Westamerica Bancorporation Reports Fourth Quarter 2013 Earnings

SAN RAFAEL, Calif., Jan. 16, 2014 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq:WABC), parent company of Westamerica Bank, generated net income for the fourth quarter 2013 of $16.1 million and diluted earnings per common share ("EPS") of $0.60. Fourth quarter 2013 results compare to net income of $16.7 million and EPS of $0.63 for the prior quarter, and net income of $19.1 million and EPS of $0.70 for the fourth quarter 2012.

"Westamerica's credit quality continued to improve with nonperforming assets declining to $35 million at December 31, 2013 from $52 million at September 30, 2013. As a result, we reduced our provision for loan losses to $1.6 million for the fourth quarter 2013 from $1.8 million for the third quarter 2013. Originated loan volumes stabilized at $1.5 billion, however, purchased loan volumes continued to decline. Low market interest rates continue to pressure our net interest margin which was an annualized 3.92 percent for the fourth quarter 2013," said Chairman, President and CEO David Payne. "Our lower-risk balance sheet continues to generate a relatively high annualized return on common equity of 11.8 percent for the fourth quarter 2013."

Net interest income on a fully taxable equivalent ("FTE") basis was $40.1 million for the fourth quarter 2013, compared to $41.2 million for the prior quarter and $46.3 million for the fourth quarter 2012. The change in net interest income is due to reductions in yields on loans and investment securities, which have declined during this period of low market interest rates. The change in net interest income is also attributable to reduced loan volumes, placing greater reliance on lower-yielding investment securities. Loan volumes have declined due to problem loan workout activities, particularly with purchased loans, and reduced volumes of loan originations. In Management's opinion, current levels of competitive loan pricing do not provide adequate forward earnings potential, and competitive loan underwriting standards have loosened which increases credit risk. Management is avoiding low-yielding higher-risk loans. To offset the decline in interest income, interest expense has been lowered by reducing the volume of higher-cost funding sources. The annualized interest cost of funding the Company's loans and investment securities was 0.10 percent for the fourth quarter 2013 compared to 0.11 percent for the prior quarter and 0.13 percent for the fourth quarter 2012. The annualized net interest margin on a fully taxable equivalent basis was 3.92 percent for the fourth quarter 2013, compared to 4.01 percent for the prior quarter and 4.49 percent for the fourth quarter 2012.

The provision for loan losses was $1.6 million for the fourth quarter 2013 compared to $1.8 million for the prior quarter and $2.8 million for the fourth quarter 2012. Net loan losses charged against the allowance for loan losses totaled $1.8 million for the fourth quarter 2013, compared to $0.8 million for the prior quarter and $3.5 million for the fourth quarter 2012. At December 31, 2013, the allowance for loan losses totaled $31.7 million; nonperforming originated loans totaled $5.8 million; nonperforming purchased FDIC-indemnified loans totaled $12.3 million, net of purchase discounts of $0.5 million; and nonperforming purchased non-indemnified loans totaled $3.6 million, net of purchase discounts of $0.4 million.

Noninterest income for the fourth quarter 2013 totaled $14.0 million, compared to $14.4 million for the prior quarter and $14.2 million for the fourth quarter 2012.

Noninterest expense for the fourth quarter 2013 totaled $28.0 million, compared to $27.8 million in the prior quarter and $28.2 million for the fourth quarter 2012. Fourth quarter 2013 personnel costs increased due to re-measuring stock-based compensation based on the Company's share price.

At December 31, 2013, Westamerica Bancorporation's tangible common equity-to-asset ratio was 8.6 percent, assets totaled $4.8 billion and loans outstanding totaled $1.8 billion. Westamerica Bancorporation, through its wholly owned subsidiary Westamerica Bank, operates commercial banking and trust offices throughout Northern and Central California.

Westamerica Bancorporation Web Address: www.westamerica.com

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 reports filed with the Securities and Exchange Commission, including the annual report for the year ended December 31, 2012 filed on Form 10-K and quarterly report for the quarter ended September 30, 2013 filed on Form 10-Q, describe some of these factors, including certain credit, interest rate, operational, liquidity and market 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 Dodd-Frank Wall Street Reform and Consumer Protection Act of 2011, 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.

