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 20, 2005
----------------
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 18, 2005
Item 2.02: Results of Operations and Financial Condition
----------------------------------------------------------
On October 18, 2005 Westamerica Bancorporation announced their
quarterly earnings for the third quarter of 2005. A copy of
the press release is attached as Exhibit 99.1 to this Form 8-K
and is incorporated herein by reference.
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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/ DENNIS R. HANSEN
------------------------------------
Dennis R. Hansen
Senior Vice President
October 20, 2005
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INDEX TO EXHIBITS
-----------------
Sequentially
Exhibit No. Description Number Page
----------- ------------------------- -------------
(99.1) Press release dated 5-16
October 18, 2005
Page 5
FOR IMMEDIATE RELEASE
October 18, 2005
WESTAMERICA BANCORPORATION REPORTS RECORD
QUARTERLY EARNINGS FOR THIRD QUARTER 2005
San Rafael, CA: Westamerica Bancorporation (NASDAQ: WABC), parent company of
Westamerica Bank, today reported record net income of $29.2 million for the
third quarter of 2005, up from $25.1 million for the third quarter of 2004.
Third quarter 2005 diluted earnings per share increased to $0.89 from $0.78 for
the third quarter of 2004. Return on average common equity (ROE) for the third
quarter of 2005 was 27.3 percent and return on assets (ROA) was 2.25 percent.
Third quarter 2005 results include a gain on the sale of a facility vacated
following the Redwood Empire Bancorp acquisition and recognition of company
owned life insurance proceeds which, on a combined basis, account for $0.06
diluted earnings per share.
For the first nine months of 2005, net income totaled $79.8 million, compared to
$74.1 million for the same period in 2004. Diluted earnings per share were $2.42
for the first nine months of 2005, compared to $2.28 for the same period in
2004. Results for the first nine months of 2005 include a first quarter realized
loss on the sale of available-for-sale securities, a second quarter property
sale gain, and third quarter gains from the sale of premises and company owned
life insurance proceeds. On a combined basis, these items reduced net income by
$100 thousand for the first nine months of 2005.
"Results for the third quarter of 2005 benefited from growth in merchant credit
card and debit card income," said Chairman, President and CEO David Payne. "Our
consistent focus on gathering noninterest bearing demand deposits and other low-
cost deposits has maintained Westamerica's cost of funds at a relatively low
level. Our funding cost was only 1.01 percent in the third quarter, which gives
us a competitive advantage in the current operating environment," added Payne.
Page 6
Net interest income on a fully taxable equivalent basis was $56.0 million in the
third quarter of 2005 compared to $54.5 million in the third quarter of 2004.
The third quarter of 2005 net interest margin was 4.76 percent, down from 5.11
percent in the third quarter of 2004. Rising short-term interest rates combined
with limited change in intermediate interest rates and highly competitive loan
pricing has resulted in an operating environment with declining net interest
margins.
Noninterest income in the third quarter of 2005 totaled $17.4 million, compared
to $11.8 million in the third quarter of 2004. In comparison to the third
quarter of 2004, the third quarter of 2005 benefited from a $1.7 million
increase in merchant credit card income, a $180 thousand increase in debit card
fees, and $3.0 million combined from a gain on the sale of premises and company-
owned life insurance proceeds.
Noninterest income for the first nine months of 2005 totaled $40.1 million,
compared to $34.3 million in the first nine months of 2004. The $5.8 million
increase is primarily due to:
* $ 3.7 million higher merchant credit card income attributable to the
acquisition of Redwood Empire Bancorp on March 1, 2005.
* $670 thousand increase in debit card and ATM fees.
* $210 thousand increase in service charges on deposit accounts.
* $130 thousand increase in trust fees.
Noninterest expense for the third quarter of 2005 was $26.8 million, unchanged
from the prior quarter. Compared to the third quarter of 2004, noninterest
expense increased $2.3 million in the third quarter of 2005. The increase is due
to higher personnel, occupancy, equipment, and intangible asset amortization
costs following the acquisition of Redwood Empire Bancorp.
The efficiency ratio for the third quarter of 2005 was 36.5 percent, compared to
36.9 percent in both the prior quarter and the third quarter of 2004.
Page 7
Nonperforming assets increased from $7.8 million at June 30, 2005 to $8.1
million at September 30, 2005. The increase is primarily due to a $1.3 million
increase in loans 90 or more days past due and accruing, which is attributable
to one commercial loan. Such loan, totaling $1.2 million, is 100 percent
secured by Westamerica Bank certificates of deposit. The Bank has not exercised
its right of offset as management expects full repayment upon the settlement of
the borrower's estate.
