Attached files
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| 8-K - FORM 8-K FILING DOCUMENT - WESTAMERICA BANCORPORATION | document.htm |
EXHIBIT 99.1
Westamerica Bancorporation Reports Fourth Quarter 2011 Results
SAN RAFAEL, Calif., Jan. 19, 2012 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq:WABC), parent company of Westamerica Bank, today reported fourth quarter 2011 net income of $21.8 million, or $0.77 diluted earnings per share ("EPS"), compared to $22.4 million, or $0.79 EPS in the prior quarter, and $23.7 million, or $0.81 EPS in the fourth quarter 2010. Fourth quarter 2011 net income represents an annualized return on average common equity of 15.9 percent.
"The banking industry is experiencing revenue pressure due to the low-interest rate environment. Westamerica's annualized net interest margin was 5.24 percent in the fourth quarter 2011, down from 5.39 percent in the fourth quarter 2010. Interest rates on newly originated loans and purchased investment securities are lower than our aggregate portfolio yields. To offset the effect of declining asset yields, we continue focusing on building checking and savings deposits to reduce our interest cost which was 0.18 percent in the fourth quarter 2011, down from 0.29 percent in the fourth quarter 2010. To offset these cyclical revenue pressures, we have worked diligently to reduce operating costs, which were $850 thousand lower in the fourth quarter 2011 compared to the fourth quarter 2010. Our credit quality continues to improve with nonperforming assets declining to $101 million at December 31, 2011 from $144 million at December 31, 2010," said Chairman, President and CEO David Payne. "Our shareholder dividend was increased to $0.37 per share in the fourth quarter 2011, and we repurchased 360 thousand shares during the quarter," Payne added.
Net interest income on a fully taxable equivalent basis (FTE) was $53.4 million for the fourth quarter 2011, compared to $54.7 million (FTE) for the prior quarter and $56.4 million (FTE) for the fourth quarter 2010. The fourth quarter 2011 annualized net interest margin was 5.24 percent (FTE), compared to 5.32 percent (FTE) for the prior quarter and 5.39 percent (FTE) for the fourth quarter 2010.
The provision for loan losses was $2.8 million for the fourth quarter 2011, unchanged from the prior quarter and fourth quarter 2010.
The allowance for loan losses was $32.6 million at December 31, 2011 and $35.6 million at December 31, 2010. Nonperforming originated loans were $17.6 million and $21.6 million at December 31, 2011 and December 31, 2010, respectively. Nonperforming purchased loans indemnified by the Federal Deposit Insurance Corporation (FDIC) totaled $14.6 million at December 31, 2011 (net of a $4.7 million fair value discount) compared to $47.5 million at December 31, 2010. Nonperforming purchased loans without FDIC indemnification totaled $23.2 million at December 31, 2011 (net of a $6.2 million fair value discount) compared to $39.2 million at December 31, 2010.
Noninterest income for the fourth quarter 2011 was $14.9 million, compared to $15.2 million for the prior quarter and $15.1 million for the fourth quarter 2010.
Noninterest expense for the fourth quarter of 2011 totaled $30.7 million, reduced from $31.4 million for the prior quarter and $31.5 million for the fourth quarter 2010. FDIC insurance assessments and costs associated with managing nonperforming assets are elevated in the current operating environment.
At December 31, 2011, Westamerica Bancorporation's total regulatory capital ratio was 15.7 percent and Westamerica Bank's total regulatory capital ratio was 15.2 percent; both regulatory measurements exceed the "well-capitalized" level of ten percent.
Westamerica operates commercial banking offices throughout Northern and Central California. At December 31, 2011, Westamerica's total assets were $5.0 billion and total loans were $2.5 billion.
