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):
July 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))
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Exhibits
---------
99.1 Press release dated July 18, 2006
Item 2.02: Results of Operations and Financial Condition
----------------------------------------------------------
On July 18, 2006 Westamerica Bancorporation announced their
quarterly earnings for the second 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
July 19, 2006
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INDEX TO EXHIBITS
-----------------
Sequentially
Exhibit No. Description Number Page
----------- ------------------------- -------------
(99.1) Press release dated 5-15
July 18, 2006
Page 5
FOR IMMEDIATE RELEASE
July 18, 2006
WESTAMERICA BANCORPORATION REPORTS $24.5 MILLION
QUARTERLY EARNINGS
San Rafael, CA: Westamerica Bancorporation (NASDAQ: WABC), parent company of
Westamerica Bank, today reported quarterly net income for the second quarter of
2006 of $24.5 million, or $0.77 diluted earnings per share, compared to net
income of $27.7 million, or $0.83 diluted earnings per share for the second
quarter of 2005. Second quarter 2005 results include a property sale gain, which
increased diluted earnings per share $0.03. For the second quarter of 2006,
return on assets was 1.99 percent and return on equity was 23.1 percent.
"In the second quarter 2006, our annualized net loan losses were 0.04 percent,
our noninterest revenues were 21.4 percent of total revenues, and our expenses
were 40 percent of total revenue. As expected, rising short-term interest rates
caused our funding costs to rise, reducing our net interest margin. However, we
remain focused on accumulating non-interest bearing deposits and money market
checking balances to maintain a low cost of funds. Our second quarter 2006 cost
of funds was 1.44 percent, supporting a relatively high 4.58 percent net
interest margin, " said Chairman, President and CEO David Payne. "Our 23 percent
return on equity remains top-tier in the banking industry," Payne added.
Page 6
Net interest income on a taxable equivalent basis was $51.5 million for the
second quarter of 2006, compared to $57.0 million reported for the second
quarter of 2005. The reduced net interest income is attributable to a lower net
interest margin and lower average earning assets. Short-term interest rates have
risen faster than intermediate and longer term interest rates, causing funding
costs to rise at a faster pace than earning asset yields. The second quarter
2006 net interest margin on a taxable equivalent basis was 4.58 percent,
compared to 4.73 percent for the prior quarter and 4.84 percent for the second
quarter of 2005.
The provision for loan losses was $150 thousand for the second quarter of 2006
unchanged from the prior quarter and down from $300 thousand for the second
quarter of 2005. Net charge-offs for the second quarter of 2006 totaled $234
thousand, or 0.04 percent (annualized) of average loans compared to 0.04 percent
(annualized) of average loans for both the prior quarter and second quarter of
2005. Non-performing loans and repossessed loan collateral at June 30, 2006
totaled $6.3 million, unchanged from $6.3 million at March 31, 2006.
Noninterest income for the second quarter of 2006 was $14.1 million, compared to
$13.6 million for the previous quarter and $15.5 million for the second quarter
of 2005 which included a $1.3 million property sale gain.
Noninterest expense for the second quarter of 2006 totaled $26.3 million,
increased from $25.5 million for the prior quarter, but down from $27.1 million
for the second quarter of 2005. The increase in expenses from the prior quarter
was primarily due to higher personnel costs and professional fees. Comparing the
second quarter of 2006 to the second quarter of 2005, the decrease in
noninterest expense was primarily due to lower personnel costs offset in part by
higher professional fees. The second quarter 2006 efficiency ratio (expenses
divided by revenues) was 40.2 percent, compared to 37.7 percent for the prior
quarter and 37.4 percent for the second quarter of 2005.
Page 7
Shareholders' equity at June 30, 2006 was $422 million, slightly reduced from
$429 million at March 31, 2006. The Company's total regulatory capital ratio
increased to 10.9 percent at June 30, 2006 from 10.7 percent at March 31, 2006;
both measurements exceed the "well-capitalized" level of 10 percent under
regulatory requirements.
Westamerica Bancorporation, through its wholly owned subsidiary Westamerica
Bank, operates 87 branches and two trust offices throughout 21 Northern and
Central California counties. At June 30, 2006, the Company's total assets and
total loans outstanding were $4.9 billion and $2.6 billion, respectively.
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
March 31, 2006 and 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.
