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Westamerica Bancorporation Reports Third Quarter 2017 Financial Results

SAN RAFAEL, Calif., Oct. 19, 2017 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq:WABC), parent company of Westamerica Bank, generated net income for the third quarter 2017 of $15.0 million and diluted earnings per common share ("EPS") of $0.57, compared to second quarter 2017 net income of $15.8 million and EPS of $0.60 and third quarter 2016 net income of $15.6 million and EPS of $0.61. Financial results for both the second quarter 2017 and third quarter 2016 include a reversal of provision for loan losses of $1.9 million and $3.2 million, respectively.

"Third quarter 2017 net income benefited from higher noninterest income and lower noninterest expense. Merchant processing fees and debit card fees have been growing, and we have been successful in further reducing our operating costs. Asset quality remained very high with nonperforming assets totaling only $7.6 million at September 30, 2017,” said Chairman, President and CEO David Payne. “Westamerica generated an annualized 10 percent return on average shareholders’ common equity for the third quarter 2017, and paid a quarterly dividend of $0.39 per common share,” concluded Payne.

The annualized net interest margin on a fully taxable equivalent basis was 3.10 percent for the third quarter 2017, compared to 3.12 percent for the second quarter 2017, and 3.21 percent for the third quarter 2016. Net interest income on a fully taxable equivalent basis was $35.7 million for the third quarter 2017, compared to $35.8 million for the second quarter 2017, and $36.2 million for the third quarter 2016. The annualized funding cost of deposits and other interest-bearing borrowings, as a percentage of average earning assets, was 0.04 percent for the third quarter 2017, compared to 0.04 percent for the second quarter 2017 and 0.05 percent for the third quarter 2016. Checking and savings deposits, which earn relatively low interest rates and are less volatile than time deposits during periods of rising market interest rates, represented 95 percent of average total deposits during the third quarter 2017.

The Company recognized no provision for loan losses for the third quarter 2017 given stable nonperforming loan volumes and other credit quality attributes. The Company recognized a reversal of provision for loan losses of $1.9 million for the second quarter 2017 given realization of net recoveries of prior loan losses of $1.1 million and improvements in credit quality. The Company recognized a reversal of provision for loan losses of $3.2 million for the third quarter 2016 given realization of net recoveries of prior loan losses of $649 thousand and significant declines in the volume of nonperforming loans. At September 30, 2017, the allowance for loan losses totaled $23.6 million.

Noninterest income for the third quarter 2017 totaled $12.5 million, compared to $12.1 million for the second quarter 2017 and $11.6 million for the third quarter 2016. The increase in third quarter 2017 noninterest income relative to the prior quarters was primarily due to higher merchant processing fees and debit card fees.

Noninterest expense for the third quarter 2017 totaled $24.1 million, compared to $24.4 million for the second quarter 2017 and $26.1 million for the third quarter 2016. The $2 million reduction in noninterest expense from the third quarter 2016 to the third quarter 2017 was due to reductions in professional fees, limited partnership operating losses, intangible amortization, and correspondent service charges, offset in part by higher outsourced automation and other real estate owned expenses.

At September 30, 2017, Westamerica Bancorporation's tangible common equity-to-asset ratio was 8.98 percent, and assets totaled $5.4 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

