Westamerica Bancorporation Reports Fourth Quarter 2015 Financial Results

SAN RAFAEL, Calif., Jan. 21, 2016 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq:WABC), parent company of Westamerica Bank, generated net income for the fourth quarter 2015 of $14.6 million and diluted earnings per common share ("EPS") of $0.57, compared to net income of $14.9 million and EPS of $0.58 for the prior quarter, and net income of $15.0 million and EPS of $0.58 for the fourth quarter 2014.

"Westamerica’s net interest margin stabilized at 3.32 percent for the fourth quarter 2015 compared to 3.31 percent in the prior quarter; yields on loans and investment securities were little changed while the margin was supported by a relatively low 0.05 percent cost of funding our interest generating assets. Lower-cost checking and savings deposits continued to grow in the fourth quarter 2015, and represented 94 percent of total deposits at December 31, 2015. Westamerica’s credit quality remained stable at healthy levels throughout the fourth quarter 2015, requiring no provision for loan losses, and our operating expenses represented only 53 percent of our revenues during the quarter,” said Chairman, President and CEO David Payne. “Our operating results generated an annualized return on shareholders’ common equity of 11 percent for the fourth quarter 2015, and Westamerica increased its quarterly shareholder dividend to $0.39 per share,” concluded Payne.

The annualized net interest margin on a fully taxable equivalent basis was 3.32 percent for the fourth quarter 2015, compared to 3.31 percent for the prior quarter and 3.53 percent for the fourth quarter 2014. Net interest income on a fully taxable equivalent basis was $36.7 million for the fourth quarter 2015, compared to $37.2 million for the prior quarter, and $37.3 million for the fourth quarter 2014. The yields on the Company’s interest earning loans and investment securities were pressured by low market interest rates during 2015. During this period, the Company avoided long-dated, low-yielding loans given the expectation for rising interest rates; the Company also reduced its exposure to rising interest rates by purchasing shorter-duration investment securities. The funding cost of deposits and other interest-bearing borrowings, as a percentage of average loans and investment securities, was 0.05 percent for the fourth quarter 2015, unchanged from the prior quarter and down from 0.08 percent for the fourth quarter 2014.

The provision for loan losses was zero for the fourth quarter 2015, unchanged from the prior quarter, and down from $200 thousand for the fourth quarter 2014. Net loan losses charged against the allowance for loan losses totaled $265 thousand for the fourth quarter 2015, compared to $792 thousand for the prior quarter and $484 thousand for the fourth quarter 2014. At December 31, 2015, the allowance for loan losses totaled $30 million and nonperforming loans totaled $15.3 million.

Noninterest income for the fourth quarter 2015 totaled $11.3 million, compared to $12.0 million for the prior quarter, and $12.5 million for the fourth quarter 2014. The decline in noninterest income is due to declines in service charges on deposit accounts and merchant processing fees.

Noninterest expense for the fourth quarter 2015 totaled $25.5 million, compared to $26.2 million for the prior quarter and $26.4 million for the fourth quarter 2014. The decline in noninterest expense is due to declines in personnel costs and other operating expenses.

At December 31, 2015, Westamerica Bancorporation's tangible common equity-to-asset ratio was 7.9 percent, and assets totaled $5.2 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 September 30, 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.

