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 19, 2006
--------------
WESTAMERICA BANCORPORATION
--------------------------
(Exact Name of Registrant as Specified in Its Charter)
CALIFORNIA
----------
(State or Other Jurisdiction of Incorporation)
001-9383 94-2156203
-------- ----------
(Commission File Number) (IRS Employer Identification No.)
1108 Fifth Avenue, San Rafael, California 94901
----------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
(707) 863-6000
--------------
(Registrant's Telephone Number, Including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions:
[] Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
[] Soliciting material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)
[] Pre-commencement communications pursuant to Rule 14d-2(b) under
the Exchange Act (17 CFR 240.14d-2(b))
[] Pre-commencement communications pursuant to Rule 13e-4(c) under
the Exchange Act (17 CFR 240.13e-4c))
Page 2
Exhibits
---------
99.1 Press release dated April 18, 2006
Item 2.02: Results of Operations and Financial Condition
----------------------------------------------------------
On April 18, 2006 Westamerica Bancorporation announced their
quarterly earnings for the first quarter of 2006. 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
April 19, 2006
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INDEX TO EXHIBITS
-----------------
Sequentially
Exhibit No. Description Number Page
----------- ------------------------- -------------
(99.1) Press release dated 5-16
April 18, 2006
Page 5
FOR IMMEDIATE RELEASE
April 18, 2006
WESTAMERICA BANCORPORATION REPORTS FIRST QUARTER 2006 RESULTS
San Rafael, CA: Westamerica Bancorporation (NASDAQ: WABC), parent company of
Westamerica Bank, today reported quarterly net income for the first quarter of
2006 of $26.1 million or $0.81 diluted earnings per share compared to $22.3
million or $0.68 diluted earnings per share for the first quarter of 2005. Prior
year results reflect the retrospective adoption of Statement of Financial
Accounting Standard 123 (revised), which requires recognition of compensation
expense for equity awards to employees. First quarter 2005 results include one
month of operating results following the March 1, 2005 acquisition of Redwood
Empire Bancorp. First quarter 2005 results also include a loss on sale of
available-for-sale investment securities totaling $2.8 million, net of tax, or
$0.08 per diluted share outstanding.
"We are very pleased with first quarter results, given the difficult interest
rate environment. Profitability levels remain high with first quarter 2006
return on equity of 24.9 percent and return on assets of 2.10 percent," said
Chairman, President and CEO David Payne. "Our low cost of funds, low credit
costs, improved fee income, and low cost structure result in net income equal to
38.6 percent of revenues," added Payne.
Page 6
Net interest income on a fully taxable equivalent (FTE) basis was $54.0 million
in the first quarter of 2006, compared to $55.8 million in the prior quarter and
to $55.0 million in the first quarter of 2005. The first quarter 2006 net
interest margin on a fully taxable equivalent basis was 4.73 percent, compared
to 4.80 percent in the prior quarter and 4.90 percent for the first quarter of
2005.
The provision for loan losses was $150 thousand for the first quarter of 2006,
compared to $150 thousand in the previous quarter, and $300 thousand in the
first quarter of 2005. Net loan losses totaled $231 thousand or 0.04 percent of
average loans (annualized) in the first quarter of 2006.
Noninterest income in the first quarter of 2006 totaled $13.6 million compared
to $7.2 million in the first quarter 2005, which included a $4.9 million loss on
sale of investment securities. Merchant credit card income increased $1.1
million in the first quarter 2006 compared to the year ago period primarily due
to the acquired merchant card servicing business of Redwood Empire Bancorp on
March 1, 2005. Debit card fees were also higher than the year ago period due to
higher activity levels.
Page 7
Noninterest expense for the first quarter of 2006 totaled $25.5 million, $1.5
million lower than the previous quarter, and $400 thousand lower than the first
quarter of 2005. The decrease from the prior quarter is primarily due to lower
personnel costs, professional fees, and operational losses. The decrease from
the first quarter of 2005 is primarily due to lower personnel costs and
professional fees, offset in part by higher amortization of intangible assets
and occupancy costs. The first quarter 2006 efficiency ratio (expenses/revenues)
was 37.7 percent compared to 38.4 percent in the prior quarter.
At March 31, 2006, shareholders' equity was $429 million and the equity-to-asset
ratio was 8.5 percent. During the first quarter of 2006 repurchases of the
Company's common stock totaled approximately 338 thousand shares, net of shares
issued.
At March 31, 2006, the Company's assets totaled $5.1 billion and total loans
outstanding totaled $2.6 billion.
