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):
January 20, 2006
----------------
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 January 19, 2006
Item 2.02: Results of Operations and Financial Condition
----------------------------------------------------------
On January 19, 2006 Westamerica Bancorporation announced their
quarterly earnings for the fourth 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/ JOHN "ROBERT" THORSON
-------------------------------------------------
John "Robert" Thorson
Senior Vice President and Chief Financial Officer
January 20, 2006
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INDEX TO EXHIBITS
-----------------
Sequentially
Exhibit No. Description Number Page
----------- ------------------------- -------------
(99.1) Press release dated 5-16
January 19, 2006
Page 5
FOR IMMEDIATE RELEASE
January 19, 2006
WESTAMERICA BANCORPORATION REPORTS RECORD ANNUAL EARNINGS
San Rafael, CA: Westamerica Bancorporation (NASDAQ: WABC), parent company of
Westamerica Bank, today reported record net income for the year ended December
31, 2005 of $107.4 million, compared to $95.2 million for 2004. Diluted earnings
per share (EPS) for 2005 were $3.27, an 11 percent increase over $2.93 for the
year 2004. Results for the year 2005 include available-for-sale securities
losses, gains on the sale of real estate, and company owned life insurance
proceeds, which combined to increase net income $247 thousand. Results for the
year 2004 included an impairment charge related to Freddie Mac and Fannie Mae
preferred stock, which reduced net income $4.2 million, or EPS of $0.13. Return
on shareholders' equity for the year 2005 was 26.0 percent and return on assets
was 2.12 percent, compared to 28.8 percent and 2.10 percent, respectively, for
the year 2004. For the year 2005, shareholder dividends totaled $1.22 per share,
an 11 percent increase over $1.10 per share for the year 2004.
"Fourth quarter 2005 results benefited from an increased net interest margin,
strength in merchant card processing and debit card fees, and cost containment,"
said Chairman, President and CEO David Payne. "During the fourth quarter, our
focus on reducing high-cost funding sources helped our net interest margin
increase to 4.80 percent from 4.76 percent in the prior quarter. The March 2005
Redwood Empire Bancorp acquisition helped grow our fee income to 20 percent of
revenues in 2005, while our efficiency ratio remains low at 37.7 percent. We are
pleased to be generating a 26 percent return on our shareholders' equity,"
continued Payne.
Page 6
Net income for the fourth quarter 2005 totaled $27.6 million, or EPS of $0.85.
Fourth quarter results include company owned life insurance proceeds, which
account for $0.01 EPS. Fourth quarter 2005 results compare to EPS of $0.89 for
the third quarter 2005, which included a gain on the sale of a facility vacated
following the Redwood Empire Bancorp acquisition and company owned life
insurance proceeds combining to account for $0.06 EPS. Fourth quarter 2005
results also compare to EPS of $0.65 for the fourth quarter 2004, which included
the impairment charge, which reduced EPS $0.13. Fourth quarter 2005 return on
shareholders' equity was 26.0 percent and return on assets was 2.15 percent.
Net interest income on a fully taxable equivalent basis was $55.8 million in the
fourth quarter of 2005 compared to $56.0 million in the prior quarter and $54.6
million in the same quarter a year ago. The fourth quarter 2005 net interest
margin on a taxable equivalent basis was 4.80 percent, compared to 4.76 percent
for the previous quarter and 5.01 percent for the fourth quarter of 2004. For
the full year 2005, net interest income and the net interest margin on a fully
taxable equivalent basis were $223.9 million and 4.82 percent, compared to
$218.0 million and 5.14 percent, respectively, for 2004.
The provision for credit losses was $150 thousand for the fourth quarter of
2005, unchanged from the previous quarter and down from $600 thousand for the
year ago quarter. The level of the credit loss provision reflects management's
assessment of credit risk for the loan portfolio.
Noninterest income in the fourth quarter of 2005 totaled $14.4 million, compared
to $17.4 million reported in the previous quarter. The decrease from the prior
quarter is primarily attributable to a third quarter $2.4 million gain on the
sale of a facility vacated following the Redwood Empire Bancorp acquisition.
Noninterest income for the fourth quarter 2005 increased $10.2 million from
noninterest income for the fourth quarter 2004. The fourth quarter 2004 included
a $7.2 million "other than temporary impairment" charge for Freddie Mac and
Fannie Mae preferred stock. The remaining $3.0 million increase in fourth
quarter 2005 noninterest income from fourth quarter 2004 levels is primarily
attributable to higher merchant card processing fees, service charges on deposit
accounts, and debit card income. For the full year 2005, noninterest income
increased to $54.5 million from $38.6 million for 2004. Of the $15.9 million
annual increase, $6.9 million of the increase is attributable to the 2004
impairment charge and the 2005 securities losses, gains from the sale of real
estate and company owned life insurance proceeds. The remaining $9.0 million
increase in noninterest income from the prior year is primarily attributable to
higher merchant card processing fees, debit card income, service charges on
deposit accounts, and ATM fees.
