Page 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of the Report (Date of earliest event reported):
July 15, 2003
Commission File Number: 001-9383
WESTAMERICA BANCORPORATION
--------------------------
(Exact name of registrant as specified in its chapter)
CALIFORNIA
----------
(State of incorporation)
94-2156203
----------
(I.R.S. Employer Identification Number)
1108 Fifth Avenue, San Rafael, California 94901
-----------------------------------------------
(Address of principal executive offices and zip code)
(707) 863-8000
--------------
(Registrant's area code and telephone number)
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Item 7: Exhibits
----------------
99.1 Press release dated July 15, 2003
Item 9: Regulation FD Disclosure
--------------------------------
(Furnished under Item 12)
This Current Report on Form 8-K is being furnished pursuant to Item 12, "Results
of Operations and Financial Condition," in accordance with interim guidance
promulgated by the Securities and Exchange Commission in Release No. 34-47583
that was issued March 27,2003. See "Item 12: Results of Operations and
Financial Condition" below.
Item 12: Results of Operations and Financial Condition
-------------------------------------------------------
On July 15, 2003 Westamerica Bancorporation announced their quarterly earnings
for the second quarter of 2003. A copy of the press release is attached as
Exhibit 99.1 to this Form 8-K and is incorporated herein by reference.
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Signatures
Pursuant to the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned hereunto duly
authorized.
Westamerica Bancorporation
/s/ DENNIS R. HANSEN
---------------------------
Dennis R. Hansen, SVP and Controller
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INDEX TO EXHIBITS
-----------------
Sequentially
Exhibit No. Description Number Page
----------- ------------------------- -------------
(99.1) Press release dated 5-15
July 15, 2003
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EXHIBIT 99.1
FOR IMMEDIATE RELEASE
July 15, 2003
WESTAMERICA BANCORPORTATION REPORTS RECORD $23.7 MILLION
QUARTERLY EARNINGS
San Rafael, CA: Westamerica Bancorporation (NASDAQ: WABC), parent company of
Westamerica Bank, today reported net income for the second quarter of 2003 of
$23.7 million, or $0.71 diluted earnings per share, compared to net income of
$23.0 million, or $0.69 diluted earnings per share, for the prior quarter.
Return on assets was 2.21 percent and return on equity was 29.3 percent for the
second quarter of 2003. Net income for the second quarter of 2002 was
$19.3 million, or $0.57 diluted earnings per share. Second quarter 2002 results
included $240 thousand after-tax merger expenses related to the acquisition of
Kerman State Bank and a $2.5 million after-tax securities impairment charge; the
after-tax merger expenses and securities impairment charge reduced second
quarter 2002 diluted earnings per share by $0.07.
"Our credit quality remains superior with net annualized charge-offs to average
loans of only 0.15 percent during the second quarter, and the June 30 allowance
for loan losses was $54.2 million, or 2.25 percent of total loans. At quarter-
end, total nonperforming assets were $9.1 million," said Chairman, President and
CEO David Payne. "Increasing fee income, expense control, and a 0.74 percent
cost of funds supported our record level of profitability in the second
quarter of 2003," Payne added.
Page 6
Net interest income on a taxable equivalent basis increased 2.3 percent to $54.3
million for the second quarter of 2003, compared to $53.1 million for the second
quarter of 2002. The second quarter 2003 net interest margin on a taxable
equivalent basis was 5.43 percent, compared with 5.82 percent for the second
quarter of 2002. The reduced net interest margin primarily resulted from earning
asset yields declining at a more rapid pace than the cost of funds.
The provision for loan losses was $900 thousand for the second quarter of 2003
unchanged from the prior quarter and second quarter of 2002. Net charge-offs for
the second quarter of 2003 totaled $895 thousand, or 0.15 percent (annualized)
of average loans compared to 0.16 percent and 0.13 percent (annualized) of
average loans for the prior quarter and second quarter of 2002, respectively. At
June 30, 2003, the allowance for loan losses was $54.2 million, or 2.25 percent
of total loans compared to $54.3 million, or 2.17 percent of total loans at June
30, 2002.
Noninterest income for the second quarter of 2003 was $11.0 million, compared to
$10.4 million for the previous quarter. The increase is attributable to
investment securities gains of $277 thousand and increased service charges on
deposit accounts, mortgage banking income, and debit card fees offset in part by
lower other income.
Noninterest expense for the second quarter of 2003 totaled $25.5 million,
essentially unchanged from $25.5 million for the prior quarter, and down 1.7
percent from $25.9 million for the second quarter of 2002. Comparing the second
quarter of 2003 to the prior quarter, lower personnel costs and core deposit
intangible amortization offset increased loan related costs and other expenses.
