SAN RAFAEL, Calif., Jan. 21, 2016 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq:WABC), parent company of Westamerica Bank, generated net income for the fourth quarter 2015 of $14.6 million and diluted earnings per common share ("EPS") of $0.57, compared to net income of $14.9 million and EPS of $0.58 for the prior quarter, and net income of $15.0 million and EPS of $0.58 for the fourth quarter 2014.

"Westamerica's net interest margin stabilized at 3.32 percent for the fourth quarter 2015 compared to 3.31 percent in the prior quarter; yields on loans and investment securities were little changed while the margin was supported by a relatively low 0.05 percent cost of funding our interest generating assets. Lower-cost checking and savings deposits continued to grow in the fourth quarter 2015, and represented 94 percent of total deposits at December 31, 2015. Westamerica's credit quality remained stable at healthy levels throughout the fourth quarter 2015, requiring no provision for loan losses, and our operating expenses represented only 53 percent of our revenues during the quarter," said Chairman, President and CEO David Payne. "Our operating results generated an annualized return on shareholders' common equity of 11 percent for the fourth quarter 2015, and Westamerica increased its quarterly shareholder dividend to $0.39 per share," concluded Payne.

The annualized net interest margin on a fully taxable equivalent basis was 3.32 percent for the fourth quarter 2015, compared to 3.31 percent for the prior quarter and 3.53 percent for the fourth quarter 2014. Net interest income on a fully taxable equivalent basis was $36.7 million for the fourth quarter 2015, compared to $37.2 million for the prior quarter, and $37.3 million for the fourth quarter 2014. The yields on the Company's interest earning loans and investment securities were pressured by low market interest rates during 2015. During this period, the Company avoided long-dated, low-yielding loans given the expectation for rising interest rates; the Company also reduced its exposure to rising interest rates by purchasing shorter-duration investment securities. The funding cost of deposits and other interest-bearing borrowings, as a percentage of average loans and investment securities, was 0.05 percent for the fourth quarter 2015, unchanged from the prior quarter and down from 0.08 percent for the fourth quarter 2014.

The provision for loan losses was zero for the fourth quarter 2015, unchanged from the prior quarter, and down from $200 thousand for the fourth quarter 2014. Net loan losses charged against the allowance for loan losses totaled $265 thousand for the fourth quarter 2015, compared to $792 thousand for the prior quarter and $484 thousand for the fourth quarter 2014. At December 31, 2015, the allowance for loan losses totaled $30 million and nonperforming loans totaled $15.3 million.

Noninterest income for the fourth quarter 2015 totaled $11.3 million, compared to $12.0 million for the prior quarter, and $12.5 million for the fourth quarter 2014. The decline in noninterest income is due to declines in service charges on deposit accounts and merchant processing fees.

Noninterest expense for the fourth quarter 2015 totaled $25.5 million, compared to $26.2 million for the prior quarter and $26.4 million for the fourth quarter 2014. The decline in noninterest expense is due to declines in personnel costs and other operating expenses.

At December 31, 2015, Westamerica Bancorporation's tangible common equity-to-asset ratio was 7.9 percent, and assets totaled $5.2 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, 2014 filed on Form 10-K and quarterly report for the quarter ended September 30, 2015 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 21, 2016    
WESTAMERICA BANCORPORATION        
FINANCIAL HIGHLIGHTS          
December 31, 2015          
             
1. Net Income Summary.          
    (in thousands except per-share amounts)  
        %    
    Q4'15 Q4'14 Change Q3'15  
             
  Net Interest and Fee Income (FTE) $ 36,734   $ 37,305     -1.5 % $ 37,179    
  Provision for Loan Losses     -     200     n/m       -    
  Noninterest Income   11,305     12,545     -9.9 %   11,993    
  Noninterest Expense   25,504     26,353     -3.2 %   26,173    
  Income Before Taxes (FTE)   22,535     23,297     -3.3 %   22,999    
  Income Tax Provision (FTE)   7,957     8,269     -3.8 %   8,142    
  Net Income $ 14,578   $ 15,028     -3.0 % $ 14,857    
             
  Average Common Shares Outstanding   25,528     25,821     -1.1 %   25,530    
  Diluted Average Common Shares   25,555     25,858     -1.2 %   25,565    
             
