GlobeNewswire Inc | Jul 16, 2020 10:57AM EDT

July 16, 2020

SAN RAFAEL, Calif., July 16, 2020 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the second quarter 2020 of $19.6 million and diluted earnings per common share ("EPS") of $0.72. These results compare to net income of $17.0 million and EPS of $0.63 for the first quarter 2020 and net income of $19.6 million and EPS of $0.73 for the second quarter 2019.

"Westamericas primary objective during the Covid-19 pandemic is to support our customers. Westamerica remains open for business during regular business hours at all but one branch. Westamerica funded $249 million Paycheck Protection Program loans for our customers during the second quarter 2020. We are following all health orders affecting our business to keep our customers and employees safe. Westamericas net interest income on a fully-tax equivalent basis for the second quarter 2020 increased to $42.1 million from $40.5 million for the first quarter 2020. Operating expenses were $24.8 million for the second quarter 2020, representing only 48 percent of revenues on a fully-taxable equivalent basis. Credit quality remained stable with nonperforming assets of $4.6 million at June 30, 2020, said Chairman, President and CEO David Payne. Second quarter 2020 results generated an annualized 11.1 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 $42.1 million for the second quarter 2020, compared to $40.5 million for the first quarter 2020 and $40.3 million for the second quarter 2019. The annualized net interest margin (FTE) was 2.99 percent for the second quarter 2020, compared to 3.10 percent for the first quarter 2020 and 3.13 percent for the second quarter 2019. The decline in the margin during the second quarter 2020 is primarily due to higher average interest-bearing cash balances and lower cash yields. Total average deposits grew $371 million during the second quarter 2020. Checking and savings deposits represented ninety-seven percent of the Companys average deposit base during the second quarter 2020 maintaining a 0.03 percent annualized cost of funding interest-earning assets.

The Company has been actively working with consumer and commercial borrowers requesting deferral of loan payments. At June 30, 2020, automobile loans and other consumer loans granted loan deferrals totaled $29 million and $5 million, respectively, commercial real estate loans with deferred payments totaled $66 million, primarily for hospitality and retail properties, and commercial loans with deferred payments totaled $3 million. The commercial real estate loans with deferred payments are seasoned with low loan-to-value ratios.

Nonperforming assets were $4.6 million at June 30, 2020. The Companys allowance for credit losses was $25 million at June 30, 2020. The Company recognized no provision for credit losses in the second quarter 2020 compared to a Covid-19 related provision of $4.3 million for the first quarter 2020.

Noninterest income for the second quarter 2020 totaled $9.6 million, compared to $11.6 million for the first quarter 2020, and $12.3 million for the second quarter 2019. Beginning March 2020, activity-based fees related to deposit accounts and merchant processing fees have been lower due to reduced economic activity.

Noninterest expense for the second quarter 2020 was $24.8 million compared to $24.7 million for the first quarter 2020 and $25.6 million for the second quarter 2019.

Westamerica Bancorporations 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, 2019 filed on Form 10-K and quarterly report for the quarter ended March 31, 2020 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 BANCORPORATIONFINANCIAL HIGHLIGHTSJune 30, 2020

1. Net Income Summary.

(in thousands except per-share amounts) % Q2'2020 Q2'2019 Change Q1'2020 Net Interest and Fee Income (FTE) $ 42,063 $ 40,330 4.3 % $ 40,547 Provision for Credit Losses - - n/m 4,300 Noninterest Income 9,554 12,288 -22.2% 11,648 Noninterest Expense 24,754 25,561 -3.2% 24,664 Income Before Taxes (FTE) 26,863 27,057 -0.7% 23,231 Income Tax Provision (FTE) 7,301 7,432 -1.8% 6,269 Net Income $ 19,562 $ 19,625 -0.3% $ 16,962 Average Common Shares Outstanding 26,935 26,942 0.0 % 27,068 Diluted Average Common Shares 26,951 26,987 -0.1 % 27,139 Operating Ratios: Basic Earnings Per Common Share $ 0.72 $ 0.73 -1.9 % $ 0.63 Diluted Earnings Per Common Share $ 0.72 0.73 -1.9 % 0.63 Return On Assets (a) 1.30 % 1.42 % 1.21 %Return On Common Equity (a) 11.1 % 11.7 % 9.7 %Net Interest Margin (FTE) (a) 2.99 % 3.13 % 3.10 %Efficiency Ratio (FTE) 48.0 % 48.6 % 47.3 % Dividends Paid Per Common Share $ 0.41 $ 0.41 0.0 % $ 0.41 Common Dividend Payout Ratio 57 % 56 % 66 %