Second quarter 2002 noninterest expense included $400 thousand in costs
associated with the Kerman State Bank acquisition. The second quarter 2003
efficiency ratio was 39.0 percent, compared to 39.6 percent for the prior
quarter and 43.9 percent for the second quarter of 2002.
Non-performing loans and repossessed loan collateral at June 30, 2003 totaled
$9.1 million, down from $9.3 million at March 31, 2003 and $10.9 million at June
30, 2002.
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Shareholders' equity at June 30, 2003 was $357 million, up 6.0 percent from $337
million at March 31, 2003. The increase is primarily due to retained earnings of
$16 million and appreciation in the available for sale investment portfolio of
$5 million. Net issuance of the Company's common stock in the second quarter of
2003 totaled approximately 30 thousand shares. The Company's equity-to-asset
ratio was 7.8 percent at June 30, 2003 compared to 7.9 percent at June 30, 2002.
Westamerica Bancorporation, through its wholly owned subsidiary Westamerica
Bank, operates 88 branches throughout 22 Northern and Central California
counties. At June 30, 2003, the Company's total assets and total loans
outstanding were $4.6 billion and $2.4 billion, respectively.
Westamerica Bancorporation Web Address: www.westamerica.com
For additional information contact:
Westamerica Bancorporation
Robert A. Thorson - SVP & Treasurer
707-863-6840
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 annual and quarterly reports filed with the Securities
and Exchange Commission, including the Company's Form 10-Q for the quarter ended
March 31, 2003 and Form 10-K for the year ended December 31, 2002, 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 Sarbanes-Oxley Act of 2002 and the
Gramm-Leach-Bliley Act of 1999, the combination of the former Kerman State Bank
and other 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.
#####
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WESTAMERICA BANCORPORATION Public Information July 15, 2003
FINANCIAL HIGHLIGHTS
June 30, 2003
1. Net Income Summary.
(dollars in thousands except per-share data)
Q2'03 / Q2'03 / 6/30'03YTD/
Q2'03 Q2'02 Q2'02 Q1'03 Q1'03 6/30'03YTD 6/30'02YTD 6/30'02YTD
------------------------------------------------------------------------------------------
1. Net Interest Income (FTE) $54,324 $53,096 2.3% $54,062 0.5% $108,386 $105,808 2.4%
2. Loan Loss Provision 900 900 0.0% 900 0.0% 1,800 1,800 0.0%
3. Noninterest Income:
4. Investment Securities
Gains (Impairment) 277 (4,260) n/m 16 n/m 293 (4,278) n/m
5. Other 10,759 10,144 6.1% 10,359 3.9% 21,118 20,161 4.7%
-------------------------- ------------- --------------------------
6. Total Noninterest Income 11,036 5,884 87.6% 10,375 6.4% 21,411 15,883 34.8%
-------------------------- ------------- --------------------------
7. Noninterest Expense 25,476 25,909 -1.7% 25,535 -0.2% 51,011 51,602 -1.1%
8. Income Tax Provision (FTE) 15,313 12,824 19.4% 14,990 2.2% 30,303 27,283 11.1%
-------------------------- ------------- --------------------------
9. Net Income $23,671 $19,347 22.3% $23,012 2.9% $46,683 $41,006 13.8%
=========================== ============== ===========================
10.Average Shares Outstanding 33,000 33,565 -1.7% 33,110 -0.3% 33,054 33,817 -2.3%
11.Diluted Average Shares
Outstanding 33,492 34,180 -2.0% 33,565 -0.2% 33,528 34,406 -2.6%
12.Operating Ratios:
13. Basic Earnings Per Share $0.72 $0.58 24.4% $0.70 3.2% $1.41 $1.21 16.5%
14. Diluted Earnings Per Share 0.71 0.57 24.9% 0.69 3.1% 1.39 1.19 16.8%
15. Return On Assets 2.21% 1.97% 2.22% 2.21% 2.11%
16. Return On Equity 29.3% 26.7% 29.6% 29.4% 27.9%
17. Net Interest Margin 5.43% 5.82% 5.58% 5.51% 5.84%
18. Efficiency Ratio 39.0% 43.9% 39.6% 39.3% 42.4%
19.Dividends Paid Per Share $0.24 $0.22 9.1% $0.24 0.0% $0.48 $0.44 9.1%
20 Dividend Payout Ratio 34% 39% 35% 34% 37%
2. Net Interest Income.
(dollars in thousands)
Q2'03 / Q2'03 / 6/30'03YTD/
Q2'03 Q2'02 Q2'02 Q1'03 Q1'03 6/30'03YTD 6/30'02YTD 6/30'02YTD
----------------------------------------------------------------------------------------------
1. Interest and Fee Income (FTE) $61,733 $63,325 -2.5% $61,799 -0.1% $123,532 $126,457 -2.3%
2. Interest Expense 7,409 10,229 -27.6% 7,737 -4.2% 15,146 20,649 -26.7%
-------------------------- ------------- --------------------------
3. Net Interest Income (FTE) $54,324 $53,096 2.3% $54,062 0.5% $108,386 $105,808 2.4%
=========================== ============== ===========================
4. Average Earning Assets $4,007,049 $3,659,033 9.5% $3,906,020 2.6% $3,956,535 $3,645,189 8.5%
5. Average Interest-Bearing
Liabilities 2,813,895 2,558,175 10.0% 2,730,272 3.1% 2,772,083 2,559,444 8.3%
6. Yield on Earning Assets 6.17% 6.94% 6.38% 6.28% 6.98%
7. Cost of Funds 0.74% 1.12% 0.80% 0.77% 1.14%
8. Net Interest Margin 5.43% 5.82% 5.58% 5.51% 5.84%
9. Interest Expense/Interest-
Bearing Liabilities 1.05% 1.60% 1.14% 1.09% 1.62%
10.Net Interest Spread 5.12% 5.34% 5.24% 5.19% 5.36%
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WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
June 30, 2003
3. Loans & Other Earning Assets.
(average volume, dollars in thousands)
Q2'03 / Q2'03 / 6/30'03YTD/
Q2'03 Q2'02 Q2'02 Q1'03 Q1'03 6/30'03YTD 6/30'02YTD 6/30'02YTD
----------------------------------------------------------------------------------------------
1. Total Assets $4,304,387 $3,933,274 9.4% $4,201,864 2.4% 4,253,125 $3,922,167 8.4%
2. Total Earning Assets 4,007,049 3,659,033 9.5% 3,906,020 2.6% 3,956,535 3,645,189 8.5%
3. Total Loans 2,375,491 2,448,546 -3.0% 2,424,017 -2.0% 2,399,754 2,459,768 -2.4%
4. Commercial Loans 1,528,879 1,631,388 -6.3% 1,567,405 -2.5% 1,548,142 1,638,673 -5.5%
5. Consumer Loans 846,612 817,158 3.6% 856,612 -1.2% 851,612 821,095 3.7%
6. Total Investment Securities 1,631,558 1,210,487 34.8% 1,482,003 10.1% 1,556,781 1,185,421 31.3%
7. Available For Sale
(Market Value) 1,084,918 973,544 11.4% 986,413 10.0% 1,035,666 962,577 7.6%
8. Held To Maturity 546,640 236,943 130.7% 495,590 10.3% 521,115 222,844 133.8%
9. HTM Unrealized Gain
at Period-End 11,253 8,201 37.2% 10,954 2.7% 11,253 8,201 37.2%
10.Loans/Deposits 70.5% 75.9% 73.3% 71.9% 76.5%
11.Loans/Earning Assets 59.3% 66.9% 62.1% 60.7% 67.5%
4. Deposits & Other Interest-Bearing Liabilities.
(average volume, dollars in thousands)
Q2'03 / Q2'03 / 6/30'03YTD/
Q2'03 Q2'02 Q2'02 Q1'03 Q1'03 6/30'03YTD 6/30'02YTD 6/30'02YTD
----------------------------------------------------------------------------------------------
1. Total Deposits $3,370,433 $3,226,951 4.4% $3,306,929 1.9% $3,338,681 $3,216,834 3.8%
2. Noninterest Demand 1,130,608 1,052,251 7.4% 1,117,566 1.2% 1,124,087 1,032,835 8.8%
3. Interest-Bearing Transaction 559,459 531,942 5.2% 557,227 0.4% 558,343 527,114 5.9%
4. Savings 977,704 936,462 4.4% 965,313 1.3% 971,509 914,093 6.3%
5. Other Time >$100K 390,730 369,762 5.7% 348,780 12.0% 369,755 399,334 -7.4%
6. Other Time < $100K 311,932 336,534 -7.3% 318,043 -1.9% 314,988 343,459 -8.3%
7. Total Short-Term Borrowings 382,677 227,098 68.5% 348,479 9.8% 365,578 241,325 51.5%
8. Fed Funds Purchased 228,499 55,789 309.6% 175,553 30.2% 202,026 68,271 195.9%
9. Other Short-Term Funds 154,178 171,309 -10.0% 172,926 -10.8% 163,552 173,055 -5.5%
10.FHLB Debt 170,000 131,770 29.0% 170,000 0.0% 170,000 108,977 56.0%
11.Long-Term Debt 21,393 24,607 -13.1% 22,430 -4.6% 21,911 25,143 -12.9%
12.Shareholders' Equity 324,350 290,960 11.5% 315,132 2.9% 319,741 295,987 8.0%
13.Demand Deposits/Total Deposit 33.5% 32.6% 33.8% 33.7% 32.1%
14.Low-Cost Deposits/
Total Deposits 79.2% 78.1% 79.8% 79.5% 76.9%
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WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
