Westamerica Bancorporation Reports Third Quarter 2015 Financial Results

SAN RAFAEL, Calif., Oct. 14, 2015 (GLOBE NEWSWIRE) — Westamerica Bancorporation (Nasdaq:WABC), parent company of Westamerica Bank, generated net income for the third quarter 2015 of $14.9 million and diluted earnings per common share (“EPS”) of $0.58, compared to net income of $14.8 million and EPS of $0.58 for the prior quarter, and net income of $15.2 million and EPS of $0.58 for the third quarter 2014.

“Our operating results generated an annualized return on shareholders’ common equity of 11.3 percent for the third quarter 2015. These relatively strong results were achieved from our consistent and disciplined operating practices. While our net interest margin declined to 3.31 percent for the third quarter 2015, the margin was supported by a low 0.05 percent cost of funding our interest generating assets. Lower-costing checking and savings deposits continued to grow in the third quarter 2015, and represented 93 percent of total deposits at September 30, 2015. Westamerica’s credit quality remained stable at healthy levels throughout the quarter, requiring no provision for loan losses, and our operating expenses represented only 53 percent of our revenues during the third quarter 2015,” said Chairman, President and CEO David Payne. “Westamerica paid our shareholders a $0.38 per share dividend in the third quarter 2015,” concluded Payne.

Net interest income on a fully taxable equivalent (“FTE”) basis was $37.2 million for the third quarter 2015, compared to $37.4 million for the prior quarter, and $37.9 million for the third quarter 2014. The decline in net interest income is due to a decline in the net interest margin, offset in part by increasing volumes of interest-earning assets. The annualized net interest margin on a fully taxable equivalent basis was 3.31 percent for the third quarter 2015, compared to 3.37 percent for the prior quarter and 3.66 percent for the third quarter 2014. 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 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. The increase in volumes of interest-earning assets has been funded by growth in checking and savings deposits.

The provision for loan losses was zero for the third quarter 2015, unchanged from the prior quarter, and down from $600 thousand for the third quarter 2014. Net loan losses charged against the allowance for loan losses totaled $792 thousand for the third quarter 2015, compared to $359 thousand for the prior quarter and $1.2 million for the third quarter 2014. At September 30, 2015, the allowance for loan losses totaled $30 million and nonperforming loans totaled $17 million.

Noninterest income for the third quarter 2015 totaled $12.0 million, compared to $12.3 million for the prior quarter, and $13.1 million for the third quarter 2014. Noninterest income was lower in the third quarter 2015 compared to the third quarter 2014 due to declines in service charges on deposit accounts and merchant processing fees.

Noninterest expense for the third quarter 2015 totaled $26.2 million, compared to $26.9 million in the prior quarter and $26.6 million for the third quarter 2014. The decline in noninterest expense is due to declines in personnel costs and other expenses.

At September 30, 2015, Westamerica Bancorporation’s tangible common equity-to-asset ratio was 8.2 percent, and assets totaled $5.0 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 June 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.

WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
September 30, 2015
 
1. Net Income Summary.
  (in thousands except per-share amounts)
      %  
  Q3’15 Q3’14 Change Q2’15
         
Net Interest and Fee Income (FTE) $37,179 $37,905 -1.9% $37,415
Provision for Loan Losses  — 600 n/m  —
Noninterest Income 11,993 13,054 -8.1% 12,269
Noninterest Expense 26,173 26,616 -1.7% 26,896
Income Before Taxes (FTE) 22,999 23,743 -3.1% 22,788
Income Tax Provision (FTE) 8,142 8,589 -5.2% 8,027
Net Income $14,857 $15,154 -2.0% $14,761
         
Average Common Shares Outstanding 25,530 25,973 -1.7% 25,514
Diluted Average Common Shares 25,565 26,016 -1.7% 25,536
         
Operating Ratios:        
Basic Earnings Per Common Share $0.58 $0.58 0.0% $0.58
Diluted Earnings Per Common Share 0.58 0.58 0.0% 0.58
Return On Assets (a) 1.16% 1.21%   1.17%
Return On Common Equity (a) 11.3% 11.5%   11.5%
Net Interest Margin (FTE) (a) 3.31% 3.66%   3.37%
Efficiency Ratio (FTE) 53.2% 52.2%   54.1%
         
Dividends Paid Per Common Share $0.38 $0.38 0.0% $0.38
Common Dividend Payout Ratio  66% 66%   66%
         
