SAN RAFAEL, Calif., July 21, 2016 (GLOBE NEWSWIRE) — Westamerica Bancorporation (Nasdaq:WABC), parent company of Westamerica Bank, generated net income for the second quarter 2016 of $14.5 million and diluted earnings per common share (“EPS”) of $0.57, compared to net income of $14.2 million and EPS of $0.56 for the prior quarter, and net income of $14.8 million and EPS of $0.58 for the second quarter 2015.
“Westamerica’s revenue stream was stable from the first quarter 2016 to the second quarter 2016, with fully-taxable equivalent net interest income and noninterest income totaling $48.2 million for both quarters. Credit quality improved with nonperforming assets declining to $18.1 million at June 30, 2016 from $26.4 million at March 31, 2016. Noninterest expenses declined $630 thousand from the first quarter 2016 to the second quarter 2016,” said Chairman, President and CEO David Payne. “With stable revenues and reduced expenses, Westamerica delivered higher net income for our shareholders, generating an annualized return on shareholders’ common equity of 11 percent for the second quarter 2016. Westamerica paid its shareholders a $0.39 per share dividend in the second quarter,” concluded Payne.
The annualized net interest margin on a fully taxable equivalent basis was 3.27 percent for the second quarter 2016, compared to 3.34 percent for the prior quarter, and 3.37 percent for the second quarter 2015. Net interest income on a fully taxable equivalent basis was $36.5 million for the second quarter 2016, compared to $36.4 million for the prior quarter, and $37.4 million for the second quarter 2015. The Company’s loan portfolio has declined from the second quarter 2015 through the second quarter 2016; Management has been avoiding long-dated, low-yielding loans given historically low interest rates. Management has also maintained conservative loan underwriting, terms and conditions. During this period, the investment portfolio has grown. The changing composition of interest earning assets and low market interest rates has pressured the net interest margin. 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 second quarter 2016, unchanged from the prior quarter and down from 0.06 percent for the second quarter 2015.
The provision for loan losses was zero for the second quarter 2016, unchanged from the prior quarter and second quarter 2015. Net loan losses charged against the allowance for loan losses totaled $577 thousand for the second quarter 2016, compared to $284 thousand for the prior quarter and $359 thousand for the second quarter 2015. At June 30, 2016, the allowance for loan losses totaled $28.9 million and nonperforming loans totaled $13.9 million.
Noninterest income for the second quarter 2016 totaled $11.7 million, essentially unchanged from the prior quarter, and compared to $12.3 million for the second quarter 2015.
Noninterest expense for the second quarter 2016 totaled $25.2 million, compared to $25.9 million for the prior quarter, and $26.9 million for the second quarter 2015. Personnel costs were lower for the second quarter 2016 compared to the first quarter 2016 due to seasonally higher payroll taxes in the first quarter 2016. Personnel costs were lower for the second quarter 2016 compared to the second quarter 2015 due to lower insurance related costs. For the second quarter 2016, the cost of holding other real estate owned was offset by gains realized on the liquidation of properties.
At June 30, 2016, Westamerica Bancorporation’s tangible common equity-to-asset ratio was 8.5 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, 2015 filed on Form 10-K and quarterly report for the quarter ended March 31, 2016 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 July 21, 2016 | ||||||||||||||
| WESTAMERICA BANCORPORATION | ||||||||||||||
| FINANCIAL HIGHLIGHTS | ||||||||||||||
| June 30, 2016 | ||||||||||||||
| 1. Net Income Summary. | ||||||||||||||
| (in thousands except per-share amounts) | ||||||||||||||
| % | ||||||||||||||
| Q2’16 | Q2’15 | Change | Q1’16 | |||||||||||
| Net Interest and Fee Income (FTE) | $ | 36,495 | $ | 37,415 | -2.5 | % | $ | 36,447 | ||||||
| Provision for Loan Losses | – | – | n/m | – | ||||||||||
