-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JVtK6MnJOuqiQULVaMnl1C8sptng+EnW9+X0agv43I+Mp/qD0iXLawArH1qX4uce 2m653mv5mr0yGGWIRfogfA== 0000311094-07-000001.txt : 20070119 0000311094-07-000001.hdr.sgml : 20070119 20070119161856 ACCESSION NUMBER: 0000311094-07-000001 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20061231 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20070119 DATE AS OF CHANGE: 20070119 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WESTAMERICA BANCORPORATION CENTRAL INDEX KEY: 0000311094 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 942156203 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-09383 FILM NUMBER: 07541009 BUSINESS ADDRESS: STREET 1: 1108 FIFTH AVE CITY: SAN RAFAEL STATE: CA ZIP: 94901 BUSINESS PHONE: (707) 863-6000 MAIL ADDRESS: STREET 1: 4550 MANGELS BLVD STREET 2: A-2Y CITY: FAIRFIELD STATE: CA ZIP: 94585-1200 FORMER COMPANY: FORMER CONFORMED NAME: INDEPENDENT BANKSHARES CORP DATE OF NAME CHANGE: 19830801 8-K 1 jan8k07.txt WABC FORM 8-K FOR 01-19-2007 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 19, 2007 ---------------- WESTAMERICA BANCORPORATION -------------------------- (Exact Name of Registrant as Specified in Its Charter) CALIFORNIA ---------- (State or Other Jurisdiction of Incorporation) 001-9383 94-2156203 -------- ---------- (Commission File Number) (IRS Employer Identification No.) 1108 Fifth Avenue, San Rafael, California 94901 ---------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) (707) 863-6000 -------------- (Registrant's Telephone Number, Including Area Code) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4c)) Page 2 Exhibits - --------- 99.1 Press release dated January 18, 2007 Item 2.02: Results of Operations and Financial Condition - ---------------------------------------------------------- On January 18, 2007 Westamerica Bancorporation announced their annual earnings for 2006. 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 19, 2007 Page 4 INDEX TO EXHIBITS - ----------------- Sequentially Exhibit No. Description Number Page - ----------- ------------------------- ------------- (99.1) Press release dated 5-15 January 18, 2007 Page 5 FOR IMMEDIATE RELEASE January 18, 2007 WESTAMERICA BANCORPORATION REPORTS ANNUAL EARNINGS San Rafael, CA: Westamerica Bancorporation (NASDAQ: WABC), parent company of Westamerica Bank, today reported net income for the year ended December 31, 2006 of $98.8 million, compared to $106.0 million for 2005. Diluted earnings per share (EPS) for 2006 were $3.11, compared to $3.22 for the year 2005. Return on shareholders' equity for the year 2006 was 23.4 percent and return on assets was 2.01 percent, compared to 25.7 percent and 2.09 percent, respectively, for the year 2005. For the year 2006, shareholder dividends totaled $1.30 per share, a seven percent increase over $1.22 per share for the prior year. Net income for the fourth quarter 2006 totaled $24.0 million, or EPS of $0.77, compared to net income of $24.2 million and EPS of $0.77 for the third quarter 2006. Fourth quarter 2006 results also compare to EPS of $0.83 for the fourth quarter 2005, which included company owned life insurance proceeds, which increased EPS $0.01. "Fourth quarter 2006 results benefited from strength in merchant card processing and debit card fees, and cost containment," said Chairman, President and CEO David Payne. "During the fourth quarter, we continued to focus our sales efforts on gathering noninterest bearing demand deposits to support our net interest margin. Our cost of funds rose just 0.07 percent in spite of fierce competition for deposits. As a result, our net interest margin was 4.49 percent, well within the top-tier for the banking industry. Our efficiency ratio remains low at 39.0 percent, and our credit quality remained stable. Westamerica generated a 23 percent return on our shareholders' equity for the fourth quarter 2006," continued Payne. Page 6 Net interest income on a fully taxable equivalent basis was $49.0 million in the fourth quarter of 2006 compared to $50.2 million in the prior quarter and $55.8 million in the same quarter a year ago. The fourth quarter 2006 net interest margin on a taxable equivalent basis was 4.49 percent, compared to 4.54 percent for the previous quarter and 4.80 percent for the fourth quarter of 2005. For the full year 2006, net interest income and the net interest margin on a fully taxable equivalent basis were $204.7 million and 4.57 percent, compared to $223.9 million and 4.82 percent, respectively, for 2005. The provision for credit