June 30, 2003
5. Interest Yields Earned & Rates Paid.
(dollars in thousands)
Q2'03 Q2'02
----------------------------------- Q1'03 ------------------------------------- 2002
Average Income/ Yield/ Yield/ Average Income/ Yield/ Yield/
Volume Expense Rate Rate Volume Expense Rate Rate
----------------------------------------------------------------------------------------------
1. Interest Income Earned to:
2. Total Earning Assets (FTE) $4,007,049 $61,733 6.17% 6.38%$3,659,033 $63,325 6.94% 6.80%
3. Total Loans (FTE) 2,375,491 40,665 6.86% 6.97% 2,448,546 45,167 7.40% 7.30%
4. Commercial Loans (FTE) 1,528,879 28,211 7.65% 7.54% 1,631,388 30,415 7.70% 7.62%
5. Consumer Loans 846,612 12,454 5.92% 6.18% 817,158 14,752 7.07% 6.88%
6. Total Investment
Securities (FTE) 1,631,558 21,068 5.16% 5.42% 1,210,487 18,158 5.99% 5.85%
7. Interest Expense Paid to:
8. Total Earning Assets 4,007,049 7,409 0.74% 0.80% 3,659,033 10,229 1.12% 1.04%
9. Total Interest-Bearing
Liabilities 2,813,895 7,409 1.05% 1.14% 2,558,175 10,229 1.60% 1.50%
10. Total Interest-Bearing
Deposits 2,239,825 4,470 0.80% 0.91% 2,174,700 7,645 1.41% 1.30%
11. Interest-Bearing
Transaction 559,459 211 0.15% 0.18% 531,942 413 0.31% 0.29%
12. Savings 977,704 1,562 0.75% 0.83% 936,462 2,817 1.34% 1.22%
13. Other Time < $100K 390,730 1,343 1.73% 1.95% 369,762 1,817 2.51% 2.46%
14. Other Time >$100K 311,932 1,354 1.38% 1.66% 336,534 2,598 2.51% 2.30%
15. Total Short-Term Borrowings 382,677 962 1.00% 0.98% 227,098 895 1.57% 1.41%
16. Fed Funds Purchased 228,499 716 1.24% 1.25% 55,789 247 1.74% 1.62%
17. Other Short-Term Funds 154,178 246 0.64% 0.71% 171,309 648 1.52% 1.33%
18. FHLB Debt 170,000 1,592 3.72% 3.72% 131,770 1,247 3.72% 3.72%
19. Long-Term Debt 21,393 385 7.18% 7.18% 24,607 442 7.18% 7.18%
20.Net Interest Income
and Margin (FTE) $54,324 5.43% 5.58% $53,096 5.82% 5.76%
6. Noninterest Income.
(dollars in thousands)
Q2'03 / Q2'03 / 6/30'03YTD/
Q2'03 Q2'02 Q2'02 Q1'03 Q1'03 6/30'03YTD 6/30'02YTD 6/30'02YTD
----------------------------------------------------------------------------------------------
1. Service Charges on Deposit
Accounts $6,648 $5,967 11.4% $6,425 3.5% $13,073 $11,969 9.2%
2. Merchant Credit Card Income 900 963 -6.5% 862 4.4% 1,762 1,868 -5.7%
3. ATM Fees & Interchange 601 617 -2.6% 560 7.3% 1,161 1,134 2.4%
4. Debit Card Fees 563 461 22.1% 494 14.0% 1,057 867 21.9%
5. Financial Services Fees 210 425 -50.6% 207 1.4% 418 764 -45.3%
6. Mortgage Banking Income 301 217 38.7% 226 33.2% 527 404 30.4%
7. Trust Fees 277 243 14.0% 238 16.4% 516 554 -6.9%
8. Other Income 1,259 1,251 0.6% 1,347 -6.5% 2,604 2,601 0.1%
-------------------------- ------------- --------------------------
9. Sub-total 10,759 10,144 6.1% 10,359 3.9% 21,118 20,161 4.7%
10.Investment Securities
Gains (Impairment) 277 (4,260) n/m 16 n/m 293 (4,278) n/m
-------------------------- ------------- --------------------------
11.Total Noninterest Income $11,036 $5,884 87.6% $10,375 6.4% $21,411 $15,883 34.8%
========================== ============== ==========================
12.Operating Ratios:
13. Total Revenue $65,360 $58,980 10.8% $64,437 1.4% $129,797 $121,691 6.7%
14. Noninterest Income/Revenue 16.9% 10.0% 16.1% 16.5% 13.1%
15. Service Charges/Deposits
(annualized) 0.79% 0.74% 0.79% 0.79% 0.75%
16. Total Revenue Per Share
(annualized) $7.94 $7.05 12.7% $7.89 0.7% $7.92 $7.26 9.1%
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WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