####
Page 8
WESTAMERICA BANCORPORATION Public Information July 18, 2006
FINANCIAL HIGHLIGHTS
June 30, 2006
1. Net Income Summary.
(dollars in thousands except per-share data)
Q2'06 / Q2'06 / 6/30'06YTD/
Q2'06 Q2'05 Q2'05 Q1'06 Q1'06 6/30'06YTD 6/30'05YTD 6/30'05YTD
---------------------------------------------------------------------------------------
1. Net Interest Income $51,503 $57,023 -9.7% $53,974 -4.6% $105,477 $112,043 -5.9%
(Fully Taxable Equivalent)
2. Provision for Credit Losses 150 300 -50.0% 150 0.0% 300 600 -50.0%
3. Noninterest Income:
4. Investment Securities 0 0 n/m 0 n/m 0 (4,903) -100.0%
(Loss/Impairment) Gains
5. Other 14,061 15,479 -9.2% 13,639 3.1% 27,701 27,577 0.4%
----------------------- ------------ -----------------------
6. Total Noninterest Income 14,061 15,479 -9.2% 13,639 3.1% 27,701 22,674 22.2%
----------------------- ------------ -----------------------
7. Noninterest Expense 26,345 27,089 -2.7% 25,483 3.4% 51,829 52,953 -2.1%
8. Income Tax Provision (FTE) 14,575 17,393 -16.2% 15,863 -8.1% 30,438 31,133 -2.2%
----------------------- ------------ -----------------------
9. Net Income $24,494 $27,720 -11.6% $26,117 -6.2% $50,611 $50,031 1.2%
======================= ============ =======================
10.Average Shares Outstanding 31,364 32,759 -4.3% 31,688 -1.0% 31,525 32,393 -2.7%
11.Diluted Average Shares 31,932 33,364 -4.3% 32,276 -1.1% 32,103 33,024 -2.8%
Outstanding
12.Operating Ratios:
13. Basic Earnings Per Share $0.78 $0.85 -7.7% $0.82 -5.2% $1.61 $1.54 3.9%
14. Diluted Earnings Per Share 0.77 0.83 -7.7% 0.81 -5.2% 1.58 1.51 4.1%
15. Return On Assets 1.99% 2.15% 2.10% 2.04% 2.01%
16. Return On Equity 23.1% 25.8% 24.9% 24.0% 25.1%
17. Net Interest Margin (FTE) 4.58% 4.84% 4.73% 4.65% 4.87%
18. Efficiency Ratio (FTE) 40.2% 37.4% 37.7% 38.9% 39.3%
19.Dividends Paid Per Share $0.32 $0.30 6.7% $0.32 0.0% $0.64 $0.60 6.7%
20.Dividend Payout Ratio 42% 36% 40% 41% 40%
2. Net Interest Income.
(dollars in thousands)
Q2'06 / Q2'06 / 6/30'06YTD/
Q2'06 Q2'05 Q2'05 Q1'06 Q1'06 6/30'06YTD 6/30'05YTD 6/30'05YTD
---------------------------------------------------------------------------------------
