Westamerica Bancorporation (WABC) 8-K Westamerica Bancorporation Reports Fourth Quarter 2010 Results

Exhibit 99.1

FOR IMMEDIATE RELEASE
January 20, 2011

WESTAMERICA BANCORPORATION REPORTS
FOURTH QUARTER 2010 RESULTS

San Rafael, CA: Westamerica Bancorporation (NASDAQ: WABC), parent company of Westamerica Bank, today reported fourth quarter 2010 net income applicable to common equity of $23.7 million, or $0.81 diluted earnings per share (“EPS”), compared to $23.7 million, or $0.81 EPS in the prior quarter, and $23.3 million, or $0.79 EPS in the fourth quarter 2009. Fourth quarter 2010 net income applicable to common equity represents an 18 percent annualized return on average common equity.

“Westamerica’s net interest margin was 5.39 percent in the fourth quarter 2010. Yields on loans and investment securities are relatively low in the current interest rate environment, which has caused a reduction in asset yields. Our focus on checking and savings deposits delivered a 0.29 percent cost of funding our loans and securities, a much lower funding cost than our peers. We have worked diligently to operate efficiently in spite of cyclically higher problem loan workout costs and FDIC insurance assessments. From our total revenues of $72 million in the fourth quarter 2010, only $32 million was spent on operating expenses, delivering well over one-half of our revenue as pre-tax income for our shareholders,” said Chairman, President and CEO David Payne. “The credit quality of legacy Westamerica assets improved during the quarter as nonperforming assets declined $6 million to $33 million at December 31, 2010. Purchased nonperforming assets declined $12 million to $111 million at December 31, 2010, of which $69 million are indemnified by the FDIC under loss-sharing agreements. Common shareholders’ equity increased to $545 million at December 31, 2010 resulting in a total regulatory capital ratio of 15.5 percent,” Payne added.

Net interest income on a fully taxable equivalent basis (FTE) was $56.4 million for the fourth quarter 2010, compared to $56.7 million (FTE) for the prior quarter and $58.9 million (FTE) for the fourth quarter 2009. The fourth quarter 2010 annualized net interest margin was 5.39 percent (FTE), compared to 5.54 percent (FTE) for the prior quarter and 5.50 percent (FTE) for the fourth quarter 2009. The decline in net interest margin from the prior quarter is due to a decline in yields on loans and investment securities; current market yields are generally lower than yields on existing portfolios. The decline in net interest income in the fourth quarter 2010 compared to the fourth quarter 2009 is attributable to a lower net interest margin and lower levels of loans; loans have declined due to weak economic conditions and weak loan demand.

The provision for loan losses was $2.8 million for the fourth quarter 2010, unchanged from the prior quarter and down from $3.3 million for the fourth quarter 2009.

Noninterest income for the fourth quarter 2010 was $15.1 million, compared to $15.1 million in the prior quarter and $15.7 million the fourth quarter 2009. Service charges on deposit accounts were lower in both the fourth quarter 2010 and third quarter 2010 compared to the fourth quarter 2009 due to new overdraft regulations which were effective July 1, 2010.

Noninterest expense for the fourth quarter of 2010 totaled $31.5 million, unchanged from the prior quarter, and reduced from $32.8 million for the fourth quarter 2009. Westamerica continually manages its expense base as a general business practice in light of industry developments and economic conditions.

Non-performing originated assets totaled $33 million at December 31, 2010, reduced $6 million from September 30, 2010. Excluding repossessed loan collateral, nonperforming originated loans were $21.6 million compared to the allowance for loan losses of $35.6 million at December 31, 2010. Non-performing purchased loans indemnified by the Federal Deposit Insurance Corporation totaled $48 million at December 31, 2010 reduced from $56 million at September 30, 2010; such loans were measured at estimated fair value on the February 6, 2009 acquisition date. Nonperforming non-indemnified purchased loans totaled $39 million at December 31, 2010 compared to $38 million at September 30, 2010; such loans were measured at estimated fair value on the August 20, 2010 acquisition date.

Shareholders’ equity at December 31, 2010 was $545 million, increased from $541 million at September 30, 2010. Westamerica paid a regular quarterly dividend of $0.36 per common share in November 2010, totaling $10.5 million. At December 31, 2010, Westamerica Bancorporation’s total regulatory capital ratio was 15.5 percent and Westamerica Bank’s total regulatory capital ratio was 15.3 percent; both measurements exceed the “well-capitalized” level of ten percent under regulatory requirements.

Westamerica operates commercial banking offices throughout Northern and Central California. At December 31, 2010, Westamerica’s total assets and total loans outstanding were $4.9 billion and $2.9 billion, respectively.

Westamerica Bancorporation Web Address:www.westamerica.com

For additional information contact:

Westamerica Bancorporation
Robert A. Thorson — SVP & Chief Financial Officer
707-863-6840

FORWARD-LOOKING INFORMATION:

The following appears in accordance with the Private Securities Litigation Reform Act of 1995:

This press release may contain forward-looking statements about the Company, including descriptions of plans or objectives of its management for future operations, products, or services, and forecasts of its revenues, earnings or other measures of economic performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.”

Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors — many of which are beyond the Company’s control — could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. The Company’s most recent reports filed with the Securities and Exchange Commission, including the annual report for the year ended December 31, 2009 filed on Form 10-K and quarterly report for the quarter ended September 30, 2010 filed on Form 10-Q, describe some of these factors, including certain credit, market, operational, liquidity and interest rate risks associated with the Company’s business and operations. Other factors described in these reports include changes in business and economic conditions, competition, fiscal and monetary policies, disintermediation, legislation including the Dodd Frank Wall Street Reform and Consumer Protection Act of 2010, and the Sarbanes-Oxley Act of 2002, and mergers and acquisitions.

