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):
April 20, 2005
--------------
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))
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Exhibits
---------
99.1 Press release dated April 19, 2005
Item 2.02: Results of Operations and Financial Condition
----------------------------------------------------------
On April 19, 2005 Westamerica Bancorporation announced their
quarterly earnings for the first quarter of 2005. A copy of
the press release is attached as Exhibit 99.1 to this Form 8-K
and is incorporated herein by reference.
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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
Senior Vice President and Controller
April 20, 2005
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INDEX TO EXHIBITS
-----------------
Sequentially
Exhibit No. Description Number Page
----------- ------------------------- -------------
(99.1) Press release dated 5-16
April 19, 2005
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FOR IMMEDIATE RELEASE
April 19, 2005
WESTAMERICA BANCORPORATION REPORTS FIRST QUARTER 2005 RESULTS
San Rafael, CA: Westamerica Bancorporation (NASDAQ: WABC), parent company of
Westamerica Bank, today reported quarterly net income for the first quarter of
2005 of $22.7 million or $0.70 diluted earnings per share. First quarter 2005
results include one month of operating results following the March 1, 2005
acquisition of Redwood Empire Bancorp. First quarter 2005 results also include a
loss on sale of available-for-sale investment securities totaling $2.8 million,
net of tax, or $0.08 per diluted share outstanding. The prior year's first
quarter results included net income of $24.3 million and $0.74 diluted earnings
per share. The return on equity (ROE) for the first quarter of 2005 was 24.7
percent, and the return on assets (ROA) was 1.90 percent; the loss on sale of
available-for-sale investment securities in the first quarter 2005 reduced ROE
by 3.1 percent and ROA by 0.24 percent. In the first quarter of 2004, ROE was
30.5 percent and ROA was 2.20 percent.
"We are very pleased with first quarter results, especially completion of the
Redwood Empire Bancorp acquisition. This acquisition expands our customer base
in Sonoma and Mendocino counties, and increases the Company's earnings. Systems
integrations are complete, and full integration will be finished by June 30,"
said Chairman, President and CEO David Payne. "Employee and customer retention
remain our priorities following the merger," added Payne.
Page 6
Redwood Empire Bancorp merger consideration included approximately $57 million,
issuance of approximately 1.6 million shares of Westamerica Bancorporation
common stock, and assumption of converted Redwood Empire Bancorp stock options.
Redwood Empire Bancorp's assets totaled approximately $520 million on March 1,
2005. Westamerica intends to complete its branch consolidations in the second
quarter of 2005. Westamerica has also entered an agreement to sell one branch
located in Lake County, and anticipates completion of this transaction late in
the second quarter of 2005.
Net interest income on a fully taxable equivalent basis was $55.0 million in the
first quarter of 2005, compared to $54.6 million in the prior quarter and to
$54.6 million in the first quarter of 2004. The first quarter 2005 net interest
margin on a fully taxable equivalent basis was 4.90 percent, compared to 5.01
percent in the prior quarter and 5.27 percent for the first quarter of 2004.
The provision for loan losses was $300 thousand for the first quarter of 2005,
reduced from $600 thousand in the previous quarter, and from $750 thousand in
the first quarter of 2004. Net loan recoveries totaled $194 thousand or 0.03
percent of average loans (annualized) in the first quarter of 2005.
Noninterest income in the first quarter of 2005 totaled $7.2 million, including
a $4.9 million loss on sale of available-for-sale investment securities. The
Company sold approximately $170 million available-for-sale investment securities
in managing its interest rate risk position taking into consideration the
acquisition of Redwood Empire Bancorp. The securities sold had a duration of 3.2
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years, while the proceeds from sale were applied to reduce overnight borrowings.
First quarter 2005 noninterest income compares to $10.9 million in the first
quarter 2004. Merchant credit card income increased $473 thousand in the first
quarter 2005 compared to the year ago period primarily due to the acquired
merchant card servicing business of Redwood Empire Bancorp. Financial services
fees and debit card fees were also higher than the year ago period due to higher
activity levels.
Noninterest expense for the first quarter of 2005 totaled $25.1 million, $863
thousand higher than the previous quarter, and $148 thousand higher than the
first quarter of 2004. The increase from the prior quarter is primarily due to
higher salaries and benefits, amortization of identified intangibles, and
professional fees, all of which increased primarily due to the acquisition of
Redwood Empire Bancorp. The increase from the first quarter of 2004 is
attributable to professional fees and amortization of identified intangibles,
offset in part by lower salaries and benefits. The first quarter efficiency
ratio of 40.4 percent was 2.9 percent higher due to the loss on sale of
securities. The efficiency ratio in the year ago quarter was 38.2 percent.
