-----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, UH8O4EpJmbfBuokyG+OE5xGPcjFIcWEIF+Zd09QCPWPkGzLfi2fyJTHrk7fvV1ry 4hvMg9DIVDjR/QzDrTRFqA== 0000311094-09-000004.txt : 20090422 0000311094-09-000004.hdr.sgml : 20090422 20090422124515 ACCESSION NUMBER: 0000311094-09-000004 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20090417 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20090422 DATE AS OF CHANGE: 20090422 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: 09763281 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 apr8k09a.txt WABC FORM 8-K FOR 04-17-2009 Page 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): April 17, 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 April 17, 2009 Item 2.02: Results of Operations and Financial Condition - ---------------------------------------------------------- On April 17, 2009 Westamerica Bancorporation announced earnings for the first 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 April 22, 2009 Page 4 INDEX TO EXHIBITS - ----------------- Sequentially Exhibit No. Description Number Page - ----------- ------------------------- ------------- (99.1) Press release dated 5-14 April 17, 2009 Page 5 FOR IMMEDIATE RELEASE April 17, 2009 WESTAMERICA BANCORPORATION REPORTS FIRST QUARTER 2009 RESULTS San Rafael, CA: Westamerica Bancorporation (NASDAQ: WABC), parent company of Westamerica Bank, today reported net income applicable to common shareholders for the first quarter of 2009 of $52.2 million and diluted earnings per common share ("EPS") of $1.80. First quarter 2009 results include Westamerica Bank's acquisition of County Bank from the Federal Deposit Insurance Corporation (FDIC) on February 6, 2009. First quarter 2009 earnings include the results of operations of the former County Bank following the acquisition. Further, the estimated fair value of assets purchased exceeded the estimated fair value of liabilities assumed, resulting in gain recognition under Financial Accounting Standard 141R. First quarter 2009 results also include a refund of federal income taxes related to 2004. The FAS 141R gain and tax refund combined to increase EPS by $1.00. "The integration of County Bank is proceeding consistent with our historical merger timelines. We would expect to complete the integration during the third quarter this year," said Chairman, President and CEO David Payne. "County Bank loans and foreclosed loan collateral are covered by a loss-sharing agreement with the FDIC. Annualized net losses on legacy Westamerica Bank loans represented 0.42 percent of such loans. We are pleased to have delivered an annualized return on our common shareholders' equity, excluding the FAS 141R gain and tax refund, of 21 percent this quarter," added Payne. Total assets grew $1.4 billion from $4.0 billion at December 31, 2008 to $5.4 billion at March 31, 2009 due to the County Bank acquisition. As a result, earnings in prior periods were generated from a lower asset base. Net income in the fourth quarter of 2008 totaled $20.8 million and EPS of $0.71, including securities losses equivalent to $0.07 EPS. Net income in the first quarter of 2008 totaled $26.8 million and EPS of $0.92, including benefits from Visa's initial public offering which increased EPS by $0.16. Net interest income on a fully taxable equivalent (FTE) basis was $59.4 million for the first quarter of 2009, compared to $49.9 million for the fourth quarter of 2008 and to $48.0 million for the first quarter of 2008. The increase in net interest income in the first quarter 2009 is due to the acquisition of County Bank on February 6, 2009. The first quarter 2009 net interest margin on a fully taxable equivalent basis was 5.35 percent, compared to 5.44 percent and 4.79 percent for the fourth and first quarters of 2008, respectively. The provision for loan losses was $1.8 million for the first quarter of 2009, compared to $900 thousand for the fourth quarter of 2008, and $600 thousand for the first quarter of 2008. First quarter 2009 net loan losses totaled $2.5 million or 0.42 percent (annualized) of average loans not covered by the FDIC loss sharing agreement, compared to 1.08 percent and 0.14 percent, respectively, for the fourth and first quarters of 2008. Noninterest income for the first quarter of 2009 totaled $15.1 million, excluding the FAS 141R gain. Noninterest income for the fourth quarter 2008 totaled $13.2 million, excluding $3.3 million in securities losses. Noninterest income in the first quarter 2008 totaled $13.7 million, excluding $5.7 million in securities gains. The increase in noninterest income in the first quarter 2009 compared to the fourth and first quarters of 2008 is primarily due to an increase in deposit service charges from the larger deposit base following the County Bank acquisition. Page 6 Noninterest expense for the first quarter of 2009 totaled $34.1 million, including approximately $400 thousand in incremental expenses related to the County Bank acquisition. These incremental expenses consisted of legal and professional fees, travel expenses, temporary signage and other expenses. Noninterest expense for the fourth quarter of 2008 totaled $26.2 million. Noninterest expense for the first quarter 2008 totaled $25.4 million, excluding the reversal of a $2.3 million accrual for Visa related litigation. The increased noninterest expense in the first quarter 2009 compared to the fourth and first quarters of 2008 reflects increased operating costs from the acquisition of County Bank. Personnel costs are higher by approximately $3.5 million, and occupancy and equipment costs are higher by approximately $2.3 million. Westamerica recognized an identifiable intangible asset related to the County Bank customer deposit base totaling $28.1 million. As a result, amortization of identifiable intangible assets increased by approximately $860 thousand in the first quarter 2009 compared to the fourth and first quarters of 2008. Excluding the FAS 141R gain, the efficiency ratio was 45.8 percent in the first quarter 2009. At March 31, 2009, Westamerica Bancorporation's tangible common equity-to-asset ratio was 5.5 percent, Westamerica Bancorporation's total regulatory capital ratio was 11.4 percent, and Westamerica Bank's total regulatory capital ratio was 10.9 percent. At March 31, 2009, the Company's assets totaled $5.4 billion and loans outstanding totaled $3.4 billion. Westamerica Bancorporation, through its wholly owned subsidiary Westamerica Bank, operates commercial banking and trust offices throughout Northern and Central California. Westamerica Bancorporation Web Address: www.westamerica.com For additional information contact: Westamerica Bancorporation Robert A. Thorson - SVP & Chief Financial Officer 707-863-6840 Page 7 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 annual report for the year ended December 31, 2008 filed with the Securities and Exchange Commission describes 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 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 8 WESTAMERICA BANCORPORATION Public Information April 17, 2009 FINANCIAL HIGHLIGHTS March 31, 2009 1. Net Income Summary.