Forward-looking statements speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date forward looking statements are made.

#####

Public Information January 20, 2011

WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
December 31, 2010

1. Net Income Summary.

		(dollars in thousands except per-share amounts)
								Q4’10 /						Q4’10 /									12/31’10YTD /
		Q4’10			Q4’09			Q4’09			Q3’10			Q3’10			12/31’10YTD			12/31’09YTD			12/31’09YTD
1	Net Interest Income (Fully Taxable Equivalent)	$	56,413		$	58,949			-4.3	%	$	56,669			-0.5	%	$	226,683		$	242,218			-6.4	%
2	Provision for Loan Losses		2,800			3,300			-15.2	%		2,800			0.0	%		11,200			10,500			6.7	%
3	Noninterest Income:
4	Gain on Acquisition		0			0			n/m			178			n/m			178			48,844			n/m
5	Other		15,142			15,696			-3.5	%		14,893			1.7	%		61,276			63,167			-3.0	%
6	Total Noninterest Income		15,142			15,696			-3.5	%		15,071			0.5	%		61,454			112,011			n/m
7	Noninterest Expense		31,512			32,836			-4.0	%		31,508			0.0	%		127,147			140,776			-9.7	%
8	Income Before Taxes (FTE)		37,243			38,509			-3.3	%		37,432			-0.5	%		149,790			202,953			n/m
9	Income Tax Provision (FTE)		13,512			14,348			-5.8	%		13,723			-1.5	%		55,213			77,527			n/m
10	Net Income		23,731			24,161			-1.8	%		23,709			0.1	%		94,577			125,426			n/m
11	Preferred Stock Dividends and Discount Accretion		0			812			n/m			0			n/m			0			3,963			n/m
12	Net Income Applicable to Common Equity	$	23,731		$	23,349			1.6	%	$	23,709			0.1	%	$	94,577		$	121,463			n/m
13	Average Common Shares Outstanding		29,103			29,205			-0.3	%		29,127			-0.1	%		29,166			29,105			0.2	%
14	Diluted Average Common Shares Outstanding		29,341			29,471			-0.4	%		29,385			-0.1	%		29,471			29,353			0.4	%
15	Operating Ratios:
16	Basic Earnings Per Common Share	$	0.82		$	0.80			2.5	%	$	0.81			0.3	%	$	3.24		$	4.17			n/m
17	Diluted Earnings Per Common Share		0.81			0.79			2.5	%		0.81			0.0	%		3.21			4.14			n/m
18	Return On Assets (annualized)		1.87	%		1.85	%					1.95	%					1.95	%		2.39	%
19	Return On Common Equity (annualized)		17.5	%		18.8	%					17.9	%					18.1	%		25.8	%
20	Net Interest Margin (FTE) (annualized)		5.39	%		5.50	%					5.54	%					5.54	%		5.42	%
21	Efficiency Ratio (FTE)		44.0	%		44.0	%					43.9	%					44.1	%		39.7	%
22	Dividends Paid Per Common Share	$	0.36		$	0.35			2.9	%	$	0.36			0.0	%	$	1.44		$	1.41			2.1	%
23	Common Dividend Payout Ratio		44	%		44	%					44	%					45	%		34	%

2. Net Interest Income.

		(dollars in thousands)
								Q4’10 /						Q4’10 /									12/31’10YTD /
		Q4’10			Q4’09			Q4’09			Q3’10			Q3’10			12/31’10YTD			12/31’09YTD			12/31’09YTD
1	Interest and Fee Income (FTE)	$	59,477		$	63,250			-6.0	%	$	59,765			-0.5	%	$	239,523		$	261,598			-8.4	%
2	Interest Expense		3,064			4,301			-28.8	%		3,096			-1.0	%		12,840			19,380			-33.7	%
3	Net Interest Income (FTE)	$	56,413		$	58,949			-4.3	%	$	56,669			-0.5	%	$	226,683		$	242,218			-6.4	%
4	Average Earning Assets	$	4,164,013		$	4,268,101			-2.4	%	$	4,068,561			2.3	%	$	4,094,511		$	4,472,660			-8.5	%
5	Average Interest-Bearing Liabilities		2,964,999			2,985,494			-0.7	%		2,830,355			4.8	%		2,849,262			3,136,144			-9.1	%
6	Yield on Earning Assets (FTE) (annualized)		5.68	%		5.90	%					5.84	%					5.85	%		5.85	%
7	Cost of Funds (annualized)		0.29	%		0.40	%					0.30	%					0.31	%		0.43	%
8	Net Interest Margin (FTE) (annualized)		5.39	%		5.50	%					5.54	%					5.54	%		5.42	%
9	Interest Expense/Interest-BearingLiabilities (annualized)		0.41	%		0.57	%					0.43	%					0.45	%		0.62	%
10	Net Interest Spread (FTE) (annualized)		5.27	%		5.33	%					5.41	%					5.40	%		5.23	%

