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):
October 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 October 14, 2009
Item 2.02: Results of Operations and Financial Condition
----------------------------------------------------------
On October 14, 2009 Westamerica Bancorporation announced earnings for the third
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. The originally
distributed press release has been revised in respect to nonperforming assets.
At September 30, 2009, non-covered nonperforming assets have been revised to
$37,694 thousand from $36,334 thousand, and covered nonperforming assets have
been revised to $99,207 thousand from $98,659 thousand. Both revisions relate
to accruing loans 90 or more days past due.
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
October 19, 2009
Page 4
INDEX TO EXHIBITS
-----------------
Sequentially
Exhibit No. Description Number Page
----------- ------------------------- -------------
(99.1) Press release dated 5-15
October 14, 2009
Page 5
FOR IMMEDIATE RELEASE
October 14, 2009
WESTAMERICA BANCORPORATION THIRD
QUARTER 2009 FINANCIAL RESULTS
San Rafael, CA: Westamerica Bancorporation (NASDAQ: WABC) earned net income
applicable to common shareholders of $23.8 million, or $0.81 per diluted common
share ("EPS"), for the three months ended September 30, 2009, compared to net
income applicable to common shareholders of $22.1 million, or $0.75 EPS, for the
three months ended June 30, 2009. During the third quarter 2009, Westamerica
completed systems conversions and branch consolidations related to the purchase
of assets and assumption of liabilities of the former County Bank, which
resulted in reduced expense levels. During the third quarter 2009, Westamerica
redeemed $42 million in preferred stock requiring accelerated discount accretion
of $538 thousand, which reduced EPS $0.02. Also during the third quarter 2009,
Westamerica eliminated $587 thousand in tax reserves due to a lapse in the
statute of limitations, which reduced tax provisions and increased EPS $0.02.
Third quarter 2009 results represents a 20 percent return on common
shareholders' equity.
"The County Bank integration was completed on time in August, and the
efficiencies gained following the integration will continue to benefit future
operating results. The cost of funding our loan and investment portfolio
continued to decline due to our pricing practices and an improved mix of
deposits. The third quarter 2009 cost of funds was 0.40 percent, which supported
our 5.48 percent net interest margin. The risk profile of our loan portfolio
is significantly reduced as loss-sharing agreements with the Federal Deposit
Insurance Corporation cover 29 percent of our loan portfolio. The credit quality
of the non-FDIC covered loans remained stable during the quarter," said
Chairman, President and CEO David Payne. "Our healthy profitability and 15.1
percent total regulatory capital ratio distinguishes Westamerica as a safe and
sound bank during this troublesome period for our industry," added Payne.
Page 6
Westamerica generated net income applicable to common shareholders of $98
million, or $3.35 EPS, during the nine months ended September 30, 2009. Results
for this period include a $28.3 million net of tax gain from the acquisition of
assets and assumption of liabilities of the former County Bank.
Westamerica generated net income applicable to common shareholders of $39
million, or $1.33 EPS, during the nine months ended September 30, 2008. Results
for this period include a $5.7 million gain on the sale of VISA common stock
resulting from VISA's initial public offering ("IPO"), and $2.3 million in
reduced expenses as known litigation contingencies were satisfied as a part of
the VISA IPO. EPS was increased $0.16 due to transactions recognized as a result
of the VISA IPO. Results for this period also include $34 million in losses, net
of tax, recognized as a result of the decline in value of FHLMC and FNMA
preferred stock, which reduced EPS by $1.17. Also, the Company recorded a
$1.0 million reduction in its tax provision primarily due to filing its 2007 tax
return and adjusting 2007 tax estimates to actual amounts included in the filed
tax return, which increased EPS by $0.03.
Net interest income on a fully-taxable equivalent basis ("FTE") totaled $61.6
million in the third quarter 2009, compared to $62.3 million in the second
quarter 2009, and $48.7 million in the third quarter 2008. For the nine month
periods ended September 30, 2009 and 2008, net interest income (FTE) totaled
$183.3 million and $146.4 million, respectively. Net interest income has
increased in 2009 compared to 2008 due to acquired County Bank assets and a
higher net interest margin. The net interest margin has improved due to a
decline in interest rates paid on deposits and other borrowings used to fund
loans and investment securities.
The provision for credit losses was $2.8 million for the third quarter 2009,
increased from $2.6 million for the previous quarter.
Page 7
Non-interest income for third quarter 2009 was $16.0 million compared to $16.4
million in the prior quarter. Service charges on deposit accounts, ATM fees and
debit card fees are higher following the February 6, 2009 assumption of County
Bank deposits. Merchant credit card income is lower in 2009 compared to 2008 due
to reduced consumer spending.
Non-interest expense for third quarter 2009 was $35.2 million compared to $38.7
million in the prior quarter, which included $1.8 million in higher FDIC
insurance fund assessments. Personnel and facilities expenses (occupancy and
equipment combined) have declined following County Bank systems integrations and
branch consolidations.
Non-performing assets not covered by FDIC loss-sharing agreements were $37.7
million at September 30, 2009 compared to $35.0 million at June 30, 2009.
Annualized net loan losses on non-FDIC covered loans as a percentage of average
non-FDIC covered loans were 0.56 percent during both the third and second
quarters of 2009. The reserve for loan losses to non-FDIC covered loans was 1.88
percent and 1.86 percent at September 30, 2009 and June 30, 2009, respectively.
