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 16, 2009
----------------
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 15, 2009
Item 2.02: Results of Operations and Financial Condition
----------------------------------------------------------
On January 15, 2009 Westamerica Bancorporation announced their
earnings for the fourth 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
January 16, 2009
Page 4
INDEX TO EXHIBITS
-----------------
Sequentially
Exhibit No. Description Number Page
----------- ------------------------- -------------
(99.1) Press release dated 5-12
January 15, 2009
Page 5
FOR IMMEDIATE RELEASE
January 15, 2009
WESTAMERICA BANCORPORATION REPORTS
QUARTERLY AND ANNUAL EARNINGS
San Rafael, CA: Westamerica Bancorporation (NASDAQ: WABC), parent company of
Westamerica Bank, today reported net income for the fourth quarter 2008 of $20.8
million, or diluted earning per share (EPS) of $0.71. Fourth quarter 2008
results include "other than temporary impairment" securities losses of $1.9
million net of tax, which reduced EPS by $0.07. In the prior year's fourth
quarter, Westamerica reported net income of $21.8 million, or EPS of $0.74.
Fourth quarter 2007 results include a $2.3 million litigation expense for
Westamerica's proportionate share of Visa's litigation exposure and a $700
thousand income tax refund. The expense for Visa litigation and the income tax
refund combined to reduce net income by $590 thousand, or EPS by $0.02.
"Our net interest margin increased to 5.44 percent in the fourth quarter 2008,
compared to 5.19 percent in the third quarter 2008. The margin improvement was
in large part due to declining short-term interest rates, which allowed us to
reduce our cost of funds. Our credit quality remains relatively healthy in the
recessionary economy. Our total non-performing assets were $14.3 million at
December 31, 2008, compared to $13.4 million at September 30, 2008. Our $44.5
million reserve for loan losses at December 31, 2008 compares favorably to net
loan losses of $10.7 million for all of 2008," said Chairman, President and CEO
David Payne. "We are pleased to report a 21 percent annualized return on our
shareholders' equity for the fourth quarter 2008," continued Payne.
Westamerica reported net income for the year ended December 31, 2008 of $59.8
million, or EPS of $2.04, compared to net income of $89.8 million and EPS of
$2.98 for 2007. Results for 2008 include gains from the VISA initial public
offering, securities losses on FHLMC and FNMA preferred stock, and a $1 million
tax benefit from adjusting 2007 tax estimates to the filed tax return which
combined to reduce net income by $30.7 million and EPS by $1.05. Results for
2007 include the $2.3 million expense for Visa litigation, the $700 thousand
income tax refund, and life insurance proceeds of $822 thousand which combined
to increase net income by $200 thousand.
Page 6
Net interest income on a fully taxable equivalent basis was $49.9 million in the
fourth quarter of 2008 compared to $48.7 million in the prior quarter and $46.8
million in the same quarter a year ago. The fourth quarter 2008 net interest
margin on a fully taxable equivalent basis was 5.44 percent, compared to 5.19
percent for the previous quarter and 4.53 percent for the fourth quarter of
2007. For the full year 2008, net interest income and the net interest margin on
a fully taxable equivalent basis were $196.3 million and 5.13 percent, compared
to $185.3 million and 4.40 percent, respectively, for 2007.
The provision for credit losses was $900 thousand for the fourth quarter of
2008, compared to $600 thousand for the previous quarter and $475 thousand for
the year ago quarter. The increase in the provision for credit losses in the
fourth quarter 2008 reflects Management's assessment of credit risk for the
Company.
Non-interest income in the fourth quarter of 2008 totaled $9.9 million, compared
to $14.7 million for the year ago quarter. The reduction from the year ago
quarter was due to $3.3 million in securities losses, lower merchant credit card
fees, and lower official check fees.
Non-interest expense for the fourth quarter of 2008 totaled $26.2 million
compared to $25.2 million in the prior quarter and $27.2 million in the year ago
quarter. The increase from the prior quarter is primarily attributable to
higher professional fees and operational losses. The reduction in non-interest
expense from the year ago quarter is primarily attributable to the Visa
litigation charge recorded in the fourth quarter 2007, offset in part by higher
personnel costs and professional fees in the fourth quarter 2008.
Page 7
For the full year 2008, non-interest expense was $100.8 million compared to
$101.4 million for 2007. Non-interest expense was increased $2.3 million in 2007
with the recognition of Westamerica's proportionate share of Visa's litigation
exposure, and reduced $2.3 million in 2008 upon Visa's funding of a litigation
settlement escrow. Operating expenses increased approximately $4.0 million in
2008 compared to 2007 primarily due to higher personnel, data processing, and
professional fees, offset in part by lower amortization of identifiable
intangible assets.
