Page 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
January 22, 2010
----------------
WESTAMERICA BANCORPORATION
--------------------------
(Exact Name of Registrant as Specified in Its Charter)
CALIFORNIA
----------
(State or Other Jurisdiction of Incorporation)
001-9383 94-2156203
-------- ----------
(Commission File Number) (IRS Employer Identification No.)
1108 Fifth Avenue, San Rafael, California 94901
----------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
(707) 863-6000
--------------
(Registrant's Telephone Number, Including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions:
[] Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
[] Soliciting material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)
[] Pre-commencement communications pursuant to Rule 14d-2(b) under
the Exchange Act (17 CFR 240.14d-2(b))
[] Pre-commencement communications pursuant to Rule 13e-4(c) under
the Exchange Act (17 CFR 240.13e-4c))
Page 2
Exhibits
- ---------
99.1 Press release dated January 21, 2010
Item 2.02: Results of Operations and Financial Condition
- ----------------------------------------------------------
On January 21, 2010 Westamerica Bancorporation announced earnings for the fourth
quarter of 2009. A copy of the press release is attached as Exhibit 99.1 to
this Form 8-K and is incorporated herein by reference.
Page 3
Signatures
Pursuant to the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
Westamerica Bancorporation
/s/ JOHN "ROBERT" THORSON
- -------------------------------------------------
John "Robert" Thorson
Senior Vice President and Chief Financial Officer
January 22, 2010
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INDEX TO EXHIBITS
- -----------------
Sequentially
Exhibit No. Description Number Page
- ----------- ------------------------- -------------
(99.1) Press release dated 5-16
January 21, 2010
Page 5
FOR IMMEDIATE RELEASE
January 21, 2010
WESTAMERICA BANCORPORATION FOURTH
QUARTER 2009 FINANCIAL RESULTS
San Rafael, CA: Westamerica Bancorporation (NASDAQ: WABC) earned net income
applicable to common shareholders of $23.3 million, or $0.79 per diluted common
share ("EPS"), for the three months ended December 31, 2009. During the fourth
quarter 2009, Westamerica redeemed $42 million in preferred stock requiring
accelerated discount accretion of $517 thousand, which reduced EPS $0.02.
For the third quarter 2009, Westamerica earned net income applicable to common
shareholders of $23.8 million, or $0.81 EPS. During the third quarter 2009,
Westamerica also redeemed $42 million in preferred stock requiring accelerated
discount accretion of $538 thousand, which reduced EPS $0.02. Also during the
third quarter, Westamerica eliminated $587 thousand in tax reserves due to a
lapse in the statute of limitations, which reduced tax provisions and increased
EPS $0.02. Fourth quarter 2009 results represents a 19 percent return on common
shareholders' equity.
"Westamerica's net interest margin remained steady at 5.50 percent. With
checking and savings deposits representing 75 percent of our total deposits,
Westamerica has maintained a low 0.40 percent cost of funding our loan and
investment portfolios. The risk profile of our loan portfolio is significantly
reduced as loss-sharing agreements with the Federal Deposit Insurance
Corporation cover 28 percent of our loan portfolio. The credit quality of the
non-FDIC covered loans remained relatively stable with non-covered non-
performing assets declining $4 million during the quarter," said Chairman,
President and CEO David Payne. "Our quality balance sheet, healthy profitability
and 14.5 percent total regulatory capital ratio distinguish Westamerica as a
safe and sound bank," added Payne.
Page 6
Westamerica generated net income applicable to common equity of $121 million, or
$4.14 EPS, during 2009. Results for this period include a $28.3 million net of
tax gain from the acquisition of assets and assumption of liabilities of County
Bank. Westamerica generated net income applicable to common shareholders of $60
million, or $2.04 EPS, during 2008. Results for 2008 include a $5.7 million gain
on the sale of VISA common stock resulting from VISA's initial public offering
("IPO"), and $2.3 million in reduced expenses as known litigation contingencies
were satisfied as a part of the VISA IPO. EPS was increased $0.16 due to
transactions recognized as a result of the VISA IPO. Results for 2008 also
include $36 million in losses, net of tax, recognized as a result of the decline
in value of securities, which reduced EPS by $1.24. Also, in 2008 the Company
recorded a $1.0 million reduction in its tax provision primarily due to filing
its 2007 tax return and adjusting tax estimates to actual amounts included in
the filed tax return, which increased EPS by $0.03.
Net interest income on a fully-taxable equivalent basis ("FTE") totaled $58.9
million in the fourth quarter 2009, compared to $61.6 million in the third
quarter 2009, and $49.9 million in the fourth quarter 2008. For the years 2009
and 2008, net interest income (FTE) totaled $242.2 million and $196.3 million,
respectively. Net interest income increased in 2009 compared to 2008 due to
acquired assets and a higher net interest margin. The net interest margin has
improved due to a decline in interest rates paid on deposits and other
borrowings used to fund loans and investment securities.
The provision for credit losses was $3.3 million for the fourth quarter 2009,
compared to $2.8 million for the previous quarter. For the years 2009 and 2008,
the provision for credit losses was $10.5 million and $2.7 million,
respectively. The increased provision for credit losses was due to an increase
in net loan losses during 2009.
Non-interest income for the fourth quarter 2009 was $15.7 million compared to
$16.0 million in the prior quarter.
Page 7
Non-interest expense for the fourth quarter 2009 was $32.8 million compared to
$35.2 million in the prior quarter. Personnel, occupancy and equipment expenses
have declined following the August 2009 systems integrations and branch
consolidations related to the acquired County Bank.
Non-performing assets not covered by FDIC loss-sharing agreements were $33
million at December 31, 2009, reduced $4 million from $37 million at September
30, 2009. Annualized net loan losses on non-FDIC covered loans as a percentage
of average non-FDIC covered loans were 0.88 percent and 0.56 percent during the
fourth and third quarters of 2009, and 0.60 percent and 0.44 percent during 2009
and 2008, respectively. Fourth quarter 2009 net charge-offs include a $1.6
million commercial loan charge-off related to a customer engaged in the real
estate industry. The reserve for loan losses to non-FDIC covered loans was 1.86
percent at December 31, 2009 and 1.88 percent at September 30, 2009.