Westamerica Bancorporation, through its wholly owned subsidiary Westamerica
Bank, currently operates 87 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
Page 8
FORWARD-LOOKING INFORMATION:
The following appears in accordance with the Private Securities Litigation
Reform Act of 1995:
This press release may contain forward-looking statements about the Company,
including descriptions of plans or objectives of its management for future
operations, products or services, and forecasts of its revenues, earnings or
other measures of economic performance. Forward-looking statements can be
identified by the fact that they do not relate strictly to historical or current
facts. They often include the words "believe," "expect," "anticipate,"
"intend," "plan," "estimate," or words of similar meaning, or future or
conditional verbs such as "will," "would," "should," "could," or "may."
Forward-looking statements, by their nature, are subject to risks and
uncertainties. A number of factors - many of which are beyond the Company's
control - could cause actual conditions, events or results to differ
significantly from those described in the forward-looking statements. The
Company's most recent annual and quarterly reports filed with the Securities and
Exchange Commission, including the Company's Form 10-K for the year ended
December 31, 2005, 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.
#####
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WESTAMERICA BANCORPORATION Public Information April 18, 2006
FINANCIAL HIGHLIGHTS
March 31, 2006
1. Net Income Summary.
(dollars in thousands except per-share data)
Q1'06 / Q1'06 / 3/31'06YTD /
Q1'06 Q1'05 Q1'05 Q4'05 Q4'05 3/31'06YTD 3/31'05YTD 3/31'05YTD
---------------------------------------------------------------------------------------
1. Net Interest Income $53,974 $55,019 -1.9% $55,830 -3.3% $53,974 $55,019 -1.9%
(Fully Taxable Equivalent)
2. Provision for Credit Losses 150 300 -50.0% 150 0.0% 150 300 -50.0%
3. Noninterest Income:
4. Investment Securities 0 (4,903) n/m 0 n/m 0 (4,903) -100.0%
(Loss/Impairment) Gains
5. Other 13,639 12,098 12.7% 14,427 -5.5% 13,639 12,098 12.7%
----------------------- ------------ -----------------------
6. Total Noninterest Income 13,639 7,195 89.6% 14,427 -5.5% 13,639 7,195 89.6%
----------------------- ------------ -----------------------
7. Noninterest Expense 25,483 25,863 -1.5% 26,980 -5.5% 25,483 25,863 -1.5%
8. Income Tax Provision (FTE) 15,863 13,741 15.4% 16,003 -0.9% 15,863 13,741 15.4%
----------------------- ------------ -----------------------
9. Net Income $26,117 $22,310 17.1% $27,124 -3.7% $26,117 $22,310 17.1%
======================= ============ =======================
10.Average Shares Outstanding 31,688 32,022 -1.0% 32,029 -1.1% 31,688 32,022 -1.0%
11.Diluted Average Shares 32,276 32,680 -1.2% 32,572 -0.9% 32,276 32,680 -1.2%
Outstanding
12.Operating Ratios:
13. Basic Earnings Per Share $0.82 $0.70 18.3% $0.85 -2.7% $0.82 $0.70 18.3%
14. Diluted Earnings Per Share 0.81 0.68 18.5% 0.83 -2.8% 0.81 0.68 18.5%
15. Return On Assets (annualized) 2.10% 1.86% 2.11% 2.10% 1.86%
16. Return On Equity (annualized) 24.9% 24.2% 25.5% 24.9% 24.2%
17. Net Interest Margin (FTE) 4.73% 4.90% 4.80% 4.73% 4.90%
18. Efficiency Ratio (FTE) 37.7% 41.6% 38.4% 37.7% 41.6%
19.Dividends Paid Per Share $0.32 $0.30 6.7% $0.32 0.0% $0.32 $0.30 6.7%
20.Dividend Payout Ratio 40% 44% 38% 40% 44%
2. Net Interest Income.
(dollars in thousands)
Q1'06 / Q1'06 / 3/31'06YTD /
Q1'06 Q1'05 Q1'05 Q4'05 Q4'05 3/31'06YTD 3/31'05YTD 3/31'05YTD
---------------------------------------------------------------------------------------
1. Interest and Fee Income (FTE) $68,486 $63,376 8.1% $68,349 0.2% $68,486 $63,376 8.1%
2. Interest Expense 14,512 8,357 73.6% 12,519 15.9% 14,512 8,357 73.6%
----------------------- ------------ -----------------------
3. Net Interest Income (FTE) $53,974 $55,019 -1.9% $55,830 -3.3% $53,974 $55,019 -1.9%
======================= ============ =======================
4. Average Earning Assets $4,606,178 $4,518,930 1.9%$4,639,319 -0.7%$4,606,178 $4,518,930 1.9%
5. Average Interest-Bearing 3,205,366 3,132,418 2.3% 3,168,720 1.2% 3,205,366 3,132,418 2.3%
Liabilities
6. Yield on Earning Assets (FTE) 6.00% 5.65% 5.87% 6.00% 5.65%
7. Cost of Funds 1.27% 0.75% 1.07% 1.27% 0.75%
8. Net Interest Margin (FTE) 4.73% 4.90% 4.80% 4.73% 4.90%
9. Interest Expense/Interest- 1.82% 1.08% 1.56% 1.82% 1.08%
Bearing Liabilities
10.Net Interest Spread (FTE) 4.18% 4.57% 4.31% 4.18% 4.57%
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WESTAMERICA BANCORPORATION Public Information April 18, 2006