1. Interest and Fee Income (FTE) $67,788 $67,769 0.0% $68,486 -1.0% $136,273 $131,145 3.9%
2. Interest Expense 16,285 10,746 51.5% 14,512 12.2% 30,796 19,102 61.2%
----------------------- ------------ -----------------------
3. Net Interest Income (FTE) $51,503 $57,023 -9.7% $53,974 -4.6% $105,477 $112,043 -5.9%
======================= ============ =======================
4. Average Earning Assets $4,515,728 $4,719,635 -4.3%$4,606,178 -2.0%$4,560,953 $4,619,282 -1.3%
5. Average Interest-Bearing 3,139,054 3,304,766 -5.0% 3,205,366 -2.1% 3,172,210 3,218,592 -1.4%
Liabilities
6. Yield on Earning Assets (FTE) 6.01% 5.75% 6.00% 6.00% 5.70%
7. Cost of Funds 1.44% 0.91% 1.27% 1.35% 0.83%
8. Net Interest Margin (FTE) 4.58% 4.84% 4.73% 4.65% 4.87%
9. Interest Expense/Interest- 2.07% 1.30% 1.82% 1.94% 1.19%
Bearing Liabilities
10.Net Interest Spread (FTE) 3.94% 4.45% 4.18% 4.06% 4.51%
Page 9
WESTAMERICA BANCORPORATION Public Information July 18, 2006
3. Loans & Other Earning Assets.
(average volume, dollars in thousands)
Q2'06 / Q2'06 / 6/30'06YTD/
Q2'06 Q2'05 Q2'05 Q1'06 Q1'06 6/30'06YTD 6/30'05YTD 6/30'05YTD
---------------------------------------------------------------------------------------
1. Total Assets $4,948,443 $5,170,029 -4.3%$5,054,256 -2.1%$5,001,349 $5,017,331 -0.3%
2. Total Earning Assets 4,515,728 4,719,635 -4.3% 4,606,178 -2.0% 4,560,953 4,619,282 -1.3%
3. Total Loans 2,588,220 2,670,663 -3.1% 2,615,949 -1.1% 2,602,084 2,522,686 3.1%
4. Commercial Loans 679,512 724,681 -6.2% 690,773 -1.6% 685,142 683,571 0.2%
5. Commercial Real Estate Loans 914,373 956,931 -4.4% 922,838 -0.9% 918,605 883,369 4.0%
6. Consumer Loans 994,336 989,051 0.5% 1,002,338 -0.8% 998,337 955,746 4.5%
7. Total Investment Securities 1,927,508 2,048,973 -5.9% 1,990,229 -3.2% 1,958,868 2,096,596 -6.6%
8. Available For Sale 650,649 710,960 -8.5% 665,948 -2.3% 658,256 782,376 -15.9%
(Market Value)
9. Held To Maturity 1,276,859 1,338,013 -4.6% 1,324,281 -3.6% 1,300,612 1,314,220 -1.0%
10. HTM Unrealized (Loss) (33,374) 8,529 n/m (25,025) n/m (33,374) 8,529 n/m
at Period-End
11.Loans / Deposits 70.9% 68.4% 69.1% 70.0% 66.2%
4. Deposits & Other Interest-Bearing Liabilities.
(average volume, dollars in thousands)
Q2'06 / Q2'06 / 6/30'06YTD/
Q2'06 Q2'05 Q2'05 Q1'06 Q1'06 6/30'06YTD 6/30'05YTD 6/30'05YTD
---------------------------------------------------------------------------------------
1. Total Deposits $3,652,030 $3,906,875 -6.5%$3,784,436 -3.5%$3,718,233 $3,811,714 -2.5%
2. Noninterest Demand 1,316,927 1,387,984 -5.1% 1,355,501 -2.8% 1,336,214 1,351,234 -1.1%
3. Interest-Bearing Transaction 624,045 633,645 -1.5% 651,547 -4.2% 637,796 621,899 2.6%
4. Savings 964,776 1,130,024 -14.6% 1,022,087 -5.6% 993,432 1,122,223 -11.5%
5. Other Time >$100K 503,488 448,104 12.4% 501,299 0.4% 502,393 427,069 17.6%
6. Other Time < $100K 242,793 307,118 -20.9% 254,002 -4.4% 248,398 289,289 -14.1%
7. Total Short-Term Borrowings 766,936 745,499 2.9% 738,308 3.9% 752,622 724,483 3.9%
8. Fed Funds Purchased 548,770 585,205 -6.2% 548,495 0.1% 548,632 568,143 -3.4%
9. Other Short-Term Funds 218,166 160,294 36.1% 189,813 14.9% 203,990 156,340 30.5%
10.Long-Term Debt 37,015 40,376 -8.3% 38,124 -2.9% 37,570 33,629 11.7%
11.Shareholders' Equity 424,999 430,796 -1.3% 424,832 0.0% 424,916 402,212 5.6%
12.Demand Deposits / 36.1% 35.5% 35.8% 35.9% 35.4%
Total Deposits
13.Transaction & Savings 79.6% 80.7% 80.0% 79.8% 81.2%
Deposits / Total Deposits
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WESTAMERICA BANCORPORATION Public Information July 18, 2006