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At March 31, 2005, shareholders' equity was $438 million and the equity-to-asset
ratio was 8.4 percent. The Company and its subsidiary bank, Westamerica Bank,
remain "well capitalized" under regulatory capital requirements at March 31,
2005. During the first quarter 2005, approximately 1.6 million shares were
issued to the Redwood Empire Bancorp shareholders, repurchases of the Company's
common stock totaled approximately 373 thousand shares, and approximately 32
thousand shares were issued upon the exercise of stock options.
At March 31, 2005, the Company's assets totaled $5.2 billion and total loans
outstanding totaled $2.7 billion.
Westamerica Bancorporation, through its wholly owned subsidiary Westamerica
Bank, currently operates 91 branches and two trust offices throughout 22
Northern and Central California counties. As a result of the merger with Redwood
Empire Bancorp, the Company anticipates consolidating branches and selling one
branch in Lake County.
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-K for the year ended
December 31, 2004, 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 Redwood Empire Bancorp 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 April 19, 2005
FINANCIAL HIGHLIGHTS
March 31, 2005
1. Net Income Summary.
(dollars in thousands except per-share data)
Q1'05 / Q1'05 / 3/31'05YTD/
Q1'05 Q1'04 Q1'04 Q4'04 Q4'04 3/31'05YTD 3/31'04YTD 3/31'04YTD
---------------------------------------------------------------------------------------
1. Net Interest Income (Fully $55,019 $54,605 0.8% $54,587 0.8% $55,019 $54,605 0.8%
Taxable Equivalent)
2. Loan Loss Provision 300 750 -60.0% 600 -50.0% 300 750 -60.0%
3. Noninterest Income:
4. Investment Securities (4,903) 1,788 n/m (7,180) n/m (4,903) 1,788 n/m
(Loss/Impairment) Gains
5. Loss on Extinguishment 0 (1,814) n/m 0 n/m 0 (1,814) n/m
of Debt
6. Other 12,098 10,892 11.1% 11,449 5.7% 12,098 10,892 11.1%
----------------------- ------------ -----------------------
7. Total Noninterest Income 7,195 10,866 -33.8% 4,269 68.5% 7,195 10,866 -33.8%
----------------------- ------------ -----------------------
8. Noninterest Expense 25,140 24,992 0.6% 24,277 3.6% 25,140 24,992 0.6%
9. Income Tax Provision (FTE) 14,041 15,415 -8.9% 12,814 9.6% 14,041 15,415 -8.9%
----------------------- ------------ -----------------------
10.Net Income $22,733 $24,314 -6.5% $21,165 7.4% $22,733 $24,314 -6.5%
======================= ============ =======================
11.Average Shares Outstanding 32,022 32,051 -0.1% 31,761 0.8% 32,022 32,051 -0.1%
12.Diluted Average Shares 32,680 32,662 0.1% 32,487 0.6% 32,680 32,662 0.1%
Outstanding
13.Operating Ratios:
14. Basic Earnings Per Share $0.71 $0.76 -6.4% $0.67 6.5% $0.71 $0.76 -6.4%
15. Diluted Earnings Per Share 0.70 0.74 -6.6% 0.65 6.8% 0.70 0.74 -6.6%
16. Return On Assets 1.90% 2.20% 1.81% 1.90% 2.20%
17. Return On Equity 24.7% 30.5% 24.0% 24.7% 30.5%
18. Net Interest Margin (FTE) 4.90% 5.27% 5.01% 4.90% 5.27%
19. Efficiency Ratio (FTE) 40.4% 38.2% 41.2% 40.4% 38.2%
20.Dividends Paid Per Share $0.30 $0.26 15.4% $0.28 7.1% $0.30 $0.26 15.4%
21.Dividend Payout Ratio 43% 35% 43% 43% 35%
2. Net Interest Income.
(dollars in thousands)
Q1'05 / Q1'05 / 3/31'05YTD/
Q1'05 Q1'04 Q1'04 Q4'04 Q4'04 3/31'05YTD 3/31'04YTD 3/31'04YTD
---------------------------------------------------------------------------------------
1. Interest and Fee Income (FTE) $63,376 $60,120 5.4% $60,540 4.7% $63,376 $60,120 5.4%
2. Interest Expense 8,357 5,515 51.5% 5,953 40.4% 8,357 5,515 51.5%
----------------------- ------------ -----------------------
3. Net Interest Income (FTE) $55,019 $54,605 0.8% $54,587 0.8% $55,019 $54,605 0.8%
======================= ============ =======================
4. Average Earning Assets $4,518,930 $4,157,061 8.7%$4,352,493 3.8%$4,518,930 $4,157,061 8.7%
5. Average Interest-Bearing 3,132,418 2,880,558 8.7% 2,912,943 7.5% 3,132,418 2,880,558 8.7%
Liabilities
6. Yield on Earning Assets (FTE) 5.65% 5.80% 5.55% 5.65% 5.80%
7. Cost of Funds 0.75% 0.53% 0.54% 0.75% 0.53%
8. Net Interest Margin (FTE) 4.90% 5.27% 5.01% 4.90% 5.27%
9. Interest Expense/Interest- 1.08% 0.77% 0.81% 1.08% 0.77%
Bearing Liabilities
10.Net Interest Spread (FTE) 4.57% 5.03% 4.74% 4.57% 5.03%
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WESTAMERICA BANCORPORATION Public Information April 19, 2005
