Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the third quarter 2020 of $20.1 million and diluted earnings per common share (“EPS”) of $0.74. These results compare to net income of $19.6 million and EPS of $0.72 for the second quarter 2020 and net income of $20.4 million and EPS of $0.75 for the third quarter 2019. The third quarter 2019 results benefited from expense reducing FDIC insurance assessment credits.

“Westamerica is focusing on maintaining superior customer service during the pandemic. In keeping all our branches open, we are following all health orders affecting our business to provide a safe environment for our customers and employees. Westamerica’s non-interest revenues improved $922 thousand in the third quarter 2020 compared to the prior quarter as economic activity showed some improvement. Net interest income on a fully-tax equivalent basis declined $283 thousand in the third quarter 2020 compared to the prior quarter due to low market interest rates. Operating expenses were $24.6 million for the third quarter 2020, representing only 47 percent of revenues on a fully-taxable equivalent basis. Credit quality remained stable with nonperforming loans of $4.7 million at September 30, 2020,” said Chairman, President and CEO David Payne. “Third quarter 2020 results generated an annualized 11.2 percent return on average common equity, and shareholders were paid a $0.41 per common share dividend during the quarter,” concluded Payne.

Net interest income on a fully-taxable equivalent (FTE) basis was $41.8 million for the third quarter 2020, compared to $42.1 million for the second quarter 2020 and $40.3 million for the third quarter 2019. The annualized net interest margin (FTE) was 2.78 percent for the third quarter 2020, compared to 2.99 percent for the second quarter 2020 and 3.11 percent for the third quarter 2019. The decline in the margin is due to lower yields on interest-earning assets. Average total deposits grew $333 million from the second quarter 2020 to the third quarter 2020. Checking and savings deposits represented ninety-seven percent of the Company’s average deposit base during the third quarter 2020 generating a 0.03 percent annualized cost of funding interest-earning assets.

The Company continues to work with loan customers requesting deferral of loan payments due to economic weakness caused by the pandemic. At September 30, 2020, consumer loans granted loan deferrals totaled $5.0 million, commercial real estate loans with deferred payments totaled $19.1 million, primarily for hospitality, restaurant and retail properties, and commercial loans with deferred payments totaled $209 thousand. The commercial real estate loans with deferred payments are seasoned with low loan-to-value ratios.

Nonperforming assets were $4.8 million at September 30, 2020. The Company’s allowance for credit losses was $24.2 million at September 30, 2020. The Company recognized no provision for credit losses in the third quarter 2020.

Noninterest income for the third quarter 2020 totaled $10.5 million, compared to $9.6 million for the second quarter 2020; the increase is due to an improvement in merchant processing service fees and debit card fees. Noninterest income was $1.3 million lower for the third quarter 2020 compared to the third quarter 2019; the decrease is due to lower economic activity reducing activity-based fees related to deposit accounts.

Noninterest expense for the third quarter 2020 was $24.6 million compared to $24.8 million for the second quarter 2020 and $24.0 million for the third quarter 2019.

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 & Treasurer     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, 2019 filed on Form 10-K and quarterly report for the quarter ended June 30, 2020 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 15, 2020    
WESTAMERICA BANCORPORATION          
FINANCIAL HIGHLIGHTS          
September 30, 2020          
             
1. Net Income Summary.          
    (in thousands except per-share amounts)  
        %    
    Q3’2020 Q3’2019 Change Q2’2020  
             
  Net Interest and Fee Income (FTE) $41,780 $40,349 3.5% $42,063  
  Provision for Credit Losses - - n/m -  
  Noninterest Income 10,476 11,809 -11.3% 9,554  
  Noninterest Expense 24,603 24,033 2.4% 24,754  
  Income Before Taxes (FTE) 27,653 28,125 -1.7% 26,863  
  Income Tax Provision (FTE) 7,602 7,735 -1.7% 7,301  
  Net Income $20,051 $20,390 -1.7% $19,562  
             
  Average Common Shares Outstanding 26,930 26,986 -0.2% 26,935  
  Diluted Average Common Shares 26,946 27,027 -0.3% 26,951  
             