| Noninterest Income | 11,702 | 12,269 | -4.6 | % | 11,729 | |||||||||
| Noninterest Expense | 25,229 | 26,896 | -6.2 | % | 25,858 | |||||||||
| Income Before Taxes (FTE) | 22,968 | 22,788 | 0.8 | % | 22,318 | |||||||||
| Income Tax Provision (FTE) | 8,422 | 8,027 | 4.9 | % | 8,092 | |||||||||
| Net Income | $ | 14,546 | $ | 14,761 | -1.5 | % | $ | 14,226 | ||||||
| Average Common Shares Outstanding | 25,586 | 25,514 | 0.3 | % | 25,445 | |||||||||
| Diluted Average Common Shares | 25,630 | 25,536 | 0.4 | % | 25,468 | |||||||||
| Operating Ratios: | ||||||||||||||
| Basic Earnings Per Common Share | $ | 0.57 | $ | 0.58 | -1.7 | % | $ | 0.56 | ||||||
| Diluted Earnings Per Common Share | 0.57 | 0.58 | -1.7 | % | 0.56 | |||||||||
| Return On Assets (a) | 1.13 | % | 1.17 | % | 1.11 | % | ||||||||
| Return On Common Equity (a) | 10.9 | % | 11.5 | % | 10.9 | % | ||||||||
| Net Interest Margin (FTE) (a) | 3.27 | % | 3.37 | % | 3.34 | % | ||||||||
| Efficiency Ratio (FTE) | 52.3 | % | 54.1 | % | 53.7 | % | ||||||||
| Dividends Paid Per Common Share | $ | 0.39 | $ | 0.38 | 2.6 | % | $ | 0.39 | ||||||
| Common Dividend Payout Ratio | 68 | % | 66 | % | 70 | % | ||||||||
| % | ||||||||||||||
| 6/30’16YTD | 6/30’15YTD | Change | ||||||||||||
| Net Interest and Fee Income (FTE) | $ | 72,942 | $ | 74,345 | -1.9 | % | ||||||||
| Provision for Loan Losses | – | – | n/m | |||||||||||
| Noninterest Income | 23,431 | 24,569 | -4.6 | % | ||||||||||
| Noninterest Expense | 51,087 | 53,623 | -4.7 | % | ||||||||||
| Income Before Taxes (FTE) | 45,286 | 45,291 | 0.0 | % | ||||||||||
| Income Tax Provision (FTE) | 16,514 | 15,973 | 3.4 | % | ||||||||||
| Net Income | $ | 28,772 | $ | 29,318 | -1.9 | % | ||||||||
| Average Common Shares Outstanding | 25,516 | 25,582 | -0.3 | % | ||||||||||
| Diluted Average Common Shares | 25,549 | 25,595 | -0.2 | % | ||||||||||
| Operating Ratios: | ||||||||||||||
| Basic Earnings Per Common Share | $ | 1.13 | $ | 1.15 | -1.7 | % | ||||||||
| Diluted Earnings Per Common Share | 1.13 | 1.15 | -1.7 | % | ||||||||||
| Return On Assets (a) | 1.12 | % | 1.17 | % | ||||||||||
| Return On Common Equity (a) | 10.9 | % | 11.5 | % | ||||||||||
| Net Interest Margin (FTE) (a) | 3.30 | % | 3.40 | % | ||||||||||
| Efficiency Ratio (FTE) | 53.0 | % | 54.2 | % | ||||||||||
| Dividends Paid Per Common Share | $ | 0.78 | $ | 0.76 | 2.6 | % | ||||||||
| Common Dividend Payout Ratio | 69 | % | 66 | % | ||||||||||
| 2. Net Interest Income. | ||||||||||||||
| (dollars in thousands) | ||||||||||||||
| % | ||||||||||||||
| Q2’16 | Q2’15 | Change | Q1’16 | |||||||||||
| Interest and Fee Income (FTE) | $ | 37,036 | $ | 38,032 | -2.6 | % | $ | 36,999 | ||||||
| Interest Expense | 541 | 617 | -12.3 | % | 552 | |||||||||
| Net Interest and Fee Income (FTE) | $ | 36,495 | $ | 37,415 | -2.5 | % | $ | 36,447 | ||||||
| Average Earning Assets | $ | 4,473,700 | $ | 4,436,196 | 0.8 | % | $ | 4,381,423 | ||||||
| Average Interest- | ||||||||||||||
| Bearing Liabilities | 2,598,868 | 2,540,194 | 2.3 | % | 2,601,408 | |||||||||
| Yield on Earning Assets (FTE) (a) | 3.32 | % | 3.43 | % | 3.39 | % | ||||||||
| Cost of Funds (a) | 0.05 | % | 0.06 | % | 0.05 | % | ||||||||
| Net Interest Margin (FTE) (a) | 3.27 | % | 3.37 | % | 3.34 | % | ||||||||
| Interest Expense/ | ||||||||||||||
| Interest-Bearing Liabilities (a) | 0.08 | % | 0.10 | % | 0.09 | % | ||||||||
| Net Interest Spread (FTE) (a) | 3.24 | % | 3.33 | % | 3.30 | % | ||||||||
| % | ||||||||||||||
| 6/30’16YTD | 6/30’15YTD | Change | ||||||||||||
| Interest and Fee Income (FTE) | $ | 74,035 | $ | 75,621 | -2.1 | % | ||||||||
| Interest Expense | 1,093 | 1,276 | -14.4 | % | ||||||||||
| Net Interest and Fee Income (FTE) | $ | 72,942 | $ | 74,345 | -1.9 | % | ||||||||
| Average Earning Assets | $ | 4,427,507 | $ | 4,389,374 | 0.9 | % | ||||||||
| Average Interest- | ||||||||||||||
| Bearing Liabilities | 2,600,138 | 2,555,752 | 1.7 | % | ||||||||||
| Yield on Earning Assets (FTE) (a) | 3.35 | % | 3.46 | % | ||||||||||
| Cost of Funds (a) | 0.05 | % | 0.06 | % | ||||||||||
| Net Interest Margin (FTE) (a) | 3.30 | % | 3.40 | % | ||||||||||
| Interest Expense/ | ||||||||||||||
| Interest-Bearing Liabilities (a) | 0.08 | % | 0.10 | % | ||||||||||
