8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 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 19, 2010

WESTAMERICA BANCORPORATION

(Exact name of registrant as specified in its charter)

CALIFORNIA	001-9383	94-2156203
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

1108 Fifth Avenue San Rafael, California	94901
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (707) 863-6000

(Former name or former address, if changed since last report.)

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:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02: Results of Operations and Financial Condition

On October 19, 2010 Westamerica Bancorporation announced earnings for the third quarter of 2010. A copy of the press release is attached as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference.

Item 9.01: Financial Statements and Exhibits

(d) Exhibits

99.1 Press release dated October 19, 2010

Signature

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, 2010

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE
October 19, 2010

WESTAMERICA BANCORPORATION REPORTS
THIRD QUARTER 2010 RESULTS

San Rafael, CA: Westamerica Bancorporation (NASDAQ: WABC), parent company of Westamerica Bank, today reported third quarter 2010 net income applicable to common equity of $23.7 million, or $0.81 diluted earnings per share (“EPS”), compared to $23.6 million, or $0.80 EPS in the prior quarter and $23.8 million, or $0.81 EPS in the third quarter 2009. Third quarter 2010 net income applicable to common equity represents an 18 percent annualized return on average common equity.

“Westamerica’s net interest margin was 5.54 percent in the third quarter 2010, supported by a very low 0.30 percent cost of funding. Our focus on growing checking and savings deposits helps maintain a lower funding cost relative to our peers. We also focus on delivering more of our revenue to the bottom line by operating in the most efficient manner possible. Our operating expenses declined $600 thousand from the prior quarter,” said Chairman, President and CEO David Payne. “The credit quality of legacy Westamerica loans remained stable during the quarter, while FDIC-indemnified nonperforming loans declined $4 million to $56 million at September 30, 2010. Common shareholders’ equity grew to $541 million at September 30, 2010 resulting in a total regulatory capital ratio of 14.9 percent. We were pleased to have deployed some of our excess capital during the quarter acquiring assets and assuming liabilities of the former Sonoma Valley Bank,” Payne added.

Third quarter 2010 operating results include net interest and fee income from acquired assets and assumed liabilities of the former Sonoma Valley Bank, which Westamerica purchased and assumed from the Federal Deposit Insurance Corporation (FDIC) on August 20, 2010. During the third quarter 2010, Westamerica incurred noninterest expenses of approximately $325 thousand due to duplicative operations and recorded a $178 thousand acquisition gain. Management anticipates integration activities will be completed in the first quarter 2011.

Net interest income on a fully taxable equivalent basis (FTE) was $56.7 million for the third quarter 2010, compared to $56.6 million (FTE) for the prior quarter and $61.6 million (FTE) for the third quarter 2009. The third quarter 2010 annualized net interest margin was 5.54 percent (FTE), compared to 5.62 percent (FTE) for the prior quarter and 5.48 percent (FTE) for the third quarter 2009. The decline in the net interest margin from the prior quarter is due to a decline in investment securities yields; yields on recently purchased investment securities are lower than yields on maturing securities and principal paydowns. The decline in net interest income from the third quarter 2009 is attributable to lower levels of interest-earning assets. Weak economic conditions and deleveraging by businesses and individuals have impacted loan volumes.

The provision for loan losses was $2.8 million for the third quarter 2010, unchanged from the prior quarter and from the third quarter 2009.

Noninterest income for the third quarter 2010 was $15.1 million, compared to $15.8 million in the prior quarter. Service charges on deposit accounts declined $467 thousand during the third quarter 2010 when compared to the prior quarter; new overdraft regulations caused a reduction in overdraft fees, which was offset in part by the introduction of new service fees.

Noninterest expense for the third quarter of 2010 totaled $31.5 million, reduced from $32.1 million in the prior quarter, due to lower postage, loan administration and other operating expenses. Noninterest expense for the third quarter 2010 was $3.6 million lower than noninterest expense in the third quarter 2009 due to declines in personnel cost, occupancy and equipment, telephone, postage and other operating expenses. Westamerica completed its integration of acquired assets and assumed liabilities of the former County Bank in August 2009, which were purchased and assumed from the FDIC in February 2009.

Non-performing originated loans totaled $20 million at September 30, 2010 essentially unchanged from June 30, 2010. The allowance for loan losses totaled $38 million at September 30, 2010. Non-performing purchased loans indemnified by the FDIC totaled $56 million at September 30, 2010 reduced from $61 million at June 30, 2010; such loans were measured at estimated fair value on the February 6, 2009 acquisition date. Nonperforming purchased loans totaled $38 million at September 30, 2010; such loans were measured at estimated fair value on the August 20, 2010 acquisition date.

Shareholders’ equity at September 30, 2010 was $541 million, increased from $528 million at June 30, 2010. Westamerica paid a regular quarterly dividend of $0.36 per common share in August 2010, totaling $10.5 million. At September 30, 2010, Westamerica Bancorporation’s total regulatory capital ratio was 14.88 percent and Westamerica Bank’s total regulatory capital ratio was 14.95 percent; both measurements exceed the “well-capitalized” level of ten percent under regulatory requirements.

Westamerica operates commercial banking offices throughout Northern and Central California. At September 30, 2010, Westamerica’s total assets and total loans outstanding were $5.0 billion and $3.0 billion, respectively.

Westamerica Bancorporation Web Address: www.westamerica.com

For additional information contact:

Westamerica Bancorporation

Robert A. Thorson — SVP & Chief Financial Officer

707-863-6840

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 reports filed with the Securities and Exchange Commission, including the annual report for the year ended December 31, 2009 filed on Form 10-K and quarterly report for the quarter ended June 30, 2010 filed on Form 10-Q, 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 Dodd Frank Wall Street Reform and Consumer Protection Act of 2010 and the Sarbanes-Oxley Act of 2002, 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.

