fee Income (FTE)	$174,151		$167,682		3.9	%
	Provision for Credit Losses		-			4,300		n/m
	Noninterest Income		43,345			45,637		-5.0	%
	Noninterest Expense		97,806			98,566		-0.8	%
	Income Before Taxes (FTE)		119,690			110,453		8.4	%
	Income Tax Provision (FTE)		33,181			30,040		10.5	%
	Net Income	$86,509		$80,413		7.6	%
	Average Common Shares Outstanding		26,855			26,942		-0.3	%
	Diluted Average Common Shares		26,870			26,960		-0.3	%
	Operating Ratios:
	Basic Earnings Per Common Share	$3.22		$2.98		8.1	%
	Diluted Earnings Per Common Share		3.22			2.98		8.1	%
	Return On Assets		1.23	%		1.30	%
	Return On Common Equity		11.5	%		11.3	%
	Net Interest Margin (FTE)		2.62	%		2.91	%
	Efficiency Ratio (FTE)		45.0	%		46.2	%
	Dividends Paid Per Common Share	$1.65		$1.64		0.6	%
	Common Dividend Payout Ratio		51	%		55	%
2. Net Interest Income.
		(dollars in thousands)
				%
		Q4'2021	Q4'2020	Change	Q3'2021
	Interest and Fee Income (FTE)	$43,621		$43,773		-0.3	%	$44,444
	Interest Expense		504			481		4.8	%		492
	Net Interest and Fee Income (FTE)	$43,117		$43,292		-0.4	%	$43,952
	Average Earning Assets	$6,919,528		$6,156,749		12.4	%	$6,754,281
	Average Interest-
	Bearing Liabilities		3,468,111			3,034,240		14.3	%		3,370,840
	Yield on Earning Assets (FTE) (a)		2.52	%		2.84	%			2.63	%
	Cost of Funds (a)		0.03	%		0.03	%			0.03	%
	Net Interest Margin (FTE) (a)		2.49	%		2.81	%			2.60	%
	Interest Expense/
	Interest-Bearing Liabilities (a)		0.06	%		0.06	%			0.06	%
	Net Interest Spread (FTE) (a)		2.46	%		2.78	%			2.57	%
				%
		12/31'21YTD	12/31'20YTD	Change
	Interest and Fee Income (FTE)	$176,106		$169,506		3.9	%
	Interest Expense		1,955			1,824		7.2	%
	Net Interest and Fee Income (FTE)	$174,151		$167,682		3.9	%
	Average Earning Assets	$6,632,632		$5,760,548		15.1	%
	Average Interest-
	Bearing Liabilities		3,317,924			2,847,988		16.5	%
	Yield on Earning Assets (FTE)		2.65	%		2.94	%
	Cost of Funds		0.03	%		0.03	%
	Net Interest Margin (FTE)		2.62	%		2.91	%
	Interest Expense/
	Interest-Bearing Liabilities		0.06	%		0.06	%
	Net Interest Spread (FTE)		2.59	%		2.88	%
3. Loans & Other Earning Assets.
		(average volume, dollars in thousands)
