Page 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of the Report (Date of earliest event reported):
October 14, 2003
Commission File Number: 001-9383
WESTAMERICA BANCORPORATION
--------------------------
(Exact name of registrant as specified in its chapter)
CALIFORNIA
----------
(State of incorporation)
94-2156203
----------
(I.R.S. Employer Identification Number)
1108 Fifth Avenue, San Rafael, California 94901
-----------------------------------------------
(Address of principal executive offices and zip code)
(707) 863-8000
--------------
(Registrant's area code and telephone number)
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Item 7: Exhibits
----------------
99.1 Press release dated October 14, 2003
Item 12: Results of Operations and Financial Condition
-------------------------------------------------------
On October 14, 2003 Westamerica Bancorporation announced their quarterly
earnings for the third quarter of 2003. A copy of the press release is attached
as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference.
Page 3
Signatures
Pursuant to the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned hereunto duly
authorized.
Westamerica Bancorporation
/s/ DENNIS R. HANSEN
------------------------------------
Dennis R. Hansen, SVP and Controller
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INDEX TO EXHIBITS
-----------------
Sequentially
Exhibit No. Description Number Page
----------- ------------------------- -------------
(99.1) Press release dated 5-14
October 14, 2003
Page 5
FOR IMMEDIATE RELEASE
October 14, 2003
WESTAMERICA BANCORPORATION REPORTS RECORD QUARTERLY EARNINGS
FOR THIRD QUARTER 2003
San Rafael, CA: Westamerica Bancorporation (NASDAQ: WABC), parent company of
Westamerica Bank, today reported record net income of $24.1 million for the
third quarter of 2003, up from $22.9 million for the third quarter of 2002.
Third quarter 2003 diluted earnings per share increased eight percent to $0.72
from $0.67 for the third quarter of 2002. Return on average common equity (ROE)
for the third quarter of 2003 was 29.3 percent and return on assets (ROA) was
2.18 percent, compared to 29.6 percent and 2.20 percent, respectively, in the
third quarter of 2002.
"The third quarter of 2003 benefited from higher fee income, cost containment,
and continuous application of our conservative credit culture," said Chairman,
President and CEO David Payne. "Non-performing loans and repossessed loan
collateral declined five percent to $8.6 million from $9.1 million at June 30.
Annualized net charge-offs to average loans declined to 0.12 percent in the
third quarter of 2003, and now stand at 0.15 percent year-to-date at September
30, 2003," added Payne.
Net interest income on a fully taxable equivalent basis was $54.3 million in the
third quarter of 2003 compared to $54.3 million in the prior quarter and $54.9
million in the third quarter of 2002. The third quarter of 2003 net interest
margin was 5.31 percent, down from 5.43 percent in the prior quarter and 5.71
percent in the third quarter of 2002. Declining interest rates and reduced
commercial loan demand have resulted in an operating environment with declining
net interest margins.
Noninterest income in the third quarter of 2003 totaled $11.0 million, compared
to $11.0 million in the previous quarter and $10.5 million in the third quarter
of 2002. In comparison to both the prior quarter and third quarter of 2002, the
third quarter of 2003 benefited from higher service charges on deposit accounts
and merchant credit card income offset in part by lower mortgage banking fees.
Third quarter 2003 noninterest income includes securities gains of $2.2 million
reduced by FHLB advance prepayment fees of $2.2 million. FHLB advances totaling
$65 million were retired using the proceeds from sale of available for sale
securities. The rate paid on the retired FHLB advances approximated 3.9 percent,
while the yield on the securities sold also approximated 3.9 percent. Second
quarter 2003 noninterest income included $277 thousand of investment securities
gains.
Noninterest expense for the third quarter of 2003 was $25.5 million, an increase
of $58 thousand from the second quarter of 2003. The increase is due to higher
expenses for telephone, professional fees, and occupancy offset in part by lower
salaries and benefits, equipment costs, and loan expenses. Compared to the third
quarter of 2002, noninterest expense decreased $400 thousand in the third
quarter of 2003. The decrease is due to lower salaries and benefits, equipment
expense, and amortization of core deposit in tangibles offset in part by higher
telephone and loan expenses. The efficiency ratio for the third quarter of 2003
was 39.1 percent, compared to the prior quarter at 39.0 percent and the third
quarter of 2002 at 39.7 percent.
Page 6
The provision for loan losses was $750 thousand for the third quarter of 2003,
reduced from $900 thousand in both the previous quarter and third quarter of
2002. The reduced provision for loan losses reflects management's assessment of
credit risk for the loan portfolio. Net charge-offs totaled $729 thousand or
0.12 percent of average loans (annualized) in the third quarter of 2003,
compared to $895 thousand or 0.15 percent of average loans (annualized) in the
second quarter of 2003. At September 30, 2003, the allowance for loan losses was
$54.2 million, or 2.29 percent of total loans outstanding.
