Westamerica Bancorporation (WABC) 8-K Westamerica Bancorporation Reports Second Quarter 2017 Financial Results

EXHIBIT 99.1

Westamerica Bancorporation Reports Second Quarter 2017 Financial Results

SAN RAFAEL, Calif., July 20, 2017 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq:WABC), parent company of Westamerica Bank, generated net income for the second quarter 2017 of $15.8 million and diluted earnings per common share ("EPS") of $0.60, compared to first quarter 2017 net income of $15.0 million and EPS of $0.57 and second quarter 2016 net income of $14.5 million and EPS of $0.57. Second quarter 2017 results include a $1.9 million reversal of provision for loan losses which accounted for $0.04 of the quarter’s EPS. First quarter 2017 results reflect the Company’s prospective adoption of a new accounting standard related to share based compensation tax benefits; first quarter 2017 EPS measured $0.02 higher than would have been measured under accounting standards applied in 2016. The new accounting standard did not affect second quarter 2017 results by a meaningful amount.

"Second quarter 2017 net income benefited from higher noninterest income and lower noninterest expense. While short-term market interest rates rose during the second quarter 2017, intermediate and long-term rates declined; the interest rate environment was not conducive for net interest margin improvement. Credit quality improved with non-performing assets declining $650 thousand during the second quarter 2017 to total $8.5 million at June 30, 2017,” said Chairman, President and CEO David Payne.  “Westamerica generated an annualized 10.7 percent return on average shareholders’ common equity for the second quarter 2017, and paid a quarterly dividend of $0.39 per common share,” concluded Payne.

The annualized net interest margin on a fully taxable equivalent basis was 3.12 percent for the second quarter 2017, compared to 3.14 percent for the first quarter 2017, and 3.27 percent for the second quarter 2016. Net interest income on a fully taxable equivalent basis was $35.8 million for the second quarter 2017, compared to $36.0 million for the first quarter 2017, and $36.5 million for the second quarter 2016. The annualized funding cost of deposits and other interest-bearing borrowings, as a percentage of average earning assets, was 0.04 percent for the second quarter 2017, compared to 0.04 percent for the first quarter 2017 and 0.05 percent for the second quarter 2016. Checking and savings deposits, which earn relatively low interest rates and are less volatile than time deposits during periods of rising market interest rates, represented 95 percent of average total deposits during the second quarter 2017.

The Company recognized a reversal of provision for loan losses of $1.9 million for the second quarter 2017; during the quarter the Company realized net recoveries of prior loan losses of $1.1 million and nonperforming loans declined $159 thousand, totaling $6.9 million at June 30, 2017. The provision for loan losses was zero for the first quarter 2017 and second quarter 2016. At June 30, 2017, the allowance for loan losses totaled $24.1 million.

Noninterest income for the second quarter 2017 totaled $12.1 million, compared to $11.7 million for the first quarter 2017 and $11.7 million for the second quarter 2016. The second quarter 2017 improvement in noninterest income is primarily due to higher merchant processing fees.

Noninterest expense for the second quarter 2017 totaled $24.4 million, compared to $24.6 million for the first quarter 2017 and $25.2 million for the second quarter 2016. The $800 thousand reduction in noninterest expense from the second quarter 2016 to the second quarter 2017 was due to reductions in professional fees, correspondent service charges, insurance premiums, limited partnership operating losses, intangible amortization, and other expenses.

The income tax provision for 2017 reflects the prospective adoption of Accounting Standards Update (“ASU”) 2016-09, “Improvements to Employee Share-Based Payment Accounting”. Upon granting non-qualified stock options (“NQSO”), the Company estimates the fair value of the grant and records such value as compensation expense over the attribution period in its financial statements. At the time the NQSO grant is exercised, the ultimate value of the grant is determined and represents taxable income to the grantee and a tax deduction for the Company. The difference between the estimated fair value expensed for financial statement purposes and the realized amount deducted for tax purposes requires a reconciling adjustment to the Company’s tax accounts. Prior to ASU 2016-09, the Company recognized the balancing entry as an adjustment to shareholders’ equity; upon the January 1, 2017 required adoption of ASU 2016-09, the Company must recognize the balancing entry as an adjustment to the provision for income taxes. The Company’s fully-tax equivalent tax rate was 37.8 percent for the second quarter 2017, compared to 34.8 percent for the first quarter 2017 and 36.7 percent for the second quarter 2016. The fully-tax equivalent tax rate would have been 37.8 percent for the second quarter 2017 and 37.7 percent for the first quarter 2017 under accounting rules applied in 2016.

