Westamerica Bancorporation Reports Fourth Quarter 2014 Financial Results

SAN RAFAEL, Calif., Jan. 15, 2015 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq:WABC), parent company of Westamerica Bank, generated net income for the fourth quarter 2014 of $15.0 million and diluted earnings per common share ("EPS") of $0.58, which matched the prior quarter's EPS.

"Westamerica's credit quality continued to show improvement with nonperforming assets declining to $24 million at December 31, 2014, compared to $26 million at September 30, 2014, and $35 million at December 31, 2013. Net loan losses for the year 2014 were 0.17 percent of total average loans, compared to 0.33 percent for 2013. With this improvement in credit quality, we further reduced our loan loss provision to $200 thousand for the fourth quarter, compared to $600 thousand for the third quarter 2014 and $1.6 million for the fourth quarter 2013. Our annualized net interest margin was 3.53 percent in the fourth quarter, down from 3.66 percent in the prior quarter. Low market interest rates continue to pressure our net interest margin, particularly the securities portfolio yield as we purchase shorter-duration, lower-yielding securities in anticipation of rising interest rates. Our margin is supported by a relatively low 0.08 annual percentage funding rate, given 91 percent of our deposits are low-cost checking and savings deposits. We also continue to focus on controlling operating costs while providing superior customer service; our 2014 expenses were down five percent from 2013 levels," said Chairman, President and CEO David Payne. "Our operating results generated an annualized return on shareholders' common equity of 11.5 percent for the fourth quarter 2014 and 11.6 percent for the year 2014," concluded Payne.

Net interest income on a fully taxable equivalent ("FTE") basis was $37.3 million for the fourth quarter 2014, compared to $37.9 million for the prior quarter and $40.1 million for the fourth quarter 2013. Net interest income declined as market interest rates on many loan products remain below the yields earned on older-dated loans and on the overall loan portfolio. The Company is reducing its exposure to rising interest rates by purchasing shorter-duration investment securities which carry lower yields than longer-duration securities. The annualized interest cost of funding the Company's loans and investment securities was 0.08 percent for the fourth quarter 2014, unchanged from the prior quarter, and down from 0.10 percent for the fourth quarter 2013. The annualized net interest margin on a fully taxable equivalent basis was 3.53 percent for the fourth quarter 2014, compared to 3.66 percent for the prior quarter and 3.92 percent for the fourth quarter 2013.

The provision for loan losses was $200 thousand for the fourth quarter 2014, down from $600 thousand for the prior quarter, and down from $1.6 million for the fourth quarter 2013. Net loan losses charged against the allowance for loan losses totaled $484 thousand for the fourth quarter 2014, compared to $1.2 million for the prior quarter and $1.8 million for the fourth quarter 2013. At December 31, 2014, the allowance for loan losses totaled $31.5 million; nonperforming originated loans totaled $5.8 million; and nonperforming purchased loans totaled $12.3 million.

Noninterest income for the fourth quarter 2014 totaled $12.5 million, compared to $13.1 million for the prior quarter and $14.0 million for the fourth quarter 2013. Noninterest income was lower in the fourth quarter 2014 due to reduced levels of service charges on deposit accounts and debit card fees. Merchant processing service fees were essentially unchanged in the fourth quarter 2014 compared to the prior quarter; however, such fees declined from the fourth quarter 2013 to the fourth quarter 2014.

Noninterest expense for the fourth quarter 2014 totaled $26.4 million, compared to $26.6 million in the prior quarter and $28.0 million for the fourth quarter 2013.

At December 31, 2014, Westamerica Bancorporation's tangible common equity-to-asset ratio was 8.0 percent, assets totaled $5.0 billion and loans outstanding totaled $1.7 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, 2013 filed on Form 10-K and quarterly report for the quarter ended September 30, 2014 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.

WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
December 31, 2014
1. Net Income Summary.
(in thousands except per-share amounts)
%
Q4'14 Q4'13 Change Q3'14
Net Interest and Fee Income (FTE) $37,305 $40,050 -6.9% $37,905
Provision for Loan Losses 200 1,600 -87.5% 600
Noninterest Income 12,545 14,030 -10.6% 13,054
Noninterest Expense 26,353 27,987 -5.8% 26,616
Income Before Taxes (FTE) 23,297 24,493 -4.9% 23,743
Income Tax Provision (FTE) 8,269 8,437 -2.0% 8,589
Net Income $15,028 $16,056 -6.4% $15,154
Average Common Shares Outstanding 25,821 26,609 -3.0% 25,973
Diluted Average Common Shares 25,858 26,754 -3.4% 26,016
Operating Ratios:
Basic Earnings Per Common Share $0.58 $0.60 -3.3% $0.58
Diluted Earnings Per Common Share 0.58 0.60 -3.3% 0.58
Return On Assets (a) 1.18% 1.31% 1.21%
Return On Common Equity (a) 11.5% 11.8% 11.5%
Net Interest Margin (FTE) (a) 3.53% 3.92% 3.66%
Efficiency Ratio (FTE) 52.9% 51.8% 52.2%
Dividends Paid Per Common Share $0.38 $0.38 0.0% $0.38
Common Dividend Payout Ratio 66% 63% 66%
%
12/31'14YTD 12/31'13YTD Change
Net Interest and Fee Income (FTE) $152,656 $167,737 -9.0%
Provision for Loan Losses 2,800 8,000 -65.0%
Noninterest Income 51,787 57,011 -9.2%
Noninterest Expense 106,799 112,614 -5.2%
Income Before Taxes (FTE) 94,844 104,134 -8.9%
Income Tax Provision (FTE) 34,198 36,957 -7.5%
Net Income $60,646 $67,177 -9.7%
Average Common Shares Outstanding 26,099 26,826 -2.7%
Diluted Average Common Shares 26,160 26,877 -2.7%
Operating Ratios:
Basic Earnings Per Common Share $2.32 $2.50 -7.2%
Diluted Earnings Per Common Share 2.32 2.50 -7.2%
Return On Assets 1.22% 1.38%
Return On Common Equity 11.6% 12.5%
Net Interest Margin (FTE) 3.70% 4.08%
Efficiency Ratio (FTE) 52.2% 50.1%
Dividends Paid Per Common Share $1.52 $1.49 2.0%
Common Dividend Payout Ratio 66% 60%
2. Net Interest Income.
(dollars in thousands)
