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 14, 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 July 14, 2009
Item 2.02: Results of Operations and Financial Condition
----------------------------------------------------------
On July 14, 2009 Westamerica Bancorporation announced earnings for the second
quarter of 2009. 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 15, 2009
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INDEX TO EXHIBITS
-----------------
Sequentially
Exhibit No. Description Number Page
----------- ------------------------- -------------
(99.1) Press release dated 5-15
July 14, 2009
Page 5
FOR IMMEDIATE RELEASE
July 14, 2009
WESTAMERICA BANCORPORATION REPORTS
SECOND QUARTER 2009 RESULTS
San Rafael, CA: Westamerica Bancorporation (NASDAQ: WABC), parent company of
Westamerica Bank, today reported second quarter 2009 net income applicable to
common equity of $22.1 million, or $0.75 diluted earnings per common share
(EPS), a return on average common equity of 19 percent (annualized). Second
quarter 2009 results include FDIC insurance assessments of $3.2 million,
compared to $157 thousand in the prior quarter. The increase in FDIC assessments
was equivalent to $0.06 EPS. Second quarter 2009 results include the operations
of the former County Bank, which was acquired from the Federal Deposit Insurance
Corporation (FDIC) on February 6, 2009.
"The integration of the acquired County Bank is proceeding in accordance with
our plans. We expect branch and systems integrations to be completed in the
third quarter 2009. For the second quarter 2009, our net interest margin of 5.34
percent was stable with the prior quarter's margin of 5.35 percent.
Westamerica's credit management practices remain conservative; our $43 million
allowance for loan losses is equivalent to 143 percent of non-performing loans
which are not covered by FDIC loss sharing agreements," said Chairman, President
and CEO David Payne. "Our common shareholders' equity grew $22.5 million in the
second quarter 2009. Westamerica intends to redeem a portion of the preferred
stock issued to the United States Treasury this month, which will increase
returns to common shareholders," Payne added.
Second quarter 2009 results compare to first quarter of 2009 net income
applicable to common equity of $52.2 million and EPS of $1.80. First quarter
2009 results include a gain recognized under Financial Accounting Standard 141R
and a federal income tax refund which, combined, were equivalent to $1.00 EPS.
The estimated fair value of County Bank assets purchased exceeded the estimated
fair value of liabilities assumed, which resulted in the FAS 141R gain.
Page 6
Net interest income on a fully taxable equivalent basis (FTE) was $62.3 million
for the second quarter of 2009, compared to $59.4 million (FTE) for the prior
quarter and $49.7 million (FTE) reported for the second quarter of 2008. The
second quarter 2009 annualized net interest margin was 5.34 percent (FTE),
compared to 5.35 percent (FTE) for the prior quarter and 5.16 percent (FTE) for
the second quarter of 2008. Net interest income for the six months ended June
30, 2009 was $121.7 million (FTE) generating an annualized margin of 5.35
percent (FTE), compared to net interest income of $97.7 million (FTE) and an
annualized margin of 4.97 percent (FTE) for the six months ended June 30, 2008.
The improved net interest income is attributable to earning asset growth from
the County Bank acquisition and a higher net interest margin. The net interest
margin has increased in the first half of 2009 relative to the first half of
2008 as lower short-term interest rates caused funding costs to decline at a
faster pace than earning asset yields.
The provision for loan losses was $4.4 million for the six months ended June 30,
2009 compared to $1.2 million for the six months ended June 30, 2008. Net loan
charge-offs for the six months ended June 30, 2009 totaled $5.7 million, or 0.49
percent (annualized) of average non-covered loans, compared to $2.7 million, or
0.22 percent (annualized) of average non-covered loans for the six months ended
June 30, 2008. Non-covered non-performing loans at June 30, 2009 totaled $30.2
million, increased from $11.7 million at March 31, 2009. The increase in non-
covered non-performing loans is primarily due to one residential construction
loan relationship with four single family properties ($6 million), seven
consumer mortgages ($3.6 million), and one commercial real estate relationship
($3.4 million). Non-covered classified loans, which include loans graded
"substandard," "doubtful" and "loss" using regulatory guidelines, totaled $53.4
million at June 30, 2009 compared to $41.5 million at March 31, 2009.
Noninterest income for the second quarter 2009 was $16.4 million, compared to
$64.0 million in the first quarter 2009 which included the $48.8 million FAS
141R gain. Service charges on deposit accounts, ATM fees and debit card fees
have increased following the assumption of County Bank deposit accounts.
Noninterest expense for the second quarter of 2009 totaled $38.7 million,
compared to $34.1 million for the prior quarter and $26.3 million for the second
quarter of 2008. The increase in expenses is primarily due to the acquisition of
County Bank and higher FDIC insurance assessments. FDIC insurance assessments
were $3.2 million, $157 thousand, and $133 thousand in the second quarter 2009,
first quarter 2009, and second quarter 2008, respectively. Management
anticipates quarterly FDIC insurance assessments of $1.5 million beginning in
the third quarter, subject to changes in the assessment rate structure and any
additional special assessments. Relative to the second quarter 2009, Management
expects lower noninterest expenses, excluding FDIC insurance assessments, in the
third and fourth quarters of 2009 as County Bank branch and systems integrations
are completed in the third quarter 2009.
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Shareholders' equity at June 30, 2009 was $559 million, increased from $537
million at March 31, 2009. The increase in shareholders' equity is attributable
to the retention of earnings in excess of shareholder dividends and the exercise
of stock options. Westamerica paid a regular quarterly dividend of $0.35 per
common share in May 2009, totaling $10.2 million. At June 30, 2009, Westamerica
Bancorporation's total regulatory capital ratio was 15.9 percent and Westamerica
Bank's total regulatory capital ratio was 15.1 percent; both measurements exceed
the "well-capitalized" level of ten percent under regulatory requirements.