3. Loans & Other Earning Assets.
(average volume, dollars in thousands)
Q1'05 / Q1'05 / 3/31'05YTD/
Q1'05 Q1'04 Q1'04 Q4'04 Q4'04 3/31'05YTD 3/31'04YTD 3/31'04YTD
---------------------------------------------------------------------------------------
1. Total Assets $4,864,633 $4,451,674 9.3%$4,653,950 4.5%$4,864,633 $4,451,674 9.3%
2. Total Earning Assets 4,518,930 4,157,061 8.7% 4,352,493 3.8% 4,518,930 4,157,061 8.7%
3. Total Loans 2,374,710 2,281,900 4.1% 2,235,375 6.2% 2,374,710 2,281,900 4.1%
4. Commercial Loans 642,461 616,110 4.3% 620,309 3.6% 642,461 616,110 4.3%
5. Commercial Real Estate Loans 809,807 805,420 0.5% 740,909 9.3% 809,807 805,420 0.5%
6. Consumer Loans 922,442 860,370 7.2% 874,157 5.5% 922,442 860,370 7.2%
7. Total Investment Securities 2,144,220 1,875,161 14.3% 2,117,118 1.3% 2,144,220 1,875,161 14.3%
8. Available For Sale 854,585 1,357,097 -37.0% 941,614 -9.2% 854,585 1,357,097 -37.0%
(Market Value)
9. Held To Maturity 1,289,635 518,064 148.9% 1,175,504 9.7% 1,289,635 518,064 148.9%
10. HTM Unrealized (Loss) (13,664) 9,008 n/m 5,064 n/m (13,664) 9,008 n/m
Gain at Period-End
11.Loans / Deposits 63.9% 66.4% 60.1% 63.9% 66.4%
4. Deposits & Other Interest-Bearing Liabilities.
(average volume, dollars in thousands)
Q1'05 / Q1'05 / 3/31'05YTD /
Q1'05 Q1'04 Q1'04 Q4'04 Q4'04 3/31'05YTD 3/31'04YTD 3/31'04YTD
---------------------------------------------------------------------------------------
1. Total Deposits $3,716,554 $3,437,549 8.1%$3,718,114 -0.0%$3,716,554 $3,437,549 8.1%
2. Noninterest Demand 1,314,485 1,209,299 8.7% 1,354,129 -2.9% 1,314,485 1,209,299 8.7%
3. Interest-Bearing Transaction 610,152 564,703 8.0% 588,362 3.7% 610,152 564,703 8.0%
4. Savings 1,114,421 1,040,497 7.1% 1,139,713 -2.2% 1,114,421 1,040,497 7.1%
5. Other Time >$100K 406,034 340,403 19.3% 373,846 8.6% 406,034 340,403 19.3%
6. Other Time < $100K 271,462 282,647 -4.0% 262,064 3.6% 271,462 282,647 -4.0%
7. Total Short-Term Borrowings 703,468 533,158 31.9% 527,529 33.4% 703,468 533,158 31.9%
8. Fed Funds Purchased 551,080 399,075 38.1% 369,986 48.9% 551,080 399,075 38.1%
9. Other Short-Term Funds 152,388 134,083 13.7% 157,543 -3.3% 152,388 134,083 13.7%
10.FHLB Debt 0 96,613 n/m 0 n/m 0 96,613 n/m
11.Long-Term Debt 26,881 22,537 19.3% 21,429 25.4% 26,881 22,537 19.3%
12.Shareholders' Equity 373,627 320,390 16.6% 350,151 6.7% 373,627 320,390 16.6%
13.Demand Deposits/Total Deposits 35.4% 35.2% 36.4% 35.4% 35.2%
14.Transaction & Savings Deposits 81.8% 81.9% 82.9% 81.8% 81.9%
/ Total Deposits
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WESTAMERICA BANCORPORATION Public Information April 19, 2005