3. Loans & Other Earning Assets.

		(average volume, dollars in thousands)
								Q4’10 /						Q4’10 /									12/31’10YTD /
		Q4’10			Q4’09			Q4’09			Q3’10			Q3’10			12/31’10YTD			12/31’09YTD			12/31’09YTD
1	Total Assets	$	5,032,157		$	5,007,341			0.5	%	$	4,835,357			4.1	%	$	4,853,480		$	5,086,637			-4.6	%
2	Total Earning Assets		4,164,013			4,268,101			-2.4	%		4,068,561			2.3	%		4,094,511			4,472,660			-8.5	%
3	Total Loans		2,958,095			3,124,583			-5.3	%		2,937,501			0.7	%		2,954,033			3,226,961			-8.5	%
4	Commercial Loans		744,830			848,704			-12.2	%		772,997			-3.6	%		771,834			894,747			-13.7	%
5	Commercial Real Estate Loans		1,283,836			1,265,086			1.5	%		1,234,475			4.0	%		1,245,369			1,283,114			-2.9	%
6	Consumer Loans		929,429			1,010,793			-8.0	%		930,029			-0.1	%		936,830			1,049,100			-10.7	%
7	Total Investment Securities		1,205,918			1,143,518			5.5	%		1,131,060			6.6	%		1,140,478			1,245,699			-8.4	%
8	Available For Sale (Market Value)		601,764			392,229			53.4	%		489,581			22.9	%		483,214			407,498			18.6	%
9	Held To Maturity		604,154			751,289			-19.6	%		641,479			-5.8	%		657,264			838,201			-21.6	%
10	HTM Unrealized Gain at Period-End		13,983			9,335			n/m			24,044			n/m			13,983			9,335			n/m
11	Loans / Deposits		71.1	%		76.7	%					73.8	%					73.9	%		79.3	%

1

Public Information January 20, 2011

WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
December 31, 2010

4. Deposits & Other Interest-Bearing Liabilities.

		(average volume, dollars in thousands)
								Q4’10 /						Q4’10 /									12/31’10YTD /
		Q4’10			Q4’09			Q4’09			Q3’10			Q3’10			12/31’10YTD			12/31’09YTD			12/31’09YTD
1	Total Deposits	$	4,159,497		$	4,074,105			2.1	%	$	3,981,437			4.5	%	$	3,998,490		$	4,068,388			-1.7	%
2	Noninterest Demand		1,468,098			1,425,867			3.0	%		1,417,638			3.6	%		1,412,702			1,354,534			4.3	%
3	Interest-Bearing Transaction		721,521			669,519			7.8	%		678,524			6.3	%		682,278			696,638			-2.1	%
4	Savings		1,063,554			979,973			8.5	%		993,934			7.0	%		994,604			951,457			4.5	%
5	Time greater than $100K		556,635			564,539			-1.4	%		549,459			1.3	%		550,810			607,642			-9.4	%
6	Time less than $100K		349,689			434,207			-19.5	%		341,882			2.3	%		358,096			458,117			-21.8	%
7	Total Short-Term Borrowings		181,349			225,011			-19.4	%		203,841			-11.0	%		202,663			316,306			-35.9	%
8	Fed Funds Purchased		0			0			n/m			0			n/m			0			107,732			n/m
9	Other Short-Term Funds		181,349			225,011			-19.4	%		203,841			-11.0	%		202,663			208,574			-2.8	%
10	Federal Home Loan Bank Advances		65,868			85,728			n/m			36,298			n/m			34,378			79,417			n/m
11	Long-Term Debt		26,383			26,517			-0.5	%		26,417			-0.1	%		26,433			26,567			-0.5	%
12	Shareholders’ Equity		537,204			514,497			4.4	%		525,630			2.2	%		522,183			524,324			-0.4	%
13	Demand Deposits / Total Deposits		35.3	%		35.0	%					35.6	%					35.3	%		33.3	%
14	Transaction & Savings Deposits / Total Deposits		78.2	%		75.5	%					77.6	%					77.3	%		73.8	%

5. Interest Yields Earned & Rates Paid.

		(dollars in thousands)
		Q4’10							Q3’10			Q4’09
		Average		Income/		Yield */			Yield*/			Average		Income/		Yield*/
		Volume		Expense		Rate			Rate			Volume		Expense		Rate
1	Interest & Fees Income Earned
2	Total Earning Assets (FTE)	$	4,164,013	$	59,477		5.68	%		5.84	%	$	4,268,101	$	63,250		5.90	%
3	Total Loans (FTE)		2,958,095		44,929		6.03	%		6.13	%		3,124,583		47,694		6.06	%
4	Commercial Loans (FTE)		744,830		12,021		6.40	%		6.29	%		848,704		12,498		5.84	%
5	Commercial Real Estate Loans		1,283,836		20,526		6.34	%		6.65	%		1,265,086		21,119		6.62	%
6	Consumer Loans		929,429		12,382		5.29	%		5.30	%		1,010,793		14,077		5.53	%
7	Total Investment Securities (FTE)		1,205,918		14,548		4.83	%		5.09	%		1,143,518		15,556		5.44	%
8	Interest Expense Paid
9	Total Earning Assets		4,164,013		3,064		0.29	%		0.30	%		4,268,101		4,301		0.40	%
10	Total Interest-Bearing Liabilities		2,964,999		3,064		0.41	%		0.43	%		2,985,494		4,301		0.57	%
11	Total Interest-Bearing Deposits		2,691,399		2,002		0.30	%		0.32	%		2,648,238		3,024		0.45	%
12	Interest-Bearing Transaction		721,521		233		0.13	%		0.13	%		669,519		238		0.14	%
13	Savings		1,063,554		585		0.22	%		0.27	%		979,973		803		0.33	%
14	Time less than $100K		349,689		345		0.39	%		0.41	%		434,207		845		0.77	%
15	Time greater than $100K		556,635		839		0.60	%		0.58	%		564,539		1,138		0.80	%
16	Total Short-Term Borrowings		181,349		453		0.98	%		0.98	%		225,011		560		0.98	%
17	Fed Funds Purchased		0		0		0.00	%		0.00	%		0		0		0.00	%
18	Other Short-Term Funds		181,349		453		0.98	%		0.98	%		225,011		560		0.98	%
19	Federal Home Loan Bank Advances		65,868		187		1.11	%		1.22	%		85,728		295		1.35	%
20	Long-Term Debt		26,383		422		6.40	%		6.43	%		26,517		422		6.36	%
21	Net Interest Income and Margin (FTE)			$	56,413		5.39	%		5.54	%			$	58,949		5.50	%

