SAN RAFAEL, Calif., Jan. 19, 2017 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq:WABC), parent company of Westamerica Bank, generated net income for the fourth quarter 2016 of $14.5 million and diluted earnings per common share ("EPS") of $0.56, compared to net income of $14.6 million and EPS of $0.57 for the fourth quarter 2015, and compared to net income of $15.6 million and EPS of $0.61 for the third quarter 2016. The provision for loan losses was zero in the fourth quarter 2016 and in the fourth quarter 2015, while third quarter 2016 results included a $3.2 million reversal of provision for loan losses due to improved credit quality in the quarter and higher operating expenses for legal expenses related to loan administration and collection efforts.

"Originated loan volumes declined one-half of one percent from September 30, 2016 to December 31, 2016, which represents improved results. Westamerica’s strategy following the 'great recession' has been to minimize interest rate risk by avoiding longer dated loans priced at historically low interest rates, which resulted in declining loan volumes. Our annualized fully tax equivalent net interest margin was 3.15 percent for the fourth quarter 2016; yields on loans and investment securities declined due to low market interest rates. Management has continued to focus on operating cost reductions in light of the market based pressures on our revenue. For the full year 2016, noninterest expenses were 3.4 percent lower than for 2015,” said Chairman, President and CEO David Payne. “Westamerica continued to generate relatively high returns within our industry, realizing a return on shareholders’ common equity of 10.9 percent for 2016. Total 2016 shareholder dividends of $1.56 per common share represent the highest level in the Company’s history,” concluded Payne.

The annualized net interest margin on a fully taxable equivalent basis was 3.15 percent for the fourth quarter 2016, compared to 3.21 percent for the prior quarter, and 3.32 percent for the fourth quarter 2015. Net interest income on a fully taxable equivalent basis was $36.0 million for the fourth quarter 2016, compared to $36.2 million for the prior quarter, and $36.7 million for the fourth quarter 2015. The Company’s loan portfolio declined from the fourth quarter 2015 through the fourth quarter 2016; Management has avoided originating long-term, 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 and net interest income. The funding cost of deposits and other interest-bearing borrowings, as a percentage of average loans and investment securities, was 0.04 percent for the fourth quarter 2016, an improvement from 0.05 percent for both the prior quarter and the fourth quarter 2015. Checking and savings deposits, which earn relatively low interest rates and are less volatile than time deposits during periods of rising market interest rates, represented 94 percent of average total deposits during the fourth quarter 2016.

The provision for loan losses was zero for the fourth quarter 2016 and for the fourth quarter 2015; loan losses exceeded loan loss recoveries by $405 thousand for the fourth quarter 2016 and by $265 thousand for the fourth quarter 2015. During the third quarter 2016, loan loss recoveries exceeded loan losses by $649 thousand and nonperforming loans declined $7.1 million, or 51 percent; given the improvement in credit quality, Westamerica recorded a reversal of the provision for loan losses of $3.2 million for the third quarter 2016. At December 31, 2016, the allowance for loan losses totaled $26.0 million.

Noninterest income for the fourth quarter 2016 totaled $11.5 million, compared to $11.6 million for the prior quarter and $11.3 million for the fourth quarter 2015.

Noninterest expense for the fourth quarter 2016 totaled $24.6 million, reduced from $26.1 million for the prior quarter; the decline is attributable to higher third quarter 2016 legal fees related to loan administration and collection efforts as well as fourth quarter 2016 declines in personnel and occupancy costs. Noninterest expense for the fourth quarter 2016 also declined compared to noninterest expense of $25.5 million for the fourth quarter 2015; the decline is attributable to lower other operating expenses including FDIC insurance assessments, correspondent service fees and operating losses on limited partnership investments.

At December 31, 2016, Westamerica Bancorporation's tangible common equity-to-asset ratio was 8.26 percent, and assets totaled $5.4 billion. Westamerica Bancorporation, through its wholly owned subsidiary Westamerica Bank, operates commercial banking and trust offices throughout Northern and Central California.