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


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, 2016 filed on Form 10-K and quarterly report for the quarter ended June 30, 2017 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 October 19, 2017
WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
September 30, 2017
1. Net Income Summary.
(in thousands except per-share amounts)
%
Q3'17Q3'16ChangeQ2'17
Net Interest and Fee Income (FTE)$35,680 $36,176 -1.4%$35,764
Reversal of Provision for Loan Losses - (3,200)n/m (1,900)
Noninterest Income 12,548 11,598 8.2% 12,123
Noninterest Expense 24,114 26,088 -7.6% 24,396
Income Before Taxes (FTE) 24,114 24,886 -3.1% 25,391
Income Tax Provision (FTE) 9,097 9,258 -1.7% 9,592
Net Income$15,017 $15,628 -3.9%$15,799
Average Common Shares Outstanding 26,309 25,641 2.6% 26,299
Diluted Average Common Shares 26,404 25,687 2.8% 26,402
Operating Ratios:
Basic Earnings Per Common Share$0.57 $0.61 -6.6%$0.60
Diluted Earnings Per Common Share 0.57 0.61 -6.6% 0.60
Return On Assets (a) 1.09% 1.18% 1.18%
Return On Common Equity (a) 9.9% 11.4% 10.7%
Net Interest Margin (FTE) (a) 3.10% 3.21% 3.12%
Efficiency Ratio (FTE) 50.0% 54.6% 50.9%
Dividends Paid Per Common Share$0.39 $0.39 0.0%$0.39
Common Dividend Payout Ratio 68% 64% 65%
%
9/30'17YTD9/30'16YTDChange
Net Interest and Fee Income (FTE)$107,474 $109,118 -1.5%
Reversal of Provision for Loan Losses (1,900) (3,200)n/m
Noninterest Income 36,328 35,029 3.7%
Noninterest Expense 73,125 77,175 -5.2%
Income Before Taxes (FTE) 72,577 70,172 3.4%
Income Tax Provision (FTE) 26,712 25,772 3.6%
Net Income$45,865 $44,400 3.3%
Average Common Shares Outstanding 26,260 25,558 2.7%
Diluted Average Common Shares 26,379 25,595 3.1%
Operating Ratios:
Basic Earnings Per Common Share$1.75 $1.74 0.6%
Diluted Earnings Per Common Share 1.74 1.73 0.6%
Return On Assets (a) 1.13% 1.14%
Return On Common Equity (a) 10.4% 11.0%
Net Interest Margin (FTE) (a) 3.12% 3.27%
Efficiency Ratio (FTE) 50.9% 53.5%
Dividends Paid Per Common Share$1.17 $1.17 0.0%
Common Dividend Payout Ratio 67% 68%
2. Net Interest Income.
(dollars in thousands)
%
Q3'17Q3'16ChangeQ2'17
Interest and Fee Income (FTE)$36,153 $36,699 -1.5%$36,240
Interest Expense 473 523 -9.5% 476
Net Interest and Fee Income (FTE)$35,680 $36,176 -1.4%$35,764
Average Earning Assets$4,587,848 $4,489,317 2.2%$4,598,296
Average Interest-
Bearing Liabilities 2,687,620 2,616,357 2.7% 2,692,447
Yield on Earning Assets (FTE) (a) 3.14% 3.26% 3.16%
Cost of Funds (a) 0.04% 0.05% 0.04%
Net Interest Margin (FTE) (a) 3.10% 3.21% 3.12%
Interest Expense/
Interest-Bearing Liabilities (a) 0.07% 0.08% 0.07%
Net Interest Spread (FTE) (a) 3.07% 3.18% 3.09%
%
9/30'17YTD9/30'16YTDChange
Interest and Fee Income (FTE)$108,903 $110,734 -1.7%
Interest Expense 1,429 1,616 -11.6%
Net Interest and Fee Income (FTE)$107,474 $109,118 -1.5%
Average Earning Assets$4,601,931 $4,448,261 3.5%
Average Interest-
Bearing Liabilities 2,694,785 2,605,584 3.4%
Yield on Earning Assets (FTE) (a) 3.16% 3.32%