3. Loans & Other Earning Assets.
(average volume, dollars in thousands)
Q1'06 / Q1'06 / 3/31'06YTD /
Q1'06 Q1'05 Q1'05 Q4'05 Q4'05 3/31'06YTD 3/31'05YTD 3/31'05YTD
---------------------------------------------------------------------------------------
1. Total Assets $5,054,256 $4,864,633 3.9%$5,089,078 -0.7%$5,054,256 $4,864,633 3.9%
2. Total Earning Assets 4,606,178 4,518,930 1.9% 4,639,319 -0.7% 4,606,178 4,518,930 1.9%
3. Total Loans 2,615,949 2,374,710 10.2% 2,616,813 -0.0% 2,615,949 2,374,710 10.2%
4. Commercial Loans 690,773 642,461 7.5% 698,375 -1.1% 690,773 642,461 7.5%
5. Commercial Real Estate Loans 922,838 809,807 14.0% 921,141 0.2% 922,838 809,807 14.0%
6. Consumer Loans 1,002,338 922,442 8.7% 997,297 0.5% 1,002,338 922,442 8.7%
7. Total Investment Securities 1,990,229 2,144,220 -7.2% 2,022,506 -1.6% 1,990,229 2,144,220 -7.2%
8. Available For Sale 665,948 854,585 -22.1% 670,499 -0.7% 665,948 854,585 -22.1%
(Market Value)
9. Held To Maturity 1,324,281 1,289,635 2.7% 1,352,007 -2.1% 1,324,281 1,289,635 2.7%
10. HTM Unrealized (Loss) (25,025) (13,664) n/m (13,434) n/m (25,025) (13,664) n/m
at Period-End
11.Loans / Deposits 69.1% 63.9% 67.1% 69.1% 63.9%
4. Deposits & Other Interest-Bearing Liabilities.
(average volume, dollars in thousands)
Q1'06 / Q1'06 / 3/31'06YTD /
Q1'06 Q1'05 Q1'05 Q4'05 Q4'05 3/31'06YTD 3/31'05YTD 3/31'05YTD
---------------------------------------------------------------------------------------
1. Total Deposits $3,784,436 $3,716,554 1.8%$3,898,859 -2.9%$3,784,436 $3,716,554 1.8%
2. Noninterest Demand 1,355,501 1,314,485 3.1% 1,435,193 -5.6% 1,355,501 1,314,485 3.1%
3. Interest-Bearing Transaction 651,547 610,152 6.8% 655,109 -0.5% 651,547 610,152 6.8%
4. Savings 1,022,087 1,114,421 -8.3% 1,073,971 -4.8% 1,022,087 1,114,421 -8.3%
5. Other Time >$100K 501,299 406,034 23.5% 470,016 6.7% 501,299 406,034 23.5%
6. Other Time < $100K 254,002 271,462 -6.4% 264,570 -4.0% 254,002 271,462 -6.4%
7. Total Short-Term Borrowings 738,308 703,468 5.0% 664,752 11.1% 738,308 703,468 5.0%
8. Fed Funds Purchased 548,495 551,080 -0.5% 480,649 14.1% 548,495 551,080 -0.5%
9. Other Short-Term Funds 189,813 152,388 24.6% 184,103 3.1% 189,813 152,388 24.6%
10.Long-Term Debt 38,124 26,881 41.8% 40,302 -5.4% 38,124 26,881 41.8%
11.Shareholders' Equity 424,832 373,627 13.7% 421,536 0.8% 424,832 373,627 13.7%
12.Demand Deposits / Total Deposits 35.8% 35.4% 36.8% 35.8% 35.4%
13.Transaction & Savings Deposits / 80.0% 81.8% 81.2% 80.0% 81.8%
Total Deposits
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WESTAMERICA BANCORPORATION Public Information April 18, 2006