#######

Public Information October 19, 2010

WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
September 30, 2010

1. Net Income Summary.

	(dollars in thousands except per-share amounts)
							Q3’10 /						Q3’10 /									9/30’10YTD /
	Q3’10			Q3’09			Q3’09			Q2’10			Q2’10			9/30’10YTD			9/30’09YTD			9/30’09YTD
1 Net Interest Income (Fully Taxable Equivalent)	$	56,669		$	61,593			-8.0	%	$	56,573			0.2	%	$	170,271		$	183,270			-7.1	%
2 Provision for Loan Losses		2,800			2,800			0.0	%		2,800			0.0	%		8,400			7,200			16.7	%
3 Noninterest Income:
4 Gain on Acquisition		178			0			n/m			0			n/m			178			48,844			n/m
5 Other		14,893			15,961			-6.7	%		15,770			-5.6	%		46,133			47,471			-2.8	%
6 Total Noninterest Income		15,071			15,961			-5.6	%		15,770			-4.4	%		46,311			96,315			n/m
7 Noninterest Expense		31,508			35,151			-10.4	%		32,095			-1.8	%		95,635			107,940			-11.4	%
8 Income Before Taxes (FTE)		37,432			39,603			-5.5	%		37,448			0.0	%		112,547			164,445			n/m
9 Income Tax Provision (FTE)		13,723			14,346			-4.3	%		13,887			-1.2	%		41,701			63,180			n/m
10 Net Income		23,709			25,257			-6.1	%		23,561			0.6	%		70,846			101,265			n/m
11 Preferred Stock Dividends and Discount Accretion		0			1,466			n/m			0			n/m			0			3,151			n/m
12 Net Income Applicable to Common Equity	$	23,709		$	23,791			-0.3	%	$	23,561			0.6	%	$	70,846		$	98,114			n/m
13 Average Common Shares Outstanding		29,127			29,210			-0.3	%		29,207			-0.3	%		29,187			29,072			0.4	%
14 Diluted Average Common Shares Outstanding		29,385			29,429			-0.2	%		29,568			-0.6	%		29,515			29,313			0.7	%
15 Operating Ratios:
16 Basic Earnings Per Common Share	$	0.81		$	0.81			0.0	%	$	0.81			0.0	%	$	2.43		$	3.37			n/m
17 Diluted Earnings Per Common Share		0.81			0.81			0.0	%		0.80			1.2	%		2.40			3.35			n/m
18 Return On Assets (annualized)		1.95	%		1.86	%					2.00	%					1.98	%		2.57	%
19 Return On Common Equity (annualized)		17.9	%		19.7	%					18.2	%					18.3	%		28.4	%
20 Net Interest Margin (FTE) (annualized)		5.54	%		5.48	%					5.62	%					5.59	%		5.39	%
21 Efficiency Ratio (FTE)		43.9	%		45.3	%					44.4	%					44.2	%		38.6	%
22 Dividends Paid Per Common Share	$	0.36		$	0.35			2.9	%	$	0.36			0.0	%	$	1.08		$	1.06			1.9	%
23 Common Dividend Payout Ratio		44	%		43	%					45	%					45	%		32	%

2. Net Interest Income.

	(dollars in thousands)
							Q3’10 /						Q3’10 /									9/30’10YTD /
	Q3’10			Q3’09			Q3’09			Q2’10			Q2’10			9/30’10YTD			9/30’09YTD			9/30’09YTD
1 Interest and Fee Income (FTE)	$	59,765		$	66,093			-9.6	%	$	59,718			0.1	%	$	180,046		$	198,348			-9.2	%
2 Interest Expense		3,096			4,500			-31.2	%		3,145			-1.6	%		9,775			15,078			-35.2	%
3 Net Interest Income (FTE)	$	56,669		$	61,593			-8.0	%	$	56,573			0.2	%	$	170,271		$	183,270			-7.1	%
4 Average Earning Assets	$	4,068,561		$	4,470,851			-9.0	%	$	4,033,831			0.9	%	$	4,071,089		$	4,541,596			-10.4	%
5 Average Interest-Bearing Liabilities		2,830,355			3,094,081			-8.5	%		2,754,458			2.8	%		2,810,261			3,186,918			-11.8	%
6 Yield on Earning Assets (FTE) (annualized)		5.84	%		5.88	%					5.93	%					5.91	%		5.83	%
7 Cost of Funds (annualized)		0.30	%		0.40	%					0.31	%					0.32	%		0.44	%
8 Net Interest Margin (FTE) (annualized)		5.54	%		5.48	%					5.62	%					5.59	%		5.39	%
9 Interest Expense/Interest-Bearing Liabilities (annualized)		0.43	%		0.58	%					0.46	%					0.46	%		0.63	%
10 Net Interest Spread (FTE) (annualized)		5.41	%		5.30	%					5.47	%					5.45	%		5.20	%