  Operating Ratios:          
  Basic Earnings Per Common Share $ 0.57   $ 0.58     -1.7 % $ 0.58    
  Diluted Earnings Per Common Share   0.57     0.58     -1.7 %   0.58    
  Return On Assets (a)   1.12 %   1.18 %     1.16 %  
  Return On Common Equity (a)   11.0 %   11.5 %     11.3 %  
  Net Interest Margin (FTE) (a)   3.32 %   3.53 %     3.31 %  
  Efficiency Ratio (FTE)   53.1 %   52.9 %     53.2 %  
             
  Dividends Paid Per Common Share $ 0.39   $ 0.38     2.6 % $ 0.38    
  Common Dividend Payout Ratio       68 %   66 %     66 %  
             
        %    
    12/31'15YTD 12/31'14YTD Change    
             
  Net Interest and Fee Income (FTE) $ 148,258   $ 152,656     -2.9 %    
  Provision for Loan Losses     -     2,800     n/m      
  Noninterest Income   47,867     51,787     -7.6 %    
  Noninterest Expense   105,300     106,799     -1.4 %    
  Income Before Taxes (FTE)   90,825     94,844     -4.2 %    
  Income Tax Provision (FTE)   32,072     34,198     -6.2 %    
  Net Income $ 58,753   $ 60,646     -3.1 %    
             
  Average Common Shares Outstanding   25,555     26,099     -2.1 %    
  Diluted Average Common Shares   25,577     26,160     -2.2 %    
             
  Operating Ratios:          
  Basic Earnings Per Common Share $ 2.30   $ 2.32     -0.9 %    
  Diluted Earnings Per Common Share   2.30     2.32     -0.9 %    
  Return On Assets   1.16 %   1.22 %      
  Return On Common Equity   11.3 %   11.6 %      
  Net Interest Margin (FTE)   3.36 %   3.70 %      
  Efficiency Ratio (FTE)   53.7 %   52.2 %      
             
  Dividends Paid Per Common Share $ 1.53   $ 1.52     0.7 %    
  Common Dividend Payout Ratio       67 %   66 %      
             
2. Net Interest Income.          
    (dollars in thousands)  
        %    
    Q4'15 Q4'14 Change Q3'15  
             
  Interest and Fee Income (FTE) $ 37,297   $ 38,105     -2.1 % $ 37,764    
  Interest Expense   563     800     -29.7 %   585    
  Net Interest and Fee Income (FTE) $ 36,734   $ 37,305     -1.5 % $ 37,179    
             
  Average Earning Assets $ 4,411,599   $ 4,203,048     5.0 % $ 4,471,690    
  Average Interest-Bearing Liabilities   2,554,447     2,554,153     0.0 %   2,511,820    
             
  Yield on Earning Assets (FTE) (a)   3.37 %   3.61 %     3.36 %  
  Cost of Funds (a)   0.05 %   0.08 %     0.05 %  
  Net Interest Margin (FTE) (a)   3.32 %   3.53 %     3.31 %  
  Interest Expense/Interest-Bearing Liabilities (a)   0.09 %   0.12 %     0.09 %  
  Net Interest Spread (FTE) (a)   3.28 %   3.49 %     3.27 %  
             
        %    
    12/31'15YTD 12/31'14YTD Change    
             
  Interest and Fee Income (FTE) $ 150,682   $ 156,100     -3.5 %    
  Interest Expense   2,424     3,444     -29.6 %    
  Net Interest and Fee Income (FTE) $ 148,258   $ 152,656     -2.9 %    
             
  Average Earning Assets $ 4,415,724   $ 4,134,473     6.8 %    
  Average Interest-Bearing Liabilities   2,544,350     2,536,967     0.3 %    
             
  Yield on Earning Assets (FTE)   3.41 %   3.78 %      
  Cost of Funds   0.05 %   0.08 %      
  Net Interest Margin (FTE)   3.36 %   3.70 %      
  Interest Expense/Interest-Bearing Liabilities   0.10 %   0.14 %      
  Net Interest Spread (FTE)   3.31 %   3.64 %      
             
3. Loans & Other Earning Assets.          
    (average volume, dollars in thousands)  
        %    
    Q4'15 Q4'14 Change Q3'15  
             
