(Source: Business Wire)
Westamerica Bancorporation (NASDAQ:
WABC) earned net income applicable to common shareholders of $23.8
million, or $0.81 per diluted common share ("EPS"), for the three months
ended September 30, 2009, compared to net income applicable to common
shareholders of $22.1 million, or $0.75 EPS, for the three months ended
June 30, 2009. During the third quarter 2009, Westamerica completed
systems conversions and branch consolidations related to the purchase of
assets and assumption of liabilities of the former County Bank, which
resulted in reduced expense levels. During the third quarter 2009,
Westamerica redeemed $42 million in preferred stock requiring
accelerated discount accretion of $538 thousand, which reduced EPS
$0.02. Also during the third quarter 2009, Westamerica eliminated $587
thousand in tax reserves due to a lapse in the statute of limitations,
which reduced tax provisions and increased EPS $0.02. Third quarter 2009
results represents a 20 percent return on common shareholders' equity.
"The County Bank integration was completed on time in August, and the
efficiencies gained following the integration will continue to benefit
future operating results. The cost of funding our loan and investment
portfolio continued to decline due to our pricing practices and an
improved mix of deposits. The third quarter 2009 cost of funds was 0.40
percent, which supported our 5.48 percent net interest margin. The risk
profile of our loan portfolio is significantly reduced as loss-sharing
agreements with the Federal Deposit Insurance Corporation cover 29
percent of our loan portfolio. The credit quality of the non-FDIC
covered loans remained stable during the quarter," said Chairman,
President and CEO David Payne. "Our healthy profitability and 15.1
percent total regulatory capital ratio distinguishes Westamerica as a
safe and sound bank during this troublesome period for our industry,"
added Payne.
Westamerica generated net income applicable to common shareholders of
$98 million, or $3.35 EPS, during the nine months ended September 30,
2009. Results for this period include a $28.3 million net of tax gain
from the acquisition of assets and assumption of liabilities of the
former County Bank.
Westamerica generated net income applicable to common shareholders of
$39 million, or $1.33 EPS, during the nine months ended September 30,
2008. Results for this period include a $5.7 million gain on the sale of
VISA common stock resulting from VISA's initial public offering ("IPO"),
and $2.3 million in reduced expenses as known litigation contingencies
were satisfied as a part of the VISA IPO. EPS was increased $0.16 due to
transactions recognized as a result of the VISA IPO. Results for this
period also include $34 million in losses, net of tax, recognized as a
result of the decline in value of FHLMC and FNMA preferred stock, which
reduced EPS by $1.17. Also, the Company recorded a $1.0 million
reduction in its tax provision primarily due to filing its 2007 tax
return and adjusting 2007 tax estimates to actual amounts included in
the filed tax return, which increased EPS by $0.03.
Net interest income on a fully-taxable equivalent basis ("FTE") totaled
$61.6 million in the third quarter 2009, compared to $62.3 million in
the second quarter 2009, and $48.7 million in the third quarter 2008.
For the nine month periods ended September 30, 2009 and 2008, net
interest income (FTE) totaled $183.3 million and $146.4 million,
respectively. Net interest income has increased in 2009 compared to 2008
due to acquired County Bank assets and a higher net interest margin. The
net interest margin has improved due to a decline in interest rates paid
on deposits and other borrowings used to fund loans and investment
securities.
The provision for credit losses was $2.8 million for the third quarter
2009, increased from $2.6 million for the previous quarter.
Non-interest income for third quarter 2009 was $16.0 million compared to
$16.4 million in the prior quarter. Service charges on deposit accounts,
ATM fees and debit card fees are higher following the February 6, 2009
assumption of County Bank deposits. Merchant credit card income is lower
in 2009 compared to 2008 due to reduced consumer spending.
Non-interest expense for third quarter 2009 was $35.2 million compared
to $38.7 million in the prior quarter, which included $1.8 million in
higher FDIC insurance fund assessments. Personnel and facilities
expenses (occupancy and equipment combined) have declined following
County Bank systems integrations and branch consolidations.
Non-performing assets not covered by FDIC loss-sharing agreements were
$36 million at September 30, 2009 compared to $35 million at June 30,
2009. Annualized net loan losses on non-FDIC covered loans as a
percentage of average non-FDIC covered loans were 0.56 percent during
both the third and second quarters of 2009. The reserve for loan losses
to non-FDIC covered loans was 1.88 percent and 1.86 percent at September
30, 2009 and June 30, 2009, respectively.
