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):
July 20, 2004
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) 863-6000
--------------
(Registrant's area code and telephone number)
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Item 7: Exhibits
----------------
99.1 Press release dated July 20, 2004
Item 12: Results of Operations and Financial Condition
-------------------------------------------------------
On July 20, 2004 Westamerica Bancorporation announced their quarterly
earnings for the second quarter of 2004. 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
July 22, 2004
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INDEX TO EXHIBITS
-----------------
Sequentially
Exhibit No. Description Number Page
----------- ------------------------- -------------
(99.1) Press release dated 5-14
July 20, 2004
Page 5
FOR IMMEDIATE RELEASE
July 20, 2004
WESTAMERICA BANCORPORTATION REPORTS RECORD $24.6 MILLION QUARTERLY EARNINGS
San Rafael, CA: Westamerica Bancorporation (NASDAQ: WABC), parent company of
Westamerica Bank, today reported record quarterly net income for the second
quarter of 2004 of $24.6 million, or $0.76 diluted earnings per share,
compared to net income of $24.3 million, or $0.74 diluted earnings per share,
for the prior quarter, and $23.7 million, or $0.71 diluted earnings per share
for the second quarter of 2003. Return on assets was 2.21 percent and return
on equity was 31.1 percent for the second quarter of 2004. For the first six
months of 2004, diluted earnings per share were $1.51 based on year-to-date
net income of $49.0 million, while diluted earnings per share for the first
six months of 2003 were $1.39 based on year-to-date net income of $46.7
million.
Page 6
"New deposit service offerings as well as rising mutual fund and annuity sales
have generated growing noninterest revenues. Second quarter 2004 noninterest
income has risen $795 thousand, or 7.3 percent, from the prior quarter.
Westamerica's low cost of funds at 0.44 percent and low efficiency ratio at
37.9 percent for the second quarter of 2004 remain hallmarks for the Company,"
said Chairman, President and CEO David Payne. "We are proud to be delivering
consistent growth in diluted earnings per share, and 31 percent return on
equity to our shareholders," Payne added.
Net interest income on a taxable equivalent basis was $54.3 million for the
second quarter of 2004, essentially unchanged from $54.3 million for the
second quarter of 2003. The second quarter 2004 net interest margin on a
taxable equivalent basis was 5.21 percent, compared with 5.43 percent for the
second quarter of 2003. The reduced net interest margin primarily resulted
from earning asset yields declining more than the cost of funds.
The provision for loan losses was $750 thousand for the second quarter of 2004
unchanged from the prior quarter and down from $900 thousand for the second
quarter of 2003. Net charge-offs for the second quarter of 2004 totaled $636
thousand, or 0.11 percent (annualized) of average loans compared to 0.15
percent (annualized) of average loans for the prior quarter and second quarter
of 2003.
Noninterest income for the second quarter of 2004 was $11.7 million, compared
to $10.9 million for the previous quarter and $11.0 million for the second
quarter of 2003. The increase over both the prior quarter and second quarter
of 2003 is attributable to increased service charges on deposit accounts,
financial services fees, and debit card fees offset in part by lower mortgage
banking income. Investment securities gains totaled $395 thousand, $1.8
million, and $277 thousand in the second quarter of 2004, first quarter of
2004, and second quarter of 2003, respectively. Losses on the extinguishment
of FHLB advances totaled $390 thousand, $1.8 million, and none in the second
quarter of 2004, first quarter of 2004, and second quarter of 2003,
respectively. Other noninterest income for the first quarter of 2004 included
gains on the sale of repossessed loan collateral totaling $223 thousand.
Noninterest expense for the second quarter of 2004 totaled $25.0 million,
essentially unchanged from $25.0 million for the prior quarter, and down 1.9
percent from $25.5 million for the second quarter of 2003. Comparing the
second quarter of 2004 to the prior quarter, lower personnel costs offset
increased equipment expense and professional fees. Comparing the second
quarter of 2004 to the second quarter of 2003, lower personnel, occupancy, and
equipment expenses offset increased telephone expenses. The second quarter
2004 efficiency ratio (expenses divided by revenues) was 37.9 percent,
compared to 38.2 percent for the prior quarter and 39.0 percent for the second
quarter of 2003.
Non-performing loans and repossessed loan collateral at June 30, 2004 totaled
$7.1 million, down from $7.5 million at March 31, 2004 and $9.1 million at
June 30, 2003.
Shareholders' equity at June 30, 2004 was $330 million, down from $339 million
at March 31, 2004. The decrease is primarily due to retained earnings, net of
dividends paid, of $16 million, reduced by depreciation in the available for
sale investment portfolio of $23 million, net of tax, and the net cost of
share repurchases, totaling $2 million. The Company's equity-to-asset ratio
was 7.2 percent at June 30, 2004.
