Form 8-K
0000311094 False 0000311094 2019-10-17 2019-10-17 iso4217:USD xbrli:shares iso4217:USD xbrli:shares
 

UNITED STATES

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 Report (Date of earliest event reported):  October 17, 2019

_______________________________

WESTAMERICA BANCORPORATION

(Exact name of registrant as specified in its charter)

_______________________________

California001-0938394-2156203
(State or Other Jurisdiction of Incorporation)(Commission File Number)(I.R.S. Employer Identification No.)

1108 Fifth Avenue

San Rafael, California 94901

(Address of Principal Executive Offices) (Zip Code)

(707) 863-6000

(Registrant's telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

_______________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, no par valueWABCThe Nasdaq Stock Market, LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company,indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 
 
Item 2.02. Results of Operations and Financial Condition.

On October 17, 2019, the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference. 

Item 9.01. Financial Statements and Exhibits.

Exhibit 99.1. Press release dated October 17, 2019

Exhibit 104. Cover Page Interactive Data File (embedded within the Inline XBRL document)

 
 

SIGNATURE

Pursuant to the requirements of 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
   
  
Date: October 17, 2019By: /s/ John "Robert" Thorson        
  John "Robert" Thorson
  Senior Vice President and Chief Financial Officer
  

 

EdgarFiling

EXHIBIT 99.1

Westamerica Bancorporation Reports Third Quarter 2019 Financial Results

SAN RAFAEL, Calif., Oct. 17, 2019 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the third quarter 2019 of $20.4 million and diluted earnings per common share ("EPS") of $0.75. These results compare to net income of $19.6 million and EPS of $0.73 for the second quarter 2019 and net income of $17.0 million and EPS of $0.63 for the third quarter 2018.

"The annualized net interest margin was 3.11 percent for the third quarter 2019 compared to 3.13 percent for the second quarter 2019. The valuable composition of our deposit base supported the margin; our annualized funding costs as a percentage of our interest-earning assets remained at just 0.04 percent for the third quarter 2019. Operating expense declined to $24.0 million for the third quarter 2019 compared to $25.6 million for the second quarter 2019 and $29.4 million for the third quarter 2018. Operating costs represented only 46 percent of revenues for the third quarter 2019. Asset quality remained solid with nonperforming assets totaling only 4.7 million at September 30, 2019,” said Chairman, President and CEO David Payne. “Third quarter 2019 results generated an annualized 11.9 percent return on average shareholders’ equity, and the Company paid its shareholders a $0.41 dividend per common share in the third quarter,” concluded Payne.

Net interest income on a fully-taxable equivalent (FTE) basis was $40.3 million for the third quarter 2019, compared to $40.3 million for the second quarter 2019 and $39.5 million for the third quarter 2018. The annualized net interest margin (FTE) was 3.11 percent for the third quarter 2019, compared to 3.13 percent for the second quarter 2019 and 3.00 percent for the third quarter 2018. Checking and savings deposits, which pay much lower interest rates than time deposits, represented ninety-six percent of the Company’s average deposit base during the third quarter 2019.

The Company recognized no provision for loan losses for the third quarter 2019 given low levels of nonperforming loans and other credit quality attributes.

Noninterest income for the third quarter 2019 totaled $11.8 million, compared to $12.3 million for the second quarter 2019, and $12.5 million for the third quarter 2018.

Noninterest expense for the third quarter 2019 totaled $24.0 million, a decline of $1.5 million from the second quarter 2019 due to lower FDIC insurance assessments and employee benefit costs in the third quarter 2019 and a contingency provision recognized in the second quarter 2019. Noninterest expense for the third quarter 2019 was $5.3 million lower than the third quarter 2018 due to a contingency provision recognized in the third quarter 2018 and lower FDIC insurance assessments, employee benefit costs, and intangible amortization in the third quarter 2019. Lower third quarter 2019 FDIC assessments are due to application of Westamerica Bank’s assessment credit described in our December 31, 2018 Form 10-K, Part 1, Item 1, “Premiums for Deposit Insurance.”

