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):
April 16, 2008
--------------
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))
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Exhibits
---------
99.1 Press release dated April 15, 2008
Item 2.02: Results of Operations and Financial Condition
----------------------------------------------------------
On April 15, 2008 Westamerica Bancorporation announced their
earnings for the first quarter of 2008. 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/ JOHN "ROBERT" THORSON
-------------------------------------------------
John "Robert" Thorson
Senior Vice President and Chief Financial Officer
April 16, 2008
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INDEX TO EXHIBITS
-----------------
Sequentially
Exhibit No. Description Number Page
----------- ------------------------- -------------
(99.1) Press release dated 5-13
April 15, 2008
Page 5
FOR IMMEDIATE RELEASE
April 15, 2008
WESTAMERICA REPORTS FIRST QUARTER RESULTS
San Rafael, CA: Westamerica Bancorporation (NASDAQ: WABC), parent company of
Westamerica Bank, today reported quarterly net income for the first quarter of
2008 of $26.8 million and diluted earnings per share ("EPS") of $0.92 compared
to net income of $21.8 million and EPS of $0.74 for the previous quarter, and
net income of $23.6 million and EPS of $0.76 for the first quarter of 2007. As
described below, first quarter 2008 results include benefits from Visa's initial
public offering which increased net income by $4.7 million and EPS by $0.16.
Fourth quarter 2007 results include litigation expense of $2.3 million related
to Westamerica's proportionate share of Visa's litigation exposure and a $700
thousand income tax refund which combined to reduce net income by $590 thousand,
or EPS by $0.02. First quarter 2007 results include a gain on company-owned life
insurance which contributed $0.02 to EPS.
"During the first quarter 2008, our net interest margin increased to 4.79
percent from 4.53 percent in the fourth quarter 2007. This improvement came
primarily from a reduction in our cost of funds as short-term interest rates
declined," said Chairman, President and CEO David Payne. "Our expenses remain
well controlled, and our credit quality remains sound. Our non-performing loans
represented only 0.23 percent of total loans at quarter-end while our loan loss
reserves equal 2.13 percent of total loans. We are pleased to have delivered a
return on our shareholders' equity, excluding the Visa IPO benefits, of 22.6
percent this quarter," added Payne.
Page 6
Net interest income on a fully taxable equivalent (FTE) basis was $48.0 million
for the first quarter of 2008, compared to $46.8 million for the previous
quarter and to $46.9 million for the first quarter of 2007. The first quarter
2008 net interest margin on a fully taxable equivalent basis was 4.79 percent,
compared to 4.53 percent for the previous quarter and 4.41 percent for the first
quarter of 2007.
The provision for loan losses was $600 thousand for the first quarter of 2008,
compared to $475 thousand for the previous quarter, and $75 thousand for the
first quarter of 2007. Net loan losses totaled $872 thousand or 0.14 percent of
average loans (annualized) for the first quarter of 2008, compared to $907
thousand and 0.14 percent, respectively, for the fourth quarter of 2007.
Management follows diligent and thorough loan administration and risk management
practices. The Company assigns risk grades to loans following the same framework
used by its regulators. Loans receiving higher risk grades and heightened credit
management attention are "classified" loans. The Company's "classified" loans
increased to $33.3 million at March 31, 2008 from $24.4 million at December 31,
2007. The increase in classified loans is primarily attributable to one
construction loan relationship with $11.1 million outstanding at March 31, 2008.
The loan collateral is comprised of developed land and residential real estate
properties located north of Sacramento, California. Management is aggressively
pursuing collection of this loan relationship. Some "classified" loans are
placed on non-accrual status when the full collection of principal or interest
is in doubt. Included in the "classified" loans are non-accrual loans totaling
$5.4 million at March 31, 2008, compared to $4.9 million at December 31, 2007.
Management regularly assesses the level of the Company's allowance for loan
losses giving consideration to current and developing economic conditions,
levels of classified and non-accrual loans, and other relevant external and
internal considerations. The Company's allowance for loan losses totaled $52.2
million at March 31, 2008. Management considers this allowance for loan losses
to be an adequate reserve against estimated loan losses.
Page 7
Noninterest income for the first quarter of 2008 totaled $19.4 million compared
to $15.3 million for the first quarter 2007. The increase is primarily
attributable to $5.7 million in securities gains from the redemption of Visa
Class B common stock as part of the initial public offering in the first
quarter 2008, offset by $822 thousand in gains from company-owned life insurance
recognized in the first quarter 2007.