The provision for loan losses was $150 thousand for the third quarter of 2005,
reduced from $300 thousand for the previous quarter and $600 thousand for the
third quarter of 2004. The reduced provision for loan losses reflects
management's assessment of credit risk for the loan portfolio.
Shareholders' equity was $432 million at September 30, 2005. The Company's
total regulatory capital ratio was 10.4 percent at September 30, 2005, which
exceeds the "well-capitalized" level of 10 percent under regulatory
requirements.
Westamerica Bancorporation, through its wholly owned subsidiary Westamerica
Bank, operates 89 branches throughout 22 Northern and Central California
counties. At September 30, 2005, the company had total assets outstanding of
$5.2 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, 2005 and Form 10-K for the year ended December 31, 2004, 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, the combination of the former Redwood Empire
Bancorp and other 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.
#####
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WESTAMERICA BANCORPORATION Public Information October 18, 2005
FINANCIAL HIGHLIGHTS
September 30, 2005
1. Net Income Summary.
(dollars in thousands except per-share data)
Q3'05 / Q3'05 / 9/30'05YTD /
Q3'05 Q3'04 Q3'04 Q2'05 Q2'05 9/30'05YTD 9/30'04YTD 9/30'04YTD
---------------------------------------------------------------------------------------
1. Net Interest Income (Fully $55,993 $54,528 2.7% $57,023 -1.8% $168,036 $163,405 2.8%
Taxable Equivalent)
2. Loan Loss Provision 150 600 -75.0% 300 -50.0% 750 2,100 -64.3%
3. Noninterest Income:
4. Investment Securities 0 (14) n/m 0 n/m (4,903) 2,169 n/m
(Loss/Impairment) Gains
5. Loss on Extinguishment 0 0 n/m 0 n/m 0 (2,204) n/m
of Debt
6. Other 17,440 11,802 47.8% 15,479 12.7% 45,017 34,349 31.1%
----------------------- ------------ -----------------------
7. Total Noninterest Income 17,440 11,788 47.9% 15,479 12.7% 40,114 34,314 16.9%
----------------------- ------------ -----------------------
8. Noninterest Expense 26,791 24,491 9.4% 26,757 0.1% 78,689 74,473 5.7%
9. Income Tax Provision (FTE) 17,298 16,130 7.2% 17,531 -1.3% 48,869 47,093 3.8%
----------------------- ------------ -----------------------
10.Net Income $29,194 $25,095 16.3% $27,914 4.6% $79,842 $74,053 7.8%
======================= ============ =======================
11.Average Shares Outstanding 32,352 31,713 2.0% 32,759 -1.2% 32,379 31,841 1.7%
12.Diluted Average Shares 32,972 32,352 1.9% 33,364 -1.2% 33,007 32,452 1.7%
Outstanding
13.Operating Ratios:
14. Basic Earnings Per Share $0.90 $0.79 14.0% $0.85 5.9% $2.47 $2.33 6.0%
15. Diluted Earnings Per Share 0.89 0.78 14.1% 0.84 5.8% 2.42 2.28 6.0%
16. Return On Assets 2.25% 2.19% 2.17% 2.11% 2.20%
17. Return On Equity 27.3% 30.1% 26.0% 26.1% 30.6%
18. Net Interest Margin (FTE) 4.76% 5.11% 4.84% 4.84% 5.20%
19. Efficiency Ratio (FTE) 36.5% 36.9% 36.9% 37.8% 37.7%
20.Dividends Paid Per Share $0.30 $0.28 7.1% $0.30 0.0% $0.90 $0.82 9.8%
21.Dividend Payout Ratio 34% 36% 36% 37% 36%
2. Net Interest Income.
(dollars in thousands)
Q3'05 / Q3'05 / 9/30'05YTD /
Q3'05 Q3'04 Q3'04 Q2'05 Q2'05 9/30'05YTD 9/30'04YTD 9/30'04YTD
---------------------------------------------------------------------------------------
1. Interest and Fee Income (FTE) $68,021 $59,570 14.2% $67,769 0.4% $199,166 $178,559 11.5%
2. Interest Expense 12,028 5,042 138.6% 10,746 11.9% 31,130 15,154 105.4%
----------------------- ------------ -----------------------
3. Net Interest Income (FTE) $55,993 $54,528 2.7% $57,023 -1.8% $168,036 $163,405 2.8%
======================= ============ =======================
4. Average Earning Assets $4,695,342 $4,260,701 10.2%$4,719,635 -0.5%$4,644,636 $4,198,373 10.6%
5. Average Interest-Bearing 3,266,697 2,882,817 13.3% 3,304,766 -1.2% 3,234,627 2,877,329 12.4%
Liabilities
6. Yield on Earning Assets (FTE) 5.77% 5.58% 5.75% 5.73% 5.68%
7. Cost of Funds 1.01% 0.47% 0.91% 0.89% 0.48%
8. Net Interest Margin (FTE) 4.76% 5.11% 4.84% 4.84% 5.20%
9. Interest Expense/Interest- 1.45% 0.69% 1.30% 1.28% 0.70%
Bearing Liabilities
10.Net Interest Spread (FTE) 4.32% 4.89% 4.45% 4.45% 4.98%
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WESTAMERICA BANCORPORATION Public Information October 18, 2005