Cost of Funds (a) 0.04% 0.05%
Net Interest Margin (FTE) (a) 3.12% 3.27%
Interest Expense/
Interest-Bearing Liabilities (a) 0.07% 0.08%
Net Interest Spread (FTE) (a) 3.09% 3.24%
3. Loans & Other Earning Assets.
(average volume, dollars in thousands)
%
Q3'17Q3'16ChangeQ2'17
Total Assets$5,441,612 $5,253,502 3.6%$5,385,085
Total Earning Assets 4,587,848 4,489,317 2.2% 4,598,296
Total Loans 1,287,740 1,386,186 -7.1% 1,333,135
Commercial Loans 324,727 343,727 -5.5% 349,979
Commercial RE Loans 566,794 572,044 -0.9% 566,570
Consumer Loans 396,219 470,415 -15.8% 416,586
Total Investment Securities 3,300,108 3,103,131 6.3% 3,265,161
Available For Sale (Market) 2,066,568 1,660,680 24.4% 1,982,997
Held To Maturity 1,233,540 1,442,451 -14.5% 1,282,164
Unrealized Gain 4,039 29,100 n/m 3,438
Loans/Deposits 27.3% 30.2% 28.6%
%
9/30'17YTD9/30'16YTDChange
Total Assets$5,407,661 $5,204,418 3.9%
Total Earning Assets 4,601,931 4,448,261 3.5%
Total Loans 1,325,128 1,447,061 -8.4%
Commercial Loans 343,091 356,781 -3.8%
Commercial RE Loans 563,980 604,741 -6.7%
Consumer Loans 418,057 485,539 -13.9%
Total Investment Securities 3,276,803 3,001,200 9.2%
Available For Sale (Market) 1,997,324 1,594,253 25.3%
Held To Maturity 1,279,479 1,406,947 -9.1%
Unrealized Gain 4,039 29,100 n/m
Loans/Deposits 28.2% 31.8%
4. Deposits, Other Interest-Bearing Liabilities & Equity.
(average volume, dollars in thousands)
%
Q3'17Q3'16ChangeQ2'17
Total Deposits$4,714,579 $4,588,762 2.7%$4,669,424
Noninterest Demand 2,103,042 2,041,045 3.0% 2,048,155
Interest Bearing Transaction 891,532 850,215 4.9% 880,470
Savings 1,475,969 1,427,247 3.4% 1,491,283
Time greater than $100K 108,673 118,113 -8.0% 110,762
Time less than $100K 135,363 152,142 -11.0% 138,754
Total Short-Term Borrowings 76,083 68,640 10.8% 71,178
Shareholders' Equity 599,473 545,771 9.8% 593,028
Demand Deposits/
Total Deposits 44.6% 44.5% 43.9%
Transaction & Savings
Deposits / Total Deposits 94.8% 94.1% 94.7%
%
9/30'17YTD9/30'16YTDChange
Total Deposits$4,692,330 $4,552,819 3.1%
Noninterest Demand 2,069,521 2,010,058 3.0%
Interest Bearing Transaction 884,171 859,437 2.9%
Savings 1,489,643 1,406,338 5.9%
Time greater than $100K 110,512 120,418 -8.2%
Time less than $100K 138,483 156,568 -11.6%
Total Short-Term Borrowings 71,976 62,823 14.6%
Shareholders' Equity 591,691 537,010 10.2%
Demand Deposits/
Total Deposits 44.1% 44.1%
Transaction & Savings
Deposits / Total Deposits 94.7% 93.9%
5. Interest Yields Earned & Rates Paid.
(dollars in thousands)
Q3'17
AverageIncome/Yield (a) /
VolumeExpenseRate
Interest & Fee Income Earned
Total Earning Assets (FTE)$4,587,848 $36,153 3.14%
Total Loans (FTE) 1,287,740 15,349 4.73%
Commercial Loans (FTE) 324,727 3,959 4.84%
Commercial RE Loans 566,794 7,806 5.46%
Consumer Loans 396,219 3,584 3.59%
Total Investments (FTE) 3,300,108 20,804 2.52%
Interest Expense Paid
Total Earning Assets 4,587,848 473 0.04%
Total Interest-Bearing Liabilities 2,687,620 473 0.07%
Total Interest-Bearing Deposits 2,611,537 461 0.07%
