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Westamerica Bancorporation Reports Second Quarter 2015 Financial Results

SAN RAFAEL, Calif., July 15, 2015 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq:WABC), parent company of Westamerica Bank, generated net income for the second quarter 2015 of $14.8 million and diluted earnings per common share ("EPS") of $0.58, increased from net income of $14.6 million and EPS of $0.57 for the prior quarter. In the second quarter 2015, Westamerica Bancorporation paid a $0.38 per common share dividend.

"Our annualized net interest margin, on a fully taxable equivalent basis, was 3.37 percent in the second quarter 2015, which benefited from the recent increase in market interest rates. Cash proceeds from investment securities were reinvested at higher yields during the second quarter 2015. Our margin was also supported by a stable and relatively low annualized funding cost of 0.06 percent during the second quarter 2015 given 92 percent of our average deposits were low-cost checking and savings deposits. Westamerica's credit quality improved from one year ago with nonperforming assets declining 13 percent to $26 million at June 30, 2015. With credit quality at healthy levels, the provision for loan losses remained zero for the second quarter 2015. The level of operating costs in the second quarter 2015 again represented a relatively low 54 percent of total revenues," said Chairman, President and CEO David Payne. "Our operating results generated an annualized return on shareholders' common equity of 11.5 percent for the second quarter 2015," concluded Payne.

Net interest income on a fully taxable equivalent ("FTE") basis was $37.4 million for the second quarter 2015, increased from $36.9 million for the prior quarter, due to an increase in average interest earning assets and an additional calendar day of interest accruals, offset in part by a 0.06 percent decline in the net interest margin. Interest earning asset volumes increased in the second quarter 2015 due to growth in investment securities, offset in part by lower loan volumes. The Company is currently avoiding long-dated, low-yielding loans given the expectation for rising interest rates. The Company is also reducing its exposure to rising interest rates by purchasing shorter-duration investment securities. Net interest income was lower in the second quarter 2015 compared to the second quarter 2014 due to a decline in the net interest margin, offset in part by an increase in interest earning assets; the decline in the net interest margin is due to re-investment of cash payments from loans and securities at prevailing low interest rates. The annualized net interest margin on a fully taxable equivalent basis was 3.37 percent for the second quarter 2015, compared to 3.43 percent for the prior quarter and 3.76 percent for the second quarter 2014.

The provision for loan losses was zero for the second quarter 2015, unchanged from the prior quarter, and down from $1.0 million for the second quarter 2014. Net loan losses charged against the allowance for loan losses totaled $359 thousand for the second quarter 2015, compared to $298 thousand for the prior quarter and $711 thousand for the second quarter 2014. At June 30, 2015, the allowance for loan losses totaled $30.8 million and nonperforming loans totaled $16.4 million.

Noninterest income for the second quarter 2015 totaled $12.3 million, unchanged from the prior quarter, and compared to $13.2 million for the second quarter 2014. Noninterest income was lower in the second quarter 2015 compared to the second quarter 2014 due to declines in service charges on deposit accounts and other income.

Noninterest expense for the second quarter 2015 totaled $26.9 million, compared to $26.7 million in the prior quarter and $27.0 million for the second quarter 2014. Noninterest expense increased in the second quarter 2015 compared to the first quarter 2015 due to higher stock-based compensation costs (based on appreciation in the market value of the Company's common share price) and other employee benefit costs.

At June 30, 2015, Westamerica Bancorporation's tangible common equity-to-asset ratio was 8.0 percent, assets totaled $5.0 billion and loans outstanding totaled $1.6 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, 2014 filed on Form 10-K and quarterly report for the quarter ended March 31, 2015 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
