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 19, 2007 ------------- 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 17, 2007 Item 2.02: Results of Operations and Financial Condition ---------------------------------------------------------- On July 17, 2007 Westamerica Bancorporation announced their earnings for the second quarter of 2007. 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 July 19, 2007 Page 4 INDEX TO EXHIBITS ----------------- Sequentially Exhibit No. Description Number Page ----------- ------------------------- ------------- (99.1) Press release dated 5-16 July 17, 2007 Page 5 FOR IMMEDIATE RELEASE July 17, 2007 WESTAMERICA BANCORPORATION REPORTS $22.4 MILLION QUARTERLY EARNINGS San Rafael, CA: Westamerica Bancorporation (NASDAQ: WABC), parent company of Westamerica Bank, today reported quarterly net income for the second quarter of 2007 of $22.4 million, or $0.74 diluted earnings per share, compared to net income of $24.5 million, or $0.77 diluted earnings per share for the second quarter of 2006. For the second quarter of 2007, return on assets (ROA) was 1.92 percent and return on equity (ROE) was 21.9 percent. Net income for the six months ended June 30, 2007 was $45.9 million or $1.50 diluted earnings per share compared to $50.6 million or $1.58 diluted earnings per share for the first six months of 2006. For the first six months of 2007, ROA and ROE were 1.97 percent and 22.5 percent, respectively. "The competitive environment remains fierce for both loans and deposits, with continued pressure on net interest margins. While working to stabilize our margin, we are also focused on increasing our non-interest revenues and containing our expenses," said Chairman, President and CEO David Payne. "Our noninterest income increased 4.5 percent in the second quarter 2007 from the same period in 2006, while our expenses were reduced 6.2 percent from the year ago quarter. Our return on shareholders' equity at 21.9 percent for the second quarter 2007 remains relatively high for the banking industry," Payne added. Page 6 Net interest income on a taxable equivalent basis was $46.1 million for the second quarter of 2007, compared to $51.5 million reported for the second quarter of 2006. The reduced net interest income is attributable to a lower net interest margin and lower average earning assets. Competition for deposits has caused funding costs to rise at a faster pace than earning asset yields. Loan yields have also been impacted by competition. The second quarter 2007 net interest margin on a taxable equivalent basis was 4.36 percent, compared to 4.41 percent for the prior quarter and 4.58 percent for the second quarter of 2006. The provision for loan losses was $75 thousand for the second quarter of 2007 unchanged from the prior quarter and down from $150 thousand for the second quarter of 2006. Net charge-offs for the second quarter of 2007 totaled $1.5 million, or 0.24 percent (annualized) of average loans compared to 0.08 (annualized) and 0.04 percent (annualized) of average loans for the prior quarter and second quarter of 2006, respectively. Non-performing loans and repossessed loan collateral at June 30, 2007 totaled $5.8 million, increased from $5.5 million at March 31, 2007. Noninterest income for the second quarter of 2007 was $14.7 million, compared to $15.3 million for the previous quarter and $14.1 million for the second quarter 2006. The change in noninterest income from the prior