Public Information January 16, 2014
WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
December 31, 2013
1. Net Income Summary.
(in thousands except per-share amounts)
%
Q4'13 Q4'12 Change Q3'13
Net Interest and Fee Income (FTE) $40,050 $46,283 -13.5% $41,224
Provision for Loan Losses 1,600 2,800 -42.9% 1,800
Noninterest Income 14,030 14,194 -1.2% 14,419
Noninterest Expense 27,987 28,233 -0.9% 27,758
Income Before Taxes (FTE) 24,493 29,444 -16.8% 26,085
Income Tax Provision (FTE) 8,437 10,308 -18.2% 9,347
Net Income $16,056 $19,136 -16.1% $16,738
Average Common Shares Outstanding 26,609 27,313 -2.6% 26,670
Diluted Average Common Shares 26,754 27,334 -2.1% 26,705
Operating Ratios:
Basic Earnings Per Common Share $0.60 $0.70 -14.3% $0.63
Diluted Earnings Per Common Share 0.60 0.70 -14.3% 0.63
Return On Assets (a) 1.31% 1.55% 1.37%
Return On Common Equity (a) 11.8% 14.1% 12.4%
Net Interest Margin (FTE) (a) 3.92% 4.49% 4.01%
Efficiency Ratio (FTE) 51.8% 46.7% 49.9%
Dividends Paid Per Common Share $0.38 $0.37 2.7% $0.37
Common Dividend Payout Ratio 63% 53% 59%
%
12/31'13YTD 12/31'12YTD Change
Net Interest and Fee Income (FTE) $167,737 $197,027 -14.9%
Provision for Loan Losses 8,000 11,200 -28.6%
Noninterest Income:
Loss on Sale of Securities - (1,287) n/m
Other 57,011 58,309 -2.2%
Total Noninterest Income 57,011 57,022 0.0%
Noninterest Expense 112,614 116,885 -3.7%
Income Before Taxes (FTE) 104,134 125,964 -17.3%
Income Tax Provision (FTE) 36,957 44,837 -17.6%
Net Income $67,177 $81,127 -17.2%
Average Common Shares Outstanding 26,826 27,654 -3.0%
Diluted Average Common Shares 26,877 27,699 -3.0%
Operating Ratios:
Basic Earnings Per Common Share $2.50 $2.93 -14.7%
Diluted Earnings Per Common Share 2.50 2.93 -14.7%
Return On Assets (a) 1.38% 1.64%
Return On Common Equity (a) 12.5% 14.9%
Net Interest Margin (FTE) (a) 4.08% 4.79%
Efficiency Ratio (FTE) 50.1% 46.0%
Dividends Paid Per Common Share $1.49 $1.48 0.7%
Common Dividend Payout Ratio 60% 51%
2. Net Interest Income.
(dollars in thousands)
