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):
October 16, 2007
----------------
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 October 16, 2007
Item 2.02: Results of Operations and Financial Condition
----------------------------------------------------------
On October 16, 2007 Westamerica Bancorporation announced their
earnings for the third quarter of 2007. 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
October 18, 2007
Page 4
INDEX TO EXHIBITS
-----------------
Sequentially
Exhibit No. Description Number Page
----------- ------------------------- -------------
(99.1) Press release dated 5-16
October 16, 2007
Page 5
FOR IMMEDIATE RELEASE
October 16, 2007
WESTAMERICA BANCORPORATION REPORTS QUARTERLY EARNINGS
FOR THIRD QUARTER 2007
San Rafael, CA: Westamerica Bancorporation (NASDAQ: WABC), parent company of
Westamerica Bank, today reported net income of $22.0 million for the third
quarter of 2007, compared to $22.4 million for the second quarter of 2007 and
$24.2 million for the third quarter of 2006. Third quarter 2007 diluted earnings
per share were $0.74, compared to $0.74 for the second quarter of 2007 and $0.77
for the third quarter of 2006. Return on average common equity (ROE) for the
third quarter of 2007 was 21.7 percent and return on assets (ROA) was 1.89
percent.
For the first nine months of 2007, net income totaled $67.9 million, compared to
$74.8 million for the same period in 2006. Diluted earnings per share were $2.24
for the first nine months of 2007, compared to $2.34 for the same period in
2006. For the first nine months of 2007, ROE was 22.2 percent and ROA was 1.95
percent.
"Our net interest margin was essentially stable in the third quarter of 2007,
down only 0.02 percent from the prior quarter. We expect to begin realizing
margin expansion as the September 2007 reduction in the federal funds rate
causes interest rate re-pricing of our funding sources at a faster pace than our
loans and investments," said Chairman, President and CEO David Payne. "During
the third quarter 2007, our credit quality remained stable in spite of the
slowing economy. We have worked hard to achieve the seven percent increase in
our non-interest revenues and four percent reduction in our expenses in the
first nine months of 2007 compared to the same period last year," added Payne.
Page 6
Net interest income on a fully taxable equivalent (FTE) basis was $45.6 million
in the third quarter of 2007 compared to $46.1 million and $50.2 million in the
second quarter of 2007 and the third quarter of 2006, respectively. The third
quarter of 2007 net interest margin (FTE) was 4.34 percent, down from 4.36
percent and 4.54 percent in the second quarter of 2007 and the third quarter of
2006, respectively.
Noninterest income for the first nine months of 2007 totaled $44.6 million,
increased from $41.6 million in the first nine months of 2006. The $3.0 million
increase is primarily due to:
* $1.4 million increase in service charges on deposit accounts.
* $800 thousand higher merchant credit card income.
* $200 thousand increase in debit card and ATM fees.
* $800 thousand gain from life insurance proceeds recognized in the first
quarter of 2007.
Noninterest expense for the first nine months of 2007 was $74.2 million, reduced
from $77.2 million for the first nine months of 2006. The $3.0 million decline
is primarily due to:
* $2.1 million lower personnel costs.
* $500 thousand reduction in professional fees.
* $300 thousand lower occupancy and equipment expense.
* $300 thousand decline in amortization of intangible assets.
* $300 thousand increase in data processing expenses.
The higher data processing expenses and a portion of the lower personnel costs
are due to conversion of the Company's item processing function to an outside
vendor. This conversion is not expected to change overall expenses by a
meaningful amount. The FTE efficiency ratio (expenses divided by revenues) for
the first nine months of 2007 was 40.5 percent, compared to 39.1 percent for the
first nine months of 2006.
Page 7
The provision for credit losses was $75 thousand for the third quarter of 2007,
unchanged from the previous and year ago quarters.
At September 30, 2007, shareholders' equity was $404 million and the Company's
total regulatory capital ratio was 10.7 percent, which exceeds the "well-
capitalized" level of 10 percent under regulatory requirements. During the third
quarter 2007, shares repurchased, net of shares issued, totaled 354 thousand
shares. At September 30, 2007, 1.8 million shares remain authorized under the
Company's stock repurchase plan.
Westamerica Bancorporation, through its wholly owned subsidiary Westamerica
Bank, operates 87 branches throughout 21 Northern and Central California
counties. At September 30, 2007, the company had total assets outstanding of
$4.7 billion.
