EXHIBIT 99.1
SAN RAFAEL, Calif., July 19, 2011 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq:WABC), parent company of Westamerica Bank, today reported net income for the second quarter of 2011 of $21.3 million and diluted earnings per common share ("EPS") of $0.74. Second quarter 2011 results include accruals for estimated settlement costs equivalent to $0.04 EPS. Second quarter 2011 results compare to first quarter 2011 net income of $22.4 million and EPS of $0.77.
"Westamerica's second quarter net income represents a return on average shareholders' equity of 15.6 percent. We are pleased to be generating relatively high returns for our shareholders under current economic and operating conditions. Our second quarter 2011 net interest margin was 5.38 percent, supported by a relatively low 0.21 percent cost of funding our loan and investment portfolios. With 79 percent of deposits represented by low-cost checking and savings accounts, Westamerica's funding cost will continue to remain relatively low if interest rates begin rising," said Chairman, President and CEO David Payne. "The credit quality of Westamerica's legacy loans remained stable, while non-performing purchased loans continued to decline due to our workout and collection activities. Westamerica's capital levels remain robust with a total regulatory capital ratio of 15.7 percent," added Payne.
Net interest income on a fully taxable equivalent basis was $55.8 million for the second quarter 2011 compared to $56.6 million for the second quarter 2010. The change in net interest income is due to reductions in the net interest margin. Yields on interest-earning assets have declined due to relatively low interest rates prevailing in the market. Economic conditions and deleveraging by businesses and individuals have reduced loan volumes, placing greater reliance on lower-yielding investment securities. Rates on interest-bearing deposits and borrowings have declined to offset some of the decline in asset yields. The second quarter 2011 net interest margin on a fully taxable equivalent basis was 5.38 percent, compared to 5.62 percent for the second quarter 2010.
The provision for loan losses was $2.8 million for the second quarter 2011, unchanged from the prior quarter and second quarter 2010. Second quarter 2011 net loan losses totaled $4.1 million, or 0.83 percent (annualized) of average originated loans. Comparable net loan loss rates were 0.83 percent and 0.64 percent, respectively, for the prior quarter and second quarter 2010. At June 30, 2011, the $33.0 million reserve for loan losses represented 154 percent of nonperforming originated loans and 199 percent of annualized first half 2011 net loan losses.
Noninterest income for the second quarter 2011 increased $549 thousand to $15.3 million in comparison to the prior quarter, primarily due to higher merchant card processing fees, financial service commissions, and other fees. Noninterest income for the second quarter 2011 declined $478 thousand in comparison to the second quarter 2010, primarily due to lower service charges on deposit accounts. New overdraft regulations, effective in the third quarter 2010, have caused a reduction in overdraft fees.
Noninterest expense for the second quarter 2011 totaled $34.3 million, compared to $31.3 million in the prior quarter and $32.1 million in the second quarter 2010. The increase in second quarter 2011 noninterest expense is primarily due to accruals for expected settlement costs, as well as higher loan collection related costs, and higher professional fees. Offsetting these increased expenses is a reduction in deposit insurance assessments due to new assessment rules effective April 1, 2011.
Westamerica Bancorporation, through its wholly owned subsidiary Westamerica Bank, operates commercial banking and trust offices throughout Northern and Central California. At June 30, 2011, Westamerica Bancorporation's tangible common equity-to-asset ratio was 8.4 percent, Westamerica Bancorporation's total regulatory capital ratio was 15.7 percent, and Westamerica Bank's total regulatory capital ratio was 15.6 percent. At June 30, 2011, the Company's assets totaled $4.9 billion and loans outstanding totaled $2.8 billion.
Westamerica Bancorporation Web Address: www.westamerica.com
The Westamerica Bancorporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3638
FORWARD-LOOKING INFORMATION:
The following appears in accordance with the Private Securities Litigation Reform Act of 1995:
This press release may contain forward-looking statements about the Company, including descriptions of plans or objectives of its management for future operations, products or services, and forecasts of its revenues, earnings or other measures of economic performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may."
Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors — many of which are beyond the Company's control — could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. The Company's most recent reports filed with the Securities and Exchange Commission, including the annual report for the year ended December 31, 2010 filed on Form 10-K and quarterly report for the quarter ended March 31, 2011 filed on Form 10-Q, describe some of these factors, including certain credit, market, operational, liquidity and interest rate risks associated with the Company's business and operations. Other factors described in these reports include changes in business and economic conditions, competition, fiscal and monetary policies, disintermediation, legislation including the Sarbanes-Oxley Act of 2002 and the Gramm-Leach-Bliley Act of 1999, and mergers and acquisitions.
Forward-looking statements speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date forward looking statements are made.