%
Q4'13 Q4'12 Change Q3'13
Interest and Fee Income (FTE) $41,074 $47,614 -13.7% $42,400
Interest Expense 1,024 1,331 -23.0% 1,176
Net Interest and Fee Income (FTE) $40,050 $46,283 -13.5% $41,224
Average Earning Assets $4,062,976 $4,111,970 -1.2% $4,093,727
Average Interest-Bearing Liabilities 2,523,585 2,663,389 -5.2% 2,539,219
Yield on Earning Assets (FTE) (a) 4.02% 4.62% 4.12%
Cost of Funds (a) 0.10% 0.13% 0.11%
Net Interest Margin (FTE) (a) 3.92% 4.49% 4.01%
Interest Expense/Interest-Bearing Liabilities (a) 0.16% 0.20% 0.18%
Net Interest Spread (FTE) (a) 3.86% 4.42% 3.94%
%
12/31'13YTD 12/31'12YTD Change
Interest and Fee Income (FTE) $172,408 $202,771 -15.0%
Interest Expense 4,671 5,744 -18.7%
Net Interest and Fee Income (FTE) $167,737 $197,027 -14.9%
Average Earning Assets $4,109,671 $4,115,339 -0.1%
Average Interest-Bearing Liabilities 2,584,781 2,745,497 -5.9%
Yield on Earning Assets (FTE) (a) 4.19% 4.93%
Cost of Funds (a) 0.11% 0.14%
Net Interest Margin (FTE) (a) 4.08% 4.79%
Interest Expense/ Interest-Bearing Liabilities (a) 0.18% 0.21%
Net Interest Spread (FTE) (a) 4.01% 4.72%
3. Loans & Other Earning Assets.
(average volume, dollars in thousands)
%
Q4'13 Q4'12 Change Q3'13
Total Assets $4,876,884 $4,920,620 -0.9% $4,830,475
Total Earning Assets 4,062,976 4,111,970 -1.2% 4,093,727
Total Loans 1,846,700 2,155,059 -14.3% 1,902,389
Commercial Loans 364,534 425,035 -14.2% 364,638
Commercial RE Loans 817,090 939,943 -13.1% 847,154
Consumer Loans 665,076 790,081 -15.8% 690,597
Total Investment Securities 2,216,276 1,956,911 13.3% 2,191,338
Available For Sale (Market) 1,081,164 796,998 35.7% 1,049,962
Held To Maturity 1,135,112 1,159,913 -2.1% 1,141,376
Unrealized (Loss) Gain (19,623) 28,516 n/m (11,107)
Loans/Deposits 44.1% 51.2% 46.1%
%
12/31'13YTD 12/31'12YTD Change
Total Assets $4,863,862 $4,954,302 -1.8%
Total Earning Assets 4,109,671 4,115,339 -0.1%
Total Loans 1,954,581 2,314,870 -15.6%
Commercial Loans 379,023 474,436 -20.1%
Commercial RE Loans 862,266 1,016,805 -15.2%
Consumer Loans 713,292 823,629 -13.4%
Total Investment Securities 2,155,090 1,800,469 19.7%
Available For Sale (Market) 1,009,329 705,606 43.0%
Held To Maturity 1,145,761 1,094,863 4.6%
Unrealized (Loss) Gain (19,623) 28,516 n/m
Loans/Deposits 47.0% 54.9%
4. Deposits, Other Interest-Bearing Liabilities & Equity.
(average volume, dollars in thousands)