Shareholders equity was $351 million at September 30, 2003, or 7.8 percent of
total assets. Net repurchases of the Company's common stock in the third quarter
2003 totaled 214 thousand shares.
Westamerica Bancorporation, through its wholly owned subsidiary Westamerica
Bank, operates 88 branches throughout 22 Northern and Central California
counties. At September 30, 2003, the company had total assets outstanding of
$4.5 billion.
Westamerica Bancorporation Web Address: www.westamerica.com
For additional information contact:
Westamerica Bancorporation
Robert A. Thorson - SVP & Treasurer
707-863-6840
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 annual and quarterly reports filed with the Securities and
Exchange Commission, including the Company's Form 10-Q for the quarter ended
June 30, 2003 and Form 10-K for the year ended December 31, 2002, describe some
of these factors, including certain credit, market, operational, liquidity and
interest rate 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, legislation including the Sarbanes-Oxley Act of 2002 and the
Gramm-Leach-Bliley Act of 1999, the combination of the former Kerman State Bank
and other 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.
###
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WESTAMERICA BANCORPORATION Public Information October 14, 2003
FINANCIAL HIGHLIGHTS
September 30, 2003
1. Net Income Summary.
(dollars in thousands except per-share data)
Q3'03 / Q3'03 / 9/30'03YTD/
Q3'03 Q3'02 Q3'02 Q2'03 Q2'03 9/30'03YTD 9/30'02YTD 9/30'02YTD
---------------------------------------------------------------------------------------
1. Net Interest Income (FTE) $54,264 $54,914 -1.2% $54,324 -0.1% $162,650 $160,723 1.2%
2. Loan Loss Provision 750 900 -16.7% 900 -16.7% 2,550 2,700 -5.6%
3. Noninterest Income:
4. Investment Securities 2,150 0 n/m 277 n/m 2,443 (4,260) n/m
Gains (Impairment)
5. FHLB Advance Prepayment (2,166) 0 n/m 0 n/m (2,166) 0 n/m
Fees
6. Other 11,029 10,455 5.5% 10,759 2.5% 32,147 30,598 5.1%
----------------------- ------------ -----------------------
7. Total Noninterest Income 11,013 10,455 5.3% 11,036 -0.2% 32,424 26,338 23.1%
----------------------- ------------ -----------------------
8. Noninterest Expense 25,534 25,964 -1.7% 25,476 0.2% 76,546 77,567 -1.3%
9. Income Tax Provision (FTE) 14,920 15,628 -4.5% 15,313 -2.6% 45,223 42,911 5.4%
----------------------- ------------ -----------------------
10.Net Income $24,073 $22,877 5.2% $23,671 1.7% $70,755 $63,883 10.8%
======================= ============ =======================
11.Average Shares Outstanding 32,770 33,621 -2.5% 32,959 -0.6% 32,959 33,751 -2.3%
12.Diluted Average Shares 33,273 34,118 -2.5% 33,442 -0.5% 33,442 34,309 -2.5%
Outstanding
13.Operating Ratios:
14. Basic Earnings Per Share $0.73 $0.68 8.0% $0.72 2.3% $2.15 $1.89 13.4%
15. Diluted Earnings Per Share 0.72 0.67 7.9% 0.71 2.2% 2.12 1.86 13.6%
16. Return On Assets 2.18% 2.20% 2.21% 2.20% 2.14%
17. Return On Equity 29.3% 29.6% 29.3% 29.4% 28.5%
18. Net Interest Margin 5.31% 5.71% 5.43% 5.38% 5.79%
19. Efficiency Ratio 39.1% 39.7% 39.0% 39.2% 41.5%
20.Dividends Paid Per Share $0.26 $0.22 18.2% $0.24 8.3% $0.74 $0.66 12.1%
21.Dividend Payout Ratio 36% 33% 34% 35% 35%
2. Net Interest Income.
(dollars in thousands)
Q3'03 / Q3'03 / 9/30'03YTD/
Q3'03 Q3'02 Q3'02 Q2'03 Q2'03 9/30'03YTD 9/30'02YTD 9/30'02YTD
---------------------------------------------------------------------------------------
1. Interest and Fee Income (FTE) $60,552 $64,913 -6.7% $61,733 -1.9% $184,083 $191,371 -3.8%
2. Interest Expense 6,288 9,999 -37.1% 7,409 -15.1% 21,433 30,648 -30.1%
----------------------- ------------ -----------------------
3. Net Interest Income (FTE) $54,264 $54,914 -1.2% $54,324 -0.1% $162,650 $160,723 1.2%
======================= ============ =======================
4. Average Earning Assets $4,072,793 $3,828,919 6.4%$4,007,049 1.6%$3,995,287 $3,706,432 7.8%
5. Average Interest-Bearing 2,806,275 2,673,026 5.0% 2,813,895 -0.3% 2,783,480 2,597,304 7.2%
Liabilities
6. Yield on Earning Assets 5.92% 6.74% 6.17% 6.05% 6.89%
7. Cost of Funds 0.61% 1.03% 0.74% 0.67% 1.10%
8. Net Interest Margin 5.31% 5.71% 5.43% 5.38% 5.79%
9. Interest Expense/Interest- 0.89% 1.48% 1.05% 0.97% 1.58%
Bearing Liabilities
10.Net Interest Spread 5.03% 5.26% 5.12% 5.08% 5.31%
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WESTAMERICA BANCORPORATION Public Information October 14, 2003