The tax rate (FTE) applied to pre-tax income (FTE) was 27.5 percent for the third quarter 2019, compared to 27.5 percent for the second quarter 2019 and 25.0 percent for the third quarter 2018. The higher tax rates in the third and second quarters of 2019 are due to lower levels of tax-exempt interest income and stock compensation tax deductions, and a life insurance gain realized in the third quarter 2018.

Westamerica Bancorporation’s wholly owned subsidiary Westamerica Bank, operates commercial banking and trust offices throughout Northern and Central California.

Westamerica Bancorporation Web Address: www.westamerica.com

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


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, 2018 filed on Form 10-K and quarterly report for the quarter ended June 30, 2019 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, cyber security risks, 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 October 17, 2019 
WESTAMERICA BANCORPORATION   
FINANCIAL HIGHLIGHTS    
September 30, 2019    
      
1. Net Income Summary.    
  (in thousands except per-share amounts)
    % 
  Q3'2019Q3'2018ChangeQ2'2019
      
 Net Interest and Fee Income (FTE)$40,349$39,4982.2%$40,330
 Provision for Loan Losses--n/m-
 Noninterest Income11,80912,528-5.7%12,288
 Noninterest Expense24,03329,366-18.2%25,561
 Income Before Taxes (FTE)28,12522,66024.1%27,057
 Income Tax Provision (FTE)7,7355,66736.5%7,432
 Net Income$20,390$16,99320.0%$19,625
      
 Average Common Shares Outstanding26,98626,7011.1%26,942
 Diluted Average Common Shares27,02726,8150.8%26,987
      
 Operating Ratios:    
 Basic Earnings Per Common Share$0.76$0.6418.1%$0.73
 Diluted Earnings Per Common Share$0.750.6319.8%0.73
 Return On Assets (a)1.45%1.19% 1.42%
 Return On Common Equity (a)11.9%10.6% 11.7%
 Net Interest Margin (FTE) (a)3.11%3.00% 3.13%
 Efficiency Ratio (FTE)46.1%56.4% 48.6%
      
 Dividends Paid Per Common Share$0.41$0.402.5%$0.41
 Common Dividend Payout Ratio 55%63% 56%
      
    % 
  9/30'19YTD9/30'18YTDChange 
      
 Net Interest and Fee Income (FTE)$120,925$115,1225.0% 
 Provision for Loan Losses--n/m 
 Noninterest Income35,67636,252-1.6% 
 Noninterest Expense74,77781,129-7.8% 
 Income Before Taxes (FTE)81,82470,24516.5% 
 Income Tax Provision (FTE)22,16317,73625.0% 
 Net Income$59,661$52,50913.6% 
      
 Average Common Shares Outstanding26,92426,6221.1% 
 Diluted Average Common Shares26,97626,7360.9% 
      
 Operating Ratios:    
 Basic Earnings Per Common Share$2.22$1.9712.7% 
 Diluted Earnings Per Common Share2.211.9612.8% 
 Return On Assets (a)1.43%1.25%  
 Return On Common Equity (a)11.9%11.2%  
 Net Interest Margin (FTE) (a)3.12%2.95%  
 Efficiency Ratio (FTE)47.8%53.6%  
      
 Dividends Paid Per Common Share$1.22$1.201.7% 
 Common Dividend Payout Ratio 55%61%  
      
2. Net Interest Income.    
  (dollars in thousands)
    % 
  Q3'2019Q3'2018ChangeQ2'2019
      
 Interest and Fee Income (FTE)$40,804$40,0251.9%$40,817
 Interest Expense455527-13.7%487
 Net Interest and Fee Income (FTE)$40,349$39,4982.2%$40,330
      