Westamerica Bancorporation Web Address: www.westamerica.com

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 September 30, 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 January 19, 2017  
WESTAMERICA BANCORPORATION    
FINANCIAL HIGHLIGHTS     
December 31, 2016     
       
1. Net Income Summary.     
  (in thousands except per-share amounts) 
    %  
  Q4'16Q4'15ChangeQ3'16 
       
 Net Interest and Fee Income (FTE)$35,959  $36,734  -2.1%$36,176   
 (Reversal of) Provision for Loan Losses   -     -  n/m    (3,200) 
 Noninterest Income 11,545   11,305  2.1% 11,598   
 Noninterest Expense 24,577   25,504  -3.6% 26,088   
 Income Before Taxes (FTE) 22,927   22,535  1.7% 24,886   
 Income Tax Provision (FTE) 8,474   7,957  6.5% 9,258   
 Net Income$14,453  $14,578  -0.9%$15,628   
       
 Average Common Shares Outstanding 25,773   25,528  1.0% 25,641   
 Diluted Average Common Shares 25,925   25,555  1.4% 25,687   
       
 Operating Ratios:     
 Basic Earnings Per Common Share$0.56  $0.57  -1.8%$0.61   
 Diluted Earnings Per Common Share 0.56   0.57  -1.8% 0.61   
 Return On Assets (a) 1.07% 1.12%  1.18% 
 Return On Common Equity (a) 10.3% 11.0%  11.4% 
 Net Interest Margin (FTE) (a) 3.15% 3.32%  3.21% 
 Efficiency Ratio (FTE) 51.7% 53.1%  54.6% 
       
 Dividends Paid Per Common Share$0.39  $0.39  0.0%$0.39   
 Common Dividend Payout Ratio    70% 68%  64% 
       
    %  
  12/31'16YTD12/31'15YTDChange  
       
 Net Interest and Fee Income (FTE)$145,077  $148,258  -2.1%  
 (Reversal of) Provision for Loan Losses   (3,200)   -  n/m   
 Noninterest Income 46,574   47,867  -2.7%  
 Noninterest Expense 101,752   105,300  -3.4%  
 Income Before Taxes (FTE) 93,099   90,825  2.5%  
 Income Tax Provision (FTE) 34,246   32,072  6.8%  
 Net Income$58,853  $58,753  0.2%  
       
 Average Common Shares Outstanding 25,612   25,555  0.2%  
 Diluted Average Common Shares 25,678   25,577  0.4%  
       
 Operating Ratios:     
 Basic Earnings Per Common Share$2.30  $2.30  0.0%  
 Diluted Earnings Per Common Share 2.29   2.30  -0.4%  
 Return On Assets 1.12% 1.16%   
 Return On Common Equity 10.9% 11.3%   
 Net Interest Margin (FTE) 3.24% 3.36%   
 Efficiency Ratio (FTE) 53.1% 53.7%   
       
 Dividends Paid Per Common Share$1.56  $1.53  2.0%  
 Common Dividend Payout Ratio    68% 67%   
       
2. Net Interest Income.     
  (dollars in thousands) 
    %  
  Q4'16Q4'15ChangeQ3'16 
       
 Interest and Fee Income (FTE)$36,459  $37,297  -2.2%$36,699   
 Interest Expense 500   563  -11.2% 523   
 Net Interest and Fee Income (FTE)$35,959  $36,734  -2.1%$36,176   
       
 Average Earning Assets$4,561,619  $4,411,599  3.4%$4,489,317   
 Average Interest-     
   Bearing Liabilities 2,681,585   2,554,447  5.0% 2,616,357   
       
 Yield on Earning Assets (FTE) (a) 3.19% 3.37%  3.26% 
 Cost of Funds (a) 0.04% 0.05%  0.05% 
 Net Interest Margin (FTE) (a) 3.15% 3.32%  3.21% 
 Interest Expense/     
   Interest-Bearing Liabilities (a) 0.07% 0.09%  0.08% 
 Net Interest Spread (FTE) (a) 3.12% 3.28%  3.18% 
       
    %  
  12/31'16YTD12/31'15YTDChange  
       
 Interest and Fee Income (FTE)$147,193  $150,682  -2.3%  
 Interest Expense 2,116   2,424  -12.7%  
 Net Interest and Fee Income (FTE)$145,077  $148,258  -2.1%  
       
