Page 1
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 the Report (Date of earliest event reported):
January 20, 2004
Commission File Number: 001-9383
WESTAMERICA BANCORPORATION
--------------------------
(Exact name of registrant as specified in its chapter)
CALIFORNIA
----------
(State of incorporation)
94-2156203
----------
(I.R.S. Employer Identification Number)
1108 Fifth Avenue, San Rafael, California 94901
-----------------------------------------------
(Address of principal executive offices and zip code)
(707) 863-8000
--------------
(Registrant's area code and telephone number)
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Item 7: Exhibits
----------------
99.1 Press release dated January 20, 2004
Item 12: Results of Operations and Financial Condition
-------------------------------------------------------
On January 20, 2004 Westamerica Bancorporation announced their quarterly
earnings for the fourth quarter of 2003. 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/ DENNIS R. HANSEN
------------------------------------
Dennis R. Hansen, SVP and Controller
January 20, 2004
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INDEX TO EXHIBITS
-----------------
Sequentially
Exhibit No. Description Number Page
----------- ------------------------- -------------
(99.1) Press release dated 5-15
January 20, 2004
Page 5
FOR IMMEDIATE RELEASE
January 20, 2004
WESTAMERICA BANCORPORATION REPORTS RECORD
QUARTERLY AND ANNUAL EARNINGS
San Rafael, CA: Westamerica Bancorporation (NASDAQ: WABC), parent company
of Westamerica Bank, today reported record net income for the fourth
quarter of 2003 of $24.3 million, up from $23.3 million for the fourth
quarter of 2002. Fourth quarter 2003 diluted earnings per share were
$0.73, up from $0.68 for the fourth quarter of 2002. The return on average
common equity (ROE) for the fourth quarter of 2003 was 29.4 percent, and
the return on assets (ROA) was 2.17 percent, compared to 29.2 percent and
2.23 percent, respectively, for the fourth quarter of 2002.
Net income for the year ended December 31, 2003 was a record $95.1
million, up 9 percent from $87.1 million for 2002. Diluted earnings per
share increased 12 percent to $2.85 for the year 2003, compared to $2.55
for the year 2002. The ROE for 2003 was 29.4 percent, while the ROA was
2.19 percent, compared to 28.7 percent and 2.17 percent, respectively, for
2002.
"Fourth quarter and full year 2003 profitability benefited from our focus
on gathering low-cost deposits, expense control, and continuing superior
credit quality," said Chairman, President and CEO David Payne. "During
2003, our low-cost deposits grew 7 percent, reducing our average cost of
funds to 0.55 percent in the fourth quarter. Our noninterest expense
declined 1.6 percent to $101.7 million for 2003 compared to $103.3 million
for 2002. Net loan losses for 2003 were only 0.15 percent of average
loans," continued Payne.
Net interest income on a fully taxable equivalent basis was $54.8 million
in the fourth quarter of 2003 compared to $54.3 million in the prior
quarter and $55.0 million in the same quarter a year ago. The fourth
quarter 2003 net interest margin on a taxable equivalent basis was 5.26
percent, compared to 5.31 percent in the previous quarter and 5.71 percent
in the fourth quarter of 2002. For the full year, net interest income and
the net interest margin on a taxable equivalent basis were $217.4 million
and 5.39 percent, compared to $215.7 million and 5.76 percent,
respectively, for 2002.
Nonperforming loans and repossessed loan collateral were $7.6 million at
December 31, 2003 down $1.0 million from the previous quarter-end and down
$2.7 million from December 31, 2002. Nonperforming loans and OREO
represented 0.17 percent of total assets at December 31, 2003. The
provision for loan losses was $750,000 for the fourth quarter of 2003,
unchanged from the previous quarter and down from $900,000 in the year ago
quarter. Net charge-offs totaled $1.0 million or 0.18 percent of average
loans (annualized) in the fourth quarter of 2003. For the year, net
charge-offs were $3.6 million, or 0.15 percent of average loans, compared
to the provision for loan losses of $3.3 million.
Page 6
Noninterest income in the fourth quarter of 2003 totaled $10.5 million,
compared to $11.0 million and $10.2 million, respectively, reported in the
previous and year ago quarters. The decrease from the prior quarter is
primarily attributable to lower service charges on deposit accounts,
merchant credit card income, mortgage banking income, and ATM fees. The
increase from the year ago quarter is primarily attributable to higher
service charges on deposit accounts and other income partially offset by
lower mortgage banking income.