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:
---------------------------
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 annual and quarterly reports filed with the Securities and
Exchange Commission, including the Company's Form 10-Q for the quarter ended
June 30, 2007, and Form 10-K for the year ended December 31, 2006, describe some
of these factors, including certain credit, market, operational, liquidity and
interest rate risks associated with the Company's business and operations. Other
factors described in these reports include changes in business and economic
conditions, competition, fiscal and monetary policies, disintermediation,
legislation including the Sarbanes-Oxley Act of 2002 and the Gramm-Leach-Bliley
Act of 1999, and mergers and acquisitions.
Forward-looking statements speak only as of the date they are made. The
Company does not undertake to update forward-looking statements to reflect
circumstances or events that occur after the date forward looking statements are
made.
#####
Page 9
WESTAMERICA BANCORPORATION Public Information October 16, 2007
FINANCIAL HIGHLIGHTS
September 30, 2007
1. Net Income Summary.
(dollars in thousands except per-share amounts)
Q3'07 / Q3'07 / 9/30'07YTD /
Q3'07 Q3'06 Q3'06 Q2'07 Q2'07 9/30'07YTD 9/30'06YTD 9/30'06YTD
------------------------------------------------------------------------------------------------
1 Net Interest Income $45,563 $50,198 -9.2% $46,059 -1.1% $138,536 $155,675 -11.0%
(Fully Taxable Equivalent)
2 Provision for Credit Losses 75 75 0.0% 75 0.0% 225 375 -40.0%
3 Noninterest Income:
4 Life Insurance Gains 0 0 n/m 0 n/m 822 0 n/m
5 Other 14,644 13,899 5.4% 14,700 -0.4% 43,799 41,600 5.3%
------------------------ ------------ ------------------------
6 Total Noninterest Income 14,644 13,899 5.4% 14,700 -0.4% 44,621 41,600 7.3%
7 Noninterest Expense 24,853 25,403 -2.2% 24,706 0.6% 74,222 77,232 -3.9%
------------------------ ------------ ------------------------
8 Income Before Taxes (FTE) 35,279 38,619 35,978 108,710 119,668
9 Income Tax Provision (FTE) 13,257 14,382 -7.8% 13,627 -2.7% 40,766 44,819 -9.0%
------------------------ ------------ ------------------------
10 Net Income $22,022 $24,237 -9.1% $22,351 -1.5% $67,944 $74,849 -9.2%
======================== ============ ========================
11 Average Shares Outstanding 29,532 31,070 -5.0% 29,938 -1.4% 29,935 31,372 -4.6%
12 Diluted Average Shares 29,915 31,558 -5.2% 30,365 -1.5% 30,365 31,919 -4.9%
Outstanding
13 Operating Ratios:
14 Basic Earnings Per Share $0.75 $0.78 -4.4% $0.75 0.0% $2.27 $2.39 -4.9%
15 Diluted Earnings Per Share $0.74 0.77 -4.1% 0.74 0.0% 2.24 2.34 -4.6%
16 Return On Assets 1.89% 1.98% 1.92% 1.95% 2.02%
17 Return On Equity 21.7% 22.7% 21.9% 22.2% 23.6%
18 Net Interest Margin (FTE) 4.34% 4.54% 4.36% 4.37% 4.61%
19 Efficiency Ratio (FTE) 41.3% 39.6% 40.7% 40.5% 39.1%
20 Dividends Paid Per Share $0.34 $0.32 6.3% $0.34 0.0% $1.02 $0.96 6.3%
21 Dividend Payout Ratio 46% 42% 46% 46% 41%
2. Net Interest Income.
(dollars in thousands)
Q3'07 / Q3'07 / 9/30'07YTD /
Q3'07 Q3'06 Q3'06 Q2'07 Q2'07 9/30'07YTD 9/30'06YTD 9/30'06YTD
------------------------------------------------------------------------------------------------
