R
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the quarterly period ended June 30, 2011
|
|
or
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£
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________.
|
1108 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA | 94901 |
(Address of Principal Executive Offices) |
(Zip Code)
|
Large accelerated filer R
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Accelerated filer £
|
Non-accelerated filer £
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Smaller reporting company £
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(Do not check if a smaller reporting company)
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Title of Class
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Shares outstanding as of July 25, 2011
|
Common Stock,
No Par Value
|
28,523,000
|
|
Page
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Forward Looking Statements
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3
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PART I - FINANCIAL INFORMATION | |
Item 1 Financial Statement
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4
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Notes to Unaudited Condensed Consolidated Financial Statements
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8
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Financial Summary
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30
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Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations
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31
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Item 3 Quantitative and Qualitative Disclosures about Market Risk
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50
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Item 4 Controls and Procedures
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50
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PART II - OTHER INFORMATION
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|
Item 1 Legal Proceedings
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50
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Item 1ARisk Factors
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50
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Item 2 Unregistered Sales of Equity Securities and Use of Proceeds
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51
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Item 3 Defaults upon Senior Securities
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51
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Item 4 Reserved
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51
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Item 5 Other Information
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51
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Item 6 Exhibits
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51
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Signatures
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52
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Exhibit Index
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53
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Exhibit 31.1 - Certification of Chief Executive Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a)
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54
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Exhibit 31.2 - Certification of Chief Financial Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a)
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55
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Exhibit 32.1 - Certification of Chief Executive Officer Required by 18 U.S.C. Section 1350
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56
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Exhibit 32.2 - Certification of Chief Financial Officer Required by 18 U.S.C. Section 1350
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57
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WESTAMERICA BANCORPORATION
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||||||||
CONSOLIDATED BALANCE SHEETS
|
||||||||
(unaudited)
|
||||||||
At June 30,
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At December 31,
|
|||||||
2011
|
2010
|
|||||||
(In thousands)
|
||||||||
Assets:
|
||||||||
Cash and due from banks
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$ | 320,119 | $ | 338,793 | ||||
Money market assets
|
- | 392 | ||||||
Investment securities available for sale
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705,078 | 671,484 | ||||||
Investment securities held to maturity,
with fair values of:
$687,326 at June 30, 2011, $594,711 at December 31, 2010
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669,452 | 580,728 | ||||||
Purchased covered loans
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622,727 | 692,972 | ||||||
Purchased non-covered loans
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164,844 | 199,571 | ||||||
Originated loans
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1,963,642 | 2,029,541 | ||||||
Allowance for loan losses
|
(33,008 | ) | (35,636 | ) | ||||
Total loans
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2,718,205 | 2,886,448 | ||||||
Non-covered other real estate owned
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16,637 | 13,620 | ||||||
Covered other real estate owned
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24,348 | 21,791 | ||||||
Premises and equipment, net
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35,015 | 36,278 | ||||||
Identifiable intangibles, net
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31,576 | 34,604 | ||||||
Goodwill
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121,673 | 121,673 | ||||||
Other assets
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234,628 | 225,713 | ||||||
Total Assets
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$ | 4,876,731 | $ | 4,931,524 | ||||
Liabilities:
|
||||||||
Deposits
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||||||||
Noninterest bearing deposits
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$ | 1,446,973 | $ | 1,454,663 | ||||
Interest bearing deposits
|
2,641,412 | 2,678,298 | ||||||
Total deposits
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4,088,385 | 4,132,961 | ||||||
Short-term borrowed funds
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106,727 | 107,385 | ||||||
Federal Home Loan Bank advances
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46,351 | 61,698 | ||||||
Debt financing and notes payable
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25,853 | 26,363 | ||||||
Other liabilities
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60,075 | 57,830 | ||||||
Total Liabilities
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4,327,391 | 4,386,237 | ||||||
Shareholders' Equity:
|
||||||||
Common stock (no par value), authorized - 150,000 shares
Issued and outstanding:
28,540 at June 30, 2011, 29,090 at December 31, 2010
|
375,277 | 378,885 | ||||||
Deferred compensation
|
3,060 | 2,724 | ||||||
Accumulated other comprehensive income
|
8,251 | 159 | ||||||
Retained earnings
|
162,752 | 163,519 | ||||||
Total Shareholders' Equity
|
549,340 | 545,287 | ||||||
Total Liabilities and Shareholders' Equity
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$ | 4,876,731 | $ | 4,931,524 |
WESTAMERICA BANCORPORATION
|
|||||||||||||
CONSOLIDATED STATEMENTS OF INCOME
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|||||||||||||
(unaudited)
|
|||||||||||||
Three months ended
|
Six months ended
|
||||||||||||
June 30,
|
June 30,
|
||||||||||||
2011
|
2010
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2011
|
2010
|
||||||||||
(In thousands, except per share data)
|
|||||||||||||
Interest and Fee Income:
|
|||||||||||||
Loans
|
$ | 41,272 | $ | 44,060 | $ | 82,635 | $ | 88,762 | |||||
Money market assets and funds sold
|
- | - | - | 1 | |||||||||
Investment securities available for sale
|
5,684 | 4,026 | 10,902 | 7,921 | |||||||||
Investment securities held to maturity
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6,132 | 6,992 | 12,045 | 14,397 | |||||||||
Total Interest and Fee Income
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53,088 | 55,078 | 105,582 | 111,081 | |||||||||
Interest Expense:
|
|||||||||||||
Deposits
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1,777 | 2,180 | 3,667 | 4,668 | |||||||||
Short-term borrowed funds
|
47 | 491 | 109 | 1,028 | |||||||||
Federal Home Loan Bank advances
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128 | 52 | 279 | 136 | |||||||||
Debt financing and notes payable
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201 | 422 | 401 | 847 | |||||||||
Total Interest Expense
|
2,153 | 3,145 | 4,456 | 6,679 | |||||||||
Net Interest Income
|
50,935 | 51,933 | 101,126 | 104,402 | |||||||||
Provision for Loan Losses
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2,800 | 2,800 | 5,600 | 5,600 | |||||||||
Net Interest Income After Provision For Loan Losses
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48,135 | 49,133 | 95,526 | 98,802 | |||||||||
Noninterest Income:
|
|||||||||||||
Service charges on deposit accounts
|
7,577 | 8,629 | 15,098 | 17,371 | |||||||||
Merchant processing services
|
2,391 | 2,176 | 4,562 | 4,397 | |||||||||
Debit card fees
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1,283 | 1,245 | 2,484 | 2,419 | |||||||||
ATM processing fees
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997 | 1,021 | 1,932 | 1,912 | |||||||||
Trust fees
|
482 | 448 | 975 | 829 | |||||||||
Financial services commissions
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117 | 223 | 146 | 372 | |||||||||
Other
|
2,445 | 2,028 | 4,838 | 3,940 | |||||||||
Total Noninterest Income
|
15,292 | 15,770 | 30,035 | 31,240 | |||||||||
Noninterest Expense:
|
|||||||||||||
Salaries and related benefits
|
14,913 | 15,476 | 29,988 | 31,368 | |||||||||
Occupancy
|
4,050 | 3,822 | 8,075 | 7,599 | |||||||||
Outsourced data processing services
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2,122 | 2,202 | 4,578 | 4,442 | |||||||||
Settlements
|
2,100 | - | 2,100 | 23 | |||||||||
Amortization of identifiable intangibles
|
1,480 | 1,540 | 3,028 | 3,138 | |||||||||
Professional fees
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1,453 | 867 | 2,303 | 1,530 | |||||||||
Furniture and equipment
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1,038 | 1,116 | 1,971 | 2,167 | |||||||||
Courier service
|
852 | 903 | 1,695 | 1,810 | |||||||||
FDIC insurance assessments
|
740 | 1,260 | 1,960 | 2,580 | |||||||||
Other
|
5,561 | 4,909 | 9,934 | 9,469 | |||||||||
Total Noninterest Expense
|
34,309 | 32,095 | 65,632 | 64,126 | |||||||||
Income Before Income Taxes
|
29,118 | 32,808 | 59,929 | 65,916 | |||||||||
Provision for income taxes
|
7,849 | 9,247 | 16,278 | 18,779 | |||||||||
Net Income
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$ | 21,269 | $ | 23,561 | $ | 43,651 | $ | 47,137 | |||||
Average Common Shares Outstanding
|
28,771 | 29,207 | 28,895 | 29,217 | |||||||||
Diluted Average Common Shares Outstanding
|
28,923 | 29,568 | 29,073 | 29,582 | |||||||||
Per Common Share Data:
|
|||||||||||||
Basic earnings
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$ | 0.74 | $ | 0.81 | $ | 1.51 | $ | 1.61 | |||||
Diluted earnings
|
0.74 | 0.80 | 1.50 | 1.59 | |||||||||
Dividends paid
|
0.36 | 0.36 | 0.72 | 0.72 |
WESTAMERICA BANCORPORATION
|
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME
|
(unaudited)
|
Common
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Accumulated
|
||||||||||||||||||
Shares
|
Common
|
Deferred
|
Comprehensive
|
Retained
|
|||||||||||||||
Outstanding
|
Stock
|
Compensation
|
Income
|
Earnings
|
Total
|
||||||||||||||
(In thousands)
|
|||||||||||||||||||
Balance, December 31, 2009
|
29,208 | $ | 366,247 | $ | 2,485 | $ | 3,714 | $ | 133,002 | $ | 505,448 | ||||||||
Comprehensive income
|
|||||||||||||||||||
Net income for the period
|
47,137 | 47,137 | |||||||||||||||||
Other comprehensive income,
net of tax:
|
|||||||||||||||||||
Increase in net unrealized gains
on securities available for sale
|
2,582 | 2,582 | |||||||||||||||||
Post-retirement benefit transition
obligation amortization
|
18 | 18 | |||||||||||||||||
Total comprehensive income
|
49,737 | ||||||||||||||||||
Exercise of stock options
|
210 | 8,783 | 8,783 | ||||||||||||||||
Stock option tax benefits
|
796 | 796 | |||||||||||||||||
Restricted stock activity
|
7 | 194 | 239 | 433 | |||||||||||||||
Stock based compensation
|
720 | 720 | |||||||||||||||||
Stock awarded to employees
|
1 | 77 | 77 | ||||||||||||||||
Purchase and retirement of stock
|
(308 | ) | (3,828 | ) | (13,392 | ) | (17,220 | ) | |||||||||||
Dividends
|
(21,093 | ) | (21,093 | ) | |||||||||||||||
Balance, June 30, 2010
|
29,118 | $ | 372,989 | $ | 2,724 | $ | 6,314 | $ | 145,654 | $ | 527,681 | ||||||||
Balance, December 31, 2010
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29,090 | $ | 378,885 | $ | 2,724 | $ | 159 | $ | 163,519 | $ | 545,287 | ||||||||
Comprehensive income
|
|||||||||||||||||||
Net income for the period
|
43,651 | 43,651 | |||||||||||||||||
Other comprehensive income,
net of tax:
|
|||||||||||||||||||
Increase in net unrealized gains
on securities available for sale
|
8,074 | 8,074 | |||||||||||||||||
Post-retirement benefit transition
obligation amortization
|
18 | 18 | |||||||||||||||||
Total comprehensive income
|
51,743 | ||||||||||||||||||
Exercise of stock options
|
74 | 3,273 | 3,273 | ||||||||||||||||
Stock option tax benefits
|
28 | 28 | |||||||||||||||||
Restricted stock activity
|
15 | 455 | 336 | 791 | |||||||||||||||
Stock based compensation
|
720 | 720 | |||||||||||||||||
Stock awarded to employees
|
1 | 58 | 58 | ||||||||||||||||
Purchase and retirement of stock
|
(640 | ) | (8,142 | ) | (23,542 | ) | (31,684 | ) | |||||||||||
Dividends
|
(20,876 | ) | (20,876 | ) | |||||||||||||||
Balance, June 30, 2011
|
28,540 | $ | 375,277 | $ | 3,060 | $ | 8,251 | $ | 162,752 | $ | 549,340 |
WESTAMERICA BANCORPORATION
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(unaudited)
|
For the six months
|
||||||||
ended June 30,
|
||||||||
2011
|
2010
|
|||||||
(In thousands)
|
||||||||
Operating Activities:
|
||||||||
Net income
|
$ | 43,651 | $ | 47,137 | ||||
Adjustments to reconcile net income to net cash
provided by operating activities:
|
||||||||
Depreciation and amortization
|
6,943 | 7,589 | ||||||
Loan loss provision
|
5,600 | 5,600 | ||||||
Net amortization of deferred loan (fees) cost
|
(190 | ) | 28 | |||||
(Increase) decrease in interest income receivable
|