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, 2010 filed on Form 10-K and quarterly report for the quarter ended September 30, 2011 filed on Form 10-Q, describe some of these factors, including certain credit, market, operational, liquidity and interest rate 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 2010, 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 19, 2012 | ||||
| WESTAMERICA BANCORPORATION | ||||
| FINANCIAL HIGHLIGHTS | ||||
| December 31, 2011 | ||||
| 1. Net Income Summary. | ||||
| (in thousands except per-share amounts) | ||||
| % | ||||
| Q4'11 | Q4'10 | Change | Q3'11 | |
| Net Interest Income (FTE) | $53,362 | $56,412 | -5.4% | $54,675 |
| Provision for Loan Losses | 2,800 | 2,800 | 0.0% | 2,800 |
| Total Noninterest Income | 14,857 | 15,143 | -1.9% | 15,205 |
| Noninterest Expense: | ||||
| Settlements | -- | 20 | n/m | -- |
| Other | 30,663 | 31,493 | -2.6% | 31,383 |
| Total Noninterest Expense | 30,663 | 31,513 | -2.7% | 31,383 |
| Income Before Taxes (FTE) | 34,756 | 37,242 | -6.7% | 35,697 |
| Income Tax Provision (FTE) | 12,951 | 13,511 | -4.2% | 13,265 |
| Net Income | $21,805 | $23,731 | -8.1% | $22,432 |
| Average Common Shares Outstanding | 28,296 | 29,103 | -2.8% | 28,433 |
| Diluted Average Common Shares | 28,334 | 29,341 | -3.4% | 28,498 |
| Operating Ratios: | ||||
| Basic Earnings Per Common Share | $0.77 | $0.82 | -6.1% | $0.79 |
| Diluted Earnings Per Common Share | 0.77 | 0.81 | -4.9% | 0.79 |
| Return On Assets (a) | 1.73% | 1.87% | 1.81% | |
| Return On Common Equity (a) | 15.9% | 17.5% | 16.4% | |
| Net Interest Margin (FTE) (a) | 5.24% | 5.39% | 5.32% | |
| Efficiency Ratio (FTE) | 44.9% | 44.0% | 44.9% | |
| Dividends Paid Per Common Share | $0.37 | $0.36 | 2.8% | $0.36 |
| Common Dividend Payout Ratio | 48% | 44% | 46% | |
| % | ||||
| 12/31'11YTD | 12/31'10YTD | Change | ||
| Net Interest Income (FTE) | $218,867 | $226,683 | -3.4% | |
| Provision for Loan Losses | 11,200 | 11,200 | 0.0% | |
| Noninterest Income | 60,097 | 61,454 | -2.2% | |
| Noninterest Expense: | ||||
| Settlements | 2,100 | 43 | n/m | |
| Other | 125,578 | 127,104 | -1.2% | |
| Total Noninterest Expense | 127,678 | 127,147 | 0.4% | |
| Income Before Taxes (FTE) | 140,086 | 149,790 | -6.5% | |
| Income Tax Provision (FTE) | 52,198 | 55,213 | -5.5% | |
| Net Income | $87,888 | $94,577 | -7.1% | |
| Average Common Shares Outstanding | 28,628 | 29,166 | -1.8% | |
| Diluted Average Common Shares | 28,742 | 29,471 | -2.5% | |
| Operating Ratios: | ||||
| Basic Earnings Per Common Share | $3.07 | $3.24 | -5.2% | |
| Diluted Earnings Per Common Share | 3.06 | 3.21 | -4.7% | |
| Return On Assets | 1.78% | 1.95% | ||
| Return On Common Equity | 16.1% | 18.1% | ||
| Net Interest Margin (FTE) | 5.32% | 5.54% | ||
| Efficiency Ratio (FTE) | 45.8% | 44.1% | ||
| Dividends Paid Per Common Share | $1.45 | $1.44 | 0.7% | |
| Common Dividend Payout Ratio | 47% | 45% | ||
| 2. Net Interest Income. | ||||
| (dollars in thousands) | ||||
| % | ||||
| Q4'11 | Q4'10 | Change | Q3'11 | |
| Interest and Fee Income (FTE) | $55,217 | $59,477 | -7.2% | $56,746 |
| Interest Expense | 1,855 | 3,065 | -39.5% | 2,071 |
| Net Interest Income (FTE) | $53,362 | $56,412 | -5.4% | $54,675 |
| Average Earning Assets | $4,052,476 | $4,164,013 | -2.7% | $4,093,020 |
| Average Interest-- | ||||
| Bearing Liabilities | 2,846,417 | 2,964,999 | -4.0% | 2,822,805 |
| Yield on Earning Assets (FTE) (a) | 5.42% | 5.68% | 5.52% | |
| Cost of Funds (a) | 0.18% | 0.29% | 0.20% | |
| Net Interest Margin (FTE) (a) | 5.24% | 5.39% | 5.32% | |
| Interest Expense/ | ||||
| Interest-Bearing Liabilities (a) | 0.26% | 0.41% | 0.29% | |
| Net Interest Spread (FTE) (a) | 5.16% | 5.27% | 5.23% | |
| % | ||||
| 12/31'11YTD | 12/31'10YTD | Change | ||
| Interest and Fee Income (FTE) | $227,249 | $239,523 | -5.1% | |
| Interest Expense | 8,382 | 12,840 | -34.7% | |
| Net Interest Income (FTE) | $218,867 | $226,683 | -3.4% | |
| Average Earning Assets | $4,113,375 | $4,094,511 | 0.5% | |
| Average Interest-- | ||||