3. Loans & Other Earning Assets.
(average volume, dollars in thousands)
Q3'05 / Q3'05 / 9/30'05YTD /
Q3'05 Q3'04 Q3'04 Q2'05 Q2'05 9/30'05YTD 9/30'04YTD 9/30'04YTD
---------------------------------------------------------------------------------------
1. Total Assets $5,141,666 $4,557,925 12.8%$5,170,029 -0.5%$5,058,776 $4,497,287 12.5%
2. Total Earning Assets 4,695,342 4,260,701 10.2% 4,719,635 -0.5% 4,644,636 4,198,373 10.6%
3. Total Loans 2,643,270 2,247,664 17.6% 2,670,662 -1.0% 2,562,880 2,266,184 13.1%
4. Commercial Loans 711,330 624,925 13.8% 724,681 -1.8% 692,824 621,574 11.5%
5. Commercial Real Estate Loans 937,380 752,395 24.6% 956,931 -2.0% 901,373 779,074 15.7%
6. Consumer Loans 994,560 870,344 14.3% 989,050 0.6% 968,683 865,536 11.9%
7. Total Investment Securities 2,052,072 2,013,037 1.9% 2,048,973 0.2% 2,081,756 1,932,189 7.7%
8. Available For Sale 681,098 928,930 -26.7% 710,960 -4.2% 748,246 1,148,891 -34.9%
(Market Value)
9. Held To Maturity 1,370,974 1,084,107 26.5% 1,338,013 2.5% 1,333,510 783,298 70.2%
10. HTM Unrealized (Loss) (8,157) 9,176 n/m 8,529 n/m (8,157) 9,176 n/m
Gain at Period-End
11.Loans / Deposits 68.3% 62.2% 68.4% 66.9% 64.5%
4. Deposits & Other Interest-Bearing Liabilities.
(average volume, dollars in thousands)
Q3'05 / Q3'05 / 9/30'05YTD /
Q3'05 Q3'04 Q3'04 Q2'05 Q2'05 9/30'05YTD 9/30'04YTD 9/30'04YTD
---------------------------------------------------------------------------------------
1. Total Deposits $3,872,414 $3,616,319 7.1%$3,906,875 -0.9%$3,831,947 $3,514,372 9.0%
2. Noninterest Demand 1,400,272 1,305,840 7.2% 1,387,984 0.9% 1,367,580 1,257,089 8.8%
3. Interest-Bearing Transaction 632,680 581,264 8.8% 633,645 -0.2% 625,493 573,607 9.0%
4. Savings 1,104,237 1,115,052 -1.0% 1,130,024 -2.3% 1,116,227 1,066,831 4.6%
5. Other Time >$100K 455,293 347,579 31.0% 448,104 1.6% 436,477 342,585 27.4%
6. Other Time < $100K 279,932 266,584 5.0% 307,118 -8.9% 286,170 274,260 4.3%
7. Total Short-Term Borrowings 754,215 550,909 36.9% 745,499 1.2% 734,394 566,044 29.7%
8. Fed Funds Purchased 585,156 350,071 67.2% 585,205 -0.0% 573,814 357,700 60.4%
9. Other Short-Term Funds 169,059 200,838 -15.8% 160,294 5.5% 160,580 208,344 -22.9%
10.FHLB Debt 0 0 n/m 0 n/m 0 32,204 n/m
11.Long-Term Debt 40,340 21,429 88.2% 40,376 -0.1% 35,866 21,798 64.5%
12.Shareholders' Equity 424,277 332,219 27.7% 430,796 -1.5% 409,566 323,723 26.5%