5. Interest Yields Earned & Rates Paid.
(dollars in thousands)
Q1'06 Q4'05 Q1'05
---------------------------------- ----------------------------------
Average Income/ Yield/ Yield/ Average Income/ Yield/
Volume Expense Rate Rate Volume Expense Rate
----------------------------------------------------------------------------
1. Interest & Fees Income Earned
2. Total Earning Assets (FTE) $4,606,178 $68,486 6.00% 5.87%$4,518,930 $63,376 5.65%
3. Total Loans (FTE) 2,615,949 42,484 6.59% 6.36% 2,374,710 36,336 6.21%
4. Commercial Loans (FTE) 690,773 13,154 7.59% 7.32% 642,461 10,610 6.66%
5. Commercial Real Estate Loans 922,838 16,815 7.39% 7.14% 809,807 14,753 7.39%
6. Consumer Loans 1,002,338 12,515 5.06% 5.03% 922,442 10,973 4.82%
7. Total Investment Securities 1,990,229 26,002 5.23% 5.22% 2,144,220 27,040 5.04%
(FTE)
8. Interest Expense Paid
9. Total Earning Assets 4,606,178 14,512 1.27% 1.07% 4,518,930 8,357 0.75%
10. Total Interest-Bearing 3,205,366 14,512 1.82% 1.56% 3,132,418 8,357 1.08%
Liabilities
11. Total Interest-Bearing 2,428,935 7,242 1.21% 1.06% 2,402,069 4,357 0.74%
Deposits
12. Interest-Bearing 651,547 428 0.27% 0.28% 610,152 263 0.17%
Transaction
13. Savings 1,022,087 898 0.36% 0.35% 1,114,421 863 0.31%
14. Other Time < $100K 254,002 1,461 2.33% 2.17% 271,462 1,238 1.85%
15. Other Time > $100K 501,299 4,456 3.60% 3.15% 406,034 1,993 1.99%
16. Total Short-Term Borrowings 738,308 6,672 3.62% 3.12% 703,468 3,570 2.03%
17. Fed Funds Purchased 548,495 6,090 4.44% 3.98% 551,080 3,409 2.47%
18. Other Short-Term Funds 189,813 582 1.24% 0.88% 152,388 161 0.43%
19. Long-Term Debt 38,124 598 6.27% 6.32% 26,881 430 6.40%
20.Net Interest Income and Margin (FTE) $53,974 4.73% 4.80% $55,019 4.90%
6. Noninterest Income.
(dollars in thousands, except per-share data)
Q1'06 / Q1'06 / 3/31'06YTD /
Q1'06 Q1'05 Q1'05 Q4'05 Q4'05 3/31'06YTD 3/31'05YTD 3/31'05YTD
---------------------------------------------------------------------------------------
1. Service Charges on Deposit $7,083 $6,927 2.3% $7,202 -1.6% $7,083 $6,927 2.3%
Accounts
2. Merchant Credit Card Income 2,385 1,298 83.8% 2,751 -13.3% 2,385 1,298 83.8%
3. ATM Fees & Interchange 678 624 8.6% 653 3.8% 678 624 8.6%
4. Debit Card Fees 828 697 18.8% 865 -4.2% 828 697 18.8%
5. Financial Services Fees 298 279 6.8% 380 -21.6% 298 279 6.8%
6. Mortgage Banking Income 50 100 -50.5% 62 -20.1% 50 100 -50.5%
7. Trust Fees 282 273 3.3% 275 2.5% 282 273 3.3%
8. Other Income 2,035 1,900 7.1% 2,239 -9.1% 2,035 1,900 7.1%
----------------------- ------------ -----------------------
9. Sub-total 13,639 12,098 12.7% 14,427 -5.5% 13,639 12,098 12.7%
10.Gains on Sales of Real Property 0 0 n/m 0 n/m 0 0 n/m
11.Investment Securities 0 (4,903) n/m 0 n/m 0 (4,903) -100.0%
Gains (Losses) ----------------------- ------------ -----------------------
12.Total Noninterest Income $13,639 $7,195 89.6% $14,427 -5.5% $13,639 $7,195 89.6%
======================= ============ =======================
13.Operating Ratios:
14. Total Revenue (FTE) $67,614 $62,214 8.7% $70,257 -3.8% $67,614 $62,214 8.7%
15. Noninterest Income / 20.2% 11.6% 20.5% 20.2% 11.6%
Revenue (FTE)
16. Service Charges / 0.76% 0.76% 0.73% 0.76% 0.76%
Deposits (annualized)
17. Total Revenue Per Share $8.65 $7.88 9.8% $8.70 -0.6% $8.65 $7.88 9.8%
(annualized)
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WESTAMERICA BANCORPORATION Public Information April 18, 2006