3. Loans & Other Earning Assets.

	(average volume, dollars in thousands)
							Q3’10 /						Q3’10 /									9/30’10YTD /
	Q3’10			Q3’09			Q3’09			Q2’10			Q2’10			9/30’10YTD			9/30’09YTD			9/30’09YTD
1 Total Assets	$	4,835,357		$	5,072,866			-4.7	%	$	4,731,270			2.2	%	$	4,793,266		$	5,113,359			-6.3	%
2 Total Earning Assets		4,068,561			4,470,851			-9.0	%		4,033,831			0.9	%		4,071,089			4,541,596			-10.4	%
3 Total Loans		2,937,501			3,263,388			-10.0	%		2,924,515			0.4	%		2,952,665			3,261,462			-9.5	%
4 Commercial Loans		772,997			901,127			-14.2	%		773,814			-0.1	%		780,935			910,263			-14.2	%
5 Commercial Real Estate Loans		1,234,475			1,313,545			-6.0	%		1,224,442			0.8	%		1,232,406			1,289,190			-4.4	%
6 Consumer Loans		930,029			1,048,716			-11.3	%		926,259			0.4	%		939,324			1,062,009			-11.6	%
7 Total Investment Securities		1,131,060			1,207,463			-6.3	%		1,109,316			2.0	%		1,118,424			1,280,134			-12.6	%
8 Available For Sale (Market Value)		489,581			405,304			20.8	%		435,317			12.5	%		443,263			412,644			7.4	%
9 Held To Maturity		641,479			802,159			-20.0	%		673,999			-4.8	%		675,161			867,490			-22.2	%
10 HTM Unrealized Gain at Period-End		24,044			20,047			n/m			16,361			n/m			24,044			20,047			n/m
11 Loans / Deposits		73.8	%		79.0	%					75.1	%					74.9	%		80.2	%

Public Information October 19, 2010

WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
September 30, 2010

4. Deposits & Other Interest-Bearing Liabilities.

	(average volume, dollars in thousands)
							Q3’10 /						Q3’10 /									9/30’10YTD /
	Q3’10			Q3’09			Q3’09			Q2’10			Q2’10			9/30’10YTD			9/30’09YTD			9/30’09YTD
1   Total Deposits	$	3,981,437		$	4,131,388			-3.6	%	$	3,895,671			2.2	%	$	3,944,231		$	4,066,462			-3.0	%
2   Noninterest Demand		1,417,638			1,371,124			3.4	%		1,384,249			2.4	%		1,394,033			1,330,495			4.8	%
3   Interest-Bearing Transaction		678,524			708,372			-4.2	%		664,952			2.0	%		669,053			705,777			-5.2	%
4   Savings		993,934			978,656			1.6	%		954,367			4.1	%		971,368			941,847			3.1	%
5   Time greater than $100K		549,459			581,681			-5.5	%		541,213			1.5	%		548,848			622,168			-11.8	%
6   Time less than $100K		341,882			491,555			-30.4	%		350,890			-2.6	%		360,929			466,175			-22.6	%
7   Total Short-Term Borrowings		203,841			221,100			-7.8	%		206,313			-1.2	%		209,846			347,072			-39.5	%
8   Fed Funds Purchased		0			870			n/m			0			n/m			0			144,037			n/m
9   Other Short-Term Funds		203,841			220,230			-7.4	%		206,313			-1.2	%		209,846			203,034			3.4	%
10 Federal Home Loan Bank Advances		36,298			86,166			n/m			10,273			n/m			23,767			77,296			n/m
11 Long-Term Debt		26,417			26,551			-0.5	%		26,450			-0.1	%		26,450			26,584			-0.5	%
12 Shareholders’ Equity		525,630			549,331			-4.3	%		518,128			1.4	%		517,121			527,635			-2.0	%
13 Demand Deposits / Total Deposits		35.6	%		33.2	%					35.5	%					35.3	%		32.7	%
14 Transaction & Savings Deposits / Total Deposits		77.6	%		74.0	%					77.1	%					76.9	%		73.2	%

5. Interest Yields Earned & Rates Paid.

	(dollars in thousands)
	Q3’10							Q2’10			Q3’09
	Average		Income/		Yield */			Yield*/			Average		Income/		Yield*/
	Volume		Expense		Rate			Rate			Volume		Expense		Rate
1   Interest & Fees Income Earned
2   Total Earning Assets (FTE)	$	4,068,561	$	59,765		5.84	%		5.93	%	$	4,470,851	$	66,093		5.88	%
3   Total Loans (FTE)		2,937,501		45,382		6.13	%		6.18	%		3,263,388		49,579		6.03	%
4   Commercial Loans (FTE)		772,997		12,265		6.29	%		6.38	%		901,127		13,090		5.76	%
5   Commercial Real Estate Loans		1,234,475		20,696		6.65	%		6.63	%		1,313,545		21,967		6.63	%
6   Consumer Loans		930,029		12,421		5.30	%		5.43	%		1,048,716		14,522		5.49	%
7   Total Investment Securities (FTE)		1,131,060		14,383		5.09	%		5.28	%		1,207,463		16,514		5.47	%
8   Interest Expense Paid
9   Total Earning Assets		4,068,561		3,096		0.30	%		0.31	%		4,470,851		4,500		0.40	%
10 Total Interest-Bearing Liabilities		2,830,355		3,096		0.43	%		0.46	%		3,094,081		4,500		0.58	%
11 Total Interest-Bearing Deposits		2,563,799		2,047		0.32	%		0.35	%		2,760,264		3,273		0.47	%
12 Interest-Bearing Transaction		678,524		226		0.13	%		0.13	%		708,372		263		0.15	%
13 Savings		993,934		666		0.27	%		0.28	%		978,656		915		0.37	%
14 Time less than $100K		341,882		357		0.41	%		0.51	%		491,555		829		0.67	%
15 Time greater than $100K		549,459		798		0.58	%		0.63	%		581,681		1,266		0.86	%
16 Total Short-Term Borrowings		203,841		511		0.98	%		0.94	%		221,100		509		0.90	%
17 Fed Funds Purchased		0		0		0.00	%		0.00	%		870		0		0.15	%
18 Other Short-Term Funds		203,841		511		0.98	%		0.94	%		220,230		509		0.92	%
19 Federal Home Loan Bank Advances		36,298		113		1.22	%		2.00	%		86,166		295		1.34	%
20 Long-Term Debt		26,417		425		6.43	%		6.38	%		26,551		423		6.36	%
21 Net Interest Income and Margin (FTE)			$	56,669		5.54	%		5.62	%			$	61,593		5.48	%