%
Q4'14 Q4'13 Change Q3'14
Interest and Fee Income (FTE) $38,105 $41,074 -7.2% $38,751
Interest Expense 800 1,024 -21.9% 846
Net Interest and Fee Income (FTE) $37,305 $40,050 -6.9% $37,905
Average Earning Assets $4,203,048 $4,062,976 3.4% $4,125,835
Average Interest-Bearing Liabilities 2,554,153 2,523,585 1.2% 2,529,300
Yield on Earning Assets (FTE) (a) 3.61% 4.02% 3.74%
Cost of Funds (a) 0.08% 0.10% 0.08%
Net Interest Margin (FTE) (a) 3.53% 3.92% 3.66%
Interest Expense/Interest-Bearing Liabilities (a) 0.12% 0.16% 0.13%
Net Interest Spread (FTE) (a) 3.49% 3.86% 3.61%
%
12/31'14YTD 12/31'13YTD Change
Interest and Fee Income (FTE) $156,100 $172,408 -9.5%
Interest Expense 3,444 4,671 -26.3%
Net Interest and Fee Income (FTE) $152,656 $167,737 -9.0%
Average Earning Assets $4,134,473 $4,109,671 0.6%
Average Interest-Bearing Liabilities 2,536,967 2,584,781 -1.8%
Yield on Earning Assets (FTE) 3.78% 4.19%
Cost of Funds 0.08% 0.11%
Net Interest Margin (FTE) 3.70% 4.08%
Interest Expense/Interest-Bearing Liabilities 0.14% 0.18%
Net Interest Spread (FTE) 3.64% 4.01%
3. Loans & Other Earning Assets.
(average volume, dollars in thousands)
%
Q4'14 Q4'13 Change Q3'14
Total Assets $5,050,417 $4,876,884 3.6% $4,971,808
Total Earning Assets 4,203,048 4,062,976 3.4% 4,125,835
Total Loans 1,709,012 1,846,700 -7.5% 1,760,115
Commercial Loans 395,933 364,534 8.6% 405,066
Commercial RE Loans 723,153 817,090 -11.5% 741,962
Consumer Loans 589,926 665,076 -11.3% 613,087
Total Investment Securities 2,494,036 2,216,276 12.5% 2,365,720
Available For Sale (Market) 1,467,682 1,081,164 35.8% 1,317,195
Held To Maturity 1,026,354 1,135,112 -9.6% 1,048,525
Unrealized Gain (Loss) 9,904 (19,623) n/m 6,344
Loans/Deposits 39.1% 44.1% 40.9%
%
12/31'14YTD 12/31'13YTD Change
Total Assets $4,955,643 $4,863,862 1.9%
Total Earning Assets 4,134,473 4,109,671 0.6%
Total Loans 1,772,962 1,954,581 -9.3%
Commercial Loans 396,928 379,023 4.7%
Commercial RE Loans 757,047 862,266 -12.2%
Consumer Loans 618,987 713,292 -13.2%
Total Investment Securities 2,361,511 2,155,090 9.6%
Available For Sale (Market) 1,289,911 1,009,329 27.8%
Held To Maturity 1,071,600 1,145,761 -6.5%
Unrealized Gain (Loss) 9,904 (19,623) n/m
Loans/Deposits 41.4% 47.0%
4. Deposits, Other Interest-Bearing Liabilities & Equity.
(average volume, dollars in thousands)