  Operating Ratios:          
  Basic Earnings Per Common Share $0.74 $0.76 -2.6% $0.72  
  Diluted Earnings Per Common Share 0.74 0.75 -1.3% 0.72  
  Return On Assets (a) 1.24% 1.45%   1.30%  
  Return On Common Equity (a) 11.2% 11.9%   11.1%  
  Net Interest Margin (FTE) (a) 2.78% 3.11%   2.99%  
  Efficiency Ratio (FTE) 47.1% 46.1%   48.0%  
             
  Dividends Paid Per Common Share $0.41 $0.41 0.0% $0.41  
  Common Dividend Payout Ratio 55% 55%   57%  
             
        %    
    9/30’20YTD 9/30’19YTD Change    
             
  Net Interest and Fee Income (FTE) $124,390 $120,925 2.9%    
  Provision for Credit Losses 4,300 - n/m    
  Noninterest Income 31,678 35,676 -11.2%    
  Noninterest Expense 74,021 74,777 -1.0%    
  Income Before Taxes (FTE) 77,747 81,824 -5.0%    
  Income Tax Provision (FTE) 21,172 22,163 -4.5%    
  Net Income $56,575 $59,661 -5.2%    
             
  Average Common Shares Outstanding 26,977 26,924 0.2%    
  Diluted Average Common Shares 26,998 26,976 0.1%    
             
  Operating Ratios:          
  Basic Earnings Per Common Share $2.10 $2.22 -5.4%    
  Diluted Earnings Per Common Share 2.10 2.21 -5.0%    
  Return On Assets (a) 1.25% 1.43%      
  Return On Common Equity (a) 10.7% 11.9%      
  Net Interest Margin (FTE) (a) 2.95% 3.12%      
  Efficiency Ratio (FTE) 47.4% 47.8%      
             
  Dividends Paid Per Common Share $1.23 $1.22 0.8%    
  Common Dividend Payout Ratio 59% 55%      
             
2. Net Interest Income.          
    (dollars in thousands)  
        %    
    Q3’2020 Q3’2019 Change Q2’2020  
             
  Interest and Fee Income (FTE) $42,246 $40,804 3.5% $42,498  
  Interest Expense 466 455 2.4% 435  
  Net Interest and Fee Income (FTE) $41,780 $40,349 3.5% $42,063  
             
  Average Earning Assets $6,001,287 $5,176,744 15.9% $5,635,014  
  Average Interest-          
  Bearing Liabilities 2,931,717 2,586,880 13.3% 2,774,450  
             
  Yield on Earning Assets (FTE) (a) 2.81% 3.15%   3.02%  
  Cost of Funds (a) 0.03% 0.04%   0.03%  
  Net Interest Margin (FTE) (a) 2.78% 3.11%   2.99%  
  Interest Expense/          
  Interest-Bearing Liabilities (a) 0.06% 0.07%   0.06%  
  Net Interest Spread (FTE) (a) 2.75% 3.08%   2.96%  
             
        %    
    9/30’20YTD 9/30’19YTD Change    
             
  Interest and Fee Income (FTE) $125,733 $122,362 2.8%    
  Interest Expense 1,343 1,437 -6.5%    
  Net Interest and Fee Income (FTE) $124,390 $120,925 2.9%    
             
  Average Earning Assets $5,627,517 $5,173,581 8.8%    
  Average Interest-          
  Bearing Liabilities 2,785,451 2,640,705 5.5%    
             
  Yield on Earning Assets (FTE) (a) 2.98% 3.16%      
  Cost of Funds (a) 0.03% 0.04%      
  Net Interest Margin (FTE) (a) 2.95% 3.12%      
  Interest Expense/          
  Interest-Bearing Liabilities (a) 0.06% 0.07%      
  Net Interest Spread (FTE) (a) 2.92% 3.09%      
             
3. Loans & Other Earning Assets.          
    (average volume, dollars in thousands)  
        %    
    Q3’2020 Q3’2019 Change Q2’2020  
             