Page 7
Westamerica Bancorporation, through its wholly owned subsidiary Westamerica
Bank, operates 87 branches throughout 22 Northern and Central California
counties. At June 30, 2004, the Company's total assets and total loans
outstanding were $4.6 billion and $2.3 billion, respectively.
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 March 31, 2004 and Form 10-K for the year ended December 31, 2003,
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 July 20, 2004
FINANCIAL HIGHLIGHTS
June 30, 2004
1. Net Income Summary.
(dollars in thousands except per-share data)
Q2'04 / Q2'04 / 6/30'04YTD/
Q2'04 Q2'03 Q2'03 Q1'04 Q1'04 6/30'04YTD 6/30'03YTD 6/30'03YTD
---------------------------------------------------------------------------------------
1. Net Interest Income (Fully $54,271 $54,324 -0.1% $54,605 -0.6% $108,877 $108,386 0.5%
Taxable Equivalent)
2. Loan Loss Provision 750 900 -16.7% 750 0.0% 1,500 1,800 -16.7%
3. Noninterest Income:
4. Investment Securities Gains 395 277 42.6% 1,788 n/m 2,183 293 n/m
5. Loss on Extinguishment (390) 0 n/m (1,814) n/m (2,204) 0 n/m
of Debt
6. Other 11,656 10,759 8.3% 10,892 7.0% 22,547 21,118 6.8%
----------------------- ------------ -----------------------
7. Total Noninterest Income 11,661 11,036 5.7% 10,866 7.3% 22,526 21,411 5.2%
----------------------- ------------ -----------------------
8. Noninterest Expense 24,990 25,476 -1.9% 24,992 -0.0% 49,982 51,011 -2.0%
9. Income Tax Provision (FTE) 15,548 15,313 1.5% 15,415 0.9% 30,963 30,303 2.2%
----------------------- ------------ -----------------------
10.Net Income $24,644 $23,671 4.1% $24,314 1.4% $48,958 $46,683 4.9%
======================= ============ =======================
11.Average Shares Outstanding 31,760 33,000 -3.8% 32,051 -0.9% 31,906 33,054 -3.5%
12.Diluted Average Shares 32,343 33,492 -3.4% 32,662 -1.0% 32,502 33,528 -3.1%
Outstanding
13.Operating Ratios:
14. Basic Earnings Per Share $0.78 $0.72 8.2% $0.76 2.3% $1.53 $1.41 8.6%
15. Diluted Earnings Per Share 0.76 0.71 7.8% 0.74 2.4% 1.51 1.39 8.2%
16. Return On Assets 2.21% 2.21% 2.20% 2.20% 2.21%
17. Return On Equity 31.1% 29.3% 30.5% 30.8% 29.4%
18. Net Interest Margin (FTE) 5.21% 5.43% 5.27% 5.24% 5.51%
19. Efficiency Ratio (FTE) 37.9% 39.0% 38.2% 38.0% 39.3%
20.Dividends Paid Per Share $0.28 $0.24 16.7% $0.26 7.7% $0.54 $0.48 12.5%
21.Dividend Payout Ratio 37% 34% 35% 36% 34%
2. Net Interest Income.
(dollars in thousands)
Q2'04 / Q2'04 / 6/30'04YTD/
Q2'04 Q2'03 Q2'03 Q1'04 Q1'04 6/30'04YTD 6/30'03YTD 6/30'03YTD
---------------------------------------------------------------------------------------