Common shareholders' equity was $505 million at December 31, 2009 compared to
$494 million at September 30, 2009. At December 31, 2009, total regulatory
capital ratios for Westamerica Bancorporation and its subsidiary bank,
Westamerica Bank, were 14.5 percent and 14.9 percent, respectively, exceeding
the 10 percent requirement to be "well capitalized" under regulatory standards.
Westamerica Bancorporation, through its wholly owned subsidiary, Westamerica
Bank, operates 99 branches and two trust offices throughout Northern and Central
California counties.
Westamerica Bancorporation Web Address: www.westamerica.com
For additional information contact:
Westamerica Bancorporation
Robert A. Thorson - SVP & Chief Financial Officer
707-863-6840
Page 8
FORWARD-LOOKING INFORMATION:
- ---------------------------
This press release contains forward-looking statements about Westamerica
Bancorporation for which it claims the protection of the safe harbor provisions
contained in the Private Securities Litigation Reform Act of 1995. Examples of
forward-looking statements include, but are not limited to: (i) projections of
revenues, expenses, income or loss, earnings or loss per share, the payment or
nonpayment of dividends, capital structure and other financial items; (ii)
statements of plans, objectives and expectations of the Company or its
management or board of directors, including those relating to products or
services; (iii) statements of future economic performance; and (iv) statements
of assumptions underlying such statements. Words such as "believes",
"anticipates", "expects", "intends", "targeted", "projected", "continue",
"remain", "will", "should", "may" and other similar expressions are intended to
identify forward-looking statements but are not the exclusive means of
identifying such statements.
These forward-looking statements are based on Management's current knowledge and
belief and include information concerning the Company's possible or assumed
future financial condition and results of operations. A number of factors, some
of which are beyond the Company's ability to predict or control, could cause
future results to differ materially from those contemplated. The Company's most
recent quarterly report on Form 10-Q for the quarter ended September 30, 2009
and annual report on Form 10-K for the year ended December 31, 2008 filed with
the Securities and Exchange Commission describe some of these factors. These
factors include but are not limited to (1) the length and severity of current
difficulties in the national and California economies and the effects of federal
and state government efforts to address those difficulties; (2) liquidity levels
in capital markets; (3) fluctuations in asset prices including, but not limited
to, stocks, bonds, real estate, and commodities; (4) the effect of acquisitions
and integration of acquired businesses including the recently acquired County
Bank; (5) economic uncertainty created by terrorist threats and attacks on the
United States, the actions taken in response, and the uncertain effect of these
events on the national and regional economies; (6) changes in the interest rate
environment; (7) changes in the regulatory environment; (8) competitive pressure
in the banking industry; (9) operational risks including data processing system
failures or fraud; (10) volatility of rate sensitive loans, deposits and
investments; (11) asset/liability management risks and liquidity risks; and (12)
changes in the securities markets. The Company undertakes no obligation to
update any forward-looking statements to reflect circumstances or events that
occur after the date forward-looking statements are made.
Forward-looking statements speak only as of the date they are made.
#####
Page 9
WESTAMERICA BANCORPORATION Public Information January 21, 2010
FINANCIAL HIGHLIGHTS
December 31, 2009
1. Net Income Summary.
(dollars in thousands except per-share amounts)
Q4'09 / Q4'09 / 12/31'09YTD
Q4'09 Q4'08 Q4'08 Q3'09 Q3'09 12/31'09YTD 12/31'08YTD 12/31'08YTD
------------------------------------------------------------------------------------------------
1 Net Interest Income
(Fully Taxable Equivalent) $58,949 $49,850 18.3% $61,593 -4.3% $242,218 $196,257 23.4%