Noninterest expense for the first quarter of 2008 totaled $23.1 million, $1.6
million lower than noninterest expense for the first quarter of 2007. The
decrease is primarily due to the first quarter 2008 reversal of a $2.3 million
accrual for Visa related litigation, which was reversed with the funding of a
litigation escrow as a part of the Visa IPO. All other noninterest expenses
increased $700 thousand in the first quarter of 2008 compared to the first
quarter of 2007. Personnel costs rose due to higher employee benefit costs and
annual merit increases. Data processing costs were higher due to conversion of
the Company's item processing function to an outside vendor in the third quarter
2007. These higher costs were offset in part by lower amortization of intangible
assets. The first quarter 2008 efficiency ratio (expenses/FTE revenues) was 34.2
percent compared to 39.7 percent in the first quarter 2007. Excluding the Visa-
related benefits recorded in noninterest income and noninterest expense, the
efficiency ratio was 41.2 percent for the first quarter 2008. Excluding the
company-owned life insurance gain, the efficiency ratio was 40.2 percent for the
first quarter 2007.
At March 31, 2008, shareholders' equity was $399 million and the equity-to-asset
ratio was 9.2 percent. During the first quarter 2008, repurchases of the
Company's common stock totaled approximately 246 thousand shares, net of shares
issued, and dividends paid to shareholders totaled $9.8 million.
At March 31, 2008, the Company's assets totaled $4.3 billion and loans
outstanding totaled $2.4 billion.
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Westamerica Bancorporation, through its wholly owned subsidiary Westamerica
Bank, operates 86 branches and two trust offices throughout 21 Northern and
Central California counties.
Westamerica Bancorporation Web Address: www.westamerica.com
For additional information contact:
Westamerica Bancorporation
Robert A. Thorson - SVP & Chief Financial Officer
707-863-6840
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-K for the year ended
December 31, 2007, 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 April 15, 2008
FINANCIAL HIGHLIGHTS
March 31, 2008
1. Net Income Summary.
(dollars in thousands except per-share amounts)
Q1'08 / Q1'08 / 3/31'08YTD /
Q1'08 Q1'07 Q1'07 Q4'07 Q4'07 3/31'08YTD 3/31'07YTD 3/31'07YTD
---------------------------------------------------------------------------------------
1 Net Interest Income $47,982 $46,914 2.3% $46,812 2.5% $47,982 $46,914 2.3%
(Fully Taxable Equivalent)