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Noninterest expense for the fourth quarter of 2005 totaled $26.2 million
compared to $26.8 million in the prior quarter and $24.3 million in the year ago
quarter. The decrease from the prior quarter is primarily attributable to lower
salaries and benefits. The increase from the year ago quarter is primarily
attributable to higher amortization of intangible assets, personnel costs, and
occupancy expense as a result of the Redwood Empire Bancorp acquisition. For the
full year, noninterest expense was $104.9 million, up six percent from $98.8
million for 2004. The increase is primarily attributable to higher amortization
of intangible assets, salaries and benefits, occupancy and equipment expense,
and professional fees.
Shareholders' equity was $427 million at December 31, 2005, and the equity-to-
asset ratio was 8.3 percent. At December 31, 2005, there were approximately 1.5
million shares remaining to purchase under the Company's existing share
repurchase program. At December 31, 2005, the Company had total assets of $5.1
billion and total loans outstanding of $2.7 billion.
Westamerica Bancorporation, through its wholly owned subsidiary Westamerica
Bank, operates 87 branches throughout 21 Northern and Central California
counties.
Westamerica Bancorporation Web Address: www.westamerica.com
For additional information contact:
Westamerica Bancorporation
Robert A. Thorson - SVP & Chief Financial Officer
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
September 30, 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, 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 January 19, 2006
FINANCIAL HIGHLIGHTS
December 31, 2005
1. Net Income Summary.
(dollars in thousands except per-share data)
Q4'05 / Q4'05 / 12/31'05YTD /
Q4'05 Q4'04 Q4'04 Q3'05 Q3'05 12/31'05YTD12/31'04YTD12/31'04YTD
---------------------------------------------------------------------------------------
1. Net Interest Income $55,830 $54,587 2.3% $55,993 -0.3% $223,866 $217,993 2.7%
(Fully Taxable Equivalent)
2. Provision for Credit Losses 150 600 -75.0% 150 0.0% 900 2,700 -66.7%
3. Noninterest Income:
4. Investment Securities 0 (7,180) n/m 0 n/m (4,903) (5,011) -2.2%
(Loss/Impairment) Gains
5. Loss on Extinguishment 0 0 n/m 0 n/m 0 (2,204) n/m
of Debt
6. Other 14,427 11,449 26.0% 17,440 -17.3% 59,443 45,798 29.8%
----------------------- ------------ -----------------------
7. Total Noninterest Income 14,427 4,269 237.9% 17,440 -17.3% 54,540 38,583 41.4%
----------------------- ------------ -----------------------
8. Noninterest Expense 26,168 24,277 7.8% 26,791 -2.3% 104,856 98,751 6.2%
9. Income Tax Provision (FTE) 16,340 12,814 27.5% 17,298 -5.5% 65,209 59,907 8.9%
----------------------- ------------ -----------------------
10.Net Income $27,599 $21,165 30.4% $29,194 -5.5% $107,441 $95,218 12.8%
======================= ============ =======================
11.Average Shares Outstanding 32,029 31,761 0.8% 32,352 -1.0% 32,291 31,821 1.5%
12.Diluted Average Shares 32,572 32,487 0.3% 32,972 -1.2% 32,897 32,461 1.3%
Outstanding
13.Operating Ratios:
14. Basic Earnings Per Share $0.86 $0.67 29.3% $0.90 -4.5% $3.33 $2.99 11.2%
15. Diluted Earnings Per Share 0.85 0.65 30.1% 0.89 -4.3% 3.27 2.93 11.3%
16. Return On Assets 2.15% 1.81% 2.25% 2.12% 2.10%
17. Return On Equity 26.0% 24.0% 27.3% 26.0% 28.8%
18. Net Interest Margin (FTE) 4.80% 5.01% 4.76% 4.82% 5.14%
19. Efficiency Ratio (FTE) 37.2% 41.2% 36.5% 37.7% 38.5%
20.Dividends Paid Per Share $0.32 $0.28 14.3% $0.30 6.7% $1.22 $1.10 10.9%
21.Dividend Payout Ratio 38% 43% 34% 37% 38%
(FTE) Dollar amount or ratio on a fully-taxable equivalent basis.
