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(Mark one) | ||
þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
CALIFORNIA | 94-2156203 | |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification Number) |
(Address of principal executive offices) (zip code)
Title of class: | Name of each exchange on which registered: | |
Common Stock, no par value | The NASDAQ Stock Market LLC |
Large accelerated filerþ | Accelerated filero | Non-accelerated filero | Smaller reporting companyo | |||
(Do not check if a smaller reporting company) |
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Exhibit 21 | ||||||||
Exhibit 23(a) | ||||||||
Exhibit 31.1 | ||||||||
Exhibit 31.2 | ||||||||
Exhibit 32.1 | ||||||||
Exhibit 32.2 | ||||||||
EX-101 INSTANCE DOCUMENT | ||||||||
EX-101 SCHEMA DOCUMENT | ||||||||
EX-101 CALCULATION LINKBASE DOCUMENT | ||||||||
EX-101 LABELS LINKBASE DOCUMENT | ||||||||
EX-101 PRESENTATION LINKBASE DOCUMENT | ||||||||
EX-101 DEFINITION LINKBASE DOCUMENT |
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Corporate Secretary A-2M
Post Office Box 1200
Suisun City, California 94585-1200
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• | Centralize responsibility for consumer financial protection by creating a new agency, the Consumer Financial Protection Bureau, responsible for implementing, examining and enforcing compliance with federal consumer financial laws. |
• | Restrict the preemption of state law by federal law and disallow subsidiaries and affiliates of national banks from availing themselves of such preemption. |
• | Apply the same leverage and risk-based capital requirements that apply to insured depository institutions to most bank holding companies. |
• | Require bank regulatory agencies to seek to make their capital requirements for banks countercyclical so that capital requirements increase in times of economic expansion and decrease in times of economic contraction. |
• | Change the assessment base for federal deposit insurance from the amount of insured deposits to consolidated assets less tangible capital, eliminate the ceiling on the size of the Deposit Insurance Fund (“DIF”) and increase the floor of the size of the DIF. |
• | Impose comprehensive regulation of the over-the-counter derivatives market, which would include certain provisions that would effectively prohibit insured depository institutions from conducting certain derivatives businesses in the institution itself. |
• | Require large, publicly traded bank holding companies to create a risk committee responsible for the oversight of enterprise risk management. |
• | Implement corporate governance revisions, including with regard to executive compensation and proxy access by shareholders, that apply to all public companies, not just financial institutions. |
• | Make permanent the $250 thousand limit for federal deposit insurance and provide unlimited federal deposit insurance until December 31, 2012 for non-interest bearing demand transaction accounts at all insured depository institutions. |
• | Repeal the federal prohibitions on the payment of interest on demand deposits, thereby permitting depository institutions to pay interest on business transaction and other accounts. |
• | Amend the Electronic Fund Transfer Act (“EFTA”) to, among other things, give the FRB the authority to establish rules regarding interchange fees charged for electronic debit transactions by payment card issuers having assets over $10 billion and to enforce a new statutory requirement that such fees be reasonable and proportional to the actual cost of a transaction to the issuer. While the Company’s assets are currently less than $10 billion, interchange fees charged by larger institutions will likely dictate the level of fees smaller institutions will be able to charge to remain competitive. |
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• | a decrease in the demand for loans and other products and services offered by the Company; |
• | an increase or decrease in the usage of unfunded credit commitments; |
• | an impairment of certain intangible assets, such as goodwill; |
• | an increase in the number of clients and counterparties who become delinquent, file for protection under bankruptcy laws or default on their loans or other obligations to the Company, which could result in a higher level of nonperforming assets, net charge-offs, provision for loan losses, and valuation adjustments on loans held for sale; |
• | an impairment of certain investment securities, such as state and local municipal securities; |
• | an impairment of life insurance policies owned by the Company. |
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High | Low | |||||||
2010: | ||||||||
First quarter | $ | 61.25 | $ | 50.87 | ||||
Second quarter | 60.37 | 52.17 | ||||||
Third quarter | 55.99 | 50.04 | ||||||
Fourth quarter | 56.72 | 48.70 | ||||||
2009: | ||||||||
First quarter | $ | 51.29 | $ | 33.08 | ||||
Second quarter | 56.79 | 44.13 | ||||||
Third quarter | 54.70 | 45.42 | ||||||
Fourth quarter | 56.80 | 47.08 | ||||||
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Period ending | ||||||||||||||||||||||||
2000 | 2001 | 2002 | 2003 | 2004 | 2005 | |||||||||||||||||||
Westamerica Bancorporation (WABC) | $ | 100.00 | $ | 94.01 | $ | 97.60 | $ | 123.67 | $ | 147.87 | $ | 137.68 | ||||||||||||
S&P 500 (SPX) | 100.00 | 88.18 | 68.69 | 88.39 | 97.98 | 102.80 | ||||||||||||||||||
NASDAQ Bank Index (CBNK) | 100.00 | 112.47 | 120.29 | 160.03 | 181.84 | 178.32 |
Period ending | ||||||||||||||||||||
2006 | 2007 | 2008 | 2009 | 2010 | ||||||||||||||||
Westamerica Bancorporation (WABC) | $ | 134.78 | $ | 123.00 | $ | 144.83 | $ | 161.92 | $ | 165.94 | ||||||||||
S&P 500 (SPX) | 119.09 | 125.63 | 79.25 | 100.22 | 115.32 | |||||||||||||||
NASDAQ Bank Index (CBNK) | 203.04 | 162.61 | 127.67 | 106.86 | 121.98 |
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Period ending | ||||||||||||||||||||||||
2005 | 2006 | 2007 | 2008 | 2009 | 2010 | |||||||||||||||||||
Westamerica Bancorporation (WABC) | $ | 100.00 | $ | 97.89 | $ | 89.34 | $ | 105.19 | $ | 117.15 | $ | 120.53 | ||||||||||||
S&P 500 (SPX) | 100.00 | 115.84 | 122.21 | 77.09 | 97.49 | 112.18 | ||||||||||||||||||
NASDAQ Bank Index (CBNK) | 100.00 | 113.86 | 91.19 | 71.60 | 59.92 | 68.41 |
(c) | (d) | |||||||||||||||
Total Number | Maximum | |||||||||||||||
of Shares | Number of | |||||||||||||||
(b) | Purchased | Shares that | ||||||||||||||
(a) | Average | as Part of | May Yet Be | |||||||||||||
Total | Price | Publicly | Purchased | |||||||||||||
Number of | Paid | Announced | Under the | |||||||||||||
Shares | per | Plans or | Plans or | |||||||||||||
Period | Purchased | Share | Programs* | Programs | ||||||||||||
October 1 through October 31 | 60 | $ | 50.76 | 60 | 1,935 | |||||||||||
November 1 through November 30 | 64 | 49.73 | 64 | 1,871 | ||||||||||||
December 1 through December 31 | 4 | 53.90 | 4 | 1,867 | ||||||||||||
Total | 128 | 50.35 | 128 | 1,867 | ||||||||||||
* | Includes 2 thousand, 1 thousand and 4 thousand shares purchased in October, November and December, respectively, by the Company in private transactions with the independent administrator of the Company’s Tax Deferred Savings/Retirement Plan (ESOP). The Company includes the shares purchased in such transactions within the total number of shares authorized for purchase pursuant to the currently existing publicly announced program. |
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FINANCIAL SUMMARY
(Dollars in thousands, except per share data)
Year ended December 31: | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||
Interest income | $ | 221,155 | $ | 241,949 | $ | 208,469 | $ | 235,872 | $ | 246,515 | ||||||||||
Interest expense | 12,840 | 19,380 | 33,243 | 72,555 | 65,268 | |||||||||||||||
Net interest income | 208,315 | 222,569 | 175,226 | 163,317 | 181,247 | |||||||||||||||
Provision for loan losses | 11,200 | 10,500 | 2,700 | 700 | 445 | |||||||||||||||
Noninterest income: | ||||||||||||||||||||
Net losses from securities | — | — | (56,955 | ) | — | — | ||||||||||||||
Gain on acquisition | 178 | 48,844 | — | — | — | |||||||||||||||
Deposit service charges and other | 61,276 | 63,167 | 54,899 | 59,278 | 55,347 | |||||||||||||||
Total noninterest income (loss) | 61,454 | 112,011 | (2,056 | ) | 59,278 | 55,347 | ||||||||||||||
Noninterest expense | ||||||||||||||||||||
Visa litigation | — | — | (2,338 | ) | 2,338 | — | ||||||||||||||
Other noninterest expense | 127,147 | 140,776 | 103,099 | 99,090 | 101,724 | |||||||||||||||
Total noninterest expense | 127,147 | 140,776 | 100,761 | 101,428 | 101,724 | |||||||||||||||
Income before income taxes | 131,422 | 183,304 | 69,709 | 120,467 | 134,425 | |||||||||||||||
Provision for income taxes | 36,845 | 57,878 | 9,874 | 30,691 | 35,619 | |||||||||||||||
Net income | 94,577 | 125,426 | 59,835 | 89,776 | 98,806 | |||||||||||||||
Preferred stock dividends and discount accretion | — | 3,963 | — | — | — | |||||||||||||||
Net income applicable to common equity | $ | 94,577 | $ | 121,463 | $ | 59,835 | $ | 89,776 | $ | 98,806 | ||||||||||
Earnings per share: | ||||||||||||||||||||
Basic | $ | 3.24 | $ | 4.17 | $ | 2.07 | $ | 3.02 | $ | 3.17 | ||||||||||
Diluted | 3.21 | 4.14 | 2.04 | 2.98 | 3.11 | |||||||||||||||
Per share: | ||||||||||||||||||||
Dividends paid | $ | 1.44 | $ | 1.41 | $ | 1.39 | $ | 1.36 | $ | 1.30 | ||||||||||
Book value at December 31 | 18.74 | 17.31 | 14.19 | 13.60 | 13.89 | |||||||||||||||
Average common shares outstanding | 29,166 | 29,105 | 28,892 | 29,753 | 31,202 | |||||||||||||||
Average diluted common shares outstanding | 29,471 | 29,353 | 29,273 | 30,165 | 31,739 | |||||||||||||||
Shares outstanding at December 31 | 29,090 | 29,208 | 28,880 | 29,018 | 30,547 | |||||||||||||||
At December 31: | ||||||||||||||||||||
Originated loans | $ | 2,029,541 | $ | 2,201,088 | $ | 2,382,426 | $ | 2,502,976 | $ | 2,531,734 | ||||||||||
Purchased covered loans | 692,972 | 855,301 | — | — | — | |||||||||||||||
Purchased non-covered loans | 199,571 | — | — | — | — | |||||||||||||||
Investments | 1,252,212 | 1,111,143 | 1,237,779 | 1,578,109 | 1,780,617 | |||||||||||||||
Intangible assets and goodwill | 156,277 | 157,366 | 136,907 | 140,148 | 143,801 | |||||||||||||||
Total assets | 4,931,524 | 4,975,501 | 4,032,934 | 4,558,959 | 4,769,335 | |||||||||||||||
Total deposits | 4,132,961 | 4,060,208 | 3,095,054 | 3,264,790 | 3,516,734 | |||||||||||||||
Short-term borrowed funds | 107,385 | 227,178 | 457,275 | 798,599 | 731,977 | |||||||||||||||
Federal Home Loan Bank advances | 61,698 | 85,470 | — | — | — | |||||||||||||||
Debt financing and notes payable | 26,363 | 26,497 | 26,631 | 36,773 | 36,920 | |||||||||||||||
Shareholders’ equity | 545,287 | 505,448 | 409,852 | 394,603 | 424,235 | |||||||||||||||
Financial Ratios: | ||||||||||||||||||||
For the year: | ||||||||||||||||||||
Return on assets | 1.95 | % | 2.39 | % | 1.42 | % | 1.93 | % | 2.01 | % | ||||||||||
Return on common equity | 18.11 | % | 25.84 | % | 14.77 | % | 22.11 | % | 23.38 | % | ||||||||||
Net interest margin * | 5.54 | % | 5.42 | % | 5.13 | % | 4.40 | % | 4.57 | % | ||||||||||
Net loan losses to average originated loans | 0.79 | % | 0.60 | % | 0.44 | % | 0.14 | % | 0.04 | % | ||||||||||
Efficiency ratio ** | 44.13 | % | 39.74 | % | 51.88 | % | 41.46 | % | 39.12 | % | ||||||||||
At December 31: | ||||||||||||||||||||
Equity to assets | 11.06 | % | 10.16 | % | 10.16 | % | 8.66 | % | 8.90 | % | ||||||||||
Total capital to risk-adjusted assets | 15.50 | % | 14.50 | % | 11.76 | % | 10.64 | % | 11.09 | % | ||||||||||
Allowance for loan losses to originated loans | 1.76 | % | 1.86 | % | 1.87 | % | 2.10 | % | 2.19 | % |
* | Yields on securities and certain loans have been adjusted upward to a “fully taxable equivalent” (“FTE”) basis, which is a non-GAAP financial measure, in order to reflect the effect of income which is exempt from federal income taxation at the current statutory tax rate. | |
** | The efficiency ratio is defined as noninterest expense divided by total revenue (net interest income on an FTE basis, which is a non-GAAP financial measure, and noninterest income). |
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Year ended December 31, | ||||||||||||
(Dollars in thousands except per share amounts) | 2010 | 2009 | 2008 | |||||||||
Net interest and fee income * | $ | 226,683 | $ | 242,218 | $ | 196,257 | ||||||
Provision for loan losses | (11,200 | ) | (10,500 | ) | (2,700 | ) | ||||||
Noninterest income (loss) | 61,454 | 112,011 | (2,056 | ) | ||||||||
Noninterest expense | (127,147 | ) | (140,776 | ) | (100,761 | ) | ||||||
Income before income taxes * | 149,790 | 202,953 | 90,740 | |||||||||
Taxes * | (55,213 | ) | (77,527 | ) | (30,905 | ) | ||||||
Net income | 94,577 | 125,426 | 59,835 | |||||||||
Preferred dividends and discount accretion | — | (3,963 | ) | — | ||||||||
Net income applicable to common equity | $ | 94,577 | $ | 121,463 | $ | 59,835 | ||||||
Net income applicable to common equity per average fully-diluted common share | $ | 3.21 | $ | 4.14 | $ | 2.04 | ||||||
Net income applicable to common equity as a percentage of average shareholders’ equity | 18.11 | % | 25.84 | % | 14.77 | % | ||||||
Net income applicable to common equity as a percentage of average total assets | 1.95 | % | 2.39 | % | 1.42 | % |
* | Fully taxable equivalent (FTE) |
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Year ended December 31, | ||||||||||||
(Dollars in thousands) | 2010 | 2009 | 2008 | |||||||||
Interest and fee income | $ | 221,155 | $ | 241,949 | $ | 208,469 | ||||||
Interest expense | (12,840 | ) | (19,380 | ) | (33,243 | ) | ||||||
FTE adjustment | 18,368 | 19,649 | 21,031 | |||||||||
Net interest income (FTE) | $ | 226,683 | $ | 242,218 | $ | 196,257 | ||||||
Net interest margin (FTE) | 5.54 | % | 5.42 | % | 5.13 | % | ||||||
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Year Ended December 31, 2010 | ||||||||||||
Interest | Rates | |||||||||||
Average | Income/ | Earned/ | ||||||||||
(Dollars in thousands) | Balance | Expense | Paid | |||||||||
Assets | ||||||||||||
Money market assets and funds sold | $ | 1,820 | $ | 2 | 0.11 | % | ||||||
Investment securities: | ||||||||||||
Available for sale | ||||||||||||
Taxable | 299,730 | 8,806 | 2.94 | % | ||||||||
Tax-exempt (1) | 183,484 | 11,982 | 6.53 | % | ||||||||
Held to maturity | ||||||||||||
Taxable | 175,475 | 7,641 | 4.35 | % | ||||||||
Tax-exempt (1) | 479,969 | 30,075 | 6.27 | % | ||||||||
Loans: | ||||||||||||
Commercial | ||||||||||||
Taxable | 536,530 | 34,140 | 6.36 | % | ||||||||
Tax-exempt (1) | 166,702 | 10,941 | 6.56 | % | ||||||||
Commercial real estate | 1,245,369 | 81,755 | 6.56 | % | ||||||||
Real estate construction | 68,602 | 3,711 | 5.41 | % | ||||||||
Real estate residential | 357,398 | 15,668 | 4.38 | % | ||||||||
