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):
January 17, 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 January 17, 2008
Item 2.02: Results of Operations and Financial Condition
----------------------------------------------------------
On January 17, 2008 Westamerica Bancorporation announced their
earnings for the fourth quarter of 2007. A copy of the press release
is attached as Exhibit 99.1 to this Form 8-K and is incorporated
herein by reference.
Page 3
Signatures
Pursuant to the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
Westamerica Bancorporation
/s/ JOHN "ROBERT" THORSON
-------------------------------------------------
John "Robert" Thorson
Senior Vice President and Chief Financial Officer
January 17, 2008
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INDEX TO EXHIBITS
-----------------
Sequentially
Exhibit No. Description Number Page
----------- ------------------------- -------------
(99.1) Press release dated 5-13
January 17, 2008
Page 5
January 17, 2008
WESTAMERICA BANCORPORATION REPORTS ANNUAL EARNINGS
San Rafael, CA: Westamerica Bancorporation (NASDAQ: WABC), parent company of
Westamerica Bank, today reported net income for the year ended December 31, 2007
of $89.8 million, compared to $98.8 million for 2006. Diluted earnings per share
(EPS) for 2007 were $2.98, compared to $3.11 for the year 2006. Return on
shareholders' equity for the year 2007 was 22.1 percent and return on assets was
1.93 percent, compared to 23.4 percent and 2.01 percent, respectively, for the
year 2006.
Net income for the fourth quarter 2007 totaled $21.8 million, or EPS of $0.74,
compared to net income of $22.0 million and EPS of $0.74 for the third quarter
2007, and net income of $24.0 million and EPS of $0.77 for the fourth quarter
2006. Fourth quarter 2007 results include a $2.3 million litigation expense for
Westamerica's proportionate share of Visa's litigation exposure for which Visa's
members are responsible. Management currently anticipates that the Company's
proportional share of the proceeds of the planned initial public offering by
Visa will more than offset any liabilities related to Visa litigation. Fourth
quarter 2007 results also include a $700 thousand income tax refund, derived
from an amended 2003 tax return, which reduced income tax expense. The expense
for Visa litigation and the income tax refund combined to reduce net income by
$590 thousand, or diluted earnings per share by $0.02.
"Our net interest margin increased to 4.53 percent in the fourth quarter 2007,
compared to 4.34 percent in the third quarter 2007. The margin improvement was
in large part due to declining short-term interest rates, which allowed us to
reduce our cost of funds. Our consistent application of traditional,
conservative loan underwriting practices over the last several years has helped
maintain relatively steady loan quality. Our total non-performing assets were
$5.8 million at December 31, 2007, compared to $5.7 million at September 30,
2007, $5.2 million at December 31, 2006 and $6.5 million at December 31, 2005,"
said Chairman, President and CEO David Payne. "Throughout 2007, we also focused
on improving our fee income, which increased seven percent over 2006, and
reducing our ongoing operating expenses, which fell two percent from 2006. We
are proud to have generated a 22 percent return on our shareholders' equity in
2007," continued Payne.
Page 6
Net interest income on a fully taxable equivalent basis was $46.8 million in the
fourth quarter of 2007 compared to $45.6 million in the prior quarter and $49.0
million in the same quarter a year ago. The fourth quarter 2007 net interest
margin on a fully taxable equivalent basis was 4.53 percent, compared to 4.34
percent for the previous quarter and 4.49 percent for the fourth quarter of
2006. For the full year 2007, net interest income and the net interest margin on
a fully taxable equivalent basis were $185.3 million and 4.40 percent, compared
to $204.7 million and 4.57 percent, respectively, for 2006.
The provision for credit losses was $475 thousand for the fourth quarter of
2007, compared to $75 thousand for the previous quarter and $70 thousand for the
year ago quarter. The increase in the provision for credit losses in the fourth
quarter 2007 reflects Management's assessment of credit risk for the Company. In
addition to increasing the provision for credit losses, Management reduced the
reserve for unfunded credit commitments by $400 thousand during the fourth
quarter 2007 to reflect a reduction in unfunded construction loan commitments.
As discussed below, the reduction in the reserve for unfunded credit commitments
was recorded in other expenses.
Noninterest income in the fourth quarter of 2007 totaled $14.7 million,
unchanged from the prior quarter and compared to $13.7 million reported for the
year ago quarter. The increase from the year ago quarter is due to higher
deposit service charges and merchant card processing fees. For the full year
2007, noninterest income increased to $59.3 million from $55.3 million for 2006.
The $4.0 million annual increase is primarily attributable to higher deposit
service charges, merchant card processing fees, debit card fees, and $822
thousand company owned life insurance proceeds recognized in 2007.
Page 7
Noninterest expense for the fourth quarter of 2007 totaled $27.2 million
compared to $24.9 million in the prior quarter and $24.5 million in the year ago
quarter. The increase from the prior quarter is primarily attributable to:
* A $402 thousand increase in data processing costs,
* A $221 thousand reduction in personnel expenses,
* A $149 thousand reduction in equipment costs,
* Lower other expenses primarily attributable to a $400 thousand reduction in
the reserve for unfunded credit commitments, and
* The $2.3 million Visa litigation charge.
