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):
July 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))
Page 2
Exhibits
---------
99.1 Press release dated July 19, 2005
Item 2.02: Results of Operations and Financial Condition
----------------------------------------------------------
On July 19, 2005 Westamerica Bancorporation announced their
quarterly earnings for the second 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.
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
Senior Vice President and Controller
July 20, 2005
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INDEX TO EXHIBITS
-----------------
Sequentially
Exhibit No. Description Number Page
----------- ------------------------- -------------
(99.1) Press release dated 5-16
July 19, 2005
Page 5
FOR IMMEDIATE RELEASE
July 19, 2005
WESTAMERICA BANCORPORATION REPORTS RECORD $27.9 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 2005 of $27.9 million, or $0.84 diluted earnings per share, compared
to net income of $24.6 million, or $0.76 diluted earnings per share for the
second quarter of 2004. Second quarter 2005 results include a property sale
gain, which increased diluted earnings per share $0.03. Return on assets was
2.17 percent and return on equity was 26.0 percent for the second quarter of
2005. The second quarter of 2005 represents the first full quarter of operations
following the March 1, 2005 acquisition of Redwood Empire Bancorp.
"Non-interest revenue growth following the Redwood acquisition is diversifying
our revenues. Merchant credit card income increased $1.1 million during the
second quarter of 2005 compared to the first quarter, and deposit service
charges increased $615 thousand. The integration of Redwood's systems and
branches is complete, and our retention of Redwood employees and customers is
ahead of our expectations," said Chairman, President and CEO David Payne. "We
are proud to be growing diluted earnings per share and delivering 26 percent
return on equity for our shareholders," Payne added.
Page 6
Net interest income on a taxable equivalent basis was $57.0 million for the
second quarter of 2005, $2.7 million higher than the $54.3 million reported for
the second quarter of 2004. The increased net interest income is attributable to
a higher earning asset base, offset in part by a reduced net interest margin.
Average earning assets were $542 million higher in the second quarter 2005
compared to the year ago quarter, primarily due to the Redwood Empire Bancorp
acquisition. The second quarter 2005 net interest margin on a taxable equivalent
basis was 4.84 percent, compared to 4.90 percent for the prior quarter and 5.21
percent for the second quarter of 2004. The reduced net interest margin
primarily resulted from time deposit and wholesale funding costs rising more
than earning asset yields.
The provision for loan losses was $300 thousand for the second quarter of 2005
unchanged from the prior quarter and down from $750 thousand for the second
quarter of 2004. Net charge-offs for the second quarter of 2005 totaled $297
thousand, or 0.04 percent (annualized) of average loans compared to 0.11 percent
(annualized) of average loans for the second quarter of 2004. Non-performing
loans and repossessed loan collateral at June 30, 2005 totaled $7.8 million,
down from $8.4 million at March 31, 2005.
Noninterest income for the second quarter of 2005 was $15.5 million, compared to
$7.2 million for the previous quarter and $11.7 million for the second quarter
of 2004. Of the $8.3 million increase over the first quarter:
* $1.8 million is attributable to higher operating revenues, including merchant
credit card income primarily from the acquired Redwood Empire Bancorp ($1.1
million increase), higher service charges on deposit accounts primarily due
to the higher post-acquisition deposit base ($615 thousand increase), and
higher debit card income ($114 thousand increase).
* $1.3 million is attributable to the property sale gain in the second quarter
2005, and
* $4.9 million is attributable to securities losses realized in the first
quarter to manage the Company's interest rate risk position taking into
consideration the acquisition of Redwood Empire Bancorp.
Page 7
The $3.8 million increase in noninterest income over the second quarter 2004 is
attributable to higher revenues from merchant credit card income ($1.5 million
increase), higher service charges on deposit accounts ($182 thousand increase),
higher debit card income ($173 thousand increase), and the property sale gain
($1.3 million).
Noninterest expense for the second quarter of 2005 totaled $26.8 million,
increased from $25.1 million for the first quarter, and up from $25.0 million
for the second quarter of 2004. Comparing the second quarter of 2005 to the
first quarter, higher personnel costs, amortization of intangible assets, and
occupancy and equipment expense were offset in part by lower professional fees.
Comparing the second quarter of 2005 to the second quarter of 2004, the increase
in noninterest expense was primarily due to higher personnel costs, amortization
of intangible assets, and occupancy and equipment expense. The second quarter
2005 efficiency ratio (expenses divided by revenues) was 36.9 percent, compared
to 40.4 percent for the prior quarter and 37.9 percent for the second quarter of
2004.