Consumer | 579,432 | 34,802 | 6.01 | % | ||||||||
Total Loans (1) | 2,954,033 | 181,017 | 6.13 | % | ||||||||
Interest earning assets (1) | 4,094,511 | 239,523 | 5.85 | % | ||||||||
Other assets | 758,969 | |||||||||||
Total assets | $ | 4,853,480 | ||||||||||
Liabilities and shareholders’ equity | ||||||||||||
Deposits: | ||||||||||||
Noninterest bearing demand | $ | 1,412,702 | — | — | ||||||||
Savings and interest-bearing transaction | 1,676,882 | 3,543 | 0.21 | % | ||||||||
Time less than $100,000 | 358,096 | 1,769 | 0.49 | % | ||||||||
Time $100,000 or more | 550,810 | 3,406 | 0.62 | % | ||||||||
Total interest-bearing deposits | 2,585,788 | 8,718 | 0.34 | % | ||||||||
Short-term borrowed funds | 202,663 | 1,991 | 0.97 | % | ||||||||
Federal Home Loan Bank advances | 34,378 | 437 | 1.25 | % | ||||||||
Debt financing and notes payable | 26,433 | 1,694 | 6.41 | % | ||||||||
Total interest-bearing liabilities | 2,849,262 | 12,840 | 0.45 | % | ||||||||
Other liabilities | 69,333 | |||||||||||
Shareholders’ equity | 522,183 | |||||||||||
Total liabilities and shareholders’ equity | $ | 4,853,480 | ||||||||||
Net interest spread (2) | 5.40 | % | ||||||||||
Net interest income and interest margin (1)(3) | $ | 226,683 | 5.54 | % | ||||||||
(1) | Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate. | |
(2) | Net interest spread represents the average yield earned on interest earning assets less the average rate paid on interest-bearing liabilities. | |
(3) | Net interest margin is computed by dividing net interest income by total average interest earning assets. |
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Year Ended December 31, 2009 | ||||||||||||
Interest | Rates | |||||||||||
Average | Income/ | Earned/ | ||||||||||
(Dollars in thousands) | Balance | Expense | Paid | |||||||||
Assets | ||||||||||||
Money market assets and funds sold | $ | 841 | $ | 3 | 0.36 | % | ||||||
Investment securities: | ||||||||||||
Available for sale | ||||||||||||
Taxable | 240,829 | 9,002 | 3.74 | % | ||||||||
Tax-exempt (1) | 166,669 | 11,217 | 6.73 | % | ||||||||
Held to maturity | ||||||||||||
Taxable | 307,763 | 13,971 | 4.54 | % | ||||||||
Tax-exempt (1) | 529,597 | 33,334 | 6.29 | % | ||||||||
Loans: | ||||||||||||
Commercial | ||||||||||||
Taxable | 629,027 | 36,360 | 5.78 | % | ||||||||
Tax-exempt (1) | 186,295 | 12,362 | 6.64 | % | ||||||||
Commercial real estate | 1,283,114 | 84,473 | 6.58 | % | ||||||||
Real estate construction | 79,425 | 3,213 | 4.05 | % | ||||||||
Real estate residential | 431,931 | 20,640 | 4.73 | % | ||||||||
Consumer | 617,169 | 37,023 | 6.00 | % | ||||||||
Total Loans (1) | 3,226,961 | 194,071 | 6.01 | % | ||||||||
Interest earning assets (1) | 4,472,660 | 261,598 | 5.85 | % | ||||||||
Other assets | 613,977 | |||||||||||
Total assets | $ | 5,086,637 | ||||||||||
Liabilities and shareholders’ equity | ||||||||||||
Deposits: | ||||||||||||
Noninterest bearing demand | $ | 1,354,534 | — | — | ||||||||
Savings and interest-bearing transaction | 1,648,095 | 4,677 | 0.28 | % | ||||||||
Time less than $100,000 | 458,117 | 4,506 | 0.98 | % | ||||||||
Time $100,000 or more | 607,642 | 5,366 | 0.88 | % | ||||||||
Total interest-bearing deposits | 2,713,854 | 14,549 | 0.54 | % | ||||||||
Short-term borrowed funds | 316,306 | 2,132 | 0.67 | % | ||||||||
Federal Home Loan Bank advances | 79,417 | 1,010 | 1.25 | % | ||||||||
Debt financing and notes payable | 26,567 | 1,689 | 6.36 | % | ||||||||
Total interest-bearing liabilities | 3,136,144 | 19,380 | 0.62 | % | ||||||||
Other liabilities | 71,635 | |||||||||||
Shareholders’ equity | 524,324 | |||||||||||
Total liabilities and shareholders’ equity | $ | 5,086,637 | ||||||||||
Net interest spread (2) | 5.23 | % | ||||||||||
Net interest income and interest margin (1)(3) | $ | 242,218 | 5.42 | % | ||||||||
(1) | Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate. | |
(2) | Net interest spread represents the average yield earned on interest earning assets less the average rate paid on interest-bearing liabilities. | |
(3) | Net interest margin is computed by dividing net interest income by total average interest earning assets. |
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Year Ended December 31, 2008 | ||||||||||||
Interest | Rates | |||||||||||
Average | Income/ | Earned/ | ||||||||||
(Dollars in thousands) | Balance | Expense | Paid | |||||||||
Assets | ||||||||||||
Money market assets and funds sold | $ | 817 | $ | 3 | 0.37 | % | ||||||
Investment securities: | ||||||||||||
Available for sale | ||||||||||||
Taxable | 205,138 | 8,854 | 4.32 | % | ||||||||
Tax-exempt (1) | 196,993 | 13,795 | 7.00 | % | ||||||||
Held to maturity | ||||||||||||
Taxable | 436,041 | 19,237 | 4.41 | % | ||||||||
Tax-exempt (1) | 551,120 | 34,328 | 6.23 | % | ||||||||
Loans: | ||||||||||||
Commercial | ||||||||||||
Taxable | 318,075 | 22,341 | 7.02 | % | ||||||||
Tax-exempt (1) | 208,155 | 13,575 | 6.52 | % | ||||||||
Commercial real estate | 835,925 | 58,913 | 7.05 | % | ||||||||
Real estate construction | 76,086 | 4,863 | 6.39 | % | ||||||||
Real estate residential | 468,140 | 22,683 | 4.85 | % | ||||||||
Consumer | 526,175 | 30,908 | 5.87 | % | ||||||||
Total Loans (1) | 2,432,556 | 153,283 | 6.30 | % | ||||||||
Interest earning assets (1) | 3,822,665 | 229,500 | 6.00 | % | ||||||||
Other assets | 397,098 | |||||||||||
Total assets | $ | 4,219,763 | ||||||||||
Liabilities and shareholders’ equity | ||||||||||||
Deposits: | ||||||||||||
Noninterest bearing demand | $ | 1,181,679 | — | — | ||||||||
Savings and interest-bearing transaction | 1,301,556 | 5,642 | 0.43 | % | ||||||||
Time less than $100,000 | 193,889 | 5,209 | 2.69 | % | ||||||||
Time $100,000 or more | 489,326 | 10,331 | 2.11 | % | ||||||||
Total interest-bearing deposits | 1,984,771 | 21,182 | 1.07 | % | ||||||||
Short-term borrowed funds | 549,438 | 9,958 | 1.81 | % | ||||||||
Debt financing and notes payable | 33,807 | 2,103 | 6.22 | % | ||||||||
Total interest-bearing liabilities | 2,568,016 | 33,243 | 1.29 | % | ||||||||
Other liabilities | 64,992 | |||||||||||
Shareholders’ equity | 405,076 | |||||||||||
Total liabilities and shareholders’ equity | $ | 4,219,763 | ||||||||||
Net interest spread (2) | 4.71 | % | ||||||||||
Net interest income and interest margin (1)(3) | $ | 196,257 | 5.13 | % | ||||||||
(1) | Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate. | |
(2) | Net interest spread represents the average yield earned on interest earning assets less the average rate paid on interest-bearing liabilities. | |
(3) | Net interest margin is computed by dividing net interest income by total average interest earning assets. |
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Years Ended December 31, | 2010 Compared with 2009 | |||||||||||
(In thousands) | Volume | Rate | Total | |||||||||
Increase (decrease) in interest and fee income: | ||||||||||||
Money market assets and funds sold | $ | 2 | $ | (3 | ) | $ | (1 | ) | ||||
Investment securities: | ||||||||||||
Available for sale Taxable | 1,950 | (2,146 | ) | (196 | ) | |||||||
Tax- exempt (1) | 1,106 | (341 | ) | 765 | ||||||||
Held to maturity Taxable | (5,782 | ) | (548 | ) | (6,330 | ) | ||||||
Tax- exempt (1) | (3,110 | ) | �� | (149 | ) | (3,259 | ) | |||||
Loans: | ||||||||||||
Commercial: | ||||||||||||
Taxable | (5,666 | ) | 3,446 | (2,220 | ) | |||||||
Tax- exempt (1) | (1,287 | ) | (134 | ) | (1,421 | ) | ||||||
Commercial real estate | (2,478 | ) | (240 | ) | (2,718 | ) | ||||||
Real estate construction | (480 | ) | 978 | 498 | ||||||||
Real estate residential | (3,363 | ) | (1,609 | ) | (4,972 | ) | ||||||
Consumer | (2,267 | ) | 46 | (2,221 | ) | |||||||
Total loans (1) | (15,541 | ) | 2,487 | (13,054 | ) | |||||||
Total decrease in interest and fee income (1) | (21,375 | ) | (700 | ) | (22,075 | ) | ||||||
Increase (decrease) in interest expense: | ||||||||||||
Deposits: | ||||||||||||
Savings/ interest-bearing | 80 | (1,214 | ) | (1,134 | ) | |||||||
Time less than $100,000 | (834 | ) | (1,903 | ) | (2,737 | ) | ||||||
Time $100,000 or more | (466 | ) | (1,494 | ) | (1,960 | ) | ||||||
Total interest-bearing | (1,220 | ) | (4,611 | ) | (5,831 | ) | ||||||
Short-term borrowed funds | (920 | ) | 779 | (141 | ) | |||||||
Federal Home Loan Bank advances | (645 | ) | 72 | (573 | ) | |||||||
Notes and mortgages payable | (9 | ) | 14 | 5 | ||||||||
Total decrease in interest expense | (2,794 | ) | (3,746 | ) | (6,540 | ) | ||||||
(Decrease) increase in net interest income (1) | $ | (18,581 | ) | $ | 3,046 | $ | (15,535 | ) | ||||
(1) | Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate. |
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Years Ended December 31, | 2009 Compared with 2008 | |||||||||||
(In thousands) | Volume | Rate | Total | |||||||||
Increase (decrease) in interest and fee income: | ||||||||||||
Money market assets and funds sold | $ | — | $ | — | $ | — | ||||||
Investment securities: | ||||||||||||
Available for sale Taxable | 1,412 | (1,264 | ) | 148 | ||||||||
Tax- exempt (1) | (2,063 | ) | (515 | ) | (2,578 | ) | ||||||
Held to maturity Taxable | (5,812 | ) | 546 | (5,266 | ) | |||||||
Tax- exempt (1) | (1,370 | ) | 376 | (994 | ) | |||||||
Loans: | ||||||||||||
Commercial: | ||||||||||||
Taxable | 18,549 | (4,530 | ) | 14,019 | ||||||||
Tax- exempt (1) | (1,452 | ) | 239 | (1,213 | ) | |||||||
Commercial real estate | 29,641 | (4,081 | ) | 25,560 | ||||||||
Real estate construction | 197 | (1,847 | ) | (1,650 | ) | |||||||
Real estate residential | (1,742 | ) | (301 | ) | (2,043 | ) | ||||||
Consumer | 5,435 | 680 | 6,115 | |||||||||
Total loans (1) | 50,628 | (9,840 | ) | 40,788 | ||||||||
Total increase (decrease) in interest and fee income (1) | 42,795 | (10,697 | ) | 32,098 | ||||||||
Increase (decrease) in interest expense: | ||||||||||||
Deposits: | ||||||||||||
Savings/ interest-bearing | 1,268 | (2,233 | ) | (965 | ) | |||||||
Time less than $100,000 | 4,022 | (4,725 | ) | (703 | ) | |||||||
Time $100,000 or more | 2,059 | (7,024 | ) | (4,965 | ) | |||||||
Total interest-bearing | 7,349 | (13,982 | ) | (6,633 | ) | |||||||
Short-term borrowed funds | (3,280 | ) | (4,546 | ) | (7,826 | ) | ||||||
Federal Home Loan Bank advances | 1,010 | — | 1,010 | |||||||||
Notes and mortgages payable | (460 | ) | 46 | (414 | ) | |||||||
Total increase (decrease) in interest expense | 4,619 | (18,482 | ) | (13,863 | ) | |||||||
Increase in net interest income (1) | $ | 38,176 | $ | 7,785 | $ | 45,961 | ||||||
(1) | Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate. |
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Years Ended December 31, | ||||||||||||
(In thousands) | 2010 | 2009 | 2008 | |||||||||
Service charges on deposit accounts | $ | 33,517 | $ | 36,392 | $ | 29,762 | ||||||
Merchant credit card fees | 9,057 | 9,068 | 10,525 | |||||||||
Debit card fees | 4,888 | 4,875 | 3,769 | |||||||||
ATM fees and interchange | 3,848 | 3,693 | 2,923 | |||||||||
Other service charges | 2,768 | 2,200 | 2,025 | |||||||||
Trust fees | 1,705 | 1,429 | 1,227 | |||||||||
Check sale income | 893 | 887 | 736 | |||||||||
Safe deposit rental | 678 | 697 | 593 | |||||||||
Financial services commissions | 747 | 583 | 830 | |||||||||
Gain on acquisition | 178 | 48,844 | — | |||||||||
Securities losses and impairment | — | — | (62,653 | ) | ||||||||
Gain on sale of Visa common stock | — | — | 5,698 | |||||||||
Other noninterest income | 3,175 | 3,343 | 2,509 | |||||||||
Total | $ | 61,454 | $ | 112,011 | $ | (2,056 | ) | |||||
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Years Ended December 31, | ||||||||||||
(Dollars in thousands) | 2010 | 2009 | 2008 | |||||||||
Salaries and related benefits | $ | 61,748 | $ | 65,391 | $ | 51,492 | ||||||
Occupancy | 15,633 | 18,748 | 13,703 | |||||||||
Outsourced data processing | 8,957 | 9,000 | 8,440 | |||||||||
Amortization of intangible assets | 6,333 | 6,697 | 3,221 | |||||||||
FDIC insurance assessments | 5,168 | 6,260 | 518 | |||||||||
Equipment | 4,325 | 5,859 | 3,801 | |||||||||
Courier service | 3,495 | 3,808 | 3,322 | |||||||||
Professional fees | 3,376 | 3,583 | 2,624 | |||||||||
Loan expenses | 1,639 | 2,031 | 911 | |||||||||
Telephone | 1,590 | 1,977 | 1,368 | |||||||||
Postage | 1,540 | 2,110 | 1,487 | |||||||||
Stationery and supplies | 1,285 | 1,555 | 1,170 | |||||||||
OREO expense | 895 | 616 | 255 | |||||||||
Advertising and public relations | 880 | 995 | 843 | |||||||||
Operational losses | 828 | 953 | 845 | |||||||||
In-house meetings | 726 | 1,177 | 837 | |||||||||
Customer checks | 660 | 749 | 920 | |||||||||
Correspondent service charges | 280 | 1,072 | 634 | |||||||||
Visa litigation | — | — | (2,338 | ) | ||||||||
Other | 7,789 | 8,195 | 6,708 | |||||||||
Total | $ | 127,147 | $ | 140,776 | $ | 100,761 | ||||||
Noninterest expense to revenues (“efficiency ratio”)(FTE) | 44.1 | % | 39.7 | % | 51.9 | % | ||||||
Average full-time equivalent staff | 1,015 | 1,115 | 891 | |||||||||
Total average assets per full-time staff | $ | 4,782 | $ | 4,562 | $ | 4,736 | ||||||
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At December 31, | ||||||||||||
(In thousands) | 2010 | 2009 | 2008 | |||||||||
U.S. Treasury securities | $ | 3,542 | $ | 2,987 | $ | 3,082 | ||||||
Securities of U.S. Government sponsored entities | 172,877 | 21,041 | 11,077 | |||||||||
Residential mortgage backed securities | 109,829 | 146,005 | 41,240 | |||||||||
Commercial mortgage backed securities | 5,065 | — | — | |||||||||
Obligations of States and political subdivisions | 261,133 | 158,193 | 161,046 | |||||||||
Residential collateralized mortgage obligations | 25,603 | 41,410 | 59,851 | |||||||||
Asset-backed securities | 8,286 | 8,339 | 6,447 | |||||||||
FHLMC and FNMA stock | 655 | 1,573 | 821 | |||||||||
Corporate securities | 79,191 | — | — | |||||||||
Other securities | 5,303 | 4,660 | 4,890 | |||||||||
Total | $ | 671,484 | $ | 384,208 | $ | 288,454 | ||||||
After one | After five | |||||||||||||||||||||||||||
At December 31, 2010, | Within | but within | but within | After ten | Mortgage- | |||||||||||||||||||||||
(Dollars in thousands) | one year | five years | ten years | years | backed | Other | Total | |||||||||||||||||||||
U.S. Treasury securities | $ | — | $ | 3,542 | $ | — | $ | — | $ | — | $ | — | $ | 3,542 | ||||||||||||||
Interest rate | — | % | 1.03 | % | — | % | — | % | — | % | — | % | 1.03 | % | ||||||||||||||
U.S. Government sponsored entities | — | 171,797 | 1,080 | — | — | — | 172,877 | |||||||||||||||||||||
Interest rate | — | 1.71 | % | 5.29 | % | — | — | — | 1.74 | % | ||||||||||||||||||
States and political subdivisions | 15,995 | 65,540 | 63,723 | 115,875 | — | — | 261,133 | |||||||||||||||||||||
Interest rate (FTE) | 4.29 | % | 6.90 | % | 6.51 | % | 6.15 | % | — | — | 6.35 | % | ||||||||||||||||
Asset-backed securities | — | — | — | 8,286 | — | — | 8,286 | |||||||||||||||||||||