2 Provision for Credit Losses 600 75 700.0% 475 26.3% 600 75 700.0%
3 Noninterest Income:
4 Life Insurance Gains 0 822 n/m 0 n/m 0 822 n/m
5 Gain on Sale of Visa 5,698 0 n/m 0 n/m 5,698 0 n/m
Common Stock
6 Other 13,680 14,455 -5.4% 14,657 -6.7% 13,680 14,455 -5.4%
----------------------- ------------ -----------------------
7 Total Noninterest Income 19,378 15,277 26.8% 14,657 32.2% 19,378 15,277 26.8%
8 Noninterest Expense:
9 VISA Litigation (2,338) 0 n/m 2,338 n/m (2,338) 0 n/m
10 Other 25,394 24,664 3.0% 24,868 2.1% 25,394 24,664 3.0%
----------------------- ------------ -----------------------
11 Total Noninterest Expense 23,056 24,664 -6.5% 27,206 -15.3% 23,056 24,664 -6.5%
----------------------- ------------ -----------------------
12 Income Before Taxes (FTE) 43,704 37,452 33,788 43,704 37,452
13 Income Tax Provision (FTE) 16,926 13,882 21.9% 11,956 41.6% 16,926 13,882 21.9%
----------------------- ------------ -----------------------
14 Net Income $26,778 $23,570 13.6% $21,832 22.7% $26,778 $23,570 13.6%
======================= ============ =======================
15 Average Shares Outstanding 28,861 30,342 -4.9% 29,213 -1.2% 28,861 30,342 -4.9%
16 Diluted Average Shares 29,210 30,824 -5.2% 29,575 -1.2% 29,210 30,824 -5.2%
Outstanding
17 Operating Ratios:
18 Basic Earnings Per Share $0.93 $0.78 19.4% $0.75 24.2% $0.93 $0.78 19.4%
19 Diluted Earnings Per Share 0.92 0.76 19.9% 0.74 24.2% 0.92 0.76 19.9%
20 Return On Assets 2.43% 2.03% 1.90% 2.43% 2.03%
21 Return On Equity 27.3% 23.0% 21.7% 27.3% 23.0%
22 Net Interest Margin (FTE) 4.79% 4.41% 4.53% 4.79% 4.41%
23 Efficiency Ratio (FTE) 34.2% 39.7% 44.3% 34.2% 39.7%
24 Dividends Paid Per Share $0.34 $0.34 0.0% $0.34 0.0% $0.34 $0.34 0.0%
25 Dividend Payout Ratio 37% 44% 46% 37% 44%
2. Net Interest Income.
(dollars in thousands)
Q1'08 / Q1'08 / 3/31'08YTD /
Q1'08 Q1'07 Q1'07 Q4'07 Q4'07 3/31'08YTD 3/31'07YTD 3/31'07YTD
---------------------------------------------------------------------------------------
1 Interest and Fee Income (FTE) $60,810 $65,025 -6.5% $63,295 -3.9% $60,810 $65,025 -6.5%
2 Interest Expense 12,828 18,111 -29.2% 16,483 -22.2% 12,828 18,111 -29.2%
----------------------- ------------ -----------------------
3 Net Interest Income (FTE) $47,982 $46,914 2.3% $46,812 2.5% $47,982 $46,914 2.3%
======================= ============ =======================
4 Average Earning Assets $4,028,221 $4,287,431 -6.0%$4,124,196 -2.3%$4,028,221 $4,287,431 -6.0%
5 Average Interest-Bearing 2,771,526 2,961,252 -6.4% 2,830,235 -2.1% 2,771,526 2,961,252 -6.4%
Liabilities
6 Yield on Earning Assets (FTE) 6.06% 6.11% 6.11% 6.06% 6.11%
7 Cost of Funds 1.27% 1.70% 1.58% 1.27% 1.70%
8 Net Interest Margin (FTE) 4.79% 4.41% 4.53% 4.79% 4.41%
9 Interest Expense/ 1.85% 2.46% 2.30% 1.85% 2.46%
Interest-Bearing Liabilities
10 Net Interest Spread (FTE) 4.21% 3.65% 3.81% 4.21% 3.65%
3. Loans & Other Earning Assets.
(average volume, dollars in thousands)
Q1'08 / Q1'08 / 3/31'08YTD /
Q1'08 Q1'07 Q1'07 Q4'07 Q4'07 3/31'08YTD 3/31'07YTD 3/31'07YTD
---------------------------------------------------------------------------------------
1 Total Assets $4,433,934 $4,713,173 -5.9%$4,556,715 -2.7%$4,433,934 $4,713,173 -5.9%
2 Total Earning Assets 4,028,221 4,287,431 -6.0% 4,124,196 -2.3% 4,028,221 4,287,431 -6.0%
3 Total Loans 2,477,666 2,519,861 -1.7% 2,496,403 -0.8% 2,477,666 2,519,861 -1.7%
4 Commercial Loans 616,994 616,277 0.1% 615,093 0.3% 616,994 616,277 0.1%
5 Commercial Real Estate Loans 850,504 900,625 -5.6% 864,464 -1.6% 850,504 900,625 -5.6%
6 Consumer Loans 1,010,168 1,002,959 0.7% 1,016,846 -0.7% 1,010,168 1,002,959 0.7%
7 Total Investment Securities 1,550,555 1,767,570 -12.3% 1,627,793 -4.7% 1,550,555 1,767,570 -12.3%
8 Available For Sale 518,217 612,852 -15.4% 569,832 -9.1% 518,217 612,852 -15.4%
(Market Value)
9 Held To Maturity 1,032,338 1,154,718 -10.6% 1,057,961 -2.4% 1,032,338 1,154,718 -10.6%
10 HTM Unrealized Gain 13,324 (5,955) n/m 4,134 n/m 13,324 (5,955) n/m
(Loss) at Period-End
11 Loans / Deposits 77.1% 73.5% 75.1% 77.1% 73.5%
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WESTAMERICA BANCORPORATION Public Information April 15, 2008
FINANCIAL HIGHLIGHTS
March 31, 2008
4. Deposits & Other Interest-Bearing Liabilities.
(average volume, dollars in thousands)
Q1'08 / Q1'08 / 3/31'08YTD /
Q1'08 Q1'07 Q1'07 Q4'07 Q4'07 3/31'08YTD 3/31'07YTD 3/31'07YTD
---------------------------------------------------------------------------------------