1. Interest and Fee Income (FTE) $58,868 $61,733 -4.6% $60,120 -2.1% $118,988 $123,532 -3.7%
2. Interest Expense 4,597 7,409 -38.0% 5,515 -16.6% 10,111 15,146 -33.2%
----------------------- ------------ -----------------------
3. Net Interest Income (FTE) $54,271 $54,324 -0.1% $54,605 -0.6% $108,877 $108,386 0.5%
======================= ============ =======================
4. Average Earning Assets $4,177,358 $4,007,049 4.3%$4,157,061 0.5%$4,167,210 $3,956,535 5.3%
5. Average Interest-Bearing 2,868,615 2,813,895 1.9% 2,880,558 -0.4% 2,874,585 2,772,083 3.7%
Liabilities
6. Yield on Earning Assets (FTE) 5.65% 6.17% 5.80% 5.73% 6.28%
7. Cost of Funds 0.44% 0.74% 0.53% 0.49% 0.77%
8. Net Interest Margin (FTE) 5.21% 5.43% 5.27% 5.24% 5.51%
9. Interest Expense/Interest- 0.64% 1.05% 0.77% 0.70% 1.10%
Bearing Liabilities
10.Net Interest Spread (FTE) 5.01% 5.12% 5.03% 5.03% 5.18%
Page 9
WESTAMERICA BANCORPORATION Public Information July 20, 2004
FINANCIAL HIGHLIGHTS
June 30, 2004
3. Loans & Other Earning Assets.
(average volume, dollars in thousands)
Q2'04 / Q2'04 / 6/30'04YTD/
Q2'04 Q2'03 Q2'03 Q1'04 Q1'04 6/30'04YTD 6/30'03YTD 6/30'03YTD
---------------------------------------------------------------------------------------
1. Total Assets $4,482,261 $4,304,387 4.1%$4,451,674 0.7%$4,466,967 $4,253,125 5.0%
2. Total Earning Assets 4,177,358 4,007,049 4.3% 4,157,061 0.5% 4,167,210 3,956,535 5.3%
3. Total Loans 2,268,989 2,375,491 -4.5% 2,281,900 -0.6% 2,275,444 2,399,754 -5.2%
4. Commercial Loans 623,688 613,062 1.7% 616,110 1.2% 619,899 617,095 0.5%
5. Commercial Real Estate Loans 779,408 915,817 -14.9% 805,420 -3.2% 792,414 931,047 -14.9%
6. Consumer Loans 865,893 846,612 2.3% 860,370 0.6% 863,131 851,612 1.4%
7. Total Investment Securities 1,908,369 1,631,558 17.0% 1,875,161 1.8% 1,891,766 1,556,781 21.5%
8. Available For Sale 1,092,295 1,100,239 -0.7% 1,357,097 -19.5% 1,227,373 1,050,908 16.8%
(Market Value)
9. Held To Maturity 816,074 531,319 53.6% 518,064 57.5% 664,393 505,873 31.3%
10. HTM Unrealized (Loss) (11,265) 11,253 n/m 9,008 n/m (11,265) 11,253 n/m
Gain at Period-End
11.Loans / Deposits 65.0% 70.5% 66.4% 65.7% 71.9%
4. Deposits & Other Interest-Bearing Liabilities.
(average volume, dollars in thousands)
Q2'04 / Q2'04 / 6/30'04YTD/
Q2'04 Q2'03 Q2'03 Q1'04 Q1'04 6/30'04YTD 6/30'03YTD 6/30'03YTD
---------------------------------------------------------------------------------------
1. Total Deposits $3,489,250 $3,370,433 3.5%$3,437,549 1.5%$3,463,399 $3,338,681 3.7%
2. Noninterest Demand 1,256,128 1,130,608 11.1% 1,209,299 3.9% 1,232,714 1,124,087 9.7%
3. Interest-Bearing Transaction 574,854 559,459 2.8% 564,703 1.8% 569,778 558,343 2.0%
4. Savings 1,044,943 977,704 6.9% 1,040,497 0.4% 1,042,720 971,509 7.3%
5. Other Time >$100K 339,773 390,730 -13.0% 340,403 -0.2% 340,088 369,755 -8.0%
6. Other Time < $100K 273,552 311,932 -12.3% 282,647 -3.2% 278,099 314,987 -11.7%
7. Total Short-Term Borrowings 614,065 382,677 60.5% 533,158 15.2% 573,612 365,578 56.9%
8. Fed Funds Purchased 323,953 228,499 41.8% 399,075 -18.8% 361,514 202,026 78.9%
9. Other Short-Term Funds 290,112 154,178 88.2% 134,083 116.4% 212,098 163,552 29.7%
10.FHLB Debt 0 170,000 n/m 96,613 n/m 48,306 170,000 -71.6%
11.Long-Term Debt 21,428 21,393 0.2% 22,537 -4.9% 21,982 21,911 0.3%
12.Shareholders' Equity 318,560 324,350 -1.8% 320,390 -0.6% 319,475 319,741 -0.1%
13.Demand Deposits/Total Deposits 36.0% 33.5% 35.2% 35.6% 33.7%
14.Transaction & Savings Deposits/ 82.4% 79.2% 81.9% 82.2% 79.5%
Total Deposits
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WESTAMERICA BANCORPORATION Public Information July 20, 2004