%
Q4'14 Q4'13 Change Q3'14
Total Deposits $4,373,472 $4,189,135 4.4% $4,303,389
Noninterest Demand 1,925,741 1,759,495 9.4% 1,869,853
Interest Bearing Transaction 806,051 763,924 5.5% 790,040
Savings 1,248,699 1,160,422 7.6% 1,215,647
Time greater than $100K 205,894 288,691 -28.7% 233,511
Time less than $100K 187,087 216,603 -13.6% 194,338
Total Short-Term Borrowings 86,323 54,208 59.2% 71,067
Federal Home Loan Bank Advances 20,099 24,846 -19.1% 20,240
Term Repurchase Agreement -- 10,000 n/m 4,457
Debt Financing -- 4,891 n/m --
Shareholders' Equity 518,206 537,709 -3.6% 520,702
Demand Deposits/
Total Deposits 44.0% 42.0% 43.5%
Transaction & Savings
Deposits / Total Deposits 91.0% 87.9% 90.1%
%
12/31'14YTD 12/31'13YTD Change
Total Deposits $4,281,847 $4,162,823 2.9%
Noninterest Demand 1,841,522 1,683,447 9.4%
Interest Bearing Transaction 790,467 758,771 4.2%
Savings 1,215,035 1,151,360 5.5%
Time greater than $100K 237,002 341,184 -30.5%
Time less than $100K 197,821 228,061 -13.3%
Total Short-Term Borrowings 70,252 57,454 22.3%
Federal Home Loan Bank Advances 20,308 25,499 -20.4%
Term Repurchase Agreement 6,082 10,000 -39.2%
Debt Financing -- 12,452 n/m
Shareholders' Equity 524,288 538,165 -2.6%
Demand Deposits/
Total Deposits 43.0% 40.4%
Transaction & Savings
Deposits / Total Deposits 89.8% 86.3%
5. Interest Yields Earned & Rates Paid.
(dollars in thousands)
Q4'14
Average Income/ Yield (a) /
Volume Expense Rate
Interest & Fee Income Earned
Total Earning Assets (FTE) 4,203,048 $38,105 3.61%
Total Loans (FTE) 1,709,012 21,657 5.03%
Commercial Loans (FTE) 395,933 5,022 5.03%
Commercial RE Loans 723,153 11,151 6.12%
Consumer Loans 589,926 5,484 3.70%
Total Investments (FTE) 2,494,036 16,448 2.64%
Interest Expense Paid
Total Earning Assets 4,203,048 800 0.08%
Total Interest-Bearing Liabilities 2,554,153 800 0.12%
Total Interest-Bearing Deposits 2,447,731 672 0.11%
Interest-Bearing Transaction 806,051 65 0.03%
Savings 1,248,699 214 0.07%
Time less than $100K 187,087 184 0.39%
Time greater than $100K 205,894 209 0.40%
Total Short-Term Borrowings 86,323 25 0.12%
Federal Home Loan Bank Advances 20,099 103 2.03%
Net Interest Income and
Margin (FTE) $37,305 3.53%
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%
6. Noninterest Income.
(dollars in thousands except per-share amounts)
%
Q4'14 Q4'13 Change Q3'14
Service Charges on Deposits $5,870 $6,266 -6.3% $6,207
Merchant Processing Services 1,734 2,058 -15.7% 1,742
Debit Card Fees 1,478 1,527 -3.2% 1,543
Other Service Fees 673 672 0.1% 695
ATM Processing Fees 581 630 -7.8% 637
Trust Fees 684 593 15.4% 629
Financial Services Commissions 171 218 -21.2% 194
Other Income 1,354 2,066 -34.5% 1,407
Total Noninterest Income $12,545 $14,030 -10.6% $13,054
Total Revenue (FTE) $49,850 $54,080 -7.8% $50,959
Noninterest Income/Revenue (FTE) 25.2% 25.9% 25.6%
Service Charges/Avg. Deposits (a) 0.53% 0.59% 0.57%
Total Revenues (FTE) Per Avg.
Common Share (a) $7.66 $8.06 -5.0% $7.78
%
12/31'14YTD 12/31'13YTD Change
Service Charges on Deposits $24,191 $25,693 -5.8%
Merchant Processing Services 7,219 9,031 -20.1%
Debit Card Fees 5,960 5,829 2.3%
Other Service Fees 2,717 2,846 -4.6%
ATM Processing Fees 2,473 2,758 -10.3%
Trust Fees 2,582 2,313 11.7%
Financial Services Commissions 757 831 -8.9%
Other Income 5,888 7,710 -23.6%
Total Noninterest Income $51,787 $57,011 -9.2%
Total Revenue (FTE) $204,443 $224,748 -9.0%
Noninterest Income/Revenue (FTE) 25.3% 25.4%
Service Charges/Avg. Deposits 0.56% 0.62%
Total Revenues (FTE) Per Avg.
