Page 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): April 16, 2008 -------------- 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 April 15, 2008 Item 2.02: Results of Operations and Financial Condition ---------------------------------------------------------- On April 15, 2008 Westamerica Bancorporation announced their earnings for the first quarter of 2008. 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 April 16, 2008 Page 4 INDEX TO EXHIBITS ----------------- Sequentially Exhibit No. Description Number Page ----------- ------------------------- ------------- (99.1) Press release dated 5-13 April 15, 2008 Page 5 FOR IMMEDIATE RELEASE April 15, 2008 WESTAMERICA REPORTS FIRST QUARTER RESULTS San Rafael, CA: Westamerica Bancorporation (NASDAQ: WABC), parent company of Westamerica Bank, today reported quarterly net income for the first quarter of 2008 of $26.8 million and diluted earnings per share ("EPS") of $0.92 compared to net income of $21.8 million and EPS of $0.74 for the previous quarter, and net income of $23.6 million and EPS of $0.76 for the first quarter of 2007. As described below, first quarter 2008 results include benefits from Visa's initial public offering which increased net income by $4.7 million and EPS by $0.16. Fourth quarter 2007 results include litigation expense of $2.3 million related to Westamerica's proportionate share of Visa's litigation exposure and a $700 thousand income tax refund which combined to reduce net income by $590 thousand, or EPS by $0.02. First quarter 2007 results include a gain on company-owned life insurance which contributed $0.02 to EPS. "During the first quarter 2008, our net interest margin increased to 4.79 percent from 4.53 percent in the fourth quarter 2007. This improvement came primarily from a reduction in our cost of funds as short-term interest rates declined," said Chairman, President and CEO David Payne. "Our expenses remain well controlled, and our credit quality remains sound. Our non-performing loans represented only 0.23 percent of total loans at quarter-end while our loan loss reserves equal 2.13 percent of total loans. We are pleased to have delivered a return on our shareholders' equity, excluding the Visa IPO benefits, of 22.6 percent this quarter," added Payne. Page 6 Net interest income on a fully taxable equivalent (FTE) basis was $48.0 million for the first quarter of 2008, compared to $46.8 million for the previous quarter and to $46.9 million for the first quarter of 2007. The first quarter 2008 net interest margin on a fully taxable equivalent basis was 4.79 percent, compared to 4.53 percent for the previous quarter and 4.41 percent for the first quarter of 2007. The provision for loan losses was $600 thousand for the first quarter of 2008, compared to $475 thousand for the previous quarter, and $75 thousand for the first quarter of 2007. Net loan losses totaled $872 thousand or 0.14 percent of average loans (annualized) for the first quarter of 2008, compared to $907 thousand and 0.14 percent, respectively, for the fourth quarter of 2007. Management follows diligent and thorough loan administration and risk management practices. The Company assigns risk grades to loans following the same framework used by its regulators. Loans receiving higher risk grades and heightened credit management attention are "classified" loans. The Company's "classified" loans increased to $33.3 million at March 31, 2008 from $24.4 million at December 31, 2007. The increase in classified loans is primarily attributable to one construction loan relationship with $11.1 million outstanding at March 31, 2008. The loan collateral is comprised of developed land and residential real estate properties located north of Sacramento, California. Management is aggressively pursuing collection of this loan