losses was $70 thousand for the fourth quarter of 2006, compared to $75 thousand for the previous quarter and $150 thousand for the year ago quarter. The level of the credit loss provision reflects management's assessment of credit risk for the loan portfolio. Noninterest income in the fourth quarter of 2006 totaled $13.7 million, compared to $13.9 million reported for the previous quarter and $14.4 million reported for the year ago quarter. The decrease from the prior quarter is primarily attributable to lower deposit service charges offset in part by higher merchant card processing fees. The decrease from the year ago quarter is due to lower deposit service charges and life insurance proceeds of $355 thousand recognized in the fourth quarter 2005. For the full year 2006, noninterest income increased to $55.3 million from $54.5 million for 2005. The $800 thousand annual increase is attributable to higher merchant card processing and debit card fees offset in part by lower deposit service charges. Noninterest income for 2005 includes a $4.9 million securities loss, $3.7 million in gains from the sale of real estate, and $945 thousand in company owned life insurance proceeds, which combined to reduce noninterest income by $260 thousand. Noninterest expense for the fourth quarter of 2006 totaled $24.5 million compared to $25.4 million in the prior quarter and $27.0 million in the year ago quarter. The decrease from the prior quarter is primarily attributable to lower personnel, occupancy, and other expenses offset in part by higher operational losses. The decrease from the year ago quarter is primarily attributable to lower personnel and telephone expenses. For the full year 2006, noninterest expense was $101.7 million, down five percent from $107.3 million for 2005. The decrease is primarily attributable to lower personnel, telephone and insurance expenses, offset in part by higher amortization of intangible assets due to the acquisition of Redwood Empire Bancorp on March 1, 2005. Page 7 Shareholders' equity was $424 million at December 31, 2006, and the equity-to- asset ratio was 8.9 percent. At December 31, 2006, there were approximately 1.4 million shares remaining to purchase under the Company's existing share repurchase program. At December 31, 2006, the Company's assets totaled $4.8 billion and loans outstanding totaled $2.5 billion. Westamerica Bancorporation, through its wholly owned subsidiary Westamerica Bank, operates 87 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, 2006 and Form 10-K for the year ended December 31, 2005, 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 18, 2007 FINANCIAL HIGHLIGHTS December 31, 2006 1. Net Income Summary.
(dollars in thousands except per-share data) Q4'06 / Q4'06 / 12/31'06YTD/ Q4'06 Q4'05 Q4'05 Q3'06 Q3'06 12/31'06YTD 12/31'05YTD 12/31'05YTD --------------------------------------------------------------------------------------------- 1 Net Interest Income $49,029 $55,830 -12.2% $50,197 -2.3% $204,702 $223,866 -8.6% (Fully Taxable Equivalent) 2 Provision for Credit Losses 70 150 -53.3% 75 -6.7% 445 900 -50.6% 3 Noninterest Income: 4 Investment Securities 0 0 n/m 0 n/m 0 (4,903) n/m (Loss/Impairment) Gains 5 Gains on Sales of 0 0 n/m 0 n/m 239 3,700 n/m Real Property 6 Other 13,747 14,427 -4.7% 13,899 -1.1% 55,108 55,743 -1.1% ------------------------ ------------ ------------------------ 7 Total Noninterest Income 13,747 14,427 -4.7% 13,899 -1.1% 55,347 54,540 1.5% ------------------------ ------------ ------------------------ 8 Noninterest Expense 24,492 26,980 -9.2% 25,403 -3.6% 101,724 107,250 -5.2% 9 Income Tax Provision (FTE) 14,256 16,003 -10.9% 14,381 -0.9% 59,074 64,215 -8.0% ------------------------ ------------ ------------------------ 10 Net Income $23,958 $27,124 -11.7% $24,237 -1.2% $98,806 $106,041 -6.8% ======================== ============ ======================== 11 Average Shares Outstanding 30,699 32,029 -4.2% 31,070 -1.2% 31,202 32,291 -3.4% 12 Diluted Average Shares 31,204 32,572 -4.2% 31,558 -1.1% 31,739 32,897 -3.5% Outstanding 13 Operating Ratios: 14 Basic Earnings Per Share $0.78 $0.85 -7.8% $0.78 0.0% $3.17 $3.28 -3.6% 15 Diluted Earnings Per Share 0.77 0.83 -7.8% 0.77 -0.0% 3.11 3.22 -3.4% 16 Return On Assets 1.98% 2.11% 1.98% 2.01% 2.09% 17 Return On Equity 22.8% 25.5% 22.7% 23.4% 25.7% 18 Net Interest Margin (FTE) 4.49% 4.80% 4.54% 4.57% 4.82% 19 Efficiency Ratio (FTE) 39.0% 38.4% 39.6% 39.1% 38.5% 20 Dividends Paid Per Share $0.34 $0.32 6.3% $0.32 6.3% $1.30 $1.22 6.6% 21 Dividend Payout Ratio 44% 38% 42% 42% 38%