The higher data processing expenses and lower personnel and equipment costs are
primarily due to conversion of the Company's item processing function to an
outside vendor. This conversion occurred during the third quarter 2007 and is
not expected to change overall expenses by a meaningful amount.
The increase in noninterest expense from the year ago quarter is primarily
attributable to higher data processing expenses and the Visa litigation, offset
in part by the reduction in the reserve for unfunded credit commitments, all of
which are described above.
For the full year 2007, noninterest expense was $101.4 million, down from $101.7
million for 2006. The decrease is primarily attributable to:
* A $2.2 million reduction in personnel costs,
* A $647 thousand reduction in equipment costs,
* A $548 thousand reduction in professional fees,
* $434 thousand lower intangible asset amortization,
* A $1.0 million increase in data processing costs,
* A $299 increase in occupancy costs,
* The $400 thousand reduction in the reserve for unfunded credit commitments,
and
* The $2.3 million Visa litigation charge.
Shareholders' equity was $395 million at December 31, 2007, and the equity-to-
asset ratio was 8.7 percent. At December 31, 2007, there were approximately 1.4
million shares remaining to purchase under the Company's existing share
repurchase program. At December 31, 2007, the Company's assets totaled $4.6
billion and loans outstanding totaled $2.5 billion.
Page 8
Westamerica Bancorporation, through its wholly owned subsidiary Westamerica
Bank, operates 86 branches 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-Q for the quarter ended
September 30, 2007 and Form 10-K for the year ended December 31, 2006, describe
some of these factors, including certain credit, market, operational, liquidity
and interest rate risks associated with the Company's business and operations.
Other factors described in these reports include changes in business and
economic conditions, competition, fiscal and monetary policies,
disintermediation, legislation including the Sarbanes-Oxley Act of 2002 and the
Gramm-Leach-Bliley Act of 1999, and mergers and acquisitions.
Forward-looking statements speak only as of the date they are made. The
Company does not undertake to update forward-looking statements to reflect
circumstances or events that occur after the date forward looking statements are
made.
#######
Page 9
WESTAMERICA BANCORPORATION Public Information January 17, 2008
FINANCIAL HIGHLIGHTS
December 31, 2007
1. Net Income Summary.
(dollars in thousands except per-share amounts)
Q4'07 / Q4'07 / 12/31'07YTD/
Q4'07 Q4'06 Q4'06 Q3'07 Q3'07 12/31'07YTD 12/31'06YTD 12/31'06YTD
------------------------------------------------------------------------------------------------
1 Net Interest Income $46,812 $49,029 -4.5% $45,563 2.7% $185,348 $204,703 -9.5%
(Fully Taxable Equivalent)