June 30, 2015
1. Net Income Summary.
(in thousands except per-share amounts)
%
Q2'15 Q2'14 Change Q1'15
Net Interest and Fee Income (FTE) $37,415 $38,582 -3.0% $36,930
Provision for Loan Losses -- 1,000 n/m --
Noninterest Income 12,269 13,198 -7.0% 12,300
Noninterest Expense 26,896 26,957 -0.2% 26,727
Income Before Taxes (FTE) 22,788 23,823 -4.3% 22,503
Income Tax Provision (FTE) 8,027 8,666 -7.4% 7,946
Net Income $14,761 $15,157 -2.6% $14,557
Average Common Shares Outstanding 25,514 26,175 -2.5% 25,651
Diluted Average Common Shares 25,536 26,238 -2.7% 25,655
Operating Ratios:
Basic Earnings Per Common Share $0.58 $0.58 0.0% $0.57
Diluted Earnings Per Common Share 0.58 0.58 0.0% 0.57
Return On Assets (a) 1.17% 1.24% 1.17%
Return On Common Equity (a) 11.5% 11.6% 11.4%
Net Interest Margin (FTE) (a) 3.37% 3.76% 3.43%
Efficiency Ratio (FTE) 54.1% 52.1% 54.3%
Dividends Paid Per Common Share $0.38 $0.38 0.0% $0.38
Common Dividend Payout Ratio 66% 66% 67%
%
6/30'15YTD 6/30'14YTD Change
Net Interest and Fee Income (FTE) $74,345 $77,446 -4.0%
Provision for Loan Losses -- 2,000 n/m
Noninterest Income 24,569 26,188 -6.2%
Noninterest Expense 53,623 53,830 -0.4%
Income Before Taxes (FTE) 45,291 47,804 -5.3%
Income Tax Provision (FTE) 15,973 17,340 -7.9%
Net Income $29,318 $30,464 -3.8%
Average Common Shares Outstanding 25,582 26,303 -2.7%
Diluted Average Common Shares 25,595 26,387 -3.0%
Operating Ratios:
Basic Earnings Per Common Share $1.15 $1.16 -0.9%
Diluted Earnings Per Common Share 1.15 1.15 0.0%
Return On Assets (a) 1.17% 1.25%
Return On Common Equity (a) 11.5% 11.6%
Net Interest Margin (FTE) (a) 3.40% 3.79%
Efficiency Ratio (FTE) 54.2% 51.9%
Dividends Paid Per Common Share $0.76 $0.76 0.0%
Common Dividend Payout Ratio 66% 66%
2. Net Interest Income.
(dollars in thousands)