Westamerica Bancorporation, through its wholly owned subsidiary Westamerica
Bank, operates commercial banking offices throughout Northern and Central
California. At June 30, 2009, the Company's total assets and total loans
outstanding were $5.2 billion and $3.4 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:
This press release contains forward-looking statements about Westamerica
Bancorporation for which it claims the protection of the safe harbor provisions
contained in the Private Securities Litigation Reform Act of 1995. Examples of
forward-looking statements include, but are not limited to: (i) projections of
revenues, expenses, income or loss, earnings or loss per share, the payment or
nonpayment of dividends, capital structure and other financial items; (ii)
statements of plans, objectives and expectations of the Company or its
management or board of directors, including those relating to products or
services; (iii) statements of future economic performance; and (iv) statements
of assumptions underlying such statements. Words such as "believes,
"anticipates", "expects", "intends, "targeted", "projected", "continue",
"remain", "will", "should", "may" and other similar expressions are intended to
identify forward-looking statements but are not the exclusive means of
identifying such statements.
These forward-looking statements are based on Management's current knowledge and
belief and include information concerning the Company's possible or assumed
future financial condition and results of operations. A number of factors, some
of which are beyond the Company's ability to predict or control, could cause
future results to differ materially from those contemplated. The Company's most
recent quarterly report for the quarter ended March 31, 2009 and annual report
for the year ended December 31, 2008 filed with the Securities and Exchange
Commission describe some of these factors. These factors include but are not
limited to (1) the length and severity of current difficulties in the national
and California economies and the effects of federal and state government efforts
to address those difficulties; (2) continued low liquidity levels in capital
markets; (3) fluctuations in asset prices including, but not limited to, stocks,
bonds, real estate, and commodities; (4) the effect of acquisitions and
integration of acquired businesses including the recently acquired County Bank;
(5) economic uncertainty created by terrorist threats and attacks on the United
States, the actions taken in response, and the uncertain effect of these events
on the national and regional economies; (6) changes in the interest rate
environment; (7) changes in the regulatory environment; (8) significantly
increasing competitive pressure in the banking industry; (9) operational risks
including data processing system failures or fraud; (10) volatility of rate
sensitive loans, deposits and investments; (11) asset/liability management risks
and liquidity risks; and (12) changes in the securities markets. The Company
undertakes no obligation to update any forward-looking statements to reflect
circumstances or events that occur after the date forward-looking statements are
made.
Forward-looking statements speak only as of the date they are made.
#####
Page 9
WESTAMERICA BANCORPORATION Public Information July 14, 2009
FINANCIAL HIGHLIGHTS
June 30, 2009
1. Net Income Summary.
(dollars in thousands except per-share amounts)
Q2'09 / Q2'09 / 6/30'09YTD /
Q2'09 Q2'08 Q2'08 Q1'09 Q1'09 6/30'09YTD 6/30'08YTD 6/30'08YTD
------------------------------------------------------------------------------------------------