7. Noninterest Expense.
(dollars in thousands)
Q1'06 / Q1'06 / 3/31'06YTD /
Q1'06 Q1'05 Q1'05 Q4'05 Q4'05 3/31'06YTD 3/31'05YTD 3/31'05YTD
---------------------------------------------------------------------------------------
1. Salaries & Benefits $13,258 $13,883 -4.5% $13,867 -4.4% $13,258 $13,883 -4.5%
2. Occupancy 3,232 2,952 9.5% 3,196 1.1% 3,232 2,952 9.5%
3. Equipment 1,266 1,230 2.9% 1,321 -4.1% 1,266 1,230 2.9%
4. Data Processing 1,534 1,548 -0.9% 1,524 0.7% 1,534 1,548 -0.9%
5. Courier 922 926 -0.4% 952 -3.2% 922 926 -0.4%
6. Postage 410 422 -2.8% 441 -7.0% 410 422 -2.8%
7. Telephone 432 528 -18.2% 497 -13.1% 432 528 -18.2%
8. Professional Fees 457 720 -36.5% 599 -23.7% 457 720 -36.5%
9. Stationery & Supplies 270 348 -22.5% 314 -14.2% 270 348 -22.5%
10.Loan Expense 195 204 -4.6% 200 -2.7% 195 204 -4.6%
12.Operational Losses 188 190 -0.8% 303 -37.8% 188 190 -0.8%
13.Amortization of Identifiable 1,040 405 n/m 1,064 -2.3% 1,040 405 n/m
Intangibles
14.Other Operating 2,279 2,507 -9.1% 2,702 -15.6% 2,279 2,507 -9.1%
----------------------- ------------ -----------------------
15.Total Noninterest Expense $25,483 $25,863 -1.5% $26,980 -5.5% $25,483 $25,863 -1.5%
======================= ============ =======================
16.Full Time Equivalent Staff 939 963 -2.5% 945 -0.6% 939 963 -2.5%
17.Average Assets / $5,383 $5,052 6.6% $5,385 -0.0% $5,383 $5,052 6.6%
Full Time Equivalent Staff
18.Operating Ratios:
19. FTE Revenue / Full Time $292 $262 11.5% $295 -1.0% $292 $262 11.5%
Equivalent Staff
(annualized)
20. Noninterest Expense / 2.24% 2.32% 2.31% 2.24% 2.32%
Earning Assets
(annualized)
21. Noninterest Expense / 37.7% 41.6% 38.4% 37.7% 41.6%
Revenues
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WESTAMERICA BANCORPORATION Public Information April 18, 2006
8. Provision for Credit Losses.
(dollars in thousands)
Q1'06 / Q1'06 / 3/31'06YTD /
Q1'06 Q1'05 Q1'05 Q4'05 Q4'05 3/31'06YTD 3/31'05YTD 3/31'05YTD
---------------------------------------------------------------------------------------
1. Provision for Credit Losses $150 $300 -50.0% $150 0.0% $150 $300 -50.0%
2. Gross Loan Losses 1,118 599 86.7% 701 59.6% 1,118 599 86.7%
3. Net Loan Losses 231 (194) -218.9% 287 -19.6% 231 (194) -218.9%
4. Recoveries / Gross Loan Losses 79% 132% 59% 79% 132%
5. Average Total Loans $2,615,949 $2,374,710 10.2%$2,616,813 -0.0%$2,615,949 $2,374,710 10.2%
6. Net Loan Losses / Loans 0.04% -0.03% 0.04% 0.04% -0.03%
(annualized)
7. Provision for Credit Losses / 0.02% 0.05% 0.02% 0.02% 0.05%
Loans (annualized)