Shareholders' equity was $410 million at December 31, 2008 increased from $395
million at December 31, 2007. At December 31, 2008, the equity-to-asset ratio
was 10.2 percent, increased from 8.7 percent at December 31, 2007. At December
31, 2008, the Company's assets totaled $4.0 billion and loans outstanding
totaled $2.4 billion.
Westamerica Bancorporation, through its wholly owned subsidiary Westamerica
Bank, operates 86 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
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, 2008 and 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 8
WESTAMERICA BANCORPORATION Public Information January 15, 2009
FINANCIAL HIGHLIGHTS
December 31, 2008
1. Net Income Summary.
(dollars in thousands except per-share amounts)
^Q4'08 / Q4'08 / 12/31'08YTD
Q4'08 Q4'07 Q4'07 Q3'08 Q3'08 12/31'08YTD 12/31'07YTD 12/31'07YTD
------------------------------------------------------------------------------------------------
1 Net Interest Income (Fully $49,850 $46,812 6.5% $48,693 2.4% $196,257 $185,348 5.9%
Taxable Equivalent)
2 Provision for Loan Losses 900 475 n/m 600 50.0% 2,700 700 n/m
3 Noninterest Income:
4 Net Losses From Equity (3,269) 0 n/m (41,206) n/m (56,955) 0 n/m
Securities
5 Other 13,177 14,657 -10.1% 13,707 -3.9% 54,899 59,278 -7.4%
------------------------ ------------ ------------------------
6 Total Noninterest Income 9,908 14,657 n/m (27,499) n/m (2,056) 59,278 n/m
7 Noninterest Expense:
8 VISA Litigation 0 2,338 n/m 0 n/m (2,338) 2,338 n/m
9 Other 26,166 24,868 5.2% 25,203 3.8% 103,099 99,090 4.0%
------------------------ ------------ ------------------------
10 Total Noninterest Expense 26,166 27,206 -3.8% 25,203 3.8% 100,761 101,428 -0.7%
------------------------ ------------ ------------------------
11 Income (Loss) Before Taxes 32,692 33,788 -3.2% (4,609) n/m 90,740 142,498 -36.3%
(FTE)
12 Income Tax Provision 11,882 11,956 -0.6% (4,653) n/m 30,905 52,722 -41.4%
(Benefit)(FTE) ------------------------ ------------ ------------------------
13 Net Income $20,810 $21,832 -4.7% $44 n/m $59,835 $89,776 -33.4%
======================== ============ ========================
14 Average Shares Outstanding 28,884 29,213 -1.1% 28,908 -0.1% 28,892 29,753 -2.9%
15 Diluted Average Shares 29,218 29,575 -1.2% 29,273 -0.2% 29,273 30,165 -3.0%
Outstanding
16 Operating Ratios:
17 Basic Earnings Per Share $0.72 $0.75 -4.0% $0.00 n/m $2.07 $3.02 -31.5%
18 Diluted Earnings Per Share 0.71 0.74 -4.1% 0.00 n/m 2.04 2.98 -31.5%
19 Return On Assets 2.04% 1.90% 0.00% 1.42% 1.93%
(annualized)
20 Return On Equity 20.6% 21.7% 0.0% 14.8% 22.1%
(annualized)
21 Net Interest Margin (FTE) 5.44% 4.53% 5.19% 5.13% 4.40%
(annualized)
22 Efficiency Ratio (FTE) 43.8% 44.3% n/m 51.9% 41.5%
23 Dividends Paid Per Share $0.35 $0.34 2.9% $0.35 0.0% $1.39 $1.36 2.2%
24 Dividend Payout Ratio 49% 46% n/m 68% 46%
2. Net Interest Income.
(dollars in thousands)
Q4'08 / Q4'08 / 12/31'08YTD
Q4'08 Q4'07 Q4'07 Q3'08 Q3'08 12/31'08YTD 12/31'07YTD 12/31'07YTD
------------------------------------------------------------------------------------------------
1 Interest and Fee Income (FTE) $54,442 $63,295 -14.0% $56,131 -3.0% $229,500 $257,903 -11.0%
2 Interest Expense 4,592 16,483 -72.1% 7,438 -38.3% 33,243 72,555 -54.2%
------------------------ ------------ ------------------------
3 Net Interest Income (FTE) $49,850 $46,812 6.5% $48,693 2.4% $196,257 $185,348 5.9%
======================== ============ ========================
4 Average Earning Assets $3,654,966 $4,124,196 -11.4% $3,745,058 -2.4% $3,822,665 $4,213,511 -9.3%
5 Average Interest-Bearing 2,425,928 2,830,235 -14.3% 2,486,659 -2.4% 2,568,016 2,905,370 -11.6%
Liabilities
6 Yield on Earning Assets (FTE) 5.94% 6.11% 5.98% 6.00% 6.12%
(annualized)
7 Cost of Funds (annualized) 0.50% 1.58% 0.79% 0.87% 1.72%
8 Net Interest Margin (FTE) 5.44% 4.53% 5.19% 5.13% 4.40%
(annualized)
9 Interest Expense/Interest-Bearing
Liabilities (annualized) 0.75% 2.30% 1.19% 1.29% 2.50%
10 Net Interest Spread (FTE) 5.19% 3.81% 4.79% 4.71% 3.62%
(annualized)