2. Net Interest Income.
(dollars in thousands)
Q4'05 / Q4'05 / 12/31'05YTD /
Q4'05 Q4'04 Q4'04 Q3'05 Q3'05 12/31'05YTD12/31'04YTD12/31'04YTD
---------------------------------------------------------------------------------------
1. Interest and Fee Income (FTE) $68,349 $60,540 12.9% $68,021 0.5% $267,515 $239,099 11.9%
2. Interest Expense 12,519 5,953 110.3% 12,028 4.1% 43,649 21,106 106.8%
----------------------- ------------ -----------------------
3. Net Interest Income (FTE) $55,830 $54,587 2.3% $55,993 -0.3% $223,866 $217,993 2.7%
======================= ============ =======================
4. Average Earning Assets $4,639,319 $4,352,493 6.6%$4,695,342 -1.2%$4,643,307 $4,236,903 9.6%
5. Average Interest-Bearing 3,168,720 2,912,943 8.8% 3,266,697 -3.0% 3,218,151 2,886,233 11.5%
Liabilities
6. Yield on Earning Assets (FTE) 5.87% 5.55% 5.77% 5.76% 5.64%
7. Cost of Funds 1.07% 0.54% 1.01% 0.94% 0.50%
8. Net Interest Margin (FTE) 4.80% 5.01% 4.76% 4.82% 5.14%
9. Interest Expense/Interest- 1.56% 0.81% 1.45% 1.36% 0.73%
Bearing Liabilities
10.Net Interest Spread (FTE) 4.31% 4.74% 4.32% 4.40% 4.91%
(FTE) Dollar amount, margin, or spread on a fully-taxable equivalent basis.
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WESTAMERICA BANCORPORATION Public Information January 19, 2006
3. Loans & Other Earning Assets.
(average volume, dollars in thousands)
Q4'05 / Q4'05 / 12/31'05YTD /
Q4'05 Q4'04 Q4'04 Q3'05 Q3'05 12/31'05YTD12/31'04YTD12/31'04YTD
---------------------------------------------------------------------------------------
1. Total Assets $5,089,078 $4,653,950 9.3%$5,141,666 -1.0%$5,066,351 $4,536,452 11.7%
2. Total Earning Assets 4,639,319 4,352,493 6.6% 4,695,342 -1.2% 4,643,307 4,236,903 9.6%
3. Total Loans 2,616,813 2,235,375 17.1% 2,643,270 -1.0% 2,576,363 2,258,482 14.1%
4. Commercial Loans 698,375 620,309 12.6% 711,330 -1.8% 694,212 621,258 11.7%
5. Commercial Real Estate Loans 921,141 740,909 24.3% 937,380 -1.7% 906,315 769,533 17.8%
6. Consumer Loans 997,297 874,157 14.1% 994,560 0.3% 975,836 867,691 12.5%
7. Total Investment Securities 2,022,506 2,117,118 -4.5% 2,052,072 -1.4% 2,066,944 1,978,421 4.5%
8. Available For Sale 670,499 941,614 -28.8% 681,098 -1.6% 728,649 1,096,789 -33.6%
(Market Value)
9. Held To Maturity 1,352,007 1,175,504 15.0% 1,370,974 -1.4% 1,338,295 881,632 51.8%
10. HTM Unrealized (Loss) (13,434) 5,154 n/m (8,157) n/m (13,434) 5,154 n/m
Gain at Period-End
11.Loans / Deposits 67.1% 60.1% 68.3% 66.9% 63.3%
4. Deposits & Other Interest-Bearing Liabilities.
(average volume, dollars in thousands)
Q4'05 / Q4'05 / 12/31'05YTD /
Q4'05 Q4'04 Q4'04 Q3'05 Q3'05 12/31'05YTD12/31'04YTD12/31'04YTD
---------------------------------------------------------------------------------------
1. Total Deposits $3,898,859 $3,718,114 4.9%$3,872,414 0.7%$3,848,675 $3,565,308 7.9%
2. Noninterest Demand 1,435,193 1,354,129 6.0% 1,400,272 2.5% 1,384,483 1,281,349 8.0%
3. Interest-Bearing Transaction 655,109 588,362 11.3% 632,680 3.5% 632,897 577,296 9.6%
4. Savings 1,073,971 1,139,713 -5.8% 1,104,237 -2.7% 1,105,664 1,085,051 1.9%
5. Other Time >$100K 470,016 373,846 25.7% 455,293 3.2% 444,862 350,400 27.0%
6. Other Time < $100K 264,570 262,064 1.0% 279,932 -5.5% 280,769 271,212 3.5%
7. Total Short-Term Borrowings 664,752 527,529 26.0% 754,215 -11.9% 716,984 556,415 28.9%
8. Fed Funds Purchased 480,649 369,986 29.9% 585,156 -17.9% 550,523 360,771 52.6%
9. Other Short-Term Funds 184,103 157,543 16.9% 169,059 8.9% 166,461 195,644 -14.9%
10.FHLB Debt 0 0 n/m 0 n/m 0 24,153 n/m
11.Long-Term Debt 40,302 21,429 88.1% 40,340 -0.1% 36,975 21,706 70.3%
12.Shareholders' Equity 421,536 350,151 20.4% 424,277 -0.6% 412,559 330,330 24.9%