FINANCIAL HIGHLIGHTS
June 30, 2004
5. Interest Yields Earned & Rates Paid.
(dollars in thousands)
Q2'04 Q1'04 Q2'03 2003
---------------------------------- ----------------------------------
Average Income/ Yield/ Yield/ Average Income/ Yield/ Yield/
Volume Expense Rate Rate Volume Expense Rate Rate
---------------------------------------------------------------------------------------
1. Interest & Fee Income Earned to:
2. Total Earning Assets (FTE) $4,177,358 $58,868 5.65% 5.80%$4,007,049 $61,733 6.17% 6.06%
3. Total Loans (FTE) 2,268,989 34,771 6.16% 6.23% 2,375,491 40,665 6.86% 6.71%
4. Commercial Loans (FTE) 623,688 9,337 6.00% 6.17% 613,062 9,768 6.39% 6.73%
5. Commercial Real Estate 779,408 14,709 7.57% 7.40% 915,817 18,420 8.07% 7.94%
Loans
6. Consumer Loans 865,893 10,725 5.02% 5.21% 846,612 12,477 5.92% 5.77%
7. Total Investment 1,908,369 24,097 5.05% 5.28% 1,631,558 21,068 5.17% 5.16%
Securities (FTE)
8. Interest Expense Paid to:
9. Total Earning Assets 4,177,358 4,597 0.44% 0.53% 4,007,049 7,409 0.74% 0.67%
10. Total Interest-Bearing 2,868,615 4,597 0.64% 0.77% 2,813,895 7,409 1.05% 0.97%
Liabilities
11. Total Interest-Bearing 2,233,122 2,994 0.54% 0.57% 2,239,825 4,470 0.80% 0.75%
Deposits
12. Interest-Bearing 574,854 124 0.09% 0.08% 559,459 212 0.15% 0.13%
Transaction
13. Savings 1,044,943 992 0.38% 0.43% 977,704 1,561 0.64% 0.60%
14. Other Time < $100K 273,552 956 1.41% 1.43% 311,932 1,343 1.73% 1.68%
15. Other Time >$100K 339,773 922 1.08% 1.09% 390,730 1,354 1.38% 1.35%
16. Total Short-Term Borrowings 614,065 1,285 0.83% 0.84% 382,677 962 1.00% 0.90%
17. Fed Funds Purchased 323,953 828 1.01% 1.00% 228,499 716 1.24% 1.13%
18. Other Short-Term Funds 290,112 457 0.62% 0.38% 154,178 246 0.64% 0.58%
19. FHLB Debt 0 2 0.00% 3.75% 170,000 1,592 3.71% 3.74%
20. Long-Term Debt 21,428 316 5.90% 5.95% 21,393 385 7.19% 6.97%
21.Net Interest Income and Margin $54,271 5.21% 5.27% $54,324 5.43% 5.39%
(FTE)
6. Noninterest Income.
(dollars in thousands)
Q2'04 / Q2'04 / 6/30'04YTD/
Q2'04 Q2'03 Q2'03 Q1'04 Q1'04 6/30'04YTD 6/30'03YTD 6/30'03YTD
---------------------------------------------------------------------------------------
1. Service Charges on Deposit $7,360 $6,648 10.7% $6,868 7.2% $14,228 $13,073 8.8%
Accounts
2. Merchant Credit Card Income 909 900 1.0% 825 10.2% 1,735 1,762 -1.5%
3. ATM Fees & Interchange 643 601 7.0% 583 10.3% 1,226 1,161 5.6%
4. Debit Card Fees 638 563 13.3% 549 16.2% 1,187 1,057 12.3%
5. Financial Services Fees 360 210 71.4% 187 92.5% 547 418 30.9%
6. Mortgage Banking Income 131 301 -56.5% 133 -1.5% 263 527 -50.1%
7. Trust Fees 258 277 -6.9% 250 3.2% 508 516 -1.6%
8. Other Income 1,357 1,259 7.8% 1,497 -9.4% 2,853 2,604 9.6%
----------------------- ------------ -----------------------
9. Sub-total 11,656 10,759 8.3% 10,892 7.0% 22,547 21,118 6.8%
10.Investment Securities Gains 395 277 42.6% 1,788 n/m 2,183 293 n/m
11.Loss on Extinguishment of Debt (390) 0 (1,814) n/m (2,204) 0 n/m
----------------------- ------------ -----------------------
12.Total Noninterest Income $11,661 $11,036 5.7% $10,866 7.3% $22,526 $21,411 5.2%
======================= ============ =======================
13.Operating Ratios:
14. Total Revenue (FTE) $65,932 $65,360 0.9% $65,471 0.7% $131,403 $129,797 1.2%
15. Noninterest Income / 17.7% 16.9% 16.6% 17.1% 16.5%
Revenue (FTE)
16. Service Charges / Deposits 0.85% 0.79% 0.80% 0.83% 0.79%
(annualized)
17. Total Revenue Per Share $8.35 $7.94 5.1% $8.22 1.6% $8.28 $7.92 4.6%
(annualized)
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WESTAMERICA BANCORPORATION Public Information July 20, 2004
