Page 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
October 19, 2004
------------------
WESTAMERICA BANCORPORATION
--------------------------
(Exact Name of Registrant as Specified in Its Charter)
CALIFORNIA
----------
(State or Other Jurisdiction of Incorporation)
001-9383 94-2156203
-------- ----------
(Commission File Number) (IRS Employer Identification No.)
1108 Fifth Avenue, San Rafael, California 94901
----------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
(707) 863-6000
--------------
(Registrant's Telephone Number, Including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions:
[] Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
[] Soliciting material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)
[] Pre-commencement communications pursuant to Rule 14d-2(b) under
the Exchange Act (17 CFR 240.14d-2(b))
[] Pre-commencement communications pursuant to Rule 13e-4(c) under
the Exchange Act (17 CFR 240.13e-4c))
Page 2
Exhibits
---------
99.1 Press release dated October 19, 2004
Item 2.02: Results of Operations and Financial Condition
----------------------------------------------------------
On October 19, 2004 Westamerica Bancorporation announced their
quarterly earnings for the third 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
October 20, 2004
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INDEX TO EXHIBITS
-----------------
Sequentially
Exhibit No. Description Number Page
----------- ------------------------- -------------
(99.1) Press release dated 5-16
October 19, 2004
Page 5
FOR IMMEDIATE RELEASE
October 19, 2004
WESTAMERICA BANCORPORATION REPORTS RECORD QUARTERLY EARNINGS
FOR THIRD QUARTER 2004
San Rafael, CA: Westamerica Bancorporation (NASDAQ: WABC), parent company of
Westamerica Bank, today reported record net income of $25.1 million for the
third quarter of 2004, up from $24.1 million for the third quarter of 2003.
Third quarter 2004 diluted earnings per share increased 7.2 percent to $0.78
from $0.72 for the third quarter of 2003. Return on average common equity (ROE)
for the third quarter of 2004 was 30.1 percent and return on assets (ROA) was
2.19 percent, compared to 29.2 percent and 2.18 percent, respectively, in the
third quarter of 2003.
For the first nine months of 2004, net income totaled $74.1 million, an increase
of $3.3 million compared to $70.8 million for the same period in 2003. Diluted
earnings per share were $2.28 for the first nine months of 2004, an increase of
7.9 percent compared to $2.12 for the same period in 2003. ROE and ROA were 30.6
percent and 2.20 percent, respectively, for the first nine months of 2004,
compared to 29.4 percent and 2.20 percent, respectively, for the same period in
2003.
"The third quarter of 2004 benefited from higher fee income, efficiency, and
improving credit quality," said Chairman, President and CEO David Payne. "New
deposit service products fueled a $775 thousand increase in fee income over the
third quarter of last year. This improvement in revenue, combined with our
efficient cost structure resulted in an efficiency ratio of 36.9 percent in the
third quarter of 2004. Our year-to-date annualized net charge-offs to average
loans declined to 0.10 percent through September 30, 2004 compared to 0.15
percent in 2003," added Payne.
Page 6
Net interest income on a fully taxable equivalent basis was $54.5 million in the
third quarter of 2004 compared to $54.3 million in the prior quarter and $54.3
million in the third quarter of 2003. The third quarter of 2004 net interest
margin was 5.11 percent, down from 5.21 percent in the prior quarter and 5.31
percent in the third quarter of 2003. A reduction in commercial real estate
loans combined with a sustained period of low interest rates have resulted in an
operating environment with declining net interest margins.
Noninterest income in the third quarter of 2004 totaled $11.8 million, compared
to $11.7 million in the prior quarter and $11.0 million in the third quarter of
2003. In comparison to both the prior quarter and third quarter of 2003, the
third quarter of 2004 benefited from higher service charges on deposit accounts
and financial services fees offset in part by lower merchant credit card income
and mortgage banking income.
Noninterest expense for the third quarter of 2004 was $24.5 million, a reduction
of $500 thousand from the prior quarter. The decrease is due to lower expenses
for personnel, equipment, professional fees, and postage offset in part by
higher occupancy costs. Compared to the third quarter of 2003, noninterest
expense decreased $1 million in the third quarter of 2004. The decrease is due
to lower expenses for personnel, equipment, and professional fees.
The efficiency ratio for the third quarter of 2004 was 36.9 percent, compared to
the prior quarter at 37.9 percent and the third quarter of 2003 at 39.1 percent.
The provision for loan losses was $600 thousand for the third quarter of 2004,
reduced from $750 thousand in both the previous quarter and third quarter of
2003. The reduced provision for loan losses reflects management's assessment of
credit risk for the loan portfolio.