  Total Assets $6,414,399 $5,570,843 15.1% $6,058,365  
  Total Earning Assets 6,001,287 5,176,744 15.9% 5,635,014  
  Total Loans 1,312,758 1,142,668 14.9% 1,232,073  
  Total Commercial Loans 444,091 231,232 92.1% 344,053  
  Paycheck Protection Program (PPP) Loans 243,104 - n/m 132,500  
  Commercial Loans 200,987 231,232 -13.1% 211,553  
  Commercial RE Loans 566,626 579,069 -2.1% 578,572  
  Consumer Loans 302,041 332,367 -9.1% 309,448  
  Total Investment Securities 4,360,119 3,687,049 18.3% 3,957,851  
  Equity Securities - 352 n/m -  
  Debt Securities Available For Sale 3,750,737 2,862,537 31.0% 3,293,009  
  Debt Securities Held To Maturity 609,382 824,160 -26.1% 664,842  
  Total Interest-Bearing Cash 328,410 347,027 -5.4% 445,090  
             
  Loans/Deposits 23.7% 24.0%   23.7%  
             
        %    
    9/30’20YTD 9/30’19YTD Change    
             
  Total Assets $6,044,098 $5,580,965 8.3%    
  Total Earning Assets 5,627,517 5,173,581 8.8%    
  Total Loans 1,223,250 1,177,057 3.9%    
  Total Commercial Loans 337,566 258,317 30.7%    
  PPP Loans 125,632 - n/m    
  Commercial Loans 211,934 258,317 -18.0%    
  Commercial RE Loans 574,950 580,453 -0.9%    
  Consumer Loans 310,734 338,287 -8.1%    
  Total Investment Securities 4,055,733 3,675,102 10.4%    
  Equity Securities - 1,285 n/m    
  Debt Securities Available For Sale 3,394,467 2,782,898 22.0%    
  Debt Securities Held To Maturity 661,266 890,919 -25.8%    
  Total Interest-Bearing Cash 348,534 321,422 8.4%    
             
  Loans/Deposits 23.6% 24.6%      
             
4. Deposits, Other Interest-Bearing Liabilities & Equity.      
    (average volume, dollars in thousands)  
        %    
    Q3’2020 Q3’2019 Change Q2’2020  
             
  Total Deposits $5,533,144 $4,770,976 16.0% $5,200,475  
  Noninterest Demand 2,695,458 2,234,494 20.6% 2,496,840  
  Interest-Bearing Transaction 1,039,833 916,180 13.5% 980,872  
  Savings 1,634,814 1,441,282 13.4% 1,558,201  
  Time greater than $100K 72,045 77,568 -7.1% 72,267  
  Time less than $100K 90,994 101,452 -10.3% 92,295  
  Total Short-Term Borrowings 94,031 50,398 86.6% 70,116  
  Other Borrowed Funds - - n/m 699  
  Shareholders’ Equity 714,400 681,513 4.8% 705,882  
             
  Demand Deposits/          
  Total Deposits 48.7% 46.8%   48.0%  
  Transaction & Savings          
  Deposits / Total Deposits 97.1% 96.2%   96.8%  
             
        %    
    9/30’20YTD 9/30’19YTD Change    
             
  Total Deposits $5,188,797 $4,789,084 8.3%    
  Noninterest Demand 2,472,495 2,203,755 12.2%    
  Interest-Bearing Transaction 987,666 935,811 5.5%    
  Savings 1,563,387 1,464,037 6.8%    
  Time greater than $100K 72,718 80,142 -9.3%    
  Time less than $100K 92,531 105,339 -12.2%    
  Total Short-Term Borrowings 68,917 55,376 24.5%    
  Other Borrowed Funds 232 - n/m    
  Shareholders’ Equity 708,559 669,043 5.9%    
             
  Demand Deposits/          
  Total Deposits 47.7% 46.0%      
  Transaction & Savings          
  Deposits / Total Deposits 96.8% 96.1%      
             
5. Interest Yields Earned & Rates Paid.          
    (dollars in thousands)    
    Q3’2020    
    Average Income/ Yield (a) /    
    Volume Expense Rate (a)    
             