2 Provision for Credit Losses 475 70 578.6% 75 533.3% 700 445 57.3%
3 Noninterest Income:
4 Life Insurance Gains 0 0 n/m 0 n/m 822 0 n/m
5 Other 14,657 13,747 6.6% 14,644 0.1% 58,456 55,347 5.6%
------------------------ ------------ ------------------------
6 Total Noninterest Income 14,657 13,747 6.6% 14,644 0.1% 59,278 55,347 7.1%
7 Noninterest Expense:
8 VISA Litigation 2,338 0 n/m 0 n/m 2,338 0 n/m
9 Other 24,868 24,492 1.5% 24,853 0.1% 99,090 101,724 -2.6%
------------------------ ------------ ------------------------
10 Total Noninterest Expense 27,206 24,492 11.1% 24,853 9.5% 101,428 101,724 -0.3%
------------------------ ------------ ------------------------
11 Income Before Taxes (FTE) 33,788 38,214 35,279 142,498 157,881
12 Income Tax Provision (FTE) 11,956 14,256 -16.1% 13,257 -9.8% 52,722 59,075 -10.8%
------------------------ ------------ ------------------------
13 Net Income $21,832 $23,958 -8.9% $22,022 -0.9% $89,776 $98,806 -9.1%
======================== ============ ========================
14 Average Shares Outstanding 29,213 30,699 -4.8% 29,532 -1.1% 29,753 31,202 -4.6%
15 Diluted Average Shares 29,575 31,204 -5.2% 29,915 -1.1% 30,165 31,739 -5.0%
Outstanding
16 Operating Ratios:
17 Basic Earnings Per Share $0.75 $0.78 -4.2% $0.75 0.0% $3.02 $3.17 -4.7%
18 Diluted Earnings Per Share $0.74 0.77 -3.9% 0.74 0.0% 2.98 3.11 -4.4%
19 Return On Assets 1.90% 1.98% 1.89% 1.93% 2.01%
20 Return On Equity 21.7% 22.8% 21.7% 22.1% 23.4%
21 Net Interest Margin (FTE) 4.53% 4.49% 4.34% 4.40% 4.57%
22 Efficiency Ratio (FTE) 44.3% 39.0% 41.3% 41.5% 39.1%
23 Dividends Paid Per Share $0.34 $0.34 0.0% $0.34 0.0% $1.36 $1.30 4.6%
24 Dividend Payout Ratio 46% 44% 46% 46% 42%
2. Net Interest Income.
(dollars in thousands)
Q4'07 / Q4'07 / 12/31'07YTD/
Q4'07 Q4'06 Q4'06 Q3'07 Q3'07 12/31'07YTD 12/31'06YTD 12/31'06YTD
------------------------------------------------------------------------------------------------
1 Interest and Fee Income (FTE) $63,295 $66,512 -4.8% $64,708 -2.2% $257,903 $269,971 -4.5%
2 Interest Expense 16,483 17,483 -5.7% 19,145 -13.9% 72,555 65,268 11.2%
------------------------ ------------ ------------------------
3 Net Interest Income (FTE) $46,812 $49,029 -4.5% $45,563 2.7% $185,348 $204,703 -9.5%
======================== ============ ========================
4 Average Earning Assets $4,124,196 $4,366,675 -5.6% $4,198,859 -1.8% $4,213,511 $4,477,047 -5.9%
5 Average Interest-Bearing 2,830,235 2,975,221 -4.9% 2,905,457 -2.6% 2,905,370 3,091,231 -6.0%
Liabilities
6 Yield on Earning Assets (FTE) 6.11% 6.07% 6.14% 6.12% 6.03%
7 Cost of Funds 1.58% 1.58% 1.80% 1.72% 1.46%
8 Net Interest Margin (FTE) 4.53% 4.49% 4.34% 4.40% 4.57%
9 Interest Expense/Interest- 2.30% 2.32% 2.60% 2.50% 2.11%
Bearing Liabilities
10 Net Interest Spread (FTE) 3.81% 3.75% 3.54% 3.62% 3.92%
3. Loans & Other Earning Assets.
(average volume, dollars in thousands)
Q4'07 / Q4'07 / 12/31'07YTD/
Q4'07 Q4'06 Q4'06 Q3'07 Q3'07 12/31'07YTD 12/31'06YTD 12/31'06YTD
------------------------------------------------------------------------------------------------
1 Total Assets $4,556,715 $4,793,700 -4.9% $4,628,728 -1.6% $4,641,460 $4,910,671 -5.5%
2 Total Earning Assets 4,124,196 4,366,675 -5.6% 4,198,859 -1.8% 4,213,511 4,477,047 -5.9%
3 Total Loans 2,496,403 2,547,524 -2.0% 2,514,685 -0.7% 2,511,763 2,576,791 -2.5%
4 Commercial Loans 615,093 637,194 -3.5% 625,490 -1.7% 620,841 665,414 -6.7%
5 Commercial Real Estate Loans 864,464 915,577 -5.6% 871,225 -0.8% 879,952 916,677 -4.0%
6 Consumer Loans 1,016,846 994,753 2.2% 1,017,970 -0.1% 1,010,970 994,700 1.6%
7 Total Investment Securities 1,627,793 1,819,151 -10.5% 1,684,174 -3.3% 1,701,748 1,900,256 -10.4%
8 Available For Sale 569,832 630,826 -9.7% 590,749 -3.5% 593,898 645,853 -8.0%
(Market Value)
