Westamerica Bancorporation (WABC) 8-K Westamerica Bancorporation Reports Second Quarter 2016 Financial Results

EXHIBIT 99.1

Westamerica Bancorporation Reports Second Quarter 2016 Financial Results

SAN RAFAEL, Calif., July 21, 2016 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq:WABC), parent company of Westamerica Bank, generated net income for the second quarter 2016 of $14.5 million and diluted earnings per common share ("EPS") of $0.57, compared to net income of $14.2 million and EPS of $0.56 for the prior quarter, and net income of $14.8 million and EPS of $0.58 for the second quarter 2015.

"Westamerica’s revenue stream was stable from the first quarter 2016 to the second quarter 2016, with fully-taxable equivalent net interest income and noninterest income totaling $48.2 million for both quarters. Credit quality improved with nonperforming assets declining to $18.1 million at June 30, 2016 from $26.4 million at March 31, 2016. Noninterest expenses declined $630 thousand from the first quarter 2016 to the second quarter 2016,” said Chairman, President and CEO David Payne. “With stable revenues and reduced expenses, Westamerica delivered higher net income for our shareholders, generating an annualized return on shareholders’ common equity of 11 percent for the second quarter 2016. Westamerica paid its shareholders a $0.39 per share dividend in the second quarter,” concluded Payne.

The annualized net interest margin on a fully taxable equivalent basis was 3.27 percent for the second quarter 2016, compared to 3.34 percent for the prior quarter, and 3.37 percent for the second quarter 2015. Net interest income on a fully taxable equivalent basis was $36.5 million for the second quarter 2016, compared to $36.4 million for the prior quarter, and $37.4 million for the second quarter 2015. The Company’s loan portfolio has declined from the second quarter 2015 through the second quarter 2016; Management has been avoiding long-dated, low-yielding loans given historically low interest rates. Management has also maintained conservative loan underwriting, terms and conditions. During this period, the investment portfolio has grown. The changing composition of interest earning assets and low market interest rates has pressured the net interest margin. The funding cost of deposits and other interest-bearing borrowings, as a percentage of average loans and investment securities, was 0.05 percent for the second quarter 2016, unchanged from the prior quarter and down from 0.06 percent for the second quarter 2015.

The provision for loan losses was zero for the second quarter 2016, unchanged from the prior quarter and second quarter 2015. Net loan losses charged against the allowance for loan losses totaled $577 thousand for the second quarter 2016, compared to $284 thousand for the prior quarter and $359 thousand for the second quarter 2015. At June 30, 2016, the allowance for loan losses totaled $28.9 million and nonperforming loans totaled $13.9 million.

Noninterest income for the second quarter 2016 totaled $11.7 million, essentially unchanged from the prior quarter, and compared to $12.3 million for the second quarter 2015.

Noninterest expense for the second quarter 2016 totaled $25.2 million, compared to $25.9 million for the prior quarter, and $26.9 million for the second quarter 2015. Personnel costs were lower for the second quarter 2016 compared to the first quarter 2016 due to seasonally higher payroll taxes in the first quarter 2016. Personnel costs were lower for the second quarter 2016 compared to the second quarter 2015 due to lower insurance related costs. For the second quarter 2016, the cost of holding other real estate owned was offset by gains realized on the liquidation of properties.

At June 30, 2016, Westamerica Bancorporation's tangible common equity-to-asset ratio was 8.5 percent, and assets totaled $5.2 billion. Westamerica Bancorporation, through its wholly owned subsidiary Westamerica Bank, operates commercial banking and trust offices throughout Northern and Central California.

Westamerica Bancorporation Web Address: www.westamerica.com

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, 2015 filed on Form 10-K and quarterly report for the quarter ended March 31, 2016 filed on Form 10-Q, describe some of these factors, including certain credit, interest rate, operational, liquidity and market risks associated with the Company's business and operations. Other factors described in these reports include changes in business and economic conditions, competition, fiscal and monetary policies, disintermediation, legislation including the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2011, 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 21, 2016
WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
June 30, 2016
1. Net Income Summary.
		(in thousands except per-share amounts)
								%
		Q2'16			Q2'15			Change			Q1'16
	Net Interest and Fee Income (FTE)	$	36,495		$	37,415			-2.5	%	$	36,447
	Provision for Loan Losses		-			-			n/m			-
	Noninterest Income		11,702			12,269			-4.6	%		11,729
	Noninterest Expense		25,229			26,896			-6.2	%		25,858
	Income Before Taxes (FTE)		22,968			22,788			0.8	%		22,318
	Income Tax Provision (FTE)		8,422			8,027			4.9	%		8,092
	Net Income	$	14,546		$	14,761			-1.5	%	$	14,226
	Average Common Shares Outstanding		25,586			25,514			0.3	%		25,445
	Diluted Average Common Shares		25,630			25,536			0.4	%		25,468
	Operating Ratios:
	Basic Earnings Per Common Share	$	0.57		$	0.58			-1.7	%	$	0.56
	Diluted Earnings Per Common Share		0.57			0.58			-1.7	%		0.56
	Return On Assets (a)		1.13	%		1.17	%					1.11	%
	Return On Common Equity (a)		10.9	%		11.5	%					10.9	%
	Net Interest Margin (FTE) (a)		3.27	%		3.37	%					3.34	%
	Efficiency Ratio (FTE)		52.3	%		54.1	%					53.7	%
	Dividends Paid Per Common Share	$	0.39		$	0.38			2.6	%	$	0.39
	Common Dividend Payout Ratio		68	%		66	%					70	%
								%
		6/30'16YTD			6/30'15YTD			Change
	Net Interest and Fee Income (FTE)	$	72,942		$	74,345			-1.9	%
	Provision for Loan Losses		-			-			n/m
	Noninterest Income		23,431			24,569			-4.6	%
	Noninterest Expense		51,087			53,623			-4.7	%
	Income Before Taxes (FTE)		45,286			45,291			0.0	%
	Income Tax Provision (FTE)		16,514			15,973			3.4	%
	Net Income	$	28,772		$	29,318			-1.9	%
	Average Common Shares Outstanding		25,516			25,582			-0.3	%
	Diluted Average Common Shares		25,549			25,595			-0.2	%
	Operating Ratios:
	Basic Earnings Per Common Share	$	1.13		$	1.15			-1.7	%
	Diluted Earnings Per Common Share		1.13			1.15			-1.7	%
	Return On Assets (a)		1.12	%		1.17	%
	Return On Common Equity (a)		10.9	%		11.5	%
	Net Interest Margin (FTE) (a)		3.30	%		3.40	%
	Efficiency Ratio (FTE)		53.0	%		54.2	%
	Dividends Paid Per Common Share	$	0.78		$	0.76			2.6	%
	Common Dividend Payout Ratio		69	%		66	%
2. Net Interest Income.
		(dollars in thousands)