June 30, 2003
7. Noninterest Expense.
(dollars in thousands)
Q2'03 / Q2'03 / 6/30'03YTD/
Q2'03 Q2'02 Q2'02 Q1'03 Q1'03 6/30'03YTD 6/30'02YTD 6/30'02YTD
----------------------------------------------------------------------------------------------
1. Salaries & Benefits $13,598 $14,281 -4.8% $13,698 -0.7% $27,296 $28,143 -3.0%
2. Occupancy 3,044 2,898 5.0% 2,995 1.6% 6,039 5,829 3.6%
3. Equipment 1,381 1,425 -3.1% 1,374 0.5% 2,755 2,859 -3.6%
4. Data Processing 1,518 1,516 0.1% 1,559 -2.6% 3,077 3,015 2.1%
5. Courier 926 916 1.1% 929 -0.3% 1,855 1,805 2.8%
6. Postage 401 397 1.0% 420 -4.5% 821 802 2.4%
7. Telephone 423 421 0.5% 425 -0.5% 848 830 2.2%
8. Professional Fees 457 443 3.2% 413 10.7% 870 815 6.7%
9. Stationery & Supplies 308 373 -17.4% 318 -3.1% 626 718 -12.8%
10.Loan Expense 380 360 5.6% 276 37.7% 656 693 -5.3%
11.Merchant Card Expense 316 347 -8.9% 342 -7.6% 658 687 -4.2%
12.Operational Losses 228 191 19.4% 173 31.8% 401 422 -5.0%
13.Amortization of Core Deposit
Intangibles 165 201 -17.9% 249 -33.7% 414 402 3.0%
14.Other Operating 2,331 2,140 8.9% 2,364 -1.4% 4,695 4,582 2.5%
-------------------------- ------------- --------------------------
15.Total Noninterest Expense $25,476 $25,909 -1.7% $25,535 -0.2% $51,011 $51,602 -1.1%
========================== ============== ==========================
16.FTE Staff 1,033 1,078 -4.2% 1,047 -1.3% 1,040 1,079 -3.6%
17.Average Assets per FTE Staff $4,167 $3,649 14.2% $4,013 3.8% $4,090 $3,635 12.5%
18.Operating Ratios:
19. Revenue per FTE Staff
(annualized) $254 $219 15.6% $250 1.7% $252 $227 10.7%
20. Noninterest Expense/Earning
Assets 2.55% 2.84% 2.65% 2.60% 2.85%
21. Noninterest Expense/Revenue 39.0% 43.9% 39.6% 39.3% 42.4%
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WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
June 30, 2003
8. Loan Loss Provision.
(dollars in thousands)
Q2'03 / Q2'03 / 6/30'03YTD/
Q2'03 Q2'02 Q2'02 Q1'03 Q1'03 6/30'03YTD 6/30'02YTD 6/30'02YTD
----------------------------------------------------------------------------------------------