(dollars in thousands except per-share amounts) Q1'09 / Q1'09 / 3/31'09YTD / Q1'09 Q1'08 Q1'08 Q4'08 Q4'08 3/31'09YTD 3/31'08YTD 3/31'08YTD ------------------------------------------------------------------------------------------------ 1 Net Interest Income (Fully Taxable Equivalent) $59,359 $47,982 23.7% $49,850 19.1% $59,359 $47,982 23.7% 2 Provision for Loan Losses 1,800 600 200.0% 900 100.0% 1,800 600 200.0% 3 Noninterest Income: 4 Net Gain (Loss) From Equity Securities 0 5,698 n/m (3,269) n/m 0 5,698 n/m 5 FAS 141R Gain 48,844 0 n/m 0 100.0% 48,844 0 n/m 6 Other 15,124 13,680 10.6% 13,177 14.8% 15,124 13,680 10.6% ------------------------ ------------ ------------------------ 7 Total Noninterest Income 63,968 19,378 n/m 9,908 n/m 63,968 19,378 n/m 8 Noninterest Expense: 9 VISA Litigation 0 (2,338) n/m 0 n/m 0 (2,338) n/m 10 Other 34,123 25,394 34.4% 26,166 30.4% 34,123 25,394 34.4% ------------------------ ------------ ------------------------ 11 Total Noninterest Expense 34,123 23,056 48.0% 26,166 30.4% 34,123 23,056 48.0% ------------------------ ------------ ------------------------ 12 Income Before Taxes (FTE) 87,404 43,704 100.0% 32,692 167.4% 87,404 43,704 100.0% 13 Income Tax Provision (FTE) 34,579 16,926 104.3% 11,882 191.0% 34,579 16,926 104.3% ------------------------ ------------ ------------------------ 14 Net Income 52,825 26,778 97.3% 20,810 153.8% 52,825 26,778 97.3% 15 Preferred Stock Dividends and Discount Accretion 578 0 n/m 0 n/m 578 0 n/m ------------------------ ------------ ------------------------ 16 Net Income Applicable to $52,247 $26,778 95.1% $20,810 151.1% $52,247 $26,778 95.1% Common Equity ======================== ============ ======================== 17 Average Common Shares Outstanding 28,876 28,861 0.1% 28,884 -0.0% 28,876 28,861 0.1% 18 Diluted Average Common Shares Outstanding 29,105 29,210 -0.4% 29,218 -0.4% 29,105 29,210 -0.4% 19 Operating Ratios: 20 Basic Earnings Per Common Share $1.81 $0.93 94.6% $0.72 151.2% $1.81 $0.93 94.6% 21 Diluted Earnings Per Common Share 1.80 0.92 95.7 0.71 152.7% 1.80 0.92 95.7% 22 Return On Assets (annualized) 4.24% 2.43% 2.04% 4.24% 2.43% 23 Return On Common Equity (annualized) 48.0% 27.3% 20.6% 48.0% 27.3% 24 Net Interest Margin (FTE) (annualized) 5.35% 4.79% 5.44% 5.35% 4.79% 25 Efficiency Ratio (FTE) 27.7% 34.2% 43.8% 27.7% 34.2% 26 Dividends Paid Per Common Share $0.36 $0.34 5.9% $0.35 2.9% $0.36 $0.34 5.9% 27 Common Dividend Payout Ratio 20% 37% 49% 20% 37%
2. Net Interest Income.
(dollars in thousands) Q1'09 / Q1'09 / 3/31'09YTD / Q1'09 Q1'08 Q1'08 Q4'08 Q4'08 3/31'09YTD 3/31'08YTD 3/31'08YTD ------------------------------------------------------------------------------------------------ 1 Interest and Fee Income (FTE) $64,192 $60,810 5.6% $54,442 17.9% $64,192 $60,810 5.6% 2 Interest Expense 4,833 12,828 -62.3% 4,592 5.3% 4,833 12,828 -62.3% ------------------------ ------------ ------------------------ 3 Net Interest Income (FTE) $59,359 $47,982 23.7% $49,850 19.1% $59,359 $47,982 23.7% ======================== ============ ======================== 4 Average Earning Assets $4,475,371 $4,028,221 11.1% $3,654,966 22.4% $4,475,371 $4,028,221 11.1% 5 Average Interest-Bearing Liabilities 3,155,685 2,771,526 13.9% 2,425,928 30.1% 3,155,685 2,771,526 13.9% 6 Yield on Earning Assets (FTE) (annualized) 5.79% 6.06% 5.94% 5.79% 6.06% 7 Cost of Funds (annualized) 0.44% 1.27% 0.50% 0.44% 1.27% 8 Net Interest Margin (FTE) (annualized) 5.35% 4.79% 5.44% 5.35% 4.79% 9 Interest Expense/Interest-Bearing Liabilities (annualized) 0.62% 1.85% 0.75% 0.62% 1.85% 10 Net Interest Spread (FTE) (annualized) 5.17% 4.21% 5.19% 5.17% 4.21%
Page 9 WESTAMERICA BANCORPORATION Public Information April 17, 2009 FINANCIAL HIGHLIGHTS March 31, 2009 3. Loans & Other Earning Assets.