8. Provision for Credit Losses / 65.0% -154.6% 52.3% 65.0% -154.6%
Net Loan Losses
9. Credit Quality.
(dollars in thousands)
3/31/06 / 3/31/06 /
3/31/06 3/31/05 3/31/05 12/31/05 12/31/05 9/30/05 6/30/05 12/31/04
---------------------------------------------------------------------------------------
1. Nonperforming Nonaccrual Loans $2,993 $1,766 69.5% $2,068 44.7% $2,292 $1,560 $2,970
2. Performing Nonaccrual Loans 3,232 6,550 -50.7% 4,256 -24.1% 4,514 6,072 4,071
----------------------- ------------ ----------------------------------
3. Total Nonaccrual Loans 6,225 8,316 -25.1% 6,324 -1.6% 6,806 7,632 7,041
4. Accruing Loans 90+ Days Past Due 29 107 n/m 162 n/m 1,334 84 10
----------------------- ------------ ----------------------------------
5. Total Nonperforming Loans 6,254 8,423 -25.8% 6,486 -3.6% 8,140 7,716 7,051
6. Repossessed Collateral 0 0 n/m 0 n/m 0 40 0
7. Total Nonperforming Loans & ----------------------- ------------ ----------------------------------
8. Repossessed Collateral $6,254 $8,423 -25.8% $6,486 -3.6% $8,140 $7,756 $7,051
======================= ============ ==================================
9. Classified Loans $28,878 $35,258 -18.1% $29,997 -3.7% $36,656 $37,615 $19,225
======================= ============ ==================================
10.Allowance for Loan Losses $55,768 $59,859 -6.8% $55,849 -0.1% $59,674 $59,862 $54,152
11.Total Loans Outstanding 2,639,968 2,708,052 -2.5% 2,672,221 -1.2% 2,675,907 2,687,566 2,300,230
12.Total Assets 5,055,553 5,200,460 -2.8% 5,157,559 -2.0% 5,161,472 5,199,404 4,745,320
13.Allowance for Loan Losses / 2.11% 2.21% 2.09% 2.23% 2.23% 2.35%
Total Loans
14.Nonperforming Loans / Total Loans 0.24% 0.31% 0.24% 0.30% 0.29% 0.31%
15.Nonperforming Loans & Repossessed
16. Collateral / Total Assets 0.12% 0.16% 0.13% 0.16% 0.15% 0.15%
17.Allowance / Nonperforming Loans 892% 711% 861% 733% 776% 768%
18.Allowance for Loan Losses / 193% 170% 186% 163% 159% 282%
/ Classified Loans
19.Classified Loans /
20. (Equity + Allowance 6.0% 7.0% 6.1% 7.3% 7.4% 4.6%
for Loan Losses)
Page 14
WESTAMERICA BANCORPORATION Public Information April 18, 2006
10.Capital.
(dollars in thousands, except per-share amounts)
3/31/06 / 3/31/06 /
3/31/06 3/31/05 3/31/05 12/31/05 12/31/05 9/30/05 6/30/05 12/31/04
---------------------------------------------------------------------------------------
1. Shareholders' Equity $429,372 $445,924 -3.7% $435,064 -1.3% $440,405 $447,928 $366,661
2. Tier I Regulatory Capital 303,344 297,791 1.9% 296,746 2.2% 297,896 299,003 327,070
3. Total Regulatory Capital 345,786 342,146 1.1% 339,881 1.7% 341,147 342,967 367,333
4. Total Assets 5,055,553 5,200,460 -2.8% 5,157,559 -2.0% 5,161,472 5,199,404 4,745,320
5. Risk-Adjusted Assets 3,222,355 3,329,316 -3.1% 3,267,226 -1.3% 3,275,611 3,307,055 2,948,797
6. Shareholders' Equity / 8.49% 8.57% 8.44% 8.53% 8.61% 7.73%
Total Assets
7. Shareholders' Equity / 16.26% 16.47% 16.28% 16.46% 16.67% 15.94%
Total Loans
8. Tier I Capital / Total Assets 6.00% 5.73% 5.75% 5.77% 5.75% 6.89%
9. Tier I Capital / 9.41% 8.94% 9.08% 9.09% 9.04% 11.09%
Risk-Adjusted Assets
10.Total Capital / 10.73% 10.28% 10.40% 10.41% 10.37% 12.46%
Risk-Adjusted Assets
11.Shares Outstanding 31,544 32,939 -4.2% 31,882 -1.1% 32,198 32,593 31,640
12.Book Value Per Share $13.61 $13.54 0.5% $13.65 -0.2% $13.68 $13.74 $11.59
13.Market Value Per Share 51.92 51.77 0.3% 53.07 -2.2% 51.65 52.81 58.31
14.Share Repurchase Programs
(shares in thousands)
Q1'06 / Q1'06 / 3/31'06YTD /
Q1'06 Q1'05 Q1'05 Q4'05 Q4'05 3/31'06YTD 3/31'05YTD 3/31'05YTD
---------------------------------------------------------------------------------------
15.Total Shares Repurchased / 429 373 15.1% 500 -14.1% 429 373 15.1%
Canceled
16. Average Repurchase Price $53.62 $54.59 -1.8% $52.91 1.3% $53.62 $54.59 -1.8%
17.Net Shares Repurchased (Issued) 338 (1,299) n/m 316 n/m 338 (1,299) n/m
Page 15
WESTAMERICA BANCORPORATION Public Information April 18, 2006
11.Period-End Balance Sheets.