relationship. Some "classified" loans are placed on non-accrual status when the full collection of principal or interest is in doubt. Included in the "classified" loans are non-accrual loans totaling $5.4 million at March 31, 2008, compared to $4.9 million at December 31, 2007. Management regularly assesses the level of the Company's allowance for loan losses giving consideration to current and developing economic conditions, levels of classified and non-accrual loans, and other relevant external and internal considerations. The Company's allowance for loan losses totaled $52.2 million at March 31, 2008. Management considers this allowance for loan losses to be an adequate reserve against estimated loan losses. Page 7 Noninterest income for the first quarter of 2008 totaled $19.4 million compared to $15.3 million for the first quarter 2007. The increase is primarily attributable to $5.7 million in securities gains from the redemption of Visa Class B common stock as part of the initial public offering in the first quarter 2008, offset by $822 thousand in gains from company-owned life insurance recognized in the first quarter 2007. Noninterest expense for the first quarter of 2008 totaled $23.1 million, $1.6 million lower than noninterest expense for the first quarter of 2007. The decrease is primarily due to the first quarter 2008 reversal of a $2.3 million accrual for Visa related litigation, which was reversed with the funding of a litigation escrow as a part of the Visa IPO. All other noninterest expenses increased $700 thousand in the first quarter of 2008 compared to the first quarter of 2007. Personnel costs rose due to higher employee benefit costs and annual merit increases. Data processing costs were higher due to conversion of the Company's item processing function to an outside vendor in the third quarter 2007. These higher costs were offset in part by lower amortization of intangible assets. The first quarter 2008 efficiency ratio (expenses/FTE revenues) was 34.2 percent compared to 39.7 percent in the first quarter 2007. Excluding the Visa- related benefits recorded in noninterest income and noninterest expense, the efficiency ratio was 41.2 percent for the first quarter 2008. Excluding the company-owned life insurance gain, the efficiency ratio was 40.2 percent for the first quarter 2007. At March 31, 2008, shareholders' equity was $399 million and the equity-to-asset ratio was 9.2 percent. During the first quarter 2008, repurchases of the Company's common stock totaled approximately 246 thousand shares, net of shares issued, and dividends paid to shareholders totaled $9.8 million. At March 31, 2008, the Company's assets totaled $4.3 billion and loans outstanding totaled $2.4 billion. Page 8 Westamerica Bancorporation, through its wholly owned subsidiary Westamerica Bank, operates 86 branches and two trust offices 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 FORWARD-LOOKING INFORMATION: The following appears in accordance with the Private Securities Litigation Reform Act of 1995: This press release may contain forward-looking statements about the Company, including descriptions of plans or objectives of its management for future operations, products or services, and forecasts of its revenues, earnings or other measures of economic performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors - many of which are beyond the Company's control - could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. The Company's most recent annual and quarterly reports filed with the Securities and Exchange Commission, including the Company's Form 10-K for the year ended December 31, 2007, 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 April 15, 2008 FINANCIAL HIGHLIGHTS March 31, 2008 1. Net Income Summary. (dollars in thousands except per-share