* Annualized

6. Noninterest Income.

		(dollars in thousands except per share amounts)
								Q4’10 /						Q4’10 /									12/31’10YTD /
		Q4’10			Q4’09			Q4’09			Q3’10			Q3’10			12/31’10YTD			12/31’09YTD			12/31’09YTD
1	Service Charges on Deposit Accounts	$	7,984		$	9,376			-14.8	%	$	8,162			-2.2	%	$	33,517		$	36,392			-7.9	%
2	Merchant Credit Card Income		2,427			2,250			7.9	%		2,234			8.6	%		9,057			9,068			-0.1	%
3	ATM Fees & Interchange		930			901			3.3	%		1,004			-7.4	%		3,848			3,693			4.2	%
4	Debit Card Fees		1,210			1,219			-0.8	%		1,259			-3.9	%		4,888			4,875			0.3	%
5	Financial Services Commissions		164			163			0.5	%		211			-22.5	%		747			583			28.2	%
6	Mortgage Banking Income		30			14			n/m			23			32.4	%		112			82			36.2	%
7	Trust Fees		447			373			19.9	%		429			4.4	%		1,705			1,429			19.3	%
8	Other Income		1,950			1,400			39.2	%		1,571			24.1	%		7,402			7,045			5.1	%
9	Sub-total		15,142			15,696			-3.5	%		14,893			1.7	%		61,276			63,167			-3.0	%
10	Gain on Acquisition		0			0			n/m			178			n/m			178			48,844			n/m
11	Total Noninterest Income	$	15,142		$	15,696			-3.5	%	$	15,071			0.5	%	$	61,454		$	112,011			n/m
12	Operating Ratios:
13	Total Revenue (FTE)	$	71,555		$	74,645			-4.1	%	$	71,740			-0.3	%	$	288,137		$	354,229			n/m
14	Noninterest Income / Revenue (FTE)		21.2	%		21.0	%					21.0	%					21.3	%		31.6	%
15	Service Charges / Avg. Deposits (annualized)		0.76	%		0.91	%					0.81	%					0.84	%		0.89	%
16	Total Revenue Per Avg. Common Share (annualized)	$	9.75		$	10.14			-3.8	%	$	9.77			-0.2	%	$	9.88		$	12.17			n/m

2

Public Information January 20, 2011

WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
December 31, 2010

7. Noninterest Expense.

		(dollars in thousands)
								Q4’10 /						Q4’10 /									12/31’10YTD /
		Q4’10			Q4’09			Q4’09			Q3’10			Q3’10			12/31’10YTD			12/31’09YTD			12/31’09YTD
1	Salaries & Benefits	$	14,899		$	15,170			-1.8	%	$	15,481			-3.8	%	$	61,748		$	65,391			-5.6	%
2	Occupancy		4,073			3,917			4.0	%		3,962			2.8	%		15,633			18,748			-16.6	%
3	Equipment		1,091			1,240			-12.0	%		1,067			2.3	%		4,325			5,859			-26.2	%
4	Outsourced Data Processing		2,328			2,260			3.0	%		2,187			6.5	%		8,957			9,000			-0.5	%
5	Courier		859			927			-7.4	%		826			3.9	%		3,495			3,808			-8.2	%
6	Postage		289			540			-46.5	%		322			-10.3	%		1,540			2,110			-27.0	%
7	Telephone		448			490			-8.4	%		346			29.6	%		1,590			1,977			-19.6	%
8	Professional Fees		896			1,003			-10.7	%		950			-5.7	%		3,376			3,583			-5.8	%
9	Stationery & Supplies		329			364			-9.7	%		276			19.5	%		1,285			1,555			-17.4	%
10	Loan Expense		391			342			14.3	%		354			10.4	%		1,639			2,031			-19.3	%
11	Operational Losses		213			295			-27.7	%		237			-10.2	%		828			953			-13.1	%
12	Amortization of Identifiable Intangibles		1,622			1,646			-1.5	%		1,573			3.1	%		6,333			6,697			-5.4	%
13	FDIC Insurance Assessment		1,320			1,440			-8.3	%		1,268			4.1	%		5,168			6,260			-17.4	%
14	Other Operating		2,754			3,202			-14.0	%		2,659			3.6	%		11,230			12,804			-12.3	%
15	Total Noninterest Expense	$	31,512		$	32,836			-4.0	%	$	31,508			0.0	%	$	127,147		$	140,776			-9.7	%
16	Average (Avg.) Full Time Equivalent Staff		1,006			1,056			-4.7	%		1,004			0.2	%		1,015			1,115			-9.0	%
17	Avg. Assets / Avg. Full Time Equivalent Staff	$	5,002		$	4,742			5.5	%	$	4,816			3.9	%	$	4,782		$	4,562			4.8	%
18	Operating Ratios:
19	FTE Revenue / Avg. Full Time Equiv. Staff (annualized)	$	282		$	280			0.7	%	$	283			-0.4	%	$	284		$	318			-10.7	%
20	Noninterest Expense / Avg. Earning Assets (annualized)		3.00	%		3.05	%					3.07	%					3.11	%		3.15	%
21	Noninterest Expense / FTE Revenues		44.0	%		44.0	%					43.9	%					44.1	%		39.7	%