1 Total Deposits $3,212,347 $3,427,010 -6.3%$3,325,154 -3.4%$3,212,347 $3,427,010 -6.3%
2 Noninterest Demand 1,199,604 1,270,522 -5.6% 1,258,496 -4.7% 1,199,604 1,270,522 -5.6%
3 Interest-Bearing Transaction 546,417 586,860 -6.9% 546,485 -0.0% 546,417 586,860 -6.9%
4 Savings 768,443 866,192 -11.3% 805,321 -4.6% 768,443 866,192 -11.3%
5 Time greater than $100K 500,936 484,887 3.3% 512,610 -2.3% 500,936 484,887 3.3%
6 Time less than $100K 196,947 218,549 -9.9% 202,242 -2.6% 196,947 218,549 -9.9%
7 Total Short-Term Borrowings 722,025 767,859 -6.0% 726,783 -0.7% 722,025 767,859 -6.0%
8 Fed Funds Purchased 565,415 596,965 -5.3% 544,640 3.8% 565,415 596,965 -5.3%
9 Other Short-Term Funds 156,610 170,894 -8.4% 182,143 -14.0% 156,610 170,894 -8.4%
10 Long-Term Debt 36,758 36,905 -0.4% 36,794 -0.1% 36,758 36,905 -0.4%
11 Shareholders' Equity 394,273 414,957 -5.0% 398,703 -1.1% 394,273 414,957 -5.0%
12 Demand Deposits / 37.3% 37.1% 37.8% 37.3% 37.1%
Total Deposits
13 Transaction & Savings Deposits / 78.3% 79.5% 78.5% 78.3% 79.5%
Total Deposits
5. Interest Yields Earned & Rates Paid.
(dollars in thousands)
Q1'08 Q1'07
------------------------------- Q4'07 ----------------------------------
Average Income/ Yield/ Yield/ Average Income/ Yield/
Volume Expense Rate Rate Volume Expense Rate
----------------------------------------------------------------------------
1 Interest & Fees Income Earned
2 Total Earning Assets (FTE) $4,028,221 $60,810 6.06% 6.11%$4,287,431 $65,025 6.11%
3 Total Loans (FTE) 2,477,666 39,897 6.48% 6.58% 2,519,861 41,398 6.66%
4 Commercial Loans (FTE) 616,994 11,288 7.36% 7.73% 616,277 12,081 7.95%
5 Commercial Real Estate 850,504 14,953 7.07% 7.11% 900,625 15,935 7.18%
Loans
6 Consumer Loans 1,010,168 13,656 5.44% 5.43% 1,002,959 13,382 5.41%
7 Total Investment 1,550,555 20,913 5.40% 5.38% 1,767,570 23,627 5.35%
Securities (FTE)
8 Interest Expense Paid
9 Total Earning Assets 4,028,221 12,828 1.27% 1.58% 4,287,431 18,111 1.70%
10 Total Interest-Bearing 2,771,526 12,828 1.85% 2.30% 2,961,252 18,111 2.46%
Liabilities
11 Total Interest-Bearing 2,012,743 7,328 1.46% 1.75% 2,156,488 9,237 1.74%
Deposits
12 Interest-Bearing 546,417 452 0.33% 0.37% 586,860 523 0.36%
Transaction
13 Savings 768,443 1,330 0.70% 0.81% 866,192 1,409 0.66%
14 Time less than $100K 196,947 1,589 3.25% 3.37% 218,549 1,734 3.22%
15 Time greater than $100K 500,936 3,957 3.18% 4.07% 484,887 5,571 4.66%
16 Total Short-Term Borrowings 722,025 4,922 2.70% 3.65% 767,859 8,296 4.32%
17 Fed Funds Purchased 565,415 4,599 3.22% 4.56% 596,965 7,824 5.24%
18 Other Short-Term Funds 156,610 323 0.83% 0.95% 170,894 472 1.12%
19 Long-Term Debt 36,758 578 6.29% 6.29% 36,905 578 6.27%
20 Net Interest Income and Margin (FTE) $47,982 4.79% 4.53% $46,914 4.41%
6. Noninterest Income.
(dollars in thousands except per share amounts)
Q1'08 / Q1'08 / 3/31'08YTD /
Q1'08 Q1'07 Q1'07 Q4'07 Q4'07 3/31'08YTD 3/31'07YTD 3/31'07YTD
---------------------------------------------------------------------------------------
1 Service Charges on Deposit $7,296 $7,528 -3.1% $7,422 -1.7% $7,296 $7,528 -3.1%
Accounts
2 Merchant Credit Card Income 2,580 2,449 5.4% 2,817 -8.4% 2,580 2,449 5.4%
3 ATM Fees & Interchange 718 677 6.1% 709 1.3% 718 677 6.1%
4 Debit Card Fees 904 895 0.9% 972 -7.0% 904 895 0.9%
5 Financial Services Commissions 230 310 -25.9% 265 -13.2% 230 310 -25.9%
6 Mortgage Banking Income 40 30 35.2% 32 25.7% 40 30 35.2%
7 Trust Fees 303 337 -10.1% 303 -0.1% 303 337 -10.1%
8 Other Income 1,609 2,229 -27.8% 2,137 -24.7% 1,609 2,229 -27.8%
----------------------- ------------ -----------------------
9 Sub-total 13,680 14,455 -5.4% 14,657 -6.7% 13,680 14,455 -5.4%
10 Life Insurance Gains 0 822 n/m 0 n/m 0 822 n/m
11 Gain on Sale of Visa 5,698 0 n/m 0 n/m 5,698 0 n/m
Common Stock ----------------------- ------------ -----------------------
12 Total Noninterest Income $19,378 $15,277 26.8% $14,657 32.2% $19,378 $15,277 26.8%
======================= ============ =======================
13 Operating Ratios:
14 Total Revenue (FTE) $67,360 $62,191 8.3% $61,469 9.6% $67,360 $62,191 8.3%
15 Noninterest Income / 28.8% 24.6% 23.8% 28.8% 24.6%
Revenue (FTE)
16 Service Charges / 0.91% 0.89% 0.89% 0.91% 0.89%
Deposits (annualized)
17 Total Revenue Per Share $9.39 $8.31 12.9% $8.35 12.4% $9.39 $8.31 12.9%
(annualized)