Shareholders' equity was $352 million at September 30, 2004, which represents an
increase of $22 million from $330 at June 30, 2004. The increase is attributable
to retained earnings, net of shareholder dividends, of $16 million and other
comprehensive income of $10 million related to unrealized appreciation in
available for sale investment securities, reduced by purchase and retirement of
company common stock of $4 million, net of stock option proceeds. Net
repurchases of the Company's common stock in the third quarter 2004 totaled 68
thousand shares.
Page 7
As announced August 25, 2004, Westamerica signed a definitive agreement to
acquire Redwood Empire Bancorp, parent company of National Bank of the Redwoods.
The transaction is valued at approximately $148 million, of which, approximately
$57 million will be paid in cash and the remainder by issuance of Westamerica
common stock. Within this earlier announcement, Westamerica stated its intention
to reduce the allocation of its operating cash flow toward the repurchase and
retirement of its common stock in order to meet the approximate $57 million cash
payment for this transaction.
Westamerica Bancorporation, through its wholly owned subsidiary Westamerica
Bank, operates 87 branches throughout 22 Northern and Central California
counties. At September 30, 2004, the company had total assets outstanding of
$4.6 billion.
Westamerica Bancorporation Web Address: www.westamerica.com
For additional information contact:
Westamerica Bancorporation
Robert A. Thorson - SVP & Treasurer
707-863-6840
Page 8
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, 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, 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.
#####
Page 9
WESTAMERICA BANCORPORATION Public Information October 19, 2004
FINANCIAL HIGHLIGHTS
September 30, 2004
1. Net Income Summary.
(dollars in thousands except per-share data)
Q3'04 / Q3'04 / 9/30'04YTD/
Q3'04 Q3'03 Q3'03 Q2'04 Q2'04 9/30'04YTD 9/30'03YTD 9/30'03YTD
---------------------------------------------------------------------------------------
1. Net Interest Income $54,528 $54,264 0.5% $54,271 0.5% $163,405 $162,650 0.5%
(Fully Taxable Equivalent)
2. Loan Loss Provision 600 750 -20.0% 750 -20.0% 2,100 2,550 -17.6%
3. Noninterest Income:
4. Investment Securities Gains (14) 2,150 n/m 395 n/m 2,169 2,443 -11.2%
(Losses)
5. Loss on Extinguishment 0 (2,166) n/m (390) n/m (2,204) (2,166) 1.8%
of Debt
6. Other 11,802 11,029 7.0% 11,656 1.3% 34,349 32,147 6.8%
----------------------- ------------ -----------------------
7. Total Noninterest Income 11,788 11,013 7.0% 11,661 1.1% 34,314 32,424 5.8%
----------------------- ------------ -----------------------
8. Noninterest Expense 24,491 25,534 -4.1% 24,990 -2.0% 74,473 76,546 -2.7%
9. Income Tax Provision (FTE) 16,130 14,920 8.1% 15,548 3.7% 47,093 45,223 4.1%
----------------------- ------------ -----------------------
10.Net Income $25,095 $24,073 4.2% $24,644 1.8% $74,053 $70,755 4.7%
======================= ============ =======================
11.Average Shares Outstanding 31,713 32,770 -3.2% 31,760 -0.1% 31,841 32,959 -3.4%
12.Diluted Average Shares 32,352 33,273 -2.8% 32,343 0.0% 32,452 33,442 -3.0%
Outstanding
13.Operating Ratios:
14. Basic Earnings Per Share $0.79 $0.73 7.7% $0.78 2.0% $2.33 $2.15 8.3%
15. Diluted Earnings Per Share 0.78 0.72 7.2% 0.76 1.8% 2.28 2.12 7.9%
16. Return On Assets 2.19% 2.18% 2.21% 2.20% 2.20%
17. Return On Equity 30.1% 29.2% 31.1% 30.6% 29.4%
18. Net Interest Margin (FTE) 5.11% 5.31% 5.21% 5.20% 5.44%
19. Efficiency Ratio (FTE) 36.9% 39.1% 37.9% 37.7% 39.2%
20.Dividends Paid Per Share $0.28 $0.26 7.7% $0.28 0.0% $0.82 $0.74 10.8%
21.Dividend Payout Ratio 36% 36% 37% 36% 35%
2. Net Interest Income.
(dollars in thousands)
Q3'04 / Q3'04 / 9/30'04YTD /
Q3'04 Q3'03 Q3'03 Q2'04 Q2'04 9/30'04YTD 9/30'03YTD 9/30'03YTD
---------------------------------------------------------------------------------------
1. Interest and Fee Income (FTE) $59,570 $60,553 -1.6% $58,868 1.2% $178,559 $184,085 -3.0%
2. Interest Expense 5,042 6,289 -19.8% 4,597 9.7% 15,154 21,435 -29.3%
----------------------- ------------ -----------------------
3. Net Interest Income (FTE) $54,528 $54,264 0.5% $54,271 0.5% $163,405 $162,650 0.5%
======================= ============ =======================
4. Average Earning Assets $4,260,701 $4,072,793 4.6%$4,177,358 2.0%$4,198,373 $3,995,287 5.1%
5. Average Interest-Bearing 2,882,817 2,806,275 2.7% 2,868,615 0.5% 2,877,329 2,783,480 3.4%
Liabilities
6. Yield on Earning Assets (FTE) 5.58% 5.92% 5.65% 5.68% 6.15%
7. Cost of Funds 0.47% 0.61% 0.44% 0.48% 0.71%
8. Net Interest Margin (FTE) 5.11% 5.31% 5.21% 5.20% 5.44%
9. Interest Expense/Interest- 0.69% 0.89% 0.64% 0.70% 1.03%
Bearing Liabilities
10.Net Interest Spread (FTE) 4.89% 5.03% 5.01% 4.98% 5.12%
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WESTAMERICA BANCORPORATION Public Information October 19, 2004
3. Loans & Other Earning Assets.
(average volume, dollars in thousands)
Q3'04 / Q3'04 / 9/30'04YTD /
Q3'04 Q3'03 Q3'03 Q2'04 Q2'04 9/30'04YTD 9/30'03YTD 9/30'03YTD
---------------------------------------------------------------------------------------
1. Total Assets $4,557,925 $4,373,156 4.2%$4,482,261 1.7%$4,497,287 $4,293,136 4.8%
2. Total Earning Assets 4,260,701 4,072,793 4.6% 4,177,358 2.0% 4,198,373 3,995,287 5.1%
3. Total Loans 2,247,664 2,331,855 -3.6% 2,268,989 -0.9% 2,266,184 2,377,121 -4.7%
4. Commercial Loans 624,925 616,140 1.4% 623,688 0.2% 621,574 616,777 0.8%
5. Commercial Real Estate Loans 752,395 867,421 -13.3% 779,408 -3.5% 779,074 909,838 -14.4%
6. Consumer Loans 870,344 848,294 2.6% 865,893 0.5% 865,536 850,506 1.8%
7. Total Investment Securities 2,013,037 1,740,938 15.6% 1,908,369 5.5% 1,932,189 1,618,166 19.4%
8. Available For Sale 928,930 1,179,781 -21.3% 1,092,295 -15.0% 1,148,891 1,094,519 5.0%
(Market Value)
9. Held To Maturity 1,084,107 561,157 93.2% 816,074 32.8% 783,298 523,647 49.6%
10. HTM Unrealized (Loss) 9,176 5,866 n/m (11,265) n/m 9,176 5,866 56.4%
Gain at Period-End
11.Loans / Deposits 62.2% 66.6% 65.0% 64.5% 70.1%
4. Deposits & Other Interest-Bearing Liabilities.
(average volume, dollars in thousands)
Q3'04 / Q3'04 / 9/30'04YTD /
Q3'04 Q3'03 Q3'03 Q2'04 Q2'04 9/30'04YTD 9/30'03YTD 9/30'03YTD
---------------------------------------------------------------------------------------
1. Total Deposits $3,616,319 $3,500,911 3.3%$3,489,250 3.6%$3,514,372 $3,392,758 3.6%
2. Noninterest Demand 1,305,840 1,203,378 8.5% 1,256,128 4.0% 1,257,089 1,150,518 9.3%
3. Interest-Bearing Transaction 581,264 565,437 2.8% 574,854 1.1% 573,607 560,708 2.3%
4. Savings 1,115,052 1,034,480 7.8% 1,044,943 6.7% 1,066,831 992,549 7.5%
5. Other Time >$100K 347,579 394,282 -11.8% 339,773 2.3% 342,585 377,930 -9.4%
6. Other Time < $100K 266,584 303,334 -12.1% 273,552 -2.5% 274,260 311,053 -11.8%
7. Total Short-Term Borrowings 550,909 363,394 51.6% 614,065 -10.3% 566,044 364,850 55.1%
8. Fed Funds Purchased 350,071 214,333 63.3% 323,953 8.1% 357,700 206,128 73.5%
9. Other Short-Term Funds 200,838 149,061 34.7% 290,112 -30.8% 208,344 158,722 31.3%
10.FHLB Debt 0 124,086 n/m 0 n/m 32,204 154,695 -79.2%
11.Long-Term Debt 21,429 21,262 0.8% 21,428 0.0% 21,798 21,695 0.5%
12.Shareholders' Equity 332,219 326,529 1.7% 318,560 4.3% 323,723 322,003 0.5%
13.Demand Deposits/Total Deposits 36.1% 34.4% 36.0% 35.8% 33.9%
14.Transaction & Savings Deposits/ 83.0% 80.1% 82.4% 82.4% 79.7%
Total Deposits
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WESTAMERICA BANCORPORATION Public Information October 19, 2004