(dollars in thousands)
3/31/06 / 3/31/06 /
3/31/06 3/31/05 3/31/05 12/31/05 12/31/05 9/30/05 6/30/05 12/31/04
---------------------------------------------------------------------------------------
1. Assets:
2. Cash and Money Market Assets $188,481 $168,881 11.6% $209,807 -10.2% $193,760 $195,289 $126,687
3. Investment Securities 642,996 719,097 -10.6% 662,388 -2.9% 660,630 691,609 931,710
Available For Sale
4. Investment Securities 1,307,848 1,331,870 -1.8% 1,337,216 -2.2% 1,358,266 1,349,555 1,260,832
Held to Maturity
5. Loans, gross 2,639,968 2,708,052 -2.5% 2,672,221 -1.2% 2,675,907 2,687,566 2,300,230
6. Allowance For Loan Losses (55,768) (59,859) -6.8% (55,849) -0.1% (59,674) (59,862) (54,152)
----------------------- ------------ ----------------------------------
7. Loans, net 2,584,200 2,648,193 -2.4% 2,616,372 -1.2% 2,616,233 2,627,704 2,246,078
----------------------- ------------ ----------------------------------
9. Premises and Equipment 32,535 35,586 -8.6% 33,221 -2.1% 33,640 34,864 35,223
10. Identifiable Intangible Assets 25,130 29,389 n/m 26,170 -4.0% 27,233 28,297 2,894
11. Goodwill 121,719 127,503 n/m 121,907 -0.2% 124,122 124,122 18,996
12. Interest Receivable 152,644 139,941 9.1% 150,478 1.4% 147,588 147,964 122,900
and Other Assets ----------------------- ------------ ----------------------------------
13.Total Assets $5,055,553 $5,200,460 -2.8%$5,157,559 -2.0%$5,161,472 $5,199,404 $4,745,320
======================= ============ ==================================
14.Liabilities and Shareholders' Equity:
15. Deposits:
16. Noninterest Bearing $1,355,426 $1,371,819 -1.2%$1,419,313 -4.5%$1,412,470 $1,377,680 $1,273,825
17. Interest-Bearing Transaction 641,264 626,693 2.3% 658,667 -2.6% 635,019 614,246 591,593
18. Savings 1,004,964 1,166,858 -13.9% 1,022,645 -1.7% 1,094,130 1,114,631 1,091,981
19. Time 737,532 773,473 -4.6% 745,476 -1.1% 732,316 726,283 626,220
----------------------- ------------ ----------------------------------
20. Total Deposits 3,739,186 3,938,843 -5.1% 3,846,101 -2.8% 3,873,935 3,832,840 3,583,619
----------------------- ------------ ----------------------------------
21. Short-Term Borrowed Funds 784,639 710,530 10.4% 775,173 1.2% 764,143 828,280 735,423
22. Debt Financing 37,030 40,391 -8.3% 40,281 -8.1% 40,318 40,354 21,429
and Notes Payable
23. Liability For Interest, 65,326 64,772 0.9% 60,940 7.2% 42,671 50,002 38,188
Taxes and Other ----------------------- ------------ ----------------------------------
24.Total Liabilities 4,626,181 4,754,536 -2.7% 4,722,495 -2.0% 4,721,067 4,751,476 4,378,659
----------------------- ------------ ----------------------------------
25.Shareholders' Equity:
26. Paid-In Capital $344,941 $347,534 -0.7% $345,458 -0.1% $345,229 $347,355 $257,351
27. Unrealized Gain (Loss) on
Investment Securities
28. Available For Sale (830) 3,511 n/m 1,882 -144.1% 2,762 8,185 9,638
29. Retained Earnings 85,261 94,879 -10.1% 87,724 -2.8% 92,414 92,388 99,672
----------------------- ------------ ----------------------------------
30.Total Shareholders' Equity 429,372 445,924 -3.7% 435,064 -1.3% 440,405 447,928 366,661
----------------------- ------------ ----------------------------------
31.Total Liabilities and $5,055,553 $5,200,460 -2.8%$5,157,559 -2.0%$5,161,472 $5,199,404 $4,745,320
Shareholders' Equity ======================= ============ ==================================
Page 16
WESTAMERICA BANCORPORATION Public Information April 18, 2006
12.Income Statements.