FINANCIAL HIGHLIGHTS
June 30, 2004
7. Noninterest Expense.
(dollars in thousands)
Q2'04 / Q2'04 / 6/30'04YTD/
Q2'04 Q2'03 Q2'03 Q1'04 Q1'04 6/30'04YTD 6/30'03YTD 6/30'03YTD
---------------------------------------------------------------------------------------
1. Salaries & Benefits $13,332 $13,598 -2.0% $13,526 -1.4% $26,858 $27,296 -1.6%
2. Occupancy 2,944 3,044 -3.3% 2,948 -0.1% 5,892 6,039 -2.4%
3. Equipment 1,273 1,381 -7.8% 1,162 9.6% 2,435 2,755 -11.6%
4. Data Processing 1,521 1,518 0.2% 1,517 0.3% 3,038 3,077 -1.3%
5. Courier 888 926 -4.1% 884 0.5% 1,772 1,855 -4.5%
6. Postage 364 401 -9.2% 395 -7.8% 758 821 -7.7%
7. Telephone 535 423 26.5% 572 -6.5% 1,107 848 30.5%
8. Professional Fees 511 457 11.8% 409 24.9% 921 870 5.9%
9. Stationery & Supplies 309 308 0.3% 288 7.3% 597 626 -4.6%
10.Loan Expense 295 380 -22.4% 255 15.7% 550 656 -16.2%
11.Merchant Card Expense 268 316 -15.2% 272 -1.5% 541 658 -17.8%
12.Operational Losses 238 228 4.4% 243 -2.1% 481 401 20.0%
13.Amortization of Core Deposit 136 165 -17.6% 136 0.0% 272 414 -34.3%
Intangibles
14.Other Operating 2,376 2,331 1.9% 2,385 -0.4% 4,760 4,695 1.4%
----------------------- ------------ -----------------------
15.Total Noninterest Expense $24,990 $25,476 -1.9% $24,992 -0.0% $49,982 $51,011 -2.0%
======================= ============ =======================
16.Full Time Equivalent Staff 995 1,033 -3.7% 1,001 -0.6% 998 1,040 -4.0%
17.Average Assets / Full Time $4,505 $4,167 8.1% $4,447 1.3% $4,476 $4,090 9.4%
Equivalent Staff
18.Operating Ratios:
19. FTE Revenue / Full Time $267 $254 5.0% $263 1.3% $265 $252 5.2%
Equivalent Staff (annualized)
20. Noninterest Expense / 2.41% 2.55% 2.42% 2.41% 2.60%
Earning Assets (annualized)
21. Noninterest Expense / 37.9% 39.0% 38.2% 38.0% 39.3%
Revenues
8. Loan Loss Provision.
(dollars in thousands)
Q2'04 / Q2'04 / 6/30'04YTD/
Q2'04 Q2'03 Q2'03 Q1'04 Q1'04 6/30'04YTD 6/30'03YTD 6/30'03YTD
---------------------------------------------------------------------------------------
1. Loan Loss Provision $750 $900 -16.7% $750 0.0% $1,500 $1,800 -16.7%
2. Gross Loan Losses 1,324 1,841 -28.1% 1,558 -15.0% 2,882 3,869 -25.5%
3. Net Loan Losses 636 895 -28.9% 826 -23.0% 1,461 1,868 -21.8%
4. Recoveries/Gross Losses 52% 51% 47% 49% 52%
5. Average Total Loans $2,268,989 $2,375,491 -4.5%$2,281,900 -0.6%$2,275,444 $2,399,754 -5.2%
6. Net Loan Losses / Loans 0.11% 0.15% 0.15% 0.13% 0.16%
(annualized)
7. Loan Loss Provision / Loans 0.13% 0.15% 0.13% 0.13% 0.15%
(annualized)