2. Net Interest Income.
(dollars in thousands) Q4'06 / Q4'06 / 12/31'06YTD/ Q4'06 Q4'05 Q4'05 Q3'06 Q3'06 12/31'06YTD 12/31'05YTD 12/31'05YTD --------------------------------------------------------------------------------------------- 1 Interest and Fee Income (FTE) $66,511 $68,349 -2.7% $67,185 -1.0% $269,970 $267,515 0.9% 2 Interest Expense 17,482 12,519 39.6% 16,988 2.9% 65,268 43,649 49.5% ------------------------ ------------ ------------------------ 3 Net Interest Income (FTE) $49,029 $55,830 -12.2% $50,197 -2.3% $204,702 $223,866 -8.6% ======================== ============ ======================== 4 Average Earning Assets $4,366,676 $4,639,319 -5.9% $4,419,609 -1.2% $4,477,047 $4,643,307 -3.6% 5 Average Interest-Bearing 2,975,221 3,168,720 -6.1% 3,045,282 -2.3% 3,091,230 3,218,150 -3.9% Liabilities 6 Yield on Earning Assets (FTE) 6.07% 5.87% 6.05% 6.03% 5.76% 7 Cost of Funds 1.58% 1.07% 1.51% 1.46% 0.94% 8 Net Interest Margin (FTE) 4.49% 4.80% 4.54% 4.57% 4.82% 9 Interest Expense/Interest- 2.32% 1.56% 2.20% 2.11% 1.36% Bearing Liabilities 10 Net Interest Spread (FTE) 3.75% 4.31% 3.85% 3.92% 4.40%
Page 9 WESTAMERICA BANCORPORATION Public Information January 18, 2007 3. Loans & Other Earning Assets.
(average volume, dollars in thousands) Q4'06 / Q4'06 / 12/31'06YTD/ Q4'06 Q4'05 Q4'05 Q3'06 Q3'06 12/31'06YTD 12/31'05YTD 12/31'05YTD --------------------------------------------------------------------------------------------- 1 Total Assets $4,793,700 $5,089,078 -5.8% $4,846,286 -1.1% $4,910,671 $5,066,351 -3.1% 2 Total Earning Assets 4,366,676 4,639,319 -5.9% 4,419,609 -1.2% 4,477,047 4,643,307 -3.6% 3 Total Loans 2,547,524 2,616,813 -2.6% 2,555,472 -0.3% 2,576,791 2,576,363 0.0% 4 Commercial Loans 637,194 698,375 -8.8% 654,179 -2.6% 665,414 694,212 -4.1% 5 Commercial Real Estate Loans 915,578 921,141 -0.6% 913,919 0.2% 916,677 906,315 1.1% 6 Consumer Loans 994,752 997,297 -0.3% 987,373 0.7% 994,700 975,836 1.9% 7 Total Investment Securities 1,819,152 2,022,506 -10.1% 1,864,137 -2.4% 1,900,256 2,066,944 -8.1% 8 Available For Sale 630,827 670,499 -5.9% 636,480 -0.9% 645,854 728,649 -11.4% (Market Value) 9 Held To Maturity 1,188,325 1,352,007 -12.1% 1,227,657 -3.2% 1,254,403 1,338,295 -6.3% 10 HTM Unrealized (Loss) (9,356) (13,434) n/m (6,777) n/m (9,356) (13,434) n/m at Period-End 11 Loans / Deposits 71.7% 67.1% 70.9% 70.6% 66.9%
4. Deposits & Other Interest-Bearing Liabilities.
(average volume, dollars in thousands) Q4'06 / Q4'06 / 12/31'06YTD/ Q4'06 Q4'05 Q4'05 Q3'06 Q3'06 12/31'06YTD 12/31'05YTD 12/31'05YTD --------------------------------------------------------------------------------------------- 1 Total Deposits $3,553,379 $3,898,859 -8.9% $3,602,565 -1.4% $3,648,102 $3,848,675 -5.2% 2 Noninterest Demand 1,332,213 1,435,193 -7.2% 1,311,786 1.6% 1,329,107 1,384,483 -4.0% 3 Interest-Bearing Transaction 593,236 655,109 -9.4% 602,996 -1.6% 617,956 632,897 -2.4% 4 Savings 896,538 1,073,971 -16.5% 943,396 -5.0% 956,699 1,105,664 -13.5% 5 Other Time >$100K 505,390 470,016 7.5% 509,741 -0.9% 504,980 444,862 13.5% 6 Other Time < $100K 226,002 264,570 -14.6% 234,646 -3.7% 239,360 280,769 -14.7% 7 Total Short-Term Borrowings 717,114 664,752 7.9% 717,524 -0.1% 734,970 716,984 2.5% 8 Fed Funds Purchased 517,913 480,649 7.8% 485,095 6.8% 525,068 550,523 -4.6% 9 Other Short-Term Funds 199,201 184,103 8.2% 232,429 -14.3% 209,902 166,461 26.1% 10 Long-Term Debt 36,941 40,302 -8.3% 36,978 -0.1% 37,265 36,975 0.8% 11 Shareholders' Equity 417,597 421,536 -0.9% 422,735 -1.2% 422,541 412,559 2.4% 12 Demand Deposits / 37.5% 36.8% 36.4% 36.4% 36.0% Total Deposits 13 Transaction & Savings 79.4% 81.2% 79.3% 79.6% 81.1% Deposits / Total Deposits
Page 10 WESTAMERICA BANCORPORATION Public Information January 18, 2007 5. Interest Yields Earned & Rates Paid.