1 Net Interest Income (Fully
Taxable Equivalent) $62,318 $49,731 25.3% $59,359 5.0% $121,677 $97,713 24.5%
2 Provision for Loan Losses 2,600 600 333.3% 1,800 44.4% 4,400 1,200 266.7%
3 Noninterest Income:
4 Net Loss From Equity
Securities 0 (18,178) n/m 0 n/m 0 (12,480) n/m
5 FAS 141R Gain 0 0 n/m 48,844 n/m 48,844 0 n/m
6 Other 16,386 14,335 14.3% 15,124 8.3% 31,510 28,015 12.5%
------------------------ ------------ ------------------------
7 Total Noninterest Income
(Loss) 16,386 (3,843) n/m 63,968 n/m 80,354 15,535 n/m
8 Noninterest Expense:
9 VISA Litigation 0 0 n/m 0 n/m 0 (2,338) n/m
10 Other 38,666 26,337 46.8% 34,123 13.3% 72,789 51,731 40.7%
------------------------ ------------ ------------------------
11 Total Noninterest Expense 38,666 26,337 46.8% 34,123 13.3% 72,789 49,393 47.4%
------------------------ ------------ ------------------------
12 Income Before Taxes (FTE) 37,438 18,951 97.5% 87,404 -57.2% 124,842 62,655 99.3%
13 Income Tax Provision (FTE) 14,255 6,749 111.2% 34,579 -58.8% 48,834 23,675 106.3%
------------------------ ------------ ------------------------
14 Net Income 23,183 12,202 90.0% 52,825 -56.1% 76,008 38,980 95.0%
15 Preferred Stock Dividends
and Discount Accretion 1,107 0 n/m 578 91.5% 1,685 0 n/m
------------------------ ------------ ------------------------
16 Net Income Applicable to
Common Equity $22,076 $12,202 80.9% $52,247 -57.7% $74,323 $38,980 90.7%
======================== ============ ========================
17 Average Common Shares
Outstanding 29,126 28,916 0.7% 28,876 0.9% 29,002 28,888 0.4%
18 Diluted Average Common Shares
Outstanding 29,403 29,392 0.0% 29,105 1.0% 29,254 29,301 -0.2%
19 Operating Ratios:
20 Basic Earnings Per
Common Share $0.76 $0.42 81.0% $1.81 -58.0% $2.56 $1.35 89.6%
21 Diluted Earnings Per
Common Share 0.75 0.42 78.6% 1.80 -58.2% 2.54 1.33 91.0%
22 Return On Assets
(annualized) 1.68% 1.15% 4.24% 2.92% 1.80%
23 Return On Common Equity
(annualized) 19.0% 11.9% 48.0% 33.1% 19.4%
24 Net Interest Margin (FTE)
(annualized) 5.34% 5.16% 5.35% 5.35% 4.97%
25 Efficiency Ratio (FTE) 49.1% 57.4% 27.7% 36.0% 43.6%
26 Dividends Paid Per
Common Share $0.35 $0.35 0.0% $0.36 -2.8% $0.71 $0.69 2.9%
27 Common Dividend Payout Ratio 47% 83% 20% 28% 52%
2. Net Interest Income.
(dollars in thousands)
Q2'09 / Q2'09 / 6/30'09YTD /
Q2'09 Q2'08 Q2'08 Q1'09 Q1'09 6/30'09YTD 6/30'08YTD 6/30'08YTD
------------------------------------------------------------------------------------------------
1 Interest and Fee Income (FTE) $68,063 $58,117 17.1% $64,192 6.0% $132,255 $118,927 11.2%
2 Interest Expense 5,745 8,386 -31.5% 4,833 18.9% 10,578 21,214 -50.1%
------------------------ ------------ ------------------------
3 Net Interest Income (FTE) $62,318 $49,731 25.3% $59,359 5.0% $121,677 $97,713 24.5%
======================== ============ ========================
4 Average Earning Assets $4,678,615 $3,865,110 21.0% $4,475,371 4.5% $4,577,554 $3,946,665 16.0%
5 Average Interest-Bearing
Liabilities 3,311,650 2,590,406 27.8% 3,155,685 4.9% 3,234,098 2,680,966 20.6%
6 Yield on Earning Assets (FTE)
(annualized) 5.83% 6.03% 5.79% 5.82% 6.05%
7 Cost of Funds (annualized) 0.49% 0.87% 0.44% 0.47% 1.08%
8 Net Interest Margin (FTE)
(annualized) 5.34% 5.16% 5.35% 5.35% 4.97%
9 Interest Expense/Interest-Bearing
Liabilities (annualized) 0.70% 1.30% 0.62% 0.66% 1.58%
10 Net Interest Spread (FTE)
(annualized) 5.13% 4.73% 5.17% 5.16% 4.47%
3. Loans & Other Earning Assets.
(average volume, dollars in thousands)
Q2'09 / Q2'09 / 6/30'09YTD /
Q2'09 Q2'08 Q2'08 Q1'09 Q1'09 6/30'09YTD 6/30'08YTD 6/30'08YTD
------------------------------------------------------------------------------------------------
1 Total Assets $5,265,101 $4,257,325 23.7% $4,998,964 5.3% $5,133,941 $4,345,630 18.1%
2 Total Earning Assets 4,678,615 3,865,110 21.0% 4,475,371 4.5% 4,577,554 3,946,665 16.0%
3 Total Loans 3,383,654 2,439,062 38.7% 3,135,944 7.9% 3,260,483 2,458,364 32.6%
4 Commercial Loans 944,257 609,082 55.0% 885,232 6.7% 914,907 613,037 49.2%
5 Commercial Real Estate Loans 1,361,420 843,793 61.3% 1,191,260 14.3% 1,276,810 847,149 50.7%
6 Consumer Loans 1,077,977 986,187 9.3% 1,059,452 1.7% 1,068,766 998,178 7.1%
7 Total Investment Securities 1,294,961 1,426,048 -9.2% 1,339,427 -3.3% 1,317,071 1,488,301 -11.5%
8 Available For Sale
(Market Value) 433,065 433,190 -0.0% 399,824 8.3% 416,670 475,704 -12.4%
9 Held To Maturity 861,896 992,858 -13.2% 939,603 -8.3% 900,401 1,012,597 -11.1%
10 HTM Unrealized Gain
(Loss) at Period-End 243 (3,053) n/m 1,768 n/m 243 (3,053) n/m
11 Loans / Deposits 80.5% 76.6% 81.2% 80.8% 76.9%
Page 10
WESTAMERICA BANCORPORATION Public Information July 14, 2009
FINANCIAL HIGHLIGHTS
June 30, 2009
4. Deposits & Other Interest-Bearing Liabilities.
(average volume, dollars in thousands)
Q2'09 / Q2'09 / 6/30'09YTD /
Q2'09 Q2'08 Q2'08 Q1'09 Q1'09 6/30'09YTD 6/30'08YTD 6/30'08YTD
------------------------------------------------------------------------------------------------