Shareholders' equity was $536 million at September 30, 2009 compared to $559
million at June 30, 2009. At September 30, 2009, total regulatory capital
ratios for Westamerica Bancorporation and its subsidiary bank, Westamerica Bank,
were 15.1 percent and 14.4 percent, respectively, exceeding the 10 percent
requirement to be "well capitalized" under regulatory standards.
Westamerica Bancorporation, through its wholly owned subsidiary, Westamerica
Bank, operates 99 branches and two trust offices throughout Northern and Central
California counties.
Westamerica Bancorporation Web Address: www.westamerica.com
For additional information contact:
Westamerica Bancorporation
Robert A. Thorson - SVP & Chief Financial Officer
707-863-6840
Page 8
FORWARD-LOOKING INFORMATION:
----------------------------
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 on Form 10-Q for the quarter ended June 30, 2009 and
annual report on Form 10-K 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 October 14, 2009
FINANCIAL HIGHLIGHTS
September 30, 2009
1. Net Income Summary.
(dollars in thousands except per-share amounts)
Q3'09 / Q3'09 / 9/30'09YTD /
Q3'09 Q3'08 Q3'08 Q2'09 Q2'09 9/30'09YTD 9/30'08YTD 9/30'08YTD
------------------------------------------------------------------------------------------------
1 Net Interest Income (Fully Taxable
Equivalent) $61,593 $48,693 26.5% $62,318 -1.2% $183,270 $146,407 25.2%
2 Provision for Loan Losses 2,800 600 366.7% 2,600 7.7% 7,200 1,800 300.0%
3 Noninterest Income:
4 Net Loss From Equity Securities 0 (41,206) n/m 0 n/m 0 (53,686) n/m
5 FAS 141R Gain 0 0 n/m 0 n/m 48,844 0 n/m
6 Other 15,961 13,707 16.4% 16,386 -2.6% 47,471 41,723 13.8%
------------------------ ------------ ------------------------
7 Total Noninterest Income (Loss) 15,961 (27,499) n/m 16,386 n/m 96,315 (11,963) n/m
8 Noninterest Expense:
9 VISA Litigation 0 0 n/m 0 n/m 0 (2,338) n/m
10 Other 35,151 25,203 39.5% 38,666 -9.1% 107,940 76,934 40.3%
------------------------ ------------ ------------------------
11 Total Noninterest Expense 35,151 25,203 39.5% 38,666 -9.1% 107,940 74,596 44.7%
------------------------ ------------ ------------------------
12 Income (Loss) Before Taxes (FTE) 39,603 (4,609) n/m 37,438 5.8% 164,445 58,048 n/m
13 Income Tax Provision (Benefit)
(FTE) 14,346 (4,653) n/m 14,255 0.6% 63,180 19,023 n/m
------------------------ ------------ ------------------------
14 Net Income 25,257 44 n/m 23,183 8.9% 101,265 39,025 n/m
15 Preferred Stock Dividends and
Discount Accretion 1,466 0 n/m 1,107 32.4% 3,151 0 n/m
------------------------ ------------ ------------------------
16 Net Income Applicable to Common
Equity $23,791 $44 n/m $22,076 7.8% $98,114 $39,025 n/m
======================== ============ ========================
17 Average Common Shares Outstanding 29,210 28,908 1.0% 29,126 0.3% 29,072 28,895 0.6%
18 Diluted Average Common Shares
Outstanding 29,429 29,273 0.5% 29,403 0.1% 29,313 29,292 0.1%
19 Operating Ratios:
20 Basic Earnings Per Common Share $0.81 $0.00 n/m $0.76 6.9% $3.37 $1.35 149.6%
21 Diluted Earnings Per Common
Share 0.81 0.00 n/m 0.75 7.9% 3.35 1.33 151.9%
22 Return On Assets (annualized) 1.86% 0.00% 1.68% 2.57% 1.22%
23 Return On Common Equity
(annualized) 19.7% 0.0% 19.0% 28.4% 12.8%
24 Net Interest Margin (FTE)
(annualized) 5.48% 5.19% 5.34% 5.39% 5.04%
25 Efficiency Ratio (FTE) 45.3% 118.9% 49.1% 38.6% 55.5%
26 Dividends Paid Per Common Share $0.35 $0.35 0.0% $0.35 0.0% $1.06 $1.04 1.9%
27 Common Dividend Payout Ratio 43% n/m 47% 32% 78%
2. Net Interest Income.
(dollars in thousands)
Q3'09 / Q3'09 / 9/30'09YTD /
Q3'09 Q3'08 Q3'08 Q2'09 Q2'09 9/30'09YTD 9/30'08YTD 9/30'08YTD
------------------------------------------------------------------------------------------------
