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 21, 2005
------------------
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 20, 2005
Item 2.02: Results of Operations and Financial Condition
----------------------------------------------------------
On January 20, 2005 Westamerica Bancorporation announced their
quarterly and annual earnings. A copy of the press release is
attached as Exhibit 99.1 to this Form 8-K and is incorporated
herein by reference.
Page 3
Signatures
Pursuant to the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
Westamerica Bancorporation
/s/ DENNIS R. HANSEN
------------------------------------
Dennis R. Hansen
Senior Vice President and Controller
January 21, 2005
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INDEX TO EXHIBITS
-----------------
Sequentially
Exhibit No. Description Number Page
----------- ------------------------- -------------
(99.1) Press release dated 5-16
January 20, 2005
Page 5
FOR IMMEDIATE RELEASE
January 20, 2005
WESTAMERICA BANCORPORATION REPORTS
QUARTERLY AND ANNUAL EARNINGS
San Rafael, CA: Westamerica Bancorporation (NASDAQ: WABC), parent company of
Westamerica Bank, today reported net income for the fourth quarter of 2004 of
$21.2 million, diluted earnings per share (EPS) of $0.65, return on common
equity (ROE) of 24.0 percent, and return on average assets (ROA) of 1.81
percent. Fourth quarter 2004 results include a $4.2 million after-tax securities
impairment charge related to Freddie Mac and Fannie Mae preferred stock (more
fully described below), which reduced fourth quarter 2004 EPS by $0.13, ROE by
4.8 percent, and ROA by 0.35 percent. Fourth quarter 2004 EPS and ROE were
further constrained by reduced share repurchase activity in order to accumulate
approximately $57 million in cash required to complete the pending acquisition
of Redwood Empire Bancorp (more fully described below). As a result, share
repurchases, net of shares issued, declined to 76 thousand shares in the fourth
quarter of 2004 and to 68 thousand shares in the previous quarter. Net share
repurchases were 647 thousand shares for the year 2004, compared to 1.1 million
shares for 2003.
Net income for the year ended December 31, 2004 was $95.2 million, compared to
$95.1 million for 2003. EPS for 2004 was $2.93, compared to $2.85 for the year
2003. ROE for the year 2004 was 28.8 percent, while ROA was 2.10 percent,
compared to 29.4 percent and 2.19 percent, respectively, for the year 2003.
"Fourth quarter and full year 2004 profitability benefited from our focus on
growing noninterest income, on gathering low cost deposits, and operational
efficiencies," said Chairman, President and CEO David Payne. "During 2004, new
deposit-related products fueled an 8 percent increase in service charges on
deposit accounts, and our low-cost deposits grew 7 percent, reducing our average
cost of funds to 0.50 percent for the year. Our efforts to maintain an efficient
cost structure and hold positions open for Redwood Empire employees resulted in
a 3 percent decline in expenses, which improved our efficiency ratio from the
prior year," continued Payne.
Page 6
Net interest income on a fully taxable equivalent basis was $54.6 million in the
fourth quarter of 2004 compared to $54.5 million in the prior quarter and $54.8
million in the same quarter a year ago. The fourth quarter 2004 net interest
margin on a taxable equivalent basis was 5.01 percent, compared to 5.11 percent
in the previous quarter and 5.26 percent in the fourth quarter of 2003. For the
full year, net interest income and the net interest margin on a taxable
equivalent basis were $218.0 million and 5.14 percent, compared to $217.4
million and 5.39 percent, respectively, for 2003. A reduction in high-yielding
commercial real estate loans combined with a sustained period of low interest
rates have resulted in an operating environment with declining net interest
margins.
The provision for loan losses was $600 thousand for the fourth quarter of 2004,
unchanged from the previous quarter and down from $750 thousand in the year ago
quarter. The level of the loan loss provision reflects management's assessment
of credit risk for the loan portfolio.
Noninterest income in the fourth quarter of 2004 totaled $4.3 million, compared
to $11.8 million and $10.5 million, respectively, reported in the previous and
year ago quarters. The decrease from the prior and year ago quarters includes a
$7.2 million "other than temporary impairment" charge for Freddie Mac and Fannie
Mae preferred stock. "This securities writedown was an ultra-conservative
interpretation of current accounting literature for securities rated investment
grade by all nationally recognized rating agencies, and for valuations derived
primarily by prevailing interest rates and technical conditions in the capital
markets," stated Chairman, President and CEO David Payne. The non-cash
securities impairment charge does not affect capital levels as the securities
are held in the available-for-sale investment portfolio for which market value
adjustments are recorded as other comprehensive income. At December 31, 2004,
Westamerica held Freddie Mac and Fannie Mae preferred stock with an adjusted
book value of $63.9 million and a tax-equivalent dividend yield of 7.65 percent.