quarter includes: * Increased deposit service charges ($188 thousand) * Increased merchant card processing fees ($319 thousand) * $822 thousand gain from company owned life insurance realized in the first quarter 2007. The change in noninterest income from the second quarter 2006 includes: * Increased deposit service charges ($530 thousand) * Increased merchant card processing fees ($376 thousand) Page 7 Noninterest expense for the second quarter of 2007 totaled $24.7 million, unchanged from the prior quarter, but down from $26.3 million for the second quarter of 2006. The decrease in expenses from the second quarter of 2006 was primarily due to lower personnel, equipment, professional, telephone, and intangible amortization costs. The second quarter 2007 efficiency ratio (expenses divided by revenues) was 40.7 percent, compared to 39.7 percent for the prior quarter and 40.2 percent for the second quarter of 2006. Shareholders' equity at June 30, 2007 was $408 million, reduced from $420 million at March 31, 2007. The Company's total regulatory capital ratio was 10.8 percent at June 30, 2007 compared to 11.0 percent at March 31, 2007; both measurements exceed the "well-capitalized" level of 10 percent under regulatory requirements. Westamerica Bancorporation, through its wholly owned subsidiary Westamerica Bank, operates 87 branches and two trust offices throughout 21 Northern and Central California counties. At June 30, 2007, the Company's total assets and total loans outstanding were $4.6 billion and $2.5 billion, respectively. 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 March 31, 2007, and Form 10-K for the year ended December 31, 2006, 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 July 17, 2007 FINANCIAL HIGHLIGHTS June 30, 2007 1. Net Income Summary. (dollars in thousands except per-share amounts) Q2'07 / Q2'07 / 6/30'07YTD / Q2'07 Q2'06 Q2'06 Q1'07 Q1'07 6/30'07YTD 6/30'06YTD 6/30'06YTD ------------------------------------------------------------------------------------------------ 1 Net Interest Income $46,059 $51,503 -10.6% $46,914 -1.8% $92,973 $105,477 -11.9% (Fully Taxable Equivalent) 2 Provision for Credit Losses 75 150 -50.0% 75 0.0% 150 300 -50.0% 3 Noninterest Income: 4 Life Insurance Gains 0 0 n/m 822 n/m 822 0 n/m 5 Other 14,700 14,061 4.5% 14,455 1.7% 29,156 27,701 5.3% ------------------------ ------------ ------------------------ 6 Total Noninterest Income 14,700 14,061 4.5% 15,277 -3.8% 29,978 27,701 8.2% 7 Noninterest Expense 24,706 26,345 -6.2% 24,664 0.2% 49,370 51,829 -4.7% ------------------------ ------------ ------------------------ 8 Income Before Taxes (FTE) 35,978 39,069 37,452 73,431 81,049 9 Income Tax Provision (FTE) 13,627 14,575 -6.5% 13,882 -1.8% 27,510 30,438 -9.6% ------------------------ ------------ ------------------------ 10 Net Income $22,351 $24,494 -8.8% $23,570 -5.2% $45,921 $50,611 -9.3% ======================== ============ ======================== 11 Average Shares Outstanding 29,938 31,364 -4.5% 30,342 -1.3% 30,139 31,525 -4.4% 12 Diluted Average Shares 30,365 31,932 -4.9% 30,824 -1.5% 30,593 32,103 -4.7% Outstanding 13 Operating Ratios: 14 Basic Earnings Per Share $0.75 $0.78 -4.4% $0.78 -3.9% $1.52 $1.61 -5.1% 15 Diluted Earnings Per Share 0.74 0.77 -4.0% 0.76 -3.7% 1.50 1.58 -4.8% 16 Return On Assets 1.92% 1.99% 2.03% 1.97% 2.04% 17 Return On Equity 21.9% 23.1% 23.0% 22.5% 24.0% 18 Net Interest Margin (FTE) 4.36% 4.58% 4.41% 4.38% 4.65% 19 Efficiency Ratio (FTE) 40.7% 40.2% 39.7% 40.2% 38.9% 20 Dividends Paid Per Share $0.34 $0.32 6.3% $0.34 0.0% $0.68 $0.64 6.3% 21 Dividend Payout Ratio 46% 42% 44% 45% 41% 2. Net Interest Income. (dollars in thousands) Q2'07 / Q2'07 / 6/30'07YTD / Q2'07 Q2'06 Q2'06 Q1'07 Q1'07 6/30'07YTD 6/30'06YTD 6/30'06YTD ------------------------------------------------------------------------------------------------ 1 Interest and Fee Income (FTE) $64,875 $67,788 -4.3% $65,025 -0.2% $129,900 $136,273 -4.7% 2 Interest Expense 18,816 16,285 15.5% 18,111 3.9% 36,927 30,796 19.9% ------------------------ ------------ ------------------------ 3 Net Interest Income (FTE) $46,059 $51,503 -10.6% $46,914 -1.8% $92,973 $105,477 -11.9% ======================== ============ ======================== 4 Average Earning Assets $4,245,342 $4,515,728 -6.0% $4,287,431 -1.0% $4,266,357 $4,560,953 -6.5% 5 Average Interest-Bearing 2,926,090 3,139,054 -6.8% 2,961,252 -1.2% 2,943,515 3,172,210 -7.2% Liabilities 6 Yield on Earning Assets (FTE) 6.12% 6.01% 6.11% 6.12% 6.00% 7 Cost of Funds 1.77% 1.44% 1.70% 1.73% 1.35% 8 Net Interest Margin (FTE) 4.36% 4.58% 4.41% 4.38% 4.65% 9 Interest Expense/Interest- 2.56% 2.07% 2.46% 2.51% 1.94% -Bearing Liabilities 10 Net Interest Spread (FTE) 3.56% 3.94% 3.65% 3.61% 4.06% Page 10 WESTAMERICA BANCORPORATION Public Information July 17, 2007 FINANCIAL HIGHLIGHTS June 30, 2007 3. Loans & Other Earning Assets. (average volume, dollars in thousands) Q2'07 / Q2'07 / 6/30'07YTD / Q2'07 Q2'06 Q2'06 Q1'07 Q1'07 6/30'07YTD 6/30'06YTD 6/30'06YTD ------------------------------------------------------------------------------------------------ 1 Total Assets $4,668,627 $4,948,443 -5.7% $4,713,173 -0.9% $4,691,007 $5,001,349 -6.2% 2 Total Earning Assets 4,245,342 4,515,728 -6.0% 4,287,431 -1.0% 4,266,357 4,560,953 -6.5% 3 Total Loans 2,516,114 2,588,220 -2.8% 2,519,861 -0.1% 2,518,085 2,602,085 -3.2% 4 Commercial Loans 626,270 679,511 -7.8% 616,277 1.6% 621,400 685,142 -9.3% 5 Commercial Real Estate Loans 883,942 914,373 -3.3% 900,625 -1.9% 892,261 918,606 -2.9% 6 Consumer Loans 1,005,902 994,336 1.2% 1,002,959 0.3% 1,004,424 998,337 0.6% 7 Total Investment Securities 1,729,228 1,927,508 -10.3% 1,767,570 -2.2% 1,748,272 1,958,868 -10.8% 8 Available For Sale 602,668 650,649 -7.4% 612,852 -1.7% 607,732 658,256 -7.7% (Market Value) 9 Held To Maturity 1,126,560 1,276,859 -11.8% 1,154,718 -2.4% 1,140,540 1,300,612 -12.3% 10 HTM Unrealized (Loss) (18,668) (33,374) n/m (5,955) n/m (18,668) (33,374) n/m at Period-End 11 Loans / Deposits 74.5% 70.9% 73.5% 74.0% 70.0% 4. Deposits & Other Interest-Bearing Liabilities. (average volume, dollars in thousands) Q2'07 / Q2'07 / 6/30'07YTD / Q2'07 Q2'06 Q2'06 Q1'07 Q1'07 6/30'07YTD 6/30'06YTD 6/30'06YTD ------------------------------------------------------------------------------------------------ 1 Total Deposits $3,377,413 $3,652,030 -7.5% $3,427,010 -1.4% $3,402,548 $3,718,233 -8.5% 2 Noninterest Demand 1,267,032 1,316,927 -3.8% 1,270,522 -0.3% 1,269,036 1,336,214 -5.0% 3 Interest-Bearing Transaction 577,554 624,045 -7.4% 586,860 -1.6% 582,263 637,796 -8.7% 4 Savings 824,300 964,776 -14.6% 866,192 -4.8% 845,214 993,432 -14.9% 5 Time > $100K 496,338 503,488 -1.4% 484,887 2.4% 490,680 502,393 -2.3% 6 Time < $100K 212,189 242,793 -12.6% 218,549 -2.9% 215,355 248,398 -13.3% 7 Total Short-Term Borrowings 778,841 766,936 1.6% 767,858 1.4% 773,116 752,622 2.7% 8 Fed Funds Purchased 625,060 548,770 13.9% 596,965 4.7% 610,749 