13.Demand Deposits / Total Deposits 36.8% 36.4% 36.2% 36.0% 35.9%
14.Transaction & Savings 81.2% 82.9% 81.0% 81.1% 82.6%
Deposits / Total Deposits
Page 11
WESTAMERICA BANCORPORATION Public Information January 19, 2006
5. Interest Yields Earned & Rates Paid.
(dollars in thousands)
Q4'05 Q4'04
------------------------------- Q3'05 --------------------------------- 2004
Average Income/ Yield/ Yield/ Average Income/ Yield/ Yield/
Volume Expense Rate Rate Volume Expense Rate Rate
---------------------------------------------------------------------------------------
1. Interest & Fees Income Earned
2. Total Earning Assets (FTE) $4,639,319 $68,349 5.87% 5.77%$4,352,493 $60,540 5.55% 5.64%
3. Total Loans (FTE) 2,616,813 41,971 6.36% 6.21% 2,235,375 34,297 6.10% 6.14%
4. Commercial Loans (FTE) 698,375 13,027 7.32% 6.92% 620,309 9,959 6.34% 6.09%
5. Commercial Real Estate Loans 921,141 16,580 7.14% 7.12% 740,909 13,793 7.41% 7.45%
6. Consumer Loans 997,297 12,364 5.03% 4.93% 874,157 10,545 4.91% 5.07%
7. Total Investment Securities 2,022,506 26,378 5.22% 5.19% 2,117,118 26,243 4.96% 5.07%
(FTE)
8. Interest Expense Paid
9. Total Earning Assets 4,639,319 12,519 1.07% 1.01% 4,352,493 5,953 0.54% 0.50%
10. Total Interest-Bearing 3,168,720 12,519 1.56% 1.45% 2,912,943 5,953 0.81% 0.73%
Liabilities
11. Total Interest-Bearing 2,463,666 6,586 1.06% 0.96% 2,363,985 3,649 0.61% 0.57%
Deposits
12. Interest-Bearing 655,109 457 0.28% 0.25% 588,362 213 0.14% 0.11%
Transaction
13. Savings 1,073,971 953 0.35% 0.34% 1,139,713 874 0.31% 0.36%
14. Other Time < $100K 264,570 1,444 2.17% 2.07% 262,064 1,081 1.64% 1.49%
15. Other Time >$100K 470,016 3,732 3.15% 2.74% 373,846 1,481 1.58% 1.27%
16. Total Short-Term Borrowings 664,752 5,296 3.12% 2.81% 527,529 1,988 1.48% 1.06%
17. Fed Funds Purchased 480,649 4,888 3.98% 3.45% 369,986 1,874 1.98% 1.38%
18. Other Short-Term Funds 184,103 408 0.88% 0.60% 157,543 114 0.29% 0.45%
19. FHLB Debt 0 0 0.00% 0.00% 0 0 0.00% 3.65%
20. Long-Term Debt 40,302 637 6.32% 6.35% 21,429 316 5.90% 5.91%
21.Net Interest Income and Margin (FTE) $55,830 4.80% 4.76% $54,587 5.01% 5.14%
(FTE) Income, yield, or margin on a fully-taxable equivalent basis.
6. Noninterest Income.
(dollars in thousands)
Q4'05 / Q4'05 / 12/31'05YTD /
Q4'05 Q4'04 Q4'04 Q3'05 Q3'05 12/31'05YTD12/31'04YTD12/31'04YTD
---------------------------------------------------------------------------------------
1. Service Charges on Deposit $7,202 $6,928 4.0% $7,436 -3.1% $29,106 $28,621 1.7%
Accounts
2. Merchant Credit Card Income 2,751 875 214.4% 2,631 4.6% 9,097 3,509 159.2%
3. ATM Fees & Interchange 653 597 9.4% 725 -9.9% 2,711 2,487 9.0%
4. Debit Card Fees 865 700 23.6% 834 3.7% 3,207 2,541 26.2%
5. Financial Services Fees 380 294 29.3% 388 -2.1% 1,387 1,250 11.0%
6. Mortgage Banking Income 62 82 -24.4% 62 0.0% 292 386 -24.4%
7. Trust Fees 275 254 8.3% 323 -14.9% 1,181 1,027 15.0%
8. Other Income 2,239 1,719 30.3% 2,672 -16.2% 8,762 5,977 46.6%
----------------------- ------------ -----------------------
9. Sub-total 14,427 11,449 26.0% 15,071 -4.3% 55,743 45,798 21.7%
10 Gains on Sales of Real Property 0 0 n/m 2,369 -100.0% 3,700 0 n/m
11 Investment Securities 0 (7,180) n/m 0 n/m (4,903) (5,011) -2.2%
Gains (Losses)
12 Loss on Extinguishment of Debt 0 0 n/m 0 n/m 0 (2,204) n/m
13 Total Noninterest Income $14,427 $4,269 237.9% $17,440 -17.3% $54,540 $38,583 41.4%
======================= ============ =======================
14 Operating Ratios:
15 Total Revenue (FTE) $70,257 $58,856 19.4% $73,433 -4.3% $278,406 $256,576 8.5%
16 Noninterest Income / Revenue 20.5% 7.3% 23.7% 19.6% 15.0%
(FTE)
17 Service Charges / Deposits 0.73% 0.74% 0.76% 0.76% 0.80%
(annualized)
18 Total Revenue Per Share $8.70 $7.37 18.0% $9.01 -3.4% $8.62 $8.06 6.9%
(annualized)
(FTE) Dollar amount on a fully-taxable equivalent basis.