(161 | ) | 657 | |||||
Decrease in other assets
|
1,685 | 403 | ||||||
Increase in income taxes payable
|
212 | 2,899 | ||||||
Increase in net deferred tax asset
|
(571 | ) | (11,275 | ) | ||||
Decrease in interest expense payable
|
(328 | ) | (1 | ) | ||||
Increase (decrease) in other liabilities
|
4,581 | (13,866 | ) | |||||
Stock option compensation expense
|
720 | 720 | ||||||
Stock option tax benefits
|
(28 | ) | (796 | ) | ||||
Gain on sale of other assets
|
(800 | ) | (608 | ) | ||||
Net gain on sale of premises and equipment
|
(127 | ) | (447 | ) | ||||
Originations of mortgage loans for resale
|
(90 | ) | (277 | ) | ||||
Net proceeds from sale of mortgage loans originated for resale
|
93 | 288 | ||||||
Net gain on sale of foreclosed assets
|
(193 | ) | (478 | ) | ||||
Write-down of foreclosed assets
|
845 | 399 | ||||||
Net Cash Provided by Operating Activities
|
61,842 | 37,972 | ||||||
Investing Activities:
|
||||||||
Net repayments of loans
|
146,387 | 145,389 | ||||||
Proceeds from FDIC loss-sharing indemnification
|
5,265 | 29,841 | ||||||
Purchases of investment securities available for sale
|
(152,998 | ) | (149,493 | ) | ||||
Purchases of investment securities held to maturity
|
(128,294 | ) | - | |||||
Proceeds from maturity/calls of securities available for sale
|
122,645 | 73,064 | ||||||
Proceeds from maturity/calls of securities held to maturity
|
41,749 | 73,977 | ||||||
Net change in FRB/FHLB* securities
|
(13,158 | ) | 3,121 | |||||
Proceeds from sale of foreclosed assets
|
6,734 | 8,071 | ||||||
Purchases of premises and equipment
|
(250 | ) | (448 | ) | ||||
Proceeds from sale of premises and equipment
|
169 | 603 | ||||||
Net Cash Provided by Investing Activities
|
28,249 | 184,125 | ||||||
Financing Activities:
|
||||||||
Net change in deposits
|
(43,848 | ) | (168,106 | ) | ||||
Net change in short-term borrowings and FHLB advances
|
(15,658 | ) | (92,152 | ) | ||||
Exercise of stock options
|
3,273 | 8,783 | ||||||
Stock option tax benefits
|
28 | 796 | ||||||
Repurchases/retirement of stock
|
(31,684 | ) | (17,220 | ) | ||||
Dividends paid
|
(20,876 | ) | (21,093 | ) | ||||
Net Cash Used in Financing Activities
|
(108,765 | ) | (288,992 | ) | ||||
Net Change In Cash and Due from Banks
|
(18,674 | ) | (66,895 | ) | ||||
Cash and Due from Banks at Beginning of Period
|
338,793 | 361,135 | ||||||
Cash and Due from Banks at End of Period
|
$ | 320,119 | $ | 294,240 | ||||
Supplemental Cash Flow Disclosures:
|
||||||||
Supplemental disclosure of non cash activities:
|
||||||||
Loan collateral transferred to other real estate owned
|
$ | 14,637 | $ | 13,749 | ||||
Supplemental disclosure of cash flow activities:
|
||||||||
Interest paid for the period
|
6,299 | 8,058 | ||||||
Income tax payments for the period
|
16,638 | 27,257 |
Statement of Net Assets Acquired (at fair value)
|
||||
At
|
||||
August 20, 2010
|
||||
(In thousands)
|
||||
Assets
|
||||
Cash and due from banks
|
$ | 57,895 | ||
Money market assets
|
26,050 | |||
Securities
|
7,223 | |||
Loans
|
213,664 | |||
Other real estate owned
|
2,916 | |||
Core deposit intangible
|
5,270 | |||
Other assets
|
2,065 | |||
Total Assets
|
$ | 315,083 | ||
Liabilities
|
||||
Deposits
|
252,563 | |||
Federal Home Loan Bank advances
|
61,872 | |||
Other liabilities
|
470 | |||
Total Liabilities
|
314,905 | |||
Net assets acquired
|
$ | 178 |
Statement of Net Assets Acquired (at fair value)
|
||||
At
|
||||
August 20, 2010
|
||||
(In thousands)
|
||||
Sonoma Valley Bank tangible shareholder's equity
|
$ | 13,923 | ||
Adjustments to reflect assets acquired and
liabilities assumed at fair value:
|
||||
Cash payment from FDIC
|
21,270 | |||
Loans and leases, net
|
(34,562 | ) | ||
Other real estate owned
|
(1,491 | ) | ||
Other assets
|
(811 | ) | ||
Core deposit intangible
|
5,270 | |||
Deposits
|
(1,233 | ) | ||
Federal Home Loan Bank advances
|
(1,872 | ) | ||
Other liabilities
|
(316 | ) | ||
Gain on acquisition
|
$ | 178 |
Investment securities available for sale
|
||||||||||||||||
At June 30, 2011
|
||||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
U.S. Treasury securities
|
$ | 3,546 | $ | 27 | $ | - | $ | 3,573 | ||||||||
Securities of U.S. Government sponsored entities
|
167,028 | 390 | (554 | ) | 166,864 | |||||||||||
Residential mortgage-backed securities
|
100,150 | 5,045 | (16 | ) | 105,179 | |||||||||||
Commercial mortgage-backed securities
|
4,827 | 12 | (8 | ) | 4,831 | |||||||||||
Obligations of States and political subdivisions
|
265,340 | 4,628 | (1,607 | ) | 268,361 | |||||||||||
Residential collateralized mortgage obligations
|
54,248 | 1,527 | - | 55,775 | ||||||||||||
Asset-backed securities
|
8,305 | - | (281 | ) | 8,024 | |||||||||||
FHLMC and FNMA stock
|
824 | 3,410 | (4 | ) | 4,230 | |||||||||||
Corporate securities
|
83,776 | 377 | (247 | ) | 83,906 | |||||||||||
Other securities
|
2,397 | 1,988 | (50 | ) | 4,335 | |||||||||||
Total
|
$ | 690,441 | $ | 17,404 | $ | (2,767 | ) | $ | 705,078 |
Investment securities held to maturity
|
||||||||||||||||
At June 30, 2011
|
||||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Residential mortgage-backed securities
|
$ | 33,139 | $ | 1,702 | $ | - | $ | 34,841 | ||||||||
Obligations of States and political subdivisions
|
503,039 | 16,618 | (629 | ) | 519,028 | |||||||||||
Residential collateralized mortgage obligations
|
133,274 | 2,274 | (2,091 | ) | 133,457 | |||||||||||
Total
|
$ | 669,452 | $ | 20,594 | $ | (2,720 | ) | $ | 687,326 |
Investment securities available for sale
|
||||||||||||||||
At December 31, 2010
|
||||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
U.S. Treasury securities
|
$ | 3,554 | $ | - | $ | (12 | ) | $ | 3,542 | |||||||
Securities of U.S. Government sponsored entities
|
175,080 | 162 | (2,365 | ) | 172,877 | |||||||||||
Residential mortgage-backed securities
|
105,702 | 4,142 | (15 | ) | 109,829 | |||||||||||
Commercial mortgage-backed securities
|
5,081 | 7 | (23 | ) | 5,065 | |||||||||||
Obligations of States and political subdivisions
|
264,757 | 2,423 | (6,047 | ) | 261,133 | |||||||||||
Residential collateralized mortgage obligations
|
24,709 | 894 | - | 25,603 | ||||||||||||
Asset-backed securities
|
9,060 | - | (774 | ) | 8,286 | |||||||||||
FHLMC and FNMA stock
|
824 | 42 | (211 | ) | 655 | |||||||||||
Corporate securities
|
79,356 | 200 | (365 | ) | 79,191 | |||||||||||
Other securities
|
2,655 | 2,699 | (51 | ) | 5,303 | |||||||||||
Total
|
$ | 670,778 | $ | 10,569 | $ | (9,863 | ) | $ | 671,484 |
Investment securities held to maturity
|
||||||||||||||||
At December 31, 2010
|
||||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Residential mortgage-backed securities
|
$ | 40,531 | $ | 1,797 | $ | - | $ | 42,328 | ||||||||
Obligations of States and political subdivisions
|
455,372 | 13,142 | (1,142 | ) | 467,372 | |||||||||||
Residential collateralized mortgage obligations
|
84,825 | 2,198 | (2,012 | ) | 85,011 | |||||||||||
Total
|
$ | 580,728 | $ | 17,137 | $ | (3,154 | ) | $ | 594,711 |
At June 30, 2011
|
||||||||||||||||
Securities Available
|
Securities Held
|
|||||||||||||||
for Sale
|
to Maturity
|
|||||||||||||||
Amortized
|
Fair
|
Amortized
|
Fair
|
|||||||||||||
Cost
|
Value
|
Cost
|
Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Maturity in years:
|
||||||||||||||||
1 year or less
|
$ | 14,162 | $ | 14,230 | $ | 9,574 | $ | 9,590 | ||||||||
Over 1 to 5 years
|
304,588 | 305,523 | 123,233 | 126,678 | ||||||||||||
Over 5 to 10 years
|
62,451 | 63,277 | 325,489 | 337,477 | ||||||||||||
Over 10 years
|
146,794 | 147,698 | 44,743 | 45,283 | ||||||||||||
Subtotal
|
527,995 | 530,728 | 503,039 | 519,028 | ||||||||||||
Mortgage-backed securities and residential
collateralized mortgage obligations
|
159,225 | 165,785 | 166,413 | 168,298 | ||||||||||||
Other securities
|
3,221 | 8,565 | - | - | ||||||||||||
Total
|
$ | 690,441 | $ | 705,078 | $ | 669,452 | $ | 687,326 |
At December 31, 2010
|
||||||||||||||||
Securities Available
|
Securities Held
|
|||||||||||||||
for Sale
|
to Maturity
|
|||||||||||||||
Amortized
|
Fair
|
Amortized
|
Fair
|
|||||||||||||
Cost
|
Value
|
Cost
|
Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Maturity in years:
|
||||||||||||||||
1 year or less
|
$ | 21,362 | $ | 21,460 | $ | 6,057 | $ | 6,103 | ||||||||
Over 1 to 5 years
|
315,777 | 314,605 | 92,837 | 95,608 | ||||||||||||
Over 5 to 10 years
|
64,565 | 64,804 | 351,407 | 360,602 | ||||||||||||
Over 10 years
|
130,103 | 124,160 | 5,071 | 5,059 | ||||||||||||
Subtotal
|
531,807 | 525,029 | 455,372 | 467,372 | ||||||||||||
Mortgage-backed securities and residential
collateralized mortgage obligations
|
135,492 | 140,497 | 125,356 | 127,339 | ||||||||||||
Other securities
|
3,479 | 5,958 | - | - | ||||||||||||
Total
|
$ | 670,778 | $ | 671,484 | $ | 580,728 | $ | 594,711 |
Investment securities available for sale
|
||||||||||||||||||||||||
At June 30, 2011
|
||||||||||||||||||||||||
Less than 12 months
|
12 months or longer
|
Total
|
||||||||||||||||||||||
Unrealized
|
Unrealized
|
Unrealized
|
||||||||||||||||||||||
Fair Value
|
Losses
|
Fair Value
|
Losses
|
Fair Value
|
Losses
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Securities of U.S. Government sponsored entities
|
$ | 66,561 | $ | (554 | ) | $ | - | $ | - | $ | 66,561 | $ | (554 | ) | ||||||||||
Residential mortgage-backed securities
|
- | - | 974 | (16 | ) | 974 | (16 | ) | ||||||||||||||||
Commercial mortgage-backed securities
|
- | - | 1,384 | (8 | ) | 1,384 | (8 | ) | ||||||||||||||||
Obligations of States and political subdivisions
|
58,597 | (1,187 | ) | 12,956 | (420 | ) | 71,553 | (1,607 | ) | |||||||||||||||
Asset-backed securities
|
- | - | 8,024 | (281 | ) | 8,024 | (281 | ) | ||||||||||||||||
FHLMC and FNMA stock
|
- | - | 1 | (4 | ) | 1 | (4 | ) | ||||||||||||||||
Corporate securities
|
39,753 | (247 | ) | - | - | 39,753 | (247 | ) | ||||||||||||||||
Other securities
|
- | - | 1,950 | (50 | ) | 1,950 | (50 | ) | ||||||||||||||||
Total
|
$ | 164,911 | $ | (1,988 | ) | $ | 25,289 | $ | (779 | ) | $ | 190,200 | $ | (2,767 | ) |
Investment securities held to maturity
|
||||||||||||||||||||||||
At June 30, 2011
|
||||||||||||||||||||||||
Less than 12 months
|
12 months or longer
|
Total
|
||||||||||||||||||||||
Unrealized
|
Unrealized
|
Unrealized
|
||||||||||||||||||||||
Fair Value
|
Losses
|
Fair Value
|
Losses
|
Fair Value
|
Losses
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Obligations of States and political subdivisions
|
$ | 34,115 | $ | (334 | ) | $ | 9,821 | $ | (295 | ) | $ | 43,936 | $ | (629 | ) | |||||||||
Residential collateralized mortgage obligations
|
22,259 | (97 | ) | 16,856 | (1,994 | ) | 39,115 | (2,091 | ) | |||||||||||||||
Total
|
$ | 56,374 | $ | (431 | ) | $ | 26,677 | $ | (2,289 | ) | $ | 83,051 | $ | (2,720 | ) |
Investment securities available for sale
|
||||||||||||||||||||||||
At December 31, 2010
|
||||||||||||||||||||||||
Less than 12 months
|
12 months or longer
|
Total
|
||||||||||||||||||||||
Unrealized
|
Unrealized
|
Unrealized
|
||||||||||||||||||||||
Fair Value
|
Losses
|
Fair Value
|
Losses
|
Fair Value
|
Losses
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
U.S. Treasury securities
|
$ | 3,542 | $ | (12 | ) | $ | - | $ | - | $ | 3,542 | $ | (12 | ) | ||||||||||
Securities of U.S. Government sponsored entities
|
146,083 | (2,365 | ) | - | - | 146,083 | (2,365 | ) | ||||||||||||||||
Residential mortgage-backed securities
|
1,534 | (15 | ) | - | - | 1,534 | (15 | ) | ||||||||||||||||
Commercial mortgage-backed securities
|
3,028 | (23 | ) | - | - | 3,028 | (23 | ) | ||||||||||||||||
Obligations of States and political subdivisions
|
132,014 | (5,505 | ) | 10,341 | (542 | ) | 142,355 | (6,047 | ) | |||||||||||||||
Asset-backed securities
|
- | - | 8,286 | (774 | ) | 8,286 | (774 | ) | ||||||||||||||||
FHLMC and FNMA stock
|
550 | (211 | ) | - | - | 550 | (211 | ) | ||||||||||||||||
Corporate securities
|
44,752 | (365 | ) | - | - | 44,752 | (365 | ) | ||||||||||||||||
Other securities
|
1 | - | 1,948 | (51 | ) | 1,949 | (51 | ) | ||||||||||||||||
Total
|
$ | 331,504 | $ | (8,496 | ) | $ | 20,575 | $ | (1,367 | ) | $ | 352,079 | $ | (9,863 | ) |
Investment securities held to maturity
|
||||||||||||||||||||||||
At December 31, 2010
|
||||||||||||||||||||||||
Less than 12 months
|
12 months or longer
|
Total
|
||||||||||||||||||||||
Unrealized
|
Unrealized
|
Unrealized
|
||||||||||||||||||||||
Fair Value
|
Losses
|
Fair Value
|
Losses
|
Fair Value
|
Losses
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Obligations of States and political subdivisions
|
$ | 22,157 | $ | (382 | ) | $ | 18,663 | $ | (760 | ) | $ | 40,820 | $ | (1,142 | ) | |||||||||
Residential collateralized mortgage obligations
|
- | - | 20,182 | (2,012 | ) | 20,182 | (2,012 | ) | ||||||||||||||||
Total
|
$ | 22,157 | $ | (382 | ) | $ | 38,845 | $ | (2,772 | ) | $ | 61,002 | $ | (3,154 | ) |
For the three months
|
For the six months
|
|||||||||||||||
ended June 30,
|
ended June 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Taxable
|
$ | 4,223 | $ | 4,199 | $ | 7,980 | $ | 8,628 | ||||||||
Tax-exempt
|
7,593 | 6,819 | 14,967 | 13,690 | ||||||||||||
Total interest income from investment securities
|
$ | 11,816 | $ | 11,018 | $ | 22,947 | $ | 22,318 |
At June 30,
|
At December 31,
|
|||||||
2011
|
2010
|
|||||||
(In thousands)
|
||||||||
Originated loans:
|
||||||||
Commercial
|
$ | 429,033 | $ | 474,183 | ||||
Commercial real estate
|
734,811 | 757,140 | ||||||
Construction
|
25,698 | 26,145 | ||||||
Residential real estate
|
293,771 | 310,196 | ||||||
Consumer installment & other
|
480,329 | 461,877 | ||||||
Total
|
$ | 1,963,642 | $ | 2,029,541 |
As of June 30, 2011
|
As of December 31, 2010
|
|||||||||||||||||||||||
Impaired
Purchased
Covered Loans
|
Non Impaired
Purchased
Covered Loans
|
Total Purchased
Covered Loans
|
Impaired
Purchased
Covered Loans
|
Non Impaired
Purchased
Covered Loans
|
Total Purchased
Covered Loans
|
|||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||
Purchased covered loans:
|
||||||||||||||||||||||||
Commercial
|
$ | 6,593 | $ | 125,530 | $ | 132,123 | $ | 10,014 | $ | 158,971 | $ | 168,985 | ||||||||||||
Commercial real estate
|
12,507 | 364,661 | 377,168 | 14,079 | 376,603 | 390,682 | ||||||||||||||||||
Construction
|
5,997 | 11,709 | 17,706 | 9,073 | 19,307 | 28,380 | ||||||||||||||||||
Residential real estate
|
138 | 13,724 | 13,862 | 138 | 18,236 | 18,374 | ||||||||||||||||||
Consumer installment & other
|
244 | 81,624 | 81,868 | 252 | 86,299 | 86,551 | ||||||||||||||||||
Total
|
$ | 25,479 | $ | 597,248 | $ | 622,727 | $ | 33,556 | $ | 659,416 | $ | 692,972 |
Six months ended
|
Year ended
|
|||||||
June 30, 2011
|
December 31, 2010
|
|||||||
(In thousands)
|
||||||||
Carrying amount at the beginning of the period
|
$ | 33,556 | $ | 43,196 | ||||