  Interest & Fee Income Earned          
  Total Earning Assets (FTE) $6,001,287 $42,246 2.81%    
  Total Loans (FTE) 1,312,758 15,394 4.67%    
  Total Commercial Loans (FTE) 444,091 4,648 4.16%    
  PPP Loans 243,104 2,501 4.08%    
  Commercial Loans (FTE) 200,987 2,147 4.25%    
  Commercial RE Loans 566,626 7,298 5.12%    
  Consumer Loans 302,041 3,448 4.54%    
  Total Investments (FTE) 4,360,119 26,768 2.46%    
  Total Interest-Bearing Cash 328,410 84 0.10%    
             
  Interest Expense Paid          
  Total Earning Assets 6,001,287 466 0.03%    
  Total Interest-Bearing Liabilities 2,931,717 466 0.06%    
  Total Interest-Bearing Deposits 2,837,686 450 0.06%    
  Interest-Bearing Transaction 1,039,833 85 0.03%    
  Savings 1,634,814 238 0.06%    
  Time less than $100K 90,994 47 0.21%    
  Time greater than $100K 72,045 80 0.44%    
  Total Short-Term Borrowings 94,031 16 0.07%    
  Other Borrowed Funds - - n/m    
             
  Net Interest Income and          
  Margin (FTE)   $41,780 2.78%    
             
    Q3’2019    
    Average Income/ Yield (a) /    
    Volume Expense Rate (a)    
  Interest & Fee Income Earned          
  Total Earning Assets (FTE) $5,176,744 $40,804 3.15%    
  Total Loans (FTE) 1,142,668 14,535 5.05%    
  Commercial Loans (FTE) 231,232 3,102 5.32%    
  Commercial RE Loans 579,069 7,772 5.32%    
  Consumer Loans 332,367 3,661 4.37%    
  Total Investments (FTE) 3,687,049 24,368 2.64%    
  Total Interest-Bearing Cash 347,027 1,901 2.14%    
             
  Interest Expense Paid          
  Total Earning Assets 5,176,744 455 0.04%    
  Total Interest-Bearing Liabilities 2,586,880 455 0.07%    
  Total Interest-Bearing Deposits 2,536,482 447 0.07%    
  Interest-Bearing Transaction 916,180 92 0.04%    
  Savings 1,441,282 210 0.06%    
  Time less than $100K 101,452 64 0.25%    
  Time greater than $100K 77,568 81 0.41%    
  Total Short-Term Borrowings 50,398 8 0.06%    
             
  Net Interest Income and          
  Margin (FTE)   $40,349 3.11%    
             
6. Noninterest Income.          
    (dollars in thousands except per-share amounts)  
        %    
    Q3’2020 Q3’2019 Change Q2’2020  
             
  Service Charges on Deposits $3,298 $4,510 -26.9% $3,151  
  Merchant Processing Services 2,860 2,494 14.7% 2,277  
  Debit Card Fees 1,611 1,641 -1.8% 1,459  
  Trust Fees 756 733 3.1% 714  
  ATM Processing Fees 606 725 -16.4% 518  
  Other Service Fees 454 580 -21.7% 420  
  Financial Services Commissions 58 75 -22.7% 123  
  Securities Gains - - n/m 71  
  Other Operating 833 1,051 -20.7% 821  
  Total Noninterest Income $10,476 $11,809 -11.3% $9,554  
             
  Total Revenue (FTE) $52,256 $52,158 0.2% $51,617  
  Noninterest Income/Revenue (FTE) 20.0% 22.6%   18.5%  
  Service Charges/Avg. Deposits (a) 0.24% 0.38%   0.24%  
  Total Revenues (FTE) Per Avg.          
  Common Share (a) $7.72 $7.67 0.7% $7.71  
             