				%
		Q4'2021	Q4'2020	Change	Q3'2021
	Total Assets	$7,334,977		$6,562,753		11.8	%	$7,158,462
	Total Earning Assets		6,919,528			6,156,749		12.4	%		6,754,281
	Total Loans		1,097,698			1,286,480		-14.7	%		1,176,114
	Total Commercial Loans		259,007			426,564		-39.3	%		333,327
	Paycheck Protection Program (PPP) Loans		68,870			227,828		-69.8	%		144,641
	Commercial Loans		190,137			198,736		-4.3	%		188,686
	Commercial RE Loans		538,177			561,394		-4.1	%		543,429
	Consumer Loans		300,514			298,522		0.7	%		299,358
	Total Investment Securities		4,866,476			4,430,592		9.8	%		4,615,540
	Debt Securities Available For Sale		4,533,494			3,884,451		16.7	%		4,235,141
	Debt Securities Held To Maturity		332,982			546,141		-39.0	%		380,399
	Total Interest-Bearing Cash		955,354			439,677		117.3	%		962,627
	Loans/Deposits		17.3	%		22.7	%			18.9	%
				%
		12/31'21YTD	12/31'20YTD	Change
	Total Assets	$7,039,284		$6,174,470		14.0	%
	Total Earning Assets		6,632,632			5,760,548		15.1	%
	Total Loans		1,195,135			1,239,144		-3.6	%
	Total Commercial Loans		349,981			359,937		-2.8	%
	PPP Loans		152,149			151,320		0.5	%
	Commercial Loans		197,832			208,617		-5.2	%
	Commercial RE Loans		546,750			571,543		-4.3	%
	Consumer Loans		298,404			307,664		-3.0	%
	Total Investment Securities		4,580,468			4,149,960		10.4	%
	Debt Securities Available For Sale		4,169,091			3,517,633		18.5	%
	Debt Securities Held To Maturity		411,377			632,327		-34.9	%
	Total Interest-Bearing Cash		857,029			371,444		130.7	%
	Loans/Deposits		19.6	%		23.4	%
4. Deposits, Other Interest-Bearing Liabilities & Equity.
		(average volume, dollars in thousands)
				%
		Q4'2021	Q4'2020	Change	Q3'2021
	Total Deposits	$6,349,137		$5,655,768		12.3	%	$6,223,500
	Noninterest Demand		3,022,787			2,736,348		10.5	%		2,960,207
	Interest-Bearing Transaction		1,245,385			1,071,576		16.2	%		1,246,667
	Savings		1,934,220			1,688,031		14.6	%		1,864,401
	Time greater than $100K		65,920			71,306		-7.6	%		68,811
	Time less than $100K		80,825			88,507		-8.7	%		83,414
	Total Short-Term Borrowings		141,761			114,820		23.5	%		107,547
	Shareholders' Equity		766,358			720,473		6.4	%		755,682
	Demand Deposits/
	Total Deposits		47.6	%		48.4	%			47.6	%
	Transaction & Savings
	Deposits / Total Deposits		97.7	%		97.2	%			97.6	%
				%
		12/31'21YTD	12/31'20YTD	Change
	Total Deposits	$6,100,848		$5,306,177		15.0	%
	Noninterest Demand		2,897,244			2,538,819		14.1	%
	Interest-Bearing Transaction		1,208,269			1,008,758		19.8	%
	Savings		1,842,590			1,594,718		15.5	%
	Time greater than $100K		69,165			72,363		-4.4	%
	Time less than $100K		83,580			91,519		-8.7	%
	Total Short-Term Borrowings		114,267			80,456		42.0	%
	Other Borrowed Funds		53			174		-69.6	%
	Shareholders' Equity		750,669			711,554		5.5	%
	Demand Deposits/
	Total Deposits		47.5	%		47.8	%
	Transaction & Savings
	Deposits / Total Deposits		97.5	%		96.9	%
5. Interest Yields Earned & Rates Paid.
		(dollars in thousands)
		Q4'2021
		Average	Income/	Yield (a) /
		Volume	Expense	Rate (a)
	Interest & Fee Income Earned
	Total Earning Assets (FTE)	$6,919,528		$43,621		2.52	%
	Total Loans (FTE)		1,097,698			13,223		4.78	%
	Total Commercial Loans (FTE)		259,007			3,187		4.88	%
	PPP Loans		68,870			1,208		6.96	%
	Commercial Loans (FTE)		190,137			1,979		4.13	%
	Commercial RE Loans		538,177			6,492		4.79	%
	Consumer Loans		300,514			3,544		4.68	%
	Total Investments (FTE)		4,866,476			30,032		2.47	%
	Total Interest-Bearing Cash		955,354			366		0.15	%
	Interest Expense Paid
	Total Earning Assets		6,919,528			504		0.03	%
	Total Interest-Bearing Liabilities		3,468,111			504		0.06	%
	Total Interest-Bearing Deposits		3,326,350			479		0.06	%
	Interest-Bearing Transaction		1,245,385			95		0.03	%
	Savings		1,934,220			282		0.06	%
	Time less than $100K		80,825			41		0.20	%
	Time greater than $100K		65,920			61		0.37	%
	Total Short-Term Borrowings		141,761			25		0.07	%
	Net Interest Income and
	Margin (FTE)		$43,117		2.49	%
		Q4'2020
		Average	Income/	Yield (a) /
		Volume	Expense	Rate (a)
