-----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, VSAYwaP3q3TVSiDIkzhhIiYAo1+y8YGCVz4MJy2FBOx5pS685q3cRrrGzH+c5O2E 5SSWv1Y0z3Ph6CIPlvl56A== 0000311094-09-000011.txt : 20091019 0000311094-09-000011.hdr.sgml : 20091019 20091019153936 ACCESSION NUMBER: 0000311094-09-000011 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20090930 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20091019 DATE AS OF CHANGE: 20091019 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: 091125905 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 oct8k09a.txt WABC FORM 8-K FOR 10-19-2009 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): 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%
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