5. Interest Yields Earned & Rates Paid.
(dollars in thousands)
Q1'05 Q1'04
------------------------------- Q4'04 --------------------------------- 2004
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) $4,518,930 $63,376 5.65% 5.55%$4,157,061 $60,120 5.80% 5.64%
3. Total Loans (FTE) 2,374,710 36,336 6.21% 6.10% 2,281,900 35,390 6.23% 6.14%
4. Commercial Loans (FTE) 642,461 10,610 6.66% 6.34% 616,110 9,477 6.13% 6.09%
5. Commercial Real Estate 809,807 14,753 7.39% 7.41% 805,420 14,856 7.42% 7.45%
Loans
6. Consumer Loans 922,442 10,973 4.82% 4.91% 860,370 11,057 5.21% 5.07%
7. Total Investment 2,144,220 27,040 5.04% 4.96% 1,875,161 24,730 5.28% 5.07%
Securities (FTE)
8. Interest Expense Paid to:
9. Total Earning Assets 4,518,930 8,357 0.75% 0.54% 4,157,061 5,515 0.53% 0.50%
10. Total Interest-Bearing 3,132,418 8,357 1.08% 0.81% 2,880,558 5,515 0.77% 0.73%
Liabilities
11. Total Interest-Bearing 2,402,069 4,357 0.74% 0.61% 2,228,250 3,153 0.57% 0.57%
Deposits
12. Interest-Bearing 610,152 263 0.17% 0.14% 564,703 112 0.08% 0.11%
Transaction
13. Savings 1,114,421 863 0.31% 0.31% 1,040,497 1,111 0.52% 0.36%
14. Other Time < $100K 271,462 1,238 1.85% 1.64% 282,647 1,004 1.43% 1.49%
15. Other Time >$100K 406,034 1,993 1.99% 1.58% 340,403 926 1.09% 1.27%
16. Total Short-Term Borrowings 703,468 3,570 2.03% 1.48% 533,158 1,131 0.84% 1.06%
17. Fed Funds Purchased 551,080 3,409 2.47% 1.98% 399,075 1,006 1.00% 1.38%
18. Other Short-Term Funds 152,388 161 0.43% 0.29% 134,083 125 0.38% 0.45%
19. FHLB Debt 0 0 0.00% 0.00% 96,613 896 3.75% 3.65%
20. Long-Term Debt 26,881 430 6.40% 5.90% 22,537 335 5.95% 5.91%
21.Net Interest Income and $55,019 4.90% 5.01% $54,605 5.27% 5.14%
Margin (FTE)
6. Noninterest Income.
(dollars in thousands)
Q1'05 / Q1'05 / 3/31'05YTD/
Q1'05 Q1'04 Q1'04 Q4'04 Q4'04 3/31'05YTD 3/31'04YTD 3/31'04YTD
---------------------------------------------------------------------------------------
1. Service Charges on Deposit $6,927 $6,868 0.9% $6,928 -0.0% $6,927 $6,868 0.9%
Accounts
2. Merchant Credit Card Income 1,298 825 57.3% 875 48.3% 1,298 825 57.3%
3. ATM Fees & Interchange 624 583 7.0% 597 4.5% 624 583 7.0%
4. Debit Card Fees 697 549 27.0% 700 -0.4% 697 549 27.0%
5. Financial Services Fees 279 187 49.2% 294 -5.1% 279 187 49.2%
6. Mortgage Banking Income 100 133 -24.8% 82 22.0% 100 133 -24.8%
7. Trust Fees 273 250 9.2% 254 7.5% 273 250 9.2%
8. Other Income 1,900 1,497 26.9% 1,719 10.5% 1,900 1,497 26.9%
----------------------- ------------ -----------------------
9. Sub-total 12,098 10,892 11.1% 11,449 5.7% 12,098 10,892 11.1%
10.Investment Securities (4,903) 1,788 n/m (7,180) n/m (4,903) 1,788 n/m
(Loss/Impairment) Gains
11.Loss on Extinguishment of Debt 0 (1,814) n/m 0 n/m 0 (1,814) n/m
----------------------- ------------ -----------------------
12.Total Noninterest Income $7,195 $10,866 -33.8% $4,269 68.5% $7,195 $10,866 -33.8%
======================= ============ =======================
13.Operating Ratios:
14. Total Revenue (FTE) $62,214 $65,471 -5.0% $58,856 5.7% $62,214 $65,471 -5.0%
15. Noninterest Income / 11.6% 16.6% 7.3% 11.6% 16.6%
Revenue (FTE)
16. Service Charges / 0.76% 0.80% 0.74% 0.76% 0.80%
Deposits (annualized)
17. Total Revenue Per Share $7.88 $8.22 -4.1% $7.37 6.9% $7.88 $8.22 -4.1%
(annualized)
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WESTAMERICA BANCORPORATION Public Information April 19, 2005