5. Interest Yields Earned & Rates Paid.
(dollars in thousands)
Q2'06 Q2'05
------------------------------- Q1'06 ----------------------------------
Average Income/ Yield/ Yield/ Average Income/ Yield/
Volume Expense Rate Rate Volume Expense Rate
----------------------------------------------------------------------------
1. Interest & Fees Income Earned
2. Total Earning Assets (FTE) $4,515,728 $67,788 6.01% 6.00%$4,719,635 $67,769 5.75%
3. Total Loans (FTE) 2,588,220 42,490 6.58% 6.59% 2,670,663 41,347 6.21%
4. Commercial Loans (FTE) 679,512 13,038 7.57% 7.59% 724,681 12,498 6.88%
5. Commercial Real Estate 914,373 16,590 7.28% 7.39% 956,931 16,905 7.09%
Loans
6. Consumer Loans 994,336 12,862 5.25% 5.06% 989,051 11,944 4.90%
7. Total Investment 1,927,508 25,298 5.25% 5.23% 2,048,973 26,422 5.16%
Securities (FTE)
8. Interest Expense Paid
9. Total Earning Assets 4,515,728 16,285 1.44% 1.27% 4,719,635 10,746 0.91%
10. Total Interest-Bearing 3,139,054 16,285 2.07% 1.82% 3,304,766 10,746 1.30%
Liabilities
11. Total Interest-Bearing 2,335,103 8,012 1.38% 1.21% 2,518,891 5,454 0.87%
Deposits
12. Interest-Bearing 624,045 427 0.27% 0.27% 633,645 340 0.22%
Transaction
13. Savings 964,776 924 0.38% 0.36% 1,130,024 970 0.34%
14. Other Time < $100K 242,793 1,580 2.61% 2.33% 307,118 1,542 2.01%
15. Other Time >$100K 503,488 5,081 4.05% 3.60% 448,104 2,602 2.33%
16. Total Short-Term Borrowings 766,936 7,695 3.97% 3.62% 745,499 4,655 2.47%
17. Fed Funds Purchased 548,770 6,833 4.93% 4.44% 585,205 4,379 2.96%
18. Other Short-Term Funds 218,166 861 1.58% 1.24% 160,294 276 0.69%
19. Long-Term Debt 37,015 578 6.25% 6.27% 40,376 637 6.31%
20.Net Interest Income and Margin (FTE) $51,503 4.58% 4.73% $57,023 4.84%
6. Noninterest Income.
(dollars in thousands)
Q2'06 / Q2'06 / 6/30'06YTD/
Q2'06 Q2'05 Q2'05 Q1'06 Q1'06 6/30'06YTD 6/30'05YTD 6/30'05YTD
---------------------------------------------------------------------------------------
1. Service Charges on Deposit $7,186 $7,542 -4.7% $7,083 1.4% $14,269 $14,469 -1.4%
Accounts
2. Merchant Credit Card Income 2,392 2,417 -1.0% 2,385 0.3% 4,778 3,715 28.6%
3. ATM Fees & Interchange 717 709 1.2% 678 5.8% 1,395 1,333 4.7%
4. Debit Card Fees 876 811 8.0% 828 5.8% 1,704 1,509 12.9%
5. Financial Services Fees 363 339 7.1% 298 21.8% 661 619 6.7%
6. Mortgage Banking Income 49 67 -26.3% 50 -0.3% 99 167 -40.8%
7. Trust Fees 287 309 -7.1% 282 1.8% 569 583 -2.4%
8. Other Income 2,190 1,954 12.1% 2,035 7.6% 4,226 3,851 9.7%
----------------------- ------------ -----------------------
9. Sub-total 14,061 14,148 -0.6% 13,639 3.1% 27,701 26,246 5.5%
10.Gains on Sales of Real 0 1,331 n/m 0 n/m 0 1,331 n/m
Property
11.Investment Securities 0 0 n/m 0 n/m 0 (4,903) -100.0%
Gains (Losses) ----------------------- ------------ -----------------------
12.Total Noninterest Income $14,061 $15,479 -9.2% $13,639 3.1% $27,701 $22,674 22.2%
======================= ============ =======================
13.Operating Ratios:
14. Total Revenue (FTE) $65,564 $72,502 -9.6% $67,614 -3.0% $133,178 $134,717 -1.1%
15. Noninterest Income / 21.4% 21.3% 20.2% 20.8% 16.8%
Revenue (FTE)
16. Service Charges / 0.79% 0.77% 0.76% 0.77% 0.77%
Deposits (annualized)
17. Total Revenue Per Share $8.38 $8.88 -5.5% $8.65 -3.1% $8.52 $8.39 1.6%
(annualized)
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WESTAMERICA BANCORPORATION Public Information July 18, 2006