| Net Interest Spread (FTE) (a) | 3.27 | % | 3.36 | % | ||||||||||
| 3. Loans & Other Earning Assets. | ||||||||||||||
| (average volume, dollars in thousands) | ||||||||||||||
| % | ||||||||||||||
| Q2’16 | Q2’15 | Change | Q1’16 | |||||||||||
| Total Assets | $ | 5,184,409 | $ | 5,044,361 | 2.8 | % | $ | 5,174,804 | ||||||
| Total Earning Assets | 4,473,700 | 4,436,196 | 0.8 | % | 4,381,423 | |||||||||
| Total Loans | 1,455,050 | 1,655,779 | -12.1 | % | 1,500,616 | |||||||||
| Commercial Loans | 356,629 | 405,891 | -12.1 | % | 370,131 | |||||||||
| Commercial RE Loans | 611,996 | 687,221 | -10.9 | % | 630,542 | |||||||||
| Consumer Loans | 486,425 | 562,667 | -13.6 | % | 499,943 | |||||||||
| Total Investment Securities | 3,018,650 | 2,780,417 | 8.6 | % | 2,880,807 | |||||||||
| Available For Sale (Market) | 1,554,014 | 1,724,126 | -9.9 | % | 1,567,335 | |||||||||
| Held To Maturity | 1,464,636 | 1,056,291 | 38.7 | % | 1,313,472 | |||||||||
| Unrealized Gain | 33,820 | 5,022 | n/m | 23,669 | ||||||||||
| Loans/Deposits | 32.1 | % | 37.7 | % | 33.1 | % | ||||||||
| % | ||||||||||||||
| 6/30’16YTD | 6/30’15YTD | Change | ||||||||||||
| Total Assets | $ | 5,179,607 | $ | 5,051,907 | 2.5 | % | ||||||||
| Total Earning Assets | 4,427,507 | 4,389,374 | 0.9 | % | ||||||||||
| Total Loans | 1,477,833 | 1,669,686 | -11.5 | % | ||||||||||
| Commercial Loans | 363,380 | 403,542 | -10.0 | % | ||||||||||
| Commercial RE Loans | 621,269 | 698,784 | -11.1 | % | ||||||||||
| Consumer Loans | 493,184 | 567,360 | -13.1 | % | ||||||||||
| Total Investment Securities | 2,949,674 | 2,719,688 | 8.5 | % | ||||||||||
| Available For Sale (Market) | 1,560,675 | 1,678,749 | -7.0 | % | ||||||||||
| Held To Maturity | 1,388,999 | 1,040,939 | 33.4 | % | ||||||||||
| Unrealized Gain | 33,820 | 5,022 | n/m | |||||||||||
| Loans/Deposits | 32.6 | % | 38.0 | % | ||||||||||
| 4. Deposits, Other Interest-Bearing Liabilities & Equity. | ||||||||||||||
| (average volume, dollars in thousands) | ||||||||||||||
| % | ||||||||||||||
| Q2’16 | Q2’15 | Change | Q1’16 | |||||||||||
| Total Deposits | $ | 4,531,751 | $ | 4,395,351 | 3.1 | % | $ | 4,537,548 | ||||||
| Noninterest Demand | 1,994,803 | 1,942,124 | 2.7 | % | 1,993,986 | |||||||||
| Interest Bearing Transaction | 855,732 | 804,512 | 6.4 | % | 872,464 | |||||||||
| Savings | 1,404,322 | 1,300,058 | 8.0 | % | 1,387,217 | |||||||||
| Time greater than $100K | 119,475 | 172,605 | -30.8 | % | 123,691 | |||||||||
| Time less than $100K | 157,419 | 176,052 | -10.6 | % | 160,190 | |||||||||
| Total Short-Term Borrowings | 61,920 | 86,967 | -28.8 | % | 57,846 | |||||||||
| Shareholders’ Equity | 537,987 | 514,768 | 4.5 | % | 527,177 | |||||||||
| Demand Deposits/ | ||||||||||||||
| Total Deposits | 44.0 | % | 44.2 | % | 43.9 | % | ||||||||
| Transaction & Savings | ||||||||||||||
| Deposits / Total Deposits | 93.9 | % | 92.1 | % | 93.7 | % | ||||||||
| % | ||||||||||||||
| 6/30’16YTD | 6/30’15YTD | Change | ||||||||||||
| Total Deposits | $ | 4,534,650 | $ | 4,399,127 | 3.1 | % | ||||||||
| Noninterest Demand | 1,994,395 | 1,931,034 | 3.3 | % | ||||||||||
| Interest Bearing Transaction | 864,098 | 807,677 | 7.0 | % | ||||||||||
| Savings | 1,395,769 | 1,296,169 | 7.7 | % | ||||||||||
| Time greater than $100K | 121,583 | 185,854 | -34.6 | % | ||||||||||
| Time less than $100K | 158,805 | 178,393 | -11.0 | % | ||||||||||
| Total Short-Term Borrowings | 59,883 | 86,662 | -30.9 | % | ||||||||||
| Federal Home Loan Bank Advances | – | 997 | n/m | |||||||||||
| Shareholders’ Equity | 532,582 | 515,423 | 3.3 | % | ||||||||||
| Demand Deposits/ | ||||||||||||||
| Total Deposits | 44.0 | % | 43.9 | % | ||||||||||
| Transaction & Savings | ||||||||||||||
| Deposits / Total Deposits | 93.8 | % | 91.7 | % | ||||||||||
| 5. Interest Yields Earned & Rates Paid. | ||||||||||||||
| (dollars in thousands) | ||||||||||||||
| Q2’16 | ||||||||||||||
| Average | Income/ | Yield (a) / | ||||||||||||
| Volume | Expense | Rate | ||||||||||||
| Interest & Fee Income Earned | ||||||||||||||
| Total Earning Assets (FTE) | $ | 4,473,700 | $ | 37,036 | 3.32 | % | ||||||||
| Total Loans (FTE) | 1,455,050 | 17,897 | 4.95 | % | ||||||||||