1 Total Deposits $4,202,607 $3,183,812 32.0% $3,862,435 8.8% $4,033,461 $3,198,079 26.1%
2 Noninterest Demand 1,333,412 1,186,921 12.3% 1,286,013 3.7% 1,309,844 1,193,262 9.8%
3 Interest-Bearing Transaction 741,084 547,574 35.3% 667,425 11.0% 704,458 546,995 28.8%
4 Savings 968,048 763,575 26.8% 877,729 10.3% 923,138 766,009 20.5%
5 Time greater than $100K 629,646 492,932 27.7% 664,474 -5.2% 642,747 496,934 29.3%
6 Time less than $100K 530,417 192,810 175.1% 366,794 44.6% 453,274 194,879 132.6%
7 Total Short-Term Borrowings 415,871 556,794 -25.3% 552,645 -24.7% 483,880 639,410 -24.3%
8 Fed Funds Purchased 119,837 414,632 -71.1% 314,856 -61.9% 216,807 490,024 -55.8%
9 Other Short-Term Funds 296,034 142,162 108.2% 237,789 24.5% 267,073 149,386 78.8%
10 Long-Term Debt 26,584 36,721 -27.6% 26,618 -0.1% 26,601 36,739 -27.6%
11 Shareholders' Equity 547,816 412,263 32.9% 485,054 12.9% 516,608 403,268 28.1%
12 Demand Deposits
/ Total Deposits 31.7% 37.3% 33.3% 32.5% 37.3%
13 Transaction & Savings Deposits
/ Total Deposits 72.4% 78.5% 73.3% 72.8% 78.4%
5. Interest Yields Earned & Rates Paid.
(dollars in thousands)
Q2'09 Q2'08
------------------------------------ Q1'09 ------------------------------------
Average Income/ Yield */ Yield*/ Average Income/ Yield*/
Volume Expense Rate Rate Volume Expense Rate
------------------------------------------------------------------------------------
1 Interest & Fees Income Earned
2 Total Earning Assets (FTE) $4,678,615 $68,063 5.83% 5.79% $3,865,110 $58,117 6.03%
3 Total Loans (FTE) 3,383,654 50,611 6.00% 5.97% 2,439,062 38,469 6.34%
4 Commercial Loans (FTE) 944,257 13,327 5.66% 5.86% 609,082 10,364 6.84%
5 Commercial Real Estate
Loans 1,361,420 22,316 6.57% 6.49% 843,793 14,972 7.14%
6 Consumer Loans 1,077,977 14,968 5.57% 5.49% 986,187 13,133 5.36%
7 Total Investment Securities
(FTE) 1,294,961 17,452 5.39% 5.38% 1,426,048 19,648 5.51%
8 Interest Expense Paid
9 Total Earning Assets 4,678,615 5,745 0.49% 0.44% 3,865,110 8,386 0.87%
10 Total Interest-Bearing
Liabilities 3,311,650 5,745 0.70% 0.62% 2,590,406 8,386 1.30%
11 Total Interest-Bearing
Deposits 2,869,195 4,468 0.62% 0.60% 1,996,891 5,325 1.07%
12 Interest-Bearing
Transaction 741,084 293 0.16% 0.12% 547,574 347 0.25%
13 Savings 968,048 1,059 0.44% 0.42% 763,575 1,105 0.58%
14 Time less than $100K 530,417 1,381 1.04% 1.61% 192,810 1,354 2.82%
15 Time greater than $100K 629,646 1,735 1.11% 0.75% 492,932 2,519 2.06%
16 Total Short-Term Borrowings 415,871 856 0.83% 0.46% 556,794 2,483 1.77%
17 Fed Funds Purchased 119,837 47 0.15% 0.19% 414,632 2,220 2.12%
18 Other Short-Term Funds 296,034 809 1.10% 0.81% 142,162 263 0.74%
19 Long-Term Debt 26,584 421 6.35% 6.35% 36,721 578 6.30%
20 Net Interest Income and Margin (FTE) $62,318 5.34% 5.35% $49,731 5.16%
* Annualized
6. Noninterest Income.
(dollars in thousands except per share amounts)
Q2'09 / Q2'09 / 6/30'09YTD /
Q2'09 Q2'08 Q2'08 Q1'09 Q1'09 6/30'09YTD 6/30'08YTD 6/30'08YTD
------------------------------------------------------------------------------------------------