13.Demand Deposits / Total Deposits 36.2% 36.1% 35.5% 35.7% 35.8%
14.Transaction & Savings 81.0% 83.0% 80.7% 81.1% 82.4%
Deposits / Total Deposits
Page 11
WESTAMERICA BANCORPORATION Public Information October 18, 2005
5. Interest Yields Earned & Rates Paid.
(dollars in thousands)
Q3'05
------------------------------- Q2'05 --------------------------------- 2004
Average Income/ Yield/ Yield/ Average Income/ Yield/ Yield/
Volume Expense Rate Rate Volume Expense Rate Rate
---------------------------------------------------------------------------------------
1. Interest & Fees Income Earned
2. Total Earning Assets (FTE) $4,695,342 $68,021 5.77% 5.75%$4,260,701 $59,570 5.58% 5.64%
3. Total Loans (FTE) 2,643,270 41,395 6.21% 6.21% 2,247,664 34,302 6.07% 6.14%
4. Commercial Loans (FTE) 711,330 12,479 6.92% 6.88% 624,925 9,754 6.16% 6.09%
5. Commercial Real Estate Loans 937,380 16,818 7.12% 7.09% 752,395 13,955 7.38% 7.45%
6. Consumer Loans 994,560 12,098 4.93% 4.90% 870,344 10,593 4.95% 5.07%
7. Total Investment Securities 2,052,072 26,626 5.19% 5.16% 2,013,037 25,268 5.02% 5.07%
(FTE)
8. Interest Expense Paid
9. Total Earning Assets 4,695,342 12,028 1.01% 0.91% 4,260,701 5,042 0.47% 0.50%
10. Total Interest-Bearing 3,266,697 12,028 1.45% 1.30% 2,882,817 5,042 0.69% 0.73%
Liabilities
11. Total Interest-Bearing 2,472,142 5,967 0.96% 0.87% 2,310,479 3,253 0.56% 0.57%
Deposits
12. Interest-Bearing 632,680 401 0.25% 0.22% 581,264 163 0.11% 0.11%
Transaction
13. Savings 1,104,237 956 0.34% 0.34% 1,115,052 955 0.34% 0.36%
14. Other Time < $100K 279,932 1,463 2.07% 2.01% 266,584 999 1.49% 1.49%
15. Other Time >$100K 455,293 3,147 2.74% 2.33% 347,579 1,136 1.30% 1.27%
16. Total Short-Term Borrowings 754,215 5,421 2.81% 2.47% 550,909 1,473 1.05% 1.06%
17. Fed Funds Purchased 585,156 5,164 3.45% 2.96% 350,071 1,282 1.43% 1.38%
18. Other Short-Term Funds 169,059 257 0.60% 0.69% 200,838 191 0.38% 0.45%
19. FHLB Debt 0 0 0.00% 0.00% 0 0 0.00% 3.65%
20. Long-Term Debt 40,340 640 6.35% 6.31% 21,429 316 5.90% 5.91%
21.Net Interest Income $55,993 4.76% 4.84% $54,528 5.11% 5.14%
and Margin (FTE)
6. Noninterest Income.
(dollars in thousands)
Q3'05 / Q3'05 / 9/30'05YTD /
Q3'05 Q3'04 Q3'04 Q2'05 Q2'05 9/30'05YTD 9/30'04YTD 9/30'04YTD
--------------------------------------------------------------------------------------
1. Service Charges on Deposit $7,436 $7,465 -0.4% $7,542 -1.4% $21,905 $21,693 1.0%
Accounts
2. Merchant Credit Card Income 2,631 899 192.7% 2,417 8.9% 6,346 2,633 141.0%
3. ATM Fees & Interchange 725 664 9.2% 709 2.3% 2,058 1,889 8.9%
4. Debit Card Fees 834 654 27.5% 811 2.8% 2,343 1,841 27.3%
5. Financial Services Fees 388 409 -5.1% 339 14.5% 1,007 956 5.3%
6. Mortgage Banking Income 62 41 51.2% 67 -7.5% 230 304 -24.3%
7. Trust Fees 323 265 21.9% 309 4.5% 905 773 17.1%
8. Other Income 2,672 1,405 90.2% 1,954 36.7% 6,523 4,260 53.1%
----------------------- ------------ -----------------------
9. Sub-total 15,071 11,802 27.7% 14,148 6.5% 41,317 34,349 20.3%
10 Gains on Sales of Real Property 2,369 0 n/m 1,331 78.0% 3,700 0 n/m
11 Investment Securities 0 (14) n/m 0 n/m (4,903) 2,169 n/m
Gains (Losses)
12 Loss on Extinguishment 0 0 n/m 0 n/m 0 (2,204) n/m
of Debt ----------------------- ------------ -----------------------
13 Total Noninterest Income $17,440 $11,788 47.9% $15,479 12.7% $40,114 $34,314 16.9%
======================= ============ =======================
14 Operating Ratios:
15 Total Revenue (FTE) $73,433 $66,316 10.7% $72,502 1.3% $208,150 $197,719 5.3%
16 Noninterest Income / 23.7% 17.8% 21.3% 19.3% 17.4%
Revenue (FTE)
17 Service Charges / 0.76% 0.82% 0.77% 0.76% 0.82%
Deposits (annualized)
18 Total Revenue Per Share $9.01 $8.32 8.2% $8.88 1.4% $8.59 $8.29 3.6%
(annualized)
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WESTAMERICA BANCORPORATION Public Information October 18, 2005