% 6/30'20YTD 6/30'19YTD Change Net Interest and Fee Income (FTE) $ 82,610 $ 80,577 2.5 %Provision for Credit Losses 4,300 - n/m Noninterest Income 21,202 23,867 -11.2 %Noninterest Expense 49,418 50,744 -2.6 %Income Before Taxes (FTE) 50,094 53,700 -6.7 %Income Tax Provision (FTE) 13,570 14,429 -6.0 %Net Income $ 36,524 $ 39,271 -7.0 % Average Common Shares Outstanding 27,001 26,892 0.4 %Diluted Average Common Shares 27,024 26,950 0.3 % Operating Ratios: Basic Earnings Per Common Share $ 1.35 $ 1.46 -7.5 %Diluted Earnings Per Common Share 1.35 1.46 -7.4 %Return On Assets (a) 1.25 % 1.42 % Return On Common Equity (a) 10.4 % 12.0 % Net Interest Margin (FTE) (a) 3.04 % 3.12 % Efficiency Ratio (FTE) 47.6 % 48.6 % Dividends Paid Per Common Share $ 0.82 $ 0.81 1.2 %Common Dividend Payout Ratio 61 % 55 %

2. Net Interest Income. (dollars in thousands) % Q2'2020 Q2'2019 Change Q1'2020 Interest and Fee Income $ 42,498 $ 40,817 4.1 % $ 40,989 (FTE)Interest Expense 435 487 -10.7 % 442 Net Interest and Fee $ 42,063 $ 40,330 4.3 % $ 40,547 Income (FTE) Average Earning Assets $ 5,635,014 $ 5,159,112 9.2 % $ 5,242,142 Average Interest- Bearing Liabilities 2,774,450 2,646,681 4.8 % 2,648,581 Yield on Earning Assets 3.02 % 3.17 % 3.13 %(FTE) (a)Cost of Funds (a) 0.03 % 0.04 % 0.03 %Net Interest Margin 2.99 % 3.13 % 3.10 %(FTE) (a)Interest Expense/ Interest-Bearing 0.06 % 0.08 % 0.07 %Liabilities (a)Net Interest Spread 2.96 % 3.09 % 3.06 %(FTE) (a)

% 6/30'20YTD 6/30'19YTD Change Interest and Fee Income (FTE) $ 83,487 $ 81,558 2.4 %Interest Expense 877 981 -10.6 %Net Interest and Fee Income (FTE) $ 82,610 $ 80,577 2.5 % Average Earning Assets $ 5,438,578 $ 5,171,973 5.2 %Average Interest- Bearing Liabilities 2,711,515 2,668,063 1.6 % Yield on Earning Assets (FTE) (a) 3.07 % 3.16 % Cost of Funds (a) 0.03 % 0.04 % Net Interest Margin (FTE) (a) 3.04 % 3.12 % Interest Expense/ Interest-Bearing Liabilities (a) 0.07 % 0.08 % Net Interest Spread (FTE) (a) 3.00 % 3.08 %

3. Loans & Other Earning Assets. (average volume, dollars in thousands) % Q2'2020 Q2'2019 Change Q1'2020 Total Assets $ 6,058,365 $ 5,560,740 8.9 % $ 5,655,460 Total Earning Assets 5,635,014 5,159,112 9.2 % 5,242,142 Total Loans 1,232,073 1,183,539 4.1 % 1,123,934 Total Commercial Loans 344,053 262,804 30.9 % 223,383 Paycheck Protection 132,500 - n/m - Program (PPP) LoansCommercial Loans 211,553 262,804 -19.5 % 223,383 Commercial RE Loans 578,572 582,126 -0.6 % 579,743 Consumer Loans 309,448 338,609 -8.6 % 320,808 Total Investment 3,957,851 3,648,436 8.5 % 3,845,885 SecuritiesEquity Securities - 1,772 n/m - Debt Securities 3,293,009 2,750,093 19.7 % 3,135,743 Available For SaleDebt Securities Held To 664,842 896,571 -25.8 % 710,142 MaturityTotal Interest-Bearing 445,090 327,137 36.1 % 272,323 Cash Loans/Deposits 23.7 % 24.9 % 23.3 %