	Interest & Fee Income Earned
	Total Earning Assets (FTE)	$6,156,749		$43,773		2.84	%
	Total Loans (FTE)		1,286,480			15,103		4.67	%
	Total Commercial Loans (FTE)		426,564			4,459		4.16	%
	PPP Loans		227,828			2,342		4.08	%
	Commercial Loans (FTE)		198,736			2,117		4.24	%
	Commercial RE Loans		561,394			7,288		5.16	%
	Consumer Loans		298,522			3,356		4.47	%
	Total Investments (FTE)		4,430,592			28,558		2.58	%
	Total Interest-Bearing Cash		439,677			112		0.10	%
	Interest Expense Paid
	Total Earning Assets		6,156,749			481		0.03	%
	Total Interest-Bearing Liabilities		3,034,240			481		0.06	%
	Total Interest-Bearing Deposits		2,919,420			462		0.06	%
	Interest-Bearing Transaction		1,071,576			90		0.03	%
	Savings		1,688,031			246		0.06	%
	Time less than $100K		88,507			45		0.20	%
	Time greater than $100K		71,306			81		0.45	%
	Total Short-Term Borrowings		114,820			19		0.07	%
	Net Interest Income and
	Margin (FTE)		$43,292		2.81	%
6. Noninterest Income.
		(dollars in thousands except per-share amounts)
				%
		Q4'2021	Q4'2020	Change	Q3'2021
	Service Charges on Deposits	$3,580		$3,452		3.7	%	$3,578
	Merchant Processing Services		3,000			2,713		10.6	%		3,159
	Debit Card Fees		1,727			1,643		5.1	%		1,740
	Trust Fees		844			765		10.3	%		839
	ATM Processing Fees		488			570		-14.4	%		573
	Other Service Fees		449			457		-1.8	%		475
	Financial Services Commissions		96			66		45.5	%		95
	Gains on Sales of Real Property		-			3,536		n/m		-
	Other Noninterest Income		658			757		-13.1	%		823
	Total Noninterest Income	$10,842		$13,959		-22.3	%	$11,282
	Total Revenue (FTE)	$53,959		$57,251		-5.8	%	$55,234
	Noninterest Income/Revenue (FTE)		20.1	%		24.4	%			20.4	%
	Service Charges/Avg. Deposits (a)		0.22	%		0.24	%			0.23	%
	Total Revenues (FTE) Per Avg.
	Common Share (a)	$7.97		$8.49		-6.1	%	$8.16
				%
		12/31'21YTD	12/31'20YTD	Change
	Service Charges on Deposits	$13,697		$14,149		-3.2	%
	Merchant Processing Services		11,998			10,208		17.5	%
	Debit Card Fees		6,859			6,181		11.0	%
	Trust Fees		3,311			3,012		9.9	%
	ATM Processing Fees		2,280			2,273		0.3	%
	Other Service Fees		1,884			1,837		2.6	%
	Financial Services Commissions		356			372		-4.3	%
	Gains on Sales of Real Property		-			3,536		-100.0	%
	Securities Gains		34			71		n/m
	Other Noninterest Income		2,926			3,998		-26.8	%
	Total Noninterest Income	$43,345		$45,637		-5.0	%
	Total Revenue (FTE)	$217,496		$213,319		2.0	%
	Noninterest Income/Revenue (FTE)		19.9	%		21.4	%
	Service Charges/Avg. Deposits		0.22	%		0.27	%
	Total Revenues (FTE) Per Avg./
	Common Share	$8.10		$7.92		2.3	%
7. Noninterest Expense.
		(dollars in thousands)