8. Provision for Loan Losses.

		(dollars in thousands)
								Q4’10 /						Q4’10 /									12/31’10YTD /
		Q4’10			Q4’09			Q4’09			Q3’10			Q3’10			12/31’10YTD			12/31’09YTD			12/31’09YTD
1	Average Total Loans	$	2,958,095		$	3,124,583			-5.3	%	$	2,937,501			0.7	%	$	2,954,033		$	3,226,961			-8.5	%
2	Avg. Total Purchased Covered Loans (1)		704,728			889,101			-20.7	%		743,126			-5.2	%		766,369			897,942			-14.7	%
3	Avg. Total Purchased Non-Covered Loans (2)		207,450			0			n/m			97,438			112.9	%		76,158			0			n/m
4	Avg. Total Originated Loans		2,045,917			2,235,482			-8.5	%		2,096,937			-2.4	%		2,111,506			2,329,019			-9.3	%
5	Provision for Loan Losses	$	2,800		$	3,300			-15.2	%	$	2,800			0.0	%	$	11,200		$	10,500			6.7	%
6	Gross Loan Losses		6,342			6,533			-2.9	%		5,216			21.6	%		20,268			17,267			17.4	%
7	Net Loan Losses		5,293			4,940			7.1	%		4,387			20.6	%		16,607			13,927			19.2	%
8	Recoveries / Gross Loan Losses		17	%		24	%					16	%					18	%		19	%
9	Net Loan Losses / Avg. Originated Loans (a)		1.03	%		0.88	%					0.83	%					0.79	%		0.60	%
10	Provision for Loan Losses / Avg. Originated Loans (a)		0.54	%		0.59	%					0.53	%					0.53	%		0.45	%
11	Provision for Loan Losses / Net Loan Losses		52.9	%		66.8	%					63.8	%					67.4	%		75.4	%

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

3

Public Information January 20, 2011

WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
December 31, 2010

9. Credit Quality.

		(dollars in thousands)
								12/31/10 /						12/31/10 /
		12/31/10			12/31/09			12/31/09			9/30/10			9/30/10			6/30/10			3/31/10			9/30/09
1	Nonperforming Originated Loans:
2	Nonperforming Nonaccrual Loans	$	20,845		$	19,837			5.1	%	$	19,194			8.6	%	$	19,941		$	20,230		$	31,352
3	Performing Nonaccrual Loans		23			25			n/m			233			n/m			24			57			61
4	Total Nonaccrual Loans		20,868			19,862			5.1	%		19,427			7.4	%		19,965			20,287			31,413
5	Accruing Loans 90+ Days Past Due		766			800			-4.3	%		686			11.7	%		712			746			1,212
6	Total		21,634			20,662			4.7	%		20,113			7.6	%		20,677			21,033			32,625
7	Repossessed Originated Loan Collateral		11,424			12,642			-9.6	%		19,285			-40.8	%		18,028			14,266			4,319
8	Total Originated Nonperforming Assets		33,058			33,304			-0.7	%		39,398			-16.1	%		38,705			35,299			36,944
9	Nonperforming Purchased Covered Loans (1):
10	Nonperforming Nonaccrual Loans		28,581			66,965			-57.3	%		39,783			-28.2	%		37,438			52,431			53,255
11	Performing Nonaccrual Loans		18,564			18,183			2.1	%		12,388			49.9	%		22,908			25,731			26,277
12	Total Nonaccrual Loans		47,145			85,148			-44.6	%		52,171			-9.6	%		60,346			78,162			79,532
13	Accruing Loans 90+ Days Past Due		355			210			n/m			4,078			n/m			249			317			935
14	Total		47,500			85,358			-44.4	%		56,249			-15.6	%		60,595			78,479			80,467
15	Repossessed Purchased Covered Loan Collateral (1)		21,791			23,297			-6.5	%		25,251			-13.7	%		23,670			22,305			18,740
16	Total Nonperforming Purchased Covered Assets (1)		69,291			108,655			-36.2	%		81,500			-15.0	%		84,265			100,784			99,207
17	Nonperforming Purchased Non-Covered Loans (2):
18	Nonperforming Nonaccrual Loans		29,311			0			n/m			18,304			60.1	%		0			0			0
19	Performing Nonaccrual Loans		9,852			0			n/m			19,554			-49.6	%		0			0			0
20	Total Nonaccrual Loans		39,163			0			n/m			37,858			3.4	%		0			0			0
21	Accruing Loans 90+ Days Past Due		1			0			n/m			0			n/m			0			0			0
22	Total		39,164			0			n/m			37,858			3.5	%		0			0			0
23	Repossessed Purchased Non-Covered Loan Collateral (2)		2,196			0			n/m			2,916			-24.7	%		0			0			0
24	Total Nonperforming Purchased Non-Covered Assets (2)		41,360			0			n/m			40,774			1.4	%		0			0			0
25	Total Nonperforming Assets	$	143,709		$	141,959			n/m		$	161,672			n/m		$	122,970		$	136,083		$	136,151
26	Total Originated Loans Outstanding	$	2,029,541		$	2,201,088			-7.8	%	$	2,077,915			-2.3	%	$	2,124,570		$	2,146,580		$	2,267,130
27	Total Purchased Covered Loans Outstanding (1)		692,972			855,301			-19.0	%		718,618			-3.6	%		763,619			809,503			932,656
28	Total Purchased Non-Covered Loans Outstanding (2)		199,571			0			n/m			212,318			-6.0	%		0			0			0
29	Total Loans Outstanding	$	2,922,084		$	3,056,389			-4.4	%	$	3,008,851			-2.9	%	$	2,888,189		$	2,956,083		$	3,199,786
30	Total Assets	$	4,931,524		$	4,975,501			-0.9	%	$	4,977,871			-0.9	%	$	4,727,086		$	4,745,495		$	4,971,159
31	Originated Loans:
32	Allowance for Loan Losses	$	35,636		$	41,043			-13.2	%	$	38,129			-6.5	%	$	39,716		$	40,316		$	42,683
33	Allowance/Originated Loans		1.76	%		1.86	%					1.83	%					1.87	%		1.88	%		1.88	%
34	Nonperforming Originated Loans/Originated Loans		1.07	%		0.94	%					0.97	%					0.97	%		0.98	%		1.44	%
35	Allowance/Originated Nonperforming Loans		165	%		199	%					190	%					192	%		192	%		131	%
36	Purchased Covered Loans (1):
37	Fair Value Discount on Purchased Covered Loans	$	61,784		$	93,251					$	66,459					$	75,522		$	83,325		$	98,738
38	Discount/Purchased Covered Loans, gross		8.19	%		9.83	%					8.47	%					9.00	%		9.33	%		9.57	%
39	Nonperforming Purchased Covered Loans/Total Cvd Loans		6.85	%		9.98	%					7.83	%					7.94	%		9.69	%		8.63	%
40	Purchased Non-Covered Loans (2):
41	Fair Value Discount on Purchased Non-Covered Loans	$	32,381			n/m					$	36,935						n/m			n/m			n/m
42	Discount/Purchased Non-Covered Loans, gross		13.96	%		n/m						14.82	%					n/m			n/m			n/m
43	Nonperforming Purchased NC Loans/Total NC Loans		19.62	%		n/m						17.83	%					n/m			n/m			n/m