548,632 11.3% 9 Other Short-Term Funds 153,781 218,166 -29.5% 170,893 -10.0% 162,367 203,990 -20.4% 10 Long-Term Debt 36,868 37,015 -0.4% 36,905 -0.1% 36,887 37,570 -1.8% 11 Shareholders' Equity 408,564 424,999 -3.9% 414,957 -1.5% 411,791 424,916 -3.1% 12 Demand Deposits / 37.5% 36.1% 37.1% 37.3% 35.9% Total Deposits 13 Transaction & Savings 79.0% 79.6% 79.5% 79.2% 79.8% Deposits / Total Deposits Page 11 WESTAMERICA BANCORPORATION Public Information July 17, 2007 FINANCIAL HIGHLIGHTS June 30, 2007 5. Interest Yields Earned & Rates Paid. (dollars in thousands) Q2'07 Q2'06 ------------------------------------ Q1'07 ------------------------------------ Average Income/ Yield/ Yield/ Average Income/ Yield/ Volume Expense Rate Rate Volume Expense Rate ------------------------------------------------------------------------------------ 1 Interest & Fees Income Earned 2 Total Earning Assets (FTE) $4,245,342 $64,875 6.12% 6.11% $4,515,728 $67,788 6.01% 3 Total Loans (FTE) 2,516,114 41,938 6.69% 6.66% 2,588,220 42,490 6.58% 4 Commercial Loans (FTE) 626,270 12,496 7.73% 7.67% 679,511 13,038 7.57% 5 Commercial Real Estate 883,942 15,804 7.17% 7.18% 914,373 16,590 7.28% Loans 6 Consumer Loans 1,005,902 13,638 5.50% 5.41% 994,336 12,862 5.25% 7 Total Investment 1,729,228 22,937 5.31% 5.35% 1,927,508 25,298 5.25% Securities (FTE) 8 Interest Expense Paid 9 Total Earning Assets 4,245,342 18,816 1.77% 1.70% 4,515,728 16,285 1.44% 10 Total Interest-Bearing 2,926,090 18,816 2.56% 2.46% 3,139,054 16,285 2.07% Liabilities 11 Total Interest-Bearing 2,110,381 9,520 1.81% 1.74% 2,335,103 8,012 1.38% Deposits 12 Interest-Bearing 577,554 528 0.37% 0.36% 624,045 427 0.27% Transaction 13 Savings 824,300 1,452 0.71% 0.66% 964,776 924 0.38% 14 Time < $100K 212,189 1,751 3.31% 3.22% 242,793 1,580 2.61% 15 Time > $100K 496,338 5,789 4.68% 4.66% 503,488 5,081 4.05% 16 Total Short-Term Borrowings 778,841 8,718 4.43% 4.32% 766,936 7,695 3.97% 17 Fed Funds Purchased 625,060 8,294 5.25% 5.24% 548,770 6,833 4.93% 18 Other Short-Term Funds 153,781 424 1.10% 1.12% 218,166 861 1.58% 19 Long-Term Debt 36,868 578 6.27% 6.27% 37,015 578 6.25% 20 Net Interest Income and Margin (FTE) $46,059 4.36% 4.41% $51,503 4.58% 6. Noninterest Income. (dollars in thousands except per share amounts) Q2'07 / Q2'07 / 6/30'07YTD / Q2'07 Q2'06 Q2'06 Q1'07 Q1'07 6/30'07YTD 6/30'06YTD 6/30'06YTD ------------------------------------------------------------------------------------------------ 1 Service Charges on $7,716 $7,186 7.4% $7,528 2.5% $15,244 $14,269 6.8% Deposit Accounts 2 Merchant Credit Card Income 2,768 2,392 15.7% 2,449 13.0% 5,217 4,778 9.2% 3 ATM Fees & Interchange 714 717 -0.4% 677 5.5% 1,391 1,395 -0.3% 4 Debit Card Fees 960 876 9.6% 895 7.2% 1,856 1,704 8.9% 5 Financial Services Fees 363 363 -0.0% 310 16.9% 673 661 1.9% 6 Mortgage Banking Income 33 49 -33.9% 30 9.6% 62 99 -36.9% 7 Trust Fees 304 287 6.0% 337 -9.6% 641 569 12.6% 8 Other Income 1,842 2,191 -15.9% 2,229 -17.4% 4,072 4,226 -3.6% ------------------------ ------------ ------------------------ 9 Sub-total 14,700 14,061 14,455 29,156 27,701 10 Life Insurance Gains 0 0 n/m 822 n/m 822 0 n/m ------------------------ ------------ ------------------------ 11 Total Noninterest Income $14,700 $14,061 4.5% $15,277 -3.8% $29,978 $27,701 8.2% ======================== ============ ======================== 12 Operating Ratios: 13 Total Revenue (FTE) $60,759 $65,564 -7.3% $62,191 -2.3% $122,951 $133,178 -7.7% 14 Noninterest