2 Provision for Loan Losses 3,300 900 266.7% 2,800 17.9% 10,500 2,700 288.9%
3 Noninterest Income:
4 Net Loss From Equity Securities 0 (3,269) n/m 0 n/m 0 (56,955) n/m
5 FAS 141R Gain 0 0 n/m 0 n/m 48,844 0 n/m
6 Other 15,696 13,177 19.1% 15,961 -1.7% 63,167 54,899 15.1%
------------------------ ------------ ------------------------
7 Total Noninterest Income (Loss) 15,696 9,908 n/m 15,961 -1.7% 112,011 (2,056) n/m
8 Noninterest Expense:
9 VISA Litigation 0 0 n/m 0 n/m 0 (2,338) n/m
10 Other 32,836 26,166 25.5% 35,151 -6.6% 140,776 103,099 36.5%
------------------------ ------------ ------------------------
11 Total Noninterest Expense 32,836 26,166 25.5% 35,151 -6.6% 140,776 100,761 39.7%
------------------------ ------------ ------------------------
12 Income Before Taxes (FTE) 38,509 32,692 17.8% 39,603 -2.8% 202,953 90,740 123.7%
13 Income Tax Provision (FTE) 14,348 11,882 20.8% 14,346 0.0% 77,527 30,905 150.9%
------------------------ ------------ ------------------------
14 Net Income 24,161 20,810 16.1% 25,257 -4.3% 125,426 59,835 109.6%
15 Preferred Stock Dividends
and Discount Accretion 812 0 n/m 1,466 -44.6% 3,963 0 n/m
------------------------ ------------ ------------------------
16 Net Income Applicable
to Common Equity $23,349 $20,810 12.2% $23,791 -1.9% $121,463 $59,835 103.0%
======================== ============ ========================
17 Average Common Shares Outstanding 29,205 28,884 1.1% 29,210 -0.0% 29,105 28,892 0.7%
18 Diluted Average Common Shares
Outstanding 29,471 29,218 0.9% 29,429 0.1% 29,353 29,273 0.3%
19 Operating Ratios:
20 Basic Earnings Per Common Share $0.80 $0.72 11.1% $0.81 -1.8% $4.17 $2.07 101.4%
21 Diluted Earnings Per
Common Share 0.79 0.71 11.3% 0.81 -2.3% 4.14 2.04 102.9%
22 Return On Assets (annualized) 1.85% 2.04% 1.86% 2.39% 1.42%
23 Return On Common Equity
(annualized) 18.8% 20.6% 19.7% 25.8% 14.8%
24 Net Interest Margin (FTE)
(annualized) 5.50% 5.44% 5.48% 5.42% 5.13%
25 Efficiency Ratio (FTE) 44.0% 43.8% 45.3% 39.7% 51.9%
26 Dividends Paid Per Common Share $0.35 $0.35 0.0% $0.35 0.0% $1.41 $1.39 1.4%
27 Common Dividend Payout Ratio 44% 49% 43% 34% 68%
2. Net Interest Income.
(dollars in thousands)
Q4'09 / Q4'09 / 12/31'09YTD
Q4'09 Q4'08 Q4'08 Q3'09 Q3'09 12/31'09YTD 12/31'08YTD 12/31'08YTD
------------------------------------------------------------------------------------------------
1 Interest and Fee Income (FTE) $63,250 $54,442 16.2% $66,093 -4.3% $261,598 $229,500 14.0%
2 Interest Expense 4,301 4,592 -6.3% 4,500 -4.4% 19,380 33,243 -41.7%
------------------------ ------------ ------------------------
3 Net Interest Income (FTE) $58,949 $49,850 18.3% $61,593 -4.3% $242,218 $196,257 23.4%
======================== ============ ========================
4 Average Earning Assets $4,268,101 $3,654,966 16.8% $4,470,851 -4.5% $4,472,660 $3,822,665 17.0%
5 Average Interest-Bearing
Liabilities 2,985,494 2,425,928 23.1% 3,094,081 -3.5% 3,136,144 2,568,016 22.1%
6 Yield on Earning Assets (FTE)
(annualized) 5.90% 5.94% 5.88% 5.85% 6.00%
7 Cost of Funds (annualized) 0.40% 0.50% 0.40% 0.43% 0.87%
8 Net Interest Margin (FTE)
(annualized) 5.50% 5.44% 5.48% 5.42% 5.13%
9 Interest Expense/Interest-Bearing
Liabilities (annualized) 0.57% 0.75% 0.58% 0.62% 1.29%
10 Net Interest Spread (FTE)
(annualized) 5.33% 5.19% 5.30% 5.23% 4.71%
Page 10
WESTAMERICA BANCORPORATION Public Information January 21, 2010
FINANCIAL HIGHLIGHTS
December 31, 2009
3. Loans & Other Earning Assets.
(average volume, dollars in thousands)
Q4'09 / Q4'09 / 12/31'09YTD
Q4'09 Q4'08 Q4'08 Q3'09 Q3'09 12/31'09YTD 12/31'08YTD 12/31'08YTD
------------------------------------------------------------------------------------------------
1 Total Assets $5,007,341 $4,053,295 23.5% $5,072,866 -1.3% $5,086,637 $4,219,763 20.5%
2 Total Earning Assets 4,268,101 3,654,966 16.8% 4,470,851 -4.5% 4,472,660 3,822,665 17.0%
3 Total Loans 3,124,583 2,399,741 30.2% 3,263,388 -4.3% 3,226,961 2,432,556 32.7%
4 Commercial Loans 848,704 586,245 44.8% 901,127 -5.8% 894,747 602,316 48.6%
5 Commercial Real Estate Loans 1,265,086 819,645 54.3% 1,313,545 -3.7% 1,283,114 835,925 53.5%
6 Consumer Loans 1,010,793 993,851 1.7% 1,048,716 -3.6% 1,049,100 994,315 5.5%
7 Total Investment Securities 1,143,518 1,255,225 -8.9% 1,207,463 -5.3% 1,245,699 1,390,109 -10.4%
8 Available For Sale
(Market Value) 392,229 299,494 31.0% 405,304 -3.2% 407,498 402,131 1.3%
9 Held To Maturity 751,289 955,731 -21.4% 802,159 -6.3% 838,201 987,978 -15.2%
10 HTM Unrealized Gain at
Period-End 9,335 885 n/m 20,047 n/m 9,335 885 n/m
11 Loans / Deposits 76.7% 77.0% 79.0% 79.3% 76.8%
4. Deposits & Other Interest-Bearing Liabilities.
(average volume, dollars in thousands)
Q4'09 / Q4'09 / 12/31'09YTD
Q4'09 Q4'08 Q4'08 Q3'09 Q3'09 12/31'09YTD 12/31'08YTD 12/31'08YTD
------------------------------------------------------------------------------------------------