8. Loan Loss Provision / Net 117.9% 100.6% 90.8% 102.7% 96.4%
Loan Losses
Page 12
WESTAMERICA BANCORPORATION Public Information July 20, 2004
FINANCIAL HIGHLIGHTS
June 30, 2004
9. Credit Quality.
(dollars in thousands)
6/30/04 / 6/30/04 /
6/30/04 6/30/03 6/30/03 3/31/04 3/31/04 12/31/03 9/30/03 3/31/03
---------------------------------------------------------------------------------------
1. Nonperforming Nonaccrual Loans $4,695 $5,484 -14.4% $5,045 -6.9% $5,759 $5,484 $6,402
2. Performing Nonaccrual Loans 2,233 1,353 65.0% 2,212 0.9% 1,658 2,145 2,471
----------------------- ------------ ----------------------------------
3. Total Nonaccrual Loans 6,928 6,837 1.3% 7,257 -4.5% 7,417 7,629 8,873
4. Accruing Loans 90+ Days 202 386 -47.7% 190 6.3% 199 272 320
Past Due ----------------------- ------------ ----------------------------------
5. Total Nonperforming Loans 7,130 7,223 -1.3% 7,447 -4.3% 7,616 7,901 9,193
6. Repossessed Collateral 0 1,888 80 n 90 742 88
----------------------- ------------ ----------------------------------
7. Total Nonperforming Loans &
8. Repossessed Collateral $7,130 $9,111 -21.7% $7,527 -5.3% $7,706 $8,643 $9,281
======================= ============ ==================================
9. Classified Loans $21,495 $27,324 -21.3% $22,965 -6.4% $23,460 $23,479 $32,505
======================= ============ ==================================
10.Allowance for Loan Losses $53,949 $54,159 -0.4% $53,834 0.2% $53,910 $54,180 $54,154
11.Total Loans Outstanding 2,319,255 2,406,889 -3.6% 2,322,881 -0.2% 2,323,330 2,364,418 2,456,161
12.Total Assets 4,611,811 4,564,692 1.0% 4,424,816 4.2% 4,576,385 4,482,793 4,386,455
13.Allowance for Loan Losses / 2.33% 2.25% 2.32% 2.32% 2.29% 2.20%
Total Loans
14.Nonperforming Loans / 0.31% 0.30% 0.32% 0.33% 0.33% 0.37%
Total Loans
15.Nonperforming Loans & Repossessed
16. Assets / Total Assets 0.15% 0.20% 0.17% 0.17% 0.19% 0.21%
17.Allowance for Loan Losses / 757% 750% 723% 708% 686% 589%
Nonperforming Loans
18.Allowance for Loan Losses / 251% 198% 234% 230% 231% 167%
Classified Loans
19.Classified Loans /
20. (Equity + Allowance for 5.6% 6.6% 5.9% 6.0% 5.8% 8.3%
Loan Losses)
10.Capital.
(dollars in thousands, except per-share amounts)
6/30/04 / 6/30/04 /
6/30/04 6/30/03 6/30/03 3/31/04 3/31/04 12/31/03 9/30/03 3/31/03
---------------------------------------------------------------------------------------
1. Shareholders' Equity $329,795 $357,311 -7.7% $338,600 -2.6% $340,371 $350,922 $336,946
2. Tier I Regulatory Capital 309,037 308,534 0.2% 295,076 4.7% 304,734 312,308 294,297
3. Total Regulatory Capital 350,834 347,219 1.0% 335,535 4.6% 342,627 350,380 333,545
4. Total Assets 4,611,811 4,564,692 1.0% 4,424,816 4.2% 4,576,385 4,482,793 4,386,455
5. Risk-Adjusted Assets 2,979,145 3,067,975 -2.9% 2,983,467 -0.1% 3,007,545 3,018,061 3,114,609
6. Shareholders' Equity / 7.15% 7.83% 7.65% 7.44% 7.83% 7.68%
Total Assets
7. Shareholders' Equity / 14.22% 14.85% 14.58% 14.65% 14.84% 13.72%
Total Loans
8. Tier I Capital/Total Assets 6.70% 6.76% 6.67% 6.66% 6.97% 6.71%
9. Tier I Capital/Risk-Adjusted 10.37% 10.06% 9.89% 10.13% 10.35% 9.45%
Assets
10.Total Capital/Risk-Adjusted 11.78% 11.32% 11.25% 11.39% 11.61% 10.71%
Assets
11.Shares Outstanding 31,784 32,937 -3.5% 31,787 -0.0% 32,287 32,723 32,907
12.Book Value Per Share ($) $10.38 $10.85 -4.4% $10.65 -2.6% $10.54 $10.72 $10.24
13.Market Value Per Share ($) 52.45 43.08 21.8% 50.46 3.9% 49.78 44.48 39.49
14.Share Repurchase Programs
(shares in thousands)
Q2'04 / Q2'04 / 6/30'04YTD/
Q2'04 Q2'03 Q2'03 Q1'04 Q1'04 6/30'04YTD 6/30'03YTD 6/30'03YTD
---------------------------------------------------------------------------------------
15.Total Shares Repurchased / 154 118 30.5% 574 -73.2% 728 686 6.1%
Canceled
16. Average Repurchase Price $49.17 $43.35 13.4% $49.88 -1.4% $49.73 $41.85 18.8%
17.Net Shares Repurchased 3 (30) n/m 500 -99.5% 503 474 6.1%
(Issued)
Page 13
WESTAMERICA BANCORPORATION Public Information July 20, 2004
FINANCIAL HIGHLIGHTS
June 30, 2004
11.Period-End Balance Sheets.