Income / 24.2% 21.4% 24.6% 24.4% 20.8% Revenue (FTE) 15 Service Charges / 0.92% 0.79% 0.89% 0.90% 0.77% Deposits (annualized) 16 Total Revenue Per Share $8.14 $8.38 -2.9% $8.31 -2.1% $8.23 $8.52 -3.4% (annualized) Page 12 WESTAMERICA BANCORPORATION Public Information July 17, 2007 FINANCIAL HIGHLIGHTS June 30, 2007 7. Noninterest Expense. (dollars in thousands) Q2'07 / Q2'07 / 6/30'07YTD / Q2'07 Q2'06 Q2'06 Q1'07 Q1'07 6/30'07YTD 6/30'06YTD 6/30'06YTD ------------------------------------------------------------------------------------------------ 1 Salaries & Benefits $12,622 $13,559 -6.9% $12,568 0.4% $25,189 $26,816 -6.1% 2 Occupancy 3,342 3,267 2.3% 3,291 1.5% 6,633 6,499 2.1% 3 Equipment 1,147 1,315 -12.8% 1,138 0.8% 2,284 2,581 -11.5% 4 Data Processing 1,543 1,531 0.8% 1,524 1.3% 3,066 3,065 0.0% 5 Courier 857 909 -5.7% 848 1.1% 1,705 1,831 -6.9% 6 Postage 396 397 -0.2% 410 -3.4% 806 807 -0.1% 7 Telephone 354 466 -24.1% 360 -1.8% 714 898 -20.5% 8 Professional Fees 409 833 -50.9% 495 -17.5% 904 1,291 -29.9% 9 Stationery & Supplies 269 272 -1.3% 315 -14.6% 583 542 7.7% 10 Loan Expense 171 236 -27.5% 167 2.1% 338 430 -21.4% 11 Operational Losses 171 255 -32.9% 160 6.9% 331 443 -25.4% 12 Amortization of Identifiable 893 1,016 -12.1% 975 -8.4% 1,868 2,056 -9.1% Intangibles 13 Other Operating 2,532 2,289 10.6% 2,413 4.9% 4,949 4,570 8.3% ------------------------ ------------ ------------------------ 14 Total Noninterest Expense $24,706 $26,345 -6.2% $24,664 0.2% $49,370 $51,829 -4.7% ======================== ============ ======================== 15 Full Time Equivalent Staff 910 904 0.7% 892 2.0% 901 922 -2.3% 16 Average Assets / Full Time $5,130 $5,474 -6.3% $5,284 -2.9% $5,206 $5,424 -4.0% Equivalent Staff 17 Operating Ratios: 18 FTE Revenue / Full Time $268 $291 -7.9% $283 -5.3% $275 $291 -5.5% Equiv. Staff (annualized) 19 Noninterest Expense / 2.33% 2.34% 2.33% 2.33% 2.29% Earning Assets (annualized) 20 Noninterest Expense / 40.7% 40.2% 39.7% 40.2% 38.9% Revenues Page 13 8. Provision for Credit Losses. (dollars in thousands) Q2'07 / Q2'07 / 6/30'07YTD / Q2'07 Q2'06 Q2'06 Q1'07 Q1'07 6/30'07YTD 6/30'06YTD 6/30'06YTD ------------------------------------------------------------------------------------------------ 1 Provision for Credit Losses $75 $150 -50.0% $75 0.0% $150 $300 -50.0% 2 Gross Loan Losses 2,244 645 248.0% 1,244 80.4% 3,488 1,764 97.8% 3 Net Loan Losses 1,491 234 537.9% 516 188.9% 2,007 465 332.2% 4 Recoveries / Gross Loan Losses 34% 64% 59% 42% 74% 5 Average Total Loans $2,516,114 $2,588,220 -2.8% $2,519,861 -0.1% $2,518,085 $2,602,085 -3.2% 6 Net Loan Losses / Loans 0.24% 0.04% 0.08% 0.16% 0.04% (annualized) 7 Provision for Credit Losses / 0.01% 0.02% 0.01% 0.01% 0.02% Loans (annualized) 8 Provision for Credit Losses / 5.0% 64.2% 14.5% 7.5% 64.6% Net Loan Losses 9. Credit Quality. (dollars in thousands) 6/30/07 / 6/30/07 / 06/30/07 06/30/06 06/30/06 3/31/07 3/31/07 12/31/06 9/30/06 3/31/06 ------------------------------------------------------------------------------------------------ 1 Nonperforming Nonaccrual Loans $3,140 $1,613 94.7% $2,341 34.1% $61 $1,162 $2,993 2 Performing Nonaccrual Loans 1,898 3,899 -51.3% 2,459 -22.8% 4,404 3,889 3,232 ------------------------ ------------ ------------------------------------ 3 Total Nonaccrual Loans 5,038 5,512 -8.6% 4,800 5.0% 4,465 5,051 6,225 4 Accruing Loans 90+ Days 179 114 n/m 82 n/m 65 252 29 Past Due ------------------------ ------------ ------------------------------------ 