 Average Earning Assets$4,476,755  $4,415,724  1.4%  
 Average Interest-     
   Bearing Liabilities 2,624,688   2,544,350  3.2%  
       
 Yield on Earning Assets (FTE) 3.29% 3.41%   
 Cost of Funds 0.05% 0.05%   
 Net Interest Margin (FTE) 3.24% 3.36%   
 Interest Expense/     
   Interest-Bearing Liabilities 0.08% 0.10%   
 Net Interest Spread (FTE) 3.21% 3.31%   
       
3. Loans & Other Earning Assets.     
  (average volume, dollars in thousands) 
    %  
  Q4'16Q4'15ChangeQ3'16 
       
 Total Assets$5,370,412  $5,168,805  3.9%$5,253,502   
 Total Earning Assets 4,561,619   4,411,599  3.4% 4,489,317   
 Total Loans 1,356,350   1,543,591  -12.1% 1,386,186   
   Commercial Loans 349,022   371,902  -6.2% 343,727   
   Commercial RE Loans  546,145   651,991  -16.2% 572,044   
   Consumer Loans 461,183   519,698  -11.3% 470,415   
 Total Investment Securities 3,205,269   2,868,008  11.8% 3,103,131   
   Available For Sale (Market) 1,821,998   1,589,483  14.6% 1,660,680   
   Held To Maturity 1,383,271   1,278,525  8.2% 1,442,451   
   Unrealized Gain (5,571) 9,624  n/m  29,100   
       
 Loans/Deposits 28.8% 34.0%  30.2% 
       
    %  
  12/31'16YTD12/31'15YTDChange  
       
 Total Assets$5,246,144  $5,084,000  3.2%  
 Total Earning Assets 4,476,755   4,415,724  1.4%  
 Total Loans 1,424,259   1,618,271  -12.0%  
   Commercial Loans 354,831   389,050  -8.8%  
   Commercial RE Loans  590,012   681,145  -13.4%  
   Consumer Loans 479,416   548,076  -12.5%  
 Total Investment Securities 3,052,496   2,797,453  9.1%  
   Available For Sale (Market) 1,651,500   1,648,999  0.2%  
   Held To Maturity 1,400,996   1,148,454  22.0%  
   Unrealized Gain (5,571) 9,624  n/m   
       
 Loans/Deposits 31.0% 36.5%   
       
4. Deposits, Other Interest-Bearing Liabilities & Equity.   
  (average volume, dollars in thousands) 
    %  
  Q4'16Q4'15ChangeQ3'16 
       
 Total Deposits$4,702,129  $4,536,256  3.7%$4,588,762   
   Noninterest Demand  2,077,213   2,036,470  2.0% 2,041,045   
   Interest Bearing Transaction 871,947   855,320  1.9% 850,215   
   Savings 1,492,748   1,351,412  10.5% 1,427,247   
   Time greater than $100K 113,781   128,703  -11.6% 118,113   
   Time less than $100K 146,440   164,351  -10.9% 152,142   
 Total Short-Term Borrowings 56,669   54,661  3.7% 68,640   
 Shareholders' Equity 558,057   525,277  6.2% 545,771   
       
 Demand Deposits/     
   Total Deposits 44.2% 44.9%  44.5% 
 Transaction & Savings      
   Deposits / Total Deposits 94.5% 93.5%  94.1% 
       
    %  
  12/31'16YTD12/31'15YTDChange  
       
 Total Deposits$4,590,351  $4,437,619  3.4%  
   Noninterest Demand  2,026,939   1,968,817  3.0%  
   Interest Bearing Transaction 862,581   822,156  4.9%  
   Savings 1,428,059   1,312,100  8.8%  
   Time greater than $100K 118,750   161,710  -26.6%  
   Time less than $100K 154,022   172,836  -10.9%  
 Total Short-Term Borrowings 61,276   75,054  -18.4%  
 Federal Home Loan Bank Advances   -   494  n/m   
 Shareholders' Equity 542,301   519,126  4.5%  
       
 Demand Deposits/     
   Total Deposits 44.2% 44.4%   
 Transaction & Savings      
   Deposits / Total Deposits 94.1% 92.5%   
       