9 Held To Maturity 1,057,961 1,188,325 -11.0% 1,093,425 -3.2% 1,107,850 1,254,403 -11.7%
10 HTM Unrealized Gain 4,134 (9,356) n/m (4,974) n/m 4,134 (9,356) n/m
(Loss) at Period-End
11 Loans / Deposits 75.1% 71.7% 74.9% 74.5% 70.6%
Page 10
WESTAMERICA BANCORPORATION Public Information January 17, 2008
FINANCIAL HIGHLIGHTS
December 31, 2007
4. Deposits & Other Interest-Bearing Liabilities.
(average volume, dollars in thousands)
Q4'07 / Q4'07 / 12/31'07YTD/
Q4'07 Q4'06 Q4'06 Q3'07 Q3'07 12/31'07YTD 12/31'06YTD 12/31'06YTD
------------------------------------------------------------------------------------------------
1 Total Deposits $3,325,154 $3,553,379 -6.4% $3,358,163 -1.0% $3,371,853 $3,648,103 -7.6%
2 Noninterest Demand 1,258,496 1,332,213 -5.5% 1,254,530 0.3% 1,262,723 1,329,107 -5.0%
3 Interest-Bearing Transaction 546,485 593,236 -7.9% 566,556 -3.5% 569,286 617,956 -7.9%
4 Savings 805,321 896,538 -10.2% 810,213 -0.6% 826,336 956,699 -13.6%
5 Time greater than $100K 512,610 505,390 1.4% 519,488 -1.3% 503,469 504,980 -0.3%
6 Time less than $100K 202,242 226,002 -10.5% 207,376 -2.5% 210,039 239,361 -12.3%
7 Total Short-Term Borrowings 726,783 717,114 1.3% 764,992 -5.0% 759,390 734,970 3.3%
8 Fed Funds Purchased 544,640 517,913 5.2% 621,165 -12.3% 596,711 525,068 13.6%
9 Other Short-Term Funds 182,143 199,201 -8.6% 143,827 26.6% 162,679 209,902 -22.5%
10 Long-Term Debt 36,794 36,941 -0.4% 36,832 -0.1% 36,850 37,265 -1.1%
11 Shareholders' Equity 398,703 417,597 -4.5% 402,016 -0.8% 406,028 422,541 -3.9%
12 Demand Deposits / 37.8% 37.5% 37.4% 37.4% 36.4%
Total Deposits
13 Transaction & Savings Deposits 78.5% 79.4% 78.4% 78.8% 79.6%
/ Total Deposits
5. Interest Yields Earned & Rates Paid.
(dollars in thousands)
Q4'07 Q4'06
------------------------------------ Q3'07 ------------------------------------
Average Income/ Yield/ Yield/ Average Income/ Yield/
Volume Expense Rate Rate Volume Expense Rate
------------------------------------------------------------------------------------
1 Interest & Fees Income Earned
2 Total Earning Assets (FTE) $4,124,196 $63,295 6.11% 6.14% $4,366,675 $66,512 6.07%
3 Total Loans (FTE) 2,496,403 41,389 6.58% 6.68% 2,547,524 42,450 6.61%
4 Commercial Loans (FTE) 615,093 11,986 7.73% 8.07% 637,194 12,810 7.98%
5 Commercial Real Estate 864,464 15,492 7.11% 7.10% 915,577 16,361 7.09%
Loans
6 Consumer Loans 1,016,846 13,911 5.43% 5.45% 994,753 13,279 5.30%
7 Total Investment 1,627,793 21,906 5.38% 5.32% 1,819,151 24,062 5.29%
Securities (FTE)
8 Interest Expense Paid
9 Total Earning Assets 4,124,196 16,483 1.58% 1.80% 4,366,675 17,483 1.58%
10 Total Interest-Bearing 2,830,235 16,483 2.30% 2.60% 2,975,221 17,483 2.32%
Liabilities
11 Total Interest-Bearing 2,066,658 9,126 1.75% 1.88% 2,221,166 9,283 1.66%
Deposits
12 Interest-Bearing 546,485 515 0.37% 0.37% 593,236 486 0.33%
Transaction
13 Savings 805,321 1,636 0.81% 0.81% 896,538 1,203 0.53%
14 Time less than $100K 202,242 1,716 3.37% 3.36% 226,002 1,773 3.11%
15 Time greater than $100K 512,610 5,259 4.07% 4.61% 505,390 5,821 4.57%
16 Total Short-Term Borrowings 726,783 6,779 3.65% 4.40% 717,114 7,622 4.16%
17 Fed Funds Purchased 544,640 6,341 4.56% 5.15% 517,913 6,936 5.24%
18 Other Short-Term Funds 182,143 438 0.95% 1.18% 199,201 686 1.37%
19 Long-Term Debt 36,794 578 6.29% 6.28% 36,941 578 6.26%
20 Net Interest Income and Margin (FTE) $46,812 4.53% 4.34% $49,029 4.49%
6. Noninterest Income.
(dollars in thousands except per share amounts)
Q4'07 / Q4'07 / 12/31'07YTD/
Q4'07 Q4'06 Q4'06 Q3'07 Q3'07 12/31'07YTD 12/31'06YTD 12/31'06YTD
------------------------------------------------------------------------------------------------
1 Service Charges on Deposit $7,422 $6,990 6.2% $7,569 -1.9% $30,235 $28,414 6.4%
Accounts
2 Merchant Credit Card Income 2,817 2,652 6.2% 2,808 0.3% 10,841 9,860 9.9%
3 ATM Fees & Interchange 709 676 4.9% 723 -1.9% 2,824 2,824 -0.0%
4 Debit Card Fees 972 902 7.8% 969 0.3% 3,797 3,489 8.8%
5 Financial Services Commissions 265 331 -19.9% 383 -30.8% 1,321 1,368 -3.4%
6 Mortgage Banking Income 32 45 -28.9% 29 10.3% 124 179 -30.6%
7 Trust Fees 303 311 -2.6% 337 -10.1% 1,281 1,178 8.7%
8 Other Income 2,137 1,840 16.2% 1,826 17.0% 8,033 8,035 -0.0%
------------------------ ------------ ------------------------
9 Sub-total 14,657 13,747 6.6% 14,644 0.1% 58,456 55,347 5.6%
10 Life Insurance Gains 0 0 n/m 0 n/m 822 0 n/m
------------------------ ------------ ------------------------
11 Total Noninterest Income $14,657 $13,747 6.6% $14,644 0.1% $59,278 $55,347 7.1%
======================== ============ ========================
12 Operating Ratios:
13 Total Revenue (FTE) $61,469 $62,776 -2.1% $60,207 2.1% $244,626 $260,050 -5.9%
14 Noninterest Income / 23.8% 21.9% 24.3% 24.2% 21.3%
Revenue (FTE)
15 Service Charges / 0.89% 0.78% 0.89% 0.90% 0.78%
Deposits (annualized)
16 Total Revenue Per Share $8.35 $8.11 2.9% $8.09 3.2% $8.22 $8.33 -1.3%
(annualized)