| Public Information July 19, 2011 | ||||
| WESTAMERICA BANCORPORATION | ||||
| FINANCIAL HIGHLIGHTS | ||||
| June 30, 2011 | ||||
| 1. Net Income Summary. | ||||
| (in thousands except per-share amounts) | ||||
| % | ||||
| Q2'11 | Q2'10 | Change | Q1'11 | |
| Net Interest Income (FTE) | $55,837 | $56,573 | -1.3% | $54,993 |
| Provision for Loan Losses | 2,800 | 2,800 | 0.0% | 2,800 |
| Total Noninterest Income | 15,292 | 15,770 | -3.0% | 14,743 |
| Noninterest Expense: | ||||
| Settlements | 2,100 | -- | n/m | -- |
| Other | 32,209 | 32,095 | 0.4% | 31,323 |
| Total Noninterest Expense | 34,309 | 32,095 | 6.9% | 31,323 |
| Income Before Taxes (FTE) | 34,020 | 37,448 | -9.2% | 35,613 |
| Income Tax Provision (FTE) | 12,751 | 13,887 | -8.2% | 13,231 |
| Net Income | $21,269 | $23,561 | -9.7% | $22,382 |
| Average Common Shares Outstanding | 28,771 | 29,207 | -1.5% | 29,021 |
| Diluted Average Common Shares | 28,923 | 29,568 | -2.2% | 29,225 |
| Operating Ratios: | ||||
| Basic Earnings Per Common Share | $0.74 | $0.81 | -8.6% | $0.77 |
| Diluted Earnings Per Common Share | 0.74 | 0.80 | -7.5% | 0.77 |
| Return On Assets (a) | 1.73% | 2.00% | 1.84% | |
| Return On Common Equity (a) | 15.6% | 18.2% | 16.6% | |
| Net Interest Margin (FTE) (a) | 5.38% | 5.62% | 5.35% | |
| Efficiency Ratio (FTE) | 48.2% | 44.4% | 44.9% | |
| Dividends Paid Per Common Share | $0.36 | $0.36 | 0.0% | $0.36 |
| Common Dividend Payout Ratio | 49% | 45% | 47% | |
| (FTE) Fully Taxable Equivalent | ||||
| (a) Annualized | ||||
| % | ||||
| 6/30'11YTD | 6/30'10YTD | Change | ||
| Net Interest Income (FTE) | $110,830 | $113,602 | -2.4% | |
| Provision for Loan Losses | 5,600 | 5,600 | 0.0% | |
| Noninterest Income | 30,035 | 31,240 | -3.9% | |
| Noninterest Expense: | ||||
| Settlements | 2,100 | 23 | n/m | |
| Other | 63,532 | 64,103 | -0.9% | |
| Total Noninterest Expense | 65,632 | 64,126 | 2.3% | |
| Income Before Taxes (FTE) | 69,633 | 75,116 | -7.3% | |
| Income Tax Provision (FTE) | 25,982 | 27,979 | -7.1% | |
| Net Income | $43,651 | $47,137 | -7.4% | |
| Average Common Shares Outstanding | 28,895 | 29,217 | -1.1% | |
| Diluted Average Common Shares | 29,073 | 29,582 | -1.7% | |
| Operating Ratios: | ||||
| Basic Earnings Per Common Share | $1.51 | $1.61 | -6.2% | |
| Diluted Earnings Per Common Share | 1.51 | 1.59 | -5.0% | |
| Return On Assets (a) | 1.78% | 1.99% | ||
| Return On Common Equity (a) | 16.1% | 18.5% | ||
| Net Interest Margin (FTE) (a) | 5.37% | 5.61% | ||
| Efficiency Ratio (FTE) | 46.6% | 44.3% | ||
| Dividends Paid Per Common Share | $0.72 | $0.72 | 0.0% | |
| Common Dividend Payout Ratio | 48% | 45% | ||
| (a) Annualized | ||||
| 2. Net Interest Income. | ||||
| (dollars in thousands) | ||||
| % | ||||
| Q2'11 | Q2'10 | Change | Q1'11 | |
| Interest and Fee Income (FTE) | $57,990 | $59,718 | -2.9% | $57,296 |
| Interest Expense | 2,153 | 3,145 | -31.5% | 2,303 |
| Net Interest Income (FTE) | $55,837 | $56,573 | -1.3% | $54,993 |
| Average Earning Assets | $4,156,226 | $4,033,831 | 3.0% | $4,153,110 |
| Average Interest-- | ||||
| Bearing Liabilities | 2,854,427 | 2,754,458 | 3.6% | 2,870,661 |
| Yield on Earning Assets (FTE) (a) | 5.59% | 5.93% | 5.57% | |
| Cost of Funds (a) | 0.21% | 0.31% | 0.22% | |
| Net Interest Margin (FTE) (a) | 5.38% | 5.62% | 5.35% | |
| Interest Expense/ | ||||
| Interest-Bearing Liabilities (a) | 0.30% | 0.46% | 0.34% | |
| Net Interest Spread (FTE) (a) | 5.29% | 5.47% | 5.23% | |
| % | ||||
| 6/30'11YTD | 6/30'10YTD | Change | ||
| Interest and Fee Income (FTE) | $115,286 | $120,281 | -4.2% | |
| Interest Expense | 4,456 | 6,679 | -33.3% | |
| Net Interest Income (FTE) | $110,830 | $113,602 | -2.4% | |
| Average Earning Assets | $4,154,676 | $4,072,374 | 2.0% | |
| Average Interest-- | ||||
| Bearing Liabilities | 2,862,498 | 2,800,047 | 2.2% | |
| Yield on Earning Assets (FTE) (a) | 5.59% | 5.94% | ||
| Cost of Funds (a) | 0.22% | 0.33% | ||
| Net Interest Margin (FTE) (a) | 5.37% | 5.61% | ||
| Interest Expense/ | ||||
| Interest-Bearing Liabilities (a) | 0.31% | 0.48% | ||
| Net Interest Spread (FTE) (a) | 5.28% | 5.46% | ||