 Average Earning Assets$5,176,744$5,231,257-1.0%$5,159,112
 Average Interest-    
   Bearing Liabilities2,586,8802,733,670-5.4%2,646,681
      
 Yield on Earning Assets (FTE) (a)3.15%3.04% 3.17%
 Cost of Funds (a)0.04%0.04% 0.04%
 Net Interest Margin (FTE) (a)3.11%3.00% 3.13%
 Interest Expense/    
   Interest-Bearing Liabilities (a)0.07%0.08% 0.08%
 Net Interest Spread (FTE) (a)3.08%2.96% 3.09%
      
    % 
  9/30'19YTD9/30'18YTDChange 
      
 Interest and Fee Income (FTE)$122,362$116,5675.0% 
 Interest Expense1,4371,445-0.6% 
 Net Interest and Fee Income (FTE)$120,925$115,1225.0% 
      
 Average Earning Assets$5,173,581$5,191,664-0.3% 
 Average Interest-    
   Bearing Liabilities2,640,7052,732,520-3.4% 
      
 Yield on Earning Assets (FTE) (a)3.16%2.99%  
 Cost of Funds (a)0.04%0.04%  
 Net Interest Margin (FTE) (a)3.12%2.95%  
 Interest Expense/    
   Interest-Bearing Liabilities (a)0.07%0.07%  
 Net Interest Spread (FTE) (a)3.09%2.92%  
      
3. Loans & Other Earning Assets.    
  (average volume, dollars in thousands)
    % 
  Q3'2019Q3'2018ChangeQ2'2019
      
 Total Assets$5,570,843$5,648,004-1.4%$5,560,740
 Total Earning Assets5,176,7445,231,257-1.0%5,159,112
 Total Loans1,142,6681,194,874-4.4%1,183,539
   Commercial Loans231,232288,634-19.9%262,804
   Commercial RE Loans 579,069554,0814.5%582,126
   Consumer Loans332,367352,159-5.6%338,609
 Total Investment Securities3,687,0493,591,6372.7%3,648,436
   Equity Securities3521,749-79.9%1,772
   Debt Securities Available For Sale2,862,5372,538,83712.7%2,750,093
   Debt Securities Held To Maturity824,1601,051,051-21.6%896,571
 Total Interest-Bearing Cash347,027444,746-22.0%327,137
      
 Loans/Deposits24.0%24.4% 24.9%
      
    % 
  9/30'19YTD9/30'18YTDChange 
      
 Total Assets$5,580,965$5,600,499-0.3% 
 Total Earning Assets5,173,5815,191,664-0.3% 
 Total Loans1,177,0571,215,712-3.2% 
   Commercial Loans258,317300,215-14.0% 
   Commercial RE Loans 580,453553,5074.9% 
   Consumer Loans338,287361,990-6.5% 
 Total Investment Securities3,675,1023,538,7243.9% 
   Equity Securities1,2851,834-29.9% 
   Debt Securities Available For Sale2,782,8982,442,33513.9% 
   Debt Securities Held To Maturity890,9191,094,555-18.6% 
 Total Interest-Bearing Cash321,422437,228-26.5% 
      
 Loans/Deposits24.6%25.0%  
      
4. Deposits, Other Interest-Bearing Liabilities & Equity.  
  (average volume, dollars in thousands)
    % 
  Q3'2019Q3'2018ChangeQ2'2019
      
 Total Deposits$4,770,976$4,893,859-2.5%$4,762,286
   Noninterest Demand 2,234,4942,223,6780.5%2,172,207
   Interest-Bearing Transaction916,180935,257-2.0%945,128
   Savings1,441,2821,526,100-5.6%1,459,287
   Time greater than $100K77,56890,668-14.4%80,120
   Time less than $100K101,452118,156-14.1%105,544
 Total Short-Term Borrowings50,39863,489-20.6%56,602
 Shareholders' Equity681,513636,9657.0%669,947
      