1 Total Deposits $4,074,105 $3,115,989 30.7% $4,131,388 -1.4% $4,068,388 $3,166,450 28.5%
2 Noninterest Demand 1,425,867 1,167,490 22.1% 1,371,124 4.0% 1,354,534 1,181,679 14.6%
3 Interest-Bearing Transaction 669,519 533,746 25.4% 708,372 -5.5% 696,638 541,727 28.6%
4 Savings 979,973 742,897 31.9% 978,656 0.1% 951,457 759,829 25.2%
5 Time greater than $100K 564,539 479,207 17.8% 581,681 -2.9% 607,642 489,326 24.2%
6 Time less than $100K 434,207 192,649 125.4% 491,555 -11.7% 458,117 193,889 136.3%
7 Total Short-Term Borrowings 310,739 450,778 -31.1% 307,266 1.1% 395,723 549,438 -28.0%
8 Fed Funds Purchased 0 325,275 n/m 870 n/m 107,732 411,488 -73.8%
9 Other Short-Term Funds 310,739 125,503 147.6% 306,396 1.4% 287,991 137,950 108.8%
10 Long-Term Debt 26,517 26,651 -0.5% 26,551 -0.1% 26,567 33,807 -21.4%
11 Shareholders' Equity 514,497 401,598 28.1% 549,331 -6.3% 524,324 405,076 29.4%
12 Demand Deposits / Total Deposits 35.0% 37.5% 33.2% 33.3% 37.3%
13 Transaction & Savings Deposits
/ Total Deposits 75.5% 78.4% 74.0% 73.8% 78.4%
Page 11
WESTAMERICA BANCORPORATION Public Information January 21, 2010
FINANCIAL HIGHLIGHTS
December 31, 2009
5. Interest Yields Earned & Rates Paid.
(dollars in thousands)
Q4'09 Q3'09 Q4'08
------------------------------------------------------------------------------------
Average Income/ Yield */ Yield*/ Average Income/ Yield*/
Volume Expense Rate Rate Volume Expense Rate
------------------------------------------------------------------------------------
1 Interest & Fees Income Earned
2 Total Earning Assets (FTE) $4,268,101 $63,250 5.90% 5.88% $3,654,966 $54,442 5.94%
3 Total Loans (FTE) 3,124,583 47,694 6.06% 6.03% 2,399,741 37,063 6.14%
4 Commercial Loans (FTE) 848,704 12,498 5.84% 5.76% 586,245 9,123 6.19%
5 Commercial Real Estate Loans 1,265,086 21,119 6.62% 6.63% 819,645 14,471 7.02%
6 Consumer Loans 1,010,793 14,077 5.53% 5.49% 993,851 13,469 5.39%
7 Total Investment Securities
(FTE) 1,143,518 15,556 5.44% 5.47% 1,255,225 17,379 5.54%
8 Interest Expense Paid
9 Total Earning Assets 4,268,101 4,301 0.40% 0.40% 3,654,966 4,592 0.50%
10 Total Interest-Bearing
Liabilities 2,985,494 4,301 0.57% 0.58% 2,425,928 4,592 0.75%
11 Total Interest-Bearing Deposits 2,648,238 3,024 0.45% 0.47% 1,948,499 3,571 0.73%
12 Interest-Bearing Transaction 669,519 238 0.14% 0.15% 533,746 252 0.19%
13 Savings 979,973 803 0.33% 0.37% 742,897 763 0.41%
14 Time less than $100K 434,207 845 0.77% 0.67% 192,649 1,065 2.20%
15 Time greater than $100K 564,539 1,138 0.80% 0.86% 479,207 1,491 1.24%
16 Total Short-Term Borrowings 310,739 855 1.09% 1.04% 450,778 598 0.52%
17 Fed Funds Purchased 0 0 0.00% 0.15% 325,275 415 0.50%
18 Other Short-Term Funds 310,739 855 1.09% 1.04% 125,503 183 0.58%
19 Long-Term Debt 26,517 422 6.36% 6.36% 26,651 423 6.34%
20 Net Interest Income and Margin (FTE) $58,949 5.50% 5.48% $49,850 5.44%
* Annualized
6. Noninterest Income.
(dollars in thousands except per share amounts)
Q4'09 / Q4'09 / 12/31'09YTD
Q4'09 Q4'08 Q4'08 Q3'09 Q3'09 12/31'09YTD 12/31'08YTD 12/31'08YTD
------------------------------------------------------------------------------------------------