7. Noninterest Expense.
(dollars in thousands)
Q3'05 / Q3'05 / 9/30'05YTD /
Q3'05 Q3'04 Q3'04 Q2'05 Q2'05 9/30'05YTD 9/30'04YTD 9/30'04YTD
---------------------------------------------------------------------------------------
1. Salaries & Benefits $13,621 $13,054 4.3% $13,624 -0.0% $40,405 $39,912 1.2%
2. Occupancy 3,201 3,022 5.9% 3,230 -0.9% 9,383 8,913 5.3%
3. Equipment 1,347 1,101 22.3% 1,313 2.6% 3,891 3,536 10.0%
4. Data Processing 1,544 1,525 1.2% 1,539 0.3% 4,632 4,563 1.5%
5. Courier 989 923 7.2% 964 2.6% 2,879 2,695 6.8%
6. Postage 377 288 30.9% 376 0.3% 1,175 1,046 12.3%
7. Telephone 537 529 1.5% 553 -2.9% 1,618 1,636 -1.1%
8. Professional Fees 497 411 20.9% 604 -17.7% 1,821 1,332 36.7%
9. Stationery & Supplies 298 333 -10.5% 304 -2.0% 950 930 2.2%
10.Loan Expense 309 289 6.9% 232 33.2% 745 839 -11.2%
11.Merchant Card Expense 272 292 -6.8% 263 3.4% 792 833 -4.9%
12.Operational Losses 222 265 -16.2% 200 11.0% 612 747 -18.1%
13.Amortization of Identifiable 1,064 136 n/m 1,092 n/m 2,561 408 n/m
Intangibles
14.Other Operating 2,513 2,323 8.2% 2,463 2.0% 7,225 7,083 2.0%
----------------------- ------------ -----------------------
15.Total Noninterest Expense $26,791 $24,491 9.4% $26,757 0.1% $78,689 $74,473 5.7%
======================= ============ =======================
16.Full Time Equivalent Staff 956 980 -2.4% 974 -1.8% 964 992 -2.8%
17.Average Assets / $5,378 $4,651 15.6% $5,308 1.3% $5,248 $4,534 15.8%
Full Time Equivalent Staff
18.Operating Ratios:
19. FTE Revenue / $305 $269 13.2% $299 2.1% $289 $266 8.4%
Full Time Equivalent Staff
(annualized)
20. Noninterest Expense / 2.26% 2.29% 2.27% 2.27% 2.37%
Earning Assets
(annualized)
21. Noninterest Expense / Revenue 36.5% 36.9% 36.9% 37.8% 37.7%
Page 13
WESTAMERICA BANCORPORATION Public Information October 18, 2005
8. Loan Loss Provision.
(dollars in thousands)
Q3'05 / Q3'05 / 9/30'05YTD /
Q3'05 Q3'04 Q3'04 Q2'05 Q2'05 9/30'05YTD 9/30'04YTD 9/30'04YTD
---------------------------------------------------------------------------------------
1. Loan Loss Provision $150 $600 -75.0% $300 -50.0% $750 $2,100 -64.3%
2. Gross Loan Losses 684 1,115 -38.7% 754 -9.3% 2,037 3,997 -49.0%
3. Net Loan (Recoveries) Losses 338 161 109.9% 297 n 441 1,621 -72.8%
4. Recoveries/Gross Losses 51% 86% 61% 78% 59%
5. Average Total Loans $2,643,270 $2,247,664 17.6%$2,670,662 -1.0%$2,562,880 $2,266,184 13.1%
6. Net Loan (Recoveries) 0.05% 0.03% 0.04% 0.02% 0.10%
Losses / Loans (annualized)
7. Loan Loss Provision / 0.02% 0.11% 0.05% 0.04% 0.12%
Loans (annualized)
8. Loan Loss Provision / 44.4% 372.7% 101.0% 170.1% 129.5%
Net Loan Losses (Recoveries)