Shareholders' equity at June 30, 2005 was $440 million, slightly increased from
$438 million at March 31, 2005. The Company's total regulatory capital ratio
increased to 10.4 percent at June 30, 2005 from 10.3 percent at March 31, 2005;
both measurements exceed the "well-capitalized" level of 10 percent under
regulatory requirements.
Westamerica Bancorporation, through its wholly owned subsidiary Westamerica
Bank, operates 89 branches throughout 22 Northern and Central California
counties. At June 30, 2005, the Company's total assets and total loans
outstanding were $5.2 billion and $2.7 billion, respectively.
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
March 31, 2005 and 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 July 19, 2005
FINANCIAL HIGHLIGHTS
June 30, 2005
1. Net Income Summary.
(dollars in thousands except per-share data)
Q2'05 / Q2'05 / 6/30'05YTD/
Q2'05 Q2'04 Q2'04 Q1'05 Q1'05 6/30'05YTD 6/30'04YTD 6/30'04YTD
---------------------------------------------------------------------------------------
1. Net Interest Income (Fully $57,023 $54,271 5.1% $55,019 3.6% $112,043 $108,877 2.9%
Taxable Equivalent)
2. Loan Loss Provision 300 750 -60.0% 300 0.0% 600 1,500 -60.0%
3. Noninterest Income:
4. Investment Securities 0 395 n/m (4,903) n/m (4,903) 2,183 n/m
(Loss/Impairment) Gains
5. Loss on Extinguishment 0 (390) n/m 0 n/m 0 (2,204) n/m
of Debt
6. Other 15,479 11,656 32.8% 12,098 27.9% 27,577 22,547 22.3%
----------------------- ------------ -----------------------
7. Total Noninterest Income 15,479 11,661 32.7% 7,195 115.1% 22,674 22,526 0.7%
----------------------- ------------ -----------------------
8. Noninterest Expense 26,757 24,990 7.1% 25,140 6.4% 51,898 49,982 3.8%
9. Income Tax Provision (FTE) 17,531 15,548 12.8% 14,041 24.9% 31,571 30,963 2.0%
----------------------- ------------ -----------------------
10.Net Income $27,914 $24,644 13.3% $22,733 22.8% $50,648 $48,958 3.5%
======================= ============ =======================
11.Average Shares Outstanding 32,759 31,760 3.1% 32,022 2.3% 32,393 31,906 1.5%
12.Diluted Average Shares 33,364 32,343 3.2% 32,680 2.1% 33,024 32,502 1.6%
Outstanding
13.Operating Ratios:
14. Basic Earnings Per Share $0.85 $0.78 9.8% $0.71 20.0% $1.56 $1.53 1.9%
15. Diluted Earnings Per Share 0.84 0.76 9.8% 0.70 20.3% 1.53 1.51 1.8%
16. Return On Assets 2.17% 2.21% 1.90% 2.04% 2.20%
17. Return On Equity 26.0% 31.1% 24.7% 25.4% 30.8%
18. Net Interest Margin (FTE) 4.84% 5.21% 4.90% 4.87% 5.24%
19. Efficiency Ratio (FTE) 36.9% 37.9% 40.4% 38.5% 38.0%
20.Dividends Paid Per Share $0.30 $0.28 7.1% $0.30 0.0% $0.60 $0.54 11.1%
21.Dividend Payout Ratio 36% 37% 43% 39% 36%
2. Net Interest Income.
(dollars in thousands)
Q2'05 / Q2'05 / 6/30'05YTD/
Q2'05 Q2'04 Q2'04 Q1'05 Q1'05 6/30'05YTD 6/30'04YTD 6/30'04YTD
---------------------------------------------------------------------------------------
1. Interest and Fee Income (FTE) $67,769 $58,868 15.1% $63,376 6.9% $131,145 $118,988 10.2%
2. Interest Expense 10,746 4,597 133.8% 8,357 28.6% 19,102 10,111 88.9%
----------------------- ------------ -----------------------
3. Net Interest Income (FTE) $57,023 $54,271 5.1% $55,019 3.6% $112,043 $108,877 2.9%
======================= ============ =======================
4. Average Earning Assets $4,719,635 $4,177,358 13.0%$4,518,930 4.4%$4,619,282 $4,167,210 10.8%
5. Average Interest-Bearing 3,304,766 2,868,615 15.2% 3,132,418 5.5% 3,218,592 2,874,585 12.0%
Liabilities
6. Yield on Earning Assets (FTE) 5.75% 5.65% 5.65% 5.70% 5.73%
7. Cost of Funds 0.91% 0.44% 0.75% 0.83% 0.49%
8. Net Interest Margin (FTE) 4.84% 5.21% 4.90% 4.87% 5.24%
9. Interest Expense/Interest- 1.30% 0.64% 1.08% 1.19% 0.70%
Bearing Liabilities
10.Net Interest Spread (FTE) 4.45% 5.01% 4.57% 4.51% 5.03%
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WESTAMERICA BANCORPORATION Public Information July 19, 2005