| Commercial Loans (FTE) | 356,629 | 4,197 | 4.73 | % | ||||||||||
| Commercial RE Loans | 611,996 | 9,538 | 6.27 | % | ||||||||||
| Consumer Loans | 486,425 | 4,162 | 3.44 | % | ||||||||||
| Total Investments (FTE) | 3,018,650 | 19,139 | 2.53 | % | ||||||||||
| Interest Expense Paid | ||||||||||||||
| Total Earning Assets | 4,473,700 | 541 | 0.05 | % | ||||||||||
| Total Interest-Bearing Liabilities | 2,598,868 | 541 | 0.08 | % | ||||||||||
| Total Interest-Bearing Deposits | 2,536,948 | 531 | 0.08 | % | ||||||||||
| Interest-Bearing Transaction | 855,732 | 67 | 0.03 | % | ||||||||||
| Savings | 1,404,322 | 225 | 0.06 | % | ||||||||||
| Time less than $100K | 157,419 | 104 | 0.27 | % | ||||||||||
| Time greater than $100K | 119,475 | 135 | 0.45 | % | ||||||||||
| Total Short-Term Borrowings | 61,920 | 10 | 0.07 | % | ||||||||||
| Net Interest Income and | ||||||||||||||
| Margin (FTE) | $ | 36,495 | 3.27 | % | ||||||||||
| Q2’15 | ||||||||||||||
| Average | Income/ | Yield (a) / | ||||||||||||
| Volume | Expense | Rate | ||||||||||||
| Interest & Fee Income Earned | ||||||||||||||
| Total Earning Assets (FTE) | $ | 4,436,196 | $ | 38,032 | 3.43 | % | ||||||||
| Total Loans (FTE) | 1,655,779 | 20,424 | 4.95 | % | ||||||||||
| Commercial Loans (FTE) | 405,891 | 4,922 | 4.86 | % | ||||||||||
| Commercial RE Loans | 687,221 | 10,524 | 6.14 | % | ||||||||||
| Consumer Loans | 562,667 | 4,978 | 3.55 | % | ||||||||||
| Total Investments (FTE) | 2,780,417 | 17,608 | 2.53 | % | ||||||||||
| Interest Expense Paid | ||||||||||||||
| Total Earning Assets | 4,436,196 | 617 | 0.06 | % | ||||||||||
| Total Interest-Bearing Liabilities | 2,540,194 | 617 | 0.10 | % | ||||||||||
| Total Interest-Bearing Deposits | 2,453,227 | 601 | 0.10 | % | ||||||||||
| Interest-Bearing Transaction | 804,512 | 62 | 0.03 | % | ||||||||||
| Savings | 1,300,058 | 207 | 0.06 | % | ||||||||||
| Time less than $100K | 176,052 | 150 | 0.34 | % | ||||||||||
| Time greater than $100K | 172,605 | 182 | 0.42 | % | ||||||||||
| Total Short-Term Borrowings | 86,967 | 16 | 0.07 | % | ||||||||||
| Net Interest Income and | ||||||||||||||
| Margin (FTE) | $ | 37,415 | 3.37 | % | ||||||||||
| 6. Noninterest Income. | ||||||||||||||
| (dollars in thousands except per-share amounts) | ||||||||||||||
| % | ||||||||||||||
| Q2’16 | Q2’15 | Change | Q1’16 | |||||||||||
| Service Charges on Deposits | $ | 5,239 | $ | 5,694 | -8.0 | % | $ | 5,248 | ||||||
| Merchant Processing Services | 1,638 | 1,783 | -8.1 | % | 1,529 | |||||||||
| Debit Card Fees | 1,621 | 1,534 | 5.7 | % | 1,516 | |||||||||
| Other Service Fees | 650 | 683 | -4.8 | % | 629 | |||||||||
| ATM Processing Fees | 603 | 627 | -4.0 | % | 658 | |||||||||
| Trust Fees | 657 | 672 | -2.2 | % | 661 | |||||||||
| Financial Services Commissions | 137 | 198 | -31.0 | % | 156 | |||||||||
| Other Income | 1,157 | 1,078 | 7.3 | % | 1,332 | |||||||||
| Total Noninterest Income | $ | 11,702 | $ | 12,269 | -4.6 | % | $ | 11,729 | ||||||
| Total Revenue (FTE) | $ | 48,197 | $ | 49,684 | -3.0 | % | $ | 48,176 | ||||||
| Noninterest Income/Revenue (FTE) | 24.3 | % | 24.7 | % | 24.3 | % | ||||||||
| Service Charges/Avg. Deposits (a) | 0.46 | % | 0.52 | % | 0.47 | % | ||||||||
| Total Revenues (FTE) Per Avg. | ||||||||||||||
| Common Share (a) | $ | 7.58 | $ | 7.81 | -3.0 | % | $ | 7.61 | ||||||
| % | ||||||||||||||
| 6/30’16YTD | 6/30’15YTD | Change | ||||||||||||
| Service Charges on Deposits | $ | 10,487 | $ | 11,401 | -8.0 | % | ||||||||
| Merchant Processing Services | 3,167 | 3,486 | -9.1 | % | ||||||||||
| Debit Card Fees | 3,137 | 2,990 | 4.9 | % | ||||||||||
| Other Service Fees | 1,279 | 1,348 | -5.1 | % | ||||||||||
| ATM Processing Fees | 1,261 | 1,212 | 4.0 | % | ||||||||||
| Trust Fees | 1,318 | 1,378 | -4.4 | % | ||||||||||
| Financial Services Commissions | 293 | 351 | -16.6 | % | ||||||||||
| Other Income | 2,489 | 2,403 | 3.6 | % | ||||||||||
| Total Noninterest Income | $ | 23,431 | $ | 24,569 | -4.6 | % | ||||||||
| Total Revenue (FTE) | $ | 96,373 | $ | 98,914 | -2.6 | % | ||||||||
| Noninterest Income/Revenue (FTE) | 24.3 | % | 24.8 | % | ||||||||||
| Service Charges/Avg. Deposits (a) | 0.47 | % | 0.52 | % | ||||||||||
| Total Revenues (FTE) Per Avg. | ||||||||||||||