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WESTAMERICA BANCORPORATION Public Information January 19, 2006
7. Noninterest Expense.
(dollars in thousands)
Q4'05 / Q4'05 / 12/31'05YTD /
Q4'05 Q4'04 Q4'04 Q3'05 Q3'05 12/31'05YTD12/31'04YTD12/31'04YTD
---------------------------------------------------------------------------------------
1. Salaries & Benefits $13,055 $12,595 3.7% $13,621 -4.2% $53,460 $52,507 1.8%
2. Occupancy 3,196 3,022 5.8% 3,201 -0.2% 12,579 11,935 5.4%
3. Equipment 1,321 1,259 4.9% 1,347 -1.9% 5,212 4,794 8.7%
4. Data Processing 1,524 1,494 2.0% 1,544 -1.3% 6,156 6,057 1.6%
5. Courier 952 910 4.6% 989 -3.7% 3,831 3,605 6.3%
6. Postage 441 361 22.2% 377 17.0% 1,615 1,407 14.8%
7. Telephone 497 476 4.4% 537 -7.4% 2,115 2,112 0.1%
8. Professional Fees 599 537 11.5% 497 20.5% 2,420 1,869 29.5%
9. Stationery & Supplies 314 351 -10.5% 298 5.4% 1,264 1,280 -1.3%
10.Loan Expense 200 237 -15.6% 309 -35.3% 945 1,077 -12.3%
11.Merchant Card Expense 243 270 -10.0% 272 -10.7% 1,035 1,104 -6.3%
12.Operational Losses 303 217 39.6% 222 36.5% 915 964 -5.1%
13.Amortization of Identifiable 1,064 136 n/m 1,064 0.0% 3,625 543 n/m
Intangibles
14.Other Operating 2,459 2,412 1.9% 2,513 -2.1% 9,684 9,497 2.0%
----------------------- ------------ -----------------------
15.Total Noninterest Expense $26,168 $24,277 7.8% $26,791 -2.3% $104,856 $98,751 6.2%
======================= ============ =======================
16.Full Time Equivalent (FTE) Staff 945 960 -1.6% 956 -1.2% 959 984 -2.5%
17.Average Assets / Full Time $5,385 $4,848 11.1% $5,378 0.1% $5,283 $4,610 14.6%
Equivalent Staff
18.Operating Ratios:
19. FTE Revenue / Full Time $295 $244 20.9% $305 -3.2% $290 $261 11.3%
Equivalent Staff
(annualized)
20. Noninterest Expense / 2.24% 2.22% 2.26% 2.26% 2.33%
/ Earning Assets
(annualized)
21. Noninterest Expense / Revenue 37.2% 41.2% 36.5% 37.7% 38.5%
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WESTAMERICA BANCORPORATION Public Information January 19, 2006
8. Provision for Credit Losses.
(dollars in thousands)
Q4'05 / Q4'05 / 12/31'05YTD /
Q4'05 Q4'04 Q4'04 Q3'05 Q3'05 12/31'05YTD12/31'04YTD12/31'04YTD
---------------------------------------------------------------------------------------
1. Provision for Credit Losses $150 $600 -75.0% $150 0.0% $900 $2,700 -66.7%
2. Gross Loan Losses 701 1,596 -56.1% 684 2.5% 2,738 5,593 -51.0%
3. Net Loan Losses 287 836 -65.7% 338 -15.1% 728 2,458 -70.4%
4. Recoveries / Gross Loan Losses 59% 48% 51% 73% 56%
5. Average Total Loans $2,616,813 $2,235,375 17.1%$2,643,270 -1.0%$2,576,363 $2,258,482 14.1%
6. Net Loan Losses / Loans 0.04% 0.15% 0.05% 0.03% 0.11%
Net Loan Losses / Loans
(annualized)
7. Provision for Credit Losses / 0.02% 0.11% 0.02% 0.03% 0.12%
Loans (annualized)
