SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 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): April 12, 1997
WESTAMERICA BANCORPORATION
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(Exact name of registrant as specified in its charter)
Commission File Number: 1-9383
CALIFORNIA 94-2156203
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(State of incorporation) (I.R.S. Employer
identification number)
1108 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA 94901
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(Address of principal executive offices and zip code)
(415) 257-8000
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(Registrant's area code and telephone number)
ITEM 2: ACQUISITION OR DISPOSITION OF ASSETS
(a) On April 12, 1997, the merger of ValliCorp Holdings, Inc.
("ValliCorp"), parent company of ValliWide Bank, with and into
Westamerica Bancorporation (the "Company") became effective as of 12:01
a.m. Pacific Time. The merger, which was announced on November 12,
1996, was approved by a majority of the Company's and of ValliCorp's
shareholders on February 24, 1997. Federal Reserve Board approval was
received on March 19, 1997.
By virtue of the merger, the Company acquired all of the assets of
ValliCorp. ValliCorp assets are detailed in the financial statements in
Item 7 below.
Under the terms of the Agreement and Plan of Reorganization among
ValliCorp, ValliWide Bank and Westamerica Bancorporation, dated as of
November 11, 1996, as amended (the "Agreement and Plan of
Reorganization"), each share of ValliCorp Common Stock will be exchanged
for .3479 shares of the Company's Common Stock. The exchange ratio of
.3479 was calculated pursuant to the Agreement and Plan of
Reorganization. No gain or loss for tax purposes will be recognized by
ValliCorp shareholders, except with respect to cash received in lieu of
fractional shares. Based on the closing price of the Company's Common
Stock on April 11, 1997, the acquisition was valued at approximately
$290 million or $20.11 per share.
(b) Principal assets of ValliCorp included cash and cash
equivalents, loans and other extensions of credit and investment
securities, and any physical assets such as real estate or buildings
accounted for an immaterial portion of the assets of ValliCorp. See the
financial statements in Item 7.
ITEM 7: FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial Statements of ValliCorp Holdings, Inc.: Page
Report of Independent Public Accountants *
Consolidated Balance Sheets at December 31, 1995
and 1996 *
Consolidated Statements of Income for the years ended
December 31, 1994, 1995 and 1996 *
Consolidated Statements of Shareholders' Equity for
the years ended December 31, 1994, 1995 and 1996 *
Consolidated Statements of Cash Flows for the years
ended December 31, 1997, 1995 and 1996 *
Notes to Consolidated Financial Statements *
* Financial Statements of ValliCorp Holdings, Inc., are
incorporated herein by reference to Item 8 of the Annual Report on Form
10-K of ValliCorp Holdings, Inc., for the fiscal year ended December 31,
1996.
(b) Pro forma financial information:
Condensed Consolidated Balance Sheet as of
December 31, 1996 4
Condensed Consolidated Statements of Income for
the years ended December 31, 1996, 1995 and 1994 5
(c) Exhibits:
Exhibit No.
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2.1 Agreement and Plan of Merger by and between ValliCorp
Holdings, Inc., and Westamerica Bancorporation, dated
as of April 11, 1997, as filed with the Secretary of
State of the State of California.
Selected Historical and Pro Forma Financial Data
The following tables present selected historical and pro forma
combined consolidated financial information for Westamerica
Bancorporation and ValliCorp Holdings, Inc. The unaudited pro forma
combined financial information presents selected financial information
based on historical financial statements of the parties. The unaudited
pro forma combined financial information gives effect to the Merger
under the pooling-of-interests method of accounting as if the Merger had
been in effect for the periods indicated or on December 31, 1996. The
unaudited pro forma combined and pro forma equivalent financial
statements are for illustrative purposes only and do not indicate the
results or financial position that would have occurred if the Merger had
been in effect on the dates or for the periods indicated or that may
occur in the future.
Westamerica Bancorporation and ValliCorp Holdings, Inc.