(dollars in thousands) Q4'06 Q4'05 --------------------------------- Q3'06 ------------------------------------ Average Income/ Yield/ Yield/ Average Income/ Yield/ Volume Expense Rate Rate Volume Expense Rate --------------------------------------------------------------------------------- 1 Interest & Fees Income Earned 2 Total Earning Assets (FTE) $4,366,676 $66,511 6.07% 6.05% $4,639,319 $68,349 5.87% 3 Total Loans (FTE) 2,547,524 42,449 6.61% 6.61% 2,616,813 41,971 6.36% 4 Commercial Loans (FTE) 637,194 12,810 7.69% 7.74% 698,375 13,027 7.32% 5 Commercial Real Estate 915,578 16,361 7.09% 7.12% 921,141 16,580 7.14% Loans 6 Consumer Loans 994,752 13,278 5.41% 5.36% 997,297 12,364 5.03% 7 Total Investment 1,819,152 24,062 5.29% 5.28% 2,022,506 26,378 5.22% Securities (FTE) 8 Interest Expense Paid 9 Total Earning Assets 4,366,676 17,482 1.58% 1.52% 4,639,319 12,519 1.07% 10 Total Interest-Bearing 2,975,221 17,482 2.32% 2.20% 3,168,720 12,519 1.56% Liabilities 11 Total Interest-Bearing 2,221,166 9,282 1.66% 1.56% 2,463,666 6,586 1.06% Deposits 12 Interest-Bearing 593,236 486 0.32% 0.28% 655,109 457 0.28% Transaction 13 Savings 896,538 1,203 0.53% 0.49% 1,073,971 953 0.35% 14 Other Time < $100K 226,002 1,772 3.11% 2.91% 264,570 1,444 2.17% 15 Other Time >$100K 505,390 5,821 4.57% 4.43% 470,016 3,732 3.15% 16 Total Short-Term Borrowings 717,114 7,622 4.16% 4.04% 664,752 5,296 3.12% 17 Fed Funds Purchased 517,913 6,936 5.24% 5.25% 480,649 4,888 3.98% 18 Other Short-Term Funds 199,201 686 1.37% 1.52% 184,103 408 0.88% 19 Long-Term Debt 36,941 578 6.26% 6.25% 40,302 637 6.32% 20 Net Interest Income and Margin (FTE) $49,029 4.49% 4.54% $55,830 4.80%
6. Noninterest Income.
(dollars in thousands except per share data) Q4'06 / Q4'06 / 12/31'06YTD/ Q4'06 Q4'05 Q4'05 Q3'06 Q3'06 12/31'06YTD 12/31'05YTD 12/31'05YTD --------------------------------------------------------------------------------------------- 1 Service Charges on $6,990 $7,202 -2.9% $7,155 -2.3% $28,414 $29,106 -2.4% Deposit Accounts 2 Merchant Credit Card Income 2,652 2,751 -3.6% 2,430 9.1% 9,860 9,097 8.4% 3 ATM Fees & Interchange 676 653 3.5% 753 -10.2% 2,824 2,711 4.2% 4 Debit Card Fees 902 865 4.3% 883 2.2% 3,489 3,207 8.8% 5 Financial Services Fees 331 380 -13.0% 377 -12.1% 1,368 1,387 -1.4% 6 Mortgage Banking Income 44 62 -28.5% 36 24.2% 179 292 -38.7% 7 Trust Fees 311 275 13.0% 298 4.4% 1,178 1,181 -0.2% 8 Other Income 1,841 2,239 -17.8% 1,967 -6.5% 7,796 8,762 -11.0% ------------------------ ------------ ------------------------ 9 Sub-total 13,747 14,427 -4.7% 13,899 -1.1% 55,108 55,743 -1.1% 10 Gains on Sales of 0 0 n/m 0 n/m 239 3,700 n/m Real Property 11 Investment Securities 0 0 n/m 0 n/m 0 (4,903) n/m Gains (Losses) ------------------------ ------------ ------------------------ 12 Total Noninterest Income $13,747 $14,427 -4.7% $13,899 -1.1% $55,347 $54,540 1.5% ======================== ============ ======================== 13 Operating Ratios: 14 Total Revenue (FTE) $62,776 $70,257 -10.6% $64,096 -2.1% $260,049 $278,406 -6.6% 15 Noninterest Income / 21.9% 20.5% 21.7% 21.3% 19.6% Revenue (FTE) 16 Service Charges / 0.78% 0.73% 0.79% 0.78% 0.76% Deposits (annualized) 17 Total Revenue Per Share $8.11 $8.70 -6.8% $8.18 -0.9% $8.33 $8.62 -3.3% (annualized)
Page 11 WESTAMERICA BANCORPORATION Public Information January 18, 2007 7. Noninterest Expense.