| Bearing Liabilities | 2,848,441 | 2,849,262 | 0.0% | |
| Yield on Earning Assets (FTE) | 5.52% | 5.85% | ||
| Cost of Funds | 0.20% | 0.31% | ||
| Net Interest Margin (FTE) | 5.32% | 5.54% | ||
| Interest Expense/ | ||||
| Interest-Bearing Liabilities | 0.29% | 0.45% | ||
| Net Interest Spread (FTE) | 5.23% | 5.40% | ||
| 3. Loans & Other Earning Assets. | ||||
| (average volume, dollars in thousands) | ||||
| % | ||||
| Q4'11 | Q4'10 | Change | Q3'11 | |
| Total Assets | $5,013,227 | $5,032,157 | -0.4% | $4,920,482 |
| Total Earning Assets | 4,052,476 | 4,164,013 | -2.7% | 4,093,020 |
| Total Loans | 2,587,303 | 2,958,095 | -12.5% | 2,691,085 |
| Commercial Loans | 575,607 | 744,830 | -22.7% | 610,863 |
| Commercial RE Loans | 1,139,249 | 1,283,836 | -11.3% | 1,185,692 |
| Consumer Loans | 872,447 | 929,429 | -6.1% | 894,530 |
| Total Investment Securities | 1,465,173 | 1,205,918 | 21.5% | 1,401,935 |
| Available For Sale (Market) | 667,514 | 601,764 | 10.9% | 705,686 |
| Held To Maturity | 797,659 | 604,154 | 32.0% | 696,249 |
| Unrealized Gain | 24,690 | 13,983 | n/m | 22,424 |
| Loans/Deposits | 60.9% | 71.1% | 64.8% | |
| % | ||||
| 12/31'11YTD | 12/31'10YTD | Change | ||
| Total Assets | $4,950,754 | $4,853,480 | 2.0% | |
| Total Earning Assets | 4,113,375 | 4,094,511 | 0.5% | |
| Total Loans | 2,736,545 | 2,954,033 | -7.4% | |
| Commercial Loans | 643,254 | 771,834 | -16.7% | |
| Commercial RE Loans | 1,199,390 | 1,245,369 | -3.7% | |
| Consumer Loans | 893,901 | 936,830 | -4.6% | |
| Total Investment Securities | 1,376,830 | 1,140,478 | 20.7% | |
| Available For Sale (Market) | 704,394 | 483,214 | 45.8% | |
| Held To Maturity | 672,436 | 657,264 | 2.3% | |
| Unrealized Gain | 24,690 | 13,983 | n/m | |
| Loans/Deposits | 65.6% | 73.9% | ||
| 4. Deposits & Other Interest-Bearing Liabilities. | ||||
| (average volume, dollars in thousands) | ||||
| % | ||||
| Q4'11 | Q4'10 | Change | Q3'11 | |
| Total Deposits | $4,248,191 | $4,159,497 | 2.1% | $4,155,812 |
| Noninterest Demand | 1,559,801 | 1,468,098 | 6.2% | 1,494,773 |
| Interest Bearing Transaction | 727,617 | 721,521 | 0.8% | 707,328 |
| Savings | 1,145,110 | 1,063,554 | 7.7% | 1,119,360 |
| Time greater than $100K | 521,742 | 556,635 | -6.3% | 530,583 |
| Time less than $100K | 293,921 | 349,689 | -15.9% | 303,768 |
| Total Short-Term Borrowings | 116,973 | 181,349 | -35.5% | 105,382 |
| Federal Home Loan Bank Advances | 26,054 | 65,868 | -60.4% | 35,309 |
| Debt Financing and Notes Payable | 15,000 | 26,383 | -43.1% | 21,075 |
| Shareholders' Equity | 545,654 | 537,204 | 1.6% | 541,369 |
| Demand Deposits/ | ||||
| Total Deposits | 36.7% | 35.3% | 36.0% | |
| Transaction & Savings | ||||
| Deposits / Total Deposits | 80.8% | 78.2% | 79.9% | |
| % | ||||
| 12/31'11YTD | 12/31'10YTD | Change | ||
| Total Deposits | $4,171,894 | $3,998,490 | 4.3% | |
| Noninterest Demand | 1,496,362 | 1,412,702 | 5.9% | |
| Interest Bearing Transaction | 713,754 | 682,278 | 4.6% | |
| Savings | 1,112,364 | 994,604 | 11.8% | |
| Time greater than $100K | 535,866 | 550,810 | -2.7% | |
| Time less than $100K | 313,548 | 358,096 | -12.4% | |
| Total Short-Term Borrowings | 109,102 | 202,663 | -46.2% | |
| Federal Home Loan Bank Advances | 41,741 | 34,378 | 21.4% | |
| Debt Financing and Notes Payable | 22,066 | 26,433 | -16.5% | |
| Shareholders' Equity | 544,458 | 522,183 | 4.3% | |
| Demand Deposits/ | ||||
| Total Deposits | 35.9% | 35.3% | ||
| Transaction & Savings | ||||
| Deposits / Total Deposits | 79.6% | 77.3% | ||
| 5. Interest Yields Earned & Rates Paid. | |||
| (dollars in thousands) | |||
| Q4'11 | |||
| Average | Income/ | Yield (a) / | |
| Volume | Expense | Rate | |
| Interest & Fee Income Earned | |||
| Total Earning Assets (FTE) | $4,052,476 | $55,217 | 5.42% |
| Total Loans (FTE) | 2,587,303 | 38,936 | 5.97% |
| Commercial Loans (FTE) | 575,607 | 9,932 | 6.85% |
| Commercial RE Loans | 1,139,249 | 18,676 | 6.50% |
| Consumer Loans | 872,447 | 10,328 | 4.70% |