* Annualized

6. Noninterest Income.

	(dollars in thousands except per share amounts)
							Q3’10 /						Q3’10 /									9/30’10YTD /
	Q3’10			Q3’09			Q3’09			Q2’10			Q2’10			9/30’10YTD			9/30’09YTD			9/30’09YTD
1 Service Charges on Deposit Accounts	$	8,162		$	9,479			-13.9	%	$	8,629			-5.4	%	$	25,533		$	27,017			-5.5	%
2 Merchant Credit Card Income		2,234			2,163			3.3	%		2,176			2.7	%		6,631			6,818			-2.7	%
3 ATM Fees & Interchange		1,004			965			4.0	%		1,021			-1.7	%		2,917			2,792			4.5	%
4 Debit Card Fees		1,259			1,267			-0.6	%		1,245			1.1	%		3,678			3,656			0.6	%
5 Financial Services Commissions		211			129			64.2	%		223			-5.1	%		583			420			38.9	%
6 Mortgage Banking Income		23			26			-13.9	%		40			-43.0	%		82			68			20.3	%
7 Trust Fees		429			319			34.2	%		448			-4.4	%		1,257			1,056			19.1	%
8 Other Income		1,571			1,613			-2.5	%		1,988			-20.9	%		5,452			5,644			-3.4	%
9 Sub-total		14,893			15,961			-6.7	%		15,770			-5.6	%		46,133			47,471			-2.8	%
10 Gain on Acquisition		178			0			n/m			0			n/m			178			48,844			n/m
11 Total Noninterest Income	$	15,071		$	15,961			-5.6	%	$	15,770			-4.4	%	$	46,311		$	96,315			n/m
12 Operating Ratios:
13 Total Revenue (FTE)	$	71,740		$	77,554			-7.5	%	$	72,343			-0.8	%	$	216,582		$	279,585			n/m
14 Noninterest Income / Revenue (FTE)		21.0	%		20.6	%					21.8	%					21.4	%		34.4	%
15 Service Charges / Avg. Deposits (annualized)		0.81	%		0.91	%					0.89	%					0.87	%		0.89	%
16 Total Revenue Per Avg. Common Share (annualized)	$	9.77		$	10.53			-7.2	%	$	9.93			-1.6	%	$	9.92		$	12.86			n/m

2

Public Information October 19, 2010

WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
September 30, 2010

7. Noninterest Expense.

		(dollars in thousands)
								Q3’10 /						Q3’10 /									9/30’10YTD /
		Q3’10			Q3’09			Q3’09			Q2’10			Q2’10			9/30’10YTD			9/30’09YTD			9/30’09YTD
1	Salaries & Benefits	$	15,481		$	16,402			-5.6	%	$	15,476			0.0	%	$	46,849		$	50,221			-6.7	%
2	Occupancy		3,962			4,008			-1.2	%		3,822			3.7	%		11,561			14,831			-22.1	%
3	Equipment		1,067			1,789			-40.4	%		1,116			-4.3	%		3,234			4,618			-30.0	%
4	Outsourced Data Processing		2,187			2,258			-3.1	%		2,202			-0.7	%		6,629			6,740			-1.6	%
5	Courier		826			989			-16.4	%		903			-8.5	%		2,636			2,881			-8.5	%
6	Postage		322			576			-44.1	%		454			-29.0	%		1,251			1,570			-20.3	%
7	Telephone		346			622			-44.4	%		406			-14.8	%		1,141			1,487			-23.2	%
8	Professional Fees		950			913			4.1	%		867			9.7	%		2,480			2,580			-3.9	%
9	Stationery & Supplies		276			450			-38.7	%		330			-16.4	%		956			1,191			-19.8	%
10	Loan Expense		354			491			-27.8	%		475			-25.4	%		1,248			1,689			-26.1	%
11	Operational Losses		237			242			-2.0	%		158			50.6	%		615			658			-6.5	%
12	Amortization of Identifiable Intangibles		1,573			1,671			-5.8	%		1,540			2.1	%		4,711			5,051			-6.7	%
13	FDIC Insurance Assessment		1,268			1,442			-12.1	%		1,260			0.6	%		3,848			4,820			-20.2	%
14	Other Operating		2,659			3,298			-19.4	%		3,086			-13.8	%		8,476			9,603			-11.7	%
15	Total Noninterest Expense	$	31,508		$	35,151			-10.4	%	$	32,095			-1.8	%	$	95,635		$	107,940			-11.4	%
16	Average (Avg.) Full Time Equivalent Staff		1,004			1,086			-7.6	%		1,018			-1.4	%		1,018			1,135			-10.3	%
17	Avg. Assets / Avg. Full Time Equivalent Staff	$	4,816		$	4,671			3.1	%	$	4,648			3.6	%	$	4,709		$	4,505			4.5	%
18	Operating Ratios:
19	FTE Revenue / Avg. Full Time Equiv. Staff (annualized)	$	283		$	283			0.0	%	$	285			-0.7	%	$	284		$	329			-13.7	%
20	Noninterest Expense / Avg. Earning Assets (annualized)		3.07	%		3.12	%					3.19	%					3.14	%		3.18	%
21	Noninterest Expense / FTE Revenues		43.9	%		45.3	%					44.4	%					44.2	%		38.6	%