1 Service Charges on Deposit
Accounts $9,376 $7,383 27.0% $9,479 -1.1% $36,392 $29,762 22.3%
2 Merchant Credit Card Income 2,250 2,623 -14.2% 2,163 4.0% 9,068 10,525 -13.8%
3 ATM Fees & Interchange 901 685 31.5% 965 -6.7% 3,693 2,923 26.3%
4 Debit Card Fees 1,219 917 32.9% 1,267 -3.8% 4,875 3,769 29.3%
5 Financial Services Commissions 163 141 15.7% 129 26.7% 583 830 -29.8%
6 Mortgage Banking Income 14 19 -24.6% 26 -46.5% 82 125 -33.8%
7 Trust Fees 373 255 46.4% 319 16.8% 1,429 1,227 16.4%
8 Other Income 1,400 1,154 21.3% 1,613 -13.2% 7,045 5,738 22.8%
------------------------ ------------ ------------------------
9 Sub-total 15,696 13,177 19.1% 15,961 -1.7% 63,167 54,899 15.1%
10 Net Loss From Equity Securities 0 (3,269) n/m 0 n/m 0 (56,955) n/m
11 FAS 141R Gain 0 0 n/m 0 n/m 48,844 0 n/m
------------------------ ------------ ------------------------
12 Total Noninterest Income (Loss) $15,696 $9,908 58.4% $15,961 -1.7% $112,011 ($2,056) n/m
======================== ============ ========================
13 Operating Ratios:
14 Total Revenue (FTE) $74,645 $59,758 24.9% $77,554 -3.7% $354,229 $194,201 82.4%
15 Noninterest Income / Revenue
(FTE) 21.0% 16.6% 20.6% 31.6% n/m
16 Service Charges / Avg. Deposits
(annualized) 0.91% 0.94% 0.91% 0.89% 0.94%
17 Total Revenue Per Avg.
Common Share (annualized) $10.14 $8.23 23.2% $10.53 -3.7% $12.17 $6.72 81.1%
Page 12
WESTAMERICA BANCORPORATION Public Information January 21, 2010
FINANCIAL HIGHLIGHTS
December 31, 2009
7. Noninterest Expense.
(dollars in thousands)
Q4'09 / Q4'09 / 12/31'09YTD
Q4'09 Q4'08 Q4'08 Q3'09 Q3'09 12/31'09YTD 12/31'08YTD 12/31'08YTD
------------------------------------------------------------------------------------------------
1 Salaries & Benefits $15,170 $12,823 18.3% $16,402 -7.5% $65,391 $51,492 27.0%
2 Occupancy 3,917 3,405 15.0% 4,008 -2.3% 18,748 13,703 36.8%
3 Equipment 1,240 976 27.1% 1,789 -30.7% 5,859 3,801 54.2%
4 Outsourced Data Processing 2,260 2,117 6.7% 2,258 0.1% 9,000 8,440 6.6%
5 Courier 927 835 11.1% 989 -6.2% 3,808 3,322 14.6%
6 Postage 540 346 56.3% 576 -6.3% 2,110 1,487 41.8%
7 Telephone 490 344 42.2% 622 -21.3% 1,977 1,368 44.5%
8 Professional Fees 1,003 920 9.0% 913 9.9% 3,583 2,624 36.5%
9 Stationery & Supplies 364 334 9.2% 450 -19.0% 1,555 1,170 33.0%
10 Loan Expense 342 258 32.4% 491 -30.2% 2,031 911 123.0%
11 Operational Losses 295 352 -16.2% 242 21.7% 953 845 12.7%
12 Amortization of Identifiable
Intangibles 1,646 788 108.8% 1,671 -1.5% 6,697 3,221 107.9%
13 FDIC Insurance Assessment 1,440 159 n/m 1,442 -0.2% 6,260 518 n/m
14 Other Operating 3,202 2,509 27.6% 3,298 -2.9% 12,804 10,197 25.6%
------------------------ ------------ ------------------------
15 Sub-total 32,836 26,166 25.5% 35,151 -6.6% 140,776 103,099 36.5%
16 VISA Litigation 0 0 n/m 0 n/m 0 (2,338) n/m
------------------------ ------------ ------------------------
17 Total Noninterest Expense $32,836 $26,166 25.5% $35,151 -6.6% $140,776 $100,761 39.7%
======================== ============ ========================
18 Average (Avg.) Full Time
Equivalent Staff 1,056 886 19.2% 1,086 -2.8% 1,115 891 25.1%
19 Avg. Assets / Avg. Full Time
Equivalent Staff $4,742 $4,575 3.6% $4,671 1.5% $4,562 $4,736 -3.7%
20 Operating Ratios:
21 FTE Revenue / Avg. Full Time
Equiv. Staff (annualized) $280 $268 4.5% $283 -1.1% $318 $218 45.9%
22 Noninterest Expense / Avg.
Earning Assets (annualized) 3.05% 2.85% 3.12% 3.15% 2.64%
23 Noninterest Expense /
FTE Revenues 44.0% 43.8% 45.3% 39.7% 51.9%
8. Provision for Loan Losses.
(dollars in thousands)
Q4'09 / Q4'09 / 12/31'09YTD
Q4'09 Q4'08 Q4'08 Q3'09 Q3'09 12/31'09YTD 12/31'08YTD 12/31'08YTD
------------------------------------------------------------------------------------------------
1 Average Total Loans $3,124,583 $2,399,741 30.2% $3,263,388 -4.3% $3,226,961 $2,432,556 32.7%
2 Avg. Total Covered Loans (1) $889,101 $0 n/m $974,057 -8.7% $897,942 $0 n/m
3 Avg. Total Non-Covered Loans $2,235,482 $2,399,741 -6.8% $2,289,331 -2.4% $2,329,019 $2,432,556 -4.3%
4 Non-Covered Loans:
5 Provision for Loan Losses $3,300 $900 266.7% $2,800 17.9% $10,500 $2,700 288.9%
6 Gross Loan Losses 6,533 6,881 -5.1% 3,870 68.8% 17,267 12,413 39.1%
7 Net Loan Losses 4,940 6,527 -24.3% 3,239 52.5% 13,927 10,736 29.7%
8 Recoveries / Gross Loan Losses 24% 5% 16% 19% 14%
9 Net Loan Losses / Avg.
Non-Covered Loans (a) 0.88% 1.08% 0.56% 0.60% 0.44%
10 Provision for Loan Losses / Avg.
Non-Covered Loans (a) 0.59% 0.15% 0.49% 0.45% 0.11%
11 Provision for Loan Losses /
Net Loan Losses 66.8% 13.8% 86.4% 75.4% 25.1%
(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.