%
Q2'15 Q2'14 Change Q1'15
Interest and Fee Income (FTE) $38,032 $39,482 -3.7% $37,589
Interest Expense 617 900 -31.4% 659
Net Interest and Fee Income (FTE) $37,415 $38,582 -3.0% $36,930
Average Earning Assets $4,436,196 $4,114,811 7.8% $4,342,031
Average Interest-
Bearing Liabilities 2,540,194 2,530,030 0.4% 2,571,484
Yield on Earning Assets (FTE) (a) 3.43% 3.85% 3.49%
Cost of Funds (a) 0.06% 0.09% 0.06%
Net Interest Margin (FTE) (a) 3.37% 3.76% 3.43%
Interest Expense/
Interest-Bearing Liabilities (a) 0.10% 0.14% 0.10%
Net Interest Spread (FTE) (a) 3.33% 3.71% 3.39%
%
6/30'15YTD 6/30'14YTD Change
Interest and Fee Income (FTE) $75,621 $79,244 -4.6%
Interest Expense 1,276 1,798 -29.0%
Net Interest and Fee Income (FTE) $74,345 $77,446 -4.0%
Average Earning Assets $4,389,374 $4,104,009 7.0%
Average Interest-
Bearing Liabilities 2,555,752 2,532,129 0.9%
Yield on Earning Assets (FTE) (a) 3.46% 3.88%
Cost of Funds (a) 0.06% 0.09%
Net Interest Margin (FTE) (a) 3.40% 3.79%
Interest Expense/
Interest-Bearing Liabilities (a) 0.10% 0.14%
Net Interest Spread (FTE) (a) 3.36% 3.74%
3. Loans & Other Earning Assets.
(average volume, dollars in thousands)
%
Q2'15 Q2'14 Change Q1'15
Total Assets $5,044,361 $4,908,467 2.8% $5,059,537
Total Earning Assets 4,436,196 4,114,811 7.8% 4,342,031
Total Loans 1,655,779 1,802,041 -8.1% 1,683,748
Commercial Loans 405,891 397,549 2.1% 401,167
Commercial RE Loans 687,221 775,687 -11.4% 710,475
Consumer Loans 562,667 628,805 -10.5% 572,106
Total Investment Securities 2,780,417 2,312,770 20.2% 2,658,283
Available For Sale (Market) 1,724,126 1,222,987 41.0% 1,632,868
Held To Maturity 1,056,291 1,089,783 -3.1% 1,025,415
Unrealized Gain 5,022 4,658 n/m 15,634
Loans/Deposits 37.7% 42.5% 38.2%
%
6/30'15YTD 6/30'14YTD Change
Total Assets $5,051,907 $4,899,255 3.1%
Total Earning Assets 4,389,374 4,104,009 7.0%
Total Loans 1,669,686 1,811,998 -7.9%
Commercial Loans 403,542 393,297 2.6%
Commercial RE Loans 698,784 781,944 -10.6%
Consumer Loans 567,360 636,757 -10.9%
Total Investment Securities 2,719,688 2,292,011 18.7%
Available For Sale (Market) 1,678,749 1,185,683 41.6%
Held To Maturity 1,040,939 1,106,328 -5.9%
Unrealized Gain 5,022 4,658 n/m
Loans/Deposits 38.0% 42.9%
4. Deposits, Other Interest-Bearing Liabilities & Equity.
(average volume, dollars in thousands)
%
Q2'15 Q2'14 Change Q1'15
Total Deposits $4,395,351 $4,238,769 3.7% $4,402,946
Noninterest Demand 1,942,124 1,799,994 7.9% 1,919,820
Interest Bearing Transaction 804,512 783,737 2.7% 810,877
Savings 1,300,058 1,202,519 8.1% 1,292,238
Time greater than $100K 172,605 251,013 -31.2% 199,251
Time less than $100K 176,052 201,506 -12.6% 180,760
Total Short-Term Borrowings 86,967 60,876 42.9% 86,354
Federal Home Loan Bank Advances -- 20,379 n/m 2,004
Term Repurchase Agreement -- 10,000 n/m --
Shareholders' Equity 514,768 525,288 -2.0% 516,086
Demand Deposits/
Total Deposits 44.2% 42.5% 43.6%
Transaction & Savings
Deposits / Total Deposits 92.1% 89.3% 91.4%
%
6/30'15YTD 6/30'14YTD Change
Total Deposits $4,399,127 $4,224,326 4.1%
Noninterest Demand 1,931,034 1,784,316 8.2%
Interest Bearing Transaction 807,677 782,763 3.2%
Savings 1,296,169 1,197,612 8.2%
Time greater than $100K 185,854 254,588 -27.0%
Time less than $100K 178,393 205,047 -13.0%
Total Short-Term Borrowings 86,662 61,670 40.5%
Federal Home Loan Bank Advances 997 20,449 -95.1%
Term Repurchase Agreement -- 10,000 n/m
Shareholders' Equity 515,423 529,202 -2.6%
Demand Deposits/
Total Deposits 43.9% 42.2%
Transaction & Savings
Deposits / Total Deposits 91.7% 89.1%
5. Interest Yields Earned & Rates Paid.
(dollars in thousands)