The remaining $300 thousand decrease in noninterest income from the prior
quarter is primarily attributable to lower service charges on deposit accounts
and financial services commissions. Noninterest income other than securities
impairment increased $1.0 million in the fourth quarter of 2004 from the year
ago quarter primarily due to higher service charges on deposit accounts and
debit card income. For the full year, noninterest income other than securities
impairment increased 7 percent to $45.8 million from $42.9 million for 2003.
This increase in annual results is primarily attributable to increased service
charges on deposit accounts, debit card income, and financial services
commissions partially offset by lower mortgage banking income.
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Noninterest expense for the fourth quarter of 2004 totaled $24.3 million
compared to $24.5 million in the prior quarter and $25.2 million in the year ago
quarter. The decrease from the prior quarter is primarily attributable to lower
salaries and benefits, offset in part by higher equipment costs and professional
fees. The decrease from the year ago quarter is primarily attributable to lower
salaries and benefits. For the full year, noninterest expense was $98.8 million,
down 3 percent from $101.7 million for 2003. The decrease is primarily
attributable to reduced salaries and benefits, occupancy and equipment expense,
postage, loan expense, and amortization of core deposit intangibles, offset in
part by higher telephone expense.
Shareholders' equity was $359 million at December 31, 2004, compared to $340
million at December 31, 2003. The equity-to-asset ratio was 7.6 percent at
December 31, 2004, compared to 7.4 percent at December 31, 2003. At December 31,
2004, there were approximately 1.8 million shares remaining to purchase under
the existing share repurchase program.
At December 31, 2004, the Company had total assets and total loans outstanding
of $4.7 billion and $2.3 billion, respectively.
As announced August 25, 2004 Westamerica signed a definitive agreement to
acquire Redwood Empire Bancorp (REBC), parent company of National Bank of the
Redwoods. REBC shareholders approved the merger at a shareholder meeting
December 14, 2004. The merger also requires customary regulatory approvals. The
transaction is valued at approximately $148 million, of which, approximately $57
million will be paid in cash and the remainder by issuance of Westamerica common
stock. The pricing of the transaction is subject to adjustments fully described
in Westamerica's Form S-4 registration statement filed with the Securities and
Exchange Commission on October 15, 2004.
Westamerica Bancorporation, through its wholly owned subsidiary Westamerica
Bank, operates 87 branches throughout 22 Northern and Central California
counties.
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Westamerica Bancorporation Web Address: www.westamerica.com
For additional information contact:
Westamerica Bancorporation
Robert A. Thorson - SVP & Treasurer
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, 2004 and Form 10-K for the year ended December 31, 2003, 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 January 20, 2005
FINANCIAL HIGHLIGHTS
December 31, 2004
1. Net Income Summary.
(dollars in thousands except per-share data)
Q4'04 / Q4'04 / 12/31'04YTD/
Q4'04 Q4'03 Q4'03 Q3'04 Q3'04 12/31'04YTD 12/31'03YTD 12/31'03YTD
---------------------------------------------------------------------------------------
1. Net Interest Income (Fully $54,587 $54,758 -0.3% $54,528 0.1% $217,993 $217,407 0.3%
Taxable Equivalent)
2. Loan Loss Provision 600 750 -20.0% 600 0.0% 2,700 3,300 -18.2%
3. Noninterest Income:
4. Investment Securities (7,180) 0 n/m (14) n/m (5,011) 2,443 n/m
(Impairment) Gains
5. Loss on Extinguishment 0 0 n/m 0 n/m (2,204) (2,166) 1.8%
of Debt
6. Other 11,449 10,493 9.1% 11,802 -3.0% 45,798 42,639 7.4%
----------------------- ------------ -----------------------
7. Total Noninterest Income 4,269 10,493 -59.3% 11,788 -63.8% 38,583 42,916 -10.1%
----------------------- ------------ -----------------------
8. Noninterest Expense 24,277 25,158 -3.5% 24,491 -0.9% 98,751 101,703 -2.9%
9. Income Tax Provision (FTE) 12,814 15,035 -14.8% 16,130 -20.6% 59,906 60,257 -0.6%
----------------------- ------------ -----------------------
10.Net Income $21,165 $24,308 -12.9% $25,095 -15.7% $95,219 $95,063 0.2%
======================= ============ =======================
11.Average Shares Outstanding 31,761 32,523 -2.3% 31,713 0.2% 31,821 32,849 -3.1%
12.Diluted Average Shares 32,487 33,154 -2.0% 32,352 0.4% 32,461 33,369 -2.7%
Outstanding
13.Operating Ratios:
14. Basic Earnings Per Share $0.67 $0.75 -10.8% $0.79 -15.8% $2.99 $2.89 3.4%
15. Diluted Earnings Per Share 0.65 0.73 -11.1% 0.78 -16.0% 2.93 2.85 3.0%
16. Return On Assets 1.81% 2.17% 2.19% 2.10% 2.19%
17. Return On Equity 24.0% 29.4% 30.1% 28.8% 29.4%
18. Net Interest Margin (FTE) 5.01% 5.26% 5.11% 5.14% 5.39%
19. Efficiency Ratio (FTE) 41.2% 38.6% 36.9% 38.5% 39.1%
20.Dividends Paid Per Share $0.28 $0.26 7.7% $0.28 0.0% $1.10 $1.00 10.0%
21.Dividend Payout Ratio 43% 35% 36% 37% 35%
2. Net Interest Income.
(dollars in thousands)
Q4'04 / Q4'04 / 12/31'04YTD/
Q4'04 Q4'03 Q4'03 Q3'04 Q3'04 12/31'04YTD 12/31'03YTD 12/31'03YTD
---------------------------------------------------------------------------------------
1. Interest and Fee Income (FTE) $60,540 $60,521 0.0% $59,570 1.6% $239,099 $244,604 -2.3%
2. Interest Expense 5,953 5,763 3.3% 5,042 18.1% 21,106 27,197 -22.4%
----------------------- ------------ -----------------------
3. Net Interest Income (FTE) $54,587 $54,758 -0.3% $54,528 0.1% $217,993 $217,407 0.3%
======================= ============ =======================
4. Average Earning Assets $4,352,493 $4,149,994 4.9%$4,260,701 2.2%$4,236,903 $4,033,964 5.0%
5. Average Interest-Bearing 2,912,943 2,842,273 2.5% 2,882,817 1.0% 2,886,233 2,798,180 3.1%
Liabilities
6. Yield on Earning Assets (FTE) 5.55% 5.81% 5.58% 5.64% 6.06%
7. Cost of Funds 0.54% 0.55% 0.47% 0.50% 0.67%
8. Net Interest Margin (FTE) 5.01% 5.26% 5.11% 5.14% 5.39%
9. Interest Expense/Interest- 0.81% 0.80% 0.69% 0.73% 0.97%
Bearing Liabilities
10.Net Interest Spread (FTE) 4.74% 5.01% 4.89% 4.91% 5.09%
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WESTAMERICA BANCORPORATION Public Information January 20, 2005
3. Loans & Other Earning Assets.
(average volume, dollars in thousands)
Q4'04 / Q4'04 / 12/31'04YTD/
Q4'04 Q4'03 Q4'03 Q3'04 Q3'04 12/31'04YTD 12/31'03YTD 12/31'03YTD
---------------------------------------------------------------------------------------
1. Total Assets $4,653,950 $4,451,423 4.5%$4,557,925 2.1%$4,536,452 $4,332,707 4.7%
2. Total Earning Assets 4,352,493 4,149,994 4.9% 4,260,701 2.2% 4,236,903 4,033,964 5.0%
3. Total Loans 2,235,375 2,285,717 -2.2% 2,247,664 -0.5% 2,258,482 2,354,270 -4.1%
4. Commercial Loans 620,309 616,511 0.6% 624,925 -0.7% 621,258 616,710 0.7%
5. Commercial Real Estate Loans 740,909 826,792 -10.4% 752,395 -1.5% 769,533 889,076 -13.4%
6. Consumer Loans 874,157 842,414 3.8% 870,344 0.4% 867,691 848,484 2.3%
7. Total Investment Securities 2,117,118 1,864,277 13.6% 2,013,037 5.2% 1,978,421 1,679,694 17.8%
8. Available For Sale 941,614 1,326,259 -29.0% 928,930 1.4% 1,096,789 1,152,930 -4.9%
(Market Value)
9. Held To Maturity 1,175,504 538,018 118.5% 1,084,107 8.4% 881,632 526,764 67.4%
10. HTM Unrealized Gain 5,064 7,352 n/m 9,176 n/m 5,064 7,352 -31.1%
(Loss) at Period-End
11.Loans / Deposits 60.1% 64.5% 62.2% 63.3% 68.6%
4. Deposits & Other Interest-Bearing Liabilities.
(average volume, dollars in thousands)
Q4'04 / Q4'04 / 12/31'04YTD/
Q4'04 Q4'03 Q4'03 Q3'04 Q3'04 12/31'04YTD 12/31'03YTD 12/31'03YTD
---------------------------------------------------------------------------------------
1. Total Deposits $3,718,114 $3,542,433 5.0%$3,616,319 2.8%$3,565,308 $3,430,177 3.9%
2. Noninterest Demand 1,354,129 1,243,860 8.9% 1,305,840 3.7% 1,281,349 1,173,853 9.2%
3. Interest-Bearing Transaction 588,362 569,965 3.2% 581,264 1.2% 577,296 563,022 2.5%
4. Savings 1,139,713 1,085,299 5.0% 1,115,052 2.2% 1,085,051 1,015,699 6.8%
5. Other Time > $100K 373,846 348,405 7.3% 347,579 7.6% 350,400 370,549 -5.4%
6. Other Time < $100K 262,064 294,904 -11.1% 266,584 -1.7% 271,212 307,054 -11.7%
7. Total Short-Term Borrowings 527,529 418,896 25.9% 550,909 -4.2% 556,415 378,362 47.1%
8. Fed Funds Purchased 369,986 270,515 36.8% 350,071 5.7% 360,771 222,225 62.3%
9. Other Short-Term Funds 157,543 148,381 6.2% 200,838 -21.6% 195,644 156,137 25.3%
10.FHLB Debt 0 105,000 n/m 0 n/m 24,153 142,272 -83.0%
11.Long-Term Debt 21,429 19,804 8.2% 21,429 0.0% 21,706 21,222 2.3%
12.Shareholders' Equity 350,151 328,209 6.7% 332,219 5.4% 330,330 323,555 2.1%
13.Demand Deposits / Total Deposit 36.4% 35.1% 36.1% 35.9% 34.2%
14.Transaction & Savings Deposits 82.9% 81.8% 83.0% 82.6% 80.2%
Total Deposits
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WESTAMERICA BANCORPORATION Public Information January 20, 2005