5. Interest Yields Earned & Rates Paid.    
  (dollars in thousands)  
  Q4'16  
  AverageIncome/Yield (a) /  
  VolumeExpenseRate  
       
 Interest & Fee Income Earned     
   Total Earning Assets (FTE)$4,561,619  $36,459  3.19%  
   Total Loans (FTE)   1,356,350   16,526  4.85%  
   Commercial Loans (FTE) 349,022   4,084  4.66%  
   Commercial RE Loans  546,145   8,386  6.11%  
   Consumer Loans 461,183   4,056  3.50%  
   Total Investments (FTE) 3,205,269   19,933  2.49%  
       
 Interest Expense Paid     
   Total Earning Assets  4,561,619   500  0.04%  
   Total Interest-Bearing Liabilities 2,681,585   500  0.07%  
   Total Interest-Bearing Deposits 2,624,916   491  0.07%  
   Interest-Bearing Transaction 871,947   58  0.03%  
   Savings 1,492,748   230  0.06%  
   Time less than $100K 146,440   90  0.24%  
   Time greater than $100K 113,781   113  0.40%  
   Total Short-Term Borrowings  56,669   9  0.06%  
       
 Net Interest Income and      
 Margin (FTE) $35,959  3.15%  
       
  Q4'15  
  AverageIncome/Yield (a) /  
  VolumeExpenseRate  
       
 Interest & Fee Income Earned     
   Total Earning Assets (FTE)$4,411,599  $37,297  3.37%  
   Total Loans (FTE) 1,543,591   19,157  4.93%  
   Commercial Loans (FTE) 371,902   4,551  4.85%  
   Commercial RE Loans  651,991   9,807  5.97%  
   Consumer Loans 519,698   4,799  3.67%  
   Total Investments (FTE) 2,868,008   18,140  2.53%  
       
 Interest Expense Paid     
   Total Earning Assets  4,411,599   563  0.05%  
   Total Interest-Bearing Liabilities 2,554,447   563  0.09%  
   Total Interest-Bearing Deposits 2,499,786   554  0.09%  
   Interest-Bearing Transaction 855,320   70  0.03%  
   Savings 1,351,412   218  0.06%  
   Time less than $100K 164,351   122  0.29%  
   Time greater than $100K 128,703   144  0.44%  
   Total Short-Term Borrowings  54,661   9  0.06%  
       
 Net Interest Income and     
 Margin (FTE) $36,734  3.32%  
       
6. Noninterest Income.     
  (dollars in thousands except per-share amounts) 
    %  
  Q4'16Q4'15ChangeQ3'16 
       
 Service Charges on Deposits$5,064  $5,259  -3.7%$5,303   
 Merchant Processing Services 1,678   1,368  22.7% 1,532   
 Debit Card Fees 1,566   1,557  0.6% 1,587   
 Other Service Fees 620   648  -4.3% 671   
 ATM Processing Fees 551   569  -3.2% 600   
 Trust Fees 682   671  1.7% 686   
 Financial Services Commissions 157   168  -6.3% 118   
 Other Income 1,227   1,065  15.2% 1,101   
 Total Noninterest Income$11,545  $11,305  2.1%$11,598   
       
   Total Revenue (FTE)$47,504  $48,039  -1.1%$47,774   
   Noninterest Income/Revenue (FTE) 24.3% 23.5%  24.3% 
   Service Charges/Avg. Deposits (a) 0.43% 0.46%  0.46% 
   Total Revenues (FTE) Per Avg.      
 Common Share (a)$7.33  $7.47  -1.8%$7.41   
       
    %  
  12/31'16YTD12/31'15YTDChange  
       
 Service Charges on Deposits$20,854  $22,241  -6.2%  
 Merchant Processing Services 6,377   6,339  0.6%  
 Debit Card Fees 6,290   6,084  3.4%  
 Other Service Fees 2,571   2,689  -4.4%  
 ATM Processing Fees 2,411   2,397  0.6%  
 Trust Fees 2,686   2,732  -1.7%  
 Financial Services Commissions 568   695  -18.3%  
 Other Income 4,817   4,690  2.7%  
 Total Noninterest Income$46,574  $47,867  -2.7%  
       