Interest rate (FTE) | — | — | — | 0.51 | % | — | — | 0.51 | % | |||||||||||||||||||
Corporate securities | 5,465 | 73,726 | — | — | — | — | 79,191 | |||||||||||||||||||||
Interest rate | 0.67 | % | 1.84 | % | — | — | — | — | 1.77 | % | ||||||||||||||||||
Subtotal | 21,460 | 314,605 | 64,803 | 124,161 | — | — | 525,029 | |||||||||||||||||||||
Interest rate | 3.37 | % | 2.81 | % | 6.49 | % | 5.77 | % | — | — | 4.01 | % | ||||||||||||||||
Mortgage backed securities and residential collateralized mortgage obligations | — | — | — | — | 140,497 | — | 140,497 | |||||||||||||||||||||
Interest rate | — | — | — | — | 4.63 | % | — | 4.63 | % | |||||||||||||||||||
Other without set maturities | — | — | — | — | — | 5,958 | 5,958 | |||||||||||||||||||||
Interest rate | — | — | — | — | — | 6.69 | % | 6.69 | % | |||||||||||||||||||
Total | $ | 21,460 | $ | 314,605 | $ | 64,803 | $ | 124,161 | $ | 140,497 | $ | 5,958 | $ | 671,484 | ||||||||||||||
Interest rate | 3.37 | % | 2.81 | % | 6.49 | % | 5.77 | % | 4.63 | % | 6.69 | % | 4.18 | % | ||||||||||||||
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At December 31, | ||||||||||||
(In thousands) | 2010 | 2009 | 2008 | |||||||||
Securities of U.S. Government sponsored entities | $ | — | $ | — | $ | 110,000 | ||||||
Residential mortgage backed securities | 40,531 | 61,893 | 85,676 | |||||||||
Obligations of States and political subdivisions | 455,372 | 516,596 | 545,237 | |||||||||
Residential collateralized mortgage obligations | 84,825 | 148,446 | 208,412 | |||||||||
Total | $ | 580,728 | $ | 726,935 | $ | 949,325 | ||||||
Fair value | $ | 594,711 | $ | 736,270 | $ | 950,210 | ||||||
After one | After five | |||||||||||||||||||||||
At December 31, 2010, | Within | but within | but within | After ten | Mortgage- | |||||||||||||||||||
(Dollars in thousands) | One year | five years | ten years | years | backed | Total | ||||||||||||||||||
States and political subdivisions | $ | 6,057 | $ | 92,837 | $ | 351,407 | $ | 5,071 | $ | — | $ | 455,372 | ||||||||||||
Interest rate (FTE) | 6.48 | % | 5.95 | % | 6.17 | % | 3.02 | % | — | 6.15 | % | |||||||||||||
Mortgage backed securities and residential collateralized mortgage obligations | — | — | — | — | 125,356 | 125,356 | ||||||||||||||||||
Interest rate | — | — | — | — | 4.37 | % | 4.37 | % | ||||||||||||||||
Total | $ | 6,057 | $ | 92,837 | $ | 351,407 | $ | 5,071 | $ | 125,356 | $ | 580,728 | ||||||||||||
Interest rate | 6.48 | % | 5.95 | % | 6.17 | % | 3.02 | % | 4.37 | % | 5.77 | % | ||||||||||||
At December 31, | ||||||||||||||||||||
(In thousands) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||
Commercial | $ | 474,183 | $ | 498,594 | $ | 524,786 | $ | 532,650 | $ | 556,564 | ||||||||||
Commercial real estate | 757,140 | 801,008 | 817,423 | 856,581 | 907,259 | |||||||||||||||
Real estate construction | 26,145 | 32,156 | 52,664 | 97,464 | 70,650 | |||||||||||||||
Real estate residential | 310,196 | 371,197 | 458,447 | 484,549 | 507,553 | |||||||||||||||
Consumer | 461,877 | 498,133 | 529,106 | 531,732 | 489,708 | |||||||||||||||
Total loans | $ | 2,029,541 | $ | 2,201,088 | $ | 2,382,426 | $ | 2,502,976 | $ | 2,531,734 | ||||||||||
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At December 31, | ||||||||
(In thousands) | 2010 | 2009 | ||||||
Commercial | $ | 168,985 | $ | 253,349 | ||||
Commercial real estate | 390,682 | 445,440 | ||||||
Real estate construction | 28,380 | 40,460 | ||||||
Real estate residential | 18,374 | 18,521 | ||||||
Consumer | 86,551 | 97,531 | ||||||
Total loans | $ | 692,972 | $ | 855,301 | ||||
At December 31, | ||||
(In thousands) | 2010 | |||
Commercial | $ | 15,420 | ||
Commercial real estate | 122,888 | |||
Real estate construction | 21,620 | |||
Real estate residential | 7,055 | |||
Consumer | 32,588 | |||
Total loans | $ | 199,571 | ||
At December 31, 2010 | Within | One to | After | |||||||||||||
(In thousands) | One Year | Five Years | Five Years | Total | ||||||||||||
Commercial and commercial real estate * | $ | 758,864 | $ | 979,298 | $ | 191,136 | $ | 1,929,298 | ||||||||
Real estate construction | 76,145 | — | — | 76,145 | ||||||||||||
Total | $ | 835,009 | $ | 979,298 | $ | 191,136 | $ | 2,005,443 | ||||||||
Loans with fixed interest rates | $ | 204,968 | $ | 281,159 | $ | 180,770 | $ | 666,897 | ||||||||
Loans with floating or adjustable interest rates | 630,041 | 698,139 | 10,366 | 1,338,546 | ||||||||||||
Total | $ | 835,009 | $ | 979,298 | $ | 191,136 | $ | 2,005,443 | ||||||||
* | Includes demand loans |
• | 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. |
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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 | ||
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At December 31, | ||||||||
2010 | 2009 | |||||||
(In thousands) | ||||||||
Classified Purchased Covered Assets | ||||||||
Classified loans | $ | 173,064 | $ | 181,516 | ||||
Repossessed loan collateral | 21,791 | 23,297 | ||||||
Total | $ | 194,855 | $ | 204,813 | ||||
At December 31, | ||||||||
2010 | 2009 | |||||||
(Dollars in thousands) | ||||||||
Nonperforming Purchased Covered Assets | ||||||||
Nonperforming, nonaccrual loans | $ | 28,581 | $ | 66,965 | ||||
Performing, nonaccrual loans | 18,564 | 18,183 | ||||||
Total nonaccrual loans | 47,145 | 85,148 | ||||||
Loans 90 days past due and still accruing | 355 | 210 | ||||||
Total nonperforming loans | 47,500 | 85,358 | ||||||
Repossessed loan collateral | 21,791 | 23,297 | ||||||
Total | $ | 69,291 | $ | 108,655 | ||||
As a percentage of total purchased covered assets | 9.69 | % | 12.37 | % |
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At December 31, | ||||
2010 | ||||
(In thousands) | ||||
Classified Purchased Non-covered Assets | ||||
Classified loans | $ | 51,253 | ||
Repossessed loan collateral | 2,196 | |||
Total | $ | 53,449 | ||
At December 31, | ||||
2010 | ||||
(Dollars in thousands) | ||||
Nonperforming Purchased Non-covered Assets | ||||
Nonperforming, nonaccrual loans | $ | 29,311 | ||
Performing, nonaccrual loans | 9,852 | |||
Total nonaccrual loans | 39,163 | |||
Loans 90 days past due and still accruing | 1 | |||
Total nonperforming loans | 39,164 | |||
Repossessed loan collateral | 2,196 | |||
Total | $ | 41,360 | ||
As a percentage of total purchased non-covered assets | 20.50 | % |
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At December 31, | ||||||||
2010 | 2009 | |||||||
(In thousands) | ||||||||
Classified Originated Assets | ||||||||
Classified loans | $ | 61,980 | $ | 57,241 | ||||
Repossessed loan collateral | 11,424 | 12,642 | ||||||
Total | $ | 73,404 | $ | 69,883 | ||||
At December 31, | ||||||||
2010 | 2009 | |||||||
(Dollars in thousands) | ||||||||
Nonperforming Originated Assets | ||||||||
Nonperforming, nonaccrual loans | $ | 20,845 | $ | 19,837 | ||||
Performing, nonaccrual loans | 23 | 25 | ||||||
Total nonaccrual loans | 20,868 | 19,862 | ||||||
Loans 90 days past due and still accruing | 766 | 800 | ||||||
Total nonperforming loans | 21,634 | 20,662 | ||||||
Repossessed loan collateral | 11,424 | 12,642 | ||||||
Total | $ | 33,058 | $ | 33,304 | ||||
As a percentage of total originated assets | 1.62 | % | 1.50 | % |
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At December 31, | ||||||||
2010 | 2009 | |||||||
(Dollars in thousands) | ||||||||
Originated Commercial Loans: | ||||||||
30-89 days delinquent: | ||||||||
Dollar amount | $ | 7,274 | $ | 10,677 | ||||
Percentage of total originated commercial loans | 1.53 | % | 2.14 | % | ||||
90 or more days delinquent: | ||||||||
Dollar amount | $ | — | $ | — | ||||
Percentage of total originated commercial loans | — | % | — | % | ||||
Originated Construction Loans: | ||||||||
30-89 days delinquent: | ||||||||
Dollar amount | $ | 4,022 | $ | 149 | ||||
Percentage of total originated construction loans | 15.38 | % | 0.46 | % | ||||
90 or more days delinquent: | ||||||||
Dollar amount | $ | — | $ | — | ||||
Percentage of total originated construction loans | — | % | — | % | ||||
Originated Commercial Real Estate Loans: | ||||||||
30-89 days delinquent: | ||||||||
Dollar amount | $ | 14,037 | $ | 12,158 | ||||
Percentage of total originated commercial real estate loans | 1.85 | % | 1.52 | % | ||||
90 or more days delinquent: | ||||||||
Dollar amount | $ | — | $ | — | ||||
Percentage of total originated commercial real estate loans | — | % | — | % |
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At December 31, | ||||||||
2010 | 2009 | |||||||
(Dollars in thousands) | ||||||||
Originated Residential Real Estate Loans: | ||||||||
30-89 days delinquent: | ||||||||
Dollar amount | $ | 2,552 | $ | 3,064 | ||||
Percentage of total originated residential real estate loans | 0.82 | % | 0.83 | % | ||||
90 or more days delinquent: | ||||||||
Dollar amount | $ | — | $ | — | ||||
Percentage of total originated residential real estate loans | — | % | — | % | ||||
Originated Indirect Automobile Loans: | ||||||||
30-89 days delinquent: | ||||||||
Dollar amount | $ | 6,382 | $ | 6,506 | ||||
Percentage of total originated indirect automobile loans | 1.60 | % | 1.49 | % | ||||
90 or more days delinquent: | ||||||||
Dollar amount | $ | 647 | $ | 723 | ||||
Percentage of total originated indirect automobile loans | 0.16 | % | 0.17 | % | ||||
Other Originated Consumer Loans: | ||||||||
30-89 days delinquent: | ||||||||
Dollar amount | $ | 488 | $ | 762 | ||||
Percentage of total other originated consumer loans | 0.79 | % | 1.25 | % | ||||
90 or more days delinquent: | ||||||||
Dollar amount | $ | 119 | $ | 77 | ||||
Percentage of total other originated consumer loans | 0.19 | % | 0.13 | % |
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Year ended December 31, | ||||||||||||||||||||
(Dollars in thousands) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||
Total originated loans outstanding at period end | $ | 2,029,541 | $ | 2,201,088 | $ | 2,382,426 | $ | 2,502,976 | $ | 2,531,734 | ||||||||||
Average originated loans outstanding during the period | 2,111,506 | 2,329,019 | 2,432,556 | 2,511,763 | 2,576,791 | |||||||||||||||
Analysis of the Allowance | ||||||||||||||||||||
Balance, beginning of period | $ | 43,736 | $ | 47,563 | $ | 55,799 | $ | 59,023 | $ | 59,537 | ||||||||||
Provision for loan losses | 11,200 | 10,500 | 2,700 | 700 | 445 | |||||||||||||||
Provision for unfunded credit commitments | — | (400 | ) | (200 | ) | (400 | ) | 5 | ||||||||||||
Loans charged off: | ||||||||||||||||||||
Commercial | (6,844 | ) | (6,066 | ) | (1,262 | ) | (1,648 | ) | (1,176 | ) | ||||||||||
Commercial real estate | (1,256 | ) | — | (34 | ) | — | — | |||||||||||||
Real estate construction | (1,668 | ) | (1,333 | ) | (5,348 | ) | — | — | ||||||||||||
Real estate residential | (1,686 | ) | (506 | ) | (131 | ) | — | — | ||||||||||||
Consumer | (8,814 | ) | (9,362 | ) | (5,638 | ) | (4,033 | ) | (2,446 | ) | ||||||||||
Total chargeoffs | (20,268 | ) | (17,267 | ) | (12,413 | ) | (5,681 | ) | (3,622 | ) | ||||||||||
Recoveries of loans previously charged off: | ||||||||||||||||||||
Commercial | 948 | 490 | 331 | 1,060 | 1,149 | |||||||||||||||
Commercial real estate | 4 | — | — | — | — | |||||||||||||||
Real estate construction | — | 664 | — | — | — | |||||||||||||||
Real estate residential | — | — | — | — | — | |||||||||||||||
Consumer | 2,709 | 2,186 | 1,346 | 1,097 | 1,509 | |||||||||||||||
Total recoveries | 3,661 | 3,340 | 1,677 | 2,157 | 2,658 | |||||||||||||||
Net loan losses | (16,607 | ) | (13,927 | ) | (10,736 | ) | (3,524 | ) | (964 | ) | ||||||||||
Balance, end of period | $ | 38,329 | $ | 43,736 | $ | 47,563 | $ | 55,799 | $ | 59,023 | ||||||||||
Components: | ||||||||||||||||||||
Allowance for loan losses | $ | 35,636 | $ | 41,043 | $ | 44,470 | $ | 52,506 | $ | 55,330 | ||||||||||
Reserve for unfunded credit commitments | 2,693 | 2,693 | 3,093 | 3,293 | 3,693 | |||||||||||||||
Allowance for credit losses | $ | 38,329 | $ | 43,736 | $ | 47,563 | $ | 55,799 | $ | 59,023 | ||||||||||
Net loan losses to average originated loans | 0.79 | % | 0.60 | % | 0.44 | % | 0.14 | % | 0.04 | % | ||||||||||
Allowance for loan losses as a percentage of originated loans outstanding | 1.76 | % | 1.86 | % | 1.87 | % | 2.10 | % | 2.19 | % |
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2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||||||||||||||||||||||
Loans as | Loans as | Loans as | Loans as | Loans as | ||||||||||||||||||||||||||||||||||||
Percent | Percent | Percent | Percent | Percent | ||||||||||||||||||||||||||||||||||||
Allocation | of Total | Allocation | of Total | Allocation | of Total | Allocation | of Total | Allocation | of Total | |||||||||||||||||||||||||||||||
of the | Non- | of the | Non- | of the | Non- | of the | Non- | of the | Non- | |||||||||||||||||||||||||||||||
At December 31, | Allowance | covered | Allowance | covered | Allowance | covered | Allowance | covered | Allowance | covered | ||||||||||||||||||||||||||||||
(Dollars in thousands) | Balance | Loans | Balance | Loans | Balance | Loans | Balance | Loans | Balance | Loans | ||||||||||||||||||||||||||||||
Commercial | $ | 9,878 | 23 | % | $ | 9,190 | 23 | % | $ | 12,833 | 22 | % | $ | 16,890 | 21 | % | $ | 14,454 | 22 | % | ||||||||||||||||||||
Commercial real estate | 9,607 | 38 | % | 9,918 | 36 | % | 10,941 | 35 | % | 10,343 | 35 | % | 8,763 | 36 | % | |||||||||||||||||||||||||
Real estate construction | 3,559 | 1 | % | 2,968 | 1 | % | 4,725 | 2 | % | 5,403 | 4 | % | 3,942 | 3 | % | |||||||||||||||||||||||||
Real estate residential | 617 | 15 | % | 1,529 | 17 | % | 367 | 19 | % | 388 | 19 | % | 1,219 | 20 | % | |||||||||||||||||||||||||
Consumer | 6,982 | 23 | % | 8,424 | 23 | % | 6,331 | 22 | % | 4,626 | 21 | % | 4,132 | 19 | % | |||||||||||||||||||||||||
Unallocated portion | 7,686 | — | 11,707 | — | 12,366 | — | 18,149 | — | 26,513 | — | ||||||||||||||||||||||||||||||
Total | $ | 38,329 | 100 | % | $ | 43,736 | 100 | % | $ | 47,563 | 100 | % | $ | 55,799 | 100 | % | $ | 59,023 | 100 | % | ||||||||||||||||||||
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At December 31, | ||||||||
(In thousands) | 2010 | 2009 | ||||||
Total impaired loans | $ | 12,748 | $ | 2,447 | ||||
Specific reserves | $ | 1,365 | $ | 617 | ||||
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At December 31, 2010 | Within | Over One to | Over Three to | After | ||||||||||||||||
(In thousands) | One Year | Three Years | Five Years | Five Years | Total | |||||||||||||||
Long-Term Debt Obligations | $ | — | $ | 15,000 | $ | — | $ | 10,000 | $ | 25,000 | ||||||||||
Federal Home Loan Bank advances | 20,000 | 20,000 | 20,000 | — | 60,000 | |||||||||||||||
Operating Lease Obligations | 9,192 | 14,790 | 7,812 | 1,397 | 33,191 | |||||||||||||||
Purchase Obligations | 7,932 | — | — | — | 7,932 | |||||||||||||||
Total | $ | 37,124 | $ | 49,790 | $ | 27,812 | $ | 11,397 | $ | 126,123 | ||||||||||