      %  
  9/30’15YTD 9/30’14YTD Change  
         
Net Interest and Fee Income (FTE) $111,524 $115,351 -3.3%  
Provision for Loan Losses  — 2,600 n/m  
Noninterest Income 36,562 39,242 -6.8%  
Noninterest Expense 79,796 80,446 -0.8%  
Income Before Taxes (FTE) 68,290 71,547 -4.6%  
Income Tax Provision (FTE) 24,115 25,929 -7.0%  
Net Income $44,175 $45,618 -3.2%  
         
Average Common Shares Outstanding 25,565 26,192 -2.4%  
Diluted Average Common Shares 25,585 26,262 -2.6%  
         
Operating Ratios:        
Basic Earnings Per Common Share $1.73 $1.74 -0.6%  
Diluted Earnings Per Common Share 1.73 1.74 -0.6%  
Return On Assets (a) 1.17% 1.24%    
Return On Common Equity (a) 11.4% 11.6%    
Net Interest Margin (FTE) (a) 3.37% 3.75%    
Efficiency Ratio (FTE) 53.9% 52.0%    
         
Dividends Paid Per Common Share $1.14 $1.14 0.0%  
Common Dividend Payout Ratio  66% 66%    
 
2. Net Interest Income.
  (dollars in thousands)
      %  
  Q3’15 Q3’14 Change Q2’15
         
Interest and Fee Income (FTE) $37,764 $38,751 -2.5% $38,032
Interest Expense 585 846 -30.8% 617
Net Interest and Fee Income (FTE) $37,179 $37,905 -1.9% $37,415
         
Average Earning Assets $4,471,690 $4,125,835 8.4% $4,436,196
Average Interest-        
Bearing Liabilities 2,511,820 2,529,300 -0.7% 2,540,194
         
Yield on Earning Assets (FTE) (a) 3.36% 3.74%   3.43%
Cost of Funds (a) 0.05% 0.08%   0.06%
Net Interest Margin (FTE) (a) 3.31% 3.66%   3.37%
Interest Expense/        
Interest-Bearing Liabilities (a) 0.09% 0.13%   0.10%
Net Interest Spread (FTE) (a) 3.27% 3.61%   3.33%
         
      %  
  9/30’15YTD 9/30’14YTD Change  
         
Interest and Fee Income (FTE) $113,385 $117,995 -3.9%  
Interest Expense 1,861 2,644 -29.6%  
Net Interest and Fee Income (FTE) $111,524 $115,351 -3.3%  
         
Average Earning Assets $4,417,114 $4,111,364 7.4%  
Average Interest-        
Bearing Liabilities 2,540,948 2,531,175 0.4%  
         
Yield on Earning Assets (FTE) (a) 3.43% 3.84%    
Cost of Funds (a) 0.06% 0.09%    
Net Interest Margin (FTE) (a) 3.37% 3.75%    
Interest Expense/        
Interest-Bearing Liabilities (a) 0.10% 0.14%    
Net Interest Spread (FTE) (a) 3.33% 3.70%    
 
3. Loans & Other Earning Assets.
  (average volume, dollars in thousands)
      %  
  Q3’15 Q3’14 Change Q2’15
         
Total Assets $5,062,334 $4,971,808 1.8% $5,044,361
Total Earning Assets 4,471,690 4,125,835 8.4% 4,436,196
Total Loans 1,591,798 1,760,115 -9.6% 1,655,779
Commercial Loans 377,687 405,066 -6.8% 405,891
Commercial RE Loans  675,597 741,962 -8.9% 687,221
Consumer Loans 538,514 613,087 -12.2% 562,667
Total Investment Securities 2,879,892 2,365,720 21.7% 2,780,417
Available For Sale (Market) 1,649,986 1,317,195 25.3% 1,724,126
Held To Maturity 1,229,906 1,048,525 17.3% 1,056,291
Unrealized Gain 15,144 6,344 n/m 5,022
         
Loans/Deposits 36.1% 40.9%   37.7%
         
      %  
  9/30’15YTD 9/30’14YTD Change  
         
Total Assets $5,055,421 $4,923,705 2.7%  
Total Earning Assets 4,417,114 4,111,364 7.4%  
Total Loans 1,643,438 1,794,513 -8.4%  
Commercial Loans 394,829 397,263 -0.6%  
Commercial RE Loans  690,970 768,470 -10.1%  
Consumer Loans 557,639 628,780 -11.3%  
Total Investment Securities 2,773,676 2,316,851 19.7%  
Available For Sale (Market) 1,669,056 1,230,002 35.7%  
Held To Maturity 1,104,620 1,086,849 1.6%  
Unrealized Gain 15,144 6,344 n/m  
         