At June 30, 2017, Westamerica Bancorporation's tangible common equity-to-asset ratio was 8.90 percent, and assets totaled $5.4 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, 2016 filed on Form 10-K and quarterly report for the quarter ended March 31, 2017 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 20, 2017
WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
June 30, 2017
1. Net Income Summary.
		(in thousands except per-share amounts)
								%
		Q2'17			Q2'16			Change		Q1'17
	Net Interest and Fee Income (FTE)	$	35,764		$	36,495		-2.0	%	$	36,030
	(Reversal of) Provision for Loan Losses		(1,900	)		-		n/m			-
	Noninterest Income		12,123			11,702		3.6	%		11,657
	Noninterest Expense		24,396			25,229		-3.3	%		24,615
	Income Before Taxes (FTE)		25,391			22,968		10.5	%		23,072
	Income Tax Provision (FTE)		9,592			8,422		13.9	%		8,023
	Net Income	$	15,799		$	14,546		8.6	%	$	15,049
	Average Common Shares Outstanding		26,299			25,586		2.8	%		26,171
	Diluted Average Common Shares		26,402			25,630		3.0	%		26,329
	Operating Ratios:
	Basic Earnings Per Common Share	$	0.60		$	0.57		5.3	%	$	0.58
	Diluted Earnings Per Common Share		0.60			0.57		5.3	%		0.57
	Return On Assets (a)		1.18	%		1.13	%				1.13	%
	Return On Common Equity (a)		10.7	%		10.9	%				10.5	%
	Net Interest Margin (FTE) (a)		3.12	%		3.27	%				3.14	%
	Efficiency Ratio (FTE)		50.9	%		52.3	%				51.6	%
	Dividends Paid Per Common Share	$	0.39		$	0.39		0.0	%	$	0.39
	Common Dividend Payout Ratio		65	%		68	%				68	%
								%
		06/30'17YTD			06/30'16YTD			Change
	Net Interest and Fee Income (FTE)	$	71,794		$	72,942		-1.6	%
	(Reversal of) Provision for Loan Losses		(1,900	)		-		n/m
	Noninterest Income		23,780			23,431		1.5	%
	Noninterest Expense		49,011			51,087		-4.1	%
	Income Before Taxes (FTE)		48,463			45,286		7.0	%
	Income Tax Provision (FTE)		17,615			16,514		6.7	%
	Net Income	$	30,848		$	28,772		7.2	%
	Average Common Shares Outstanding		26,235			25,516		2.8	%
	Diluted Average Common Shares		26,366			25,549		3.2	%
	Operating Ratios:
	Basic Earnings Per Common Share	$	1.18		$	1.13		4.4	%
	Diluted Earnings Per Common Share		1.17			1.13		3.5	%
	Return On Assets (a)		1.15	%		1.12	%
	Return On Common Equity (a)		10.6	%		10.9	%
	Net Interest Margin (FTE) (a)		3.13	%		3.30	%
	Efficiency Ratio (FTE)		51.3	%		53.0	%
	Dividends Paid Per Common Share	$	0.78		$	0.78		0.0	%
	Common Dividend Payout Ratio		67	%		69	%
2. Net Interest Income.
		(dollars in thousands)