% 6/30'20YTD 6/30'19YTD Change Total Assets $ 5,856,913 $ 5,586,110 4.8 %Total Earning Assets 5,438,578 5,171,973 5.2 %Total Loans 1,178,004 1,194,536 -1.4 %Total Commercial Loans 283,718 272,083 4.3 %PPP Loans 66,250 - n/m Commercial Loans 217,468 272,083 -20.1 %Commercial RE Loans 579,157 581,157 -0.3 %Consumer Loans 315,129 341,296 -7.7 %Total Investment Securities 3,901,868 3,669,029 6.3 %Equity Securities - 1,760 n/m Debt Securities Available For Sale 3,214,376 2,742,418 17.2 %Debt Securities Held To Maturity 687,492 924,851 -25.7 %Total Interest-Bearing Cash 358,706 308,408 16.3 % Loans/Deposits 23.5 % 24.9 %

4. Deposits, Other Interest-Bearing Liabilities & Equity. (average volume, dollars in thousands) % Q2'2020 Q2'2019 Change Q1'2020 Total Deposits $ 5,200,475 $ 4,762,286 9.2 % $ 4,828,988 Noninterest Demand 2,496,840 2,172,207 14.9 % 2,222,737 Interest-Bearing 980,872 945,128 3.8 % 941,720 TransactionSavings 1,558,201 1,459,287 6.8 % 1,496,362 Time greater than $100K 72,267 80,120 -9.8 % 73,849 Time less than $100K 92,295 105,544 -12.6 % 94,320 Total Short-Term 70,116 56,602 23.9 % 42,330 BorrowingsOther Borrowed Funds 699 - n/m - Shareholders' Equity 705,882 669,947 5.4 % 705,330 Demand Deposits/ Total Deposits 48.0 % 45.6 % 46.0 %Transaction & Savings Deposits / Total 96.8 % 96.1 % 96.5 %Deposits

% 6/30'20YTD 6/30'19YTD Change Total Deposits $ 5,014,731 $ 4,798,288 4.5 %Noninterest Demand 2,359,788 2,188,131 7.8 %Interest-Bearing Transaction 961,295 945,789 1.6 %Savings 1,527,282 1,475,603 3.5 %Time greater than $100K 73,058 81,451 -10.3 %Time less than $100K 93,308 107,314 -13.1 %Total Short-Term Borrowings 56,223 57,906 -2.9 %Other Borrowed Funds 349 - n/m Shareholders' Equity 705,606 662,704 6.5 % Demand Deposits/ Total Deposits 47.1 % 45.6 % Transaction & Savings Deposits / Total Deposits 96.7 % 96.1 %

5. Interest Yields Earned & Rates Paid. (dollars in thousands) Q2'2020 Average Income/ Yield (a) / Volume Expense Rate 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 %

Q2'2019 Average Income/ Yield (a) / Volume Expense Rate Interest & Fee Income Earned Total Earning Assets (FTE) $ 5,159,112 $ 40,817 3.17 %Total Loans (FTE) 1,183,539 14,929 5.06 %Commercial Loans (FTE) 262,804 3,561 5.43 %Commercial RE Loans 582,126 7,709 5.31 %Consumer Loans 338,609 3,659 4.33 %Total Investments (FTE) 3,648,436 23,930 2.62 %Total Interest-Bearing Cash 327,137 1,958 2.37 % Interest Expense Paid Total Earning Assets 5,159,112 487 0.04 %Total Interest-Bearing Liabilities 2,646,681 487 0.08 %Total Interest-Bearing Deposits 2,590,079 478 0.07 %Interest-Bearing Transaction 945,128 119 0.05 %Savings 1,459,287 212 0.06 %Time less than $100K 105,544 65 0.25 %Time greater than $100K 80,120 82 0.41 %Total Short-Term Borrowings 56,602 9 0.06 % Net Interest Income and Margin (FTE) $ 40,330 3.13 %