8. Provision for Credit Losses / 52.3% 71.8% 44.4% 123.6% 109.8%
Net Loan Losses
9. Credit Quality.
(dollars in thousands)
12/31/05 / 12/31/05 /
12/31/05 12/31/04 12/31/04 9/30/05 9/30/05 6/30/05 3/31/05 9/30/04
---------------------------------------------------------------------------------------
1. Nonperforming Nonaccrual Loans $2,068 $2,970 -30.4% $2,292 -9.8% $1,560 $1,766 $3,996
2. Performing Nonaccrual Loans 4,256 4,071 4.5% 4,514 -5.7% 6,072 6,550 2,777
----------------------- ------------ ----------------------------------
3. Total Nonaccrual Loans 6,324 7,041 -10.2% 6,806 -7.1% 7,632 8,316 6,773
4. Accruing Loans 90+ Days Past Due 162 10 n/m 1,334 n/m 84 107 182
----------------------- ------------ ----------------------------------
5. Total Nonperforming Loans 6,486 7,051 -8.0% 8,140 -20.3% 7,716 8,423 6,955
6. Repossessed Collateral 0 0 n/m 0 n/m 40 0 0
7. Total Nonperforming Loans & ----------------------- ------------ ----------------------------------
8. Repossessed Collateral $6,486 $7,051 -8.0% $8,140 -20.3% $7,756 $8,423 $6,955
======================= ============ ==================================
9. Classified Loans $29,997 $19,225 56.0% $36,656 -18.2% $37,615 $35,258 $20,868
======================= ============ ==================================
10.Allowance for Loan Losses $55,849 $54,152 3.1% $59,674 -6.4% $59,862 $59,859 $54,388
11.Total Loans Outstanding 2,672,221 2,300,230 16.2% 2,675,907 -0.1% 2,687,566 2,708,052 2,301,991
12.Total Assets 5,149,209 4,737,268 8.7% 5,153,091 -0.1% 5,191,093 5,192,111 4,636,071
13.Allowance for Loan Losses / 2.09% 2.35% 2.23% 2.23% 2.21% 2.36%
Total Loans
14.Nonperforming Loans / Total Loans 0.24% 0.31% 0.30% 0.29% 0.31% 0.30%
15.Nonperforming Loans & Repossessed
16. Collateral/Total Assets 0.13% 0.15% 0.16% 0.15% 0.16% 0.15%
17.Allowance/Nonperforming Loans 861% 768% 733% 776% 711% 782%
18.Allowance for Loan Losses / 186% 282% 163% 159% 170% 261%
Classified Loans
19.Classified Loans /
20. (Equity + Allowance 6.2% 4.7% 7.5% 7.5% 7.1% 5.1%
for Loan Losses)
Page 14
WESTAMERICA BANCORPORATION Public Information January 19, 2006
10.Capital.
(dollars in thousands, except per-share amounts)
12/31/05 / 12/31/05 /
12/31/05 12/31/04 12/31/04 9/30/05 9/30/05 6/30/05 3/31/05 9/30/04
---------------------------------------------------------------------------------------
1. Shareholders' Equity $426,714 $358,609 19.0% $432,024 -1.2% $439,617 $437,575 $351,924
2. Tier I Regulatory Capital 296,746 327,070 -9.3% 297,896 -0.4% 299,003 297,791 321,700
3. Total Regulatory Capital 339,881 367,333 -7.5% 341,147 -0.4% 342,967 342,146 361,586
4. Total Assets 5,149,209 4,737,268 8.7% 5,153,091 -0.1% 5,191,093 5,192,111 4,636,071
5. Risk-Adjusted Assets 3,267,226 2,948,797 10.8% 3,275,611 -0.3% 3,307,055 3,329,316 2,942,140
6. Shareholders' Equity / 8.29% 7.57% 8.38% 8.47% 8.43% 7.59%
Total Assets
7. Shareholders' Equity / 15.97% 15.59% 16.14% 16.36% 16.16% 15.29%
Total Loans
8. Tier I Capital /Total Assets 5.76% 6.90% 5.78% 5.76% 5.74% 6.94%
9. Tier I Capital / 9.08% 11.09% 9.09% 9.04% 8.94% 10.93%
Risk-Adjusted Assets
10.Total Capital / 10.40% 12.46% 10.41% 10.37% 10.28% 12.29%
Risk-Adjusted Assets
11.Shares Outstanding 31,882 31,640 0.8% 32,198 -1.0% 32,593 32,939 31,716
12.Book Value Per Share ($) $13.38 $11.33 18.1% $13.42 -0.3% $13.49 $13.28 $11.10
13.Market Value Per Share ($) 53.07 58.31 -9.0% 51.65 2.7% 52.81 51.77 54.89
14.Share Repurchase Programs
(shares in thousands)
Q4'05 / Q4'05 / 12/31'05YTD /
Q4'05 Q4'04 Q4'04 Q3'05 Q3'05 12/31'05YTD12/31'04YTD12/31'04YTD
---------------------------------------------------------------------------------------
15.Total Shares Repurchased / 500 242 106.6% 437 14.4% 1,794 1,062 68.9%
Canceled
16. Average Repurchase Price $52.91 $58.85 -10.1% $53.60 -1.3% $52.99 $52.00 1.9%
17.Net Shares Repurchased (Issued) 316 76 n/m 395 n/m (242) 647 n/m
Page 15
WESTAMERICA BANCORPORATION Public Information January 19, 2006
11.Period-End Balance Sheets.