| (a) Annualized | ||||
| 3. Loans & Other Earning Assets. | ||||
| (average volume, dollars in thousands) | ||||
| % | ||||
| Q2'11 | Q2'10 | Change | Q1'11 | |
| Total Assets | $4,927,849 | $4,731,270 | 4.2% | $4,940,998 |
| Total Earning Assets | 4,156,226 | 4,033,831 | 3.0% | 4,153,110 |
| Total Loans | 2,801,094 | 2,924,515 | -4.2% | 2,870,307 |
| Commercial Loans | 674,441 | 773,814 | -12.8% | 713,981 |
| Commercial RE Loans | 1,222,393 | 1,224,442 | -0.2% | 1,251,610 |
| Consumer Loans | 904,260 | 926,259 | -2.4% | 904,716 |
| Total Investment Securities | 1,355,132 | 1,109,316 | 22.2% | 1,282,803 |
| Available For Sale (Market) | 739,211 | 435,317 | 69.8% | 705,570 |
| Held To Maturity | 615,921 | 673,999 | -8.6% | 577,233 |
| Unrealized Gain | 17,874 | 16,361 | n/m | 12,975 |
| Loans/Deposits | 67.6% | 75.1% | 69.4% | |
| 6/30'11YTD | 6/30'10YTD | Change | ||
| Total Assets | $4,934,387 | $4,771,872 | 3.4% | |
| Total Earning Assets | 4,154,676 | 4,072,374 | 2.0% | |
| Total Loans | 2,835,509 | 2,960,372 | -4.2% | |
| Commercial Loans | 694,101 | 784,970 | -11.6% | |
| Commercial RE Loans | 1,236,921 | 1,231,354 | 0.5% | |
| Consumer Loans | 904,487 | 944,048 | -4.2% | |
| Total Investment Securities | 1,319,167 | 1,112,002 | 18.6% | |
| Available For Sale (Market) | 722,484 | 419,720 | 72.1% | |
| Held To Maturity | 596,683 | 692,282 | -13.8% | |
| Unrealized Gain | 17,874 | 16,361 | n/m | |
| Loans/Deposits | 68.5% | 75.4% | ||
| 4. Deposits & Other Interest-Bearing Liabilities. | ||||
| (average volume, dollars in thousands) | ||||
| % | ||||
| Q2'11 | Q2'10 | Change | Q1'11 | |
| Total Deposits | $4,143,749 | $3,895,671 | 6.4% | $4,138,799 |
| Noninterest Demand | 1,466,754 | 1,384,249 | 6.0% | 1,463,075 |
| Interest Bearing Transaction | 703,907 | 664,952 | 5.9% | 716,111 |
| Savings | 1,111,606 | 954,367 | 16.5% | 1,077,203 |
| Time greater than $100K | 543,247 | 541,213 | 0.4% | 548,238 |
| Time less than $100K | 318,235 | 350,890 | -9.3% | 334,172 |
| Total Short-Term Borrowings | 103,177 | 206,313 | -50.0% | 110,848 |
| Federal Home Loan Bank Advances | 48,248 | 10,273 | n/m | 57,771 |
| Long-Term Debt | 26,007 | 26,450 | -1.7% | 26,318 |
| Shareholders' Equity | 545,637 | 518,128 | 5.3% | 545,203 |
| Demand Deposits/ | ||||
| Total Deposits | 35.4% | 35.5% | 35.4% | |
| Transaction & Savings | ||||
| Deposits / Total Deposits | 79.2% | 77.1% | 78.7% | |
| % | ||||
| 6/30'11YTD | 6/30'10YTD | Change | ||
| Total Deposits | $4,141,288 | $3,925,321 | 5.5% | |
| Noninterest Demand | 1,464,925 | 1,382,036 | 6.0% | |
| Interest Bearing Transaction | 709,975 | 664,239 | 6.9% | |
| Savings | 1,094,500 | 959,898 | 14.0% | |
| Time greater than $100K | 545,729 | 548,537 | -0.5% | |
| Time less than $100K | 326,159 | 370,611 | -12.0% | |
| Total Short-Term Borrowings | 106,991 | 212,898 | -49.7% | |
| Federal Home Loan Bank Advances | 52,983 | 17,397 | n/m | |
| Long-Term Debt | 26,161 | 26,467 | -1.2% | |
| Shareholders' Equity | 545,421 | 512,796 | 6.4% | |
| Demand Deposits/ | ||||
| Total Deposits | 35.4% | 35.2% | ||
| Transaction & Savings | ||||
| Deposits / Total Deposits | 78.9% | 76.6% | ||
| 5. Interest Yields Earned & Rates Paid. | ||||
| (dollars in thousands) | ||||
| Q2'11 | ||||
| Average | Income/ | Yield (a) / | ||
| Volume | Expense | Rate | ||
| Interest & Fee Income Earned | ||||
| Total Earning Assets (FTE) | $4,156,226 | $57,990 | 5.59% | |
| Total Loans (FTE) | 2,801,094 | 42,120 | 6.03% | |
| Commercial Loans (FTE) | 674,441 | 10,826 | 6.44% | |
| Commercial RE Loans | 1,222,393 | 20,017 | 6.57% | |
| Consumer Loans | 904,260 | 11,277 | 5.00% | |
| Total Investments (FTE) | 1,355,132 | 15,870 | 4.68% | |
| Interest Expense Paid | ||||
| Total Earning Assets | 4,156,226 | 2,153 | 0.21% | |
| Total Interest-Bearing Liabilities | 2,854,427 | 2,153 | 0.30% | |
| Total Interest-Bearing Deposits | 2,676,995 | 1,777 | 0.27% | |
| Interest-Bearing Transaction | 703,907 | 194 | 0.11% | |
| Savings | 1,111,606 | 453 | 0.16% | |
| Time less than $100K | 318,235 | 548 | 0.69% | |
| Time greater than $100K | 543,247 | 582 | 0.43% | |