(dollars in thousands) Q4'06 / Q4'06 / 12/31'06YTD/ Q4'06 Q4'05 Q4'05 Q3'06 Q3'06 12/31'06YTD 12/31'05YTD 12/31'05YTD --------------------------------------------------------------------------------------------- 1 Salaries & Benefits $12,405 $13,866 -10.5% $13,080 -5.2% $52,302 $55,854 -6.4% 2 Occupancy 3,227 3,196 1.0% 3,321 -2.8% 13,047 12,579 3.7% 3 Equipment 1,174 1,321 -11.2% 1,194 -1.6% 4,949 5,212 -5.1% 4 Data Processing 1,529 1,524 0.3% 1,503 1.7% 6,097 6,156 -1.0% 5 Courier 891 952 -6.5% 904 -1.5% 3,627 3,831 -5.3% 6 Postage 431 441 -2.1% 410 5.3% 1,648 1,615 2.0% 7 Telephone 365 497 -26.5% 371 -1.5% 1,634 2,115 -22.8% 8 Professional Fees 614 599 2.5% 532 15.4% 2,437 2,420 0.7% 9 Stationery & Supplies 314 314 0.1% 307 2.3% 1,163 1,264 -8.0% 10 Loan Expense 199 200 -0.6% 253 -21.3% 882 945 -6.7% 11 Operational Losses 320 303 5.6% 129 147.9% 892 915 -2.5% 12 Amortization of Identifiable 1,016 1,064 -4.5% 1,016 0.0% 4,087 3,625 12.8% Intangibles 13 Other Operating 2,007 2,703 -25.8% 2,383 -15.8% 8,959 10,719 -16.4% ------------------------ ------------ ------------------------ 14 Total Noninterest Expense $24,492 $26,980 -9.2% $25,403 -3.6% $101,724 $107,250 -5.2% ======================== ============ ======================== 15 Full Time Equivalent Staff 891 945 -5.7% 901 -1.1% 909 959 -5.2% 16 Average Assets / Full Time $5,380 $5,385 -0.1% $5,379 0.0% $5,402 $5,283 2.3% Equivalent Staff 17 Operating Ratios: 18 FTE Revenue / Full Time $280 $295 -5.2% $282 -1.0% $286 $290 -1.5% Equivalent Staff (annualized) 19 Noninterest Expense / 2.23% 2.31% 2.28% 2.27% 2.31% Earning Assets (annualized) 20 Noninterest Expense / 39.0% 38.4% 39.6% 39.1% 38.5% Revenues
Page 12 WESTAMERICA BANCORPORATION Public Information January 18, 2007 8. Provision for Credit Losses.
(dollars in thousands) Q4'06 / Q4'06 / 12/31'06YTD/ Q4'06 Q4'05 Q4'05 Q3'06 Q3'06 12/31'06YTD 12/31'05YTD 12/31'05YTD --------------------------------------------------------------------------------------------- 1 Provision for Credit Losses $70 $150 -53.3% $75 -6.7% $445 $900 -50.6% 2 Gross Loan Losses 848 701 20.9% 1,011 -16.2% 3,622 2,738 32.3% 3 Net Loan Losses 78 287 -72.9% 421 -81.5% 963 728 32.3% 4 Recoveries / Gross Loan Losses 91% 59% 58% 73% 73% 5 Average Total Loans $2,547,524 $2,616,813 -2.6% $2,555,472 -0.3% $2,576,791 $2,576,363 0.0% 6 Net Loan Losses / Loans 0.01% 0.04% 0.07% 0.04% 0.03% (annualized) 7 Provision for Credit Losses / 0.01% 0.02% 0.01% 0.02% 0.03% Loans (annualized) 8 Provision for Credit Losses / 89.9% 52.3% 17.8% 46.2% 123.6% Net Loan Losses