FINANCIAL HIGHLIGHTS
September 30, 2003
3. Loans & Other Earning Assets.
(average volume, dollars in thousands)
Q3'03 / Q3'03 / 9/30'03YTD/
Q3'03 Q3'02 Q3'02 Q2'03 Q2'03 9/30'03YTD 9/30'02YTD 9/30'02YTD
---------------------------------------------------------------------------------------
1. Total Assets $4,373,156 $4,117,310 6.2%$4,304,387 1.6% 4,293,136 $3,987,215 7.7%
2. Total Earning Assets 4,072,793 3,828,919 6.4% 4,007,049 1.6% 3,995,287 3,706,432 7.8%
3. Total Loans 2,331,855 2,492,030 -6.4% 2,375,491 -1.8% 2,377,121 2,470,522 -3.8%
4. Commercial Loans 1,483,562 1,644,250 -9.8% 1,528,879 -3.0% 1,526,615 1,640,532 -6.9%
5. Consumer Loans 848,293 847,780 0.1% 846,612 0.2% 850,506 829,990 2.5%
6. Total Investment Securities 1,740,938 1,336,889 30.2% 1,631,558 6.7% 1,618,166 1,235,910 30.9%
7. Available For Sale 1,150,000 983,903 16.9% 1,084,918 6.0% 1,079,217 969,804 11.3%
(Market Value)
8. Held To Maturity 590,938 352,986 67.4% 546,640 8.1% 538,949 266,106 102.5%
9. HTM Unrealized Gain 5,866 15,243 -61.5% 11,253 -47.9% 5,866 15,243 -61.5%
(Loss) at Period-End
10.Loans/Deposits 66.6% 74.8% 70.5% 70.1% 75.9%
11.Loans/Earning Assets 57.3% 65.1% 59.3% 59.5% 66.7%
4. Deposits & Other Interest-Bearing Liabilities.
(average volume, dollars in thousands)
Q3'03 / Q3'03 / 9/30'03YTD/
Q3'03 Q3'02 Q3'02 Q2'03 Q2'03 9/30'03YTD 9/30'02YTD 9/30'02YTD
---------------------------------------------------------------------------------------
1. Total Deposits $3,500,911 $3,333,300 5.0%$3,370,433 3.9%$3,392,758 $3,255,656 4.2%
2. Noninterest Demand 1,203,378 1,103,431 9.1% 1,130,608 6.4% 1,150,518 1,056,367 8.9%
3. Interest-Bearing 531,174 532,909 -0.3% 559,459 -5.1% 524,309 529,046 -0.9%
Transaction
4. Savings 1,034,480 1,017,162 1.7% 977,704 5.8% 992,499 948,450 4.6%
5. Other Time >$100K 394,282 342,606 15.1% 390,730 0.9% 377,930 380,424 -0.7%
6. Other Time < $100K 337,597 337,192 0.1% 311,932 8.2% 347,502 341,369 1.8%
7. Total Short-Term Borrowings 363,394 252,045 44.2% 382,677 -5.0% 364,850 244,898 49.0%
8. Fed Funds Purchased 214,333 39,133 447.7% 228,499 -6.2% 206,128 58,558 252.0%
9. Other Short-Term Funds 149,061 212,912 -30.0% 154,178 -3.3% 158,722 186,340 -14.8%
10.FHLB Debt 124,086 166,505 -25.5% 170,000 -27.0% 154,695 128,153 20.7%
11.Long-Term Debt 21,262 24,607 -13.6% 21,393 -0.6% 21,695 24,964 -13.1%
12.Shareholders' Equity 326,529 306,685 6.5% 324,350 0.7% 322,003 299,553 7.5%
13.Demand Deposits/Total 34.4% 33.1% 33.5% 33.9% 32.4%
Deposits
14.Low-Cost Deposits/Total 79.1% 79.6% 79.2% 78.6% 77.8%
Deposits
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WESTAMERICA BANCORPORATION Public Information October 14, 2003