5. Interest Yields Earned & Rates Paid.
(dollars in thousands)
Q3'04 Q3'03
------------------------------- Q2'04 --------------------------------- 2003
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) $4,260,701 $59,570 5.58% 5.65%$4,072,793 $60,553 5.92% 6.06%
3. Total Loans (FTE) 2,247,664 34,302 6.07% 6.16% 2,331,855 38,813 6.60% 6.71%
4. Commercial Loans (FTE) 624,925 9,754 6.16% 5.99% 616,140 9,700 6.19% 6.73%
5. Commercial Real Estate 752,395 13,955 7.38% 7.59% 867,421 17,310 7.92% 7.94%
Loans
6. Consumer Loans 870,344 10,593 4.95% 5.04% 848,294 11,803 5.64% 5.77%
7. Total Investment 2,013,037 25,268 5.02% 5.05% 1,740,938 21,740 4.99% 5.16%
Securities (FTE)
8. Interest Expense Paid to:
9. Total Earning Assets 4,260,701 5,042 0.47% 0.44% 4,072,793 6,289 0.61% 0.67%
10. Total Interest-Bearing 2,882,817 5,042 0.69% 0.64% 2,806,275 6,289 0.89% 0.97%
Liabilities
11. Total Interest-Bearing 2,310,479 3,253 0.56% 0.54% 2,297,533 3,985 0.69% 0.75%
Deposits
12. Interest-Bearing 581,264 163 0.11% 0.09% 565,437 145 0.10% 0.13%
Transaction
13. Savings 1,115,052 955 0.34% 0.38% 1,034,480 1,440 0.55% 0.60%
14. Other Time < $100K 266,584 999 1.49% 1.41% 303,334 1,192 1.56% 1.68%
15. Other Time >$100K 347,579 1,136 1.30% 1.09% 394,282 1,208 1.22% 1.35%
16. Total Short-Term Borrowings 550,909 1,473 1.05% 0.83% 363,394 747 0.81% 0.90%
17. Fed Funds Purchased 350,071 1,282 1.43% 1.01% 214,333 554 1.01% 1.13%
18. Other Short-Term Funds 200,838 191 0.38% 0.63% 149,061 193 0.51% 0.58%
19. FHLB Debt 0 0 0.00% 0.00% 124,086 1,172 3.70% 3.74%
20. Long-Term Debt 21,429 316 5.90% 5.90% 21,262 385 7.24% 6.97%
21.Net Interest Income and $54,528 5.11% 5.21% $54,264 5.31% 5.39%
Margin (FTE)
6. Noninterest Income.
(dollars in thousands)
Q3'04 / Q3'04 / 9/30'04YTD /
Q3'04 Q3'03 Q3'03 Q2'04 Q2'04 9/30'04YTD 9/30'03YTD 9/30'03YTD
---------------------------------------------------------------------------------------
1. Service Charges on Deposit $7,465 $6,735 10.8% $7,360 1.4% $21,693 $19,809 9.5%
Accounts
2. Merchant Credit Card Income 899 993 -9.5% 909 -1.1% 2,633 2,755 -4.4%
3. ATM Fees & Interchange 664 644 3.1% 643 3.3% 1,889 1,805 4.7%
4. Debit Card Fees 654 556 17.6% 638 2.5% 1,841 1,613 14.1%
5. Financial Services Fees 409 249 64.3% 360 13.6% 956 666 43.5%
6. Mortgage Banking Income 41 185 -77.8% 131 -68.7% 304 712 -57.3%
7. Trust Fees 265 245 8.2% 258 2.7% 773 760 1.7%
8. Other Income 1,405 1,422 -1.2% 1,357 3.5% 4,260 4,027 5.8%
----------------------- ------------ -----------------------
9. Sub-total 11,802 11,029 7.0% 11,656 1.3% 34,349 32,147 6.8%
10.Investment Securities Gains (14) 2,150 n/m 395 n/m 2,169 2,443 -11.2%
(Losses)
11.Loss on Extinguishment of Debt 0 (2,166) n/m (390) n/m (2,204) (2,166) 1.8%
----------------------- ------------ -----------------------
12.Total Noninterest Income $11,788 $11,013 7.0% $11,661 1.1% $34,314 $32,424 5.8%
======================= ============ =======================
13.Operating Ratios:
14. Total Revenue (FTE) $66,316 $65,277 1.6% $65,932 0.6% $197,719 $195,074 1.4%
15. Noninterest Income / 17.8% 16.9% 17.7% 17.4% 16.6%
Revenue (FTE)
16. Service Charges / Deposits 0.82% 0.76% 0.85% 0.82% 0.78%
(annualized)
17. Total Revenue Per Share $8.32 $7.90 5.3% $8.35 -0.4% $8.29 $7.91 4.8%
(annualized)
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WESTAMERICA BANCORPORATION Public Information October 19, 2004