(average volume, dollars in thousands) Q1'09 / Q1'09 / 3/31'09YTD / Q1'09 Q1'08 Q1'08 Q4'08 Q4'08 3/31'09YTD 3/31'08YTD 3/31'08YTD ------------------------------------------------------------------------------------------------ 1 Total Assets $4,998,964 $4,433,934 12.7% $4,053,295 23.3% $4,998,964 $4,433,934 12.7% 2 Total Earning Assets 4,475,371 4,028,221 11.1% 3,654,966 22.4% 4,475,371 4,028,221 11.1% 3 Total Loans 3,135,944 2,477,666 26.6% 2,399,741 30.7% 3,135,944 2,477,666 26.6% 4 Commercial Loans 885,232 616,994 43.5% 586,245 51.0% 885,232 616,994 43.5% 5 Commercial Real Estate Loans 1,191,260 850,504 40.1% 819,645 45.3% 1,191,260 850,504 40.1% 6 Consumer Loans 1,059,452 1,010,168 4.9% 993,851 6.6% 1,059,452 1,010,168 4.9% 7 Total Investment Securities 1,339,427 1,550,555 -13.6% 1,255,225 6.7% 1,339,427 1,550,555 -13.6% 8 Available For Sale (Market Value) 400,092 518,217 -22.8% 299,494 33.6% 400,092 518,217 -22.8% 9 Held To Maturity 939,335 1,032,338 -9.0% 955,731 -1.7% 939,335 1,032,338 -9.0% 10 HTM Unrealized Gain at Period-End 1,768 13,324 n/m 885 n/m 1,768 13,324 n/m 11 Loans / Deposits 81.2% 77.1% 77.0% 81.2% 77.1%
4. Deposits & Other Interest-Bearing Liabilities.
(average volume, dollars in thousands) Q1'09 / Q1'09 / 3/31'09YTD / Q1'09 Q1'08 Q1'08 Q4'08 Q4'08 3/31'09YTD 3/31'08YTD 3/31'08YTD ------------------------------------------------------------------------------------------------ 1 Total Deposits $3,862,435 $3,212,347 20.2% $3,115,989 24.0% $3,862,435 $3,212,347 20.2% 2 Noninterest Demand 1,286,013 1,199,604 7.2% 1,167,490 10.2% 1,286,013 1,199,604 7.2% 3 Interest-Bearing Transaction 667,425 546,417 22.1% 533,746 25.0% 667,425 546,417 22.1% 4 Savings 877,729 768,443 14.2% 742,897 18.1% 877,729 768,443 14.2% 5 Time greater than $100K 664,474 500,936 32.6% 479,207 38.7% 664,474 500,936 32.6% 6 Time less than $100K 366,794 196,947 86.2% 192,649 90.4% 366,794 196,947 86.2% 7 Total Short-Term Borrowings 552,645 722,025 -23.5% 450,778 22.6% 552,645 722,025 -23.5% 8 Fed Funds Purchased 314,856 565,415 -44.3% 325,275 -3.2% 314,856 565,415 -44.3% 9 Other Short-Term Funds 237,789 156,610 51.8% 125,503 89.5% 237,789 156,610 51.8% 10 Long-Term Debt 26,618 36,758 -27.6% 26,651 -0.1% 26,618 36,758 -27.6% 11 Shareholders' Equity 485,054 394,273 23.0% 401,598 20.8% 485,054 394,273 23.0% 12 Demand Deposits / Total Deposits 33.3% 37.3% 37.5% 33.3% 37.3% 13 Transaction & Savings Deposits / Total Deposits 73.3% 78.3% 78.4% 73.3% 78.3%