9. Credit Quality.
(dollars in thousands)
9/30/05 / 9/30/05 /
9/30/05 9/30/04 9/30/04 6/30/05 6/30/05 3/31/05 12/31/04 6/30/04
---------------------------------------------------------------------------------------
1. Nonperforming Nonaccrual Loans $2,292 $3,996 -42.6% $1,560 46.9% $1,766 $2,970 $4,695
2. Performing Nonaccrual Loans 4,514 2,777 62.5% 6,072 -25.7% 6,550 4,071 2,233
----------------------- ------------ ----------------------------------
3. Total Nonaccrual Loans 6,806 6,773 0.5% 7,632 -10.8% 8,316 7,041 6,928
4. Accruing Loans 90+ 1,334 182 n/m 84 n/m 107 10 202
Days Past Due ----------------------- ------------ ----------------------------------
5. Total Nonperforming Loans 8,140 6,955 17.0% 7,716 5.5% 8,423 7,051 7,130
6. Repossessed Collateral 0 0 n/m 40 n/m 0 0 0
7. Total Nonperforming Loans & ----------------------- ------------ ----------------------------------
8. Repossessed Collateral $8,140 $6,955 17.0% $7,756 5.0% $8,423 $7,051 $7,130
======================= ============ ==================================
9. Classified Loans $36,656 $20,868 75.7% $37,615 -2.5% $35,258 $19,225 $21,495
======================= ============ ==================================
10.Allowance for Loan Losses $59,674 $54,388 9.7% $59,862 -0.3% $59,859 $54,152 $53,949
11.Total Loans Outstanding 2,675,907 2,301,991 16.2% 2,687,566 -0.4% 2,708,052 2,300,230 2,319,255
12.Total Assets 5,153,091 4,636,071 11.2% 5,191,093 -0.7% 5,192,111 4,737,268 4,611,811
13.Allowance for Loan Losses / 2.23% 2.36% 2.23% 2.21% 2.35% 2.33%
Total Loans
14.Nonperforming Loans / 0.30% 0.30% 0.29% 0.31% 0.31% 0.31%
Total Loans
15.Nonperforming Loans
& Repossessed
16. Assets / Total Assets 0.16% 0.15% 0.15% 0.16% 0.15% 0.15%
17.Allowance/Nonperforming Loans 733% 782% 776% 711% 768% 757%
18.Allowance for Loan Losses / 163% 261% 159% 170% 282% 251%
Classified Loans
19.Classified Loans /
20. (Equity + Allowance 7.5% 5.1% 7.5% 7.1% 4.7% 5.6%
for Loan Losses)
Page 14
WESTAMERICA BANCORPORATION Public Information October 18, 2005
10.Capital.
(dollars in thousands, except per-share amounts)
9/30/05 / 9/30/05 /
9/30/05 9/30/04 9/30/04 6/30/05 6/30/05 3/31/05 12/31/04 6/30/04
---------------------------------------------------------------------------------------
1. Shareholders' Equity $432,024 $351,924 22.8% $439,617 -1.7% $437,575 $358,609 $329,795
2. Tier I Regulatory Capital 297,896 321,700 -7.4% 299,003 -0.4% 297,791 327,070 309,037
3. Total Regulatory Capital 341,147 361,586 -5.7% 342,967 -0.5% 342,146 367,333 350,834
4. Total Assets 5,153,091 4,636,071 11.2% 5,191,093 -0.7% 5,192,111 4,737,268 4,611,811
5. Risk-Adjusted Assets 3,275,611 2,942,140 11.3% 3,307,055 -1.0% 3,329,316 2,948,797 2,979,145
6. Shareholders' Equity / 8.38% 7.59% 8.47% 8.43% 7.57% 7.15%
Total Assets
7. Shareholders' Equity / 16.14% 15.29% 16.36% 16.16% 15.59% 14.22%
Total Loans
8. Tier I Capital /Total Assets 5.78% 6.94% 5.76% 5.74% 6.90% 6.70%
9. Tier I Capital / 9.09% 10.93% 9.04% 8.94% 11.09% 10.37%
Risk-Adjusted Assets
10.Total Capital / 10.41% 12.29% 10.37% 10.28% 12.46% 11.78%
Risk-Adjusted Assets
11.Shares Outstanding 32,198 31,716 1.5% 32,593 -1.2% 32,939 31,640 31,784
12.Book Value Per Share ($) $13.42 $11.10 20.9% $13.49 -0.5% $13.28 $11.33 $10.38
13.Market Value Per Share ($) 51.65 54.89 -5.9% 52.81 -2.2% 51.77 58.31 52.45
14.Share Repurchase Programs
(shares in thousands)
Q3'0 Q3'05 9/30'05YTD /
Q3' Q3' Q3' Q2' Q2' 9/30'05YTD 9/30'04YTD 9/30'04YTD
---------------------------------------------------------------------------------------
15.Total Shares Repurchased / 437 92 375.0% 490 -10.8% 1,299 824 57.6%
Canceled
16. Average Repurchase $53.60 $51.95 3.2% $51.31 4.5% $53.04 $49.97 6.1%
Price
17.Net Shares (Issued) 395 68 n/m 346 n/m (558) 571 n/m
Repurchased
Page 15
WESTAMERICA BANCORPORATION Public Information October 18, 2005
11.Period-End Balance Sheets.