| Common Share (a) | $ | 7.60 | $ | 7.80 | -2.6 | % | ||||||||
| 7. Noninterest Expense. | ||||||||||||||
| (dollars in thousands) | ||||||||||||||
| % | ||||||||||||||
| Q2’16 | Q2’15 | Change | Q1’16 | |||||||||||
| Salaries & Benefits | $ | 12,887 | $ | 13,696 | -5.9 | % | $ | 13,117 | ||||||
| Occupancy | 3,400 | 3,726 | -8.8 | % | 3,398 | |||||||||
| Outsourced Data Processing | 2,130 | 2,111 | 0.9 | % | 2,130 | |||||||||
| Amortization of | ||||||||||||||
| Identifiable Intangibles | 870 | 955 | -8.9 | % | 905 | |||||||||
| Professional Fees | 758 | 582 | 30.2 | % | 732 | |||||||||
| Furniture & Equipment | 1,187 | 1,158 | 2.5 | % | 1,213 | |||||||||
| Other Real Estate Owned | (392 | ) | 52 | n/m | 111 | |||||||||
| Courier Service | 462 | 598 | -22.6 | % | 545 | |||||||||
| Other Operating | 3,927 | 4,018 | -2.3 | % | 3,707 | |||||||||
| Total Noninterest Expense | $ | 25,229 | $ | 26,896 | -6.2 | % | $ | 25,858 | ||||||
| Noninterest Expense/ | ||||||||||||||
| Avg. Earning Assets (a) | 2.27 | % | 2.43 | % | 2.37 | % | ||||||||
| Noninterest Expense/Revenues (FTE) | 52.3 | % | 54.1 | % | 53.7 | % | ||||||||
| % | ||||||||||||||
| 6/30’16YTD | 6/30’15YTD | Change | ||||||||||||
| Salaries & Benefits | $ | 26,004 | $ | 27,034 | -3.8 | % | ||||||||
| Occupancy | 6,798 | 7,453 | -8.8 | % | ||||||||||
| Outsourced Data Processing | 4,260 | 4,219 | 1.0 | % | ||||||||||
| Amortization of | ||||||||||||||
| Identifiable Intangibles | 1,775 | 1,956 | -9.3 | % | ||||||||||
| Professional Fees | 1,490 | 1,130 | 31.8 | % | ||||||||||
| Furniture & Equipment | 2,400 | 2,277 | 5.4 | % | ||||||||||
| Other Real Estate Owned | (281 | ) | 367 | n/m | ||||||||||
| Courier Service | 1,007 | 1,141 | -11.7 | % | ||||||||||
| Other Operating | 7,634 | 8,046 | -5.1 | % | ||||||||||
| Total Noninterest Expense | $ | 51,087 | $ | 53,623 | -4.7 | % | ||||||||
| Noninterest Expense/ | ||||||||||||||
| Avg. Earning Assets (a) | 2.32 | % | 2.46 | % | ||||||||||
| Noninterest Expense/Revenues (FTE) | 53.0 | % | 54.2 | % | ||||||||||
| 8. Provision for Loan Losses. | ||||||||||||||
| (dollars in thousands) | ||||||||||||||
| % | ||||||||||||||
| Q2’16 | Q2’15 | Change | Q1’16 | |||||||||||
| Average Total Loans | $ | 1,455,050 | $ | 1,655,779 | -12.1 | % | $ | 1,500,616 | ||||||
| Allowance for Loan Loss (ALL) | ||||||||||||||
| Beginning of Period | $ | 29,487 | $ | 31,187 | -5.5 | % | $ | 29,771 | ||||||
| Provision for Loan Losses | – | – | n/m | – | ||||||||||
| Net ALL Losses | (577 | ) | (359 | ) | 60.7 | % | (284 | ) | ||||||
| ALL End of Period | $ | 28,910 | $ | 30,828 | -6.2 | % | $ | 29,487 | ||||||
| ALL Recoveries/Gross ALL Losses | 61 | % | 74 | % | 87 | % | ||||||||
| Net ALL Losses/Avg. Total Loans (a) | 0.16 | % | 0.09 | % | 0.08 | % | ||||||||
| % | ||||||||||||||
| 6/30’16YTD | 6/30’15YTD | Change | ||||||||||||
| Average Total Loans | $ | 1,477,833 | $ | 1,669,686 | -11.5 | % | ||||||||
| Allowance for Loan Loss (ALL) | ||||||||||||||
| Beginning of Period | $ | 29,771 | $ | 31,485 | -5.4 | % | ||||||||
| Provision for Loan Losses | – | – | n/m | |||||||||||
| Net ALL Losses | (861 | ) | (657 | ) | 30.9 | % | ||||||||
| ALL End of Period | $ | 28,910 | $ | 30,828 | -6.2 | % | ||||||||
| ALL Recoveries/Gross ALL Losses | 76 | % | 73 | % | ||||||||||
| Net ALL Losses/Avg. Total Loans (a) | 0.12 | % | 0.08 | % | ||||||||||
| 9. Credit Quality. | ||||||||||||||
| (dollars in thousands) | ||||||||||||||
| % | ||||||||||||||
| 6/30/16 | 6/30/15 | Change | 3/31/16 | |||||||||||
| Nonperforming Originated Loans: | ||||||||||||||
| Nonperforming Nonaccrual | $ | 1,693 | $ | 6,269 | -73.0 | % | $ | 9,205 | ||||||
| Performing Nonaccrual | 6,890 | 11 | n/m | 1,841 | ||||||||||
| Total Nonaccrual Loans | 8,583 | 6,280 | 36.7 | % | 11,046 | |||||||||
| 90+ Days Past Due Accruing Loans | 303 | 221 | 37.1 | % | 183 | |||||||||
| Total | 8,886 | 6,501 | 36.7 | % | 11,229 | |||||||||
| Repossessed Originated Loan Collateral | 1,089 | 5,906 | -81.6 | % | 4,786 | |||||||||
| Total Nonperforming | ||||||||||||||
| Originated Assets | 9,975 | 12,407 | -19.6 | % | 16,015 | |||||||||
| Nonperforming Purchased Covered Loans (1): | ||||||||||||||
| Nonperforming Nonaccrual | 29 | 3 | n/m | – | ||||||||||