7. Noninterest Expense.
(dollars in thousands)
Q1'05 / Q1'05 / 3/31'05YTD/
Q1'05 Q1'04 Q1'04 Q4'04 Q4'04 3/31'05YTD 3/31'04YTD 3/31'04YTD
---------------------------------------------------------------------------------------
1. Salaries & Benefits $13,160 $13,526 -2.7% $12,595 4.5% $13,160 $13,526 -2.7%
2. Occupancy 2,952 2,948 0.1% 3,022 -2.3% 2,952 2,948 0.1%
3. Equipment 1,230 1,162 5.9% 1,259 -2.3% 1,230 1,162 5.9%
4. Data Processing 1,548 1,517 2.0% 1,494 3.6% 1,548 1,517 2.0%
5. Courier 926 884 4.8% 910 1.8% 926 884 4.8%
6. Postage 422 395 6.8% 361 16.9% 422 395 6.8%
7. Telephone 528 572 -7.7% 476 10.9% 528 572 -7.7%
8. Professional Fees 720 409 76.0% 537 34.1% 720 409 76.0%
9. Stationery & Supplies 348 288 20.8% 351 -0.9% 348 288 20.8%
10.Loan Expense 204 255 -20.0% 237 -13.9% 204 255 -20.0%
11.Merchant Card Expense 258 272 -5.1% 270 -4.4% 258 272 -5.1%
12.Operational Losses 190 243 -21.8% 217 -12.4% 190 243 -21.8%
13.Amortization of Identifiable 405 136 197.8% 136 197.8% 405 136 197.8%
Intangibles
14.Other Operating 2,249 2,385 -5.7% 2,412 -6.8% 2,249 2,385 -5.7%
----------------------- ------------ -----------------------
15.Total Noninterest Expense $25,140 $24,992 0.6% $24,277 3.6% $25,140 $24,992 0.6%
======================= ============ =======================
16.Full Time Equivalent Staff 963 1,001 -3.8% 960 0.3% 963 1,001 -3.8%
17.Average Assets / Full Time $5,052 $4,447 13.6% $4,848 4.2% $5,052 $4,447 13.6%
Equivalent Staff
18.Operating Ratios:
19. FTE Revenue / Full Time $262 $263 -0.4% $244 7.4% $262 $263 -0.4%
Equivalent Staff
(annualized)
20. Noninterest Expense / 2.26% 2.42% 2.22% 2.26% 2.42%
Earning Assets
(annualized)
21. Noninterest Expense / 40.4% 38.2% 41.2% 40.4% 38.2%
Revenues
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WESTAMERICA BANCORPORATION Public Information April 19, 2005
8. Loan Loss Provision.
(dollars in thousands)
Q1'05 / Q1'05 / 3/31'05YTD/
Q1'05 Q1'04 Q1'04 Q4'04 Q4'04 3/31'05YTD 3/31'04YTD 3/31'04YTD
---------------------------------------------------------------------------------------
1. Loan Loss Provision $300 $750 -60.0% $600 -50.0% $300 $750 -60.0%
2. Gross Loan Losses 599 1,558 -61.6% 1,596 -62.5% 599 1,558 -61.6%
3. Net Loan (Recoveries) Losses (194) 826 -123.5% 836 n/m (194) 826 -123.5%
4. Recoveries/Gross Losses 132% 47% 48% 132% 47%
5. Average Total Loans $2,374,710 $2,281,900 4.1%$2,235,375 6.2%$2,374,710 $2,281,900 4.1%
6. Net Loan (Recoveries) Losses / -0.03% 0.15% 0.15% -0.03% 0.15%
Loans (annualized)
7. Loan Loss Provision / 0.05% 0.13% 0.11% 0.05% 0.13%
Loans (annualized)
8. Loan Loss Provision / -154.6% 90.8% 71.8% -154.6% 90.8%
Net Loan Losses
(Recoveries)