  Total Assets $ 5,168,805   $ 5,050,417     2.3 % $ 5,062,334    
  Total Earning Assets   4,411,599     4,203,048     5.0 %   4,471,690    
  Total Loans   1,543,591     1,709,012     -9.7 %   1,591,798    
  Commercial Loans   371,902     395,933     -6.1 %   377,687    
  Commercial RE Loans     651,991     723,153     -9.8 %   675,597    
  Consumer Loans   519,698     589,926     -11.9 %   538,514    
  Total Investment Securities   2,868,008     2,494,036     15.0 %   2,879,892    
  Available For Sale (Market)   1,589,483     1,467,682     8.3 %   1,649,986    
  Held To Maturity   1,278,525     1,026,354     24.6 %   1,229,906    
  Unrealized Gain   9,624     9,904     n/m     15,144    
             
  Loans/Deposits   34.0 %   39.1 %     36.1 %  
             
        %    
    12/31'15YTD 12/31'14YTD Change    
             
  Total Assets $ 5,084,000   $ 4,955,643     2.6 %    
  Total Earning Assets   4,415,724     4,134,473     6.8 %    
  Total Loans   1,618,271     1,772,962     -8.7 %    
  Commercial Loans   389,050     396,928     -2.0 %    
  Commercial RE Loans     681,145     757,047     -10.0 %    
  Consumer Loans   548,076     618,987     -11.5 %    
  Total Investment Securities   2,797,453     2,361,511     18.5 %    
  Available For Sale (Market)   1,648,999     1,289,911     27.8 %    
  Held To Maturity   1,148,454     1,071,600     7.2 %    
  Unrealized Gain   9,624     9,904     n/m      
             
  Loans/Deposits   36.5 %   41.4 %      
             
4. Deposits, Other Interest-Bearing Liabilities & Equity.      
    (average volume, dollars in thousands)  
        %    
    Q4'15 Q4'14 Change Q3'15  
             
  Total Deposits $ 4,536,256   $ 4,373,472     3.7 % $ 4,414,711    
  Noninterest Demand     2,036,470     1,925,741     5.7 %   1,975,498    
  Interest Bearing Transaction   855,320     806,051     6.1 %   817,479    
  Savings   1,351,412     1,248,699     8.2 %   1,304,128    
  Time greater than $100K   128,703     205,894     -37.5 %   147,216    
  Time less than $100K   164,351     187,087     -12.2 %   170,390    
  Total Short-Term Borrowings   54,661     86,323     -36.7 %   72,607    
  Federal Home Loan Bank Advances     -     20,099     n/m       -    
  Shareholders' Equity   525,277     518,206     1.4 %   520,261    
             
  Demand Deposits/          
  Total Deposits   44.9 %   44.0 %     44.7 %  
  Transaction & Savings            
  Deposits / Total Deposits   93.5 %   91.0 %     92.8 %  
             
        %    
    12/31'15YTD 12/31'14YTD Change    
             
  Total Deposits $ 4,437,619   $ 4,281,847     3.6 %    
  Noninterest Demand     1,968,817     1,841,522     6.9 %    
  Interest Bearing Transaction   822,156     790,467     4.0 %    
  Savings   1,312,100     1,215,035     8.0 %    
  Time greater than $100K   161,710     237,002     -31.8 %    
  Time less than $100K   172,836     197,821     -12.6 %    
  Total Short-Term Borrowings   75,054     70,252     6.8 %    
  Federal Home Loan Bank Advances   494     20,308     -97.6 %    
  Term Repurchase Agreement     -       6,082     n/m      
  Shareholders' Equity   519,126     524,288     -1.0 %    
             
  Demand Deposits/          
  Total Deposits   44.4 %   43.0 %      
  Transaction & Savings            
  Deposits / Total Deposits   92.5 %   89.8 %      
             
5. Interest Yields Earned & Rates Paid.        
    (dollars in thousands)    
    Q4'15    
    Average Income/ Yield (a) /    
    Volume Expense Rate    
             
  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 %    
             
    Q4'14    
    Average Income/ Yield (a) /    
    Volume Expense Rate    
             
  Interest & Fee Income Earned          
  Total Earning Assets (FTE) $ 4,203,048   $ 38,105     3.61 %    
  Total Loans (FTE)   1,709,012     21,657     5.03 %    
  Commercial Loans (FTE)   395,933     5,022     5.03 %    
  Commercial RE Loans     723,153     11,151     6.12 %    
  Consumer Loans   589,926     5,484     3.70 %    
  Total Investments (FTE)   2,494,036     16,448     2.64 %    
             