7. Noninterest Expense.
(dollars in thousands)
Q2'06 / Q2'06 / 6/30'06YTD/
Q2'06 Q2'05 Q2'05 Q1'06 Q1'06 6/30'06YTD 6/30'05YTD 6/30'05YTD
---------------------------------------------------------------------------------------
1. Salaries & Benefits $13,559 $13,956 -2.8% $13,258 2.3% $26,816 $27,839 -3.7%
2. Occupancy 3,267 3,230 1.2% 3,232 1.1% 6,499 6,181 5.1%
3. Equipment 1,315 1,313 0.1% 1,266 3.8% 2,581 2,544 1.5%
4. Data Processing 1,531 1,539 -0.5% 1,534 -0.2% 3,065 3,087 -0.7%
5. Courier 909 964 -5.7% 922 -1.4% 1,831 1,890 -3.1%
6. Postage 397 376 5.6% 410 -3.2% 807 797 1.2%
7. Telephone 466 553 -15.8% 432 7.8% 898 1,081 -16.9%
8. Professional Fees 833 604 38.0% 457 82.2% 1,291 1,324 -2.5%
9. Stationery & Supplies 272 304 -10.5% 270 0.9% 542 652 -16.9%
10.Loan Expense 236 232 1.5% 195 21.0% 430 436 -1.3%
12.Operational Losses 255 200 27.3% 188 35.1% 443 390 13.7%
13.Amortization of 1,016 1,092 n/m 1,040 -2.3% 2,056 1,497 n/m
Identifiable Intangibles
14.Other Operating 2,290 2,726 -16.0% 2,279 0.5% 4,570 5,235 -12.7%
----------------------- ------------ -----------------------
15.Total Noninterest Expense $26,345 $27,089 -2.7% $25,483 3.4% $51,829 $52,953 -2.1%
======================= ============ =======================
16.Full Time Equivalent Staff 904 974 -7.2% 939 -3.7% 922 969 -4.9%
17.Average Assets / Full Time $5,474 $5,308 3.1% $5,383 1.7% $5,424 $5,178 4.8%
Equivalent Staff
18.Operating Ratios:
19. FTE Revenue / Full Time $291 $299 -2.6% $292 -0.4% $291 $280 3.9%
Equivalent Staff
(annualized)
20. Noninterest Expense / 2.34% 2.30% 2.24% 2.29% 2.31%
Earning Assets
(annualized)
21. Noninterest Expense / 40.2% 37.4% 37.7% 38.9% 39.3%
Revenues
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WESTAMERICA BANCORPORATION Public Information July 18, 2006
8. Provision for Credit Losses.
(dollars in thousands)
Q2'06 / Q2'06 / 6/30'06YTD/
Q2'06 Q2'05 Q2'05 Q1'06 Q1'06 6/30'06YTD 6/30'05YTD 6/30'05YTD
---------------------------------------------------------------------------------------
1. Provision for Credit Losses $150 $300 -50.0% $150 0.0% $300 $600 -50.0%
2. Gross Loan Losses 645 754 -14.5% 1,118 -42.3% 1,763 1,353 30.3%
3. Net Loan Losses 234 297 -21.3% 231 1.4% 464 103 350.9%
4. Recoveries / Gross Loan Losses 64% 61% 79% 74% 92%
5. Average Total Loans $2,588,220 $2,670,663 -3.1%$2,615,949 -1.1%$2,602,084 $2,522,686 3.1%
6. Net Loan Losses / Loans 0.04% 0.04% 0.04% 0.04% 0.01%
(annualized)
7. Provision for Credit Losses / 0.02% 0.05% 0.02% 0.02% 0.05%
Loans (annualized)