								%
		Q2'16			Q2'15			Change			Q1'16
	Interest and Fee Income (FTE)	$	37,036		$	38,032			-2.6	%	$	36,999
	Interest Expense		541			617			-12.3	%		552
	Net Interest and Fee Income (FTE)	$	36,495		$	37,415			-2.5	%	$	36,447
	Average Earning Assets	$	4,473,700		$	4,436,196			0.8	%	$	4,381,423
	Average Interest-
	Bearing Liabilities		2,598,868			2,540,194			2.3	%		2,601,408
	Yield on Earning Assets (FTE) (a)		3.32	%		3.43	%					3.39	%
	Cost of Funds (a)		0.05	%		0.06	%					0.05	%
	Net Interest Margin (FTE) (a)		3.27	%		3.37	%					3.34	%
	Interest Expense/
	Interest-Bearing Liabilities (a)		0.08	%		0.10	%					0.09	%
	Net Interest Spread (FTE) (a)		3.24	%		3.33	%					3.30	%
								%
		6/30'16YTD			6/30'15YTD			Change
	Interest and Fee Income (FTE)	$	74,035		$	75,621			-2.1	%
	Interest Expense		1,093			1,276			-14.4	%
	Net Interest and Fee Income (FTE)	$	72,942		$	74,345			-1.9	%
	Average Earning Assets	$	4,427,507		$	4,389,374			0.9	%
	Average Interest-
	Bearing Liabilities		2,600,138			2,555,752			1.7	%
	Yield on Earning Assets (FTE) (a)		3.35	%		3.46	%
	Cost of Funds (a)		0.05	%		0.06	%
	Net Interest Margin (FTE) (a)		3.30	%		3.40	%
	Interest Expense/
	Interest-Bearing Liabilities (a)		0.08	%		0.10	%
	Net Interest Spread (FTE) (a)		3.27	%		3.36	%
3. Loans & Other Earning Assets.
		(average volume, dollars in thousands)
								%
		Q2'16			Q2'15			Change			Q1'16
	Total Assets	$	5,184,409		$	5,044,361			2.8	%	$	5,174,804
	Total Earning Assets		4,473,700			4,436,196			0.8	%		4,381,423
	Total Loans		1,455,050			1,655,779			-12.1	%		1,500,616
	Commercial Loans		356,629			405,891			-12.1	%		370,131
	Commercial RE Loans		611,996			687,221			-10.9	%		630,542
	Consumer Loans		486,425			562,667			-13.6	%		499,943
	Total Investment Securities		3,018,650			2,780,417			8.6	%		2,880,807
	Available For Sale (Market)		1,554,014			1,724,126			-9.9	%		1,567,335
	Held To Maturity		1,464,636			1,056,291			38.7	%		1,313,472
	Unrealized Gain		33,820			5,022			n/m			23,669
	Loans/Deposits		32.1	%		37.7	%					33.1	%
								%
		6/30'16YTD			6/30'15YTD			Change
	Total Assets	$	5,179,607		$	5,051,907			2.5	%
	Total Earning Assets		4,427,507			4,389,374			0.9	%
	Total Loans		1,477,833			1,669,686			-11.5	%
	Commercial Loans		363,380			403,542			-10.0	%
	Commercial RE Loans		621,269			698,784			-11.1	%
	Consumer Loans		493,184			567,360			-13.1	%
	Total Investment Securities		2,949,674			2,719,688			8.5	%
	Available For Sale (Market)		1,560,675			1,678,749			-7.0	%
	Held To Maturity		1,388,999			1,040,939			33.4	%
	Unrealized Gain		33,820			5,022			n/m
	Loans/Deposits		32.6	%		38.0	%
4. Deposits, Other Interest-Bearing Liabilities & Equity.
		(average volume, dollars in thousands)