6. Noninterest Income. (dollars in thousands except per-share amounts) % Q2'2020 Q2'2019 Change Q1'2020 Service Charges on Deposits $ 3,151 $ 4,493 -29.9 % $ 4,248 Merchant Processing Services 2,277 2,657 -14.3 % 2,358 Debit Card Fees 1,459 1,641 -11.1 % 1,468 Trust Fees 714 749 -4.7 % 777 ATM Processing Fees 518 722 -28.3 % 579 Other Service Fees 420 585 -28.2 % 506 Financial Services Commissions 123 93 32.6 % 125 Life Insurance Gains - 433 n/m - Securities Gains 71 26 n/m - Other Income (4) 821 889 -7.6 % 1,587 Total Noninterest Income $ 9,554 $ 12,288 -22.2 % $ 11,648 Total Revenue (FTE) $ 51,617 $ 52,618 -1.9 % $ 52,195 Noninterest Income/Revenue (FTE) 18.5 % 23.4 % 22.3 %Service Charges/Avg. Deposits 0.24 % 0.38 % 0.35 %(a)Total Revenues (FTE) Per Avg. Common Share (a) $ 7.71 $ 7.83 -1.6 % $ 7.76

% 6/30'20YTD 6/30'19YTD Change Service Charges on Deposits $ 7,399 $ 8,997 -17.8 %Merchant Processing Services 4,635 5,215 -11.1 %Debit Card Fees 2,927 3,148 -7.0 %Trust Fees 1,491 1,466 1.7 %ATM Processing Fees 1,097 1,355 -19.0 %Other Service Fees 926 1,162 -20.3 %Financial Services Commissions 248 194 27.4 %Life Insurance Gains - 433 n/m Securities Gains 71 50 n/m Other Income (4) 2,408 1,847 30.4 %Total Noninterest Income $ 21,202 $ 23,867 -11.2 % Total Revenue (FTE) $ 103,812 $ 104,444 -0.6 %Noninterest Income/Revenue (FTE) 20.4 % 22.9 % Service Charges/Avg. Deposits (a) 0.30 % 0.38 % Total Revenues (FTE) Per Avg./ Common Share (a) $ 7.73 $ 7.83 -1.3 %



7. Noninterest Expense. (dollars in thousands) % Q2'2020 Q2'2019 Change Q1'2020 Salaries & Benefits $ 12,900 $ 13,090 -1.5 % $ 13,018 Occupancy and Equipment 4,791 4,916 -2.5 % 4,932 Outsourced Data Processing 2,324 2,367 -1.8 % 2,405 Professional Fees 643 481 33.7 % 389 Courier Service 508 451 12.6 % 491 Amortization of Identifiable Intangibles 73 79 -7.6 % 73 Loss Contingency (1) - 553 n/m - Other Operating 3,515 3,624 -3.0 % 3,356 Total Noninterest Expense $ 24,754 $ 25,561 -3.2 % $ 24,664 Noninterest Expense/ Avg. Earning Assets (a) 1.77 % 1.99 % 1.89 %Noninterest Expense/Revenues 48.0 % 48.6 % 47.3 %(FTE)

% 6/30'20YTD 6/30'19YTD Change Salaries & Benefits $ 25,918 $ 26,198 -1.1 %Occupancy and Equipment 9,723 9,964 -2.4 %Outsourced Data Processing 4,729 4,736 -0.1 %Professional Fees 1,032 1,146 -9.9 %Courier Service 999 893 11.9 %Amortization of Identifiable Intangibles 146 389 -62.5 %Loss Contingency (1) - 553 n/m Other Operating 6,871 6,865 0.1 %Total Noninterest Expense $ 49,418 $ 50,744 -2.6 % Noninterest Expense/ Avg. Earning Assets (a) 1.83 % 1.98 % Noninterest Expense/Revenues (FTE) 47.6 % 48.6 %