%
Q4'13 Q4'12 Change Q3'13
Total Deposits $4,189,135 $4,211,609 -0.5% $4,130,881
Noninterest Demand 1,759,495 1,654,575 6.3% 1,699,169
Interest Bearing Transaction 763,924 761,395 0.3% 751,317
Savings 1,160,422 1,146,891 1.2% 1,138,491
Time greater than $100K 288,691 400,556 -27.9% 317,630
Time less than $100K 216,603 248,192 -12.7% 224,274
Total Short-Term Borrowings 54,208 55,523 -2.4% 56,844
Federal Home Loan Bank Advances 24,846 25,832 -3.8% 25,663
Term Repurchase Agreement 10,000 10,000 0.0% 10,000
Debt Financing 4,891 15,000 -67.4% 15,000
Shareholders' Equity 537,709 541,684 -0.7% 534,634
Demand Deposits/Total Deposits 42.0% 39.3% 41.1%
Transaction & Savings Deposits / Total Deposits 87.9% 84.6% 86.9%
%
12/31'13YTD 12/31'12YTD Change
Total Deposits $4,162,823 $4,217,239 -1.3%
Noninterest Demand 1,683,447 1,603,981 5.0%
Interest Bearing Transaction 758,771 754,979 0.5%
Savings 1,151,360 1,132,980 1.6%
Time greater than $100K 341,184 460,833 -26.0%
Time less than $100K 228,061 264,466 -13.8%
Total Short-Term Borrowings 57,454 81,323 -29.4%
Federal Home Loan Bank Advances 25,499 25,916 -1.6%
Term Repurchase Agreement 10,000 10,000 0.0%
Debt Financing 12,452 15,000 -17.0%
Shareholders' Equity 538,165 543,309 -0.9%
Demand Deposits/ Total Deposits 40.4% 38.0%
Transaction & Savings Deposits / Total Deposits 86.3% 82.8%
5. Interest Yields Earned & Rates Paid.
(dollars in thousands)
Q4'13
Average Income/ Yield (a) /
Volume Expense Rate
Interest & Fee Income Earned
Total Earning Assets (FTE) $4,062,976 $41,074 4.02%
Total Loans (FTE) 1,846,700 24,444 5.25%
Commercial Loans (FTE) 364,534 5,679 6.18%
Commercial RE Loans 817,090 12,486 6.06%
Consumer Loans 665,076 6,279 3.75%
Total Investments (FTE) 2,216,276 16,630 3.00%
Interest Expense Paid
Total Earning Assets 4,062,976 1,024 0.10%
Total Interest-Bearing Liabilities 2,523,585 1,024 0.16%
Total Interest-Bearing Deposits 2,429,640 793 0.13%
Interest-Bearing Transaction 763,924 67 0.03%
Savings 1,160,422 232 0.08%
Time less than $100K 216,603 242 0.44%
Time greater than $100K 288,691 252 0.35%
Total Short-Term Borrowings 54,208 20 0.14%
Federal Home Loan Bank Advances 24,846 120 1.91%
Term Repurchase Agreement 10,000 24 0.98%
Debt Financing 4,891 67 5.46%
Net Interest Income and Margin (FTE) $40,050 3.92%
Q4'12
Average Income/ Yield (a) /
Volume Expense Rate
Interest & Fee Income Earned
Total Earning Assets (FTE) $4,111,970 $47,614 4.62%
Total Loans (FTE) 2,155,059 30,267 5.59%
Commercial Loans (FTE) 425,035 6,983 6.54%
Commercial RE Loans 939,943 15,067 6.38%
Consumer Loans 790,081 8,217 4.14%
Total Investments (FTE) 1,956,911 17,347 3.54%
Interest Expense Paid
Total Earning Assets 4,111,970 1,331 0.13%
Total Interest-Bearing Liabilities 2,663,389 1,331 0.20%
Total Interest-Bearing Deposits 2,557,034 970 0.15%
Interest-Bearing Transaction 761,395 70 0.04%
Savings 1,146,891 234 0.08%
Time less than $100K 248,192 332 0.53%
Time greater than $100K 400,556 334 0.33%
Total Short-Term Borrowings 55,523 14 0.10%
Federal Home Loan Bank Advances 25,832 122 1.87%
Term Repurchase Agreement 10,000 25 0.97%
Debt Financing 15,000 200 5.35%
Net Interest Income and Margin (FTE) $46,283 4.49%
6. Noninterest Income.
(dollars in thousands except per-share amounts)