Noninterest expense for the fourth quarter of 2003 totaled $25.2 million
compared to $25.5 million in the prior quarter and $25.8 million in the
year ago quarter. The 1.5 percent decrease from the prior quarter is
primarily attributable to lower salaries and benefits, and merchant card
expense offset in part by higher operational losses. The 2.3 percent
decrease from the year ago quarter is primarily attributable to lower
furniture expense, salaries and benefits, merchant card expense, and
amortization of core deposit intangibles offset in part by higher
telephone expense. For the full year, noninterest expense was $101.7
million, down 1.6 percent from $103.3 million for 2002. The decrease is
primarily attributable to reduced salaries and benefits, equipment
expense, merchant card expense, amortization of core deposit intangibles,
and stationery and supplies offset in part by higher occupancy, and
telephone expenses. The efficiency ratio (expenses divided by revenues)
for the fourth quarter of 2003 was 38.6 percent compared with 39.1 percent
in the previous quarter and 39.5 percent in the year ago quarter. For the
year 2003, the efficiency ratio was 39.1 percent compared to 41.0 percent
for 2002.
Shareholders' equity was $340 million at December 31, 2003, compared to
$341 million at December 31, 2002. The equity-to-asset ratio was 7.4
percent at December 31, 2003, compared to 8.1 percent at December 31,
2002. Share repurchases of Company common stock, net of share issuances,
approximated 436 thousand shares in the fourth quarter 2003. At December
31, 2003, there were approximately 1.5 million shares remaining to
purchase under the existing share repurchase program.
At December 31, 2003, the Company had total assets and total loans
outstanding of $4.6 billion and $2.3 billion, respectively.
Westamerica Bancorporation, through its wholly owned subsidiary
Westamerica Bank, operates 88 branches throughout 22 Northern and Central
California counties.
Westamerica Bancorporation Web Address: www.westamerica.com
For additional information contact:
Westamerica Bancorporation
Robert A. Thorson - SVP & Treasurer
707-863-6840
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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 September 30, 2003 and Form 10-K for the year
ended December 31, 2002, 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 2003 and the Gramm-Leach-Bliley Act of
1999, the combination of the former Kerman State Bank 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 January 20, 2004
---------------------------
FINANCIAL HIGHLIGHTS
---------------------
December 31, 2003
1. Net Income Summary.
(dollars in thousands except per-share data)
Q4'03 / Q4'03 / 12/31'03YTD/
Q4'03 Q4'02 Q4'02 Q3'03 Q3'03 12/31'03YTD12/31'02YTD 12/31'02YTD
----------------------------------------------------------------------------------------
1. Net Interest Income (FTE) $54,758 $54,985 -0.4% $54,264 0.9% $217,407 $215,708 0.8%
2. Loan Loss Provision 750 900 -16.7% 750 0.0% 3,300 3,600 -8.3%
3. Noninterest Income:
4. Investment Securities Gains 0 0 n/m 2,150 n/m 2,443 (4,260) n/m
(Impairment)
5. FHLB Advance Prepayment 0 0 n/m (2,166) n/m (2,166) 0 n/m
Fees
6. Other 10,493 10,214 2.7% 11,029 -4.9% 42,639 40,811 4.5%
----------------------- ------------ -----------------------
7. Total Noninterest Income 10,493 10,214 2.7% 11,013 -4.7% 42,916 36,551 17.4%
----------------------- ------------ -----------------------
8. Noninterest Expense 25,158 25,756 -2.3% 25,534 -1.5% 101,703 103,323 -1.6%
9. Income Tax Provision (FTE) 15,035 15,287 -1.6% 14,920 0.8% 60,257 58,198 3.5%
----------------------- ------------ -----------------------
10.Net Income $24,308 $23,256 4.5% $24,073 1.0% $95,063 $87,138 9.1%
======================= ============ =======================
11.Average Shares Outstanding 32,523 33,495 -2.9% 32,770 -0.8% 32,849 33,686 -2.5%
12.Diluted Average Shares 33,154 33,978 -2.4% 33,273 -0.4% 33,369 34,225 -2.5%
Outstanding
13.Operating Ratios:
14. Basic Earnings Per Share $0.75 $0.69 7.6% $0.73 1.7% $2.89 $2.59 11.9%
15. Diluted Earnings Per Share 0.73 0.68 7.1% 0.72 1.3% 2.85 2.55 11.9%
16. Return On Assets 2.17% 2.23% 2.18% 2.19% 2.17%
17. Return On Equity 29.4% 29.2% 29.3% 29.4% 28.7%
18. Net Interest Margin (FTE) 5.26% 5.71% 5.31% 5.39% 5.76%
19. Efficiency Ratio (FTE) 38.6% 39.5% 39.1% 39.1% 41.0%
20.Dividends Paid Per Share $0.26 $0.24 8.3% $0.26 0.0% $1.00 $0.90 11.1%
21.Dividend Payout Ratio 35% 35% 36% 35% 35%
2. Net Interest Income.
(dollars in thousands)
Q4'03 / Q4'03 / 12/31'03YTD/
Q4'03 Q4'02 Q4'02 Q3'03 Q3'03 12/31'03YTD12/31'02YTD 12/31'02YTD
----------------------------------------------------------------------------------------
1. Interest and Fee Income (FTE) $60,521 $63,519 -4.7% $60,552 -0.1% $244,604 $254,890 -4.0%
2. Interest Expense 5,763 8,534 -32.5% 6,288 -8.3% 27,197 39,182 -30.6%
----------------------- ------------ -----------------------
3. Net Interest Income (FTE) $54,758 $54,985 -0.4% $54,264 0.9% $217,407 $215,708 0.8%
======================= ============ =======================
4. Average Earning Assets $4,149,994 $3,831,759 8.3%$4,072,793 1.9%$4,033,964 $3,737,764 7.9%
5. Average Interest-Bearing 2,842,273 2,642,475 7.6% 2,806,275 1.3% 2,798,180 2,608,598 7.3%
Liabilities
6. Yield on Earning Assets (FTE) 5.81% 6.60% 5.92% 6.06% 6.81%
7. Cost of Funds 0.55% 0.89% 0.61% 0.67% 1.05%
8. Net Interest Margin (FTE) 5.26% 5.71% 5.31% 5.39% 5.76%
9. Interest Expense/Interest- 0.80% 1.28% 0.89% 0.97% 1.50%
Bearing Liabilities
10.Net Interest Spread (FTE) 5.01% 5.32% 5.03% 5.09% 5.31%
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WESTAMERICA BANCORPORATION Public Information January 20, 2004
---------------------------
3. Loans & Other Earning Assets.
(average volume, dollars in thousands)
Q4'03 / Q4'03 / 12/31'03YTD/
Q4'03 Q4'02 Q4'02 Q3'03 Q3'03 12/31'03YTD12/31'02YTD 12/31'02YTD
----------------------------------------------------------------------------------------
1. Total Assets $4,451,423 $4,128,465 7.8%$4,373,156 1.8%$4,332,707 $4,022,527 7.7%
2. Total Earning Assets 4,149,994 3,831,759 8.3% 4,072,793 1.9% 4,033,964 3,737,764 7.9%
3. Total Loans 2,285,717 2,451,940 -6.8% 2,331,855 -2.0% 2,354,270 2,465,876 -4.5%
4. Commercial Loans 1,443,303 1,592,877 -9.4% 1,483,562 -2.7% 1,505,787 1,628,618 -7.5%
5. Consumer Loans 842,414 859,063 -1.9% 848,293 -0.7% 848,483 837,258 1.3%
6. Total Investment Securities 1,864,277 1,379,819 35.1% 1,740,938 7.1% 1,679,694 1,271,888 32.1%
7. Available For Sale (Market Value) 1,312,412 955,950 37.3% 1,164,363 12.7% 1,137,995 966,312 17.8%
8. Held To Maturity 551,865 423,869 30.2% 576,575 -4.3% 541,699 305,576 77.3%
9. HTM Unrealized Gain (Loss) 7,352 11,786 -37.6% 5,866 25.3% 7,352 11,786 -37.6%
at Period-End
10.Loans / Deposits 64.5% 73.9% 66.6% 68.6% 75.4%
4. Deposits & Other Interest-Bearing Liabilities.
(average volume, dollars in thousands)
Q4'03 / Q4'03 / 12/31'03YTD/
Q4'03 Q4'02 Q4'02 Q3'03 Q3'03 12/31'03YTD12/31'02YTD 12/31'02YTD
----------------------------------------------------------------------------------------
1. Total Deposits $3,542,433 $3,319,086 6.7%$3,500,911 1.2%$3,430,177 $3,271,514 4.8%
2. Noninterest Demand 1,243,860 1,134,279 9.7% 1,203,378 3.4% 1,173,853 1,075,845 9.1%
3. Interest-Bearing Transaction 569,965 549,624 3.7% 531,174 7.3% 563,022 534,190 5.4%
4. Savings 1,085,299 988,337 9.8% 1,034,480 4.9% 1,015,699 958,420 6.0%
5. Other Time >$100K 348,405 320,552 8.7% 394,282 -11.6% 370,549 365,456 1.4%
6. Other Time < $100K 294,904 326,294 -9.6% 337,597 -12.6% 307,054 337,603 -9.0%
7. Total Short-Term Borrowings 418,896 263,061 59.2% 363,394 15.3% 378,362 249,439 51.7%
8. Fed Funds Purchased 270,515 82,314 228.6% 214,333 26.2% 222,225 64,497 244.6%
9. Other Short-Term Funds 148,381 180,747 -17.9% 149,061 -0.5% 156,137 184,942 -15.6%
10.FHLB Debt 105,000 170,000 -38.2% 124,086 -15.4% 142,272 138,615 2.6%
11.Long-Term Debt 19,804 24,607 -19.5% 21,262 -6.9% 21,222 24,875 -14.7%
12.Shareholders' Equity 328,209 315,632 4.0% 326,529 0.5% 323,555 303,573 6.6%
13.Demand Deposits / Total Deposits 35.1% 34.2% 34.4% 34.2% 32.9%
14.Transaction & Savings Deposits / 81.8% 80.5% 79.1% 80.2% 78.5%
Total Deposits
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WESTAMERICA BANCORPORATION Public Information January 20, 2004
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5. Interest Yields Earned & Rates Paid.