5. Interest Yields Earned & Rates Paid.
(dollars in thousands) Q1'09 Q1'08 ------------------------------------ Q4'08 ------------------------------------ Average Income/ Yield */ Yield*/ Average Income/ Yield*/ Volume Expense Rate Rate Volume Expense Rate ------------------------------------------------------------------------------------ 1 Interest & Fees Income Earned 2 Total Earning Assets (FTE) $4,475,371 $64,192 5.79% 5.94% $4,028,221 $60,810 6.06% 3 Total Loans (FTE) 3,135,944 46,187 5.97% 6.14% 2,477,666 39,897 6.48% 4 Commercial Loans (FTE) 885,232 12,785 5.86% 6.19% 616,994 11,288 7.36% 5 Commercial Real Estate Loans 1,191,260 19,072 6.49% 7.02% 850,504 14,953 7.07% 6 Consumer Loans 1,059,452 14,330 5.49% 5.39% 1,010,168 13,656 5.44% 7 Total Investment Securities (FTE) 1,339,427 18,005 5.38% 5.54% 1,550,555 20,913 5.40% 8 Interest Expense Paid 9 Total Earning Assets 4,475,371 4,833 0.44% 0.50% 4,028,221 12,828 1.27% 10 Total Interest-Bearing Liabilities 3,155,685 4,833 0.62% 0.75% 2,771,526 12,828 1.85% 11 Total Interest-Bearing Deposits 2,576,422 3,784 0.60% 0.73% 2,012,743 7,328 1.46% 12 Interest-Bearing Transaction 667,425 205 0.12% 0.19% 546,417 452 0.33% 13 Savings 877,729 900 0.42% 0.41% 768,443 1,330 0.70% 14 Time less than $100K 366,794 1,452 1.61% 2.20% 196,947 1,589 3.25% 15 Time greater than $100K 664,474 1,227 0.75% 1.24% 500,936 3,957 3.18% 16 Total Short-Term Borrowings 552,645 626 0.46% 0.52% 722,025 4,922 2.70% 17 Fed Funds Purchased 314,856 151 0.19% 0.50% 565,415 4,599 3.22% 18 Other Short-Term Funds 237,789 475 0.81% 0.58% 156,610 323 0.83% 19 Long-Term Debt 26,618 423 6.35% 6.34% 36,758 578 6.29% 20 Net Interest Income and Margin (FTE) $59,359 5.35% 5.44% $47,982 4.79% * Annualized
Page 10 WESTAMERICA BANCORPORATION Public Information April 17, 2009 FINANCIAL HIGHLIGHTS March 31, 2009 6. Noninterest Income.
(dollars in thousands except per share amounts) Q1'09 / Q1'09 / 3/31'09YTD / Q1'09 Q1'08 Q1'08 Q4'08 Q4'08 3/31'09YTD 3/31'08YTD 3/31'08YTD ------------------------------------------------------------------------------------------------ 1 Service Charges on Deposit Accounts $8,422 $7,296 15.4% $7,383 14.1% $8,422 $7,296 15.4% 2 Merchant Credit Card Income 2,432 2,580 -5.7% 2,623 -7.3% 2,432 2,580 -5.7% 3 ATM Fees & Interchange 813 718 13.1% 685 18.7% 813 718 13.1% 4 Debit Card Fees 856 904 -5.3% 917 -6.7% 856 904 -5.3% 5 Financial Services Commissions 154 230 -33.3% 141 8.9% 154 230 -33.3% 6 Mortgage Banking Income 17 40 -57.2% 19 -7.6% 17 40 -57.2% 7 Trust Fees 364 303 20.3% 255 42.9% 364 303 20.3% 8 Other Income 2,066 1,609 28.4% 1,154 79.0% 2,066 1,609 28.4% ------------------------ ------------ ------------------------ 9 Sub-total 15,124 13,680 10.6% 13,177 14.8% 15,124 13,680 10.6% 10 Net Gain (Loss) From Equity Securities 0 5,698 n/m (3,269) n/m 0 5,698 n/m 11 FAS 141R Gain 48,844 0 n/m 0 n/m 48,844 0 n/m ------------------------ ------------ ------------------------ 12 Total Noninterest Income $63,968 $19,378 n/m $9,908 n/m $63,968 $19,378 n/m ======================== ============ ======================== 13 Operating Ratios: 14 Total Revenue (FTE) $123,327 $67,360 83.1% $59,758 106.4% $123,327 $67,360 83.1% 15 Noninterest Income / Revenue (FTE) 51.9% 28.8% 83.1% 16.6% 51.9% 28.8% 16 Service Charges / Avg. Deposits (annualized) 0.88% 0.91% 0.94% 0.88% 0.91% 17 Total Revenue Per Avg. Common Share (annualized) $17.32 $9.39 84.5% $8.23 110.4% $17.32 $9.39 84.5%
7. Noninterest Expense.
(dollars in thousands) Q1'09 / Q1'09 / 3/31'09YTD / Q1'09 Q1'08 Q1'08 Q4'08 Q4'08 3/31'09YTD 3/31'08YTD 3/31'08YTD ------------------------------------------------------------------------------------------------ 1 Salaries & Benefits $16,371 $12,984 26.1% $12,823 27.7% $16,371 $12,984 26.1% 2 Occupancy 5,410 3,390 59.6% 3,405 58.9% 5,410 3,390 59.6% 3 Equipment 1,222 921 32.7% 976 25.2% 1,222 921 32.7% 4 Data Processing 2,104 2,120 -0.7% 2,117 -0.6% 2,104 2,120 -0.7% 5 Courier 898 829 8.3% 835 7.6% 898 829 8.3% 6 Postage 462 383 20.5% 346 33.7% 462 383 20.5% 7 Telephone 387 335 15.2% 344 12.2% 387 335 15.2% 8 Professional Fees 888 536 65.8% 920 -3.5% 888 536 65.8% 9 Stationery & Supplies 367 279 31.8% 334 10.0% 367 279 31.8% 10 Loan Expense 994 170 484.2% 258 284.5% 994 170 484.2% 11 Operational Losses 195 184 5.8% 352 -44.5% 195 184 5.8% 12 Amortization of Identifiable Intangibles 1,685 858 96.4% 788 113.8% 1,685 858 96.4% 13 Other Operating 3,140 2,405 30.6% 2,668 17.7% 3,140 2,405 30.6% ------------------------ ------------ ------------------------ 14 Sub-total 34,123 25,394 34.4% 26,166 30.4% 34,123 25,394 34.4% 15 VISA Litigation 0 (2,338) n/m 0 n/m 0 (2,338) n/m ------------------------ ------------ ------------------------ 16 Total Noninterest Expense $34,123 $23,056 48.0% $26,166 30.4% $34,123 $23,056 48.0% ======================== ============ ======================== 17 Full Time Equivalent Staff 1,144 886 29.1% 886 29.1% 1,144 886 29.1% 18 Average (Avg.) Assets / Full Time Equivalent Staff $4,370 $5,004 -12.7% $4,575 -4.5% $4,370 $5,004 -12.7% 19 Operating Ratios: 20 FTE Revenue / Full Time Staff (annualized) $437 $306 42.8% $268 63.1% $437 $306 42.8% 21 Noninterest Expense / Avg. Earning Assets (annualized) 3.09% 2.30% 2.85% 3.09% 2.30% 22 Noninterest Expense / FTE Revenues 27.7% 34.2% 43.8% 27.7% 34.2%