8. Allowance for Credit Losses. (dollars in thousands) % Q2'2020 Q2'2019 Change Q1'2020 Average Total Loans $ 1,232,073 $ 1,183,539 4.1 % $ 1,123,934 Prior Period Allowance for Credit Losses on Loans $ 24,804 $ 20,477 21.1 % $ 19,484 (ACLL)Adoption of ASU 2016-13(2) - - n/m 2,017 Beginning of Period ACLL 24,804 20,477 21.1 % 21,501 Provision for Credit - - n/m 4,300 LossesNet ACLL Losses (275 ) (360 ) -23.5 % (997 )End of Period ACLL $ 24,529 $ 20,117 21.9 % $ 24,804 Gross ACLL Recoveries / Gross ACLL Losses 66 % 63 % 37 %Net ACLL Losses / Avg. Total Loans (a) 0.09 % 0.12 % 0.36 %

% 6/30'20YTD 6/30'19YTD Change Average Total Loans $ 1,178,004 $ 1,194,536 -1.4 % Prior Period Allowance for Credit Losses on Loans (ACLL) $ 19,484 $ 21,351 n/m Adoption of ASU 2016-13(2) 2,017 - n/m Beginning of Period ACLL 21,501 21,351 0.7 %Provision for Credit Losses 4,300 - n/m Net ACLL Losses (1,272 ) (1,234 ) n/m End of Period ACLL $ 24,529 $ 20,117 21.9 %Gross ACLL Recoveries / Gross ACLL Losses 46 % 48 % Net ACLL Losses / Avg. Total Loans (a) 0.22 % 0.21 %

(dollars in thousands) % 6/30/20 6/30/19 Change 3/31/20Allowance for Credit Losses on Loans $ 24,529 $ 20,117 21.9 % $ 24,804Allowance for Credit Losses on HTM Securities 16 - n/m 16Total Allowance for Credit Losses $ 24,545 $ 20,117 22.0 % $ 24,820 Allowance for Unfunded Credit Commitments 53 2,308 -97.7 % 53

9. Credit Quality. (dollars in thousands) % 6/30/20 6/30/19 Change 3/31/20 Nonperforming Loans: Nonperforming Nonaccrual $ 590 $ 177 232.7 % $ 419 Performing Nonaccrual 3,643 3,670 -0.7 % 3,933 Total Nonaccrual Loans 4,233 3,847 10.0 % 4,352 90+ Days Past Due 290 249 16.5 % 178 Accruing LoansTotal 4,523 4,096 10.4 % 4,530 Repossessed Loan 43 43 -0.9 % 43 CollateralTotal Nonperforming $ 4,566 $ 4,139 10.3 % $ 4,573 Assets Total Loans $ 1,316,359 $ 1,161,712 13.3 % $ 1,121,243 Outstanding Total Assets $ 6,463,889 $ 5,523,448 17.0 % $ 5,628,126 Loans: Allowance for Credit $ 24,529 $ 20,117 21.9 % $ 24,804 Losses on LoansAllowance for Credit Losses on Loans /Loans 1.86 % 1.73 % 2.21 %Nonperforming Loans/ 0.34 % 0.35 % 0.40 %Total Loans

10. Capital. (in thousands, except per-share amounts) % 6/30/20 6/30/19 Change 3/31/20 Shareholders' Equity $ 808,076 $ 693,437 16.5 % $ 705,546 Total Assets 6,463,889 5,523,448 17.0 % 5,628,126 Shareholders' Equity/ Total Assets 12.50 % 12.55 % 12.54 %Shareholders' Equity/ Total Loans 61.39 % 59.69 % 62.93 %Tangible Common Equity Ratio 10.81 % 10.56 % 10.58 %Common Shares Outstanding 26,933 26,962 -0.1 % 26,932 Common Equity Per Share $ 30.00 $ 25.72 16.7 % $ 26.20 Market Value Per Common Share $ 57.42 $ 61.61 -6.8 % $ 58.78 Share Repurchase Programs (shares in thousands) % Q2'2020 Q2'2019 Change Q1'2020 Total Shares Repurchased 13 8 n/m 180 Average Repurchase Price $ 52.27 $ 61.98 n/m $ 51.52 Net Shares (Issued) (1 ) (61 ) n/m 130 Repurchased % 6/ 6/ Change 30'20YTD 30'19YTD Total Shares Repurchased 193 8 n/m Average Repurchase Price $ 51.50 $ 61.98 n/m Net Shares Repurchased 129 (232 ) n/m (Issued)