Reductions during the period
|
(8,077 | ) | (9,640 | ) | ||||
Carrying amount at the end of the period
|
$ | 25,479 | $ | 33,556 |
At June 30, 2011
|
At December 31, 2010
|
|||||||||||||||||||||||
Impaired
Purchased Non-
covered Loans
|
Non Impaired
Purchased Non-
covered Loans
|
Total Purchased
Non-covered
Loans
|
Impaired
Purchased Non-
covered Loans
|
Non Impaired
Purchased Non-
covered Loans
|
Total Purchased
Non-covered
Loans
|
|||||||||||||||||||
(In thousands)
|
(In thousands)
|
|||||||||||||||||||||||
Purchased non-covered loans:
|
||||||||||||||||||||||||
Commercial
|
$ | 1,294 | $ | 14,121 | $ | 15,415 | $ | 415 | $ | 15,005 | $ | 15,420 | ||||||||||||
Commercial real estate
|
15,876 | 85,516 | 101,392 | 22,988 | 99,900 | 122,888 | ||||||||||||||||||
Construction
|
4,001 | 10,844 | 14,845 | 6,514 | 15,106 | 21,620 | ||||||||||||||||||
Residential real estate
|
311 | 5,970 | 6,281 | 311 | 6,744 | 7,055 | ||||||||||||||||||
Consumer installment & other
|
459 | 26,452 | 26,911 | 1,790 | 30,798 | 32,588 | ||||||||||||||||||
Total
|
$ | 21,941 | $ | 142,903 | $ | 164,844 | $ | 32,018 | $ | 167,553 | $ | 199,571 |
|
At August 20, 2010 | |||
(In thousands) | ||||
Gross contractual loan principal payment receivable
|
$ | 188,206 | ||
Estimate of contractual principal not expected to be collected
|
(15,058 | ) | ||
Fair value of non impaired purchased loans receivable
|
$ | 175,922 |
Impaired purchased non-covered loans
|
||||
At August 20, 2010
|
||||
(In thousands)
|
||||
Contractually required payments receivable (including interest)
|
$ | 70,882 | ||
Nonaccretable difference
|
(33,140 | ) | ||
Cash flows expected to be collected
|
37,742 | |||
Accretable difference
|
- | |||
Fair value of loans acquired
|
$ | 37,742 |
August 20, 2010
|
||||||||
Six months ended
|
through
|
|||||||
June 30, 2011
|
December 31, 2010
|
|||||||
Impaired purchased non-covered loans
|
||||||||
(In thousands)
|
||||||||
Carrying amount at the beginning of the period
|
$ | 32,018 | $ | 37,742 | ||||
Reductions during the period
|
(10,077 | ) | (5,724 | ) | ||||
Carrying amount at the end of the period
|
$ | 21,941 | $ | 32,018 |
Allowance for Credit Losses
|
||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2011
|
||||||||||||||||||||||||||||
Commercial
|
Residential
|
|||||||||||||||||||||||||||
Commercial
|
Real Estate
|
Construction
|
Real Estate
|
Consumer
|
Unallocated
|
Total
|
||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||
Allowance for credit losses:
|
||||||||||||||||||||||||||||
Beginning balance
|
$ | 9,878 | $ | 9,607 | $ | 3,559 | $ | 617 | $ | 6,982 | $ | 7,686 | $ | 38,329 | ||||||||||||||
Charge-offs
|
(4,987 | ) | - | (1,475 | ) | (527 | ) | (3,475 | ) | - | (10,464 | ) | ||||||||||||||||
Recoveries
|
643 | - | - | - | 1,593 | - | 2,236 | |||||||||||||||||||||
Provision
|
2,967 | 667 | 1,980 | 376 | (1,431 | ) | 1,041 | 5,600 | ||||||||||||||||||||
Ending balance
|
$ | 8,501 | $ | 10,274 | $ | 4,064 | $ | 466 | $ | 3,669 | $ | 8,727 | $ | 35,701 | ||||||||||||||
Components:
|
||||||||||||||||||||||||||||
Allowance for loan losses
|
$ | 6,729 | $ | 10,241 | $ | 3,959 | $ | 466 | $ | 3,522 | $ | 8,091 | $ | 33,008 | ||||||||||||||
Liability for off-balance sheet
credit exposure
|
1,772 | 33 | 105 | - | 147 | 636 | 2,693 | |||||||||||||||||||||
Total
|
$ | 8,501 | $ | 10,274 | $ | 4,064 | $ | 466 | $ | 3,669 | $ | 8,727 | $ | 35,701 | ||||||||||||||
Ending balance: individually evaluated for impairment
|
$ | - | $ | 399 | $ | 1,514 | $ | - | $ | - | $ | - | $ | 1,913 | ||||||||||||||
Ending balance: collectively evaluated for impairment
|
$ | 8,501 | $ | 9,875 | $ | 2,550 | $ | 466 | $ | 3,669 | $ | 8,727 | $ | 33,788 | ||||||||||||||
Ending balance: loans acquired with deteriorated quality
|
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - |
Allowance for Credit Losses
|
||||||||||||||||||||||||||||
At December 31, 2010
|
||||||||||||||||||||||||||||
Commercial
|
Residential
|
|||||||||||||||||||||||||||
Commercial
|
Real Estate
|
Construction
|
Real Estate
|
Consumer
|
Unallocated
|
Total
|
||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||
Allowance for credit losses
|
||||||||||||||||||||||||||||
Components:
|
||||||||||||||||||||||||||||
Allowance for loan losses
|
$ | 8,094 | $ | 9,607 | $ | 3,260 | $ | 617 | $ | 6,372 | $ | 7,686 | $ | 35,636 | ||||||||||||||
Liability for off-balance sheet credit exposure
|
1,784 | - | 299 | - | 610 | - | 2,693 | |||||||||||||||||||||
Total
|
$ | 9,878 | $ | 9,607 | $ | 3,559 | $ | 617 | $ | 6,982 | $ | 7,686 | $ | 38,329 | ||||||||||||||
Ending balance: individually evaluated for impairment
|
$ | - | $ | - | $ | 1,365 | $ | - | $ | - | $ | - | $ | 1,365 | ||||||||||||||
Ending balance: collectively evaluated for impairment
|
$ | 9,878 | $ | 9,607 | $ | 2,194 | $ | 617 | $ | 6,982 | $ | 7,686 | $ | 36,964 | ||||||||||||||
Ending balance: loans acquired with deteriorated quality
|
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - |
At June 30, 2011
|
||||||||||||||||||||||||||||
Commercial
|
Residential
|
|||||||||||||||||||||||||||
Commercial
|
Real Estate
|
Construction
|
Real Estate
|
Consumer
|
Unallocated
|
Total
|
||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||
Purchased loans principal balance
|
$ | 176,566 | $ | 513,345 | $ | 39,501 | $ | 21,134 | $ | 114,630 | $ | - | $ | 865,176 | ||||||||||||||
Default risk purchase discount
|
(29,028 | ) | (34,785 | ) | (6,950 | ) | (991 | ) | (5,851 | ) | - | (77,605 | ) | |||||||||||||||
Purchased loans recorded investment
|
147,538 | 478,560 | 32,551 | 20,143 | 108,779 | - | 787,571 | |||||||||||||||||||||
Originated loans
|
429,033 | 734,811 | 25,698 | 293,771 | 480,329 | - | 1,963,642 | |||||||||||||||||||||
Ending balance
|
$ | 576,571 | $ | 1,213,371 | $ | 58,249 | $ | 313,914 | $ | 589,108 | $ | - | $ | 2,751,213 |
At December 31, 2010
|
||||||||||||||||||||||||||||
Commercial
|
Residential
|
|||||||||||||||||||||||||||
Commercial
|
Real Estate
|
Construction
|
Real Estate
|
Consumer
|
Unallocated
|
Total
|
||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||
Purchased loans principal balance
|
$ | 215,728 | $ | 554,619 | $ | 60,983 | $ | 26,420 | $ | 128,959 | $ | - | $ | 986,709 | ||||||||||||||
Default risk purchase discount
|
(31,323 | ) | (41,049 | ) | (10,983 | ) | (991 | ) | (9,820 | ) | - | (94,166 | ) | |||||||||||||||
Purchased loans recorded investment
|
184,405 | 513,570 | 50,000 | 25,429 | 119,139 | - | 892,543 | |||||||||||||||||||||
Originated loans
|
474,183 | 757,140 | 26,145 | 310,196 | 461,877 | - | 2,029,541 | |||||||||||||||||||||
Ending balance
|
$ | 658,588 | $ | 1,270,710 | $ | 76,145 | $ | 335,625 | $ | 581,016 | $ | - | $ | 2,922,084 |
At June 30, 2011
|
||||||||||||||||||||||||||||
Commercial
|
Residential
|
|||||||||||||||||||||||||||
Commercial
|
Real Estate
|
Construction
|
Real Estate
|
Consumer
|
Unallocated
|
Total
|
||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 4,958 | $ | 5,669 | $ | 15,000 | $ | - | $ | 1,271 | $ | - | $ | 26,898 | ||||||||||||||
Collectively evaluated for impairment
|
$ | 563,726 | $ | 1,179,319 | $ | 33,251 | $ | 313,465 | $ | 587,134 | $ | - | $ | 2,676,895 | ||||||||||||||
Loans acquired with deteriorated quality
|
$ | 7,887 | $ | 28,383 | $ | 9,998 | $ | 449 | $ | 703 | $ | - | $ | 47,420 |
At December 31, 2010
|
||||||||||||||||||||||||||||
Commercial
|
Residential
|
|||||||||||||||||||||||||||
Commercial
|
Real Estate
|
Construction
|
Real Estate
|
Consumer
|
Unallocated
|
Total
|
||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 11,947 | $ | 7,004 | $ | 7,421 | $ | - | $ | - | $ | - | $ | 26,372 | ||||||||||||||
Collectively evaluated for impairment
|
$ | 636,212 | $ | 1,226,639 | $ | 53,137 | $ | 335,176 | $ | 578,974 | $ | - | $ | 2,830,138 | ||||||||||||||
Loans acquired with deteriorated quality
|
$ | 10,429 | $ | 37,067 | $ | 15,587 | $ | 449 | $ | 2,042 | $ | - | $ | 65,574 |
Originated Loans
|
||||||||||||||||||||||||||||
At June 30, 2011
|
||||||||||||||||||||||||||||
Total
|
||||||||||||||||||||||||||||
Commercial
|
Residential
|
Indirect
|
Other
|
Originated
|
||||||||||||||||||||||||
Commercial
|
Real Estate
|
Construction
|
Real Estate
|
Automobile
|
consumer
|
Loans
|
||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||
Grade:
|
||||||||||||||||||||||||||||
Pass
|
$ | 386,926 | $ | 691,531 | $ | 14,218 | $ | 289,703 | $ | 416,265 | $ | 61,802 | $ | 1,860,445 | ||||||||||||||
Special mention
|
22,517 | 17,322 | 341 | 1,737 | - | 450 | 42,367 | |||||||||||||||||||||
Substandard
|
18,690 | 25,958 | 11,139 | 2,331 | 399 | 907 | 59,424 | |||||||||||||||||||||
Doubtful
|
900 | - | - | - | 19 | 35 | 954 | |||||||||||||||||||||
Loss
|
- | - | - | - | 452 | - | 452 | |||||||||||||||||||||
Total
|
$ | 429,033 | $ | 734,811 | $ | 25,698 | $ | 293,771 | $ | 417,135 | $ | 63,194 | $ | 1,963,642 |
Originated Loans
|
||||||||||||||||||||||||||||
At December 31, 2010
|
||||||||||||||||||||||||||||
Total
|
||||||||||||||||||||||||||||
Commercial
|
Residential
|
Indirect
|
Other
|
Originated
|
||||||||||||||||||||||||
Commercial
|
Real Estate
|
Construction
|
Real Estate
|
Automobile
|
consumer
|
Loans
|
||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||
Grade:
|
||||||||||||||||||||||||||||
Pass
|
$ | 427,878 | $ | 718,124 | $ | 18,073 | $ | 305,433 | $ | 398,805 | $ | 59,984 | $ | 1,928,297 | ||||||||||||||
Special mention
|
17,731 | 19,216 | - | 1,749 | - | 568 | 39,264 | |||||||||||||||||||||
Substandard
|
27,801 | 19,800 | 8,072 | 3,014 | 311 | 1,481 | 60,479 | |||||||||||||||||||||
Doubtful
|
773 | - | - | - | 61 | 28 | 862 | |||||||||||||||||||||
Loss
|
- | - | - | - | 636 | 3 | 639 | |||||||||||||||||||||
Total
|
$ | 474,183 | $ | 757,140 | $ | 26,145 | $ | 310,196 | $ | 399,813 | $ | 62,064 | $ | 2,029,541 |
Purchased Covered Loans
|
||||||||||||||||||||||||||||
At June 30, 2011
|
||||||||||||||||||||||||||||
Total
|
||||||||||||||||||||||||||||
Purchased
|
||||||||||||||||||||||||||||
Commercial
|
Residential
|
Indirect
|
Other
|
Covered
|
||||||||||||||||||||||||
Commercial
|
Real Estate
|
Construction
|
Real Estate
|
Automobile
|
consumer
|
Loans
|
||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||
Grade:
|
||||||||||||||||||||||||||||
Pass
|
$ | 70,063 | $ | 257,709 | $ | 1,914 | $ | 10,911 | $ | - | $ | 82,752 | $ | 423,349 | ||||||||||||||
Special mention
|
14,797 | 40,650 | 605 | - | - | 95 | 56,147 | |||||||||||||||||||||
Substandard
|
73,541 | 99,450 | 6,200 | 3,475 | - | 1,475 | 184,141 | |||||||||||||||||||||
Doubtful
|
1,520 | 1,085 | 11,925 | - | - | 87 | 14,617 | |||||||||||||||||||||
Loss
|
- | - | - | - | - | - | 0 | |||||||||||||||||||||
Default risk purchase discount
|
(27,798 | ) | (21,726 | ) | (2,938 | ) | (524 | ) | - | (2,541 | ) | (55,527 | ) | |||||||||||||||
Total
|
$ | 132,123 | $ | 377,168 | $ | 17,706 | $ | 13,862 | $ | - | $ | 81,868 | $ | 622,727 |
Purchased Covered Loans
|
||||||||||||||||||||||||||||
At December 31, 2010
|
||||||||||||||||||||||||||||
Total
|
||||||||||||||||||||||||||||
Purchased
|
||||||||||||||||||||||||||||
Commercial
|
Residential
|
Indirect
|
Other
|
Covered
|
||||||||||||||||||||||||
Commercial
|
Real Estate
|
Construction
|
Real Estate
|
Automobile
|
consumer
|
Loans
|
||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||
Grade:
|
||||||||||||||||||||||||||||
Pass
|
$ | 97,652 | $ | 281,679 | $ | 1,721 | $ | 12,688 | $ | - | $ | 88,733 | $ | 482,473 | ||||||||||||||
Special mention
|
17,485 | 44,355 | 615 | - | - | - | 62,455 | |||||||||||||||||||||
Substandard
|
82,657 | 86,720 | 30,890 | 5,345 | - | 1,034 | 206,646 | |||||||||||||||||||||
Doubtful
|
430 | 1,105 | 345 | 865 | - | 2 | 2,747 | |||||||||||||||||||||
Loss
|
- | - | - | - | - | 435 | 435 | |||||||||||||||||||||
Default risk purchase discount
|
(29,239 | ) | (23,177 | ) | (5,191 | ) | (524 | ) | - | (3,653 | ) | (61,784 | ) | |||||||||||||||
Total
|
$ | 168,985 | $ | 390,682 | $ | 28,380 | $ | 18,374 | $ | - | $ | 86,551 | $ | 692,972 |
Purchased Non-covered Loans
|
||||||||||||||||||||||||||||
At June 30, 2011
|
||||||||||||||||||||||||||||
Total
|
||||||||||||||||||||||||||||
Purchased
|
||||||||||||||||||||||||||||
Commercial
|
Residential
|
Indirect
|
Other
|
Non-covered
|
||||||||||||||||||||||||
Commercial
|
Real Estate
|
Construction
|
Real Estate
|
Automobile
|
consumer
|
Loans
|
||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||
Grade:
|
||||||||||||||||||||||||||||
Pass
|
$ | 13,493 | $ | 45,140 | $ | 1,581 | $ | 4,481 | $ | - | $ | 21,363 | $ | 86,058 | ||||||||||||||
Special mention
|
599 | 20,931 | - | 344 | - | 2,748 | 24,622 | |||||||||||||||||||||
Substandard
|
2,348 | 39,890 | 16,717 | 1,923 | - | 5,872 | 66,750 | |||||||||||||||||||||
Doubtful
|
205 | 8,490 | 559 | - | - | 238 | 9,492 | |||||||||||||||||||||
Loss
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Default risk purchase discount
|
(1,230 | ) | (13,059 | ) | (4,012 | ) | (467 | ) | - | (3,310 | ) | (22,078 | ) | |||||||||||||||
Total
|
$ | 15,415 | $ | 101,392 | $ | 14,845 | $ | 6,281 | $ | - | $ | 26,911 | $ | 164,844 |
Purchased Non-covered Loans
|
||||||||||||||||||||||||||||
At December 31, 2010
|
||||||||||||||||||||||||||||
Total
|
||||||||||||||||||||||||||||
Purchased
|
||||||||||||||||||||||||||||
Commercial
|
Residential
|
Indirect
|
Other
|
Non-covered
|
||||||||||||||||||||||||
Commercial
|
Real Estate
|
Construction
|
Real Estate
|
Automobile
|
consumer
|
Loans
|
||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||
Grade:
|
||||||||||||||||||||||||||||
Pass
|
$ | 12,748 | $ | 78,899 | $ | 5,335 | $ | 6,157 | $ | - | $ | 25,184 | $ | 128,323 | ||||||||||||||
Special mention
|
2,282 | 15,589 | 4,604 | - | - | 2,748 | 25,223 | |||||||||||||||||||||
Substandard
|
1,980 | 33,796 | 15,110 | 1,365 | - | 9,690 | 61,941 | |||||||||||||||||||||
Doubtful
|
494 | 12,476 | 2,363 | - | - | 1,132 | 16,465 | |||||||||||||||||||||
Loss
|
- | - | - | - | - | 1 | 1 | |||||||||||||||||||||
Default risk purchase discount
|
(2,084 | ) | (17,872 | ) | (5,792 | ) | (467 | ) | - | (6,167 | ) | (32,382 | ) | |||||||||||||||
Total
|
$ | 15,420 | $ | 122,888 | $ | 21,620 | $ | 7,055 | $ | - | $ | 32,588 | $ | 199,571 |
Originated Loans
|
||||||||||||||||||||||||
At June 30, 2011
|
||||||||||||||||||||||||
Past Due
|
||||||||||||||||||||||||
30-89 Days
|
90 days
|
Total Past
|
Total
|
|||||||||||||||||||||
Past Due
|
or More
|
Due
|
Current
|
Originated
|
||||||||||||||||||||
and Accruing
|
and Accruing
|
and Accruing
|
and Accruing
|
Nonaccrual
|
Loans
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Commercial
|
$ | 6,254 | $ | - | $ | 6,254 | $ | 420,791 | $ | 1,988 | $ | 429,033 | ||||||||||||
Commercial Real Estate
|
14,466 | - | 14,466 | 713,627 | 6,718 | 734,811 | ||||||||||||||||||
Construction
|