8. Provision for Loan Losses.
(dollars in thousands) Q1'09 / Q1'09 / 3/31'09YTD / Q1'09 Q1'08 Q1'08 Q4'08 Q4'08 3/31'09YTD 3/31'08YTD 3/31'08YTD ------------------------------------------------------------------------------------------------ 1 Average (Avg.) Total Loans $3,135,944 $2,477,666 26.6% $2,399,741 30.7% $3,135,944 $2,477,666 26.6% 2 Avg Total Covered Loans (1) $761,855 $0 n/m $0 n/m $761,855 $0 n/m 3 Avg. Total Non-Covered Loans $2,374,089 $2,477,666 -4.2% $2,399,741 -1.1% $2,374,089 $2,477,666 -4.2% 4 Non-Covered Loans: 5 Provision for Loan Losses $1,800 $600 200.0% $900 100.0% $1,800 $600 200.0% 6 Gross Loan Losses 2,928 1,537 90.4% 6,881 -57.4% 2,928 1,537 90.4% 7 Net Loan Losses 2,467 872 183.0% 6,527 -62.2% 2,467 872 183.0% 8 Recoveries / Gross Loan Losses 16% 43% 5% 16% 43% 9 Net Loan Losses / Avg. Non-Covered Loans (a) 0.42% 0.14% 1.08% 0.42% 0.14% 10 Provision for Loan Losses / Avg. Non-Covered Loans (a) 0.31% 0.10% 0.15% 0.31% 0.10% 11 Provision for Loan Losses / Net Loan Losses 73.0% 68.8% 13.8% 73.0% 68.8% (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 11 WESTAMERICA BANCORPORATION Public Information April 17, 2009 FINANCIAL HIGHLIGHTS March 31, 2009 9. Credit Quality.
(dollars in thousands) 3/31/09 / 3/31/08 / 3/31/09 3/31/08 3/31/08 12/31/08 12/31/08 09/30/08 06/30/08 12/31/07 ------------------------------------------------------------------------------------------------ 1 Non-Covered Nonperforming Loans: 2 Nonperforming Nonaccrual Loans $10,943 $3,728 193.5% $8,883 23.2% $12,132 $11,713 $3,164 3 Performing Nonaccrual Loans 27 1,652 -98.4% 1,143 -97.6% 73 28 1,688 ------------------------ ------------ ------------------------------------ 4 Total Nonaccrual Loans 10,970 5,380 103.9% 10,026 9.4% 12,205 11,741 4,852 5 Accruing Loans 90+ Days Past Due 777 268 189.9% 755 2.9% 363 254 297 ------------------------ ------------ ------------------------------------ 6 Total Non-Covered Nonperforming Loans 11,747 5,648 108.0% 10.781 9.0% 12,568 11,995 5,149 7 Non-Covered Repossessed Loan Collateral 4,756 954 398.5% 3,505 35.7% 814 920 613 ------------------------ ------------ ------------------------------------ 8 Total Non-Covered Nonperforming Assets 16,503 6,602 150.0% 14,286 15.5% 13,382 12,915 5,762 ------------------------ ------------ ------------------------------------ 9 Covered Nonperforming Loans (1): 10 Nonperforming Nonaccrual Loans 34,437 0 n/m 0 n/m 0 0 0 11 Performing Nonaccrual Loans 3,632 0 n/m 0 n/m 0 0 0 ------------------------ ------------ ------------------------------------ 12 Total Nonaccrual Loans 38,069 0 n/m 0 n/m 0 0 0 13 Accruing Loans 90+ Days Past Due 9,866 0 n/m 0 n/m 0 0 0 ------------------------ ------------ ------------------------------------ 14 Total Covered Nonperforming Loans (1) 47,935 0 n/m 0 n/m 0 0 0 15 Covered Repossessed Loan Collateral (1) 13,391 0 n/m n/m n/m 0 0 0 ------------------------ ------------ ------------------------------------ 16 Total Covered Nonperforming Assets (1) 61,326 0 n/m 0 n/m 0 0 0 ------------------------ ------------ ------------------------------------ 16 Total Nonperforming Assets $77,829 $6,602 n/m $14,286 n/m $13,382 $12,915 $5,762 ======================== ============ ==================================== 17 Non-Covered Classified Loans $41,453 $33,303 24.5% $34,028 21.8% $38,070 $33,546 $24,419 18 Covered Classified Loans (1) 169,778 0 n/m 0 n/m 0 0 0 ------------------------ ------------ ------------------------------------ 19 Total Classified Loans $216,232 $33,303 n/m $34,028 535.5% $38,070 $33,546 $24,419 ======================== ============ ==================================== 20 Total Non-Covered Loans Outstanding $2,356,237 $2,448,320 -3.8% $2,382,426 -1.1% $2,408,704 $2,431,011 $2,502,976 21 Total Covered Loans Outstanding (1) 1,089,071 0 n/m 0 n/m 0 0 0 ------------------------ ------------ ------------------------------------ 22 Total Loans Outstanding $3,445,308 $2,448,320 40.7% $2,382,426 44.6% $2,408,704 $2,431,011 $2,502,976 ======================== ============ ==================================== 23 Total Assets $5,428,865 $4,342,302 25.0% $4,032,934 34.6% $4,089,482 $4,188,868 $4,558,959 24 Non-Covered Loans: 25 Allowance for Loan Losses $43,803 $52,234 -16.1% $44,470 -1.5% $50,097 $50,964 $52,506 26 Allowance/Non-Covered Loans 1.86% 2.13% 1.87% 2.08% 2.10% 2.10% 27 Non-Covered Nonperforming Loans/Non-Covered Loans 0.50% 0.23% 0.45% 0.52% 0.49% 0.21% 28 Non-Covered Nonperforming Assets/Total Assets 0.30% 0.15% 0.35% 0.33% 0.31% 0.13% 29 Allowance/Non-Covered Nonperforming Loans 373% 925% 412% 399% 425% 1020% 30 Covered Loans (1): 31 Fair Value Discount on Covered Loans $149,290 n/a n/a n/a n/a n/a 32 Discount/Covered Loans, gross 12.06% n/a n/a n/a n/a n/a 33 Covered Nonperforming Assets/ Total Assets 1.13% n/a n/a n/a n/a n/a 34 Fair Value Discount on Repossessed Loan Collateral $11,178 n/a n/a n/a n/a n/a 35 Discount/Covered Repossessed Loan Collateral, gross 45.50% n/a n/a 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 12 WESTAMERICA BANCORPORATION Public Information April 17, 2009 FINANCIAL HIGHLIGHTS March 31, 2009 10.Capital.
(dollars in thousands, except per-share amounts) 3/31/09 / 3/31/08 / 3/31/09 3/31/08 3/31/08 12/31/08 12/31/08 09/30/08 06/30/08 12/31/07 ------------------------------------------------------------------------------------------------ 1 Shareholders' Equity $536,668 $399,109 34.5% $409,852 30.9% $399,128 $410,445 $394,603 2 Tier I Regulatory Capital 394,829 283,768 39.1% 288,859 36.7% 278,117 290,864 278,970 3 Total Regulatory Capital 442,186 321,819 37.4% 324,455 36.3% 314,023 327,631 318,089 4 Total Assets 5,428,865 4,342,302 25.0% 4,032,934 34.6% 4,089,482 4,188,868 4,558,959 5 Risk-Adjusted Assets 3,896,397 2,914,007 33.7% 2,758,866 41.2% 2,790,304 2,845,553 2,986,737 6 Shareholders' Equity / Total Assets 9.89% 9.19% 10.16% 9.76% 9.80% 8.66% 7 Shareholders' Equity / Total Loans 15.58% 16.30% 17.20% 16.57% 16.88% 15.77% 8 Tier I Capital /Total Assets 7.27% 6.53% 7.16% 6.80% 6.94% 6.12% 9 Tier I Capital / / Risk-Adjusted Assets 10.13% 9.74% 10.47% 9.97% 10.22% 9.33% 10 Total Capital / / Risk-Adjusted Assets 11.35% 11.04% 11.76% 11.25% 11.51% 10.64% 11 Tangible Common Equity Ratio 5.52% 6.18% 7.01% 6.62% 6.71% 5.76% 12 Common Shares Outstanding 28,874 28,772 0.4% 28,880 -0.0% 28,895 28,889 29,018 13 Book Value Per Common Share $15.73 $13.87 13.4% $14.19 10.8% $13.81 $14.21 $13.60 14 Market Value Per Common Share $45.56 $52.60 -13.4% $51.15 -10.9% $57.53 $52.59 $44.55
15 Share Repurchase Programs
(shares in thousands) Q1'09 / Q1'09 / 3/31'09YTD / Q1'09 Q1'08 Q1'08 Q4'08 Q4'08 3/31'09YTD 3/31'08YTD 3/31'08YTD ------------------------------------------------------------------------------------------------ 16 Total Shares Repurchased / Canceled 16 424 -96.2% 16 2.2% 16 424 -96.2% 17 Average Repurchase Price $41.58 $47.68 -12.8% $50.74 -18.0% $41.58 $47.68 -12.8% 18 Net Shares Repurchased 6 246 -97.5% 15 -59.4% 6 246 -97.5%
Page 13 WESTAMERICA BANCORPORATION Public Information April 17, 2009 FINANCIAL HIGHLIGHTS March 31, 2009 11.Period-End Balance Sheets.