%
Q4'13 Q4'12 Change Q3'13
Service Charges on Deposits $6,266 $6,722 -6.8% $6,433
Merchant Processing Services 2,058 2,401 -14.3% 2,151
Debit Card Fees 1,527 1,357 12.5% 1,467
Other Service Fees 672 679 -1.0% 716
ATM Processing Fees 630 749 -15.8% 701
Trust Fees 593 552 7.3% 567
Financial Services Commissions 218 148 46.7% 150
Other Income 2,066 1,586 30.3% 2,234
Total Noninterest Income $14,030 $14,194 -1.2% $14,419
Total Revenue (FTE) $54,080 $60,477 -10.6% $55,643
Noninterest Income/Revenue (FTE) 25.9% 23.5% 25.9%
Service Charges/Avg. Deposits (a) 0.59% 0.63% 0.62%
Total Revenues (FTE) Per Avg. Common Share (a) $8.06 $8.81 -8.5% $8.28
%
12/31'13YTD 12/31'12YTD Change
Service Charges on Deposits $25,693 $27,691 -7.2%
Merchant Processing Services 9,031 9,734 -7.2%
Debit Card Fees 5,829 5,173 12.7%
Other Service Fees 2,846 2,801 1.6%
ATM Processing Fees 2,758 3,396 -18.8%
Trust Fees 2,313 2,078 11.3%
Financial Services Commissions 831 689 20.7%
Loss on Sale of Securities - (1,287) n/m
Other Income 7,710 6,747 14.3%
Total Noninterest Income $57,011 $57,022 0.0%
Total Revenue (FTE) $224,748 $254,049 -11.5%
Noninterest Income/Revenue (FTE) 25.4% 22.4%
Service Charges/Avg. Deposits (a) 0.62% 0.66%
Total Revenues (FTE) Per Avg. Common Share (a) $8.38 $9.19 -8.8%
7. Noninterest Expense.
(dollars in thousands)
%
Q4'13 Q4'12 Change Q3'13
Salaries & Benefits $14,340 $13,555 5.8% $13,826
Occupancy 3,784 3,851 -1.7% 3,829
Outsourced Data Processing 2,112 2,213 -4.6% 2,139
Amortization of Identifiable Intangibles 1,157 1,292 -10.4% 1,163
Professional Fees 947 761 24.4% 730
Furniture & Equipment 994 892 11.4% 974
Other Real Estate Owned 245 322 -24.2% 179
Courier Service 664 768 -13.5% 725
Other Operating 3,744 4,579 -18.2% 4,193
Total Noninterest Expense $27,987 $28,233 -0.9% $27,758
Noninterest Expense/Avg. Earning Assets (a) 2.73% 2.73% 2.69%
Noninterest Expense/Revenues (FTE) 51.8% 46.7% 49.9%
%
12/31'13YTD 12/31'12YTD Change
Salaries & Benefits $56,633 $57,388 -1.3%
Occupancy 15,137 15,460 -2.1%
Outsourced Data Processing 8,548 8,531 0.2%
Amortization of Identifiable Intangibles 4,704 5,368 -12.4%
Professional Fees 3,057 3,217 -5.0%
Furniture & Equipment 3,869 3,775 2.5%
Other Real Estate Owned 1,035 1,235 -16.2%
Courier Service 2,868 3,117 -8.0%
Other Operating 16,763 18,794 -10.8%
Total Noninterest Expense $112,614 $116,885 -3.7%
Noninterest Expense/Avg. Earning Assets (a) 2.74% 2.84%
Noninterest Expense/Revenues (FTE) 50.1% 46.0%
8. Provision for Loan Losses.
(dollars in thousands)
%
Q4'13 Q4'12 Change Q3'13
Average Total Loans $1,846,700 $2,155,059 -14.3% $1,902,389
Avg. Total Purchased Covered Loans (1) 274,752 394,848 -30.4% 310,650
Avg. Total Purchased Non-Covered Loans (2) 55,489 77,632 -28.5% 59,145
Avg. Total Originated Loans 1,516,459 1,682,579 -9.9% 1,532,594
Allowance for Loan Loss (ALL) Beginning of Period $31,916 $30,966 3.1% $30,926
Provision for Loan Losses 1,600 2,800 -42.9% 1,800
Net ALL Losses (1,823) (3,532) -48.4% (810)
ALL End of Period $31,693 $30,234 4.8% $31,916
ALL Recoveries/Gross ALL Losses 41% 23% 53%
Net ALL Losses/Avg. Loans:
Originated Loans (a) 0.11% 0.91% 0.20%
Purchased Covered Loans (1)(a) 1.65% 0.14% 0.02%
Purchased Non-Covered Loans (2)(a) 1.92% -2.31% 0.00%
%
12/31'13YTD 12/31'12YTD Change
Average Total Loans $1,954,581 $2,314,870 -15.6%
Avg. Total Purchased Covered Loans (1) 322,505 455,463 -29.2%
Avg. Total Purchased Non-Covered Loans (2) 63,295 100,358 -36.9%
Avg. Total Originated Loans 1,568,781 1,759,049 -10.8%
Allowance for Loan Loss (ALL) Beginning of Period $30,234 $32,597 -7.2%
Provision for Loan Losses 8,000 11,200 -28.6%
Net ALL Losses (6,541) (13,563) -51.8%
ALL End of Period $31,693 $30,234 4.8%
ALL Recoveries/Gross ALL Losses 39% 25%
Net ALL Losses/Avg. Loans:
Originated Loans (a) 0.26% 0.72%
Purchased Covered Loans (1)(a) 0.62% 0.18%
Purchased Non-Covered Loans (2)(a) 0.61% 0.11%
9. Credit Quality.
(dollars in thousands)
%
12/31/13 12/31/12 Change 9/30/13
Nonperforming Originated Loans:
Nonperforming Nonaccrual $5,301 $10,016 -47.1% $5,786
Performing Nonaccrual 75 1,759 -95.7% 1,093
Total Nonaccrual Loans 5,376 11,775 -54.3% 6,879
90+ Days Past Due Accruing Loans 410 455 -9.9% 392
Total 5,786 12,230 -52.7% 7,271
Repossessed Loan Collateral 5,527 9,295 -40.5% 3,162
Total Nonperforming Originated Assets 11,313 21,525 -47.4% 10,433
Nonperforming Purchased Covered Loans (1):
Nonperforming Nonaccrual 11,672 11,698 -0.2% 24,348
Performing Nonaccrual 636 1,323 -51.9% 1,937
Total Nonaccrual Loans 12,308 13,021 -5.5% 26,285
90+ Days Past Due Accruing Loans - 155 n/m 23
Total 12,308 13,176 -6.6% 26,308
Repossessed Purchased Covered Loan Collateral (1) 7,793 13,691 -43.1% 9,273
Total Nonperforming Purchased Covered Assets (1) 20,101 26,867 -25.2% 35,581
Nonperforming Purchased Non-Covered Loans (2):
Nonperforming Nonaccrual 2,920 7,038 -58.5% 2,664
Performing Nonaccrual 698 461 51.4% 701
Total Nonaccrual Loans 3,618 7,499 -51.8% 3,365
90+ Days Past Due Accruing Loans - 4 n/m -
Total 3,618 7,503 -51.8% 3,365
Repossessed Purchased Non-Covered Loan Collateral (2) - 3,366 n/m 2,535
Total Nonperforming Purchased Non-Covered Assets (2) 3,618 10,869 -66.7% 5,900
Total Nonperforming Assets $35,032 $59,261 -40.9% $51,914
Total Originated Loans Outstanding $1,523,284 $1,664,183 -8.5% $1,523,090
Total Purchased Covered Loans Outstanding (1) 250,670 372,283 -32.7% 296,380
Total Purchased Non-Covered Loans Outstanding (2) 53,790 74,891 -28.2% 57,838
Total Loans Outstanding $1,827,744 $2,111,357 -13.4% $1,877,308
Total Assets $4,847,055 $4,952,193 -2.1% $4,806,487
Originated Loans:
Allowance for Loan Losses $31,693 $30,234 4.8% $31,916
Allowance/Originated Loans 2.08% 1.82% 2.10%
Nonperforming Originated Loans/ Total Originated Loans 0.38% 0.73% 0.48%
Purchased Covered Loans (1):
Fair Value Discount on Purchased Covered Loans $10,933 $26,128 $14,489
Discount/Purchased Covered Loans, gross 4.18% 6.56% 4.66%
Nonperforming Purchased Covered Loans/Total Purchased Covered Loans 4.91% 3.54% 8.88%
Purchased Non-Covered Loans (2):
Fair Value Discount on Purchased Non-Covered Loans $3,245 $5,226 $2,989
Discount/Purchased Non-Covered Loans, gross 5.69% 6.52% 4.91%
Nonperforming Purchased Non-Covered Loans/Total Purchased Non-Covered Loans 6.73% 10.02% 5.82%
10. Capital.
(in thousands, except per-share amounts)
%
12/31/13 12/31/12 Change 9/30/13
Shareholders' Equity $542,934 $560,102 -3.1% $541,840
Tier I Regulatory Capital 405,798 409,763 -1.0% 404,189
Total Regulatory Capital 446,331 444,205 0.5% 442,920
Total Assets 4,847,055 4,952,193 -2.1% 4,806,487
Risk-Adjusted Assets 2,759,311 2,720,332 1.4% 2,769,664
Shareholders' Equity/Total Assets 11.20% 11.31% 11.27%
Shareholders' Equity/Total Loans 29.71% 26.53% 28.86%
Tier I Capital/Total Assets 8.37% 8.27% 8.41%
Tier I Capital/Risk-Adjusted Assets 14.71% 15.06% 14.59%
Total Regulatory Capital/Risk-Adjusted Assets 16.18% 16.33% 15.99%
Tangible Common Equity Ratio 8.56% 8.64% 8.58%
Common Shares Outstanding 26,510 27,213 -2.6% 26,578
Common Equity Per Share $20.48 $20.58 -0.5% $20.39
Market Value Per Common Share $56.46 $42.59 32.6% $49.74
Share Repurchase Programs
(shares in thousands)