| Performing Nonaccrual | – | – | n/m | – | ||||||||||
| Total Nonaccrual Loans | 29 | 3 | n/m | – | ||||||||||
| 90+ Days Past Due Accruing Loans | – | – | n/m | – | ||||||||||
| Total | 29 | 3 | n/m | – | ||||||||||
| Repossessed Purchased Covered | ||||||||||||||
| Loan Collateral (1) | – | 486 | n/m | – | ||||||||||
| Total Nonperforming Purchased | ||||||||||||||
| Covered Assets (1) | 29 | 489 | n/m | – | ||||||||||
| Nonperforming Purchased Non-Covered Loans (2): | ||||||||||||||
| Nonperforming Nonaccrual | 4,805 | 9,937 | -51.6 | % | 6,601 | |||||||||
| Performing Nonaccrual | 148 | 5 | n/m | 80 | ||||||||||
| Total Nonaccrual Loans | 4,953 | 9,942 | -50.2 | % | 6,681 | |||||||||
| 90+ Days Past Due Accruing Loans | 53 | – | n/m | 77 | ||||||||||
| Total | 5,006 | 9,942 | -49.6 | % | 6,758 | |||||||||
| Repossessed Purchased Non-Covered | ||||||||||||||
| Loan Collateral (2) | 3,073 | 2,868 | 7.2 | % | 3,652 | |||||||||
| Total Nonperforming Purchased | ||||||||||||||
| Non-Covered Assets (2) | 8,079 | 12,810 | -36.9 | % | 10,410 | |||||||||
| Total Nonperforming Assets | $ | 18,083 | $ | 25,706 | -29.7 | % | $ | 26,425 | ||||||
| Total Originated Loans Outstanding | $ | 1,280,194 | $ | 1,425,047 | -10.2 | % | $ | 1,310,083 | ||||||
| Total Purchased Covered | ||||||||||||||
| Loans Outstanding (1) | 12,777 | 15,109 | -15.4 | % | 13,664 | |||||||||
| Total Purchased Non-Covered | ||||||||||||||
| Loans Outstanding (2) | 136,589 | 191,115 | -28.5 | % | 149,449 | |||||||||
| Total Loans Outstanding | $ | 1,429,560 | $ | 1,631,271 | -12.4 | % | $ | 1,473,196 | ||||||
| Total Assets | $ | 5,179,085 | $ | 5,031,230 | 2.9 | % | $ | 5,199,868 | ||||||
| Loans: | ||||||||||||||
| Allowance for Loan Losses | $ | 28,910 | $ | 30,828 | -6.2 | % | $ | 29,487 | ||||||
| Allowance/Loans | 2.02 | % | 1.89 | % | 2.00 | % | ||||||||
| Nonperforming Loans/Total Loans | 0.97 | % | 1.01 | % | 1.22 | % | ||||||||
| Purchased Covered Loans (1): | ||||||||||||||
| Fair Value Discount on Purchased | ||||||||||||||
| Covered Loans | – | $ | 197 | $ | 18 | |||||||||
| Discount/Purchased Covered | ||||||||||||||
| Loans, gross | 0.00 | % | 1.29 | % | 0.13 | % | ||||||||
| Nonperforming Purchased Covered Loans/ | ||||||||||||||
| Total Purchased Covered Loans | 0.23 | % | 0.02 | % | 0.00 | % | ||||||||
| Purchased Non-Covered Loans (2): | ||||||||||||||
| Fair Value Discount on Purchased | ||||||||||||||
| Non-Covered Loans | $ | 5,411 | $ | 7,780 | $ | 6,084 | ||||||||
| Discount/Purchased Non-Covered | 3.81 | % | 3.91 | % | 3.91 | % | ||||||||
| Loans, gross | ||||||||||||||
| Nonperforming Purchased Non-Covered Loans/ | ||||||||||||||
| Total Purchased Non-Covered Loans | 3.66 | % | 5.20 | % | 4.52 | % | ||||||||
| 10. Capital. | ||||||||||||||
| (in thousands, except per-share amounts) | ||||||||||||||
| % | ||||||||||||||
| 6/30/16 | 6/30/15 | Change | 3/31/16 | |||||||||||
| Shareholders’ Equity | $ | 558,327 | $ | 525,338 | 6.3 | % | $ | 538,973 | ||||||
| Total Assets | 5,179,085 | 5,031,230 | 2.9 | % | 5,199,868 | |||||||||
| Shareholders’ Equity/ | ||||||||||||||
| Total Assets | 10.78 | % | 10.44 | % | 10.37 | % | ||||||||
| Shareholders’ Equity/ | ||||||||||||||
| Total Loans | 39.06 | % | 32.20 | % | 36.59 | % | ||||||||
| Tangible Common Equity Ratio | 8.48 | % | 7.99 | % | 8.04 | % | ||||||||
| Common Shares Outstanding | 25,632 | 25,529 | 0.4 | % | 25,438 | |||||||||
| Common Equity Per Share | $ | 21.78 | $ | 20.58 | 5.9 | % | $ | 21.19 | ||||||
| Market Value Per Common Share | $ | 49.26 | $ | 50.65 | -2.7 | % | $ | 48.71 | ||||||
| Share Repurchase Programs | ||||||||||||||
| (shares in thousands) | ||||||||||||||
| % | ||||||||||||||
| Q2’16 | Q2’15 | Change | Q1’16 | |||||||||||
| Total Shares Repurchased | 7 | 133 | -94.6 | % | 130 | |||||||||
| Average Repurchase Price | $ | 49.35 | $ | 43.89 | 12.5 | % | $ | 41.53 | ||||||
| Net Shares (Issued) Repurchased | (194 | ) | 34 | n/m | 90 | |||||||||
| % | ||||||||||||||
| 6/30’16YTD | 6/30’15YTD | Change | ||||||||||||
| Total Shares Repurchased | 137 | 316 | -56.4 | % | ||||||||||
| Average Repurchase Price | $ | 41.94 | $ | 43.37 | -3.3 | % | ||||||||