8. Provision for Loan Losses.

		(dollars in thousands)
								Q3’10 /						Q3’10 /									9/30’10YTD /
		Q3’10			Q3’09			Q3’09			Q2’10			Q2’10			9/30’10YTD			9/30’09YTD			9/30’09YTD
1	Average Total Loans	$	2,937,501		$	3,263,388			-10.0	%	$	2,924,515			0.4	%	$	2,952,665		$	3,261,462			-9.5	%
2	Avg. Total Purchased Covered Loans (1)		743,126			974,057			-23.7	%		788,108			-5.7	%		787,142			900,922			-12.6	%
3	Avg. Total Purchased Non-Covered Loans (2)		97,438			0			n/m			0			n/m			32,836			0			n/m
4	Avg. Total Originated Loans		2,096,937			2,289,331			-8.4	%		2,136,407			-1.8	%		2,132,687			2,360,540			-9.7	%
5	Provision for Loan Losses	$	2,800		$	2,800			0.0	%	$	2,800			0.0	%	$	8,400		$	7,200			16.7	%
6	Gross Loan Losses		5,216			3,870			34.8	%		4,255			22.6	%		13,926			10,735			29.7	%
7	Net Loan Losses		4,387			3,239			35.4	%		3,400			29.0	%		11,314			8,987			25.9	%
8	Recoveries / Gross Loan Losses		16	%		16	%					20	%					19	%		16	%
9	Net Loan Losses / Avg. Originated Loans (a)		0.83	%		0.56	%					0.64	%					0.71	%		0.51	%
10	Provision for Loan Losses / Avg. Originated Loans (a)		0.53	%		0.49	%					0.53	%					0.53	%		0.41	%
11	Provision for Loan Losses / Net Loan Losses		63.8	%		86.4	%					82.3	%					74.2	%		80.1	%

(1)	Purchased covered loans represent purchased loans on which losses are shared with the FDIC per a Loss-Sharing Agreement. Purchased covered loans were recorded at estimated fair value at February 6, 2009, the date of purchase.
(2)	Purchased non-covered loans represent purchased loans recorded at estimated fair value at August 20, 2010, the date of purchase.
(a)	annualized

Public Information October 19, 2010

WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
September 30, 2010

9. Credit Quality.

		(dollars in thousands)
								9/30/10 /						9/30/10 /
		9/30/10			9/30/09			9/30/09			6/30/10			6/30/10			3/31/10			12/31/09			6/30/09
1	Nonperforming Originated Loans:
2	Nonperforming Nonaccrual Loans	$	19,194		$	31,352			-38.8	%	$	19,941			-3.7	%	$	20,230		$	19,837		$	29,603
3	Performing Nonaccrual Loans		233			61			n/m			24			n/m			57			25			26
4	Total Nonaccrual Loans		19,427			31,413			-38.2	%		19,965			-2.7	%		20,287			19,862			29,629
5	Accruing Loans 90+ Days Past Due		686			1,212			-43.4	%		712			-3.7	%		746			800			614
6	Total		20,113			32,625			-38.4	%		20,677			-2.7	%		21,033			20,662			30,243
7	Repossessed Originated Loan Collateral		19,285			4,319			346.6	%		18,028			7.0	%		14,266			12,642			4,715
8	Total Originated Nonperforming Assets		39,398			36,944			6.6	%		38,705			1.8	%		35,299			33,304			34,958
9	Nonperforming Purchased Covered Loans (1):
10	Nonperforming Nonaccrual Loans		39,783			53,255			-25.3	%		37,438			6.3	%		52,431			66,965			65,910
11	Performing Nonaccrual Loans		12,388			26,277			-52.9	%		22,908			-45.9	%		25,731			18,183			16,901
12	Total Nonaccrual Loans		52,171			79,532			-34.4	%		60,346			-13.5	%		78,162			85,148			82,811
13	Accruing Loans 90+ Days Past Due		4,078			935			n/m			249			n/m			317			210			8,622
14	Total		56,249			80,467			-30.1	%		60,595			-7.2	%		78,479			85,358			91,433
15	Repossessed Purchased Covered Loan Collateral (1)		25,251			18,740			34.7	%		23,670			6.7	%		22,305			23,297			13,691
16	Total Nonperforming Purchased Covered Assets (1)		81,500			99,207			-17.8	%		84,265			-3.3	%		100,784			108,655			105,124
17	Nonperforming Purchased Non-Covered Loans (2):
18	Nonperforming Nonaccrual Loans		18,304			0			n/m			0			n/m			0			0			0
19	Performing Nonaccrual Loans		19,554			0			n/m			0			n/m			0			0			0
20	Total Nonaccrual Loans		37,858			0			n/m			0			n/m			0			0			0
21	Accruing Loans 90+ Days Past Due		0			0			n/m			0			n/m			0			0			0
22	Total		37,858			0			n/m			0			n/m			0			0			0
23	Repossessed Purchased Non-Covered Loan Collateral (2)		2,916			0			n/m			0			n/m			0			0			0
24	Total Nonperforming Purchased Non-Covered Assets (2)		40,774			0			n/m			0			n/m			0			0			0
25	Total Nonperforming Assets	$	161,672		$	136,151			n/m		$	122,970			n/m		$	136,083		$	141,959		$	140,082
26	Total Originated Loans Outstanding	$	2,077,915		$	2,267,130			-8.3	%	$	2,124,570			-2.2	%	$	2,146,580		$	2,201,088		$	2,322,005
27	Total Purchased Covered Loans Outstanding (1)		718,618			932,656			-22.9	%		763,619			-5.9	%		809,503			855,301			1,031,643
28	Total Purchased Non-Covered Loans Outstanding (2)		212,318			0			n/m			0			n/m			0			0			0
29	Total Loans Outstanding	$	3,008,851		$	3,199,786			-6.0	%	$	2,888,189			4.2	%	$	2,956,083		$	3,056,389		$	3,353,648
30	Total Assets	$	4,977,871		$	4,971,159			0.1	%	$	4,727,086			5.3	%	$	4,745,495		$	4,975,501		$	5,193,595
31	Originated Loans:
32	Allowance for Loan Losses	$	38,129		$	42,683			-10.7	%	$	39,716			-4.0	%	$	40,316		$	41,043		$	43,122
33	Allowance/Originated Loans		1.83	%		1.88	%					1.87	%					1.88	%		1.86	%		1.86	%
34	Nonperforming Originated Loans/Originated Loans		0.97	%		1.44	%					0.97	%					0.98	%		0.94	%		1.30	%
35	Allowance/Originated Nonperforming Loans		190	%		131	%					192	%					192	%		199	%		143	%
36	Purchased Covered Loans (1):
37	Fair Value Discount on Purchased Covered Loans	$	66,459		$	98,738					$	75,522					$	83,325		$	93,251		$	114,276
38	Discount/Purchased Covered Loans, gross		8.47	%		9.57	%					9.00	%					9.33	%		9.83	%		9.97	%
39	Nonperforming Purchased Covered Loans/Total Cvd Loans		7.83	%		8.63	%					7.94	%					9.69	%		9.98	%		8.86	%
40	Purchased Non-Covered Loans (2):
41	Fair Value Discount on Purchased Non-Covered Loans	$	36,935			n/m						n/m						n/m			n/m			n/m
42	Discount/Purchased Non-Covered Loans, gross		14.82	%		n/m						n/m						n/m			n/m			n/m
43	Nonperforming Purchased NC Loans/Total NC Loans		17.83	%		n/m						n/m						n/m			n/m			n/m