(dollars in thousands)
12/31/05 / 12/31/05 /
12/31/05 12/31/04 12/31/04 9/30/05 9/30/05 6/30/05 3/31/05 9/30/04
---------------------------------------------------------------------------------------
1. Assets:
2. Cash and Money Market Assets $209,807 $126,687 65.6% $193,760 8.3% $195,289 $168,881 $165,811
3. Investment Securities 662,388 931,710 -28.9% 660,630 0.3% 691,609 719,097 967,266
Available For Sale
4. Investment Securities 1,337,216 1,260,832 6.1% 1,358,266 -1.5% 1,349,555 1,331,870 1,080,392
Held to Maturity
5. Loans, gross 2,672,221 2,300,230 16.2% 2,675,907 -0.1% 2,687,566 2,708,052 2,301,991
6. Allowance For Loan Losses (55,849) (54,152) 3.1% (59,674) -6.4% (59,862) (59,859) (54,388)
----------------------- ------------ ----------------------------------
7. Loans, net 2,616,372 2,246,078 16.5% 2,616,233 0.0% 2,627,704 2,648,193 2,247,603
----------------------- ------------ ----------------------------------
9. Premises and Equipment 33,221 35,223 -5.7% 33,640 -1.2% 34,864 35,586 35,267
10. Identifiable Intangible Assets 26,170 2,894 n/m 27,233 -3.9% 28,297 29,389 3,030
11. Goodwill 121,907 18,996 n/m 124,122 -1.8% 124,122 127,503 18,996
12. Interest Receivable 142,128 114,848 23.8% 139,207 2.1% 139,653 131,592 117,706
and Other Assets ----------------------- ------------ ----------------------------------
13.Total Assets $5,149,209 $4,737,268 8.7%$5,153,091 -0.1%$5,191,093 $5,192,111 $4,636,071
======================= ============ ==================================
14.Liabilities and Shareholders' Equity:
15. Deposits:
16. Noninterest Bearing $1,419,313 $1,273,825 11.4%$1,412,470 0.5%$1,377,680 $1,371,819 $1,323,446
17. Interest-Bearing Transaction 658,667 591,593 11.3% 635,019 3.7% 614,246 626,693 561,206
18. Savings 1,022,645 1,091,981 -6.3% 1,094,130 -6.5% 1,114,631 1,166,858 1,119,356
19. Time 745,476 626,220 19.0% 732,316 1.8% 726,283 773,473 641,798
----------------------- ------------ ----------------------------------
20. Total Deposits 3,846,101 3,583,619 7.3% 3,873,935 -0.7% 3,832,840 3,938,843 3,645,806
----------------------- ------------ ----------------------------------
21. Short-Term Borrowed Funds 775,173 735,423 5.4% 764,143 1.4% 828,280 710,530 578,285
22. FHLB Debt 0 0 n/m 0 n/m 0 0 0
24. Debt Financing and 40,281 21,429 88.0% 40,318 -0.1% 40,354 40,391 21,429
Notes Payable
25. Liability For Interest, 60,940 38,188 59.6% 42,671 42.8% 50,002 64,772 38,627
Taxes and Other ----------------------- ------------ ----------------------------------
26.Total Liabilities 4,722,495 4,378,659 7.9% 4,721,067 0.0% 4,751,476 4,754,536 4,284,147
----------------------- ------------ ----------------------------------
27.Shareholders' Equity:
28. Paid-In Capital $316,382 $229,975 37.6% $316,597 -0.1% $319,103 $319,438 $224,489
29. Unrealized Gain (Loss) on
30. Investment Securities 1,882 9,638 n/m 2,762 -31.9% 8,185 3,511 8,185
Available For Sale
31. Retained Earnings 108,450 118,996 -8.9% 112,665 -3.7% 112,329 114,626 119,250
----------------------- ------------ ----------------------------------
32.Total Shareholders' Equity 426,714 358,609 19.0% 432,024 -1.2% 439,617 437,575 351,924
----------------------- ------------ ----------------------------------
33.Total Liabilities and $5,149,209 $4,737,268 8.7%$5,153,091 -0.1%$5,191,093 $5,192,111 $4,636,071
Shareholders' Equity ======================= ============ ==================================
Page 16
WESTAMERICA BANCORPORATION Public Information January 19, 2006
12.Income Statements.