3. Loans & Other Earning Assets.
(average volume, dollars in thousands)
Q2'05 / Q2'05 / 6/30'05YTD/
Q2'05 Q2'04 Q2'04 Q1'05 Q1'05 6/30'05YTD 6/30'04YTD 6/30'04YTD
---------------------------------------------------------------------------------------
1. Total Assets $5,170,029 $4,482,261 15.3%$4,864,633 6.3%$5,017,331 $4,466,967 12.3%
2. Total Earning Assets 4,719,635 4,177,358 13.0% 4,518,930 4.4% 4,619,282 4,167,210 10.8%
3. Total Loans 2,670,662 2,268,989 17.7% 2,374,710 12.5% 2,522,686 2,275,444 10.9%
4. Commercial Loans 724,681 623,688 16.2% 642,461 12.8% 683,571 619,899 10.3%
5. Commercial Real Estate Loans 956,931 779,408 22.8% 809,807 18.2% 883,369 792,414 11.5%
6. Consumer Loans 989,050 865,893 14.2% 922,442 7.2% 955,746 863,131 10.7%
7. Total Investment Securities 2,048,973 1,908,369 7.4% 2,144,220 -4.4% 2,096,596 1,891,766 10.8%
8. Available For Sale 710,960 1,092,295 -34.9% 854,585 -16.8% 782,376 1,227,373 -36.3%
(Market Value)
9. Held To Maturity 1,338,013 816,074 64.0% 1,289,635 3.8% 1,314,220 664,393 97.8%
10. HTM Unrealized (Loss) 8,529 (11,265) n/m (13,664) n/m 8,529 (11,265) n/m
Gain at Period-End
11.Loans / Deposits 68.4% 65.0% 63.9% 66.2% 65.7%
4. Deposits & Other Interest-Bearing Liabilities.
(average volume, dollars in thousands)
Q2'05 / Q2'05 / 6/30'05YTD/
Q2'05 Q2'04 Q2'04 Q1'05 Q1'05 6/30'05YTD 6/30'04YTD 6/30'04YTD
---------------------------------------------------------------------------------------
1. Total Deposits $3,906,875 $3,489,250 12.0%$3,716,554 5.1%$3,811,714 $3,463,399 10.1%
2. Noninterest Demand 1,387,984 1,256,128 10.5% 1,314,485 5.6% 1,351,234 1,232,714 9.6%
3. Interest-Bearing Transaction 633,645 574,854 10.2% 610,152 3.9% 621,899 569,778 9.1%
4. Savings 1,130,024 1,044,943 8.1% 1,114,421 1.4% 1,122,223 1,042,720 7.6%
5. Other Time >$100K 448,104 339,773 31.9% 406,034 10.4% 427,069 340,088 25.6%
6. Other Time < $100K 307,118 273,552 12.3% 271,462 13.1% 289,289 278,099 4.0%
7. Total Short-Term Borrowings 745,499 614,065 21.4% 703,468 6.0% 724,483 573,612 26.3%
8. Fed Funds Purchased 585,205 323,953 80.6% 551,080 6.2% 568,143 361,514 57.2%
9. Other Short-Term Funds 160,294 290,112 -44.7% 152,388 5.2% 156,340 212,098 -26.3%
10.FHLB Debt 0 0 n/m 0 n/m 0 48,306 n/m
11.Long-Term Debt 40,376 21,428 88.4% 26,881 50.2% 33,629 21,982 53.0%
12.Shareholders' Equity 430,796 318,560 35.2% 373,627 15.3% 402,212 319,475 25.9%