| Total Short-Term Borrowings | 103,177 | 47 | 0.18% | |
| Federal Home Loan Bank Advances | 48,248 | 128 | 1.05% | |
| Long-Term Debt | 26,007 | 201 | 3.08% | |
| Net Interest Income and | ||||
| Margin (FTE) | $55,837 | 5.38% | ||
| (a) Annualized | ||||
| Q2'10 | ||||
| Average | Income/ | Yield (a) / | ||
| Volume | Expense | Rate | ||
| Interest & Fee Income Earned | ||||
| Total Earning Assets (FTE) | $4,033,831 | $59,718 | 5.93% | |
| Total Loans (FTE) | 2,924,515 | 45,083 | 6.18% | |
| Commercial Loans (FTE) | 773,814 | 12,302 | 6.38% | |
| Commercial RE Loans | 1,224,442 | 20,240 | 6.63% | |
| Consumer Loans | 926,259 | 12,541 | 5.43% | |
| Total Investments (FTE) | 1,109,316 | 14,635 | 5.28% | |
| Interest Expense Paid | ||||
| Total Earning Assets | 4,033,831 | 3,145 | 0.31% | |
| Total Interest-Bearing Liabilities | 2,754,458 | 3,145 | 0.46% | |
| Total Interest-Bearing Deposits | 2,511,422 | 2,180 | 0.35% | |
| Interest-Bearing Transaction | 664,952 | 218 | 0.13% | |
| Savings | 954,367 | 659 | 0.28% | |
| Time less than $100K | 350,890 | 449 | 0.51% | |
| Time greater than $100K | 541,213 | 854 | 0.63% | |
| Total Short-Term Borrowings | 206,313 | 491 | 0.94% | |
| Federal Home Loan Bank Advances | 10,273 | 52 | 2.00% | |
| Long-Term Debt | 26,450 | 422 | 6.38% | |
| Net Interest Income and | ||||
| Margin (FTE) | $56,573 | 5.62% | ||
| (a) Annualized | ||||
| 6. Noninterest Income. | ||||
| (dollars in thousands except per-share amounts) | ||||
| % | ||||
| Q2'11 | Q2'10 | Change | Q1'11 | |
| Service Charges on Deposits | $7,577 | $8,629 | -12.2% | $7,521 |
| Merchant Processing Services | 2,391 | 2,176 | 9.9% | 2,171 |
| Debit Card Fees | 1,283 | 1,245 | 3.0% | 1,201 |
| ATM Processing Fees | 997 | 1,021 | -2.4% | 935 |
| Trust Fees | 482 | 448 | 7.5% | 493 |
| Financial Services Commissions | 117 | 223 | -47.6% | 29 |
| Other Income | 2,445 | 2,028 | 20.6% | 2,393 |
| Total Noninterest Income | $15,292 | $15,770 | -3.0% | $14,743 |
| Total Revenue (FTE) | $71,129 | $72,343 | -1.7% | $69,736 |
| Noninterest Income/Revenue (FTE) | 21.5% | 21.8% | 21.1% | |
| Service Charges/Avg. Deposits (a) | 0.73% | 0.89% | 0.74% | |
| Total Revenues (FTE) Per Avg. | ||||
| Common Share (a) | $9.92 | $9.93 | -0.2% | $9.75 |
| % | ||||
| 6/30'11YTD | 6/30'10YTD | Change | ||
| Service Charges on Deposits | $15,098 | $17,371 | -13.1% | |
| Merchant Processing Services | 4,562 | 4,397 | 3.8% | |
| Debit Card Fees | 2,484 | 2,419 | 2.7% | |
| ATM Processing Fees | 1,932 | 1,912 | 1.0% | |
| Trust Fees | 975 | 829 | 17.6% | |
| Financial Services Commissions | 146 | 372 | -60.7% | |
| Other Income | 4,838 | 3,940 | 22.8% | |
| Total Noninterest Income | $30,035 | $31,240 | -3.9% | |
| Total Revenue (FTE) | $140,865 | $144,842 | -2.7% | |
| Noninterest Income/Revenue (FTE) | 21.3% | 21.6% | ||
| Service Charges/Avg. Deposits (a) | 0.74% | 0.89% | ||
| Total Revenues (FTE) Per Avg. | ||||
| Common Share (a) | $9.83 | $10.00 | -1.7% | |
| (a) Annualized | ||||
| 7. Noninterest Expense. | ||||
| (dollars in thousands) | ||||
| % | ||||
| Q2'11 | Q2'10 | Change | Q1'11 | |
| Salaries & Benefits | $14,913 | $15,476 | -3.6% | $15,075 |
| Occupancy | 4,050 | 3,822 | 6.0% | 4,025 |
| Outsourced Data Processing | 2,122 | 2,202 | -3.7% | 2,456 |
| Settlements | 2,100 | -- | n/m | -- |
| Amortization of | ||||
| Identifiable Intangibles | 1,480 | 1,540 | -3.9% | 1,548 |
| Professional Fees | 1,453 | 867 | 67.7% | 850 |
| Equipment | 1,038 | 1,116 | -6.9% | 933 |
| Other Real Estate Owned | 990 | 314 | n/m | 145 |
| Courier | 852 | 903 | -5.6% | 843 |
| FDIC Insurance Assessment | 740 | 1,260 | -41.3% | 1,220 |
| Loan Expense | 544 | 475 | 14.4% | 394 |
| Telephone | 428 | 406 | 5.4% | 435 |
| Postage | 363 | 454 | -20.0% | 368 |
| Operational Losses | 341 | 158 | 116.3% | 248 |
| Stationery & Supplies | 323 | 330 | -1.9% | 323 |
| Other Operating | 2,572 | 2,772 | -7.2% | 2,460 |
| Total Noninterest Expense | $34,309 | $32,095 | 6.9% | $31,323 |
| Average Full Time Equivalent Staff | 987 | 1,018 | -3.0% | 1,001 |
| Average Assets per Avg. FTE Staff | $4,993 | $4,648 | 7.4% | $4,936 |