								%
		Q2'17			Q2'16			Change		Q1'17
	Interest and Fee Income (FTE)	$	36,240		$	37,036		-2.2	%	$	36,510
	Interest Expense		476			541		-12.1	%		480
	Net Interest and Fee Income (FTE)	$	35,764		$	36,495		-2.0	%	$	36,030
	Average Earning Assets	$	4,598,296		$	4,473,700		2.8	%	$	4,620,001
	Average Interest-
	Bearing Liabilities		2,692,447			2,598,868		3.6	%		2,704,472
	Yield on Earning Assets (FTE) (a)		3.16	%		3.32	%				3.18	%
	Cost of Funds (a)		0.04	%		0.05	%				0.04	%
	Net Interest Margin (FTE) (a)		3.12	%		3.27	%				3.14	%
	Interest Expense/
	Interest-Bearing Liabilities (a)		0.07	%		0.08	%				0.07	%
	Net Interest Spread (FTE) (a)		3.09	%		3.24	%				3.11	%
								%
		06/30'17YTD			06/30'16YTD			Change
	Interest and Fee Income (FTE)	$	72,750		$	74,035		-1.7	%
	Interest Expense		956			1,093		-12.5	%
	Net Interest and Fee Income (FTE)	$	71,794		$	72,942		-1.6	%
	Average Earning Assets	$	4,609,089		$	4,427,507		4.1	%
	Average Interest-
	Bearing Liabilities		2,698,426			2,600,138		3.8	%
	Yield on Earning Assets (FTE) (a)		3.17	%		3.35	%
	Cost of Funds (a)		0.04	%		0.05	%
	Net Interest Margin (FTE) (a)		3.13	%		3.30	%
	Interest Expense/
	Interest-Bearing Liabilities (a)		0.07	%		0.08	%
	Net Interest Spread (FTE) (a)		3.10	%		3.27	%
3. Loans & Other Earning Assets.
		(average volume, dollars in thousands)
								%
		Q2'17			Q2'16			Change		Q1'17
	Total Assets	$	5,385,085		$	5,184,409		3.9	%	$	5,395,783
	Total Earning Assets		4,598,296			4,473,700		2.8	%		4,620,001
	Total Loans		1,333,135			1,455,050		-8.4	%		1,355,250
	Commercial Loans		349,979			356,629		-1.9	%		354,896
	Commercial RE Loans		566,570			611,996		-7.4	%		558,485
	Consumer Loans		416,586			486,425		-14.4	%		441,869
	Total Investment Securities		3,265,161			3,018,650		8.2	%		3,264,751
	Available For Sale (Market)		1,982,997			1,554,014		27.6	%		1,941,028
	Held To Maturity		1,282,164			1,464,636		-12.5	%		1,323,723
	Unrealized Gain (Loss)		3,438			33,820		n/m			(1,676	)
	Loans/Deposits		28.6	%		32.1	%				28.9	%
								%
		06/30'17YTD			06/30'16YTD			Change
	Total Assets	$	5,390,404		$	5,179,607		4.1	%
	Total Earning Assets		4,609,089			4,427,507		4.1	%
	Total Loans		1,344,132			1,477,833		-9.0	%
	Commercial Loans		352,424			363,380		-3.0	%
	Commercial RE Loans		562,550			621,269		-9.5	%
	Consumer Loans		429,158			493,184		-13.0	%
	Total Investment Securities		3,264,957			2,949,674		10.7	%
	Available For Sale (Market)		1,962,128			1,560,675		25.7	%
	Held To Maturity		1,302,829			1,388,999		-6.2	%
	Unrealized Gain		3,438			33,820		n/m
	Loans/Deposits		28.7	%		32.6	%
4. Deposits, Other Interest-Bearing Liabilities & Equity.
		(average volume, dollars in thousands)