				%
		Q4'2021	Q4'2020	Change	Q3'2021
	Salaries & Benefits	$11,436		$12,291		-7.0	%	$11,813
	Occupancy and Equipment		4,692			4,900		-4.2	%		4,759
	Outsourced Data Processing		2,357			2,359		-0.1	%		2,429
	Professional Fees		757			722		4.8	%		724
	Courier Service		572			502		13.9	%		534
	Amortization of
	Identifiable Intangibles		65			69		-5.8	%		67
	Other Noninterest Expense		4,033			3,702		8.9	%		4,371
	Total Noninterest Expense	$23,912		$24,545		-2.6	%	$24,697
	Noninterest Expense/
	Avg. Earning Assets (a)		1.37	%		1.59	%			1.45	%
	Noninterest Expense/Revenues (FTE)		44.3	%		42.9	%			44.7	%
				%
		12/31'21YTD	12/31'20YTD	Change
	Salaries & Benefits	$48,011		$50,749		-5.4	%
	Occupancy and Equipment		19,139			19,637		-2.5	%
	Outsourced Data Processing		9,601			9,426		1.9	%
	Professional Fees		3,253			2,423		34.3	%
	Courier Service		2,177			2,001		8.8	%
	Amortization of
	Identifiable Intangibles		269			287		-6.3	%
	Other Noninterest Expense		15,356			14,043		9.3	%
	Total Noninterest Expense	$97,806		$98,566		-0.8	%
	Noninterest Expense/
	Avg. Earning Assets		1.47	%		1.71	%
	Noninterest Expense/Revenues (FTE)		45.0	%		46.2	%
8. Allowance for Credit Losses.
		(dollars in thousands)
				%
		Q4'2021	Q4'2020	Change	Q3'2021
	Average Total Loans	$1,097,698		$1,286,480		-14.7	%	$1,176,114
	Beginning of Period Allowance for
	Credit Losses on Loans (ACLL)	$23,882		$24,142		-1.1	%	$23,737
	Provision for Credit Losses		-			7		n/m		2
	Net ACLL (Losses) Recoveries		(368	)		(295	)	24.7	%		143
	End of Period ACLL	$23,514		$23,854		-1.4	%	$23,882
	Gross ACLL Recoveries /
	Gross ACLL Losses		64	%		69	%			115	%
	Net ACLL Losses (Recoveries) /
	Avg. Total Loans (a)		0.13	%		0.09	%			-0.05	%
				%
		12/31'21YTD	12/31'20YTD	Change
	Average Total Loans	$1,195,135		$1,239,144		-3.6	%
	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			4,307		n/m
	Net ACLL Losses		(342	)		(1,954	)	-82.5	%
	End of Period ACLL	$23,514		$23,854		-1.4	%
	Gross ACLL Recoveries /
	Gross ACLL Losses		89	%		53	%
	Net ACLL Losses /
	Avg. Total Loans		0.03	%		0.16	%
		(dollars in thousands)
				%
		12/31/21	12/31/20	Change	9/30/21
	Allowance for Credit Losses on Loans	$23,514		$23,854		-1.4	%	$23,882
	Allowance for Credit Losses on
	HTM Securities (2)		7			9		-22.3	%		7
	Total Allowance for Credit Losses	$23,521		$23,863		-1.4	%	$23,889
	Allowance for Unfunded
	Credit Commitments	$201		$101		99.3	%	$101
9. Credit Quality.
		(dollars in thousands)
				%
		12/31/21	12/31/20	Change	9/30/21
	Nonperforming Loans:
	Nonperforming Nonaccrual	$265		$526		-49.6	%	$801
	Performing Nonaccrual		427			3,803		-88.8	%		436
	Total Nonaccrual Loans		692			4,329		-84.0	%		1,237
	90+ Days Past Due Accruing Loans		339			450		-24.7	%		537
	Total	$1,031		$4,779		-78.4	%	$1,774
	Total Loans Outstanding	$1,068,126		$1,256,243		-15.0	%	$1,132,472
	Total Assets		7,461,026			6,747,931		10.6	%		7,403,573
	Loans:
	Allowance for Credit Losses on Loans	$23,514		$23,854		-1.4	%	$23,882
	Allowance for Credit Losses on Loans /
	Loans		2.20	%		1.90	%			2.11	%
	Nonperforming Loans/Total Loans		0.10	%		0.38	%			0.16	%
10. Capital.
		(in thousands, except per-share amounts)
				%
		12/31/21	12/31/20	Change	9/30/21
	Shareholders' Equity	$827,102		$844,809		-2.1	%	$837,953
	Total Assets		7,461,026			6,747,931		10.6	%		7,403,573
	Shareholders' Equity/
	Total Assets		11.09	%		12.52	%			11.32	%
	Shareholders' Equity/
	Total Loans		77.43	%		67.25	%			73.99	%
	Tangible Common Equity Ratio		9.60	%		10.90	%			9.83	%
	Common Shares Outstanding		26,866			26,807		0.2	%		26,866
	Common Equity Per Share	$30.79		$31.51		-2.3	%	$31.19
	Market Value Per Common Share		57.73			55.29		4.4	%		56.26
		(shares in thousands)
				%
		Q4'2021	Q4'2020	Change	Q3'2021
	Share Repurchase Programs:
	Total Shares Repurchased		-			91		n/m		-
	Average Repurchase Price		$-		$52.22		n/m		$-
	Net Shares Repurchased (Issued)		-			91		n/m		(1	)