1 Service Charges on Deposit
Accounts $9,116 $7,529 21.1% $8,422 8.2% $17,538 $14,825 18.3%
2 Merchant Credit Card Income 2,223 2,712 -18.0% 2,432 -8.6% 4,655 5,292 -12.0%
3 ATM Fees & Interchange 1,013 763 32.7% 813 24.7% 1,826 1,481 23.3%
4 Debit Card Fees 1,323 978 35.2% 1,066 24.1% 2,389 1,882 26.9%
5 Financial Services Commissions 137 274 -49.7% 154 -10.4% 291 504 -42.3%
6 Mortgage Banking Income 25 27 -7.5% 17 44.9% 42 67 -37.3%
7 Trust Fees 373 377 -1.2% 364 2.3% 737 680 8.3%
8 Other Income 2,176 1,675 29.9% 1,857 17.2% 4,032 3,284 22.8%
------------------------ ------------ ------------------------
9 Sub-total 16,386 14,335 14.3% 15,124 8.3% 31,510 28,015 12.5%
10 Net Loss From Equity
Securities 0 (18,178) n/m 0 n/m 0 (12,480) n/m
11 FAS 141R Gain 0 0 n/m 48,844 -100.0% 48,844 0 n/m
------------------------ ------------ ------------------------
12 Total Noninterest Income
(Loss) $16,386 ($3,843) n/m $63,968 n/m $80,354 $15,535 n/m
======================== ============ ========================
13 Operating Ratios:
14 Total Revenue (FTE) $78,704 $45,888 71.5% $123,327 -36.2% $202,031 $113,248 78.4%
15 Noninterest Income /
Revenue (FTE) 20.8% -8.4% 51.9% 39.8% 13.7%
16 Service Charges / Avg.
Deposits (annualized) 0.87% 0.95% 0.88% 0.88% 0.93%
17 Total Revenue Per Avg.
Common Share (annualized) $10.84 $6.38 69.8% $17.32 -37.4% $14.05 $7.88 78.2%
Page 11
WESTAMERICA BANCORPORATION Public Information July 14, 2009
FINANCIAL HIGHLIGHTS
June 30, 2009
7. Noninterest Expense.
(dollars in thousands)
Q2'09 / Q2'09 / 6/30'09YTD /
Q2'09 Q2'08 Q2'08 Q1'09 Q1'09 6/30'09YTD 6/30'08YTD 6/30'08YTD
------------------------------------------------------------------------------------------------
1 Salaries & Benefits $17,448 $13,065 33.5% $16,371 6.6% $33,819 $26,049 29.8%
2 Occupancy 5,413 3,443 57.2% 5,410 0.1% 10,823 6,833 58.4%
3 Equipment 1,607 1,001 60.6% 1,222 31.5% 2,829 1,922 47.2%
4 Outsourced Data Processing 2,378 2,105 13.0% 2,104 13.0% 4,482 4,225 6.1%
5 Courier 994 824 20.6% 898 10.7% 1,892 1,653 14.4%
6 Postage 531 390 36.2% 462 14.9% 993 773 28.5%
7 Telephone 478 346 38.2% 387 23.6% 865 681 26.9%
8 Professional Fees 779 683 14.0% 888 -12.3% 1,667 1,219 36.8%
9 Stationery & Supplies 374 285 31.1% 367 2.0% 741 564 31.4%
10 Loan Expense 205 233 -12.1% 994 -79.4% 1,199 403 197.7%
11 Operational Losses 221 196 12.9% 195 13.4% 416 380 9.5%
12 Amortization of Identifiable
Intangibles 1,695 788 115.2% 1,685 0.6% 3,380 1,646 105.4%
13 FDIC Insurance Assessment 3,221 133 n/m 157 n/m 3,378 228 n/m
14 Other Operating 3,322 2,845 16.8% 2,983 11.3% 6,305 5,155 22.3%
------------------------ ------------ ------------------------
15 Sub-total 38,666 26,337 46.8% 34,123 13.3% 72,789 51,731 40.7%
16 VISA Litigation 0 0 n/m 0 n/m 0 (2,338) n/m
------------------------ ------------ ------------------------
17 Total Noninterest Expense $38,666 $26,337 46.8% $34,123 13.3% $72,789 $49,393 47.4%
======================== ============ ========================
18 Average Full Time Equivalent
Staff 1,176 892 31.8% 1,144 2.8% 1,160 889 30.5%
19 Avg. Assets / Avg. Full Time
Equivalent Staff $4,477 $4,773 -6.2% $4,370 2.5% $4,426 $4,888 -9.5%
20 Operating Ratios:
21 FTE Revenue / Avg. Full Time
Equiv. Staff (annualized) $268 $207 29.5% $437 -38.7% $351 $256 37.1%
22 Noninterest Expense / Avg.
Earning Assets (annualized) 3.31% 2.74% 3.09% 3.21% 2.52%
23 Noninterest Expense /
FTE Revenues 49.1% 57.4% 27.7% 36.0% 43.6%
8. Provision for Loan Losses.
(dollars in thousands)
Q2'09 / Q2'09 / 6/30'09YTD /
Q2'09 Q2'08 Q2'08 Q1'09 Q1'09 6/30'09YTD 6/30'08YTD 6/30'08YTD
------------------------------------------------------------------------------------------------
1 Average Total Loans $3,383,654 $2,439,062 38.7% $3,135,944 7.9% $3,260,483 $2,458,364 32.6%
2 Avg Total Covered Loans (1) $1,045,360 $0 n/m $761,855 37.2% $904,195 $0 n/m
3 Avg. Total Non-Covered Loans $2,338,294 $2,439,062 -4.1% $2,374,089 -1.5% $2,356,288 $2,458,364 -4.2%
4 Non-Covered Loans:
5 Provision for Loan Losses $2,600 $600 333.3% $1,800 44.4% $4,400 $1,200 266.7%
6 Gross Loan Losses 3,937 2,208 78.3% 2,928 34.5% 6,865 3,745 83.3%
7 Net Loan Losses 3,281 1,870 75.5% 2,467 33.0% 5,748 2,742 109.6%
8 Recoveries / Gross Loan Losses 17% 15% 16% 16% 27%
9 Net Loan Losses / Avg
Non-Covered Loans (a) 0.56% 0.31% 0.42% 0.49% 0.22%
10 Provision for Loan Losses /
Avg. Non-Covered Loans (a) 0.45% 0.10% 0.31% 0.38% 0.10%
11 Provision for Loan Losses /
Net Loan Losses 79.2% 32.1% 73.0% 76.5% 43.8%
(1) Covered loans represent purchased loans on which losses are shared with the FDIC per a Loss-Sharing Agreement.
Covered loans were recorded at estimated fair value at the time of purchase.
(a) annualized
Page 12
WESTAMERICA BANCORPORATION Public Information July 14, 2009
FINANCIAL HIGHLIGHTS
June 30, 2009
9. Credit Quality.
(dollars in thousands)
6/30/09 / 6/30/09 /
6/30/09 6/30/08 6/30/08 3/31/09 3/31/09 12/31/08 9/30/08 3/31/08
------------------------------------------------------------------------------------------------
1 Non-Covered Nonperforming Loans:
2 Nonperforming Nonaccrual Loans $29,603 $11,713 152.7% $10,943 170.5% $8,883 $12,132 $3,728
3 Performing Nonaccrual Loans 26 28 -6.9% 27 -3.4% 1,143 73 1,652
------------------------ ------------ ------------------------------------
4 Total Nonaccrual Loans 29,629 11,741 152.3% 10,970 170.1% 10,026 12,205 5,380
5 Accruing Loans 90+ Days
Past Due 614 254 141.7% 777 -21.0% 755 363 268
------------------------ ------------ ------------------------------------