13.Demand Deposits / Total Deposits 35.5% 36.0% 35.4% 35.4% 35.6%
14.Transaction & Savings Deposits 80.7% 82.4% 81.8% 81.2% 82.2%
/ Total Deposits
Page 11
WESTAMERICA BANCORPORATION Public Information July 19, 2005
5. Interest Yields Earned & Rates Paid.
(dollars in thousands)
Q2'05 Q2'04
------------------------------- Q1'05 --------------------------------- 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) $4,719,635 $67,769 5.75% 5.65%$4,177,358 $58,868 5.65% 5.64%
3. Total Loans (FTE) 2,670,662 41,347 6.21% 6.21% 2,268,989 34,771 6.16% 6.14%
4. Commercial Loans (FTE) 724,681 12,498 6.88% 6.66% 623,688 9,337 6.00% 6.09%
5. Commercial Real Estate Loans 956,931 16,905 7.09% 7.39% 779,408 14,709 7.57% 7.45%
6. Consumer Loans 989,050 11,944 4.90% 4.82% 865,893 10,725 5.02% 5.07%
7. Total Investment 2,048,973 26,422 5.16% 5.04% 1,908,369 24,097 5.05% 5.07%
Securities (FTE)
8. Interest Expense Paid to:
9. Total Earning Assets 4,719,635 10,746 0.91% 0.75% 4,177,358 4,597 0.44% 0.50%
10. Total Interest-Bearing 3,304,766 10,746 1.30% 1.08% 2,868,615 4,597 0.64% 0.73%
Liabilities
11. Total Interest-Bearing 2,518,891 5,454 0.87% 0.74% 2,233,122 2,994 0.54% 0.57%
Deposits
12. Interest-Bearing 633,645 340 0.22% 0.17% 574,854 124 0.09% 0.11%
Transaction
13. Savings 1,130,024 970 0.34% 0.31% 1,044,943 992 0.38% 0.36%
14. Other Time < $100K 307,118 1,542 2.01% 1.85% 273,552 956 1.41% 1.49%
15. Other Time >$100K 448,104 2,602 2.33% 1.99% 339,773 922 1.08% 1.27%
16. Total Short-Term Borrowings 745,499 4,655 2.47% 2.03% 614,065 1,285 0.83% 1.06%
17. Fed Funds Purchased 585,205 4,379 2.96% 2.47% 323,953 828 1.01% 1.38%
18. Other Short-Term Funds 160,294 276 0.69% 0.43% 290,112 457 0.62% 0.45%
19. FHLB Debt 0 0 0.00% 0.00% 0 2 0.00% 3.65%
20. Long-Term Debt 40,376 637 6.31% 6.40% 21,428 316 5.90% 5.91%
21.Net Interest Income and $57,023 4.84% 4.90% $54,271 5.21% 5.14%
Margin (FTE)
6. Noninterest Income.
(dollars in thousands)
Q2'05 / Q2'05 / 6/30'05YTD/
Q2'05 Q2'04 Q2'04 Q1'05 Q1'05 6/30'05YTD 6/30'04YTD 6/30'04YTD
---------------------------------------------------------------------------------------
1. Service Charges on Deposit $7,542 $7,360 2.5% $6,927 8.9% $14,469 $14,228 1.7%
Accounts
2. Merchant Credit Card Income 2,417 909 165.9% 1,298 86.2% 3,715 1,735 114.1%
3. ATM Fees & Interchange 709 643 10.3% 624 13.6% 1,333 1,226 8.7%
4. Debit Card Fees 811 638 27.1% 697 16.4% 1,509 1,187 27.1%
5. Financial Services Fees 339 360 -5.8% 279 21.5% 619 547 13.2%
6. Mortgage Banking Income 67 131 -48.9% 100 -33.0% 168 263 -36.1%
7. Trust Fees 309 258 19.8% 273 13.2% 583 508 14.8%
8. Other Income 3,285 1,357 142.1% 1,900 72.9% 5,181 2,853 81.6%
----------------------- ------------ -----------------------
9. Sub-total 15,479 11,656 32.8% 12,098 27.9% 27,577 22,547 22.3%
10.Investment Securities 0 395 n/m (4,903) n/m (4,903) 2,183 n/m
Gains (Losses)
11.Loss on Extinguishment 0 (390) n/m 0 n/m 0 (2,204) n/m
Debt
----------------------- ------------ -----------------------
12.Total Noninterest Income $15,479 $11,661 32.7% $7,195 115.1% $22,674 $22,526 0.7%
======================= ============ =======================
13.Operating Ratios:
14. Total Revenue (FTE) $72,502 $65,932 10.0% $62,214 16.5% $134,717 $131,403 2.5%
15. Noninterest Income / 21.3% 17.7% 11.6% 16.8% 17.1%
Revenue (FTE)
16. Service Charges / Deposits 0.77% 0.85% 0.76% 0.77% 0.83%
(annualized)
17. Total Revenue Per Share $8.88 $8.35 6.3% $7.88 12.7% $8.39 $8.28 1.3%
(annualized)
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WESTAMERICA BANCORPORATION Public Information July 19, 2005