1 Interest and Fee Income (FTE) $64,708 $67,186 -3.7% $64,875 -0.3% $194,608 $203,460 -4.4%
2 Interest Expense 19,145 16,988 12.7% 18,816 1.7% 56,072 47,785 17.3%
------------------------ ------------ ------------------------
3 Net Interest Income (FTE) $45,563 $50,198 -9.2% $46,059 -1.1% $138,536 $155,675 -11.0%
======================== ============ ========================
4 Average Earning Assets $4,198,859 $4,419,609 -5.0% $4,245,342 -1.1% $4,243,610 $4,513,838 -6.0%
5 Average Interest-Bearing 2,905,457 3,045,282 -4.6% 2,926,090 -0.7% 2,930,690 3,129,901 -6.4%
Liabilities
6 Yield on Earning Assets (FTE) 6.14% 6.05% 6.12% 6.12% 6.02%
7 Cost of Funds 1.80% 1.51% 1.76% 1.75% 1.41%
8 Net Interest Margin (FTE) 4.34% 4.54% 4.36% 4.37% 4.61%
9 Interest Expense/ Interest- 2.60% 2.20% 2.56% 2.54% 2.03%
Bearing Liabilities
10 Net Interest Spread (FTE) 3.54% 3.85% 3.56% 3.58% 3.99%
WESTAMERICA BANCORPORATION Public Information October 16, 2007
FINANCIAL HIGHLIGHTS
September 30, 2007
3. Loans & Other Earning Assets.
(average volume, dollars in thousands)
Q3'07 / Q3'07 / 9/30'07YTD /
Q3'07 Q3'06 Q3'06 Q2'07 Q2'07 9/30'07YTD 9/30'06YTD 9/30'06YTD
------------------------------------------------------------------------------------------------
1 Total Assets $4,628,728 $4,846,286 -4.5% $4,668,627 -0.9% $4,670,019 $4,949,661 -5.6%
2 Total Earning Assets 4,198,859 4,419,609 -5.0% 4,245,342 -1.1% 4,243,610 4,513,838 -6.0%
3 Total Loans 2,514,685 2,555,472 -1.6% 2,516,114 -0.1% 2,516,939 2,586,547 -2.7%
4 Commercial Loans 625,490 654,179 -4.4% 626,270 -0.1% 622,778 674,821 -7.7%
5 Commercial Real Estate Loans 871,225 913,919 -4.7% 883,942 -1.4% 885,172 917,044 -3.5%
6 Consumer Loans 1,017,970 987,374 3.1% 1,005,902 1.2% 1,008,989 994,682 1.4%
7 Total Investment Securities 1,684,174 1,864,137 -9.7% 1,729,228 -2.6% 1,726,671 1,927,291 -10.4%
8 Available For Sale 590,749 636,481 -7.2% 602,667 -2.0% 602,009 650,918 -7.5%
(Market Value)
9 Held To Maturity 1,093,425 1,227,656 -10.9% 1,126,561 -2.9% 1,124,662 1,276,373 -11.9%
10 HTM Unrealized (Loss (4,974) (6,777) n/m (18,668) n/m (4,974) (6,777) n/m
at Period-End
11 Loans / Deposits 74.9% 70.9% 74.5% 74.3% 70.3%
4. Deposits & Other Interest-Bearing Liabilities.
(average volume, dollars in thousands)
Q3'07 / Q3'07 / 9/30'07YTD /
Q3'07 Q3'06 Q3'06 Q2'07 Q2'07 9/30'07YTD 9/30'06YTD 9/30'06YTD
------------------------------------------------------------------------------------------------