								%
		Q2'17			Q2'16			Change		Q1'17
	Total Deposits	$	4,669,424		$	4,531,751		3.0	%	$	4,692,746
	Noninterest Demand		2,048,155			1,994,803		2.7	%		2,056,858
	Interest Bearing Transaction		880,470			855,732		2.9	%		880,387
	Savings		1,491,283			1,404,322		6.2	%		1,501,961
	Time greater than $100K		110,762			119,475		-7.3	%		112,140
	Time less than $100K		138,754			157,419		-11.9	%		141,400
	Total Short-Term Borrowings		71,178			61,920		15.0	%		68,584
	Shareholders' Equity		593,028			537,987		10.2	%		582,384
	Demand Deposits/
	Total Deposits		43.9	%		44.0	%				43.8	%
	Transaction & Savings
	Deposits / Total Deposits		94.7	%		93.9	%				94.6	%
								%
		06/30'17YTD			06/30'16YTD			Change
	Total Deposits	$	4,681,021		$	4,534,650		3.2	%
	Noninterest Demand		2,052,483			1,994,395		2.9	%
	Interest Bearing Transaction		880,429			864,098		1.9	%
	Savings		1,496,592			1,395,769		7.2	%
	Time greater than $100K		111,447			121,583		-8.3	%
	Time less than $100K		140,070			158,805		-11.8	%
	Total Short-Term Borrowings		69,888			59,883		16.7	%
	Shareholders' Equity		587,736			532,582		10.4	%
	Demand Deposits/
	Total Deposits		43.8	%		44.0	%
	Transaction & Savings
	Deposits / Total Deposits		94.6	%		93.8	%
5. Interest Yields Earned & Rates Paid.
		(dollars in thousands)
		Q2'17
		Average			Income/			Yield (a) /
		Volume			Expense			Rate
	Interest & Fee Income Earned
	Total Earning Assets (FTE)	$	4,598,296		$	36,240		3.16	%
	Total Loans (FTE)		1,333,135			15,747		4.74	%
	Commercial Loans (FTE)		349,979			4,144		4.75	%
	Commercial RE Loans		566,570			8,011		5.67	%
	Consumer Loans		416,586			3,592		3.46	%
	Total Investments (FTE)		3,265,161			20,493		2.51	%
	Interest Expense Paid
	Total Earning Assets		4,598,296			476		0.04	%
	Total Interest-Bearing Liabilities		2,692,447			476		0.07	%
	Total Interest-Bearing Deposits		2,621,269			465		0.07	%
	Interest-Bearing Transaction		880,470			57		0.03	%
	Savings		1,491,283			222		0.06	%
	Time less than $100K		138,754			81		0.23	%
	Time greater than $100K		110,762			105		0.38	%
	Total Short-Term Borrowings		71,178			11		0.06	%
	Net Interest Income and
	Margin (FTE)				$	35,764		3.12	%
		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	%
6. Noninterest Income.
		(dollars in thousands except per-share amounts)
								%
		Q2'17			Q2'16			Change		Q1'17
	Service Charges on Deposits	$	4,945		$	5,239		-5.6	%	$	4,923
	Merchant Processing Services		2,052			1,638		25.3	%		1,875
	Debit Card Fees		1,586			1,621		-2.1	%		1,481
	Other Service Fees		662			650		1.8	%		650
	ATM Processing Fees		654			603		8.6	%		575
	Trust Fees		716			657		8.9	%		702
	Financial Services Commissions		142			137		3.6	%		195
	Other Income		1,366			1,157		18.0	%		1,256
	Total Noninterest Income	$	12,123		$	11,702		3.6	%	$	11,657
	Total Revenue (FTE)	$	47,887		$	48,197		-0.6	%	$	47,687
	Noninterest Income/Revenue (FTE)		25.3	%		24.3	%				24.4	%
	Service Charges/Avg. Deposits (a)		0.42	%		0.46	%				0.43	%
	Total Revenues (FTE) Per Avg.
	Common Share (a)	$	7.30		$	7.58		-3.6	%	$	7.39
								%
		06/30'17YTD			06/30'16YTD			Change
	Service Charges on Deposits	$	9,868		$	10,487		-5.9	%
	Merchant Processing Services		3,927			3,167		24.0	%
	Debit Card Fees		3,067			3,137		-2.2	%
	Other Service Fees		1,312			1,279		2.5	%
	ATM Processing Fees		1,229			1,261		-2.5	%
	Trust Fees		1,418			1,318		7.6	%
	Financial Services Commissions		337			293		15.0	%
	Other Income		2,622			2,489		5.3	%
	Total Noninterest Income	$	23,780		$	23,431		1.5	%
	Total Revenue (FTE)	$	95,574		$	96,373		-0.8	%
	Noninterest Income/Revenue (FTE)		24.9	%		24.3	%
	Service Charges/Avg. Deposits (a)		0.43	%		0.47	%
	Total Revenues (FTE) Per Avg.