(dollars in thousands)
9/30/05 / 9/30/05 /
9/30/05 9/30/04 9/30/04 6/30/05 6/30/05 3/31/05 12/31/04 6/30/04
---------------------------------------------------------------------------------------
1. Assets:
2. Cash and Money Market Assets $193,760 $165,811 16.9% $195,289 -0.8% $168,881 $126,687 $186,056
3. Investment Securities 660,630 967,266 -31.7% 691,609 -4.5% 719,097 931,710 1,024,798
Available For Sale
4. Investment Securities 1,358,266 1,080,392 25.7% 1,349,555 0.6% 1,331,870 1,260,832 960,522
Held to Maturity
5. Loans, gross 2,675,907 2,301,991 16.2% 2,687,566 -0.4% 2,708,052 2,300,230 2,319,255
6. Allowance For Loan Losses (59,674) (54,388) 9.7% (59,862) -0.3% (59,859) (54,152) (53,949)
----------------------- ------------ ----------------------------------
7. Loans, net 2,616,233 2,247,603 16.4% 2,627,704 -0.4% 2,648,193 2,246,078 2,265,306
8. ----------------------- ------------ ----------------------------------
9. Premises and Equipment 33,640 35,267 -4.6% 34,864 -3.5% 35,586 35,223 35,343
10. Identifiable Intangible 27,233 3,030 n/m 28,297 n/m 29,389 2,894 3,166
Assets
11. Goodwill 124,122 18,996 n/m 124,122 n/m 127,503 18,996 18,996
12. Interest Receivable 139,207 117,706 18.3% 139,653 -0.3% 131,592 114,848 117,624
and Other Assets ----------------------- ------------ ----------------------------------
13.Total Assets $5,153,091 $4,636,071 11.2%$5,191,093 -0.7%$5,192,111 $4,737,268 $4,611,811
======================= ============ ==================================
14.Liabilities and Shareholders' Equity:
15. Deposits:
16. Noninterest Bearing $1,412,470 $1,323,446 6.7%$1,377,680 2.5%$1,371,819 $1,273,825 $1,272,278
17. Interest-Bearing Transaction 635,019 561,206 13.2% 614,246 3.4% 626,693 591,593 569,575
18. Savings 1,094,130 1,119,356 -2.3% 1,114,631 -1.8% 1,166,858 1,091,981 1,072,701
19. Time 732,316 641,798 14.1% 726,283 0.8% 773,473 626,220 590,875
----------------------- ------------ ----------------------------------
20. Total Deposits 3,873,935 3,645,806 6.3% 3,832,840 1.1% 3,938,843 3,583,619 3,505,429
21. Short-Term Borrowed Funds 764,143 578,285 32.1% 828,280 -7.7% 710,530 735,423 712,553
22. FHLB Debt 0 0 n/m 0 n/m 0 0 0
23.
24. Debt Financing and 40,318 21,429 88.1% 40,354 -0.1% 40,391 21,429 21,429
Notes Payable
25. Liability For Interest, 42,671 38,627 10.5% 50,002 -14.7% 64,772 38,188 42,605
Taxes and Other ----------------------- ------------ ----------------------------------
26.Total Liabilities 4,721,067 4,284,147 10.2% 4,751,476 -0.6% 4,754,536 4,378,659 4,282,016
----------------------- ------------ ----------------------------------
27.Shareholders' Equity:
28. Paid-In Capital $316,597 $224,490 41.0% $319,103 -0.8% $319,438 $229,975 $224,042
29. Unrealized Gain (Loss)
on Investment Securities
30. Available For Sale 2,762 8,186 n/m 8,185 -66.3% 3,511 9,638 (1,416)
31. Retained Earnings 112,665 119,248 -5.5% 112,329 0.3% 114,626 118,996 107,169
----------------------- ------------ ----------------------------------
32.Total Shareholders' Equity 432,024 351,924 22.8% 439,617 -1.7% 437,575 358,609 329,795
----------------------- ------------ ----------------------------------
33.Total Liabilities and $5,153,091 $4,636,071 11.2%$5,191,093 -0.7%$5,192,111 $4,737,268 $4,611,811
Shareholders' Equity ======================= ============ ==================================
Page 16
WESTAMERICA BANCORPORATION Public Information October 18, 2005
12.Income Statements.