| Revenues (FTE) per Avg. FTE Staff (a) | 289 | 285 | 1.4% | 283 |
| Noninterest Expense/ | ||||
| Avg. Earning Assets (a) | 3.31% | 3.19% | 3.06% | |
| Noninterest Expense/Revenues (FTE) | 48.2% | 44.4% | 44.9% | |
| (a) Annualized | ||||
| % | ||||
| 6/30'11YTD | 6/30'10YTD | Change | ||
| Salaries & Benefits | $29,988 | $31,368 | -4.4% | |
| Occupancy | 8,075 | 7,599 | 6.3% | |
| Outsourced Data Processing | 4,578 | 4,442 | 3.1% | |
| Settlements | 2,100 | 23 | n/m | |
| Amortization of | ||||
| Identifiable Intangibles | 3,028 | 3,138 | -3.5% | |
| Professional Fees | 2,303 | 1,530 | 50.6% | |
| Equipment | 1,971 | 2,167 | -9.0% | |
| Other Real Estate Owned | 1,135 | 464 | 144.5% | |
| Courier | 1,695 | 1,810 | -6.3% | |
| FDIC Insurance Assessment | 1,960 | 2,580 | -24.0% | |
| Loan Expense | 938 | 893 | 5.0% | |
| Telephone | 863 | 795 | 8.5% | |
| Postage | 731 | 929 | -21.3% | |
| Operational Losses | 589 | 378 | 55.8% | |
| Stationery & Supplies | 646 | 680 | -5.0% | |
| Other Operating | 5,032 | 5,330 | -5.6% | |
| Total Noninterest Expense | $65,632 | $64,126 | 2.3% | |
| Average Full Time Equivalent Staff | 994 | 1,025 | -3.0% | |
| Average Assets per Avg. FTE Staff | $4,964 | $4,655 | 6.6% | |
| Revenues (FTE) per Avg. FTE Staff (a) | 286 | 285 | 0.4% | |
| Noninterest Expense/ | ||||
| Avg. Earning Assets (a) | 3.19% | 3.18% | ||
| Noninterest Expense/Revenues (FTE) | 46.6% | 44.3% | ||
| (a) Annualized | ||||
| 8. Provision for Loan Losses. | ||||
| (dollars in thousands) | ||||
| % | ||||
| Q2'11 | Q2'10 | Change | Q1'11 | |
| Average Total Loans | $2,801,094 | $2,924,515 | -4.2% | $2,870,307 |
| Avg. Total Purchased | ||||
| Covered Loans (1) | 644,555 | 788,108 | -18.2% | 674,806 |
| Avg. Total Purchased | ||||
| Non-Covered Loans (2) | 178,384 | -- | n/m | 193,440 |
| Avg. Total Originated Loans | 1,978,155 | 2,136,407 | -7.4% | 2,002,061 |
| Provision for Loan Losses | $2,800 | $2,800 | 0.0% | $2,800 |
| Gross Loan Losses | 5,221 | 4,255 | 22.7% | 5,243 |
| Net Loan Losses | 4,113 | 3,400 | 21.0% | 4,115 |
| Recoveries/Gross Losses | 21% | 20% | 22% | |
| Net Loan Losses/Avg. | ||||
| Originated Loans (a) | 0.83% | 0.64% | 0.83% | |
| Provision for Loan Losses/ | ||||
| Avg. Originated Loans (a) | 0.57% | 0.53% | 0.57% | |
| Provision for Loan Losses/ | ||||
| Net Loan Losses | 68.1% | 82.3% | 68.0% | |
| % | ||||
| 6/30'11YTD | 6/30'10YTD | Change | ||
| Average Total Loans | $2,835,509 | $2,960,372 | -4.2% | |
| Avg. Total Purchased | ||||
| Covered Loans (1) | 659,597 | 809,515 | -18.5% | |
| Avg. Total Purchased | ||||
| Non-Covered Loans (2) | 185,870 | -- | n/m | |
| Avg. Total Originated Loans | 1,990,042 | 2,150,857 | -7.5% | |
| Provision for Loan Losses | $5,600 | $5,600 | 0.0% | |
| Gross Loan Losses | 10,464 | 8,711 | 20.1% | |
| Net Loan Losses | 8,228 | 6,927 | 18.8% | |
| Recoveries/Gross Losses | 21% | 20% | ||
| Net Loan Losses/Avg. | ||||
| Originated Loans (a) | 0.83% | 0.65% | ||
| Provision for Loan Losses/ | ||||
| Avg. Originated Loans (a) | 0.57% | 0.53% | ||
| Provision for Loan Losses/ | ||||
| Net Loan Losses | 68.1% | 80.8% | ||
| (a) Annualized | ||||
| (1) Covered loans represent purchased loans on which losses are shared with the FDIC per a | ||||
| Loss Sharing Agreement. Covered loans were recorded at estimated fair value at | ||||
| February 6, 2009, the date of purchase. | ||||
| (2) Purchased non-covered loans represent purchased loans recorded at estimated fair value | ||||
| at August 20, 2010, the date of purchase. | ||||
| 9. Credit Quality. | ||||
| (dollars in thousands) | ||||
| % | ||||
| 6/30/11 | 6/30/10 | Change | 3/31/11 | |
| Nonperforming Originated Loans: | ||||
| Nonperforming Nonaccrual | $16,038 | $19,941 | -19.6% | $21,222 |
| Performing Nonaccrual | 4,877 | 24 | n/m | 234 |
| Total Nonaccrual Loans | 20,915 | 19,965 | 4.8% | 21,456 |
| 90+ Days Past Due Accruing Loans | 555 | 712 | -22.1% | 439 |
| Total | 21,470 | 20,677 | 3.8% | 21,895 |
| Repossessed Loan Collateral | 10,824 | 18,028 | -40.0% | 12,057 |
| Total Originated | ||||