9. Credit Quality.
(dollars in thousands)
3/31/05 / 3/31/05 /
3/31/05 3/31/04 3/31/04 12/31/04 12/31/04 9/30/04 6/30/04 12/31/03
---------------------------------------------------------------------------------------
1. Nonperforming Nonaccrual Loans $1,766 $5,045 -65.0% $2,970 -40.5% $3,996 $4,695 $5,759
2. Performing Nonaccrual Loans 6,550 2,212 196.1% 4,071 60.9% 2,777 2,233 1,658
----------------------- ------------ ----------------------------------
3. Total Nonaccrual Loans 8,316 7,257 14.6% 7,041 18.1% 6,773 6,928 7,417
4. Accruing Loans 90+ Days 107 190 -43.7% 10 n 182 202 199
Past Due ----------------------- ------------ ----------------------------------
5. Total Nonperforming Loans 8,423 7,447 13.1% 7,051 19.5% 6,955 7,130 7,616
6. Repossessed Collateral 0 80 0 n 0 0 90
7. Total Nonperforming Loans & ----------------------- ------------ ----------------------------------
8. Repossessed Collateral $8,423 $7,527 11.9% $7,051 19.5% $6,955 $7,130 $7,706
======================= ============ ==================================
9. Classified Loans $35,258 $22,965 53.5% $19,225 83.4% $20,868 $21,495 $23,460
======================= ============ ==================================
10.Allowance for Loan Losses $59,859 $53,834 11.2% $54,152 10.5% $54,388 $53,949 $53,910
11.Total Loans Outstanding 2,708,052 2,322,881 16.6% 2,300,230 17.7% 2,301,991 2,319,255 2,323,330
12.Total Assets 5,192,111 4,424,816 17.3% 4,737,268 9.6% 4,636,071 4,611,811 4,576,385
13.Allowance for Loan Losses / 2.21% 2.32% 2.35% 2.36% 2.33% 2.32%
Total Loans
14.Nonperforming Loans / 0.31% 0.32% 0.31% 0.30% 0.31% 0.33%
Total Loans
15.Nonperforming Loans & Repossessed
16. Assets/Total Assets 0.16% 0.17% 0.15% 0.15% 0.15% 0.17%
17.Allowance/Nonperforming Loans 711% 723% 768% 782% 757% 708%
18.Allowance for Loan Losses / 170% 234% 282% 261% 251% 230%
Classified Loans
19.Classified Loans /
20. (Equity + Allowance 7.1% 5.9% 4.7% 5.1% 5.6% 6.0%
for Loan Losses)
Page 14
WESTAMERICA BANCORPORATION Public Information April 19, 2005
10.Capital.
(dollars in thousands, except per-share amounts)
3/31/05 / 3/31/05 /
3/31/05 3/31/04 3/31/04 12/31/04 12/31/04 9/30/04 6/30/04 12/31/03
---------------------------------------------------------------------------------------
1. Shareholders' Equity $437,575 $338,600 29.2% $358,609 22.0% $351,924 $329,795 $340,371
2. Tier I Regulatory Capital 297,791 295,076 0.9% 327,070 -9.0% 321,700 309,037 304,734
3. Total Regulatory Capital 342,146 335,535 2.0% 367,333 -6.9% 361,868 350,834 342,627
4. Total Assets 5,192,111 4,424,816 17.3% 4,737,268 9.6% 4,636,071 4,611,811 4,576,385
5. Risk-Adjusted Assets 3,329,316 2,983,467 11.6% 2,948,797 12.9% 2,964,945 2,979,145 3,007,545
6. Shareholders' Equity / 8.43% 7.65% 7.57% 7.59% 7.15% 7.44%
Total Assets
7. Shareholders' Equity / 16.16% 14.58% 15.59% 15.29% 14.22% 14.65%
Total Loans
8. Tier I Capital /Total Assets 5.74% 6.67% 6.90% 6.94% 6.70% 6.66%
9. Tier I Capital / 8.94% 9.89% 11.09% 10.85% 10.37% 10.13%
Risk-Adjusted Assets
10.Total Capital / 10.28% 11.25% 12.46% 12.20% 11.78% 11.39%
Risk-Adjusted Assets
11.Shares Outstanding 32,939 31,787 3.6% 31,640 4.1% 31,716 31,784 32,287
12.Book Value Per Share ($) $13.28 $10.65 24.7% $11.33 17.2% $11.10 $10.38 $10.54
13.Market Value Per Share ($) 51.77 50.46 2.6% 58.31 -11.2% 54.89 52.45 49.78
14.Share Repurchase Programs
(shares in thousands)
Q1'05 / Q1'05 / 3/31'05YTD/
Q1'05 Q1'04 Q1'04 Q4'04 Q4'04 3/31'05YTD 3/31'04YTD 3/31'04YTD
---------------------------------------------------------------------------------------
15.Total Shares Repurchased / 373 574 -35.0% 242 54.1% 373 574 -35.0%
Canceled
16. Average Repurchase Price $54.59 $49.88 9.4% $58.85 -7.2% $54.59 $49.88 9.4%
17.Net Shares (Issued) Repurchased (1,299) 500 n/m 76 n/m (1,299) 500 n/m
Page 15
WESTAMERICA BANCORPORATION Public Information April 19, 2005
11.Period-End Balance Sheets.