amounts) Q1'08 / Q1'08 / 3/31'08YTD / Q1'08 Q1'07 Q1'07 Q4'07 Q4'07 3/31'08YTD 3/31'07YTD 3/31'07YTD --------------------------------------------------------------------------------------- 1 Net Interest Income $47,982 $46,914 2.3% $46,812 2.5% $47,982 $46,914 2.3% (Fully Taxable Equivalent) 2 Provision for Credit Losses 600 75 700.0% 475 26.3% 600 75 700.0% 3 Noninterest Income: 4 Life Insurance Gains 0 822 n/m 0 n/m 0 822 n/m 5 Gain on Sale of Visa 5,698 0 n/m 0 n/m 5,698 0 n/m Common Stock 6 Other 13,680 14,455 -5.4% 14,657 -6.7% 13,680 14,455 -5.4% ----------------------- ------------ ----------------------- 7 Total Noninterest Income 19,378 15,277 26.8% 14,657 32.2% 19,378 15,277 26.8% 8 Noninterest Expense: 9 VISA Litigation (2,338) 0 n/m 2,338 n/m (2,338) 0 n/m 10 Other 25,394 24,664 3.0% 24,868 2.1% 25,394 24,664 3.0% ----------------------- ------------ ----------------------- 11 Total Noninterest Expense 23,056 24,664 -6.5% 27,206 -15.3% 23,056 24,664 -6.5% ----------------------- ------------ ----------------------- 12 Income Before Taxes (FTE) 43,704 37,452 33,788 43,704 37,452 13 Income Tax Provision (FTE) 16,926 13,882 21.9% 11,956 41.6% 16,926 13,882 21.9% ----------------------- ------------ ----------------------- 14 Net Income $26,778 $23,570 13.6% $21,832 22.7% $26,778 $23,570 13.6% ======================= ============ ======================= 15 Average Shares Outstanding 28,861 30,342 -4.9% 29,213 -1.2% 28,861 30,342 -4.9% 16 Diluted Average Shares 29,210 30,824 -5.2% 29,575 -1.2% 29,210 30,824 -5.2% Outstanding 17 Operating Ratios: 18 Basic Earnings Per Share $0.93 $0.78 19.4% $0.75 24.2% $0.93 $0.78 19.4% 19 Diluted Earnings Per Share 0.92 0.76 19.9% 0.74 24.2% 0.92 0.76 19.9% 20 Return On Assets 2.43% 2.03% 1.90% 2.43% 2.03% 21 Return On Equity 27.3% 23.0% 21.7% 27.3% 23.0% 22 Net Interest Margin (FTE) 4.79% 4.41% 4.53% 4.79% 4.41% 23 Efficiency Ratio (FTE) 34.2% 39.7% 44.3% 34.2% 39.7% 24 Dividends Paid Per Share $0.34 $0.34 0.0% $0.34 0.0% $0.34 $0.34 0.0% 25 Dividend Payout Ratio 37% 44% 46% 37% 44% 2. Net Interest Income. (dollars in thousands) Q1'08 / Q1'08 / 3/31'08YTD / Q1'08 Q1'07 Q1'07 Q4'07 Q4'07 3/31'08YTD 3/31'07YTD 3/31'07YTD --------------------------------------------------------------------------------------- 1 Interest and Fee Income (FTE) $60,810 $65,025 -6.5% $63,295 -3.9% $60,810 $65,025 -6.5% 2 Interest Expense 12,828 18,111 -29.2% 16,483 -22.2% 12,828 18,111 -29.2% ----------------------- ------------ ----------------------- 3 Net Interest Income (FTE) $47,982 $46,914 2.3% $46,812 2.5% $47,982 $46,914 2.3% ======================= ============ ======================= 4 Average Earning Assets $4,028,221 $4,287,431 -6.0%$4,124,196 -2.3%$4,028,221 $4,287,431 -6.0% 5 Average Interest-Bearing 2,771,526 2,961,252 -6.4% 2,830,235 -2.1% 2,771,526 2,961,252 -6.4% Liabilities 6 Yield on Earning Assets (FTE) 6.06% 6.11% 6.11% 6.06% 6.11% 7 Cost of Funds 1.27% 1.70% 1.58% 1.27% 1.70% 8 Net Interest Margin (FTE) 4.79% 4.41% 4.53% 4.79% 4.41% 9 Interest Expense/ 1.85% 2.46% 2.30% 1.85% 2.46% Interest-Bearing Liabilities 10 Net Interest Spread (FTE) 4.21% 3.65% 3.81% 4.21% 3.65% 3. Loans & Other Earning Assets. (average volume, dollars in thousands) Q1'08 / Q1'08 / 3/31'08YTD / Q1'08 Q1'07 Q1'07 Q4'07 Q4'07 3/31'08YTD 3/31'07YTD 3/31'07YTD --------------------------------------------------------------------------------------- 1 Total Assets $4,433,934 $4,713,173 -5.9%$4,556,715 -2.7%$4,433,934 $4,713,173 -5.9% 2 Total Earning Assets 4,028,221 4,287,431 -6.0% 4,124,196 -2.3% 4,028,221 4,287,431 -6.0% 3 Total Loans 2,477,666 2,519,861 -1.7% 2,496,403 -0.8% 2,477,666 2,519,861 -1.7% 4 Commercial Loans 616,994 616,277 0.1% 615,093 0.3% 616,994 616,277 0.1% 5 Commercial Real Estate Loans 850,504 900,625 -5.6% 864,464 -1.6% 850,504 900,625 -5.6% 6 