9. Credit Quality.
(dollars in thousands) 12/31/06 / 12/31/06 / 12/31/06 12/31/05 12/31/05 9/30/06 9/30/06 6/30/06 3/31/06 9/30/05 1 Nonperforming Nonaccrual Loans $61 $2,068 -97.1% $1,162 -94.8% $1,613 $2,993 $2,292 2 Performing Nonaccrual Loans 4,404 4,256 3.5% 3,889 13.2% 3,899 3,232 4,514 ------------------------ ------------ ------------------------------------ 3 Total Nonaccrual Loans 4,465 6,324 -29.4% 5,051 -11.6% 5,512 6,225 6,806 4 Accruing Loans 90+ Days 65 162 n/m 252 n/m 114 29 1,334 Past Due ------------------------ ------------ ------------------------------------ 5 Total Nonperforming Loans 4,530 6,486 -30.2% 5,303 -14.6% 5,626 6,254 8,140 6 Repossessed Collateral 647 0 n/m 656 n/m 656 0 0 7 Total Nonperforming Loans & ------------------------ ------------ ------------------------------------ 8 Repossessed Collateral $5,177 $6,486 -20.2% $5,959 -13.1% $6,282 $6,254 $8,140 ======================== ============ ==================================== 9 Classified Loans $20,180 $29,997 -32.7% $24,767 -18.5% $25,681 $28,878 $36,656 ======================== ============ ==================================== 10 Allowance for Loan Losses $55,330 $55,849 -0.9% $55,338 -0.0% $55,684 $55,768 $59,674 11 Total Loans Outstanding 2,531,734 2,672,221 -5.3% 2,552,929 -0.8% 2,580,612 2,639,968 2,675,907 12 Total Assets 4,769,335 5,157,559 -7.5% 4,845,360 -1.6% 4,906,886 5,055,553 5,161,473 13 Allowance for Loan Losses / 2.19% 2.09% 2.17% 2.16% 2.11% 2.23% Total Loans 14 Nonperforming Loans / 0.18% 0.24% 0.21% 0.22% 0.24% 0.30% Total Loans 15 Nonperforming Loans & Repossessed Collateral / 16 Total Assets 0.11% 0.13% 0.12% 0.13% 0.12% 0.16% 17 Allowance / Nonperforming 1221% 861% 1044% 990% 892% 733% Loans 18 Allowance for Loan Losses / 274% 186% 223% 217% 193% 163% Classified Loans 19 Classified Loans / 20 (Equity + Allowance 4.2% 6.1% 5.1% 5.4% 6.0% 7.3% for Loan Losses)
Page 13 WESTAMERICA BANCORPORATION Public Information January 18, 2007 10.Capital.
(dollars in thousands, except per-share amounts) 12/31/06 / 12/31/06 / 12/31/06 12/31/05 12/31/05 9/30/06 9/30/06 6/30/06 3/31/06 9/30/05 --------------------------------------------------------------------------------------------- 1 Shareholders' Equity $424,235 $435,064 -2.5% $426,976 -0.6% $421,731 $429,372 $440,406 2 Tier I Regulatory Capital 298,576 296,746 0.6% 300,344 -0.6% 300,661 303,344 297,896 3 Total Regulatory Capital 339,114 339,881 -0.2% 341,207 -0.6% 341,788 345,786 341,147 4 Total Assets 4,769,335 5,157,559 -7.5% 4,845,360 -1.6% 4,906,886 5,055,553 5,161,473 5 Risk-Adjusted Assets 3,057,054 3,267,226 -6.4% 3,094,942 -1.2% 3,127,641 3,222,355 3,275,611 6 Shareholders' Equity / 8.90% 8.44% 8.81% 8.59% 8.49% 8.53% Total Assets 7 Shareholders' Equity / 16.76% 16.28% 16.72% 16.34% 16.26% 16.46% Total Loans 8 Tier I Capital / 6.26% 5.75% 6.20% 6.13% 6.00% 5.77% Total Assets 9 Tier I Capital / 9.77% 9.08% 9.70% 9.61% 9.41% 9.09% Risk-Adjusted Assets 10 Total Capital / 11.09% 10.40% 11.02% 10.93% 10.73% 10.41% Risk-Adjusted Assets 11 Shares Outstanding 30,547 31,882 -4.2% 30,910 -1.2% 31,201 31,544 32,198 12 Book Value Per Share ($) $13.89 $13.65 1.8% $13.81 0.5% $13.52 $13.61 $13.68 13 Market Value Per Share ($) 50.63 53.07 -4.6% 50.51 0.2% 48.97 51.92 51.65 14 Share Repurchase Programs
(shares in thousands) Q4'06 / Q4'06 / 12/31'06YTD/ Q4'06 Q4'05 Q4'05 Q3'06 Q3'06 12/31'06YTD 12/31'05YTD 12/31'05YTD --------------------------------------------------------------------------------------------- 15 Total Shares Repurchased / 410 500 -17.9% 436 -5.8% 1,766 1,794 -1.5% Canceled 16 Average Repurchase Price $49.32 $52.91 -6.8% $47.98 2.8% $50.36 $52.99 -5.0% 17 Net Shares Repurchased 363 316 14.9% 291 24.7% 1,335 (242) n/m (Issued)
Page 14 WESTAMERICA BANCORPORATION Public Information January 18, 2007 11.Period-End Balance Sheets.