(1)	Purchased covered loans and repossessed loan collateral represent purchased assets on which losses are shared with the FDIC per a Loss-Sharing Agreement. Purchased covered assets were recorded at estimated fair value at February 6, 2009, the date of purchase.
(2)	Purchased non-covered loans and other real estate owned represent purchased assets recorded at estimated fair value at August 20, 2010, the date of purchase.

Public Information October 19, 2010

WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
September 30, 2010

10. Capital.

		(dollars in thousands, except per-share amounts)
								9/30/10 /						9/30/10 /
		9/30/10			9/30/09			9/30/09			6/30/10			6/30/10			3/31/10			12/31/09			6/30/09
1	Common Shareholders’ Equity	$	541,173		$	494,383			9.5	%	$	527,681			2.6	%	$	519,131		$	505,448		$	476,620
2	Preferred Shareholder’s Equity		0			41,335			n/m			0			n/m			0			0			82,611
3	Total Shareholders’ Equity		541,173			535,718			1.0	%		527,681			2.6	%		519,131			505,448			559,231
4	Tier I Regulatory Capital		399,781			394,283			1.4	%		391,538			2.1	%		383,568			370,011			421,048
5	Total Regulatory Capital		437,615			431,913			1.3	%		426,674			2.6	%		419,541			406,339			458,182
6	Total Assets		4,977,871			4,971,159			0.1	%		4,727,086			5.3	%		4,745,495			4,975,501			5,193,595
7	Risk-Adjusted Assets		2,941,691			2,866,814			2.6	%		2,714,429			8.4	%		2,758,122			2,803,007			2,890,291
8	Total Shareholders’ Equity / Total Assets		10.87	%		10.78	%					11.16	%					10.94	%		10.16	%		10.77	%
9	Total Shareholders’ Equity / Total Loans		17.99	%		16.74	%					18.27	%					17.56	%		16.54	%		16.68	%
10	Tier I Capital /Total Assets		8.03	%		7.93	%					8.28	%					8.08	%		7.44	%		8.11	%
11	Tier I Capital / Risk-Adjusted Assets		13.59	%		13.75	%					14.42	%					13.91	%		13.20	%		14.57	%
12	Total Capital / Risk-Adjusted Assets		14.88	%		15.07	%					15.72	%					15.21	%		14.50	%		15.85	%
13	Tangible Common Equity Ratio		7.95	%		6.95	%					8.17	%					7.92	%		7.22	%		6.26	%
14	Common Shares Outstanding		29,118			29,207			-0.3	%		29,118			0.0	%		29,206			29,208			29,214
15	Common Equity Per Share	$	18.59		$	16.93			9.8	%	$	18.12			2.6	%	$	17.77		$	17.31		$	16.31
16	Market Value Per Common Share	$	54.49		$	52.00			4.8	%	$	52.52			3.8	%	$	57.65		$	55.37		$	49.61
17	Share Repurchase Programs
		(shares in thousands)
								Q3’10 /						Q3’10 /									9/30’10YTD /
		Q3’10			Q3’09			Q3’09			Q2’10			Q2’10			9/30’10YTD			9/30’09YTD			9/30’09YTD
18	Total Shares Repurchased / Canceled		97			8			n/m			220			n/m			404			30			n/m
19	Average Repurchase Price	$	52.08		$	50.45			3.2	%	$	56.35			-7.6	%	$	54.99		$	46.02			19.5	%
20	Net Shares Repurchased (Issued)		1			7			n/m			88			n/m			90			(327	)		n/m