1. Loan Loss Provision $900 $900 0.0% $900 0.0% $1,800 $1,800 0.0%
2. Gross Loan Losses 1,841 1,353 36.1% 2,028 -9.2% 3,869 2,997 29.1%
3. Net Loan Losses 895 773 15.8% 973 -8.0% 1,868 1,611 16.0%
4. Recoveries/Gross Losses 51% 43% 52% 52% 46%
5. Average Total Loans $2,375,491 $2,448,546 -3.0% $2,424,017 -2.0% $2,399,754 $2,459,768 -2.4%
6. Net Loan Losses/Loans
(annualized) 0.15% 0.13% 0.16% 0.16% 0.13%
7. Loan Loss Provision/Loans
(annualized) 0.15% 0.15% 0.15% 0.15% 0.15%
8. Loan Loss Provision/Net
Loan Losses 100.6% 116.4% 92.5% 96.4% 111.7%
9. Credit Quality.
(dollars in thousands)
6/30/03/ 6/30/03/
6/30/03 6/30/02 6/30/02 3/31/03 3/31/03 12/31/02 9/30/02 12/31/01
----------------------------------------------------------------------------------------------
1. Nonperforming Nonaccrual Loans $5,484 $6,980 -21.4% $6,402 -14.3% $5,717 $5,827 $5,058
2. Performing Nonaccrual Loans 1,353 3,279 -58.7% 2,471 -45.2% 3,464 3,845 3,055
-------------------------- ------------- -------------------------------------
3. Total Nonaccrual Loans 6,837 10,259 -33.4% 8,873 -22.9% 9,181 9,672 8,113
4. Accruing Loans 90+ Days
Past Due 386 189 104.2% 320 20.6% 738 257 550
-------------------------- ------------- -------------------------------------
5. Total Nonperforming Loans 7,223 10,448 -30.9% 9,193 -21.4% 9,919 9,929 8,663
6. Repossessed Collateral 1,888 473 299.2% 88 n 381 470 523
-------------------------- ------------- -------------------------------------
7. Total Nonperforming Loans &
8. Repossessed Collateral $9,111 $10,921 -16.6% $9,281 -1.8% $10,300 $10,399 $9,186
========================== ============== =====================================
9. Classified Loans $27,324 $30,029 -9.0% $32,505 -15.9% $34,001 $33,743 $22,284
========================== ============== =====================================
10.Allowance for Loan Losses $54,159 $54,324 -0.3% $54,154 0.0% $54,227 $54,447 $52,086
11.Total Loans Outstanding 2,406,889 2,507,968 -4.0% 2,456,161 -2.0% 2,494,638 2,508,272 2,484,457
12.Total Assets 4,564,692 4,072,502 12.1% 4,386,455 4.1% 4,224,867 4,209,564 3,927,967
13.Allowance for Loan Losses/Total
Loans 2.25% 2.17% 2.20% 2.17% 2.17% 2.10%
14.Nonperforming Loans/Total Loans 0.30% 0.42% 0.37% 0.40% 0.40% 0.35%
15.Nonperforming Loans &
16. Repossessed Assets/Total Assets 0.20% 0.27% 0.21% 0.24% 0.25% 0.23%
17.Allowance/Nonperforming Loans 750% 520% 589% 547% 548% 601%
18.Allowance for Loan Losses/
Classified Loans 198% 181% 167% 159% 161% 234%
19.Classified Loans/
20. (Equity + Allowance for
Loan Losses) 6.6% 8.0% 8.3% 8.6% 8.7% 6.1%
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WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
June 30, 2003
10.Capital.
(dollars in thousands, except per-share amounts)
6/30/03/ 6/30/03/
6/30/03 6/30/02 6/30/02 3/31/03 3/31/03 12/31/02 9/30/02 12/31/01
--------------------------------------------------------------------------------------------
1. Shareholders' Equity $357,311 $320,373 11.5% $336,946 6.0% $341,499 $335,440 $314,359
2. Tier I Regulatory Capital 308,534 285,068 8.2% 294,297 4.8% 300,159 293,154 283,438
3. Total Regulatory Capital 347,219 326,050 6.5% 333,545 4.1% 339,115 332,176 324,230
4. Total Assets 4,564,692 4,072,502 12.1% 4,386,455 4.1% 4,224,867 4,209,564 2,927,967
5. Risk-Adjusted Assets 3,067,976 3,062,007 0.2% 3,114,609 -1.5% 3,091,081 3,094,892 3,050,788
6. Shareholders' Equity/Total Assets 7.83% 7.87% -0.5% 7.68% 1.9% 8.08% 7.97% 8.00%
7. Shareholders' Equity/Total Loans 14.85% 12.77% 16.2% 13.72% 8.2% 13.69% 13.37% 12.65%
8. Tier I Capital/Total Assets 6.76% 7.00% -3.4% 6.71% 0.7% 7.10% 6.96% 7.22%
9. Tier I Capital/Risk-Adjusted
Assets 10.06% 9.31% 8.0% 9.45% 6.4% 9.71% 9.47% 9.29%
10.Total Capital/Risk-Adjusted
Assets 11.32% 10.65% 6.3% 10.71% 5.7% 10.97% 10.73% 10.63%
11.Shares Outstanding 32,937 33,753 -2.4% 32,907 0.1% 33,411 33,602 34,220
12.Book Value Per Share ($) $10.85 $9.49 14.3% $10.24 5.9% $10.22 $9.98 $9.19
13.Market Value Per Share ($) 43.08 39.18 10.0% 39.49 9.1% 40.18 40.28 39.57
14.Share Repurchase Programs
Q2'03 / Q2'03 / 6/30'03YTD/
Q2'03 Q2'02 Q2'02 Q1'03 Q1'03 6/30'03YTD 6/30'02YTD 6/30'02YTD
----------------------------------------------------------------------------------------------
15.Total Shares Repurchased/Canceled 118 547 -78.4% 568 -79.2% 686 1,105 -37.9%
16. Average Repurchase Price $43.35 $43.12 0.5% $40.34 7.5% $41.85 $42.14 -0.7%
17.Net Shares Repurchased/(Issued) (30) 78 -138.9% 504 -106.0% 474 467 1.4%
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WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
June 30, 2003
11.Period-End Balance Sheets.