(unaudited, dollars in thousands) 3/31/09 / 3/31/08 / 3/31/09 3/31/08 3/31/08 12/31/08 12/31/08 09/30/08 06/30/08 12/31/07 ------------------------------------------------------------------------------------------------ 1 Assets: 2 Cash and Money Market Assets $149,566 $139,957 6.9% $139,224 7.4% $142,678 $134,432 $210,097 3 Investment Securities Available For Sale 436,343 477,686 -8.7% 288,454 51.3% 304,871 391,028 532,821 4 Investment Securities Held to Maturity 918,745 1,016,613 -9.6% 949,325 -3.2% 962,621 978,298 1,045,288 5 Non-Covered Loans 2,356,237 2,448,320 -3.8% 2,382,426 -1.1% 2,408,704 2,431,011 2,502,976 6 Allowance For Loan Losses (43,803) (52,234) -16.1% (44,470) -1.5% (50,097) (50,964) (52,506) ------------------------ ------------ ------------------------------------ 7 Non-Covered Loans, net 2,312,434 2,396,086 -3.5% 2,337,956 -1.1% 2,358,607 2,380,047 2,450,470 8 Covered Loans, net (1) 1,089,071 0 n/m 0 n/m 0 0 0 ------------------------ ------------ ------------------------------------ 9 Total Loans 3,401,505 2,396,086 42.0% 2,337,956 45.5% 2,358,607 2,380,047 2,450,470 10 Other Real Estate Owned 4,756 954 n/m 3,505 35.7% 814 920 613 11 Covered Other Real Estate Owned, net (1) 13,391 0 n/m 0 n/m 0 0 0 12 Premises and Equipment 26,729 28,031 -4.6% 27,351 -2.3% 26,789 27,460 28,380 13 Identifiable Intangible Assets 41,630 17,571 136.9% 15,208 173.7% 15,996 16,784 18,429 14 Goodwill 121,699 121,719 -0.0% 121,699 0.0% 121,702 121,719 121,719 15 Interest Receivable and Other Assets 314,501 143,685 118.9% 150,212 109.4% 155,404 138,180 151,142 ------------------------ ------------ ------------------------------------ 16 Total Assets $5,428,865 $4,342,302 25.0% $4,032,934 34.6% $4,089,482 $4,188,868 $4,558,959 ======================== ============ ==================================== 17 Liabilities and Shareholders' Equity: 18 Deposits: 19 Noninterest Bearing $1,353,696 $1,202,165 12.6% $1,158,632 16.8% $1,173,852 $1,195,004 $1,245,500 20 Interest-Bearing Transaction 730,153 542,468 34.6% 525,153 39.0% 518,944 527,109 544,411 21 Savings 968,411 749,471 29.2% 745,496 29.9% 751,512 754,677 760,006 22 Time 1,204,021 700,534 71.9% 665,773 80.8% 685,480 686,702 714,873 ------------------------ ------------ ------------------------------------ 23 Total Deposits 4,256,281 3,194,638 33.2% 3,095,054 37.5% 3,129,788 3,163,492 3,264,790 ------------------------ ------------ ------------------------------------ 24 Short-Term Borrowed Funds 441,418 635,264 -30.5% 457,275 -3.5% 487,973 514,131 798,599 25 Federal Home Loan Bank Advances 86,772 0 n/m 0 n/m 0 0 0 25 Debt Financing and Notes Payable 26,598 36,736 -27.6% 26,631 -0.1% 26,665 36,699 36,773 26 Liability For Interest, Taxes and Other 81,128 76,555 6.0% 44,122 83.9% 45,928 64,101 64,194 ------------------------ ------------ ------------------------------------ 27 Total Liabilities 4,892,197 3,943,193 24.1% 3,623,082 35.0% 3,690,354 3,778,423 4,164,356 ------------------------ ------------ ------------------------------------ 28 Shareholders' Equity: 29 Preferred Stock 82,550 0 n/m 0 n/m 0 0 0 30 Paid-In Capital 356,326 339,468 5.0% 354,674 0.5% 354,537 351,157 337,201 31 Accumulated Other Comprehensive 32 Income (Loss) 2,274 (3,954) -157.5% 1,040 118.6% 551 1,074 (4,520) 33 Retained Earnings 95,518 63,595 50.2% 54,138 76.4% 44,040 58,214 61,922 ------------------------ ------------ ------------------------------------ 34 Total Common Equity 454,118 399,109 13.8% 409,852 10.8% 399,128 410,445 394,603 ------------------------ ------------ ------------------------------------ 35 Total Shareholders' Equity 536,668 399,109 34.5% 409,852 30.9% 399,128 410,445 394,603 ------------------------ ------------ ------------------------------------ 36 Total Liabilities and Shareholders' Equity $5,428,865 $4,342,302 25.0% $4,032,934 34.6% $4,089,482 $4,188,868 $4,558,959 ======================== ============ ==================================== (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 14 Public Information April 17, 2009 WESTAMERICA BANCORPORATION FINANCIAL HIGHLIGHTS March 31, 2009 12.Income Statements.