(dollars in thousands, except per-share amounts)
Q1'06 / Q1'06 / 3/31'06YTD /
Q1'06 Q1'05 Q1'05 Q4'05 Q4'05 3/31'06YTD 3/31'05YTD 3/31'05YTD
---------------------------------------------------------------------------------------
1. Interest and Fee Income:
2. Loans $41,106 $34,933 17.7% $40,593 1.3% $41,106 $34,933 17.7%
3. Money Market Assets 1 0 n/m 1 n/m 1 0 n/m
and Funds Sold
4. Investment Securities 7,574 9,469 -20.0% 7,638 -0.8% 7,574 9,469 -20.0%
Available For Sale
5. Investment Securities 13,786 12,901 6.9% 14,002 -1.5% 13,786 12,901 6.9%
Held to Maturity
----------------------- ------------ -----------------------
6. Total Interest Income 62,467 57,303 9.0% 62,234 0.4% 62,467 57,303 9.0%
----------------------- ------------ -----------------------
7. Interest Expense:
8. Transaction Deposits 428 263 62.6% 457 -6.4% 428 263 62.6%
9. Savings Deposits 898 863 4.1% 953 -5.8% 898 863 4.1%
10. Time Deposits 5,916 3,231 83.1% 5,176 14.3% 5,916 3,231 83.1%
11. Short-Term Borrowed Funds 6,672 3,570 86.9% 5,296 26.0% 6,672 3,570 86.9%
12. Debt Financing 598 430 39.0% 637 -6.2% 598 430 39.0%
and Notes Payable ----------------------- ------------ -----------------------
13.Total Interest Expense 14,512 8,357 73.6% 12,519 15.9% 14,512 8,357 73.6%
----------------------- ------------ -----------------------
14.Net Interest Income 47,955 48,946 -2.0% 49,715 -3.5% 47,955 48,946 -2.0%
----------------------- ------------ -----------------------
15.Provision for Credit Losses 150 300 -50.0% 150 0.0% 150 300 -50.0%
----------------------- ------------ -----------------------
16.Noninterest Income:
17. Service Charges on Deposit 7,083 6,927 2.3% 7,202 -1.6% 7,083 6,927 2.3%
Accounts
18. Merchant Credit Card 2,385 1,298 83.8% 2,751 -13.3% 2,385 1,298 83.8%
19. Financial Services Commission 298 279 6.8% 380 -21.6% 298 279 6.8%
20. Mortgage Banking 50 100 -50.5% 62 -20.1% 50 100 -50.5%
21. Trust Fees 282 273 3.3% 275 2.5% 282 273 3.3%
22. Gains on Sales of Real Property 0 0 n/m 0 n/m 0 0 n/m
23. Securities Gains (Losses) 0 (4,903) n/m 0 n/m 0 (4,903) -100.0%
24. Other 3,541 3,221 9.9% 3,757 -5.7% 3,541 3,221 9.9%
----------------------- ------------ -----------------------
25.Total Noninterest Income 13,639 7,195 89.6% 14,427 -5.5% 13,639 7,195 89.6%
----------------------- ------------ -----------------------
26.Noninterest Expense:
27. Salaries and Related Benefits 13,258 13,883 -4.5% 13,867 -4.4% 13,258 13,883 -4.5%
28. Occupancy 3,232 2,952 9.5% 3,196 1.1% 3,232 2,952 9.5%
29. Equipment 1,266 1,230 2.9% 1,321 -4.1% 1,266 1,230 2.9%
30. Data Processing 1,534 1,548 -0.9% 1,524 0.7% 1,534 1,548 -0.9%
31. Professional Fees 457 720 -36.5% 599 -23.7% 457 720 -36.5%
32. Other 5,736 5,530 3.7% 6,473 -11.4% 5,736 5,530 3.7%
----------------------- ------------ -----------------------
33.Total Noninterest Expense 25,483 25,863 -1.5% 26,980 -5.5% 25,483 25,863 -1.5%
----------------------- ------------ -----------------------
34.Income Before Income Taxes 35,961 29,978 20.0% 37,012 -2.8% 35,962 29,978 20.0%
35.Provision for income taxes 9,844 7,668 28.4% 9,888 -0.4% 9,844 7,668 28.4%
----------------------- ------------ -----------------------
36.Net Income $26,117 $22,310 17.1% $27,124 -3.7% $26,117 $22,310 17.1%
======================= ============ =======================
37.Average Shares Outstanding 31,688 32,022 -1.0% 32,029 -1.1% 31,688 32,022 -1.0%
38.Diluted Average Shares 32,276 32,680 -1.2% 32,572 -0.9% 32,276 32,680 -1.2%
Outstanding
39.Per Share Data:
40, Basic Earnings $0.82 $0.70 18.3% $0.85 -2.7% $0.82 $0.70 18.3%
41. Diluted Earnings 0.81 0.68 18.5% 0.83 -2.8% 0.81 0.68 18.5%
42. Dividends Paid 0.32 0.30 6.7% 0.32 0.0% 0.32 0.30 6.7%