(dollars in thousands)
6/30/04 / 6/30/04 /
6/30/04 6/30/03 6/30/03 3/31/04 3/31/04 12/31/03 9/30/03 3/31/03
---------------------------------------------------------------------------------------
1. Assets:
2. Cash and Money Market Assets $186,056 $202,193 -8.0% $167,183 11.3% $190,162 $189,902 $186,914
3. Investment Securities 1,024,798 1,251,341 -18.1% 1,219,364 -16.0% 1,413,911 1,245,311 1,048,386
Available For Sale
4. Investment Securities 960,522 588,231 63.3% 586,171 63.9% 535,377 569,996 520,896
Held to Maturity
5. Loans, gross 2,319,255 2,406,889 -3.6% 2,322,881 -0.2% 2,323,330 2,364,418 2,456,161
6. Allowance For Loan Losses (53,949) (54,159) -0.4% (53,834) 0.2% (53,910) (54,180) (54,154)
----------------------- ------------ ----------------------------------
7. Loans, net 2,265,306 2,352,730 -3.7% 2,269,047 -0.2% 2,269,420 2,310,238 2,402,007
----------------------- ------------ ----------------------------------
8.
9. Premises and Equipment 35,343 36,408 -2.9% 35,412 -0.2% 35,748 35,566 36,631
10. Core Deposit Intangible 3,166 3,800 -16.7% 3,302 -4.1% 3,438 3,602 3,931
Assets
11. Goodwill 18,996 18,996 0.0% 18,996 0.0% 18,996 18,996 18,996
12. Interest Receivable and 117,624 110,993 6.0% 125,341 -6.2% 109,333 109,182 168,694
Other Assets ----------------------- ------------ ----------------------------------
13.Total Assets $4,611,811 $4,564,692 1.0%$4,424,816 4.2%$4,576,385 $4,482,793 $4,386,455
======================= ============ ==================================
14.Liabilities and Shareholders' Equity:
15. Deposits:
16. Noninterest Bearing $1,272,278 $1,194,847 6.5%$1,210,829 5.1%$1,240,379 $1,213,577 $1,129,455
17. Interest-Bearing 569,575 554,568 2.7% 562,369 1.3% 561,696 559,031 553,105
Transaction
18. Savings 1,072,701 962,967 11.4% 1,049,435 2.2% 1,058,082 1,039,406 980,291
19. Time 590,875 741,249 -20.3% 624,543 -5.4% 603,834 724,115 667,237
----------------------- ------------ ----------------------------------
20. Total Deposits 3,505,429 3,453,631 1.5% 3,447,176 1.7% 3,463,991 3,536,129 3,330,088
----------------------- ------------ ----------------------------------
21. Short-Term Borrowed Funds 712,553 393,287 81.2% 491,704 44.9% 590,646 433,348 416,219
22. FHLB Debt 0 170,000 n/m 20,000 n/m 105,000 105,000 170,000
23.
24. Debt Financing and 21,429 21,393 0.2% 21,429 0.0% 24,643 9,643 21,393
Notes Payable
25. Liability For Interest, 42,605 169,070 -74.8% 105,907 -59.8% 51,734 47,751 111,809
Taxes and Other ----------------------- ------------ ----------------------------------
26.Total Liabilities 4,282,016 4,207,381 1.8% 4,086,216 4.8% 4,236,014 4,131,871 4,049,509
----------------------- ------------ ----------------------------------
27.Shareholders' Equity:
28. Paid-In Capital $224,042 $219,060 2.3% $219,301 2.2% $220,285 $220,527 $215,291
29. Unrealized (Loss) Gain on
Investment Securities
30. Available For Sale (1,416) 26,001 n/m 21,213 n/m 13,191 16,004 20,710
31. Retained Earnings 107,169 112,250 -4.5% 98,086 9.3% 106,895 114,391 100,945
----------------------- ------------ ----------------------------------
32.Total Shareholders' Equity 329,795 357,311 -7.7% 338,600 -2.6% 340,371 350,922 336,946
----------------------- ------------ ----------------------------------
33.Total Liabilities and $4,611,811 $4,564,692 1.0%$4,424,816 4.2%$4,576,385 $4,482,793 $4,386,455
Shareholders' Equity ======================= ============ ==================================
Page 14
WESTAMERICA BANCORPORATION Public Information July 20, 2004
FINANCIAL HIGHLIGHTS
June 30, 2004
12.Income Statements.