Page 11
WESTAMERICA BANCORPORATION Public Information January 17, 2008
FINANCIAL HIGHLIGHTS
December 31, 2007
7. Noninterest Expense.
(dollars in thousands)
Q4'07 / Q4'07 / 12/31'07YTD/
Q4'07 Q4'06 Q4'06 Q3'07 Q3'07 12/31'07YTD 12/31'06YTD 12/31'06YTD
------------------------------------------------------------------------------------------------
1 Salaries & Benefits $12,366 $12,405 -0.3% $12,587 -1.8% $50,142 $52,302 -4.1%
2 Occupancy 3,386 3,227 4.9% 3,327 1.8% 13,346 13,047 2.3%
3 Equipment 934 1,174 -20.4% 1,083 -13.8% 4,302 4,949 -13.1%
4 Data Processing 2,202 1,529 44.0% 1,800 22.3% 7,069 6,097 15.9%
5 Courier 845 891 -5.2% 854 -1.1% 3,404 3,627 -6.1%
6 Postage 391 431 -9.3% 404 -3.2% 1,602 1,648 -2.8%
7 Telephone 343 365 -6.0% 342 0.3% 1,398 1,634 -14.4%
8 Professional Fees 534 614 -13.0% 451 18.4% 1,889 2,437 -22.5%
9 Stationery & Supplies 365 314 16.2% 323 13.0% 1,271 1,163 9.3%
10 Loan Expense 195 199 -2.0% 217 -10.1% 750 882 -14.9%
11 Operational Losses 234 320 -26.9% 228 2.6% 793 892 -11.1%
12 Amortization of Identifiable 893 1,016 -12.1% 893 0.0% 3,653 4,087 -10.6%
Intangibles
13 Other Operating 2,180 2,007 8.6% 2,344 -7.0% 9,471 8,959 5.7%
------------------------ ------------ ------------------------
14 Sub-total 24,868 24,492 1.5% 24,853 0.1% 99,090 101,724 -2.6%
15 VISA Litigation 2,338 0 n/m 0 n/m 2,338 0 n/m
------------------------ ------------ ------------------------
16 Total Noninterest Expense $27,206 $24,492 11.1% $24,853 9.5% $101,428 $101,724 -0.3%
======================== ============ ========================
17 Full Time Equivalent Staff 868 891 -2.6% 876 -0.9% 887 909 -2.4%
18 Average Assets / Full Time $5,250 $5,380 -2.4% $5,284 -0.6% $5,233 $5,402 -3.1%
Equivalent Staff
19 Operating Ratios:
20 FTE Revenue / Full Time $281 $280 0.5% $273 3.0% $276 $286 -3.6%
Equiv. Staff (annualized)
21 Noninterest Expense / 2.62% 2.23% 2.35% 2.41% 2.27%
Earning Assets
(annualized)
22 Noninterest Expense / 44.3% 39.0% 41.3% 41.5% 39.1%
Revenues
8. Provision for Credit Losses.
(dollars in thousands)
Q4'07 / Q4'07 / 12/31'07YTD/
Q4'07 Q4'06 Q4'06 Q3'07 Q3'07 12/31'07YTD 12/31'06YTD 12/31'06YTD
------------------------------------------------------------------------------------------------
1 Provision for Credit Losses $475 $70 578.6% $75 533.3% $700 $445 57.3%
2 Gross Loan Losses 1,162 848 37.1% 1,031 12.7% 5,681 3,622 56.8%
3 Net Loan Losses 906 78 1063.2% 610 48.5% 3,524 964 265.6%
4 Recoveries / Gross Loan Losses 22% 91% 41% 38% 73%
5 Average Total Loans $2,496,403 $2,547,524 -2.0% $2,514,685 -0.7% $2,511,763 $2,576,791 -2.5%
6 Net Loan Losses / Loans 0.14% 0.01% 0.10% 0.14% 0.04%
(annualized)
7 Provision for Credit Losses / 0.08% 0.01% 0.01% 0.03% 0.02%
Loans (annualized)