1 Total Deposits $3,358,163 $3,602,566 -6.8% $3,377,413 -0.6% $3,387,591 $3,679,677 -7.9%
2 Noninterest Demand 1,254,530 1,311,786 -4.4% 1,267,032 -1.0% 1,264,147 1,328,071 -4.8%
3 Interest-Bearing Transaction 566,556 602,996 -6.0% 577,555 -1.9% 576,970 626,196 -7.9%
4 Savings 810,213 943,396 -14.1% 824,299 -1.7% 833,419 976,753 -14.7%
5 Time greater than $100K 519,488 509,741 1.9% 496,338 4.7% 500,389 504,843 -0.9%
6 Time less than $100K 207,376 234,647 -11.6% 212,189 -2.3% 212,666 243,814 -12.8%
7 Total Short-Term Borrowings 764,992 717,524 6.6% 778,841 -1.8% 770,378 740,923 4.0%
8 Fed Funds Purchased 621,165 485,095 28.1% 625,060 -0.6% 614,259 527,454 16.5%
9 Other Short-Term Funds 143,827 232,429 -38.1% 153,781 -6.5% 156,119 213,469 -26.9%
10 Long-Term Debt 36,832 36,978 -0.4% 36,868 -0.1% 36,868 37,372 -1.3%
11 Shareholders' Equity 402,016 422,735 -4.9% 408,564 -1.6% 408,497 424,189 -3.7%
12 Demand Deposits / 37.4% 36.4% 37.5% 37.3% 36.1%
Total Deposits
13 Transaction & Savings Deposits 78.4% 79.3% 79.0% 79.0% 79.7%
/ Total Deposits
WESTAMERICA BANCORPORATION Public Information October 16, 2007
FINANCIAL HIGHLIGHTS
September 30, 2007
5. Interest Yields Earned & Rates Paid.
(dollars in thousands)
Q3'07 Q3'06
------------------------------------ Q2'07 ------------------------------------
Average Income/ Yield/ Yield/ Average Income/ Yield/
Volume Expense Rate Rate Volume Expense Rate
------------------------------------------------------------------------------------
1 Interest & Fees Income Earned
2 Total Earning Assets (FTE) $4,198,859 $64,708 6.14% 6.12% $4,419,609 $67,186 6.05%
3 Total Loans (FTE) 2,514,685 42,310 6.68% 6.69% 2,555,472 42,588 6.61%
4 Commercial Loans (FTE) 625,490 12,719 8.07% 7.73% 654,179 13,150 7.78%
5 Commercial Real Estate 871,225 15,602 7.10% 7.17% 913,919 16,396 7.12%
Loans
6 Consumer Loans 1,017,970 13,989 5.45% 5.44% 987,374 13,042 5.24%
7 Total Investment 1,684,174 22,398 5.32% 5.31% 1,864,137 24,598 5.28%
Securities (FTE)
8 Interest Expense Paid
9 Total Earning Assets 4,198,859 19,145 1.80% 1.76% 4,419,609 16,988 1.51%
10 Total Interest-Bearing 2,905,457 19,145 2.60% 2.56% 3,045,282 16,988 2.20%
Liabilities
11 Total Interest-Bearing 2,103,633 9,966 1.88% 1.81% 2,290,780 9,011 1.56%
Deposits
12 Interest-Bearing 566,556 526 0.37% 0.37% 602,996 430 0.28%
Transaction
13 Savings 810,213 1,649 0.81% 0.71% 943,396 1,173 0.49%
14 Time less than $100K 207,376 1,755 3.36% 3.31% 234,647 1,722 2.91%
15 Time greater than $100K 519,488 6,036 4.61% 4.68% 509,741 5,686 4.43%
16 Total Short-Term Borrowings 764,992 8,601 4.40% 4.43% 717,524 7,399 4.04%
17 Fed Funds Purchased 621,165 8,171 5.15% 5.25% 485,095 6,508 5.25%
18 Other Short-Term Funds 143,827 430 1.18% 1.10% 232,429 891 1.52%
19 Long-Term Debt 36,832 578 6.28% 6.27% 36,978 578 6.25%
20 Net Interest Income and Margin (FTE) $45,563 4.34% 4.36% $50,198 4.54%
6. Noninterest Income.
(dollars in thousands except per share amounts)
Q3'07 / Q3'07 / 9/30'07YTD /
Q3'07 Q3'06 Q3'06 Q2'07 Q2'07 9/30'07YTD 9/30'06YTD 9/30'06YTD
------------------------------------------------------------------------------------------------
1 Service Charges on Deposit $7,569 $7,155 5.8% $7,716 -1.9% $22,813 $21,424 6.5%
Accounts
2 Merchant Credit Card Income 2,808 2,430 15.5% 2,768 1.4% 8,024 7,208 11.3%
3 ATM Fees & Interchange 723 753 -4.0% 714 1.2% 2,114 2,148 -1.6%
4 Debit Card Fees 969 883 9.8% 960 1.0% 2,825 2,587 9.2%
5 Financial Services Fees 383 377 1.8% 363 5.7% 1,057 1,037 1.9%
6 Mortgage Banking Income 29 36 -17.4% 33 -9.9% 92 134 -31.7%
7 Trust Fees 337 298 13.2% 304 10.8% 978 867 12.8%
8 Other Income 1,826 1,967 -7.2% 1,842 -0.9% 5,896 6,195 -4.8%
------------------------ ------------ ------------------------
9 Sub-total 14,644 13,899 5.4% 14,700 -0.4% 43,799 41,600 5.3%
10 Life Insurance Gains 0 0 n/m 0 n/m 822 0 n/m
------------------------ ------------ ------------------------
11 Total Noninterest Income $14,644 $13,899 5.4% $14,700 -0.4% $44,621 $41,600 7.3%
======================== ============ ========================
12 Operating Ratios:
13 Total Revenue (FTE) $60,207 $64,097 -6.1% $60,759 -0.9% $183,157 $197,275 -7.2%
14 Noninterest Income / 24.3% 21.7% 24.2% 24.4% 21.1%
Revenue (FTE)
15 Service Charges / 0.89% 0.79% 0.92% 0.90% 0.78%
Deposits (annualized)
16 Total Revenue Per Share $8.09 $8.18 -1.2% $8.14 -0.6% $8.18 $8.41 -2.7%
(annualized)