- | - | - | 14,559 | 11,139 | 25,698 | ||||||||||||||||||
Residential Real Estate
|
3,899 | - | 3,899 | 289,019 | 853 | 293,771 | ||||||||||||||||||
Indirect Automobile
|
4,447 | 522 | 4,969 | 412,165 | - | 417,134 | ||||||||||||||||||
Other Consumer
|
354 | 33 | 387 | 62,591 | 217 | 63,195 | ||||||||||||||||||
Total
|
$ | 29,420 | $ | 555 | $ | 29,975 | $ | 1,912,752 | $ | 20,915 | $ | 1,963,642 |
Originated Loans
|
||||||||||||||||||||||||
At December 31, 2010
|
||||||||||||||||||||||||
Past Due
|
||||||||||||||||||||||||
30-89 Days
|
90 days
|
Total Past
|
Total
|
|||||||||||||||||||||
Past Due
|
or More
|
Due
|
Current
|
Originated
|
||||||||||||||||||||
and Accruing
|
and Accruing
|
and Accruing
|
and Accruing
|
Nonaccrual
|
Loans
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Commercial
|
$ | 7,274 | $ | - | $ | 7,274 | $ | 458,061 | $ | 8,848 | $ | 474,183 | ||||||||||||
Commercial Real Estate
|
14,037 | - | 14,037 | 737,167 | 5,936 | 757,140 | ||||||||||||||||||
Construction
|
4,022 | - | 4,022 | 18,073 | 4,050 | 26,145 | ||||||||||||||||||
Residential Real Estate
|
2,552 | - | 2,552 | 305,709 | 1,935 | 310,196 | ||||||||||||||||||
Indirect Automobile
|
6,382 | 647 | 7,029 | 392,784 | - | 399,813 | ||||||||||||||||||
Other Consumer
|
488 | 119 | 607 | 61,358 | 99 | 62,064 | ||||||||||||||||||
Total
|
$ | 34,755 | $ | 766 | $ | 35,521 | $ | 1,973,152 | $ | 20,868 | $ | 2,029,541 |
Purchased Covered Loans
|
||||||||||||||||||||||||
At June 30, 2011
|
||||||||||||||||||||||||
Past Due
|
Total
|
|||||||||||||||||||||||
30-89 Days
|
90 days
|
Total Past
|
Purchased
|
|||||||||||||||||||||
Past Due
|
or More
|
Due
|
Current
|
Covered
|
||||||||||||||||||||
and Accruing
|
and Accruing
|
and Accruing
|
and Accruing
|
Nonaccrual
|
Loans
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Commercial
|
$ | 2,720 | $ | - | $ | 2,720 | $ | 118,879 | $ | 10,524 | $ | 132,123 | ||||||||||||
Commercial Real Estate
|
26,102 | - | 26,102 | 343,498 | 7,568 | 377,168 | ||||||||||||||||||
Construction
|
305 | - | 305 | 8,578 | 8,823 | 17,706 | ||||||||||||||||||
Residential Real Estate
|
- | - | - | 13,724 | 138 | 13,862 | ||||||||||||||||||
Other Consumer
|
940 | 472 | 1,412 | 79,918 | 538 | 81,868 | ||||||||||||||||||
Total
|
$ | 30,067 | $ | 472 | $ | 30,539 | $ | 564,597 | $ | 27,591 | $ | 622,727 |
Purchased Covered Loans
|
||||||||||||||||||||||||
At December 31, 2010
|
||||||||||||||||||||||||
Past Due
|
Total
|
|||||||||||||||||||||||
30-89 Days
|
90 days
|
Total Past
|
Purchased
|
|||||||||||||||||||||
Past Due
|
or More
|
Due
|
Current
|
Covered
|
||||||||||||||||||||
and Accruing
|
and Accruing
|
and Accruing
|
and Accruing
|
Nonaccrual
|
Loans
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Commercial
|
$ | 12,692 | $ | - | $ | 12,692 | $ | 144,307 | $ | 11,986 | $ | 168,985 | ||||||||||||
Commercial Real Estate
|
12,413 | - | 12,413 | 355,518 | 22,751 | 390,682 | ||||||||||||||||||
Construction
|
415 | - | 415 | 17,508 | 10,457 | 28,380 | ||||||||||||||||||
Residential Real Estate
|
128 | - | 128 | 16,568 | 1,678 | 18,374 | ||||||||||||||||||
Other Consumer
|
2,200 | 355 | 2,555 | 83,723 | 273 | 86,551 | ||||||||||||||||||
Total
|
$ | 27,848 | $ | 355 | $ | 28,203 | $ | 617,624 | $ | 47,145 | $ | 692,972 |
Purchased Non-covered Loans
|
||||||||||||||||||||||||
At June 30, 2011
|
||||||||||||||||||||||||
Past Due
|
||||||||||||||||||||||||
30-89 Days
|
90 days
|
Total Past
|
Total Purchased
|
|||||||||||||||||||||
Past Due
|
or More
|
Due
|
Current
|
Non-covered
|
||||||||||||||||||||
and Accruing
|
and Accruing
|
and Accruing
|
and Accruing
|
Nonaccrual
|
Loans
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Commercial
|
$ | 23 | $ | - | $ | 23 | $ | 15,107 | $ | 285 | $ | 15,415 | ||||||||||||
Commercial Real Estate
|
3,324 | - | 3,324 | 74,739 | 23,329 | 101,392 | ||||||||||||||||||
Construction
|
- | - | - | 7,563 | 7,282 | 14,845 | ||||||||||||||||||
Residential Real Estate
|
562 | - | 562 | 5,408 | 311 | 6,281 | ||||||||||||||||||
Other Consumer
|
1,896 | 159 | 2,055 | 22,612 | 2,244 | 26,911 | ||||||||||||||||||
Total
|
$ | 5,805 | $ | 159 | $ | 5,964 | $ | 125,429 | $ | 33,451 | $ | 164,844 |
Purchased Non-covered Loans
|
||||||||||||||||||||||||
At December 31, 2010
|
||||||||||||||||||||||||
Past Due
|
||||||||||||||||||||||||
30-89 Days
|
90 days
|
Total Past
|
Total Purchased
|
|||||||||||||||||||||
Past Due
|
or More
|
Due
|
Current
|
Non-covered
|
||||||||||||||||||||
and Accruing
|
and Accruing
|
and Accruing
|
and Accruing
|
Nonaccrual
|
Loans
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Commercial
|
$ | 1,089 | $ | - | $ | 1,089 | $ | 13,969 | $ | 362 | $ | 15,420 | ||||||||||||
Commercial Real Estate
|
2,860 | - | 2,860 | 93,384 | 26,644 | 122,888 | ||||||||||||||||||
Construction
|
- | - | - | 13,390 | 8,230 | 21,620 | ||||||||||||||||||
Residential Real Estate
|
3,336 | - | 3,336 | 3,408 | 311 | 7,055 | ||||||||||||||||||
Other Consumer
|
1,503 | 1 | 1,504 | 27,468 | 3,616 | 32,588 | ||||||||||||||||||
Total
|
$ | 8,788 | $ | 1 | $ | 8,789 | $ | 151,619 | $ | 39,163 | $ | 199,571 |
Impaired Loans
|
||||||||||||
At June 30, 2011
|
||||||||||||
Unpaid
|
||||||||||||
Recorded
|
Principal
|
Related
|
||||||||||
Investment
|
Balance
|
Allowance
|
||||||||||
(In thousands)
|
||||||||||||
Impaired loans with no related allowance recorded:
|
||||||||||||
Commercial
|
$ | 12,845 | $ | 22,026 | $ | - | ||||||
Commercial Real Estate
|
32,195 | 55,568 | - | |||||||||
Construction
|
20,330 | 33,994 | - | |||||||||
Residential Real Estate
|
449 | 451 | - | |||||||||
Other Consumer
|
1,974 | 2,708 | - | |||||||||
Impaired loans with an allowance recorded:
|
||||||||||||
Commercial Real Estate
|
1,857 | 1,857 | 399 | |||||||||
Construction
|
4,668 | 5,608 | 1,514 | |||||||||
Total:
|
||||||||||||
Commercial
|
$ | 12,845 | $ | 22,026 | $ | - | ||||||
Commercial Real Estate
|
34,052 | 57,425 | 399 | |||||||||
Construction
|
24,998 | 39,602 | 1,514 | |||||||||
Residential Real Estate
|
449 | 451 | - | |||||||||
Other Consumer
|
1,974 | 2,708 | - |
Impaired Loans
|
||||||||||||||||
For the three months ended
|
For the six months ended
|
|||||||||||||||
June 30, 2011
|
June 30, 2011
|
|||||||||||||||
Average
|
Recognized
|
Average
|
Recognized
|
|||||||||||||
Recorded
|
Interest
|
Recorded
|
Interest
|
|||||||||||||
Investment
|
Income
|
Investment
|
Income
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Commercial
|
$ | 17,135 | $ | 179 | $ | 17,373 | $ | 509 | ||||||||
Commercial Real Estate
|
38,402 | 414 | 38,732 | 729 | ||||||||||||
Construction
|
25,141 | 89 | 24,572 | 173 | ||||||||||||
Residential Real Estate
|
449 | - | 449 | - | ||||||||||||
Other Consumer
|
2,374 | 13 | 2,191 | 17 | ||||||||||||
Total Impaired Loans
|
$ | 83,501 | $ | 695 | $ | 83,317 | $ | 1,428 |
Impaired Loans
|
||||||||||||
At December 31, 2010
|
||||||||||||
Unpaid
|
||||||||||||
Recorded
|
Principal
|
Related
|
||||||||||
Investment
|
Balance
|
Allowance
|
||||||||||
(In thousands)
|
||||||||||||
Impaired loans with no related allowance recorded:
|
||||||||||||
Commercial
|
$ | 22,376 | $ | 35,027 | $ | - | ||||||
Commercial Real Estate
|
44,071 | 67,905 | - | |||||||||
Construction
|
19,308 | 36,244 | - | |||||||||
Residential Real Estate
|
449 | 451 | - | |||||||||
Other Consumer
|
2,042 | 3,077 | - | |||||||||
Impaired loans with an allowance recorded:
|
||||||||||||
Construction
|
3,700 | 3,700 | 1,365 | |||||||||
Total:
|
||||||||||||
Commercial
|
$ | 22,376 | $ | 35,027 | $ | - | ||||||
Commercial Real Estate
|
44,071 | 67,905 | - | |||||||||
Construction
|
23,008 | 39,944 | 1,365 | |||||||||
Residential Real Estate
|
449 | 451 | - | |||||||||
Other Consumer
|
2,042 | 3,077 | - |
December 31, 2010 | $ | 121,673 | ||
June 30, 2011 | $ | 121,673 |
At June 30,
|
At December 31,
|
|||||||||||||||
2011
|
2010
|
|||||||||||||||
(In thousands)
|
||||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Carrying
|
Accumulated
|
Carrying
|
Accumulated
|
|||||||||||||
Amount
|
Amortization
|
Amount
|
Amortization
|
|||||||||||||
Core Deposit Intangibles
|
$ | 56,808 | $ | (27,423 | ) | $ | 56,808 | $ | (24,719 | ) | ||||||
Merchant Draft Processing Intangible
|
10,300 | (8,109 | ) | 10,300 | (7,785 | ) | ||||||||||
Total Identifiable Intangible Assets
|
$ | 67,108 | $ | (35,532 | ) | $ | 67,108 | $ | (32,504 | ) |
At June 30, 2011
|
||||||||||||
Merchant
|
||||||||||||
Core
|
Draft
|
|||||||||||
Deposit
|
Processing
|
|||||||||||
Intangibles
|
Intangible
|
Total
|
||||||||||
(In thousands)
|
||||||||||||
Six months ended June 30, 2011 (actual)
|
$ | 2,704 | $ | 324 | $ | 3,028 | ||||||
Estimate for year ended December 31, 2011
|
5,351 | 624 | 5,975 | |||||||||
2012
|
4,868 | 500 | 5,368 | |||||||||
2013
|
4,304 | 400 | 4,704 | |||||||||
2014
|
3,946 | 324 | 4,270 | |||||||||
2015
|
3,594 | 262 | 3,856 | |||||||||
2016
|
3,292 | 212 | 3,504 |
At June 30, 2011
|
||||||||||||||||
Fair Value
|
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2 )
|
Significant
Unobservable
Inputs
(Level 3 )
|
|||||||||||||
(In thousands)
|
||||||||||||||||
U.S. Treasury securities
|
$ | 3,573 | $ | 3,573 | $ | - | $ | - | ||||||||
Securities of U.S. Government sponsored entities
|
166,864 | 166,864 | - | - | ||||||||||||
Municipal bonds:
|
||||||||||||||||
Federally Tax-exempt - California
|
84,983 | - | 84,983 | - | ||||||||||||
Federally Tax-exempt - 29 other states
|
175,534 | - | 175,534 | - | ||||||||||||
Taxable - California
|
2,030 | - | 2,030 | - | ||||||||||||
Taxable - 2 other states
|
5,814 | - | 5,814 | - | ||||||||||||
Residential mortgage-backed securities ("MBS"):
|
||||||||||||||||
Guaranteed by GNMA
|
39,970 | - | 39,970 | - | ||||||||||||
Issued by FNMA and FHLMC
|
65,209 | - | 65,209 | - | ||||||||||||
Residential collateralized mortgage obligations:
|
||||||||||||||||
Issued or guaranteed by FNMA, FHLMC, or GNMA
|
49,604 | - | 49,604 | - | ||||||||||||
All other
|
6,171 | - | 6,171 | - | ||||||||||||
Commercial mortgage-backed securities
|
4,831 | - | 4,831 | - | ||||||||||||
Asset-backed securities - government guaranteed student loans
|
8,024 | - | 8,024 | - | ||||||||||||
FHLMC and FNMA stock
|
4,230 | 4,230 | - | - | ||||||||||||
Corporate securities
|
83,906 | - | 83,906 | - | ||||||||||||
Other securities
|
4,335 | 2,385 | 1,950 | - | ||||||||||||
Total securities available for sale
|
$ | 705,078 | $ | 177,052 | $ | 528,026 | $ | - |
At December 31, 2010
|
||||||||||||||||
Fair Value
|
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2 )
|
Significant
Unobservable
Inputs
(Level 3 )
|
|||||||||||||
(In thousands)
|
||||||||||||||||
U.S. Treasury securities
|
$ | 3,542 | $ | 3,542 | $ | - | $ | - | ||||||||
Securities of U.S. Government sponsored entities
|
172,877 | 172,877 | - | - | ||||||||||||
Municipal bonds:
|
||||||||||||||||
Federally Tax-exempt - California
|
83,616 | - | 83,616 | - | ||||||||||||
Federally Tax-exempt - 29 other states
|
170,741 | - | 170,741 | - | ||||||||||||
Taxable - California
|
6,276 | - | 6,276 | - | ||||||||||||
Taxable - 1 other state
|
500 | - | 500 | - | ||||||||||||
Residential mortgage-backed securities ("MBS"):
|
||||||||||||||||
Guaranteed by GNMA
|
43,557 | - | 43,557 | - | ||||||||||||
Issued by FNMA and FHLMC
|
66,272 | - | 66,272 | - | ||||||||||||
Residential collateralized mortgage obligations:
|
||||||||||||||||
Issued or guaranteed by FNMA, FHLMC, or GNMA
|
18,010 | - | 18,010 | - | ||||||||||||
All other
|
7,593 | - | 7,593 | - | ||||||||||||
Commercial mortgage-backed securities
|
5,065 | - | 5,065 | - | ||||||||||||
Asset-backed securities - government guaranteed student loans
|
8,286 | - | 8,286 | - | ||||||||||||
FHLMC and FNMA stock
|
655 | 655 | - | - | ||||||||||||
Corporate securities
|
79,191 | - | 79,191 | - | ||||||||||||
Other securities
|
5,303 | 3,342 | 1,961 | - | ||||||||||||
Total securities available for sale
|
$ | 671,484 | $ | 180,416 | $ | 491,068 | $ | - |
At June 30, 2011
|
||||||||||||||||||||
Fair Value
|
Level 1
|
Level 2
|
Level 3
|
Total losses
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Non-covered other real estate owned (1)
|
$ | 5,632 | $ | - | $ | 5,632 | $ | - | $ | (623 | ) | |||||||||
Covered other real estate owned (2)
|
7,511 | - | 7,511 | - | (449 | ) | ||||||||||||||
Originated impaired loans (3)
|
5,352 | - | 5,352 | - | (1,475 | ) | ||||||||||||||
Total assets measured at fair value on a nonrecurring basis
|
$ | 18,495 | $ | - | $ | 18,495 | $ | - | $ | (2,547 | ) |
At December 31, 2010
|
||||||||||||||||||||
Fair Value
|
Level 1
|
Level 2
|
Level 3
|
Total losses
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Non-covered other real estate owned (1)
|
$ | 1,863 | $ | - | $ | 1,863 | $ | - | $ | (664 | ) | |||||||||
Originated impaired loans (3)
|
4,780 | - | 4,780 | - | (829 | ) | ||||||||||||||
Total assets measured at fair value on a nonrecurring basis
|
$ | 6,643 | $ | - | $ | 6,643 | $ | - | $ | (1,493 | ) |
At June 30, 2011
|
At December 31, 2010
|
|||||||||||||||
Carrying
Amount
|
Estimated
Fair Value
|
Carrying
Amount
|
Estimated
Fair Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Financial Assets
|
||||||||||||||||
Cash and due from banks
|
$ | 320,119 | $ | 320,119 | $ | 338,793 | $ | 338,793 | ||||||||
Money market assets
|
- | - | 392 | 392 | ||||||||||||
Investment securities held to maturity
|
669,452 | 687,326 | 580,728 | 594,711 | ||||||||||||
Loans
|
2,718,205 | 2,752,643 | 2,886,448 | 2,923,612 | ||||||||||||
Other assets - FDIC receivable
|
41,152 | 40,987 | 44,738 | 44,353 | ||||||||||||
Financial Liabilities
|
||||||||||||||||
Deposits
|
4,088,385 | 4,089,138 | 4,132,961 | 4,135,113 | ||||||||||||
Short-term borrowed funds
|
106,727 | 106,727 | 107,385 | 107,385 | ||||||||||||
Federal Home Loan Bank Advances
|
46,351 | 46,757 | 61,698 | 61,833 | ||||||||||||
Debt financing and notes payable
|
25,853 | 27,742 | 26,363 | 26,811 | ||||||||||||
Other liabilities - restricted performance share grants
|
1,506 | 1,506 | 2,259 | 2,259 |
At June 30,
2011
|
At December 31,
2010
|
|||||||
(In thousands)
|
||||||||
Senior fixed-rate note (1)
|
$ | 15,000 | $ | 15,000 | ||||
Subordinated fixed-rate note (2)
|
10,853 | 11,363 | ||||||
Total debt financing and notes payable - Parent
|
$ | 25,853 | $ | 26,363 |
(1)
|
Senior note, issued by Westamerica Bancorporation, originated in October 2003 and maturing October 31, 2013. Interest of 5.31% per annum is payable semiannually on April 30 and October 31, with original principal payment due at maturity.
|
(2)
|
Subordinated debt, assumed by Westamerica Bancorporation March 1, 2005, originated February 22, 2001. Par amount $10,000 thousand, interest of 10.2% per annum, payable semiannually. Matures February 22, 2031, redeemable February 22, 2011 at a premium and February 22, 2021 at par.