(unaudited, dollars in thousands, except per-share amounts) Q1'09 / Q1'09 / 3/31'09YTD / Q1'09 Q1'08 Q1'08 Q4'08 Q4'08 3/31'09YTD 3/31'08YTD 3/31'08YTD ------------------------------------------------------------------------------------------------ 1 Interest and Fee Income: 2 Loans $45,095 $38,732 16.4% $35,942 25.5% $45,095 $38,732 16.4% 3 Money Market Assets and Funds Sold 1 1 n/m 1 n/m 1 1 n/m 4 Investment Securities For Sale 3,739 5,802 -35.6% 3,426 9.1% 3,739 5,802 -35.6% 5 Investment Securities Held to Maturity 10,350 10,859 -4.7% 10,076 2.7% 10,350 10,859 -4.7% ------------------------ ------------ ------------------------ 6 Total Interest Income 59,185 55,394 6.8% 49,445 19.7% 59,185 55,394 6.8% ------------------------ ------------ ------------------------ 7 Interest Expense: 8 Transaction Deposits 205 452 -54.6% 252 -18.5% 205 452 -54.6% 9 Savings Deposits 900 1,330 -32.3% 763 18.0% 900 1,330 -32.3% 10 Time Deposits 2,678 5,546 -51.7% 2,556 4.8% 2,678 5,546 -51.7% 11 Short-Term Borrowed Funds 626 4,922 -87.3% 598 4.7% 626 4,922 -87.3% 12 Debt Financing and Notes Payable 423 578 -26.9% 423 -0.0% 423 578 -26.9% ------------------------ ------------ ------------------------ 13 Total Interest Expense 4,833 12,828 -62.3% 4,592 5.3% 4,833 12,828 -62.3% ------------------------ ------------ ------------------------ 14 Net Interest Income 54,352 42,566 27.7% 44,853 21.2% 54,352 42,566 27.7% ------------------------ ------------ ------------------------ 15 Provision for Loan Losses 1,800 600 n/m 900 100.0% 1,800 600 n/m ------------------------ ------------ ------------------------ 16 Noninterest Income: 17 Service Charges on Deposit Accounts 8,422 7,296 15.4% 7,383 14.1% 8,422 7,296 15.4% 18 Merchant Credit Card 2,432 2,580 -5.7% 2,623 -7.3% 2,432 2,580 -5.7% 19 ATM Fees & Interchange 813 718 13.1% 685 18.7% 813 718 13.1% 20 Debit Card Fees 856 904 -5.3% 917 -6.7% 856 904 -5.3% 21 Financial Services Commissions 154 230 -33.3% 141 8.9% 154 230 -33.3% 22 Mortgage Banking 17 40 -57.2% 19 -7.6% 17 40 -57.2% 23 Trust Fees 364 303 20.3% 255 42.9% 364 303 20.3% 24 Net Gain (Loss) From Equity Securities 0 5,698 n/m (3,269) n/m 0 5,698 n/m 25 FAS 141R Gain 48,844 0 n/m 0 n/m 48,844 0 n/m 26 Other 2,066 1,609 28.4% 1,154 79.0% 2,066 1,609 28.4% ------------------------ ------------ ------------------------ 27 Total Noninterest Income 63,968 19,378 n/m 9,908 n/m 63,968 19,378 n/m ------------------------ ------------ ------------------------ 28 Noninterest Expense: 29 Salaries and Related Benefits 16,371 12,984 26.1% 12,823 27.7% 16,371 12,984 26.1% 30 Occupancy 5,410 3,390 59.6% 3,405 58.9% 5,410 3,390 59.6% 31 Equipment 1,222 921 32.7% 976 25.2% 1,222 921 32.7% 32 Data Processing 2,104 2,120 -0.7% 2,117 -0.6% 2,104 2,120 -0.7% 33 Professional Fees 888 536 65.8% 920 -3.5% 888 536 65.8% 34 VISA Litigation 0 (2,338) n/m 0 n/m 0 (2,338) n/m 35 Other 8,128 5,443 49.3% 5,925 37.2% 8,128 5,443 49.3% ------------------------ ------------ ------------------------ 36 Total Noninterest Expense 34,123 23,056 48.0% 26,166 30.4% 34,123 23,056 48.0% ------------------------ ------------ ------------------------ 37 Income Before Income Taxes 82,397 38,288 115.2% 27,695 197.5% 82,397 38,288 115.2% 38 Income Tax Provision 29,572 11,510 156.9% 6,885 n/m 29,572 11,510 156.9% ------------------------ ------------ ------------------------ 39 Net Income 52,825 26,778 97.3% 20,810 153.8% 52,825 26,778 97.3% 40 Preferred Stock Dividends and Discount Accretion 578 0 n/m 0 n/m 578 0 n/m ------------------------ ------------ ------------------------ 41 Net Income Applicable to Common Equity $52,247 $26,778 95.1% $20,810 151.1% $52,247 $26,778 95.1% ======================== ============ ======================== 42 Average Common Shares Outstanding 28,876 28,861 0.1% 28,884 -0.0% 28,876 28,861 0.1% 43 Diluted Average Common Shares Outstanding 29,105 29,210 -0.4% 29,218 -0.4% 29,105 29,210 -0.4% 44 Per Common Share Data: 45 Basic Earnings $1.81 $0.93 94.6% $0.72 n/m $1.81 $0.93 94.6% 46 Diluted Earnings 1.80 0.92 95.7% 0.71 n/m 1.80 0.92 95.7% 47 Dividends Paid 0.36 0.34 5.9% 0.35 2.9% 0.36 0.34 5.9%
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