| Net Shares (Issued) Repurchased | (104 | ) | 216 | -148.2 | % | |||||||||
| 11. Period-End Balance Sheets. | ||||||||||||||
| (unaudited, dollars in thousands) | ||||||||||||||
| % | ||||||||||||||
| 6/30/16 | 6/30/15 | Change | 3/31/16 | |||||||||||
| Assets: | ||||||||||||||
| Cash and Due from Banks | $ | 441,785 | $ | 289,606 | 52.5 | % | $ | 471,164 | ||||||
| Investment Securities: | ||||||||||||||
| Available For Sale | 1,531,035 | 1,634,878 | -6.4 | % | 1,585,970 | |||||||||
| Held to Maturity | 1,473,357 | 1,159,581 | 27.1 | % | 1,358,139 | |||||||||
| Loans | 1,429,560 | 1,631,271 | -12.4 | % | 1,473,196 | |||||||||
| Allowance For Loan Losses | (28,910 | ) | (30,828 | ) | -6.2 | % | (29,487 | ) | ||||||
| Total Loans, net | 1,400,650 | 1,600,443 | -12.5 | % | 1,443,709 | |||||||||
| Other Real Estate Owned | 4,162 | 9,260 | -55.1 | % | 8,438 | |||||||||
| Premises and Equipment, net | 37,759 | 37,945 | -0.5 | % | 38,045 | |||||||||
| Identifiable Intangibles, net | 8,656 | 12,331 | -29.8 | % | 9,526 | |||||||||
| Goodwill | 121,673 | 121,673 | 0.0 | % | 121,673 | |||||||||
| Other Assets | 160,008 | 165,513 | -3.3 | % | 163,204 | |||||||||
| Total Assets | $ | 5,179,085 | $ | 5,031,230 | 2.9 | % | $ | 5,199,868 | ||||||
| Liabilities and Shareholders’ Equity: | ||||||||||||||
| Deposits: | ||||||||||||||
| Noninterest Bearing | $ | 1,978,947 | $ | 1,930,551 | 2.5 | % | $ | 1,989,010 | ||||||
| Interest-Bearing Transaction | 827,857 | 795,793 | 4.0 | % | 855,008 | |||||||||
| Savings | 1,404,840 | 1,287,859 | 9.1 | % | 1,393,919 | |||||||||
| Time | 273,670 | 340,641 | -19.7 | % | 278,813 | |||||||||
| Total Deposits | 4,485,314 | 4,354,844 | 3.0 | % | 4,516,750 | |||||||||
| Short-Term Borrowed Funds | 67,852 | 82,747 | -18.0 | % | 52,451 | |||||||||
| Other Liabilities | 67,592 | 68,301 | -1.0 | % | 91,694 | |||||||||
| Total Liabilities | 4,620,758 | 4,505,892 | 2.5 | % | 4,660,895 | |||||||||
| Shareholders’ Equity: | ||||||||||||||
| Common Equity: | ||||||||||||||
| Paid-In Capital | 391,213 | 380,050 | 2.9 | % | 381,426 | |||||||||
| Accumulated Other | ||||||||||||||
| Comprehensive Income | 11,885 | 3,988 | 198.0 | % | 6,619 | |||||||||
| Retained Earnings | 155,229 | 141,300 | 9.9 | % | 150,928 | |||||||||
| Total Shareholders’ Equity | 558,327 | 525,338 | 6.3 | % | 538,973 | |||||||||
| Total Liabilities and | ||||||||||||||
| Shareholders’ Equity | $ | 5,179,085 | $ | 5,031,230 | 2.9 | % | $ | 5,199,868 | ||||||
| 12. Income Statements. | ||||||||||||||
| (unaudited, in thousands except per-share amounts) | ||||||||||||||
| % | ||||||||||||||
| Q2’16 | Q2’15 | Change | Q1’16 | |||||||||||
| Interest & Fee Income: | ||||||||||||||
| Loans | $ | 17,583 | $ | 20,035 | -12.2 | % | $ | 18,353 | ||||||
| Investment Securities: | ||||||||||||||
| Available for Sale | 8,091 | 7,999 | 1.1 | % | 7,967 | |||||||||
| Held to Maturity | 8,053 | 6,391 | 26.0 | % | 7,327 | |||||||||
| Total Interest & Fee Income | 33,727 | 34,425 | -2.0 | % | 33,647 | |||||||||
| Interest Expense: | ||||||||||||||
| Transaction Deposits | 67 | 62 | 7.2 | % | 70 | |||||||||
| Savings Deposits | 225 | 207 | 8.5 | % | 223 | |||||||||
| Time Deposits | 239 | 332 | -28.0 | % | 250 | |||||||||
| Short-Term Borrowed Funds | 10 | 16 | -35.2 | % | 9 | |||||||||
| Total Interest Expense | 541 | 617 | -12.3 | % | 552 | |||||||||
| Net Interest Income | 33,186 | 33,808 | -1.8 | % | 33,095 | |||||||||
| Provision for Loan Losses | – | – | n/m | – | ||||||||||
| Noninterest Income: | ||||||||||||||
| Service Charges | 5,239 | 5,694 | -8.0 | % | 5,248 | |||||||||
| Merchant Processing Services | 1,638 | 1,783 | -8.1 | % | 1,529 | |||||||||
| Debit Card Fees | 1,621 | 1,534 | 5.7 | % | 1,516 | |||||||||
| Other Service Fees | 650 | 683 | -4.8 | % | 629 | |||||||||
| ATM Processing Fees | 603 | 627 | -4.0 | % | 658 | |||||||||
| Trust Fees | 657 | 672 | -2.2 | % | 661 | |||||||||
| Financial Services Commissions | 137 | 198 | -31.0 | % | 156 | |||||||||
| Other | 1,157 | 1,078 | 7.3 | % | 1,332 | |||||||||
| Total Noninterest Income | 11,702 | 12,269 | -4.6 | % | 11,729 | |||||||||
| Noninterest Expense: | ||||||||||||||
| Salaries and Benefits | 12,887 | 13,696 | -5.9 | % | 13,117 | |||||||||