Interest-Bearing Transaction 891,532 60 0.03%
Savings 1,475,969 220 0.06%
Time less than $100K 135,363 78 0.23%
Time greater than $100K 108,673 103 0.38%
Total Short-Term Borrowings 76,083 12 0.06%
Net Interest Income and
Margin (FTE) $35,680 3.10%
Q3'16
AverageIncome/Yield (a) /
VolumeExpenseRate
Interest & Fee Income Earned
Total Earning Assets (FTE)$4,489,317 $36,699 3.26%
Total Loans (FTE) 1,386,186 17,260 4.95%
Commercial Loans (FTE) 343,727 4,302 4.98%
Commercial RE Loans 572,044 8,832 6.14%
Consumer Loans 470,415 4,126 3.49%
Total Investments (FTE) 3,103,131 19,439 2.51%
Interest Expense Paid
Total Earning Assets 4,489,317 523 0.05%
Total Interest-Bearing Liabilities 2,616,357 523 0.08%
Total Interest-Bearing Deposits 2,547,717 512 0.08%
Interest-Bearing Transaction 850,215 64 0.03%
Savings 1,427,247 229 0.06%
Time less than $100K 152,142 95 0.25%
Time greater than $100K 118,113 124 0.42%
Total Short-Term Borrowings 68,640 11 0.06%
Net Interest Income and
Margin (FTE) $36,176 3.21%
6. Noninterest Income.
(dollars in thousands except per-share amounts)
%
Q3'17Q3'16ChangeQ2'17
Service Charges on Deposits$4,989 $5,303 -5.9%$4,945
Merchant Processing Services 2,153 1,532 40.6% 2,052
Debit Card Fees 1,784 1,587 12.4% 1,586
Other Service Fees 652 671 -2.9% 662
ATM Processing Fees 684 600 14.0% 654
Trust Fees 718 686 4.7% 716
Financial Services Commissions 148 118 25.4% 142
Other Income 1,420 1,101 29.1% 1,366
Total Noninterest Income$12,548 $11,598 8.2%$12,123
Total Revenue (FTE)$48,228 $47,774 1.0%$47,887
Noninterest Income/Revenue (FTE) 26.0% 24.3% 25.3%
Service Charges/Avg. Deposits (a) 0.42% 0.46% 0.42%
Total Revenues (FTE) Per Avg.
Common Share (a)$7.27 $7.41 -1.9%$7.30
%
9/30'17YTD9/30'16YTDChange
Service Charges on Deposits$14,857 $15,790 -5.9%
Merchant Processing Services 6,080 4,699 29.4%
Debit Card Fees 4,851 4,724 2.7%
Other Service Fees 1,964 1,951 0.7%
ATM Processing Fees 1,914 1,860 2.9%
Trust Fees 2,136 2,004 6.6%
Financial Services Commissions 484 411 18.0%
Other Income 4,042 3,590 12.6%
Total Noninterest Income$36,328 $35,029 3.7%
Total Revenue (FTE)$143,802 $144,147 -0.2%
Noninterest Income/Revenue (FTE) 25.3% 24.3%
Service Charges/Avg. Deposits (a) 0.42% 0.46%
Total Revenues (FTE) Per Avg.
Common Share (a)$7.32 $7.53 -2.8%
7. Noninterest Expense.
(dollars in thousands)
%
Q3'17Q3'16ChangeQ2'17
Salaries & Benefits$12,816 $13,063 -1.9%$12,981
Occupancy 3,665 3,749 -2.2% 3,509
Outsourced Data Processing 2,383 2,114 12.7% 2,188
Amortization of
Identifiable Intangibles 760 867 -12.4% 762
Professional Fees 512 1,693 -69.8% 410
Furniture & Equipment 1,242 1,211 2.5% 1,267
Other Real Estate Owned 221 (206)n/m (126)
Courier Service 451 451 0.0% 438
Other Operating 2,064 3,146 -34.4% 2,967
Total Noninterest Expense$24,114 $26,088 -7.6%$24,396
Noninterest Expense/
Avg. Earning Assets (a) 2.09% 2.31% 2.13%
Noninterest Expense/Revenues (FTE) 50.0% 54.6% 50.9%
%
9/30'17YTD9/30'16YTDChange
Salaries & Benefits$38,867 $39,067 -0.5%
Occupancy 10,807 10,546 2.5%
Outsourced Data Processing 6,710 6,375 5.3%