(amounts in thousands, except per-share amounts)
Q4'05 / Q4'05 / 12/31'05YTD /
Q4'05 Q4'04 Q4'04 Q3'05 Q3'05 12/31'05YTD12/31'04YTD12/31'04YTD
---------------------------------------------------------------------------------------
1. Interest and Fee Income:
2. Loans $40,593 $32,889 23.4% $40,008 1.5% $155,476 $133,226 16.7%
3. Money Market Assets 1 1 n/m 1 n/m 3 1 n/m
and Funds Sold
4. Investment Securities 7,638 10,096 -24.3% 7,705 -0.9% 32,885 47,744 -31.1%
Available For Sale
5. Investment Securities 14,002 11,764 19.0% 14,090 -0.6% 54,433 35,366 53.9%
Held to Maturity ----------------------- ------------ -----------------------
6. Total Interest Income 62,234 54,750 13.7% 61,804 0.7% 242,797 216,337 12.2%
----------------------- ------------ -----------------------
7. Interest Expense:
8. Transaction Deposits 457 213 114.6% 401 14.0% 1,460 612 138.6%
9. Savings Deposits 953 874 9.0% 956 -0.3% 3,744 3,931 -4.8%
10. Time Deposits 5,176 2,562 102.0% 4,610 12.3% 17,160 8,504 101.8%
11. Short-Term Borrowed Funds 5,296 1,988 166.4% 5,421 -2.3% 18,941 5,878 222.2%
12. Federal Home Loan Bank 0 0 n/m 0 n/m 0 897 n/m
Advances
13. Debt Financing and 637 316 101.6% 640 -0.5% 2,344 1,284 82.6%
Notes Payable ----------------------- ------------ -----------------------
14.Total Interest Expense 12,519 5,953 110.3% 12,028 4.1% 43,649 21,106 106.8%
----------------------- ------------ -----------------------
15.Net Interest Income 49,715 48,797 1.9% 49,776 -0.1% 199,148 195,231 2.0%
----------------------- ------------ -----------------------
16.Provision for Credit Losses 150 600 -75.0% 150 0.0% 900 2,700 -66.7%
----------------------- ------------ -----------------------
17.Noninterest Income:
18. Service Charges on Deposit 7,202 6,928 4.0% 7,436 -3.1% 29,106 28,621 1.7%
Accounts
19. Merchant Credit Card 2,751 875 214.4% 2,631 4.6% 9,097 3,509 159.2%
20. Financial Services Commissions 380 294 29.3% 388 -2.1% 1,387 1,250 11.0%
21. Mortgage Banking 62 82 -24.4% 62 0.0% 292 386 -24.4%
22. Trust Fees 275 254 8.3% 323 -14.9% 1,181 1,027 15.0%
23. Gains on Sales of Real Property 0 0 n/m 2,369 -100.0% 3,700 0 n/m
24. Securities Gains (Losses) 0 (7,180) n/m 0 n/m (4,903) (5,011) -2.2%
25. Loss on Extinguishment of Debt 0 0 n/m 0 n/m 0 (2,204) n/m
26. Other 3,757 3,016 24.6% 4,231 -11.2% 14,680 11,005 33.4%
----------------------- ------------ -----------------------
27.Total Noninterest Income 14,427 4,269 237.9% 17,440 -17.3% 54,540 38,583 41.4%
----------------------- ------------ -----------------------
28.Noninterest Expense:
29. Salaries and Related Benefits 13,055 12,595 3.7% 13,621 -4.2% 53,460 52,507 1.8%
30. Occupancy 3,196 3,022 5.8% 3,201 -0.2% 12,579 11,935 5.4%
31. Equipment 1,321 1,259 4.9% 1,347 -1.9% 5,212 4,794 8.7%
32. Data Processing 1,524 1,494 2.0% 1,544 -1.3% 6,156 6,057 1.6%
33. Professional Fees 599 537 11.5% 497 20.5% 2,420 1,869 29.5%
34. Other 6,473 5,370 20.5% 6,581 -1.6% 25,029 21,589 15.9%
----------------------- ------------ -----------------------
35.Total Noninterest Expense 26,168 24,277 7.8% 26,791 -2.3% 104,856 98,751 6.2%
----------------------- ------------ -----------------------
36.Income Before Income Taxes 37,824 28,189 34.2% 40,275 -6.1% 147,932 132,363 11.8%
37.Provision for income taxes 10,225 7,024 45.6% 11,081 -7.7% 40,491 37,145 9.0%
----------------------- ------------ -----------------------
38.Net Income $27,599 $21,165 30.4% $29,194 -5.5% $107,441 $95,218 12.8%
======================= ============ =======================
39.Average Shares Outstanding 32,029 31,761 0.8% 32,352 -1.0% 32,291 31,821 1.5%
40.Diluted Average Shares 32,572 32,487 0.3% 32,972 -1.2% 32,897 32,461 1.3%
Outstanding
41.Per Share Data:
42. Basic Earnings $0.86 $0.67 29.3% $0.90 -4.5% $3.33 $2.99 11.2%
43. Diluted Earnings 0.85 0.65 30.1% 0.89 -4.3% 3.27 2.93 11.3%
44. Dividends Paid 0.32 0.28 14.3% 0.30 6.7% 1.22 1.10 10.9%