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

4

Public Information January 20, 2011

WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
December 31, 2010

10. Capital.

		(dollars in thousands, except per-share amounts)
								12/31/10 /						12/31/10 /
		12/31/10			12/31/09			12/31/09			9/30/10			9/30/10			6/30/10			3/31/10			9/30/09
1	Common Shareholders’ Equity	$	545,287		$	505,448			7.9	%	$	541,173			0.8	%	$	527,681		$	519,131		$	494,383
2	Preferred Shareholder’s Equity		0			0			n/m			0			n/m			0			0			41,335
3	Total Shareholders’ Equity		545,287			505,448			7.9	%		541,173			0.8	%		527,681			519,131			535,718
4	Tier I Regulatory Capital		412,463			370,011			11.5	%		399,781			3.2	%		391,538			383,568			394,283
5	Total Regulatory Capital		449,876			406,339			10.7	%		437,615			2.8	%		426,674			419,541			431,913
6	Total Assets		4,931,524			4,975,501			-0.9	%		4,977,871			-0.9	%		4,727,086			4,745,495			4,971,159
7	Risk-Adjusted Assets		2,901,802			2,803,007			3.5	%		2,941,691			-1.4	%		2,714,429			2,758,122			2,866,814
8	Total Shareholders’ Equity / Total Assets		11.06	%		10.16	%					10.87	%					11.16	%		10.94	%		10.78	%
9	Total Shareholders’ Equity / Total Loans		18.66	%		16.54	%					17.99	%					18.27	%		17.56	%		16.74	%
10	Tier I Capital /Total Assets		8.36	%		7.44	%					8.03	%					8.28	%		8.08	%		7.93	%
11	Tier I Capital / Risk-Adjusted Assets		14.21	%		13.20	%					13.59	%					14.42	%		13.91	%		13.75	%
12	Total Capital / Risk-Adjusted Assets		15.50	%		14.50	%					14.88	%					15.72	%		15.21	%		15.07	%
13	Tangible Common Equity Ratio		8.15	%		7.22	%					7.95	%					8.17	%		7.92	%		6.95	%
14	Common Shares Outstanding		29,090			29,208			-0.4	%		29,118			-0.1	%		29,118			29,206			29,207
15	Common Equity Per Share	$	18.74		$	17.31			8.3	%	$	18.59			0.8	%	$	18.12		$	17.77		$	16.93
16	Market Value Per Common Share	$	55.47		$	55.37			0.2	%	$	54.49			1.8	%	$	52.52		$	57.65		$	52.00
17	Share Repurchase Programs

		(shares in thousands)
							Q4’10 /					Q4’10 /								12/31’10YTD /
		Q4’10		Q4’09			Q4’09			Q3’10		Q3’10			12/31’10YTD		12/31’09YTD			12/31’09YTD
18	Total Shares Repurchased / Canceled		128		11			n/m			97		n/m			533		41			n/m
19	Average Repurchase Price	$	50.35	$	52.16			-3.5	%	$	52.08		-3.3	%	$	53.87	$	47.62			13.1	%
20	Net Shares Repurchased (Issued)		28		(1	)		n/m			1		n/m			118		(328	)		n/m