Consumer Loans 1,010,168 1,002,959 0.7% 1,016,846 -0.7% 1,010,168 1,002,959 0.7% 7 Total Investment Securities 1,550,555 1,767,570 -12.3% 1,627,793 -4.7% 1,550,555 1,767,570 -12.3% 8 Available For Sale 518,217 612,852 -15.4% 569,832 -9.1% 518,217 612,852 -15.4% (Market Value) 9 Held To Maturity 1,032,338 1,154,718 -10.6% 1,057,961 -2.4% 1,032,338 1,154,718 -10.6% 10 HTM Unrealized Gain 13,324 (5,955) n/m 4,134 n/m 13,324 (5,955) n/m (Loss) at Period-End 11 Loans / Deposits 77.1% 73.5% 75.1% 77.1% 73.5% Page 10 WESTAMERICA BANCORPORATION Public Information April 15, 2008 FINANCIAL HIGHLIGHTS March 31, 2008 4. Deposits & Other Interest-Bearing Liabilities. (average volume, dollars in thousands) Q1'08 / Q1'08 / 3/31'08YTD / Q1'08 Q1'07 Q1'07 Q4'07 Q4'07 3/31'08YTD 3/31'07YTD 3/31'07YTD --------------------------------------------------------------------------------------- 1 Total Deposits $3,212,347 $3,427,010 -6.3%$3,325,154 -3.4%$3,212,347 $3,427,010 -6.3% 2 Noninterest Demand 1,199,604 1,270,522 -5.6% 1,258,496 -4.7% 1,199,604 1,270,522 -5.6% 3 Interest-Bearing Transaction 546,417 586,860 -6.9% 546,485 -0.0% 546,417 586,860 -6.9% 4 Savings 768,443 866,192 -11.3% 805,321 -4.6% 768,443 866,192 -11.3% 5 Time greater than $100K 500,936 484,887 3.3% 512,610 -2.3% 500,936 484,887 3.3% 6 Time less than $100K 196,947 218,549 -9.9% 202,242 -2.6% 196,947 218,549 -9.9% 7 Total Short-Term Borrowings 722,025 767,859 -6.0% 726,783 -0.7% 722,025 767,859 -6.0% 8 Fed Funds Purchased 565,415 596,965 -5.3% 544,640 3.8% 565,415 596,965 -5.3% 9 Other Short-Term Funds 156,610 170,894 -8.4% 182,143 -14.0% 156,610 170,894 -8.4% 10 Long-Term Debt 36,758 36,905 -0.4% 36,794 -0.1% 36,758 36,905 -0.4% 11 Shareholders' Equity 394,273 414,957 -5.0% 398,703 -1.1% 394,273 414,957 -5.0% 12 Demand Deposits / 37.3% 37.1% 37.8% 37.3% 37.1% Total Deposits 13 Transaction & Savings Deposits / 78.3% 79.5% 78.5% 78.3% 79.5% Total Deposits 5. Interest Yields Earned & Rates Paid. (dollars in thousands) Q1'08 Q1'07 ------------------------------- Q4'07 ---------------------------------- Average Income/ Yield/ Yield/ Average Income/ Yield/ Volume Expense Rate Rate Volume Expense Rate ---------------------------------------------------------------------------- 1 Interest & Fees Income Earned 2 Total Earning Assets (FTE) $4,028,221 $60,810 6.06% 6.11%$4,287,431 $65,025 6.11% 3 Total Loans (FTE) 2,477,666 39,897 6.48% 6.58% 2,519,861 41,398 6.66% 4 Commercial Loans (FTE) 616,994 11,288 7.36% 7.73% 616,277 12,081 7.95% 5 Commercial Real Estate 850,504 14,953 7.07% 7.11% 900,625 15,935 7.18% Loans 6 Consumer Loans 1,010,168 13,656 5.44% 5.43% 1,002,959 13,382 5.41% 7 Total Investment 1,550,555 20,913 5.40% 5.38% 1,767,570 23,627 5.35% Securities (FTE) 8 Interest Expense Paid 9 Total Earning Assets 4,028,221 12,828 1.27% 1.58% 4,287,431 18,111 1.70% 10 Total Interest-Bearing 2,771,526 12,828 1.85% 2.30% 2,961,252 18,111 2.46% Liabilities 11 Total Interest-Bearing 2,012,743 7,328 1.46% 1.75% 2,156,488 9,237 1.74% Deposits 12 Interest-Bearing 546,417 452 0.33% 0.37% 586,860 523 0.36% Transaction 13 Savings 768,443 1,330 0.70% 0.81% 866,192 1,409 0.66% 14 Time less than $100K 196,947 1,589 3.25% 3.37% 218,549 1,734 3.22% 15 Time greater than $100K 500,936 3,957 3.18% 4.07% 484,887 5,571 4.66% 16 Total Short-Term Borrowings 722,025 4,922 2.70% 3.65% 767,859 8,296 4.32% 17 Fed Funds Purchased 565,415 4,599 3.22% 4.56% 596,965 7,824 5.24% 18 Other Short-Term Funds 156,610 323 0.83% 0.95% 170,894 472 1.12% 19 Long-Term Debt 36,758 578 6.29% 6.29% 36,905 578 6.27% 20 Net Interest Income and Margin (FTE) $47,982 4.79% 4.53% $46,914 4.41% 6. Noninterest Income. (dollars in thousands except per share amounts) Q1'08 / Q1'08 / 3/31'08YTD / Q1'08 Q1'07 Q1'07 Q4'07 Q4'07 3/31'08YTD 3/31'07YTD 3/31'07YTD --------------------------------------------------------------------------------------- 1 Service Charges on Deposit $7,296 $7,528 -3.1% $7,422 -1.7% $7,296 $7,528 -3.1% Accounts 2 Merchant Credit Card Income 2,580 2,449 5.4% 2,817 -8.4% 2,580 2,449 5.4% 3 ATM Fees & Interchange 718 677 6.1% 709 1.3% 718 677 6.1% 4 Debit Card Fees 904 895 0.9% 972 -7.0% 904 895 0.9% 5 Financial Services Commissions 230 310 -25.9% 265 -13.2% 230 310 -25.9% 6 Mortgage Banking Income 40 30 35.2% 32 25.7% 40 30 35.2% 7 Trust Fees 303 337 -10.1% 303 -0.1% 303 337 -10.1% 8 Other Income 1,609 2,229 -27.8% 2,137 -24.7% 1,609 2,229 -27.8% ----------------------- ------------ ----------------------- 9 Sub-total 13,680 14,455 -5.4% 14,657 -6.7% 13,680 14,455 -5.4% 10 Life Insurance Gains 0 822 n/m 0 n/m 0 822 n/m 11 Gain on Sale of Visa 5,698 0 n/m 0 n/m 5,698 0 n/m Common Stock ----------------------- ------------ ----------------------- 12 Total Noninterest Income $19,378 $15,277 26.8% $14,657 32.2% $19,378 $15,277 26.8% ======================= ============ ======================= 13 Operating Ratios: 14 Total Revenue (FTE) $67,360 $62,191 8.3% $61,469 9.6% $67,360 $62,191 8.3% 15 Noninterest Income / 28.8% 24.6% 23.8% 28.8% 24.6% Revenue (FTE) 16 Service Charges / 0.91% 0.89% 0.89% 0.91% 0.89% Deposits (annualized) 17 Total Revenue Per Share $9.39 $8.31 12.9% $8.35 12.4% $9.39 $8.31 12.9% (annualized) Page 11 WESTAMERICA BANCORPORATION Public Information April 15, 2008 FINANCIAL HIGHLIGHTS March 31, 2008 7. Noninterest Expense. (dollars in thousands) Q1'08 / Q1'08 / 3/31'08YTD / Q1'08 Q1'07 Q1'07 Q4'07 Q4'07 3/31'08YTD 3/31'07YTD 3/31'07YTD --------------------------------------------------------------------------------------- 1 Salaries & Benefits $12,984 $12,568 3.3% $12,366 5.0% $12,984 $12,568 3.3% 2 Occupancy 3,390 3,291 3.0% 3,386 0.1% 3,390 3,291 3.0% 3 Equipment 921 1,138 -19.1% 934 -1.4% 921 1,138 -19.1% 4 Data Processing 2,120 1,524 39.1% 2,202 -3.7% 2,120 1,524 39.1% 5 Courier 829 848 -2.2% 845 -1.9% 829 848 -2.2% 6 Postage 383 410 -6.5% 391 -1.9% 383 410 -6.5% 7 Telephone 335 360 -6.9% 343 -2.2% 335 360 -6.9% 8 Professional Fees 536 495 8.1% 534 0.3% 536 495 8.1% 9 Stationery & Supplies 279 315 -11.5% 365 -23.7% 279 315 -11.5% 10 Loan Expense 170 167 1.7% 195 -12.8% 170 167 1.7% 11 Operational Losses 184 160 15.3% 234 -21.2% 184 160 15.3% 12 Amortization of Identifiable 858 975 -12.0% 893 -3.9% 858 975 -12.0% Intangibles 13 Other Operating 2,405 2,413 -0.4% 2,180 10.3% 2,405 2,413 -0.4% ----------------------- ------------ ----------------------- 14 Sub-total 25,394 24,664 3.0% 24,868 2.1% 25,394 24,664 3.0% 15 VISA Litigation (2,338) 0 n/m 2,338 n/m (2,338) 0 n/m ----------------------- ------------ ----------------------- 16 Total Noninterest Expense $23,056 $24,664 -6.5% $27,206 -15.3% $23,056 $24,664 -6.5% ======================= ============ ======================= 17 Full Time Equivalent Staff 886 892 -0.7% 868 2.1% 886 892 -0.7% 18 Average Assets / Full Time $5,004 $5,284 -5.3% $5,250 -4.7% $5,004 $5,284 -5.3% Equivalent Staff 19 Operating Ratios: 20 FTE Revenue / Full Time $306 $283 8.1% $281 8.8% $306 $283 8.1% Equiv. Staff (annualized) 21 Noninterest Expense / 2.30% 2.33% 2.62% 2.30% 2.33% Earning Assets (annualized) 22 Noninterest Expense / 34.2% 39.7% 44.3% 34.2% 39.7% FTE Revenues 8. Provision for Credit Losses. (dollars in thousands) Q1'08 / Q1'08 / 3/31'08YTD / Q1'08 Q1'07 Q1'07 Q4'07 Q4'07 3/31'08YTD 3/31'07YTD 3/31'07YTD --------------------------------------------------------------------------------------- 1 Provision for Credit Losses $600 $75 700.0% $475 26.3% $600 $75 700.0% 2 Gross Loan Losses 1,537 1,244 23.6% 1,162 32.3% 1,537 1,244 23.6% 3 Net Loan Losses 872 516 69.0% 907 -3.8% 872 516 69.0% 4 Recoveries / Gross Loan Losses 43% 59% 22% 43% 59% 5 Average Total Loans $2,477,666 $2,519,861 -1.7%$2,496,403 -0.8%$2,477,666 $2,519,861 -1.7% 6 Net Loan Losses / Loans 0.14% 0.08% 0.14% 0.14% 0.08% (annualized) 7 Provision for Credit Losses / 0.10% 0.01% 0.08% 0.10% 0.01% Loans (annualized) 8 Provision for Credit Losses / 68.8% 14.5% 52.4% 68.8% 14.5% Net Loan Losses 9. Credit Quality. (dollars in thousands) 3/31/08 / 3/31/08 / 3/31/08 3/31/07 3/31/07 12/31/07 12/31/07 9/30/07 6/30/07 12/31/06 --------------------------------------------------------------------------------------- 1 Nonperforming Nonaccrual Loans $3,728 $2,341 25.5% $3,164 -7.2% $3,132 $3,140 $61 2 Performing Nonaccrual Loans 1,652 2,459 -0.7% 1,688 44.7% 1,695 1,898 4,404 ----------------------- ------------ ---------------------------------- 3 Total Nonaccrual Loans 5,380 4,800 12.1% 4,852 10.9% 4,827 5,038 4,465 4 Accruing Loans 90+ Days 268 82 226.8% 297 -9.8% 251 179 65 Past Due ----------------------- ------------ ---------------------------------- 5 Total Nonperforming Loans 5,648 4,882 15.7% 5,149 9.7% 5,078 5,217 4,530 6 Repossessed Collateral 954 647 47.4% 613 55.6% 613 613 647 7 Total Nonperforming Loans & ----------------------- ------------ ---------------------------------- 8 Repossessed Collateral $6,602 $5,529 19.4% $5,762 14.6% $5,691 $5,830 $5,177 ======================= ============ ================================== 9 Classified Loans $33,303 $18,439 80.6% $24,419 36.4% $21,403 $22,498 $20,180 ======================= ============ ================================== 10 Allowance for Loan Losses $52,234 $54,889 -4.8% $52,506 -0.5% $52,938 $53,473 $55,330 11 Total Loans Outstanding 2,448,320 2,519,898 -2.8% 2,502,976 -2.2% 2,511,374 2,521,738 2,531,734 12 Total Assets 4,342,302 4,748,829 -8.6% 4,558,959 -4.8% 4,657,016 4,647,069 4,769,335 13 Allowance for Loan Losses / 2.13% 2.18% 2.10% 2.11% 2.12% 2.19% Total Loans 14 Nonperforming Loans / 0.23% 0.19% 0.21% 0.20% 0.21% 0.18% Total Loans 15 Nonperforming Loans & Repossessed 16 Collateral/Total Assets 0.15% 0.12% 0.13% 0.12% 0.13% 0.11% 17 Allowance/Nonperforming Loans 925% 1124% 1020% 1042% 1025% 1221% 18 Allowance for Loan Losses / 157% 298% 215% 247% 238% 274% Classified Loans 19 Classified Loans / 20 (Equity + Allowance for 7.4% 3.9% 5.5% 4.7% 4.9% 4.2% Loan Losses) Page 12 WESTAMERICA BANCORPORATION Public Information April 15, 2008 FINANCIAL HIGHLIGHTS March 31, 2008 10.Capital. (dollars in thousands, except per-share amounts) 3/31/08 / 3/31/08 / 3/31/08 3/31/07 3/31/07 12/31/07 12/31/07 9/30/07 6/30/07 12/31/06 --------------------------------------------------------------------------------------- 1 Shareholders' Equity $399,109 $419,810 -4.9% $394,603 1.1% $403,651 $407,982 $424,235 2 Tier I Regulatory Capital 283,768 293,382 -3.3% 278,970 1.7% 283,015 286,818 298,576 3 Total Regulatory Capital 321,819 333,658 -3.5% 318,089 1.2% 322,598 326,582 339,114 4 Total Assets 4,342,302 4,748,829 -8.6% 4,558,959 -4.8% 4,657,016 4,647,069 4,769,335 5 Risk-Adjusted Assets 2,914,007 3,043,445 -4.3% 2,986,737 -2.4% 3,017,668 3,014,947 3,057,054 6 Shareholders' Equity / 9.19% 8.84% 8.66% 8.67% 8.78% 8.90% Total Assets 7 Shareholders' Equity / 16.30% 16.66% 15.77% 16.07% 16.18% 16.76% Total Loans 8 Tier I Capital / Total Assets 6.53% 6.18% 6.12% 6.08% 6.17% 6.26% 9 Tier I Capital / 9.74% 9.64% 9.33% 9.38% 9.51% 9.77% Risk-Adjusted Assets 10 Total Capital / 11.04% 10.96% 10.64% 10.69% 10.83% 11.09% Risk-Adjusted Assets 11 Shares Outstanding 28,772 30,158 -4.6% 29,018 -0.8% 29,378 29,732 30,547 12 Book Value Per Share $13.87 $13.92 -0.4% $13.60 2.0% $13.74 $13.72 $13.89 13 Market Value Per Share $52.60 $48.17 9.2% $44.55 18.1% $49.81 $44.24 $50.63 14 Share Repurchase Programs (shares in thousands) Q1'08 / Q1'08 / 3/31'08YTD / Q1'08 Q1'07 Q1'07 Q4'07 Q4'07 3/31'08YTD 3/31'07YTD 3/31'07YTD --------------------------------------------------------------------------------------- 15 Total Shares Repurchased / 424 447 -5.3% 491 -13.6% 424 447 -5.3% Canceled 16 Average Repurchase Price $47.68 $49.49 -3.7% $44.88 6.2% $47.68 $49.49 -3.7% 17 Net Shares Repurchased 246 389 -36.7% 360 -31.7% 246 389 -36.7% 11.Period-End Balance Sheets. (unaudited, dollars in thousands) 3/31/08 / 3/31/08 / 3/31/08 3/31/07 3/31/07 12/31/07 12/31/07 9/30/07 6/30/07 12/31/06 1 Assets: --------------------------------------------------------------------------------------- 2 Cash and Money Market Assets $139,957 $208,734 -32.9% $210,097 -33.4% $219,960 $164,390 $185,009 3 Investment Securities 477,686 602,220 -20.7% 532,821 -10.3% 570,086 582,959 615,525 Available For Sale 4 Investment Securities 1,016,613 1,142,382 -11.0% 1,045,288 -2.7% 1,081,009 1,104,132 1,165,092 Held to Maturity 5 Loans, gross 2,448,320 2,519,898 -2.8% 2,502,976 -2.2% 2,511,374 2,521,738 2,531,734 6 Allowance For Loan Losses (52,234) (54,889) -4.8% (52,506) -0.5% (52,938) (53,473) (55,330) ----------------------- ------------ ---------------------------------- 7 Loans, net 2,396,086 2,465,009 -2.8% 2,450,470 -2.2% 2,458,436 2,468,265 2,476,404 ----------------------- ------------ ---------------------------------- 8 Premises and Equipment 28,031 29,643 -5.4% 28,380 -1.2% 28,666 29,169 30,188 9 Identifiable Intangible 17,571 21,108 -16.8% 18,429 -4.7% 19,322 20,215 22,082 Assets 10 Goodwill 121,719 121,719 0.0% 121,719 0.0% 121,719 121,719 121,719 11 Interest Receivable and 144,639 158,014 -8.5% 151,755 -4.7% 157,818 156,220 153,316 Other Assets ----------------------- ------------ ---------------------------------- 12 Total Assets $4,342,302 $4,748,829 -8.6%$4,558,959 -4.8%$4,657,016 $4,647,069 $4,769,335 ======================= ============ ================================== 13 Liabilities and Shareholders' Equity: 14 Deposits: 15 Noninterest Bearing $1,202,165 $1,293,920 -7.1%$1,245,500 -3.5%$1,251,572 $1,266,941 $1,341,019 16 Interest-Bearing 542,468 584,026 -7.1% 544,411 -0.4% 549,263 554,036 588,668 Transaction 17 Savings 749,471 851,800 -12.0% 760,006 -1.4% 806,797 809,791 865,268 18 Time 700,534 714,626 -2.0% 714,873 -2.0% 732,582 704,264 721,779 ----------------------- ------------ ---------------------------------- 19 Total Deposits 3,194,638 3,444,372 -7.3% 3,264,790 -2.1% 3,340,214 3,335,032 3,516,734 ----------------------- ------------ ---------------------------------- 20 Short-Term Borrowed Funds 635,264 776,781 -18.2% 798,599 -20.5% 815,101 809,261 731,977 21 Debt Financing and 36,736 36,883 -0.4% 36,773 -0.1% 36,809 36,846 36,920 Notes Payable 22 Liability For Interest, 76,555 70,983 7.8% 64,194 19.3% 61,241 57,948 59,469 Taxes and Other ----------------------- ------------ ---------------------------------- 23 Total Liabilities 3,943,193 4,329,019 -8.9% 4,164,356 -5.3% 4,253,365 4,239,087 4,345,100 ----------------------- ------------ ---------------------------------- 24 Shareholders' Equity: 25 Paid-In Capital $339,468 $341,724 -0.7% $337,201 0.7% $337,627 $338,290 $344,263 26 Accumulated Other Comprehensive 27 (Loss) Income (3,954) 3,593 -210.0% (4,520) -12.5% (412) (777) 1,850 28 Retained Earnings 63,595 74,493 -14.6% 61,922 2.7% 66,436 70,469 78,122 ----------------------- ------------ ---------------------------------- 29 Total Shareholders' Equity 399,109 419,810 -4.9% 394,603 1.1% 403,651 407,982 424,235 ----------------------- ------------ ---------------------------------- 30 Total Liabilities and $4,342,302 $4,748,829 -8.6%$4,558,959 -4.8%$4,657,016 $4,647,069 $4,769,335 Shareholders' Equity ======================= ============ ================================== Page 13 WESTAMERICA BANCORPORATION Public Information April 15, 2008 FINANCIAL HIGHLIGHTS March 31, 2008 12.Income Statements. (unaudited, dollars in thousands, except