3. Loans & Other Earning Assets.
(average volume, dollars in thousands)
Q4'08 / Q4'08 / 12/31'08YTD
Q4'08 Q4'07 Q4'07 Q3'08 Q3'08 12/31'08YTD 12/31'07YTD 12/31'07YTD
------------------------------------------------------------------------------------------------
1 Total Assets $4,053,295 $4,556,715 -11.0% $4,137,232 -2.0% $4,219,763 $4,641,460 -9.1%
2 Total Earning Assets 3,654,966 4,124,196 -11.4% 3,745,058 -2.4% 3,822,665 4,213,511 -9.3%
3 Total Loans 2,399,741 2,496,403 -3.9% 2,414,317 -0.6% 2,432,556 2,511,763 -3.2%
4 Commercial Loans 586,245 615,093 -4.7% 597,176 -1.8% 602,316 620,841 -3.0%
5 Commercial Real Estate 819,645 864,464 -5.2% 830,001 -1.2% 835,925 879,952 -5.0%
Loans
6 Consumer Loans 993,851 1,016,846 -2.3% 987,140 0.7% 994,315 1,010,970 -1.6%
7 Total Investment Securities 1,255,225 1,627,793 -22.9% 1,330,741 -5.7% 1,390,109 1,701,748 -18.3%
8 Available For Sale 299,494 569,832 -47.4% 359,220 -16.6% 402,131 593,898 -32.3%
(Market Value)
9 Held To Maturity 955,731 1,057,961 -9.7% 971,521 -1.6% 987,978 1,107,850 -10.8%
10 HTM Unrealized Gain 885 4,134 n/m (15,042) n/m 885 4,134 n/m
(Loss) at Period-End
11 Loans / Deposits 77.0% 75.1% 76.5% 76.8% 74.5%
Page 9
WESTAMERICA BANCORPORATION Public Information January 15, 2009
FINANCIAL HIGHLIGHTS
December 31, 2008
4. Deposits & Other Interest-Bearing Liabilities.
(average volume, dollars in thousands)
Q4'08 / Q4'08 / 12/31'08YTD
Q4'08 Q4'07 Q4'07 Q3'08 Q3'08 12/31'08YTD 12/31'07YTD 12/31'07YTD
------------------------------------------------------------------------------------------------