7. Noninterest Expense.
(dollars in thousands)
Q3'04 / Q3'04 / 9/30'04YTD /
Q3'04 Q3'03 Q3'03 Q2'04 Q2'04 9/30'04YTD 9/30'03YTD 9/30'03YTD
---------------------------------------------------------------------------------------
1. Salaries & Benefits $13,054 $13,495 -3.3% $13,332 -2.1% $39,912 $40,792 -2.2%
2. Occupancy 3,022 3,076 -1.8% 2,944 2.6% 8,913 9,116 -2.2%
3. Equipment 1,101 1,319 -16.5% 1,273 -13.5% 3,536 4,074 -13.2%
4. Data Processing 1,525 1,520 0.3% 1,521 0.3% 4,563 4,597 -0.7%
5. Courier 923 941 -1.9% 888 3.9% 2,695 2,796 -3.6%
6. Postage 288 381 -24.4% 364 -20.9% 1,046 1,202 -13.0%
7. Telephone 529 519 1.9% 535 -1.1% 1,636 1,368 19.6%
8. Professional Fees 411 529 -22.3% 511 -19.6% 1,332 1,400 -4.9%
9. Stationery & Supplies 333 331 0.6% 309 7.8% 930 957 -2.8%
10.Loan Expense 289 339 -14.7% 295 -2.0% 839 995 -15.7%
11.Merchant Card Expense 292 317 -7.9% 268 9.0% 833 975 -14.6%
12.Operational Losses 265 237 11.8% 238 11.3% 747 638 17.1%
13.Amortization of Core 136 165 -17.6% 136 0.0% 408 578 -29.4%
Deposit Intangibles
14.Other Operating 2,323 2,365 -1.8% 2,376 -2.2% 7,083 7,058 0.4%
----------------------- ------------ -----------------------
15.Total Noninterest Expense $24,491 $25,534 -4.1% $24,990 -2.0% $74,473 $76,546 -2.7%
======================= ============ =======================
16.Full Time Equivalent Staff 980 1,016 -3.5% 995 -1.5% 992 1,032 -3.9%
17.Average Assets / Full Time $4,651 $4,304 8.1% $4,505 3.2% $4,534 $4,160 9.0%
Equivalent Staff
18.Operating Ratios:
19. FTE Revenue / Full Time $269 $255 5.6% $267 1.0% $266 $253 5.3%
Equivalent Staff (annualized)
20. Noninterest Expense / 2.29% 2.49% 2.41% 2.37% 2.56%
Earning Assets (annualized)
21. Noninterest Expense / 36.9% 39.1% 37.9% 37.7% 39.2%
Revenues
Page 13
WESTAMERICA BANCORPORATION Public Information October 19, 2004
8. Loan Loss Provision.
(dollars in thousands)
Q3'04 / Q3'04 / 9/30'04YTD /
Q3'04 Q3'03 Q3'03 Q2'04 Q2'04 9/30'04YTD 9/30'03YTD 9/30'03YTD
---------------------------------------------------------------------------------------
1. Loan Loss Provision $600 $750 -20.0% $750 -20.0% $2,100 $2,550 -17.6%
2. Gross Loan Losses 1,115 1,422 -21.6% 1,324 -15.8% 3,997 5,291 -24.5%
3. Net Loan Losses 161 729 -77.9% 636 -74.7% 1,621 2,597 -37.6%
4. Recoveries/Gross Losses 86% 49% 52% 59% 51%
5. Average Total Loans $2,247,664 $2,331,855 -3.6%$2,268,989 -0.9%$2,266,184 $2,377,121 -4.7%
6. Net Loan Losses / Loans 0.03% 0.12% 0.11% 0.10% 0.15%
(annualized)
7. Loan Loss Provision / Loans 0.11% 0.13% 0.13% 0.12% 0.14%
(annualized)