   Total Revenue (FTE)$191,651  $196,125  -2.3%  
   Noninterest Income/Revenue (FTE) 24.3% 24.4%   
   Service Charges/Avg. Deposits 0.45% 0.50%   
   Total Revenues (FTE) Per Avg.      
 Common Share$7.48  $7.67  -2.5%  
       
7. Noninterest Expense.     
  (dollars in thousands) 
    %  
  Q4'16Q4'15ChangeQ3'16 
       
 Salaries & Benefits$12,439  $12,398  0.3%$13,063   
 Occupancy 3,570   3,761  -5.1% 3,749   
 Outsourced Data Processing 2,131   2,107  1.1% 2,114   
 Amortization of      
   Identifiable Intangibles 863   948  -9.0% 867   
 Professional Fees 797   614  29.8% 1,693   
 Furniture & Equipment 1,290   1,081  19.3% 1,211   
 Other Real Estate Owned 7   53  n/m  (206) 
 Courier Service 494   585  -15.6% 451   
 Other Operating 2,986   3,957  -24.5% 3,146   
 Total Noninterest Expense$24,577  $25,504  -3.6%$26,088   
       
 Noninterest Expense/     
   Avg. Earning Assets (a) 2.14% 2.29%  2.31% 
 Noninterest Expense/Revenues (FTE) 51.7% 53.1%  54.6% 
       
    %  
  12/31'16YTD12/31'15YTDChange  
       
 Salaries & Benefits$51,507  $52,192  -1.3%  
 Occupancy 14,116   14,960  -5.6%  
 Outsourced Data Processing 8,505   8,441  0.8%  
 Amortization of      
   Identifiable Intangibles 3,504   3,856  -9.1%  
 Professional Fees 3,980   2,490  59.8%  
 Furniture & Equipment 4,901   4,434  10.5%  
 Other Real Estate Owned (479) 504  n/m   
 Courier Service 1,952   2,329  -16.2%  
 Other Operating 13,766   16,094  -14.5%  
 Total Noninterest Expense$101,752  $105,300  -3.4%  
       
 Noninterest Expense/     
   Avg. Earning Assets 2.27% 2.38%   
 Noninterest Expense/Revenues (FTE) 53.1% 53.7%   
       
8. Allowance for Loan Losses.     
  (dollars in thousands) 
    %  
  Q4'16Q4'15ChangeQ3'16 
       
 Average Total Loans$1,356,350  $1,543,591  -12.1%$1,386,186   
       
 Allowance for Loan Loss (ALL)     
 Beginning of Period $26,359  $30,036  -12.2%$28,910   
 (Reversal of) Provision for Loan Losses      -     -  n/m    (3,200) 
 Net ALL (Losses) Recoveries (405) (265)52.7% 649   
 ALL End of Period$25,954  $29,771  -12.8%$26,359   
 ALL Recoveries/Gross ALL Losses    66% 78%  134% 
       
 Net ALL Losses (Recoveries)/Avg.     
 Total Loans (a) 0.12% 0.07%  -0.19% 
       
    %  
  12/31'16YTD12/31'15YTDChange  
       
 Average Total Loans$1,424,259  $1,618,271  -12.0%  
       
 Allowance for Loan Loss (ALL)     
 Beginning of Period $29,771  $31,485  -5.4%  
 (Reversal of) Provision for Loan Losses      (3,200)   -  n/m   
 Net ALL Losses (617) (1,714)-64.0%  
 ALL End of Period$25,954  $29,771  -12.8%  
 ALL Recoveries/Gross ALL Losses    91% 67%   
       
 Net ALL Losses/Avg. Total Loans 0.04% 0.11%   
       
9. Credit Quality.     
  (dollars in thousands) 
    %  
  12/31/1612/31/15Change9/30/16 
       
 Nonperforming Originated Loans:     
 Nonperforming Nonaccrual$1,405  $6,302  -77.7%$1,198   
 Performing Nonaccrual   4,410     350  n/m    4,410   
 Total Nonaccrual Loans 5,815   6,652  -12.6% 5,608   
 90+ Days Past Due Accruing Loans 355   295  20.3% 438   
 Total 6,170   6,947  -11.2% 6,046   
 Repossessed Originated Loan Collateral 396   5,829  -93.2% 666   
 Total Nonperforming     
  Originated Assets 6,566   12,776  -48.6% 6,712   
       