Shareholders' equity was $536 million at September 30, 2009 compared to
$559 million at June 30, 2009. At September 30, 2009, total regulatory
capital ratios for Westamerica Bancorporation and its subsidiary bank,
Westamerica Bank, were 15.1 percent and 14.4 percent, respectively,
exceeding the 10 percent requirement to be "well capitalized" under
regulatory standards.
Westamerica Bancorporation, through its wholly owned subsidiary,
Westamerica Bank, operates 99 branches and two trust offices throughout
Northern and Central California counties.
Westamerica Bancorporation Web Address: www.westamerica.com
FORWARD-LOOKING INFORMATION:
This press release contains forward-looking statements about Westamerica
Bancorporation for which it claims the protection of the safe harbor
provisions contained in the Private Securities Litigation Reform Act of
1995. Examples of forward-looking statements include, but are not
limited to: (i) projections of revenues, expenses, income or loss,
earnings or loss per share, the payment or nonpayment of dividends,
capital structure and other financial items; (ii) statements of plans,
objectives and expectations of the Company or its management or board of
directors, including those relating to products or services; (iii)
statements of future economic performance; and (iv) statements of
assumptions underlying such statements. Words such as "believes",
"anticipates", "expects", "intends", "targeted", "projected",
"continue", "remain", "will", "should", "may" and other similar
expressions are intended to identify forward-looking statements but are
not the exclusive means of identifying such statements.
These forward-looking statements are based on Management's current
knowledge and belief and include information concerning the Company's
possible or assumed future financial condition and results of
operations. A number of factors, some of which are beyond the Company's
ability to predict or control, could cause future results to differ
materially from those contemplated. The Company's most recent quarterly
report on Form 10-Q for the quarter ended June 30, 2009 and annual
report on Form 10-K for the year ended December 31, 2008 filed with the
Securities and Exchange Commission describe some of these factors. These
factors include but are not limited to (1) the length and severity of
current difficulties in the national and California economies and the
effects of federal and state government efforts to address those
difficulties; (2) continued low liquidity levels in capital markets; (3)
fluctuations in asset prices including, but not limited to, stocks,
bonds, real estate, and commodities; (4) the effect of acquisitions and
integration of acquired businesses including the recently acquired
County Bank; (5) economic uncertainty created by terrorist threats and
attacks on the United States, the actions taken in response, and the
uncertain effect of these events on the national and regional economies;
(6) changes in the interest rate environment; (7) changes in the
regulatory environment; (8) significantly increasing competitive
pressure in the banking industry; (9) operational risks including data
processing system failures or fraud; (10) volatility of rate sensitive
loans, deposits and investments; (11) asset/liability management risks
and liquidity risks; and (12) changes in the securities markets. The
Company undertakes no obligation to update any forward-looking
statements to reflect circumstances or events that occur after the date
forward-looking statements are made.
Forward-looking statements speak only as of the date they are made.