1 Total Deposits $3,115,989 $3,325,154 -6.3% $3,154,340 -1.2% $3,166,450 $3,371,853 -6.1%
2 Noninterest Demand 1,167,490 1,258,496 -7.2% 1,172,953 -0.5% 1,181,679 1,262,723 -6.4%
3 Interest-Bearing 533,746 546,485 -2.3% 539,286 -1.0% 541,727 569,286 -4.8%
Transaction
4 Savings 742,897 805,321 -7.8% 764,535 -2.8% 759,829 826,336 -8.0%
5 Time greater than $100K 479,207 512,610 -6.5% 484,396 -1.1% 489,326 503,469 -2.8%
6 Time less than $100K 192,649 202,242 -4.7% 193,170 -0.3% 193,889 210,039 -7.7%
7 Total Short-Term Borrowings 450,778 726,783 -38.0% 470,109 -4.1% 549,438 759,390 -27.6%
8 Fed Funds Purchased 325,275 544,640 -40.3% 342,338 -5.0% 411,488 596,711 -31.0%
9 Other Short-Term Funds 125,503 182,143 -31.1% 127,771 -1.8% 137,950 162,679 -15.2%
10 Long-Term Debt 26,651 36,794 -27.6% 35,163 -24.2% 33,807 36,850 -8.3%
11 Shareholders' Equity 401,598 398,703 0.7% 412,133 -2.6% 405,076 406,028 -0.2%
12 Demand Deposits / Total 37.5% 37.8% 37.2% 37.3% 37.4%
Deposits
13 Transaction & Savings 78.4% 78.5% 78.5% 78.4% 78.8%
Deposits / Total Deposits
5. Interest Yields Earned & Rates Paid.
(dollars in thousands)
Q4'08 Q4'07
------------------------------------ Q3'08 ------------------------------------
Average Income/ Yield */ Yield*/ Average Income/ Yield*/
Volume Expense Rate Rate Volume Expense Rate
------------------------------------------------------------------------------------
1 Interest & Fees Income Earned
2 Total Earning Assets (FTE) $3,654,966 $54,442 5.94% 5.98% $4,124,196 $63,295 6.11%
3 Total Loans (FTE) 2,399,741 37,063 6.14% 6.24% 2,496,403 41,389 6.58%
4 Commercial Loans (FTE) 586,245 9,123 6.19% 6.64% 615,093 11,986 7.73%
5 Commercial Real Estate 819,645 14,471 7.02% 6.96% 864,464 15,492 7.11%
Loans
6 Consumer Loans 993,851 13,469 5.39% 5.39% 1,016,846 13,911 5.43%
7 Total Investment Securities 1,255,225 17,379 5.54% 5.49% 1,627,793 21,906 5.38%
(FTE)
8 Interest Expense Paid
9 Total Earning Assets 3,654,966 4,592 0.50% 0.79% 4,124,196 16,483 1.58%
10 Total Interest-Bearing 2,425,928 4,592 0.75% 1.19% 2,830,235 16,483 2.30%
Liabilities
11 Total Interest-Bearing 1,948,499 3,571 0.73% 1.00% 2,066,658 9,126 1.75%
Deposits
12 Interest-Bearing 533,746 252 0.19% 0.26% 546,485 515 0.37%
Transaction
13 Savings 742,897 763 0.41% 0.55% 805,321 1,636 0.81%
14 Time less than $100K 192,649 1,065 2.20% 2.47% 202,242 1,716 3.37%
15 Time greater than $100K 479,207 1,491 1.24% 1.94% 512,610 5,259 4.07%
16 Total Short-Term Borrowings 450,778 598 0.52% 1.63% 726,783 6,779 3.65%
17 Fed Funds Purchased 325,275 415 0.50% 1.95% 544,640 6,341 4.56%
18 Other Short-Term Funds 125,503 183 0.58% 0.77% 182,143 438 0.95%
19 Long-Term Debt 26,651 423 6.34% 5.96% 36,794 578 6.29%
20 Net Interest Income and Margin (FTE) $49,850 5.44% 5.19% $46,812 4.53%
* Annualized
6. Noninterest Income.
(dollars in thousands except per share amounts)
Q4'08 / Q4'08 / 12/31'08YTD
Q4'08 Q4'07 Q4'07 Q3'08 Q3'08 12/31'08YTD 12/31'07YTD 12/31'07YTD
------------------------------------------------------------------------------------------------
1 Service Charges on Deposit $7,383 $7,422 -0.5% $7,555 -2.3% $29,762 $30,235 -1.6%
Accounts
2 Merchant Credit Card Income 2,623 2,817 -6.9% 2,611 0.4% 10,525 10,841 -2.9%
3 ATM Fees & Interchange 685 709 -3.4% 756 -9.4% 2,923 2,824 3.5%
4 Debit Card Fees 917 972 -5.6% 970 -5.4% 3,769 3,797 -0.7%
5 Financial Services Commission 141 265 -46.8% 186 -24.3% 830 1,321 -37.2%
6 Mortgage Banking Income 19 32 -41.8% 39 -51.8% 125 124 0.5%
7 Trust Fees 255 303 -15.9% 293 -13.0% 1,227 1,281 -4.2%
8 Other Income 1,154 2,137 -46.0% 1,297 -11.0% 5,738 8,855 -35.2%
------------------------ ------------ ------------------------
9 Sub-total 13,177 14,657 -10.1% 13,707 -3.9% 54,899 59,278 -7.4%
10 Net Losses From Equity (3,269) 0 n/m (41,206) n/m (56,955) 0 n/m
Securities ------------------------ ------------ ------------------------
11 Total Noninterest Income $9,908 $14,657 -32.4% ($27,499) n/m ($2,056) $59,278 n/m
======================== ============ ========================
12 Operating Ratios:
13 Total Revenue (FTE) $59,758 $61,469 -2.8% $21,194 182.0% $194,201 $244,626 -20.6%
14 Noninterest Income / 16.6% 23.8% n/m n/m 24.2%
Revenue (FTE)
15 Service Charges / Average 0.94% 0.89% 0.95% 0.94% 0.90%
Deposits (annualized)
16 Total Revenue Per Average $8.23 $8.35 -1.4% $2.92 182.2% $6.72 $8.22 -18.2%
Share (annualized)