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Minimum | ||||||||||||||||
Regulatory | Well | |||||||||||||||
At December 31, | 2010 | 2009 | Requirement | Capitalized | ||||||||||||
Tier I Capital | 14.21 | % | 13.20 | % | 4.00 | % | 6.00 | % | ||||||||
Total Capital | 15.50 | % | 14.50 | % | 8.00 | % | 10.00 | % | ||||||||
Leverage ratio | 8.44 | % | 7.60 | % | 4.00 | % | 5.00 | % |
Minimum | ||||||||||||||||
Regulatory | Well | |||||||||||||||
At December 31, | 2010 | 2009 | Requirement | Capitalized | ||||||||||||
Tier I Capital | 13.87 | % | 13.39 | % | 4.00 | % | 6.00 | % | ||||||||
Total Capital | 15.33 | % | 14.88 | % | 8.00 | % | 10.00 | % | ||||||||
Leverage ratio | 8.19 | % | 7.67 | % | 4.00 | % | 5.00 | % |
2010 | 2009 | 2008 | ||||||||||||||||||||||||||||||||||
Percentage | Percentage | Percentage | ||||||||||||||||||||||||||||||||||
Years Ended December 31, | Average | of Total | Average | of Total | Average | of Total | ||||||||||||||||||||||||||||||
(Dollars in thousands) | Balance | Deposits | Rate | Balance | Deposits | Rate | Balance | Deposits | Rate | |||||||||||||||||||||||||||
Noninterest bearing demand | $ | 1,412,702 | 35.3 | % | — | % | $ | 1,354,534 | 33.3 | % | — | % | $ | 1,181,679 | 37.3 | % | — | % | ||||||||||||||||||
Interest bearing: | ||||||||||||||||||||||||||||||||||||
Transaction | 682,278 | 17.1 | % | 0.13 | % | 696,638 | 17.1 | % | 0.14 | % | 541,727 | 17.1 | % | 0.26 | % | |||||||||||||||||||||
Savings | 994,604 | 24.9 | % | 0.27 | % | 951,457 | 23.4 | % | 0.39 | % | 759,829 | 24.0 | % | 0.56 | % | |||||||||||||||||||||
Time less than $100 thousand | 358,096 | 8.9 | % | 0.49 | % | 458,117 | 11.3 | % | 0.98 | % | 193,889 | 6.1 | % | 2.69 | % | |||||||||||||||||||||
Time $100 thousand or more | 550,810 | 13.8 | % | 0.62 | % | 607,642 | 14.9 | % | 0.88 | % | 489,326 | 15.5 | % | 2.11 | % | |||||||||||||||||||||
Total | $ | 3,998,490 | 100.0 | % | 0.34 | % | $ | 4,068,388 | 100.0 | % | 0.54 | % | $ | 3,166,450 | 100.0 | % | 1.07 | % | ||||||||||||||||||
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December 31, | ||||
(In thousands) | 2010 | |||
2011 | $ | 772,138 | ||
2012 | 60,367 | |||
2013 | 26,034 | |||
2014 | 12,689 | |||
2015 | 20,778 | |||
Thereafter | 3,570 | |||
Total | $ | 895,576 | ||
December 31, | ||||
(In thousands) | 2010 | |||
Three months or less | $ | 410,094 | ||
Over three through six months | 52,355 | |||
Over six through twelve months | 46,453 | |||
Over twelve months | 45,027 | |||
Total | $ | 553,929 | ||
At December 31, | ||||||||||||
(In thousands) | 2010 | 2009 | 2008 | |||||||||
Federal funds purchased | $ | — | $ | — | $ | 335,000 | ||||||
Other borrowed funds: | ||||||||||||
Customer sweep accounts | 105,237 | 109,332 | 119,015 | |||||||||
Term repurchase agreements | — | 99,044 | — | |||||||||
Securities sold under repurchase agreements with customers | 1,148 | 3,102 | 3,260 | |||||||||
Line of credit | 1,000 | 15,700 | — | |||||||||
Total short term borrowings | $ | 107,385 | $ | 227,178 | $ | 457,275 | ||||||
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Years Ended December 31, | ||||||||||||
(Dollars in thousands) | 2010 | 2009 | 2008 | |||||||||
Federal funds purchased balances and rates paid on outstanding amount: | ||||||||||||
Average balance for the year | $ | — | $ | 107,732 | $ | 411,488 | ||||||
Maximum month-end balance during the year | — | 365,000 | 665,000 | |||||||||
Average interest rate for the year | — | % | 0.18 | % | 2.17 | % | ||||||
Average interest rate at period end | — | % | — | % | 0.16 | % | ||||||
Sweep accounts balances and rates paid on outstanding amount: | ||||||||||||
Average balance for the year | $ | 101,690 | $ | 113,167 | $ | 126,394 | ||||||
Maximum month-end balance during the year | 116,179 | 124,557 | 134,610 | |||||||||
Average interest rate for the year | 0.32 | % | 0.41 | % | 0.57 | % | ||||||
Average interest rate at period end | 0.22 | % | 0.35 | % | 0.53 | % | ||||||
Term repurchase agreements balances and rates paid outstanding amount: | ||||||||||||
Average balance for the year | $ | 94,842 | $ | 90,344 | $ | — | ||||||
Maximum month-end balance during the year | 99,920 | 99,044 | — | |||||||||
Average interest rate for the year | 1.61 | % | 1.53 | % | — | % | ||||||
Average interest rate at period end | — | % | 1.55 | % | — | % | ||||||
Securities sold under repurchase agreements balances and rates paid outstanding amount: | ||||||||||||
Average balance for the year | $ | 2,314 | $ | 2,991 | $ | 6,698 | ||||||
Maximum month-end balance during the year | 3,380 | 3,567 | 8,644 | |||||||||
Average interest rate for the year | 0.42 | % | 0.61 | % | 1.87 | % | ||||||
Average interest rate at period end | 0.35 | % | 0.51 | % | 1.06 | % | ||||||
Line of credit balances and rates paid outstanding amount: | ||||||||||||
Average balance for the year | $ | 3,817 | $ | 2,071 | $ | 4,858 | ||||||
Maximum month-end balance during the year | 9,200 | 17,877 | 17,808 | |||||||||
Average interest rate for the year | 3.42 | % | 3.13 | % | 3.47 | % | ||||||
Average interest rate at period end | 4.10 | % | 2.99 | % | — | % |
At and for the years ended December 31, | 2010 | 2009 | 2008 | |||||||||
Return on average total assets | 1.95 | % | 2.39 | % | 1.42 | % | ||||||
Return on average common shareholders’ equity | 18.11 | % | 25.84 | % | 14.77 | % | ||||||
Average shareholders’ equity as a percentage of: | ||||||||||||
Average total assets | 10.76 | % | 10.31 | % | 9.60 | % | ||||||
Average total loans | 17.68 | % | 16.25 | % | 16.65 | % | ||||||
Average total deposits | 13.06 | % | 12.89 | % | 12.79 | % | ||||||
Common dividend payout ratio | 45 | % | 34 | % | 68 | % |
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Westamerica Bancorporation:
/s/ KPMG LLP |
February 25, 2011
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December 31, | 2010 | 2009 | ||||||
Assets | ||||||||
Cash and due from banks | $ | 338,793 | $ | 361,135 | ||||
Money market assets | 392 | 442 | ||||||
Investment securities available for sale | 671,484 | 384,208 | ||||||
Investment securities held to maturity (fair values of $594,711 at December 31, 2010 and $736,270 at December 31, 2009) | 580,728 | 726,935 | ||||||
Purchased covered loans | 692,972 | 855,301 | ||||||
Purchased non-covered loans | 199,571 | — | ||||||
Originated loans | 2,029,541 | 2,201,088 | ||||||
Allowance for loan losses | (35,636 | ) | (41,043 | ) | ||||
Total loans | 2,886,448 | 3,015,346 | ||||||
Non-covered other real estate owned | 13,620 | 12,642 | ||||||
Covered other real estate owned | 21,791 | 23,297 | ||||||
Premises and equipment, net | 36,278 | 38,098 | ||||||
Identifiable intangibles | 34,604 | 35,667 | ||||||
Goodwill | 121,673 | 121,699 | ||||||
Interest receivable and other assets | 225,713 | 256,032 | ||||||
Total Assets | $ | 4,931,524 | $ | 4,975,501 | ||||
Liabilities | ||||||||
Deposits: | ||||||||
Noninterest bearing deposits | $ | 1,454,663 | $ | 1,428,432 | ||||
Interest bearing deposits | 2,678,298 | 2,631,776 | ||||||
Total deposits | 4,132,961 | 4,060,208 | ||||||
Short-term borrowed funds | 107,385 | 227,178 | ||||||
Federal Home Loan Bank advances | 61,698 | 85,470 | ||||||
Debt financing and notes payable | 26,363 | 26,497 | ||||||
Liability for interest, taxes and other expenses | 57,830 | 70,700 | ||||||
Total Liabilities | 4,386,237 | 4,470,053 | ||||||
Shareholders’ Equity | ||||||||
Common Stock (no par value) | ||||||||
Authorized — 150,000 shares | ||||||||
Issued and outstanding — 29,090 at December 31, 2010 and 29,208 at December 31, 2009 | 378,885 | 366,247 | ||||||
Deferred compensation | 2,724 | 2,485 | ||||||
Accumulated other comprehensive Income | 159 | 3,714 | ||||||
Retained earnings | 163,519 | 133,002 | ||||||
Total Shareholders’ Equity | 545,287 | 505,448 | ||||||
Total Liabilities and Shareholders’ Equity | $ | 4,931,524 | $ | 4,975,501 | ||||
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For the years ended December 31, | 2010 | 2009 | 2008 | |||||||||
Interest and Fee Income | ||||||||||||
Loans | $ | 177,224 | $ | 189,801 | $ | 148,659 | ||||||
Money market assets and funds sold | 2 | 3 | 3 | |||||||||
Investment securities available for sale | 16,766 | 16,547 | 18,211 | |||||||||
Investment securities held to maturity | 27,163 | 35,598 | 41,596 | |||||||||
Total Interest and Fee Income | 221,155 | 241,949 | 208,469 | |||||||||
Interest Expense | ||||||||||||
Deposits | 8,718 | 14,549 | 21,182 | |||||||||
Short-term borrowed funds | 1,991 | 2,132 | 9,958 | |||||||||
Federal Home Loan Bank advances | 437 | 1,010 | — | |||||||||
Debt financing and notes payable | 1,694 | 1,689 | 2,103 | |||||||||
Total Interest Expense | 12,840 | 19,380 | 33,243 | |||||||||
Net Interest Income | 208,315 | 222,569 | 175,226 | |||||||||
Provision for Loan Losses | 11,200 | 10,500 | 2,700 | |||||||||
Net Interest Income After Provision for Loan Losses | 197,115 | 212,069 | 172,526 | |||||||||
Noninterest Income | ||||||||||||
Service charges on deposit accounts | 33,517 | 36,392 | 29,762 | |||||||||
Merchant credit card | 9,057 | 9,068 | 10,525 | |||||||||
Debit card | 4,888 | 4,875 | 3,769 | |||||||||
ATM and interchange | 3,848 | 3,693 | 2,923 | |||||||||
Trust fees | 1,705 | 1,429 | 1,227 | |||||||||
Financial services commissions | 747 | 583 | 830 | |||||||||
Gain on acquisition | 178 | 48,844 | — | |||||||||
Net losses from equity securities | — | — | (56,955 | ) | ||||||||
Other | 7,514 | 7,127 | 5,863 | |||||||||
Total Noninterest Income (Loss) | 61,454 | 112,011 | (2,056 | ) | ||||||||
Noninterest Expense | ||||||||||||
Salaries and related benefits | 61,748 | 65,391 | 51,492 | |||||||||
Occupancy | 15,633 | 18,748 | 13,703 | |||||||||
Outsourced data processing services | 8,957 | 9,000 | 8,440 | |||||||||
Amortization of intangibles | 6,333 | 6,697 | 3,221 | |||||||||
FDIC insurance assessments | 5,168 | 6,260 | 518 | |||||||||
Furniture and equipment | 4,325 | 5,859 | 3,801 | |||||||||
Courier Service | 3,495 | 3,808 | 3,322 | |||||||||
Professional fees | 3,376 | 3,583 | 2,624 | |||||||||
Visa litigation | — | — | (2,338 | ) | ||||||||
Other | 18,112 | 21,430 | 15,978 | |||||||||
Total Noninterest Expense | 127,147 | 140,776 | 100,761 | |||||||||
Income Before Income Taxes | 131,422 | 183,304 | 69,709 | |||||||||
Provision for income taxes | 36,845 | 57,878 | 9,874 | |||||||||
Net Income | 94,577 | 125,426 | 59,835 | |||||||||
Preferred stock dividends and discount accretion | — | 3,963 | — | |||||||||
Net Income Applicable to Common Equity | $ | 94,577 | $ | 121,463 | $ | 59,835 | ||||||
Average Common Shares Outstanding | 29,166 | 29,105 | 28,892 | |||||||||
Diluted Average Common Shares Outstanding | 29,471 | 29,353 | 29,273 | |||||||||
Per Common Share Data | ||||||||||||
Basic earnings | $ | 3.24 | $ | 4.17 | $ | 2.07 | ||||||
Diluted earnings | 3.21 | 4.14 | 2.04 | |||||||||
Dividends paid | 1.44 | 1.41 | 1.39 |
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Accumulated | ||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||
Preferred | Common | Deferred | Comprehensive | Retained | ||||||||||||||||||||||||
Shares | Stock | Stock | Compensation | (Loss) Income | Earnings | Total | ||||||||||||||||||||||
December 31, 2007 | 29,018 | $ | — | $ | 334,211 | $ | 2,990 | $ | (4,520 | ) | $ | 61,922 | $ | 394,603 | ||||||||||||||
Comprehensive income | ||||||||||||||||||||||||||||
Net income for the year 2008 | 59,835 | 59,835 | ||||||||||||||||||||||||||
Other comprehensive income, net of tax: | ||||||||||||||||||||||||||||
Increase in net unrealized gains on securities available for sale | 5,524 | 5,524 | ||||||||||||||||||||||||||
Post-retirement benefit transition obligation amortization | 36 | 36 | ||||||||||||||||||||||||||
Total comprehensive income | 65,395 | |||||||||||||||||||||||||||
Exercise of stock options | 567 | 22,830 | 22,830 | |||||||||||||||||||||||||
Stock option tax benefits | 1,130 | 1,130 | ||||||||||||||||||||||||||
Restricted stock activity | 11 | 1,261 | (581 | ) | 680 | |||||||||||||||||||||||
Stock based compensation | 1,193 | 1,193 | ||||||||||||||||||||||||||
Stock awarded to employees | 3 | 171 | 171 | |||||||||||||||||||||||||
Purchase and retirement of stock | (719 | ) | (8,531 | ) | (27,383 | ) | (35,914 | ) | ||||||||||||||||||||
Dividends | (40,236 | ) | (40,236 | ) | ||||||||||||||||||||||||
December 31, 2008 | 28,880 | — | 352,265 | 2,409 | 1,040 | 54,138 | 409,852 | |||||||||||||||||||||
Comprehensive income | ||||||||||||||||||||||||||||
Net income for the year 2009 | 125,426 | 125,426 | ||||||||||||||||||||||||||
Other comprehensive income, net of tax: | ||||||||||||||||||||||||||||
Increase in net unrealized gains on securities available for sale | 2,638 | 2,638 | ||||||||||||||||||||||||||
Post-retirement benefit transition obligation amortization | 36 | 36 | ||||||||||||||||||||||||||
Total comprehensive income | 128,100 | |||||||||||||||||||||||||||
Issuance of preferred stock and related warrants | 82,519 | 1,207 | 83,726 | |||||||||||||||||||||||||
Redemption of preferred stock | (83,726 | ) | (83,726 | ) | ||||||||||||||||||||||||
Preferred stock dividends and discount accretion | 1,207 | (3,963 | ) | (2,756 | ) | |||||||||||||||||||||||
Exercise of stock options | 361 | 9,610 | 9,610 | |||||||||||||||||||||||||
Stock option tax benefits | 2,188 | 2,188 | ||||||||||||||||||||||||||
Restricted stock activity | 7 | 251 | 76 | 327 | ||||||||||||||||||||||||
Stock based compensation | 1,132 | 1,132 | ||||||||||||||||||||||||||
Stock awarded to employees | 2 | 102 | 102 | |||||||||||||||||||||||||
Purchase and retirement of stock | (42 | ) | (508 | ) | (1,538 | ) | (2,046 | ) | ||||||||||||||||||||
Dividends | (41,061 | ) | (41,061 | ) | ||||||||||||||||||||||||
December 31, 2009 | 29,208 | — | 366,247 | 2,485 | 3,714 | 133,002 | 505,448 | |||||||||||||||||||||
Comprehensive income | ||||||||||||||||||||||||||||
Net income for the year 2010 | 94,577 | 94,577 | ||||||||||||||||||||||||||
Other comprehensive income, net of tax: | ||||||||||||||||||||||||||||
Decrease in net unrealized gains on securities available for sale | (3,591 | ) | (3,591 | ) | ||||||||||||||||||||||||
Post-retirement benefit transition obligation amortization | 36 | 36 | ||||||||||||||||||||||||||
Total comprehensive income | 91,022 | |||||||||||||||||||||||||||
Exercise of stock options | 406 | 16,688 | 16,688 | |||||||||||||||||||||||||
Stock option tax benefits | 1,004 | 1,004 | ||||||||||||||||||||||||||
Restricted stock activity | 7 | 194 | 239 | 433 | ||||||||||||||||||||||||
Stock based compensation | 1,380 | 1,380 | ||||||||||||||||||||||||||
Stock awarded to employees | 2 | 125 | 125 | |||||||||||||||||||||||||
Purchase and retirement of stock | (533 | ) | (6,753 | ) | (21,966 | ) | (28,719 | ) | ||||||||||||||||||||
Dividends | (42,094 | ) | (42,094 | ) | ||||||||||||||||||||||||