5 Total Nonperforming Loans 5,217 5,626 -7.3% 4,882 6.9% 4,530 5,303 6,254 6 Repossessed Collateral 613 656 n/m 647 n/m 647 656 0 7 Total Nonperforming Loans & ------------------------ ------------ ------------------------------------ 8 Repossessed Collateral $5,830 $6,282 -7.2% $5,529 5.4% $5,177 $5,959 $6,254 ======================== ============ ==================================== 9 Classified Loans $22,497 $25,682 -12.4% $18,439 22.0% $20,180 $24,111 $28,878 ======================== ============ ==================================== 10 Allowance for Loan Losses $53,473 $55,684 -4.0% $54,889 -2.6% $55,330 $55,338 $55,768 11 Total Loans Outstanding 2,521,738 2,580,612 -2.3% 2,519,898 0.1% 2,531,734 2,552,929 2,639,968 12 Total Assets 4,647,069 4,905,642 -5.3% 4,748,829 -2.1% 4,769,335 4,844,116 5,054,309 13 Allowance for Loan Losses / 2.12% 2.16% 2.18% 2.19% 2.17% 2.11% Total Loans 14 Nonperforming Loans / 0.21% 0.22% 0.19% 0.18% 0.21% 0.24% Total Loans 15 Nonperforming Loans & Repossessed 16 Collateral/Total Assets 0.13% 0.13% 0.12% 0.11% 0.12% 0.12% 17 Allowance/Nonperforming Loans 1025% 990% 1124% 1221% 1044% 892% 18 Allowance for Loan Losses / 238% 217% 298% 274% 230% 193% Classified Loans 19 Classified Loans / 20 (Equity + Allowance for 4.9% 5.4% 3.9% 4.2% 5.0% 5.9% Loan Losses) Page 14 WESTAMERICA BANCORPORATION Public Information July 17, 2007 FINANCIAL HIGHLIGHTS June 30, 2007 10.Capital. (dollars in thousands, except per-share amounts) 6/30/07 / 6/30/07 / 06/30/07 06/30/06 06/30/06 3/31/07 3/31/07 12/31/06 9/30/06 3/31/06 ------------------------------------------------------------------------------------------------ 1 Shareholders' Equity $407,982 $423,487 -3.7% $419,810 -2.8% $424,235 $428,732 $431,128 2 Tier I Regulatory Capital 286,818 300,661 -4.6% 293,382 -2.2% 298,576 300,344 303,344 3 Total Regulatory Capital 326,582 341,788 -4.4% 333,658 -2.1% 339,114 341,207 345,786 4 Total Assets 4,647,069 4,905,642 -5.3% 4,748,829 -2.1% 4,769,335 4,844,116 5,054,309 5 Risk-Adjusted Assets 3,014,947 3,127,641 -3.6% 3,043,445 -0.9% 3,057,054 3,094,942 3,222,355 6 Shareholders' Equity / 8.78% 8.63% 8.84% 8.90% 8.85% 8.53% Total Assets 7 Shareholders' Equity / 16.18% 16.41% 16.66% 16.76% 16.79% 16.33% Total Loans 8 Tier I Capital /Total Assets 6.17% 6.13% 6.18% 6.26% 6.20% 6.00% 9 Tier I Capital / 9.51% 9.61% 9.64% 9.77% 9.70% 9.41% Risk-Adjusted Assets 10 Total Capital / 10.83% 10.93% 10.96% 11.09% 11.02% 10.73% Risk-Adjusted Assets 11 Shares Outstanding 29,732 31,201 -4.7% 30,158 -1.4% 30,547 30,910 31,544 12 Book Value Per Share $13.72 $13.57 1.1% $13.92 -1.4% $13.89 $13.87 $13.67 13 Market Value Per Share 44.24 48.97 -9.7% 48.17 -8.2% 50.63 50.51 51.92 14 Share Repurchase Programs (shares in thousands) Q2'07 / Q2'07 / Q2'07 Q2'06 Q2'06 Q1'07 Q1'07 6/30'07YTD 6/30'06YTD 6/30'06YTD ------------------------------------------------------------------------------------------------ 15 Total Shares Repurchased / 456 491 -7.1% 447 2.0% 904 920 -1.8% Canceled 16 Average Repurchase Price $46.77 $50.47 -7.3% $49.49 -5.5% $48.12 $51.94 -7.4% 17 Net Shares Repurchased 426 343 24.4% 389 9.6% 815 681 19.7% Page 15 WESTAMERICA BANCORPORATION Public Information July 17, 2007 FINANCIAL HIGHLIGHTS June 30, 2007 11.Period-End Balance Sheets. (dollars in thousands) 6/30/07 / 6/30/07 / 06/30/07 06/30/06 06/30/06 3/31/07 3/31/07 12/31/06 9/30/06 3/31/06 ------------------------------------------------------------------------------------------------ 