Common Share $7.83 $8.38 -6.5%
7. Noninterest Expense.
(dollars in thousands)
%
Q4'14 Q4'13 Change Q3'14
Salaries & Benefits $13,086 $14,340 -8.7% $13,639
Occupancy 3,708 3,784 -2.0% 3,811
Outsourced Data Processing 2,097 2,112 -0.7% 2,093
Amortization of
Identifiable Intangibles 1,051 1,157 -9.2% 1,056
Professional Fees 640 947 -32.5% 700
Furniture & Equipment 1,104 994 11.1% 1,059
Other Real Estate Owned 265 245 n/m (287)
Courier Service 686 664 3.3% 663
Other Operating 3,716 3,744 -0.7% 3,882
Total Noninterest Expense $26,353 $27,987 -5.8% $26,616
Noninterest Expense/
Avg. Earning Assets (a) 2.49% 2.73% 2.56%
Noninterest Expense/Revenues (FTE) 52.9% 51.8% 52.2%
%
12/31'14YTD 12/31'13YTD Change
Salaries & Benefits $54,777 $56,633 -3.3%
Occupancy 14,992 15,137 -1.0%
Outsourced Data Processing 8,411 8,548 -1.6%
Amortization of
Identifiable Intangibles 4,270 4,704 -9.2%
Professional Fees 2,346 3,057 -23.2%
Furniture & Equipment 4,174 3,869 7.9%
Other Real Estate Owned (642) 1,035 n/m
Courier Service 2,624 2,868 -8.5%
Other Operating 15,847 16,763 -5.5%
Total Noninterest Expense $106,799 $112,614 -5.2%
Noninterest Expense/
Avg. Earning Assets 2.58% 2.74%
Noninterest Expense/Revenues (FTE) 52.2% 50.1%
8. Provision for Loan Losses.
(dollars in thousands)
%
Q4'14 Q4'13 Change Q3'14
Average Total Loans $1,709,012 $1,846,700 -7.5% $1,760,115
Allowance for Loan Loss (ALL)
Beginning of Period $31,769 $31,916 -0.5% $32,398
Provision for Loan Losses 200 1,600 -87.5% 600
Net ALL Losses (484) (1,823) -73.5% (1,229)
ALL End of Period $31,485 $31,693 -0.7% $31,769
ALL Recoveries/Gross ALL Losses 83% 41% 33%
Net ALL Losses/Avg. Total Loans (a) 0.11% 0.39% 0.28%
%
12/31'14YTD 12/31'13YTD Change
Average Total Loans $1,772,962 $1,954,581 -9.3%
Allowance for Loan Loss (ALL)
Beginning of Period $31,693 $30,234 4.8%
Provision for Loan Losses 2,800 8,000 -65.0%
Net ALL Losses (3,008) (6,541) -54.0%
ALL End of Period $31,485 $31,693 -0.7%
ALL Recoveries/Gross ALL Losses 59% 39%
Net ALL Losses/Avg. Total Loans 0.17% 0.33%
9. Credit Quality.
(dollars in thousands)
%
12/31/14 12/31/13 Change 9/30/14
Nonperforming Originated Loans:
Nonperforming Nonaccrual $5,296 $5,301 -0.1% $4,696
Performing Nonaccrual 13 75 -83.3% 13
Total Nonaccrual Loans 5,309 5,376 -1.2% 4,709
90+ Days Past Due Accruing Loans 502 410 22.4% 342
Total 5,811 5,786 0.4% 5,051
Repossessed Originated Loan Collateral 4,809 5,527 -13.0% 5,123
Total Nonperforming
Originated Assets 10,620 11,313 -6.1% 10,174
Nonperforming Purchased Covered Loans (1,3):
Nonperforming Nonaccrual 297 11,672 n/m 295
Performing Nonaccrual -- 636 n/m --