|
|
|
|||||||||||||||
For the three months ended
June 30,
|
For the six months ended
June 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(In thousands, except per share data)
|
(In thousands, except per share data)
|
|||||||||||||||
Net income applicable to common equity (numerator)
|
$ | 21,269 | $ | 23,561 | $ | 43,651 | $ | 47,137 | ||||||||
Basic earnings per common share
|
||||||||||||||||
Weighted average number of common shares outstanding - basic
(denominator)
|
28,771 | 29,207 | 28,895 | 29,217 | ||||||||||||
Basic earnings per common share
|
$ | 0.74 | $ | 0.81 | $ | 1.51 | $ | 1.61 | ||||||||
Diluted earnings per common share
|
||||||||||||||||
Weighted average number of common shares outstanding - basic
|
28,771 | 29,207 | 28,895 | 29,217 | ||||||||||||
Add exercise of options reduced by the number of shares that could
have been purchased with the proceeds of such exercise
|
152 | 361 | 178 | 365 | ||||||||||||
Weighted average number of common shares outstanding - diluted
(denominator)
|
28,923 | 29,568 | 29,073 | 29,582 | ||||||||||||
Diluted earnings per common share
|
$ | 0.74 | $ | 0.80 | $ | 1.50 | $ | 1.59 |
WESTAMERICA BANCORPORATION
|
||||||||||||||||
FINANCIAL SUMMARY
|
||||||||||||||||
Three months ended
|
Six months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(In thousands, except per share data)
|
||||||||||||||||
Net Interest Income (FTE)*
|
$ | 55,837 | $ | 56,573 | $ | 110,830 | $ | 113,602 | ||||||||
Provision for Loan Losses
|
2,800 | 2,800 | 5,600 | 5,600 | ||||||||||||
Noninterest Income
|
15,292 | 15,770 | 30,035 | 31,240 | ||||||||||||
Noninterest Expense:
|
||||||||||||||||
Settlements
|
2,100 | - | 2,100 | 23 | ||||||||||||
Other noninterest expense
|
32,209 | 32,095 | 63,532 | 64,103 | ||||||||||||
Total Noninterest Expense
|
34,309 | 32,095 | 65,632 | 64,126 | ||||||||||||
Income Before Income Taxes (FTE)*
|
34,020 | 37,448 | 69,633 | 75,116 | ||||||||||||
Income Tax Provision (FTE)*
|
12,751 | 13,887 | 25,982 | 27,979 | ||||||||||||
Net Income
|
$ | 21,269 | $ | 23,561 | $ | 43,651 | $ | 47,137 | ||||||||
Average Common Shares Outstanding
|
28,771 | 29,207 | 28,895 | 29,217 | ||||||||||||
Diluted Average Common Shares Outstanding
|
28,923 | 29,568 | 29,073 | 29,582 | ||||||||||||
Common Shares Outstanding at Period End
|
28,540 | 29,118 | 28,540 | 29,118 | ||||||||||||
As Reported:
|
||||||||||||||||
Basic Earnings Per Common Share
|
$ | 0.74 | $ | 0.81 | $ | 1.51 | $ | 1.61 | ||||||||
Diluted Earnings Per Common Share
|
0.74 | 0.80 | 1.50 | 1.59 | ||||||||||||
Return On Assets
|
1.73 | % | 2.00 | % | 1.78 | % | 1.99 | % | ||||||||
Return On Common Equity
|
15.64 | % | 18.24 | % | 16.14 | % | 18.54 | % | ||||||||
Net Interest Margin (FTE)*
|
5.38 | % | 5.62 | % | 5.37 | % | 5.61 | % | ||||||||
Net Loan Losses to Average Gross Originated Loans
|
0.83 | % | 0.64 | % | 0.83 | % | 0.65 | % | ||||||||
Efficiency Ratio**
|
48.2 | % | 44.4 | % | 46.6 | % | 44.3 | % | ||||||||
Average Balances:
|
||||||||||||||||
Total Assets
|
$ | 4,927,849 | $ | 4,731,270 | $ | 4,934,387 | $ | 4,771,872 | ||||||||
Total Earning Assets
|
4,156,226 | 4,033,831 | 4,154,676 | 4,072,374 | ||||||||||||
Originated Loans
|
1,978,155 | 2,136,407 | 1,990,042 | 2,150,857 | ||||||||||||
Purchased Covered Loans
|
644,555 | 788,108 | 659,597 | 809,515 | ||||||||||||
Purchased Non-covered Loans
|
178,384 | - | 185,870 | - | ||||||||||||
Total Deposits
|
4,143,749 | 3,895,671 | 4,141,288 | 3,925,321 | ||||||||||||
Shareholders' Equity
|
545,637 | 518,128 | 545,421 | 512,796 | ||||||||||||
Balances at Period End:
|
||||||||||||||||
Total Assets
|
$ | 4,876,731 | $ | 4,727,086 | ||||||||||||
Total Earning Assets
|
4,125,743 | 4,007,989 | ||||||||||||||
Originated Loans
|
1,963,642 | 2,124,570 | ||||||||||||||
Purchased Covered Loans
|
622,727 | 763,619 | ||||||||||||||
Purchased Non-covered Loans
|
164,844 | - | ||||||||||||||
Total Deposits
|
4,088,385 | 3,890,560 | ||||||||||||||
Shareholders' Equity
|
549,340 | 527,681 | ||||||||||||||
Financial Ratios at Period End:
|
||||||||||||||||
Allowance for Loan Losses to Originated Loans
|
1.68 | % | 1.87 | % | ||||||||||||
Book Value Per Common Share
|
$ | 19.25 | $ | 18.12 | ||||||||||||
Equity to Assets
|
11.26 | % | 11.16 | % | ||||||||||||
Total Capital to Risk Adjusted Assets
|
15.72 | % | 15.72 | % | ||||||||||||
Dividends Paid Per Common Share
|
$ | 0.36 | $ | 0.36 | $ | 0.72 | $ | 0.72 | ||||||||
Common Dividend Payout Ratio
|
49 | % | 45 | % | 48 | % | 45 | % |
Three months ended
|
Six months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(In thousands, except per share data)
|
||||||||||||||||
Net interest income (FTE)
|
$ | 55,837 | $ | 56,573 | $ | 110,830 | $ | 113,602 | ||||||||
Provision for loan losses
|
(2,800 | ) | (2,800 | ) | (5,600 | ) | (5,600 | ) | ||||||||
Noninterest income
|
15,292 | 15,770 | 30,035 | 31,240 | ||||||||||||
Noninterest expense
|
(34,309 | ) | (32,095 | ) | (65,632 | ) | (64,126 | ) | ||||||||
Income before taxes (FTE)
|
34,020 | 37,448 | 69,633 | 75,116 | ||||||||||||
Income tax provision (FTE)
|
(12,751 | ) | (13,887 | ) | (25,982 | ) | (27,979 | ) | ||||||||
Net income
|
$ | 21,269 | $ | 23,561 | $ | 43,651 | $ | 47,137 | ||||||||
Average diluted common shares
|
28,923 | 29,568 | 29,073 | 29,582 | ||||||||||||
Diluted earnings per common share
|
$ | 0.74 | $ | 0.80 | $ | 1.50 | $ | 1.59 | ||||||||
Average total assets
|
$ | 4,927,849 | $ | 4,731,270 | $ | 4,934,387 | $ | 4,771,872 | ||||||||
Net income to average total assets (annualized)
|
1.73 | % | 2.00 | % | 1.78 | % | 1.99 | % | ||||||||
Net income to average common stockholders' equity (annualized)
|
15.64 | % | 18.24 | % | 16.14 | % | 18.54 | % |
Three months ended
|
Six months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
|
2011
|
2010
|
2011
|
2010
|
||||||||||||
(In thousands)
|
||||||||||||||||
Interest and fee income
|
$ | 53,088 | $ | 55,078 | $ | 105,582 | $ | 111,081 | ||||||||
Interest expense
|
(2,153 | ) | (3,145 | ) | (4,456 | ) | (6,679 | ) | ||||||||
FTE adjustment
|
4,902 | 4,640 | 9,704 | 9,200 | ||||||||||||
Net interest income (FTE)
|
$ | 55,837 | $ | 56,573 | $ | 110,830 | $ | 113,602 | ||||||||
Average earning assets
|
$ | 4,156,226 | $ | 4,033,831 | $ | 4,154,676 | $ | 4,072,374 | ||||||||
Net interest margin (FTE) (annualized)
|
5.38 | % | 5.62 | % | 5.37 | % | 5.61 | % |
Three months ended
|
Six months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
|
2011
|
2010
|
2011
|
2010
|
||||||||||||
Yield on earning assets (FTE)
|
5.59 | % | 5.93 | % | 5.59 | % | 5.94 | % | ||||||||
Rate paid on interest-bearing liabilities
|
0.30 | % | 0.46 | % | 0.31 | % | 0.48 | % | ||||||||
Net interest spread (FTE)
|
5.29 | % | 5.47 | % | 5.28 | % | 5.46 | % | ||||||||
Impact of noninterest bearing demand deposits
|
0.09 | % | 0.15 | % | 0.09 | % | 0.15 | % | ||||||||
Net interest margin (FTE)
|
5.38 | % | 5.62 | % | 5.37 | % | 5.61 | % | ||||||||
For the three months ended
|
||||||||||||
June 30, 2011
|
||||||||||||
Yields
|
||||||||||||
Interest
|
Earned/
|
|||||||||||
Average
|
Income/
|
Rates
|
||||||||||
Balance
|
Expense
|
Paid
|
||||||||||
(In thousands)
|
||||||||||||
Assets:
|
||||||||||||
Money market assets and funds sold
|
$ | 205 | $ | - | - | % | ||||||
Investment securities:
|
||||||||||||
Available for sale
|
||||||||||||
Taxable
|
467,322 | 2,914 | 2.49 | % | ||||||||
Tax-exempt (1)
|
271,889 | 4,242 | 6.24 | % | ||||||||
Held to maturity
|
||||||||||||
Taxable
|
139,411 | 1,309 | 3.76 | % | ||||||||
Tax-exempt (1)
|
476,305 | 7,405 | 6.22 | % | ||||||||
Loans:
|
||||||||||||
Commercial:
|
||||||||||||
Taxable
|
457,659 | 7,619 | 6.68 | % | ||||||||
Tax-exempt (1)
|
149,459 | 2,436 | 6.54 | % | ||||||||
Commercial real estate
|
1,222,393 | 20,017 | 6.57 | % | ||||||||
Real estate construction
|
67,323 | 771 | 4.59 | % | ||||||||
Real estate residential
|
319,323 | 3,171 | 3.97 | % | ||||||||
Consumer
|
584,937 | 8,106 | 5.56 | % | ||||||||
Total loans (1)
|
2,801,094 | 42,120 | 6.03 | % | ||||||||
Total Interest earning assets (1)
|
4,156,226 | $ | 57,990 | 5.59 | % | |||||||
Other assets
|
771,623 | |||||||||||
Total assets
|
$ | 4,927,849 | ||||||||||
Liabilities and shareholders' equity
|
||||||||||||
Deposits:
|
||||||||||||
Noninterest bearing demand
|
$ | 1,466,754 | $ | - | - | % | ||||||
Savings and interest-bearing transaction
|
1,815,513 | 647 | 0.14 | % | ||||||||
Time less than $100,000
|
318,235 | 548 | 0.69 | % | ||||||||
Time $100,000 or more
|
543,247 | 582 | 0.43 | % | ||||||||
Total interest-bearing deposits
|
2,676,995 | 1,777 | 0.27 | % | ||||||||
Short-term borrowed funds
|
103,177 | 47 | 0.18 | % | ||||||||
Federal Home Loan Bank advances
|
48,248 | 128 | 1.05 | % | ||||||||
Debt financing and notes payable
|
26,007 | 201 | 3.08 | % | ||||||||
Total interest-bearing liabilities
|
2,854,427 | $ | 2,153 | 0.30 | % | |||||||
Other liabilities
|
61,031 | |||||||||||
Shareholders' equity
|
545,637 | |||||||||||
Total liabilities and shareholders' equity
|
$ | 4,927,849 | ||||||||||
Net interest spread (1) (2)
|
5.29 | % | ||||||||||
Net interest income and interest margin (1) (3)
|
$ | 55,837 | 5.38 | % |
For the three months ended
|
||||||||||||
June 30, 2010
|
||||||||||||
Yields
|
||||||||||||
Interest
|
Earned/
|
|||||||||||
Average
|
Income/
|
Rates
|
||||||||||
Balance
|
Expense
|
Paid
|
||||||||||
(In thousands)
|
||||||||||||
Assets:
|
||||||||||||
Money market assets and funds sold
|
$ | 703 | $ | - | - | % | ||||||
Investment securities:
|
||||||||||||
Available for sale
|
||||||||||||
Taxable
|
266,180 | 2,156 | 3.24 | % | ||||||||
Tax-exempt (1)
|
169,137 | 2,800 | 6.62 | % | ||||||||
Held to maturity
|
||||||||||||
Taxable
|
186,367 | 2,043 | 4.38 | % | ||||||||
Tax-exempt (1)
|
486,929 | 7,636 | 6.27 | % | ||||||||
Loans:
|
||||||||||||
Commercial:
|
||||||||||||
Taxable
|
545,959 | 8,511 | 6.25 | % | ||||||||
Tax-exempt (1)
|
170,341 | 2,948 | 6.94 | % | ||||||||
Commercial real estate
|
1,224,442 | 20,240 | 6.63 | % | ||||||||
Real estate construction
|
57,514 | 843 | 5.88 | % | ||||||||
Real estate residential
|
358,887 | 4,016 | 4.48 | % | ||||||||
Consumer
|
567,372 | 8,525 | 6.03 | % | ||||||||
Total loans (1)
|
2,924,515 | 45,083 | 6.18 | % | ||||||||
Total earning assets (1)
|
4,033,831 | $ | 59,718 | 5.93 | % | |||||||
Other assets
|
697,439 | |||||||||||
|
||||||||||||
Total assets
|
$ | 4,731,270 | ||||||||||
Liabilities and shareholders' equity
|
||||||||||||
Deposits:
|
||||||||||||
Noninterest bearing demand
|
$ | 1,384,249 | $ | - | - | % | ||||||
Savings and interest-bearing
|
||||||||||||
transaction
|
1,619,319 | 877 | 0.22 | % | ||||||||
Time less than $100,000
|
350,890 | 449 | 0.51 | % | ||||||||
Time $100,000 or more
|
541,213 | 854 | 0.63 | % | ||||||||
Total interest-bearing deposits
|
2,511,422 | 2,180 | 0.35 | % | ||||||||
Short-term borrowed funds
|
206,313 | 491 | 0.94 | % | ||||||||
Federal Home Loan Bank advances
|
10,273 | 52 | 2.00 | % | ||||||||
Debt financing and notes payable
|
26,450 | 422 | 6.38 | % | ||||||||
Total interest-bearing liabilities
|
2,754,458 | $ | 3,145 | 0.46 | % | |||||||
Other liabilities
|
74,435 | |||||||||||
Shareholders' equity
|
518,128 | |||||||||||
Total liabilities and shareholders' equity
|
$ | 4,731,270 | ||||||||||
Net interest spread (1) (2)
|
5.47 | % | ||||||||||
Net interest income and interest margin (1) (3)
|
$ | 56,573 | 5.62 | % |
For the six months ended
|
||||||||||||
June 30, 2011
|
||||||||||||
Yields
|
||||||||||||
Interest
|
Earned/
|
|||||||||||
Average
|
Income/
|
Rates
|
||||||||||
Balance
|
Expense
|
Paid
|
||||||||||
(In thousands)
|
||||||||||||
Assets:
|
||||||||||||
Money market assets and funds sold
|
$ | 440 | $ | - | - | % | ||||||
Investment securities:
|
||||||||||||
Available for sale
|
||||||||||||
Taxable
|
451,994 | 5,379 | 2.38 | % | ||||||||
Tax-exempt (1)
|
270,490 | 8,455 | 6.25 | % | ||||||||
Held to maturity
|
||||||||||||
Taxable
|
131,087 | 2,601 | 3.97 | % | ||||||||
Tax-exempt (1)
|
465,156 | 14,498 | 6.23 | % | ||||||||
Loans:
|
||||||||||||
Commercial:
|
||||||||||||
Taxable
|
471,256 | 15,084 | 6.45 | % | ||||||||
Tax-exempt (1)
|
151,648 | 4,936 | 6.56 | % | ||||||||
Commercial real estate
|
1,236,921 | 39,945 | 6.51 | % | ||||||||
Real estate construction
|
71,197 | 1,717 | 4.86 | % | ||||||||
Real estate residential
|
323,296 | 6,527 | 4.04 | % | ||||||||
Consumer
|
581,191 | 16,144 | 5.60 | % | ||||||||
Total loans (1)
|
2,835,509 | 84,353 | 6.00 | % | ||||||||
Total earning assets (1)
|
4,154,676 | $ | 115,286 | 5.59 | % | |||||||
Other assets
|
779,711 | |||||||||||
Total assets
|
$ | 4,934,387 | ||||||||||
Liabilities and shareholders' equity
|
||||||||||||
Deposits:
|
||||||||||||
Noninterest bearing demand
|
$ | 1,464,925 | $ | - | - | % | ||||||
Savings and interest-bearing transaction
|
1,804,475 | 1,318 | 0.15 | % | ||||||||
Time less than $100,000
|
326,159 | 1,040 | 0.64 | % | ||||||||
Time $100,000 or more
|
545,729 | 1,309 | 0.48 | % | ||||||||
Total interest-bearing deposits
|
2,676,363 | 3,667 | 0.28 | % | ||||||||
Short-term borrowed funds
|
106,991 | 109 | 0.20 | % | ||||||||
Federal Home Loan Bank advances
|
52,983 | 279 | 1.05 | % | ||||||||
Debt financing and notes payable
|
26,161 | 401 | 3.06 | % | ||||||||
Total interest-bearing liabilities
|
2,862,498 | $ | 4,456 | 0.31 | % | |||||||
Other liabilities
|
61,543 | |||||||||||
Shareholders' equity
|
545,421 | |||||||||||
Total liabilities and shareholders' equity
|
$ | 4,934,387 | ||||||||||
Net interest spread (1) (2)
|
5.28 | % | ||||||||||
Net interest income and interest margin (1) (3)
|
$ | 110,830 | 5.37 | % |
For the six months ended
|
||||||||||||
June 30, 2010
|
||||||||||||
Interest
|
Rates
|
|||||||||||
Average
|
Income/
|
Earned/
|
||||||||||
Balance
|
Expense
|
Paid
|
||||||||||
(In thousands)
|
||||||||||||
Assets:
|
||||||||||||
Money market assets and funds sold
|
$ | 672 | $ | 1 | 0.30 | % | ||||||
Investment securities:
|
||||||||||||
Available for sale
|
||||||||||||
Taxable
|
256,874 | 4,307 | 3.35 | % | ||||||||
Tax-exempt (1)
|
162,846 | 5,404 | 6.64 | % | ||||||||
Held to maturity
|
||||||||||||
Taxable
|
196,350 | 4,321 | 4.40 | % | ||||||||
Tax-exempt (1)
|
495,260 | 15,541 | 6.28 | % | ||||||||
Loans:
|
||||||||||||
Commercial:
|
||||||||||||
Taxable
|
550,923 | 17,127 | 6.27 | % | ||||||||
Tax-exempt (1)
|
171,588 | 5,612 | 6.60 | % | ||||||||
Commercial real estate
|
1,231,354 | 40,534 | 6.64 | % | ||||||||
Real estate construction
|
62,459 | 1,769 | 5.71 | % | ||||||||
Real estate residential
|
367,523 | 8,360 | 4.55 | % | ||||||||
Consumer
|
576,525 | 17,305 | 6.05 | % | ||||||||
Total loans (1)
|
2,960,372 | 90,707 | 6.18 | % | ||||||||
Total earning assets (1)
|
4,072,374 | $ | 120,281 | 5.94 | % | |||||||
Other assets
|
699,498 | |||||||||||
|
||||||||||||
Total assets
|
$ | 4,771,872 | ||||||||||
Liabilities and shareholders' equity
|
||||||||||||
Deposits:
|
||||||||||||
Noninterest bearing demand
|
$ | 1,382,036 | $ | - | - | % | ||||||
Savings and interest-bearing
|
||||||||||||
transaction
|
1,624,137 | 1,833 | 0.23 | % | ||||||||
Time less than $100,000
|
370,611 | 1,066 | 0.58 | % | ||||||||
Time $100,000 or more
|
548,537 | 1,769 | 0.65 | % | ||||||||
Total interest-bearing deposits
|
2,543,285 | 4,668 | 0.37 | % | ||||||||
Short-term borrowed funds
|
212,898 | 1,028 | 0.96 | % | ||||||||
Federal Home Loan Bank advances
|
17,397 | 136 | 1.56 | % | ||||||||
Debt financing and notes payable
|
26,467 | 847 | 6.40 | % | ||||||||
Total interest-bearing liabilities
|
2,800,047 | $ | 6,679 | 0.48 | % | |||||||
Other liabilities
|
76,993 | |||||||||||
Shareholders' equity
|
512,796 | |||||||||||
Total liabilities and shareholders' equity
|
$ | 4,771,872 | ||||||||||
Net interest spread (1) (2)
|
5.46 | % | ||||||||||
Net interest income and interest margin (1) (3)
|
$ | 113,602 | 5.61 | % |
Three months ended June 30, 2011
|
||||||||||||
compared with
|
||||||||||||
Three months ended June 30, 2010
|
||||||||||||
Volume
|
Rate
|
Total
|
||||||||||
(In thousands)
|
||||||||||||
Interest and fee income:
|
||||||||||||
Money market assets and funds sold
|
$ | - | $ | - | $ | - | ||||||
Investment securities:
|
||||||||||||
Available for sale
|
||||||||||||
Taxable
|
1,340 | (582 | ) | 758 | ||||||||
Tax-exempt (1)
|
1,611 | (169 | ) | 1,442 | ||||||||
Held to maturity
|
||||||||||||
Taxable
|
(468 | ) | (266 | ) | (734 | ) | ||||||
Tax-exempt (1)
|
(166 | ) | (65 | ) | (231 | ) | ||||||
Loans:
|
||||||||||||
Commercial:
|
||||||||||||
Taxable
|
(1,442 | ) | 550 | (892 | ) | |||||||
Tax-exempt (1)
|
(347 | ) | (165 | ) | (512 | ) | ||||||
Commercial real estate
|
(34 | ) | (189 | ) | (223 | ) | ||||||
Real estate construction
|
130 | (202 | ) | (72 | ) | |||||||
Real estate residential
|
(418 | ) | (427 | ) | (845 | ) | ||||||
Consumer
|
258 | (677 | ) | (419 | ) | |||||||