per-share amounts) Q1'08 / Q1'08 / 3/31'08YTD / Q1'08 Q1'07 Q1'07 Q4'07 Q4'07 3/31'08YTD 3/31'07YTD 3/31'07YTD --------------------------------------------------------------------------------------- 1 Interest and Fee Income: 2 Loans $38,732 $40,167 -3.6% $40,214 -3.7% $38,732 $40,167 -3.6% 3 Money Market Assets and Funds 1 2 n/m 3 n/m 1 2 n/m 4 Investment Securities 5,802 7,122 -18.5% 6,528 -11.1% 5,802 7,122 -18.5% Available For Sale 5 Investment Securities 10,859 12,083 -10.1% 11,116 -2.3% 10,859 12,083 -10.1% Held to Maturity ----------------------- ------------ ----------------------- 6 Total Interest Income 55,394 59,374 -6.7% 57,861 -4.3% 55,394 59,374 -6.7% ----------------------- ------------ ----------------------- 7 Interest Expense: 8 Transaction Deposits 452 523 -13.6% 515 -12.2% 452 523 -13.6% 9 Savings Deposits 1,330 1,409 -5.6% 1,636 -18.7% 1,330 1,409 -5.6% 10 Time Deposits 5,546 7,305 -24.1% 6,975 -20.5% 5,546 7,305 -24.1% 11 Short-Term Borrowed Funds 4,922 8,296 -40.7% 6,779 -27.4% 4,922 8,296 -40.7% 12 Debt Financing and 578 578 0.0% 578 0.0% 578 578 0.0% Notes Payable ----------------------- ------------ ----------------------- 13 Total Interest Expense 12,828 18,111 -29.2% 16,483 -22.2% 12,828 18,111 -29.2% ----------------------- ------------ ----------------------- 14 Net Interest Income 42,566 41,263 3.2% 41,378 2.9% 42,566 41,263 3.2% ----------------------- ------------ ----------------------- 15 Provision for Credit Losses 600 75 700.0% 475 26.3% 600 75 700.0% ----------------------- ------------ ----------------------- 16 Noninterest Income: 17 Service Charges on 7,296 7,528 -3.1% 7,422 -1.7% 7,296 7,528 -3.1% Deposit Accounts 18 Merchant Credit Card 2,580 2,449 5.4% 2,817 -8.4% 2,580 2,449 5.4% 19 ATM Fees & Interchange 718 677 6.1% 709 1.3% 718 677 6.1% 20 Debit Card Fees 904 895 0.9% 972 -7.0% 904 895 0.9% 21 Financial Services Commissions 230 310 -25.9% 265 -13.2% 230 310 -25.9% 22 Mortgage Banking 40 30 35.2% 32 25.7% 40 30 35.2% 23 Trust Fees 303 337 -10.1% 303 -0.1% 303 337 -10.1% 24 Life Insurance Gains 0 822 n/m 0 n/m 0 822 n/m 25 Gain on Sale of Visa 5,698 0 n/m 0 n/m 5,698 0 n/m Common Stock 26 Other 1,609 2,229 -27.8% 2,137 -24.7% 1,609 2,229 -27.8% ----------------------- ------------ ----------------------- 27 Total Noninterest Income 19,378 15,277 26.8% 14,657 32.2% 19,378 15,277 26.8% ----------------------- ------------ ----------------------- 28 Noninterest Expense: 29 Salaries and Related Benefits 12,984 12,568 3.3% 12,366 5.0% 12,984 12,568 3.3% 30 Occupancy 3,390 3,291 3.0% 3,386 0.1% 3,390 3,291 3.0% 31 Equipment 921 1,138 -19.1% 934 -1.4% 921 1,138 -19.1% 32 Data Processing 2,120 1,524 39.1% 2,202 -3.7% 2,120 1,524 39.1% 33 Professional Fees 536 495 8.1% 534 0.3% 536 495 8.1% 34 VISA Litigation (2,338) 0 n/m 2,338 n/m (2,338) 0 n/m 35 Other 5,443 5,648 -3.6% 5,446 -0.0% 5,443 5,648 -3.6% ----------------------- ------------ ----------------------- 36 Total Noninterest Expense 23,056 24,664 -6.5% 27,206 -15.3% 23,056 24,664 -6.5% ----------------------- ------------ ----------------------- 37 Income Before Income Taxes 38,288 31,801 20.4% 28,354 35.0% 38,288 31,801 20.4% 38 Provision for income taxes 11,510 8,231 39.8% 6,522 76.5% 11,510 8,231 39.8% ----------------------- ------------ ----------------------- 39 Net Income $26,778 $23,570 13.6% $21,832 22.7% $26,778 $23,570 13.6% ======================= ============ ======================= 40 Average Shares Outstanding 28,861 30,342 -4.9% 29,213 -1.2% 28,861 30,342 -4.9% 41 Diluted Average Shares 29,210 30,824 -5.2% 29,575 -1.2% 29,210 30,824 -5.2% Outstanding 42 Per Share Data: 43 Basic Earnings $0.93 $0.78 19.4% $0.75 24.2% $0.93 $0.78 19.4% 44 Diluted Earnings 0.92 0.76 19.9% 0.74 24.2% 0.92 0.76 19.9% 45 Dividends Paid 0.34 0.34 0.0% 0.34 0.0% 0.34 0.34 0.0%