1 Interest and Fee Income (FTE) $66,093 $56,131 17.7% $68,063 -2.9% $198,348 $175,058 13.3%
2 Interest Expense 4,500 7,438 -39.5% 5,745 -21.7% 15,078 28,651 -47.4%
------------------------ ------------ ------------------------
3 Net Interest Income (FTE) $61,593 $48,693 26.5% $62,318 -1.2% $183,270 $146,407 25.2%
======================== ============ ========================
4 Average Earning Assets $4,470,851 $3,745,058 19.4% $4,678,615 -4.4% $4,541,596 $3,878,972 17.1%
5 Average Interest-Bearing
Liabilities 3,094,081 2,486,659 24.4% 3,311,650 -6.6% 3,186,913 2,615,724 21.8%
6 Yield on Earning Assets (FTE)
(annualized) 5.88% 5.98% 5.83% 5.83% 6.02%
7 Cost of Funds (annualized) 0.40% 0.79% 0.49% 0.44% 0.98%
8 Net Interest Margin (FTE)
(annualized) 5.48% 5.19% 5.34% 5.39% 5.04%
9 Interest Expense/Interest-Bearing
Liabilities (annualized) 0.58% 1.19% 0.70% 0.63% 1.46%
10 Net Interest Spread (FTE)
(annualized) 5.30% 4.79% 5.13% 5.20% 4.56%
3. Loans & Other Earning Assets.
(average volume, dollars in thousands)
Q3'09 / Q3'09 / 9/30'09YTD /
Q3'09 Q3'08 Q3'08 Q2'09 Q2'09 9/30'09YTD 9/30'08YTD 9/30'08YTD
------------------------------------------------------------------------------------------------
1 Total Assets $5,072,866 $4,137,232 22.6% $5,265,101 -3.7% $5,113,359 $4,275,657 19.6%
2 Total Earning Assets 4,470,851 3,745,058 19.4% 4,678,615 -4.4% 4,541,596 3,878,972 17.1%
3 Total Loans 3,263,388 2,414,317 35.2% 3,383,654 -3.6% 3,261,462 2,443,574 33.5%
4 Commercial Loans 901,127 597,176 50.9% 944,257 -4.6% 910,263 607,712 49.8%
5 Commercial Real Estate Loans 1,313,545 830,001 58.3% 1,361,420 -3.5% 1,289,190 841,391 53.2%
6 Consumer Loans 1,048,716 987,140 6.2% 1,077,977 -2.7% 1,062,009 994,471 6.8%
7 Total Investment Securities 1,207,463 1,330,741 -9.3% 1,294,961 -6.8% 1,280,134 1,435,398 -10.8%
8 Available For Sale
(Market Value) 405,304 359,220 12.8% 433,065 -6.4% 412,644 436,592 -5.5%
9 Held To Maturity 802,159 971,521 -17.4% 861,896 -6.9% 867,490 998,806 -13.1%
10 HTM Unrealized Gain (Loss)
at Period-End 20,047 (15,041) n/m 243 n/m 20,047 (15,041) n/m
11 Loans / Deposits 79.0% 76.5% 80.5% 80.2% 76.8%
Page 10
WESTAMERICA BANCORPORATION Public Information October 14, 2009
FINANCIAL HIGHLIGHTS
September 30, 2009
4. Deposits & Other Interest-Bearing Liabilities.
(average volume, dollars in thousands)
Q3'09 / Q3'09 / 9/30'09YTD /
Q3'09 Q3'08 Q3'08 Q2'09 Q2'09 9/30'09YTD 9/30'08YTD 9/30'08YTD
------------------------------------------------------------------------------------------------
1 Total Deposits $4,131,388 $3,154,340 31.0% $4,202,607 -1.7% $4,066,462 $3,183,393 27.7%
2 Noninterest Demand 1,371,124 1,172,953 16.9% 1,333,412 2.8% 1,330,495 1,186,443 12.1%
3 Interest-Bearing Transaction 708,372 539,286 31.4% 741,084 -4.4% 705,777 544,407 29.6%
4 Savings 978,656 764,535 28.0% 968,048 1.1% 941,847 765,514 23.0%
5 Time greater than $100K 581,681 484,396 20.1% 629,646 -7.6% 622,168 492,724 26.3%
6 Time less than $100K 491,555 193,170 154.5% 530,417 -7.3% 466,175 194,305 139.9%
7 Total Short-Term Borrowings 307,266 470,109 -34.6% 415,871 -26.1% 424,362 582,564 -27.2%
8 Fed Funds Purchased 870 342,338 -99.7% 119,837 -99.3% 144,037 440,435 -67.3%
9 Other Short-Term Funds 306,396 127,771 139.8% 296,034 3.5% 280,325 142,129 97.2%
10 Long-Term Debt 26,551 35,163 -24.5% 26,584 -0.1% 26,584 36,210 -26.6%
11 Shareholders' Equity 549,331 412,133 33.3% 547,816 0.3% 527,635 406,244 29.9%
12 Demand Deposits / Total Deposits 33.2% 37.2% 31.7% 32.7% 37.3%
13 Transaction & Savings Deposits /
Total Deposits 74.0% 78.5% 72.4% 73.2% 78.4%
5. Interest Yields Earned & Rates Paid.
(dollars in thousands)
Q3'09 Q3'08
------------------------------------ Q2'09 ------------------------------------
Average Income/ Yield */ Yield*/ Average Income/ Yield*/
Volume Expense Rate Rate Volume Expense Rate
------------------------------------------------------------------------------------