 Demand Deposits/    
   Total Deposits46.8%45.4% 45.6%
 Transaction & Savings     
   Deposits / Total Deposits96.2%95.7% 96.1%
      
    % 
  9/30'19YTD9/30'18YTDChange 
      
 Total Deposits$4,789,084$4,856,639-1.4% 
   Noninterest Demand 2,203,7552,186,2500.8% 
   Interest-Bearing Transaction935,811928,4790.8% 
   Savings1,464,0371,522,414-3.8% 
   Time greater than $100K80,14297,877-18.1% 
   Time less than $100K105,339121,619-13.4% 
 Total Short-Term Borrowings55,37662,131-10.9% 
 Shareholders' Equity669,043625,4967.0% 
      
 Demand Deposits/    
   Total Deposits46.0%45.0%  
 Transaction & Savings     
   Deposits / Total Deposits96.1%95.5%  
      
5. Interest Yields Earned & Rates Paid.   
  (dollars in thousands) 
  Q3'2019 
  AverageIncome/Yield (a) / 
  VolumeExpenseRate 
 Interest & Fee Income Earned    
   Total Earning Assets (FTE)$5,176,744$40,8043.15% 
   Total Loans (FTE)1,142,66814,5355.05% 
   Commercial Loans (FTE)231,2323,1025.32% 
   Commercial RE Loans 579,0697,7725.32% 
   Consumer Loans332,3673,6614.37% 
   Total Investments (FTE)3,687,04924,3682.64% 
   Total Interest-Bearing Cash347,0271,9012.14% 
      
 Interest Expense Paid    
   Total Earning Assets 5,176,7444550.04% 
   Total Interest-Bearing Liabilities2,586,8804550.07% 
   Total Interest-Bearing Deposits2,536,4824470.07% 
   Interest-Bearing Transaction916,180920.04% 
   Savings1,441,2822100.06% 
   Time less than $100K101,452640.25% 
   Time greater than $100K77,568810.41% 
   Total Short-Term Borrowings 50,39880.06% 
      
 Net Interest Income and     
 Margin (FTE) $40,3493.11% 
      
  Q3'2018 
  AverageIncome/Yield (a) / 
  VolumeExpenseRate 
 Interest & Fee Income Earned    
   Total Earning Assets (FTE)$5,231,257$40,0253.04% 
   Total Loans (FTE)1,194,87414,7074.88% 
   Commercial Loans (FTE)288,6343,6755.05% 
   Commercial RE Loans 554,0817,5565.41% 
   Consumer Loans352,1593,4763.92% 
   Total Investments (FTE)3,591,63722,9572.56% 
   Total Interest-Bearing Cash444,7462,3611.98% 
      
 Interest Expense Paid    
   Total Earning Assets 5,231,2575270.04% 
   Total Interest-Bearing Liabilities2,733,6705270.08% 
   Total Interest-Bearing Deposits2,670,1815180.08% 
   Interest-Bearing Transaction935,2571290.05% 
   Savings1,526,1002290.06% 
   Time less than $100K118,156690.23% 
   Time greater than $100K90,668910.40% 
   Total Short-Term Borrowings 63,48990.06% 
      
 Net Interest Income and    
 Margin (FTE) $39,4983.00% 
      
6. Noninterest Income.    
  (dollars in thousands except per-share amounts)
    % 
  Q3'2019Q3'2018ChangeQ2'2019
      
 Service Charges on Deposits$4,510$4,615-2.3%$4,493
 Merchant Processing Services2,4942,4641.2%2,657
 Debit Card Fees1,6411,656-0.9%1,641
 Other Service Fees580665-12.8%585
 ATM Processing Fees7256875.6%722
 Trust Fees7337330.1%749
 Life Insurance Gains-585-100.0%433
 Financial Services Commissions75132-43.2%93
 Equity Securities (Losses) Gains-(16)n/m26
 Other Income1,0511,0074.4%889
 Total Noninterest Income$11,809$12,528-5.7%$12,288
      