								%
		Q2'16			Q2'15			Change			Q1'16
	Total Deposits	$	4,531,751		$	4,395,351			3.1	%	$	4,537,548
	Noninterest Demand		1,994,803			1,942,124			2.7	%		1,993,986
	Interest Bearing Transaction		855,732			804,512			6.4	%		872,464
	Savings		1,404,322			1,300,058			8.0	%		1,387,217
	Time greater than $100K		119,475			172,605			-30.8	%		123,691
	Time less than $100K		157,419			176,052			-10.6	%		160,190
	Total Short-Term Borrowings		61,920			86,967			-28.8	%		57,846
	Shareholders' Equity		537,987			514,768			4.5	%		527,177
	Demand Deposits/
	Total Deposits		44.0	%		44.2	%					43.9	%
	Transaction & Savings
	Deposits / Total Deposits		93.9	%		92.1	%					93.7	%
								%
		6/30'16YTD			6/30'15YTD			Change
	Total Deposits	$	4,534,650		$	4,399,127			3.1	%
	Noninterest Demand		1,994,395			1,931,034			3.3	%
	Interest Bearing Transaction		864,098			807,677			7.0	%
	Savings		1,395,769			1,296,169			7.7	%
	Time greater than $100K		121,583			185,854			-34.6	%
	Time less than $100K		158,805			178,393			-11.0	%
	Total Short-Term Borrowings		59,883			86,662			-30.9	%
	Federal Home Loan Bank Advances		-			997			n/m
	Shareholders' Equity		532,582			515,423			3.3	%
	Demand Deposits/
	Total Deposits		44.0	%		43.9	%
	Transaction & Savings
	Deposits / Total Deposits		93.8	%		91.7	%
5. Interest Yields Earned & Rates Paid.
		(dollars in thousands)
		Q2'16
		Average			Income/			Yield (a) /
		Volume			Expense			Rate
	Interest & Fee Income Earned
	Total Earning Assets (FTE)	$	4,473,700		$	37,036			3.32	%
	Total Loans (FTE)		1,455,050			17,897			4.95	%
	Commercial Loans (FTE)		356,629			4,197			4.73	%
	Commercial RE Loans		611,996			9,538			6.27	%
	Consumer Loans		486,425			4,162			3.44	%
	Total Investments (FTE)		3,018,650			19,139			2.53	%
	Interest Expense Paid
	Total Earning Assets		4,473,700			541			0.05	%
	Total Interest-Bearing Liabilities		2,598,868			541			0.08	%
	Total Interest-Bearing Deposits		2,536,948			531			0.08	%
	Interest-Bearing Transaction		855,732			67			0.03	%
	Savings		1,404,322			225			0.06	%
	Time less than $100K		157,419			104			0.27	%
	Time greater than $100K		119,475			135			0.45	%
	Total Short-Term Borrowings		61,920			10			0.07	%
	Net Interest Income and
	Margin (FTE)				$	36,495			3.27	%
		Q2'15
		Average			Income/			Yield (a) /
		Volume			Expense			Rate
	Interest & Fee Income Earned
	Total Earning Assets (FTE)	$	4,436,196		$	38,032			3.43	%
	Total Loans (FTE)		1,655,779			20,424			4.95	%
	Commercial Loans (FTE)		405,891			4,922			4.86	%
	Commercial RE Loans		687,221			10,524			6.14	%
	Consumer Loans		562,667			4,978			3.55	%
	Total Investments (FTE)		2,780,417			17,608			2.53	%
	Interest Expense Paid
	Total Earning Assets		4,436,196			617			0.06	%
	Total Interest-Bearing Liabilities		2,540,194			617			0.10	%
	Total Interest-Bearing Deposits		2,453,227			601			0.10	%
	Interest-Bearing Transaction		804,512			62			0.03	%
	Savings		1,300,058			207			0.06	%
	Time less than $100K		176,052			150			0.34	%
	Time greater than $100K		172,605			182			0.42	%
	Total Short-Term Borrowings		86,967			16			0.07	%
	Net Interest Income and
	Margin (FTE)				$	37,415			3.37	%
6. Noninterest Income.
		(dollars in thousands except per-share amounts)
								%
		Q2'16			Q2'15			Change			Q1'16
	Service Charges on Deposits	$	5,239		$	5,694			-8.0	%	$	5,248
	Merchant Processing Services		1,638			1,783			-8.1	%		1,529
	Debit Card Fees		1,621			1,534			5.7	%		1,516
	Other Service Fees		650			683			-4.8	%		629
	ATM Processing Fees		603			627			-4.0	%		658
	Trust Fees		657			672			-2.2	%		661
	Financial Services Commissions		137			198			-31.0	%		156
	Other Income		1,157			1,078			7.3	%		1,332
	Total Noninterest Income	$	11,702		$	12,269			-4.6	%	$	11,729
	Total Revenue (FTE)	$	48,197		$	49,684			-3.0	%	$	48,176
	Noninterest Income/Revenue (FTE)		24.3	%		24.7	%					24.3	%
	Service Charges/Avg. Deposits (a)		0.46	%		0.52	%					0.47	%
	Total Revenues (FTE) Per Avg.
	Common Share (a)	$	7.58		$	7.81			-3.0	%	$	7.61
								%
		6/30'16YTD			6/30'15YTD			Change
	Service Charges on Deposits	$	10,487		$	11,401			-8.0	%
	Merchant Processing Services		3,167			3,486			-9.1	%
	Debit Card Fees		3,137			2,990			4.9	%
	Other Service Fees		1,279			1,348			-5.1	%
	ATM Processing Fees		1,261			1,212			4.0	%
	Trust Fees		1,318			1,378			-4.4	%
	Financial Services Commissions		293			351			-16.6	%
	Other Income		2,489			2,403			3.6	%
	Total Noninterest Income	$	23,431		$	24,569			-4.6	%
	Total Revenue (FTE)	$	96,373		$	98,914			-2.6	%
	Noninterest Income/Revenue (FTE)		24.3	%		24.8	%
	Service Charges/Avg. Deposits (a)		0.47	%		0.52	%
	Total Revenues (FTE) Per Avg.