6 Total Non-Covered
Nonperforming Loans 30,243 11,995 152.1% 11,747 157.5% 10,781 12,568 5,648
7 Non-Covered Repossessed
Loan Collateral 4,715 920 412.7% 4,756 -0.9% 3,505 814 954
------------------------ ------------ ------------------------------------
8 Total Non-Covered
Nonperforming Assets 34,958 12,915 170.7% 16,503 111.8% 14,286 13,382 6,602
------------------------ ------------ ------------------------------------
9 Covered Nonperforming Loans (1):
10 Nonperforming Nonaccrual Loans 65,910 0 n/m 34,437 91.4% 0 0 0
11 Performing Nonaccrual Loans 16,901 0 n/m 3,632 365.3% 0 0 0
------------------------ ------------ ------------------------------------
12 Total Nonaccrual Loans 82,811 0 n/m 38,069 117.5% 0 0 0
13 Accruing Loans 90+ Days
Past Due 8,622 0 n/m 9,866 -12.6% 0 0 0
------------------------ ------------ ------------------------------------
14 Total Covered Nonperforming
Loans (1) 91,433 0 n/m 47,935 90.7% 0 0 0
15 Covered Repossessed Loan
Collateral (1) 13,691 0 n/m 13,391 2.2% 0 0 0
------------------------ ------------ ------------------------------------
16 Total Covered Nonperforming
Assets (1) 105,124 0 n/m 61,326 71.4% 0 0 0
------------------------ ------------ ------------------------------------
16 Total Nonperforming Assets $140,082 $12,915 n/m $77,829 80.0% $14,286 $13,382 $6,602
======================== ============ ====================================
17 Non-Covered Classified Loans $53,359 $33,546 59.1% $41,453 28.7% $34,028 $38,070 $33,303
18 Covered Classified Loans (1) 153,972 0 n/m 169,778 -9.3% 0 0 0
------------------------ ------------ ------------------------------------
19 Total Classified Loans $207,331 $33,546 n/m $211,231 -1.8% $34,028 $38,070 $33,303
======================== ============ ====================================
20 Total Non-Covered Loans
Outstanding $2,322,005 $2,431,011 -4.5% $2,356,237 -1.5% $2,382,426 $2,408,704 $2,448,320
21 Total Covered Loans
Outstanding (1) 1,031,643 0 n/m 1,089,071 -5.3% 0 0 0
------------------------ ------------ ------------------------------------
22 Total Loans Outstanding $3,353,648 $2,431,011 38.0% $3,445,308 -2.7% $2,382,426 $2,408,704 $2,448,320
======================== ============ ====================================
23 Total Assets $5,193,595 $4,188,868 24.0% $5,428,865 -4.3% $4,032,934 $4,089,482 $4,342,302
24 Non-Covered Loans:
25 Allowance for Loan Losses $43,122 $50,964 -15.4% $43,803 -1.6% $44,470 $50,097 $52,234
26 Allowance/Non-Covered Loans 1.86% 2.10% 1.86% 1.87% 2.08% 2.13%
27 Non-Covered Nonperforming Loans
/ Non-Covered Loans 1.30% 0.49% 0.50% 0.45% 0.52% 0.23%
28 Non-Covered Nonperforming
Assets/Total Assets 0.67% 0.31% 0.30% 0.35% 0.33% 0.15%
29 Allowance/Non-Covered
Nonperforming Loans 143% 425% 373% 412% 399% 925%
30 Covered Loans (1):
31 Fair Value Discount on
Covered Loans $114,276 n/a $149,290 n/a n/a n/a
32 Discount/Covered Loans, gross 9.97% n/a 12.06% n/a n/a n/a
33 Covered Nonperforming
Assets/Total Assets 2.02% n/a 1.13% n/a n/a n/a
34 Fair Value Discount on
Repossessed Loan Collateral $7 n/a $11,178 n/a n/a n/a
35 Discount/Covered Repossessed
Collateral, gross 0.05% n/a 45.50% n/a n/a n/a
(1) Covered loans and repossessed loan collateral represent purchased assets on which losses are shared with the FDIC
per a Loss-Sharing Agreement.
Covered assets were recorded at estimated fair value at the time of purchase.
Page 13
WESTAMERICA BANCORPORATION Public Information July 14, 2009
FINANCIAL HIGHLIGHTS
June 30, 2009
10.Capital.
(dollars in thousands, except per-share amounts)
6/30/09 / 6/30/09 /
6/30/09 6/30/08 6/30/08 3/31/09 3/31/09 12/31/08 9/30/08 3/31/08
------------------------------------------------------------------------------------------------
1 Shareholders' Equity $559,231 $410,445 36.2% $536,668 4.2% $409,852 $399,128 $399,109
2 Tier I Regulatory Capital 421,048 290,864 44.8% 394,829 6.6% 288,859 278,117 283,768
3 Total Regulatory Capital 458,182 327,631 39.8% 432,822 5.9% 324,455 314,023 321,819
4 Total Assets 5,193,595 4,188,868 24.0% 5,428,865 -4.3% 4,032,934 4,089,482 4,342,302
5 Risk-Adjusted Assets 2,890,291 2,845,553 1.6% 2,993,229 -3.4% 2,758,866 2,790,304 2,914,007
6 Shareholders' Equity /
Total Assets 10.77% 9.80% 9.89% 10.16% 9.76% 9.19%
7 Shareholders' Equity /
Total Loans 16.68% 16.88% 15.58% 17.20% 16.57% 16.30%
8 Tier I Capital /Total Assets 8.11% 6.94% 7.27% 7.16% 6.80% 6.53%
9 Tier I Capital /
Risk-Adjusted Assets 14.57% 10.22% 13.19% 10.47% 9.97% 9.74%
10 Total Capital /
Risk-Adjusted Assets 15.85% 11.51% 14.46% 11.76% 11.25% 11.04%
11 Tangible Common Equity Ratio 6.26% 6.71% 5.52% 7.01% 6.62% 6.18%
12 Common Shares Outstanding 29,214 28,889 1.1% 28,874 1.2% 28,880 28,895 28,772
13 Common Equity Per Share $16.31 $14.21 14.8% $15.73 3.7% $14.19 $13.81 $13.87
14 Market Value Per Common Share $49.61 $52.59 -5.7% $45.56 8.9% $51.15 $57.53 $52.60
15 Share Repurchase Programs
(shares in thousands)
Q2'09 / Q2'09 / 6/30'09YTD /
Q2'09 Q2'08 Q2'08 Q1'09 Q1'09 6/30'09YTD 6/30'08YTD 6/30'08YTD
------------------------------------------------------------------------------------------------
16 Total Shares Repurchased /
Canceled 6 172 -96.5% 16 -62.0% 22 596 -96.3%
17 Average Repurchase Price $51.90 $54.89 -5.4% $41.58 24.8% $44.42 $49.76 -10.7%
18 Net Shares (Issued) Repurchased (340) (117) 189.3% 6 n/m (334) 129 -359.1%
Page 14
WESTAMERICA BANCORPORATION Public Information July 14, 2009
FINANCIAL HIGHLIGHTS
June 30, 2009
11.Period-End Balance Sheets.