        %    
    9/30’20YTD 9/30’19YTD Change    
             
  Service Charges on Deposits $10,697 $13,508 -20.8%    
  Merchant Processing Services 7,495 7,708 -2.8%    
  Debit Card Fees 4,538 4,789 -5.2%    
  Trust Fees 2,247 2,199 2.2%    
  ATM Processing Fees 1,703 2,080 -18.1%    
  Other Service Fees 1,380 1,742 -20.8%    
  Financial Services Commissions 306 270 13.4%    
  Life Insurance Gains - 433 n/m    
  Securities Gains 71 50 n/m    
  Other Operating (4) 3,241 2,897 11.9%    
  Total Noninterest Income $31,678 $35,676 -11.2%    
             
  Total Revenue (FTE) $156,068 $156,601 -0.3%    
  Noninterest Income/Revenue (FTE) 20.3% 22.8%      
  Service Charges/Avg. Deposits (a) 0.28% 0.38%      
  Total Revenues (FTE) Per Avg./          
  Common Share (a) $7.73 $7.78 -0.6%    
             
7. Noninterest Expense.          
    (dollars in thousands)  
        %    
    Q3’2020 Q3’2019 Change Q2’2020  
             
  Salaries & Benefits $12,540 $12,559 -0.2% $12,900  
  Occupancy and Equipment 5,014 5,199 -3.6% 4,791  
  Outsourced Data Processing 2,338 2,374 -1.5% 2,324  
  Professional Fees 669 645 3.7% 643  
  Courier Service 500 456 9.6% 508  
  Amortization of          
  Identifiable Intangibles 72 76 -5.3% 73  
  Other Operating 3,470 2,724 27.4% 3,515  
  Total Noninterest Expense $24,603 $24,033 2.4% $24,754  
             
  Noninterest Expense/          
   Avg. Earning Assets (a) 1.63% 1.84%   1.77%  
  Noninterest Expense/Revenues (FTE) 47.1% 46.1%   48.0%  
             
        %    
    9/30’20YTD 9/30’19YTD Change    
             
  Salaries & Benefits $38,458 $38,757 -0.8%    
  Occupancy and Equipment 14,737 15,163 -2.8%    
  Outsourced Data Processing 7,067 7,110 -0.6%    
  Professional Fees 1,701 1,791 -5.0%    
  Courier Service 1,499 1,349 11.1%    
  Amortization of          
  Identifiable Intangibles 218 465 -53.1%    
  Loss Contingency (1) - 553 n/m    
  Other Operating 10,341 9,589 7.8%    
  Total Noninterest Expense $74,021 $74,777 -1.0%    
             
  Noninterest Expense/          
  Avg. Earning Assets (a) 1.76% 1.93%      
  Noninterest Expense/Revenues (FTE) 47.4% 47.8%      
             
8. Allowance for Credit Losses.          
    (dollars in thousands)  
        %    
    Q3’2020 Q3’2019 Change Q2’2020  
             
  Average Total Loans $1,312,758 $1,142,668 14.9% $1,232,073  
             
  Beginning of Period Allowance for          
  Credit Losses on Loans (ACLL) $24,529 $20,117 21.9% $24,804  
  Provision for Credit Losses - - n/m -  
  Net ACLL Losses (387) (289) 33.9% (275)  
  End of Period ACLL $24,142 $19,828 21.8% $24,529  
  Gross ACLL Recoveries /          
  Gross ACLL Losses 56% 72%   66%  
  Net ACLL Losses /          
  Avg. Total Loans (a) 0.12% 0.10%   0.09%  
             
        %    
    9/30’20YTD 9/30’19YTD Change    
             
  Average Total Loans $1,223,250 $1,177,057 3.9%    
             
  Prior Period Allowance for          
  Credit Losses on Loans (ACLL) $19,484 $21,351 -8.7%    
  Adoption of ASU 2016-13(2) 2,017 - n/m    
  Beginning of Period ACLL 21,501 21,351 0.7%    
  Provision for Credit Losses 4,300 - n/m    
  Net ACLL Losses (1,659) (1,523) 8.9%    
  End of Period ACLL $24,142 $19,828 21.8%    
  Gross ACLL Recoveries /          
  Gross ACLL Losses 49% 55%      
  Net ACLL Losses /          
  Avg. Total Loans (a) 0.18% 0.17%      
             