FINANCIAL HIGHLIGHTS
September 30, 2003
5. Interest Yields Earned & Rates Paid.
(dollars in thousands)
Q3'03 Q2'03 Q3'02 2002
---------------------------------- ---------------------------------------------
Average Income/ Yield/ Yield/ Average Income/ Yield/ Yield/
Volume Expense Rate Rate Volume Expense Rate Rate
---------------------------------------------------------------------------------------
1. Interest Income Earned to:
2. Total Earning Assets (FTE) $4,072,793 $60,552 5.92% 6.17%$3,828,919 $64,913 6.74% 6.80%
3. Total Loans (FTE) 2,331,855 38,813 6.61% 6.86% 2,492,030 45,411 7.24% 7.30%
4. Commercial Loans (FTE) 1,483,562 26,868 7.40% 7.65% 1,644,250 30,957 7.56% 7.62%
5. Consumer Loans 848,293 11,945 5.60% 5.92% 847,780 14,454 6.78% 6.88%
6. Total Investment Securities 1,740,938 21,739 5.00% 5.16% 1,336,889 19,502 5.81% 5.85%
(FTE)
7. Interest Expense Paid to:
8. Total Earning Assets 4,072,793 6,288 0.61% 0.74% 3,828,919 9,999 1.03% 1.04%
9. Total Interest-Bearing 2,806,275 6,288 0.89% 1.05% 2,673,026 9,999 1.48% 1.50%
Liabilities
10. Total Interest-Bearing 2,297,533 3,984 0.69% 0.80% 2,229,869 7,093 1.26% 1.30%
Deposits
11. Interest-Bearing 531,174 145 0.10% 0.15% 532,909 395 0.29% 0.29%
Transaction
12. Savings 1,034,480 1,439 0.55% 0.64% 1,017,162 2,761 1.08% 1.09%
13. Other Time < $100K 394,282 1,191 1.56% 1.73% 342,606 2,009 2.36% 2.46%
14. Other Time >$100K 337,597 1,209 1.21% 1.38% 337,192 1,928 2.23% 2.30%
15. Total Short-Term Borrowings 363,394 747 0.81% 1.00% 252,045 887 1.37% 1.41%
16. Fed Funds Purchased 214,333 554 1.01% 1.24% 39,133 172 1.75% 1.62%
17. Other Short-Term Funds 149,061 193 0.51% 0.64% 212,912 715 1.31% 1.33%
18. FHLB Debt 124,086 1,172 3.72% 3.72% 166,505 1,576 3.72% 3.72%
19. Long-Term Debt 21,262 385 7.24% 7.18% 24,607 443 7.18% 7.18%
20. Net Interest Incom and $54,264 5.31% 5.43% $54,914 5.71% 5.76%
Margin (FTE)
6. Noninterest Income.
(dollars in thousands)
Q3'03 / Q3'03 / 9/30'03YTD/
Q3'03 Q3'02 Q3'02 Q2'03 Q2'03 9/30'03YTD 9/30'02YTD 9/30'02YTD
---------------------------------------------------------------------------------------
1. Service Charges on Deposit $6,735 $6,294 7.0% $6,648 1.3% $19,809 $18,262 8.5%
Accounts
2. Merchant Credit Card Income 993 971 2.3% 900 10.3% 2,755 2,839 -3.0%
3. ATM Fees & Interchange 644 686 -6.1% 601 7.2% 1,805 1,820 -0.8%
4. Debit Card Fees 556 470 18.3% 563 -1.2% 1,613 1,337 20.6%
5. Financial Services Fees 249 284 -12.3% 210 18.6% 666 1,048 -36.5%
6. Mortgage Banking Income 185 303 -38.9% 301 -38.5% 712 707 0.7%
7. Trust Fees 245 220 11.4% 277 -11.6% 760 774 -1.8%
8. Other Income 1,422 1,227 15.9% 1,259 12.9% 4,027 3,811 5.7%
----------------------- ------------ -----------------------
9. Sub-total 11,029 10,455 5.5% 10,759 2.5% 32,147 30,598 5.1%
10.Investment Securities Gains 2,150 0 n/m 277 n/m 2,443 (4,260) n/m
(Impairment)
11.FHLB Advance Prepayment Fees (2,166) 0 n/m 0 n/m (2,166) 0 n/m
----------------------- ------------ -----------------------
12.Total Noninterest Income $11,013 $10,455 5.3% $11,036 -0.2% $32,424 $26,338 23.1%
======================= ============ =======================
13.Operating Ratios:
14. Total Revenue (FTE) $65,277 $65,369 -0.1% $65,360 -0.1% $195,074 $187,061 4.3%
15. Noninterest Income/ 16.9% 16.0% 16.9% 16.6% 14.1%
Revenue (FTE)
16. Service Charges/Deposits 0.76% 0.75% 0.79% 0.78% 0.75%
(annualized)
17. Total Revenue Per Share $7.90 $7.71 2.5% $7.95 -0.6% $7.91 $7.41 6.8%
(annualized)
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WESTAMERICA BANCORPORATION Public Information October 14, 2003