Total loans (1)
|
(1,853 | ) | (1,110 | ) | (2,963 | ) | ||||||
Total increase (decrease) in interest and fee income (1)
|
464 | (2,192 | ) | (1,728 | ) | |||||||
Interest expense:
|
||||||||||||
Deposits:
|
||||||||||||
Savings and interest-bearing
|
||||||||||||
transaction
|
97 | (327 | ) | (230 | ) | |||||||
Time less than $100,000
|
(45 | ) | 144 | 99 | ||||||||
Time $100,000 or more
|
3 | (275 | ) | (272 | ) | |||||||
Total interest-bearing deposits
|
55 | (458 | ) | (403 | ) | |||||||
Short-term borrowed funds
|
(170 | ) | (274 | ) | (444 | ) | ||||||
Federal Home Loan Bank advances
|
111 | (35 | ) | 76 | ||||||||
Debt financing and notes payable
|
(7 | ) | (214 | ) | (221 | ) | ||||||
Total decrease in interest expense
|
(11 | ) | (981 | ) | (992 | ) | ||||||
Increase (decrease) in Net Interest Income (1)
|
$ | 475 | $ | (1,211 | ) | $ | (736 | ) |
Six months ended June 30, 2011
|
||||||||||||
compared with
|
||||||||||||
Six months ended June 30, 2010
|
||||||||||||
Volume
|
Rate
|
Total
|
||||||||||
(In thousands)
|
||||||||||||
Interest and fee income:
|
||||||||||||
Money market assets and funds sold
|
$ | - | $ | (1 | ) | $ | (1 | ) | ||||
Investment securities:
|
||||||||||||
Available for sale
|
||||||||||||
Taxable
|
2,570 | (1,498 | ) | 1,072 | ||||||||
Tax-exempt (1)
|
3,377 | (326 | ) | 3,051 | ||||||||
Held to maturity
|
||||||||||||
Taxable
|
(1,327 | ) | (393 | ) | (1,720 | ) | ||||||
Tax-exempt (1)
|
(939 | ) | (104 | ) | (1,043 | ) | ||||||
Loans:
|
||||||||||||
Commercial:
|
||||||||||||
Taxable
|
(2,538 | ) | 495 | (2,043 | ) | |||||||
Tax-exempt (1)
|
(649 | ) | (27 | ) | (676 | ) | ||||||
Commercial real estate
|
183 | (772 | ) | (589 | ) | |||||||
Real estate construction
|
230 | (282 | ) | (52 | ) | |||||||
Real estate residential
|
(948 | ) | (885 | ) | (1,833 | ) | ||||||
Consumer
|
139 | (1,300 | ) | (1,161 | ) | |||||||
Total loans (1)
|
(3,583 | ) | (2,771 | ) | (6,354 | ) | ||||||
Total increase (decrease) in interest and fee income (1)
|
98 | (5,093 | ) | (4,995 | ) | |||||||
Interest expense:
|
||||||||||||
Deposits:
|
||||||||||||
Savings and interest-bearing
|
||||||||||||
transaction
|
186 | (701 | ) | (515 | ) | |||||||
Time less than $100,000
|
(135 | ) | 109 | (26 | ) | |||||||
Time $100,000 or more
|
(9 | ) | (451 | ) | (460 | ) | ||||||
Total interest-bearing deposits
|
42 | (1,043 | ) | (1,001 | ) | |||||||
Short-term borrowed funds
|
(355 | ) | (564 | ) | (919 | ) | ||||||
Federal Home Loan Bank advances
|
576 | (433 | ) | 143 | ||||||||
Debt financing and notes payable
|
(10 | ) | (436 | ) | (446 | ) | ||||||
Total increase (decrease) in interest expense
|
253 | (2,476 | ) | (2,223 | ) | |||||||
Decrease in Net Interest Income (1)
|
$ | (155 | ) | $ | (2,617 | ) | $ | (2,772 | ) |
Three months ended
|
Six months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
|
2011
|
2010
|
2011
|
2010
|
||||||||||||
|
(In thousands)
|
|||||||||||||||
Service charges on deposit accounts
|
$ | 7,577 | $ | 8,629 | $ | 15,098 | $ | 17,371 | ||||||||
Merchant processing services
|
2,391 | 2,176 | 4,562 | 4,397 | ||||||||||||
Debit card
|
1,283 | 1,245 | 2,484 | 2,419 | ||||||||||||
ATM processing fees
|
997 | 1,021 | 1,932 | 1,912 | ||||||||||||
Other service fees
|
721 | 600 | 1,411 | 1,235 | ||||||||||||
Trust fees
|
482 | 448 | 975 | 829 | ||||||||||||
Check sale income
|
212 | 224 | 432 | 454 | ||||||||||||
Safe deposit rental
|
168 | 164 | 337 | 326 | ||||||||||||
Financial services commissions
|
117 | 223 | 146 | 372 | ||||||||||||
Other
|
1,344 | 1,040 | 2,658 | 1,925 | ||||||||||||
Total
|
$ | 15,292 | $ | 15,770 | $ | 30,035 | $ | 31,240 |
Three months ended
|
Six months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Salaries and related benefits
|
$ | 14,913 | $ | 15,476 | $ | 29,988 | $ | 31,368 | ||||||||
Occupancy
|
4,050 | 3,822 | 8,075 | 7,599 | ||||||||||||
Outsourced data processing services
|
2,122 | 2,202 | 4,578 | 4,442 | ||||||||||||
Settlements
|
2,100 | - | 2,100 | 23 | ||||||||||||
Amortization of identifiable intangibles
|
1,480 | 1,540 | 3,028 | 3,138 | ||||||||||||
Professional fees
|
1,453 | 867 | 2,303 | 1,530 | ||||||||||||
Equipment
|
1,038 | 1,116 | 1,971 | 2,167 | ||||||||||||
OREO expense
|
990 | 314 | 1,135 | 464 | ||||||||||||
Courier service
|
852 | 903 | 1,695 | 1,810 | ||||||||||||
FDIC insurance assessments
|
740 | 1,260 | 1,960 | 2,580 | ||||||||||||
Loan expense
|
544 | 475 | 938 | 893 | ||||||||||||
Telephone
|
428 | 406 | 863 | 795 | ||||||||||||
Postage
|
363 | 454 | 731 | 929 | ||||||||||||
Operational losses
|
341 | 158 | 589 | 378 | ||||||||||||
Stationery and supplies
|
323 | 330 | 646 | 680 | ||||||||||||
In-house meetings
|
178 | 184 | 361 | 359 | ||||||||||||
Customer checks
|
167 | 162 | 343 | 333 | ||||||||||||
Advertising and public relations
|
161 | 266 | 332 | 476 | ||||||||||||
Correspondent service charges
|
32 | 136 | 62 | 238 | ||||||||||||
Other noninterest expense
|
2,034 | 2,024 | 3,934 | 3,924 | ||||||||||||
Total
|
$ | 34,309 | $ | 32,095 | $ | 65,632 | $ | 64,126 | ||||||||
Average full time equivalent staff
|
987 | 1,018 | 994 | 1,025 | ||||||||||||
Noninterest expense to revenues (FTE)
|
48.23 | % | 44.37 | % | 46.59 | % | 44.27 | % |
·
|
The Bank maintains a Loan Review Department which reports directly to the Board of Directors. The Loan Review Department performs independent evaluations of loans and assigns credit risk grades to evaluated loans using grading standards employed by bank regulatory agencies. Those loans judged to carry higher risk attributes are referred to as “classified loans.” Classified loans receive elevated management attention to maximize collection.
|
·
|
The Bank maintains two loan administration offices whose sole responsibility is to manage and collect classified loans.
|
First Tier Loss Coverage
|
$ | 269,000 | ||
Less: Recognized credit risk discount
|
161,203 | |||
Exposure to under-estimated risk within First Tier
|
107,797 | |||
Bank loss-sharing percentage
|
20 percent
|
|||
First Tier risk to Bank, pre-tax
|
$ | 21,559 | ||
First Tier risk to Bank, after-tax
|
$ | 12,494 |
At June 30,
|
At December 31,
|
|||||||||||||||
2011
|
2010
|
|||||||||||||||
(In thousands)
|
||||||||||||||||
Originated Loans
|
Originated Loans
|
|||||||||||||||
Allocation of the
|
as Percent of Total
|
Allocation of the
|
as Percent of Total
|
|||||||||||||
Allowance Balance
|
Originated Loans
|
Allowance Balance
|
Originated Loans
|
|||||||||||||
Commercial
|
$ | 8,501 | 22 | % | $ | 9,878 | 23 | % | ||||||||
Commercial real estate
|
10,274 | 38 | % | 9,607 | 38 | % | ||||||||||
Real estate construction
|
4,064 | 1 | % | 3,559 | 1 | % | ||||||||||
Real estate residential
|
466 | 15 | % | 617 | 15 | % | ||||||||||
Consumer
|
3,669 | 24 | % | 6,982 | 23 | % | ||||||||||
Unallocated portion
|
8,727 | -- | 7,686 | -- | ||||||||||||
Total
|
$ | 35,701 | 100 | % | $ | 38,329 | 100 | % |
Minimum
|
Well-capitalized
|
|||||||||||||||||||
At June 30,
|
At December 31,
|
Regulatory
|
by Regulatory
|
|||||||||||||||||
2011
|
2010
|
2010
|
Requirement
|
Definition
|
||||||||||||||||
Tier I Capital
|
14.58 | % | 14.42 | % | 14.21 | % | 4.00 | % | 6.00 | % | ||||||||||
Total Capital
|
15.88 | % | 15.72 | % | 15.50 | % | 8.00 | % | 10.00 | % | ||||||||||
Leverage ratio
|
8.57 | % | 8.53 | % | 8.44 | % | 4.00 | % | 5.00 | % |
Minimum
|
Well-capitalized
|
|||||||||||||||||||
At June 30,
|
At December 31,
|
Regulatory
|
by Regulatory
|
|||||||||||||||||
2011
|
2010
|
2010
|
Requirement
|
Definition
|
||||||||||||||||
Tier I Capital
|
14.23 | % | 13.90 | % | 13.87 | % | 4.00 | % | 6.00 | % | ||||||||||
Total Capital
|
15.75 | % | 15.38 | % | 15.33 | % | 8.00 | % | 10.00 | % | ||||||||||
Leverage ratio
|
8.32 | % | 8.17 | % | 8.19 | % | 4.00 | % | 5.00 | % |
Period
|
(a)
Total Number of
Shares Purchased |
(b)
Average Price
Paid per Share |
(c)
Total Number
of Shares
Purchased as Part of
Publicly Announced
Plans or Programs*
|
(d)
Maximum Number
of Shares that May
Yet Be Purchased
Under the Plans
or Programs
|
(In thousands, except per share data)
|
||||
|
||||
April 1
through
April 30
|
71
|
$50.27
|
71
|
1,557
|
May 1
through
May 31
|
128
|
49.80
|
128
|
1,429
|
June 1
through
June 30
|
202
|
48.07
|
202
|
1,227
|
Total
|
401
|
$49.01
|
401
|
1,227
|
/s/ David L. Payne | |
David L. Payne | |
Chairman, President and Chief Executive Officer | |
Date: August 2, 2011 |
/s/ John "Robert" Thorson | |
John “Robert” Thorson | |
Senior Vice President and Chief Financial Officer | |
Date: August 2, 2011 |
/s/ David L. Payne | |
David L. Payne | |
Chairman, President and Chief Executive Officer | |
Date: August 2, 2011 |
/s/ John "Robert" Thorson | |
John “Robert” Thorson | |
Senior Vice President and Chief Financial Officer | |
Date: August 2, 2011 |
Note 8 - Commitments and Contingent Liabilities (Detail) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2011
|
Dec. 31, 2010
|
---|---|---|
Unfunded Loan Commitments | $ 385,199 | $ 422,677 |
FDIC Indemnification Of Legal Costs, Rate | 80.00% | |
Financial Standby Letter of Credit [Member]
|
||
Letters of Credit Outstanding, Amount | 25,643 | 25,458 |
Standby Letters of Credit [Member]
|
||
Letters of Credit Outstanding, Amount | $ 2,954 | $ 3,351 |
Consolidated Balance Sheets (unaudited) (Parentheticals) (USD $)
In Thousands |
Jun. 30, 2011
|
Dec. 31, 2010
|
---|---|---|
Investment securities held to maturity, fair value (in Dollars) | $ 687,326 | $ 594,711 |
Common stock, shares authorized | 150,000 | 150,000 |
Common stock, shares issued | 28,540 | 29,090 |
Common stock, shares outstanding | 28,540 | 29,090 |
Consolidated Statements of Income (unaudited) (USD $)
In Thousands, except Per Share data |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2011
|
Jun. 30, 2010
|
Jun. 30, 2011
|
Jun. 30, 2010
|
|
Interest and Fee Income: | ||||
Loans | $ 41,272 | $ 44,060 | $ 82,635 | $ 88,762 |
Money market assets and funds sold | 1 | |||
Investment securities available for sale | 5,684 | 4,026 | 10,902 | 7,921 |
Investment securities held to maturity | 6,132 | 6,992 | 12,045 | 14,397 |
Total Interest and Fee Income | 53,088 | 55,078 | 105,582 | 111,081 |
Interest Expense: | ||||
Deposits | 1,777 | 2,180 | 3,667 | 4,668 |
Short-term borrowed funds | 47 | 491 | 109 | 1,028 |
Federal Home Loan Bank advances | 128 | 52 | 279 | 136 |
Debt financing and notes payable | 201 | 422 | 401 | 847 |
Total Interest Expense | 2,153 | 3,145 | 4,456 | 6,679 |
Net Interest Income | 50,935 | 51,933 | 101,126 | 104,402 |
Provision for Loan Losses | 2,800 | 2,800 | 5,600 | 5,600 |
Net Interest Income After Provision For Loan Losses | 48,135 | 49,133 | 95,526 | 98,802 |
Noninterest Income: | ||||
Service charges on deposit accounts | 7,577 | 8,629 | 15,098 | 17,371 |
Merchant processing services | 2,391 | 2,176 | 4,562 | 4,397 |
Debit card fees | 1,283 | 1,245 | 2,484 | 2,419 |
ATM processing fees | 997 | 1,021 | 1,932 | 1,912 |
Trust fees | 482 | 448 | 975 | 829 |
Financial services commissions | 117 | 223 | 146 | 372 |
Other | 2,445 | 2,028 | 4,838 | 3,940 |
Total Noninterest Income | 15,292 | 15,770 | 30,035 | 31,240 |
Noninterest Expense: | ||||
Salaries and related benefits | 14,913 | 15,476 | 29,988 | 31,368 |
Occupancy | 4,050 | 3,822 | 8,075 | 7,599 |
Outsourced data processing services | 2,122 | 2,202 | 4,578 | 4,442 |
Settlements | 2,100 | 2,100 | 23 | |
Amortization of identifiable intangibles | 1,480 | 1,540 | 3,028 | 3,138 |
Professional fees | 1,453 | 867 | 2,303 | 1,530 |
Furniture and equipment | 1,038 | 1,116 | 1,971 | 2,167 |
Courier service | 852 | 903 | 1,695 | 1,810 |
FDIC insurance assessments | 740 | 1,260 | 1,960 | 2,580 |
Other | 5,561 | 4,909 | 9,934 | 9,469 |
Total Noninterest Expense | 34,309 | 32,095 | 65,632 | 64,126 |
Income Before Income Taxes | 29,118 | 32,808 | 59,929 | 65,916 |
Provision for income taxes | 7,849 | 9,247 | 16,278 | 18,779 |
Net Income | $ 21,269 | $ 23,561 | $ 43,651 | $ 47,137 |
Average Common Shares Outstanding (in Shares) | 28,771 | 29,207 | 28,895 | 29,217 |
Diluted Average Common Shares Outstanding (in Shares) | 28,923 | 29,568 | 29,073 | 29,582 |
Per Common Share Data: | ||||
Basic earnings (in Dollars per share) | $ 0.74 | $ 0.81 | $ 1.51 | $ 1.61 |
Diluted earnings (in Dollars per share) | $ 0.74 | $ 0.80 | $ 1.50 | $ 1.59 |
Dividends paid (in Dollars per share) | $ 0.36 | $ 0.36 | $ 0.72 | $ 0.72 |
Note 9 - Fair Value Measurements (Detail) - Assets measured at fair value on a nonrecurring basis (USD $)
In Thousands |
Jun. 30, 2011
|
Dec. 31, 2010
|
||||||||
---|---|---|---|---|---|---|---|---|---|---|
Fair Value | $ 18,495 | $ 6,643 | ||||||||
Total losses | (2,547) | (1,493) | ||||||||
Non Covered Other Real Estate Owned [Member]
|
||||||||||
Fair Value | 5,632 | [1] | 1,863 | [1] | ||||||
Total losses | (623) | (664) | ||||||||
Non Covered Other Real Estate Owned [Member] | Fair Value, Inputs, Level 2 [Member]
|
||||||||||
Fair Value | 5,632 | [1] | 1,863 | [1] | ||||||
Covered Other Real Estate Owned [Member]
|
||||||||||
Fair Value | 7,511 | [2] | ||||||||
Total losses | (449) | |||||||||
Covered Other Real Estate Owned [Member] | Fair Value, Inputs, Level 2 [Member]
|
||||||||||
Fair Value | 7,511 | [2] | ||||||||
Originated Impaired Loans [Member]
|
||||||||||
Fair Value | 5,352 | [3] | 4,780 | [3] | ||||||
Total losses | (1,475) | (829) | ||||||||
Originated Impaired Loans [Member] | Fair Value, Inputs, Level 2 [Member]
|
||||||||||
Fair Value | 5,352 | [3] | 4,780 | [3] | ||||||
Fair Value, Inputs, Level 2 [Member]
|
||||||||||
Fair Value | $ 18,495 | $ 6,643 | ||||||||
|
Note 9 - Fair Value Measurements (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2011
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Fair Value, Assets Measured on Recurring Basis [Table Text Block] |
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Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Table Text Block] |
|
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Fair Value, by Balance Sheet Grouping [Table Text Block] |
|
Document And Entity Information
|
6 Months Ended | |
---|---|---|
Jun. 30, 2011
|
Jul. 25, 2011
|
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | WESTAMERICA BANCORPORATION | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 28,523,000 | |
Amendment Flag | false | |
Entity Central Index Key | 0000311094 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Large Accelerated Filer | |
Entity Well-known Seasoned Issuer | Yes | |
Document Period End Date | Jun. 30, 2011 | |
Document Fiscal Year Focus | 2011 | |
Document Fiscal Period Focus | Q2 |
Note 7 - Goodwill and Identifiable Intangible Assets (Detail) - Schedule of gross carrying amount of identifiable intangible assets and accumulated amortization (USD $)
In Thousands |
Jun. 30, 2011
|
Dec. 31, 2010
|
---|---|---|
Identifiable intangibles, Gross Carrying Amount | $ 67,108 | $ 67,108 |
Identifiable intangibles, Accumulated Amortization | (35,532) | (32,504) |
Core Deposits [Member]
|
||
Identifiable intangibles, Gross Carrying Amount | 56,808 | 56,808 |
Identifiable intangibles, Accumulated Amortization | (27,423) | (24,719) |
Mechant Draft Processing [Member]
|
||
Identifiable intangibles, Gross Carrying Amount | 10,300 | 10,300 |
Identifiable intangibles, Accumulated Amortization | $ (8,109) | $ (7,785) |
Note 3 - Acquisition (Detail) (USD $)
In Thousands, unless otherwise specified |
0 Months Ended |
---|---|
Aug. 20, 2010
|
|
Number Of Branches Operated By Acquired Entity | 3 |
Discount Applied To Acquired Assets | $ 43,000 |
Deposit Acquisition Premium Paid | 5,008 |
Business Combination, Bargain Purchase, Gain Recognized, Amount | $ 178 |
Note 7 - Goodwill and Identifiable Intangible Assets (Detail) - Schedule of carrying values of goodwill (USD $)
In Thousands |
Jun. 30, 2011
|
Dec. 31, 2010
|
---|---|---|
December 31, 2010 | $ 121,673 | $ 121,673 |
June 30, 2011 | $ 121,673 | $ 121,673 |
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Note 6 - Concentration of Credit Risk
|
6 Months Ended |
---|---|
Jun. 30, 2011
|
|
Concentration Risk Disclosure [Text Block] |
Note
6: Concentration of Credit Risk
The
Company’s business activity is with customers in
Northern and Central California. The loan portfolio is well
diversified within the Company’s geographic market,
although the Company has significant credit arrangements that
are secured by real estate collateral. In addition to real
estate loans outstanding as disclosed in Note 5, the Company
had loan commitments and standby letters of credit related to
real estate loans of $10,025 thousand and $13,048 thousand at
June 30, 2011 and December 31, 2010, respectively. The
Company requires collateral on all real estate loans with
loan-to-value ratios generally no greater than 75% on
commercial real estate loans and no greater than 80% on
residential real estate loans at origination.