(dollars in thousands)
6/30/03/ 6/30/03/
6/30/03 6/30/02 6/30/02 3/31/03 3/31/03 12/31/02 9/30/02 12/31/01
--------------------------------------------------------------------------------------------
1. Assets:
2. Cash and Money Market Assets $202,193 $184,222 9.8% $186,914 8.2% $223,210 $175,666 $179,716
3. Investment Securities
Available For Sale 1,251,341 986,392 26.9% 1,048,386 19.4% 947,848 1,003,833 948,970
4. Investment Securities
Held to Maturity 588,231 279,640 110.4% 520,896 12.9% 438,985 399,735 209,169
5. Loans, gross 2,406,889 2,507,968 -4.0% 2,456,161 -2.0% 2,494,638 2,508,272 2,484,457
6. Allowance For Loan Losses (54,159) (54,324) -0.3% (54,154) 0.0% (54,227) (54,447) (52,086)
-------------------------- ------------- -------------------------------------
7. Loans, net 2,352,730 2,453,644 -4.1% 2,402,007 -2.1% 2,440,411 2,453,825 2,432,371
-------------------------- ------------- -------------------------------------
9. Premises and Equipment 36,408 39,551 -7.9% 36,631 -0.6% 37,777 38,524 40,344
10. Core Deposit Intangible Assets 3,800 4,782 -20.5% 3,931 -3.3% 4,180 4,481 2,683
11. Goodwill 17,996 17,996 0.0% 17,996 0.0% 17,996 17,996 16,329
12. Interest Receivable and
Other Assets 111,993 106,275 5.4% 169,694 -34.0% 114,460 115,504 98,385
-------------------------- ------------- -------------------------------------
13.Total Assets $4,564,692 $4,072,502 12.1% $4,386,455 4.1% $4,224,867 $4,209,564 $3,927,967
========================== ============== =====================================
14.Liabilities and Shareholders' Equity:
15. Deposits:
16. Noninterest Bearing $1,184,847 $1,081,967 9.5% $1,129,455 4.9% $1,146,828 $1,105,313 $1,048,458
17. Interest-Bearing Transaction 554,568 528,226 5.0% 553,105 0.3% 559,875 521,417 519,324
18. Savings 962,267 979,289 -1.7% 980,291 -1.8% 952,319 1,008,847 863,523
19. Time 751,949 725,958 3.6% 667,237 12.7% 635,043 650,325 803,330
-------------------------- ------------- -------------------------------------
20. Total Deposits 3,453,631 3,315,440 4.2% 3,330,088 3.7% 3,294,065 3,285,902 3,234,635
-------------------------- ------------- -------------------------------------
21. Short-Term Borrowed Funds 393,287 228,635 72.0% 416,219 -5.5% 349,736 335,989 271,911
22. FHLB Debt 170,000 140,000 21.4% 170,000 170,000 170,000 40,000
24. Debt Financing and
Notes Payable 21,393 24,607 -13.1% 21,393 0.0% 24,607 24,607 27,821
25. Liability For Interest,
Taxes, and Other 169,070 43,447 289.1% 111,809 51.2% 44,960 57,626 39,241
-------------------------- ------------- -------------------------------------
26.Total Liabilities 4,207,381 3,752,129 12.1% 4,049,509 3.9% 3,883,368 3,874,124 3,613,608
-------------------------- ------------- -------------------------------------
27.Shareholders' Equity:
28. Paid-In Capital $219,060 $226,551 -3.3% $215,291 1.8% $217,198 $222,494 $209,074
29. Unrealized Gain on Investment
30. Securities Available For Sale 26,001 14,184 83.3% 20,710 25.5% 19,152 19,798 11,900
31. Retained Earnings 112,250 79,638 41.0% 100,945 11.2% 105,149 93,148 93,385
-------------------------- ------------- -------------------------------------
32.Total Shareholders' Equity 357,311 320,373 11.5% 336,946 6.0% 341,499 335,440 314,359
-------------------------- ------------- -------------------------------------
32.Total Liabilities and
Shareholders' Equity $4,564,692 $4,072,502 12.1% $4,386,455 4.1% $4,224,867 $4,209,564 $3,927,967
========================== ============== =====================================
Page 15
WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
June 30, 2003
12.Income Statements.