8 Provision for Credit Losses / 52.4% 89.9% 12.3% 19.9% 46.2%
Net Loan Losses
9. Credit Quality.
(dollars in thousands)
12/31/07 / 12/31/07 /
12/31/07 12/31/06 12/31/06 9/30/07 9/30/07 6/30/07 3/31/07 9/30/06
------------------------------------------------------------------------------------------------
1 Nonperforming Nonaccrual Loans $3,164 $61 n/m $3,132 1.0% $3,140 $2,341 $1,162
2 Performing Nonaccrual Loans 1,688 4,404 -61.7% 1,695 -0.4% 1,898 2,459 3,889
------------------------ ------------ ------------------------------------
3 Total Nonaccrual Loans 4,852 4,465 8.7% 4,827 0.5% 5,038 4,800 5,051
4 Accruing Loans 90+ Days 297 65 356.9% 251 18.3% 179 82 252
Past Due ------------------------ ------------ ------------------------------------
5 Total Nonperforming Loans 5,149 4,530 13.7% 5,078 1.4% 5,217 4,882 5,303
6 Repossessed Collateral 613 647 -5.3% 613 0.0% 613 647 656
7 Total Nonperforming Loans & ------------------------ ------------ ------------------------------------
8 Repossessed Collateral $5,762 $5,177 11.3% $5,691 1.2% $5,830 $5,529 $5,959
======================== ============ ====================================
9 Classified Loans $24,419 $20,180 21.0% $21,403 14.1% $22,498 $18,439 $24,111
======================== ============ ====================================
10 Allowance for Loan Losses $52,506 $55,330 -5.1% $52,938 -0.8% $53,473 $54,889 $55,338
11 Total Loans Outstanding 2,502,976 2,531,734 -1.1% 2,511,374 -0.3% 2,521,738 2,519,898 2,552,929
12 Total Assets 4,558,959 4,769,335 -4.4% 4,657,016 -2.1% 4,647,069 4,748,829 4,844,116
13 Allowance for Loan Losses / 2.10% 2.19% 2.11% 2.12% 2.18% 2.17%
Total Loans
14 Nonperforming Loans / 0.21% 0.18% 0.20% 0.21% 0.19% 0.21%
Total Loans
15 Nonperforming Loans & Repossessed
16 Collateral/Total Assets 0.13% 0.11% 0.12% 0.13% 0.12% 0.12%
17 Allowance/Nonperforming Loans 1020% 1221% 1042% 1025% 1124% 1044%
18 Allowance for Loan Losses / 215% 274% 247% 238% 298% 230%
Classified Loans
19 Classified Loans /
20 (Equity + Allowance for 5.5% 4.2% 4.7% 4.9% 3.9% 5.0%
Loan Losses)
Page 12
WESTAMERICA BANCORPORATION Public Information January 17, 2008
FINANCIAL HIGHLIGHTS
December 31, 2007
10.Capital.
(dollars in thousands, except per-share amounts)
12/31/07 / 12/31/07 /
12/31/07 12/31/06 12/31/06 9/30/07 9/30/07 6/30/07 3/31/07 9/30/06
------------------------------------------------------------------------------------------------
1 Shareholders' Equity $394,603 $424,235 -7.0% $403,651 -2.2% $407,982 $419,810 $428,732
2 Tier I Regulatory Capital 278,970 298,576 -6.6% 283,015 -1.4% 286,818 293,382 300,344
3 Total Regulatory Capital 318,089 339,114 -6.2% 322,598 -1.4% 326,582 333,658 341,207
4 Total Assets 4,558,959 4,769,335 -4.4% 4,657,016 -2.1% 4,647,069 4,748,829 4,844,116
5 Risk-Adjusted Assets 2,986,737 3,057,054 -2.3% 3,017,668 -1.0% 3,014,947 3,043,445 3,094,942
6 Shareholders' Equity / 8.66% 8.90% 8.67% 8.78% 8.84% 8.85%
Total Assets
7 Shareholders' Equity / 15.77% 16.76% 16.07% 16.18% 16.66% 16.79%
Total Loans
8 Tier I Capital /Total Assets 6.12% 6.26% 6.08% 6.17% 6.18% 6.20%
9 Tier I Capital / Risk-Adjusted 9.34% 9.77% 9.38% 9.51% 9.64% 9.70%
Assets
10 Total Capital / Risk-Adjusted 10.65% 11.09% 10.69% 10.83% 10.96% 11.02%
Assets
11 Shares Outstanding 29,018 30,547 -5.0% 29,378 -1.2% 29,732 30,158 30,910
12 Book Value Per Share $13.60 $13.89 -2.1% $13.74 -1.0% $13.72 $13.92 $13.87
13 Market Value Per Share $44.55 $50.63 -12.0% $49.81 -10.6% $44.24 $48.17 $50.51
14 Share Repurchase Programs
(shares in thousands)
Q4'07 / Q4'07 /
Q4'07 Q4'06 Q4'06 Q3'07 Q3'07 12/31'07YTD 12/31'06YTD 12/31'06YTD
------------------------------------------------------------------------------------------------
15 Total Shares Repurchased / 491 410 19.5% 492 -0.3% 1,886 1,767 6.8%
Canceled
16 Average Repurchase Price $44.88 $49.49 -9.3% $43.90 2.2% $46.18 $50.40 -8.4%
17 Net Shares Repurchased 360 363 -0.8% 354 1.8% 1,529 1,335 14.5%
11.Period-End Balance Sheets.