WESTAMERICA BANCORPORATION Public Information October 16, 2007
FINANCIAL HIGHLIGHTS
September 30, 2007
7. Noninterest Expense.
(dollars in thousands)
Q3'07 / Q3'07 / 9/30'07YTD /
Q3'07 Q3'06 Q3'06 Q2'07 Q2'07 9/30'07YTD 9/30'06YTD 9/30'06YTD
------------------------------------------------------------------------------------------------
1 Salaries & Benefits $12,587 $13,080 -3.8% $12,622 -0.3% $37,776 $39,897 -5.3%
2 Occupancy 3,327 3,321 0.2% 3,342 -0.4% 9,960 9,820 1.4%
3 Equipment 1,083 1,194 -9.3% 1,147 -5.6% 3,367 3,775 -10.8%
4 Data Processing 1,800 1,503 19.8% 1,543 16.7% 4,866 4,568 6.5%
5 Courier 854 904 -5.6% 857 -0.4% 2,559 2,736 -6.5%
6 Postage 404 410 -1.3% 396 2.0% 1,211 1,217 -0.5%
7 Telephone 342 371 -7.8% 354 -3.4% 1,055 1,269 -16.8%
8 Professional Fees 451 532 -15.2% 409 10.3% 1,355 1,823 -25.6%
9 Stationery & Supplies 323 307 5.1% 269 20.3% 906 849 6.8%
10 Loan Expense 217 253 -14.3% 171 26.8% 555 683 -18.8%
11 Operational Losses 228 129 76.4% 171 33.3% 559 572 -2.4%
12 Amortization of Identifiable 893 1,016 -12.1% 893 0.0% 2,760 3,071 -10.1%
Intangibles
13 Other Operating 2,344 2,383 -1.7% 2,532 -7.4% 7,293 6,952 4.9%
------------------------ ------------ ------------------------
14 Total Noninterest Expense $24,853 $25,403 -2.2% $24,706 0.6% $74,222 $77,232 -3.9%
======================== ============ ========================
15 Full Time Equivalent Staff 876 901 -2.8% 910 -3.7% 893 915 -2.4%
16 Average Assets / Full Time $5,284 $5,379 -1.8% $5,130 3.0% $5,230 $5,409 -3.3%
Equivalent Staff
17 Operating Ratios:
18 FTE Revenue / Full Time $273 $282 -3.4% $268 1.8% $274 $288 -4.9%
Equiv. Staff (annualized)
19 Noninterest Expense / 2.35% 2.28% 2.33% 2.34% 2.29%
Earning Assets
(annualized)
20 Noninterest Expense / 41.3% 39.6% 40.7% 40.5% 39.1%
Revenues
WESTAMERICA BANCORPORATION Public Information October 16, 2007
FINANCIAL HIGHLIGHTS
September 30, 2007
8. Provision for Credit Losses.
(dollars in thousands)
Q3'07 / Q3'07 / 9/30'07YTD /
Q3'07 Q3'06 Q3'06 Q2'07 Q2'07 9/30'07YTD 9/30'06YTD 9/30'06YTD
------------------------------------------------------------------------------------------------
1 Provision for Credit Losses $75 $75 0.0% $75 0.0% $225 $375 -40.0%
2 Gross Loan Losses 1,031 1,011 1.9% 2,244 -54.1% 4,519 2,775 62.9%
3 Net Loan Losses 610 421 44.9% 1,491 -59.1% 2,617 886 195.6%
4 Recoveries / Gross Loan Losses 41% 58% 34% 42% 68%
5 Average Total Loans $2,514,685 $2,555,472 -1.6% $2,516,114 -0.1% $2,516,939 $2,586,547 -2.7%
6 Net Loan Losses / Loans 0.10% 0.07% 0.24% 0.14% 0.05%
(annualized)
7 Provision for Credit Losses / 0.01% 0.01% 0.01% 0.01% 0.02%
Loans (annualized)