    (dollars in thousands)  
        %    
    9/30/20 9/30/19 Change 6/30/20  
  Allowance for Credit Losses on Loans $24,142 $19,828 21.8% $24,529  
  Allowance for Credit Losses on          
  HTM Securities 16 - n/m 16  
  Total Allowance for Credit Losses $24,158 $19,828 21.8% $24,545  
             
  Allowance for Unfunded          
  Credit Commitments 53 2,308 -97.7% 53  
             
9. Credit Quality.          
    (dollars in thousands)  
        %    
    9/30/20 9/30/19 Change 6/30/20  
  Nonperforming Loans:          
  Nonperforming Nonaccrual $409 $633 -35.4% $590  
  Performing Nonaccrual 3,971 3,670 8.2% 3,643  
  Total Nonaccrual Loans 4,380 4,303 1.8% 4,233  
  90+ Days Past Due Accruing Loans 360 351 2.6% 290  
  Total 4,740 4,654 1.8% 4,523  
  Repossessed Loan Collateral 43 43 0.0% 43  
  Total Nonperforming Assets $4,783 $4,697 1.8% $4,566  
             
  Total Loans Outstanding $1,310,009 $1,133,229 15.6% $1,316,359  
             
  Total Assets $6,563,215 $5,616,055 16.9% $6,463,889  
             
  Loans:          
  Allowance for Credit Losses on Loans $24,142 $19,828 21.8% $24,529  
  Allowance for Credit Losses on Loans /          
  Loans 1.84% 1.75%   1.86%  
  Nonperforming Loans/Total Loans 0.36% 0.41%   0.34%  
             
10. Capital.          
    (in thousands, except per-share amounts)  
        %    
    9/30/20 9/30/19 Change 6/30/20  
             
  Shareholders’ Equity $825,576 $713,378 15.7% $808,076  
  Total Assets 6,563,215 5,616,055 16.9% 6,463,889  
  Shareholders’ Equity/          
  Total Assets 12.58% 12.70%   12.50%  
  Shareholders’ Equity/          
  Total Loans 63.02% 62.95%   61.39%  
  Tangible Common Equity Ratio 10.91% 10.75%   10.81%  
  Common Shares Outstanding 26,898 27,014 -0.4% 26,933  
  Common Equity Per Share $30.69 $26.41 16.2% $30.00  
  Market Value Per Common Share 54.35 62.18 -12.6% 57.42  
             
  Share Repurchase Programs          
    (shares in thousands)  
        %    
    Q3’2020 Q3’2019 Change Q2’2020  
             
  Total Shares Repurchased 35 - n/m 13  
  Average Repurchase Price $52.42 $- n/m $52.27  
  Net Shares Repurchased (Issued) 35 (52) n/m (1)  
             
        %    
    9/30'20YTD 9/30'19YTD Change    
             
  Total Shares Repurchased 228 8 n/m    
  Average Repurchase Price $51.39 $61.98 n/m    
  Net Shares Repurchased ( Issued) 164 (284) n/m    
             
11. Period-End Balance Sheets.          
    (unaudited, dollars in thousands)  
        %    
    9/30/20 9/30/19 Change 6/30/20  
  Assets:          
  Cash and Due from Banks $398,964 $415,639 -4.0% $500,820  
             
  Investment Securities:          
  Equity Securities - - n/m -  
  Debt Securities Available For Sale 3,983,994 2,983,767 33.5% 3,708,370  
  Debt Securities Held To Maturity (3) 577,795 793,216 -27.2% 638,281  
             
  Loans 1,310,009 1,133,229 15.6% 1,316,359  
  Allowance For Credit Losses on Loans (24,142) (19,828) 21.8% (24,529)  
  Total Loans, net 1,285,867 1,113,401 15.5% 1,291,830  
             
  Other Real Estate Owned 43 43 0.0% 43  
  Premises and Equipment, net 33,437 34,080 -1.9% 34,061  
  Identifiable Intangibles, net 1,173 1,464 -19.9% 1,245  
  Goodwill 121,673 121,673 0.0% 121,673  
  Other Assets 160,269 152,772 4.9% 167,566  
             