%
Q4'13 Q4'12 Change Q3'13
Total Shares Repurchased 326 299 9.3% 256
Average Repurchase Price $53.74 $42.92 25.2% $48.48
Net Shares Repurchased 68 183 -62.5% 191
%
12/31'13YTD 12/31'12YTD Change
Total Shares Repurchased 1,199 1,135 5.6%
Average Repurchase Price $47.81 $45.38 5.4%
Net Shares Repurchased 703 937 -24.9%
11. Period-End Balance Sheets.
(unaudited, dollars in thousands)
%
12/31/13 12/31/12 Change 9/30/13
Assets:
Cash and Due from Banks $472,028 $491,382 -3.9% $388,579
Investment Securities:
Available For Sale 1,079,381 825,636 30.7% 1,060,428
Held to Maturity 1,132,299 1,156,041 -2.1% 1,141,083
Purchased Covered Loans (1) 250,670 372,283 -32.7% 296,380
Purchased Non-Covered Loans (2) 53,790 74,891 -28.2% 57,838
Originated Loans 1,523,284 1,664,183 -8.5% 1,523,090
Allowance For Loan Losses (31,693) (30,234) 4.8% (31,916)
Total Loans, net 1,796,051 2,081,123 -13.7% 1,845,392
Non-Covered Other Real Estate Owned 5,527 12,661 -56.3% 5,697
Covered Other Real Estate Owned (1) 7,793 13,691 -43.1% 9,273
Premises and Equipment, net 37,314 38,639 -3.4% 37,972
Identifiable Intangibles, net 18,557 23,261 -20.2% 19,714
Goodwill 121,673 121,673 0.0% 121,673
Other Assets 176,432 188,086 -6.2% 176,676
Total Assets $4,847,055 $4,952,193 -2.1% $4,806,487
Liabilities and Shareholders' Equity:
Deposits:
Noninterest Bearing $1,740,182 $1,676,071 3.8% $1,689,986
Interest-Bearing Transaction 763,088 748,818 1.9% 737,029
Savings 1,167,744 1,165,032 0.2% 1,150,219
Time 492,767 642,571 -23.3% 531,073
Total Deposits 4,163,781 4,232,492 -1.6% 4,108,307
Short-Term Borrowed Funds 62,668 53,687 16.7% 47,821
Federal Home Loan Bank Advances 20,577 25,799 -20.2% 25,631
Term Repurchase Agreement 10,000 10,000 0.0% 10,000
Debt Financing - 15,000 n/m 15,000
Other Liabilities 47,095 55,113 -14.5% 57,888
Total Liabilities 4,304,121 4,392,091 -2.0% 4,264,647
Shareholders' Equity:
Common Equity:
Paid-In Capital 381,657 375,113 1.7% 373,799
Accumulated Other Comprehensive Income 4,313 14,625 -70.5% 4,120
Retained Earnings 156,964 170,364 -7.9% 163,921
Total Shareholders' Equity 542,934 560,102 -3.1% 541,840
Total Liabilities and Shareholders' Equity $4,847,055 $4,952,193 -2.1% $4,806,487
12. Income Statements.
(unaudited, in thousands except per-share amounts)
%
Q4'13 Q4'12 Change Q3'13
Interest & Fee Income:
Loans $23,931 $29,640 -19.3% $25,116
Investment Securities:
Available for Sale 5,528 5,166 7.0% 5,426
Held to Maturity 7,247 8,087 -10.4% 7,414
Total Interest & Fee Income 36,706 42,893 -14.4% 37,956
Interest Expense:
Transaction Deposits 67 70 -3.3% 66
Savings Deposits 232 234 -0.7% 228
Time Deposits 494 666 -25.9% 515
Short-Term Borrowed Funds 20 14 37.1% 20
Federal Home Loan Bank Advances 120 122 -1.6% 122
Term Repurchase Agreement 24 25 -1.2% 25
Debt Financing 67 200 -66.7% 200
Total Interest Expense 1,024 1,331 -23.0% 1,176
Net Interest Income 35,682 41,562 -14.1% 36,780
Provision for Loan Losses 1,600 2,800 -42.9% 1,800
Noninterest Income:
Service Charges 6,266 6,722 -6.8% 6,433
Merchant Processing Services 2,058 2,401 -14.3% 2,151
Debit Card Fees 1,527 1,357 12.5% 1,467
Other Service Fees 672 679 -1.0% 716
ATM Processing Fees 630 749 -15.8% 701
Trust Fees 593 552 7.3% 567
Financial Services Commissions 218 148 46.7% 150
Other 2,066 1,586 30.3% 2,234