Page 11
WESTAMERICA BANCORPORATION Public Information April 15, 2008
FINANCIAL HIGHLIGHTS
March 31, 2008
7. Noninterest Expense.
(dollars in thousands)
Q1'08 / Q1'08 / 3/31'08YTD /
Q1'08 Q1'07 Q1'07 Q4'07 Q4'07 3/31'08YTD 3/31'07YTD 3/31'07YTD
---------------------------------------------------------------------------------------
1 Salaries & Benefits $12,984 $12,568 3.3% $12,366 5.0% $12,984 $12,568 3.3%
2 Occupancy 3,390 3,291 3.0% 3,386 0.1% 3,390 3,291 3.0%
3 Equipment 921 1,138 -19.1% 934 -1.4% 921 1,138 -19.1%
4 Data Processing 2,120 1,524 39.1% 2,202 -3.7% 2,120 1,524 39.1%
5 Courier 829 848 -2.2% 845 -1.9% 829 848 -2.2%
6 Postage 383 410 -6.5% 391 -1.9% 383 410 -6.5%
7 Telephone 335 360 -6.9% 343 -2.2% 335 360 -6.9%
8 Professional Fees 536 495 8.1% 534 0.3% 536 495 8.1%
9 Stationery & Supplies 279 315 -11.5% 365 -23.7% 279 315 -11.5%
10 Loan Expense 170 167 1.7% 195 -12.8% 170 167 1.7%
11 Operational Losses 184 160 15.3% 234 -21.2% 184 160 15.3%
12 Amortization of Identifiable 858 975 -12.0% 893 -3.9% 858 975 -12.0%
Intangibles
13 Other Operating 2,405 2,413 -0.4% 2,180 10.3% 2,405 2,413 -0.4%
----------------------- ------------ -----------------------
14 Sub-total 25,394 24,664 3.0% 24,868 2.1% 25,394 24,664 3.0%
15 VISA Litigation (2,338) 0 n/m 2,338 n/m (2,338) 0 n/m
----------------------- ------------ -----------------------
16 Total Noninterest Expense $23,056 $24,664 -6.5% $27,206 -15.3% $23,056 $24,664 -6.5%
======================= ============ =======================
17 Full Time Equivalent Staff 886 892 -0.7% 868 2.1% 886 892 -0.7%
18 Average Assets / Full Time $5,004 $5,284 -5.3% $5,250 -4.7% $5,004 $5,284 -5.3%
Equivalent Staff
19 Operating Ratios:
20 FTE Revenue / Full Time $306 $283 8.1% $281 8.8% $306 $283 8.1%
Equiv. Staff (annualized)
21 Noninterest Expense / 2.30% 2.33% 2.62% 2.30% 2.33%
Earning Assets
(annualized)
22 Noninterest Expense / 34.2% 39.7% 44.3% 34.2% 39.7%
FTE Revenues
8. Provision for Credit Losses.
(dollars in thousands)
Q1'08 / Q1'08 / 3/31'08YTD /
Q1'08 Q1'07 Q1'07 Q4'07 Q4'07 3/31'08YTD 3/31'07YTD 3/31'07YTD
---------------------------------------------------------------------------------------
1 Provision for Credit Losses $600 $75 700.0% $475 26.3% $600 $75 700.0%
2 Gross Loan Losses 1,537 1,244 23.6% 1,162 32.3% 1,537 1,244 23.6%
3 Net Loan Losses 872 516 69.0% 907 -3.8% 872 516 69.0%
4 Recoveries / Gross Loan Losses 43% 59% 22% 43% 59%
5 Average Total Loans $2,477,666 $2,519,861 -1.7%$2,496,403 -0.8%$2,477,666 $2,519,861 -1.7%
6 Net Loan Losses / Loans 0.14% 0.08% 0.14% 0.14% 0.08%
(annualized)
7 Provision for Credit Losses / 0.10% 0.01% 0.08% 0.10% 0.01%
Loans (annualized)