(a) annualized
Page 13
WESTAMERICA BANCORPORATION Public Information January 21, 2010
FINANCIAL HIGHLIGHTS
December 31, 2009
9. Credit Quality.
(dollars in thousands)
12/31/09 / 12/31/09 /
12/31/09 12/31/08 12/31/08 9/30/09 9/30/09 6/30/09 3/31/09 9/30/08
------------------------------------------------------------------------------------------------
1 Non-Covered Nonperforming Loans:
2 Nonperforming Nonaccrual Loans $19,837 $8,883 123.3% $31,352 -36.7% $29,603 $10,943 $12,132
3 Performing Nonaccrual Loans 25 1,143 -97.8% 61 -59.0% 26 27 73
------------------------ ------------ ------------------------------------
4 Total Nonaccrual Loans 19,862 10,026 98.1% 31,413 -36.8% 29,629 10,970 12,205
5 Accruing Loans 90+ Days Past Due 800 755 6.0% 1,212 -34.0% 614 777 363
------------------------ ------------ ------------------------------------
6 Total Non-Covered
Nonperforming Loans 20,662 10,781 91.7% 32,625 -36.7% 30,243 11,747 12,568
7 Non-Covered Repossessed Loan
Collateral 12,642 3,505 260.7% 4,319 192.8% 4,715 4,756 814
------------------------ ------------ ------------------------------------
8 Total Non-Covered
Nonperforming Loans 33,304 14,286 133.1% 36,944 -9.9% 34,958 16,503 13,382
------------------------ ------------ ------------------------------------
9 Covered Nonperforming Loans (1):
10 Nonperforming Nonaccrual Loans 66,965 0 n/m 53,255 25.7% 65,910 34,437 0
11 Performing Nonaccrual Loans 18,183 0 n/m 26,277 -30.8% 16,901 3,632 0
------------------------ ------------ ------------------------------------
12 Total Nonaccrual Loans 85,148 0 n/m 79,532 7.1% 82,811 38,069 0
13 Accruing Loans 90+ Days Past Due 210 0 n/m 935 -77.5% 8,622 9,866 0
------------------------ ------------ ------------------------------------
14 Total Covered Nonperforming
Loans (1) 85,358 0 n/m 80,467 6.1% 91,433 47,935 0
15 Covered Repossessed Loan
Collateral (1) 23,297 0 n/m 18,740 24.3% 13,691 13,391 0
------------------------ ------------ ------------------------------------
16 Total Covered Nonperforming
Assets (1) 108,655 0 n/m 99,207 9.5% 105,124 61,326 0
------------------------ ------------ ------------------------------------
16 Total Nonperforming Assets $141,959 $14,286 n/m $136,151 4.3% $140,082 $77,829 $13,382
======================== ============ ====================================
17 Non-Covered Classified Loans $57,241 $34,028 68.2% $66,810 -14.3% $53,359 $41,453 $38,070
18 Covered Classified Loans (1) 181,516 0 n/m 174,583 4.0% 153,972 169,778 0
------------------------ ------------ ------------------------------------
19 Total Classified Loans $238,757 $34,028 n/m $241,393 -1.1% $207,331 $211,231 $38,070
======================== ============ ====================================
20 Total Non-Covered Loans
Outstanding $2,201,088 $2,382,426 -7.6% $2,267,130 -2.9% $2,322,005 $2,356,237 $2,408,704
21 Total Covered Loans
Outstanding (1) 855,301 0 n/m 932,656 -8.3% 1,031,643 1,089,071 0
------------------------ ------------ ------------------------------------
22 Total Loans Outstanding $3,056,389 $2,382,426 28.3% $3,199,786 -4.5% $3,353,648 $3,445,308 $2,408,704
======================== ============ ====================================
23 Total Assets $4,975,501 $4,032,934 23.4% $4,971,159 0.1% $5,193,595 $5,428,865 $4,089,482
24 Non-Covered Loans:
25 Allowance for Loan Losses $41,043 $44,470 -7.7% $42,683 -3.8% $43,122 $43,803 $50,097
26 Allowance/Non-Covered Loans 1.86% 1.87% 1.88% 1.86% 1.86% 2.08%
27 Non-Covered Nonperforming Loans/
Non-Covered Loans 0.94% 0.45% 1.44% 1.30% 0.50% 0.52%
28 Non-Covered Nonperforming Assets/
Total Assets 0.67% 0.35% 0.74% 0.67% 0.30% 0.33%
29 Allowance/Non-Covered
Nonperforming Loans 199% 412% 131% 143% 373% 399%
30 Covered Loans (1):
31 Fair Value Discount on Covered
Loans $93,251 n/a $98,738 $114,276 $149,290 n/a
32 Discount/Covered Loans, gross 9.83% n/a 9.57% 9.97% 12.06% n/a
33 Covered Nonperforming Assets/
Total Assets 2.18% n/a 2.00% 2.02% 1.13% n/a
34 Fair Value Discount on Repossessed
Loan Collateral $0 n/a $4,389 $7 $11,178 n/a
35 Discount/Covered Repossessed
Loan Collateral, gross 0.00% n/a 18.98% 0.05% 45.50% n/a
(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.
Page 14
WESTAMERICA BANCORPORATION Public Information January 21, 2010
FINANCIAL HIGHLIGHTS
December 31, 2009
10.Capital.
(dollars in thousands, except per-share amounts)
12/31/09 / 12/31/09 /
12/31/09 12/31/08 12/31/08 9/30/09 9/30/09 6/30/09 3/31/09 9/30/08
------------------------------------------------------------------------------------------------
1 Common Shareholders' Equity $505,448 $409,852 23.3% $494,383 2.2% $476,620 $454,118 $399,128
2 Preferred Shareholder's Equity 0 0 n/m 41,335 n/m 82,611 82,550 0
3 Total Shareholders' Equity 505,448 409,852 23.3% 535,718 -5.7% 559,231 536,668 399,128
4 Tier I Regulatory Capital 370,011 288,859 28.1% 394,283 -6.2% 421,048 394,829 278,117
5 Total Regulatory Capital 406,339 324,455 25.2% 431,913 -5.9% 458,182 432,822 314,023
6 Total Assets 4,975,501 4,032,934 23.4% 4,971,159 0.1% 5,193,595 5,428,865 4,089,482
7 Risk-Adjusted Assets 2,803,007 2,758,866 1.6% 2,866,814 -2.2% 2,890,291 2,993,229 2,790,304
8 Total Shareholders' Equity /
Total Assets 10.16% 10.16% 10.78% 10.77% 9.89% 9.76%
9 Total Shareholders' Equity /
Total Loans 16.54% 17.20% 16.74% 16.68% 15.58% 16.57%
10 Tier I Capital / Total Assets 7.44% 7.16% 7.93% 8.11% 7.27% 6.80%
11 Tier I Capital / Risk-Adjusted
Assets 13.20% 10.47% 13.75% 14.57% 13.19% 9.97%
12 Total Capital / Risk-Adjusted
Assets 14.50% 11.76% 15.07% 15.85% 14.46% 11.25%
13 Tangible Common Equity Ratio 7.22% 7.01% 6.95% 6.26% 5.52% 6.62%
14 Common Shares Outstanding 29,208 28,880 1.1% 29,207 0.0% 29,214 28,874 28,895
15 Common Equity Per Share $17.31 $14.19 21.9% $16.93 2.2% $16.31 $15.73 $13.81
16 Market Value Per Common Share $55.37 $51.15 8.3% $52.00 6.5% $49.61 $45.56 $57.53
17 Share Repurchase Programs
(shares in thousands)
Q4'09 / Q4'09 / 12/31'09YTD
Q4'09 Q4'08 Q4'08 Q3'09 Q3'09 12/31'09YTD 12/31'08YTD 12/31'08YTD
------------------------------------------------------------------------------------------------
18 Total Shares Repurchased /
Canceled 11 16 -32.1% 8 33.3% 41 719 -94.3%
19 Average Repurchase Price $52.16 $50.74 2.8% $50.45 3.4% $47.62 $49.83 -4.4%
20 Net Shares (Issued) Repurchased (1) 15 n/m 7 n/m (328) 138 n/m
Page 15
WESTAMERICA BANCORPORATION Public Information January 21, 2010
FINANCIAL HIGHLIGHTS
December 31, 2009
11.Period-End Balance Sheets.