11. Period-End Balance Sheets. (unaudited, dollars in thousands) % 6/30/20 6/30/19 Change 3/31/20 Assets: Cash and Due from Banks $ 500,820 $ 418,586 19.6 % $ 304,628 Investment Securities: Equity Securities - 1,797 n/m - Debt Securities 3,708,370 2,775,899 33.6 % 3,210,689 Available For SaleDebt Securities Held To 638,281 867,989 -26.5 % 681,821 Maturity (3) Loans 1,316,359 1,161,712 13.3 % 1,121,243 Allowance For Credit (24,529 ) (20,117 ) 21.9 % (24,804 )Losses on LoansTotal Loans, net 1,291,830 1,141,595 13.2 % 1,096,439 Other Real Estate Owned 43 43 0.0 % 43 Premises and Equipment, 34,061 34,014 0.1 % 35,403 netIdentifiable 1,245 1,540 -19.2 % 1,318 Intangibles, netGoodwill 121,673 121,673 0.0 % 121,673 Other Assets 167,566 160,312 4.5 % 176,112 Total Assets $ 6,463,889 $ 5,523,448 17.0 % $ 5,628,126 Liabilities and Shareholders' Equity:Deposits: Noninterest-Bearing $ 2,702,885 $ 2,163,841 24.9 % $ 2,183,283 Interest-Bearing 997,593 942,140 5.9 % 936,516 TransactionSavings 1,605,169 1,442,552 11.3 % 1,514,431 Time 162,765 181,729 -10.4 % 165,196 Total Deposits 5,468,412 4,730,262 15.6 % 4,799,426 Short-Term Borrowed 86,170 54,581 57.9 % 52,664 FundsOther Liabilities 101,231 45,168 124.1 % 70,490 Total Liabilities 5,655,813 4,830,011 17.1 % 4,922,580 Shareholders' Equity: Common Equity: Paid-In Capital 467,386 460,140 1.6 % 466,472 Accumulated Other Comprehensive Income 93,732 13,124 n/m 171 Retained Earnings 246,958 220,173 12.2 % 238,903 Total Shareholders' 808,076 693,437 16.5 % 705,546 Equity Total Liabilities and Shareholders' Equity $ 6,463,889 $ 5,523,448 17.0 % $ 5,628,126

12. Income Statements. (unaudited, in thousands except per-share amounts) % Q2'2020 Q2'2019 Change Q1'2020Interest & Fee Income: Loans $ 15,278 $ 14,822 3.1 % $ 13,809Investment Securities: Equity Securities 103 99 4.0 % 103Debt Securities Available For Sale 22,429 17,823 25.8 % 21,315Debt Securities Held To Maturity 3,616 4,924 -26.6 % 3,908Interest-Bearing Cash 113 1,958 -94.3 % 856Total Interest & Fee Income 41,539 39,626 4.8 % 39,991 Interest Expense: Transaction Deposits 74 119 -37.8 % 84Savings Deposits 224 212 5.6 % 217Time Deposits 126 147 -14.3 % 133Short-Term Borrowed Funds 10 9 9.4 % 8Other Borrowed Funds 1 - n/m -Total Interest Expense 435 487 -10.8 % 442 Net Interest Income 41,104 39,139 5.0 % 39,549 Provision for Credit Losses - - n/m 4,300 Noninterest Income: Service Charges 3,151 4,493 -29.9 % 4,248Merchant Processing Services 2,277 2,657 -14.3 % 2,358Debit Card Fees 1,459 1,641 -11.1 % 1,468Trust Fees 714 749 -4.7 % 777ATM Processing Fees 518 722 -28.3 % 579Other Service Fees 420 585 -28.2 % 506Financial Services Commissions 123 93 32.6 % 125Life Insurance Gains - 433 n/m -Securities Gains 71 26 n/m -Other Income (4) 821 889 -7.6 % 1,587Total Noninterest Income 9,554 12,288 -22.2 % 11,648 Noninterest Expense: Salaries and Benefits 12,900 13,090 -1.5 % 13,018Occupancy and Equipment 4,791 4,916 -2.5 % 4,932Outsourced Data Processing 2,324 2,367 -1.8 % 2,405Professional Fees 643 481 33.7 % 389Courier Service 508 451 12.6 % 491Amortization of Identifiable 73 79 -7.6 % 73IntangiblesLoss Contingency (1) - 553 n/m -Other 3,515 3,624 -3.0 % 3,356Total Noninterest Expense 24,754 25,561 -3.2 % 24,664 Income Before Income Taxes 25,904 25,866 0.1 % 22,233Income Tax Provision 6,342 6,241 1.6 % 5,271Net Income $ 19,562 $ 19,625 -0.3 % $ 16,962 Average Common Shares Outstanding 26,935 26,942 0.0 % 27,068Diluted Common Shares Outstanding 26,951 26,987 -0.1 % 27,139 Per Common Share Data: Basic Earnings $ 0.72 $ 0.73 -1.9 $ 0.63Diluted Earnings 0.72 0.73 -1.9 0.63Dividends Paid 0.41 0.41 0.0 % 0.41