FINANCIAL HIGHLIGHTS
September 30, 2003
7. Noninterest Expense.
(dollars in thousands)
Q3'03 / Q3'03 / 9/30'03YTD/
Q3'03 Q3'02 Q3'02 Q2'03 Q2'03 9/30'03YTD 9/30'02YTD 9/30'02YTD
---------------------------------------------------------------------------------------
1. Salaries & Benefits $13,495 $13,844 -2.5% $13,598 -0.8% $40,792 $41,987 -2.8%
2. Occupancy 3,076 3,074 0.1% 3,044 1.1% 9,116 8,903 2.4%
3. Equipment 1,319 1,479 -10.8% 1,381 -4.5% 4,074 4,339 -6.1%
4. Data Processing 1,520 1,529 -0.6% 1,518 0.1% 4,597 4,543 1.2%
5. Courier 941 909 3.5% 926 1.6% 2,796 2,714 3.0%
6. Postage 381 397 -4.0% 401 -5.0% 1,202 1,199 0.3%
7. Telephone 519 428 21.3% 423 22.7% 1,368 1,258 8.7%
8. Professional Fees 529 501 5.6% 457 15.8% 1,400 1,316 6.4%
9. Stationery & Supplies 331 350 -5.4% 308 7.5% 957 1,069 -10.5%
10.Loan Expense 339 307 10.4% 380 -10.8% 995 1,000 -0.5%
11.Merchant Card Expense 317 373 -15.0% 316 0.3% 975 1,059 -7.9%
12.Operational Losses 237 210 12.9% 228 3.9% 638 632 0.9%
13.Amortization of Core Deposit 165 301 -45.2% 165 0.0% 578 702 -17.7%
Intangibles
14.Other Operating 2,365 2,262 4.6% 2,331 1.5% 7,058 6,846 3.1%
----------------------- ------------ -----------------------
15.Total Noninterest Expense $25,534 $25,964 -1.7% $25,476 0.2% $76,546 $77,567 -1.3%
======================= ============ =======================
16.FTE Staff 1,016 1,067 -4.8% 1,033 -1.6% 1,040 1,075 -3.3%
17.Average Assets per FTE Staff $4,304 $3,859 11.5% $4,167 3.3% $4,128 $3,709 11.3%
18.Operating Ratios:
19. Revenue per FTE Staff $255 $243 4.9% $254 0.4% $251 $233 7.8%
(annualized)
20. Noninterest Expense/Earning 2.49% 2.69% 2.55% 2.56% 2.80%
Assets (annualized)
21. Noninterest Expense/Revenues 39.1% 39.7% 39.0% 39.2% 41.5%
Page 11
WESTAMERICA BANCORPORATION Public Information October 14, 2003
FINANCIAL HIGHLIGHTS
September 30, 2003
8. Loan Loss Provision.
(dollars in thousands)
Q3'03 / Q3'03 / 9/30'03YTD/
Q3'03 Q3'02 Q3'02 Q2'03 Q2'03 9/30'03YTD 9/30'02YTD 9/30'02YTD
---------------------------------------------------------------------------------------
1. Loan Loss Provision $750 $900 -16.7% $900 -16.7% $2,550 $2,700 -5.6%
2. Gross Loan Losses 1,422 1,635 -13.0% 1,841 -22.8% 5,291 4,632 14.2%
3. Net Loan Losses 729 777 -6.2% 895 -18.5% 2,694 2,388 12.8%
4. Recoveries/Gross Losses 49% 52% 51% 49% 48%
5. Average Total Loans $2,331,855 $2,492,030 -6.4%$2,375,491 -1.8%$2,377,121 $2,470,522 -3.8%
6. Net Loan Losses/Loans 0.12% 0.12% 0.15% 0.15% 0.13%
(annualized)
7. Loan Loss Provision/Loans 0.13% 0.14% 0.15% 0.14% 0.15%
(annualized)