| Nonperforming Assets | 32,294 | 38,705 | -16.6% | 33,952 |
| Nonperforming Purchased Covered Loans(1): | ||||
| Nonperforming Nonaccrual | 20,525 | 37,438 | -45.2% | 26,953 |
| Performing Nonaccrual | 7,066 | 22,908 | -69.2% | 6,705 |
| Total Nonaccrual Loans | 27,591 | 60,346 | -54.3% | 33,658 |
| 90+ Days Past Due Accruing Loans | 472 | 249 | 89.6% | 251 |
| Total | 28,063 | 60,595 | -53.7% | 33,909 |
| Repossessed Purchased Covered | ||||
| Loan Collateral (1) | 24,348 | 23,670 | 2.9% | 20,914 |
| Total Nonperforming Purchased | ||||
| Covered Assets (1) | 52,411 | 84,265 | -37.8% | 54,823 |
| Nonperforming Purchased Non-Covered Loans (2): | ||||
| Nonperforming Nonaccrual | 26,478 | -- | n/m | 33,975 |
| Performing Nonaccrual | 6,973 | -- | n/m | 7,613 |
| Total Nonaccrual Loans | 33,451 | -- | n/m | 41,588 |
| 90+ Days Past Due Accruing Loans | 159 | -- | n/m | 18 |
| Total | 33,610 | -- | n/m | 41,606 |
| Repossessed Purchased Non-Covered | ||||
| Loan Collateral (2) | 5,813 | -- | n/m | 2,556 |
| Total Nonperforming Purchased | ||||
| Non-Covered Assets (2) | 39,423 | -- | n/m | 44,162 |
| Total Nonperforming Assets | $124,128 | $122,970 | n/m | $132,937 |
| Total Originated Loans Outstanding | $1,963,642 | $2,124,570 | -7.6% | $1,986,976 |
| Total Purchased Covered | ||||
| Loans Outstanding (1) | 622,727 | 763,619 | -18.5% | 660,456 |
| Total Purchased Non-Covered | ||||
| Loans Outstanding (2) | 164,844 | -- | n/m | 187,203 |
| Total Loans Outstanding | $2,751,213 | $2,888,189 | -4.7% | $2,834,635 |
| Total Assets | $4,876,731 | $4,727,086 | 3.2% | $4,937,429 |
| Originated Loans: | ||||
| Allowance for Loan Losses | $33,008 | $39,716 | -16.9% | $34,321 |
| Allowance/Originated Loans | 1.68% | 1.87% | 1.73% | |
| Nonperforming Originated Loans/ | ||||
| Total Originated Loans | 1.09% | 0.97% | 1.10% | |
| Allowance/Originated | ||||
| Nonperforming Loans | 154% | 192% | 157% | |
| Purchased Covered Loans (1): | ||||
| Fair Value Discount on Purchased | ||||
| Covered Loans | $55,527 | $75,522 | $57,184 | |
| Discount/Purchased Covered | ||||
| Loans, gross | 8.19% | 9.00% | 7.97% | |
| Nonperforming Purchased Covered Loans/ | ||||
| Total Purchased Covered Loans | 4.51% | 7.94% | 5.13% | |
| Purchased Non-Covered Loans (2): | ||||
| Fair Value Discount on Purchased | ||||
| Non-Covered Loans | $22,078 | -- | $28,931 | |
| Discount/Purchased Non-Covered | 11.81% | -- | 13.39% | |
| Loans, gross | ||||
| Nonperforming Purchased Non-Covered Loans/ | ||||
| Total Purchased Non-Covered Loans | 20.39% | -- | 22.23% | |
| (1) Covered loans and repossessed loan collateral represent purchased assets on which losses | ||||
| are shared with the FDIC per a Loss-Sharing Agreement. Covered assets were recorded at | ||||
| estimated fair value at February 6, 2009, the date of purchase. | ||||
| (2) Purchased non-covered loans and other real estate owned represent purchased assets | ||||
| recorded at estimated fair value at August 20, 2010, the date of purchase. | ||||
| 10. Capital. | ||||
| (in thousands, except per-share amounts) | ||||
| % | ||||
| 6/30/11 | 6/30/10 | Change | 3/31/11 | |
| Shareholders' Equity | $549,340 | $527,681 | 4.1% | $550,915 |
| Tier I Regulatory Capital | 410,279 | 391,538 | 4.8% | 416,671 |
| Total Regulatory Capital | 447,369 | 426,674 | 4.9% | 454,584 |
| Total Assets | 4,876,731 | 4,727,086 | 3.2% | 4,937,429 |
| Risk-Adjusted Assets | 2,846,253 | 2,714,429 | 4.9% | 2,879,621 |
| Shareholders' Equity/ | ||||
| Total Assets | 11.26% | 11.16% | 11.16% | |
| Shareholders' Equity/ | ||||
| Total Loans | 19.97% | 18.27% | 19.44% | |
| Tier I Capital/Total Assets | 8.41% | 8.28% | 8.44% | |
| Tier I Capital/ | ||||
| Risk-Adjusted Assets | 14.41% | 14.42% | 14.47% | |
| Total Regulatory Capital/ | ||||
| Risk-Adjusted Assets | 15.72% | 15.72% | 15.79% | |
| Tangible Common Equity Ratio | 8.39% | 8.17% | 8.28% | |
| Common Shares Outstanding | 28,540 | 29,118 | -2.0% | 28,920 |
| Book Value Per Common Share | $19.25 | $18.12 | 6.2% | $19.05 |
| Market Value Per Common Share | $49.25 | $52.52 | -6.2% | $51.37 |
| Share Repurchase Programs | ||||