(Unaudited Pro Forma Combined)
Consolidated Balance Sheet
(In thousands)
<CAPTION
At December 31, 1996
---------------------------------------------------------
Westamerica and
Westamerica Pro Forma ValliCorp Pro
Bancorporation ValliCorp Adjustments Forma Combined
-------------- --------- ----------- --------------
ASSETS
Cash and cash equivalents $149,429 $205,748 $-- $355,177
Money market assets 250 -- -- 250
Investment securities
available for sale 696,610 198,204 (2,353) 892,461
Investment securities
held to maturity 197,428 18,004 -- 215,432
Loans 1,444,237 834,741 -- 2,278,978
Reserve for loan losses (34,919) (16,002) -- (50,921)
----------- ----------- ----------- -----------
Net loans 1,409,318 818,739 -- 2,228,057
Other real estate owned 6,091 3,821 -- 9,912
Premises and equipment, net 34,895 29,073 -- 63,968
Interest receivable and other assets 54,466 47,051 (8) 101,509
----------- ----------- ----------- -----------
Total assets $2,548,487 $1,320,640 ($2,361) $3,866,766
=========== =========== =========== ===========
LIABILITIES
Deposits:
Non-interest bearing $515,451 $319,513 $-- $834,964
Interest bearing:
Transaction and savings 1,058,247 510,775 -- 1,569,022
Time 507,698 317,016 -- 824,714
----------- ----------- ----------- -----------
Total deposits 2,081,396 1,147,304 -- 3,228,700
Funds purchased 161,147 6,300 -- 167,447
Liability for interest, taxes and
other expenses 24,498 8,281 (304) 32,475
Notes and mortgages payable 42,500 16,365 -- 58,865
----------- ----------- ----------- -----------
Total liabilities 2,309,541 1,178,250 (304) 3,487,487
SHAREHOLDERS' EQUITY
Authorized
Issued and outstanding 93,558 95,307 (1,655) 187,210
Unrealized gain on securities
available for sales 7,817 (1,396) (402) 6,019
Retained earnings 137,571 48,479 -- 186,050
----------- ----------- ----------- -----------
Total shareholders' equity 238,946 142,390 (2,057) 379,279
----------- ----------- ----------- -----------
Total liabilities and
shareholders' equity $2,548,487 $1,320,640 ($2,361) $3,866,766
=========== =========== =========== ===========
Westamerica Bancorporation and ValliCorp Holdings, Inc.
(Unaudited Pro Forma Combined)
Condensed Consolidated Statements of Income
(In thousands, except per share data)
Year Ended December 31, 1996
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Westamerica and
Westamerica Pro Forma ValliCorp Pro
Bancorporation ValliCorp Adjustments Forma Combined
------------- ---------- ----------- --------------
INTEREST INCOME
Loans $124,838 $82,048 $-- $206,886
Money market assets and funds sold -- 5,218 -- 5,218
Trading account securities -- -- -- 0
Investment securities 49,427 12,696 (45) 62,078
--------- --------- --------- ---------
Total interest income 174,265 99,962 (45) 274,182
INTEREST EXPENSE
Deposits 48,561 29,024 -- 77,585
Funds purchased 9,528 446 -- 9,974
Notes and mortgages payable 2,828 1,313 -- 4,141
--------- --------- --------- ---------
Total interest expense 60,917 30,783 -- 91,700
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NET INTEREST INCOME 113,348 69,179 (45) 182,482
0
Provision for loan losses 4,575 7,731 -- 12,306
NET INTEREST INCOME AFTER --------- --------- --------- ---------
PROVISION FOR LOAN LOSSES 108,773 61,448 (45) 170,176
0
NON-INTEREST INCOME 0
Service charges on deposit accounts 12,847 2,801 -- 15,648
Merchant credit card 2,657 1,892 -- 4,549
Mortgage banking 1,290 696 -- 1,986
Financial services commissions 788 -- -- 788
Trust fees 386 -- -- 386
Securities (loss) gain 29 -- -- 29
Other 4,046 8,881 (6) 12,921
--------- --------- --------- ---------
Total non-interest income 22,043 14,270 (6) 36,307
0
NON-INTEREST EXPENSE 0
Salaries and related benefits 38,171 23,378 -- 61,549
Occupancy 10,313 6,490 -- 16,803
Equipment 5,471 4,652 -- 10,123
Data processing 4,027 -- -- 4,027
Professional fees 2,451 -- -- 2,451
Other real estate owned 425 -- -- 425
FDIC insurance 16 -- -- 16
Merger costs -- 6,016 -- 6,016
Other 14,753 19,888 -- 34,641
--------- --------- --------- ---------
Total non-interest expense 75,627 60,424 -- 136,051
--------- --------- --------- ---------
INCOME BEFORE INCOME TAXES 55,189 15,294 (51) 70,432
Provision for income taxes 17,449 6,166 (10) 23,605
--------- --------- --------- ---------
NET INCOME $37,740 $9,128 ($41) 46,827
========= ========= ========= =========
Average shares outstanding 9,613 13,739 (111) 14,354
PER SHARE DATA
Earnings per share $3.93 $0.67 $3.26
Westamerica Bancorporation and ValliCorp Holdings, Inc.