8 Provision for Credit Losses / 12.3% 17.8% 5.0% 8.6% 42.3%
Net Loan Losses
9. Credit Quality.
(dollars in thousands)
9/30/07 / 9/30/07 /
09/30/07 09/30/06 09/30/06 06/30/07 06/30/07 03/31/07 12/31/06 06/30/06
------------------------------------------------------------------------------------------------
1 Nonperforming Nonaccrual Loans $3,132 $1,162 169.6% $3,140 -0.2% $2,341 $61 $1,613
2 Performing Nonaccrual Loans 1,695 3,889 -56.4% 1,898 -10.7% 2,459 4,404 3,899
------------------------ ------------ ------------------------------------
3 Total Nonaccrual Loans 4,827 5,051 -4.4% 5,038 -4.2% 4,800 4,465 5,512
4 Accruing Loans 90+ Days 251 252 -0.4% 179 40.2% 82 65 114
Past Due ------------------------ ------------ ------------------------------------
5 Total Nonperforming Loans 5,078 5,303 -4.2% 5,217 -2.7% 4,882 4,530 5,626
6 Repossessed Collateral 613 656 -6.6% 613 0.0% 647 647 656
7 Total Nonperforming Loans & ------------------------ ------------ ------------------------------------
8 Repossessed Collateral $5,691 $5,959 -4.5% $5,830 -2.4% $5,529 $5,177 $6,282
======================== ============ ====================================
9 Classified Loans $21,403 $24,111 -11.2% $22,498 -4.9% $18,439 $20,180 $25,682
======================== ============ ====================================
10 Allowance for Loan Losses $52,938 $55,338 -4.3% $53,473 -1.0% $54,889 $55,330 $55,684
11 Total Loans Outstanding 2,511,374 2,552,929 -1.6% 2,521,738 -0.4% 2,519,898 2,531,734 2,580,612
12 Total Assets 4,657,016 4,844,116 -3.9% 4,647,069 0.2% 4,748,829 4,769,335 4,905,642
13 Allowance for Loan Losses / 2.11% 2.18% 2.12% 2.18% 2.19% 2.16%
Total Loans
14 Nonperforming Loans / 0.20% 0.21% 0.21% 0.19% 0.18% 0.22%
Total Loans
15 Nonperforming Loans & Repossessed
16 Collateral/Total Assets 0.12% 0.12% 0.13% 0.12% 0.11% 0.13%
17 Allowance/Nonperforming Loans 1042% 1044% 1025% 1124% 1221% 990%
18 Allowance for Loan Losses / 247% 230% 238% 298% 274% 217%
Classified Loans
19 Classified Loans /
20 (Equity + Allowance for 4.7% 5.0% 4.9% 3.9% 4.2% 5.4%
Loan Losses)
WESTAMERICA BANCORPORATION Public Information October 16, 2007
FINANCIAL HIGHLIGHTS
September 30, 2007
10.Capital.
(dollars in thousands, except per-share amounts)
9/30/07 / 9/30/07 /
09/30/07 09/30/06 09/30/06 06/30/07 06/30/07 03/31/07 12/31/06 06/30/06
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1 Shareholders' Equity $403,651 $428,732 -5.9% $407,982 -1.1% $419,810 $424,235 $423,487
2 Tier I Regulatory Capital 283,015 300,344 -5.8% 286,818 -1.3% 293,382 298,576 300,661
3 Total Regulatory Capital 322,598 341,207 -5.5% 326,582 -1.2% 333,658 339,114 341,788
4 Total Assets 4,657,016 4,844,116 -3.9% 4,647,069 0.2% 4,748,829 4,769,335 4,905,642
5 Risk-Adjusted Assets 3,017,668 3,094,942 -2.5% 3,014,947 0.1% 3,043,445 3,057,054 3,127,641
6 Shareholders' Equity / 8.67% 8.85% 8.78% 8.84% 8.90% 8.63%
Total Assets
7 Shareholders' Equity / 16.07% 16.79% 16.18% 16.66% 16.76% 16.41%
Total Loans
8 Tier I Capital /Total Assets 6.08% 6.20% 6.17% 6.18% 6.26% 6.13%
9 Tier I Capital / Risk-Adjusted 9.38% 9.70% 9.51% 9.64% 9.77% 9.61%
Assets
10 Total Capital / Risk-Adjusted 10.69% 11.02% 10.83% 10.96% 11.09% 10.93%
Assets
11 Shares Outstanding 29,378 30,910 -5.0% 29,732 -1.2% 30,158 30,547 31,201
12 Book Value Per Share $13.74 $13.87 -0.9% $13.72 0.1% $13.92 $13.89 $13.57
13 Market Value Per Share $49.81 $50.51 -1.4% $44.24 12.6% $48.17 $50.63 48.97
14 Share Repurchase Programs
(shares in thousands)
Q3'07 / Q3'07 /
Q3'07 Q3'06 Q3'06 Q2'07 Q2'07 9/30'07YTD 9/30'06YTD 9/30'06YTD
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15 Total Shares Repurchased / 492 436 13.0% 456 7.9% 1,396 1,356 2.9%
Canceled
16 Average Repurchase Price $43.90 $47.98 -8.5% $46.77 -6.1% $46.63 $50.67 -8.0%
17 Net Shares Repurchased 354 291 21.6% 426 -17.0% 1,169 972 20.3%
WESTAMERICA BANCORPORATION Public Information October 16, 2007
FINANCIAL HIGHLIGHTS
September 30, 2007
11.Period-End Balance Sheets.