Loans/Deposits 37.3% 42.2%    
 
4. Deposits, Other Interest-Bearing Liabilities & Equity.
  (average volume, dollars in thousands)
      %  
  Q3’15 Q3’14 Change Q2’15
         
Total Deposits $4,414,711 $4,303,389 2.6% $4,395,351
Noninterest Demand  1,975,498 1,869,853 5.6% 1,942,124
Interest Bearing Transaction 817,479 790,040 3.5% 804,512
Savings 1,304,128 1,215,647 7.3% 1,300,058
Time greater than $100K 147,216 233,511 -37.0% 172,605
Time less than $100K 170,390 194,338 -12.3% 176,052
Total Short-Term Borrowings 72,607 71,067 2.2% 86,967
Federal Home Loan Bank Advances  — 20,240 n/m  —
Term Repurchase Agreement  —  4,457 n/m  —
Shareholders’ Equity 520,261 520,702 -0.1% 514,768
         
Demand Deposits/        
Total Deposits 44.7% 43.5%   44.2%
Transaction & Savings         
Deposits / Total Deposits 92.8% 90.1%   92.1%
         
      %  
  9/30’15YTD 9/30’14YTD Change  
         
Total Deposits $4,404,379 $4,250,969 3.6%  
Noninterest Demand  1,946,018 1,813,141 7.3%  
Interest Bearing Transaction 810,980 785,215 3.3%  
Savings 1,298,851 1,203,690 7.9%  
Time greater than $100K 172,834 247,485 -30.2%  
Time less than $100K 175,696 201,438 -12.8%  
Total Short-Term Borrowings 81,926 64,836 26.4%  
Federal Home Loan Bank Advances 661 20,379 -96.8%  
Term Repurchase Agreement  —  8,132 n/m  
Shareholders’ Equity 517,054 526,337 -1.8%  
         
Demand Deposits/        
Total Deposits 44.2% 42.7%    
Transaction & Savings         
Deposits / Total Deposits 92.1% 89.4%    
 
5. Interest Yields Earned & Rates Paid.
  (dollars in thousands)
  Q3’15
  Average Income/ Yield (a) /
  Volume Expense Rate
       
Interest & Fee Income Earned      
Total Earning Assets (FTE) $4,471,690 $37,764 3.36%
Total Loans (FTE)  1,591,798 19,732 4.92%
Commercial Loans (FTE) 377,687 4,470 4.70%
Commercial RE Loans  675,597 10,127 5.95%
Consumer Loans 538,514 5,135 3.79%
Total Investments (FTE) 2,879,892 18,032 2.50%
       
Interest Expense Paid      
Total Earning Assets  4,471,690 585 0.05%
Total Interest-Bearing Liabilities 2,511,820 585 0.09%
Total Interest-Bearing Deposits 2,439,213 573 0.09%
Interest-Bearing Transaction 817,479 65 0.03%
Savings 1,304,128 211 0.06%
Time less than $100K 170,390 133 0.31%
Time greater than $100K 147,216 164 0.44%
Total Short-Term Borrowings  72,607 12 0.07%
       
Net Interest Income and       
Margin (FTE)   $37,179 3.31%
       
  Q3’14
  Average Income/ Yield (a) /
  Volume Expense Rate
       
Interest & Fee Income Earned      
Total Earning Assets (FTE) $4,125,835 $38,751 3.74%
Total Loans (FTE) 1,760,115 22,538 5.08%
Commercial Loans (FTE) 405,066 5,478 5.37%
Commercial RE Loans  741,962 11,465 6.13%
Consumer Loans 613,087 5,595 3.63%
Total Investments (FTE) 2,365,720 16,213 2.74%
       
Interest Expense Paid      
Total Earning Assets  4,125,835 846 0.08%
Total Interest-Bearing Liabilities 2,529,300 846 0.13%
Total Interest-Bearing Deposits 2,433,536 709 0.12%
Interest-Bearing Transaction 790,040 69 0.03%
Savings 1,215,647 221 0.07%
Time less than $100K 194,338 200 0.41%
Time greater than $100K 233,511 219 0.37%
Total Short-Term Borrowings  71,067 23 0.13%
Federal Home Loan Bank Advances 20,240 103 2.02%
Term Repurchase Agreement  4,457  11 1.00%
       