|
Note 3 - Acquisition (Detail) - Statement of Net Assets Acquired (at fair value) (USD $)
In Thousands |
Aug. 20, 2010
|
---|---|
Assets | |
Other real estate owned | $ 2,916 |
Core deposit intangible | 5,270 |
Other assets | 2,065 |
Total Assets | 315,083 |
Liabilities | |
Other liabilities | 470 |
Total Liabilities | 314,905 |
Net assets acquired | 178 |
Deposits [Member]
|
|
Liabilities | |
Financial Liabilities | 252,563 |
Federal Home Loan Bank Advances [Member]
|
|
Liabilities | |
Financial Liabilities | 61,872 |
Cash And Due From Banks [Member]
|
|
Assets | |
Financial Assets | 57,895 |
Money Market Assets [Member]
|
|
Assets | |
Financial Assets | 26,050 |
Securities (Assets) [Member]
|
|
Assets | |
Financial Assets | 7,223 |
Loans Receivable [Member]
|
|
Assets | |
Financial Assets | $ 213,664 |
Note 5 - Loans and Allowance for Credit Losses (Detail) - Loans by delinquency and nonaccrual status (USD $)
In Thousands |
Jun. 30, 2011
|
Dec. 31, 2010
|
---|---|---|
Total | $ 2,751,213 | $ 2,922,084 |
Purchased Covered Loans [Member] | Commercial Portfolio Segment [Member]
|
||
30-89 Days Past Due and Accruing | 2,720 | 12,692 |
Total Past Due and Accruing | 2,720 | 12,692 |
Current and Accruing | 118,879 | 144,307 |
Nonaccrual | 10,524 | 11,986 |
Total | 132,123 | 168,985 |
Purchased Non Covered Loans [Member] | Commercial Portfolio Segment [Member]
|
||
30-89 Days Past Due and Accruing | 23 | 1,089 |
Total Past Due and Accruing | 23 | 1,089 |
Current and Accruing | 15,107 | 13,969 |
Nonaccrual | 285 | 362 |
Total | 15,415 | 15,420 |
Commercial Portfolio Segment [Member]
|
||
Total | 576,571 | 658,588 |
Commercial Portfolio Segment [Member] | Originated Loans [Member]
|
||
30-89 Days Past Due and Accruing | 6,254 | 7,274 |
Total Past Due and Accruing | 6,254 | 7,274 |
Current and Accruing | 420,791 | 458,061 |
Nonaccrual | 1,988 | 8,848 |
Total | 429,033 | 474,183 |
Purchased Covered Loans [Member] | Commercial Real Estate Portfolio Segment [Member]
|
||
30-89 Days Past Due and Accruing | 26,102 | 12,413 |
Total Past Due and Accruing | 26,102 | 12,413 |
Current and Accruing | 343,498 | 355,518 |
Nonaccrual | 7,568 | 22,751 |
Total | 377,168 | 390,682 |
Purchased Non Covered Loans [Member] | Commercial Real Estate Portfolio Segment [Member]
|
||
30-89 Days Past Due and Accruing | 3,324 | 2,860 |
Total Past Due and Accruing | 3,324 | 2,860 |
Current and Accruing | 74,739 | 93,384 |
Nonaccrual | 23,329 | 26,644 |
Total | 101,392 | 122,888 |
Commercial Real Estate Portfolio Segment [Member]
|
||
Total | 1,213,371 | 1,270,710 |
Commercial Real Estate Portfolio Segment [Member] | Originated Loans [Member]
|
||
30-89 Days Past Due and Accruing | 14,466 | 14,037 |
Total Past Due and Accruing | 14,466 | 14,037 |
Current and Accruing | 713,627 | 737,167 |
Nonaccrual | 6,718 | 5,936 |
Total | 734,811 | 757,140 |
Purchased Covered Loans [Member] | Construction Portfolio Segment [Member]
|
||
30-89 Days Past Due and Accruing | 305 | 415 |
Total Past Due and Accruing | 305 | 415 |
Current and Accruing | 8,578 | 17,508 |
Nonaccrual | 8,823 | 10,457 |
Total | 17,706 | 28,380 |
Purchased Non Covered Loans [Member] | Construction Portfolio Segment [Member]
|
||
Current and Accruing | 7,563 | 13,390 |
Nonaccrual | 7,282 | 8,230 |
Total | 14,845 | 21,620 |
Construction Portfolio Segment [Member]
|
||
Total | 58,249 | 76,145 |
Construction Portfolio Segment [Member] | Originated Loans [Member]
|
||
30-89 Days Past Due and Accruing | 4,022 | |
Total Past Due and Accruing | 4,022 | |
Current and Accruing | 14,559 | 18,073 |
Nonaccrual | 11,139 | 4,050 |
Total | 25,698 | 26,145 |
Purchased Covered Loans [Member] | Residential Portfolio Segment [Member]
|
||
30-89 Days Past Due and Accruing | 128 | |
Total Past Due and Accruing | 128 | |
Current and Accruing | 13,724 | 16,568 |
Nonaccrual | 138 | 1,678 |
Total | 13,862 | 18,374 |
Purchased Non Covered Loans [Member] | Residential Portfolio Segment [Member]
|
||
30-89 Days Past Due and Accruing | 562 | 3,336 |
Total Past Due and Accruing | 562 | 3,336 |
Current and Accruing | 5,408 | 3,408 |
Nonaccrual | 311 | 311 |
Total | 6,281 | 7,055 |
Residential Portfolio Segment [Member]
|
||
Total | 313,914 | 335,625 |
Residential Portfolio Segment [Member] | Originated Loans [Member]
|
||
30-89 Days Past Due and Accruing | 3,899 | 2,552 |
Total Past Due and Accruing | 3,899 | 2,552 |
Current and Accruing | 289,019 | 305,709 |
Nonaccrual | 853 | 1,935 |
Total | 293,771 | 310,196 |
Indirect Automobile Portfolio Segment [Member] | Originated Loans [Member]
|
||
30-89 Days Past Due and Accruing | 4,447 | 6,382 |
Past Due 90 Days or More and Accruing | 522 | 647 |
Total Past Due and Accruing | 4,969 | 7,029 |
Current and Accruing | 412,165 | 392,784 |
Total | 417,134 | 399,813 |
Purchased Covered Loans [Member] | Other Consumer Portfolio Segment [Member]
|
||
30-89 Days Past Due and Accruing | 940 | 2,200 |
Past Due 90 Days or More and Accruing | 472 | 355 |
Total Past Due and Accruing | 1,412 | 2,555 |
Current and Accruing | 79,918 | 83,723 |
Nonaccrual | 538 | 273 |
Total | 81,868 | 86,551 |
Purchased Non Covered Loans [Member] | Other Consumer Portfolio Segment [Member]
|
||
30-89 Days Past Due and Accruing | 1,896 | 1,503 |
Past Due 90 Days or More and Accruing | 159 | 1 |
Total Past Due and Accruing | 2,055 | 1,504 |
Current and Accruing | 22,612 | 27,468 |
Nonaccrual | 2,244 | 3,616 |
Total | 26,911 | 32,588 |
Other Consumer Portfolio Segment [Member] | Originated Loans [Member]
|
||
30-89 Days Past Due and Accruing | 354 | 488 |
Past Due 90 Days or More and Accruing | 33 | 119 |
Total Past Due and Accruing | 387 | 607 |
Current and Accruing | 62,591 | 61,358 |
Nonaccrual | 217 | 99 |
Total | 63,195 | 62,064 |
Originated Loans [Member]
|
||
30-89 Days Past Due and Accruing | 29,420 | 34,755 |
Past Due 90 Days or More and Accruing | 555 | 766 |
Total Past Due and Accruing | 29,975 | 35,521 |
Current and Accruing | 1,912,752 | 1,973,152 |
Nonaccrual | 20,915 | 20,868 |
Total | 1,963,642 | 2,029,541 |
Purchased Covered Loans [Member]
|
||
30-89 Days Past Due and Accruing | 30,067 | 27,848 |
Past Due 90 Days or More and Accruing | 472 | 355 |
Total Past Due and Accruing | 30,539 | 28,203 |
Current and Accruing | 564,597 | 617,624 |
Nonaccrual | 27,591 | 47,145 |
Total | 622,727 | 692,972 |
Purchased Non Covered Loans [Member]
|
||
30-89 Days Past Due and Accruing | 5,805 | 8,788 |
Past Due 90 Days or More and Accruing | 159 | 1 |
Total Past Due and Accruing | 5,964 | 8,789 |
Current and Accruing | 125,429 | 151,619 |
Nonaccrual | 33,451 | 39,163 |
Total | $ 164,844 | $ 199,571 |
Note 5 - Loans and Allowance for Credit Losses (Detail) - Reconciliation of impaired purchased non-covered loans receivable acquired (USD $)
In Thousands |
Aug. 20, 2010
|
---|---|
Contractually required payments receivable (including interest) | $ 70,882 |
Nonaccretable difference | (33,140) |
Cash flows expected to be collected | 37,742 |
Fair value of loans acquired | $ 37,742 |
Note 11 - Earnings Per Common Share (Tables)
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2011
|
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Schedule of Earnings Per Share Reconciliation [Table Text Block] |
|
Note 11 - Earnings Per Common Share
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2011
|
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Earnings Per Share [Text Block] |
Note
11: Earnings Per Common Share
The
table below shows earnings per common share and diluted
earnings per common share. Basic earnings per common share
are computed by dividing net income applicable to common
equity by the average number of common shares outstanding
during the period. Diluted earnings per common share are
computed by dividing net income applicable to common equity
by the average number of common shares outstanding during the
period plus the impact of common stock equivalents.
For
the three months ended June 30, 2011, stock options and
warrants to purchase 1,149 thousand and 247 thousand shares
of common stock, respectively, were outstanding but not
included in the computation of diluted net income per share
because the option exercise price exceeded the fair value of
the stock such that their inclusion would have had an
anti-dilutive effect. For the six months ended June 30, 2011,
stock options and warrants to purchase 962 thousand and 247
thousand shares of common stock, respectively, were
outstanding but not included in the computation of diluted
net income per share because their inclusion would have had
an anti-dilutive effect. For the three months and six months
ended June 30, 2010, options to purchase 287 thousand and 290
thousand shares of common stock, respectively, were
outstanding but not included in the computation of diluted
net income per share because their inclusion would have had
an anti-dilutive effect.
|
Note 2 - Accounting Policies
|
6 Months Ended |
---|---|
Jun. 30, 2011
|
|
Significant Accounting Policies [Text Block] | Note 2: Accounting Policies
The
Company’s accounting policies are discussed in Note 1
to the audited consolidated financial statements included in
the Company’s Annual Report on Form 10-K for the year
ended December 31, 2010. Certain amounts in prior
periods have been reclassified to conform to the current
presentation.
Nonmarketable
Equity Securities. Nonmarketable equity securities
include securities that are not publicly traded and
securities acquired for various purposes, such as to meet
regulatory requirements (for example, Federal Home Loan Bank
and Federal Reserve stock). These securities are
accounted for under the cost method and are included in other
assets. The Company reviews those assets accounted
for under the cost method at least quarterly for possible
declines in value that are considered “other than
temporary”. The Company’s review
typically includes an analysis of the facts and circumstances
of each investment, the expectations for the
investment’s cash flows and capital needs, the
viability of its business model and exit
strategy. The asset value is reduced when a
decline in value is considered to be other than
temporary. The Company recognizes the estimated
loss as a loss from equity investments in noninterest
income.
Certain
accounting policies underlying the preparation of these
financial statements require Management to make estimates and
judgments. These estimates and judgments may significantly
affect reported amounts of assets and liabilities, revenues
and expenses, and disclosures of contingent assets and
liabilities. Management exercises judgment to estimate the
appropriate level of the allowance for credit losses and the
acquisition date fair value of purchased loans, which are
discussed in the Company’s accounting policies.
As
described in Note 3 below, Westamerica Bank
(“Bank”) acquired assets and assumed liabilities
of the former Sonoma Valley Bank (“Sonoma”) on
August 20, 2010. The acquired assets and assumed liabilities
were measured at estimated fair values, as required by Financial
Accounting Standards Board (FASB) Accounting
Standards Codification (ASC) 805, Business
Combinations. Management made significant estimates and
exercised significant judgment in accounting for the
acquisition. Management judgmentally measured loan fair
values based on loan file reviews (including borrower
financial statements and tax returns), appraised collateral
values, expected cash flows, and historical loss factors.
Repossessed loan collateral was primarily valued based upon
appraised collateral values. The Bank also recorded an
identifiable intangible asset representing the value of the
core deposit customer base of Sonoma based on
Management’s evaluation of the cost of such deposits
relative to alternative funding sources. In determining the
value of the identifiable intangible asset, Management used
significant estimates including average lives of depository
accounts, future interest rate levels, the cost of servicing
various depository products, and other significant estimates.
Management used quoted market prices to determine the fair
value of investment securities and FHLB advances.
The
acquired assets of Sonoma include loans; such loans are not
indemnified by the Federal Deposit Insurance Corporation
(FDIC). However, on February 6, 2009, the Bank
acquired loans in a business combination that are indemnified
by the FDIC, as described in Note 2 to the audited
consolidated financial statements included in the
Company’s Annual Report on Form 10-K for the year ended
December 31, 2010. Pursuant to acquisition
accounting, the loans in each business combination were
measured at their estimated fair value at the respective
acquisition date. This method of measuring the
carrying value of purchased loans differs from loans
originated by the Company, and as such, the Company
identifies purchased loans not indemnified by the FDIC as
“Purchased Non-covered Loans” and purchased loans
indemnified by the FDIC as “Purchased Covered
Loans.”
Loans
originated by the Company are measured at the principal
amount outstanding, net of unearned discount and unamortized
deferred fees and costs. These loans are
identified as “Originated Loans.”