  Interest Expense Paid          
  Total Earning Assets     4,203,048     800     0.08 %    
  Total Interest-Bearing Liabilities   2,554,153     800     0.12 %    
  Total Interest-Bearing Deposits   2,447,731     672     0.11 %    
  Interest-Bearing Transaction   806,051     65     0.03 %    
  Savings   1,248,699     214     0.07 %    
  Time less than $100K   187,087     184     0.39 %    
  Time greater than $100K   205,894     209     0.40 %    
  Total Short-Term Borrowings     86,323     25     0.12 %    
  Federal Home Loan Bank Advances   20,099     103     2.03 %    
             
  Net Interest Income and Margin (FTE)   $ 37,305     3.53 %    
             
6. Noninterest Income.          
    (dollars in thousands except per-share amounts)  
        %    
    Q4'15 Q4'14 Change Q3'15  
             
  Service Charges on Deposits $ 5,259   $ 5,870     -10.4 % $ 5,581    
  Merchant Processing Services   1,368     1,734     -21.1 %   1,485    
  Debit Card Fees   1,557     1,478     5.3 %   1,538    
  Other Service Fees   648     673     -3.7 %   693    
  ATM Processing Fees   569     581     -2.1 %   616    
  Trust Fees   671     684     -1.9 %   682    
  Financial Services Commissions   168     171     -2.3 %   177    
  Other Income   1,065     1,354     -21.3 %   1,221    
  Total Noninterest Income $ 11,305   $ 12,545     -9.9 % $ 11,993    
             
  Total Revenue (FTE) $ 48,039   $ 49,850     -3.6 % $ 49,172    
  Noninterest Income/Revenue (FTE)   23.5 %   25.2 %     24.4 %  
  Service Charges/Avg. Deposits (a)   0.46 %   0.53 %     0.50 %  
  Total Revenues (FTE) Per Avg. Common Share (a) $ 7.47   $ 7.66     -2.5 % $ 7.64    
             
        %    
    12/31'15YTD 12/31'14YTD Change    
             
  Service Charges on Deposits $ 22,241   $ 24,191     -8.1 %    
  Merchant Processing Services   6,339     7,219     -12.2 %    
  Debit Card Fees   6,084     5,960     2.1 %    
  Other Service Fees   2,689     2,717     -1.0 %    
  ATM Processing Fees   2,397     2,473     -3.1 %    
  Trust Fees   2,732     2,582     5.8 %    
  Financial Services Commissions   695     757     -8.2 %    
  Other Income   4,690     5,888     -20.3 %    
  Total Noninterest Income $ 47,867   $ 51,787     -7.6 %    
             
  Total Revenue (FTE) $ 196,125   $ 204,443     -4.1 %    
  Noninterest Income/Revenue (FTE)   24.4 %   25.3 %      
  Service Charges/Avg. Deposits   0.50 %   0.56 %      
  Total Revenues (FTE) Per Avg.Common Share $ 7.67   $ 7.83     -2.0 %    
             
7. Noninterest Expense.          
    (dollars in thousands)  
        %    
    Q4'15 Q4'14 Change Q3'15  
             
  Salaries & Benefits $ 12,398   $ 13,086     -5.3 % $ 12,761    
  Occupancy   3,761     3,708     1.4 %   3,746    
  Outsourced Data Processing   2,107     2,097     0.5 %   2,115    
  Amortization of Identifiable Intangibles   948     1,051     -9.8 %   952    
  Professional Fees   614     640     -4.0 %   746    
  Furniture & Equipment   1,081     1,104     -2.0 %   1,075    
  Other Real Estate Owned   53     265     n/m     83    
  Courier Service   585     686     -14.8 %   604    
  Other Operating   3,957     3,716     6.5 %   4,091    
  Total Noninterest Expense $ 25,504   $ 26,353     -3.2 % $ 26,173    
             
  Noninterest Expense/Avg. Earning Assets (a)   2.29 %   2.49 %     2.32 %  
  Noninterest Expense/Revenues (FTE)   53.1 %   52.9 %     53.2 %  
             