Public Information October 19, 2010

WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
September 30, 2010

11. Period-End Balance Sheets.

		(unaudited, dollars in thousands)
								9/30/10 /						9/30/10 /
		9/30/10			9/30/09			9/30/09			6/30/10			6/30/10			3/31/10			12/31/09			6/30/09
1	Assets:
2	Cash and Money Market Assets	$	344,561		$	180,521			90.9	%	$	294,582			17.0	%	$	253,571		$	361,577		$	169,291
3	Investment Securities Available For Sale		569,511			391,644			45.4	%		466,500			22.1	%		414,987			384,208			407,127
4	Investment Securities Held to Maturity		618,838			780,846			-20.7	%		652,958			-5.2	%		690,585			726,935			830,618
5	Purchased Covered Loans (1)		718,618			932,656			-22.9	%		763,619			-5.9	%		809,503			855,301			1,031,643
6	Purchased Non-Covered Loans (2)		212,318			0			n/m			0			n/m			0			0			0
7	Originated Loans		2,077,915			2,267,130			-8.3	%		2,124,570			-2.2	%		2,146,580			2,201,088			2,322,005
8	Allowance For Loan Losses		(38,129	)		(42,683	)		-10.7	%		(39,716	)		-4.0	%		(40,316	)		(41,043	)		(43,122	)
9	Total Loans, net		2,970,722			3,157,103			-5.9	%		2,848,473			4.3	%		2,915,767			3,015,346			3,310,526
10	Non-Covered Other Real Estate Owned		22,201			4,319			n/m			18,028			23.2	%		14,266			12,642			4,715
11	Covered Other Real Estate Owned, net (1)		25,251			18,740			34.7	%		23,670			6.7	%		22,305			23,297			13,691
12	Premises and Equipment		36,271			38,982			-7.0	%		36,816			-1.5	%		37,423			38,098			26,490
13	Identifiable Intangible Assets		36,226			38,264			-5.3	%		32,529			11.4	%		34,070			35,667			39,934
14	Goodwill		121,673			121,699			0.0	%		121,673			0.0	%		121,699			121,699			121,699
15	Interest Receivable and Other Assets		232,617			239,041			-2.7	%		231,857			0.3	%		240,822			256,032			269,504
16	Total Assets	$	4,977,871		$	4,971,159			0.1	%	$	4,727,086			5.3	%	$	4,745,495		$	4,975,501		$	5,193,595
17	Liabilities and Shareholders’ Equity:
18	Deposits:
19	Noninterest Bearing	$	1,428,882		$	1,377,215			3.8	%	$	1,427,611			0.1	%	$	1,376,760		$	1,428,432		$	1,334,871
20	Interest-Bearing Transaction		689,372			660,001			4.5	%		642,202			7.3	%		653,872			669,004			716,706
21	Savings		1,032,003			962,823			7.2	%		954,285			8.1	%		957,126			971,384			968,408
22	Time		922,441			1,024,587			-10.0	%		866,462			6.5	%		907,271			991,388			1,137,152
23	Total Deposits		4,072,698			4,024,626			1.2	%		3,890,560			4.7	%		3,895,029			4,060,208			4,157,137
24	Short-Term Borrowed Funds		193,202			222,030			-13.0	%		210,503			-8.2	%		211,756			227,178			316,466
25	Federal Home Loan Bank Advances		66,934			85,904			-22.1	%		10,223			n/m			10,306			85,470			86,338
25	Debt Financing and Notes Payable		26,396			26,531			-0.5	%		26,430			-0.1	%		26,464			26,497			26,564
26	Liability For Interest, Taxes and Other		77,468			76,350			1.5	%		61,689			25.6	%		82,809			70,700			47,859
27	Total Liabilities		4,436,698			4,435,441			0.0	%		4,199,405			5.7	%		4,226,364			4,470,053			4,634,364
28	Shareholders’ Equity:
29	Preferred Stock		0			41,335			n/m			0			n/m			0			0			82,611
30	Common Equity:
31	Paid-In Capital		378,847			368,032			2.9	%		375,713			0.8	%		371,982			368,732			367,840
32	Accumulated Other Comprehensive Income		7,238			6,053			19.6	%		6,314			14.6	%		4,796			3,714			1,747
33	Retained Earnings		155,088			120,298			28.9	%		145,654			6.5	%		142,353			133,002			107,033
34	Total Common Equity		541,173			494,383			9.5	%		527,681			2.6	%		519,131			505,448			476,620
35	Total Shareholders’ Equity		541,173			535,718			1.0	%		527,681			2.6	%		519,131			505,448			559,231
36	Total Liabilities and Shareholders’ Equity	$	4,977,871		$	4,971,159			0.1	%	$	4,727,086			5.3	%	$	4,745,495		$	4,975,501		$	5,193,595

(1)	Purchased covered loans and other real estate owned represent purchased assets on which losses are shared with the FDIC per a Loss-Sharing Agreement.
	Purchased covered assets were recorded at estimated fair value at February 6, 2009, the date of purchase.
(2)	Purchased non-covered loans represent purchased loans recorded at estimated fair value at August 20, 2010, the date of purchase.