Recently
Adopted Accounting Standards
FASB
Accounting Standards Update (ASU) 2011-02, A
Creditor’s Determination of Whether a Restructuring is
a Troubled Debt Restructuring, was issued April 2011
providing additional guidance for creditors in determining
whether a creditor has granted a concession and whether a
debtor is experiencing financial difficulties for purposes of
determining whether a restructuring constitutes a troubled
debt restructuring. The provisions of this
standard are effective for the first interim or annual period
beginning on or after June 15, 2011 with early adoption
permissible, and should be applied retrospectively to the
beginning of the annual period of adoption. The Company early
adopted the provisions of this standard effective April 1,
2011 with retrospective application to January 1, 2011. One
troubled debt restructuring was identified as a result of the
adoption of this Update as disclosed in Note 5.
FASB ASU
2011-01, Deferral of the
Effective Date of Disclosures about Troubled Debt
Restructurings in Update No. 2010-20 (Topic 310), was
issued January 2011 deferring the new disclosure requirements
(paragraphs 310-10-50-31 through 50-34 of the FASB Accounting
Standards Codification) about troubled debt
restructurings to be concurrent with the effective date of
the guidance for determining what constitutes a troubled debt
restructuring, as presented in proposed Accounting Standards
Update, Receivables
(Topic 310): Clarifications to Accounting for Troubled Debt
Restructurings by Creditors. As a result of the
issuance of Update 2011-02, the provisions of Update 2011-01
are effective for the first interim or annual period
beginning on or after June 15, 2011 or July 1, 2011 for the
Company, and should be applied retrospectively to the
beginning of the annual period of adoption. The Company
adopted the Update concurrent with ASU 2011-02.
Recently
Issued Accounting Standards
FASB ASU
2011-03, Reconsideration
of Effective Control for Repurchase Agreements, was
issued April 2011 addressing the accounting for repurchase
agreements and other agreements that both entitle and
obligate a transferor to repurchase or redeem financial
assets before their maturity. The amendments
remove from the assessment of effective control (1) the
criterion requiring the transferor to have the ability to
repurchase or redeem the financial assets on substantially
the agreed terms, even in the event of default by the
transferee, and (2) the collateral maintenance implementation
guidance related to that criterion. The provisions
of this Update are effective for the first interim or annual
period beginning on or after December 15, 2011, and should be
applied prospectively to transactions or modifications of
existing transactions that occur on or after the effective
date. Management does not expect the adoption of
the Update to have a material effect on the Company’s
financial statements at the date of adoption.
FASB ASU
2011-04, Amendments to
Achieve Common Fair Value Measurement and Disclosure
Requirements in U.S. GAAP and IFRSs, was issued May
2011 as a result of the FASB and International Accounting
Standards Board’s (IASB) goal to develop common
requirements for measuring fair value and for disclosing
information about fair value measurements in accordance with
U.S. generally accepted accounting principles and
International Financial Reporting Standards. The provisions
of this Update are effective during the interim or annual
periods beginning after December 15, 2011, and are to be
applied prospectively. Management does not expect
the adoption of the Update to have a material effect on the
Company’s financial statements at the date of
adoption.
FASB ASU
2011-05, Presentation of
Comprehensive Income, was issued June 2011 requiring
that all nonowner changes in stockholders’ equity be
presented either in a single continuous statement of
comprehensive income or in two separate but consecutive
statements. This Update also requires that
reclassification adjustments for items that are reclassified
from other comprehensive income to net income be presented on
the face of the financial statements. The
provisions of this Update are effective for fiscal years, and
interim periods within those years, beginning after December
15, 2011, and are to be applied
retrospectively. Early adoption is
permitted. Management does not expect the adoption
of the Update to have a material effect on the
Company’s financial statements at the date of
adoption.
|
Note 5 - Loans and Allowance for Credit Losses (Detail) - Schedule of loans receivable at carrying amount (USD $)
In Thousands |
Jun. 30, 2011
Purchased Covered Loans [Member]
Commercial Portfolio Segment [Member]
|
Dec. 31, 2010
Purchased Covered Loans [Member]
Commercial Portfolio Segment [Member]
|
Jun. 30, 2011
Purchased Non Covered Loans [Member]
Commercial Portfolio Segment [Member]
|
Dec. 31, 2010
Purchased Non Covered Loans [Member]
Commercial Portfolio Segment [Member]
|
Jun. 30, 2011
Commercial Portfolio Segment [Member]
Originated Loans [Member]
|
Dec. 31, 2010
Commercial Portfolio Segment [Member]
Originated Loans [Member]
|
Jun. 30, 2011
Purchased Covered Loans [Member]
Commercial Real Estate Portfolio Segment [Member]
|
Dec. 31, 2010
Purchased Covered Loans [Member]
Commercial Real Estate Portfolio Segment [Member]
|
Jun. 30, 2011
Purchased Non Covered Loans [Member]
Commercial Real Estate Portfolio Segment [Member]
|
Dec. 31, 2010
Purchased Non Covered Loans [Member]
Commercial Real Estate Portfolio Segment [Member]
|
Jun. 30, 2011
Commercial Real Estate Portfolio Segment [Member]
Originated Loans [Member]
|
Dec. 31, 2010
Commercial Real Estate Portfolio Segment [Member]
Originated Loans [Member]
|
Jun. 30, 2011
Purchased Covered Loans [Member]
Construction Portfolio Segment [Member]
|
Dec. 31, 2010
Purchased Covered Loans [Member]
Construction Portfolio Segment [Member]
|
Jun. 30, 2011
Purchased Non Covered Loans [Member]
Construction Portfolio Segment [Member]
|
Dec. 31, 2010
Purchased Non Covered Loans [Member]
Construction Portfolio Segment [Member]
|
Jun. 30, 2011
Construction Portfolio Segment [Member]
Originated Loans [Member]
|
Dec. 31, 2010
Construction Portfolio Segment [Member]
Originated Loans [Member]
|
Jun. 30, 2011
Purchased Covered Loans [Member]
Residential Portfolio Segment [Member]
|
Dec. 31, 2010
Purchased Covered Loans [Member]
Residential Portfolio Segment [Member]
|
Jun. 30, 2011
Purchased Non Covered Loans [Member]
Residential Portfolio Segment [Member]
|
Dec. 31, 2010
Purchased Non Covered Loans [Member]
Residential Portfolio Segment [Member]
|
Jun. 30, 2011
Residential Portfolio Segment [Member]
Originated Loans [Member]
|
Dec. 31, 2010
Residential Portfolio Segment [Member]
Originated Loans [Member]
|
Jun. 30, 2011
Purchased Covered Loans [Member]
Consumer Portfolio Segment [Member]
|
Dec. 31, 2010
Purchased Covered Loans [Member]
Consumer Portfolio Segment [Member]
|
Jun. 30, 2011
Purchased Non Covered Loans [Member]
Consumer Portfolio Segment [Member]
|
Dec. 31, 2010
Purchased Non Covered Loans [Member]
Consumer Portfolio Segment [Member]
|
Jun. 30, 2011
Consumer Portfolio Segment [Member]
Originated Loans [Member]
|
Dec. 31, 2010
Consumer Portfolio Segment [Member]
Originated Loans [Member]
|
Jun. 30, 2011
Originated Loans [Member]
|
Dec. 31, 2010
Originated Loans [Member]
|
Jun. 30, 2011
Purchased Covered Loans [Member]
|
Dec. 31, 2010
Purchased Covered Loans [Member]
|
Jun. 30, 2011
Purchased Non Covered Loans [Member]
|
Dec. 31, 2010
Purchased Non Covered Loans [Member]
|
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Originated Loans | $ 429,033 | $ 474,183 | $ 734,811 | $ 757,140 | $ 25,698 | $ 26,145 | $ 293,771 | $ 310,196 | $ 480,329 | $ 461,877 | $ 1,963,642 | $ 2,029,541 | ||||||||||||||||||||||||
Impaired Purchased Loans | 6,593 | 10,014 | 1,294 | 415 | 12,507 | 14,079 | 15,876 | 22,988 | 5,997 | 9,073 | 4,001 | 6,514 | 138 | 138 | 311 | 311 | 244 | 252 | 459 | 1,790 | 25,479 | 33,556 | 21,941 | 32,018 | ||||||||||||
Non Impaired Purchased Loans | 125,530 | 158,971 | 14,121 | 15,005 | 364,661 | 376,603 | 85,516 | 99,900 | 11,709 | 19,307 | 10,844 | 15,106 | 13,724 | 18,236 | 5,970 | 6,744 | 81,624 | 86,299 | 26,452 | 30,798 | 597,248 | 659,416 | 142,903 | 167,553 | ||||||||||||
Total Purchased Covered Loans | 132,123 | 168,985 | 377,168 | 390,682 | 17,706 | 28,380 | 13,862 | 18,374 | 81,868 | 86,551 | 622,727 | 692,972 | ||||||||||||||||||||||||
Total Purchased Non-covered Loans | $ 15,415 | $ 15,420 | $ 101,392 | $ 122,888 | $ 14,845 | $ 21,620 | $ 6,281 | $ 7,055 | $ 26,911 | $ 32,588 | $ 164,844 | $ 199,571 |
Note 8 - Commitments and Contingent Liabilities
|
6 Months Ended |
---|---|
Jun. 30, 2011
|
|
Commitments and Contingencies Disclosure [Text Block] |
Note
8: Commitments and Contingent Liabilities
Loan
commitments are agreements to lend to a customer provided
there is no violation of any condition established in the
agreement. Commitments generally have fixed expiration dates
or other termination clauses. Since many of the commitments
are expected to expire without being drawn upon, the total
commitment amounts do not necessarily represent future
funding requirements. Loan commitments are subject to the
Company’s normal credit policies and collateral
requirements. Unfunded loan commitments were $385,199
thousand and $422,677 thousand at June 30, 2011 and December
31, 2010, respectively. Standby letters of credit commit the
Company to make payments on behalf of customers when certain
specified future events occur. Standby letters of credit are
primarily issued to support customers’ short-term
financing requirements and must meet the Company’s
normal credit policies and collateral requirements. Standby
letters of credit outstanding totaled $25,643 thousand and
$25,458 thousand at June 30, 2011 and December 31, 2010,
respectively. The Company also had commitments for commercial
and similar letters of credit of $2,954 thousand and $3,351
thousand at June 30, 2011 and December 31, 2010,
respectively.
Due
to the nature of its business, the Company is subject to
various threatened or filed legal cases resulting from loan
collection efforts, transaction processing for deposit
accounts including the order of posting transactions and the
assessment of overdraft fees, and employment practices. Like
many banks, the Bank is a defendant in a lawsuit alleging it
improperly assessed overdraft fees on deposit accounts due to
the order in which it processed payments against such deposit
accounts. The Bank has reached a preliminary mediated
settlement of this matter which is subject to court approval.
The Company establishes a liability for contingent litigation
losses for any legal matter when payments associated with the
claims become probable and the costs can be reasonably
estimated. The Bank has accrued a liability for the
preliminary mediated settlement. Legal costs related to
covered assets are eighty percent indemnified under
loss-sharing agreements with the FDIC if certain conditions
are met.
|
Note 3 - Acquisition (Tables)
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6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2011
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Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] |
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Business Combination Bargain Purchase Gain Recognized [Table Text Block] |
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Note 9 - Fair Value Measurements
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Jun. 30, 2011
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Fair Value Disclosures [Text Block] |
Note
9: Fair Value Measurements
The
Company uses fair value measurements to record fair value
adjustments to certain assets and liabilities and to
determine fair value disclosures. Available for
sale investment securities are recorded at fair value on a
recurring basis. Additionally, from time to time,
the Company may be required to record at fair value other
assets on a nonrecurring basis, such as certain loans held
for investment and other assets. These
nonrecurring fair value adjustments typically involve the
lower-of-cost-or-fair value accounting or impairment or
write-down of individual assets.
In
accordance with the Fair Value Measurement and Disclosure
topic of the Codification, the Company bases its fair values
on the price that would be received to sell an asset or paid
to transfer a liability in the principal market or most
advantageous market for an asset or liability in an orderly
transaction between market participants on the measurement
date. A fair value measurement reflects all of the
assumptions that market participants would use in pricing the
asset or liability, including assumptions about the risk
inherent in a particular valuation technique, the effect of a
restriction on the sale or use of an asset, and the risk of
nonperformance.
The
Company groups its assets and liabilities measured at fair
value into a three-level hierarchy, based on the markets in
which the assets and liabilities are traded and the
reliability of the assumptions used to determine fair value.
These levels are:
Level
1 – Valuation is based upon quoted prices for identical
instruments traded in active exchange markets, such as the
New York Stock Exchange. Level 1 includes U.S.
Treasury and federal agency securities, which are traded by
dealers or brokers in active markets. Valuations
are obtained from readily available pricing sources for
market transactions involving identical assets or
liabilities.
Level
2 – Valuation is based upon quoted prices for similar
instruments in active markets, quoted prices for identical or
similar instruments in markets that are not active, and
model-based valuation techniques for which all significant
assumptions are observable in the market. Level 2 includes
mortgage-backed securities, municipal bonds and residential
collateralized mortgage obligations as well as other real
estate owned and impaired loans collateralized by real
property where the fair value is generally based upon
independent market prices or appraised values of the
collateral.
Level
3 – Valuation is generated from model-based techniques
that use significant assumptions not observable in the
market. These unobservable assumptions reflect the
Company’s estimates of assumptions that market
participants would use in pricing the asset or liability.
Valuation techniques include use of option pricing models,
discounted cash flow models and similar techniques. Level 3
includes those impaired loans collateralized by business
assets where the expected cash flow has been used in
determining the fair value.
Assets
Recorded at Fair Value on a Recurring Basis
The
table below presents assets measured at fair value on a
recurring basis.
There
were no significant transfers in or out of Levels 1 and 2 for
the six months ended June 30, 2011.
Assets
Recorded at Fair Value on a Nonrecurring Basis
The
Company may be required, from time to time, to measure
certain assets at fair value on a nonrecurring basis in
accordance with GAAP. These adjustments to fair value usually
result from application of lower-of-cost-or-market accounting
or write-downs of individual assets. For assets measured at
fair value on a nonrecurring basis that were still held in
the balance sheet at June 30, 2011 and December 31, 2010, the
following table provides the level of valuation assumptions
used to determine each adjustment and the carrying value of
the related assets at period end.
(1)
Represents the fair value of foreclosed real estate owned
that was measured at fair value subsequent to their initial
classification as foreclosed assets.
(2)
Represents the fair value of foreclosed real estate owned
that is covered by the Indemnification Agreement with the
FDIC where the real estate was written down subsequent to its
initial classification as foreclosed assets. Total losses are
reduced by the 80% indemnified loss percentage.
(3) Represents
carrying value of loans for which adjustments are
predominantly based on the appraised value of the collateral
and loans considered impaired under FASB ASC 310-10-35,
Subsequent Measurement of Receivables, where a specific
reserve has been established or a chargeoff has been
recorded.
Disclosures
about Fair Value of Financial Instruments
The
following section describes the valuation methodologies used
by the Company for estimating fair value of financial
instruments not recorded at fair value.
Cash and Due from
Banks The carrying amount of cash and
amounts due from banks approximate fair value due to the
relatively short period of time between their origination and
their expected realization.
Money Market
Assets The carrying amount of money market
assets approximate fair value due to the relatively short
period of time between their origination and their expected
realization.
Investment
Securities Held to Maturity The fair values of
investment securities were estimated using quoted prices as
described above for Level 1 and Level 2 valuation.
Loans Loans
were separated into two groups for valuation. Variable rate
loans, except for those described below, which reprice
frequently with changes in market rates were valued using
historical cost. Fixed rate loans and variable rate loans
that have reached their minimum contractual interest rates
were valued by discounting the future cash flows expected to
be received from the loans using current interest rates
charged on loans with similar characteristics. Additionally,
the allowance for loan losses of $33,008 thousand at June 30,
2011 and $35,636 thousand at December 31, 2010 and the fair
value discount due to credit default risk associated with
purchased covered and purchased non-covered loans of $55,527
thousand and $22,078 thousand, respectively at June 30, 2011
and $61,784 thousand and $32,382 thousand, respectively at
December 31, 2010 were applied against the estimated fair
values to recognize estimated future defaults of contractual
cash flows. The Company does not consider these values to be
a liquidation price for the loans.
FDIC
Receivable The fair value of the FDIC
receivable recorded in Other Assets was estimated by
discounting estimated future cash flows using current market
rates for financial instruments with similar
characteristics.
Deposit
Liabilities The carrying amount of checking
accounts, savings accounts and money market accounts
approximates fair value due to the relatively short period of
time between their origination and their expected
realization. The fair values of time deposits were
estimated by discounting estimated future cash flows related
to these financial instruments using current market rates for
financial instruments with similar characteristics.
Short-Term
Borrowed Funds The carrying amount of
securities sold under agreement to repurchase and other
short-term borrowed funds approximate fair value due to the
relatively short period of time between their origination and
their expected realization. The fair values of
term repurchase agreements were estimated by using
interpolated yields for financial instruments with similar
characteristics.
Federal Home Loan
Bank Advances The fair values of FHLB
advances were estimated by using interpolated yields for
financial instruments with similar characteristics.
Debt Financing
and Notes Payable The fair values of debt
financing and notes payable were estimated by using
interpolated yields for financial instruments with similar
characteristics.
Restricted
Performance Share Grants The fair value of liabilities
for unvested restricted performance share grants recorded in
Other Liabilities were estimated using quoted prices as
described above for Level 1 valuation.
The
table below is a summary of fair value estimates for
financial instruments, excluding financial instruments
recorded at fair value on a recurring basis. The values
assigned do not necessarily represent amounts which
ultimately may be realized. In addition, these values do not
give effect to discounts to fair value which may occur when
financial instruments are sold in larger
quantities. The carrying amounts in the following
table are recorded in the balance sheet under the indicated
captions.
The
Company has not included assets and liabilities that are not
financial instruments, such as goodwill, long-term
relationships with deposit, merchant processing and trust
customers, other purchased intangibles, premises and
equipment, deferred taxes and other assets and liabilities.
The total estimated fair values do not represent, and should
not be construed to represent, the underlying value of the
Company.
The
majority of the Company’s standby letters of credit and
other commitments to extend credit carry current market
interest rates if converted to loans. No premium or discount
was ascribed to these commitments because virtually all
funding would be at current market rates.
|
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