	Common Share (a)	$	7.35		$	7.60		-3.3	%
7. Noninterest Expense.
		(dollars in thousands)
								%
		Q2'17			Q2'16			Change		Q1'17
	Salaries & Benefits	$	12,981		$	12,887		0.7	%	$	13,070
	Occupancy		3,509			3,400		3.2	%		3,633
	Outsourced Data Processing		2,188			2,130		2.7	%		2,139
	Amortization of
	Identifiable Intangibles		762			870		-12.4	%		800
	Professional Fees		410			758		-45.9	%		611
	Furniture & Equipment		1,267			1,187		6.8	%		1,254
	Other Real Estate Owned		(126	)		(392	)	n/m			(40	)
	Courier Service		438			462		-5.2	%		421
	Other Operating		2,967			3,927		-24.4	%		2,727
	Total Noninterest Expense	$	24,396		$	25,229		-3.3	%	$	24,615
	Noninterest Expense/
	Avg. Earning Assets (a)		2.13	%		2.27	%				2.16	%
	Noninterest Expense/Revenues (FTE)		50.9	%		52.3	%				51.6	%
								%
		06/30'17YTD			06/30'16YTD			Change
	Salaries & Benefits	$	26,051		$	26,004		0.2	%
	Occupancy		7,142			6,798		5.1	%
	Outsourced Data Processing		4,327			4,260		1.6	%
	Amortization of
	Identifiable Intangibles		1,562			1,775		-12.0	%
	Professional Fees		1,021			1,490		-31.4	%
	Furniture & Equipment		2,521			2,400		5.1	%
	Other Real Estate Owned		(166	)		(281	)	n/m
	Courier Service		859			1,007		-14.7	%
	Other Operating		5,694			7,634		-25.4	%
	Total Noninterest Expense	$	49,011		$	51,087		-4.1	%
	Noninterest Expense/
	Avg. Earning Assets (a)		2.14	%		2.32	%
	Noninterest Expense/Revenues (FTE)		51.3	%		53.0	%
8. Allowance for Loan Losses.
		(dollars in thousands)
								%
		Q2'17			Q2'16			Change		Q1'17
	Average Total Loans	$	1,333,135		$	1,455,050		-8.4	%	$	1,355,250
	Allowance for Loan Loss (ALL)
	Beginning of Period	$	24,919		$	29,487		-15.5	%	$	25,954
	(Reversal of) Provision for Loan Losses		(1,900	)		-		n/m			-
	Net ALL Recoveries (Losses)		1,084			(577	)	n/m			(1,035	)
	ALL End of Period	$	24,103		$	28,910		-16.6	%	$	24,919
	ALL Recoveries/Gross ALL Losses		158	%		61	%				44	%
	Net ALL (Recoveries) Losses/
	Avg. Total Loans (a)		-0.33	%		0.16	%				0.31	%
								%
		06/30'17YTD			06/30'16YTD			Change
	Average Total Loans	$	1,344,132		$	1,477,833		-9.0	%
	Allowance for Loan Loss (ALL)
	Beginning of Period	$	25,954		$	29,771		-12.8	%
	(Reversal of) Provision for Loan Losses		(1,900	)		-		n/m
	Net ALL Recoveries (Losses)		49			(861	)	n/m
	ALL End of Period	$	24,103		$	28,910		-16.6	%
	ALL Recoveries/Gross ALL Losses		101	%		76	%
	Net ALL (Recoveries) Losses/
	Avg. Total Loans (a)		-0.01	%		0.12	%
9. Credit Quality.
		(dollars in thousands)
								%
		6/30/17			6/30/16			Change		3/31/17
	Nonperforming Loans (1):
	Nonperforming Nonaccrual	$	2,215		$	6,527		-66.1	%	$	2,382
	Performing Nonaccrual		4,480			7,038		-36.3	%		4,285
	Total Nonaccrual Loans		6,695			13,565		-50.6	%		6,667
	90+ Days Past Due Accruing Loans		186			356		-47.8	%		373
	Total		6,881			13,921		-50.6	%		7,040
	Repossessed Loan Collateral (1)		1,645			4,162		-60.5	%		2,136
	Total Nonperforming Assets (1)	$	8,526		$	18,083		-52.8	%	$	9,176
	Total Loans Outstanding	$	1,318,341		$	1,429,560		-7.8	%	$	1,351,090
	Total Assets	$	5,393,350		$	5,179,085		4.1	%	$	5,395,947
	Loans:
	Allowance for Loan Losses	$	24,103		$	28,910		-16.6	%	$	24,919
	Allowance/Loans		1.83	%		2.02	%				1.84	%
	Nonperforming Loans/Total Loans		0.52	%		0.97	%				0.52	%
10. Capital.
		(in thousands, except per-share amounts)
								%
		6/30/17			6/30/16			Change		3/31/17
	Shareholders' Equity	$	595,594		$	558,327		6.7	%	$	584,888
	Total Assets		5,393,350			5,179,085		4.1	%		5,395,947
	Shareholders' Equity/
	Total Assets		11.04	%		10.78	%				10.84	%
	Shareholders' Equity/
	Total Loans		45.18	%		39.06	%				43.29	%
	Tangible Common Equity Ratio		8.90	%		8.48	%				8.68	%
	Common Shares Outstanding		26,304			25,632		2.6	%		26,283
	Common Equity Per Share	$	22.64		$	21.78		3.9	%	$	22.25
	Market Value Per Common Share	$	56.04		$	49.26		13.8	%	$	55.83
	Share Repurchase Programs
		(shares in thousands)
								%
		Q2'17			Q2'16			Change		Q1'17
	Total Shares Repurchased		6			7		n/m			-
	Average Repurchase Price	$	56.51		$	49.35		n/m		$	-
	Net Shares Issued		(21	)		(194	)	n/m			(376	)
								%
		06/30'17YTD			06/30'16YTD			Change
	Total Shares Repurchased		6			137		n/m
	Average Repurchase Price	$	56.51		$	41.94		n/m
	Net Shares Issued		(397	)		(104	)	n/m
11. Period-End Balance Sheets.
		(unaudited, dollars in thousands)
								%
		6/30/17			6/30/16			Change		3/31/17
	Assets:
	Cash and Due from Banks	$	529,362		$	441,785		19.8	%	$	546,815
	Investment Securities:
	Available For Sale		1,976,156			1,531,035		29.1	%		1,893,309
	Held to Maturity		1,261,321			1,473,357		-14.4	%		1,298,414
	Loans		1,318,341			1,429,560		-7.8	%		1,351,090
	Allowance For Loan Losses		(24,103	)		(28,910	)	-16.6	%		(24,919	)
	Total Loans, net		1,294,238			1,400,650		-7.6	%		1,326,171
	Other Real Estate Owned		1,645			4,162		-60.5	%		2,136
	Premises and Equipment, net		35,564			37,759		-5.8	%		36,025
	Identifiable Intangibles, net		5,365			8,656		-38.0	%		6,127
	Goodwill		121,673			121,673		0.0	%		121,673
	Other Assets		168,026			160,008		5.0	%		165,277
	Total Assets	$	5,393,350		$	5,179,085		4.1	%	$	5,395,947
	Liabilities and Shareholders' Equity:
	Deposits:
	Noninterest Bearing	$	2,079,608		$	1,978,947		5.1	%	$	2,046,390
	Interest-Bearing Transaction		885,516			827,857		7.0	%		905,588
	Savings		1,470,978			1,404,840		4.7	%		1,494,854
	Time		246,468			273,670		-9.9	%		251,141
	Total Deposits		4,682,570			4,485,314		4.4	%		4,697,973
	Short-Term Borrowed Funds		75,769			67,852		11.7	%		73,611
	Other Liabilities		39,417			67,592		-41.7	%		39,475
	Total Liabilities		4,797,756			4,620,758		3.8	%		4,811,059
	Shareholders' Equity:
	Common Equity:
	Paid-In Capital		426,012			391,213		8.9	%		424,203
	Accumulated Other
	Comprehensive (Loss) Income		(5,864	)		11,885		n/m			(9,443	)