(dollars in thousands)
3/31/05 / 3/31/05 /
3/31/05 3/31/04 3/31/04 12/31/04 2/31/04 9/30/04 6/30/04 12/31/03
---------------------------------------------------------------------------------------
1. Assets:
2. Cash and Money Market Assets $168,881 $167,183 1.0% $126,687 33.3% $165,811 $186,056 $190,162
3. Investment Securities 719,097 1,219,364 -41.0% 931,710 -22.8% 967,266 1,024,798 1,413,911
Available For Sale
4. Investment Securities 1,331,870 586,171 127.2% 1,260,832 5.6% 1,080,392 960,522 535,377
Maturity
5. Loans, gross 2,708,052 2,322,881 16.6% 2,300,230 17.7% 2,301,991 2,319,255 2,323,330
6. Allowance For Loan Losses (59,859) (53,834) 11.2% (54,152) 10.5% (54,388) (53,949) (53,910)
----------------------- ------------ ----------------------------------
7. Loans, net 2,648,193 2,269,047 16.7% 2,246,078 17.9% 2,247,603 2,265,306 2,269,420
8. ----------------------- ------------ ----------------------------------
9. Premises and Equipment 35,586 35,412 0.5% 35,223 1.0% 35,267 35,343 35,748
10. Identifiable Intangible 29,389 3,302 n/m 2,894 n/m 3,030 3,166 3,438
Assets
11. Goodwill 127,503 18,996 n/m 18,996 n/m 18,996 18,996 18,996
12. Interest Receivable and 131,592 125,341 5.0% 114,848 14.6% 117,706 117,624 109,333
Other Assets ----------------------- ------------ ----------------------------------
13.Total Assets $5,192,111 $4,424,816 17.3%$4,737,268 9.6%$4,636,071 $4,611,811 $4,576,385
======================= ============ ==================================
14.Liabilities and Shareholders' Equity:
15. Deposits:
16. Noninterest Bearing $1,371,819 $1,210,829 13.3%$1,273,825 7.7%$1,323,446 $1,272,278 $1,240,379
17. Interest-Bearing 626,693 562,369 11.4% 591,593 5.9% 561,206 569,575 561,696
Transaction
18. Savings 1,166,858 1,049,435 11.2% 1,091,981 6.9% 1,119,356 1,072,701 1,058,082
19. Time 773,473 624,543 23.8% 626,220 23.5% 641,798 590,875 603,834
----------------------- ------------ ----------------------------------
20. Total Deposits 3,938,843 3,447,176 14.3% 3,583,619 9.9% 3,645,806 3,505,429 3,463,991
----------------------- ------------ ----------------------------------
21. Short-Term Borrowed Funds 710,530 491,704 44.5% 735,423 -3.4% 578,285 712,553 590,646
22. FHLB Debt 0 20,000 n/m 0 n/m 0 0 105,000
23. Debt Financing and 40,391 21,429 88.5% 21,429 88.5% 21,429 21,429 24,643
24. Notes Payable
25. Liability For Interest, 64,772 105,907 -38.8% 38,188 69.6% 38,627 42,605 51,734
Taxes and Other ----------------------- ------------ ----------------------------------
26.Total Liabilities 4,754,536 4,086,216 16.4% 4,378,659 8.6% 4,284,147 4,282,016 4,236,014
----------------------- ------------ ----------------------------------
27.Shareholders' Equity:
28. Paid-In Capital $319,438 $219,301 45.7% $229,975 38.9% $224,489 $224,042 $220,285
29. Unrealized Gain (Loss) on
30. Investment Securities 3,511 21,213 -83.4% 9,638 -63.6% 8,185 (1,416) 13,191
Available For Sale
31. Retained Earnings 114,626 98,086 16.9% 118,996 -3.7% 119,250 107,169 106,895
----------------------- ------------ ----------------------------------
32.Total Shareholders' Equity 437,575 338,600 29.2% 358,609 22.0% 351,924 329,795 340,371
----------------------- ------------ ----------------------------------
33.Total Liabilities and $5,192,111 $4,424,816 17.3%$4,737,268 9.6%$4,636,071 $4,611,811 $4,576,385
Shareholders' Equity ======================= ============ ==================================
Page 16
WESTAMERICA BANCORPORATION Public Information April 19, 2005
12.Income Statements.