(dollars in thousands, except per-share amounts)
Q2'04 / Q2'04 / 6/30'04YTD/
Q2'04 Q2'03 Q2'03 Q1'04 Q1'04 6/30'04YTD 6/30'03YTD 6/30'03YTD
---------------------------------------------------------------------------------------
1. Interest and Fee Income:
2. Loans $33,403 $39,419 -15.3% $34,023 -1.8% $67,425 $79,833 -15.5%
3. Money Market Assets and 0 3 n/m 0 n/m 1 5 -80.0%
Funds Sold
4. Investment Securities 11,655 12,311 -5.3% 15,010 -22.4% 26,665 23,982 11.2%
Available For Sale
5. Investment Securities 8,213 4,866 68.8% 5,378 52.7% 13,591 9,904 37.2%
Held to Maturity ----------------------- ------------ -----------------------
6. Total Interest Income 53,271 56,599 -5.9% 54,411 -2.1% 107,682 113,724 -5.3%
----------------------- ------------ -----------------------
7. Interest Expense:
8. Transaction Deposits 124 212 -41.5% 112 10.7% 236 453 -47.9%
9. Savings Deposits 992 1,561 -36.5% 1,111 -10.7% 2,102 3,271 -35.7%
10. Time Deposits 1,878 2,697 -30.4% 1,930 -2.7% 3,808 5,654 -32.6%
11. Short-Term Borrowed Funds 1,285 962 33.6% 1,131 13.6% 2,416 1,812 33.3%
12. Federal Home Loan Bank 2 1,592 -99.9% 896 -99.8% 897 3,167 -71.7%
Advances
13. Debt Financing and 316 385 -17.9% 335 -5.7% 652 789 -17.4%
Notes Payable ----------------------- ------------ -----------------------
14.Total Interest Expense 4,597 7,409 -38.0% 5,515 -16.6% 10,111 15,146 -33.2%
----------------------- ------------ -----------------------
15.Net Interest Income 48,674 49,190 -1.0% 48,896 -0.5% 97,571 98,578 -1.0%
----------------------- ------------ -----------------------
16.Provision for Loan Losses 750 900 -16.7% 750 0.0% 1,500 1,800 -16.7%
----------------------- ------------ -----------------------
17.Noninterest Income:
18. Service Charges on 7,360 6,648 10.7% 6,868 7.2% 14,228 13,073 8.8%
Deposit Accounts
19. Merchant Credit Card 909 900 1.0% 825 10.2% 1,735 1,762 -1.5%
20. Financial Services 360 210 71.4% 187 92.5% 547 418 30.9%
Commissions
21. Mortgage Banking 131 301 -56.5% 133 -1.5% 263 527 -50.1%
22. Trust Fees 258 277 -6.9% 250 3.2% 508 516 -1.6%
23. Securities Gains 395 277 42.6% 1,788 n/m 2,183 293 n/m
24. Loss on Extinguishment (390) 0 n/m (1,814) n/m (2,204) 0 n/m
of Debt
25. Other 2,638 2,423 8.9% 2,629 0.3% 5,266 4,822 9.2%
----------------------- ------------ -----------------------
26.Total Noninterest Income 11,661 11,036 5.7% 10,866 7.3% 22,526 21,411 5.2%
----------------------- ------------ -----------------------
27.Noninterest Expense:
28. Salaries & Related Benefits 13,332 13,598 -2.0% 13,526 -1.4% 26,858 27,296 -1.6%
29. Occupancy 2,944 3,044 -3.3% 2,948 -0.1% 5,892 6,039 -2.4%
30. Equipment 1,273 1,381 -7.8% 1,162 9.6% 2,435 2,755 -11.6%
31. Data Processing 1,521 1,518 0.2% 1,517 0.3% 3,038 3,077 -1.3%
32. Professional Fees 511 457 11.8% 409 24.9% 921 870 5.9%
33. Other 5,409 5,478 -1.3% 5,430 -0.4% 10,838 10,974 -1.2%
----------------------- ------------ -----------------------
34.Total Noninterest Expense 24,990 25,476 -1.9% 24,992 -0.0% 49,982 51,011 -2.0%
----------------------- ------------ -----------------------
35.Income Before Income Taxes 34,595 33,850 2.2% 34,020 1.7% 68,615 67,178 2.1%
36.Provision for income taxes 9,951 10,179 -2.2% 9,706 2.5% 19,657 20,495 -4.1%
----------------------- ------------ -----------------------
37.Net Income $24,644 $23,671 4.1% $24,314 1.4% $48,958 $46,683 4.9%
======================= ============ =======================
38.Average Shares Outstanding 31,760 33,000 -3.8% 32,051 -0.9% 31,906 33,054 -3.5%
39.Diluted Average Shares 32,343 33,492 -3.4% 32,662 -1.0% 32,502 33,528 -3.1%
Outstanding
40.Per Share Data:
41. Basic Earnings $0.78 $0.72 8.2% $0.76 2.3% $1.53 $1.41 8.6%
42. Diluted Earnings 0.76 0.71 7.8% 0.74 2.4% 1.51 1.39 8.2%
43. Dividends Paid 0.28 0.24 16.7% 0.26 7.7% 0.54 0.48 12.5%