| Total Investments (FTE) | 1,465,173 | 16,281 | 4.44% |
| Interest Expense Paid | |||
| Total Earning Assets | 4,052,476 | 1,855 | 0.18% |
| Total Interest-Bearing Liabilities | 2,846,417 | 1,855 | 0.26% |
| Total Interest-Bearing Deposits | 2,688,390 | 1,461 | 0.22% |
| Interest-Bearing Transaction | 727,617 | 144 | 0.08% |
| Savings | 1,145,110 | 356 | 0.12% |
| Time less than $100K | 293,921 | 496 | 0.67% |
| Time greater than $100K | 521,742 | 465 | 0.35% |
| Total Short-Term Borrowings | 116,973 | 71 | 0.24% |
| Federal Home Loan Bank Advances | 26,054 | 122 | 1.87% |
| Debt Financing and Notes Payable | 15,000 | 201 | 5.35% |
| Net Interest Income and | |||
| Margin (FTE) | $53,362 | 5.24% | |
| Q4'10 | |||
| Average | Income/ | Yield (a) / | |
| Volume | Expense | Rate | |
| Interest & Fee Income Earned | |||
| Total Earning Assets (FTE) | $4,164,013 | $59,477 | 5.68% |
| Total Loans (FTE) | 2,958,095 | 44,929 | 6.03% |
| Commercial Loans (FTE) | 744,830 | 12,021 | 6.40% |
| Commercial RE Loans | 1,283,836 | 20,526 | 6.34% |
| Consumer Loans | 929,429 | 12,382 | 5.29% |
| Total Investments (FTE) | 1,205,918 | 14,548 | 4.83% |
| Interest Expense Paid | |||
| Total Earning Assets | 4,164,013 | 3,065 | 0.29% |
| Total Interest-Bearing Liabilities | 2,964,999 | 3,065 | 0.41% |
| Total Interest-Bearing Deposits | 2,691,399 | 2,002 | 0.30% |
| Interest-Bearing Transaction | 721,521 | 233 | 0.13% |
| Savings | 1,063,554 | 585 | 0.22% |
| Time less than $100K | 349,689 | 345 | 0.39% |
| Time greater than $100K | 556,635 | 839 | 0.60% |
| Total Short-Term Borrowings | 181,349 | 454 | 0.98% |
| Federal Home Loan Bank Advances | 65,868 | 187 | 1.11% |
| Debt Financing and Notes Payable | 26,383 | 422 | 6.40% |
| Net Interest Income and | |||
| Margin (FTE) | $56,412 | 5.39% | |
| 6. Noninterest Income. | ||||
| (dollars in thousands except per-share amounts) | ||||
| % | ||||
| Q4'11 | Q4'10 | Change | Q3'11 | |
| Service Charges on Deposits | $6,994 | $7,984 | -12.4% | $7,430 |
| Merchant Processing Services | 2,515 | 2,427 | 3.6% | 2,358 |
| Debit Card Fees | 1,204 | 1,210 | -0.5% | 1,269 |
| ATM Processing Fees | 904 | 931 | -2.9% | 980 |
| Trust Fees | 480 | 447 | 7.3% | 432 |
| Financial Services Commissions | 165 | 164 | 0.9% | 111 |
| Other Income | 2,595 | 1,980 | 31.0% | 2,625 |
| Total Noninterest Income | $14,857 | $15,143 | -1.9% | $15,205 |
| Total Revenue (FTE) | $68,219 | $71,555 | -4.7% | $69,880 |
| Noninterest Income/Revenue (FTE) | 21.8% | 21.2% | 21.8% | |
| Service Charges/Avg. Deposits (a) | 0.65% | 0.76% | 0.71% | |
| Total Revenues (FTE) Per Avg. | ||||
| Common Share (a) | $9.57 | $9.75 | -1.9% | $9.75 |
| % | ||||
| 12/31'11YTD | 12/31'10YTD | Change | ||
| Service Charges on Deposits | $29,523 | $33,517 | -11.9% | |
| Merchant Processing Services | 9,436 | 9,057 | 4.2% | |
| Debit Card Fees | 4,956 | 4,888 | 1.4% | |
| ATM Processing Fees | 3,815 | 3,848 | -0.8% | |
| Trust Fees | 1,887 | 1,705 | 10.7% | |
| Financial Services Commissions | 423 | 747 | -43.4% | |
| Other Income | 10,057 | 7,692 | 30.7% | |
| Total Noninterest Income | $60,097 | $61,454 | -2.2% | |
| Total Revenue (FTE) | $278,964 | $288,137 | -3.2% | |
| Noninterest Income/Revenue (FTE) | 21.5% | 21.3% | ||
| Service Charges/Avg. Deposits | 0.71% | 0.84% | ||
| Total Revenues (FTE) Per Avg. | ||||
| Common Share | $9.74 | $9.88 | -1.4% | |
| 7. Noninterest Expense. | ||||
| (dollars in thousands) | ||||
| % | ||||
| Q4'11 | Q4'10 | Change | Q3'11 | |
| Salaries & Benefits | $14,113 | $14,899 | -5.3% | $14,401 |
| Occupancy | 4,124 | 4,073 | 1.3% | 4,010 |
| Outsourced Data Processing | 2,101 | 2,329 | -9.8% | 2,165 |
| Settlements | -- | 20 | n/m | -- |
| Amortization of | ||||
| Identifiable Intangibles | 1,470 | 1,622 | -9.3% | 1,477 |
| Professional Fees | 1,314 | 896 | 46.6% | 1,185 |
| Equipment | 922 | 1,091 | -15.5% | 943 |
| Other Real Estate Owned | 623 | 243 | n/m | 700 |
| Courier Service | 806 | 859 | -6.1% | 840 |