Amortization of
Identifiable Intangibles 2,322 2,642 -12.1%
Professional Fees 1,533 3,183 -51.8%
Furniture & Equipment 3,764 3,611 4.2%
Other Real Estate Owned 54 (487)n/m
Courier Service 1,310 1,458 -10.2%
Other Operating 7,758 10,780 -28.0%
Total Noninterest Expense$73,125 $77,175 -5.2%
Noninterest Expense/
Avg. Earning Assets (a) 2.12% 2.32%
Noninterest Expense/Revenues (FTE) 50.9% 53.5%
8. Allowance for Loan Losses.
(dollars in thousands)
%
Q3'17Q3'16ChangeQ2'17
Average Total Loans$1,287,740 $1,386,186 -7.1%$1,333,135
Allowance for Loan Loss (ALL)
Beginning of Period $24,103 $28,910 -16.6%$24,919
Reversal of Provision for Loan Losses - (3,200)n/m (1,900)
Net ALL (Losses) Recoveries (475) 649 n/m 1,084
ALL End of Period$23,628 $26,359 -10.4%$24,103
ALL Recoveries/Gross ALL Losses 53% 134% 158%
Net ALL Losses (Recoveries) /
Avg. Total Loans (a) 0.15% -0.19% -0.33%
%
9/30'17YTD9/30'16YTDChange
Average Total Loans$1,325,128 $1,447,061 -8.4%
Allowance for Loan Loss (ALL)
Beginning of Period $25,954 $29,771 -12.8%
Reversal of Provision for Loan Losses (1,900) (3,200)n/m
Net ALL Losses (426) (212)n/m
ALL End of Period$23,628 $26,359 -10.4%
ALL Recoveries/Gross ALL Losses 91% 96%
Net ALL Losses/
Avg. Total Loans (a) 0.04% 0.02%
9. Credit Quality.
(dollars in thousands)
%
9/30/179/30/16Change6/30/17
Nonperforming Loans (1):
Nonperforming Nonaccrual$1,498 $1,861 -19.5%$2,215
Performing Nonaccrual 4,285 4,432 -3.3% 4,480
Total Nonaccrual Loans 5,783 6,293 -8.1% 6,695
90+ Days Past Due Accruing Loans 434 487 -10.9% 186
Total 6,217 6,780 -8.3% 6,881
Repossessed Loan Collateral (1) 1,426 3,032 -53.0% 1,645
Total Nonperforming Assets (1)$7,643 $9,812 -22.1%$8,526
Total Loans Outstanding $1,284,782 $1,364,329 -5.8%$1,318,341
Total Assets $5,445,808 $5,306,778 2.6%$5,393,350
Loans:
Allowance for Loan Losses$23,628 $26,359 -10.4%$24,103
Allowance/Loans 1.84% 1.93% 1.83%
Nonperforming Loans/Total Loans 0.48% 0.50% 0.52%
10. Capital.
(in thousands, except per-share amounts)
%
9/30/179/30/16Change6/30/17
Shareholders' Equity$603,957 $562,996 7.3%$595,594
Total Assets 5,445,808 5,306,778 2.6% 5,393,350
Shareholders' Equity/
Total Assets 11.09% 10.61% 11.04%
Shareholders' Equity/
Total Loans 47.01% 41.27% 45.18%
Tangible Common Equity Ratio 8.98% 8.37% 8.90%
Common Shares Outstanding 26,319 25,665 2.5% 26,304
Common Equity Per Share$22.95 $21.94 4.6%$22.64
Market Value Per Common Share$59.54 $50.88 17.0%$56.04
Share Repurchase Programs
(shares in thousands)
%
Q3'17Q3'16ChangeQ2'17
Total Shares Repurchased - - n/m 6
Average Repurchase Price$- $- n/m $56.51
Net Shares Issued (15) (33)n/m (21)
%
9/30'17YTD9/30'16YTDChange
Total Shares Repurchased 6 137 n/m
Average Repurchase Price$56.51 $41.94 n/m
Net Shares Issued (412) (137)n/m
11. Period-End Balance Sheets.
(unaudited, dollars in thousands)
%
9/30/179/30/16Change6/30/17
Assets:
Cash and Due from Banks$561,757 $471,367 19.2%$529,362
Investment Securities:
Available For Sale 2,090,477 1,762,408 18.6% 1,976,156