5. Interest Yields Earned & Rates Paid.
(dollars in thousands)
Q4'04 Q4'03
------------------------------- Q3'04 --------------------------------- 2004
Average Income/ Yield/ Yield/ Average Income/ Yield/ Yield/
Volume Expense Rate Rate Volume Expense Rate Rate
---------------------------------------------------------------------------------------
1. Interest Income Earned to:
2. Total Earning Assets (FTE) $4,352,493 $60,540 5.55% 5.58%$4,149,994 $60,521 5.81% 5.64%
3. Total Loans (FTE) 2,235,375 34,297 6.10% 6.07% 2,285,717 36,760 6.38% 6.14%
4. Commercial Loans (FTE) 620,309 9,959 6.34% 6.16% 616,511 9,438 6.01% 6.09%
5. Commercial Real Estate Loans 740,909 13,793 7.41% 7.38% 826,792 16,061 7.71% 7.45%
6. Consumer Loans 874,157 10,545 4.91% 4.95% 842,414 11,261 5.42% 5.07%
7. Total Investment 2,117,118 26,243 4.96% 5.02% 1,864,277 23,761 5.10% 5.07%
Securities (FTE)
8. Interest Expense Paid to:
9. Total Earning Assets 4,352,493 5,953 0.54% 0.47% 4,149,994 5,763 0.55% 0.50%
10. Total Interest-Bearing 2,912,943 5,953 0.81% 0.69% 2,842,273 5,763 0.80% 0.73%
Liabilities
11. Total Interest-Bearing 2,363,985 3,649 0.61% 0.56% 2,298,573 3,622 0.63% 0.57%
Deposits
12. Interest-Bearing 588,362 213 0.14% 0.11% 569,965 129 0.09% 0.11%
Transaction
13. Savings 1,139,713 874 0.31% 0.34% 1,085,299 1,381 0.50% 0.36%
14. Other Time < $100K 262,064 1,081 1.64% 1.49% 294,904 1,087 1.46% 1.49%
15. Other Time > $100K 373,846 1,481 1.58% 1.30% 348,405 1,025 1.17% 1.27%
16. Total Short-Term Borrowings 527,529 1,988 1.48% 1.05% 418,896 856 0.80% 1.06%
17. Fed Funds Purchased 369,986 1,874 1.98% 1.43% 270,515 686 0.99% 1.38%
18. Other Short-Term Funds 157,543 114 0.29% 0.38% 148,381 170 0.45% 0.45%
19. FHLB Debt 0 0 0.00% 0.00% 105,000 979 3.65% 3.65%
20. Long-Term Debt 21,429 316 5.90% 5.90% 19,804 306 6.18% 5.91%
21.Net Interest Income and $54,587 5.01% 5.11% $54,758 5.26% 5.14%
Margin (FTE)
6. Noninterest Income.
(dollars in thousands)
Q4'04 / Q4'04 / 12/31'04YTD/
Q4'04 Q4'03 Q4'03 Q3'04 Q3'04 12/31'04YTD 12/31'03YTD 12/31'03YTD
---------------------------------------------------------------------------------------
1. Service Charges on Deposit $6,928 $6,572 5.4% $7,465 -7.2% $28,621 $26,381 8.5%
Accounts
2. Merchant Credit Card Income 875 864 1.3% 899 -2.7% 3,509 3,619 -3.0%
3. ATM Fees & Interchange 597 573 4.2% 664 -10.1% 2,487 2,378 4.6%
4. Debit Card Fees 700 512 36.7% 654 7.0% 2,541 2,125 19.6%
5. Financial Services Fees 294 227 29.5% 409 -28.1% 1,250 893 40.0%
6. Mortgage Banking Income 82 139 -41.0% 41 100.0% 386 851 -54.6%
7. Trust Fees 254 235 8.1% 265 -4.2% 1,027 995 3.2%
8. Other Income 1,719 1,371 25.4% 1,405 22.3% 5,977 5,397 10.7%
----------------------- ------------ -----------------------
9. Sub-total 11,449 10,493 9.1% 11,802 -3.0% 45,798 42,639 7.4%
10.Investment Securities (7,180) 0 n/m (14) n/m (5,011) 2,443 n/m
(Impairment) Gains
11.Loss on Extinguishment of Debt 0 0 n/m 0 n/m (2,204) (2,166) 1.8%
----------------------- ------------ -----------------------
12.Total Noninterest Income $4,269 $10,493 -59.3% $11,788 -63.8% $38,583 $42,916 -10.1%
======================= ============ =======================
13.Operating Ratios:
14. Total Revenue (FTE) $58,856 $65,251 -9.8% $66,316 -11.2% $256,576 $260,323 -1.4%
15. Noninterest Income / 7.3% 16.1% 17.8% 15.0% 16.5%
Revenue (FTE)
16. Service Charges / Deposits 0.74% 0.74% 0.82% 0.80% 0.77%
(annualized)
17. Total Revenue Per Share $7.37 $7.96 -7.4% $8.32 -11.4% $8.06 $7.92 1.7%
(annualized)
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WESTAMERICA BANCORPORATION Public Information January 20, 2005