7. Noninterest Expense.
(dollars in thousands)
Q2'05 / Q2'05 / 6/30'05YTD/
Q2'05 Q2'04 Q2'04 Q1'05 Q1'05 6/30'05YTD 6/30'04YTD 6/30'04YTD
---------------------------------------------------------------------------------------
1. Salaries & Benefits $13,624 $13,332 2.2% $13,160 3.5% $26,784 $26,858 -0.3%
2. Occupancy 3,230 2,944 9.7% 2,952 9.4% 6,181 5,892 4.9%
3. Equipment 1,313 1,273 3.1% 1,230 6.7% 2,544 2,435 4.5%
4. Data Processing 1,539 1,521 1.2% 1,548 -0.6% 3,087 3,038 1.6%
5. Courier 964 888 8.6% 926 4.1% 1,890 1,772 6.7%
6. Postage 376 364 3.3% 422 -10.9% 797 758 5.1%
7. Telephone 553 535 3.4% 528 4.7% 1,081 1,107 -2.3%
8. Professional Fees 604 511 18.2% 720 -16.1% 1,324 921 43.8%
9. Stationery & Supplies 304 309 -1.6% 348 -12.6% 652 597 9.2%
10.Loan Expense 232 295 -21.4% 204 13.7% 436 550 -20.7%
11.Merchant Card Expense 263 268 -1.9% 258 1.9% 520 541 -3.9%
12.Operational Losses 200 238 -16.0% 190 5.3% 390 481 -18.9%
13.Amortization of Identifiable 1,092 136 n/m 405 n/m 1,497 272 n/m
Intangibles
14.Other Operating 2,463 2,376 3.7% 2,249 9.5% 4,715 4,760 -0.9%
----------------------- ------------ -----------------------
15.Total Noninterest Expense $26,757 $24,990 7.1% $25,140 6.4% $51,898 $49,982 3.8%
======================= ============ =======================
16.Full Time Equivalent Staff 974 995 -2.1% 963 1.1% 969 998 -2.9%
17.Average Assets / Full Time $5,308 $4,505 17.8% $5,052 5.1% $5,178 $4,476 15.7%
Equivalent Staff
18.Operating Ratios:
19. FTE Revenue / Full Time $299 $267 12.0% $262 14.0% $280 $265 5.9%
Equivalent Staff (annualized)
20. Noninterest Expense / 2.27% 2.41% 2.26% 2.27% 2.41%
Earning Assets (annualized)
21. Noninterest Expense / 36.9% 37.9% 40.4% 38.5% 38.0%
Revenues
Page 13
WESTAMERICA BANCORPORATION Public Information July 19, 2005
8. Loan Loss Provision.
(dollars in thousands)
Q2'05 / Q2'05 / 6/30'05YTD/
Q2'05 Q2'04 Q2'04 Q1'05 Q1'05 6/30'05YTD 6/30'04YTD 6/30'04YTD
---------------------------------------------------------------------------------------
1. Loan Loss Provision $300 $750 -60.0% $300 0.0% $600 $1,500 -60.0%
2. Gross Loan Losses 754 1,324 -43.1% 599 25.9% 1,353 2,882 -53.1%
3. Net Loan (Recoveries) Losses 297 636 -53.3% (194) n/m 103 1,461 -93.0%
4. Recoveries/Gross Losses 61% 52% 132% 92% 49%
5. Average Total Loans $2,670,662 $2,268,989 17.7%$2,374,710 12.5%$2,522,686 $2,275,444 10.9%
6. Net Loan (Recoveries) Losses / 0.04% 0.11% -0.03% 0.01% 0.13%
Loans (annualized)
7. Loan Loss Provision / Loans 0.05% 0.13% 0.05% 0.05% 0.13%
(annualized)
8. Loan Loss Provision / 101.0% 117.9% -154.6% 582.5% 102.7%
Net Loan Losses (Recoveries)