| Deposit Insurance Assessment | 740 | 1,320 | -43.9% | 740 |
| Loan Expense | 589 | 391 | 50.5% | 578 |
| Telephone | 420 | 448 | -6.4% | 422 |
| Postage | 383 | 289 | 32.7% | 353 |
| Operational Losses | 236 | 213 | 10.8% | 226 |
| Stationery & Supplies | 340 | 329 | 3.4% | 272 |
| Other Operating | 2,482 | 2,491 | -0.4% | 3,071 |
| Total Noninterest Expense | $30,663 | $31,513 | -2.7% | $31,383 |
| Noninterest Expense/ | ||||
| Avg. Earning Assets (a) | 3.00% | 3.00% | 3.04% | |
| Noninterest Expense/Revenues (FTE) | 44.9% | 44.0% | 44.9% | |
| % | ||||
| 12/31'11YTD | 12/31'10YTD | Change | ||
| Salaries & Benefits | $58,501 | $61,748 | -5.3% | |
| Occupancy | 16,209 | 15,633 | 3.7% | |
| Outsourced Data Processing | 8,844 | 8,957 | -1.3% | |
| Settlements | 2,100 | 43 | n/m | |
| Amortization of | ||||
| Identifiable Intangibles | 5,975 | 6,333 | -5.7% | |
| Professional Fees | 4,802 | 3,376 | 42.2% | |
| Equipment | 3,837 | 4,325 | -11.3% | |
| Other Real Estate Owned | 2,458 | 895 | 174.6% | |
| Courier Service | 3,342 | 3,495 | -4.4% | |
| Deposit Insurance Assessment | 3,440 | 5,168 | -33.4% | |
| Loan Expense | 2,104 | 1,639 | 28.4% | |
| Telephone | 1,705 | 1,590 | 7.2% | |
| Postage | 1,467 | 1,540 | -4.7% | |
| Operational Losses | 1,051 | 828 | 26.9% | |
| Stationery & Supplies | 1,259 | 1,285 | -2.0% | |
| Other Operating | 10,584 | 10,292 | 2.8% | |
| Total Noninterest Expense | $127,678 | $127,147 | 0.4% | |
| Noninterest Expense/ | ||||
| Avg. Earning Assets | 3.10% | 3.11% | ||
| Noninterest Expense/Revenues (FTE) | 45.8% | 44.1% | ||
| 8. Provision for Loan Losses. | ||||
| (dollars in thousands) | ||||
| % | ||||
| Q4'11 | Q4'10 | Change | Q3'11 | |
| Average Total Loans | $2,587,303 | $2,958,095 | -12.5% | $2,691,085 |
| Avg. Total Purchased | ||||
| Covered Loans (1) | 559,451 | 704,728 | -20.6% | 596,072 |
| Avg. Total Purchased | ||||
| Non-Covered Loans (2) | 132,576 | 207,450 | -36.1% | 151,634 |
| Avg. Total Originated Loans | 1,895,276 | 2,045,917 | -7.4% | 1,943,379 |
| Provision for Loan Losses | $2,800 | $2,800 | 0.0% | $2,800 |
| Gross Loan Losses | 6,143 | 6,342 | -3.1% | 3,652 |
| Net Loan Losses | 3,096 | 5,293 | -41.5% | 2,915 |
| Recoveries/Gross Losses | 50% | 17% | 20% | |
| Net Loan Losses/Avg. | ||||
| Originated Loans (a) | 0.65% | 1.03% | 0.60% | |
| Provision for Loan Losses/ | ||||
| Avg. Originated Loans (a) | 0.59% | 0.54% | 0.57% | |
| Provision for Loan Losses/ | ||||
| Net Loan Losses | 90.4% | 52.9% | 96.1% | |
| % | ||||
| 12/31'11YTD | 12/31'10YTD | Change | ||
| Average Total Loans | $2,736,545 | $2,954,033 | -7.4% | |
| Avg. Total Purchased | ||||
| Covered Loans (1) | 618,343 | 766,369 | -19.3% | |
| Avg. Total Purchased | ||||
| Non-Covered Loans (2) | 163,808 | 76,158 | n/m | |
| Avg. Total Originated Loans | 1,954,394 | 2,111,506 | -7.4% | |
| Provision for Loan Losses | $11,200 | $11,200 | 0.0% | |
| Gross Loan Losses | 20,259 | 20,268 | 0.0% | |
| Net Loan Losses | 14,239 | 16,607 | -14.3% | |
| Recoveries/Gross Losses | 30% | 18% | ||
| Net Loan Losses/Avg. | ||||
| Originated Loans | 0.73% | 0.79% | ||
| Provision for Loan Losses/ | ||||
| Avg. Originated Loans | 0.57% | 0.53% | ||
| Provision for Loan Losses/ | ||||
| Net Loan Losses | 78.7% | 67.4% | ||
| 9. Credit Quality. | ||||
| (dollars in thousands) | ||||
| % | ||||
| 12/31/11 | 12/31/10 | Change | 9/30/11 | |
| Nonperforming Originated Loans: | ||||
| Nonperforming Nonaccrual | $10,291 | $20,845 | -50.6% | $12,063 |
| Performing Nonaccrual | 5,256 | 23 | n/m | 5,235 |
| Total Nonaccrual Loans | 15,547 | 20,868 | -25.5% | 17,298 |
| 90+ Days Past Due Accruing Loans | 2,047 | 766 | 167.3% | 794 |
| Total | 17,594 | 21,634 | -18.7% | 18,092 |
| Repossessed Loan Collateral | 14,868 | 11,424 | 30.1% | 14,939 |
| Total Originated | ||||
| Nonperforming Assets | 32,462 | 33,058 | -1.8% | 33,031 |
| Nonperforming Purchased Covered Loans(1): | ||||
| Nonperforming Nonaccrual | 9,388 | 28,581 | -67.2% | 10,635 |
| Performing Nonaccrual | 4,924 | 18,564 | -73.5% | 5,386 |