7. Noninterest Expense.
(dollars in thousands)
Q4'04 / Q4'04 / 12/31'04YTD/
Q4'04 Q4'03 Q4'03 Q3'04 Q3'04 12/31'04YTD 12/31'03YTD 12/31'03YTD
---------------------------------------------------------------------------------------
1. Salaries & Benefits $12,595 $13,183 -4.5% $13,054 -3.5% $52,507 $53,974 -2.7%
2. Occupancy 3,022 3,037 -0.5% 3,022 0.0% 11,935 12,152 -1.8%
3. Equipment 1,259 1,290 -2.4% 1,101 14.4% 4,794 5,364 -10.6%
4. Data Processing 1,494 1,523 -1.9% 1,525 -2.0% 6,057 6,121 -1.0%
5. Courier 910 900 1.1% 923 -1.4% 3,605 3,695 -2.4%
6. Postage 361 422 -14.5% 288 25.3% 1,407 1,624 -13.4%
7. Telephone 476 530 -10.2% 529 -10.0% 2,112 1,898 11.3%
8. Professional Fees 537 486 10.5% 411 30.7% 1,869 1,886 -0.9%
9. Stationery & Supplies 351 344 2.0% 333 5.4% 1,280 1,301 -1.6%
10.Loan Expense 237 326 -27.3% 289 -18.0% 1,077 1,322 -18.5%
11.Merchant Card Expense 270 207 30.4% 292 -7.5% 1,104 1,183 -6.7%
12.Operational Losses 217 297 -26.9% 265 -18.1% 964 936 3.0%
13.Amortization of Core Deposit 136 165 -17.6% 136 0.0% 543 743 -26.9%
Deposit Intangibles
14.Other Operating 2,412 2,448 -1.5% 2,323 3.8% 9,497 9,504 -0.1%
----------------------- ------------ -----------------------
15.Total Noninterest Expense $24,277 $25,158 -3.5% $24,491 -0.9% $98,751 $101,703 -2.9%
======================= ============ =======================
16.Full Time Equivalent Staff 960 1,007 -4.7% 980 -2.0% 984 1,026 -4.1%
17.Average Assets / Full Time $4,848 $4,420 9.7% $4,651 4.2% $4,610 $4,223 9.2%
Equivalent Staff
18.Operating Ratios:
19. FTE Revenue / Full Time $244 $257 -5.1% $269 -9.4% $261 $254 2.8%
Equivalent Staff (annualized)
20. Noninterest Expense / 2.22% 2.41% 2.29% 2.33% 2.52%
Earning Assets (annualized)
21. Noninterest Expense/Revenues 41.2% 38.6% 36.9% 38.5% 39.1%
Page 13
WESTAMERICA BANCORPORATION Public Information January 20, 2005
8. Loan Loss Provision.
(dollars in thousands)
Q4'04 / Q4'04 / 12/31'04YTD/
Q4'04 Q4'03 Q4'03 Q3'04 Q3'04 12/31'04YTD 12/31'03YTD 12/31'03YTD
---------------------------------------------------------------------------------------
1. Loan Loss Provision $600 $750 -20.0% $600 0.0% $2,700 $3,300 -18.2%
2. Gross Loan Losses 1,596 1,542 3.5% 1,115 43.1% 5,593 6,833 -18.1%
3. Net Loan Losses 836 1,020 -18.0% 161 n/m 2,458 3,617 -32.0%
4. Recoveries/Gross Losses 48% 34% 86% 56% 47%
5. Average Total Loans $2,235,375 $2,285,717 -2.2%$2,247,664 -0.5%$2,258,482 $2,354,270 -4.1%
6. Net Loan Losses / Loans 0.15% 0.18% 0.03% 0.11% 0.15%
(annualized)
7. Loan Loss Provision / Loans 0.11% 0.13% 0.11% 0.12% 0.14%
(annualized)