(dollars in thousands) 12/31/06 / 12/31/06 / 12/31/06 12/31/05 12/31/05 9/30/06 9/30/06 6/30/06 3/31/06 9/30/05 --------------------------------------------------------------------------------------------- 1 Assets: 2 Cash and Money Market Assets $185,009 $209,807 -11.8% $192,175 -3.7% $189,204 $188,481 $193,760 3 Investment Securities 615,525 662,388 -7.1% 617,736 -0.4% 620,294 642,996 660,630 Available For Sale 4 Investment Securities 1,165,092 1,337,216 -12.9% 1,211,589 -3.8% 1,243,936 1,307,848 1,358,266 Held to Maturity 5 Loans, gross 2,531,734 2,672,221 -5.3% 2,552,929 -0.8% 2,580,612 2,639,968 2,675,907 6 Allowance For Loan Losses (55,330) (55,849) -0.9% (55,338) -0.0% (55,684) (55,768) (59,674) ------------------------ ------------ ------------------------------------ 7 Loans, net 2,476,404 2,616,372 -5.3% 2,497,591 -0.8% 2,524,928 2,584,200 2,616,233 ------------------------ ------------ ------------------------------------ 8 Premises and Equipment 30,188 33,221 -9.1% 30,979 -2.6% 31,785 32,535 33,640 9 Identifiable Intangible 22,082 26,170 -15.6% 23,098 -4.4% 24,114 25,130 27,233 Assets 10 Goodwill 121,719 121,907 -0.2% 121,719 0.0% 121,719 121,719 124,122 11 Interest Receivable and 153,316 150,478 1.9% 150,473 1.9% 150,906 152,644 147,589 Other Assets ------------------------ ------------ ------------------------------------ 12 Total Assets $4,769,335 $5,157,559 -7.5% $4,845,360 -1.6% $4,906,886 $5,055,553 $5,161,473 ======================== ============ ==================================== 13 Liabilities and Shareholders' Equity: 14 Deposits: 15 Noninterest Bearing $1,341,019 $1,419,313 -5.5% $1,298,519 3.3% $1,330,280 $1,355,426 $1,412,470 16 Interest-Bearing 588,668 658,667 -10.6% 581,705 1.2% 606,633 641,264 635,019 Transaction 17 Savings 865,268 1,022,645 -15.4% 926,262 -6.6% 951,819 1,004,964 1,094,130 18 Time 721,779 745,476 -3.2% 744,645 -3.1% 758,315 737,532 732,316 ------------------------ ------------ ------------------------------------ 19 Total Deposits 3,516,734 3,846,101 -8.6% 3,551,131 -1.0% 3,647,047 3,739,186 3,873,935 ------------------------ ------------ ------------------------------------ 20 Short-Term Borrowed Funds 731,977 775,173 -5.6% 768,841 -4.8% 746,517 784,639 764,143 21 Debt Financing and 36,920 40,281 -8.3% 36,956 -0.1% 36,993 37,030 40,318 Notes Payable 22 Liability For Interest, 59,469 60,940 -2.4% 61,456 -3.2% 54,598 65,326 42,671 Taxes and Other ------------------------ ------------ ------------------------------------ 23 Total Liabilities 4,345,100 4,722,495 -8.0% 4,418,384 -1.7% 4,485,155 4,626,181 4,721,067 ------------------------ ------------ ------------------------------------ 24 Shareholders' Equity: 25 Paid-In Capital $344,263 $345,458 -0.3% $346,603 -0.7% $346,224 $344,941 $345,229 26 Accumulated Other 27 Comprehensive Income 1,850 1,882 n/m 1,805 n/m (4,771) (830) 2,762 28 Retained Earnings 78,122 87,724 -10.9% 78,568 -0.6% 80,278 85,261 92,415 ------------------------ ------------ ------------------------------------ 29 Total Shareholders' Equity 424,235 435,064 -2.5% 426,976 -0.6% 421,731 429,372 440,406 ------------------------ ------------ ------------------------------------ 30 Total Liabilities and $4,769,335 $5,157,559 -7.5% $4,845,360 -1.6% $4,906,886 $5,055,553 $5,161,473 Shareholders' Equity ======================== ============ ====================================
Page 15 WESTAMERICA BANCORPORATION Public Information January 18, 2007 12.Income Statements.