 Nonperforming Purchased Covered Loans (1):    
 Nonperforming Nonaccrual   858     -  n/m    29   
 Performing Nonaccrual   -     -  n/m    -   
 Total Nonaccrual Loans   858     -  n/m    29   
 90+ Days Past Due Accruing Loans   -     -  n/m    -   
 Total   858     -  n/m    29   
 Repossessed Purchased Covered       
 Loan Collateral (1)   -     -  n/m    -   
 Total Nonperforming Purchased      
 Covered Assets (1)   858     -  n/m    29   
       
 Nonperforming Purchased Non-Covered Loans (2):    
 Nonperforming Nonaccrual 1,693     8,346  -79.7% 634   
 Performing Nonaccrual   19     -  n/m    22   
 Total Nonaccrual Loans 1,712     8,346  -79.5% 656   
 90+ Days Past Due Accruing Loans   142     -  n/m    49   
 Total 1,854     8,346  -77.8% 705   
 Repossessed Purchased Non-Covered      
 Loan Collateral (2)   2,699     3,435  -21.4%   2,366   
 Total Nonperforming Purchased     
 Non-Covered Assets (2) 4,553     11,781  -61.4% 3,071   
       
 Total Nonperforming Assets$11,977  $24,557  -51.2%$9,812   
       
 Total Originated Loans Outstanding$1,235,559  $1,351,839  -8.6%$1,242,224   
 Total Purchased Covered      
 Loans Outstanding (1) 11,027   14,061  -21.6% 11,745   
 Total Purchased Non-Covered      
 Loans Outstanding (2) 106,125     167,496  -36.6% 110,360   
 Total Loans Outstanding $1,352,711  $1,533,396  -11.8%$1,364,329   
       
 Total Assets $5,366,083  $5,168,875  3.8%$5,306,778   
       
 Loans:     
 Allowance for Loan Losses$25,954  $29,771  -12.8%$26,359   
 Allowance/Loans 1.92% 1.94%  1.93% 
 Nonperforming Loans/Total Loans 0.66% 1.00%  0.50% 
       
 Purchased Covered Loans (1):     
 Fair Value Discount on Purchased      
  Covered Loans$-  $152   $-   
 Discount/Purchased Covered     
 Loans, gross 0.00% 1.07%  0.00% 
 Nonperforming Purchased Covered Loans/    
 Total Purchased Covered Loans 7.78% 0.00%  0.25% 
       
 Purchased Non-Covered Loans (2):     
 Fair Value Discount on Purchased      
 Non-Covered Loans$4,058  $6,432   $4,922   
 Discount/Purchased Non-Covered 3.68% 3.70%  4.27% 
 Loans, gross     
 Nonperforming Purchased Non-Covered Loans/    
 Total Purchased Non-Covered Loans 1.75% 4.98%  0.64% 
       
10. Capital.     
  (in thousands, except per-share amounts) 
    %  
  12/31/1612/31/15Change9/30/16 
       
 Shareholders' Equity$561,367  $532,205  5.5%$562,996   
 Total Assets 5,366,083   5,168,875  3.8% 5,306,778   
       
 Shareholders' Equity/     
   Total Assets 10.46% 10.30%  10.61% 
 Shareholders' Equity/     
   Total Loans 41.50% 34.71%  41.27% 
 Tangible Common Equity Ratio 8.26% 7.94%  8.37% 
 Common Shares Outstanding 25,907   25,528  1.5% 25,665   
 Common Equity Per Share$21.67  $20.85  3.9%$21.94   
 Market Value Per Common Share$62.93  $46.75  34.6%$50.88   
       
 Share Repurchase Programs     
  (shares in thousands) 
    %  
  Q4'16Q4'15ChangeQ3'16 
       