Held to Maturity 1,204,240 1,411,019 -14.7% 1,261,321
Loans 1,284,782 1,364,329 -5.8% 1,318,341
Allowance For Loan Losses (23,628) (26,359)-10.4% (24,103)
Total Loans, net 1,261,154 1,337,970 -5.7% 1,294,238
Other Real Estate Owned 1,426 3,032 -53.0% 1,645
Premises and Equipment, net 35,507 37,059 -4.2% 35,564
Identifiable Intangibles, net 4,605 7,789 -40.9% 5,365
Goodwill 121,673 121,673 0.0% 121,673
Other Assets 164,969 154,461 6.8% 168,026
Total Assets$5,445,808 $5,306,778 2.6%$5,393,350
Liabilities and Shareholders' Equity:
Deposits:
Noninterest Bearing$2,128,342 $2,064,988 3.1%$2,079,608
Interest-Bearing Transaction 873,145 851,885 2.5% 885,516
Savings 1,491,168 1,462,860 1.9% 1,470,978
Time 241,925 265,137 -8.8% 246,468
Total Deposits 4,734,580 4,644,870 1.9% 4,682,570
Short-Term Borrowed Funds 66,337 56,358 17.7% 75,769
Other Liabilities 40,934 42,554 -3.8% 39,417
Total Liabilities 4,841,851 4,743,782 2.1% 4,797,756
Shareholders' Equity:
Common Equity:
Paid-In Capital 427,188 393,134 8.7% 426,012
Accumulated Other
Comprehensive (Loss) Income (3,433) 9,001 n/m (5,864)
Retained Earnings 180,202 160,861 12.0% 175,446
Total Shareholders' Equity 603,957 562,996 7.3% 595,594
Total Liabilities and
Shareholders' Equity$5,445,808 $5,306,778 2.6%$5,393,350
12. Income Statements.
(unaudited, in thousands except per-share amounts)
%
Q3'17Q3'16ChangeQ2'17
Interest & Fee Income:
Loans$15,082 $16,968 -11.1%$15,468
Investment Securities:
Available for Sale 11,347 8,796 29.0% 10,709
Held to Maturity 6,716 7,704 -12.8% 6,986
Total Interest & Fee Income 33,145 33,468 -1.0% 33,163
Interest Expense:
Transaction Deposits 60 64 -7.5% 57
Savings Deposits 220 229 -3.8% 222
Time Deposits 181 219 -17.1% 186
Short-Term Borrowed Funds 12 11 12.0% 11
Total Interest Expense 473 523 -9.5% 476
Net Interest Income 32,672 32,945 -0.8% 32,687
Reversal of Provision for Loan Losses - (3,200)n/m (1,900)
Noninterest Income:
Service Charges 4,989 5,303 -5.9% 4,945
Merchant Processing Services 2,153 1,532 40.6% 2,052
Debit Card Fees 1,784 1,587 12.4% 1,586
Other Service Fees 652 671 -2.9% 662
ATM Processing Fees 684 600 14.0% 654
Trust Fees 718 686 4.7% 716
Financial Services Commissions 148 118 25.4% 142
Other 1,420 1,101 29.1% 1,366
Total Noninterest Income 12,548 11,598 8.2% 12,123
Noninterest Expense:
Salaries and Benefits 12,816 13,063 -1.9% 12,981
Occupancy 3,665 3,749 -2.2% 3,509
Outsourced Data Processing 2,383 2,114 12.7% 2,188
Amortization of Identifiable Intangibles 760 867 -12.4% 762
Professional Fees 512 1,693 -69.8% 410
Furniture & Equipment 1,242 1,211 2.5% 1,267
Other Real Estate Owned 221 (206)n/m (126)
Courier Service 451 451 0.0% 438
Other 2,064 3,146 -34.4% 2,967
Total Noninterest Expense 24,114 26,088 -7.6% 24,396
Income Before Income Taxes 21,106 21,655 -2.5% 22,314
Income Tax Provision 6,089 6,027 1.0% 6,515
Net Income$15,017 $15,628 -3.9%$15,799
Average Common Shares Outstanding 26,309 25,641 2.6% 26,299
Diluted Common Shares Outstanding 26,404 25,687 2.8% 26,402
Per Common Share Data:
Basic Earnings$0.57 $0.61 -6.6%$0.60