(unaudited, dollars in thousands)
12/31/07 / 12/31/07 /
12/31/07 12/31/06 12/31/06 9/30/07 9/30/07 6/30/07 3/31/07 9/30/06
------------------------------------------------------------------------------------------------
1 Assets:
2 Cash and Money Market Assets $210,097 $185,009 13.6% $219,960 -4.5% $164,390 $208,734 $192,175
3 Investment Securities 532,821 615,525 -13.4% 570,086 -6.5% 582,959 602,220 617,736
Available For Sale
4 Investment Securities 1,045,288 1,165,092 -10.3% 1,081,009 -3.3% 1,104,132 1,142,382 1,211,589
Held to Maturity
5 Loans, gross 2,502,976 2,531,734 -1.1% 2,511,374 -0.3% 2,521,738 2,519,898 2,552,929
------------------------ ------------ ------------------------------------
6 Allowance For Loan Losses (52,506) (55,330) -5.1% (52,938) -0.8% (53,473) (54,889) (55,338)
------------------------ ------------ ------------------------------------
7 Loans, net 2,450,470 2,476,404 -1.0% 2,458,436 -0.3% 2,468,265 2,465,009 2,497,591
8 Premises and Equipment 28,380 30,188 -6.0% 28,666 -1.0% 29,169 29,643 30,979
9 Identifiable Intangible 18,429 22,082 -16.5% 19,322 -4.6% 20,215 21,108 23,098
Assets
10 Goodwill 121,719 121,719 0.0% 121,719 0.0% 121,719 121,719 121,719
11 Interest Receivable and 151,755 153,316 -1.0% 157,818 -3.8% 156,220 158,014 149,229
Other Assets ------------------------ ------------ ------------------------------------
12 Total Assets $4,558,959 $4,769,335 -4.4% $4,657,016 -2.1% $4,647,069 $4,748,829 $4,844,116
======================== ============ ====================================
13 Liabilities and Shareholders' Equity:
14 Deposits:
15 Noninterest Bearing $1,245,500 $1,341,019 -7.1% $1,251,572 -0.5% $1,266,941 $1,293,920 $1,298,519
16 Interest-Bearing 544,411 588,668 -7.5% 549,263 -0.9% 554,036 584,026 581,705
Transaction
17 Savings 760,006 865,268 -12.2% 806,797 -5.8% 809,791 851,800 926,262
18 Time 714,873 721,779 -1.0% 732,582 -2.4% 704,264 714,626 744,645
------------------------ ------------ ------------------------------------
19 Total Deposits 3,264,790 3,516,734 -7.2% 3,340,214 -2.3% 3,335,032 3,444,372 3,551,131
------------------------ ------------ ------------------------------------
20 Short-Term Borrowed Funds 798,599 731,977 9.1% 815,101 -2.0% 809,261 776,781 768,841
21 Debt Financing and 36,773 36,920 -0.4% 36,809 -0.1% 36,846 36,883 36,956
Notes Payable
22 Liability For Interest, 64,194 59,469 7.9% 61,241 4.8% 57,948 70,983 58,456
Taxes and Other ------------------------ ------------ ------------------------------------
23 Total Liabilities 4,164,356 4,345,100 -4.2% 4,253,365 -2.1% 4,239,087 4,329,019 4,415,384
------------------------ ------------ ------------------------------------
24 Shareholders' Equity:
25 Paid-In Capital $337,201 $344,263 -2.1% $337,627 -0.1% $338,290 $341,724 $346,603
26 Accumulated Other Comprehensive
27 (Loss) Income (4,520) 1,850 -344.3% (412) 997.2% (777) 3,593 1,805
28 Retained Earnings 61,922 78,122 -20.7% 66,436 -6.8% 70,469 74,493 80,324
------------------------ ------------ ------------------------------------
29 Total Shareholders' Equity 394,603 424,235 -7.0% 403,651 -2.2% 407,982 419,810 428,732
------------------------ ------------ ------------------------------------
30 Total Liabilities and $4,558,959 $4,769,335 -4.4% $4,657,016 -2.1% $4,647,069 $4,748,829 $4,844,116
Shareholders' Equity ======================== ============ ====================================
Page 13
WESTAMERICA BANCORPORATION Public Information January 17, 2008
FINANCIAL HIGHLIGHTS
December 31, 2007
12.Income Statements.