Public Information January 21, 2016
WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
December 31, 2015
1. Net Income Summary.
(in thousands except per-share amounts)
%
Q4'15Q4'14ChangeQ3'15
Net Interest and Fee Income (FTE)$36,734 $37,305 -1.5%$37,179
Provision for Loan Losses - 200 n/m -
Noninterest Income 11,305 12,545 -9.9% 11,993
Noninterest Expense 25,504 26,353 -3.2% 26,173
Income Before Taxes (FTE) 22,535 23,297 -3.3% 22,999
Income Tax Provision (FTE) 7,957 8,269 -3.8% 8,142
Net Income$14,578 $15,028 -3.0%$14,857
Average Common Shares Outstanding 25,528 25,821 -1.1% 25,530
Diluted Average Common Shares 25,555 25,858 -1.2% 25,565
Operating Ratios:
Basic Earnings Per Common Share$0.57 $0.58 -1.7%$0.58
Diluted Earnings Per Common Share 0.57 0.58 -1.7% 0.58
Return On Assets (a) 1.12% 1.18% 1.16%
Return On Common Equity (a) 11.0% 11.5% 11.3%
Net Interest Margin (FTE) (a) 3.32% 3.53% 3.31%
Efficiency Ratio (FTE) 53.1% 52.9% 53.2%
Dividends Paid Per Common Share$0.39 $0.38 2.6%$0.38
Common Dividend Payout Ratio 68% 66% 66%
%
12/31'15YTD12/31'14YTDChange
Net Interest and Fee Income (FTE)$148,258 $152,656 -2.9%
Provision for Loan Losses - 2,800 n/m
Noninterest Income 47,867 51,787 -7.6%
Noninterest Expense 105,300 106,799 -1.4%
Income Before Taxes (FTE) 90,825 94,844 -4.2%
Income Tax Provision (FTE) 32,072 34,198 -6.2%
Net Income$58,753 $60,646 -3.1%
Average Common Shares Outstanding 25,555 26,099 -2.1%
Diluted Average Common Shares 25,577 26,160 -2.2%
Operating Ratios:
Basic Earnings Per Common Share$2.30 $2.32 -0.9%
Diluted Earnings Per Common Share 2.30 2.32 -0.9%
Return On Assets 1.16% 1.22%
Return On Common Equity 11.3% 11.6%
Net Interest Margin (FTE) 3.36% 3.70%
Efficiency Ratio (FTE) 53.7% 52.2%
Dividends Paid Per Common Share$1.53 $1.52 0.7%
Common Dividend Payout Ratio 67% 66%
2. Net Interest Income.
(dollars in thousands)