Page 10
WESTAMERICA BANCORPORATION Public Information January 15, 2009
FINANCIAL HIGHLIGHTS
December 31, 2008
7. Noninterest Expense.
(dollars in thousands)
Q4'08 / Q4'08 / 12/31'08YTD
Q4'08 Q4'07 Q4'07 Q3'08 Q3'08 12/31'08YTD 12/31'07YTD 12/31'07YTD
------------------------------------------------------------------------------------------------
1 Salaries & Benefits $12,823 $12,366 3.7% $12,621 1.6% $51,492 $50,142 2.7%
2 Occupancy 3,405 3,386 0.6% 3,465 -1.7% 13,703 13,346 2.7%
3 Equipment 976 934 4.5% 903 8.1% 3,801 4,302 -11.7%
4 Data Processing 2,117 2,202 -3.8% 2,098 0.9% 8,440 7,069 19.4%
5 Courier 835 845 -1.2% 835 0.0% 3,322 3,404 -2.4%
6 Postage 346 391 -11.6% 369 -6.3% 1,487 1,602 -7.2%
7 Telephone 344 343 0.4% 342 0.7% 1,368 1,398 -2.2%
8 Professional Fees 920 534 72.3% 485 89.7% 2,624 1,889 38.9%
9 Stationery & Supplies 334 365 -8.6% 272 22.7% 1,170 1,271 -8.0%
10 Loan Expense 258 195 32.5% 246 4.8% 911 750 21.4%
11 Operational Losses 352 234 50.3% 113 210.0% 845 793 6.6%
12 Amortization of Identifiable 788 893 -11.7% 788 0.0% 3,221 3,653 -11.8%
Intangibles
13 Other Operating 2,668 2,180 22.4% 2,666 0.1% 10,715 9,471 13.1%
------------------------ ------------ ------------------------
14 Sub-total 26,166 24,868 5.2% 25,203 3.8% 103,099 99,090 4.0%
15 VISA Litigation 0 2,338 n/m 0 n/m (2,338) 2,338 n/m
------------------------ ------------ ------------------------
16 Total Noninterest Expense $26,166 $27,206 -3.8% $25,203 3.8% $100,761 $101,428 -0.7%
======================== ============ ========================
17 Full Time Equivalent Staff 886 868 2.1% 899 -1.4% 891 887 0.5%
18 Average (Avg.) Assets / $4,575 $5,250 -12.9% $4,602 -0.6% $4,736 $5,233 -9.5%
Full Time Equivalent Staff
19 Operating Ratios:
20 FTE Revenue / Full Time $268 $281 -4.6% $94 185.1% $218 $276 -21.0%
Equiv. Staff (annualized)
21 Noninterest Expense / Avg. 2.85% 2.62% 2.68% 2.64% 2.41%
Earning Assets (annualized)
22 Noninterest Expense / 43.8% 44.3% n/m 51.9% 41.5%
FTE Revenues
8. Provision for Loan Losses.
(dollars in thousands)
Q4'08 / Q4'08 / 12/31'08YTD
Q4'08 Q4'07 Q4'07 Q3'08 Q3'08 12/31'08YTD 12/31'07YTD 12/31'07YTD
------------------------------------------------------------------------------------------------
1 Provision for Loan Losses $900 $475 n/m $600 50.0% $2,700 $700 n/m
2 Gross Loan Losses 6,881 1,162 492.2% 1,786 285.3% 12,413 5,681 118.5%
3 Net Loan Losses 6,527 907 619.6% 1,467 344.9% 10,736 3,524 204.7%
4 Recoveries / Gross 5% 22% 18% 14% 38%
Loan Losses
5 Average (Avg.) Total Loans $2,399,741 $2,496,403 -3.9% $2,414,317 -0.6% $2,432,556 $2,511,763 -3.2%
6 Net Loan Losses / Avg. Loans 1.08% 0.14% 0.24% 0.44% 0.14%
(annualized)
7 Provision for Loan Losses / 0.15% 0.08% 0.10% 0.11% 0.03%
Avg. Loans (annualized)