December 31, 2010 | 29,090 | $ | — | $ | 378,885 | $ | 2,724 | $ | 159 | $ | 163,519 | $ | 545,287 | |||||||||||||||
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For the years ended December 31, | 2010 | 2009 | 2008 | |||||||||
Operating Activities: | ||||||||||||
Net income | $ | 94,577 | $ | 125,426 | $ | 59,835 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization/accretion | 15,327 | 10,429 | 9,438 | |||||||||
Loan loss provision | 11,200 | 10,500 | 2,700 | |||||||||
Net amortization of deferred loan (fees) cost | (100 | ) | 470 | 124 | ||||||||
Decrease (increase) in interest income receivable | 1,094 | (1,900 | ) | 3,480 | ||||||||
(Increase) decrease in deferred taxes | (12,335 | ) | 17,176 | (7,819 | ) | |||||||
Decrease (increase) in other assets | 23,404 | 12,704 | (9,814 | ) | ||||||||
Stock option compensation expense | 1,380 | 1,132 | 1,193 | |||||||||
Excess tax benefits from stock-based compensation | (1,004 | ) | (2,188 | ) | (1,130 | ) | ||||||
(Decrease) increase in income taxes payable | (565 | ) | 2,316 | 141 | ||||||||
Increase (decrease) in interest expense payable | 17 | (439 | ) | (3,527 | ) | |||||||
(Decrease) increase in other liabilities | (16,767 | ) | 21,830 | (18,677 | ) | |||||||
Gain on acquisition | (178 | ) | (48,844 | ) | — | |||||||
Loss on sale and impairment of investment securities | — | — | 62,653 | |||||||||
Gain on sale of Visa common stock | — | — | (5,698 | ) | ||||||||
Gain on sale of real estate and other assets | (211 | ) | — | — | ||||||||
Net (gain) loss on sales/write-down of fixed assets | (434 | ) | 40 | 12 | ||||||||
Originations of mortgage loans for resale | (332 | ) | (68 | ) | (1,269 | ) | ||||||
Net proceeds from sale of mortgage loans originated for resale | 344 | 70 | 1,283 | |||||||||
Net write-down/(gain)loss on sale of foreclosed assets | (447 | ) | 375 | 195 | ||||||||
Net Cash Provided By Operating Activities | 114,970 | 149,029 | 93,120 | |||||||||
Investing Activities | ||||||||||||
Net repayments of loans | 299,432 | 447,277 | 106,279 | |||||||||
Proceeds from FDIC loss-sharing agreement | 41,048 | 43,176 | — | |||||||||
Net cash acquired from acquisition | 57,895 | 44,397 | — | |||||||||
Purchases of investment securities available for sale | (482,356 | ) | (22,992 | ) | (6,430 | ) | ||||||
Proceeds from maturity/calls of securities available for sale | 201,442 | 105,097 | 197,594 | |||||||||
Purchases of securities held to maturity | — | (522 | ) | — | ||||||||
Proceeds from maturity/calls of securities held to maturity | 146,206 | 225,913 | 95,962 | |||||||||
Purchases of property, plant and equipment | (1,448 | ) | (14,179 | ) | (1,905 | ) | ||||||
Proceeds from sale of branch, property and equipment | 603 | 79 | — | |||||||||
Purchases of FRB/FHLB* securities | — | — | (147 | ) | ||||||||
Proceeds from sale of FRB/FHLB/FHLMC* securities | 3,948 | 1,502 | 11,887 | |||||||||
Proceeds from sale of Visa common stock | — | — | 5,698 | |||||||||
Proceeds from sale of foreclosed assets | 31,745 | 11,082 | 311 | |||||||||
Net Cash Provided By Investing Activities | 298,515 | 840,830 | 409,249 | |||||||||
Financing Activities | ||||||||||||
Net change in deposits | (176,887 | ) | (261,968 | ) | (169,736 | ) | ||||||
Net change in short-term borrowings | (205,819 | ) | (471,574 | ) | (341,324 | ) | ||||||
Repayments of notes payable | — | — | (10,000 | ) | ||||||||
Proceeds from issuance of preferred stock and warrants | — | 83,726 | — | |||||||||
Redemption of preferred stock | — | (83,726 | ) | — | ||||||||
Preferred stock dividends | — | (2,756 | ) | — | ||||||||
Exercise of stock options/issuance of shares | 16,688 | 9,610 | 22,830 | |||||||||
Excess tax benefits from stock-based compensation | 1,004 | 2,188 | 1,130 | |||||||||
Retirement of common stock including repurchases | (28,719 | ) | (2,046 | ) | (35,914 | ) | ||||||
Common stock dividends paid | (42,094 | ) | (41,061 | ) | (40,236 | ) | ||||||
Net Cash Used In Financing Activities | (435,827 | ) | (767,607 | ) | (573,250 | ) | ||||||
Net Change In Cash and Due from Banks | (22,342 | ) | 222,252 | (70,881 | ) | |||||||
Cash and Due from Banks at Beginning of Year | 361,135 | 138,883 | 209,764 | |||||||||
Cash and Due from Banks at End of Year | $ | 338,793 | $ | 361,135 | $ | 138,883 | ||||||
Supplemental Disclosures: | ||||||||||||
Supplemental disclosure of noncash activities: | ||||||||||||
Loans transferred to other real estate owned | $ | 30,770 | $ | 38,185 | $ | 3,432 | ||||||
(Decrease) increase in unrealized gains on securities available for sale, net of tax | (3,591 | ) | 2,638 | 5,524 | ||||||||
Supplemental disclosure of cash flow activity: | ||||||||||||
Interest paid for the period | 15,414 | 27,558 | 36,770 | |||||||||
Income tax payments for the period | 50,388 | 36,852 | 24,056 | |||||||||
Acquisitions: | ||||||||||||
Assets acquired | $ | 315,083 | $ | 1,624,464 | ||||||||
Liabilities assumed | 314,905 | 1,575,620 | ||||||||||
Net | 178 | 48,844 |
* | Federal Reserve Bank (“FRB”), Federal Home Loan Bank (“FHLB”) and Federal Home Loan Mortgage Corp. (“FHLMC”) |
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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 | |||
Liabilities for interest and other expenses | 470 | |||
Total Liabilities | 314,905 | |||
Net assets acquired | $ | 178 | ||
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 | ||
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At | ||||
February 6, 2009 | ||||
(In thousands) | ||||
Assets | ||||
Cash and cash equivalents | $ | 44,668 | ||
Federal funds sold | 12,760 | |||
Securities | 173,839 | |||
Loans | 1,174,353 | |||
Core deposit intangible | 28,107 | |||
Other real estate owned | 9,332 | |||
Other assets | 181,405 | |||
Total Assets | $ | 1,624,464 | ||
Liabilities | ||||
Deposits | 1,234,123 | |||
Federal funds purchased and securities sold under repurchase agreements | 153,169 | |||
Other borrowed funds | 187,252 | |||
Liabilities for interest and other expenses | 1,076 | |||
Total Liabilities | 1,575,620 | |||
Net assets acquired | $ | 48,844 | ||
At | ||||
February 6, 2009 | ||||
(In thousands) | ||||
County Bank tangible stockholder’s equity | $ | 58,623 | ||
Adjustments to reflect assets acquired and liabilities assumed at fair value: | ||||
Loans and leases, net | (150,326 | ) | ||
Other real estate owned | (5,470 | ) | ||
FDIC loss-sharing receivable (included in other assets) | 128,962 | |||
Core deposit intangible | 28,107 | |||
Deposits | (10,823 | ) | ||
Securities sold under repurchase agreements | (2,061 | ) | ||
Other borrowed funds | 1,832 | |||
Gain on acquisition | $ | 48,844 | ||
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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 | |||||||
Gross | Gross | Estimated | ||||||||||||||
Amortized | Unrealized | Unrealized | Market | |||||||||||||
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 | |||||||
Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
Cost | Gains | Losses | Value | |||||||||||||
(In thousands) | ||||||||||||||||
U.S. Treasury securities | $ | 2,987 | $ | — | $ | — | $ | 2,987 | ||||||||
Securities of U.S. Government sponsored entities | 21,018 | 48 | (25 | ) | 21,041 | |||||||||||
Residential mortgage-backed securities | 143,625 | 2,504 | (124 | ) | 146,005 | |||||||||||
Obligations of States and political subdivisions | 155,093 | 4,077 | (977 | ) | 158,193 | |||||||||||
Residential collateralized mortgage obligations | 40,981 | 652 | (223 | ) | 41,410 | |||||||||||
Asset-backed securities | 10,000 | — | (1,661 | ) | 8,339 | |||||||||||
FHLMC and FNMA stock | 824 | 750 | (1 | ) | 1,573 | |||||||||||
Other securities | 2,778 | 1,926 | (44 | ) | 4,660 | |||||||||||
Total | $ | 377,306 | $ | 9,957 | $ | (3,055 | ) | $ | 384,208 | |||||||
Gross | Gross | Estimated | ||||||||||||||
Amortized | Unrealized | Unrealized | Market | |||||||||||||
Cost | Gains | Losses | Value | |||||||||||||
(In thousands) | ||||||||||||||||
Residential mortgage backed securities | $ | 61,893 | $ | 1,752 | $ | — | $ | 63,645 | ||||||||
Obligations of States and political subdivisions | 516,596 | 12,528 | (2,190 | ) | 526,934 | |||||||||||
Residential collateralized mortgage obligations | 148,446 | 3,352 | (6,107 | ) | 145,691 | |||||||||||
Total | $ | 726,935 | $ | 17,632 | $ | (8,297 | ) | $ | 736,270 | |||||||
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Securities Available | Securities Held | |||||||||||||||
for Sale | to Maturity | |||||||||||||||
Estimated | Estimated | |||||||||||||||
Amortized | Market | Amortized | Market | |||||||||||||
Cost | Value | Cost | Value | |||||||||||||
(In thousands) | ||||||||||||||||
Maturity in years: | ||||||||||||||||
1 year or less | $ | 21,362 | $ | 21,460 | $ | 6,057 | $ | 6,103 | ||||||||
1 to 5 years | 315,777 | 314,605 | 92,837 | 95,608 | ||||||||||||
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 | ||||||||
Securities Available | Securities Held | |||||||||||||||
for Sale | to Maturity | |||||||||||||||
Estimated | Estimated | |||||||||||||||
Amortized | Market | Amortized | Market | |||||||||||||
Cost | Value | Cost | Value | |||||||||||||
(In thousands) | ||||||||||||||||
Maturity in years: | ||||||||||||||||
1 year or less | $ | 12,763 | $ | 12,852 | $ | 8,303 | $ | 8,389 | ||||||||
1 to 5 years | 86,757 | 88,759 | 58,111 | 60,075 | ||||||||||||
5 to 10 years | 61,532 | 62,933 | 413,720 | 421,955 | ||||||||||||
Over 10 years | 28,046 | 26,016 | 36,462 | 36,515 | ||||||||||||
Subtotal | 189,098 | 190,560 | 516,596 | 526,934 | ||||||||||||
Mortgage-backed securities and residential collateralized mortgage obligations | 184,606 | 187,415 | 210,339 | 209,336 | ||||||||||||
Other securities | 3,602 | 6,233 | — | — | ||||||||||||
Total | $ | 377,306 | $ | 384,208 | $ | 726,935 | $ | 736,270 | ||||||||
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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 | ) | |||||||||
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 | ) | |||||||||
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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 | $ | 2,987 | $ | — | $ | — | $ | — | $ | 2,987 | $ | — | ||||||||||||
Securities of U.S. Government sponsored entities | 19,979 | (25 | ) | — | — | 19,979 | (25 | ) | ||||||||||||||||
Residential mortgage backed securities | 17,885 | (124 | ) | — | — | 17,885 | (124 | ) | ||||||||||||||||
Obligations of States and political subdivisions | 25,050 | (795 | ) | 3,866 | (182 | ) | 28,916 | (977 | ) | |||||||||||||||
Residential collateralized mortgage obligations | 9,896 | (37 | ) | 5,002 | (186 | ) | 14,898 | (223 | ) | |||||||||||||||
Asset-backed securities | — | — | 8,339 | (1,661 | ) | 8,339 | (1,661 | ) | ||||||||||||||||
FHLMC and FNMA stock | 4 | (1 | ) | — | — | 4 | (1 | ) | ||||||||||||||||
Other securities | — | — | 1,956 | (44 | ) | 1,956 | (44 | ) | ||||||||||||||||
Total | $ | 75,801 | $ | (982 | ) | $ | 19,163 | $ | (2,073 | ) | $ | 94,964 | $ | (3,055 | ) | |||||||||
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 | $ | 46,111 | $ | (995 | ) | $ | 16,964 | $ | (1,195 | ) | $ | 63,075 | $ | (2,190 | ) | |||||||||
Residential collateralized mortgage obligations | 7,639 | (42 | ) | 30,674 | (6,065 | ) | 38,313 | (6,107 | ) | |||||||||||||||
Total | $ | 53,750 | $ | (1,037 | ) | $ | 47,638 | $ | (7,260 | ) | $ | 101,388 | $ | (8,297 | ) | |||||||||
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At December 31, | ||||||||
2010 | 2009 | |||||||
(In thousands) | ||||||||
Originated loans: | ||||||||
Commercial | $ | 474,183 | $ | 498,594 | ||||
Commercial real estate | 757,140 | 801,008 | ||||||
Construction | 26,145 | 32,156 | ||||||
Residential real estate | 310,196 | 371,197 | ||||||
Consumer installment & other | 461,877 | 498,133 | ||||||
Total | $ | 2,029,541 | $ | 2,201,088 | ||||
As of December 31, 2010 | As of December 31, 2009 | |||||||||||||||||||||||
Impaired | Non Impaired | Impaired | Non Impaired | |||||||||||||||||||||
Purchased | Purchased | Total Purchased | Purchased | Purchased | Total Purchased | |||||||||||||||||||
Covered Loans | Covered Loans | Covered Loans | Covered Loans | Covered Loans | Covered Loans | |||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||
Purchased covered loans: | ||||||||||||||||||||||||
Commercial | $ | 10,014 | $ | 158,971 | $ | 168,985 | $ | 8,538 | $ | 244,811 | $ | 253,349 | ||||||||||||
Commercial real estate | 14,079 | 376,603 | 390,682 | 19,870 | 425,570 | 445,440 | ||||||||||||||||||
Construction | 9,073 | 19,307 | 28,380 | 14,378 | 26,082 | 40,460 | ||||||||||||||||||
Residential real estate | 138 | 18,236 | 18,374 | 138 | 18,383 | 18,521 | ||||||||||||||||||
Consumer installment & other | 252 | 86,299 | 86,551 | 272 | 97,259 | 97,531 | ||||||||||||||||||
Total | $ | 33,556 | $ | 659,416 | $ | 692,972 | $ | 43,196 | $ | 812,105 | $ | 855,301 | ||||||||||||
February 6, 2009 | ||||||||
through | ||||||||
Year ended | December 31, 2009 | |||||||
December 31, 2010 | (refined) | |||||||
(In thousands) | ||||||||
Carrying amount at the beginning of the period | $ | 43,196 | $ | 80,544 | ||||
Reductions during the period | (9,640 | ) | (37,348 | ) | ||||
Carrying amount at the end of the period | $ | 33,556 | $ | 43,196 | ||||
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Impaired | Non Impaired | Total | ||||||||||
Purchased | Purchased | Purchased | ||||||||||
Non-covered | Non-covered | Non-covered | ||||||||||
Loans | Loans | Loans | ||||||||||
(In thousands) | ||||||||||||
Purchased non-covered loans: | ||||||||||||
Commercial | $ | 415 | $ | 15,005 | $ | 15,420 | ||||||
Commercial real estate | 22,988 | 99,900 | 122,888 | |||||||||
Construction | 6,514 | 15,106 | 21,620 | |||||||||
Residential real estate | 311 | 6,744 | 7,055 | |||||||||
Consumer installment & other | 1,790 | 30,798 | 32,588 | |||||||||
Total | $ | 32,018 | $ | 167,553 | $ | 199,571 | ||||||
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 |
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 | ||
Carrying amount at the beginning of the period | $ | 37,742 | ||
Reductions during the period | (5,724 | ) | ||
Carrying amount at the end of the period | $ | 32,018 | ||
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Allowance for Credit Losses | ||||||||||||||||||||||||||||
For the Year Ended December 31, 2010 | ||||||||||||||||||||||||||||
Commercial | Residential | |||||||||||||||||||||||||||
Commercial | Real Estate | Construction | Real Estate | Consumer | Unallocated | Total | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||||
Beginning balance | $ | 9,190 | $ | 9,918 | $ | 2,968 | $ | 1,529 | $ | 8,424 | $ | 11,707 | $ | 43,736 | ||||||||||||||
Charge-offs | (6,844 | ) | (1,256 | ) | (1,668 | ) | (1,686 | ) | (8,814 | ) | — | (20,268 | ) | |||||||||||||||
Recoveries | 948 | 4 | — | — | 2,709 | — | 3,661 | |||||||||||||||||||||