%
Q4'15Q4'14ChangeQ3'15
Interest and Fee Income (FTE)$37,297 $38,105 -2.1%$37,764
Interest Expense 563 800 -29.7% 585
Net Interest and Fee Income (FTE)$36,734 $37,305 -1.5%$37,179
Average Earning Assets$4,411,599 $4,203,048 5.0%$4,471,690
Average Interest-Bearing Liabilities 2,554,447 2,554,153 0.0% 2,511,820
Yield on Earning Assets (FTE) (a) 3.37% 3.61% 3.36%
Cost of Funds (a) 0.05% 0.08% 0.05%
Net Interest Margin (FTE) (a) 3.32% 3.53% 3.31%
Interest Expense/Interest-Bearing Liabilities (a) 0.09% 0.12% 0.09%
Net Interest Spread (FTE) (a) 3.28% 3.49% 3.27%
%
12/31'15YTD12/31'14YTDChange
Interest and Fee Income (FTE)$150,682 $156,100 -3.5%
Interest Expense 2,424 3,444 -29.6%
Net Interest and Fee Income (FTE)$148,258 $152,656 -2.9%
Average Earning Assets$4,415,724 $4,134,473 6.8%
Average Interest-Bearing Liabilities 2,544,350 2,536,967 0.3%
Yield on Earning Assets (FTE) 3.41% 3.78%
Cost of Funds 0.05% 0.08%
Net Interest Margin (FTE) 3.36% 3.70%
Interest Expense/Interest-Bearing Liabilities 0.10% 0.14%
Net Interest Spread (FTE) 3.31% 3.64%
3. Loans & Other Earning Assets.
(average volume, dollars in thousands)
%
Q4'15Q4'14ChangeQ3'15
Total Assets$5,168,805 $5,050,417 2.3%$5,062,334
Total Earning Assets 4,411,599 4,203,048 5.0% 4,471,690
Total Loans 1,543,591 1,709,012 -9.7% 1,591,798
Commercial Loans 371,902 395,933 -6.1% 377,687
Commercial RE Loans 651,991 723,153 -9.8% 675,597
Consumer Loans 519,698 589,926 -11.9% 538,514
Total Investment Securities 2,868,008 2,494,036 15.0% 2,879,892
Available For Sale (Market) 1,589,483 1,467,682 8.3% 1,649,986
Held To Maturity 1,278,525 1,026,354 24.6% 1,229,906
Unrealized Gain 9,624 9,904 n/m 15,144
Loans/Deposits 34.0% 39.1% 36.1%
%
12/31'15YTD12/31'14YTDChange
Total Assets$5,084,000 $4,955,643 2.6%
Total Earning Assets 4,415,724 4,134,473 6.8%
Total Loans 1,618,271 1,772,962 -8.7%
Commercial Loans 389,050 396,928 -2.0%
Commercial RE Loans 681,145 757,047 -10.0%
Consumer Loans 548,076 618,987 -11.5%
Total Investment Securities 2,797,453 2,361,511 18.5%
Available For Sale (Market) 1,648,999 1,289,911 27.8%
Held To Maturity 1,148,454 1,071,600 7.2%
Unrealized Gain 9,624 9,904 n/m
Loans/Deposits 36.5% 41.4%
4. Deposits, Other Interest-Bearing Liabilities & Equity.
(average volume, dollars in thousands)
%
Q4'15Q4'14ChangeQ3'15
Total Deposits$4,536,256 $4,373,472 3.7%$4,414,711
Noninterest Demand 2,036,470 1,925,741 5.7% 1,975,498
Interest Bearing Transaction 855,320 806,051 6.1% 817,479
Savings 1,351,412 1,248,699 8.2% 1,304,128
Time greater than $100K 128,703 205,894 -37.5% 147,216
Time less than $100K 164,351 187,087 -12.2% 170,390
Total Short-Term Borrowings 54,661 86,323 -36.7% 72,607
Federal Home Loan Bank Advances - 20,099 n/m -
Shareholders' Equity 525,277 518,206 1.4% 520,261
Demand Deposits/
Total Deposits 44.9% 44.0% 44.7%
Transaction & Savings
Deposits / Total Deposits 93.5% 91.0% 92.8%
%
12/31'15YTD12/31'14YTDChange
Total Deposits$4,437,619 $4,281,847 3.6%
Noninterest Demand 1,968,817 1,841,522 6.9%
Interest Bearing Transaction 822,156 790,467 4.0%
Savings 1,312,100 1,215,035 8.0%
Time greater than $100K 161,710 237,002 -31.8%
Time less than $100K 172,836 197,821 -12.6%
Total Short-Term Borrowings 75,054 70,252 6.8%
Federal Home Loan Bank Advances 494 20,308 -97.6%
Term Repurchase Agreement - 6,082 n/m
Shareholders' Equity 519,126 524,288 -1.0%
Demand Deposits/
Total Deposits 44.4% 43.0%
Transaction & Savings
Deposits / Total Deposits 92.5% 89.8%
5. Interest Yields Earned & Rates Paid.
(dollars in thousands)