8 Provision for Loan Losses / 13.8% 52.4% 40.9% 25.1% 19.9%
Net Loan Losses
9. Credit Quality.
(dollars in thousands)
12/31/08 / 12/31/08 /
12/31/08 12/31/07 12/31/07 9/30/08 9/30/08 6/30/08 3/31/08 9/30/07
------------------------------------------------------------------------------------------------
1 Nonperforming Nonaccrual Loans $8,883 $3,164 180.8% $12,132 -26.8% $11,713 $3,728 $3,132
Nonperforming Nonaccrual
2 Loans 1,143 1,688 -32.3% 73 1465.8% 28 1,652 1,695
------------------------ ------------ ------------------------------------
3 Total Nonaccrual Loans 10,026 4,852 106.6% 12,205 -17.9% 11,741 5,380 4,827
4 Accruing Loans 90+ Days 755 297 154.2% 363 108.0% 254 268 251
Past Due ------------------------ ------------ ------------------------------------
5 Total Nonperforming Loans 10,781 5,149 109.4% 12,568 -14.2% 11,995 5,648 5,078
6 Repossessed Loan Collateral 3,505 613 n/m 814 n/m 920 954 613
7 Total Nonperforming Loans & ------------------------ ------------ ------------------------------------
8 Repossessed Loan $14,286 $5,762 147.9% $13,382 6.8% $12,915 $6,602 $5,691
Collateral ======================== ============ ====================================
9 Classified Loans $34,028 $24,419 39.4% $38,070 -10.6% $33,546 $33,303 $21,403
======================== ============ ====================================
10 Allowance for Loan Losses $44,470 $52,506 -15.3% $50,097 -11.2% $50,964 $52,234 $52,938
11 Total Loans Outstanding 2,382,426 2,502,976 -4.8% 2,408,704 -1.1% 2,431,011 2,448,320 2,511,374
12 Total Assets 4,032,934 4,558,959 -11.5% 4,089,482 -1.4% 4,188,868 4,342,302 4,657,016
13 Allowance for Loan Losses / 1.87% 2.10% 2.08% 2.10% 2.13% 2.11%
Total Loans
14 Nonperforming Loans / 0.45% 0.21% 0.52% 0.49% 0.23% 0.20%
Total Loans
15 Nonperforming Loans & Repossessed
16 Loan Collateral / 0.35% 0.13% 0.33% 0.31% 0.15% 0.12%
Total Assets
17 Allowance/Nonperforming Loans 412% 1020% 399% 425% 925% 1042%
18 Allowance for Loan Losses / 131% 215% 132% 152% 157% 247%
Classified Loans
19 Classified Loans /
20 (Equity + Allowance for 7.5% 5.5% 8.5% 7.3% 7.4% 4.7%
Loan Losses)
Page 11
WESTAMERICA BANCORPORATION Public Information January 15, 2009
FINANCIAL HIGHLIGHTS
December 31, 2008
10.Capital.
(dollars in thousands, except per-share amounts)
12/31/08 / 12/31/08 /
12/31/08 12/31/07 12/31/07 9/30/08 9/30/08 6/30/08 3/31/08 9/30/07
------------------------------------------------------------------------------------------------
1 Shareholders' Equity $409,852 $394,603 3.9% $399,128 2.7% $410,445 $399,109 $403,651
2 Tier I Regulatory Capital 288,859 278,970 3.5% 278,117 3.9% 290,864 283,768 283,015
3 Total Regulatory Capital 324,455 318,089 2.0% 314,023 3.3% 327,631 321,819 322,598
4 Total Assets 4,032,934 4,558,959 -11.5% 4,089,482 -1.4% 4,188,868 4,342,302 4,657,016
5 Risk-Adjusted Assets 2,758,866 2,986,737 -7.6% 2,790,304 -1.1% 2,845,553 2,914,007 3,017,668
6 Shareholders' Equity / 10.16% 8.66% 9.76% 9.80% 9.19% 8.67%
Total Assets
7 Shareholders' Equity / 17.20% 15.77% 16.57% 16.88% 16.30% 16.07%
Total Loans
8 Tier I Capital /Total Assets 7.16% 6.12% 6.80% 6.94% 6.53% 6.08%
9 Tier I Capital / 10.47% 9.33% 9.97% 10.22% 9.74% 9.38%
Risk-Adjusted Assets
10 Total Capital / Risk-Adjusted 11.76% 10.64% 11.25% 11.51% 11.04% 10.69%
Assets
11 Tangible Equity Ratio 7.01% 5.76% 6.62% 6.71% 6.18% 5.82%
12 Shares Outstanding 28,880 29,018 -0.5% 28,895 -0.1% 28,889 28,772 29,378
13 Book Value Per Share $14.19 $13.60 4.4% $13.81 2.7% $14.21 $13.87 $13.74
14 Market Value Per Share $51.15 $44.55 14.8% $57.53 -11.1% $52.59 $52.60 $49.81
15 Share Repurchase Programs
(shares in thousands)
Q4'08 / Q4'08 / 12/31'08YTD
Q4'08 Q4'07 Q4'07 Q3'08 Q3'08 12/31'08YTD 12/31'07YTD 12/31'07YTD
------------------------------------------------------------------------------------------------
16 Total Shares Repurchased / 16 491 -96.8% 108 -85.4% 719 1,886 -61.9%
Canceled
17 Average Repurchase Price $50.74 $44.88 13.1% $50.10 1.3% $49.83 $46.18 7.9%
18 Net Shares Repurchased 15 360 n/m (6) n/m 138 1,529 -91.0%
(Issued)
11.Period-End Balance Sheets.