8. Provision for Credit Losses / 64.2% 101.0% 65.0% 64.6% 582.5%
Net Loan Losses
9. Credit Quality.
(dollars in thousands)
6/30/06 / 6/30/06 /
6/30/06 6/30/05 6/30/05 3/31/06 3/31/06 12/31/05 9/30/05 3/31/05
---------------------------------------------------------------------------------------
1. Nonperforming Nonaccrual Loans $1,613 $1,560 3.4% $2,993 -46.1% $2,068 $2,292 $1,766
2. Performing Nonaccrual Loans 3,899 6,072 -35.8% 3,232 20.6% 4,256 4,514 6,550
----------------------- ------------ ----------------------------------
3. Total Nonaccrual Loans 5,512 7,632 -27.8% 6,225 -11.5% 6,324 6,806 8,316
4. Accruing Loans 90+ Days 114 84 n/m 29 n/m 162 1,334 107
Past Due ----------------------- ------------ ----------------------------------
5. Total Nonperforming Loans 5,626 7,716 -27.1% 6,254 -10.0% 6,486 8,140 8,423
6. Repossessed Collateral 656 40 n/m 0 n/m 0 0 0
7. Total Nonperforming Loans & ----------------------- ------------ ----------------------------------
8. Repossessed Collateral $6,282 $7,756 -19.0% $6,254 0.4% $6,486 $8,140 $8,423
======================= ============ ==================================
9. Classified Loans $25,681 $37,615 -31.7% $28,878 -11.1% $29,997 $36,656 $35,258
======================= ============ ==================================
10.Allowance for Loan Losses $55,684 $59,862 -7.0% $55,768 -0.2% $55,849 $59,674 $59,859
11.Total Loans Outstanding 2,580,612 2,687,566 -4.0% 2,639,968 -2.2% 2,672,221 2,675,907 2,708,052
12.Total Assets 4,906,886 5,199,404 -5.6% 5,055,553 -2.9% 5,157,559 5,161,472 5,200,460
13.Allowance for Loan Losses / 2.16% 2.23% 2.11% 2.09% 2.23% 2.21%
Total Loans
14.Nonperforming Loans / 0.22% 0.29% 0.24% 0.24% 0.30% 0.31%
Total Loans
15.Nonperforming Loans &
Repossessed
16. Collateral/Total Assets 0.13% 0.15% 0.12% 0.13% 0.16% 0.16%
17.Allowance/Nonperforming Loans 990% 776% 892% 861% 733% 711%
18.Allowance for Loan Losses / 217% 159% 193% 186% 163% 170%
Classified Loans
19.Classified Loans /
20. (Equity + Allowance for 5.4% 7.4% 6.0% 6.1% 7.3% 7.0%
Loan Losses)
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WESTAMERICA BANCORPORATION Public Information July 18, 2006
10.Capital.
(dollars in thousands, except per-share amounts)
6/30/06 / 6/30/06 /
6/30/06 6/30/05 6/30/05 3/31/06 3/31/06 12/31/05 9/30/05 3/31/05
---------------------------------------------------------------------------------------
1. Shareholders' Equity $421,731 $447,928 -5.8% $429,372 -1.8% $435,064 $440,405 $445,924
2. Tier I Regulatory Capital 300,661 299,003 0.6% 303,344 -0.9% 296,746 297,896 297,791
3. Total Regulatory Capital 341,788 342,967 -0.3% 345,786 -1.2% 339,881 341,147 342,146
4. Total Assets 4,906,886 5,199,404 -5.6% 5,055,553 -2.9% 5,157,559 5,161,472 5,200,460
5. Risk-Adjusted Assets 3,127,641 3,307,055 -5.4% 3,222,355 -2.9% 3,267,226 3,275,611 3,329,316
6. Shareholders' Equity / 8.59% 8.61% 8.49% 8.44% 8.53% 8.57%
Total Assets
7. Shareholders' Equity / 16.34% 16.67% 16.26% 16.28% 16.46% 16.47%
Total Loans
8. Tier I Capital / Total Assets 6.13% 5.75% 6.00% 5.75% 5.77% 5.73%
9. Tier I Capital / 9.61% 9.04% 9.41% 9.08% 9.09% 8.94%
Risk-Adjusted Assets
10.Total Capital / 10.93% 10.37% 10.73% 10.40% 10.41% 10.28%
Risk-Adjusted Assets
11.Shares Outstanding 31,201 32,593 -4.3% 31,544 -1.1% 31,882 32,198 32,939
12.Book Value Per Share ($) $13.52 $13.74 -1.6% $13.61 -0.7% $13.65 $13.68 $13.54
13.Market Value Per Share ($) 48.97 52.81 -7.3% 51.92 -5.7% 53.07 51.65 51.77
14.Share Repurchase Programs
(shares in thousands)
Q2'06 / Q2'06 / 6/30'06YTD/
Q2'06 Q2'05 Q2'05 Q1'06 Q1'06 6/30'06YTD 6/30'05YTD 6/30'05YTD
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15.Total Shares Repurchased / 491 490 0.2% 429 14.3% 920 863 6.7%
Canceled
16. Average Repurchase Price $50.47 $51.31 -1.6% $53.62 -5.9% $51.94 $52.76 -1.6%
17.Net Shares Repurchased (Issued) 343 346 n/m 338 n/m 681 (953) n/m
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WESTAMERICA BANCORPORATION Public Information July 18, 2006
11.Period-End Balance Sheets.