1 Assets: 2 Cash and Money Market Assets $164,390 $189,204 -13.1% $208,734 -21.2% $185,009 $192,175 $188,481 3 Investment Securities 582,959 620,294 -6.0% 602,220 -3.2% 615,525 617,736 642,996 Available For Sale 4 Investment Securities 1,104,132 1,243,936 -11.2% 1,142,382 -3.3% 1,165,092 1,211,589 1,307,848 Held to Maturity 5 Loans, gross 2,521,738 2,580,612 -2.3% 2,519,898 0.1% 2,531,734 2,552,929 2,639,968 6 Allowance For Loan Losses (53,473) (55,684) -4.0% (54,889) -2.6% (55,330) (55,338) (55,768) ------------------------ ------------ ------------------------------------ 7 Loans, net 2,468,265 2,524,928 -2.2% 2,465,009 0.1% 2,476,404 2,497,591 2,584,200 ------------------------ ------------ ------------------------------------ 8 Premises and Equipment 29,169 31,785 -8.2% 29,643 -1.6% 30,188 30,979 32,535 9 Identifiable Intangible 20,215 24,114 -16.2% 21,108 -4.2% 22,082 23,098 25,130 Assets 10 Goodwill 121,719 121,719 0.0% 121,719 0.0% 121,719 121,719 121,719 11 Interest Receivable and 156,220 149,662 4.4% 158,014 -1.1% 153,316 149,229 151,400 Other Assets ------------------------ ------------ ------------------------------------ 12 Total Assets $4,647,069 $4,905,642 -5.3% $4,748,829 -2.1% $4,769,335 $4,844,116 $5,054,309 ======================== ============ ==================================== 13 Liabilities and Shareholders' Equity: 14 Deposits: 15 Noninterest Bearing $1,266,941 $1,330,280 -4.8% $1,293,920 -2.1% $1,341,019 $1,298,519 $1,355,426 16 Interest-Bearing 554,036 606,633 -8.7% 584,026 -5.1% 588,668 581,705 641,264 Transaction 17 Savings 809,791 951,819 -14.9% 851,800 -4.9% 865,268 926,262 1,004,964 18 Time 704,264 758,315 -7.1% 714,626 -1.5% 721,779 744,645 737,532 ------------------------ ------------ ------------------------------------ 19 Total Deposits 3,335,032 3,647,047 -8.6% 3,444,372 -3.2% 3,516,734 3,551,131 3,739,186 ------------------------ ------------ ------------------------------------ 20 Short-Term Borrowed Funds 809,261 746,517 8.4% 776,781 4.2% 731,977 768,841 784,639 21 Debt Financing and 36,846 36,993 -0.4% 36,883 -0.1% 36,920 36,956 37,030 Notes Payable 22 Liability For Interest, Taxes and Other 57,948 51,598 12.3% 70,983 -18.4% 59,469 58,456 62,326 ------------------------ ------------ ------------------------------------ 23 Total Liabilities 4,239,087 4,482,155 -5.4% 4,329,019 -2.1% 4,345,100 4,415,384 4,623,181 ------------------------ ------------ ------------------------------------ 24 Shareholders' Equity: 25 Paid-In Capital $338,290 $346,224 -2.3% $341,724 -1.0% $344,263 $346,603 $344,941 26 Accumulated Other 27 Comprehensive (Loss) Income (777) (4,771) n/m 3,593 n/m 1,850 1,805 (830) 28 Retained Earnings 70,469 82,034 -14.1% 74,493 -5.4% 78,122 80,324 87,017 ------------------------ ------------ ------------------------------------ 29 Total Shareholders' Equity 407,982 423,487 -3.7% 419,810 -2.8% 424,235 428,732 431,128 ------------------------ ------------ ------------------------------------ 30 Total Liabilities and $4,647,069 $4,905,642 -5.3% $4,748,829 -2.1% $4,769,335 $4,844,116 $5,054,309 Shareholders' Equity ======================== ============ ==================================== Page 16 WESTAMERICA BANCORPORATION Public Information July 17, 2007 FINANCIAL HIGHLIGHTS June 30, 2007 12.Income Statements. (dollars in thousands, except per-share amounts) Q2'07 / Q2'07 / Q2'07 Q2'06 Q2'06 Q1'07 Q1'07 6/30'07YTD 6/30'06YTD 6/30'06YTD ------------------------------------------------------------------------------------------------ 1 Interest and Fee Income: 2 Loans $40,727 $41,160 -1.1% $40,167 1.4% $80,894 $82,266 -1.7% 3 Money Market Assets and 2 2 n/m 2 n/m 3 2 n/m Funds Sold 4 Investment Securities 6,841 7,377 -7.3% 7,122 -3.9% 13,963 14,952 -6.6% Available For Sale 5 Investment Securities 11,771 13,338 -11.8% 12,083 -2.6% 23,854 27,124 -12.1% Held to Maturity ------------------------ ------------ ------------------------ 6 Total Interest Income 59,341 61,877 -4.1% 59,374 -0.1% 118,714 124,344 -4.5% ------------------------ ------------ ------------------------ 7 Interest Expense: 8 Transaction Deposits 528 427 23.6% 523 0.9% 1,051 855 23.0% 9 Savings Deposits 1,452 924 57.1% 1,409 3.1% 2,861 1,822 57.0% 10 Time Deposits 7,540 6,661 13.2% 7,305 3.2% 14,845 12,577 18.0% 11 Short-Term Borrowed Funds 8,718 7,695 13.3% 8,296 5.1% 17,014 14,366 18.4% 12 Debt Financing and 578 578 0.0% 578 0.0% 1,156 1,176 -1.7% Notes Payable ------------------------ ------------ ------------------------ 13 Total Interest Expense 18,816 16,285 15.5% 18,111 3.9% 36,927 30,796 19.9% ------------------------ ------------ ------------------------ 14 Net Interest Income 40,525 45,592 -11.1% 41,263 -1.8% 81,787 93,548 -12.6% ------------------------ ------------ ------------------------ 15 Provision for Credit Losses 75 150 -50.0% 75 0.0% 150 300 -50.0% ------------------------ ------------ ------------------------ 16 Noninterest Income: 17 Service Charges on 7,716 7,186 7.4% 7,528 2.5% 15,244 14,269 6.8% Deposit Accounts 18 Merchant Credit Card 2,768 2,392 15.7% 2,449 13.0% 5,217 4,778 9.2% 19 Financial Services 363 363 -0.0% 310 16.9% 673 661 1.9% Commissions 20 Mortgage Banking 33 49 -33.9% 30 9.6% 62 99 -36.9% 21 Trust Fees 304 287 6.0% 337 -9.6% 641 569 12.6% 22 Life Insurance Gains 0 0 n/m 822 n/m 822 0 n/m 23 Other 3,516 3,784 -7.1% 3,801 -7.5% 7,319 7,325 -0.1% ------------------------ ------------ ------------------------ 24 Total Noninterest Income 14,700 14,061 4.5% 15,277 -3.8% 29,978 27,701 8.2% ------------------------ ------------ ------------------------ 25 Noninterest Expense: 26 Salaries and Related 12,622 13,559 -6.9% 12,568 0.4% 25,189 26,816 -6.1% Benefits 27 Occupancy 3,342 3,267 2.3% 3,291 1.5% 6,633 6,499 2.1% 28 Equipment 1,147 1,315 -12.8% 1,138 0.8% 2,284 2,581 -11.5% 29 Data Processing 1,543 1,531 0.8% 1,524 1.3% 3,066 3,065 0.0% 30 Professional Fees 409 833 -50.9% 495 -17.5% 904 1,291 -29.9% 31 Other 5,643 5,840 -3.4% 5,648 -0.1% 11,294 11,577 -2.4% ------------------------ ------------ ------------------------ 32 Total Noninterest Expense 24,706 26,345 -6.2% 24,664 0.2% 49,370 51,829 -4.7% ------------------------ ------------ ------------------------ 33 Income Before Income Taxes 30,444 33,158 -8.2% 31,801 -4.3% 62,245 69,120 -9.9% 34 Provision for income taxes 8,093 8,664 -6.6% 8,231 -1.7% 16,324 18,509 -11.8% ------------------------ ------------ ------------------------ 35 Net Income $22,351 $24,494 -8.8% $23,570 -5.2% $45,921 $50,611 -9.3% ======================== ============ ======================== 36 Average Shares Outstanding 29,938 31,364 -4.5% 30,342 -1.3% 30,139 31,525 -4.4% 37 Diluted Average Shares 30,365 31,932 -4.9% 30,824 -1.5% 30,593 32,103 -4.7% Outstanding 38 Per Share Data: 39 Basic Earnings $0.75 $0.78 -4.4% $0.78 -3.9% $1.52 $1.61 -5.1% 40 Diluted Earnings 0.74 0.77 -4.0% 0.76 -3.7% 1.50 1.58 -4.8% 41 Dividends Paid 0.34 0.32 6.3% 0.34 0.0% 0.68 0.64 6.3%