Public Information October 19, 2010

WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
September 30, 2010

12. Income Statements.

		(unaudited, dollars in thousands, except per-share amounts)
						Q3’10 /					Q3’10 /							9/30’10YTD /
		Q3’10		Q3’09		Q3’09			Q2’10		Q2’10			9/30’10YTD		9/30’09YTD		9/30’09YTD
1	Interest and Fee Income:
2	Loans	$	44,434	$	48,530		-8.4	%	$	44,060		0.8	%	$	133,196	$	143,148		-7.0	%
3	Money Market Assets and Funds Sold		1		1		n/m			0		n/m			2		3		n/m
4	Investment Securities Available For Sale		4,189		4,272		-1.9	%		4,026		4.0	%		12,110		12,550		-3.5	%
5	Investment Securities Held to Maturity		6,579		8,393		-21.6	%		6,992		-5.9	%		20,976		27,752		-24.4	%
6	Total Interest Income		55,203		61,196		-9.8	%		55,078		0.2	%		166,284		183,453		-9.4	%
7	Interest Expense:
8	Transaction Deposits		226		263		-13.9	%		218		3.6	%		661		761		-13.1	%
9	Savings Deposits		666		915		-27.2	%		659		1.1	%		2,064		2,874		-28.2	%
10	Time Deposits		1,155		2,095		-44.9	%		1,303		-11.4	%		3,991		7,890		-49.4	%
11	Short-Term Borrowed Funds		511		509		0.3	%		491		4.1	%		1,538		1,572		-2.2	%
12	Federal Home Loan Bank Advances		113		295		n/m			52		n/m			249		714		n/m
13	Debt Financing and Notes Payable		425		423		0.6	%		422		0.7	%		1,272		1,267		0.4	%
14	Total Interest Expense		3,096		4,500		-31.2	%		3,145		-1.6	%		9,775		15,078		-35.2	%
15	Net Interest Income		52,107		56,696		-8.1	%		51,933		0.3	%		156,509		168,375		-7.0	%
16	Provision for Loan Losses		2,800		2,800		0.0	%		2,800		0.0	%		8,400		7,200		16.7	%
17	Noninterest Income:
18	Service Charges on Deposit Accounts		8,162		9,479		-13.9	%		8,629		-5.4	%		25,533		27,017		-5.5	%
19	Merchant Credit Card		2,234		2,163		3.3	%		2,176		2.7	%		6,631		6,818		-2.7	%
20	ATM Fees & Interchange		1,004		965		4.0	%		1,021		-1.7	%		2,917		2,792		4.5	%
21	Debit Card Fees		1,259		1,267		-0.6	%		1,245		1.1	%		3,678		3,656		0.6	%
22	Financial Services Commissions		211		129		64.2	%		223		-5.1	%		583		420		38.9	%
23	Mortgage Banking		23		26		-13.9	%		40		-43.0	%		82		68		20.3	%
24	Trust Fees		429		319		34.2	%		448		-4.4	%		1,257		1,056		19.1	%
25	Gain on Acquisition		178		0		n/m			0		n/m			178		48,844		n/m
26	Other		1,571		1,613		-2.5	%		1,988		-20.9	%		5,452		5,644		-3.4	%
27	Total Noninterest Income		15,071		15,961		-5.6	%		15,770		-4.4	%		46,311		96,315		n/m
28	Noninterest Expense:
29	Salaries and Related Benefits		15,481		16,402		-5.6	%		15,476		0.0	%		46,849		50,221		-6.7	%
30	Occupancy		3,962		4,008		-1.2	%		3,822		3.7	%		11,561		14,831		-22.1	%
31	Equipment		1,067		1,789		-40.4	%		1,116		-4.3	%		3,234		4,618		-30.0	%
32	Outsourced Data Processing		2,187		2,258		-3.1	%		2,202		-0.7	%		6,629		6,740		-1.6	%
33	Amortization of Identifiable Intangibles		1,573		1,671		-5.8	%		1,540		2.1	%		4,711		5,051		-6.7	%
34	Professional Fees		950		913		4.1	%		867		9.7	%		2,480		2,580		-3.9	%
35	FDIC Insurance Assessment		1,268		1,442		-12.1	%		1,260		0.6	%		3,848		4,820		-20.2	%
36	Other		5,020		6,668		-24.7	%		5,812		-13.6	%		16,323		19,079		-14.4	%
37	Total Noninterest Expense		31,508		35,151		-10.4	%		32,095		-1.8	%		95,635		107,940		-11.4	%
38	Income Before Income Taxes		32,870		34,706		-5.3	%		32,808		0.2	%		98,785		149,550		n/m
39	Income Tax Provision		9,161		9,449		-3.0	%		9,247		-0.9	%		27,939		48,285		n/m
40	Net Income		23,709		25,257		-6.1	%		23,561		0.6	%		70,846		101,265		n/m
41	Preferred Stock Dividends and Discount Accretion		0		1,466		n/m			0		n/m			0		3,151		n/m
42	Net Income Applicable to Common Equity	$	23,709	$	23,791		-0.3	%	$	23,561		0.6	%	$	70,846	$	98,114		n/m
43	Average Common Shares Outstanding		29,127		29,210		-0.3	%		29,207		-0.3	%		29,187		29,072		0.4	%
44	Diluted Average Common Shares Outstanding		29,385		29,429		-0.2	%		29,568		-0.6	%		29,515		29,313		0.7	%
45	Per Common Share Data:
46	Basic Earnings	$	0.81	$	0.81		0.0	%	$	0.81		0.0	%	$	2.43	$	3.37		n/m
47	Diluted Earnings		0.81		0.81		0.0	%		0.80		1.2	%		2.40		3.35		n/m
48	Dividends Paid		0.36		0.35		2.9	%		0.36		0.0	%		1.08		1.06		1.9	%