Total Nonaccrual Loans 297 12,308 n/m 295
90+ Days Past Due Accruing Loans -- -- n/m --
Total 297 12,308 n/m 295
Repossessed Purchased Covered
Loan Collateral (1,3) -- 7,793 n/m 585
Total Nonperforming Purchased
Covered Assets (1,3) 297 20,101 n/m 880
Nonperforming Purchased Non-Covered Loans (2,3):
Nonperforming Nonaccrual 11,901 2,920 n/m 12,745
Performing Nonaccrual 97 698 n/m 552
Total Nonaccrual Loans 11,998 3,618 n/m 13,297
90+ Days Past Due Accruing Loans -- -- n/m 76
Total 11,998 3,618 n/m 13,373
Repossessed Purchased Non-Covered
Loan Collateral (2,3) 1,565 -- n/m 1,565
Total Nonperforming Purchased
Non-Covered Assets (2,3) 13,563 3,618 n/m 14,938
Total Nonperforming Assets $24,480 $35,032 -30.1% $25,992
Total Originated Loans Outstanding $1,470,369 $1,523,284 -3.5% $1,489,565
Total Purchased Covered
Loans Outstanding (1,3) 17,078 250,670 n/m 17,523
Total Purchased Non-Covered
Loans Outstanding (2,3) 212,843 53,790 n/m 225,294
Total Loans Outstanding $1,700,290 $1,827,744 -7.0% $1,732,382
Total Assets $5,035,724 $4,847,055 3.9% $4,993,725
Loans:
Allowance for Loan Losses $31,485 $31,693 -0.7% $31,769
Allowance/Loans 1.85% 1.73% 1.83%
Nonperforming Loans/Total Loans 1.06% 1.19% 1.08%
Purchased Covered Loans (1,3):
Fair Value Discount on Purchased
Covered Loans $468 $10,933 $501
Discount/Purchased Covered
Loans, gross 2.67% 4.18% 2.78%
Nonperforming Purchased Covered Loans/
Total Purchased Covered Loans 1.74% 4.91% 1.68%
Purchased Non-Covered Loans (2,3):
Fair Value Discount on Purchased
Non-Covered Loans $9,372 $3,245 $10,233
Discount/Purchased Non-Covered 4.22% 5.69% 4.34%
Loans, gross
Nonperforming Purchased Non-Covered Loans/
Total Purchased Non-Covered Loans 5.64% 6.73% 5.94%
10. Capital.
(in thousands, except per-share amounts)
%
12/31/14 12/31/13 Change 9/30/14
Shareholders' Equity $526,603 $542,934 -3.0% $533,395
Tier I Regulatory Capital 391,121 405,798 -3.6% 392,992
Total Regulatory Capital 427,612 446,331 -4.2% 433,942
Total Assets 5,035,724 4,847,055 3.9% 4,993,725
Risk-Adjusted Assets 2,941,227 2,759,311 6.6% 2,886,487
Shareholders' Equity/
Total Assets 10.46% 11.20% 10.68%
Shareholders' Equity/
Total Loans 30.97% 29.71% 30.79%
Tier I Capital/Total Assets 7.77% 8.37% 7.87%
Tier I Capital/
Risk-Adjusted Assets 13.30% 14.71% 13.61%
Total Regulatory Capital/
Risk-Adjusted Assets 14.54% 16.18% 15.03%
Tangible Common Equity Ratio 7.97% 8.56% 8.16%
Common Shares Outstanding 25,745 26,510 -2.9% 25,906
Common Equity Per Share $20.45 $20.48 -0.1% $20.59
Market Value Per Common Share $49.02 $56.46 -13.2% $46.52
Share Repurchase Programs
(shares in thousands)