| Total Nonaccrual Loans | 14,312 | 47,145 | -69.6% | 16,021 |
| 90+ Days Past Due Accruing Loans | 241 | 355 | -32.1% | 279 |
| Total | 14,553 | 47,500 | -69.4% | 16,300 |
| Repossessed Purchased Covered | ||||
| Loan Collateral (1) | 19,135 | 21,791 | -12.2% | 23,160 |
| Total Nonperforming Purchased | ||||
| Covered Assets (1) | 33,688 | 69,291 | -51.4% | 39,460 |
| Nonperforming Purchased Non-Covered Loans (2): | ||||
| Nonperforming Nonaccrual | 16,170 | 29,311 | -44.8% | 18,502 |
| Performing Nonaccrual | 7,037 | 9,852 | -28.6% | 7,039 |
| Total Nonaccrual Loans | 23,207 | 39,163 | -40.7% | 25,541 |
| 90+ Days Past Due Accruing Loans | 34 | 1 | n/m | -- |
| Total | 23,241 | 39,164 | -40.7% | 25,541 |
| Repossessed Purchased Non-Covered | ||||
| Loan Collateral (2) | 11,632 | 2,196 | n/m | 9,732 |
| Total Nonperforming Purchased | ||||
| Non-Covered Assets (2) | 34,873 | 41,360 | -15.7% | 35,273 |
| Total Nonperforming Assets | $101,023 | $143,709 | -29.7% | $107,764 |
| Total Originated Loans Outstanding | $1,862,607 | $2,029,541 | -8.2% | $1,920,286 |
| Total Purchased Covered | ||||
| Loans Outstanding (1) | 535,278 | 692,972 | -22.8% | 575,353 |
| Total Purchased Non-Covered | ||||
| Loans Outstanding (2) | 125,921 | 199,571 | -36.9% | 139,200 |
| Total Loans Outstanding | $2,523,806 | $2,922,084 | -13.6% | $2,634,839 |
| Total Assets | $5,042,161 | $4,931,524 | 2.2% | $4,966,499 |
| Originated Loans: | ||||
| Allowance for Loan Losses | $32,597 | $35,636 | -8.5% | $32,893 |
| Allowance/Originated Loans | 1.75% | 1.76% | 1.71% | |
| Nonperforming Originated Loans/ | ||||
| Total Originated Loans | 0.94% | 1.07% | 0.94% | |
| Allowance/Originated | ||||
| Nonperforming Loans | 185% | 165% | 182% | |
| Purchased Covered Loans (1): | ||||
| Fair Value Discount on Purchased | ||||
| Covered Loans | $46,282 | $61,784 | $48,965 | |
| Discount/Purchased Covered | ||||
| Loans, gross | 7.96% | 8.19% | 7.84% | |
| Nonperforming Purchased Covered Loans/ | ||||
| Total Purchased Covered Loans | 2.72% | 6.85% | 2.83% | |
| Purchased Non-Covered Loans (2): | ||||
| Fair Value Discount on Purchased | ||||
| Non-Covered Loans | $10,212 | $32,381 | $16,546 | |
| Discount/Purchased Non-Covered | 7.50% | 13.96% | 10.62% | |
| Loans, gross | ||||
| Nonperforming Purchased Non-Covered Loans/ | ||||
| Total Purchased Non-Covered Loans | 18.46% | 19.62% | 18.35% | |
| 10. Capital. | ||||
| (in thousands, except per-share amounts) | ||||
| % | ||||
| 12/31/11 | 12/31/10 | Change | 9/30/11 | |
| Shareholders' Equity | $558,641 | $545,287 | 2.4% | $553,988 |
| Tier I Regulatory Capital | 405,506 | 412,463 | -1.7% | 403,287 |
| Total Regulatory Capital | 441,865 | 449,876 | -1.8% | 440,605 |
| Total Assets | 5,042,161 | 4,931,524 | 2.2% | 4,966,499 |
| Risk-Adjusted Assets | 2,805,508 | 2,901,802 | -3.3% | 2,858,321 |
| Shareholders' Equity/ | ||||
| Total Assets | 11.08% | 11.06% | 11.15% | |
| Shareholders' Equity/ | ||||
| Total Loans | 22.13% | 18.66% | 21.03% | |
| Tier I Capital/Total Assets | 8.04% | 8.36% | 8.12% | |
| Tier I Capital/ | ||||
| Risk-Adjusted Assets | 14.45% | 14.21% | 14.11% | |
| Total Regulatory Capital/ | ||||
| Risk-Adjusted Assets | 15.75% | 15.50% | 15.41% | |
| Tangible Common Equity Ratio | 8.35% | 8.15% | 8.35% | |
| Common Shares Outstanding | 28,150 | 29,090 | -3.2% | 28,301 |
| Book Value Per Common Share | $19.85 | $18.75 | 5.9% | $19.57 |
| Market Value Per Common Share | $43.90 | $55.47 | -20.9% | $38.32 |
| Share Repurchase Programs | ||||
| (shares in thousands) | ||||
| % | ||||
| Q4'11 | Q4'10 | Change | Q3'11 | |
| Total Shares Repurchased | 361 | 128 | n/m | 316 |
| Average Repurchase Price | $42.83 | $50.35 | -14.9% | $42.37 |
| Net Shares Repurchased | 151 | 28 | n/m | 239 |
| % | ||||
| 12/31'11YTD | 12/31'10YTD | Change | ||
| Total Shares Repurchased | 1,317 | 533 | n/m | |
| Average Repurchase Price | $45.99 | $53.87 | -14.6% | |
| Net Shares Repurchased | 940 | 118 | n/m | |