| (shares in thousands) | ||||
| % | ||||
| Q2'11 | Q2'10 | Change | Q1'11 | |
| Total Shares Repurchased | 401 | 220 | n/m | 239 |
| Average Repurchase Price | $49.01 | $56.35 | -13.0% | $50.47 |
| Net Shares Repurchased | 380 | 88 | n/m | 170 |
| % | ||||
| 6/30'11YTD | 6/30'10YTD | Change | ||
| Total Shares Repurchased | 640 | 308 | n/m | |
| Average Repurchase Price | $49.56 | $55.90 | -11.3% | |
| Net Shares Repurchased | 550 | 90 | n/m | |
| 11. Period-End Balance Sheets. | ||||
| (unaudited, dollars in thousands) | ||||
| % | ||||
| 6/30/11 | 6/30/10 | Change | 3/31/11 | |
| Assets: | ||||
| Cash and Money Market Assets | $320,119 | $294,582 | 8.7% | $348,499 |
| Investment Securities: | ||||
| Available For Sale | 705,078 | 466,500 | 51.1% | 741,603 |
| Held to Maturity | 669,452 | 652,958 | 2.5% | 591,923 |
| Purchased Covered Loans (1) | 622,727 | 763,619 | -18.5% | 660,456 |
| Purchased Non-Covered Loans (2) | 164,844 | -- | n/m | 187,203 |
| Originated Loans | 1,963,642 | 2,124,570 | -7.6% | 1,986,976 |
| Allowance For Loan Losses | (33,008) | (39,716) | -16.9% | (34,321) |
| Total Loans, net | 2,718,205 | 2,848,473 | -4.6% | 2,800,314 |
| Non-Covered Other Real Estate | ||||
| Owned | 16,637 | 18,028 | -7.7% | 14,613 |
| Covered Other Real Estate | ||||
| Owned, net (1) | 24,348 | 23,670 | 2.9% | 20,914 |
| Premises and Equipment | 35,015 | 36,816 | -4.9% | 35,704 |
| Identifiable Intangibles | 31,576 | 32,529 | -2.9% | 33,056 |
| Goodwill | 121,673 | 121,673 | 0.0% | 121,673 |
| Other Assets | 234,628 | 231,857 | 1.2% | 229,130 |
| Total Assets | $4,876,731 | $4,727,086 | 3.2% | $4,937,429 |
| Liabilities and Shareholders' Equity: | ||||
| Deposits: | ||||
| Noninterest Bearing | $1,446,973 | $1,427,611 | 1.4% | $1,476,590 |
| Interest-Bearing Transaction | 685,977 | 642,202 | 6.8% | 689,475 |
| Savings | 1,106,872 | 954,285 | 16.0% | 1,098,018 |
| Time | 848,563 | 866,462 | -2.1% | 876,290 |
| Total Deposits | 4,088,385 | 3,890,560 | 5.1% | 4,140,373 |
| Short-Term Borrowed Funds | 106,727 | 210,503 | -49.3% | 104,359 |
| Federal Home Loan Bank Advances | 46,351 | 10,223 | n/m | 51,490 |
| Debt Financing and Notes Payable | 25,853 | 26,430 | -2.2% | 26,108 |
| Other Liabilities | 60,075 | 61,689 | -2.6% | 64,184 |
| Total Liabilities | 4,327,391 | 4,199,405 | 3.0% | 4,386,514 |
| Shareholders' Equity: | ||||
| Common Equity: | ||||
| Paid-In Capital | 378,337 | 375,713 | 0.7% | 381,866 |
| Accumulated Other | ||||
| Comprehensive Income | 8,251 | 6,314 | n/m | 2,526 |
| Retained Earnings | 162,752 | 145,654 | 11.7% | 166,523 |
| Total Shareholders' Equity | 549,340 | 527,681 | 4.1% | 550,915 |
| Total Liabilities and | ||||
| Shareholders' Equity | $4,876,731 | $4,727,086 | 3.2% | $4,937,429 |
| (1) Covered loans and repossessed loan collateral represent purchased assets on which losses | ||||
| are shared with the FDIC per a Loss-Sharing Agreement. Covered assets were recorded at | ||||
| estimated fair value at February 6, 2009, the date of purchase. | ||||
| (2) Purchased non-covered loans represent purchased loans recorded at estimated fair value | ||||
| at August 20, 2010, the date of purchase. | ||||
| 12. Income Statements. | ||||
| (unaudited, in thousands except per-share amounts) | ||||
| % | ||||
| Q2'11 | Q2'10 | Change | Q1'11 | |
| Interest & Fee Income: | ||||
| Loans | $41,272 | $44,060 | -6.3% | $41,363 |
| Money Market Assets | -- | -- | n/m | -- |
| Investment Securities: | ||||
| Available for Sale | 5,684 | 4,026 | 41.2% | 5,218 |
| Held to Maturity | 6,132 | 6,992 | -12.3% | 5,913 |
| Total Interest Income | 53,088 | 55,078 | -3.6% | 52,494 |
| Interest Expense: | ||||
| Transaction Deposits | 194 | 218 | -10.9% | 198 |
| Savings Deposits | 453 | 659 | -31.2% | 473 |
| Time Deposits | 1,130 | 1,303 | -13.3% | 1,219 |
| Short-Term Borrowed Funds | 47 | 491 | -90.3% | 62 |
| Federal Home Loan Bank Advances | 128 | 52 | n/m | 151 |
| Debt Financing and Notes Payable | 201 | 422 | -52.5% | 200 |
| Total Interest Expense | 2,153 | 3,145 | -31.5% | 2,303 |
| Net Interest Income | 50,935 | 51,933 | -1.9% | 50,191 |