Q2'15
Average Income/ Yield (a) /
Volume Expense Rate
Interest & Fee Income Earned
Total Earning Assets (FTE) $4,436,196 $38,032 3.43%
Total Loans (FTE) 1,655,779 20,424 4.95%
Commercial Loans (FTE) 405,891 4,922 4.86%
Commercial RE Loans 687,221 10,524 6.14%
Consumer Loans 562,667 4,978 3.55%
Total Investments (FTE) 2,780,417 17,608 2.53%
Interest Expense Paid
Total Earning Assets 4,436,196 617 0.06%
Total Interest-Bearing Liabilities 2,540,194 617 0.10%
Total Interest-Bearing Deposits 2,453,227 601 0.10%
Interest-Bearing Transaction 804,512 62 0.03%
Savings 1,300,058 207 0.06%
Time less than $100K 176,052 150 0.34%
Time greater than $100K 172,605 182 0.42%
Total Short-Term Borrowings 86,967 16 0.07%
Net Interest Income and
Margin (FTE) $37,415 3.37%
Q2'14
Average Income/ Yield (a) /
Volume Expense Rate
Interest & Fee Income Earned
Total Earning Assets (FTE) $4,114,811 $39,482 3.85%
Total Loans (FTE) 1,802,041 23,256 5.18%
Commercial Loans (FTE) 397,549 5,576 5.63%
Commercial RE Loans 775,687 11,889 6.15%
Consumer Loans 628,805 5,791 3.69%
Total Investments (FTE) 2,312,770 16,226 2.80%
Interest Expense Paid
Total Earning Assets 4,114,811 900 0.09%
Total Interest-Bearing Liabilities 2,530,030 900 0.14%
Total Interest-Bearing Deposits 2,438,775 754 0.12%
Interest-Bearing Transaction 783,737 67 0.03%
Savings 1,202,519 238 0.08%
Time less than $100K 201,506 216 0.43%
Time greater than $100K 251,013 233 0.37%
Total Short-Term Borrowings 60,876 21 0.14%
Federal Home Loan Bank Advances 20,379 101 1.99%
Term Repurchase Agreement 10,000 24 0.98%
Net Interest Income and
Margin (FTE) $38,582 3.76%
6. Noninterest Income.
(dollars in thousands except per-share amounts)
%
Q2'15 Q2'14 Change Q1'15
Service Charges on Deposits $5,694 $6,105 -6.7% $5,707
Merchant Processing Services 1,783 1,820 -2.0% 1,703
Debit Card Fees 1,534 1,534 0.0% 1,456
Other Service Fees 683 688 -0.8% 665
ATM Processing Fees 627 634 -1.1% 585
Trust Fees 672 615 9.2% 706
Financial Services Commissions 198 221 -10.2% 153
Other Income 1,078 1,581 -31.8% 1,325
Total Noninterest Income $12,269 $13,198 -7.0% $12,300
Total Revenue (FTE) $49,684 $51,780 -4.0% $49,230
Noninterest Income/Revenue (FTE) 24.7% 25.5% 25.0%
Service Charges/Avg. Deposits (a) 0.52% 0.58% 0.53%
Total Revenues (FTE) Per Avg.
Common Share (a) $7.81 $7.93 -1.6% $7.78
%
6/30'15YTD 6/30'14YTD Change
Service Charges on Deposits $11,401 $12,115 -5.9%
Merchant Processing Services 3,486 3,744 -6.9%
Debit Card Fees 2,990 2,939 1.7%
Other Service Fees 1,348 1,349 0.0%
ATM Processing Fees 1,212 1,254 -3.4%
Trust Fees 1,378 1,269 8.6%
Financial Services Commissions 351 392 -10.5%
Other Income 2,403 3,126 -23.1%
Total Noninterest Income $24,569 $26,188 -6.2%
Total Revenue (FTE) $98,914 $103,634 -4.6%
Noninterest Income/Revenue (FTE) 24.8% 25.3%
Service Charges/Avg. Deposits (a) 0.52% 0.58%
Total Revenues (FTE) Per Avg.
Common Share (a) $7.80 $7.95 -1.9%
7. Noninterest Expense.
(dollars in thousands)