	Common Share (a)	$	7.60		$	7.80			-2.6	%
7. Noninterest Expense.
		(dollars in thousands)
								%
		Q2'16			Q2'15			Change			Q1'16
	Salaries & Benefits	$	12,887		$	13,696			-5.9	%	$	13,117
	Occupancy		3,400			3,726			-8.8	%		3,398
	Outsourced Data Processing		2,130			2,111			0.9	%		2,130
	Amortization of
	Identifiable Intangibles		870			955			-8.9	%		905
	Professional Fees		758			582			30.2	%		732
	Furniture & Equipment		1,187			1,158			2.5	%		1,213
	Other Real Estate Owned		(392	)		52			n/m			111
	Courier Service		462			598			-22.6	%		545
	Other Operating		3,927			4,018			-2.3	%		3,707
	Total Noninterest Expense	$	25,229		$	26,896			-6.2	%	$	25,858
	Noninterest Expense/
	Avg. Earning Assets (a)		2.27	%		2.43	%					2.37	%
	Noninterest Expense/Revenues (FTE)		52.3	%		54.1	%					53.7	%
								%
		6/30'16YTD			6/30'15YTD			Change
	Salaries & Benefits	$	26,004		$	27,034			-3.8	%
	Occupancy		6,798			7,453			-8.8	%
	Outsourced Data Processing		4,260			4,219			1.0	%
	Amortization of
	Identifiable Intangibles		1,775			1,956			-9.3	%
	Professional Fees		1,490			1,130			31.8	%
	Furniture & Equipment		2,400			2,277			5.4	%
	Other Real Estate Owned		(281	)		367			n/m
	Courier Service		1,007			1,141			-11.7	%
	Other Operating		7,634			8,046			-5.1	%
	Total Noninterest Expense	$	51,087		$	53,623			-4.7	%
	Noninterest Expense/
	Avg. Earning Assets (a)		2.32	%		2.46	%
	Noninterest Expense/Revenues (FTE)		53.0	%		54.2	%
8. Provision for Loan Losses.
		(dollars in thousands)
								%
		Q2'16			Q2'15			Change			Q1'16
	Average Total Loans	$	1,455,050		$	1,655,779			-12.1	%	$	1,500,616
	Allowance for Loan Loss (ALL)
	Beginning of Period	$	29,487		$	31,187			-5.5	%	$	29,771
	Provision for Loan Losses		-			-			n/m			-
	Net ALL Losses		(577	)		(359	)		60.7	%		(284	)
	ALL End of Period	$	28,910		$	30,828			-6.2	%	$	29,487
	ALL Recoveries/Gross ALL Losses		61	%		74	%					87	%
	Net ALL Losses/Avg. Total Loans (a)		0.16	%		0.09	%					0.08	%
								%
		6/30'16YTD			6/30'15YTD			Change
	Average Total Loans	$	1,477,833		$	1,669,686			-11.5	%
	Allowance for Loan Loss (ALL)