| Provision for Loan Losses | 2,800 | 2,800 | 0.0% | 2,800 |
| Noninterest Income: | ||||
| Service Charges | 7,577 | 8,629 | -12.2% | 7,521 |
| Merchant Processing Services | 2,391 | 2,176 | 9.9% | 2,171 |
| Debit Card Fees | 1,283 | 1,245 | 3.0% | 1,201 |
| ATM Processing Fees | 997 | 1,021 | -2.4% | 935 |
| Trust Fees | 482 | 448 | 7.5% | 493 |
| Financial Services Commissions | 117 | 223 | -47.6% | 29 |
| Other | 2,445 | 2,028 | 20.6% | 2,393 |
| Total Noninterest Income | 15,292 | 15,770 | -3.0% | 14,743 |
| Noninterest Expense: | ||||
| Salaries and Benefits | 14,913 | 15,476 | -3.6% | 15,075 |
| Occupancy | 4,050 | 3,822 | 6.0% | 4,025 |
| Outsourced Data Processing | 2,122 | 2,202 | -3.7% | 2,456 |
| Settlements | 2,100 | -- | n/m | -- |
| Amortization of Identifiable Intangibles | 1,480 | 1,540 | -3.9% | 1,548 |
| Professional Fees | 1,453 | 867 | 67.7% | 850 |
| Equipment | 1,038 | 1,116 | -6.9% | 933 |
| Other Real Estate Owned | 990 | 314 | n/m | 145 |
| Courier Service | 852 | 903 | -5.6% | 843 |
| FDIC Insurance Assessment | 740 | 1,260 | -41.3% | 1,220 |
| Other | 4,571 | 4,595 | -0.5% | 4,228 |
| Total Noninterest Expense | 34,309 | 32,095 | 6.9% | 31,323 |
| Income Before Income Taxes | 29,118 | 32,808 | -11.2% | 30,811 |
| Income Tax Provision | 7,849 | 9,247 | -15.1% | 8,429 |
| Net Income | $21,269 | $23,561 | -9.7% | $22,382 |
| Average Common Shares Outstanding | 28,771 | 29,207 | -1.5% | 29,021 |
| Diluted Common Shares Outstanding | 28,923 | 29,568 | -2.2% | 29,225 |
| Per Common Share Data: | ||||
| Basic Earnings | $0.74 | $0.81 | -8.6% | $0.77 |
| Diluted Earnings | 0.74 | 0.80 | -7.5% | 0.77 |
| Dividends Paid | 0.36 | 0.36 | 0.0% | 0.36 |
| % | ||||
| 6/30'11YTD | 6/30'10YTD | Change | ||
| Interest & Fee Income: | ||||
| Loans | $82,635 | $88,762 | -6.9% | |
| Money Market Assets | -- | 1 | n/m | |
| Investment Securities: | ||||
| Available for Sale | 10,902 | 7,921 | 37.6% | |
| Held to Maturity | 12,045 | 14,397 | -16.3% | |
| Total Interest Income | 105,582 | 111,081 | -5.0% | |
| Interest Expense: | ||||
| Transaction Deposits | 392 | 435 | -10.0% | |
| Savings Deposits | 926 | 1,398 | -33.8% | |
| Time Deposits | 2,349 | 2,835 | -17.2% | |
| Short-Term Borrowed Funds | 109 | 1,028 | -89.4% | |
| Federal Home Loan Bank Advances | 279 | 136 | n/m | |
| Debt Financing and Notes Payable | 401 | 847 | -52.7% | |
| Total Interest Expense | 4,456 | 6,679 | -33.3% | |
| Net Interest Income | 101,126 | 104,402 | -3.1% | |
| Provision for Loan Losses | 5,600 | 5,600 | 0.0% | |
| Noninterest Income: | ||||
| Service Charges | 15,098 | 17,371 | -13.1% | |
| Merchant Processing Services | 4,562 | 4,397 | 3.8% | |
| Debit Card Fees | 2,484 | 2,419 | 2.7% | |
| ATM Processing Fees | 1,932 | 1,912 | 1.0% | |
| Trust Fees | 975 | 829 | 17.6% | |
| Financial Services Commissions | 146 | 372 | -60.7% | |
| Other | 4,838 | 3,940 | 22.8% | |
| Total Noninterest Income | 30,035 | 31,240 | -3.9% | |
| Noninterest Expense: | ||||
| Salaries and Benefits | 29,988 | 31,368 | -4.4% | |
| Occupancy | 8,075 | 7,599 | 6.3% | |
| Outsourced Data Processing | 4,578 | 4,442 | 3.1% | |
| Settlements | 2,100 | 23 | n/m | |
| Amortization of Identifiable Intangibles | 3,028 | 3,138 | -3.5% | |
| Professional Fees | 2,303 | 1,530 | 50.6% | |
| Equipment | 1,971 | 2,167 | -9.0% | |
| Other Real Estate Owned | 1,135 | 464 | 144.5% | |
| Courier Service | 1,695 | 1,810 | -6.3% | |
| FDIC Insurance Assessment | 1,960 | 2,580 | -24.0% | |
| Other | 8,799 | 9,005 | -2.3% | |
| Total Noninterest Expense | 65,632 | 64,126 | 2.3% | |
| Income Before Income Taxes | 59,929 | 65,916 | -9.1% | |
| Income Tax Provision | 16,278 | 18,779 | -13.3% | |
| Net Income | $43,651 | $47,137 | -7.4% | |
| Average Common Shares Outstanding | 28,895 | 29,217 | -1.1% | |
| Diluted Common Shares Outstanding | 29,073 | 29,582 | -1.7% | |
| Per Common Share Data: | ||||
| Basic Earnings | $1.51 | $1.61 | -6.2% | |
| Diluted Earnings | 1.51 | 1.59 | -5.0% | |
| Dividends Paid | 0.72 | 0.72 | 0.0% | |
CONTACT: Westamerica Bancorporation
Robert A. Thorson - SVP & Chief Financial Officer
707-863-6840