Q4'15
AverageIncome/Yield (a) /
VolumeExpenseRate
Interest & Fee Income Earned
Total Earning Assets (FTE)$4,411,599 $37,297 3.37%
Total Loans (FTE) 1,543,591 19,157 4.93%
Commercial Loans (FTE) 371,902 4,551 4.85%
Commercial RE Loans 651,991 9,807 5.97%
Consumer Loans 519,698 4,799 3.67%
Total Investments (FTE) 2,868,008 18,140 2.53%
Interest Expense Paid
Total Earning Assets 4,411,599 563 0.05%
Total Interest-Bearing Liabilities 2,554,447 563 0.09%
Total Interest-Bearing Deposits 2,499,786 554 0.09%
Interest-Bearing Transaction 855,320 70 0.03%
Savings 1,351,412 218 0.06%
Time less than $100K 164,351 122 0.29%
Time greater than $100K 128,703 144 0.44%
Total Short-Term Borrowings 54,661 9 0.06%
Net Interest Income and Margin (FTE) $36,734 3.32%
Q4'14
AverageIncome/Yield (a) /
VolumeExpenseRate
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%
6. Noninterest Income.
(dollars in thousands except per-share amounts)
%
Q4'15Q4'14ChangeQ3'15
Service Charges on Deposits$5,259 $5,870 -10.4%$5,581
Merchant Processing Services 1,368 1,734 -21.1% 1,485
Debit Card Fees 1,557 1,478 5.3% 1,538
Other Service Fees 648 673 -3.7% 693
ATM Processing Fees 569 581 -2.1% 616
Trust Fees 671 684 -1.9% 682
Financial Services Commissions 168 171 -2.3% 177
Other Income 1,065 1,354 -21.3% 1,221
Total Noninterest Income$11,305 $12,545 -9.9%$11,993
Total Revenue (FTE)$48,039 $49,850 -3.6%$49,172
Noninterest Income/Revenue (FTE) 23.5% 25.2% 24.4%
Service Charges/Avg. Deposits (a) 0.46% 0.53% 0.50%
Total Revenues (FTE) Per Avg. Common Share (a)$7.47 $7.66 -2.5%$7.64
%
12/31'15YTD12/31'14YTDChange
Service Charges on Deposits$22,241 $24,191 -8.1%
Merchant Processing Services 6,339 7,219 -12.2%
Debit Card Fees 6,084 5,960 2.1%
Other Service Fees 2,689 2,717 -1.0%
ATM Processing Fees 2,397 2,473 -3.1%
Trust Fees 2,732 2,582 5.8%
Financial Services Commissions 695 757 -8.2%
Other Income 4,690 5,888 -20.3%
Total Noninterest Income$47,867 $51,787 -7.6%
Total Revenue (FTE)$196,125 $204,443 -4.1%
Noninterest Income/Revenue (FTE) 24.4% 25.3%
Service Charges/Avg. Deposits 0.50% 0.56%
Total Revenues (FTE) Per Avg.Common Share$7.67 $7.83 -2.0%
7. Noninterest Expense.
(dollars in thousands)