   Total Revenue (FTE)$52,158$52,0260.3%$52,618
   Noninterest Income/Revenue (FTE)22.6%24.1% 23.4%
   Service Charges/Avg. Deposits (a)0.38%0.37% 0.38%
   Total Revenues (FTE) Per Avg.     
 Common Share (a)$7.67$7.73-0.8%$7.83
      
    % 
  9/30'19YTD9/30'18YTDChange 
      
 Service Charges on Deposits$13,508$14,012-3.6% 
 Merchant Processing Services7,7087,1907.2% 
 Debit Card Fees4,7894,959-3.4% 
 Other Service Fees1,7421,946-10.5% 
 ATM Processing Fees2,0802,0491.5% 
 Trust Fees2,1992,202-0.1% 
 Life Insurance Gains433585-26.0% 
 Financial Services Commissions270387-30.4% 
 Equity Securities Gains (Losses)50(66)n/m 
 Other Income2,8972,988-3.0% 
 Total Noninterest Income$35,676$36,252-1.6% 
      
   Total Revenue (FTE)$156,601$151,3743.5% 
   Noninterest Income/Revenue (FTE)22.8%23.9%  
   Service Charges/Avg. Deposits (a)0.38%0.39%  
   Total Revenues (FTE) Per Avg.     
 Common Share (a)$7.78$7.602.3% 
      
7. Noninterest Expense.    
  (dollars in thousands)
    % 
  Q3'2019Q3'2018ChangeQ2'2019
      
 Salaries & Benefits$12,559$13,415-6.4%$13,090
 Occupancy and Equipment5,1994,8098.1%4,916
 Loss Contingency (1)-3,500n/m553
 Outsourced Data Processing2,3742,2923.6%2,367
 Amortization of     
   Identifiable Intangibles76451-83.1%79
 Professional Fees6456213.9%481
 Courier Service4564481.8%451
 Other Operating2,7243,830-28.9%3,624
 Total Noninterest Expense$24,033$29,366-18.2%$25,561
      
 Noninterest Expense/    
   Avg. Earning Assets (a)1.84%2.23% 1.99%
 Noninterest Expense/Revenues (FTE)46.1%56.4% 48.6%
      
    % 
  9/30'19YTD9/30'18YTDChange 
      
 Salaries & Benefits$38,757$39,952-3.0% 
 Occupancy and Equipment15,16314,3655.6% 
 Outsourced Data Processing7,1106,9302.6% 
 Loss Contingency (1)5533,500n/m 
 Amortization of     
   Identifiable Intangibles4651,474-68.4% 
 Professional Fees1,7912,277-21.3% 
 Courier Service1,3491,3331.2% 
 Other Operating9,58911,298-15.1% 
 Total Noninterest Expense$74,777$81,129-7.8% 
      
 Noninterest Expense/    
   Avg. Earning Assets (a)1.93%2.09%  
 Noninterest Expense/Revenues (FTE)47.8%53.6%  
      
8. Allowance for Loan Losses.    
  (dollars in thousands)
    % 
  Q3'2019Q3'2018ChangeQ2'2019
      
 Average Total Loans$1,142,668$1,194,874-4.4%$1,183,539
      
 Allowance for Loan Loss (ALL)    
 Beginning of Period $20,117$23,040-12.7%$20,477
 Provision for Loan Losses --n/m-
 Net ALL Losses(289)(1,013)n/m(360)
 ALL End of Period$19,828$22,027-10.0%$20,117
 Gross ALL Recoveries /     
 Gross ALL Losses 72%31% 63%
 Net ALL Losses /     
 Avg. Total Loans (a) 0.10%0.34% 0.12%
    % 
  9/30'19YTD9/30'18YTDChange 
      