5

Public Information January 20, 2011

WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
December 31, 2010

11. Period-End Balance Sheets.

		(unaudited, dollars in thousands)
								12/31/10 /							12/31/10 /
		12/31/10			12/31/09			12/31/09			9/30/10				9/30/10			6/30/10			3/31/10			9/30/09
1	Assets:
2	Cash and Money Market Assets	$	339,185		$	361,577			-6.2	%	$	344,561				-1.6	%	$	294,582		$	253,571		$	180,521
3	Investment Securities Available For Sale		671,484			384,208			74.8	%		569,511				17.9	%		466,500			414,987			391,644
4	Investment Securities Held to Maturity		580,728			726,935			-20.1	%		618,838				-6.2	%		652,958			690,585			780,846
5	Purchased Covered Loans (1)		692,972			855,301			-19.0	%		718,618				-3.6	%		763,619			809,503			932,656
6	Purchased Non-Covered Loans (2)		199,571			0			n/m			212,318				-6.0	%		0			0			0
7	Originated Loans		2,029,541			2,201,088			-7.8	%		2,077,915				-2.3	%		2,124,570			2,146,580			2,267,130
8	Allowance For Loan Losses		(35,636	)		(41,043	)		-13.2	%		(38,129	)			-6.5	%		(39,716	)		(40,316	)		(42,683	)
9	Total Loans, net		2,886,448			3,015,346			-4.3	%		2,970,722				-2.8	%		2,848,473			2,915,767			3,157,103
10	Non-Covered Other Real Estate Owned		13,620			12,642			7.7	%		22,201				-38.7	%		18,028			14,266			4,319
11	Covered Other Real Estate Owned, net (1)		21,791			23,297			-6.5	%		25,251				-13.7	%		23,670			22,305			18,740
12	Premises and Equipment		36,278			38,098			-4.8	%		36,271				0.0	%		36,816			37,423			38,982
13	Identifiable Intangible Assets		34,604			35,667			-3.0	%		36,226				-4.5	%		32,529			34,070			38,264
14	Goodwill		121,673			121,699			0.0	%		121,673				0.0	%		121,673			121,699			121,699
15	Interest Receivable and Other Assets		225,713			256,032			-11.8	%		232,617				-3.0	%		231,857			240,822			239,041
16	Total Assets	$	4,931,524		$	4,975,501			-0.9	%	$	4,977,871				-0.9	%	$	4,727,086		$	4,745,495		$	4,971,159
17	Liabilities and Shareholders’ Equity:
18	Deposits:													��
19	Noninterest Bearing	$	1,454,663		$	1,428,432			1.8	%	$	1,428,882				1.8	%	$	1,427,611		$	1,376,760		$	1,377,215
20	Interest-Bearing Transaction		718,885			669,004			7.5	%		689,372				4.3	%		642,202			653,872			660,001
21	Savings		1,063,837			971,384			9.5	%		1,032,003				3.1	%		954,285			957,126			962,823
22	Time		895,576			991,388			-9.7	%		922,441				-2.9	%		866,462			907,271			1,024,587
23	Total Deposits		4,132,961			4,060,208			1.8	%		4,072,698				1.5	%		3,890,560			3,895,029			4,024,626
24	Short-Term Borrowed Funds		107,385			227,178			-52.7	%		193,202				-44.4	%		210,503			211,756			222,030
25	Federal Home Loan Bank Advances		61,698			85,470			-27.8	%		66,934				n/m			10,223			10,306			85,904
25	Debt Financing and Notes Payable		26,363			26,497			-0.5	%		26,396				-0.1	%		26,430			26,464			26,531
26	Liability For Interest, Taxes and Other		57,830			70,700			-18.2	%		77,468				-25.4	%		61,689			82,809			76,350
27	Total Liabilities		4,386,237			4,470,053			-1.9	%		4,436,698				-1.1	%		4,199,405			4,226,364			4,435,441
28	Shareholders’ Equity:
29	Preferred Stock		0			0			n/m			0				n/m			0			0			41,335
30	Common Equity:
31	Paid-In Capital		381,609			368,732			3.5	%		378,847				0.7	%		375,713			371,982			368,032
32	Accumulated Other Comprehensive Income		159			3,714			n/m			7,238				-97.8	%		6,314			4,796			6,053
33	Retained Earnings		163,519			133,002			22.9	%		155,088				5.4	%		145,654			142,353			120,298
34	Total Common Equity		545,287			505,448			7.9	%		541,173				0.8	%		527,681			519,131			494,383
35	Total Shareholders’ Equity		545,287			505,448			7.9	%		541,173				0.8	%		527,681			519,131			535,718
36	Total Liabilities and Shareholders’ Equity	$	4,931,524		$	4,975,501			-0.9	%	$	4,977,871				-0.9	%	$	4,727,086		$	4,745,495		$	4,971,159