	Beginning of Period	$	29,771		$	31,485			-5.4	%
	Provision for Loan Losses		-			-			n/m
	Net ALL Losses		(861	)		(657	)		30.9	%
	ALL End of Period	$	28,910		$	30,828			-6.2	%
	ALL Recoveries/Gross ALL Losses		76	%		73	%
	Net ALL Losses/Avg. Total Loans (a)		0.12	%		0.08	%
9. Credit Quality.
		(dollars in thousands)
								%
		6/30/16			6/30/15			Change			3/31/16
	Nonperforming Originated Loans:
	Nonperforming Nonaccrual	$	1,693		$	6,269			-73.0	%	$	9,205
	Performing Nonaccrual		6,890			11			n/m			1,841
	Total Nonaccrual Loans		8,583			6,280			36.7	%		11,046
	90+ Days Past Due Accruing Loans		303			221			37.1	%		183
	Total		8,886			6,501			36.7	%		11,229
	Repossessed Originated Loan Collateral		1,089			5,906			-81.6	%		4,786
	Total Nonperforming
	Originated Assets		9,975			12,407			-19.6	%		16,015
	Nonperforming Purchased Covered Loans (1):
	Nonperforming Nonaccrual		29			3			n/m			-
	Performing Nonaccrual		-			-			n/m			-
	Total Nonaccrual Loans		29			3			n/m			-
	90+ Days Past Due Accruing Loans		-			-			n/m			-
	Total		29			3			n/m			-
	Repossessed Purchased Covered
	Loan Collateral (1)		-			486			n/m			-
	Total Nonperforming Purchased
	Covered Assets (1)		29			489			n/m			-
	Nonperforming Purchased Non-Covered Loans (2):
	Nonperforming Nonaccrual		4,805			9,937			-51.6	%		6,601
	Performing Nonaccrual		148			5			n/m			80
	Total Nonaccrual Loans		4,953			9,942			-50.2	%		6,681
	90+ Days Past Due Accruing Loans		53			-			n/m			77
	Total		5,006			9,942			-49.6	%		6,758
	Repossessed Purchased Non-Covered
	Loan Collateral (2)		3,073			2,868			7.2	%		3,652
	Total Nonperforming Purchased
	Non-Covered Assets (2)		8,079			12,810			-36.9	%		10,410
	Total Nonperforming Assets	$	18,083		$	25,706			-29.7	%	$	26,425
	Total Originated Loans Outstanding	$	1,280,194		$	1,425,047			-10.2	%	$	1,310,083
	Total Purchased Covered
	Loans Outstanding (1)		12,777			15,109			-15.4	%		13,664
	Total Purchased Non-Covered
	Loans Outstanding (2)		136,589			191,115			-28.5	%		149,449
	Total Loans Outstanding	$	1,429,560		$	1,631,271			-12.4	%	$	1,473,196
	Total Assets	$	5,179,085		$	5,031,230			2.9	%	$	5,199,868
	Loans:
	Allowance for Loan Losses	$	28,910		$	30,828			-6.2	%	$	29,487
	Allowance/Loans		2.02	%		1.89	%					2.00	%
	Nonperforming Loans/Total Loans		0.97	%		1.01	%					1.22	%
	Purchased Covered Loans (1):
	Fair Value Discount on Purchased
	Covered Loans		-		$	197					$	18
	Discount/Purchased Covered
	Loans, gross		0.00	%		1.29	%					0.13	%
	Nonperforming Purchased Covered Loans/
	Total Purchased Covered Loans		0.23	%		0.02	%					0.00	%
	Purchased Non-Covered Loans (2):
	Fair Value Discount on Purchased
	Non-Covered Loans	$	5,411		$	7,780					$	6,084
	Discount/Purchased Non-Covered		3.81	%		3.91	%					3.91	%
	Loans, gross
	Nonperforming Purchased Non-Covered Loans/
	Total Purchased Non-Covered Loans		3.66	%		5.20	%					4.52	%
10. Capital.
		(in thousands, except per-share amounts)
								%
		6/30/16			6/30/15			Change			3/31/16
	Shareholders' Equity	$	558,327		$	525,338			6.3	%	$	538,973
	Total Assets		5,179,085			5,031,230			2.9	%		5,199,868
	Shareholders' Equity/
	Total Assets		10.78	%		10.44	%					10.37	%
	Shareholders' Equity/
	Total Loans		39.06	%		32.20	%					36.59	%
	Tangible Common Equity Ratio		8.48	%		7.99	%					8.04	%
	Common Shares Outstanding		25,632			25,529			0.4	%		25,438
	Common Equity Per Share	$	21.78		$	20.58			5.9	%	$	21.19
	Market Value Per Common Share	$	49.26		$	50.65			-2.7	%	$	48.71
	Share Repurchase Programs
		(shares in thousands)