Provision | 6,584 | 941 | 2,259 | 774 | 4,663 | (4,021 | ) | 11,200 | ||||||||||||||||||||
Ending balance | $ | 9,878 | $ | 9,607 | $ | 3,559 | $ | 617 | $ | 6,982 | $ | 7,686 | $ | 38,329 | ||||||||||||||
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 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 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 | ||||||||||||||
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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 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 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 | ||||||||||||||
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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 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 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 | ||||||||||||
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Impaired Loans | ||||||||||||
At December 31, 2010 | ||||||||||||
Unpaid | ||||||||||||
Recorded | Principal | Related | ||||||||||
Investment | Balance | Allowance | ||||||||||
(In thousands) | ||||||||||||
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 | — | |||||||||
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 | — |
2010 | 2009 | 2008 | ||||||||||
(In thousands) | ||||||||||||
Interest income that would have been recognized had the loans performed in accordance with their original terms | $ | 1,199 | $ | 1,317 | $ | 665 | ||||||
Less: Interest income recognized on nonaccrual loans | (780 | ) | (407 | ) | (511 | ) | ||||||
Total reduction of interest income | $ | 419 | $ | 910 | $ | 154 | ||||||
2010 | 2009 | |||||||
(In thousands) | ||||||||
Interest income that would have been recognized had the loans performed in accordance with their original terms | $ | 4,321 | $ | 3,878 | ||||
Less: Interest income recognized on nonaccrual loans | (5,297 | ) | (1,667 | ) | ||||
Total (addition) reduction of interest income | $ | (976 | ) | $ | 2,211 | |||
2010 | ||||
(In thousands) | ||||
Interest income that would have been recognized had the loans performed in accordance with their original terms | $ | 968 | ||
Less: Interest income recognized on nonaccrual loans | (24 | ) | ||
Total (addition) reduction of interest income | $ | 944 | ||
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Accumulated | ||||||||||||
Depreciation | ||||||||||||
and | Net Book | |||||||||||
Cost | Amortization | Value | ||||||||||
(In thousands) | ||||||||||||
2010 | ||||||||||||
Land | $ | 11,395 | $ | — | $ | 11,395 | ||||||
Buildings and improvements | 42,783 | (22,052 | ) | 20,731 | ||||||||
Leasehold improvements | 6,225 | (5,308 | ) | 917 | ||||||||
Furniture and equipment | 16,364 | (13,129 | ) | 3,235 | ||||||||
Total | $ | 76,767 | $ | (40,489 | ) | $ | 36,278 | |||||
2009 | ||||||||||||
Land | $ | 11,490 | $ | — | $ | 11,490 | ||||||
Buildings and improvements | 43,833 | (21,786 | ) | 22,047 | ||||||||
Leasehold improvements | 6,140 | (5,012 | ) | 1,128 | ||||||||
Furniture and equipment | 15,551 | (12,118 | ) | 3,433 | ||||||||
Total | $ | 77,014 | $ | (38,916 | ) | $ | 38,098 | |||||
December 31, 2008 | $ | 121,699 | ||
December 31, 2009 | $ | 121,699 | ||
Recognition of stock option tax benefits for the exercise of options converted upon merger | (26 | ) | ||
December 31, 2010 | $ | 121,673 | ||
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December 31, | ||||||||||||||||
2010 | 2009 | |||||||||||||||
Gross | Gross | |||||||||||||||
Carrying | Accumulated | Carrying | Accumulated | |||||||||||||
Amount | Amortization | Amount | Amortization | |||||||||||||
Core Deposit Intangibles | $ | 56,808 | $ | (24,719 | ) | $ | 51,538 | $ | (19,160 | ) | ||||||
Merchant Draft Processing Intangible | 10,300 | (7,785 | ) | 10,300 | (7,011 | ) | ||||||||||
Total Intangible Assets | $ | 67,108 | $ | (32,504 | ) | $ | 61,838 | $ | (26,171 | ) | ||||||
Merchant | ||||||||||||
Core | Draft | |||||||||||
Deposit | Processing | |||||||||||
Intangibles | Intangible | Total | ||||||||||
Twelve months ended December 31, 2010 (actual) | $ | 5,559 | $ | 774 | $ | 6,333 | ||||||
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 |
2010 | 2009 | |||||||
(In thousands) | ||||||||
Senior fixed-rate note(1) | $ | 15,000 | $ | 15,000 | ||||
Subordinated fixed-rate note(2) | 11,363 | 11,497 | ||||||
Total debt financing and notes payable — Parent | $ | 26,363 | $ | 26,497 | ||||
(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 million, 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. |
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2010 | 2009 | |||||||||||||||||||||||
Balance | Weighted | Balance | Weighted | |||||||||||||||||||||
At | Average | Average | At | Average | Average | |||||||||||||||||||
December 31, | Balance | Rate | December 31, | Balance | Rate | |||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||
Federal funds purchased | $ | — | $ | — | — | % | $ | — | $ | 107,732 | 0.18 | % | ||||||||||||
Sweep accounts | 105,237 | 101,690 | 0.32 | 109,332 | 113,167 | 0.41 | ||||||||||||||||||
Term repurchase agreements | — | 94,842 | 1.61 | 99,044 | 90,344 | 1.53 | ||||||||||||||||||
Federal Home Loan Bank advances | 61,698 | 34,378 | 1.25 | 85,470 | 79,417 | 1.25 | ||||||||||||||||||
Securities sold under repurchase agreements | 1,148 | 2,314 | 0.42 | 3,102 | 2,991 | 0.61 | ||||||||||||||||||
Line of credit | 1,000 | 3,817 | 3.42 | 15,700 | 2,071 | 3.13 | ||||||||||||||||||
Time deposits Over $100 thousand | 553,929 | 550,810 | 0.61 | 574,153 | 607,642 | 0.88 | ||||||||||||||||||
2010 | 2009 | |||||||
Highest | Highest | |||||||
Balance at | Balance at | |||||||
Any Month-end | Any Month-end | |||||||
(In thousands) | ||||||||
Federal funds purchased | $ | — | $ | 365,000 | ||||
Sweep accounts | 116,179 | 124,557 | ||||||
Term repurchase agreement | 99,920 | 98,964 | ||||||
Federal Home Loan Bank advances | 72,016 | 86,916 | ||||||
Securities sold under repurchase agreements | 3,380 | 3,567 | ||||||
Line of credit | 9,200 | 17,877 |
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Options Outstanding | Options Exercisable | |||||||||||||||||||||||||||||||
Number | Aggregate | Weighted | Number | Aggregate | Weighted | |||||||||||||||||||||||||||
Outstanding | Intrinsic | Average | Weighted | Outstanding | Intrinsic | Average | Weighted | |||||||||||||||||||||||||
Range of | at 12/31/2010 | Value | Remaining | Average | at 12/31/2010 | Value | Remaining | Average | ||||||||||||||||||||||||
Exercise | (in | (in | Contractual | Exercise | (in | (in | Contractual | Exercise | ||||||||||||||||||||||||
Price | thousands) | thousands) | Life (yrs) | Price | thousands) | thousands) | Life (yrs) | Price | ||||||||||||||||||||||||
35 - 40 | 291 | $ | 4,565 | 1.1 | $ | 39 | 291 | $ | 4,565 | 1.1 | $ | 39 | ||||||||||||||||||||
40 - 45 | 518 | 6,627 | 4.3 | 42 | 371 | 4,955 | 2.9 | 41 | ||||||||||||||||||||||||
45 - 50 | 625 | 3,547 | 4.7 | 49 | 560 | 3,078 | 4.4 | 49 | ||||||||||||||||||||||||
50 - 55 | 711 | 1,727 | 5.6 | 52 | 711 | 1,727 | 5.6 | 52 | ||||||||||||||||||||||||
55 - 60 | 272 | — | 9.1 | 57 | — | — | — | — | ||||||||||||||||||||||||
$35 - 60 | 2,417 | $ | 16,466 | 5.0 | 48 | 1,933 | $ | 14,325 | 4.1 | 47 | ||||||||||||||||||||||
For the twelve months ended December 31, | 2010 | 2009 | 2008 | |||||||||
Expected volatility*1 | 17 | % | 18 | % | 15 | % | ||||||
Expected life in years*2 | 4.5 | 4.0 | 4.0 | |||||||||
Risk-free interest rate*3 | 2.15 | % | 1.25 | % | 2.66 | % | ||||||
Expected dividend yield | 2.44 | % | 3.41 | % | 2.78 | % | ||||||
Fair value per award | $ | 6.77 | $ | 4.51 | $ | 6.77 |
*1 | Measured using daily price changes of Company’s stock over respective expected term of the option and the implied volatility derived from the market prices of the Company’s stock and traded options. | |
*2 | The number of years that the Company estimates that the options will be outstanding prior to exercise | |
*3 | The risk-free rate over the expected life based on the US Treasury yield curve in effect at the time of the grant |
Weighted | ||||||||||||
Weighted | Average | |||||||||||
Shares | Average | Remaining | ||||||||||
(In | Exercise | Contractual | ||||||||||
Thousands) | Price | Term (years) | ||||||||||
Outstanding at January 1, 2010 | 2,563 | $ | 45.84 | |||||||||
Granted | 296 | 56.63 | ||||||||||
Exercised | (405 | ) | 41.20 | |||||||||
Forfeited or expired | (37 | ) | 51.42 | |||||||||
Outstanding at December 31, 2010 | 2,417 | 47.85 | 5.0 | |||||||||
Exercisable at December 31, 2010 | 1,933 | 47.00 | 4.1 | |||||||||
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Weighted | ||||||||
Average | ||||||||
Shares | Grant | |||||||
(In | Date | |||||||
Thousands) | Fair Value | |||||||
Nonvested at January 1, 2010 | 423 | |||||||
Granted | 297 | |||||||
Vested | (199 | ) | ||||||
Forfeited | (37 | ) | ||||||
Nonvested at December 31, 2010 | 484 | $ | 5.06 | |||||
2010 | 2009 | |||||||
Outstanding at January 1, | 49 | 44 | ||||||
Granted | 17 | 19 | ||||||
Issued upon vesting | (10 | ) | (9 | ) | ||||
Forfeited | (1 | ) | (5 | ) | ||||
Outstanding at December 31, | 55 | 49 | ||||||
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To Be Well | ||||||||||||||||||||||||
Capitalized Under | ||||||||||||||||||||||||
the FDICIA | ||||||||||||||||||||||||
For Capital | Prompt Corrective | |||||||||||||||||||||||
Adequacy Purposes | Action Provisions | |||||||||||||||||||||||
December 31, 2010 | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Total Capital (to risk-weighted assets) | ||||||||||||||||||||||||
Consolidated Company | $ | 449,876 | 15.50 | % | $ | 232,144 | 8.00 | % | $ | 290,180 | 10.00 | % | ||||||||||||
Westamerica Bank | 438,872 | 15.33 | % | 229,032 | 8.00 | % | 286,290 | 10.00 | % | |||||||||||||||
Tier 1 Capital (to risk-weighted assets) | ||||||||||||||||||||||||
Consolidated Company | 412,463 | 14.21 | % | 116,072 | 4.00 | % | 174,108 | 6.00 | % | |||||||||||||||
Westamerica Bank | 397,054 | 13.87 | % | 114,516 | 4.00 | % | 171,774 | 6.00 | % | |||||||||||||||
Leverage Ratio * | ||||||||||||||||||||||||
Consolidated Company | 412,463 | 8.44 | % | 195,580 | 4.00 | % | 244,475 | 5.00 | % | |||||||||||||||
Westamerica Bank | 397,054 | 8.19 | % | 194,006 | 4.00 | % | 242,508 | 5.00 | % |
To Be Well | ||||||||||||||||||||||||
Capitalized Under | ||||||||||||||||||||||||
the FDICIA | ||||||||||||||||||||||||
For Capital | Prompt Corrective | |||||||||||||||||||||||
Adequacy Purposes | Action Provisions | |||||||||||||||||||||||
December 31, 2009 | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Total Capital (to risk-weighted assets) | ||||||||||||||||||||||||
Consolidated Company | $ | 406,339 | 14.50 | % | $ | 224,241 | 8.00 | % | $ | 280,301 | 10.00 | % | ||||||||||||
Westamerica Bank | 411,310 | 14.88 | % | 221,177 | 8.00 | % | 276,471 | 10.00 | % | |||||||||||||||
Tier 1 Capital (to risk-weighted assets) | ||||||||||||||||||||||||
Consolidated Company | 370,011 | 13.20 | % | 112,120 | 4.00 | % | 168,180 | 6.00 | % | |||||||||||||||
Westamerica Bank | 370,321 | 13.39 | % | 110,588 | 4.00 | % | 165,882 | 6.00 | % | |||||||||||||||
Leverage Ratio * | ||||||||||||||||||||||||
Consolidated Company | 370,011 | 7.60 | % | 194,625 | 4.00 | % | 243,281 | 5.00 | % | |||||||||||||||
Westamerica Bank | 370,321 | 7.67 | % | 193,092 | 4.00 | % | 241,365 | 5.00 | % |
* | The leverage ratio consists of Tier 1 capital divided by average assets, excluding certain intangible assets, during the most recent calendar quarter. The minimum leverage ratio guideline is 3.00% for banking organizations that do not anticipate significant growth and that have well-diversified risk, excellent asset quality, high liquidity, good earnings and, in general, are considered top-rated, strong banking organizations. |
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2010 | 2009 | |||||||
(In thousands) | ||||||||
Deferred tax asset | ||||||||
Allowance for credit losses | $ | 15,948 | $ | 18,363 | ||||
State franchise taxes | 4,686 | 4,792 | ||||||
Deferred compensation | 13,329 | 13,888 | ||||||
Real estate owned | 379 | 97 | ||||||
Estimated loss on acquired assets | 21,239 | 32,408 | ||||||
Post retirement benefits | 1,354 | 1,379 | ||||||
Employee benefit accruals | 1,141 | 1,037 | ||||||
Limited partnership investments | 1,430 | 1,161 | ||||||
Impaired capital assets | 21,129 | 20,977 | ||||||
Capital loss carryforward | 794 | 794 | ||||||
Premises and equipment | 216 | 45 | ||||||
Other | 1,566 | 2,496 | ||||||
Subtotal deferred tax asset | 83,211 | 97,436 | ||||||
Valuation allowance | — | — | ||||||
Total deferred tax asset | 83,211 | 97,436 | ||||||
Deferred tax liability | ||||||||
Net deferred loan fees | 402 | 691 | ||||||
Intangible assets | 13,611 | 15,643 | ||||||
Securities available for sale | 368 | 2,587 | ||||||
Leases | 1,024 | 994 | ||||||
Gain on acquired net assets | 3,621 | 5,358 | ||||||
FDIC indemnification receivable | 15,729 | 35,693 | ||||||
Other | 393 | 742 | ||||||
Total deferred tax liability | 35,148 | 61,708 | ||||||
Net deferred tax asset | $ | 48,063 | $ | 35,728 | ||||
2010 | 2009 | 2008 | ||||||||||
(In thousands) | ||||||||||||
Current income tax expense: | ||||||||||||
Federal | $ | 34,531 | $ | 27,595 | $ | 12,858 | ||||||
State | 13,075 | 14,196 | 9,798 | |||||||||
Total current | 47,606 | 41,791 | 22,656 | |||||||||
Deferred income tax (benefit) expense: | ||||||||||||
Federal | (10,155 | ) | 11,884 | (9,397 | ) | |||||||
State | (606 | ) | 4,203 | (3,385 | ) | |||||||
Total deferred | (10,761 | ) | 16,087 | (12,782 | ) | |||||||
Provision for income taxes | $ | 36,845 | $ | 57,878 | $ | 9,874 | ||||||
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2010 | 2009 | 2008 | ||||||||||
(In thousands) | ||||||||||||
Federal income taxes due at statutory rate | $ | 45,998 | $ | 64,157 | $ | 24,398 | ||||||
Reductions in income taxes resulting from: | ||||||||||||
Interest on state and municipal securities not taxable for federal income tax purposes | (11,875 | ) | (12,742 | ) | (13,164 | ) | ||||||
State franchise taxes, net of federal income tax benefit | 8,104 | 11,959 | 4,168 | |||||||||
Limited partnerships | (3,521 | ) | (3,233 | ) | (3,100 | ) | ||||||
Dividend received deduction | (21 | ) | (32 | ) | (584 | ) | ||||||
Cash value life insurance | (953 | ) | (715 | ) | (783 | ) | ||||||
Other | (887 | ) | (1,516 | ) | (1,061 | ) | ||||||
Provision for income taxes | $ | 36,845 | $ | 57,878 | $ | 9,874 | ||||||
2010 | 2009 | |||||||
(In thousands) | ||||||||
Balance at January 1, | $ | 241 | $ | 803 | ||||
Additions for tax positions taken in the current period | 86 | 48 | ||||||
Reductions for tax positions taken in the current period | — | — | ||||||
Additions for tax positions taken in prior years | 43 | 29 | ||||||
Reductions for tax positions taken in prior years | — | — | ||||||