	Retained Earnings		175,446			155,229		13.0	%		170,128
	Total Shareholders' Equity		595,594			558,327		6.7	%		584,888
	Total Liabilities and
	Shareholders' Equity	$	5,393,350		$	5,179,085		4.1	%	$	5,395,947
12. Income Statements.
		(unaudited, in thousands except per-share amounts)
								%
		Q2'17			Q2'16			Change		Q1'17
	Interest & Fee Income:
	Loans	$	15,468		$	17,583		-12.0	%	$	15,780
	Investment Securities:
	Available for Sale		10,709			8,091		32.4	%		10,249
	Held to Maturity		6,986			8,053		-13.3	%		7,295
	Total Interest & Fee Income		33,163			33,727		-1.7	%		33,324
	Interest Expense:
	Transaction Deposits		57			67		-14.9	%		57
	Savings Deposits		222			225		-1.2	%		223
	Time Deposits		186			239		-22.5	%		189
	Short-Term Borrowed Funds		11			10		12.3	%		11
	Total Interest Expense		476			541		-12.1	%		480
	Net Interest Income		32,687			33,186		-1.5	%		32,844
	(Reversal of) Provision for Loan Losses		(1,900	)		-		n/m			-
	Noninterest Income:
	Service Charges		4,945			5,239		-5.6	%		4,923
	Merchant Processing Services		2,052			1,638		25.3	%		1,875
	Debit Card Fees		1,586			1,621		-2.1	%		1,481
	Other Service Fees		662			650		1.8	%		650
	ATM Processing Fees		654			603		8.6	%		575
	Trust Fees		716			657		8.9	%		702
	Financial Services Commissions		142			137		3.6	%		195
	Other		1,366			1,157		18.0	%		1,256
	Total Noninterest Income		12,123			11,702		3.6	%		11,657
	Noninterest Expense:
	Salaries and  Benefits		12,981			12,887		0.7	%		13,070
	Occupancy		3,509			3,400		3.2	%		3,633
	Outsourced Data Processing		2,188			2,130		2.7	%		2,139
	Amortization of Identifiable Intangibles		762			870		-12.4	%		800
	Professional Fees		410			758		-45.9	%		611
	Furniture & Equipment		1,267			1,187		6.8	%		1,254
	Other Real Estate Owned		(126	)		(392	)	n/m			(40	)
	Courier Service		438			462		-5.2	%		421
	Other		2,967			3,927		-24.4	%		2,727
	Total Noninterest Expense		24,396			25,229		-3.3	%		24,615
	Income Before Income Taxes		22,314			19,659		13.5	%		19,886
	Income Tax Provision		6,515			5,113		27.4	%		4,837
	Net Income	$	15,799		$	14,546		8.6	%	$	15,049
	Average Common Shares Outstanding		26,299			25,586		2.8	%		26,171
	Diluted Common Shares Outstanding		26,402			25,630		3.0	%		26,329
	Per Common Share Data:
	Basic Earnings	$	0.60		$	0.57		5.3	%	$	0.58
	Diluted Earnings		0.60			0.57		5.3	%		0.57
	Dividends Paid		0.39			0.39		0.0	%		0.39
								%
		06/30'17YTD			06/30'16YTD			Change
	Interest & Fee Income:
	Loans	$	31,248		$	35,936		-13.0	%
	Investment Securities:
	Available for Sale		20,958			16,058		30.5	%
	Held to Maturity		14,281			15,380		-7.1	%
	Total Interest & Fee Income		66,487			67,374		-1.3	%
	Interest Expense:
	Transaction Deposits		114			137		-16.7	%
	Savings Deposits		445			448		-0.5	%
	Time Deposits		375			489		-23.4	%
	Short-Term Borrowed Funds		22			19		12.2	%
	Total Interest Expense		956			1,093		-12.5	%
	Net Interest Income		65,531			66,281		-1.1	%
	(Reversal of) Provision for Loan Losses		(1,900	)		-		n/m
	Noninterest Income:
	Service Charges		9,868			10,487		-5.9	%
	Merchant Processing Services		3,927			3,167		24.0	%
	Debit Card Fees		3,067			3,137		-2.2	%
	Other Service Fees		1,312			1,279		2.5	%
	ATM Processing Fees		1,229			1,261		-2.5	%
	Trust Fees		1,418			1,318		7.6	%
	Financial Services Commissions		337			293		15.0	%
	Other		2,622			2,489		5.3	%
	Total Noninterest Income		23,780			23,431		1.5	%
	Noninterest Expense:
	Salaries and  Benefits		26,051			26,004		0.2	%
	Occupancy		7,142			6,798		5.1	%
	Outsourced Data Processing		4,327			4,260		1.6	%
	Amortization of Identifiable Intangibles		1,562			1,775		-12.0	%
	Professional Fees		1,021			1,490		-31.4	%
	Furniture & Equipment		2,521			2,400		5.1	%
	Other Real Estate Owned		(166	)		(281	)	n/m
	Courier Service		859			1,007		-14.7	%
	Other		5,694			7,634		-25.4	%
	Total Noninterest Expense		49,011			51,087		-4.1	%
	Income Before Income Taxes		42,200			38,625		9.3	%
	Income Tax Provision		11,352			9,853		15.2	%
	Net Income	$	30,848		$	28,772		7.2	%
	Average Common Shares Outstanding		26,235			25,516		2.8	%
	Diluted Common Shares Outstanding		26,366			25,549		3.2	%
	Per Common Share Data:
	Basic Earnings	$	1.18		$	1.13		4.4	%
	Diluted Earnings		1.17			1.13		3.5	%
	Dividends Paid		0.78			0.78		0.0	%
	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.  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) All originated and purchased non performing loans and repossessed loan collateral have been combined as of Q1 '17.  Prior period presentation has been updated, accordingly.

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