Diluted Earnings 0.57 0.61 -6.6% 0.60
Dividends Paid 0.39 0.39 0.0% 0.39
%
9/30'17YTD9/30'16YTDChange
Interest & Fee Income:
Loans$46,330 $52,904 -12.4%
Investment Securities:
Available for Sale 32,305 24,855 30.0%
Held to Maturity 20,997 23,083 -9.0%
Total Interest & Fee Income 99,632 100,842 -1.2%
Interest Expense:
Transaction Deposits 174 201 -13.7%
Savings Deposits 665 677 -1.6%
Time Deposits 556 708 -21.5%
Short-Term Borrowed Funds 34 30 12.1%
Total Interest Expense 1,429 1,616 -11.6%
Net Interest Income 98,203 99,226 -1.0%
Reversal of Provision for Loan Losses (1,900) (3,200)n/m
Noninterest Income:
Service Charges 14,857 15,790 -5.9%
Merchant Processing Services 6,080 4,699 29.4%
Debit Card Fees 4,851 4,724 2.7%
Other Service Fees 1,964 1,951 0.7%
ATM Processing Fees 1,914 1,860 2.9%
Trust Fees 2,136 2,004 6.6%
Financial Services Commissions 484 411 18.0%
Other 4,042 3,590 12.6%
Total Noninterest Income 36,328 35,029 3.7%
Noninterest Expense:
Salaries and Benefits 38,867 39,067 -0.5%
Occupancy 10,807 10,546 2.5%
Outsourced Data Processing 6,710 6,375 5.3%
Amortization of Identifiable Intangibles 2,322 2,642 -12.1%
Professional Fees 1,533 3,183 -51.8%
Furniture & Equipment 3,764 3,611 4.2%
Other Real Estate Owned 54 (487)n/m
Courier Service 1,310 1,458 -10.2%
Other 7,758 10,780 -28.0%
Total Noninterest Expense 73,125 77,175 -5.2%
Income Before Income Taxes 63,306 60,280 5.0%
Income Tax Provision 17,441 15,880 9.8%
Net Income$45,865 $44,400 3.3%
Average Common Shares Outstanding 26,260 25,558 2.7%
Diluted Common Shares Outstanding 26,379 25,595 3.1%
Per Common Share Data:
Basic Earnings$1.75 $1.74 0.6%
Diluted Earnings 1.74 1.73 0.6%
Dividends Paid 1.17 1.17 0.0%
The Company has determined that it will be obligated to provide refunds of revenue
recognized in prior years to customers.
The Company is not yet able to quantify the
amount of refunds.
The Company will provide additional information when a
determination of the probable amount of these obligations is made.
Footnotes and Abbreviations:

(FTE) Fully Taxable Equivalent. The Company presents its net interest margin and net
interest income on a FTE basis using the current statutory federal tax rate.
Management believes the FTE basis is valuable to the reader because the Company’s
loan and investment securities portfolios contain a relatively large portion of
municipal loans and securities that are federally tax exempt.
The Company’s tax
exempt loans and securities composition may not be similar to that of other banks,
therefore in order to reflect the impact of the federally tax exempt loans and
securities on the net interest margin and net interest income for comparability with
other banks, the Company presents its net interest margin and net interest income on
a FTE basis.

(a) Annualized

(1) All originated and purchased non performing loans and repossessed loan collateral
have been combined as of Q1 '17.
Prior period presentation has been updated,
accordingly.

Source:Westamerica Bancorporation