9. Credit Quality.
(dollars in thousands)
6/30/05 / 6/30/05 /
6/30/05 6/30/04 6/30/04 3/31/05 3/31/05 12/31/04 9/30/04 3/31/04
---------------------------------------------------------------------------------------
1. Nonperforming Nonaccrual Loans $1,560 $4,695 -66.8% $1,766 -11.7% $2,970 $3,996 $5,045
2. Performing Nonaccrual Loans 6,072 2,233 171.9% 6,550 -7.3% 4,071 2,777 2,212
----------------------- ------------ ----------------------------------
3. Total Nonaccrual Loans 7,632 6,928 10.2% 8,316 -8.2% 7,041 6,773 7,257
4. Accruing Loans 90+ Days 84 202 -58.4% 107 n 10 182 190
Past Due ----------------------- ------------ ----------------------------------
5. Total Nonperforming Loans 7,716 7,130 8.2% 8,423 -8.4% 7,051 6,955 7,447
6. Repossessed Collateral 40 0 n/m 0 n/m 0 0 80
----------------------- ------------ ----------------------------------
7. Total Nonperforming Loans &
8. Repossessed Collateral $7,756 $7,130 8.8% $8,423 -7.9% $7,051 $6,955 $7,527
======================= ============ ==================================
9. Classified Loans $37,615 $21,495 75.0% $35,258 6.7% $19,225 $20,868 $22,965
======================= ============ ==================================
10.Allowance for Loan Losses $59,862 $53,949 11.0% $59,859 0.0% $54,152 $54,388 $53,834
11.Total Loans Outstanding 2,687,566 2,319,255 15.9% 2,708,052 -0.8% 2,300,230 2,301,991 2,322,881
12.Total Assets 5,191,093 4,611,811 12.6% 5,192,111 -0.0% 4,737,268 4,636,071 4,424,816
13.Allowance for Loan Losses / 2.23% 2.33% 2.21% 2.35% 2.36% 2.32%
Total Loans
14.Nonperforming Loans / 0.29% 0.31% 0.31% 0.31% 0.30% 0.32%
Total Loans
15.Nonperforming Loans & Repossessed
16. Assets/Total Assets 0.15% 0.15% 0.16% 0.15% 0.15% 0.17%
17.Allowance/Nonperforming Loans 776% 757% 711% 768% 782% 723%
18.Allowance for Loan Losses / 159% 251% 170% 282% 261% 234%
Classified Loans
19.Classified Loans /
20. (Equity + Allowance for 7.5% 5.6% 7.1% 4.7% 5.1% 5.9%
Loan Losses)
Page 14
WESTAMERICA BANCORPORATION Public Information July 19, 2005
10.Capital.
(dollars in thousands, except per-share amounts)
6/30/05 / 6/30/05 /
6/30/05 6/30/04 6/30/04 3/31/05 3/31/05 12/31/04 9/30/04 3/31/04
---------------------------------------------------------------------------------------
1. Shareholders' Equity $439,617 $329,795 33.3% $437,575 0.5% $358,609 $351,924 $338,600
2. Tier I Regulatory Capital 299,003 309,037 -3.2% 297,791 0.4% 327,070 321,700 295,076
3. Total Regulatory Capital 342,967 350,834 -2.2% 342,146 0.2% 367,333 361,868 335,535
4. Total Assets 5,191,093 4,611,811 12.6% 5,192,111 -0.0% 4,737,268 4,636,071 4,424,816
5. Risk-Adjusted Assets 3,307,055 2,979,145 11.0% 3,329,316 -0.7% 2,948,797 2,964,945 2,983,467
6. Shareholders' Equity / 8.47% 7.15% 8.43% 7.57% 7.59% 7.65%
Total Assets
7. Shareholders' Equity / 16.36% 14.22% 16.16% 15.59% 15.29% 14.58%
Total Loans
8. Tier I Capital /Total Assets 5.76% 6.70% 5.74% 6.90% 6.94% 6.67%
9. Tier I Capital / 9.04% 10.37% 8.94% 11.09% 10.85% 9.89%
Risk-Adjusted Assets
10.Total Capital / 10.37% 11.78% 10.28% 12.46% 12.20% 11.25%
Risk-Adjusted Assets
11.Shares Outstanding 32,593 31,784 2.5% 32,939 -1.1% 31,640 31,716 31,787
12.Book Value Per Share ($) $13.49 $10.38 30.0% $13.28 1.5% $11.33 $11.10 $10.65
13.Market Value Per Share ($) 52.81 52.45 0.7% 51.77 2.0% 58.31 54.89 50.46
14.Share Repurchase Programs
(shares in thousands)
Q2'05 / Q2'05 / 6/30'05YTD/
Q2'05 Q2'04 Q2'04 Q1'05 Q1'05 6/30'05YTD 6/30'04YTD 6/30'04YTD
---------------------------------------------------------------------------------------
15.Total Shares Repurchased / 490 154 218.2% 373 31.4% 863 728 18.5%
Canceled
16. Average Repurchase Price $51.31 $49.17 4.4% $54.59 -6.0% $52.76 $49.73 6.1%
17.Net Shares (Issued) Repurchased 346 3 n/m (1,299) n/m (953) 503 n/m
Page 15
WESTAMERICA BANCORPORATION Public Information July 19, 2005
11.Period-End Balance Sheets.