%
Q4'15Q4'14ChangeQ3'15
Salaries & Benefits$12,398 $13,086 -5.3%$12,761
Occupancy 3,761 3,708 1.4% 3,746
Outsourced Data Processing 2,107 2,097 0.5% 2,115
Amortization of Identifiable Intangibles 948 1,051 -9.8% 952
Professional Fees 614 640 -4.0% 746
Furniture & Equipment 1,081 1,104 -2.0% 1,075
Other Real Estate Owned 53 265 n/m 83
Courier Service 585 686 -14.8% 604
Other Operating 3,957 3,716 6.5% 4,091
Total Noninterest Expense$25,504 $26,353 -3.2%$26,173
Noninterest Expense/Avg. Earning Assets (a) 2.29% 2.49% 2.32%
Noninterest Expense/Revenues (FTE) 53.1% 52.9% 53.2%
%
12/31'15YTD12/31'14YTDChange
Salaries & Benefits$52,192 $54,777 -4.7%
Occupancy 14,960 14,992 -0.2%
Outsourced Data Processing 8,441 8,411 0.4%
Amortization of Identifiable Intangibles 3,856 4,270 -9.7%
Professional Fees 2,490 2,346 6.1%
Furniture & Equipment 4,434 4,174 6.3%
Other Real Estate Owned 504 (642) n/m
Courier Service 2,329 2,624 -11.2%
Other Operating 16,094 15,847 1.6%
Total Noninterest Expense$105,300 $106,799 -1.4%
Noninterest Expense/ Avg. Earning Assets 2.38% 2.58%
Noninterest Expense/Revenues (FTE) 53.7% 52.2%
8. Provision for Loan Losses.
(dollars in thousands)
%
Q4'15Q4'14ChangeQ3'15
Average Total Loans$1,543,591 $1,709,012 -9.7%$1,591,798
Allowance for Loan Loss (ALL)
Beginning of Period $30,036 $31,769 -5.5%$30,828
Provision for Loan Losses - 200 n/m -
Net ALL Losses (265) (484) -45.2% (792)
ALL End of Period$29,771 $31,485 -5.4%$30,036
ALL Recoveries/Gross ALL Losses 78% 83% 46%
Net ALL Losses/Avg. Total Loans (a) 0.07% 0.11% 0.20%
%
12/31'15YTD12/31'14YTDChange
Average Total Loans$1,618,271 $1,772,962 -8.7%
Allowance for Loan Loss (ALL)
Beginning of Period $31,485 $31,693 -0.7%
Provision for Loan Losses - 2,800 n/m
Net ALL Losses (1,714) (3,008) -43.0%
ALL End of Period$29,771 $31,485 -5.4%
ALL Recoveries/Gross ALL Losses 67% 59%
Net ALL Losses/Avg. Total Loans 0.11% 0.17%
9. Credit Quality.
(dollars in thousands)
%
12/31/1512/31/14Change9/30/15
Nonperforming Originated Loans:
Nonperforming Nonaccrual$6,302 $5,296 19.0%$7,578
Performing Nonaccrual 350 13 n/m -
Total Nonaccrual Loans 6,652 5,309 25.3% 7,578
90+ Days Past Due Accruing Loans 295 502 -41.2% 481
Total 6,947 5,811 19.6% 8,059
Repossessed Originated Loan Collateral 5,829 4,809 21.2% 5,834
Total Nonperforming Originated Assets 12,776 10,620 20.3% 13,893
Nonperforming Purchased Covered Loans (1):
Nonperforming Nonaccrual - 297 n/m -
Performing Nonaccrual - - n/m -
Total Nonaccrual Loans - 297 n/m -
90+ Days Past Due Accruing Loans - - n/m -
Total - 297 n/m -
Repossessed Purchased Covered Loan Collateral (1) - - n/m -
Total Nonperforming Purchased Covered Assets (1) - 297 n/m -
Nonperforming Purchased Non-Covered Loans (2):
Nonperforming Nonaccrual 8,346 11,901 -29.9% 8,784
Performing Nonaccrual - 97 n/m 84
Total Nonaccrual Loans 8,346 11,998 -30.4% 8,868
90+ Days Past Due Accruing Loans - - n/m -
Total 8,346 11,998 -30.4% 8,868
Repossessed Purchased Non-Covered Loan Collateral (2) 3,435 1,565 119.5% 3,435
Total Nonperforming Purchased Non-Covered Assets (2) 11,781 13,563 -13.1% 12,303
Total Nonperforming Assets$24,557 $24,480 0.3%$26,196
Total Originated Loans Outstanding$1,351,839 $1,470,369 -8.1%$1,376,905
Total Purchased Covered Loans Outstanding (1) 14,061 17,078 -17.7% 14,640
Total Purchased Non-Covered Loans Outstanding (2) 167,496 212,843 -21.3% 180,298
Total Loans Outstanding $1,533,396 $1,700,290 -9.8%$1,571,843
Total Assets $5,168,875 $5,035,724 2.6%$5,001,395
Loans:
Allowance for Loan Losses$29,771 $31,485 -5.4%$30,036
Allowance/Loans 1.94% 1.85% 1.91%
Nonperforming Loans/Total Loans 1.00% 1.06% 1.08%
Purchased Covered Loans (1):
Fair Value Discount on Purchased Covered Loans$152 $468 $155
Discount/Purchased Covered Loans, gross 1.07% 2.67% 1.05%
Nonperforming Purchased Covered Loans/Total Purchased Covered Loans 0.00% 1.74% 0.00%
Purchased Non-Covered Loans (2):
Fair Value Discount on Purchased Non-Covered Loans$6,432 $9,372 $7,082
Discount/Purchased Non-Covered Loans, gross 3.70% 4.22% 3.78%
Nonperforming Purchased Non-Covered Loans/ Total Purchased Non-Covered Loans 4.98% 5.64% 4.92%