(unaudited, dollars in thousands)
12/31/08 / 12/31/08 /
12/31/08 12/31/07 12/31/07 9/30/08 9/30/08 6/30/08 3/31/08 9/30/07
------------------------------------------------------------------------------------------------
1 Assets:
2 Cash and Money Market $139,224 $210,097 -33.7% $142,678 -2.4% $134,432 $139,957 $219,960
Assets
3 Investment Securities 288,454 532,821 -45.9% 304,871 -5.4% 391,028 477,686 570,086
Available For Sale
4 Investment Securities 949,325 1,045,288 -9.2% 962,621 -1.4% 978,298 1,016,613 1,081,009
Held to Maturity
5 Loans, gross 2,382,426 2,502,976 -4.8% 2,408,704 -1.1% 2,431,011 2,448,320 2,511,374
6 Allowance For Loan Losses (44,470) (52,506) -15.3% (50,097) -11.2% (50,964) (52,234) (52,938)
------------------------ ------------ ------------------------------------
7 Loans, net 2,337,956 2,450,470 -4.6% 2,358,607 -0.9% 2,380,047 2,396,086 2,458,436
------------------------ ------------ ------------------------------------
8 Premises and Equipment 27,351 28,380 -3.6% 26,789 2.1% 27,460 28,031 28,666
9 Identifiable Intangible 15,208 18,429 -17.5% 15,996 -4.9% 16,784 17,571 19,322
Assets
10 Goodwill 121,699 121,719 -0.0% 121,702 -0.0% 121,719 121,719 121,719
11 Interest Receivable and 153,717 151,755 1.3% 156,218 -1.6% 139,100 144,639 157,818
Other Assets ------------------------ ------------ ------------------------------------
12 Total Assets $4,032,934 $4,558,959 -11.5% $4,089,482 -1.4% $4,188,868 $4,342,302 $4,657,016
======================== ============ ====================================
13 Liabilities and Shareholders' Equity:
14 Deposits:
15 Noninterest Bearing $1,158,632 $1,245,500 -7.0% $1,173,852 -1.3% $1,195,004 $1,202,165 $1,251,572
16 Interest-Bearing 525,153 544,411 -3.5% 518,944 1.2% 527,109 542,468 549,263
Transaction
17 Savings 745,496 760,006 -1.9% 751,512 -0.8% 754,677 749,471 806,797
18 Time 665,773 714,873 -6.9% 685,480 -2.9% 686,702 700,534 732,582
------------------------ ------------ ------------------------------------
19 Total Deposits 3,095,054 3,264,790 -5.2% 3,129,788 -1.1% 3,163,492 3,194,638 3,340,214
------------------------ ------------ ------------------------------------
20 Short-Term Borrowed Funds 457,275 798,599 -42.7% 487,973 -6.3% 514,131 635,264 815,101
21 Debt Financing and Notes 26,631 36,773 -27.6% 26,665 -0.1% 36,699 36,736 36,809
Payable
22 Liability For Interest, 44,122 64,194 -31.3% 45,928 -3.9% 64,101 76,555 61,241
Taxes and Other ------------------------ ------------ ------------------------------------
23 Total Liabilities 3,623,082 4,164,356 -13.0% 3,690,354 -1.8% 3,778,423 3,943,193 4,253,365
------------------------ ------------ ------------------------------------
24 Shareholders' Equity:
25 Paid-In Capital 354,674 337,201 5.2% 354,537 0.0% 351,157 339,468 337,627
26 Accumulated Other Comprehensive
27 Income (Loss) 1,040 (4,520) n/m 551 88.9% 1,074 (3,954) (412)
28 Retained Earnings 54,138 61,922 -12.6% 44,040 22.9% 58,214 63,595 66,436
------------------------ ------------ ------------------------------------
29 Total Shareholders' Equity 409,852 394,603 3.9% 399,128 2.7% 410,445 399,109 403,651
------------------------ ------------ ------------------------------------
30 Total Liabilities and $4,032,934 $4,558,959 -11.5% $4,089,482 -1.4% $4,188,868 $4,342,302 $4,657,016
Shareholders' Equity ======================== ============ ====================================
Page 12
WESTAMERICA BANCORPORATION Public Information January 15, 2009
FINANCIAL HIGHLIGHTS
December 31, 2008
12.Income Statements.