1 Interest & Fees Income Earned
2 Total Earning Assets (FTE) $4,470,851 $66,093 5.88% 5.83% $3,745,058 $56,131 5.98%
3 Total Loans (FTE) 3,263,388 49,579 6.03% 6.00% 2,414,317 37,853 6.24%
4 Commercial Loans (FTE) 901,127 13,090 5.76% 5.66% 597,176 9,964 6.64%
5 Commercial Real Estate Loans 1,313,545 21,967 6.63% 6.57% 830,001 14,516 6.96%
6 Consumer Loans 1,048,716 14,522 5.49% 5.57% 987,140 13,373 5.39%
7 Total Investment Securities
(FTE) 1,207,463 16,514 5.47% 5.39% 1,330,741 18,278 5.49%
8 Interest Expense Paid
9 Total Earning Assets 4,470,851 4,500 0.40% 0.49% 3,745,058 7,438 0.79%
10 Total Interest-Bearing
Liabilities 3,094,081 4,500 0.58% 0.70% 2,486,659 7,438 1.19%
11 Total Interest-Bearing Deposits 2,760,264 3,273 0.47% 0.62% 1,981,387 4,960 1.00%
12 Interest-Bearing Transaction 708,372 263 0.15% 0.16% 539,286 346 0.26%
13 Savings 978,656 915 0.37% 0.44% 764,535 1,048 0.55%
14 Time less than $100K 491,555 829 0.67% 1.04% 193,170 1,201 2.47%
15 Time greater than $100K 581,681 1,266 0.86% 1.11% 484,396 2,365 1.94%
16 Total Short-Term Borrowings 307,266 804 1.04% 0.83% 470,109 1,954 1.63%
17 Fed Funds Purchased 870 0 0.15% 0.15% 342,338 1,708 1.95%
18 Other Short-Term Funds 306,396 804 1.04% 1.10% 127,771 246 0.77%
19 Long-Term Debt 26,551 423 6.36% 6.35% 35,163 524 5.96%
20 Net Interest Income and Margin (FTE) $61,593 5.48% 5.34% $48,693 5.19%
* Annualized
6. Noninterest Income.
(dollars in thousands except per share amounts)
Q3'09 / Q3'09 / 9/30'09YTD /
Q3'09 Q3'08 Q3'08 Q2'09 Q2'09 9/30'09YTD 9/30'08YTD 9/30'08YTD
------------------------------------------------------------------------------------------------
1 Service Charges on Deposit
Accounts $9,479 $7,555 25.5% $9,116 4.0% $27,017 $22,379 20.7%
2 Merchant Credit Card Income 2,163 2,611 -17.2% 2,223 -2.7% 6,818 7,903 -13.7%
3 ATM Fees & Interchange 965 756 27.7% 1,013 -4.7% 2,792 2,238 24.8%
4 Debit Card Fees 1,267 970 30.7% 1,323 -4.2% 3,656 2,852 28.2%
5 Financial Services Commissions 129 186 -30.8% 137 -6.3% 420 689 -39.1%
6 Mortgage Banking Income 26 39 -32.1% 25 5.3% 68 106 -35.4%
7 Trust Fees 319 293 9.1% 373 -14.3% 1,056 973 8.6%
8 Other Income 1,613 1,297 24.3% 2,176 -25.9% 5,644 4,583 23.2%
------------------------ ------------ ------------------------
9 Sub-total 15,961 13,707 16.4% 16,386 -2.6% 47,471 41,723 13.8%
10 Net Loss From Equity Securities 0 (41,206) n/m 0 n/m 0 (53,686) n/m
11 FAS 141R Gain 0 0 n/m 0 n/m 48,844 0 n/m
------------------------ ------------ ------------------------
12 Total Noninterest Income (Loss) $15,961 ($27,499) n/m $16,386 n/m $96,315 ($11,963) n/m
======================== ============ ========================
13 Operating Ratios:
14 Total Revenue (FTE) $77,554 $21,194 265.9% $78,704 -1.5% $279,585 $134,444 108.0%
15 Noninterest Income / Revenue
(FTE) 20.6% n/m 20.8% 34.4% n/m
16 Service Charges / Avg. Deposits
(annualized) 0.91% 0.95% 0.87% 0.89% 0.94%
17 Total Revenue Per Avg. Common
Share (annualized) $10.53 $2.92 261.1% $10.84 -2.8% $12.86 $6.22 106.9%
Page 11
WESTAMERICA BANCORPORATION Public Information October 14, 2009
FINANCIAL HIGHLIGHTS
September 30, 2009
7. Noninterest Expense.
(dollars in thousands)
Q3'09 / Q3'09 / 9/30'09YTD /
Q3'09 Q3'08 Q3'08 Q2'09 Q2'09 9/30'09YTD 9/30'08YTD 9/30'08YTD
------------------------------------------------------------------------------------------------