(unaudited, dollars in thousands) (unaudited, dollars in thousands)
6/30/09 / 6/30/09 /
6/30/09 6/30/08 6/30/08 3/31/09 3/31/09 12/31/08 9/30/08 3/31/08
------------------------------------------------------------------------------------------------
1 Assets:
2 Cash and Money Market Assets $169,291 $134,432 25.9% $149,566 13.2% $139,224 $142,678 $139,957
3 Investment Securities
Available For Sale 407,127 391,028 4.1% 436,343 -6.7% 288,454 304,871 477,686
4 Investment Securities
Held to Maturity 830,618 978,298 -15.1% 918,745 -9.6% 949,325 962,621 1,016,613
5 Non-Covered Loans 2,322,005 2,431,011 -4.5% 2,356,237 -1.5% 2,382,426 2,408,704 2,448,320
6 Allowance For Loan Losses (43,122) (50,964) -15.4% (43,803) -1.6% (44,470) (50,097) (52,234)
------------------------ ------------ ------------------------------------
7 Non-Covered Loans, net 2,278,883 2,380,047 -4.3% 2,312,434 -1.5% 2,337,956 2,358,607 2,396,086
8 Covered Loans, net (1) 1,031,643 0 n/m 1,089,071 -5.3% 0 0 0
------------------------ ------------ ------------------------------------
9 Total Loans 3,310,526 2,380,047 39.1% 3,401,505 -2.7% 2,337,956 2,358,607 2,396,086
10 Non-Covered Other Real Estate
Owned 4,715 920 n/m 4,756 -0.9% 3,505 814 954
11 Covered Other Real Estate
Owned, net (1) 13,691 0 n/m 13,391 2.2% 0 0 0
12 Premises and Equipment 26,490 27,460 -3.5% 26,729 -0.9% 27,351 26,789 28,031
13 Identifiable Intangible
Assets 39,934 16,784 137.9% 41,630 -4.1% 15,208 15,996 17,571
14 Goodwill 121,699 121,719 -0.0% 121,699 0.0% 121,699 121,702 121,719
15 Interest Receivable and
Other Assets 269,504 138,180 95.0% 314,501 -14.3% 150,212 155,404 143,685
------------------------ ------------ ------------------------------------
16 Total Assets $5,193,595 $4,188,868 24.0% $5,428,865 -4.3% $4,032,934 $4,089,482 $4,342,302
======================== ============ ====================================
17 Liabilities and Shareholders' Equity:
18 Deposits:
19 Noninterest Bearing $1,334,871 $1,195,004 11.7% $1,353,696 -1.4% $1,158,632 $1,173,852 $1,202,165
20 Interest-Bearing
Transaction 716,706 527,109 36.0% 730,153 -1.8% 525,153 518,944 542,468
21 Savings 968,408 754,677 28.3% 968,411 -0.0% 745,496 751,512 749,471
22 Time 1,137,152 686,702 65.6% 1,204,021 -5.6% 665,773 685,480 700,534
------------------------ ------------ ------------------------------------
23 Total Deposits 4,157,137 3,163,492 31.4% 4,256,281 -2.3% 3,095,054 3,129,788 3,194,638
------------------------ ------------ ------------------------------------
24 Short-Term Borrowed Funds 316,466 514,131 -38.4% 441,418 -28.3% 457,275 487,973 635,264
25 Federal Home Loan Bank
Advances 86,338 0 n/m 86,772 -0.5% 0 0 0
25 Debt Financing and
Notes Payable 26,564 36,699 -27.6% 26,598 -0.1% 26,631 26,665 36,736
26 Liability For Interest,
Taxes and Other 47,859 64,101 -25.3% 81,128 -41.0% 44,122 45,928 76,555
------------------------ ------------ ------------------------------------
27 Total Liabilities 4,634,364 3,778,423 22.7% 4,892,197 -5.3% 3,623,082 3,690,354 3,943,193
------------------------ ------------ ------------------------------------
28 Shareholders' Equity:
29 Preferred Stock 82,611 0 n/m 82,550 0.1% 0 0 0
30 Paid-In Capital 367,840 351,157 4.8% 356,326 3.2% 354,674 354,537 339,468
31 Accumulated Other Comprehensive
32 Income (Loss) 1,747 1,074 62.7% 2,274 -23.2% 1,040 551 (3,954)
33 Retained Earnings 107,033 58,214 83.9% 95,518 12.1% 54,138 44,040 63,595
------------------------ ------------ ------------------------------------
34 Total Common Equity 476,620 410,445 16.1% 454,118 5.0% 409,852 399,128 399,109
------------------------ ------------ ------------------------------------
35 Total Shareholders' Equity 559,231 410,445 36.2% 536,668 4.2% 409,852 399,128 399,109
------------------------ ------------ ------------------------------------
36 Total Liabilities and
Shareholders' Equity $5,193,595 $4,188,868 24.0% $5,428,865 -4.3% $4,032,934 $4,089,482 $4,342,302
======================== ============ ====================================
(1) Covered loans and repossessed loan collateral represent purchased assets on which losses are shared with the FDIC
per a Loss-Sharing Agreement.
Covered assets were recorded at estimated fair value at the time of purchase.
Page 15
WESTAMERICA BANCORPORATION Public Information July 14, 2009
FINANCIAL HIGHLIGHTS
June 30, 2009
12.Income Statements.