 Average Total Loans$1,177,057$1,215,712-3.2% 
      
 Allowance for Loan Loss (ALL)    
 Beginning of Period $21,351$23,009-7.2% 
 Provision for Loan Losses --n/m 
 Net ALL Losses(1,523)(982)n/m 
 ALL End of Period$19,828$22,027-10.0% 
 Gross ALL Recoveries /     
 Gross ALL Losses 55%73%  
 Net ALL Losses /     
 Avg. Total Loans (a) 0.17%0.11%  
      
9. Credit Quality.    
  (dollars in thousands)
    % 
  9/30/199/30/18Change6/30/19
 Nonperforming Loans:    
   Nonperforming Nonaccrual$633$1,611-60.7%$177
   Performing Nonaccrual3,6703,870-5.2%3,670
 Total Nonaccrual Loans4,3035,481-21.5%3,847
 90+ Days Past Due Accruing Loans351361-2.8%249
 Total4,6545,842-20.3%4,096
 Repossessed Loan Collateral 43620-93.0%43
  Total Nonperforming Assets$4,697$6,462-27.3%$4,139
      
 Total Loans Outstanding $1,133,229$1,196,955-5.3%$1,161,712
      
 Total Assets $5,616,055$5,529,4631.6%$5,523,448
      
 Loans:    
 Allowance for Loan Losses$19,828$22,027-10.0%$20,117
 Allowance/Loans1.75%1.84% 1.73%
 Nonperforming Loans/Total Loans0.41%0.49% 0.35%
      
10. Capital.    
  (in thousands, except per-share amounts)
    % 
  9/30/199/30/18Change6/30/19
      
 Shareholders' Equity$713,378$592,59120.4%$693,437
 Total Assets5,616,0555,529,4631.6%5,523,448
 Shareholders' Equity/    
   Total Assets12.70%10.72% 12.55%
 Shareholders' Equity/    
   Total Loans62.95%49.51% 59.69%
 Tangible Common Equity Ratio10.75%8.67% 10.56%
 Common Shares Outstanding27,01426,7271.1%26,962
 Common Equity Per Share$26.41$22.1719.1%$25.72
 Market Value Per Common Share$62.18$60.163.4%$61.61
      
 Share Repurchase Programs    
  (shares in thousands)
    % 
  Q3'2019Q3'2018ChangeQ2'2019
      
 Total Shares Repurchased--n/m8
   Average Repurchase Price$-$-n/m$61.98
 Net Shares Issued(52)(78)n/m(61)
      
    % 
  9/30'19YTD9/30'18YTDChange 
      
 Total Shares Repurchased89n/m 
   Average Repurchase Price$61.98$58.46n/m 
 Net Shares Issued(284)(302)n/m 
      
11. Period-End Balance Sheets.    
  (unaudited, dollars in thousands)
    % 
  9/30/199/30/18Change6/30/19
 Assets:    
   Cash and Due from Banks$415,639$522,660-20.5%$418,586
      
   Investment Securities:    
   Equity Securities-1,734-100.0%1,797
   Debt Securities Available For Sale2,983,7672,478,90820.4%2,775,899
   Debt Securities Held to Maturity793,2161,025,699-22.7%867,989
      
   Loans1,133,2291,196,955-5.3%1,161,712
   Allowance For Loan Losses(19,828)(22,027)-10.0%(20,117)
   Total Loans, net1,113,4011,174,928-5.2%1,141,595
      
   Other Real Estate Owned43620-93.0%43
   Premises and Equipment, net34,08035,391-3.7%34,014
   Identifiable Intangibles, net1,4642,376-38.4%1,540
   Goodwill 121,673121,6730.0%121,673
   Other Assets152,772165,474-7.7%160,312
      