  Total Assets $6,563,215 $5,616,055 16.9% $6,463,889  
             
  Liabilities and Shareholders’ Equity:          
  Deposits:          
  Noninterest-Bearing $2,684,028 $2,265,640 18.5% $2,702,885  
  Interest-Bearing Transaction 1,040,712 910,566 14.3% 997,593  
  Savings 1,653,000 1,445,210 14.4% 1,605,169  
  Time 161,450 175,207 -7.9% 162,765  
  Total Deposits 5,539,190 4,796,623 15.5% 5,468,412  
             
  Short-Term Borrowed Funds 107,973 45,646 136.5% 86,170  
  Other Liabilities 90,476 60,408 49.8% 101,231  
  Total Liabilities 5,737,639 4,902,677 17.0% 5,655,813  
             
  Shareholders’ Equity:          
  Common Equity:          
  Paid-In Capital 467,236 463,424 0.8% 467,386  
  Accumulated Other          
  Comprehensive Income 103,623 20,454 n/m 93,732  
  Retained Earnings 254,717 229,500 11.0% 246,958  
  Total Shareholders’ Equity 825,576 713,378 15.7% 808,076  
             
  Total Liabilities and          
  Shareholders’ Equity $6,563,215 $5,616,055 16.9% $6,463,889  
             
12. Income Statements.          
    (unaudited, in thousands except per-share amounts)  
        %    
    Q3’2020 Q3’2019 Change Q2’2020  
  Interest & Fee Income:          
  Loans $15,291 $14,431 6.0% $15,278  
  Investment Securities:          
  Equity Securities 103 92 12.0% 103  
  Debt Securities Available For Sale 22,652 18,736 20.9% 22,429  
  Debt Securities Held To Maturity 3,235 4,535 -28.7% 3,616  
  Interest-Bearing Cash 84 1,901 -95.6% 113  
  Total Interest & Fee Income 41,365 39,694 4.2% 41,539  
             
  Interest Expense:          
  Transaction Deposits 85 92 -7.6% 74  
  Savings Deposits 238 210 13.3% 224  
  Time Deposits 127 145 -12.4% 126  
  Short-Term Borrowed Funds 16 8 95.1% 10  
  Other Borrowed Funds - - n/m 1  
  Total Interest Expense 466 455 2.4% 435  
             
  Net Interest Income 40,899 39,240 4.2% 41,104  
             
  Provision for Credit Losses - - n/m -  
             
  Noninterest Income:          
  Service Charges 3,298 4,510 -26.9% 3,151  
  Merchant Processing Services 2,860 2,494 14.7% 2,277  
  Debit Card Fees 1,611 1,641 -1.9% 1,459  
  Trust Fees 756 733 3.0% 714  
  ATM Processing Fees 606 725 -16.4% 518  
  Other Service Fees 454 580 -21.7% 420  
  Financial Services Commissions 58 75 -22.7% 123  
  Securities Gains - - n/m 71  
  Other Operating 833 1,051 -20.7% 821  
  Total Noninterest Income 10,476 11,809 -11.3% 9,554  
             
  Noninterest Expense:          
  Salaries and Benefits 12,540 12,559 -0.2% 12,900  
  Occupancy and Equipment 5,014 5,199 -3.6% 4,791  
  Outsourced Data Processing 2,338 2,374 -1.5% 2,324  
  Professional Fees 669 645 3.7% 643  
  Courier Service 500 456 9.6% 508  
  Amortization of Identifiable Intangibles 72 76 -5.3% 73  
  Other Operating 3,470 2,724 27.4% 3,515  
  Total Noninterest Expense 24,603 24,033 2.4% 24,754  
             
  Income Before Income Taxes 26,772 27,016 -0.9% 25,904  
  Income Tax Provision 6,721 6,626 1.4% 6,342  
  Net Income $20,051 $20,390 -1.7% $19,562  
             
  Average Common Shares Outstanding 26,930 26,986 -0.2% 26,935  
  Diluted Common Shares Outstanding 26,946 27,027 -0.3% 26,951  
             