8. Loan Loss Provision / 372.7% 102.9% 117.9% 129.5% 98.2%
Net Loan Losses
9. Credit Quality.
(dollars in thousands)
9/30/04 / 9/30/04 /
9/30/04 9/30/03 9/30/03 6/30/04 6/30/04 3/31/04 12/31/03 6/30/03
---------------------------------------------------------------------------------------
1. Nonperforming Nonaccrual Loans $3,996 $5,484 -27.1% $4,695 -14.9% $5,045 $5,759 $5,484
2. Performing Nonaccrual Loans 2,777 2,145 29.5% 2,233 24.4% 2,212 1,658 1,353
----------------------- ------------ ----------------------------------
3. Total Nonaccrual Loans 6,773 7,629 -11.2% 6,928 -2.2% 7,257 7,417 6,837
4. Accruing Loans 90+ Days 182 272 -33.1% 202 -9.9% 190 199 386
Days Past Due ----------------------- ------------ ----------------------------------
5. Total Nonperforming Loans 6,955 7,901 -12.0% 7,130 -2.5% 7,447 7,616 7,223
6. Repossessed Collateral 0 742 n/m 0 n/m 80 90 1,888
7. Total Nonperforming Loans & ----------------------- ------------ ----------------------------------
8. Repossessed Collateral $6,955 $8,643 -19.5% $7,130 -2.5% $7,527 $7,706 $9,111
======================= ============ ==================================
9. Classified Loans $20,868 $23,479 -11.1% $21,495 -2.9% $22,965 $23,460 $27,324
======================= ============ ==================================
10.Allowance for Loan Losses $54,388 $54,180 0.4% $53,949 0.8% $53,834 $53,910 $54,159
11.Total Loans Outstanding 2,301,991 2,364,418 -2.6% 2,319,255 -0.7% 2,322,881 2,323,330 2,406,889
12.Total Assets 4,636,071 4,482,793 3.4% 4,611,811 0.5% 4,424,816 4,576,385 4,564,692
13.Allowance for Loan Losses / 2.36% 2.29% 2.33% 2.32% 2.32% 2.25%
Total Loans
14.Nonperforming Loans / 0.30% 0.33% 0.31% 0.32% 0.33% 0.30%
Total Loans
15.Nonperforming Loans & Repossessed
16. Assets/Total Assets 0.15% 0.19% 0.15% 0.17% 0.17% 0.20%
17.Allowance/Nonperforming Loans 782% 686% 757% 723% 708% 750%
18.Allowance for Loan Losses / 261% 231% 251% 234% 230% 198%
Classified Loans
19.Classified Loans /
20. (Equity + Allowance for 5.1% 5.8% 5.6% 5.9% 6.0% 6.6%
Loan Losses)
Page 14
WESTAMERICA BANCORPORATION Public Information October 19, 2004
10.Capital.
(dollars in thousands, except per-share amounts)
9/30/04 / 9/30/04 /
9/30/04 9/30/03 9/30/03 6/30/04 6/30/04 3/31/04 12/31/03 6/30/03
---------------------------------------------------------------------------------------
1. Shareholders' Equity $351,924 $350,922 0.3% $329,795 6.7% $338,600 $340,371 $357,311
2. Tier I Regulatory Capital 321,700 312,308 3.0% 309,037 4.1% 295,076 304,734 308,534
3. Total Regulatory Capital 361,868 350,380 3.3% 350,834 3.1% 335,535 342,627 347,219
4. Total Assets 4,636,071 4,482,793 3.4% 4,611,811 0.5% 4,424,816 4,576,385 4,564,692
5. Risk-Adjusted Assets 2,964,945 3,018,061 -1.8% 2,979,145 -0.5% 2,983,467 3,007,545 3,067,975
6. Shareholders' Equity / 7.59% 7.83% 7.15% 7.65% 7.44% 7.83%
Total Assets
7. Shareholders' Equity / 15.29% 14.84% 14.22% 14.58% 14.65% 14.85%
Total Loans
8. Tier I Capital / Total Assets 6.94% 6.97% 6.70% 6.67% 6.66% 6.76%
9. Tier I Capital / 10.85% 10.35% 10.37% 9.89% 10.13% 10.06%
Risk-Adjusted Assets
10.Total Capital / 12.20% 11.61% 11.78% 11.25% 11.39% 11.32%
Risk-Adjusted Assets
11.Shares Outstanding 31,716 32,723 -3.1% 31,784 -0.2% 31,787 32,287 32,937
12.Book Value Per Share ($) $11.10 $10.72 3.5% $10.38 6.9% $10.65 $10.54 $10.85
13.Market Value Per Share ($) 54.89 44.48 23.4% 52.45 4.7% 50.46 49.78 43.08
14.Share Repurchase Programs
(shares in thousands)
Q3'04 / Q3'04 / 9/30'04YTD /
Q3'04 Q3'03 Q3'03 Q2'04 Q2'04 9/30'04YTD 9/30'03YTD 9/30'03YTD
---------------------------------------------------------------------------------------
15.Total Shares Repurchased / 92 354 -74.0% 154 -40.3% 821 1,040 -21.1%
Canceled
16. Average Repurchase Price $51.95 $44.43 16.9% $49.17 5.7% $49.97 $42.07 18.8%
17.Net Shares Repurchased 68 214 n/m 3 2567.7% 571 688 -17.0%
(Issued)
Page 15
WESTAMERICA BANCORPORATION Public Information October 19, 2004
11.Period-End Balance Sheets.