(dollars in thousands, except per-share amounts) Q4'06 / Q4'06 / 12/31'06YTD/ Q4'06 Q4'05 Q4'05 Q3'06 Q3'06 12/31'06YTD 12/31'05YTD 12/31'05YTD --------------------------------------------------------------------------------------------- 1 Interest and Fee Income: 2 Loans $41,197 $40,593 1.5% $41,292 -0.2% $164,756 $155,476 6.0% 3 Money Market Assets and 2 1 n/m 1 n/m 5 3 n/m Funds Sold 4 Investment Securities 7,184 7,638 -5.9% 7,227 -0.6% 29,363 32,885 -10.7% Available For Sale 5 Investment Securities 12,422 14,002 -11.3% 12,845 -3.3% 52,391 54,433 -3.8% Held to Maturity ------------------------ ------------ ------------------------ 6 Total Interest Income 60,805 62,234 -2.3% 61,365 -0.9% 246,515 242,797 1.5% ------------------------ ------------ ------------------------ 7 Interest Expense: 8 Transaction Deposits 486 457 6.4% 430 13.1% 1,771 1,460 21.2% 9 Savings Deposits 1,203 953 26.2% 1,173 2.6% 4,198 3,744 12.1% 10 Time Deposits 7,593 5,176 46.7% 7,408 2.5% 27,578 17,160 60.7% 11 Short-Term Borrowed Funds 7,622 5,296 43.9% 7,399 3.0% 29,389 18,941 55.2% 12 Debt Financing and 578 637 -9.2% 578 0.0% 2,332 2,344 -0.5% Notes Payable 13 Total Interest Expense 17,482 12,519 39.6% 16,988 2.9% 65,268 43,649 49.5% ------------------------ ------------ ------------------------ 14 Net Interest Income 43,323 49,715 -12.9% 44,377 -2.4% 181,247 199,148 -9.0% ------------------------ ------------ ------------------------ 15 Provision for Credit Losses 70 150 -53.3% 75 -6.7% 445 900 -50.6% ------------------------ ------------ ------------------------ 16 Noninterest Income: 17 Service Charges on 6,990 7,202 -2.9% 7,155 -2.3% 28,414 29,106 -2.4% Deposit Accounts 18 Merchant Credit Card 2,652 2,751 -3.6% 2,430 9.1% 9,860 9,097 8.4% 19 Financial Services 331 380 -13.0% 377 -12.1% 1,368 1,387 -1.4% Commissions 20 Mortgage Banking 44 62 -28.5% 36 24.2% 179 292 -38.7% 21 Trust Fees 311 275 13.0% 298 4.4% 1,178 1,181 -0.2% 22 Gains on Sales of 0 0 n/m 0 n/m 239 3,700 n/m Real Property 23 Securities Gains (Losses) 0 0 n/m 0 n/m 0 (4,903) n/m 24 Other 3,419 3,757 -9.0% 3,603 -5.1% 14,109 14,680 -3.9% ------------------------ ------------ ------------------------ 25 Total Noninterest Income 13,747 14,427 -4.7% 13,899 -1.1% 55,347 54,540 1.5% ------------------------ ------------ ------------------------ 26 Noninterest Expense: 27 Salaries and Related 12,405 13,866 -10.5% 13,080 -5.2% 52,302 55,854 -6.4% Benefits 28 Occupancy 3,227 3,196 1.0% 3,321 -2.8% 13,047 12,579 3.7% 29 Equipment 1,174 1,321 -11.2% 1,194 -1.6% 4,949 5,212 -5.1% 30 Data Processing 1,529 1,524 0.3% 1,503 1.7% 6,097 6,156 -1.0% 31 Professional Fees 614 599 2.5% 532 15.4% 2,437 2,420 0.7% 32 Other 5,543 6,474 -14.4% 5,773 -4.0% 22,892 25,029 -8.5% ------------------------ ------------ ------------------------ 33 Total Noninterest Expense 24,492 26,980 -9.2% 25,403 -3.6% 101,724 107,250 -5.2% ------------------------ ------------ ------------------------ 34 Income Before Income Taxes 32,508 37,012 -12.2% 32,798 -0.9% 134,425 145,538 -7.6% 35 Provision for income taxes 8,550 9,888 -13.5% 8,561 -0.1% 35,619 39,497 -9.8% ------------------------ ------------ ------------------------ 36 Net Income $23,958 $27,124 -11.7% $24,237 -1.2% $98,806 $106,041 -6.8% ======================== ============ ======================== 37 Average Shares Outstanding 30,699 32,029 -4.2% 31,070 -1.2% 31,202 32,291 -3.4% 38 Diluted Average Shares 31,204 32,572 -4.2% 31,558 -1.1% 31,739 32,897 -3.5% Outstanding 39 Per Share Data: 40 Basic Earnings $0.78 $0.85 -7.8% $0.78 0.0% $3.17 $3.28 -3.6% 41 Diluted Earnings 0.77 0.83 -7.8% 0.77 -0.0% 3.11 3.22 -3.4% 42 Dividends Paid 0.34 0.32 6.3% 0.32 6.3% 1.30 1.22 6.6%
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