Net Interest Income and      
Margin (FTE)   $37,905 3.66%
 
6. Noninterest Income.
  (dollars in thousands except per-share amounts)
      %  
  Q3’15 Q3’14 Change Q2’15
         
Service Charges on Deposits $5,581 $6,207 -10.1% $5,694
Merchant Processing Services 1,485 1,742 -14.7% 1,783
Debit Card Fees 1,538 1,543 -0.4% 1,534
Other Service Fees 693 695 -0.3% 683
ATM Processing Fees 616 637 -3.3% 627
Trust Fees 682 629 8.5% 672
Financial Services Commissions 177 194 -8.5% 198
Other Income 1,221 1,407 -13.2% 1,078
Total Noninterest Income $11,993 $13,054 -8.1% $12,269
         
Total Revenue (FTE) $49,172 $50,959 -3.5% $49,684
Noninterest Income/Revenue (FTE) 24.4% 25.6%   24.7%
Service Charges/Avg. Deposits (a) 0.50% 0.57%   0.52%
Total Revenues (FTE) Per Avg.         
Common Share (a) $7.64 $7.78 -1.8% $7.81
         
      %  
  9/30’15YTD 9/30’14YTD Change  
         
Service Charges on Deposits $16,981 $18,322 -7.3%  
Merchant Processing Services 4,971 5,485 -9.4%  
Debit Card Fees 4,528 4,482 1.0%  
Other Service Fees 2,041 2,044 -0.1%  
ATM Processing Fees 1,828 1,891 -3.4%  
Trust Fees 2,061 1,899 8.6%  
Financial Services Commissions 527 585 -9.9%  
Other Income 3,625 4,534 -20.1%  
Total Noninterest Income $36,562 $39,242 -6.8%  
         
Total Revenue (FTE) $148,086 $154,593 -4.2%  
Noninterest Income/Revenue (FTE) 24.7% 25.4%    
Service Charges/Avg. Deposits (a) 0.52% 0.58%    
Total Revenues (FTE) Per Avg.         
Common Share (a) $7.74 $7.89 -1.9%  
 
7. Noninterest Expense.
  (dollars in thousands)
      %  
  Q3’15 Q3’14 Change Q2’15
         
Salaries & Benefits $12,761 $13,639 -6.4% $13,696
Occupancy 3,746 3,811 -1.7% 3,726
Outsourced Data Processing 2,115 2,093 1.0% 2,111
Amortization of         
Identifiable Intangibles 952 1,056 -9.8% 955
Professional Fees 746 700 6.5% 582
Furniture & Equipment 1,075 1,059 1.5% 1,158
Other Real Estate Owned 83 (287) n/m 52
Courier Service 604 663 -8.9% 598
Other Operating 4,091 3,882 5.4% 4,018
Total Noninterest Expense $26,173 $26,616 -1.7% $26,896
         
Noninterest Expense/        
Avg. Earning Assets (a) 2.32% 2.56%   2.43%
Noninterest Expense/Revenues (FTE) 53.2% 52.2%   54.1%
         
      %  
  9/30’15YTD 9/30’14YTD Change  
         
Salaries & Benefits $39,795 $41,691 -4.5%  
Occupancy 11,199 11,284 -0.8%  
Outsourced Data Processing 6,334 6,314 0.3%  
Amortization of         
Identifiable Intangibles 2,908 3,219 -9.7%  
Professional Fees 1,876 1,707 9.9%  
Furniture & Equipment 3,353 3,070 9.2%  
Other Real Estate Owned 451 (908) n/m  
Courier Service 1,744 1,938 -10.0%  
Other Operating 12,136 12,131 0.0%  
Total Noninterest Expense $79,796 $80,446 -0.8%  
         
Noninterest Expense/        
Avg. Earning Assets (a) 2.42% 2.62%    
Noninterest Expense/Revenues (FTE) 53.9% 52.0%    
 
8. Provision for Loan Losses.
  (dollars in thousands)
      %  
  Q3’15 Q3’14 Change Q2’15
         
Average Total Loans $1,591,798 $1,760,115 -9.6% $1,655,779
         
Allowance for Loan Loss (ALL)       
Beginning of Period  $30,828 $32,398 -4.8% $31,187
Provision for Loan Losses   — 600 n/m  —
Net ALL Losses (792) (1,229) -35.6% (359)
ALL End of Period $30,036 $31,769 -5.5% $30,828
ALL Recoveries/Gross ALL Losses  46% 33%   74%
         