(dollars in thousands)
9/30/04 / 9/30/04 /
9/30/04 9/30/03 9/30/03 6/30/04 6/30/04 3/31/04 12/31/03 6/30/03
---------------------------------------------------------------------------------------
1. Assets:
2. Cash and Money Market Assets $165,811 $189,902 -12.7% $186,056 -10.9% $167,183 $190,162 $202,193
3. Investment Securities 967,266 1,245,311 -22.3% 1,024,798 -5.6% 1,219,364 1,413,911 1,251,341
Available For Sale
4. Investment Securities 1,080,392 569,996 89.5% 960,522 12.5% 586,171 535,377 588,231
Held to Maturity
5. Loans, gross 2,301,991 2,364,418 -2.6% 2,319,255 -0.7% 2,322,881 2,323,330 2,406,889
6. Allowance For Loan Losses (54,388) (54,180) 0.4% (53,949) 0.8% (53,834) (53,910) (54,159)
----------------------- ------------ ----------------------------------
7. Loans, net 2,247,603 2,310,238 -2.7% 2,265,306 -0.8% 2,269,047 2,269,420 2,352,730
----------------------- ------------ ----------------------------------
9. Premises and Equipment 35,267 35,566 -0.8% 35,343 -0.2% 35,412 35,748 36,408
10. Core Deposit Intangible 3,030 3,602 -15.9% 3,166 -4.3% 3,302 3,438 3,800
Assets
11. Goodwill 18,996 18,996 0.0% 18,996 0.0% 18,996 18,996 18,996
12. Interest Receivable and 117,706 109,182 7.8% 117,624 0.1% 125,341 109,333 110,993
Other Assets ----------------------- ------------ ----------------------------------
13.Total Assets $4,636,071 $4,482,793 3.4%$4,611,811 0.5%$4,424,816 $4,576,385 $4,564,692
======================= ============ ==================================
14.Liabilities and Shareholders' Equity:
15. Deposits:
16. Noninterest Bearing $1,323,446 $1,213,578 9.1%$1,272,278 4.0%$1,210,829 $1,240,379 $1,194,847
17. Interest-Bearing 561,206 559,031 0.4% 569,575 -1.5% 562,369 561,696 554,568
Transaction
18. Savings 1,119,356 1,075,625 4.1% 1,072,701 4.3% 1,049,435 1,058,082 962,967
19. Time 641,798 687,895 -6.7% 590,875 8.6% 624,543 603,834 741,249
----------------------- ------------ ----------------------------------
20. Total Deposits 3,645,806 3,536,129 3.1% 3,505,429 4.0% 3,447,176 3,463,991 3,453,631
----------------------- ------------ ----------------------------------
21. Short-Term Borrowed Funds 578,285 433,348 33.4% 712,553 -18.8% 491,704 590,646 393,287
22. FHLB Debt 0 105,000 n/m 0 n/m 20,000 105,000 170,000
23. Debt Financing and 21,429 9,643 122.2% 21,429 0.0% 21,429 24,643 21,393
24. Notes Payable
25. Liability For Interest, 38,627 47,751 -19.1% 42,605 -9.3% 105,907 51,734 169,070
Taxes and Other ----------------------- ------------ ----------------------------------
26.Total Liabilities 4,284,147 4,131,871 3.7% 4,282,016 0.0% 4,086,216 4,236,014 4,207,381
----------------------- ------------ ----------------------------------
27.Shareholders' Equity:
28. Paid-In Capital $224,489 $220,527 1.8% $224,042 0.2% $219,301 $220,285 $219,060
29. Unrealized (Loss) Gain on
Investment Securities
30. Available For Sale 8,185 16,004 n/m (1,416) n/m 21,213 13,191 26,001
31. Retained Earnings 119,250 114,391 4.2% 107,169 11.3% 98,086 106,895 112,250
----------------------- ------------ ----------------------------------
32.Total Shareholders' Equity 351,924 350,922 0.3% 329,795 6.7% 338,600 340,371 357,311
----------------------- ------------ ----------------------------------
33.Total Liabilities and $4,636,071 $4,482,793 3.4%$4,611,811 0.5%$4,424,816 $4,576,385 $4,564,692
Shareholders' Equity ======================= ============ ==================================
Page 16
WESTAMERICA BANCORPORATION Public Information October 19, 2004
12.Income Statements.