1 Salaries & Benefits $16,402 $12,621 30.0% $17,448 -6.0% $50,221 $38,670 29.9%
2 Occupancy 4,008 3,465 15.7% 5,413 -26.0% 14,831 10,297 44.0%
3 Equipment 1,789 903 98.2% 1,607 11.3% 4,618 2,825 63.5%
4 Outsourced Data Processing 2,258 2,098 7.6% 2,378 -5.1% 6,740 6,323 6.6%
5 Courier 989 835 18.4% 994 -0.5% 2,881 2,488 15.8%
6 Postage 576 369 56.2% 531 8.5% 1,570 1,142 37.5%
7 Telephone 622 342 82.0% 478 30.2% 1,487 1,023 45.3%
8 Professional Fees 913 485 88.2% 779 17.2% 2,580 1,704 51.4%
9 Stationery & Supplies 450 272 65.4% 374 20.2% 1,191 836 42.5%
10 Loan Expense 491 246 99.1% 205 139.7% 1,689 653 158.8%
11 Operational Losses 242 113 113.4% 221 9.4% 658 494 33.3%
12 Amortization of Identifiable
Intangibles 1,671 788 112.1% 1,695 -1.5% 5,051 2,433 107.6%
13 FDIC Insurance Assessment 1,442 131 n/m 3,221 n/m 4,820 359 n/m
14 Other Operating 3,298 2,535 30.1% 3,322 -0.7% 9,603 7,687 24.9%
------------------------ ------------ ------------------------
15 Sub-total 35,151 25,203 39.5% 38,666 -9.1% 107,940 76,934 40.3%
16 VISA Litigation 0 0 n/m 0 n/m 0 (2,338) n/m
------------------------ ------------ ------------------------
17 Total Noninterest Expense $35,151 $25,203 39.5% $38,666 -9.1% $107,940 $74,596 44.7%
======================== ============ ========================
18 Average (Avg.) Full Time
Equivalent Staff 1,086 899 20.8% 1,176 -7.7% 1,135 892 27.2%
19 Avg. Assets / Avg. Full Time
Equivalent Staff $4,671 $4,602 1.5% $4,477 4.3% $4,505 $4,793 -6.0%
20 Operating Ratios:
21 FTE Revenue / Avg. Full Time
Equiv. Staff (annualized) $283 $94 201.1% $268 5.6% $329 $201 63.7%
22 Noninterest Expense / Avg.
Earning Assets (annualized) 3.12% 2.68% 3.31% 3.18% 2.57%
23 Noninterest Expense / FTE
Revenues 45.3% 118.9% 49.1% 38.6% 55.5%
8. Provision for Loan Losses.
(dollars in thousands)
Q3'09 / Q3'09 / 9/30'09YTD /
Q3'09 Q3'08 Q3'08 Q2'09 Q2'09 9/30'09YTD 9/30'08YTD 9/30'08YTD
------------------------------------------------------------------------------------------------
1 Average Total Loans $3,263,388 $2,414,317 35.2% $3,383,654 -3.6% $3,261,462 $2,443,574 33.5%
2 Avg. Total Covered Loans (1) $974,057 $0 n/m $1,045,360 -6.8% $900,922 $0 n/m
3 Avg. Total Non-Covered Loans $2,289,331 $2,414,317 -5.2% $2,338,294 -2.1% $2,360,540 $2,443,574 -3.4%
4 Non-Covered Loans:
5 Provision for Loan Losses $2,800 $600 366.7% $2,600 7.7% $7,200 $1,800 300.0%
6 Gross Loan Losses 3,870 1,786 116.7% 3,937 -1.7% 10,735 5,532 94.1%
7 Net Loan Losses 3,239 1,467 120.8% 3,281 -1.3% 8,987 4,209 113.5%
8 Recoveries / Gross Loan Losses 16% 18% 17% 16% 24%
9 Net Loan Losses / Avg.
Non-Covered Loans (a) 0.56% 0.24% 0.56% 0.51% 0.23%
10 Provision for Loan Losses / Avg.
Non-Covered Loans (a) 0.49% 0.10% 0.45% 0.41% 0.10%
11 Provision for Loan Losses /
Net Loan Losses 86.4% 40.9% 79.2% 80.1% 42.8%
(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 February 6, 2009, the date of purchase.
(a) annualized
Page 12
WESTAMERICA BANCORPORATION Public Information October 14, 2009
FINANCIAL HIGHLIGHTS
September 30, 2009
9. Credit Quality.
(dollars in thousands)
9/30/09 / 9/30/09 /
9/30/09 9/30/08 9/30/08 6/30/09 6/30/09 3/31/09 12/31/08 6/30/08
1 Non-Covered Nonperforming Loans: ------------------------------------------------------------------------------------------------
2 Nonperforming Nonaccrual Loans $31,352 $12,132 158.4% $29,603 5.9% $10,943 $8,883 $11,713
3 Performing Nonaccrual Loans 61 73 -16.4% 26 134.0% 27 1,143 28
------------------------ ------------ ------------------------------------
4 Total Nonaccrual Loans 31,413 12,205 157.4% 29,629 6.0% 10,970 10,026 11,741
5 Accruing Loans 90+ Days Past Due 1,962 363 440.5% 614 219.5% 777 755 254
------------------------ ------------ ------------------------------------
6 Total Non-Covered Nonperforming 33,375 12,568 165.6% 30,243 10.4% 11,747 10,781 11,995
Loans
7 Non-Covered Repossessed Loan
Collateral 4,319 814 430.5% 4,715 -8.4% 4,756 3,505 920
------------------------ ------------ ------------------------------------
8 Total Non-Covered Nonperforming
Assets 37,694 13,382 181.7% 34,958 7.8% 16,503 14,286 12,915
------------------------ ------------ ------------------------------------
9 Covered Nonperforming Loans (1):
10 Nonperforming Nonaccrual Loans 53,255 0 n/m 65,910 -19.2% 34,437 0 0
11 Performing Nonaccrual Loans 26,277 0 n/m 16,901 55.5% 3,632 0 0
------------------------ ------------ ------------------------------------
12 Total Nonaccrual Loans 79,532 0 n/m 82,811 -4.0% 38,069 0 0
13 Accruing Loans 90+ Days Past Due 935 0 n/m 8,622 -89.2% 9,866 0 0
------------------------ ------------ ------------------------------------
14 Total Covered Nonperforming
Loans (1) 80,467 0 n/m 91,433 -12.0% 47,935 0 0