(dollars in thousands)
6/30/06 / 6/30/06 /
6/30/06 6/30/05 6/30/05 3/31/06 3/31/06 12/31/05 9/30/05 3/31/05
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1. Assets:
2. Cash and Money Market Assets $189,204 $195,289 -3.1% $188,481 0.4% $209,807 $193,760 $168,881
3. Investment Securities 620,294 691,609 -10.3% 642,996 -3.5% 662,388 660,630 719,097
Available For Sale
4. Investment Securities 1,243,936 1,349,555 -7.8% 1,307,848 -4.9% 1,337,216 1,358,266 1,331,870
Held to Maturity
5. Loans, gross 2,580,612 2,687,566 -4.0% 2,639,968 -2.2% 2,672,221 2,675,907 2,708,052
6. Allowance For Loan Losses (55,684) (59,862) -7.0% (55,768) -0.2% (55,849) (59,674) (59,859)
----------------------- ------------ ----------------------------------
7. Loans, net 2,524,928 2,627,704 -3.9% 2,584,200 -2.3% 2,616,372 2,616,233 2,648,193
----------------------- ------------ ----------------------------------
8.
9. Premises and Equipment 31,785 34,864 -8.8% 32,535 -2.3% 33,221 33,640 35,586
10. Identifiable Intangible 24,114 28,297 n/m 25,130 -4.0% 26,170 27,233 29,389
Assets
11. Goodwill 121,719 124,122 n/m 121,719 0.0% 121,907 124,122 127,503
12. Interest Receivable and 150,906 147,964 2.0% 152,644 -1.1% 150,479 147,588 139,941
Other Assets
13.Total Assets $4,906,886 $5,199,404 -5.6%$5,055,553 -2.9%$5,157,559 $5,161,472 $5,200,460
======================= ============ ==================================
14.Liabilities and
Shareholders' Equity:
15. Deposits:
16. Noninterest Bearing $1,330,280 $1,377,680 -3.4%$1,355,426 -1.9%$1,419,313 $1,412,470 $1,371,819
17. Interest-Bearing 606,633 614,246 -1.2% 641,264 -5.4% 658,667 635,019 626,693
Transaction
18. Savings 951,819 1,114,631 -14.6% 1,004,964 -5.3% 1,022,645 1,094,130 1,166,858
19. Time 758,315 726,283 4.4% 737,532 2.8% 745,476 732,316 773,473
======================= ============ ==================================
20. Total Deposits 3,647,047 3,832,840 -4.8% 3,739,186 -2.5% 3,846,101 3,873,935 3,938,843
======================= ============ ==================================
21. Short-Term Borrowed Funds 746,517 828,280 -9.9% 784,639 -4.9% 775,173 764,143 710,530
22. Debt Financing and Notes 36,993 40,354 -8.3% 37,030 -0.1% 40,281 40,318 40,391
Payable
23. Liability For Interest 54,598 50,002 9.2% 65,326 -16.4% 60,940 42,671 64,772
Taxes and Other ======================= ============ ==================================
24.Total Liabilities 4,485,155 4,751,476 -5.6% 4,626,181 -3.0% 4,722,495 4,721,067 4,754,536
======================= ============ ==================================
25.Shareholders' Equity:
26. Paid-In Capital $346,224 $347,355 -0.3% $344,941 0.4% $345,458 $345,229 $347,534
27. Unrealized Gain (Loss)
on Investment Securities
28. Available For Sale (4,771) 8,185 n/m (830) 474.7% 1,882 2,762 3,511
29. Retained Earnings 80,278 92,388 -13.1% 85,261 -5.8% 87,724 92,414 94,879
======================= ============ ==================================
30.Total Shareholders' Equity 421,731 447,928 -5.8% 429,372 -1.8% 435,064 440,405 445,924
======================= ============ ==================================
31.Total Liabilities and $4,906,886 $5,199,404 -5.6%$5,055,553 -2.9%$5,157,559 $5,161,472 $5,200,460
Shareholders' Equity ======================= ============ ==================================
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WESTAMERICA BANCORPORATION Public Information July 18, 2006
12.Income Statements.