(dollars in thousands, except per-share amounts)
Q3'04 / Q3'04 / 9/30'04YTD /
Q3'04 Q3'03 Q3'03 Q2'04 Q2'04 9/30'04YTD 9/30'03YTD 9/30'03YTD
---------------------------------------------------------------------------------------
1. Interest and Fee Income:
2. Loans $32,911 $37,491 -12.2% $33,403 -1.5% $100,337 $117,324 -14.5%
3. Money Market Assets and 0 2 n/m 0 n/m 1 6 -83.3%
Funds Sold
4. Investment Securities 10,721 12,554 -14.6% 11,679 -8.2% 37,649 36,784 2.4%
Available For Sale
5. Investment Securities 10,272 4,913 109.1% 8,189 25.4% 23,600 14,570 62.0%
Held to Maturity ----------------------- ------------ ----------------------------------
6. Total Interest Income 53,904 54,960 -1.9% 53,271 1.2% 161,587 168,684 -4.2%
----------------------- ------------ ----------------------------------
7. Interest Expense:
8. Transaction Deposits 163 145 12.4% 124 31.5% 399 598 -33.3%
9. Savings Deposits 955 1,440 -33.7% 992 -3.7% 3,057 4,711 -35.1%
10. Time Deposits 2,135 2,400 -11.0% 1,878 13.7% 5,943 8,055 -26.2%
11. Short-Term Borrowed Funds 1,473 747 97.2% 1,285 14.6% 3,890 2,559 52.0%
12. Federal Home Loan Bank 0 1,172 n/m 2 n/m 897 4,339 -79.3%
Advances
13. Debt Financing and 316 385 -17.9% 316 0.0% 968 1,173 -17.5%
Notes Payable ----------------------- ------------ ----------------------------------
14.Total Interest Expense 5,042 6,289 -19.8% 4,597 9.7% 15,154 21,435 -29.3%
----------------------- ------------ ----------------------------------
15.Net Interest Income 48,862 48,671 0.4% 48,674 0.4% 146,433 147,249 -0.6%
----------------------- ------------ ----------------------------------
16.Provision for Loan Losses 600 750 -20.0% 750 -20.0% 2,100 2,550 -17.6%
----------------------- ------------ ----------------------------------
17.Noninterest Income:
18. Service Charges on 7,465 6,735 10.8% 7,360 1.4% 21,693 19,809 9.5%
Deposit Accounts
19. Merchant Credit Card 899 993 -9.5% 909 -1.1% 2,633 2,755 -4.4%
20. Financial Services 409 249 64.3% 360 13.6% 956 666 43.5%
Commissions
21. Mortgage Banking 41 185 -77.8% 131 -68.7% 304 712 -57.3%
22. Trust Fees 265 245 8.2% 258 2.7% 773 760 1.7%
23. Securities Gains (Losses) (14) 2,150 n/m 395 n/m 2,169 2,443 -11.2%
24. Loss on Extinguishment 0 (2,166) n/m (390) n/m (2,204) (2,166) 1.8%
of Debt
25. Other 2,723 2,622 3.9% 2,638 3.2% 7,990 7,445 7.3%
----------------------- ------------ ----------------------------------
26.Total Noninterest Income 11,788 11,013 7.0% 11,661 1.1% 34,314 32,424 5.8%
----------------------- ------------ ----------------------------------
27.Noninterest Expense:
28. Salaries and Related Benefits 13,054 13,495 -3.3% 13,332 -2.1% 39,912 40,792 -2.2%
29. Occupancy 3,022 3,076 -1.8% 2,944 2.6% 8,913 9,116 -2.2%
30. Equipment 1,101 1,319 -16.5% 1,273 -13.5% 3,536 4,074 -13.2%
31. Data Processing 1,525 1,520 0.3% 1,521 0.3% 4,563 4,597 -0.7%
32. Professional Fees 411 529 -22.3% 511 -19.6% 1,332 1,400 -4.9%
33. Other 5,378 5,595 -3.9% 5,409 -0.6% 16,217 16,567 -2.1%
----------------------- ------------ ----------------------------------
34.Total Noninterest Expense 24,491 25,534 -4.1% 24,990 -2.0% 74,473 76,546 -2.7%
----------------------- ------------ ----------------------------------
35.Income Before Income Taxes 35,559 33,400 6.5% 34,595 2.8% 104,174 100,577 3.6%
36.Provision for income taxes 10,464 9,327 12.2% 9,951 5.2% 30,121 29,822 1.0%
----------------------- ------------ ----------------------------------
37.Net Income $25,095 $24,073 4.2% $24,644 1.8% $74,053 $70,755 4.7%
======================= ============ ==================================
38.Average Shares Outstanding 31,713 32,770 -3.2% 31,760 -0.1% 31,841 32,959 -3.4%
39.Diluted Average Shares 32,352 33,273 -2.8% 32,343 0.0% 32,452 33,442 -3.0%
Outstanding
40.Per Share Data:
41. Basic Earnings $0.79 $0.73 7.7% $0.78 2.0% $2.33 $2.15 8.3%
42. Diluted Earnings 0.78 0.72 7.2% 0.76 1.8% 2.28 2.12 7.9%
43. Dividends Paid 0.28 0.26 7.7% 0.28 0.0% 0.82 0.74 10.8%