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

6

Public Information January 20, 2011

WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
December 31, 2010

12. Income Statements.

			(unaudited, dollars in thousands, except per-share amounts)
							Q4’10 /					Q4’10 /								12/31’10YTD /
			Q4’10		Q4’09		Q4’09			Q3’10		Q3’10			12/31’10YTD		12/31’09YTD			12/31’09YTD
1		Interest and Fee Income:
2		Loans	$	44,028	$	46,653		-5.6	%	$	44,434		-0.9	%	$	177,224	$	189,801			-6.6	%
3		Money Market Assets and Funds Sold		0		0		n/m			1		n/m			2		3			n/m
4		Investment Securities Available For Sale		4,657		3,996		16.5	%		4,189		11.2	%		16,766		16,547			1.3	%
5		Investment Securities Held to Maturity		6,186		7,847		-21.2	%		6,579		-6.0	%		27,163		35,598			-23.7	%
6		Total Interest Income		54,871		58,496		-6.2	%		55,203		-0.6	%		221,155		241,949			-8.6	%
7		Interest Expense:
8		Transaction Deposits		233		238		-2.3	%		226		2.9	%		894		999			-10.6	%
9		Savings Deposits		585		803		-27.2	%		666		-12.1	%		2,649		3,678			-28.0	%
10		Time Deposits		1,184		1,983		-40.3	%		1,155		2.5	%		5,175		9,872			-47.6	%
11		Short-Term Borrowed Funds		453		560		-19.0	%		511		-11.3	%		1,991		2,132			-6.6	%
12		Federal Home Loan Bank Advances		187		295		n/m			113		n/m			437		1,010			n/m
13	��	Debt Financing and Notes Payable		422		422		0.0	%		425		-0.7	%		1,694		1,689			0.3	%
14		Total Interest Expense		3,064		4,301		-28.8	%		3,096		-1.0	%		12,840		19,380			-33.7	%
15		Net Interest Income		51,807		54,195		-4.4	%		52,107		-0.6	%		208,315		222,569			-6.4	%
16		Provision for Loan Losses		2,800		3,300		-15.2	%		2,800		0.0	%		11,200		10,500			6.7	%
17		Noninterest Income:
18		Service Charges on Deposit Accounts		7,984		9,376		-14.8	%		8,162		-2.2	%		33,517		36,392			-7.9	%
19		Merchant Credit Card		2,427		2,250		7.9	%		2,234		8.6	%		9,057		9,068			-0.1	%
20		ATM Fees & Interchange		930		901		3.3	%		1,004		-7.4	%		3,848		3,693			4.2	%
21		Debit Card Fees		1,210		1,219		-0.8	%		1,259		-3.9	%		4,888		4,875			0.3	%
22		Financial Services Commissions		164		163		0.5	%		211		-22.5	%		747		583			28.2	%
23		Mortgage Banking		30		14		n/m			23		32.4	%		112		82			36.2	%
24		Trust Fees		447		373		19.9	%		429		4.4	%		1,705		1,429			19.3	%
25		Gain on Acquisition		0		0		n/m			178		n/m			178		48,844			n/m
26		Other		1,950		1,400		39.2	%		1,571		24.1	%		7,402		7,045			5.1	%
27		Total Noninterest Income		15,142		15,696		-3.5	%		15,071		0.5	%		61,454		112,011			n/m
28		Noninterest Expense:
29		Salaries and Related Benefits		14,899		15,170		-1.8	%		15,481		-3.8	%		61,748		65,391			-5.6	%
30		Occupancy		4,073		3,917		4.0	%		3,962		2.8	%		15,633		18,748			-16.6	%
31		Equipment		1,091		1,240		-12.0	%		1,067		2.3	%		4,325		5,859			-26.2	%
32		Outsourced Data Processing		2,328		2,260		3.0	%		2,187		6.5	%		8,957		9,000			-0.5	%
33		Amortization of Identifiable Intangibles		1,622		1,646		-1.5	%		1,573		3.1	%		6,333		6,697			-5.4	%
34		Professional Fees		896		1,003		-10.7	%		950		-5.7	%		3,376		3,583			-5.8	%
35		FDIC Insurance Assessment		1,320		1,440		-8.3	%		1,268		4.1	%		5,168		6,260			-17.4	%
36		Other		5,283		6,160		-14.2	%		5,020		5.2	%		21,607		25,238			-14.4	%
37		Total Noninterest Expense		31,512		32,836		-4.0	%		31,508		0.0	%		127,147		140,776			-9.7	%
38		Income Before Income Taxes		32,637		33,755		-3.3	%		32,870		-0.7	%		131,422		183,304			n/m
39		Income Tax Provision		8,906		9,594		-7.2	%		9,161		-2.8	%		36,845		57,878			n/m
40		Net Income		23,731		24,161		-1.8	%		23,709		0.1	%		94,577		125,426			n/m
41		Preferred Stock Dividends and Discount Accretion		0		812		n/m			0		n/m			0		3,963			n/m
42		Net Income Applicable to Common Equity	$	23,731	$	23,349		1.6	%	$	23,709		0.1	%	$	94,577	$	121,463			n/m
43		Average Common Shares Outstanding		29,103		29,205		-0.3	%		29,127		-0.1	%		29,166		29,105			0.2	%
44		Diluted Average Common Shares Outstanding		29,341		29,471		-0.4	%		29,385		-0.1	%		29,471		29,353			0.4	%
45		Per Common Share Data:																	��
46		Basic Earnings	$	0.82	$	0.80		2.5	%	$	0.81		0.3	%	$	3.24	$	4.17			n/m
47		Diluted Earnings		0.81		0.79		2.5	%		0.81		0.0	%		3.21		4.14			n/m
48		Dividends Paid		0.36		0.35		2.9	%		0.36		0.0	%		1.44		1.41			2.1	%

7