8. Loan Loss Provision/Net 102.9% 115.8% 100.6% 94.7% 113.1%
Loan Losses
9. Credit Quality.
(dollars in thousands)
9/30/03/ 9/30/03/
9/30/03 9/30/02 9/30/02 6/30/03 6/30/03 3/31/03 12/31/02 12/31/01
---------------------------------------------------------------------------------------
1. Nonperforming Nonaccrual $5,484 $5,827 -63.2% $5,484 -60.9% $6,402 $5,717 $5,058
Loans
2. Performing Nonaccrual Loans 2,145 3,845 42.6% 1,353 305.3% 2,471 3,464 3,055
----------------------- ------------ ----------------------------------
3. Total Nonaccrual Loans 7,629 9,672 -21.1% 6,837 11.6% 8,873 9,181 8,113
4. Accruing Loans 90+ Days 272 257 5.8% 386 -29.5% 320 738 550
Past Due ----------------------- ------------ ----------------------------------
5. Total Nonperforming Loans 7,901 9,929 -20.4% 7,223 9.4% 9,193 9,919 8,663
6. Repossessed Collateral 742 470 57.9% 1,888 n 88 381 523
7. Total Nonperforming Loans & ----------------------- ------------ ----------------------------------
8. Repossessed Collateral $8,643 $10,399 -16.9% $9,111 -5.1% $9,281 $10,300 $9,186
======================= ============ ==================================
9. Classified Loans $23,479 $33,743 -30.4% $27,324 -14.1% $32,505 $34,001 $22,284
======================= ============ ==================================
10.Allowance for Loan Losses $54,180 $54,447 -0.5% $54,159 0.0% $54,154 $54,227 $52,086
11.Total Loans Outstanding 2,364,418 2,508,272 -5.7% 2,406,889 -1.8% 2,456,161 2,494,638 2,484,457
12.Total Assets 4,482,793 4,210,564 6.5% 4,564,692 -1.8% 4,386,455 4,224,867 3,927,967
13.Allowance for Loan Losses/ 2.29% 2.17% 2.25% 2.20% 2.17% 2.10%
Total Loans
14.Nonperforming Loans/ 0.33% 0.40% 0.30% 0.37% 0.40% 0.35%
Total Loans
15.Nonperforming Loans & Repossessed
16. Assets/Total Assets 0.19% 0.25% 0.20% 0.21% 0.24% 0.23%
17.Allowance/Nonperforming Loans 686% 548% 750% 589% 547% 601%
18.Allowance for Loan Losses/ 231% 161% 198% 167% 159% 234%
Classified Loans
19.Classified Loans/(Equity +
20. Allowance for Loan Losses) 5.8% 8.7% 6.6% 8.3% 8.6% 6.1%
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WESTAMERICA BANCORPORATION Public Information October 14, 2003
FINANCIAL HIGHLIGHTS
September 30, 2003
10.Capital.
(dollars in thousands, except per-share amounts)
9/30/03/ 9/30/03/
9/30/03 9/30/02 9/30/02 6/30/03 6/30/03 3/31/03 12/31/02 12/31/01
---------------------------------------------------------------------------------------
1. Shareholders' Equity $350,922 $335,440 4.6% $357,311 -1.8% $336,946 $341,499 $314,359
2. Tier I Regulatory Capital 312,308 293,154 6.5% 308,534 1.2% 294,297 300,159 283,438
3. Total Regulatory Capital 350,380 332,176 5.5% 347,219 0.9% 333,545 339,115 324,230
4. Total Assets 4,482,793 4,210,564 6.5% 4,564,692 -1.8% 4,386,455 4,224,867 3,927,967
5. Risk-Adjusted Assets 3,018,061 3,094,892 -2.5% 3,067,976 -1.6% 3,114,609 3,091,081 3,050,788
6. Shareholders' Equity/ 7.83% 7.97% -1.7% 7.83% 0.0% 7.68% 8.08% 8.00%
Total Assets
7. Shareholders' Equity/ 14.84% 13.37% 11.0% 14.85% -0.0% 13.72% 13.69% 12.65%
Total Loans
8. Tier I Capital/Total Assets 6.97% 6.96% 0.1% 6.76% 3.1% 6.71% 7.10% 7.22%
9. Tier I Capital/Risk-Adjusted 10.35% 9.47% 9.2% 10.06% 2.9% 9.45% 9.71% 9.29%
Assets
10.Total Capital/Risk-Adjusted 11.61% 10.73% 8.2% 11.32% 2.6% 10.71% 10.97% 10.63%
Assets
11.Shares Outstanding 32,723 33,601 -2.6% 32,937 -0.7% 32,907 33,411 34,220
12.Book Value Per Share ($) $10.72 $9.98 7.4% $10.85 -1.1% $10.24 $10.22 $9.19
13.Market Value Per Share ($) 44.48 40.28 10.4% 43.08 3.2% 39.49 40.18 39.57
14.Share Repurchase Programs
(shares in thousands)
Q3'03 / Q3'03 / 9/30'03YTD/
Q3'03 Q3'02 Q3'02 Q2'03 Q2'03 9/30'03YTD 9/30'02YTD 9/30'02YTD
---------------------------------------------------------------------------------------
15.Total Shares Repurchased/ 354 194 82.5% 118 200.0% 1,040 1,299 -19.9%
Canceled
16. Average Repurchase Price $44.43 $37.04 20.0% $43.35 2.5% $42.07 $41.36 1.7%
17.Net Shares Repurchased/ 214 152 41.1% (30) -804.4% 688 619 11.1%
(Issued)
Page 13
WESTAMERICA BANCORPORATION Public Information October 14, 2003
FINANCIAL HIGHLIGHTS
September 30, 2003
11.Period-End Balance Sheets.