(Unaudited Pro Forma Combined)
Condensed Consolidated Statements of Income
(In thousands, except per share data)
Year Ended December 31, 1995
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Westamerica and
Westamerica Pro Forma ValliCorp Pro
Bancorporation ValliCorp Adjustments Forma Combined
------------- ---------- ----------- --------------
INTEREST INCOME
Loans $128,264 $89,560 $-- $217,824
Money market assets and funds sold 276 3,604 -- 3,880
Trading account securities 1 -- -- 1
Investment securities 45,836 16,160 -- 61,996
--------- --------- --------- ---------
Total interest income 174,377 109,324 -- 283,701
INTEREST EXPENSE
Deposits 48,479 34,955 -- 83,434
Funds purchased 8,403 303 -- 8,706
Notes and mortgages payable 1,730 1,757 -- 3,487
--------- --------- --------- ---------
Total interest expense 58,612 37,015 -- 95,627
--------- --------- --------- ---------
NET INTEREST INCOME 115,765 72,309 -- 188,074
0
Provision for loan losses 5,595 9,633 -- 15,228
NET INTEREST INCOME AFTER --------- --------- --------- ---------
PROVISION FOR LOAN LOSSES 110,170 62,676 -- 172,846
0
NON-INTEREST INCOME 0
Service charges on deposit accounts 12,734 8,534 -- 21,268
Merchant credit card 2,422 1,172 -- 3,594
Mortgage banking 1,479 590 -- 2,069
Financial services commissions 611 239 -- 850
Trust fees 615 -- -- 615
Securities (loss) gain 19 (113) -- (94)
Other 3,653 2,274 -- 5,927
--------- --------- --------- ---------
Total non-interest income 21,533 12,696 -- 34,229
0
NON-INTEREST EXPENSE 0
Salaries and related benefits 41,171 25,293 -- 66,464
Occupancy 10,684 6,099 -- 16,783
Equipment 6,255 4,837 -- 11,092
Data processing 4,239 1,366 -- 5,605
Professional fees 3,905 2,348 -- 6,253
Other real estate owned 890 940 -- 1,830
FDIC insurance 2,375 1,405 -- 3,780
Merger costs -- 700 -- 700
Other 16,821 12,632 -- 29,453
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Total non-interest expense 86,340 55,620 -- 141,960
--------- --------- --------- ---------
INCOME BEFORE INCOME TAXES 45,363 19,752 -- 65,115
Provision for income taxes 13,979 7,950 -- 21,929
--------- --------- --------- ---------
NET INCOME $31,384 $11,802 $-- 43,186
========= ========= ========= =========
Average shares outstanding 9,877 13,525 -- 14,582
PER SHARE DATA
Earnings per share $3.18 $0.88 $2.96
Westamerica Bancorporation and ValliCorp Holdings, Inc.
(Unaudited Pro Forma Combined)
Condensed Consolidated Statements of Income
(In thousands, except per share data)
Year Ended December 31, 1994
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Westamerica and
Westamerica Pro Forma ValliCorp Pro
Bancorporation ValliCorp Adjustments Forma Combined
------------- ---------- ----------- --------------
INTEREST INCOME
Loans $120,115 $72,389 $-- $192,504
Money market assets and funds sold 1,367 1,008 -- 2,375
Trading account securities 2 -- -- 2
Investment securities 44,610 17,147 -- 61,757
--------- --------- --------- ---------
Total interest income 166,094 90,544 -- 256,638
INTEREST EXPENSE
Deposits 41,967 22,906 -- 64,873
Funds purchased 5,281 319 -- 5,600
Notes and mortgages payable 2,612 236 -- 2,848
--------- --------- --------- ---------
Total interest expense 49,860 23,461 -- 73,321
--------- --------- --------- ---------
NET INTEREST INCOME 116,234 67,083 -- 183,317
0
Provision for loan losses 7,420 3,958 -- 11,378
NET INTEREST INCOME AFTER --------- --------- --------- ---------
PROVISION FOR LOAN LOSSES 108,814 63,125 -- 171,939
0
NON-INTEREST INCOME 0
Service charges on deposit accounts 12,948 8,864 -- 21,812
Merchant credit card 2,401 865 -- 3,266
Mortgage banking 4,270 521 -- 4,791
Financial services commissions 673 212 -- 885
Trust fees 751 -- -- 751
Securities (loss) gain (60) 7 -- (53)
Other 5,016 461 -- 5,477
--------- --------- --------- ---------
Total non-interest income 25,999 10,930 -- 36,929
0
NON-INTEREST EXPENSE 0
Salaries and related benefits 45,106 25,327 -- 70,433
Occupancy 10,632 5,448 -- 16,080
Equipment 6,149 4,293 -- 10,442
Data processing 4,466 1,743 -- 6,209
Professional fees 4,079 1,937 -- 6,016
Other real estate owned 623 254 -- 877
FDIC insurance 4,683 2,589 -- 7,272
Merger costs -- 3,367 -- 3,367
Other 18,603 10,829 -- 29,432
--------- --------- --------- ---------
Total non-interest expense 94,341 55,787 -- 150,128
--------- --------- --------- ---------
INCOME BEFORE INCOME TAXES 40,472 18,268 -- 58,740
Provision for income taxes 12,810 7,817 -- 20,627
--------- --------- --------- ---------
NET INCOME $27,662 $10,451 $-- 38,113
========= ========= ========= =========
Average shares outstanding 9,916 13,402 -- 14,579
PER SHARE DATA
Earnings per share $2.79 $0.78 $2.61
SIGNATURE
Pursuant to the requirements of 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
By
/s/ Dennis R. Hansen
-------------------------
Dennis R. Hansen
Senior Vice President and
Controller
Dated: April 25, 1997.
EXHIBIT INDEX
Exhibit No. Description
- ----------- -----------
2.1 Agreement and Plan of Merger by and between
ValliCorp Holdings, Inc., and Westamerica
Bancorporation, dated as of April 11, 1997, as
filed with the Secretary of State of the State of
California.