((dollars in thousands, except per-share amounts)
Q2'03 / Q2'03 / 6/30'03YTD/
Q2'03 Q2'02 Q2'02 Q1'03 Q1'03 6/30'03YTD 6/30'02YTD 6/30'02YTD
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1. Interest and Fee Income:
2. Loans $39,419 $43,912 -10.2% $40,413 -2.5% $79,832 $87,878 -9.2%
3. Money Market Assets and
Funds Sold 2 4 -50.0% 3 -33.3% 5 4 25.0%
4. Investment Securities
Available for Sale 12,108 12,043 0.5% 11,474 5.5% 23,582 24,187 -2.5%
5. Investment Securities
Held to Maturity 5,070 3,128 62.1% 5,235 -3.2% 10,305 5,955 73.0%
-------------------------- ------------- --------------------------
6. Total Interest Income 56,599 59,087 -4.2% 57,125 -0.9% 113,724 118,024 -3.6%
-------------------------- ------------- --------------------------
7. Interest Expense:
8. Transaction Deposits 211 413 -48.9% 242 -12.8% 453 820 -44.8%
9. Savings Deposits 1,562 2,817 -44.6% 1,708 -8.5% 3,270 5,559 -41.2%
10. Time Deposits 2,697 4,415 -38.9% 2,957 -8.8% 5,654 9,407 -39.9%
11. Short-Term Borrowed Funds 962 895 7.5% 851 13.0% 1,813 1,921 -5.6%
12. Federal Home Loan Bank
Advances 1592 1247 27.7% 1,575 1.1% 3,167 2,039 55.3%
13. Debt Financing and
Notes Payable 385 442 -12.9% 404 -4.7% 789 903 -12.6%
-------------------------- ------------- --------------------------
14.Total Interest Expense 7,409 10,229 -27.6% 7,737 -4.2% 15,146 20,649 -26.7%
-------------------------- ------------- --------------------------
15.Net Interest Income 49,190 48,858 0.7% 49,388 -0.4% 98,578 97,375 1.2%
-------------------------- ------------- --------------------------
16.Provision for Loan Losses 900 900 0.0% 900 0.0% 1,800 1,800 0.0%
-------------------------- ------------- --------------------------
17.Noninterest Income:
18. Service Charges on Deposit
Accounts 6,648 5,967 11.4% 6,425 3.5% 13,073 11,969 9.2%
19. Merchant Credit Card 900 963 -6.5% 862 4.4% 1,762 1,868 -5.7%
20. Financial Services Commissions 210 425 -50.6% 207 1.4% 418 764 -45.3%
21. Mortgage Banking 301 217 38.7% 226 33.2% 527 404 30.4%
22. Trust Fees 277 243 14.0% 238 16.4% 516 554 -6.9%
23. Securities Gains (Impairment) 277 (4,260) -106.5% 16 n/m 293 (4,278) -106.8%
24. Other 2,423 2,329 4.0% 2,401 0.9% 4,822 4,602 4.8%
-------------------------- ------------- --------------------------
25.Total Noninterest Income 11,036 5,884 87.6% 10,375 6.4% 21,411 15,883 34.8%
-------------------------- ------------- --------------------------
26.Noninterest Expense:
27. Salaries and Related Benefits 13,598 14,281 -4.8% 13,698 -0.7% 27,296 28,143 -3.0%
28. Occupancy 3,044 2,898 5.0% 2,995 1.6% 6,039 5,829 3.6%
29. Equipment 1,381 1,425 -3.1% 1,374 0.5% 2,755 2,859 -3.6%
30. Data Processing 1,518 1,516 0.1% 1,559 -2.6% 3,077 3,015 2.1%
31. Professional Fees 457 443 3.2% 413 10.7% 870 815 6.7%
32. Other 5,478 5,346 2.5% 5,496 -0.3% 10,974 10,941 0.3%
-------------------------- ------------- --------------------------
33.Total Noninterest Expense 25,476 25,909 -1.7% 25,535 -0.2% 51,011 51,602 -1.1%
-------------------------- ------------- --------------------------
34.Income Before Income Taxes 33,850 27,933 21.2% 33,328 1.6% 67,178 59,856 12.2%
35.Provision for income taxes 10,179 8,586 18.6% 10,316 -1.3% 20,495 18,850 8.7%
-------------------------- ------------- --------------------------
36.Net Income $23,671 $19,347 22.3% $23,012 2.9% $46,683 $41,006 13.8%
========================== ============== ===========================
37.Average Shares Outstanding 33,000 33,565 -1.7% 33,110 -0.3% 33,054 33,817 -2.3%
38.Diluted Average Shares
Outstanding 33,492 34,180 -2.0% 33,565 -0.2% 33,528 34,406 -2.6%
39.Per Share Data:
40. Basic Earnings $0.72 $0.58 24.4% $0.70 2.9% $1.41 $1.21 16.5%
41. Diluted Earnings 0.71 0.57 24.9% 0.69 2.9% 1.39 1.19 16.8%
42. Dividends Paid 0.24 0.22 9.1% 0.24 0.0% 0.48 0.44 9.1%