Public Information October 14, 2009
WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
September 30, 2009
1. Net Income Summary.
(dollars in thousands except per-share amounts)
%
Q3'09 Q3'08 Change Q2'09
Net Interest Income (FTE) $ 61,593 $ 48,693 26.5 % $ 62,318
Provision for Loan Losses 2,800 600 366.7 % 2,600
Noninterest Income:
Net Loss From Equity Securities 0 (41,206 ) n/m 0
FAS 141R Gain 0 0 n/m 0
Other 15,961 13,707 16.4 % 16,386
Total Noninterest Income (Loss) 15,961 (27,499 ) n/m 16,386
Noninterest Expense:
VISA Litigation 0 0 n/m 0
Other 35,151 25,203 39.5 % 38,666
Total Noninterest Expense 35,151 25,203 39.5 % 38,666
Income (Loss) Before Taxes (FTE) 39,603 (4,609 ) n/m 37,438
Income Tax Provision (Benefit) (FTE) 14,346 (4,653 ) n/m 14,255
Net Income 25,257 44 n/m 23,183
Preferred Stock Dividends and
Discount Accretion 1,466 0 n/m 1,107
Net Income Applicable to
Common Equity $ 23,791 $ 44 n/m $ 22,076
Average Common Shares Outstanding 29,210 28,908 1.0 % 29,126
Diluted Average Common Shares 29,429 29,273 0.5 % 29,403
Operating Ratios:
Basic Earnings Per Common Share $ 0.81 $ 0.00 n/m $ 0.76
Diluted Earnings Per Common Share 0.81 0.00 n/m 0.75
Return On Assets (a) 1.86 % 0.00 % 1.68 %
Return On Common Equity (a) 19.7 % 0.0 % 19.0 %
Net Interest Margin (FTE) (a) 5.48 % 5.19 % 5.34 %
Efficiency Ratio (FTE) 45.3 % 118.9 % 49.1 %
Dividends Paid Per Common Share $ 0.35 $ 0.35 0.0 % $ 0.35
Common Dividend Payout Ratio 43 % n/m 47 %
(a) Annualized
%
9/30'09YTD 9/30'08YTD Change
Net Interest Income (FTE) $ 183,270 $ 146,407 25.2 %
Provision for Loan Losses 7,200 1,800 300.0 %
Noninterest Income:
Net Loss From Equity Securities 0 (53,686 ) n/m
FAS 141R Gain 48,844 0 n/m
Other 47,471 41,723 13.8 %
Total Noninterest Income (Loss) 96,315 (11,963 ) n/m
Noninterest Expense:
VISA Litigation 0 (2,338 ) n/m
Other 107,940 76,934 40.3 %
Total Noninterest Expense 107,940 74,596 44.7 %
Income Before Taxes (FTE) 164,445 58,048 n/m
Income Tax Provision (FTE) 63,180 19,023 n/m
Net Income 101,265 39,025 n/m
Preferred Stock Dividends and
Discount Accretion 3,151 0 n/m
Net Income Applicable to
Common Equity $ 98,114 $ 39,025 n/m
Average Common Shares Outstanding 29,072 28,895 0.6 %
Diluted Average Common Shares 29,313 29,292 0.1 %
Operating Ratios:
Basic Earnings Per Common Share $ 3.37 $ 1.35 149.6 %
Diluted Earnings Per Common Share 3.35 1.33 151.9 %
Return On Assets (a) 2.57 % 1.22 %
Return On Common Equity (a) 28.4 % 12.8 %
Net Interest Margin (FTE) (a) 5.39 % 5.04 %
Efficiency Ratio (FTE) 38.6 % 55.5 %
Dividends Paid Per Common Share $ 1.06 $ 1.04 1.9 %
Common Dividend Payout Ratio 32 % 78 %
(a) Annualized
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2. Net Interest Income.
(dollars in thousands)
%
Q3'09 Q3'08 Change Q2'09
Interest and Fee Income (FTE) $ 66,093 $ 56,131 17.7 % $ 68,063
Interest Expense 4,500 7,438 -39.5 % 5,745
Net Interest Income (FTE) $ 61,593 $ 48,693 26.5 % $ 62,318
Average Earning Assets $ 4,470,851 $ 3,745,058 19.4 % $ 4,678,615
Average Interest-Bearing Liabilities 3,094,081 2,486,659 24.4 % 3,311,650
Yield on Earning Assets (FTE) (a) 5.88 % 5.98 % 5.83 %
Cost of Funds (a) 0.40 % 0.79 % 0.49 %
Net Interest Margin (FTE) (a) 5.48 % 5.19 % 5.34 %
Interest Expense/Interest-Bearing Liabilities (a) 0.58 % 1.19 % 0.70 %
Net Interest Spread (FTE) (a) 5.30 % 4.79 % 5.13 %
%
9/30'09YTD 9/30'08YTD Change
Interest and Fee Income (FTE) $ 198,348 $ 175,058 13.3 %
Interest Expense 15,078 28,651 -47.4 %
Net Interest Income (FTE) $ 183,270 $ 146,407 25.2 %
Average Earning Assets $ 4,541,596 $ 3,878,972 17.1 %
Average Interest-Bearing Liabilities 3,186,913 2,615,724 21.8 %
Yield on Earning Assets (FTE) (a) 5.83 % 6.02 %
Cost of Funds (a) 0.44 % 0.98 %
Net Interest Margin (FTE) (a) 5.39 % 5.04 %
Interest Expense/Interest-Bearing Liabilities (a) 0.63 % 1.46 %
Net Interest Spread (FTE) (a) 5.20 % 4.56 %
(a) Annualized
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3. Loans & Other Earning Assets.