| 11. Period-End Balance Sheets. | ||||
| (unaudited, dollars in thousands) | ||||
| % | ||||
| 12/31/11 | 12/31/10 | Change | 9/30/11 | |
| Assets: | ||||
| Cash and Money Market Assets | $530,045 | $339,185 | 56.3% | $459,754 |
| Investment Securities: | ||||
| Available For Sale | 638,753 | 671,484 | -4.9% | 683,640 |
| Held to Maturity | 922,803 | 580,728 | 58.9% | 755,906 |
| Purchased Covered Loans (1) | 535,278 | 692,972 | -22.8% | 575,353 |
| Purchased Non-Covered Loans (2) | 125,921 | 199,571 | -36.9% | 139,200 |
| Originated Loans | 1,862,607 | 2,029,541 | -8.2% | 1,920,286 |
| Allowance For Loan Losses | (32,597) | (35,636) | -8.5% | (32,893) |
| Total Loans, net | 2,491,209 | 2,886,448 | -13.7% | 2,601,946 |
| Non-Covered Other Real Estate | ||||
| Owned | 26,500 | 13,620 | 94.6% | 24,671 |
| Covered Other Real Estate | ||||
| Owned (1) | 19,135 | 21,791 | -12.2% | 23,160 |
| Premises and Equipment, net | 36,548 | 36,278 | 0.7% | 36,098 |
| Identifiable Intangibles, net | 28,629 | 34,604 | -17.3% | 30,099 |
| Goodwill | 121,673 | 121,673 | 0.0% | 121,673 |
| Other Assets | 226,866 | 225,713 | 0.5% | 229,552 |
| Total Assets | $5,042,161 | $4,931,524 | 2.2% | $4,966,499 |
| Liabilities and Shareholders' Equity: | ||||
| Deposits: | ||||
| Noninterest Bearing | $1,562,254 | $1,454,663 | 7.4% | $1,527,030 |
| Interest-Bearing Transaction | 734,988 | 718,885 | 2.2% | 701,323 |
| Savings | 1,148,178 | 1,063,837 | 7.9% | 1,137,919 |
| Time | 804,501 | 895,576 | -10.2% | 826,111 |
| Total Deposits | 4,249,921 | 4,132,961 | 2.8% | 4,192,383 |
| Short-Term Borrowed Funds | 125,689 | 107,385 | 17.0% | 120,917 |
| Federal Home Loan Bank Advances | 26,023 | 61,698 | n/m | 26,078 |
| Debt Financing and Notes Payable | 15,000 | 26,363 | -43.1% | 15,000 |
| Other Liabilities | 66,887 | 57,830 | 15.7% | 58,133 |
| Total Liabilities | 4,483,520 | 4,386,237 | 2.2% | 4,412,511 |
| Shareholders' Equity: | ||||
| Common Equity: | ||||
| Paid-In Capital | 380,835 | 381,609 | -0.2% | 377,458 |
| Accumulated Other | ||||
| Comprehensive Income | 11,369 | 159 | n/m | 10,795 |
| Retained Earnings | 166,437 | 163,519 | 1.8% | 165,735 |
| Total Shareholders' Equity | 558,641 | 545,287 | 2.4% | 553,988 |
| Total Liabilities and | ||||
| Shareholders' Equity | $5,042,161 | $4,931,524 | 2.2% | $4,966,499 |
| 12. Income Statements. | ||||
| (unaudited, in thousands except per-share amounts) | ||||
| % | ||||
| Q4'11 | Q4'10 | Change | Q3'11 | |
| Interest & Fee Income: | ||||
| Loans | $38,139 | $44,028 | -13.4% | $39,899 |
| Money Market Assets | -- | -- | n/m | -- |
| Investment Securities: | ||||
| Available for Sale | 5,167 | 4,657 | 11.0% | 5,526 |
| Held to Maturity | 7,115 | 6,186 | 15.0% | 6,551 |
| Total Interest Income | 50,421 | 54,871 | -8.1% | 51,976 |
| Interest Expense: | ||||
| Transaction Deposits | 144 | 233 | -38.2% | 191 |
| Savings Deposits | 356 | 585 | -39.1% | 406 |
| Time Deposits | 961 | 1,184 | -18.9% | 1,080 |
| Short-Term Borrowed Funds | 71 | 454 | -84.4% | 76 |
| Federal Home Loan Bank Advances | 122 | 187 | -34.8% | 118 |
| Debt Financing and Notes Payable | 201 | 422 | -52.5% | 200 |
| Total Interest Expense | 1,855 | 3,065 | -39.5% | 2,071 |
| Net Interest Income | 48,566 | 51,806 | -6.3% | 49,905 |
| Provision for Loan Losses | 2,800 | 2,800 | 0.0% | 2,800 |
| Noninterest Income: | ||||
| Service Charges | 6,994 | 7,984 | -12.4% | 7,430 |
| Merchant Processing Services | 2,515 | 2,427 | 3.6% | 2,358 |
| Debit Card Fees | 1,204 | 1,210 | -0.5% | 1,269 |
| ATM Processing Fees | 904 | 931 | -2.9% | 980 |
| Trust Fees | 480 | 447 | 7.3% | 432 |
| Financial Services Commissions | 165 | 164 | 0.9% | 111 |
| Other | 2,595 | 1,980 | 31.0% | 2,625 |
| Total Noninterest Income | 14,857 | 15,143 | -1.9% | 15,205 |
| Noninterest Expense: | ||||
| Salaries and Benefits | 14,113 | 14,899 | -5.3% | 14,401 |
| Occupancy | 4,124 | 4,073 | 1.3% | 4,010 |
| Outsourced Data Processing | 2,101 | 2,329 | -9.8% | 2,165 |