15 Covered Repossessed Loan
Collateral (1) 18,740 0 n/m 13,691 36.9% 13,391 0 0
------------------------ ------------ ------------------------------------
16 Total Covered Nonperforming
Assets (1) 99,207 0 n/m 105,124 -5.6% 61,326 0 0
------------------------ ------------ ------------------------------------
16 Total Nonperforming Assets $136,901 $13,382 n/m $140,082 -2.3% $77,829 $14,286 $12,915
======================== ============ ====================================
17 Non-Covered Classified Loans $66,810 $38,070 75.5% $53,359 25.2% $41,453 $34,028 $33,546
18 Covered Classified Loans (1) 174,583 0 n/m 153,972 13.4% 169,778 0 0
------------------------ ------------ ------------------------------------
19 Total Classified Loans $241,393 $38,070 n/m $207,331 16.4% $211,231 $34,028 $33,546
======================== ============ ====================================
20 Total Non-Covered Loans
Outstanding $2,267,130 $2,408,704 -5.9% $2,322,005 -2.4% $2,356,237 $2,382,426 $2,431,011
21 Total Covered Loans
Outstanding (1) 932,656 0 n/m 1,031,643 -9.6% 1,089,071 0 0
------------------------ ------------ ------------------------------------
22 Total Loans Outstanding $3,199,786 $2,408,704 32.8% $3,353,648 -4.6% $3,445,308 $2,382,426 $2,431,011
======================== ============ ====================================
23 Total Assets $4,971,159 $4,089,482 21.6% $5,193,595 -4.3% $5,428,865 $4,032,934 $4,188,868
24 Non-Covered Loans:
25 Allowance for Loan Losses $42,683 $50,097 -14.8% $43,122 -1.0% $43,803 $44,470 $50,964
26 Allowance/Non-Covered Loans 1.88% 2.08% 1.86% 1.86% 1.87% 2.10%
27 Non-Covered Nonperforming Loans/
Non-Covered Loans 1.47% 0.52% 1.30% 0.50% 0.45% 0.49%
28 Non-Covered Nonperforming Assets/
Total Assets 0.76% 0.33% 0.67% 0.30% 0.35% 0.31%
29 Allowance/Non-Covered Nonperforming
Loans
30 Covered Loans (1): 128% 399% 143% 373% 412% 425%
31 Fair Value Discount on Covered
Loans $98,738 n/a $114,276 $149,290 n/a n/a
32 Discount/Covered Loans, gross 9.57% n/a 9.97% 12.06% n/a n/a
33 Covered Nonperforming Assets/
Total Assets 2.00% n/a 2.02% 1.13% n/a n/a
34 Fair Value Discount on
Repossessed Loan Collateral $4,389 n/a $7 $11,178 n/a n/a
35 Discount/Covered Repossessed
Loan Collateral, gross 18.98% n/a 0.05% 45.50% 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-Sha
Agreement. Covered assets were recorded at estimated fair value at February 6, 2009, the date of purchase.
Page 13
WESTAMERICA BANCORPORATION Public Information October 14, 2009
FINANCIAL HIGHLIGHTS
September 30, 2009
10.Capital.
(dollars in thousands, except per-share amounts)
9/30/09 / 9/30/09 /
9/30/09 9/30/08 9/30/08 6/30/09 6/30/09 3/31/09 12/31/08 6/30/08
------------------------------------------------------------------------------------------------
1 Common Shareholders' Equity $494,383 $399,128 23.9% $476,620 3.7% $454,118 $409,852 $410,445
2 Preferred Shareholder's Equity $41,335 $0 n/m $82,611 -50.0% $82,550 $0 $0
3 Total Shareholders' Equity $535,718 $399,128 34.2% $559,231 -4.2% $536,668 $409,852 $410,445
4 Tier I Regulatory Capital 394,283 278,117 41.8% 421,048 -6.4% 394,829 288,859 290,864
5 Total Regulatory Capital 431,913 314,023 37.5% 458,182 -5.7% 432,822 324,455 327,631
6 Total Assets 4,971,159 4,089,482 21.6% 5,193,595 -4.3% 5,428,865 4,032,934 4,188,868
7 Risk-Adjusted Assets 2,866,814 2,790,304 2.7% 2,890,291 -0.8% 2,993,229 2,758,866 2,845,553
8 Total Shareholders' Equity /
Total Assets 10.78% 9.76% 10.77% 9.89% 10.16% 9.80%
9 Total Shareholders' Equity /
Total Loans 16.74% 16.57% 16.68% 15.58% 17.20% 16.88%
10 Tier I Capital /Total Assets 7.93% 6.80% 8.11% 7.27% 7.16% 6.94%
11 Tier I Capital / Risk-Adjusted
Assets 13.75% 9.97% 14.57% 13.19% 10.47% 10.22%
12 Total Capital / Risk-Adjusted
Assets 15.07% 11.25% 15.85% 14.46% 11.76% 11.51%
13 Tangible Common Equity Ratio 6.95% 6.62% 6.26% 5.52% 7.01% 6.71%
14 Common Shares Outstanding 29,207 28,895 1.1% 29,214 -0.0% 28,874 28,880 28,889
15 Common Equity Per Share $16.93 $13.81 22.5% $16.31 3.8% $15.73 $14.19 $14.21
16 Market Value Per Common Share $52.00 $57.53 -9.6% $49.61 4.8% $45.56 $51.15 $52.59
17 Share Repurchase Programs
(shares in thousands)
Q3'09 / Q3'09 / 9/30'09YTD /
Q3'09 Q3'08 Q3'08 Q2'09 Q2'09 9/30'09YTD 9/30'08YTD 9/30'08YTD
------------------------------------------------------------------------------------------------
18 Total Shares Repurchased /
Canceled 8 108 -92.6% 6 31.3% 30 703 -95.7%
19 Average Repurchase Price $50.45 $50.10 0.7% $51.90 -2.8% $46.02 $49.81 -7.6%
20 Net Shares Repurchased (Issued) 7 (6) -220.8% (340) n/m (327) 123 -365.8%
Page 14
WESTAMERICA BANCORPORATION Public Information October 14, 2009
FINANCIAL HIGHLIGHTS
September 30, 2009
11.Period-End Balance Sheets.