(unaudited, dollars in thousands)
12/31/09 / 12/31/09 /
12/31/09 12/31/08 12/31/08 9/30/09 9/30/09 6/30/09 3/31/09 9/30/08
------------------------------------------------------------------------------------------------
1 Assets:
2 Cash and Money Market Assets $361,577 $139,224 159.7% $180,521 100.3% $169,291 $149,566 $142,678
3 Investment Securities
Available For Sale 384,208 288,454 33.2% 391,644 -1.9% 407,127 436,343 304,871
4 Investment Securities
Held to Maturity 726,935 949,325 -23.4% 780,846 -6.9% 830,618 918,745 962,621
5 Non-Covered Loans 2,201,088 2,382,426 -7.6% 2,267,130 -2.9% 2,322,005 2,356,237 2,408,704
6 Allowance For Loan Losses (41,043) (44,470) -7.7% (42,683) -3.8% (43,122) (43,803) (50,097)
------------------------ ------------ ------------------------------------
7 Non-Covered Loans, net 2,160,045 2,337,956 -7.6% 2,224,447 -2.9% 2,278,883 2,312,434 2,358,607
8 Covered Loans, net (1) 855,301 0 n/m 932,656 -8.3% 1,031,643 1,089,071 0
------------------------ ------------ ------------------------------------
9 Total Loans 3,015,346 2,337,956 29.0% 3,157,103 -4.5% 3,310,526 3,401,505 2,358,607
10 Non-Covered Other Real Estate
Owned 12,642 3,505 260.7% 4,319 192.8% 4,715 4,756 814
11 Covered Other Real Estate Owned 23,297 0 n/m 18,740 24.3% 13,691 13,391 0
12 Premises and Equipment 38,098 27,351 39.3% 38,982 -2.3% 26,490 26,729 26,789
13 Identifiable Intangible Assets 35,667 15,208 134.5% 38,264 -6.8% 39,934 41,630 15,996
14 Goodwill 121,699 121,699 0.0% 121,699 0.0% 121,699 121,699 121,702
15 Interest Receivable and
Other Assets 256,032 150,212 70.4% 239,041 7.1% 269,504 314,501 155,404
------------------------ ------------ ------------------------------------
16 Total Assets $4,975,501 $4,032,934 23.4% $4,971,159 0.1% $5,193,595 $5,428,865 $4,089,482
======================== ============ ====================================
17 Liabilities and Shareholders' Equity:
18 Deposits:
19 Noninterest Bearing $1,428,432 $1,158,632 23.3% $1,377,215 3.7% $1,334,871 $1,353,696 $1,173,852
20 Interest-Bearing Transaction 669,004 525,153 27.4% 660,001 1.4% 716,706 730,153 518,944
21 Savings 971,384 745,496 30.3% 962,823 0.9% 968,408 968,411 751,512
22 Time 991,388 665,773 48.9% 1,024,587 -3.2% 1,137,152 1,204,021 685,480
------------------------ ------------ ------------------------------------
23 Total Deposits 4,060,208 3,095,054 31.2% 4,024,626 0.9% 4,157,137 4,256,281 3,129,788
------------------------ ------------ ------------------------------------
24 Short-Term Borrowed Funds 227,178 457,275 -50.3% 222,030 2.3% 316,466 441,418 487,973
25 Federal Home Loan Bank Advances 85,470 0 n/m 85,904 -0.5% 86,338 86,772 0
25 Debt Financing and
Notes Payable 26,497 26,631 -0.5% 26,531 -0.1% 26,564 26,598 26,665
26 Liability For Interest, Taxes
and Other 70,700 44,122 60.2% 76,350 -7.4% 47,859 81,128 45,928
------------------------ ------------ ------------------------------------
27 Total Liabilities 4,470,053 3,623,082 23.4% 4,435,441 0.8% 4,634,364 4,892,197 3,690,354
------------------------ ------------ ------------------------------------
28 Shareholders' Equity:
29 Preferred Stock 0 0 n/m 41,335 -100.0% 82,611 82,550 0
30 Paid-In Capital 368,732 354,674 4.0% 368,032 0.2% 367,840 356,326 354,537
31 Accumulated Other
Comprehensive Income 3,714 1,040 257.0% 6,053 -38.6% 1,747 2,274 551
32 Retained Earnings 133,002 54,138 145.7% 120,298 10.6% 107,033 95,518 44,040
------------------------ ------------ ------------------------------------
33 Total Common Equity 505,448 409,852 23.3% 494,383 2.2% 476,620 454,118 399,128
------------------------ ------------ ------------------------------------
34 Total Shareholders' Equity 505,448 409,852 23.3% 535,718 -5.7% 559,231 536,668 399,128
------------------------ ------------ ------------------------------------
35 Total Liabilities and
Shareholders' Equity $4,975,501 $4,032,934 23.4% $4,971,159 0.1% $5,193,595 $5,428,865 $4,089,482
======================== ============ ====================================
(1) Covered loans and other real estate owned 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.
Page 16
WESTAMERICA BANCORPORATION Public Information January 21, 2010
FINANCIAL HIGHLIGHTS
December 31, 2009
12.Income Statements.