Net ALL Losses/Avg. Total Loans (a) 0.20% 0.28%   0.09%
         
      %  
  9/30’15YTD 9/30’14YTD Change  
         
Average Total Loans $1,643,438 $1,794,513 -8.4%  
         
Allowance for Loan Loss (ALL)       
Beginning of Period  $31,485 $31,693 -0.7%  
Provision for Loan Losses   — 2,600 n/m  
Net ALL Losses (1,449) (2,524) -42.6%  
ALL End of Period $30,036 $31,769 -5.5%  
ALL Recoveries/Gross ALL Losses  63% 45%    
         
Net ALL Losses/Avg. Total Loans (a) 0.12% 0.19%    
 
9. Credit Quality.
  (dollars in thousands)
      %  
  9/30/15 9/30/14 Change 6/30/15
         
Nonperforming Originated Loans:        
Nonperforming Nonaccrual $7,578 $4,696 61.4% $6,269
Performing Nonaccrual  — 13 n/m 11
Total Nonaccrual Loans 7,578 4,709 60.9% 6,280
90+ Days Past Due Accruing Loans 481 342 40.6% 221
Total 8,059 5,051 59.6% 6,501
Repossessed Originated Loan Collateral 5,834 5,123 13.9% 5,906
Total Nonperforming        
Originated Assets 13,893 10,174 36.5% 12,407
         
Nonperforming Purchased Covered Loans (1):      
Nonperforming Nonaccrual  —  295 n/m  3
Performing Nonaccrual  —  — n/m  —
Total Nonaccrual Loans  —  295 n/m  3
90+ Days Past Due Accruing Loans  —  — n/m  —
Total  —  295 n/m  3
Repossessed Purchased Covered         
Loan Collateral (1)  486 585 -16.9%  486
Total Nonperforming Purchased        
Covered Assets (1) 486 880 -44.8% 489
         
Nonperforming Purchased Non-Covered Loans (2):      
Nonperforming Nonaccrual 8,784  12,745 -31.1% 9,937
Performing Nonaccrual 84  552 -84.8% 5
Total Nonaccrual Loans 8,868  13,297 -33.3% 9,942
90+ Days Past Due Accruing Loans  —  76 n/m  —
Total 8,868  13,373 -33.7% 9,942
Repossessed Purchased Non-Covered         
Loan Collateral (2)  2,949  1,565 88.5%  2,868
Total Nonperforming Purchased        
Non-Covered Assets (2) 11,817  14,938 -20.9% 12,810
         
Total Nonperforming Assets $26,196 $25,992 0.8% $25,706
         
Total Originated Loans Outstanding $1,376,905 $1,489,565 -7.6% $1,425,047
Total Purchased Covered         
Loans Outstanding (1) 14,640 17,523 -16.5% 15,109
Total Purchased Non-Covered         
Loans Outstanding (2) 180,298  225,294 -20.0% 191,115
Total Loans Outstanding  $1,571,843 $1,732,382 -9.3% $1,631,271
         
Total Assets  $5,001,395 $4,993,725 0.2% $5,031,230
         
Loans:        
Allowance for Loan Losses $30,036 $31,769 -5.5% $30,828
Allowance/Loans 1.91% 1.83%   1.89%
Nonperforming Loans/Total Loans 1.08% 1.08%   1.01%
         
Purchased Covered Loans (1):        
Fair Value Discount on Purchased         
Covered Loans $155 $501   $197
Discount/Purchased Covered        
Loans, gross 1.05% 2.78%   1.29%
Nonperforming Purchased Covered Loans/      
Total Purchased Covered Loans 0.00% 1.68%   0.02%
         
Purchased Non-Covered Loans (2):        
Fair Value Discount on Purchased         
Non-Covered Loans $7,082 $10,233   $7,780
Discount/Purchased Non-Covered 3.78% 4.34%   3.91%
Loans, gross        
Nonperforming Purchased Non-Covered Loans/      
Total Purchased Non-Covered Loans 4.92% 5.94%   5.20%
 
10. Capital.
  (in thousands, except per-share amounts)
      %  
  9/30/15 9/30/14 Change 6/30/15
         
Shareholders’ Equity $533,938 $533,395 0.1% $525,338
Total Assets 5,001,395 4,993,725 0.2% 5,031,230
         