Decreases related to settlements with taxing authorities | — | — | ||||||
Decreases as a result of a lapse in statute of limitations | (111 | ) | (639 | ) | ||||
Balance at December 31, | $ | 259 | $ | 241 | ||||
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At December 31, 2010 | ||||||||||||||||
Quoted Prices | ||||||||||||||||
in Active | Significant | |||||||||||||||
Markets for | Other | Significant | ||||||||||||||
Identical | Observable | Unobservable | ||||||||||||||
Assets | Inputs | Inputs | ||||||||||||||
Fair Value | (Level 1) | (Level 2) | (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 | $ | — | ||||||||
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At December 31, 2009 | ||||||||||||||||
Quoted Prices | ||||||||||||||||
in Active | Significant | |||||||||||||||
Markets for | Other | Significant | ||||||||||||||
Identical | Observable | Unobservable | ||||||||||||||
Assets | Inputs | Inputs | ||||||||||||||
Fair Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
(In thousands) | ||||||||||||||||
U.S. Treasury securities | $ | 2,987 | $ | 2,987 | $ | — | $ | — | ||||||||
Securities of U.S. Government sponsored entities | 21,041 | 21,041 | — | — | ||||||||||||
Municipal bonds: | ||||||||||||||||
Federally Tax-exempt — California | 56,431 | — | 56,431 | — | ||||||||||||
Federally Tax-exempt — 25 other states | 97,094 | — | 97,094 | — | ||||||||||||
Taxable — California | 4,668 | — | 4,668 | — | ||||||||||||
Residential mortgage-backed securities (“MBS”): | ||||||||||||||||
Guaranteed by GNMA | 54,361 | — | 54,361 | — | ||||||||||||
Issued by FNMA and FHLMC | 91,644 | — | 91,644 | — | ||||||||||||
Residential collateralized mortgage obligations: | ||||||||||||||||
Issued or guaranteed by FNMA, FHLMC, or GNMA | 29,536 | — | 29,536 | — | ||||||||||||
All other | 11,874 | — | 11,874 | — | ||||||||||||
Asset-backed securities — government guaranteed student loans | 8,339 | — | 8,339 | — | ||||||||||||
FHLMC and FNMA stock | 1,573 | 1,573 | — | — | ||||||||||||
Other securities | 4,660 | 2,703 | 1,957 | — | ||||||||||||
Total securities available for sale | $ | 384,208 | $ | 28,304 | $ | 355,904 | $ | — | ||||||||
At December 31, 2010 | ||||||||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | Total losses | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Originated other real estate owned (1) | $ | 1,863 | $ | — | $ | 1,863 | $ | — | $ | (664 | ) | |||||||||
Originated impaired loans (2) | 4,780 | — | 4,780 | — | $ | (829 | ) | |||||||||||||
Total assets measured at fair value on a nonrecurring basis | $ | 6,643 | $ | — | $ | 6,643 | $ | — | $ | (1,493 | ) | |||||||||
At December 31, 2009 | ||||||||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | Total losses | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Originated other real estate owned (1) | $ | 413 | $ | — | $ | 413 | $ | — | $ | (233 | ) | |||||||||
Originated impaired loans (2) | 2,447 | — | 2,447 | — | — | |||||||||||||||
Total assets measured at fair value on a nonrecurring basis | $ | 2,860 | $ | — | $ | 2,860 | $ | — | $ | (233 | ) | |||||||||
(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 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. |
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At December 31, 2010 | At December 31, 2009 | |||||||||||||||
Carrying | Estimated | Carrying | Estimated | |||||||||||||
Amount | Fair Value | Amount | Fair Value | |||||||||||||
(In thousands) | ||||||||||||||||
Financial Assets | ||||||||||||||||
Cash and due from banks | $ | 338,793 | $ | 338,793 | $ | 361,135 | $ | 361,135 | ||||||||
Money market assets | 392 | 392 | 442 | 442 | ||||||||||||
Investment securities held to maturity | 580,728 | 594,711 | 726,935 | 736,270 | ||||||||||||
Loans | 2,886,448 | 2,923,612 | 3,015,346 | 3,024,866 | ||||||||||||
Other assets — FDIC receivable | 44,738 | 44,353 | 85,787 | 83,806 | ||||||||||||
Financial Liabilities | ||||||||||||||||
Deposits | 4,132,961 | 4,135,113 | 4,060,208 | 4,061,380 | ||||||||||||
Short-term borrowed funds | 107,385 | 107,385 | 227,178 | 228,463 | ||||||||||||
Federal Home Loan Bank Advances | 61,698 | 61,833 | 85,470 | 85,601 | ||||||||||||
Debt financing and notes payable | 26,363 | 26,811 | 26,497 | 23,520 | ||||||||||||
Other liabilities — restricted performance share grants | 2,259 | 2,259 | 1,942 | 1,942 |
(In thousands) | ||||
2011 | $ | 9,192 | ||
2012 | 7,952 | |||
2013 | 6,838 | |||
2014 | 4,789 | |||
2015 | 3,023 | |||
Thereafter | 1,397 | |||
Total minimum lease payments | $ | 33,191 | ||
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(In thousands) | 2010 | 2009 | 2008 | |||||||||
Service cost | $ | (371 | ) | $ | (357 | ) | $ | (317 | ) | |||
Interest cost | 193 | 210 | 235 | |||||||||
Amortization of unrecognized transition obligation | 61 | 61 | 61 | |||||||||
Net periodic cost | (117 | ) | (86 | ) | (21 | ) | ||||||
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Amortization of unrecognized transition obligation, net of tax | (36 | ) | (36 | ) | (36 | ) | ||||||
Total recognized in net periodic benefit cost and accumulated other comprehensive income | $ | (153 | ) | $ | (122 | ) | $ | (57 | ) | |||
(In thousands) | 2010 | 2009 | 2008 | |||||||||
Change in benefit obligation | ||||||||||||
Benefit obligation at beginning of year | $ | 3,519 | $ | 3,813 | $ | 4,046 | ||||||
Service cost | (371 | ) | (357 | ) | (317 | ) | ||||||
Interest cost | 193 | 210 | 235 | |||||||||
Benefits paid | (163 | ) | (147 | ) | (151 | ) | ||||||
Benefit obligation at end of year | $ | 3,178 | $ | 3,519 | $ | 3,813 | ||||||
Accumulated post retirement benefit obligation attributable to: | ||||||||||||
Retirees | $ | 1,990 | $ | 2,241 | $ | 2,724 | ||||||
Fully eligible participants | 951 | 1,044 | 895 | |||||||||
Other | 237 | 234 | 194 | |||||||||
Total | $ | 3,178 | $ | 3,519 | $ | 3,813 | ||||||
Fair value of plan assets | $ | — | $ | — | $ | — | ||||||
Accumulated post retirement benefit obligation in excess of plan assets | $ | 3,178 | $ | 3,519 | $ | 3,813 | ||||||
2010 | 2009 | 2008 | ||||||||||
Weighted-average assumptions used to determine benefit obligations as of December 31 Discount rate | 5.50 | % | 5.50 | % | 5.80 | % | ||||||
Weighted-average assumptions used to determine net periodic benefit cost as of December 31 Discount rate | 5.50 | % | 5.80 | % | 6.50 | % |
One Percentage | One Percentage | |||||||
(In thousands) | Point Increase | Point Decrease | ||||||
Effect on total service and interest cost components | $ | 158 | $ | (134 | ) | |||
Effect on post-retirement benefit obligation | 388 | (326 | ) |
Estimated future benefit payments | ||||
(In thousands) | ||||
2011 | $ | 167 | ||
2012 | 163 | |||
2013 | 160 | |||
2014 | 157 | |||
2015 | 154 | |||
Years 2016-2020 | 719 |
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2010 | 2009 | |||||||
(Dollars in thousands) | ||||||||
Beginning balance | $ | 1,196 | $ | 1,291 | ||||
Originations | 129 | 47 | ||||||
Payoffs/principal payments | (126 | ) | (142 | ) | ||||
At December 31, | $ | 1,199 | $ | 1,196 | ||||
Percent of total loans outstanding | 0.04 | % | 0.04 | % | ||||
2010 | ||||||||||||
(In thousands) | Before tax | Tax effect | Net of tax | |||||||||
Securities available for sale: | ||||||||||||
Net unrealized losses arising during the year | $ | (6,197 | ) | $ | 2,606 | $ | (3,591 | ) | ||||
Reclassification of gains included in net income | — | — | — | |||||||||
Net unrealized losses arising during the year | (6,197 | ) | 2,606 | (3,591 | ) | |||||||
Post-retirement benefit obligation | 61 | (25 | ) | 36 | ||||||||
Other comprehensive loss | $ | (6,136 | ) | $ | 2,581 | $ | (3,555 | ) | ||||
2009 | ||||||||||||
(In thousands) | Before tax | Tax effect | Net of tax | |||||||||
Securities available for sale: | ||||||||||||
Net unrealized gains arising during the year | $ | 4,552 | $ | (1,914 | ) | $ | 2,638 | |||||
Reclassification of gains included in net income | — | — | — | |||||||||
Net unrealized gains arising during the year | 4,552 | (1,914 | ) | 2,638 | ||||||||
Post-retirement benefit obligation | 61 | (25 | ) | 36 | ||||||||
Other comprehensive income | $ | 4,613 | $ | (1,939 | ) | $ | 2,674 | |||||
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2008 | ||||||||||||
(In thousands) | Before tax | Tax effect | Net of tax | |||||||||
Securities available for sale: | ||||||||||||
Net unrealized losses arising during the year | $ | (47,423 | ) | $ | 19,940 | $ | (27,483 | ) | ||||
Reclassification of losses included in net income | 56,955 | (23,948 | ) | 33,007 | ||||||||
Net unrealized gains arising during the year | 9,532 | (4,008 | ) | 5,524 | ||||||||
Post-retirement benefit obligation | 61 | (25 | ) | 36 | ||||||||
Other comprehensive income | $ | 9,593 | $ | (4,033 | ) | $ | 5,560 | |||||
Post- | Net | Cumulative | ||||||||||
retirement | Unrealized | Other | ||||||||||
Benefit | gains(losses) | Comprehensive | ||||||||||
(In thousands) | Obligation | on securities | (Loss) Income | |||||||||
Balance, December 31, 2007 | $ | (358 | ) | $ | (4,162 | ) | $ | (4,520 | ) | |||
Net change | 36 | 5,524 | 5,560 | |||||||||
Balance, December 31, 2008 | (322 | ) | 1,362 | 1,040 | ||||||||
Net change | 36 | 2,638 | 2,674 | |||||||||
Balance, December 31, 2009 | (286 | ) | 4,000 | 3,714 | ||||||||
Net change | 36 | (3,591 | ) | (3,555 | ) | |||||||
Balance, December 31, 2010 | $ | (250 | ) | $ | 409 | $ | 159 | |||||
(In thousands, except per share data) | 2010 | 2009 | 2008 | |||||||||
Net income | $ | 94,577 | $ | 125,426 | $ | 59,835 | ||||||
Less: Preferred stock dividends and discount accretion | — | 3,963 | — | |||||||||
Net income applicable to common equity (numerator) | $ | 94,577 | $ | 121,463 | $ | 59,835 | ||||||
Basic earnings per common share | ||||||||||||
Weighted average number of common shares outstanding — basic (denominator) | 29,166 | 29,105 | 28,892 | |||||||||
Basic earnings per common share | $ | 3.24 | $ | 4.17 | $ | 2.07 | ||||||
Diluted earnings per common share | ||||||||||||
Weighted average number of common shares outstanding — basic | 29,166 | 29,105 | 28,892 | |||||||||
Add exercise of options reduced by the number of shares that could have been purchased with the proceeds of such exercise | 305 | 248 | 381 | |||||||||
Weighted average number of common shares outstanding — diluted (denominator) | 29,471 | 29,353 | 29,273 | |||||||||
Diluted earnings per common share | $ | 3.21 | $ | 4.14 | $ | 2.04 | ||||||
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For the years ended December 31, | 2010 | 2009 | 2008 | |||||||||
(In thousands) | ||||||||||||
Dividends from subsidiaries | $ | 68,784 | $ | 92,785 | $ | 101,270 | ||||||
Interest income | 11 | 180 | 263 | |||||||||
Other income | 7,262 | 6,979 | 5,543 | |||||||||
Total income | 76,057 | 99,944 | 107,076 | |||||||||
Interest on borrowings | 1,824 | 1,749 | 2,271 | |||||||||
Salaries and benefits | 7,219 | 7,182 | 6,487 | |||||||||
Other expense | 1,749 | 2,643 | 2,256 | |||||||||
Total expenses | 10,792 | 11,574 | 11,014 | |||||||||
Income before taxes and equity in undistributed income of subsidiaries | 65,265 | 88,370 | 96,062 | |||||||||
Income tax benefit | 1,416 | 2,279 | 2,074 | |||||||||
Earnings of subsidiaries greater (less) than subsidiary dividends | 27,896 | 34,777 | (38,301 | ) | ||||||||
Net income | 94,577 | 125,426 | 59,835 | |||||||||
Other comprehensive income (loss), net of tax | (3,555 | ) | 2,674 | 5,560 | ||||||||
Comprehensive income | $ | 91,022 | $ | 128,100 | $ | 65,395 | ||||||
Balances as of December 31, | 2010 | 2009 | ||||||
(In thousands) | ||||||||
Assets | ||||||||
Cash and due from banks | $ | 1,205 | $ | 1,200 | ||||
Money market assets and investment securities available for sale | 3,342 | 2,703 | ||||||
Investment in subsidiaries | 545,307 | 521,414 | ||||||
Premises and equipment, net | 11,107 | 11,612 | ||||||
Accounts receivable from subsidiaries | 700 | 689 | ||||||
Other assets | 28,830 | 27,134 | ||||||
Total assets | $ | 590,491 | $ | 564,752 | ||||
Liabilities | ||||||||
Debt financing and notes payable | $ | 27,673 | $ | 42,507 | ||||
Other liabilities | 17,531 | 16,797 | ||||||
Total liabilities | 45,204 | 59,304 | ||||||
Shareholders’ equity | 545,287 | 505,448 | ||||||
Total liabilities and shareholders’ equity | $ | 590,491 | $ | 564,752 | ||||
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For the years ended December 31, | 2010 | 2009 | 2008 | |||||||||
(In thousands) | ||||||||||||
Operating Activities | ||||||||||||
Net income | $ | 94,577 | $ | 125,426 | $ | 59,835 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 172 | 186 | 204 | |||||||||
(Increase) decrease in accounts receivable from affiliates | (11 | ) | 1,150 | (956 | ) | |||||||
Increase in other assets | (2,212 | ) | (1,191 | ) | (2,484 | ) | ||||||
Stock option expense | 1,380 | 1,132 | 1,193 | |||||||||
Excess tax benefits from stock based compensation | (1,004 | ) | (2,188 | ) | (1,130 | ) | ||||||
Provision for deferred income tax | 789 | 3,758 | 2,801 | |||||||||
Increase (decrease) in other liabilities | 1,833 | 1,765 | (10 | ) | ||||||||
Earnings of subsidiaries (greater) less than subsidiary dividends | (27,896 | ) | (34,777 | ) | 38,301 | |||||||
Writedown of property and equipment | 228 | — | — | |||||||||
Impairment and losses on sale of investment securities | — | — | 1,246 | |||||||||
Net cash provided by operating activities | 67,856 | 95,261 | 99,000 | |||||||||
Investing Activities | ||||||||||||
Investment in subsidiary bank | — | (93,726 | ) | — | ||||||||
Purchases of premises and equipment | (30 | ) | (70 | ) | (204 | ) | ||||||
Net increase in short term investments | — | (1 | ) | (10 | ) | |||||||
Net cash used in investing activities | (30 | ) | (93,797 | ) | (214 | ) | ||||||
Financing Activities | ||||||||||||
Net change in short-term debt | (14,700 | ) | 15,700 | (19,532 | ) | |||||||
Net reductions in notes payable and long-term borrowings | — | — | (10,000 | ) | ||||||||
Proceeds from issuance of preferred stock and warrants | — | 83,726 | — | |||||||||
Redemption of preferred stock | — | (83,726 | ) | — | ||||||||
Preferred stock dividends | — | (2,756 | ) | — | ||||||||
Exercise of stock options/issuance of shares | 16,688 | 9,610 | 22,830 | |||||||||
Excess tax benefits from stock based compensation | 1,004 | 2,188 | 1,130 | |||||||||
Retirement of common stock including repurchases | (28,719 | ) | (2,046 | ) | (35,914 | ) | ||||||
Dividends | (42,094 | ) | (41,061 | ) | (40,236 | ) | ||||||
Net cash used in financing activities | (67,821 | ) | (18,365 | ) | (81,722 | ) | ||||||
Net change in cash and due from banks | 5 | (16,901 | ) | 17,064 | ||||||||
Cash and due from banks at beginning of year | 1,200 | 18,101 | 1,037 | |||||||||
Cash and due from banks at end of year | $ | 1,205 | $ | 1,200 | $ | 18,101 | ||||||