8. Loan Loss Provision / 71.8% 73.5% 372.7% 109.8% 91.2%
Net Loan Losses
9. Credit Quality.
(dollars in thousands)
12/31/04 / 12/31/04 /
12/31/04 12/31/03 12/31/03 9/30/04 9/30/04 6/30/04 3/31/04 9/30/03
---------------------------------------------------------------------------------------
1. Nonperforming Nonaccrual Loans $2,970 $5,759 -48.4% $3,996 -25.7% $4,695 $5,045 $5,484
2. Performing Nonaccrual Loans 4,071 1,658 145.5% 2,777 46.6% 2,233 2,212 2,145
----------------------- ------------ ----------------------------------
3. Total Nonaccrual Loans 7,041 7,417 -5.1% 6,773 4.0% 6,928 7,257 7,629
4. Accruing Loans 90+ Days 10 199 -95.0% 182 -94.5% 202 190 272
Past Due ----------------------- ------------ ----------------------------------
5. Total Nonperforming Loans 7,051 7,616 -7.4% 6,955 1.4% 7,130 7,447 7,901
6. Repossessed Collateral 0 90 0 n/m 0 80 742
7. Total Nonperforming Loans & ----------------------- ------------ ----------------------------------
8. Repossessed Collateral $7,051 $7,706 -8.5% $6,955 1.4% $7,130 $7,527 $8,643
======================= ============ ==================================
9. Classified Loans $19,225 $23,460 -18.1% $20,868 -7.9% $21,495 $22,965 $23,479
======================= ============ ==================================
10.Allowance for Loan Losses $54,152 $53,910 0.4% $54,388 -0.4% $53,949 $53,834 $54,180
11.Total Loans Outstanding 2,300,230 2,323,330 -1.0% 2,301,991 -0.1% 2,319,255 2,322,881 2,364,418
12.Total Assets 4,737,268 4,576,385 3.5% 4,636,071 2.2% 4,611,811 4,424,816 4,482,793
13.Allowance for Loan Losses / 2.35% 2.32% 2.36% 2.33% 2.32% 2.29%
Total Loans
14.Nonperforming Loans / 0.31% 0.33% 0.30% 0.31% 0.32% 0.33%
Total Loans
15.Nonperforming Loans & Repossessed
16. Assets/Total Assets 0.15% 0.17% 0.15% 0.15% 0.17% 0.19%
17.Allowance/Nonperforming Loans 768% 708% 782% 757% 723% 686%
18.Allowance for Loan Losses / 282% 230% 261% 251% 234% 231%
Classified Loans
19.Classified Loans /
20. (Equity + Allowance for 4.7% 6.0% 5.1% 5.6% 5.9% 5.8%
Loan Losses)
Page 14
WESTAMERICA BANCORPORATION Public Information January 20, 2005
10.Capital.
(dollars in thousands, except per-share amounts)
12/31/04 / 12/31/04 /
12/31/04 12/31/03 12/31/03 9/30/04 9/30/04 6/30/04 3/31/04 9/30/03
---------------------------------------------------------------------------------------
1. Shareholders' Equity $358,609 $340,371 5.4% $351,924 1.9% $329,795 $338,600 $350,922
2. Tier I Regulatory Capital 327,070 304,734 7.3% 321,700 1.7% 309,037 295,076 312,308
3. Total Regulatory Capital 367,333 342,627 7.2% 361,868 1.5% 350,834 335,535 350,380
4. Total Assets 4,737,268 4,576,385 3.5% 4,636,071 2.2% 4,611,811 4,424,816 4,482,793
5. Risk-Adjusted Assets 2,948,797 3,007,545 -2.0% 2,964,945 -0.5% 2,979,145 2,983,467 3,018,061
6. Shareholders' Equity / 7.57% 7.44% 7.59% 7.15% 7.65% 7.83%
Total Assets
7. Shareholders' Equity / 15.59% 14.65% 15.29% 14.22% 14.58% 14.84%
Total Loans
8. Tier I Capital /Total Assets 6.90% 6.66% 6.94% 6.70% 6.67% 6.97%
9. Tier I Capital / 11.09% 10.13% 10.85% 10.37% 9.89% 10.35%
Risk-Adjusted Assets
10.Total Capital / 12.46% 11.39% 12.20% 11.78% 11.25% 11.61%
Risk-Adjusted Assets
11.Shares Outstanding 31,640 32,287 -2.0% 31,716 -0.2% 31,784 31,787 32,723
12.Book Value Per Share ($) $11.33 $10.54 7.5% $11.10 2.1% $10.38 $10.65 $10.72
13.Market Value Per Share ($) 58.31 49.78 17.1% 54.89 6.2% 52.45 50.46 44.48
14.Share Repurchase Programs
(shares in thousands)
Q4'04 / Q4'04 / 12/31'04YTD/
Q4'04 Q4'03 Q4'03 Q3'04 Q3'04 12/31'04YTD 12/31'03YTD 12/31'03YTD
---------------------------------------------------------------------------------------
15.Total Shares Repurchased / 242 530 -54.3% 92 163.0% 1,062 1,570 -32.4%
Canceled
16. Average Repurchase Price $58.85 $50.80 15.8% $51.95 13.3% $52.00 $44.97 15.6%
17.Net Shares Repurchased (Issued) 76 436 n/m 68 11.8% 647 1,124 -42.4%
Page 15
WESTAMERICA BANCORPORATION Public Information January 20, 2005
11.Period-End Balance Sheets.