(dollars in thousands)
Q4'03 Q3'03 2003 2002
---------------------------------- ---------------------------------
Average Income/ Yield/ Yield/ Average Income/ Yield/ Yield/
Volume Expense Rate Rate Volume Expense Rate Rate
----------------------------------------------------------------------------------------
1. Interest Income Earned to:
2. Total Earning Assets (FTE) $4,149,994 $60,521 5.81% 5.92%4,033,964 $244,604 6.06% 6.81%
3. Total Loans (FTE) 2,285,717 36,760 6.39% 6.61%2,354,270 157,943 6.71% 7.28%
4. Commercial Loans (FTE) 1,443,303 25,349 7.17% 7.40%1,505,787 108,967 7.44% 7.62%
5. Consumer Loans 842,414 11,411 5.39% 5.60% 848,483 48,976 5.77% 6.88%
6. Total Investment Securities (FTE) 1,864,277 23,761 5.10% 5.00%1,679,694 86,661 5.16% 5.89%
7. Interest Expense Paid to:
8. Total Earning Assets 4,149,994 5,763 0.55% 0.61%4,033,964 27,197 0.67% 1.05%
9. Total Interest-Bearing 2,842,273 5,763 0.80% 0.89%2,798,180 27,197 0.97% 1.50%
Liabilities
10. Total Interest-Bearing Deposits 2,298,573 3,622 0.62% 0.69%2,256,324 16,985 0.75% 1.30%
11. Interest-Bearing Transaction 569,965 129 0.09% 0.10% 563,022 727 0.13% 0.29%
12. Savings 1,085,299 1,381 0.59% 0.55%1,015,699 6,091 0.60% 1.22%
13. Other Time < $100K 294,904 1,087 1.46% 1.56% 307,054 5,147 1.68% 2.46%
14. Other Time >$100K 348,405 1,025 1.16% 1.21% 370,549 5,020 1.35% 2.30%
15. Total Short-Term Borrowings 418,896 856 0.80% 0.81% 378,362 3,415 0.90% 1.41%
16. Fed Funds Purchased 270,515 686 0.99% 1.01% 222,225 2,502 1.13% 1.62%
17. Other Short-Term Funds 148,381 170 0.45% 0.51% 156,137 913 0.58% 1.33%
18. FHLB Debt 105,000 979 3.70% 3.72% 142,272 5,318 3.74% 3.72%
19. Long-Term Debt 19,804 306 6.20% 7.24% 21,222 1,479 6.97% 7.18%
20.Net Interest Income and Margin (FTE) $54,758 5.26% 5.31% $217,407 5.39% 5.76%
6. Noninterest Income.
(dollars in thousands)
Q4'03 / Q4'03 / 12/31'03YTD/
Q4'03 Q4'02 Q4'02 Q3'03 Q3'03 12/31'03YTD12/31'02YTD 12/31'02YTD
----------------------------------------------------------------------------------------
1. Service Charges on Deposit $6,572 $6,184 6.3% $6,735 -2.4% $26,381 $24,446 7.9%
Accounts
2. Merchant Credit Card Income 864 891 -3.0% 993 -13.0% 3,619 3,730 -3.0%
3. ATM Fees & Interchange 573 576 -0.5% 644 -11.0% 2,378 2,396 -0.8%
4. Debit Card Fees 512 542 -5.5% 556 -7.9% 2,125 1,879 13.1%
5. Financial Services Fees 227 267 -15.0% 249 -8.8% 893 1,315 -32.1%
6. Mortgage Banking Income 139 278 -50.0% 185 -24.9% 851 985 -13.6%
7. Trust Fees 235 246 -4.5% 245 -4.1% 995 1,020 -2.5%
8. Other Income 1,371 1,230 11.5% 1,422 -3.6% 5,397 5,040 7.1%
----------------------- ------------ -----------------------
9. Sub-total 10,493 10,214 2.7% 11,029 -4.9% 42,639 40,811 4.5%
10.Investment Securities Gains 0 0 n/m 2,150 n/m 2,443 (4,260) n/m
(Impairment)
11.FHLB Advance Prepayment Fees 0 0 n/m (2,166) n/m (2,166) 0 n/m
----------------------- ------------ -----------------------
12.Total Noninterest Income $10,493 $10,214 2.7% $11,013 -4.7% $42,916 $36,551 17.4%
======================= ============ =======================
13.Operating Ratios:
14. Total Revenue (FTE) $65,251 $65,199 0.1% $65,277 -0.0% $260,323 $252,259 3.2%
15. Noninterest Income / 16.1% 15.7% 16.9% 16.5% 14.5%
Revenue (FTE)
16. Service Charges / Deposits 0.74% 0.74% 0.76% 0.77% 0.75%
(annualized)
17. Total Revenue Per Share $7.96 $7.72 3.1% $7.99 -0.4% $7.92 $7.49 5.8%
(annualized)
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WESTAMERICA BANCORPORATION Public Information January 20, 2004
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7. Noninterest Expense.