Shareholders’ Equity/        
Total Assets 10.68% 10.68%   10.44%
Shareholders’ Equity/        
Total Loans 33.97% 30.79%   32.20%
Tangible Common Equity Ratio 8.23% 8.16%   7.99%
Common Shares Outstanding 25,530 25,906 -1.5% 25,529
Common Equity Per Share $20.91 $20.59 1.6% $20.58
Market Value Per Common Share $44.44 $46.52 -4.5% $50.65
         
Share Repurchase Programs        
  (shares in thousands)
      %  
  Q3’15 Q3’14 Change Q2’15
         
Total Shares Repurchased 26 175 -84.8% 133
Average Repurchase Price $50.30 $48.62 3.9% $43.89
Net Shares (Issued) Repurchased (1) 168 -100.3% 34
         
      %  
  9/30’15YTD 9/30’14YTD Change  
         
Total Shares Repurchased 342 883 -61.2%  
Average Repurchase Price $43.90 $50.78 -13.5%  
Net Shares Repurchased 215 604 -64.4%  
 
11. Period-End Balance Sheets.
  (unaudited, dollars in thousands)
      %  
  9/30/15 9/30/14 Change 6/30/15
Assets:        
Cash and Due from Banks $268,587 $524,338 -48.8% $289,606
         
Investment Securities:        
Available For Sale 1,571,710 1,391,362 13.0% 1,634,878
Held to Maturity 1,278,814 1,035,041 23.6% 1,159,581
         
 Loans 1,571,843 1,732,382 -9.3% 1,631,271
 Allowance For Loan Losses (30,036) (31,769) -5.5% (30,828)
 Total Loans, net 1,541,807 1,700,613 -9.3% 1,600,443
         
 Other Real Estate Owned 9,269 7,273 27.4% 9,260
 Premises and Equipment, net 39,244 37,335 5.1% 37,945
 Identifiable Intangibles, net 11,379 15,338 -25.8% 12,331
 Goodwill  121,673 121,673 0.0% 121,673
 Other Assets 158,912 160,752 -1.1% 165,513
         
Total Assets $5,001,395 $4,993,725 0.2% $5,031,230
         
Liabilities and Shareholders’ Equity:        
Deposits:        
Noninterest Bearing $1,942,450 $1,893,480 2.6% $1,930,551
Interest-Bearing Transaction 812,940 775,377 4.8% 795,793
Savings 1,310,985 1,231,640 6.4% 1,287,859
Time 300,545 421,141 -28.6% 340,641
Total Deposits 4,366,920 4,321,638 1.0% 4,354,844
         
Short-Term Borrowed Funds 57,063 76,943 -25.8% 82,747
Federal Home Loan Bank Advances  — 20,156 n/m  —
Term Repurchase Agreement  —  — n/m  —
Other Liabilities 43,474 41,593 4.5% 68,301
Total Liabilities 4,467,457 4,460,330 0.2% 4,505,892
         
Shareholders’ Equity:        
Common Equity:        
Paid-In Capital 381,227 382,906 -0.4% 380,050
Accumulated Other        
Comprehensive Income 7,198 9,733 -26.0% 3,988
Retained Earnings 145,513 140,756 3.4% 141,300
Total Shareholders’ Equity 533,938 533,395 0.1% 525,338
         
Total Liabilities and         
Shareholders’ Equity $5,001,395 $4,993,725 0.2% $5,031,230
 
12. Income Statements.
  (unaudited, in thousands except per-share amounts)
      %  
  Q3’15 Q3’14 Change Q2’15
Interest & Fee Income:        
Loans $19,378 $22,129 -12.4% $20,035
Investment Securities:        
Available for Sale 7,880 6,350 24.1% 7,999
Held to Maturity 7,041 6,421 9.6% 6,391
Total Interest & Fee Income 34,299 34,900 -1.7% 34,425
         
Interest Expense:        
Transaction Deposits 65 69 -6.3% 62
Savings Deposits 211 221 -4.4% 207
Time Deposits 297 419 -29.1% 332
Short-Term Borrowed Funds 12 23 -47.0% 16
Federal Home Loan Bank Advances  — 103 n/m  —
Term Repurchase Agreement  —  11 n/m  —
Total Interest Expense 585 846 -30.8% 617
         