(dollars in thousands)
6/30/05 / 6/30/05 /
6/30/05 6/30/04 6/30/04 3/31/05 3/31/05 12/31/04 9/30/04 3/31/04
---------------------------------------------------------------------------------------
1. Assets:
2. Cash and Money Market Assets $195,289 $186,056 5.0% $168,881 15.6% $126,687 $165,811 $167,183
3. Investment Securities 691,609 1,024,798 -32.5% 719,097 -3.8% 931,710 967,266 1,219,364
Available For Sale
4. Investment Securities 1,349,555 960,522 40.5% 1,331,870 1.3% 1,260,832 1,080,392 586,171
Held to Maturity
5. Loans, gross 2,687,566 2,319,255 15.9% 2,708,052 -0.8% 2,300,230 2,301,991 2,322,881
6. Allowance For Loan Losses (59,862) (53,949) 11.0% (59,859) 0.0% (54,152) (54,388) (53,834)
----------------------- ------------ ----------------------------------
7. Loans, net 2,627,704 2,265,306 16.0% 2,648,193 -0.8% 2,246,078 2,247,603 2,269,047
8. ----------------------- ------------ ----------------------------------
9. Premises and Equipment 34,864 35,343 -1.4% 35,586 -2.0% 35,223 35,267 35,412
10. Identifiable Intangible Assets 28,297 3,166 n/m 29,389 n/m 2,894 3,030 3,302
11. Goodwill 124,122 18,996 n/m 127,503 n/m 18,996 18,996 18,996
12. Interest Receivable and 139,653 117,624 18.7% 131,592 6.1% 114,848 117,706 125,341
Other Assets ----------------------- ------------ ----------------------------------
13.Total Assets $5,191,093 $4,611,811 12.6%$5,192,111 -0.0%$4,737,268 $4,636,071 $4,424,816
======================= ============ ==================================
14.Liabilities and Shareholders' Equity:
15. Deposits:
16. Noninterest Bearing $1,377,680 $1,272,278 8.3%$1,371,819 0.4%$1,273,825 $1,323,446 $1,210,829
17. Interest-Bearing Transaction 614,246 569,575 7.8% 626,693 -2.0% 591,593 561,206 562,369
18. Savings 1,114,631 1,072,701 3.9% 1,166,858 -4.5% 1,091,981 1,119,356 1,049,435
19. Time 726,283 590,875 22.9% 773,473 -6.1% 626,220 641,798 624,543
----------------------- ------------ ----------------------------------
20. Total Deposits 3,832,840 3,505,429 9.3% 3,938,843 -2.7% 3,583,619 3,645,806 3,447,176
----------------------- ------------ ----------------------------------
21. Short-Term Borrowed Funds 828,280 712,553 16.2% 710,530 16.6% 735,423 578,285 491,704
22. FHLB Debt 0 0 n/m 0 n/m 0 0 20,000
23. Debt Financing and 40,354 21,429 88.3% 40,391 -0.1% 21,429 21,429 21,429
24. Notes Payable
25. Liability For Interest, 50,002 42,605 17.4% 64,772 -22.8% 38,188 38,627 105,907
Taxes and Other ----------------------- ------------ ----------------------------------
26.Total Liabilities 4,751,476 4,282,016 11.0% 4,754,536 -0.1% 4,378,659 4,284,147 4,086,216
----------------------- ------------ ----------------------------------
27.Shareholders' Equity:
28. Paid-In Capital $319,103 $224,042 42.4% $319,438 -0.1% $229,975 $224,489 $219,301
29. Unrealized Gain (Loss) on
Investment Securities
30. Available For Sale 8,185 (1,416) n/m 3,511 133.1% 9,638 8,185 21,213
31. Retained Earnings 112,329 107,169 4.8% 114,626 -2.0% 118,996 119,250 98,086
----------------------- ------------ -----------------------
32.Total Shareholders' Equity 439,617 329,795 33.3% 437,575 0.5% 358,609 351,924 338,600
----------------------- ------------ ----------------------------------
33.Total Liabilities and $5,191,093 $4,611,811 12.6%$5,192,111 -0.0%$4,737,268 $4,636,071 $4,424,816
Shareholders' Equity ======================= ============ ==================================
Page 16
WESTAMERICA BANCORPORATION Public Information July 19, 2005
12.Income Statements.