  Per Common Share Data:          
  Basic Earnings $0.74 $0.76 -2.6% $0.72  
  Diluted Earnings 0.74 0.75 -1.3% 0.72  
  Dividends Paid 0.41 0.41 0.0% 0.41  
        %    
    9/30’20YTD 9/30’19YTD Change    
  Interest & Fee Income:          
  Loans $44,378 $44,050 0.7%    
  Investment Securities:          
  Equity Securities 309 289 6.9%    
  Debt Securities Available For Sale 66,396 54,080 22.8%    
  Debt Securities Held To Maturity 10,759 14,788 -27.2%    
  Interest-Bearing Cash 1,053 5,597 -81.2%    
  Total Interest & Fee Income 122,895 118,804 3.4%    
             
  Interest Expense:          
  Transaction Deposits 243 333 -27.0%    
  Savings Deposits 679 637 6.5%    
  Time Deposits 386 440 -12.3%    
  Short-Term Borrowed Funds 34 27 25.9%    
  Other Borrowed Funds 1 - n/m    
  Total Interest Expense 1,343 1,437 -6.5%    
             
  Net Interest Income 121,552 117,367 3.6%    
             
  Provision for Credit Losses 4,300 - n/m    
             
  Noninterest Income:          
  Service Charges 10,697 13,508 -20.8%    
  Merchant Processing Services 7,495 7,708 -2.8%    
  Debit Card Fees 4,538 4,789 -5.2%    
  Trust Fees 2,247 2,199 2.2%    
  ATM Processing Fees 1,703 2,080 -18.1%    
  Other Service Fees 1,380 1,742 -20.8%    
  Financial Services Commissions 306 270 13.3%    
  Life Insurance Gains - 433 n/m    
  Securities Gains 71 50 n/m    
  Other Operating (4) 3,241 2,897 11.9%    
  Total Noninterest Income 31,678 35,676 -11.2%    
             
  Noninterest Expense:          
  Salaries and Benefits 38,458 38,757 -0.8%    
  Occupancy and Equipment 14,737 15,163 -2.8%    
  Outsourced Data Processing 7,067 7,110 -0.6%    
  Professional Fees 1,701 1,791 -5.0%    
  Courier Service 1,499 1,349 11.1%    
  Amortization of Identifiable Intangibles 218 465 -53.1%    
  Loss Contingency (1) - 553 n/m    
  Other Operating 10,341 9,589 7.8%    
  Total Noninterest Expense 74,021 74,777 -1.0%    
             
  Income Before Income Taxes 74,909 78,266 -4.3%    
  Income Tax Provision 18,334 18,605 -1.5%    
  Net Income $56,575 $59,661 -5.2%    
             
  Average Common Shares Outstanding 26,977 26,924 0.2%    
  Diluted Common Shares Outstanding 26,998 26,976 0.1%    
             
  Per Common Share Data:          
  Basic Earnings $2.10 $2.22 -5.4%    
  Diluted Earnings 2.10 2.21 -5.0%    
  Dividends Paid 1.23 1.22 0.8%    
             
             
  Footnotes and Abbreviations:          
             
  (1) In the second quarter 2019, the Company recorded a $301 thousand increase in estimated customer refunds of revenue recognized prior to 2018 and a $252 thousand loss settlement to dismiss a lawsuit.  
             
  (2) Effective January 1, 2020, the Company adopted Accounting Standards Update (ASU) 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (“CECL”), resulting in a period opening adjustment to the allowance for credit losses for loans and held-to-maturity debt securities, other liabilities, deferred tax assets, and shareholders’ equity.  
             
  (3) The Company adopted ASU 2016-13, effective January 1, 2020. Debt Securities Held To Maturity of $577,795 thousand at September 30, 2020 and $638,281 thousand at June 30, 2020 are net of related reserve for expected credit losses of $16 thousand.  
             
  (4) The Company received $603 thousand in excess of amounts charged-off in prior periods on a purchased loan during the first quarter 2020, representing the recovery of a purchased loan credit-risk discount.  
             
  (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          
             
  Certain amounts in prior periods have been reclassified to conform to the current presentation.    
Westamerica Bancorporation (NASDAQ:WABC)
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