(dollars in thousands, except per-share amounts)
Q3'05 / Q3'05 / 9/30'05YTD /
Q3'05 Q3'04 Q3'04 Q2'05 Q2'05 9/30'05YTD 9/30'04YTD 9/30'04YTD
---------------------------------------------------------------------------------------
1. Interest and Fee Income:
2. Loans $40,008 $32,911 21.6% $39,941 0.2% $114,882 $100,337 14.5%
3. Money Market Assets 1 0 n/m 1 n/m 2 1 n/m
and Funds Sold
4. Investment Securities 7,705 10,721 -28.1% 8,073 -4.6% 25,248 37,649 -32.9%
Available For Sale
5. Investment Securities 14,090 10,272 37.2% 13,441 4.8% 40,431 23,600 71.3%
Held to Maturity ----------------------- ------------ -----------------------
6. Total Interest Income 61,804 53,904 14.7% 61,456 0.6% 180,563 161,587 11.7%
----------------------- ------------ -----------------------
7. Interest Expense:
8. Transaction Deposits 401 163 146.0% 340 17.9% 1,004 399 151.6%
9. Savings Deposits 956 955 0.1% 970 -1.4% 2,790 3,057 -8.7%
10. Time Deposits 4,610 2,135 115.9% 4,144 11.2% 11,984 5,943 101.6%
11. Short-Term Borrowed Funds 5,421 1,473 268.0% 4,655 16.5% 13,645 3,890 250.8%
12. Federal Home Loan Bank 0 0 n/m 0 n/m 0 897 -100.0%
Advances
13. Debt Financing and 640 316 102.5% 637 0.5% 1,707 968 76.3%
Notes Payable ----------------------- ------------ -----------------------
14.Total Interest Expense 12,028 5,042 138.6% 10,746 11.9% 31,130 15,154 105.4%
----------------------- ------------ -----------------------
15.Net Interest Income 49,776 48,862 1.9% 50,710 -1.8% 149,433 146,433 2.0%
----------------------- ------------ -----------------------
16.Provision for Loan Losses 150 600 -75.0% 300 -50.0% 750 2,100 -64.3%
----------------------- ------------ -----------------------
17.Noninterest Income:
18. Service Charges on Deposit 7,436 7,465 -0.4% 7,542 -1.4% 21,905 21,693 1.0%
Accounts
19. Merchant Credit Card 2,631 899 192.7% 2,417 8.9% 6,346 2,633 141.0%
20. Financial Services Commission 388 409 -5.1% 339 14.5% 1,007 956 5.3%
21. Mortgage Banking 62 41 51.2% 67 -7.5% 230 304 -24.3%
22. Trust Fees 323 265 21.9% 309 4.5% 905 773 17.1%
23. Gains on Sales of Real Property 2,369 0 n/m 1,331 78.0% 3,700 0 n/m
24. Securities Gains (Losses) 0 (14) n/m 0 n/m (4,903) 2,169 n/m
25. Loss on Extinguishment of Debt 0 0 n/m 0 n/m 0 (2,204) n/m
26. Other 4,231 2,723 55.4% 3,474 21.8% 10,924 7,990 36.7%
----------------------- ------------ -----------------------
27.Total Noninterest Income 17,440 11,788 47.9% 15,479 12.7% 40,114 34,314 16.9%
----------------------- ------------ -----------------------
28.Noninterest Expense:
29. Salaries and Related Benefits 13,621 13,054 4.3% 13,624 -0.0% 40,405 39,912 1.2%
30. Occupancy 3,201 3,022 5.9% 3,230 -0.9% 9,383 8,913 5.3%
31. Equipment 1,347 1,101 22.3% 1,313 2.6% 3,891 3,536 10.0%
32. Data Processing 1,544 1,525 1.2% 1,539 0.3% 4,632 4,563 1.5%
33. Professional Fees 497 411 20.9% 604 -17.7% 1,821 1,332 36.7%
34. Other 6,581 5,378 22.4% 6,447 2.1% 18,557 16,217 14.4%
----------------------- ------------ -----------------------
35.Total Noninterest Expense 26,791 24,491 9.4% 26,757 0.1% 78,689 74,473 5.7%
----------------------- ------------ -----------------------
36.Income Before Income Taxes 40,275 35,559 13.3% 39,132 2.9% 110,108 104,174 5.7%
37.Provision for income taxes 11,081 10,464 5.9% 11,218 -1.2% 30,266 30,121 0.5%
----------------------- ------------ -----------------------
38.Net Income $29,194 $25,095 16.3% $27,914 4.6% $79,842 $74,053 7.8%
======================= ============ =======================
39.Average Shares Outstanding 32,352 31,713 2.0% 32,759 -1.2% 32,379 31,841 1.7%
40.Diluted Average Shares 32,972 32,352 1.9% 33,364 -1.2% 33,007 32,452 1.7%
Outstanding
41.Per Share Data:
42. Basic Earnings $0.90 $0.79 14.0% $0.85 5.9% $2.47 $2.33 6.0%
43. Diluted Earnings 0.89 0.78 14.1% 0.84 5.8% 2.42 2.28 6.0%
44. Dividends Paid 0.30 0.28 7.1% 0.30 0.0% 0.90 0.82 9.8%