(dollars in thousands)
Q4'03 / Q4'03 / 12/31'03YTD/
Q4'03 Q4'02 Q4'02 Q3'03 Q3'03 12/31'03YTD12/31'02YTD 12/31'02YTD
----------------------------------------------------------------------------------------
1. Salaries & Benefits $13,183 $13,373 -1.4% $13,495 -2.3% $53,974 $55,360 -2.5%
2. Occupancy 3,037 3,068 -1.0% 3,076 -1.3% 12,152 11,971 1.5%
3. Equipment 1,290 1,534 -15.9% 1,319 -2.2% 5,364 5,873 -8.7%
4. Data Processing 1,523 1,535 -0.8% 1,520 0.2% 6,121 6,078 0.7%
5. Courier 900 929 -3.1% 941 -4.4% 3,695 3,642 1.5%
6. Postage 422 402 5.0% 381 10.8% 1,624 1,601 1.4%
7. Telephone 530 442 19.9% 519 2.1% 1,898 1,700 11.6%
8. Professional Fees 486 454 7.0% 529 -8.1% 1,886 1,770 6.6%
9. Stationery & Supplies 344 382 -9.9% 331 3.9% 1,301 1,451 -10.3%
10.Loan Expense 326 323 0.9% 339 -3.8% 1,322 1,324 -0.2%
11.Merchant Card Expense 207 352 -41.2% 317 -34.7% 1,183 1,412 -16.2%
12.Operational Losses 297 284 4.6% 237 25.3% 936 916 2.2%
13.Amortization of Core Deposit 165 301 -45.2% 165 0.0% 743 1,003 -25.9%
Intangibles
14.Other Operating 2,448 2,377 3.0% 2,365 3.5% 9,504 9,222 3.1%
----------------------- ------------ -----------------------
15.Total Noninterest Expense $25,158 $25,756 -2.3% $25,534 -1.5% $101,703 $103,323 -1.6%
======================= ============ =======================
16.Full Time Equivalent Staff 1,007 1,062 -5.2% 1,016 -0.9% 1,026 1,072 -4.3%
17.Average Assets / Full Time $4,420 $3,887 13.7% $4,304 2.7% $4,223 $3,752 12.5%
Equivalent Staff
18.Operating Ratios:
19. FTE Revenue / Full Time $257 $244 5.5% $255 0.9% $254 $235 7.8%
Equivalent Staff (annualized)
20. Noninterest Expense / Earning 2.41% 2.67% 2.49% 2.52% 2.76%
Assets (annualized)
21. Noninterest Expense / Revenues 38.6% 39.5% 39.1% 39.1% 41.0%
Page 12
WESTAMERICA BANCORPORATION Public Information January 20, 2004
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8. Loan Loss Provision.
(dollars in thousands)
Q4'03 / Q4'03 / 12/31'03YTD/
Q4'03 Q4'02 Q4'02 Q3'03 Q3'03 12/31'03YTD12/31'02YTD 12/31'02YTD
----------------------------------------------------------------------------------------
1. Loan Loss Provision $750 $900 -16.7% $750 0.0% $3,300 $3,600 -8.3%
2. Gross Loan Losses 1,542 1,593 -3.2% 1,422 8.4% 6,833 6,225 9.8%
3. Net Loan Losses 1,020 1,120 -8.9% 729 39.9% 3,617 3,509 3.1%
4. Recoveries/Gross Losses 34% 30% 49% 47% 44%
5. Average Total Loans $2,285,717 $2,451,940 -6.8%$2,331,855 -2.0%$2,354,270 $2,465,876 -4.5%
6. Net Loan Losses / Loans 0.18% 0.18% 0.12% 0.15% 0.14%
(annualized)
7. Loan Loss Provision / Loans 0.13% 0.15% 0.13% 0.14% 0.15%
(annualized)