								%
		Q2'16			Q2'15			Change			Q1'16
	Total Shares Repurchased		7			133			-94.6	%		130
	Average Repurchase Price	$	49.35		$	43.89			12.5	%	$	41.53
	Net Shares (Issued) Repurchased		(194	)		34			n/m			90
								%
		6/30'16YTD			6/30'15YTD			Change
	Total Shares Repurchased		137			316			-56.4	%
	Average Repurchase Price	$	41.94		$	43.37			-3.3	%
	Net Shares (Issued) Repurchased		(104	)		216			-148.2	%
11. Period-End Balance Sheets.
		(unaudited, dollars in thousands)
								%
		6/30/16			6/30/15			Change			3/31/16
	Assets:
	Cash and Due from Banks	$	441,785		$	289,606			52.5	%	$	471,164
	Investment Securities:
	Available For Sale		1,531,035			1,634,878			-6.4	%		1,585,970
	Held to Maturity		1,473,357			1,159,581			27.1	%		1,358,139
	Loans		1,429,560			1,631,271			-12.4	%		1,473,196
	Allowance For Loan Losses		(28,910	)		(30,828	)		-6.2	%		(29,487	)
	Total Loans, net		1,400,650			1,600,443			-12.5	%		1,443,709
	Other Real Estate Owned		4,162			9,260			-55.1	%		8,438
	Premises and Equipment, net		37,759			37,945			-0.5	%		38,045
	Identifiable Intangibles, net		8,656			12,331			-29.8	%		9,526
	Goodwill		121,673			121,673			0.0	%		121,673
	Other Assets		160,008			165,513			-3.3	%		163,204
	Total Assets	$	5,179,085		$	5,031,230			2.9	%	$	5,199,868
	Liabilities and Shareholders' Equity:
	Deposits:
	Noninterest Bearing	$	1,978,947		$	1,930,551			2.5	%	$	1,989,010
	Interest-Bearing Transaction		827,857			795,793			4.0	%		855,008
	Savings		1,404,840			1,287,859			9.1	%		1,393,919
	Time		273,670			340,641			-19.7	%		278,813
	Total Deposits		4,485,314			4,354,844			3.0	%		4,516,750
	Short-Term Borrowed Funds		67,852			82,747			-18.0	%		52,451
	Other Liabilities		67,592			68,301			-1.0	%		91,694
	Total Liabilities		4,620,758			4,505,892			2.5	%		4,660,895
	Shareholders' Equity:
	Common Equity:
	Paid-In Capital		391,213			380,050			2.9	%		381,426
	Accumulated Other
	Comprehensive Income		11,885			3,988			198.0	%		6,619
	Retained Earnings		155,229			141,300			9.9	%		150,928
	Total Shareholders' Equity		558,327			525,338			6.3	%		538,973
	Total Liabilities and
	Shareholders' Equity	$	5,179,085		$	5,031,230			2.9	%	$	5,199,868
12. Income Statements.
		(unaudited, in thousands except per-share amounts)
								%
		Q2'16			Q2'15			Change			Q1'16
	Interest & Fee Income:
	Loans	$	17,583		$	20,035			-12.2	%	$	18,353
	Investment Securities:
	Available for Sale		8,091			7,999			1.1	%		7,967
	Held to Maturity		8,053			6,391			26.0	%		7,327
	Total Interest & Fee Income		33,727			34,425			-2.0	%		33,647
	Interest Expense:
	Transaction Deposits		67			62			7.2	%		70
	Savings Deposits		225			207			8.5	%		223
	Time Deposits		239			332			-28.0	%		250
	Short-Term Borrowed Funds		10			16			-35.2	%		9
	Total Interest Expense		541			617			-12.3	%		552
	Net Interest Income		33,186			33,808			-1.8	%		33,095
	Provision for Loan Losses		-			-			n/m			-
	Noninterest Income:
	Service Charges		5,239			5,694			-8.0	%		5,248
	Merchant Processing Services		1,638			1,783			-8.1	%		1,529
	Debit Card Fees		1,621			1,534			5.7	%		1,516
	Other Service Fees		650			683			-4.8	%		629
	ATM Processing Fees		603			627			-4.0	%		658
	Trust Fees		657			672			-2.2	%		661
	Financial Services Commissions		137			198			-31.0	%		156
	Other		1,157			1,078			7.3	%		1,332
	Total Noninterest Income		11,702			12,269			-4.6	%		11,729
	Noninterest Expense:
	Salaries and  Benefits		12,887			13,696			-5.9	%		13,117
	Occupancy		3,400			3,726			-8.8	%		3,398
	Outsourced Data Processing		2,130			2,111			0.9	%		2,130
	Amortization of Identifiable Intangibles		870			955			-8.9	%		905
	Professional Fees		758			582			30.2	%		732
	Furniture & Equipment		1,187			1,158			2.5	%		1,213
	Other Real Estate Owned		(392	)		52			n/m			111
	Courier Service		462			598			-22.6	%		545
	Other		3,927			4,018			-2.3	%		3,707