%
Q2'15 Q2'14 Change Q1'15
Salaries & Benefits $13,696 $13,926 -1.6% $13,338
Occupancy 3,726 3,746 -0.5% 3,727
Outsourced Data Processing 2,111 2,115 -0.2% 2,108
Amortization of
Identifiable Intangibles 955 1,058 -9.8% 1,001
Professional Fees 582 577 0.9% 548
Furniture & Equipment 1,158 1,005 15.2% 1,119
Other Real Estate Owned 52 (270) n/m 315
Courier Service 598 665 -10.2% 543
Other Operating 4,018 4,135 -2.8% 4,028
Total Noninterest Expense $26,896 $26,957 -0.2% $26,727
Noninterest Expense/
Avg. Earning Assets (a) 2.43% 2.63% 2.50%
Noninterest Expense/Revenues (FTE) 54.1% 52.1% 54.3%
%
6/30'15YTD 6/30'14YTD Change
Salaries & Benefits $27,034 $28,052 -3.6%
Occupancy 7,453 7,473 -0.3%
Outsourced Data Processing 4,219 4,220 0.0%
Amortization of
Identifiable Intangibles 1,956 2,163 -9.6%
Professional Fees 1,130 1,007 12.3%
Furniture & Equipment 2,277 2,010 13.3%
Other Real Estate Owned 367 (620) n/m
Courier Service 1,141 1,275 -10.6%
Other Operating 8,046 8,250 -2.5%
Total Noninterest Expense $53,623 $53,830 -0.4%
Noninterest Expense/
Avg. Earning Assets (a) 2.46% 2.65%
Noninterest Expense/Revenues (FTE) 54.2% 51.9%
8. Provision for Loan Losses.
(dollars in thousands)
%
Q2'15 Q2'14 Change Q1'15
Average Total Loans $1,655,779 $1,802,041 -8.1% $1,683,748
Allowance for Loan Loss (ALL)
Beginning of Period $31,187 $32,109 -2.9% $31,485
Provision for Loan Losses -- 1,000 n/m --
Net ALL Losses (359) (711) -49.6% (298)
ALL End of Period $30,828 $32,398 -4.8% $31,187
ALL Recoveries/Gross ALL Losses 74% 52% 73%
Net ALL Losses/Avg. Total Loans (a) 0.09% 0.16% 0.07%
%
6/30'15YTD 6/30'14YTD Change
Average Total Loans $1,669,686 $1,811,998 -7.9%
Allowance for Loan Loss (ALL)
Beginning of Period $31,485 $31,693 -0.7%
Provision for Loan Losses -- 2,000 n/m
Net ALL Losses (657) (1,295) -49.2%
ALL End of Period $30,828 $32,398 -4.8%
ALL Recoveries/Gross ALL Losses 73% 54%
Net ALL Losses/Avg. Total Loans (a) 0.08% 0.14%
9. Credit Quality.
(dollars in thousands)
%
6/30/15 6/30/14 Change 3/31/15
Nonperforming Originated Loans:
Nonperforming Nonaccrual $6,269 $6,757 -7.2% $3,315
Performing Nonaccrual 11 203 -94.6% 26
Total Nonaccrual Loans 6,280 6,960 -9.8% 3,341
90+ Days Past Due Accruing Loans 221 183 20.8% 191
Total 6,501 7,143 -9.0% 3,532
Repossessed Originated Loan Collateral 5,906 5,308 11.3% 5,483
Total Nonperforming
Originated Assets 12,407 12,451 -0.4% 9,015
Nonperforming Purchased Covered Loans (1):
Nonperforming Nonaccrual 3 -- n/m --
Performing Nonaccrual -- -- n/m --
Total Nonaccrual Loans 3 -- n/m --
90+ Days Past Due Accruing Loans -- -- n/m --
Total 3 -- n/m --
Repossessed Purchased Covered
Loan Collateral (1) 486 585 -16.9% 486
Total Nonperforming Purchased
Covered Assets (1) 489 585 -16.4% 486
Nonperforming Purchased Non-Covered Loans (2):
Nonperforming Nonaccrual 9,937 12,707 -21.8% 8,952
Performing Nonaccrual 5 895 -99.4% 1,093
Total Nonaccrual Loans 9,942 13,602 -26.9% 10,045
90+ Days Past Due Accruing Loans -- 351 n/m --
Total 9,942 13,953 -28.7% 10,045
Repossessed Purchased Non-Covered
Loan Collateral (2) 2,868 2,650 8.2% 3,264
Total Nonperforming Purchased
Non-Covered Assets (2) 12,810 16,603 -22.8% 13,309
Total Nonperforming Assets $25,706 $29,639 -13.3% $22,810
Total Originated Loans Outstanding $1,425,047 $1,517,278 -6.1% $1,465,546
Total Purchased Covered
Loans Outstanding (1) 15,109 18,169 -16.8% 16,329
Total Purchased Non-Covered
Loans Outstanding (2) 191,115 249,161 -23.3% 202,009
Total Loans Outstanding $1,631,271 $1,784,608 -8.6% $1,683,884
Total Assets $5,031,230 $4,931,095 2.0% $5,035,777
Loans:
Allowance for Loan Losses $30,828 $32,398 -4.8% $31,187
Allowance/Loans 1.89% 1.82% 1.85%
Nonperforming Loans/Total Loans 1.01% 1.18% 0.81%
Purchased Covered Loans (1):
Fair Value Discount on Purchased
Covered Loans $197 $529 $200
Discount/Purchased Covered
Loans, gross 1.29% 2.83% 1.21%
Nonperforming Purchased Covered Loans/
Total Purchased Covered Loans 0.02% 0.00% 0.00%
Purchased Non-Covered Loans (2):