8. Loan Loss Provision / Net 73.5% 80.4% 102.9% 91.2% 102.6%
Loan Losses
9. Credit Quality.
(dollars in thousands)
12/31/03 / 12/31/03 /
12/31/03 12/31/02 12/31/02 9/30/03 9/30/03 6/30/03 3/31/03 12/31/01
----------------------------------------------------------------------------------------
1. Nonperforming Nonaccrual Loans $5,759 $5,717 0.7% $5,484 5.0% $5,484 $6,402 $5,058
2. Performing Nonaccrual Loans 1,658 3,464 -52.1% 2,145 -22.7% 1,353 2,471 3,055
----------------------- ------------ -----------------------------------
3. Total Nonaccrual Loans 7,417 9,181 -19.2% 7,629 -2.8% 6,837 8,873 8,113
4. Accruing Loans 90+ Days 199 738 -73.0% 272 -26.8% 386 320 550
Past Due ----------------------- ------------ -----------------------------------
5. Total Nonperforming Loans 7,616 9,919 -23.2% 7,901 -3.6% 7,223 9,193 8,663
6. Repossessed Collateral 90 381 -76.4% 742 1,888 88 523
----------------------- ------------ -----------------------------------
7. Total Nonperforming Loans &
8. Repossessed Collateral $7,706 $10,300 -25.2% $8,643 -10.8% $9,111 $9,281 $9,186
======================= ============ ===================================
9. Classified Loans $23,460 $34,001 -31.0% $23,479 -0.1% $27,324 $32,505 $22,284
======================= ============ ===================================
10.Allowance for Loan Losses $53,910 $54,227 -0.6% $54,180 -0.5% $54,159 $54,154 $52,086
11.Total Loans Outstanding 2,323,330 2,494,638 -6.9% 2,364,418 -1.7% 2,406,889 2,456,161 2,484,457
12.Total Assets 4,576,385 4,224,867 8.3% 4,482,793 2.1% 4,564,692 4,386,455 3,927,967
13.Allowance for Loan Losses / 2.32% 2.17% 2.29% 2.25% 2.20% 2.10%
Total Loans
14.Nonperforming Loans / 0.33% 0.40% 0.33% 0.30% 0.37% 0.35%
Total Loans
15.Nonperforming Loans &
Repossessed Assets / 0.17% 0.24% 0.19% 0.20% 0.21% 0.23%
Total Assets
16.Allowance/Nonperforming Loans 708% 547% 686% 750% 589% 601%
17.Allowance for Loan Losses / 230% 159% 231% 198% 167% 234%
Classified Loans
18.Classified Loans / (Equity +
Allowance for Loan Losses) 6.0% 8.6% 5.8% 6.6% 8.3% 6.1%
Page 13
WESTAMERICA BANCORPORATION Public Information January 20, 2004
---------------------------
10.Capital.
(dollars in thousands, except per-share amounts)
12/31/03 / 12/31/03 /
12/31/03 12/31/02 12/31/02 9/30/03 9/30/03 6/30/03 3/31/03 12/31/01
----------------------------------------------------------------------------------------
1. Shareholders' Equity $340,371 $341,499 -0.3% $350,922 -3.0% $357,311 $336,946 $314,359
2. Tier I Regulatory Capital 304,734 300,159 1.5% 312,308 -2.4% 308,534 294,297 283,438
3. Total Regulatory Capital 357,627 339,115 5.5% 350,380 2.1% 347,219 333,545 324,230
4. Total Assets 4,576,385 4,224,867 8.3% 4,482,793 2.1% 4,564,692 4,386,455 3,927,967
5. Risk-Adjusted Assets 3,007,545 3,091,081 -2.7% 3,018,061 -0.3% 3,067,976 3,114,609 3,050,788
6. Shareholders' Equity / 7.44% 8.08% -8.0% 7.83% -5.0% 7.83% 7.68% 8.00%
Total Assets
7. Shareholders' Equity / 14.65% 13.69% 7.0% 14.84% -1.3% 14.85% 13.72% 12.65%
Total Loans
8. Tier I Capita l /Total Assets 6.66% 7.10% -6.3% 6.97% -4.4% 6.76% 6.71% 7.22%
9. Tier I Capital / Risk-Adjusted 10.13% 9.71% 4.3% 10.35% -2.1% 10.06% 9.45% 9.29%
Assets
10.Total Capital / Risk-Adjusted 11.89% 10.97% 8.4% 11.61% 2.4% 11.32% 10.71% 10.63%
Assets
11.Shares Outstanding 32,287 33,411 -3.4% 32,723 -1.3% 32,937 32,907 34,220
12.Book Value Per Share ($) $10.54 $10.22 3.1% $10.72 -1.7% $10.85 $10.24 $9.19
13.Market Value Per Share ($) 49.78 40.18 23.9% 44.48 11.9% 43.08 39.49 39.57
14.Share Repurchase Programs
(shares in thousands)
Q4'03 / Q4'03 / 12/31'03YTD/
Q4'03 Q4'02 Q4'02 Q3'03 Q3'03 12/31'03YTD12/31'02YTD 12/31'02YTD
----------------------------------------------------------------------------------------
15.Total Shares Repurchased / 530 248 113.7% 354 49.7% 1,570 1,550 1.3%
Canceled
16. Average Repurchase Price $50.80 $40.92 24.1% $44.43 14.3% $44.97 $41.36 8.7%
17.Net Shares Repurchased 436 191 128.3% 214 103.7% 1,124 809 38.9%
(Issued)
Page 14
WESTAMERICA BANCORPORATION Public Information January 20, 2004
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11.Period-End Balance Sheets.