(unaudited, dollars in thousands, except per-share amounts)
Q4'08 / Q4'08 / 12/31'08YTD
Q4'08 Q4'07 Q4'07 Q3'08 Q3'08 12/31'08YTD 12/31'07YTD 12/31'07YTD
------------------------------------------------------------------------------------------------
1 Interest and Fee Income:
2 Loans $35,942 $40,214 -10.6% $36,710 -2.1% $148,659 $162,242 -8.4%
3 Money Market Assets and 1 3 n/m 1 n/m 3 7 n/m
Funds Sold
4 Investment Securities 3,426 6,528 -47.5% 4,041 -15.2% 18,211 27,205 -33.1%
Available For Sale
5 Investment Securities 10,076 11,116 -9.4% 10,223 -1.4% 41,596 46,418 -10.4%
Held to Maturity ------------------------ ------------ ------------------------
6 Total Interest Income 49,445 57,861 -14.5% 50,975 -3.0% 208,469 235,872 -11.6%
------------------------ ------------ ------------------------
7 Interest Expense:
8 Transaction Deposits 252 515 -51.0% 346 -27.2% 1,397 2,093 -33.2%
9 Savings Deposits 763 1,636 -53.4% 1,048 -27.2% 4,245 6,144 -30.9%
10 Time Deposits 2,556 6,975 -63.4% 3,566 -28.3% 15,540 29,612 -47.5%
11 Short-Term Borrowed Funds 598 6,779 -91.2% 1,954 -69.4% 9,958 32,393 -69.3%
12 Debt Financing and Notes 423 578 -26.9% 524 -19.3% 2,103 2,313 -9.1%
Payable
------------------------ ------------ ------------------------
13 Total Interest Expense 4,592 16,483 -72.1% 7,438 -38.3% 33,243 72,555 -54.2%
------------------------ ------------ ------------------------
14 Net Interest Income 44,853 41,378 8.4% 43,537 3.0% 175,226 163,317 7.3%
------------------------ ------------ ------------------------
15 Provision for Loan Losses 900 475 n/m 600 50.0% 2,700 700 n/m
------------------------ ------------ ------------------------
16 Noninterest Income:
17 Service Charges on Deposit 7,383 7,422 -0.5% 7,555 -2.3% 29,762 30,235 -1.6%
Accounts
18 Merchant Credit Card 2,623 2,817 -6.9% 2,611 0.4% 10,525 10,841 -2.9%
19 ATM Fees & Interchange 685 709 -3.4% 756 -9.4% 2,923 2,824 3.5%
20 Debit Card Fees 917 972 -5.6% 970 -5.4% 3,769 3,797 -0.7%
21 Financial Services 141 265 -46.8% 186 -24.3% 830 1,321 -37.2%
Commissions
22 Mortgage Banking 19 32 -41.8% 39 -51.8% 125 124 0.5%
23 Trust Fees 255 303 -15.9% 293 -13.0% 1,227 1,281 -4.2%
24 Net Losses From Equity (3,269) 0 n/m (41,206) n/m (56,955) 0 n/m
Securities
25 Other 1,154 2,137 -46.0% 1,297 -11.0% 5,738 8,855 -35.2%
------------------------ ------------ ------------------------
26 Total Noninterest Income 9,908 14,657 n/m (27,499) n/m (2,056) 59,278 n/m
------------------------ ------------ ------------------------
27 Noninterest Expense:
28 Salaries and Related 12,823 12,366 3.7% 12,621 1.6% 51,492 50,142 2.7%
Benefits
29 Occupancy 3,405 3,386 0.6% 3,465 -1.7% 13,703 13,346 2.7%
30 Equipment 976 934 4.5% 903 8.1% 3,801 4,302 -11.7%
31 Data Processing 2,117 2,202 -3.8% 2,098 0.9% 8,440 7,069 19.4%
32 Professional Fees 920 534 72.3% 485 89.7% 2,624 1,889 38.9%
33 VISA Litigation 0 2,338 n/m 0 n/m (2,338) 2,338 n/m
34 Other 5,925 5,446 8.8% 5,631 5.2% 23,039 22,342 3.1%
------------------------ ------------ ------------------------
35 Total Noninterest Expense 26,166 27,206 -3.8% 25,203 3.8% 100,761 101,428 -0.7%
------------------------ ------------ ------------------------
36 Income (Loss) Before 27,695 28,354 -2.3% (9,765) n/m 69,709 120,467 -42.1%
Income Taxes
37 Income Tax Provision 6,885 6,522 5.6% (9,809) n/m 9,874 30,691 -67.8%
(Benefit) ------------------------ ------------ ------------------------
38 Net Income $20,810 $21,832 -4.7% $44 n/m $59,835 $89,776 -33.4%
======================== ============ ========================
39 Average Shares Outstanding 28,884 29,213 -1.1% 28,908 -0.1% 28,892 29,753 -2.9%
40 Diluted Average Shares 29,218 29,575 -1.2% 29,273 -0.2% 29,273 30,165 -3.0%
Outstanding
41 Per Share Data:
42 Basic Earnings $0.72 $0.75 -4.0% $0.00 n/m $2.07 $3.02 -31.5%
43 Diluted Earnings 0.71 0.74 -4.1% 0.00 n/m 2.04 2.98 -31.5%
44 Dividends Paid 0.35 0.34 2.9% 0.35 0.0% 1.39 1.36 2.2%