        %    
    12/31'15YTD 12/31'14YTD Change    
             
  Salaries & Benefits $ 52,192   $ 54,777     -4.7 %    
  Occupancy   14,960     14,992     -0.2 %    
  Outsourced Data Processing   8,441     8,411     0.4 %    
  Amortization of  Identifiable Intangibles   3,856     4,270     -9.7 %    
  Professional Fees   2,490     2,346     6.1 %    
  Furniture & Equipment   4,434     4,174     6.3 %    
  Other Real Estate Owned   504     (642 )   n/m      
  Courier Service   2,329     2,624     -11.2 %    
  Other Operating   16,094     15,847     1.6 %    
  Total Noninterest Expense $ 105,300   $ 106,799     -1.4 %    
             
  Noninterest Expense/ Avg. Earning Assets   2.38 %   2.58 %      
  Noninterest Expense/Revenues (FTE)   53.7 %   52.2 %      
             
8. Provision for Loan Losses.          
    (dollars in thousands)  
        %    
    Q4'15 Q4'14 Change Q3'15  
             
  Average Total Loans $ 1,543,591   $ 1,709,012     -9.7 % $ 1,591,798    
             
  Allowance for Loan Loss (ALL)          
  Beginning of Period   $ 30,036   $ 31,769     -5.5 % $ 30,828    
  Provision for Loan Losses         -     200     n/m       -    
  Net ALL Losses   (265 )   (484 )   -45.2 %   (792 )  
  ALL End of Period $ 29,771   $ 31,485     -5.4 % $ 30,036    
  ALL Recoveries/Gross ALL Losses       78 %   83 %     46 %  
             
  Net ALL Losses/Avg. Total Loans (a)   0.07 %   0.11 %     0.20 %  
             
        %    
    12/31'15YTD 12/31'14YTD Change    
             
  Average Total Loans $ 1,618,271   $ 1,772,962     -8.7 %    
             
  Allowance for Loan Loss (ALL)          
  Beginning of Period   $ 31,485   $ 31,693     -0.7 %    
  Provision for Loan Losses         -     2,800     n/m      
  Net ALL Losses   (1,714 )   (3,008 )   -43.0 %    
  ALL End of Period $ 29,771   $ 31,485     -5.4 %    
  ALL Recoveries/Gross ALL Losses       67 %   59 %      
             
  Net ALL Losses/Avg. Total Loans   0.11 %   0.17 %      
             
9. Credit Quality.          
    (dollars in thousands)  
        %    
    12/31/15 12/31/14 Change 9/30/15  
             
  Nonperforming Originated Loans:          
  Nonperforming Nonaccrual $ 6,302   $ 5,296     19.0 % $ 7,578    
  Performing Nonaccrual     350     13     n/m       -    
  Total Nonaccrual Loans   6,652     5,309     25.3 %   7,578    
  90+ Days Past Due Accruing Loans   295     502     -41.2 %   481    
  Total   6,947     5,811     19.6 %   8,059    
  Repossessed Originated Loan Collateral   5,829     4,809     21.2 %   5,834    
  Total Nonperforming Originated Assets   12,776     10,620     20.3 %   13,893    
             
  Nonperforming Purchased Covered Loans (1):        
  Nonperforming Nonaccrual     -       297     n/m       -    
  Performing Nonaccrual     -       -     n/m       -    
  Total Nonaccrual Loans     -       297     n/m       -    
  90+ Days Past Due Accruing Loans     -       -     n/m       -    
  Total     -       297     n/m       -    
  Repossessed Purchased Covered Loan Collateral (1)     -       -     n/m       -    
  Total Nonperforming Purchased Covered Assets (1)     -     297     n/m       -    
             
  Nonperforming Purchased Non-Covered Loans (2):        
  Nonperforming Nonaccrual   8,346       11,901     -29.9 %   8,784    
  Performing Nonaccrual     -       97     n/m     84    
  Total Nonaccrual Loans   8,346       11,998     -30.4 %   8,868    
  90+ Days Past Due Accruing Loans     -       -     n/m       -    
  Total   8,346       11,998     -30.4 %   8,868    
  Repossessed Purchased Non-Covered Loan Collateral (2)     3,435       1,565     119.5 %     3,435    
  Total Nonperforming Purchased Non-Covered Assets (2)   11,781       13,563     -13.1 %   12,303    
             