(dollars in thousands)
12/31/04 / 12/31/04 /
12/31/04 12/31/03 12/31/03 9/30/04 9/30/04 6/30/04 3/31/04 9/30/03
---------------------------------------------------------------------------------------
1. Assets:
2. Cash and Money Market Assets $126,687 $190,162 -33.4% $165,811 -23.6% $186,056 $167,183 $189,902
3. Investment Securities 931,710 1,413,911 -34.1% 967,266 -3.7% 1,024,798 1,219,364 1,245,311
Available For Sale
4. Investment Securities 1,260,832 535,377 135.5% 1,080,392 16.7% 960,522 586,171 569,996
Held to Maturity
5. Loans, gross 2,300,230 2,323,330 -1.0% 2,301,991 -0.1% 2,319,255 2,322,881 2,364,418
6. Allowance For Loan Losses (54,152) (53,910) 0.4% (54,388) -0.4% (53,949) (53,834) (54,180)
----------------------- ------------ ----------------------------------
7. Loans, net 2,246,078 2,269,420 -1.0% 2,247,603 -0.1% 2,265,306 2,269,047 2,310,238
8. ----------------------- ------------ ----------------------------------
9. Premises and Equipment 35,223 35,748 -1.5% 35,267 -0.1% 35,343 35,412 35,566
10. Core Deposit Intangible 2,894 3,438 -15.8% 3,030 -4.5% 3,166 3,302 3,602
Assets
11. Goodwill 18,996 18,996 0.0% 18,996 0.0% 18,996 18,996 18,996
12. Interest Receivable and 114,848 109,333 5.0% 117,706 -2.4% 117,624 125,341 109,182
Other Assets
----------------------- ------------ ----------------------------------
13.Total Assets $4,737,268 $4,576,385 3.5%$4,636,071 2.2%$4,611,811 $4,424,816 $4,482,793
======================= ============ ==================================
14.Liabilities and Shareholders' Equity:
15. Deposits:
16. Noninterest Bearing $1,273,825 $1,240,379 2.7%$1,323,446 -3.7%$1,272,278 $1,210,829 $1,213,578
17. Interest-Bearing 591,593 561,696 5.3% 561,206 5.4% 569,575 562,369 559,031
Transaction
18. Savings 1,091,981 1,058,082 3.2% 1,119,356 -2.4% 1,072,701 1,049,435 1,075,625
19. Time 626,220 603,834 3.7% 641,798 -2.4% 590,875 624,543 687,895
----------------------- ------------ ----------------------------------
20. Total Deposits 3,583,619 3,463,991 3.5% 3,645,806 -1.7% 3,505,429 3,447,176 3,536,129
----------------------- ------------ ----------------------------------
21. Short-Term Borrowed Funds 735,423 590,646 24.5% 578,285 27.2% 712,553 491,704 433,348
22. FHLB Debt 0 105,000 n/m 0 n/m 0 20,000 105,000
23. Debt Financing and 21,429 24,643 -13.0% 21,429 0.0% 21,429 21,429 9,643
24. Notes Payable
25. Liability For Interest, 38,188 51,734 -26.2% 38,627 -1.1% 42,605 105,907 47,751
Taxes and Other
----------------------- ------------ ----------------------------------
26.Total Liabilities 4,378,659 4,236,014 3.4% 4,284,147 2.2% 4,282,016 4,086,216 4,131,871
----------------------- ------------ ----------------------------------
27.Shareholders' Equity:
28. Paid-In Capital $229,975 $220,285 4.4% $224,489 2.4% $224,042 $219,301 $220,527
29. Unrealized Gain (Loss) on
InvestmentSecurities
30. Available For Sale 9,638 13,191 -26.9% 8,185 17.8% (1,416) 21,213 16,004
31. Retained Earnings 118,996 106,895 11.3% 119,250 -0.2% 107,169 98,086 114,391
----------------------- ------------ ----------------------------------
32.Total Shareholders' Equity 358,609 340,371 5.4% 351,924 1.9% 329,795 338,600 350,922
----------------------- ------------ ----------------------------------
33.Total Liabilities and $4,737,268 $4,576,385 3.5%$4,636,071 2.2%$4,611,811 $4,424,816 $4,482,793
Shareholders' Equity ======================= ============ ==================================
Page 16
WESTAMERICA BANCORPORATION Public Information January 20, 2005
12.Income Statements.