(unaudited, dollars in thousands, except per-share amounts)
Q4'09 / Q4'09 / 12/31'09YTD
Q4'09 Q4'08 Q4'08 Q3'09 Q3'09 12/31'09YTD 12/31'08YTD 12/31'08YTD
------------------------------------------------------------------------------------------------
1 Interest and Fee Income:
2 Loans $46,653 $35,942 29.8% $48,530 -3.9% $189,801 $148,659 27.7%
3 Money Market Assets and
Funds Sold 0 1 n/m 1 n/m 3 3 n/m
4 Investment Securities
Available For Sale 3,996 3,426 16.6% 4,272 -6.5% 16,547 18,211 -9.1%
5 Investment Securities
Held to Maturity 7,847 10,076 -22.1% 8,393 -6.5% 35,598 41,596 -14.4%
------------------------ ------------ ------------------------
6 Total Interest Income 58,496 49,445 18.3% 61,196 -4.4% 241,949 208,469 16.1%
------------------------ ------------ ------------------------
7 Interest Expense:
8 Transaction Deposits 238 252 -5.5% 263 -9.3% 999 1,397 -28.5%
9 Savings Deposits 803 763 5.3% 915 -12.2% 3,678 4,245 -13.4%
10 Time Deposits 1,983 2,556 -22.4% 2,095 -5.4% 9,872 15,540 -36.5%
11 Short-Term Borrowed Funds 855 598 43.0% 804 6.3% 3,142 9,958 -68.5%
12 Debt Financing and
and Notes Payable 422 423 -0.2% 423 -0.1% 1,689 2,103 -19.7%
------------------------ ------------ ------------------------
13 Total Interest Expense 4,301 4,592 -6.3% 4,500 -4.4% 19,380 33,243 -41.7%
------------------------ ------------ ------------------------
14 Net Interest Income 54,195 44,853 20.8% 56,696 -4.4% 222,569 175,226 27.0%
------------------------ ------------ ------------------------
15 Provision for Loan Losses 3,300 900 266.7% 2,800 17.9% 10,500 2,700 288.9%
------------------------ ------------ ------------------------
16 Noninterest Income:
17 Service Charges on
Deposit Accounts 9,376 7,383 27.0% 9,479 -1.1% 36,392 29,762 22.3%
18 Merchant Credit Card 2,250 2,623 -14.2% 2,163 4.0% 9,068 10,525 -13.8%
19 ATM Fees & Interchange 901 685 31.5% 965 -6.7% 3,693 2,923 26.3%
20 Debit Card Fees 1,219 917 32.9% 1,267 -3.8% 4,875 3,769 29.3%
21 Financial Services Commissions 163 141 15.7% 129 26.7% 583 830 -29.8%
22 Mortgage Banking 14 19 -24.6% 26 -46.5% 82 125 -33.8%
23 Trust Fees 373 255 46.4% 319 16.8% 1,429 1,227 16.4%
24 Net Loss From Equity Securities 0 (3,269) n/m 0 n/m 0 (56,955) n/m
25 FAS 141R Gain 0 0 n/m 0 n/m 48,844 0 n/m
26 Other 1,400 1,154 21.3% 1,613 -13.2% 7,045 5,738 22.8%
------------------------ ------------ ------------------------
27 Total Noninterest Income (Loss) 15,696 9,908 58.4% 15,961 -1.7% 112,011 (2,056) n/m
------------------------ ------------ ------------------------
28 Noninterest Expense:
29 Salaries and Related Benefits 15,170 12,823 18.3% 16,402 -7.5% 65,391 51,492 27.0%
30 Occupancy 3,917 3,405 15.0% 4,008 -2.3% 18,748 13,703 36.8%
31 Equipment 1,240 976 27.1% 1,789 -30.7% 5,859 3,801 54.2%
32 Outsourced Data Processing 2,260 2,117 6.7% 2,258 0.1% 9,000 8,440 6.6%
33 Amortization of Identifiable
Intangibles 1,646 788 108.8% 1,671 -1.5% 6,697 3,221 107.9%
34 Professional Fees 1,003 920 9.0% 913 9.9% 3,583 2,624 36.5%
35 FDIC Insurance Assessment 1,440 159 n/m 1,442 -0.2% 6,260 518 n/m
36 VISA Litigation 0 0 n/m 0 n/m 0 (2,338) n/m
37 Other 6,160 4,978 23.8% 6,668 -7.6% 25,238 19,300 30.8%
------------------------ ------------ ------------------------
38 Total Noninterest Expense 32,836 26,166 25.5% 35,151 -6.6% 140,776 100,761 39.7%
------------------------ ------------ ------------------------
39 Income Before Income Taxes 33,755 27,695 21.9% 34,706 -2.7% 183,304 69,709 163.0%
40 Income Tax Provision 9,594 6,885 39.4% 9,449 1.5% 57,878 9,874 486.2%
------------------------ ------------ ------------------------
41 Net Income 24,161 20,810 16.1% 25,257 -4.3% 125,426 59,835 109.6%
42 Preferred Stock Dividends and
Discount Accretion 812 0 n/m 1,466 -44.6% 3,963 0 n/m
------------------------ ------------ ------------------------
43 Net Income Applicable to
Common Equity $23,349 $20,810 12.2% $23,791 -1.9% $121,463 $59,835 103.0%
======================== ============ ========================
44 Average Common Shares Outstanding 29,205 28,884 1.1% 29,210 -0.0% 29,105 28,892 0.7%
45 Diluted Average Common Shares
Outstanding 29,471 29,218 0.9% 29,429 0.1% 29,353 29,273 0.3%
46 Per Common Share Data:
47 Basic Earnings $0.80 $0.72 11.1% $0.81 -1.8% $4.17 $2.07 101.4%
48 Diluted Earnings 0.79 0.71 11.3% 0.81 -2.3% 4.14 2.04 102.9%
49 Dividends Paid 0.35 0.35 0.0% 0.35 0.0% 1.41 1.39 1.4%