				%
		12/31'21YTD	12/31'20YTD	Change
	Total Shares Repurchased		4			319		n/m
	Average Repurchase Price	$61.09		$51.63		n/m
	Net Shares (Issued) Repurchased		(59	)		255		n/m
11. Period-End Balance Sheets.
		(unaudited, dollars in thousands)
				%
		12/31/21	12/31/20	Change	9/30/21
	Assets:
	Cash and Due from Banks	$1,132,085		$621,275		82.2	%	$1,011,048
	Debt Securities Available For Sale		4,638,855			4,063,185		14.2	%		4,602,706
	Debt Securities Held To Maturity (3)		306,396			515,589		-40.6	%		356,106
	Loans		1,068,126			1,256,243		-15.0	%		1,132,472
	Allowance For Credit Losses on Loans		(23,514	)		(23,854	)	-1.4	%		(23,882	)
	Total Loans, net		1,044,612			1,232,389		-15.2	%		1,108,590
	Premises and Equipment, net		31,155			32,813		-5.1	%		31,603
	Identifiable Intangibles, net		835			1,104		-24.3	%		900
	Goodwill		121,673			121,673		0.0	%		121,673
	Other Assets		185,415			159,903		16.0	%		170,947
	Total Assets	$7,461,026		$6,747,931		10.6	%	$7,403,573
	Liabilities and Shareholders' Equity:
	Deposits:
	Noninterest-Bearing	$3,069,080		$2,725,177		12.6	%	$2,988,329
	Interest-Bearing Transaction		1,260,869			1,102,601		14.4	%		1,257,460
	Savings		1,940,395			1,703,812		13.9	%		1,894,290
	Time		143,612			156,389		-8.2	%		148,882
	Total Deposits		6,413,956			5,687,979		12.8	%		6,288,961
	Short-Term Borrowed Funds		146,246			102,545		42.6	%		119,102
	Other Liabilities		73,722			112,598		-34.5	%		157,557
	Total Liabilities		6,633,924			5,903,122		12.4	%		6,565,620
	Shareholders' Equity:
	Common Equity:
	Paid-In Capital		471,043			466,041		1.1	%		470,711
	Accumulated Other
	Comprehensive Income		49,664			114,412		n/m		71,284
	Retained Earnings		306,395			264,356		15.9	%		295,958
	Total Shareholders' Equity		827,102			844,809		-2.1	%		837,953
	Total Liabilities and
	Shareholders' Equity	$7,461,026		$6,747,931		10.6	%	$7,403,573
12. Income Statements.
		(unaudited, in thousands except per-share amounts)
				%
		Q4'2021	Q4'2020	Change	Q3'2021
	Interest & Fee Income:
	Loans	$13,124		$14,999		-12.5	%	$14,789
	Equity Securities		129			110		17.3	%		109
	Debt Securities Available For Sale (4)		27,598			24,947		10.6	%		26,452
	Debt Securities Held To Maturity		1,824			2,793		-34.7	%		2,091
	Interest-Bearing Cash		366			112		226.8	%		369
	Total Interest & Fee Income		43,041			42,961		0.2	%		43,810
	Interest Expense:
	Transaction Deposits		95			90		5.6	%		101
	Savings Deposits		282			246		14.6	%		272
	Time Deposits		102			126		-19.0	%		100
	Short-Term Borrowed Funds		25			19		31.5	%		19
	Total Interest Expense		504			481		4.8	%		492
	Net Interest Income		42,537			42,480		0.1	%		43,318
	Provision for Credit Losses		-			-		n/m		-
	Noninterest Income:
	Service Charges		3,580			3,452		3.7	%		3,578
	Merchant Processing Services		3,000			2,713		10.6	%		3,159
	Debit Card Fees		1,727			1,643		5.1	%		1,740
	Trust Fees		844			765		10.3	%		839
	ATM Processing Fees		488			570		-14.4	%		573
	Other Service Fees		449			457		-1.8	%		475
	Financial Services Commissions		96			66		45.5	%		95
	Gains on Sales of Real Property		-			3,536		n/m		-
	Other Noninterest Income		658			757		-13.1	%		823
	Total Noninterest Income		10,842			13,959		-22.3	%		11,282
	Noninterest Expense:
	Salaries and Benefits		11,436			12,291		-7.0	%		11,813
	Occupancy and Equipment		4,692			4,900		-4.2	%		4,759
	Outsourced Data Processing		2,357			2,359		-0.1	%		2,429
	Professional Fees		757			722		4.8	%		724
	Courier Service		572			502		13.9	%		534
	Amortization of Identifiable Intangibles		65			69		-5.8	%		67
	Other Noninterest Expense		4,033			3,702		8.9	%		4,371
	Total Noninterest Expense		23,912			24,545		-2.6	%		24,697
	Income Before Income Taxes		29,467			31,894		-7.6	%		29,903
	Income Tax Provision		7,747			8,056		-3.8	%		7,840
	Net Income	$21,720		$23,838		-8.9	%	$22,063
	Average Common Shares Outstanding		26,866			26,838		0.1	%		26,866
	Diluted Common Shares Outstanding		26,875			26,849		0.1	%		26,875
	Per Common Share Data:
	Basic Earnings	$0.81		$0.89		-9.0	%	$0.82
	Diluted Earnings		0.81			0.89		-9.0	%		0.82
	Dividends Paid		0.42			0.41		2.4	%		0.41
				%
		12/31'21YTD	12/31'20YTD	Change
	Interest & Fee Income:
	Loans	$57,558		$59,377		-3.1	%
	Equity Securities		458			419		9.3	%
	Debt Securities Available For Sale (4)		105,420			91,343		15.4	%
	Debt Securities Held To Maturity		8,875			13,552		-34.5	%
	Interest-Bearing Cash		1,132			1,165		-2.8	%
	Total Interest & Fee Income		173,443			165,856		4.6	%
	Interest Expense:
	Transaction Deposits		378			333		13.5	%
	Savings Deposits		1,067			925		15.4	%
	Time Deposits		432			512		-15.6	%
	Short-Term Borrowed Funds		78			53		47.2	%
	Other Borrowed Funds		-			1		-100.0	%
	Total Interest Expense		1,955			1,824		7.2	%
	Net Interest Income		171,488			164,032		4.5	%
	Provision for Credit Losses		-			4,300		n/m
	Noninterest Income:
	Service Charges		13,697			14,149		-3.2	%
	Merchant Processing Services		11,998			10,208		17.5	%
	Debit Card Fees		6,859			6,181		11.0	%
	Trust Fees		3,311			3,012		9.9	%
	ATM Processing Fees		2,280			2,273		0.3	%
	Other Service Fees		1,884			1,837		2.6	%
	Financial Services Commissions		356			372		-4.3	%
	Gains on Sales of Real Property		-			3,536		n/m
	Securities Gains		34			71		n/m
	Other Operating		2,926			3,998		-26.8	%
	Total Noninterest Income		43,345			45,637		-5.0	%
	Noninterest Expense:
	Salaries and Benefits		48,011			50,749		-5.4	%
	Occupancy and Equipment		19,139			19,637		-2.5	%
	Outsourced Data Processing		9,601			9,426		1.9	%
	Professional Fees		3,253			2,423		34.3	%
	Courier Service		2,177			2,001		8.8	%
	Amortization of Identifiable Intangibles		269			287		-6.3	%
	Other Operating		15,356			14,043		9.3	%
	Total Noninterest Expense		97,806			98,566		-0.8	%
	Income Before Income Taxes		117,027			106,803		9.6	%
	Income Tax Provision		30,518			26,390		15.6	%
	Net Income	$86,509		$80,413		7.6	%
	Average Common Shares Outstanding		26,855			26,942		-0.3	%
	Diluted Common Shares Outstanding		26,870			26,960		-0.3	%
	Per Common Share Data:
	Basic Earnings	$3.22		$2.98		8.1	%
	Diluted Earnings		3.22			2.98		8.1	%
	Dividends Paid		1.65			1.64		0.6	%
	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 $306,396 thousand at December 31, 2021, $356,106 thousand at September 30, 2021 and $515,589 thousand at December 31, 2020 are net of related reserve for expected credit losses of $7 thousand, $7 thousand and $9 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