(unaudited, dollars in thousands)
9/30/09 / 9/30/09 /
9/30/09 9/30/08 9/30/08 6/30/09 6/30/09 3/31/09 12/31/08 6/30/08
1 Assets: ------------------------------------------------------------------------------------------------
2 Cash and Money Market Assets $180,521 $142,678 26.5% $169,291 6.6% $149,566 $139,224 $134,432
3 Investment Securities
Available For Sale 391,644 304,871 28.5% 407,127 -3.8% 436,343 288,454 391,028
4 Investment Securities
Held to Maturity 780,846 962,621 -18.9% 830,618 -6.0% 918,745 949,325 978,298
5 Non-Covered Loans 2,267,130 2,408,704 -5.9% 2,322,005 -2.4% 2,356,237 2,382,426 2,431,011
6 Allowance For Loan Losses (42,683) (50,097) -14.8% (43,122) -1.0% (43,803) (44,470) (50,964)
------------------------ ------------ ------------------------------------
7 Non-Covered Loans, net 2,224,447 2,358,607 -5.7% 2,278,883 -2.4% 2,312,434 2,337,956 2,380,047
8 Covered Loans, net (1) 932,656 0 n/m 1,031,643 -9.6% 1,089,071 0 0
------------------------ ------------ ------------------------------------
9 Total Loans 3,157,103 2,358,607 33.9% 3,310,526 -4.6% 3,401,505 2,337,956 2,380,047
10 Non-Covered Other Real Estate
Owned 4,319 814 n/m 4,715 -8.4% 4,756 3,505 920
11 Covered Other Real Estate Owned,
net (1) 18,740 0 n/m 13,691 36.9% 13,391 0 0
12 Premises and Equipment 38,982 26,789 45.5% 26,490 47.2% 26,729 27,351 27,460
13 Identifiable Intangible Assets 38,264 15,996 139.2% 39,934 -4.2% 41,630 15,208 16,784
14 Goodwill 121,699 121,702 -0.0% 121,699 0.0% 121,699 121,699 121,719
15 Interest Receivable and
Other Assets 239,041 155,404 53.8% 269,504 -11.3% 314,501 150,212 138,180
------------------------ ------------ ------------------------------------
16 Total Assets $4,971,159 $4,089,482 21.6% $5,193,595 -4.3% $5,428,865 $4,032,934 $4,188,868
======================== ============ ====================================
17 Liabilities and Shareholders' Equity:
18 Deposits:
19 Noninterest Bearing $1,377,215 $1,173,852 17.3% $1,334,871 3.2% $1,353,696 $1,158,632 $1,195,004
20 Interest-Bearing Transaction 660,001 518,944 27.2% 716,706 -7.9% 730,153 525,153 527,109
21 Savings 962,823 751,512 28.1% 968,408 -0.6% 968,411 745,496 754,677
22 Time 1,024,587 685,480 49.5% 1,137,152 -9.9% 1,204,021 665,773 686,702
------------------------ ------------ ------------------------------------
23 Total Deposits 4,024,626 3,129,788 28.6% 4,157,137 -3.2% 4,256,281 3,095,054 3,163,492
------------------------ ------------ ------------------------------------
24 Short-Term Borrowed Funds 222,030 487,973 -54.5% 316,466 -29.8% 441,418 457,275 514,131
25 Federal Home Loan Bank Advances 85,904 0 n/m 86,338 -0.5% 86,772 0 0
25 Debt Financing and Notes
Payable 26,531 26,665 -0.5% 26,564 -0.1% 26,598 26,631 36,699
26 Liability For Interest, Taxes
and Other 76,350 45,928 66.2% 47,859 59.5% 81,128 44,122 64,101
------------------------ ------------ ------------------------------------
27 Total Liabilities 4,435,441 3,690,354 20.2% 4,634,364 -4.3% 4,892,197 3,623,082 3,778,423
------------------------ ------------ ------------------------------------
28 Shareholders' Equity:
29 Preferred Stock 41,335 0 n/m 82,611 -50.0% 82,550 0 0
30 Paid-In Capital 368,032 354,537 3.8% 367,840 0.1% 356,326 354,674 351,157
31 Accumulated Other Comprehensive
Income 6,053 551 999.0% 1,747 246.4% 2,274 1,040 1,074
32 Retained Earnings 120,298 44,040 173.2% 107,033 12.4% 95,518 54,138 58,214
------------------------ ------------ ------------------------------------
33 Total Common Equity 494,383 399,128 23.9% 476,620 3.7% 454,118 409,852 410,445
------------------------ ------------ ------------------------------------
34 Total Shareholders' Equity 535,718 399,128 34.2% 559,231 -4.2% 536,668 409,852 410,445
------------------------ ------------ ------------------------------------
35 Total Liabilities and
Shareholders' Equity $4,971,159 $4,089,482 21.6% $5,193,595 -4.3% $5,428,865 $4,032,934 $4,188,868
======================== ============ ====================================
(1) Covered loans and other real estate owned 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 February 6, 2009, the date of purchase.
Page 15
WESTAMERICA BANCORPORATION Public Information October 14, 2009
FINANCIAL HIGHLIGHTS
September 30, 2009
12.Income Statements.