| Occupancy | 3,400 | 3,726 | -8.8 | % | 3,398 | |||||||||
| Outsourced Data Processing | 2,130 | 2,111 | 0.9 | % | 2,130 | |||||||||
| Amortization of Identifiable Intangibles | 870 | 955 | -8.9 | % | 905 | |||||||||
| Professional Fees | 758 | 582 | 30.2 | % | 732 | |||||||||
| Furniture & Equipment | 1,187 | 1,158 | 2.5 | % | 1,213 | |||||||||
| Other Real Estate Owned | (392 | ) | 52 | n/m | 111 | |||||||||
| Courier Service | 462 | 598 | -22.6 | % | 545 | |||||||||
| Other | 3,927 | 4,018 | -2.3 | % | 3,707 | |||||||||
| Total Noninterest Expense | 25,229 | 26,896 | -6.2 | % | 25,858 | |||||||||
| Income Before Income Taxes | 19,659 | 19,181 | 2.5 | % | 18,966 | |||||||||
| Income Tax Provision | 5,113 | 4,420 | 15.7 | % | 4,740 | |||||||||
| Net Income | $ | 14,546 | $ | 14,761 | -1.5 | % | $ | 14,226 | ||||||
| Average Common Shares Outstanding | 25,586 | 25,514 | 0.3 | % | 25,445 | |||||||||
| Diluted Common Shares Outstanding | 25,630 | 25,536 | 0.4 | % | 25,468 | |||||||||
| Per Common Share Data: | ||||||||||||||
| Basic Earnings | $ | 0.57 | $ | 0.58 | -1.7 | % | $ | 0.56 | ||||||
| Diluted Earnings | 0.57 | 0.58 | -1.7 | % | 0.56 | |||||||||
| Dividends Paid | 0.39 | 0.38 | 2.6 | % | 0.39 | |||||||||
| % | ||||||||||||||
| 6/30’16YTD | 6/30’15YTD | Change | ||||||||||||
| Interest & Fee Income: | ||||||||||||||
| Loans | $ | 35,936 | $ | 40,265 | -10.7 | % | ||||||||
| Investment Securities: | ||||||||||||||
| Available for Sale | 16,058 | 15,468 | 3.8 | % | ||||||||||
| Held to Maturity | 15,380 | 12,609 | 22.0 | % | ||||||||||
| Total Interest & Fee Income | 67,374 | 68,342 | -1.4 | % | ||||||||||
| Interest Expense: | ||||||||||||||
| Transaction Deposits | 137 | 125 | 9.2 | % | ||||||||||
| Savings Deposits | 448 | 423 | 5.7 | % | ||||||||||
| Time Deposits | 489 | 695 | -29.6 | % | ||||||||||
| Short-Term Borrowed Funds | 19 | 32 | -38.8 | % | ||||||||||
| Federal Home Loan Bank Advances | – | 1 | n/m | |||||||||||
| Total Interest Expense | 1,093 | 1,276 | -14.4 | % | ||||||||||
| Net Interest Income | 66,281 | 67,066 | -1.2 | % | ||||||||||
| Provision for Loan Losses | – | – | n/m | |||||||||||
| Noninterest Income: | ||||||||||||||
| Service Charges | 10,487 | 11,401 | -8.0 | % | ||||||||||
| Merchant Processing Services | 3,167 | 3,486 | -9.1 | % | ||||||||||
| Debit Card Fees | 3,137 | 2,990 | 4.9 | % | ||||||||||
| Other Service Fees | 1,279 | 1,348 | -5.1 | % | ||||||||||
| ATM Processing Fees | 1,261 | 1,212 | 4.0 | % | ||||||||||
| Trust Fees | 1,318 | 1,378 | -4.4 | % | ||||||||||
| Financial Services Commissions | 293 | 351 | -16.6 | % | ||||||||||
| Other | 2,489 | 2,403 | 3.6 | % | ||||||||||
| Total Noninterest Income | 23,431 | 24,569 | -4.6 | % | ||||||||||
| Noninterest Expense: | ||||||||||||||
| Salaries and Benefits | 26,004 | 27,034 | -3.8 | % | ||||||||||
| Occupancy | 6,798 | 7,453 | -8.8 | % | ||||||||||
| Outsourced Data Processing | 4,260 | 4,219 | 1.0 | % | ||||||||||
| Amortization of Identifiable Intangibles | 1,775 | 1,956 | -9.3 | % | ||||||||||
| Professional Fees | 1,490 | 1,130 | 31.8 | % | ||||||||||
| Furniture & Equipment | 2,400 | 2,277 | 5.4 | % | ||||||||||
| Other Real Estate Owned | (281 | ) | 367 | n/m | ||||||||||
| Courier Service | 1,007 | 1,141 | -11.7 | % | ||||||||||
| Other | 7,634 | 8,046 | -5.1 | % | ||||||||||
| Total Noninterest Expense | 51,087 | 53,623 | -4.7 | % | ||||||||||
| Income Before Income Taxes | 38,625 | 38,012 | 1.6 | % | ||||||||||
| Income Tax Provision | 9,853 | 8,694 | 13.3 | % | ||||||||||
| Net Income | $ | 28,772 | $ | 29,318 | -1.9 | % | ||||||||
| Average Common Shares Outstanding | 25,516 | 25,582 | -0.3 | % | ||||||||||
| Diluted Common Shares Outstanding | 25,549 | 25,595 | -0.2 | % | ||||||||||
| Per Common Share Data: | ||||||||||||||
| Basic Earnings | $ | 1.13 | $ | 1.15 | -1.7 | % | ||||||||
| Diluted Earnings | 1.13 | 1.15 | -1.7 | % | ||||||||||
| Dividends Paid | 0.78 | 0.76 | 2.6 | % | ||||||||||
| 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, which is a non-generally accepted accounting principles (GAAP) financial measure. 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) 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 [email protected]