Net Interest Income 33,714 34,054 -1.0% 33,808
         
Provision for Loan Losses  — 600 n/m  —
         
Noninterest Income:        
Service Charges  5,581 6,207 -10.1% 5,694
Merchant Processing Services 1,485 1,742 -14.7% 1,783
Debit Card Fees 1,538 1,543 -0.4% 1,534
Other Service Fees 693 695 -0.3% 683
ATM Processing Fees 616 637 -3.3% 627
Trust Fees 682 629 8.5% 672
Financial Services Commissions 177 194 -8.5% 198
Other 1,221 1,407 -13.2% 1,078
Total Noninterest Income 11,993 13,054 -8.1% 12,269
         
Noninterest Expense:        
Salaries and Benefits 12,761 13,639 -6.4% 13,696
Occupancy  3,746 3,811 -1.7% 3,726
Outsourced Data Processing 2,115 2,093 1.0% 2,111
Amortization of Identifiable Intangibles 952 1,056 -9.8% 955
Professional Fees 746 700 6.5% 582
Furniture & Equipment 1,075 1,059 1.5% 1,158
Other Real Estate Owned 83 (287) n/m 52
Courier Service 604 663 -8.9% 598
Other 4,091 3,882 5.4% 4,018
Total Noninterest Expense 26,173 26,616 -1.7% 26,896
         
Income Before Income Taxes 19,534 19,892 -1.8% 19,181
Income Tax Provision 4,677 4,738 -1.3% 4,420
Net Income $14,857 $15,154 -2.0% $14,761
         
Average Common Shares Outstanding 25,530 25,973 -1.7% 25,514
Diluted Common Shares Outstanding 25,565 26,016 -1.7% 25,536
         
Per Common Share Data:        
Basic Earnings $0.58 $0.58 0.0% $0.58
Diluted Earnings 0.58 0.58 0.0% 0.58
Dividends Paid 0.38 0.38 0.0% 0.38
         
      %  
  9/30’15YTD 9/30’14YTD Change  
Interest & Fee Income:        
Loans $59,643 $67,817 -12.1%  
Investment Securities:        
Available for Sale 23,347 17,855 30.8%  
Held to Maturity 19,651 20,195 -2.7%  
Total Interest & Fee Income 102,641 105,867 -3.0%  
         
Interest Expense:        
Transaction Deposits 190 203 -6.4%  
Savings Deposits 634 693 -8.4%  
Time Deposits 992 1,320 -24.9%  
Short-Term Borrowed Funds 44 64 -31.9%  
Federal Home Loan Bank Advances  1 304 n/m  
Term Repurchase Agreement  —  60 n/m  
Total Interest Expense 1,861 2,644 -29.6%  
         
Net Interest Income 100,780 103,223 -2.4%  
         
Provision for Loan Losses  — 2,600 n/m  
         
Noninterest Income:        
Service Charges  16,981 18,322 -7.3%  
Merchant Processing Services 4,971 5,485 -9.4%  
Debit Card Fees 4,528 4,482 1.0%  
Other Service Fees 2,041 2,044 -0.1%  
ATM Processing Fees 1,828 1,891 -3.4%  
Trust Fees 2,061 1,899 8.6%  
Financial Services Commissions 527 585 -9.9%  
Other 3,625 4,534 -20.1%  
Total Noninterest Income 36,562 39,242 -6.8%  
         
Noninterest Expense:        
Salaries and Benefits 39,795 41,691 -4.5%  
Occupancy  11,199 11,284 -0.8%  
Outsourced Data Processing 6,334 6,314 0.3%  
Amortization of Identifiable Intangibles 2,908 3,219 -9.7%  
Professional Fees 1,876 1,707 9.9%  
Furniture & Equipment 3,353 3,070 9.2%  
Other Real Estate Owned 451 (908) n/m  
Courier Service 1,744 1,938 -10.0%  
Other 12,136 12,131 0.0%  
Total Noninterest Expense 79,796 80,446 -0.8%  
         
Income Before Income Taxes 57,546 59,419 -3.2%  
Income Tax Provision 13,371 13,801 -3.1%  
Net Income $44,175 $45,618 -3.2%  
         
Average Common Shares Outstanding 25,565 26,192 -2.4%  
Diluted Common Shares Outstanding 25,585 26,262 -2.6%  
         
Per Common Share Data:        
Basic Earnings $1.73 $1.74 -0.6%  
Diluted Earnings 1.73 1.74 -0.6%  
Dividends Paid 1.14 1.14 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