(unaudited, dollars in thousands, except per-share amounts)
Q3'09 / Q3'09 / 9/30'09YTD /
Q3'09 Q3'08 Q3'08 Q2'09 Q2'09 9/30'09YTD 9/30'08YTD 9/30'08YTD
------------------------------------------------------------------------------------------------
1 Interest and Fee Income:
2 Loans $48,530 $36,710 32.2% $49,523 -2.0% $143,148 $112,716 27.0%
3 Money Market Assets and
Funds Sold 1 1 n/m 1 n/m 3 3 n/m
4 Investment Securities
Available For Sale 4,272 4,041 5.7% 4,539 -5.9% 12,550 14,784 -15.1%
5 Investment Securities
Held to Maturity 8,393 10,223 -17.9% 9,009 -6.8% 27,752 31,521 -12.0%
------------------------ ------------ ------------------------------------
6 Total Interest Income 61,196 50,975 20.1% 63,072 -3.0% 183,453 159,024 15.4%
------------------------ ------------ ------------------------------------
7 Interest Expense:
8 Transaction Deposits 263 346 -24.1% 293 -10.4% 761 1,145 -33.6%
9 Savings Deposits 915 1,048 -12.6% 1,059 -13.6% 2,874 3,482 -17.4%
10 Time Deposits 2,095 3,566 -41.2% 3,116 -32.8% 7,890 12,984 -39.2%
11 Short-Term Borrowed Funds 804 1,954 -58.8% 856 -6.0% 2,286 9,360 -75.6%
12 Debt Financing and Notes
Payable 423 524 -19.4% 421 0.2% 1,267 1,680 -24.6%
------------------------ ------------ ------------------------------------
13 Total Interest Expense 4,500 7,438 -39.5% 5,745 -21.7% 15,078 28,651 -47.4%
------------------------ ------------ ------------------------------------
14 Net Interest Income 56,696 43,537 30.2% 57,327 -1.1% 168,375 130,373 29.1%
------------------------ ------------ ------------------------------------
15 Provision for Loan Losses 2,800 600 n/m 2,600 7.7% 7,200 1,800 n/m
------------------------ ------------ ------------------------------------
16 Noninterest Income:
17 Service Charges on Deposit
Accounts 9,479 7,555 25.5% 9,116 4.0% 27,017 22,379 20.7%
18 Merchant Credit Card 2,163 2,611 -17.2% 2,223 -2.7% 6,818 7,903 -13.7%
19 ATM Fees & Interchange 965 756 27.7% 1,013 -4.7% 2,792 2,238 24.8%
20 Debit Card Fees 1,267 970 30.7% 1,323 -4.2% 3,656 2,852 28.2%
21 Financial Services Commissions 129 186 -30.8% 137 -6.3% 420 689 -39.1%
22 Mortgage Banking 26 39 -32.1% 25 5.3% 68 106 -35.4%
23 Trust Fees 319 293 9.1% 373 -14.3% 1,056 973 8.6%
24 Net Loss From Equity Securities 0 (41,206) n/m 0 0 (53,686) n/m
25 FAS 141R Gain 0 0 n/m 0 48,844 0 n/m
26 Other 1,613 1,297 24.3% 2,176 -25.9% 5,644 4,583 23.2%
------------------------ ------------ ------------------------------------
27 Total Noninterest Income (Loss) 15,961 (27,499) n/m 16,386 96,315 (11,963) n/m
------------------------ ------------ ------------------------------------
28 Noninterest Expense:
29 Salaries and Related Benefits 16,402 12,621 30.0% 17,448 -6.0% 50,221 38,670 29.9%
30 Occupancy 4,008 3,465 15.7% 5,413 -26.0% 14,831 10,297 44.0%
31 Equipment 1,789 903 98.2% 1,607 11.3% 4,618 2,825 63.5%
32 Outsourced Data Processing 2,258 2,098 7.6% 2,378 -5.1% 6,740 6,323 6.6%
33 Professional Fees 913 485 88.2% 779 17.2% 2,580 1,704 51.4%
34 FDIC Insurance Assessment 1,442 131 n/m 3,221 -55.2% 4,820 359 n/m
35 VISA Litigation 0 0 n/m 0 0 (2,338) n/m
36 Other 8,339 5,500 51.6% 7,820 6.6% 24,130 16,756 44.0%
------------------------ ------------ ------------------------------------
37 Total Noninterest Expense 35,151 25,203 39.5% 38,666 -9.1% 107,940 74,596 44.7%
------------------------ ------------ ------------------------------------
38 Income (Loss) Before Income Taxes 34,706 (9,765) n/m 32,447 7.0% 149,550 42,014 256.0%
39 Income Tax Provision (Benefit) 9,449 (9,809) n/m 9,264 2.0% 48,285 2,989 n/m
------------------------ ------------ ------------------------------------
40 Net Income 25,257 44 n/m 23,183 8.9% 101,265 39,025 159.5%
41 Preferred Stock Dividends and
Discount Accretion 1,466 0 n/m 1,107 32.4% 3,151 0 n/m
------------------------ ------------ ------------------------------------
42 Net Income Applicable to
Common Equity $23,791 $44 n/m $22,076 7.8% $98,114 $39,025 151.4%
======================== ============ ====================================
43 Average Common Shares Outstanding 29,210 28,908 1.0% 29,126 0.3% 29,072 28,895 0.6%
44 Diluted Average Common Shares
Outstanding 29,429 29,273 0.5% 29,403 0.1% 29,313 29,292 0.1%
45 Per Common Share Data:
46 Basic Earnings $0.81 $0.00 n/m $0.76 6.9% $3.37 $1.35 149.6%
47 Diluted Earnings 0.81 0.00 n/m 0.75 7.9% 3.35 1.33 151.9%
48 Dividends Paid 0.35 0.35 0.0% 0.35 0.0% 1.06 1.04 1.9%