 Total Assets$5,616,055$5,529,4631.6%$5,523,448
      
 Liabilities and Shareholders' Equity:    
   Deposits:    
   Noninterest-Bearing$2,265,640$2,211,0282.5%$2,163,841
   Interest-Bearing Transaction910,566909,9540.1%942,140
   Savings1,445,2101,510,015-4.3%1,442,552
   Time175,207204,840-14.5%181,729
   Total Deposits4,796,6234,835,837-0.8%4,730,262
      
   Short-Term Borrowed Funds45,64661,756-26.1%54,581
   Other Liabilities60,40839,27953.8%45,168
 Total Liabilities4,902,6774,936,872-0.7%4,830,011
      
 Shareholders' Equity:    
   Common Equity:    
   Paid-In Capital463,424449,1803.2%460,140
   Accumulated Other    
   Comprehensive Income (Loss)20,454(54,066)n/m13,124
   Retained Earnings229,500197,47716.2%220,173
 Total Shareholders' Equity713,378592,59120.4%693,437
      
 Total Liabilities and     
   Shareholders' Equity$5,616,055$5,529,4631.6%$5,523,448
      
12. Income Statements.    
  (unaudited, in thousands except per-share amounts)
    % 
  Q3'2019Q3'2018ChangeQ2'2019
 Interest & Fee Income:    
   Loans$14,431$14,593-1.1%$14,822
   Investment Securities:    
   Equity Securities92859.0%99
   Debt Securities Available for Sale18,73615,64419.8%17,823
   Debt Securities Held to Maturity4,5355,931-23.5%4,924
   Interest-Bearing Cash1,9012,361-19.5%1,958
 Total Interest & Fee Income39,69538,6142.8%39,626
      
 Interest Expense:    
   Transaction Deposits92129-28.5%119
   Savings Deposits210229-8.4%212
   Time Deposits145160-9.3%147
   Short-Term Borrowed Funds89-13.7%9
 Total Interest Expense455527-13.7%487
      
 Net Interest Income39,24038,0873.0%39,139
      
 Provision for Loan Losses--n/m-


 Noninterest Income:    
   Service Charges 4,510 4,615  -2.3%4,493
   Merchant Processing Services2,494 2,464  1.2%2,657
   Debit Card Fees1,641 1,656  -0.9%1,641
   Other Service Fees580 665  -12.8%585
   ATM Processing Fees725 687  5.6%722
   Trust Fees733 733  0.1%749
   Life Insurance Gains  -   585  -100.0%  433
   Financial Services Commissions75 132  -43.2%93
   Equity Securities (Losses) Gains   -   (16)n/m  26
   Other1,051 1,007  4.4%889
 Total Noninterest Income11,809 12,528  -5.7%12,288
      
 Noninterest Expense:    
   Salaries and  Benefits12,559 13,415  -6.4%13,090
   Occupancy and Equipment5,199 4,809  8.1%4,916
   Loss Contingency (1)  -   3,500  n/m  553
   Outsourced Data Processing2,374 2,292  3.6%2,367
   Amortization of Identifiable Intangibles76 451  -83.1%79
   Professional Fees645 621  3.9%481
   Courier Service456 448  1.8%451
   Other2,724 3,830  -28.9%3,624
 Total Noninterest Expense24,033 29,366  -18.2%25,561
      
 Income Before Income Taxes27,016 21,249  27.1%25,866
 Income Tax Provision6,626 4,256  55.7%6,241
 Net Income$20,390 $16,993  20.0%$19,625
      
 Average Common Shares Outstanding26,986 26,701  1.1%26,942
 Diluted Common Shares Outstanding27,027 26,815  0.8%26,987
      
 Per Common Share Data:    
   Basic Earnings$0.76 $0.64  18.8%$0.73
   Diluted Earnings0.75 0.63  19.0%0.73
   Dividends Paid0.41 0.40  2.5%0.41
    % 
  9/30'19YTD9/30'18YTDChange 
 Interest & Fee Income:    
   Loans$44,050 $44,247  -0.4% 
   Investment Securities:    
   Equity Securities289 256  13.2% 
   Debt Securities Available for Sale54,080 43,518  24.3% 
   Debt Securities Held to Maturity14,788 18,321  -19.3% 
   Interest-Bearing Cash5,597 5,933  -5.7% 
 Total Interest & Fee Income118,804 112,275  5.8% 
      