(dollars in thousands)
12/31/03 / 12/31/03 /
12/31/03 12/31/02 12/31/02 9/30/03 9/30/03 6/30/03 3/31/03 12/31/01
----------------------------------------------------------------------------------------
1. Assets:
2. Cash and Money Market Assets $190,162 $223,210 -14.8% $189,902 0.1% $202,193 $186,914 $179,716
3. Investment Securities 1,413,911 947,848 49.2% 1,245,311 13.5% 1,251,341 1,048,386 948,970
Available For Sale
4. Investment Securities Held 535,377 438,985 22.0% 569,996 -6.1% 588,231 520,896 209,169
to Maturity
5. Loans, gross 2,323,330 2,494,638 -6.9% 2,364,418 -1.7% 2,406,889 2,456,161 2,484,457
6. Allowance For Loan Losses (53,910) (54,227) -0.6% (54,180) -0.5% (54,159) (54,154) (52,086)
----------------------- ------------ -----------------------------------
7. Loans, net 2,269,420 2,440,411 -7.0% 2,310,238 -1.8% 2,352,730 2,402,007 2,432,371
----------------------- ------------ -----------------------------------
9. Premises and Equipment 35,748 37,396 -4.4% 35,566 0.5% 36,408 36,631 39,821
10. Core Deposit Intangible Assets 3,438 4,180 -17.8% 3,602 -4.6% 3,800 3,931 2,683
11. Goodwill 18,996 18,996 0.0% 18,996 0.0% 18,996 18,996 16,329
12. Interest Receivable and 109,333 113,841 -4.0% 109,182 0.1% 110,993 168,694 98,908
Other Assets ----------------------- ------------ -----------------------------------
13.Total Assets $4,576,385 $4,224,867 8.3%$4,482,793 2.1%$4,564,692 $4,386,455 $3,927,967
======================= ============ ===================================
14.Liabilities and Shareholders' Equity:
15. Deposits:
16. Noninterest Bearing $1,240,379 $1,146,828 8.2%$1,213,577 2.2%$1,184,847 $1,129,455 $1,048,458
17. Interest-Bearing Transaction 561,696 559,875 0.3% 559,031 0.5% 554,568 553,105 519,324
18. Savings 1,058,082 952,319 11.1% 1,039,406 1.8% 962,267 980,291 863,523
19. Time 603,834 635,043 -4.9% 724,115 -16.6% 751,949 667,237 803,330
----------------------- ------------ -----------------------------------
20. Total Deposits 3,463,991 3,294,065 5.2% 3,536,129 -2.0% 3,453,631 3,330,088 3,234,635
----------------------- ------------ -----------------------------------
21. Short-Term Borrowed Funds 590,646 349,736 68.9% 433,348 36.3% 393,287 416,219 271,911
22. FHLB Debt 105,000 170,000 -38.2% 105,000 170,000 170,000 40,000
24. Debt Financing and Notes 24,643 24,607 0.1% 9,643 155.6% 21,393 21,393 27,821
Payable
25. Liability For Interest, Taxes and 51,734 44,960 15.1% 47,751 8.3% 169,070 111,809 39,241
Other ----------------------- ------------ -----------------------------------
26.Total Liabilities 4,236,014 3,883,368 9.1% 4,131,871 2.5% 4,207,381 4,049,509 3,613,608
----------------------- ------------ -----------------------------------
27.Shareholders' Equity:
28. Paid-In Capital $220,285 $217,198 1.4% $220,527 -0.1% $219,060 $215,291 $209,074
29. Unrealized Gain on Investment
30. Securities Available For Sale 13,191 19,152 -31.1% 16,004 -17.6% 26,001 20,710 11,900
31. Retained Earnings 106,895 105,149 1.7% 114,391 -6.6% 112,250 100,945 93,385
----------------------- ------------ -----------------------------------
32.Total Shareholders' Equity 340,371 341,499 -0.3% 350,922 -3.0% 357,311 336,946 314,359
----------------------- ------------ -----------------------------------
33.Total Liabilities and $4,576,385 $4,224,867 8.3%$4,482,793 2.1%$4,564,692 $4,386,455 $3,927,967
Shareholders' Equity ======================= ============ ===================================
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WESTAMERICA BANCORPORATION Public Information January 20, 2004
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12.Income Statements.