(dollars in thousands, except per-share amounts)
Q2'06 / Q2'06 / 6/30'06YTD/
Q2'06 Q2'05 Q2'05 Q1'06 Q1'06 6/30'06YTD 6/30'05YTD 6/30'05YTD
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1. Interest and Fee Income:
2. Loans $41,160 $39,941 3.1% $41,106 0.1% $82,266 $74,874 9.9%
3. Money Market Assets and 2 1 n/m 1 n/m 2 1 n/m
Funds Sold
4. Investment Securities 7,377 8,073 -8.6% 7,574 -2.6% 14,952 17,543 -14.8%
Available For Sale
5. Investment Securities 13,338 13,441 -0.8% 13,786 -3.2% 27,124 26,341 3.0%
Held to Maturity ======================= ============ =======================
6. Total Interest Income 61,877 61,456 0.7% 62,467 -0.9% 124,344 118,759 4.7%
======================= ============ =======================
7. Interest Expense:
8. Transaction Deposits 427 340 25.6% 428 -0.1% 855 602 42.0%
9. Savings Deposits 924 970 -4.7% 898 2.9% 1,822 1,834 -0.6%
10. Time Deposits 6,661 4,144 60.7% 5,916 12.6% 12,577 7,375 70.5%
11. Short-Term Borrowed Funds 7,695 4,655 65.3% 6,672 15.3% 14,366 8,224 74.7%
12. Debt Financing and Notes 578 637 -9.2% 598 -3.3% 1,176 1,067 10.2%
Payable ======================= ============ =======================
13.Total Interest Expense 16,285 10,746 51.5% 14,512 12.2% 30,796 19,102 61.2%
======================= ============ =======================
14.Net Interest Income 45,592 50,710 -10.1% 47,955 -4.9% 93,548 99,657 -6.1%
======================= ============ =======================
15.Provision for Credit Losses 150 300 -50.0% 150 0.0% 300 600 -50.0%
======================= ============ =======================
16.Noninterest Income:
17. Service Charges on 7,186 7,542 -4.7% 7,083 1.4% 14,269 14,469 -1.4%
Deposit Accounts
18. Merchant Credit Card 2,392 2,417 -1.0% 2,385 0.3% 4,778 3,715 28.6%
19. Financial Services 363 339 7.1% 298 21.8% 661 619 6.7%
Commissions
20. Mortgage Banking 49 67 -26.3% 50 -0.3% 99 167 -40.8%
21. Trust Fees 287 309 -7.1% 282 1.8% 569 583 -2.4%
22. Gains on Sales of 0 1,331 -100.0% 0 n/m 0 1,331 -100.0%
Real Property
23. Securities Gains (Losses) 0 0 n/m 0 n/m 0 (4,903) -100.0%
24. Other 3,784 3,474 8.9% 3,541 6.9% 7,325 6,693 9.4%
======================= ============ =======================
25.Total Noninterest Income 14,061 15,479 -9.2% 13,639 3.1% 27,701 22,674 22.2%
======================= ============ =======================
26.Noninterest Expense:
27. Salaries and Related Benefits 13,559 13,956 -2.8% 13,258 2.3% 26,816 27,839 -3.7%
28. Occupancy 3,267 3,230 1.2% 3,232 1.1% 6,499 6,181 5.1%
29. Equipment 1,315 1,313 0.1% 1,266 3.8% 2,581 2,544 1.5%
30. Data Processing 1,531 1,539 -0.5% 1,534 -0.2% 3,065 3,087 -0.7%
31. Professional Fees 833 604 38.0% 457 82.2% 1,291 1,324 -2.5%
32. Other 5,840 6,447 -9.4% 5,736 1.8% 11,577 11,978 -3.4%
======================= ============ =======================
33.Total Noninterest Expense 26,345 27,089 -2.7% 25,483 3.4% 51,829 52,953 -2.1%
======================= ============ =======================
34.Income Before Income Taxes 33,158 38,800 -14.5% 35,961 -7.8% 69,120 68,778 0.5%
35.Provision for income taxes 8,664 11,080 -21.8% 9,844 -12.0% 18,509 18,747 -1.3%
======================= ============ =======================
36.Net Income $24,494 $27,720 -11.6% $26,117 -6.2% $50,611 $50,031 1.2%
======================= ============ =======================
37.Average Shares Outstanding 31,364 32,759 -4.3% 31,688 -1.0% 31,525 32,393 -2.7%
38.Diluted Average Shares 31,932 33,364 -4.3% 32,276 -1.1% 32,103 33,024 -2.8%
Outstanding
39.Per Share Data:
40. Basic Earnings $0.78 $0.85 -7.7% $0.82 -5.2% $1.61 $1.54 3.9%
41. Diluted Earnings 0.77 0.83 -7.7% 0.81 -5.2% 1.58 1.51 4.1%
42. Dividends Paid 0.32 0.30 6.7% 0.32 0.0% 0.64 0.60 6.7%