%
Q4'14 Q4'13 Change Q3'14
Total Shares Repurchased 161 326 -50.5% 175
Average Repurchase Price $48.73 $53.74 -9.3% $48.62
Net Shares Repurchased 161 68 135.3% 168
%
12/31'14YTD 12/31'13YTD Change
Total Shares Repurchased 1,044 1,199 -12.9%
Average Repurchase Price $50.47 $47.81 5.6%
Net Shares Repurchased 765 703 8.8%
11. Period-End Balance Sheets.
(unaudited, dollars in thousands)
%
12/31/14 12/31/13 Change 9/30/14
Assets:
Cash and Due from Banks $380,836 $472,028 -19.3% $524,338
Investment Securities:
Available For Sale 1,600,781 1,079,381 48.3% 1,391,362
Held to Maturity 1,038,658 1,132,299 -8.3% 1,035,041
Loans 1,700,290 1,827,744 -7.0% 1,732,382
Allowance For Loan Losses (31,485) (31,693) -0.7% (31,769)
Total Loans, net 1,668,805 1,796,051 -7.1% 1,700,613
Other Real Estate Owned 6,374 13,320 -52.2% 7,273
Premises and Equipment, net 37,852 37,314 1.4% 37,335
Identifiable Intangibles, net 14,287 18,557 -23.0% 15,338
Goodwill 121,673 121,673 0.0% 121,673
Other Assets 166,458 176,432 -5.7% 160,752
Total Assets $5,035,724 $4,847,055 3.9% $4,993,725
Liabilities and Shareholders' Equity:
Deposits:
Noninterest Bearing $1,910,781 $1,740,182 9.8% $1,893,480
Interest-Bearing Transaction 792,448 763,088 3.8% 775,377
Savings 1,260,819 1,167,744 8.0% 1,231,640
Time 385,143 492,767 -21.8% 421,141
Total Deposits 4,349,191 4,163,781 4.5% 4,321,638
Short-Term Borrowed Funds 89,784 62,668 43.3% 76,943
Federal Home Loan Bank Advances 20,015 20,577 -2.7% 20,156
Term Repurchase Agreement -- 10,000 n/m --
Debt Financing -- -- n/m --
Other Liabilities 50,131 47,095 6.4% 41,593
Total Liabilities 4,509,121 4,304,121 4.8% 4,460,330
Shareholders' Equity:
Common Equity:
Paid-In Capital 380,843 381,657 -0.2% 382,906
Accumulated Other
Comprehensive Income 5,292 4,313 n/m 9,733
Retained Earnings 140,468 156,964 -10.5% 140,756
Total Shareholders' Equity 526,603 542,934 -3.0% 533,395
Total Liabilities and
Shareholders' Equity $5,035,724 $4,847,055 3.9% $4,993,725
12. Income Statements.
(unaudited, in thousands except per-share amounts)
%
Q4'14 Q4'13 Change Q3'14
Interest & Fee Income:
Loans $21,240 $23,931 -11.2% $22,129
Investment Securities:
Available for Sale 6,884 5,528 24.5% 6,350
Held to Maturity 6,218 7,247 -14.2% 6,421
Total Interest & Fee Income 34,342 36,706 -6.4% 34,900
Interest Expense:
Transaction Deposits 65 67 -3.5% 69
Savings Deposits 214 232 -8.1% 221
Time Deposits 393 494 -20.4% 419
Short-Term Borrowed Funds 25 20 29.4% 23
Federal Home Loan Bank Advances 103 120 -14.0% 103
Term Repurchase Agreement -- 24 n/m 11
Debt Financing -- 67 n/m --
Total Interest Expense 800 1,024 -21.9% 846
Net Interest Income 33,542 35,682 -6.0% 34,054
Provision for Loan Losses 200 1,600 -87.5% 600
Noninterest Income:
Service Charges 5,870 6,266 -6.3% 6,207
Merchant Processing Services 1,734 2,058 -15.7% 1,742
Debit Card Fees 1,478 1,527 -3.2% 1,543
Other Service Fees 673 672 0.1% 695
ATM Processing Fees 581 630 -7.8% 637
Trust Fees 684 593 15.4% 629
Financial Services Commissions 171 218 -21.2% 194
Other 1,354 2,066 -34.5% 1,407
Total Noninterest Income 12,545 14,030 -10.6% 13,054
Noninterest Expense:
Salaries and Benefits 13,086 14,340 -8.7% 13,639
Occupancy 3,708 3,784 -2.0% 3,811
Outsourced Data Processing 2,097 2,112 -0.7% 2,093