(dollars in thousands, except per-share amounts)
Q4'03 / Q4'03 / 12/31'03YTD/
Q4'03 Q4'02 Q4'02 Q3'03 Q3'03 12/31'03YTD12/31'02YTD 12/31'02YTD
----------------------------------------------------------------------------------------
1. Interest and Fee Income:
2. Loans $35,435 $42,787 -17.2% $37,491 -5.5% $152,758 $174,810 -12.6%
3. Money Market Assets and 2 2 0.0% 2 0.0% 8 12 -33.3%
Funds Sold
4. Investment Securities 13,802 11,355 21.5% 12,215 13.0% 49,599 47,386 4.7%
Available For Sale
5. Investment Securities Held 5,572 4,908 13.5% 5,251 6.1% 21,128 15,425 37.0%
to Maturity ----------------------- ------------ -----------------------
6. Total Interest Income 54,811 59,052 -7.2% 54,959 -0.3% 223,493 237,633 -6.0%
----------------------- ------------ -----------------------
7. Interest Expense:
8. Transaction Deposits 129 318 -59.4% 145 -11.0% 727 1,533 -52.6%
9. Savings Deposits 1,381 2,089 -33.9% 1,439 -4.0% 6,091 10,409 -41.5%
10. Time Deposits 2,112 3,358 -37.1% 2,400 -12.0% 10,167 16,703 -39.1%
11. Short-Term Borrowed Funds 856 716 19.6% 747 14.6% 3,415 3,524 -3.1%
12. Federal Home Loan Bank 979 1,610 -39.2% 1,172 -16.5% 5,318 5,225 1.8%
Advances
13. Debt Financing and Notes 306 443 -30.9% 385 -20.5% 1,479 1,788 -17.3%
Payable ----------------------- ------------ -----------------------
14.Total Interest Expense 5,763 8,534 -32.5% 6,288 -8.3% 27,197 39,182 -30.6%
----------------------- ------------ -----------------------
15.Net Interest Income 49,048 50,518 -2.9% 48,671 0.8% 196,296 198,451 -1.1%
----------------------- ------------ -----------------------
16.Provision for Loan Losses 750 900 -16.7% 750 0.0% 3,300 3,600 -8.3%
----------------------- ------------ -----------------------
17.Noninterest Income:
18. Service Charges on Deposit 6,572 6,184 6.3% 6,735 -2.4% 26,381 24,446 7.9%
Accounts
19. Merchant Credit Card 864 891 -3.0% 993 -13.0% 3,619 3,730 -3.0%
20. Financial Services Commissions 227 267 -15.0% 249 -8.8% 893 1,315 -32.1%
21. Mortgage Banking 139 278 -50.0% 185 -24.9% 851 985 -13.6%
22. Trust Fees 235 246 -4.5% 245 -4.1% 995 1,020 -2.5%
23. Securities Gains (Impairment) 0 0 n/m 2,150 n/m 2,443 (4,260) -157.3%
24. FHLB Advance Prepayment 0 0 n/m (2,166) n/m (2,166) 0 n/m
Fees
25. Other 2,456 2,348 4.6% 2,622 -6.3% 9,900 9,315 6.3%
----------------------- ------------ -----------------------
26.Total Noninterest Income 10,493 10,214 2.7% 11,013 -4.7% 42,916 36,551 17.4%
----------------------- ------------ -----------------------
27.Noninterest Expense:
28. Salaries and Related Benefits 13,183 13,373 -1.4% 13,495 -2.3% 53,974 55,360 -2.5%
29. Occupancy 3,037 3,068 -1.0% 3,076 -1.3% 12,152 11,971 1.5%
30. Equipment 1,290 1,534 -15.9% 1,319 -2.2% 5,364 5,873 -8.7%
31. Data Processing 1,523 1,535 -0.8% 1,520 0.2% 6,121 6,078 0.7%
32. Professional Fees 486 454 7.0% 529 -8.1% 1,886 1,770 6.6%
33. Other 5,639 5,792 -2.6% 5,595 0.8% 22,206 22,271 -0.3%
----------------------- ------------ -----------------------
34.Total Noninterest Expense 25,158 25,756 -2.3% 25,534 -1.5% 101,703 103,323 -1.6%
----------------------- ------------ -----------------------
35.Income Before Income Taxes 33,633 34,076 -1.3% 33,400 0.7% 134,209 128,079 4.8%
36.Provision for income taxes 9,325 10,820 -13.8% 9,327 -0.0% 39,146 40,941 -4.4%
----------------------- ------------ -----------------------
37.Net Income $24,308 $23,256 4.5% $24,073 1.0% $95,063 $87,138 9.1%
======================= ============ =======================
38.Average Shares Outstanding 32,523 33,495 -2.9% 32,770 -0.8% 32,849 33,686 -2.5%
39.Diluted Average Shares 33,154 33,978 -2.4% 33,273 -0.4% 33,369 34,225 -2.5%
Outstanding
40.Per Share Data:
41. Basic Earnings $0.75 $0.69 7.6% $0.73 2.7% $2.89 $2.59 11.9%
42. Diluted Earnings 0.73 0.68 7.1% 0.72 1.4% 2.85 2.55 11.9%
43. Dividends Paid 0.26 0.24 8.3% 0.26 0.0% 1.00 0.90 11.1%