8 Provision for Credit Losses / 68.8% 14.5% 52.4% 68.8% 14.5%
Net Loan Losses
9. Credit Quality.
(dollars in thousands)
3/31/08 / 3/31/08 /
3/31/08 3/31/07 3/31/07 12/31/07 12/31/07 9/30/07 6/30/07 12/31/06
---------------------------------------------------------------------------------------
1 Nonperforming Nonaccrual Loans $3,728 $2,341 25.5% $3,164 -7.2% $3,132 $3,140 $61
2 Performing Nonaccrual Loans 1,652 2,459 -0.7% 1,688 44.7% 1,695 1,898 4,404
----------------------- ------------ ----------------------------------
3 Total Nonaccrual Loans 5,380 4,800 12.1% 4,852 10.9% 4,827 5,038 4,465
4 Accruing Loans 90+ Days 268 82 226.8% 297 -9.8% 251 179 65
Past Due ----------------------- ------------ ----------------------------------
5 Total Nonperforming Loans 5,648 4,882 15.7% 5,149 9.7% 5,078 5,217 4,530
6 Repossessed Collateral 954 647 47.4% 613 55.6% 613 613 647
7 Total Nonperforming Loans & ----------------------- ------------ ----------------------------------
8 Repossessed Collateral $6,602 $5,529 19.4% $5,762 14.6% $5,691 $5,830 $5,177
======================= ============ ==================================
9 Classified Loans $33,303 $18,439 80.6% $24,419 36.4% $21,403 $22,498 $20,180
======================= ============ ==================================
10 Allowance for Loan Losses $52,234 $54,889 -4.8% $52,506 -0.5% $52,938 $53,473 $55,330
11 Total Loans Outstanding 2,448,320 2,519,898 -2.8% 2,502,976 -2.2% 2,511,374 2,521,738 2,531,734
12 Total Assets 4,342,302 4,748,829 -8.6% 4,558,959 -4.8% 4,657,016 4,647,069 4,769,335
13 Allowance for Loan Losses / 2.13% 2.18% 2.10% 2.11% 2.12% 2.19%
Total Loans
14 Nonperforming Loans / 0.23% 0.19% 0.21% 0.20% 0.21% 0.18%
Total Loans
15 Nonperforming Loans & Repossessed
16 Collateral/Total Assets 0.15% 0.12% 0.13% 0.12% 0.13% 0.11%
17 Allowance/Nonperforming Loans 925% 1124% 1020% 1042% 1025% 1221%
18 Allowance for Loan Losses / 157% 298% 215% 247% 238% 274%
Classified Loans
19 Classified Loans /
20 (Equity + Allowance for 7.4% 3.9% 5.5% 4.7% 4.9% 4.2%
Loan Losses)
Page 12
WESTAMERICA BANCORPORATION Public Information April 15, 2008
FINANCIAL HIGHLIGHTS
March 31, 2008
10.Capital.
(dollars in thousands, except per-share amounts)
3/31/08 / 3/31/08 /
3/31/08 3/31/07 3/31/07 12/31/07 12/31/07 9/30/07 6/30/07 12/31/06
---------------------------------------------------------------------------------------
1 Shareholders' Equity $399,109 $419,810 -4.9% $394,603 1.1% $403,651 $407,982 $424,235
2 Tier I Regulatory Capital 283,768 293,382 -3.3% 278,970 1.7% 283,015 286,818 298,576
3 Total Regulatory Capital 321,819 333,658 -3.5% 318,089 1.2% 322,598 326,582 339,114
4 Total Assets 4,342,302 4,748,829 -8.6% 4,558,959 -4.8% 4,657,016 4,647,069 4,769,335
5 Risk-Adjusted Assets 2,914,007 3,043,445 -4.3% 2,986,737 -2.4% 3,017,668 3,014,947 3,057,054
6 Shareholders' Equity / 9.19% 8.84% 8.66% 8.67% 8.78% 8.90%
Total Assets
7 Shareholders' Equity / 16.30% 16.66% 15.77% 16.07% 16.18% 16.76%
Total Loans
8 Tier I Capital / Total Assets 6.53% 6.18% 6.12% 6.08% 6.17% 6.26%
9 Tier I Capital / 9.74% 9.64% 9.33% 9.38% 9.51% 9.77%
Risk-Adjusted Assets
10 Total Capital / 11.04% 10.96% 10.64% 10.69% 10.83% 11.09%
Risk-Adjusted Assets
11 Shares Outstanding 28,772 30,158 -4.6% 29,018 -0.8% 29,378 29,732 30,547
12 Book Value Per Share $13.87 $13.92 -0.4% $13.60 2.0% $13.74 $13.72 $13.89
13 Market Value Per Share $52.60 $48.17 9.2% $44.55 18.1% $49.81 $44.24 $50.63
14 Share Repurchase Programs
(shares in thousands)
Q1'08 / Q1'08 / 3/31'08YTD /
Q1'08 Q1'07 Q1'07 Q4'07 Q4'07 3/31'08YTD 3/31'07YTD 3/31'07YTD
---------------------------------------------------------------------------------------
15 Total Shares Repurchased / 424 447 -5.3% 491 -13.6% 424 447 -5.3%
Canceled
16 Average Repurchase Price $47.68 $49.49 -3.7% $44.88 6.2% $47.68 $49.49 -3.7%
17 Net Shares Repurchased 246 389 -36.7% 360 -31.7% 246 389 -36.7%
11.Period-End Balance Sheets.