Amortization of Identifiable Intangibles 1,051 1,157 -9.2% 1,056
Professional Fees 640 947 -32.5% 700
Furniture & Equipment 1,104 994 11.1% 1,059
Other Real Estate Owned 265 245 n/m (287)
Courier Service 686 664 3.3% 663
Other 3,716 3,744 -0.7% 3,882
Total Noninterest Expense 26,353 27,987 -5.8% 26,616
Income Before Income Taxes 19,534 20,125 -2.9% 19,892
Income Tax Provision 4,506 4,069 10.8% 4,738
Net Income $15,028 $16,056 -6.4% $15,154
Average Common Shares Outstanding 25,821 26,609 -3.0% 25,973
Diluted Common Shares Outstanding 25,858 26,754 -3.4% 26,016
Per Common Share Data:
Basic Earnings $0.58 $0.60 -3.3% $0.58
Diluted Earnings 0.58 0.60 -3.3% 0.58
Dividends Paid 0.38 0.38 0.0% 0.38
%
12/31'14YTD 12/31'13YTD Change
Interest & Fee Income:
Loans $89,056 $102,626 -13.2%
Investment Securities:
Available for Sale 24,740 21,822 13.4%
Held to Maturity 26,413 29,948 -11.8%
Total Interest & Fee Income 140,209 154,396 -9.2%
Interest Expense:
Transaction Deposits 268 264 1.7%
Savings Deposits 906 918 -1.3%
Time Deposits 1,713 2,166 -20.9%
Short-Term Borrowed Funds 90 77 17.5%
Federal Home Loan Bank Advances 407 480 -15.3%
Term Repurchase Agreement 60 98 -38.8%
Debt Financing -- 668 n/m
Total Interest Expense 3,444 4,671 -26.3%
Net Interest Income 136,765 149,725 -8.7%
Provision for Loan Losses 2,800 8,000 -65.0%
Noninterest Income:
Service Charges 24,191 25,693 -5.8%
Merchant Processing Services 7,219 9,031 -20.1%
Debit Card Fees 5,960 5,829 2.3%
Other Service Fees 2,717 2,846 -4.6%
ATM Processing Fees 2,473 2,758 -10.3%
Trust Fees 2,582 2,313 11.7%
Financial Services Commissions 757 831 -8.9%
Other 5,888 7,710 -23.6%
Total Noninterest Income 51,787 57,011 -9.2%
Noninterest Expense:
Salaries and Benefits 54,777 56,633 -3.3%
Occupancy 14,992 15,137 -1.0%
Outsourced Data Processing 8,411 8,548 -1.6%
Amortization of Identifiable Intangibles 4,270 4,704 -9.2%
Professional Fees 2,346 3,057 -23.2%
Furniture & Equipment 4,174 3,869 7.9%
Other Real Estate Owned (642) 1,035 n/m
Courier Service 2,624 2,868 -8.5%
Other 15,847 16,763 -5.5%
Total Noninterest Expense 106,799 112,614 -5.2%
Income Before Income Taxes 78,953 86,122 -8.3%
Income Tax Provision 18,307 18,945 -3.4%
Net Income $60,646 $67,177 -9.7%
Average Common Shares Outstanding 26,099 26,826 -2.7%
Diluted Common Shares Outstanding 26,160 26,877 -2.7%
Per Common Share Data:
Basic Earnings $2.32 $2.50 -7.2%
Diluted Earnings 2.32 2.50 -7.2%
Dividends Paid 1.52 1.49 2.0%
Footnotes and Abbreviations:
(FTE) Fully Taxable Equivalent
(a) Annualized
(1) Purchased covered loans and repossessed loan collateral represent assets purchased in a business combination on which losses are shared with the FDIC per a Loss-Sharing Agreement.
(2) Purchased non-covered loans and repossessed loan collateral represent assets purchased in a business combination.
(3) The FDIC indemnification of non-single family assets acquired from the former County Bank expired 2/6/14 and were reclassified into purchased non-covered loans and repossessed loan collateral.

CONTACT: Westamerica Bancorporation 1108 Fifth Avenue, San Rafael, CA 94901 Robert A. Thorson - SVP & Chief Financial Officer 707-863-6840 investments@westamerica.com

Source:Westamerica Bancorporation