(dollars in thousands)
9/30/03/ 9/30/03/
9/30/03 9/30/02 9/30/02 6/30/03 6/30/03 3/31/03 12/31/02 12/31/01
---------------------------------------------------------------------------------------
1. Assets:
2. Cash and Money Market Assets $189,269 $175,666 7.7% $202,193 -6.4% $186,914 $223,210 $179,716
3. Investment Securities 1,245,944 1,003,833 24.1% 1,251,341 -0.4% 1,048,386 947,848 948,970
Available For Sale
4. Investment Securities 569,996 399,735 42.6% 588,231 -3.1% 520,896 438,985 209,169
Held to Maturity
5. Loans, gross 2,364,418 2,508,272 -5.7% 2,406,889 -1.8% 2,456,161 2,494,638 2,484,457
6. Allowance For Loan Losses (54,180) (54,447) -0.5% (54,159) 0.0% (54,154) (54,227) (52,086)
----------------------- ------------ ----------------------------------
7. Loans, net 2,310,238 2,453,825 -5.9% 2,352,730 -1.8% 2,402,007 2,440,411 2,432,371
----------------------- ------------ ----------------------------------
9. Premises and Equipment 35,566 38,054 -6.5% 36,408 -2.3% 36,631 37,777 39,821
10. Core Deposit Intangible 3,602 4,481 -19.6% 3,800 -5.2% 3,931 4,180 2,683
Assets
11. Goodwill 18,996 18,996 0.0% 18,996 0.0% 18,996 18,996 16,329
12. Interest Receivable and 109,182 115,974 -5.9% 110,993 -1.6% 168,694 113,460 98,908
Other Assets
----------------------- ------------ ----------------------------------
13.Total Assets $4,482,793 $4,210,564 6.5%$4,564,692 -1.8%$4,386,455 $4,224,867 $3,927,967
======================= ============ ==================================
14.Liabilities and Shareholders' Equity:
15. Deposits:
16. Noninterest Bearing $1,213,577 $1,105,313 9.8%$1,184,847 2.4%$1,129,455 $1,146,828 $1,048,458
17. Interest-Bearing 559,031 521,417 7.2% 554,568 0.8% 553,105 559,875 519,324
Transaction
18. Savings 1,039,406 1,008,847 3.0% 962,267 8.0% 980,291 952,319 863,523
19. Time 724,115 650,325 11.3% 751,949 -3.7% 667,237 635,043 803,330
----------------------- ------------ ----------------------------------
20. Total Deposits 3,536,129 3,285,902 7.6% 3,453,631 2.4% 3,330,088 3,294,065 3,234,635
----------------------- ------------ ----------------------------------
21. Short-Term Borrowed Funds 433,348 335,989 29.0% 393,287 10.2% 416,219 349,736 271,911
22. FHLB Debt 105,000 170,000 -38.2% 170,000 170,000 170,000 40,000
24. Debt Financing and Notes 9,643 24,607 -60.8% 21,393 -54.9% 21,393 24,607 27,821
Payable
25. Liability For Interest, 47,751 58,626 -18.5% 169,070 -71.8% 111,809 44,960 39,241
Taxes and Other ----------------------- ------------ ----------------------------------
26.Total Liabilities 4,131,871 3,875,124 6.6% 4,207,381 -1.8% 4,049,509 3,883,368 3,613,608
----------------------- ------------ ----------------------------------
27.Shareholders' Equity:
28. Paid-In Capital $220,527 $222,494 -0.9% $219,060 0.7% $215,291 $217,198 $209,074
29. Unrealized Gain on
Investment
30. Securities Available 16,004 19,798 -19.2% 26,001 -38.4% 20,710 19,152 11,900
For Sale
31. Retained Earnings 114,391 93,148 22.8% 112,250 1.9% 100,945 105,149 93,385
----------------------- ------------ ----------------------------------
32.Total Shareholders' Equity 350,922 335,440 4.6% 357,311 -1.8% 336,946 341,499 314,359
----------------------- ------------ ----------------------------------
33.Total Liabilities and $4,482,793 $4,210,564 6.5%$4,564,692 -1.8%$4,386,455 $4,224,867 $3,927,967
Shareholders' Equity ======================= ============ ==================================
Page 14
WESTAMERICA BANCORPORATION Public Information October 14, 2003
FINANCIAL HIGHLIGHTS
September 30, 2003
12.Income Statements.