	Total Noninterest Expense		25,229			26,896			-6.2	%		25,858
	Income Before Income Taxes		19,659			19,181			2.5	%		18,966
	Income Tax Provision		5,113			4,420			15.7	%		4,740
	Net Income	$	14,546		$	14,761			-1.5	%	$	14,226
	Average Common Shares Outstanding		25,586			25,514			0.3	%		25,445
	Diluted Common Shares Outstanding		25,630			25,536			0.4	%		25,468
	Per Common Share Data:
	Basic Earnings	$	0.57		$	0.58			-1.7	%	$	0.56
	Diluted Earnings		0.57			0.58			-1.7	%		0.56
	Dividends Paid		0.39			0.38			2.6	%		0.39
								%
		6/30'16YTD			6/30'15YTD			Change
	Interest & Fee Income:
	Loans	$	35,936		$	40,265			-10.7	%
	Investment Securities:
	Available for Sale		16,058			15,468			3.8	%
	Held to Maturity		15,380			12,609			22.0	%
	Total Interest & Fee Income		67,374			68,342			-1.4	%
	Interest Expense:
	Transaction Deposits		137			125			9.2	%
	Savings Deposits		448			423			5.7	%
	Time Deposits		489			695			-29.6	%
	Short-Term Borrowed Funds		19			32			-38.8	%
	Federal Home Loan Bank Advances		-			1			n/m
	Total Interest Expense		1,093			1,276			-14.4	%
	Net Interest Income		66,281			67,066			-1.2	%
	Provision for Loan Losses		-			-			n/m
	Noninterest Income:
	Service Charges		10,487			11,401			-8.0	%
	Merchant Processing Services		3,167			3,486			-9.1	%
	Debit Card Fees		3,137			2,990			4.9	%
	Other Service Fees		1,279			1,348			-5.1	%
	ATM Processing Fees		1,261			1,212			4.0	%
	Trust Fees		1,318			1,378			-4.4	%
	Financial Services Commissions		293			351			-16.6	%
	Other		2,489			2,403			3.6	%
	Total Noninterest Income		23,431			24,569			-4.6	%
	Noninterest Expense:
	Salaries and  Benefits		26,004			27,034			-3.8	%
	Occupancy		6,798			7,453			-8.8	%
	Outsourced Data Processing		4,260			4,219			1.0	%
	Amortization of Identifiable Intangibles		1,775			1,956			-9.3	%
	Professional Fees		1,490			1,130			31.8	%
	Furniture & Equipment		2,400			2,277			5.4	%
	Other Real Estate Owned		(281	)		367			n/m
	Courier Service		1,007			1,141			-11.7	%
	Other		7,634			8,046			-5.1	%
	Total Noninterest Expense		51,087			53,623			-4.7	%
	Income Before Income Taxes		38,625			38,012			1.6	%
	Income Tax Provision		9,853			8,694			13.3	%
	Net Income	$	28,772		$	29,318			-1.9	%
	Average Common Shares Outstanding		25,516			25,582			-0.3	%
	Diluted Common Shares Outstanding		25,549			25,595			-0.2	%
	Per Common Share Data:
	Basic Earnings	$	1.13		$	1.15			-1.7	%
	Diluted Earnings		1.13			1.15			-1.7	%
	Dividends Paid		0.78			0.76			2.6	%
	Footnotes and Abbreviations:
	(FTE) Fully Taxable Equivalent. The Company presents its net interest margin and net interest income on a FTE basis using the current statutory federal tax rate, which is a non-generally accepted accounting principles (GAAP) financial measure.  Management believes the FTE basis is valuable to the reader because the Company’s loan and investment securities portfolios contain a relatively large portion of municipal loans and securities that are federally tax exempt.  The Company’s tax exempt loans and securities composition may not be similar to that of other banks, therefore in order to reflect the impact of the federally tax exempt loans and securities on the net interest margin and net interest income for comparability with other banks, the Company presents its net interest margin and net interest income on a FTE basis.
	(a) Annualized
	(1) Purchased covered loans and repossessed loan collateral represent assets purchased in a business combination on which losses are shared with the FDIC per a Loss-Sharing Agreement.
	(2) Purchased non-covered loans and repossessed loan collateral represent assets purchased in a business combination.

For additional information contact:
Westamerica Bancorporation
1108 Fifth Avenue, San Rafael, CA 94901
Robert A. Thorson – SVP & Chief Financial Officer
707-863-6840
investments@westamerica.com