(unaudited, dollars in thousands, except per-share amounts)
Q4'07 / Q4'07 /
Q4'07 Q4'06 Q4'06 Q3'07 Q3'07 12/31'07YTD 12/31'06YTD 12/31'06YTD
------------------------------------------------------------------------------------------------
1 Interest and Fee Income:
2 Loans $40,214 $41,198 -2.4% $41,134 -2.2% $162,242 $164,756 -1.5%
3 Money Market Assets and 3 2 n/m 2 n/m 7 5 n/m
Funds Sold
4 Investment Securities 6,528 7,185 -9.1% 6,713 -2.8% 27,205 29,363 -7.4%
Available For Sale
5 Investment Securities 11,116 12,421 -10.5% 11,448 -2.9% 46,418 52,391 -11.4%
Held to Maturity ------------------------ ------------ ------------------------
6 Total Interest Income 57,861 60,806 -4.8% 59,297 -2.4% 235,872 246,515 -4.3%
------------------------ ------------ ------------------------
7 Interest Expense:
8 Transaction Deposits 515 486 6.0% 526 -2.1% 2,093 1,771 18.2%
9 Savings Deposits 1,636 1,203 36.0% 1,649 -0.8% 6,144 4,198 46.4%
10 Time Deposits 6,975 7,594 -8.2% 7,791 -10.5% 29,612 27,578 7.4%
11 Short-Term Borrowed Funds 6,779 7,622 -11.1% 8,601 -21.2% 32,393 29,389 10.2%
12 Debt Financing and 578 578 -0.0% 578 -0.0% 2,313 2,332 -0.8%
Notes Payable ------------------------ ------------ ------------------------
13 Total Interest Expense 16,483 17,483 -5.7% 19,145 -13.9% 72,555 65,268 11.2%
------------------------ ------------ ------------------------
14 Net Interest Income 41,378 43,323 -4.5% 40,152 3.1% 163,317 181,247 -9.9%
------------------------ ------------ ------------------------
15 Provision for Credit Losses 475 70 578.6% 75 533.3% 700 445 57.3%
------------------------ ------------ ------------------------
16 Noninterest Income:
17 Service Charges on 7,422 6,990 6.2% 7,569 -1.9% 30,235 28,414 6.4%
Deposit Accounts
18 Merchant Credit Card 2,817 2,652 6.2% 2,808 0.3% 10,841 9,860 9.9%
19 ATM Fees & Interchange 709 676 4.9% 723 -1.9% 2,824 2,824 -0.0%
20 Debit Card Fees 972 902 7.8% 969 0.3% 3,797 3,489 8.8%
21 Financial Services 265 331 -19.9% 383 -30.8% 1,321 1,368 -3.4%
Commissions
22 Mortgage Banking 32 45 -28.9% 29 10.3% 124 179 -30.6%
23 Trust Fees 303 311 -2.6% 337 -10.1% 1,281 1,178 8.7%
24 Life Insurance Gains 0 0 n/m 0 n/m 822 0 n/m
25 Other 2,137 1,840 16.2% 1,826 17.0% 8,033 8,035 -0.0%
------------------------ ------------ ------------------------
26 Total Noninterest Income 14,657 13,747 6.6% 14,644 0.1% 59,278 55,347 7.1%
------------------------ ------------ ------------------------
27 Noninterest Expense:
28 Salaries and Related 12,366 12,405 -0.3% 12,587 -1.8% 50,142 52,302 -4.1%
Benefits
29 Occupancy 3,386 3,227 4.9% 3,327 1.8% 13,346 13,047 2.3%
30 Equipment 934 1,174 -20.4% 1,083 -13.8% 4,302 4,949 -13.1%
31 Data Processing 2,202 1,529 44.0% 1,800 22.3% 7,069 6,097 15.9%
32 Professional Fees 534 614 -13.0% 451 18.4% 1,889 2,437 -22.5%
33 VISA Litigation 2,338 0 n/m 0 n/m 2,338 0 n/m
34 Other 5,446 5,543 -1.7% 5,605 -2.8% 22,342 22,892 -2.4%
------------------------ ------------ ------------------------
35 Total Noninterest Expense 27,206 24,492 11.1% 24,853 9.5% 101,428 101,724 -0.3%
------------------------ ------------ ------------------------
36 Income Before Income Taxes 28,354 32,508 -12.8% 29,868 -5.1% 120,467 134,425 -10.4%
37 Provision for income taxes 6,522 8,550 -23.7% 7,846 -16.9% 30,691 35,619 -13.8%
------------------------ ------------ ------------------------
38 Net Income $21,832 $23,958 -8.9% $22,022 -0.9% $89,776 $98,806 -9.1%
======================== ============ ========================
39 Average Shares Outstanding 29,213 30,699 -4.8% 29,532 -1.1% 29,753 31,202 -4.6%
40 Diluted Average Shares 29,575 31,204 -5.2% 29,915 -1.1% 30,165 31,739 -5.0%
Outstanding
41 Per Share Data:
42 Basic Earnings $0.75 $0.78 -4.2% $0.75 0.0% $3.02 $3.17 -4.7%
43 Diluted Earnings 0.74 0.77 -3.9% 0.74 0.0% 2.98 3.11 -4.4%
44 Dividends Paid 0.34 0.34 0.0% 0.34 0.0% 1.36 1.30 4.6%