(dollars in thousands, except per-share amounts)
Q4'04 / Q4'04 / 12/31'04YTD/
Q4'04 Q4'03 Q4'03 Q3'04 Q3'04 12/31'04YTD 12/31'03YTD 12/31'03YTD
---------------------------------------------------------------------------------------
1. Interest and Fee Income:
2. Loans $32,889 $35,434 -7.2% $32,912 -0.1% $133,226 $152,758 -12.8%
3. Money Market Assets and 1 2 n/m 0 n/m 1 8 n/m
Funds Sold
4. Investment Securities 10,096 14,164 -28.7% 10,721 -5.8% 47,745 50,948 -6.3%
Available For Sale
5. Investment Securities 11,764 5,211 125.8% 10,271 14.5% 35,365 19,779 78.8%
Held to Maturity
----------------------- ------------ -----------------------
6. Total Interest Income 54,750 54,811 -0.1% 53,904 1.6% 216,337 223,493 -3.2%
----------------------- ------------ -----------------------
7. Interest Expense:
8. Transaction Deposits 213 129 65.1% 164 29.9% 612 727 -15.8%
9. Savings Deposits 874 1,381 -36.7% 954 -8.4% 3,931 6,091 -35.5%
10. Time Deposits 2,562 2,112 21.3% 2,135 20.0% 8,504 10,167 -16.4%
11. Short-Term Borrowed Funds 1,988 856 132.2% 1,473 35.0% 5,878 3,415 72.1%
12. Federal Home Loan Bank 0 979 n/m 0 n/m 897 5,318 -83.1%
Advances
13. Debt Financing and 316 306 3.3% 316 0.0% 1,284 1,479 -13.2%
Notes Payable
----------------------- ------------ -----------------------
14.Total Interest Expense 5,953 5,763 3.3% 5,042 18.1% 21,106 27,197 -22.4%
----------------------- ------------ -----------------------
15.Net Interest Income 48,797 49,048 -0.5% 48,862 -0.1% 195,231 196,296 -0.5%
----------------------- ------------ -----------------------
16.Provision for Loan Losses 600 750 -20.0% 600 0.0% 2,700 3,300 -18.2%
----------------------- ------------ -----------------------
17.Noninterest Income:
18. Service Charges on 6,928 6,572 5.4% 7,465 -7.2% 28,621 26,381 8.5%
Deposit Accounts
19. Merchant Credit Card 875 864 1.3% 899 -2.7% 3,509 3,619 -3.0%
20. Financial Services 294 227 29.5% 409 -28.1% 1,250 893 40.0%
Commissions
21. Mortgage Banking 82 139 -41.0% 41 100.0% 386 851 -54.6%
22. Trust Fees 254 235 8.1% 265 -4.2% 1,027 995 3.2%
23. Securities (Impairment) (7,180) 0 n/m (14) n/m (5,011) 2,443 n/m
Gains
24. Loss on Extinguishment 0 0 n/m 0 n/m (2,204) (2,166) 1.8%
of Debt
25. Other 3,016 2,456 22.8% 2,723 10.8% 11,005 9,900 11.2%
----------------------- ------------ -----------------------
26.Total Noninterest Income 4,269 10,493 -59.3% 11,788 -63.8% 38,583 42,916 -10.1%
----------------------- ------------ -----------------------
27.Noninterest Expense:
28. Salaries and Related Benefits 12,595 13,183 -4.5% 13,054 -3.5% 52,507 53,974 -2.7%
29. Occupancy 3,022 3,037 -0.5% 3,022 0.0% 11,935 12,152 -1.8%
30. Equipment 1,259 1,290 -2.4% 1,101 14.4% 4,794 5,364 -10.6%
31. Data Processing 1,494 1,523 -1.9% 1,525 -2.0% 6,057 6,121 -1.0%
32. Professional Fees 537 486 10.5% 411 30.7% 1,869 1,886 -0.9%
33. Other 5,370 5,639 -4.8% 5,378 -0.1% 21,589 22,206 -2.8%
----------------------- ------------ -----------------------
34.Total Noninterest Expense 24,277 25,158 -3.5% 24,491 -0.9% 98,751 101,703 -2.9%
----------------------- ------------ -----------------------
35.Income Before Income Taxes 28,189 33,633 -16.2% 35,559 -20.7% 132,363 134,209 -1.4%
36.Provision for income taxes 7,024 9,325 -24.7% 10,464 -32.9% 37,144 39,146 -5.1%
----------------------- ------------ -----------------------
37.Net Income $21,165 $24,308 -12.9% $25,095 -15.7% $95,219 $95,063 0.2%
======================= ============ =======================
38.Average Shares Outstanding 31,761 32,523 -2.3% 31,713 0.2% 31,821 32,849 -3.1%
39.Diluted Average Shares 32,487 33,154 -2.0% 32,352 0.4% 32,461 33,369 -2.7%
Outstanding
40.Per Share Data:
41. Basic Earnings $0.67 $0.75 -10.8% $0.79 -15.8% $2.99 $2.89 3.4%
42. Diluted Earnings 0.65 0.73 -11.1% 0.78 -16.0% 2.93 2.85 3.0%
43. Dividends Paid 0.28 0.26 7.7% 0.28 0.0% 1.10 1.00 10.0%