| Settlements | -- | 20 | n/m | -- |
| Amortization of Identifiable Intangibles | 1,470 | 1,622 | -9.3% | 1,477 |
| Professional Fees | 1,314 | 896 | 46.6% | 1,185 |
| Equipment | 922 | 1,091 | -15.5% | 943 |
| Other Real Estate Owned | 623 | 243 | n/m | 700 |
| Courier Service | 806 | 859 | -6.1% | 840 |
| Deposit Insurance Assessment | 740 | 1,320 | -43.9% | 740 |
| Other | 4,450 | 4,161 | 6.9% | 4,922 |
| Total Noninterest Expense | 30,663 | 31,513 | -2.7% | 31,383 |
| Income Before Income Taxes | 29,960 | 32,636 | -8.2% | 30,927 |
| Income Tax Provision | 8,155 | 8,905 | -8.4% | 8,495 |
| Net Income | $21,805 | $23,731 | -8.1% | $22,432 |
| Average Common Shares Outstanding | 28,296 | 29,103 | -2.8% | 28,433 |
| Diluted Common Shares Outstanding | 28,334 | 29,341 | -3.4% | 28,498 |
| Per Common Share Data: | ||||
| Basic Earnings | $0.77 | $0.82 | -6.1% | $0.79 |
| Diluted Earnings | 0.77 | 0.81 | -4.9% | 0.79 |
| Dividends Paid | 0.37 | 0.36 | 2.8% | 0.36 |
| % | ||||
| 12/31'11YTD | 12/31'10YTD | Change | ||
| Interest & Fee Income: | ||||
| Loans | $160,673 | $177,224 | -9.3% | |
| Money Market Assets | -- | 2 | n/m | |
| Investment Securities: | ||||
| Available for Sale | 21,594 | 16,766 | 28.8% | |
| Held to Maturity | 25,712 | 27,163 | -5.3% | |
| Total Interest Income | 207,979 | 221,155 | -6.0% | |
| Interest Expense: | ||||
| Transaction Deposits | 727 | 894 | -18.7% | |
| Savings Deposits | 1,692 | 2,649 | -36.1% | |
| Time Deposits | 4,386 | 5,175 | -15.2% | |
| Short-Term Borrowed Funds | 255 | 1,991 | -87.2% | |
| Federal Home Loan Bank Advances | 520 | 437 | n/m | |
| Debt Financing and Notes Payable | 802 | 1,694 | -52.7% | |
| Total Interest Expense | 8,382 | 12,840 | -34.7% | |
| Net Interest Income | 199,597 | 208,315 | -4.2% | |
| Provision for Loan Losses | 11,200 | 11,200 | 0.0% | |
| Noninterest Income: | ||||
| Service Charges | 29,523 | 33,517 | -11.9% | |
| Merchant Processing Services | 9,436 | 9,057 | 4.2% | |
| Debit Card Fees | 4,956 | 4,888 | 1.4% | |
| ATM Processing Fees | 3,815 | 3,848 | -0.8% | |
| Trust Fees | 1,887 | 1,705 | 10.7% | |
| Financial Services Commissions | 423 | 747 | -43.4% | |
| Other | 10,057 | 7,692 | 30.7% | |
| Total Noninterest Income | 60,097 | 61,454 | -2.2% | |
| Noninterest Expense: | ||||
| Salaries and Benefits | 58,501 | 61,748 | -5.3% | |
| Occupancy | 16,209 | 15,633 | 3.7% | |
| Outsourced Data Processing | 8,844 | 8,957 | -1.3% | |
| Settlements | 2,100 | 43 | n/m | |
| Amortization of Identifiable Intangibles | 5,975 | 6,333 | -5.7% | |
| Professional Fees | 4,802 | 3,376 | 42.2% | |
| Equipment | 3,837 | 4,325 | -11.3% | |
| Other Real Estate Owned | 2,458 | 895 | 174.6% | |
| Courier Service | 3,342 | 3,495 | -4.4% | |
| Deposit Insurance Assessment | 3,440 | 5,168 | -33.4% | |
| Other | 18,170 | 17,174 | 5.8% | |
| Total Noninterest Expense | 127,678 | 127,147 | 0.4% | |
| Income Before Income Taxes | 120,816 | 131,422 | -8.1% | |
| Income Tax Provision | 32,928 | 36,845 | -10.6% | |
| Net Income | $87,888 | $94,577 | -7.1% | |
| Average Common Shares Outstanding | 28,628 | 29,166 | -1.8% | |
| Diluted Common Shares Outstanding | 28,742 | 29,471 | -2.5% | |
| Per Common Share Data: | ||||
| Basic Earnings | $3.07 | $3.24 | -5.2% | |
| Diluted Earnings | 3.06 | 3.21 | -4.7% | |
| Dividends Paid | 1.45 | 1.44 | 0.7% | |
| Footnotes and Abbreviations: | ||||
| (FTE) Fully Taxable Equivalent | ||||
| (a) Annualized | ||||
| (1) Purchased covered loans represent purchased loans on which losses are shared with the FDIC | ||||
| per a Loss Sharing Agreement. Purchased covered loans were recorded at estimated fair value at | ||||
| February 6, 2009, the date of purchase. | ||||
| (2) Purchased non-covered loans represent purchased loans recorded at estimated fair value | ||||
| at August 20, 2010, the date of purchase. | ||||
CONTACT: Westamerica Bancorporation
Robert A. Thorson - SVP & Chief Financial Officer
707-863-6840
Westamerica Bancorporation Web Address: www.westamerica.com