 Total Shares Repurchased   -   2  n/m    -   
   Average Repurchase Price$-  $43.01  n/m $-   
 Net Shares (Issued) Repurchased (242) 2  n/m  (33) 
       
    %  
  12/31'16YTD12/31'15YTDChange  
       
 Total Shares Repurchased 137   344  n/m   
   Average Repurchase Price$41.94  $43.90  n/m   
 Net Shares (Issued) Repurchased (379) 217  n/m   
11. Period-End Balance Sheets.     
  (unaudited, dollars in thousands) 
    %  
  12/31/1612/31/15Change9/30/16 
 Assets:     
   Cash and Due from Banks$462,271  $433,044  6.7%$471,367   
       
   Investment Securities:     
   Available For Sale 1,890,758   1,570,216  20.4% 1,762,408   
   Held to Maturity 1,346,312   1,316,075  2.3% 1,411,019   
       
   Loans 1,352,711   1,533,396  -11.8% 1,364,329   
   Allowance For Loan Losses (25,954) (29,771)-12.8% (26,359) 
   Total Loans, net 1,326,757   1,503,625  -11.8% 1,337,970   
       
   Other Real Estate Owned 3,095   9,264  -66.6% 3,032   
   Premises and Equipment, net 36,566   38,693  -5.5% 37,059   
   Identifiable Intangibles, net 6,927   10,431  -33.6% 7,789   
   Goodwill  121,673   121,673  0.0% 121,673   
   Other Assets 171,724   165,854  3.5% 154,461   
       
 Total Assets$5,366,083  $5,168,875  3.8%$5,306,778   
       
 Liabilities and Shareholders' Equity:     
   Deposits:     
   Noninterest Bearing$2,089,443  $2,026,049  3.1%$2,064,988   
   Interest-Bearing Transaction 865,701   860,706  0.6% 851,885   
   Savings 1,493,427   1,366,936  9.3% 1,462,860   
   Time 256,170   286,968  -10.7% 265,137   
   Total Deposits 4,704,741   4,540,659  3.6% 4,644,870   
       
   Short-Term Borrowed Funds 59,078   53,028  11.4% 56,358   
   Other Liabilities 40,897   42,983  -4.9% 42,554   
 Total Liabilities 4,804,716   4,636,670  3.6% 4,743,782   
       
 Shareholders' Equity:     
   Common Equity:     
   Paid-In Capital 406,139   381,436  6.5% 393,134   
   Accumulated Other     
   Comprehensive Income (10,074) 675  n/m  9,001   
   Retained Earnings 165,302   150,094  10.1% 160,861   
 Total Shareholders' Equity 561,367   532,205  5.5% 562,996   
       
 Total Liabilities and      
   Shareholders' Equity$5,366,083  $5,168,875  3.8%$5,306,778   
       
12. Income Statements.     
  (unaudited, in thousands except per-share amounts) 
    %  
  Q4'16Q4'15ChangeQ3'16 
 Interest & Fee Income:     
   Loans$16,235  $18,798  -13.6%$16,968   
   Investment Securities:     
   Available for Sale 9,422   7,916  19.0% 8,796   
   Held to Maturity 7,552   7,174  5.3% 7,704   
 Total Interest & Fee Income 33,209   33,888  -2.0% 33,468   
       
 Interest Expense:     
   Transaction Deposits 58   70  -17.0% 64   
   Savings Deposits 230   218  5.7% 229   
   Time Deposits 203   266  -23.6% 219   
   Short-Term Borrowed Funds 9   9  -1.7% 11   
 Total Interest Expense 500   563  -11.2% 523   
       
 Net Interest Income 32,709   33,325  -1.8% 32,945   
       
 (Reversal of) Provision for Loan Losses   -     -  n/m    (3,200) 
       
 Noninterest Income:     
   Service Charges  5,064   5,259  -3.7% 5,303   
   Merchant Processing Services 1,678   1,368  22.7% 1,532   
   Debit Card Fees 1,566   1,557  0.6% 1,587   
   Other Service Fees 620   648  -4.3% 671   
   ATM Processing Fees 551   569  -3.2% 600   
   Trust Fees 682   671  1.7% 686   
   Financial Services Commissions 157   168  -6.3% 118   
   Other 1,227   1,065  15.2% 1,101   
 Total Noninterest Income 11,545   11,305  2.1% 11,598   
       