(dollars in thousands, except per-share amounts)
Q2'05 / Q2'05 / 6/30'05YTD/
Q2'05 Q2'04 Q2'04 Q1'05 Q1'05 6/30'05YTD 6/30'04YTD 6/30'04YTD
---------------------------------------------------------------------------------------
1. Interest and Fee Income:
2. Loans $39,941 $33,403 19.6% $34,933 14.3% $74,874 $67,425 11.0%
3. Money Market Assets and 1 0 n/m 0 n/m 1 1 n/m
Funds Sold
4. Investment Securities 8,073 11,679 -30.9% 9,469 -14.7% 17,543 26,928 -34.9%
Available For Sale
5. Investment Securities 13,441 8,189 64.1% 12,901 4.2% 26,341 13,328 97.6%
Held to Maturity ----------------------- ------------ -----------------------
6. Total Interest Income 61,456 53,271 15.4% 57,303 7.2% 118,759 107,682 10.3%
----------------------- ------------ -----------------------
7. Interest Expense:
8. Transaction Deposits 340 124 174.2% 263 29.3% 602 236 155.1%
9. Savings Deposits 970 992 -2.2% 863 12.4% 1,834 2,102 -12.7%
10. Time Deposits 4,144 1,878 120.7% 3,231 28.3% 7,375 3,808 93.7%
11. Short-Term Borrowed Funds 4,655 1,285 262.3% 3,570 30.4% 8,224 2,416 240.4%
12. Federal Home Loan Bank 0 2 n/m 0 n/m 0 897 -100.0%
Advances
13. Debt Financing and 637 316 101.6% 430 48.1% 1,067 652 63.7%
Notes Payable ----------------------- ------------ -----------------------
14.Total Interest Expense 10,746 4,597 133.8% 8,357 28.6% 19,102 10,111 88.9%
----------------------- ------------ -----------------------
15.Net Interest Income 50,710 48,674 4.2% 48,946 3.6% 99,657 97,571 2.1%
----------------------- ------------ -----------------------
16.Provision for Loan Losses 300 750 -60.0% 300 0.0% 600 1,500 -60.0%
----------------------- ------------ -----------------------
17.Noninterest Income:
18. Service Charges on 7,542 7,360 2.5% 6,927 8.9% 14,469 14,228 1.7%
Deposit Accounts
19. Merchant Credit Card 2,417 909 165.9% 1,298 86.2% 3,715 1,735 114.1%
20. Financial Services 339 360 -5.8% 279 21.5% 619 547 13.2%
Commissions
21. Mortgage Banking 67 131 -48.9% 100 -33.0% 168 263 -36.1%
22. Trust Fees 309 258 19.8% 273 13.2% 583 508 14.8%
23. Securities Gains (Losses) 0 395 n/m (4,903) n/m (4,903) 2,183 n/m
24. Loss on Extinguishment 0 (390) n/m 0 n/m 0 (2,204) n/m
of Debt
25. Other 4,805 2,638 82.1% 3,221 49.2% 8,023 5,266 52.4%
----------------------- ------------ -----------------------
26.Total Noninterest Income 15,479 11,661 32.7% 7,195 115.1% 22,674 22,526 0.7%
----------------------- ------------ -----------------------
27.Noninterest Expense:
28. Salaries and Related Benefits 13,624 13,332 2.2% 13,160 3.5% 26,784 26,858 -0.3%
29. Occupancy 3,230 2,944 9.7% 2,952 9.4% 6,181 5,892 4.9%
30. Equipment 1,313 1,273 3.1% 1,230 6.7% 2,544 2,435 4.5%
31. Data Processing 1,539 1,521 1.2% 1,548 -0.6% 3,087 3,038 1.6%
32. Professional Fees 604 511 18.2% 720 -16.1% 1,324 921 43.8%
33. Other 6,447 5,409 19.2% 5,530 16.6% 11,978 10,838 10.5%
----------------------- ------------ -----------------------
34.Total Noninterest Expense 26,757 24,990 7.1% 25,140 6.4% 51,898 49,982 3.8%
----------------------- ------------ -----------------------
35.Income Before Income Taxes 39,132 34,595 13.1% 30,701 27.5% 69,833 68,615 1.8%
36.Provision for Income Taxes 11,218 9,951 12.7% 7,968 40.8% 19,185 19,657 -2.4%
----------------------- ------------ -----------------------
37.Net Income $27,914 $24,644 13.3% $22,733 22.8% $50,648 $48,958 3.5%
======================= ============ =======================
38.Average Shares Outstanding 32,759 31,760 3.1% 32,022 2.3% 32,393 31,906 1.5%
39.Diluted Average Shares 33,364 32,343 3.2% 32,680 2.1% 33,024 32,502 1.6%
Outstanding
40.Per Share Data:
41. Basic Earnings $0.85 $0.78 9.8% $0.71 20.0% $1.56 $1.53 1.9%
42. Diluted Earnings 0.84 0.76 9.8% 0.70 20.3% 1.53 1.51 1.8%
43. Dividends Paid 0.30 0.28 7.1% 0.30 0.0% 0.60 0.54 11.1%