(unaudited, dollars in thousands, except per-share amounts)
Q2'09 / Q2'09 / 6/30'09YTD /
Q2'09 Q2'08 Q2'08 Q1'09 Q1'09 6/30'09YTD 6/30'08YTD 6/30'08YTD
------------------------------------------------------------------------------------------------
1 Interest and Fee Income:
2 Loans $49,523 $37,274 32.9% $45,095 9.8% $94,618 $76,006 24.5%
3 Money Market Assets and
Funds Sold 1 1 n/m 1 n/m 2 2 n/m
4 Investment Securities
Available For Sale 4,539 4,942 -8.1% 3,739 21.4% 8,278 10,744 -22.9%
5 Investment Securities
Held to Maturity 9,009 10,438 -13.7% 10,350 -13.0% 19,359 21,297 -9.1%
------------------------ ------------ ------------------------
6 Total Interest Income 63,072 52,655 19.8% 59,185 6.6% 122,257 108,049 13.1%
------------------------ ------------ ------------------------
7 Interest Expense:
8 Transaction Deposits 293 347 -15.6% 205 42.7% 498 799 -37.6%
9 Savings Deposits 1,059 1,105 -4.1% 900 17.6% 1,959 2,435 -19.5%
10 Time Deposits 3,116 3,873 -19.5% 2,679 16.3% 5,795 9,419 -38.5%
11 Short-Term Borrowed Funds 856 2,483 -65.5% 626 36.6% 1,482 7,405 -80.0%
12 Debt Financing and
Notes Payable 421 578 -27.1% 423 -0.3% 844 1,156 -27.0%
------------------------ ------------ ------------------------
13 Total Interest Expense 5,745 8,386 -31.5% 4,833 18.9% 10,578 21,214 -50.1%
------------------------ ------------ ------------------------
14 Net Interest Income 57,327 44,269 29.5% 54,352 5.5% 111,679 86,835 28.6%
------------------------ ------------ ------------------------
15 Provision for Loan Losses 2,600 600 n/m 1,800 44.4% 4,400 1,200 n/m
------------------------ ------------ ------------------------
16 Noninterest Income:
17 Service Charges on
Deposit Accounts 9,116 7,529 21.1% 8,422 8.2% 17,538 14,825 18.3%
18 Merchant Credit Card 2,223 2,712 -18.0% 2,432 -8.6% 4,655 5,292 -12.0%
19 ATM Fees & Interchange 1,013 763 32.7% 813 24.7% 1,826 1,481 23.3%
20 Debit Card Fees 1,323 978 35.2% 1,066 24.1% 2,389 1,882 26.9%
21 Financial Services Commissions 137 274 -49.7% 154 -10.4% 291 504 -42.3%
22 Mortgage Banking 25 27 -7.5% 17 44.9% 42 67 -37.3%
23 Trust Fees 373 377 -1.2% 364 2.3% 737 680 8.3%
24 Net Loss From Equity
Securities 0 (18,178) n/m 0 n/m 0 (12,480) n/m
25 FAS 141R Gain 0 0 n/m 48,844 n/m 48,844 0 n/m
26 Other 2,176 1,675 29.9% 1,857 17.2% 4,032 3,284 22.8%
------------------------ ------------ ------------------------
27 Total Noninterest Income (Loss) 16,386 (3,843) n/m 63,968 n/m 80,354 15,535 n/m
------------------------ ------------ ------------------------
28 Noninterest Expense:
29 Salaries and Related Benefits 17,448 13,065 33.5% 16,371 6.6% 33,819 26,049 29.8%
30 Occupancy 5,413 3,443 57.2% 5,410 0.1% 10,823 6,833 58.4%
31 Equipment 1,607 1,001 60.6% 1,222 31.5% 2,829 1,922 47.2%
32 Outsourced Data Processing 2,378 2,105 13.0% 2,104 13.0% 4,482 4,225 6.1%
33 Professional Fees 779 683 14.0% 888 -12.3% 1,667 1,219 36.8%
34 FDIC Insurance Assessment 3,221 133 n/m 157 n/m 3,378 228 n/m
35 VISA Litigation 0 0 n/m 0 n/m 0 (2,338) n/m
36 Other 7,820 5,907 32.4% 7,971 -1.9% 15,791 11,255 40.3%
------------------------ ------------ ------------------------
37 Total Noninterest Expense 38,666 26,337 46.8% 34,123 13.3% 72,789 49,393 47.4%
------------------------ ------------ ------------------------
38 Income Before Income Taxes 32,447 13,489 140.5% 82,397 -60.6% 114,844 51,777 121.8%
39 Income Tax Provision 9,264 1,287 n/m 29,572 n/m 38,836 12,797 n/m
------------------------ ------------ ------------------------
40 Net Income 23,183 12,202 90.0% 52,825 -56.1% 76,008 38,980 95.0%
41 Preferred Stock Dividends
and Discount Accretion 1,107 0 n/m 578 91.5% 1,685 0 n/m
------------------------ ------------ ------------------------
42 Net Income Applicable to
Common Equity $22,076 $12,202 90.7% $52,247 42.3% $74,323 $38,980 90.7%
======================== ============ ========================
43 Average Common Shares
Outstanding 29,126 28,916 0.7% 28,876 0.9% 29,002 28,888 0.4%
44 Diluted Average Common Shares
Outstanding 29,403 29,392 0.0% 29,105 1.0% 29,254 29,301 -0.2%
45 Per Common Share Data:
46 Basic Earnings $0.76 $0.42 81.0% $1.81 n/m $2.56 $1.35 89.6%
47 Diluted Earnings 0.75 0.42 78.6% 1.80 n/m 2.54 1.33 91.0%
48 Dividends Paid 0.35 0.35 0.0% 0.36 -2.8% 0.71 0.69 2.9%