(dollars in thousands, except per-share amounts)
Q3'03 / Q3'03 / 9/30'03YTD/
Q3'03 Q3'02 Q3'02 Q2'03 Q2'03 9/30'03YTD 9/30'02YTD 9/30'02YTD
---------------------------------------------------------------------------------------
1. Interest and Fee Income:
2. Loans $37,491 $44,145 -15.1% $39,419 -4.9% $117,324 $132,023 -11.1%
3. Money Market Assets and 2 6 -66.7% 2 0.0% 6 10 -40.0%
Funds Sold
4. Investment Securities 12,215 11,844 3.1% 12,108 0.9% 35,796 36,031 -0.7%
Available For Sale
5. Investment Securities 5,251 4,561 15.1% 5,070 3.6% 15,556 10,517 47.9%
Held to Maturity ----------------------- ------------ -----------------------
6. Total Interest Income 54,959 60,556 -9.2% 56,599 -2.9% 168,682 178,581 -5.5%
----------------------- ------------ -----------------------
7. Interest Expense:
8. Transaction Deposits 145 395 -63.3% 211 -31.3% 598 1,215 -50.8%
9. Savings Deposits 1,439 2,761 -47.9% 1,562 -7.9% 4,710 8,320 -43.4%
10. Time Deposits 2,400 3,937 -39.0% 2,697 -11.0% 8,054 13,345 -39.6%
11. Short-Term Borrowed Funds 747 887 -15.8% 962 -22.3% 2,559 2,808 -8.9%
12. Federal Home Loan Bank 1,172 1,576 -25.6% 1,592 -26.4% 4,339 3,615 20.0%
Advances
13. Debt Financing and Notes 385 443 -13.1% 385 0.0% 1,173 1,345 -12.8%
Payable
----------------------- ------------ -----------------------
14.Total Interest Expense 6,288 9,999 -37.1% 7,409 -15.1% 21,433 30,648 -30.1%
----------------------- ------------ -----------------------
15.Net Interest Income 48,671 50,557 -3.7% 49,190 -1.1% 147,249 147,933 -0.5%
----------------------- ------------ -----------------------
16.Provision for Loan Losses 750 900 -16.7% 900 -16.7% 2,550 2,700 -5.6%
----------------------- ------------ -----------------------
17.Noninterest Income:
18. Service Charges on Deposit 6,735 6,294 7.0% 6,648 1.3% 19,809 18,262 8.5%
Accounts
19. Merchant Credit Card 993 971 2.3% 900 10.3% 2,755 2,839 -3.0%
20. Financial Services 249 284 -12.3% 210 18.6% 666 1,048 -36.5%
Commissions
21. Mortgage Banking 185 303 -38.9% 301 -38.5% 712 707 0.7%
22. Trust Fees 245 220 11.4% 277 -11.6% 760 774 -1.8%
23. Securities Gains 2,150 0 277 n/m 2,443 (4,260) -157.3%
(Impairment)
24. FHLB Advance Prepayment (2,166) 0 0 n/m (2,166) 0 n/m
Fees
25. Other 2,622 2,383 10.0% 2,423 8.2% 7,445 6,968 6.8%
----------------------- ------------ -----------------------
26.Total Noninterest Income 11,013 10,455 5.3% 11,036 -0.2% 32,424 26,338 23.1%
----------------------- ------------ -----------------------
27.Noninterest Expense:
28. Salaries and Related 13,495 13,844 -2.5% 13,598 -0.8% 40,792 41,987 -2.8%
Benefits
29. Occupancy 3,076 3,074 0.1% 3,044 1.1% 9,116 8,903 2.4%
30. Equipment 1,319 1,479 -10.8% 1,381 -4.5% 4,074 4,339 -6.1%
31. Data Processing 1,520 1,529 -0.6% 1,518 0.1% 4,597 4,543 1.2%
32. Professional Fees 529 501 5.6% 457 15.8% 1,400 1,316 6.4%
33. Other 5,595 5,537 1.0% 5,478 2.1% 16,567 16,479 0.5%
----------------------- ------------ -----------------------
34.Total Noninterest Expense 25,534 25,964 -1.7% 25,476 0.2% 76,546 77,567 -1.3%
----------------------- ------------ -----------------------
35.Income Before Income Taxes 33,400 34,148 -2.2% 33,850 -1.3% 100,577 94,004 7.0%
36.Provision for income taxes 9,327 11,271 -17.2% 10,179 -8.4% 29,822 30,121 -1.0%
----------------------- ------------ -----------------------
37.Net Income $24,073 $22,877 5.2% $23,671 1.7% $70,755 $63,883 10.8%
======================= ============ =======================
$529 $501 5.6% $457 15.8% $1,400 $1,316 $0
38.Average Shares Outstanding 32,770 33,621 -2.5% 32,959 -0.6% 32,959 33,751 -2.3%
39.Diluted Average Shares 33,273 34,118 -2.5% 33,442 -0.5% 33,442 34,309 -2.5%
Outstanding
40.Per Share Data:
41. Basic Earnings $0.73 $0.68 8.0% $0.72 1.4% $2.15 $1.89 13.4%
42. Diluted Earnings 0.72 0.67 7.9% 0.71 1.4% 2.12 1.86 13.6%
43. Dividends Paid 0.26 0.22 18.2% 0.24 8.3% 0.74 0.66 12.1%