(dollars in thousands)
9/30/07 / 9/30/07 /
09/30/07 09/30/06 09/30/06 06/30/07 06/30/07 03/31/07 12/31/06 06/30/06
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1 Assets:
2 Cash and Money Market Assets $219,960 $192,175 14.5% $164,390 33.8% $208,734 $185,009 $189,204
3 Investment Securities 570,086 617,736 -7.7% 582,959 -2.2% 602,220 615,525 620,294
Available For Sale
4 Investment Securities 1,081,009 1,211,589 -10.8% 1,104,132 -2.1% 1,142,382 1,165,092 1,243,936
Held to Maturity
5 Loans, gross 2,511,374 2,552,929 -1.6% 2,521,738 -0.4% 2,519,898 2,531,734 2,580,612
6 Allowance For Loan Losses (52,938) (55,338) -4.3% (53,473) -1.0% (54,889) (55,330) (55,684)
------------------------ ------------ ------------------------------------
7 Loans, net 2,458,436 2,497,591 -1.6% 2,468,265 -0.4% 2,465,009 2,476,404 2,524,928
------------------------ ------------ ------------------------------------
8 Premises and Equipment 28,666 30,979 -7.5% 29,169 -1.7% 29,643 30,188 31,785
9 Identifiable Intangible 19,322 23,098 -16.3% 20,215 -4.4% 21,108 22,082 24,114
Assets
10 Goodwill 121,719 121,719 0.0% 121,719 0.0% 121,719 121,719 121,719
11 Interest Receivable and 157,818 149,229 5.8% 156,220 1.0% 158,014 153,316 149,662
Other Assets ------------------------ ------------ ------------------------------------
12 Total Assets $4,657,016 $4,844,116 -3.9% $4,647,069 0.2% $4,748,829 $4,769,335 $4,905,642
======================== ============ ====================================
13 Liabilities and Shareholders' Equity:
14 Deposits:
15 Noninterest Bearing $1,251,572 $1,298,519 -3.6% $1,266,941 -1.2% $1,293,920 $1,341,019 $1,330,280
16 Interest-Bearing 549,263 581,705 -5.6% 554,036 -0.9% 584,026 588,668 606,633
Transaction
17 Savings 806,797 926,262 -12.9% 809,791 -0.4% 851,800 865,268 951,819
18 Time 732,582 744,645 -1.6% 704,264 4.0% 714,626 721,779 758,315
------------------------ ------------ ------------------------------------
19 Total Deposits 3,340,214 3,551,131 -5.9% 3,335,032 0.2% 3,444,372 3,516,734 3,647,047
------------------------ ------------ ------------------------------------
20 Short-Term Borrowed Funds 815,101 768,841 6.0% 809,261 0.7% 776,781 731,977 746,517
21 Debt Financing and 36,809 36,956 -0.4% 36,846 -0.1% 36,883 36,920 36,993
Notes Payable
22 Liability For Interest, 61,241 58,456 4.8% 57,948 5.7% 70,983 59,469 51,598
Taxes and Other ------------------------ ------------ ------------------------------------
23 Total Liabilities 4,253,365 4,415,384 -3.7% 4,239,087 0.3% 4,329,019 4,345,100 4,482,155
------------------------ ------------ ------------------------------------
24 Shareholders' Equity:
25 Paid-In Capital $337,627 $346,603 -2.6% $338,290 -0.2% $341,724 $344,263 $346,224
26 Accumulated Other Comprehensive
27 (Loss) Income (412) 1,805 n/m (777) n/m 3,593 1,850 (4,771)
28 Retained Earnings 66,436 80,324 -17.3% 70,469 -5.7% 74,493 78,122 82,034
------------------------ ------------ ------------------------------------
29 Total Shareholders' Equity 403,651 428,732 -5.9% 407,982 -1.1% 419,810 424,235 423,487
------------------------ ------------ ------------------------------------
30 Total Liabilities and $4,657,016 $4,844,116 -3.9% $4,647,069 0.2% $4,748,829 $4,769,335 $4,905,642
Shareholders' Equity ======================== ============ ====================================
WESTAMERICA BANCORPORATION Public Information October 16, 2007
FINANCIAL HIGHLIGHTS
September 30, 2007
12.Income Statements.