(unaudited, dollars in thousands)
3/31/08 / 3/31/08 /
3/31/08 3/31/07 3/31/07 12/31/07 12/31/07 9/30/07 6/30/07 12/31/06
1 Assets: ---------------------------------------------------------------------------------------
2 Cash and Money Market Assets $139,957 $208,734 -32.9% $210,097 -33.4% $219,960 $164,390 $185,009
3 Investment Securities 477,686 602,220 -20.7% 532,821 -10.3% 570,086 582,959 615,525
Available For Sale
4 Investment Securities 1,016,613 1,142,382 -11.0% 1,045,288 -2.7% 1,081,009 1,104,132 1,165,092
Held to Maturity
5 Loans, gross 2,448,320 2,519,898 -2.8% 2,502,976 -2.2% 2,511,374 2,521,738 2,531,734
6 Allowance For Loan Losses (52,234) (54,889) -4.8% (52,506) -0.5% (52,938) (53,473) (55,330)
----------------------- ------------ ----------------------------------
7 Loans, net 2,396,086 2,465,009 -2.8% 2,450,470 -2.2% 2,458,436 2,468,265 2,476,404
----------------------- ------------ ----------------------------------
8 Premises and Equipment 28,031 29,643 -5.4% 28,380 -1.2% 28,666 29,169 30,188
9 Identifiable Intangible 17,571 21,108 -16.8% 18,429 -4.7% 19,322 20,215 22,082
Assets
10 Goodwill 121,719 121,719 0.0% 121,719 0.0% 121,719 121,719 121,719
11 Interest Receivable and 144,639 158,014 -8.5% 151,755 -4.7% 157,818 156,220 153,316
Other Assets ----------------------- ------------ ----------------------------------
12 Total Assets $4,342,302 $4,748,829 -8.6%$4,558,959 -4.8%$4,657,016 $4,647,069 $4,769,335
======================= ============ ==================================
13 Liabilities and Shareholders' Equity:
14 Deposits:
15 Noninterest Bearing $1,202,165 $1,293,920 -7.1%$1,245,500 -3.5%$1,251,572 $1,266,941 $1,341,019
16 Interest-Bearing 542,468 584,026 -7.1% 544,411 -0.4% 549,263 554,036 588,668
Transaction
17 Savings 749,471 851,800 -12.0% 760,006 -1.4% 806,797 809,791 865,268
18 Time 700,534 714,626 -2.0% 714,873 -2.0% 732,582 704,264 721,779
----------------------- ------------ ----------------------------------
19 Total Deposits 3,194,638 3,444,372 -7.3% 3,264,790 -2.1% 3,340,214 3,335,032 3,516,734
----------------------- ------------ ----------------------------------
20 Short-Term Borrowed Funds 635,264 776,781 -18.2% 798,599 -20.5% 815,101 809,261 731,977
21 Debt Financing and 36,736 36,883 -0.4% 36,773 -0.1% 36,809 36,846 36,920
Notes Payable
22 Liability For Interest, 76,555 70,983 7.8% 64,194 19.3% 61,241 57,948 59,469
Taxes and Other ----------------------- ------------ ----------------------------------
23 Total Liabilities 3,943,193 4,329,019 -8.9% 4,164,356 -5.3% 4,253,365 4,239,087 4,345,100
----------------------- ------------ ----------------------------------
24 Shareholders' Equity:
25 Paid-In Capital $339,468 $341,724 -0.7% $337,201 0.7% $337,627 $338,290 $344,263
26 Accumulated Other Comprehensive
27 (Loss) Income (3,954) 3,593 -210.0% (4,520) -12.5% (412) (777) 1,850
28 Retained Earnings 63,595 74,493 -14.6% 61,922 2.7% 66,436 70,469 78,122
----------------------- ------------ ----------------------------------
29 Total Shareholders' Equity 399,109 419,810 -4.9% 394,603 1.1% 403,651 407,982 424,235
----------------------- ------------ ----------------------------------
30 Total Liabilities and $4,342,302 $4,748,829 -8.6%$4,558,959 -4.8%$4,657,016 $4,647,069 $4,769,335
Shareholders' Equity ======================= ============ ==================================
Page 13
WESTAMERICA BANCORPORATION Public Information April 15, 2008
FINANCIAL HIGHLIGHTS
March 31, 2008
12.Income Statements.