% 6/30'20YTD 6/30'19YTD Change Interest & Fee Income: Loans $ 29,087 $ 29,619 -1.8 %Investment Securities: Equity Securities 206 197 4.5 %Debt Securities Available For Sale 43,744 35,344 23.8 %Debt Securities Held To Maturity 7,524 10,253 -26.6 %Interest-Bearing Cash 969 3,696 -73.8 %Total Interest & Fee Income 81,530 79,109 3.1 % Interest Expense: Transaction Deposits 158 240 -34.4 %Savings Deposits 441 428 3.2 %Time Deposits 259 295 -12.2 %Short-Term Borrowed Funds 18 18 1.1 %Other Borrowed Funds 1 - n/m Total Interest Expense 877 981 -10.7 % Net Interest Income 80,653 78,128 3.2 % Provision for Credit Losses 4,300 - n/m Noninterest Income: Service Charges 7,399 8,997 -17.8 %Merchant Processing Services 4,635 5,215 -11.1 %Debit Card Fees 2,927 3,148 -7.0 %Trust Fees 1,491 1,466 1.7 %ATM Processing Fees 1,097 1,355 -19.0 %Other Service Fees 926 1,162 -20.3 %Financial Services Commissions 248 194 27.4 %Life Insurance Gains - 433 n/m Securities Gains 71 50 n/m Other Income (4) 2,408 1,847 30.4 %Total Noninterest Income 21,202 23,867 -11.2 % Noninterest Expense: Salaries and Benefits 25,918 26,198 -1.1 %Occupancy and Equipment 9,723 9,964 -2.4 %Outsourced Data Processing 4,729 4,736 -0.1 %Professional Fees 1,032 1,146 -9.9 %Courier Service 999 893 11.9 %Amortization of Identifiable Intangibles 146 389 -62.5 %Loss Contingency (1) - 553 n/m Other 6,871 6,865 0.1 %Total Noninterest Expense 49,418 50,744 -2.6 % Income Before Income Taxes 48,137 51,251 -6.1 %Income Tax Provision 11,613 11,980 -3.1 %Net Income $ 36,524 $ 39,271 -7.0 % Average Common Shares Outstanding 27,001 26,892 0.4 %Diluted Common Shares Outstanding 27,024 26,950 0.3 % Per Common Share Data: Basic Earnings $ 1.35 $ 1.46 -7.5 %Diluted Earnings 1.35 1.46 -7.4 %Dividends Paid 0.82 0.81 1.2 %

Footnotes and Abbreviations: (1) In the second quarter 2019, the Company recorded a $301 thousand increase in estimated customer refunds of revenue recognized prior to 2018 and a $252 thousand loss settlement to dismiss a lawsuit. (2) 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 loan losses, held-to-maturity debt securities, other liabilities, deferred tax assets, and shareholders' equity. (3) The Company adopted ASU 2016-13, effective January 1, 2020. Debt Securities Held To Maturity of $638,281 thousand at June 30, 2020 and $681,821 thousand at March 31, 2020 are net of related reserve for expected credit losses of $16 thousand. (4) The Company received $603 thousand in excess of amounts charged-off in prior periods on a purchased loan during the quarter ending March 31, 2020, representing the recovery of a purchased loan credit-risk discount. (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 Certain amounts in prior periods have been reclassified to conform to the current presentation.