(dollars in thousands, except per-share amounts)
Q3'07 / Q3'07 /
Q3'07 Q3'06 Q3'06 Q2'07 Q2'07 9/30'07YTD 9/30'06YTD 9/30'06YTD
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1 Interest and Fee Income:
2 Loans $41,134 $41,292 -0.4% $40,727 1.0% $122,027 $123,558 -1.2%
3 Money Market Assets 2 1 n/m 2 n/m 5 3 n/m
and Funds Sold
4 Investment Securities 6,713 7,227 -7.1% 6,841 -1.9% 20,676 22,179 -6.8%
Available For Sale
5 Investment Securities 11,448 12,845 -10.9% 11,771 -2.7% 35,303 39,970 -11.7%
Held to Maturity ------------------------ ------------ ------------------------
6 Total Interest Income 59,297 61,365 -3.4% 59,341 -0.1% 178,011 185,710 -4.1%
------------------------ ------------ ------------------------
7 Interest Expense:
8 Transaction Deposits 526 430 22.4% 528 -0.3% 1,577 1,285 22.8%
9 Savings Deposits 1,649 1,173 40.6% 1,452 13.5% 4,509 2,995 50.6%
10 Time Deposits 7,791 7,408 5.2% 7,540 3.3% 22,637 19,985 13.3%
11 Short-Term Borrowed Funds 8,601 7,399 16.2% 8,718 -1.3% 25,614 21,766 17.7%
12 Debt Financing and 578 578 0.0% 578 -0.0% 1,735 1,754 -1.1%
Notes Payable ------------------------ ------------ ------------------------
13 Total Interest Expense 19,145 16,988 12.7% 18,816 1.7% 56,072 47,785 17.3%
------------------------ ------------ ------------------------
14 Net Interest Income 40,152 44,377 -9.5% 40,525 -0.9% 121,939 137,925 -11.6%
------------------------ ------------ ------------------------
15 Provision for Credit Losses 75 75 0.0% 75 0.0% 225 375 -40.0%
------------------------ ------------ ------------------------
16 Noninterest Income:
17 Service Charges on 7,569 7,155 5.8% 7,716 -1.9% 22,813 21,424 6.5%
Deposit Accounts
18 Merchant Credit Card 2,808 2,430 15.5% 2,768 1.4% 8,024 7,208 11.3%
19 Financial Services 383 377 1.8% 363 5.7% 1,057 1,037 1.9%
Commissions
20 Mortgage Banking 29 36 -17.4% 33 -9.9% 92 134 -31.7%
21 Trust Fees 337 298 13.2% 304 10.8% 978 867 12.8%
22 Life Insurance Gains 0 0 n/m 0 n/m 822 0 n/m
23 Other 3,518 3,603 -2.4% 3,516 0.0% 10,835 10,930 -0.9%
------------------------ ------------ ------------------------
24 Total Noninterest Income 14,644 13,899 5.4% 14,700 -0.4% 44,621 41,600 7.3%
------------------------ ------------ ------------------------
25 Noninterest Expense:
26 Salaries and Related 12,587 13,080 -3.8% 12,622 -0.3% 37,776 39,897 -5.3%
Benefits
27 Occupancy 3,327 3,321 0.2% 3,342 -0.4% 9,960 9,820 1.4%
28 Equipment 1,083 1,194 -9.3% 1,147 -5.6% 3,367 3,775 -10.8%
29 Data Processing 1,800 1,503 19.8% 1,543 16.7% 4,866 4,568 6.5%
30 Professional Fees 451 532 -15.2% 409 10.3% 1,355 1,823 -25.6%
31 Other 5,605 5,773 -2.9% 5,643 -0.7% 16,898 17,349 -2.6%
------------------------ ------------ ------------------------
32 Total Noninterest Expense 24,853 25,403 -2.2% 24,706 0.6% 74,222 77,232 -3.9%
------------------------ ------------ ------------------------
33 Income Before Income Taxes 29,868 32,798 -8.9% 30,444 -1.9% 92,113 101,918 -9.6%
34 Provision for income taxes 7,846 8,561 -8.3% 8,093 -3.1% 24,169 27,069 -10.7%
------------------------ ------------ ------------------------
35 Net Income $22,022 $24,237 -9.1% $22,351 -1.5% $67,944 $74,849 -9.2%
======================== ============ ========================
36 Average Shares Outstanding 29,532 31,070 -5.0% 29,938 -1.4% 29,935 31,372 -4.6%
37 Diluted Average Shares 29,915 31,558 -5.2% 30,365 -1.5% 30,365 31,919 -4.9%
Outstanding
38 Per Share Data:
39 Basic Earnings $0.75 $0.78 -4.4% $0.75 -0.1% $2.27 $2.39 -4.9%
40 Diluted Earnings 0.74 0.77 -4.1% 0.74 0.0% 2.24 2.34 -4.6%
41 Dividends Paid 0.34 0.32 6.3% 0.34 0.0% 1.02 0.96 6.3%