Total Noninterest Income 14,030 14,194 -1.2% 14,419
Noninterest Expense:
Salaries and Benefits 14,340 13,555 5.8% 13,826
Occupancy 3,784 3,851 -1.7% 3,829
Outsourced Data Processing 2,112 2,213 -4.6% 2,139
Amortization of Identifiable Intangibles 1,157 1,292 -10.4% 1,163
Professional Fees 947 761 24.4% 730
Furniture & Equipment 994 892 11.4% 974
Other Real Estate Owned 245 322 -24.2% 179
Courier Service 664 768 -13.5% 725
Other 3,744 4,579 -18.2% 4,193
Total Noninterest Expense 27,987 28,233 -0.9% 27,758
Income Before Income Taxes 20,125 24,723 -18.6% 21,641
Income Tax Provision 4,069 5,587 -27.2% 4,903
Net Income $16,056 $19,136 -16.1% $16,738
Average Common Shares Outstanding 26,609 27,313 -2.6% 26,670
Diluted Common Shares Outstanding 26,754 27,334 -2.1% 26,705
Per Common Share Data:
Basic Earnings $0.60 $0.70 -14.3% $0.63
Diluted Earnings 0.60 0.70 -14.3% 0.63
Dividends Paid 0.38 0.37 2.7% 0.37
%
12/31'13YTD 12/31'12YTD Change
Interest & Fee Income:
Loans $102,626 $130,820 -21.6%
Investment Securities:
Available for Sale 21,822 19,810 10.2%
Held to Maturity 29,948 32,734 -8.5%
Total Interest & Fee Income 154,396 183,364 -15.8%
Interest Expense:
Transaction Deposits 264 308 -14.3%
Savings Deposits 918 930 -1.2%
Time Deposits 2,166 3,045 -28.9%
Short-Term Borrowed Funds 77 77 -1.0%
Federal Home Loan Bank Advances 480 483 -0.5%
Term Repurchase Agreement 98 99 -0.9%
Debt Financing 668 802 -16.7%
Total Interest Expense 4,671 5,744 -18.7%
Net Interest Income 149,725 177,620 -15.7%
Provision for Loan Losses 8,000 11,200 -28.6%
Noninterest Income:
Service Charges 25,693 27,691 -7.2%
Merchant Processing Services 9,031 9,734 -7.2%
Debit Card Fees 5,829 5,173 12.7%
Other Service Fees 2,846 2,801 1.6%
ATM Processing Fees 2,758 3,396 -18.8%
Trust Fees 2,313 2,078 11.3%
Financial Services Commissions 831 689 20.7%
Loss on Sale of Securities - (1,287) n/m
Other 7,710 6,747 14.3%
Total Noninterest Income 57,011 57,022 0.0%
Noninterest Expense:
Salaries and Benefits 56,633 57,388 -1.3%
Occupancy 15,137 15,460 -2.1%
Outsourced Data Processing 8,548 8,531 0.2%
Amortization of Identifiable Intangibles 4,704 5,368 -12.4%
Professional Fees 3,057 3,217 -5.0%
Furniture & Equipment 3,869 3,775 2.5%
Other Real Estate Owned 1,035 1,235 -16.2%
Courier Service 2,868 3,117 -8.0%
Other 16,763 18,794 -10.8%
Total Noninterest Expense 112,614 116,885 -3.7%
Income Before Income Taxes 86,122 106,557 -19.2%
Income Tax Provision 18,945 25,430 -25.5%
Net Income $67,177 $81,127 -17.2%
Average Common Shares Outstanding 26,826 27,654 -3.0%
Diluted Common Shares Outstanding 26,877 27,699 -3.0%
Per Common Share Data:
Basic Earnings $2.50 $2.93 -14.7%
Diluted Earnings 2.50 2.93 -14.7%
Dividends Paid 1.49 1.48 0.7%
Footnotes and Abbreviations:
(FTE) Fully Taxable Equivalent
(a) Annualized
(1) Purchased covered loans represent purchased loans on which losses are shared with the FDIC per a Loss Sharing Agreement. Purchased covered loans were recorded at estimated fair value at February 6, 2009, the date of purchase.
(2) Purchased non-covered loans represent purchased loans recorded at estimated fair value at August 20, 2010, the date of purchase.

CONTACT: For additional information contact: Westamerica Bancorporation Robert A. Thorson - SVP & Chief Financial Officer 707-863-6840

Source:Westamerica Bancorporation