(dollars in thousands, except per-share amounts)
Q1'05 / Q1'05 / 3/31'05YTD/
Q1'05 Q1'04 Q1'04 Q4'04 Q4'04 3/31'05YTD 3/31'04YTD 3/31'04YTD
---------------------------------------------------------------------------------------
1. Interest and Fee Income:
2. Loans $34,933 $34,023 2.7% $32,889 6.2% $34,933 $34,023 2.7%
3. Money Market Assets and 0 0 n/m 1 n/m 0 0 n/m
Funds Sold
4. Investment Securities 9,469 15,248 -37.9% 10,096 -6.2% 9,469 15,248 -37.9%
Available For Sale
5. Investment Securities 12,901 5,140 151.0% 11,764 9.7% 12,901 5,140 151.0%
Held to Maturity ----------------------- ------------ -----------------------
6. Total Interest Income 57,303 54,411 5.3% 54,750 4.7% 57,303 54,411 5.3%
----------------------- ------------ -----------------------
7. Interest Expense:
8. Transaction Deposits 263 112 134.8% 213 23.5% 263 112 134.8%
9. Savings Deposits 863 1,111 -22.3% 874 -1.3% 863 1,111 -22.3%
10. Time Deposits 3,231 1,930 67.4% 2,562 26.1% 3,231 1,930 67.4%
11. Short-Term Borrowed Funds 3,570 1,131 215.6% 1,988 79.6% 3,570 1,131 215.6%
12. Federal Home Loan Bank 0 896 n/m 0 n/m 0 896 -100.0%
Advances
13. Debt Financing and 430 335 28.4% 316 36.1% 430 335 28.4%
Notes Payable ----------------------- ------------ -----------------------
14.Total Interest Expense 8,357 5,515 51.5% 5,953 40.4% 8,357 5,515 51.5%
----------------------- ------------ -----------------------
15.Net Interest Income 48,946 48,896 0.1% 48,797 0.3% 48,946 48,896 0.1%
----------------------- ------------ -----------------------
16.Provision for Loan Losses 300 750 -60.0% 600 -50.0% 300 750 -60.0%
----------------------- ------------ -----------------------
17.Noninterest Income:
18. Service Charges on 6,927 6,868 0.9% 6,928 -0.0% 6,927 6,868 0.9%
Deposit Accounts
19. Merchant Credit Card 1,298 825 57.3% 875 48.3% 1,298 825 57.3%
20. Financial Services 279 187 49.2% 294 -5.1% 279 187 49.2%
Commissions
21. Mortgage Banking 100 133 -24.8% 82 22.0% 100 133 -24.8%
22. Trust Fees 273 250 9.2% 254 7.5% 273 250 9.2%
23. Securities (4,903) 1,788 n/m (7,180) n/m (4,903) 1,788 n/m
(Loss/Impairment) Gains
24. Loss on Extinguishment 0 (1,814) n/m 0 n/m 0 (1,814) n/m
of Debt
25. Other 3,221 2,629 22.5% 3,016 6.8% 3,221 2,629 22.5%
----------------------- ------------ -----------------------
26.Total Noninterest Income 7,195 10,866 -33.8% 4,269 68.5% 7,195 10,866 -33.8%
----------------------- ------------ -----------------------
27.Noninterest Expense:
28. Salaries and Related Benefits 13,160 13,526 -2.7% 12,595 4.5% 13,160 13,526 -2.7%
29. Occupancy 2,952 2,948 0.1% 3,022 -2.3% 2,952 2,948 0.1%
30. Equipment 1,230 1,162 5.9% 1,259 -2.3% 1,230 1,162 5.9%
31. Data Processing 1,548 1,517 2.0% 1,494 3.6% 1,548 1,517 2.0%
32. Professional Fees 720 409 76.0% 537 34.1% 720 409 76.0%
33. Other 5,530 5,430 1.8% 5,370 3.0% 5,530 5,430 1.8%
----------------------- ------------ -----------------------
34.Total Noninterest Expense 25,140 24,992 0.6% 24,277 3.6% 25,140 24,992 0.6%
----------------------- ------------ -----------------------
35.Income Before Income Taxes 30,701 34,020 -9.8% 28,189 8.9% 30,701 34,020 -9.8%
36.Provision for income taxes 7,968 9,706 -17.9% 7,024 13.4% 7,968 9,706 -17.9%
----------------------- ------------ -----------------------
37.Net Income $22,733 $24,314 -6.5% $21,165 7.4% $22,733 $24,314 -6.5%
======================= ============ =======================
38.Average Shares Outstanding 32,022 32,051 -0.1% 31,761 0.8% 32,022 32,051 -0.1%
39.Diluted Average Shares 32,680 32,662 0.1% 32,487 0.6% 32,680 32,662 0.1%
Outstanding
40.Per Share Data:
41. Basic Earnings $0.71 $0.76 -6.4% $0.67 6.5% $0.71 $0.76 -6.4%
42. Diluted Earnings 0.70 0.74 -6.6% 0.65 6.8% 0.70 0.74 -6.6%
43. Dividends Paid 0.30 0.26 15.4% 0.28 7.1% 0.30 0.26 15.4%