(unaudited, dollars in thousands, except per-share amounts)
Q1'08 / Q1'08 / 3/31'08YTD /
Q1'08 Q1'07 Q1'07 Q4'07 Q4'07 3/31'08YTD 3/31'07YTD 3/31'07YTD
---------------------------------------------------------------------------------------
1 Interest and Fee Income:
2 Loans $38,732 $40,167 -3.6% $40,214 -3.7% $38,732 $40,167 -3.6%
3 Money Market Assets and Funds 1 2 n/m 3 n/m 1 2 n/m
4 Investment Securities 5,802 7,122 -18.5% 6,528 -11.1% 5,802 7,122 -18.5%
Available For Sale
5 Investment Securities 10,859 12,083 -10.1% 11,116 -2.3% 10,859 12,083 -10.1%
Held to Maturity ----------------------- ------------ -----------------------
6 Total Interest Income 55,394 59,374 -6.7% 57,861 -4.3% 55,394 59,374 -6.7%
----------------------- ------------ -----------------------
7 Interest Expense:
8 Transaction Deposits 452 523 -13.6% 515 -12.2% 452 523 -13.6%
9 Savings Deposits 1,330 1,409 -5.6% 1,636 -18.7% 1,330 1,409 -5.6%
10 Time Deposits 5,546 7,305 -24.1% 6,975 -20.5% 5,546 7,305 -24.1%
11 Short-Term Borrowed Funds 4,922 8,296 -40.7% 6,779 -27.4% 4,922 8,296 -40.7%
12 Debt Financing and 578 578 0.0% 578 0.0% 578 578 0.0%
Notes Payable ----------------------- ------------ -----------------------
13 Total Interest Expense 12,828 18,111 -29.2% 16,483 -22.2% 12,828 18,111 -29.2%
----------------------- ------------ -----------------------
14 Net Interest Income 42,566 41,263 3.2% 41,378 2.9% 42,566 41,263 3.2%
----------------------- ------------ -----------------------
15 Provision for Credit Losses 600 75 700.0% 475 26.3% 600 75 700.0%
----------------------- ------------ -----------------------
16 Noninterest Income:
17 Service Charges on 7,296 7,528 -3.1% 7,422 -1.7% 7,296 7,528 -3.1%
Deposit Accounts
18 Merchant Credit Card 2,580 2,449 5.4% 2,817 -8.4% 2,580 2,449 5.4%
19 ATM Fees & Interchange 718 677 6.1% 709 1.3% 718 677 6.1%
20 Debit Card Fees 904 895 0.9% 972 -7.0% 904 895 0.9%
21 Financial Services Commissions 230 310 -25.9% 265 -13.2% 230 310 -25.9%
22 Mortgage Banking 40 30 35.2% 32 25.7% 40 30 35.2%
23 Trust Fees 303 337 -10.1% 303 -0.1% 303 337 -10.1%
24 Life Insurance Gains 0 822 n/m 0 n/m 0 822 n/m
25 Gain on Sale of Visa 5,698 0 n/m 0 n/m 5,698 0 n/m
Common Stock
26 Other 1,609 2,229 -27.8% 2,137 -24.7% 1,609 2,229 -27.8%
----------------------- ------------ -----------------------
27 Total Noninterest Income 19,378 15,277 26.8% 14,657 32.2% 19,378 15,277 26.8%
----------------------- ------------ -----------------------
28 Noninterest Expense:
29 Salaries and Related Benefits 12,984 12,568 3.3% 12,366 5.0% 12,984 12,568 3.3%
30 Occupancy 3,390 3,291 3.0% 3,386 0.1% 3,390 3,291 3.0%
31 Equipment 921 1,138 -19.1% 934 -1.4% 921 1,138 -19.1%
32 Data Processing 2,120 1,524 39.1% 2,202 -3.7% 2,120 1,524 39.1%
33 Professional Fees 536 495 8.1% 534 0.3% 536 495 8.1%
34 VISA Litigation (2,338) 0 n/m 2,338 n/m (2,338) 0 n/m
35 Other 5,443 5,648 -3.6% 5,446 -0.0% 5,443 5,648 -3.6%
----------------------- ------------ -----------------------
36 Total Noninterest Expense 23,056 24,664 -6.5% 27,206 -15.3% 23,056 24,664 -6.5%
----------------------- ------------ -----------------------
37 Income Before Income Taxes 38,288 31,801 20.4% 28,354 35.0% 38,288 31,801 20.4%
38 Provision for income taxes 11,510 8,231 39.8% 6,522 76.5% 11,510 8,231 39.8%
----------------------- ------------ -----------------------
39 Net Income $26,778 $23,570 13.6% $21,832 22.7% $26,778 $23,570 13.6%
======================= ============ =======================
40 Average Shares Outstanding 28,861 30,342 -4.9% 29,213 -1.2% 28,861 30,342 -4.9%
41 Diluted Average Shares 29,210 30,824 -5.2% 29,575 -1.2% 29,210 30,824 -5.2%
Outstanding
42 Per Share Data:
43 Basic Earnings $0.93 $0.78 19.4% $0.75 24.2% $0.93 $0.78 19.4%
44 Diluted Earnings 0.92 0.76 19.9% 0.74 24.2% 0.92 0.76 19.9%
45 Dividends Paid 0.34 0.34 0.0% 0.34 0.0% 0.34 0.34 0.0%