10. Capital.
(in thousands, except per-share amounts)
%
12/31/1512/31/14Change9/30/15
Shareholders' Equity$532,205 $526,603 1.1%$533,938
Total Assets 5,168,875 5,035,724 2.6% 5,001,395
Shareholders' Equity/Total Assets 10.30% 10.46% 10.68%
Shareholders' Equity/Total Loans 34.71% 30.97% 33.97%
Tangible Common Equity Ratio 7.94% 7.97% 8.23%
Common Shares Outstanding 25,528 25,745 -0.8% 25,530
Common Equity Per Share$20.85 $20.45 1.9%$20.91
Market Value Per Common Share$46.75 $48.96 -4.5%$44.44
Share Repurchase Programs
(shares in thousands)
%
Q4'15Q4'14ChangeQ3'15
Total Shares Repurchased 2 161 -99.1% 26
Average Repurchase Price$43.01 $48.73 -11.7%$50.30
Net Shares Repurchased (Issued) 2 161 -98.8% (1)
%
12/31'15YTD12/31'14YTDChange
Total Shares Repurchased 344 1,044 -67.1%
Average Repurchase Price$43.90 $50.47 -13.0%
Net Shares Repurchased 217 765 -71.6%
11. Period-End Balance Sheets.
(unaudited, dollars in thousands)
%
12/31/1512/31/14Change9/30/15
Assets:
Cash and Due from Banks$433,044 $380,836 13.7%$268,587
Investment Securities:
Available For Sale 1,570,216 1,600,781 -1.9% 1,571,710
Held to Maturity 1,316,075 1,038,658 26.7% 1,278,814
Loans 1,533,396 1,700,290 -9.8% 1,571,843
Allowance For Loan Losses (29,771) (31,485) -5.4% (30,036)
Total Loans, net 1,503,625 1,668,805 -9.9% 1,541,807
Other Real Estate Owned 9,264 6,374 45.4% 9,269
Premises and Equipment, net 38,693 37,852 2.2% 39,244
Identifiable Intangibles, net 10,431 14,287 -27.0% 11,379
Goodwill 121,673 121,673 0.0% 121,673
Other Assets 165,854 166,458 -0.4% 158,912
Total Assets$5,168,875 $5,035,724 2.6%$5,001,395
Liabilities and Shareholders' Equity:
Deposits:
Noninterest Bearing$2,026,049 $1,910,781 6.0%$1,942,450
Interest-Bearing Transaction 860,706 792,448 8.6% 812,940
Savings 1,366,936 1,260,819 8.4% 1,310,985
Time 286,968 385,143 -25.5% 300,545
Total Deposits 4,540,659 4,349,191 4.4% 4,366,920
Short-Term Borrowed Funds 53,028 89,784 -40.9% 57,063
Federal Home Loan Bank Advances - 20,015 n/m -
Other Liabilities 42,983 50,131 -14.3% 43,474
Total Liabilities 4,636,670 4,509,121 2.8% 4,467,457
Shareholders' Equity:
Common Equity:
Paid-In Capital 381,436 380,843 0.2% 381,227
Accumulated Other Comprehensive Income 675 5,292 -87.2% 7,198
Retained Earnings 150,094 140,468 6.9% 145,513
Total Shareholders' Equity 532,205 526,603 1.1% 533,938
Total Liabilities and Shareholders' Equity$5,168,875 $5,035,724 2.6%$5,001,395
12. Income Statements.
(unaudited, in thousands except per-share amounts)
%
Q4'15Q4'14ChangeQ3'15
Interest & Fee Income:
Loans$18,798 $21,240 -11.5%$19,378
Investment Securities:
Available for Sale 7,916 6,884 15.0% 7,880
Held to Maturity 7,174 6,218 15.4% 7,041
Total Interest & Fee Income 33,888 34,342 -1.3% 34,299
Interest Expense:
Transaction Deposits 70 65 7.3% 65
Savings Deposits 218 214 2.0% 211
Time Deposits 266 393 -32.4% 297
Short-Term Borrowed Funds 9 25 -65.9% 12
Federal Home Loan Bank Advances - 103 n/m -
Total Interest Expense 563 800 -29.7% 585
Net Interest Income 33,325 33,542 -0.6% 33,714
Provision for Loan Losses - 200 n/m -
Noninterest Income:
Service Charges 5,259 5,870 -10.4% 5,581
Merchant Processing Services 1,368 1,734 -21.1% 1,485
Debit Card Fees 1,557 1,478 5.3% 1,538
Other Service Fees 648 673 -3.7% 693
ATM Processing Fees 569 581 -2.1% 616
Trust Fees 671 684 -1.9% 682
Financial Services Commissions 168 171 -2.3% 177
Other 1,065 1,354 -21.3% 1,221
Total Noninterest Income 11,305 12,545 -9.9% 11,993
Noninterest Expense:
Salaries and Benefits 12,398 13,086 -5.3% 12,761
Occupancy 3,761 3,708 1.4% 3,746
Outsourced Data Processing 2,107 2,097 0.5% 2,115
Amortization of Identifiable Intangibles 948 1,051 -9.8% 952
Professional Fees 614 640 -4.0% 746
Furniture & Equipment 1,081 1,104 -2.0% 1,075
Other Real Estate Owned 53 265 n/m 83
Courier Service 585 686 -14.8% 604
Other 3,957 3,716 6.5% 4,091
Total Noninterest Expense 25,504 26,353 -3.2% 26,173
Income Before Income Taxes 19,126 19,534 -2.1% 19,534
Income Tax Provision 4,548 4,506 0.9% 4,677
Net Income$14,578 $15,028 -3.0%$14,857
Average Common Shares Outstanding 25,528 25,821 -1.1% 25,530
Diluted Common Shares Outstanding 25,555 25,858 -1.2% 25,565
Per Common Share Data:
Basic Earnings$0.57 $0.58 -1.7%$0.58
Diluted Earnings 0.57 0.58 -1.7% 0.58
Dividends Paid 0.39 0.38 2.6% 0.38
%
12/31'15YTD12/31'14YTDChange
Interest & Fee Income:
Loans$78,441 $89,056 -11.9%
Investment Securities:
Available for Sale 31,263 24,740 26.4%
Held to Maturity 26,825 26,413 1.6%
Total Interest & Fee Income 136,529 140,209 -2.6%
Interest Expense:
Transaction Deposits 260 268 -3.1%
Savings Deposits 852 906 -6.0%
Time Deposits 1,258 1,713 -26.6%
Short-Term Borrowed Funds 53 90 -41.6%
Federal Home Loan Bank Advances 1 407 n/m
Term Repurchase Agreement - 60 n/m
Total Interest Expense 2,424 3,444 -29.6%
Net Interest Income 134,105 136,765 -1.9%
Provision for Loan Losses - 2,800 n/m
Noninterest Income:
Service Charges 22,241 24,191 -8.1%
Merchant Processing Services 6,339 7,219 -12.2%
Debit Card Fees 6,084 5,960 2.1%
Other Service Fees 2,689 2,717 -1.0%
ATM Processing Fees 2,397 2,473 -3.1%
Trust Fees 2,732 2,582 5.8%
Financial Services Commissions 695 757 -8.2%
Other 4,690 5,888 -20.3%
Total Noninterest Income 47,867 51,787 -7.6%
Noninterest Expense:
Salaries and Benefits 52,192 54,777 -4.7%
Occupancy 14,960 14,992 -0.2%
Outsourced Data Processing 8,441 8,411 0.4%
Amortization of Identifiable Intangibles 3,856 4,270 -9.7%
Professional Fees 2,490 2,346 6.1%
Furniture & Equipment 4,434 4,174 6.3%
Other Real Estate Owned 504 (642) n/m
Courier Service 2,329 2,624 -11.2%
Other 16,094 15,847 1.6%
Total Noninterest Expense 105,300 106,799 -1.4%
Income Before Income Taxes 76,672 78,953 -2.9%
Income Tax Provision 17,919 18,307 -2.1%
Net Income$58,753 $60,646 -3.1%
Average Common Shares Outstanding 25,555 26,099 -2.1%
Diluted Common Shares Outstanding 25,577 26,160 -2.2%
Per Common Share Data:
Basic Earnings$2.30 $2.32 -0.9%
Diluted Earnings 2.30 2.32 -0.9%
Dividends Paid 1.53 1.52 0.7%
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.

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