 Noninterest Expense:     
   Salaries and  Benefits 12,439   12,398  0.3% 13,063   
   Occupancy  3,570   3,761  -5.1% 3,749   
   Outsourced Data Processing 2,131   2,107  1.1% 2,114   
   Amortization of Identifiable Intangibles 863   948  -9.0% 867   
   Professional Fees 797   614  29.8% 1,693   
   Furniture & Equipment 1,290   1,081  19.3% 1,211   
   Other Real Estate Owned 7   53  n/m  (206) 
   Courier Service 494   585  -15.6% 451   
   Other 2,986   3,957  -24.5% 3,146   
 Total Noninterest Expense 24,577   25,504  -3.6% 26,088   
       
 Income Before Income Taxes 19,677   19,126  2.9% 21,655   
 Income Tax Provision 5,224   4,548  14.9% 6,027   
 Net Income$14,453  $14,578  -0.9%$15,628   
       
 Average Common Shares Outstanding 25,773   25,528  1.0% 25,641   
 Diluted Common Shares Outstanding 25,925   25,555  1.4% 25,687   
       
 Per Common Share Data:     
   Basic Earnings$0.56  $0.57  -1.8%$0.61   
   Diluted Earnings 0.56   0.57  -1.8% 0.61   
   Dividends Paid 0.39   0.39  0.0% 0.39   
    %  
  12/31'16YTD12/31'15YTDChange  
 Interest & Fee Income:     
   Loans$69,139  $78,441  -11.9%  
   Investment Securities:     
   Available for Sale 34,276   31,263  9.6%  
   Held to Maturity 30,636   26,825  14.2%  
 Total Interest & Fee Income 134,051   136,529  -1.8%  
       
 Interest Expense:     
   Transaction Deposits 259   260  -0.4%  
   Savings Deposits 907   852  6.4%  
   Time Deposits 911   1,258  -27.6%  
   Short-Term Borrowed Funds 39   53  -26.1%  
   Federal Home Loan Bank Advances   -   1  n/m   
 Total Interest Expense 2,116   2,424  -12.7%  
       
 Net Interest Income 131,935   134,105  -1.6%  
       
 (Reversal of) Provision for Loan Losses   (3,200)   -  n/m   
       
 Noninterest Income:     
   Service Charges  20,854   22,241  -6.2%  
   Merchant Processing Services 6,377   6,339  0.6%  
   Debit Card Fees 6,290   6,084  3.4%  
   Other Service Fees 2,571   2,689  -4.4%  
   ATM Processing Fees 2,411   2,397  0.6%  
   Trust Fees 2,686   2,732  -1.7%  
   Financial Services Commissions 568   695  -18.3%  
   Other 4,817   4,690  2.7%  
 Total Noninterest Income 46,574   47,867  -2.7%  
       
 Noninterest Expense:     
   Salaries and  Benefits 51,507   52,192  -1.3%  
   Occupancy  14,116   14,960  -5.6%  
   Outsourced Data Processing 8,505   8,441  0.8%  
   Amortization of Identifiable Intangibles 3,504   3,856  -9.1%  
   Professional Fees 3,980   2,490  59.8%  
   Furniture & Equipment 4,901   4,434  10.5%  
   Other Real Estate Owned (479) 504  n/m   
   Courier Service 1,952   2,329  -16.2%  
   Other 13,766   16,094  -14.5%  
 Total Noninterest Expense 101,752   105,300  -3.4%  
       
 Income Before Income Taxes 79,957   76,672  4.3%  
 Income Tax Provision 21,104   17,919  17.8%  
 Net Income$58,853  $58,753  0.2%  
       
 Average Common Shares Outstanding 25,612   25,555  0.2%  
 Diluted Common Shares Outstanding 25,678   25,577  0.4%  
       
 Per Common Share Data:     
 Basic Earnings$2.30  $2.30  0.0%  
 Diluted Earnings 2.29   2.30  -0.4%  
 Dividends Paid 1.56   1.53  2.0%  
       
 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.
  
       

 

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