 Interest Expense:    
   Transaction Deposits333 249  33.7% 
   Savings Deposits637 675  -5.6% 
   Time Deposits440 493  -10.7% 
   Short-Term Borrowed Funds27 28  -2.4% 
 Total Interest Expense1,437 1,445  -0.5% 
      
 Net Interest Income117,367 110,830  5.9% 
      
 Provision for Loan Losses  -    -  n/m 
      
 Noninterest Income:    
   Service Charges 13,508 14,012  -3.6% 
   Merchant Processing Services7,708 7,190  7.2% 
   Debit Card Fees4,789 4,959  -3.4% 
   Other Service Fees1,742 1,946  -10.5% 
   ATM Processing Fees2,080 2,049  1.5% 
   Trust Fees2,199 2,202  -0.1% 
   Life Insurance Gains433   585  -26.0% 
   Financial Services Commissions270 387  -30.4% 
   Equity Securities Gains (Losses)50    (66)n/m 
   Other2,897 2,988  -3.0% 
 Total Noninterest Income35,676 36,252  -1.6% 
      
 Noninterest Expense:    
   Salaries and  Benefits38,757 39,952  -3.0% 
   Occupancy and Equipment15,163 14,365  5.6% 
   Outsourced Data Processing7,110 6,930  2.6% 
   Loss Contingency (1)553   3,500  n/m 
   Amortization of Identifiable Intangibles465 1,474  -68.4% 
   Professional Fees1,791 2,277  -21.3% 
   Courier Service1,349 1,333  1.2% 
   Other9,589 11,298  -15.1% 
 Total Noninterest Expense74,777 81,129  -7.8% 
      
 Income Before Income Taxes78,266 65,953  18.7% 
 Income Tax Provision18,605 13,444  38.4% 
 Net Income$59,661 $52,509  13.6% 
      
 Average Common Shares Outstanding26,924 26,622  1.1% 
 Diluted Common Shares Outstanding26,976 26,736  0.9% 
      
 Per Common Share Data:    
 Basic Earnings$2.22 $1.97  12.7% 
 Diluted Earnings2.21 1.96  12.8% 
 Dividends Paid1.22 1.20  1.7% 
      
      
 Footnotes and Abbreviations:    
 (1) In the second quarter 2019 and third quarter 2018, the Company recorded $553 thousand and $3.5 million in loss contingencies, respecitvely.  The loss contingencies recorded in the second quarter 2019 include a $301 thousand increase in estimated customer refunds of revenue recognized prior to 2018 and a $252 thousand loss settlement to dismiss a lawsuit.  The loss contingency recorded in the third quarter 2018 was the result of a mediated settlement to dismiss a lawsuit.  The Company does not anticipate additional losses for these matters.
   
 Certain amounts in prior periods have been reclassified to conform to the current presentation. 
  
 (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.  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    
      

v3.19.3
Cover
Oct. 17, 2019
Document Type 8-K
Amendment Flag false
Document Period End Date Oct. 17, 2019
Entity File Number 001-09383
Entity Registrant Name WESTAMERICA BANCORPORATION
Entity Central Index Key 0000311094
Entity Tax Identification Number 94-2156203
Entity Incorporation, State or Country Code CA
Entity Address, Address Line One 1108 Fifth Avenue
Entity Address, City or Town San Rafael
Entity Address, State or Province CA
Entity Address, Postal Zip Code 94901
City Area Code 707
Local Phone Number 863-6000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, no par value
Trading Symbol WABC
Security Exchange Name NASDAQ
Entity Emerging Growth Company false