Fair Value Discount on Purchased
Non-Covered Loans $7,780 $11,193 $8,705
Discount/Purchased Non-Covered
Loans, gross 3.91% 4.30% 4.13%
Nonperforming Purchased Non-Covered Loans/
Total Purchased Non-Covered Loans 5.20% 5.60% 4.97%
10. Capital.
(in thousands, except per-share amounts)
%
6/0/15 6/30/14 Change 3/31/15
Shareholders' Equity $525,338 $538,803 -2.5% $527,380
Total Assets 5,031,230 4,931,095 2.0% 5,035,777
Shareholders' Equity/
Total Assets 10.44% 10.93% 10.47%
Shareholders' Equity/
Total Loans 32.20% 30.19% 31.32%
Tangible Common Equity Ratio 7.99% 8.36% 8.01%
Common Shares Outstanding 25,529 26,074 -2.1% 25,563
Common Equity Per Share $20.58 $20.66 -0.4% $20.63
Market Value Per Common Share $50.65 $52.28 -3.1% $43.21
Share Repurchase Programs
(shares in thousands)
%
Q2'15 Q2'14 Change Q1'15
Total Shares Repurchased 133 271 -51.1% 183
Average Repurchase Price $43.89 $50.33 -12.8% $42.99
Net Shares Repurchased 34 225 -84.8% 182
%
6/30'15YTD 6/30'14YTD Change
Total Shares Repurchased 316 708 -55.4%
Average Repurchase Price $43.37 $51.32 -15.5%
Net Shares Repurchased 216 436 -50.5%
11. Period-End Balance Sheets.
(unaudited, dollars in thousands)
%
6/30/15 6/30/14 Change 3/31/15
Assets:
Cash and Due from Banks $289,606 $484,904 -40.3% $247,450
Investment Securities:
Available For Sale 1,634,878 1,278,242 27.9% 1,777,320
Held to Maturity 1,159,581 1,069,135 8.5% 1,015,231
Loans 1,631,271 1,784,608 -8.6% 1,683,884
Allowance For Loan Losses (30,828) (32,398) -4.8% (31,187)
Total Loans, net 1,600,443 1,752,210 -8.7% 1,652,697
Other Real Estate Owned 9,260 8,543 8.4% 9,233
Premises and Equipment, net 37,945 37,424 1.4% 38,313
Identifiable Intangibles, net 12,331 16,394 -24.8% 13,286
Goodwill 121,673 121,673 0.0% 121,673
Other Assets 165,513 162,570 1.8% 160,574
Total Assets $5,031,230 $4,931,095 2.0% $5,035,777
Liabilities and Shareholders' Equity:
Deposits:
Noninterest Bearing $1,930,551 $1,814,023 6.4% $1,902,904
Interest-Bearing Transaction 795,793 756,596 5.2% 787,633
Savings 1,287,859 1,198,353 7.5% 1,313,007
Time 340,641 444,417 -23.4% 376,532
Total Deposits 4,354,844 4,213,389 3.4% 4,380,076
Short-Term Borrowed Funds 82,747 68,962 20.0% 82,960
Federal Home Loan Bank Advances -- 20,296 n/m --
Term Repurchase Agreement -- 10,000 n/m --
Other Liabilities 68,301 79,645 -14.2% 45,361
Total Liabilities 4,505,892 4,392,292 2.6% 4,508,397
Shareholders' Equity:
Common Equity:
Paid-In Capital 380,050 384,893 -1.3% 377,669
Accumulated Other
Comprehensive Income 3,988 12,554 -68.2% 9,600
Retained Earnings 141,300 141,356 0.0% 140,111
Total Shareholders' Equity 525,338 538,803 -2.5% 527,380
Total Liabilities and
Shareholders' Equity $5,031,230 $4,931,095 2.0% $5,035,777
12. Income Statements.
(unaudited, in thousands except per-share amounts)
%
Q2'15 Q2'14 Change Q1'15
Interest & Fee Income:
Loans $20,035 $22,787 -12.1% $20,230
Investment Securities:
Available for Sale 7,999 5,875 36.1% 7,469
Held to Maturity 6,391 6,741 -5.2% 6,218
Total Interest & Fee Income 34,425 35,403 -2.8% 33,917
Interest Expense:
Transaction Deposits 62 67 -6.9% 63
Savings Deposits 207 238 -12.7% 216
Time Deposits 332 449 -25.9% 363
Short-Term Borrowed Funds 16 21 -26.9% 16
Federal Home Loan Bank Advances -- 101 n/m 1
Term Repurchase Agreement -- 24 n/m --
Total Interest Expense 617 900 -31.4% 659
Net Interest Income 33,808 34,503 -2.0% 33,258
Provision for Loan Losses -- 1,000 n/m --
Noninterest Income:
Service Charges 5,694 6,105 -6.7% 5,707
Merchant Processing Services 1,783 1,820 -2.0% 1,703
Debit Card Fees 1,534 1,534 0.0% 1,456
Other Service Fees 683 688 -0.8% 665
ATM Processing Fees 627 634 -1.1% 585
Trust Fees 672 615 9.2% 706
Financial Services Commissions 198 221 -10.2% 153
Other 1,078 1,581 -31.8% 1,325
Total Noninterest Income 12,269 13,198 -7.0% 12,300
Noninterest Expense:
Salaries and Benefits 13,696 13,926 -1.6% 13,338
Occupancy 3,726 3,746 -0.5% 3,727
Outsourced Data Processing 2,111 2,115 -0.2% 2,108
Amortization of Identifiable Intangibles 955 1,058 -9.8% 1,001
Professional Fees 582 577 0.9% 548
Furniture & Equipment 1,158 1,005 15.2% 1,119
Other Real Estate Owned 52 (270) n/m 315
Courier Service 598 665 -10.2% 543
Other 4,018 4,135 -2.8% 4,028
Total Noninterest Expense 26,896 26,957 -0.2% 26,727
Income Before Income Taxes 19,181 19,744 -2.9% 18,831
Income Tax Provision 4,420 4,587 -3.6% 4,274
Net Income $14,761 $15,157 -2.6% $14,557
Average Common Shares Outstanding 25,514 26,175 -2.5% 25,651
Diluted Common Shares Outstanding 25,536 26,238 -2.7% 25,655
Per Common Share Data:
Basic Earnings $0.58 $0.58 0.0% $0.57
Diluted Earnings 0.58 0.58 0.0% 0.57
Dividends Paid 0.38 0.38 0.0% 0.38
%
6/30'15YTD 6/30'14YTD Change
Interest & Fee Income:
Loans $40,265 $45,688 -11.9%
Investment Securities:
Available for Sale 15,468 11,505 34.4%
Held to Maturity 12,609 13,774 -8.5%
Total Interest & Fee Income 68,342 70,967 -3.7%
Interest Expense:
Transaction Deposits 125 134 -6.5%
Savings Deposits 423 472 -10.3%
Time Deposits 695 902 -22.9%
Short-Term Borrowed Funds 32 41 -23.5%
Federal Home Loan Bank Advances 1 200 n/m
Term Repurchase Agreement -- 49 n/m
Total Interest Expense 1,276 1,798 -29.0%
Net Interest Income 67,066 69,169 -3.0%
Provision for Loan Losses -- 2,000 n/m
Noninterest Income:
Service Charges 11,401 12,115 -5.9%
Merchant Processing Services 3,486 3,744 -6.9%
Debit Card Fees 2,990 2,939 1.7%
Other Service Fees 1,348 1,349 0.0%
ATM Processing Fees 1,212 1,254 -3.4%
Trust Fees 1,378 1,269 8.6%
Financial Services Commissions 351 392 -10.5%
Other 2,403 3,126 -23.1%
Total Noninterest Income 24,569 26,188 -6.2%
Noninterest Expense:
Salaries and Benefits 27,034 28,052 -3.6%
Occupancy 7,453 7,473 -0.3%
Outsourced Data Processing 4,219 4,220 0.0%
Amortization of Identifiable Intangibles 1,956 2,163 -9.6%
Professional Fees 1,130 1,007 12.3%
Furniture & Equipment 2,277 2,010 13.3%
Other Real Estate Owned 367 (620) n/m
Courier Service 1,141 1,275 -10.6%
Other 8,046 8,250 -2.5%
Total Noninterest Expense 53,623 53,830 -0.4%
Income Before Income Taxes 38,012 39,527 -3.8%
Income Tax Provision 8,694 9,063 -4.1%
Net Income $29,318 $30,464 -3.8%
Average Common Shares Outstanding 25,582 26,303 -2.7%
Diluted Common Shares Outstanding 25,595 26,387 -3.0%
Per Common Share Data:
Basic Earnings $1.15 $1.16 -0.9%
Diluted Earnings 1.15 1.15 0.0%
Dividends Paid 0.76 0.76 0.0%
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.

CONTACT: For additional information 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