Supplemental Disclosures: | ||||||||||||
Supplemental disclosure: | ||||||||||||
(Decrease) increase in unrealized gains on securities available for sale, net of tax | $ | (3,591 | ) | $ | 2,638 | $ | 5,524 | |||||
Supplemental disclosure of cash flow activity: | ||||||||||||
Interest paid for the period | 1,824 | 1,749 | 2,435 | |||||||||
Income tax payments for the period | 50,388 | 36,852 | 24,056 |
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March 31, | June 30, | September 30, | December 31, | |||||||||||||
(In thousands, except per share data and | ||||||||||||||||
price range of common stock) | ||||||||||||||||
2010 | ||||||||||||||||
Interest and fee income | $ | 56,003 | $ | 55,078 | $ | 55,203 | $ | 54,871 | ||||||||
Net interest income | 52,469 | 51,933 | 52,107 | 51,806 | ||||||||||||
Provision for credit losses | 2,800 | 2,800 | 2,800 | 2,800 | ||||||||||||
Noninterest income | 15,470 | 15,770 | 15,071 | 15,143 | ||||||||||||
Noninterest expense | 32,031 | 32,095 | 31,508 | 31,513 | ||||||||||||
Income before taxes | 33,108 | 32,808 | 32,870 | 32,636 | ||||||||||||
Net income | 23,576 | 23,561 | 23,709 | 23,731 | ||||||||||||
Basic earnings per common share | 0.81 | 0.81 | 0.81 | 0.82 | ||||||||||||
Diluted earnings per common share | 0.80 | 0.80 | 0.81 | 0.81 | ||||||||||||
Dividends paid per common share | 0.36 | 0.36 | 0.36 | 0.36 | ||||||||||||
Price range, common stock | 50.87-61.25 | 52.17-60.37 | 50.04-55.99 | 48.70-56.72 | ||||||||||||
2009 | ||||||||||||||||
Interest and fee income | $ | 59,185 | $ | 63,072 | $ | 61,196 | $ | 58,496 | ||||||||
Net interest income | 54,352 | 57,327 | 56,696 | 54,194 | ||||||||||||
Provision for credit losses | 1,800 | 2,600 | 2,800 | 3,300 | ||||||||||||
Noninterest income | 63,968 | 16,386 | 15,961 | 15,696 | ||||||||||||
Noninterest expense | 34,123 | 38,666 | 35,151 | 32,836 | ||||||||||||
Income before taxes | 82,397 | 32,447 | 34,706 | 33,754 | ||||||||||||
Net income | 52,825 | 23,183 | 25,257 | 24,161 | ||||||||||||
Net income applicable to common equity | 52,247 | 22,076 | 23,791 | 23,349 | ||||||||||||
Basic earnings per share | 1.81 | 0.76 | 0.81 | 0.80 | ||||||||||||
Diluted earnings per share | 1.80 | 0.75 | 0.81 | 0.79 | ||||||||||||
Dividends paid per share | 0.36 | 0.35 | 0.35 | 0.35 | ||||||||||||
Price range, common stock | 33.08-51.29 | 44.13-56.79 | 45.42-54.70 | 47.08-56.80 | ||||||||||||
2008 | ||||||||||||||||
Interest and fee income | $ | 55,394 | $ | 52,655 | $ | 50,975 | $ | 49,445 | ||||||||
Net interest income | 42,566 | 44,269 | 43,537 | 44,854 | ||||||||||||
Provision for credit losses | 600 | 600 | 600 | 900 | ||||||||||||
Noninterest income (loss) | 19,378 | (3,843 | ) | (27,499 | ) | 9,908 | ||||||||||
Noninterest expense | 23,056 | 26,337 | 25,203 | 26,165 | ||||||||||||
Income (loss) before taxes | 38,288 | 13,489 | (9,765 | ) | 27,697 | |||||||||||
Net income | 26,778 | 12,202 | 44 | 20,811 | ||||||||||||
Basic earnings per share | 0.93 | 0.42 | 0.00 | 0.72 | ||||||||||||
Diluted earnings per share | 0.92 | 0.42 | 0.00 | 0.71 | ||||||||||||
Dividends paid per share | 0.34 | 0.35 | 0.35 | 0.35 | ||||||||||||
Price range, common stock | 39.00-56.49 | 50.55-61.49 | 35.50-69.00 | 41.17-60.00 |
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Westamerica Bancorporation:
/s/ KPMG LLP |
February 25, 2011
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Held | ||||||
Name of Executive | Position | Since | ||||
David L. Payne | Mr. Payne, born in 1955, is the Chairman of the Board, President and Chief Executive Officer of the Company. Mr. Payne is President and Chief Executive Officer of Gibson Printing and Publishing Company and Gibson Radio and Publishing Company which are newspaper, commercial printing and real estate investment companies headquartered in Vallejo, California. | 1984 | ||||
John “Robert” Thorson | Mr. Thorson, born in 1960, is Senior Vice President and Chief Financial Officer for the Company. Mr. Thorson joined Westamerica Bancorporation in 1989, was Vice President and Manager of Human Resources from 1995 until 2001 and was Senior Vice President and Treasurer from 2002 until 2005. | 2005 | ||||
Jennifer J. Finger | Ms. Finger, born in 1954, is Senior Vice President and Treasurer for the Corporation. Ms. Finger joined Westamerica Bancorporation in 1997, was Senior Vice President and Chief Financial Officer until 2005. | 2005 | ||||
Dennis R. Hansen | Mr. Hansen, born in 1950, is Senior Vice President and Manager of the Operations and Systems Administration of Community Banker Services Corporation. Mr. Hansen joined Westamerica Bancorporation in 1978 and was Senior Vice President and Controller for the Company until 2005. | 2005 | ||||
David L. Robinson | Mr. Robinson, born in 1959, is Senior Vice President and Banking Division Manager of Westamerica Bank. Mr. Robinson joined Westamerica Bancorporation in 1993 and has held several banking positions, most recently, Senior Vice President and Southern Banking Division Manager until 2007. | 2007 | ||||
Russell W. Rizzardi | Mr. Rizzardi, born in 1955, is Senior Vice President and Chief Credit Administrator of Westamerica Bank. Mr. Rizzardi joined Westamerica Bank in 2007. He has been in the banking industry since 1979 and was previously with Wells Fargo Bank and U.S. Bank. | 2008 |
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Number of securities | ||||||||||||
remaining available for | ||||||||||||
Number of securities | future issuance under | |||||||||||
to be issued upon | Weighted-average | equity compensation | ||||||||||
exercise of outstanding | exercise price of | plans (excluding | ||||||||||
options, warrants | outstanding options, | securities reflected | ||||||||||
Plan category | and rights | warrants and rights | in column (a)) | |||||||||
(a) | (b) | (c) | ||||||||||
Equity compensation plans approved by security holders | 2,417 | $ | 48 | 3,717 | * | |||||||
Equity compensation plans not approved by security holders | — | N/A | — | |||||||||
Total | 2,417 | $ | 48 | 3,717 | ||||||||
* | The Amended and Restated Stock Option Plan, Article III, provides that the number of shares reserved for Awards under the plan may increase on the first day of each fiscal year by an amount equal to the least of 1) 2% of the shares outstanding as of the last day of the prior fiscal year, 2) 675,000 shares, or 3) such lesser amount as determined by the Board. |
(a) | 1. | Financial Statements: | ||||
See Index to Financial Statements on page 50. The financial statements included in Item 8 are filed as part of this report. | ||||||
(a) | 2. | Financial statement schedules required. No financial statement schedules are filed as part of this report since the required information is included in the consolidated financial statements, including the notes thereto, or the circumstances requiring inclusion of such schedules are not present. | ||||
(a) | 3. | Exhibits: |
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WESTAMERICA BANCORPORATION | |||
/s/ John “Robert” Thorson | |||
John “Robert” Thorson | |||
Senior Vice President and Chief Financial Officer (Chief Financial and Accounting Officer) | |||
Signature | Title | Date | ||
/s/ David L. Payne | Chairman of the Board and Directors President and Chief Executive Officer (Principal Executive Officer) | February 25, 2011 | ||
/s/ John “Robert” Thorson | Senior Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) | February 25, 2011 | ||
/s/ Etta Allen | Director | February 25, 2011 | ||
/s/ Louis E. Bartolini | Director | February 25, 2011 | ||
/s/ E. Joseph Bowler | Director | February 25, 2011 | ||
/s/ Arthur C. Latno, Jr. | Director | February 25, 2011 | ||
/s/ Patrick D. Lynch | Director | February 25, 2011 | ||
/s/ Catherine C. MacMillan | Director | February 25, 2011 | ||
/s/ Ronald A. Nelson | Director | February 25, 2011 | ||
/s/ Edward B. Sylvester | Director | February 25, 2011 |
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Exhibit | ||||
Number | ||||
3 | (a) | Restated Articles of Incorporation (composite copy), incorporated by reference to Exhibit 3(a) to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 1997, filed with the Securities and Exchange Commission on March 30, 1998. | ||
3 | (b) | By-laws, as amended (composite copy), incorporated by reference to Exhibit 3(b) to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2009, filed with the Securities and Exchange Commission on February 26, 2010. | ||
3 | (c) | Certificate of Determination of Fixed Rate Cumulative Perpetual preferred Stock, Series A of Westamerica Bancorporation dated February 10, 2009, incorporated by reference to Exhibit 99.1 to the Registrant’s Form 8-K, filed with the Securities and Exchange Commission on February 13, 2009. | ||
4 | (c) | Warrant to Purchase Common Stock pursuant to the Letter Agreement between the Company and the United States Department of the Treasury dated February 13, 2009 incorporated by reference to Exhibit 4.2 to the Registrant’s Form 8-K, filed with the Securities and Exchange Commission on February 19, 2009. | ||
10 | (a)* | Amended and Restated Stock Option Plan of 1995, incorporated by reference to Exhibit A to the Registrant’s definitive Proxy Statement pursuant to Regulation 14(a) filed with the Securities and Exchange Commission on March 17, 2003. | ||
10 | (c) | Note Purchase Agreement by and between Westamerica Bancorporation and The Northwestern Mutual Life Insurance Company dated as of October 30, 2003, pursuant to which registrant issued its 5.31% Senior Notes due October 31, 2013 in the principal amount of $15 million and form of 5.31% Senior Note due October 31, 2013 incorporated by reference to Exhibit 4 of Registrant’s Quarterly Report on Form 10-Q for the third quarter ended September 30, 2003, filed with the Securities and Exchange Commission on November 13, 2003. | ||
10 | (d)* | Westamerica Bancorporation Chief Executive Officer Deferred Compensation Agreement by and between Westamerica Bancorporation and David L. Payne, dated December 18, 1998 incorporated by reference to Exhibit 10(e) to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 1999, filed with the Securities and Exchange Commission on March 29, 2000. | ||
10 | (e)* | Description of Executive Cash Bonus Program incorporated by reference to Exhibit 10(e) to Exhibit 2.1 of Registrant’s Form 8-K filed with the Securities and Exchange Commission on March 11, 2005. | ||
10 | (f)* | Non-Qualified Annuity Performance Agreement with David L. Payne dated November 19, 1997 incorporated by reference to Exhibit 10(f) to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2004, filed with the Securities and Exchange Commission on March 15, 2005. | ||
10 | (g)* | Amended and Restated Westamerica Bancorporation Stock Option Plan of 1995 Nonstatutory Stock Option Agreement Form incorporated by reference to Exhibit 10(g) to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2004, filed with the Securities and Exchange Commission on March 15, 2005. | ||
10 | (h)* | Amended and Restated Westamerica Bancorporation Stock Option Plan of 1995 Restricted Performance Share Grant Agreement Form incorporated by reference to Exhibit 10(h) to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2004, filed with the Securities and Exchange Commission on March 15, 2005. | ||
10 | (i)* | Amended Westamerica Bancorporation and Subsidiaries Deferred Compensation Plan (As restated effective January 1, 2005) dated December 31, 2008 incorporated by reference to Exhibit 10(i) to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008, filed with the Securities and Exchange Commission on February 27, 2009. | ||
10 | (j)* | Amended and Restated Westamerica Bancorporation Deferral Plan (Adopted October 26, 1995) dated December 31, 2008 incorporated by reference to Exhibit 10(j) to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008, filed with the Securities and Exchange Commission on February 27, 2009. | ||
10 | (k)* | Form of Restricted Performance Share Deferral Election pursuant to the Westamerica Bancorporation Deferral Plan incorporated by reference to Exhibit 10(i) to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2005, filed with the Securities and Exchange Commission on March 10, 2006. | ||
10 | (l) | Purchase and Assumption Agreement by and between Federal Deposit Insurance Corporation and Westamerica Bank dated February 6, 2009, incorporated by reference to Exhibit 99.2 to the Registrant’s Form 8-K, filed with the Securities and Exchange Commission on February 11, 2009. | ||
10 | (m) | Letter Agreement between the Company and the United States Department of the Treasury dated February 13, 2009 incorporated by reference to Exhibit 10.1 to the Registrant’s Form 8-K, filed with the Securities and Exchange Commission on February 19, 2009. | ||
10 | (n) | Additional Letter Agreement between the Company and the United States Department of the Treasury dated February 13, 2009 incorporated by reference to Exhibit 10.2 to the Registrant’s Form 8-K, filed with the Securities and Exchange Commission on February 19, 2009. | ||
10 | (o)* | Form of Waiver pursuant to the Letter Agreement between the Company and the United States Department of the Treasury dated February 13, 2009 incorporated by reference to Exhibit 10.3 to the Registrant’s Form 8-K, filed with the Securities and Exchange Commission on February 19, 2009. | ||
10 | (p)* | Form of Consent pursuant to the Letter Agreement between the Company and the United States Department of the Treasury dated February 13, 2009 incorporated by reference to Exhibit 10.4 to the Registrant’s Form 8-K, filed with the Securities and Exchange Commission on February 19, 2009. | ||
10 | (q) | Resolutions of the Employee Benefits/Compensation Committee of Westamerica Bancorporation dated February 9, 2009 incorporated by reference to Exhibit 10.5 to the Registrant’s Form 8-K, filed with the Securities and Exchange Commission on February 19, 2009. |
Table of Contents
Exhibit | ||||
Number | ||||
11.1 | Statement re computation of per share earnings incorporated by reference to Note 19 of the Notes to the Consolidated Financial Statements of this report. | |||
14 | Code of Ethics incorporated by reference to Exhibit 14 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2003, filed with the Securities and Exchange Commission on March 10, 2004. | |||
21 | Subsidiaries of the registrant. | |||
23 | (a) | Consent of KPMG LLP | ||
31.1 | Certification of Chief Executive Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a) | |||
31.2 | Certification of Chief Financial Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a) | |||
32.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |||
32.2 | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
* | Indicates management contract or compensatory plan or arrangement. |