  Total Nonperforming Assets $ 24,557   $ 24,480     0.3 % $ 26,196    
             
  Total Originated Loans Outstanding $ 1,351,839   $ 1,470,369     -8.1 % $ 1,376,905    
  Total Purchased Covered Loans Outstanding (1)   14,061     17,078     -17.7 %   14,640    
  Total Purchased Non-Covered Loans Outstanding (2)   167,496       212,843     -21.3 %   180,298    
  Total Loans Outstanding   $ 1,533,396   $ 1,700,290     -9.8 % $ 1,571,843    
             
  Total Assets   $ 5,168,875   $ 5,035,724     2.6 % $ 5,001,395    
             
  Loans:          
  Allowance for Loan Losses $ 29,771   $ 31,485     -5.4 % $ 30,036    
  Allowance/Loans   1.94 %   1.85 %     1.91 %  
  Nonperforming Loans/Total Loans   1.00 %   1.06 %     1.08 %  
             
  Purchased Covered Loans (1):          
  Fair Value Discount on Purchased Covered Loans $ 152   $ 468     $ 155    
  Discount/Purchased Covered Loans, gross   1.07 %   2.67 %     1.05 %  
  Nonperforming Purchased Covered Loans/Total Purchased Covered Loans   0.00 %   1.74 %     0.00 %  
             
  Purchased Non-Covered Loans (2):          
  Fair Value Discount on Purchased Non-Covered Loans $ 6,432   $ 9,372     $ 7,082    
  Discount/Purchased Non-Covered Loans, gross   3.70 %   4.22 %     3.78 %  
  Nonperforming Purchased Non-Covered Loans/ Total Purchased Non-Covered Loans   4.98 %   5.64 %     4.92 %  
             
10. Capital.          
    (in thousands, except per-share amounts)  
        %    
    12/31/15 12/31/14 Change 9/30/15  
             
  Shareholders' Equity $ 532,205   $ 526,603     1.1 % $ 533,938    
  Total Assets   5,168,875     5,035,724     2.6 %   5,001,395    
             
  Shareholders' Equity/Total Assets   10.30 %   10.46 %     10.68 %  
  Shareholders' Equity/Total Loans   34.71 %   30.97 %     33.97 %  
  Tangible Common Equity Ratio   7.94 %   7.97 %     8.23 %  
  Common Shares Outstanding   25,528     25,745     -0.8 %   25,530    
  Common Equity Per Share $ 20.85   $ 20.45     1.9 % $ 20.91    
  Market Value Per Common Share $ 46.75   $ 48.96     -4.5 % $ 44.44    
             
  Share Repurchase Programs          
    (shares in thousands)  
        %    
    Q4'15 Q4'14 Change Q3'15  
             
  Total Shares Repurchased   2     161     -99.1 %   26    
  Average Repurchase Price $ 43.01   $ 48.73     -11.7 % $ 50.30    
  Net Shares Repurchased (Issued)   2     161     -98.8 %   (1 )  
             
        %    
    12/31'15YTD 12/31'14YTD Change    
             
  Total Shares Repurchased   344     1,044     -67.1 %    
  Average Repurchase Price $ 43.90   $ 50.47     -13.0 %    
  Net Shares Repurchased   217     765     -71.6 %    
             
11. Period-End Balance Sheets.          
    (unaudited, dollars in thousands)  
        %    
    12/31/15 12/31/14 Change 9/30/15  
  Assets:          
  Cash and Due from Banks $ 433,044   $ 380,836     13.7 % $ 268,587    
             
  Investment Securities:          
  Available For Sale   1,570,216     1,600,781     -1.9 %   1,571,710    
  Held to Maturity   1,316,075     1,038,658     26.7 %   1,278,814    
             
  Loans   1,533,396     1,700,290     -9.8 %   1,571,843    
  Allowance For Loan Losses   (29,771 )   (31,485 )   -5.4 %   (30,036 )  
  Total Loans, net   1,503,625     1,668,805     -9.9 %   1,541,807    
             
  Other Real Estate Owned   9,264     6,374     45.4 %   9,269    
  Premises and Equipment, net   38,693     37,852     2.2 %   39,244    
  Identifiable Intangibles, net   10,431     14,287     -27.0 %   11,379    
  Goodwill     121,673     121,673     0.0 %   121,673    
  Other Assets   165,854     166,458     -0.4 %   158,912    
             
  Total Assets $ 5,168,875   $ 5,035,724     2.6 % $ 5,001,395    
             
  Liabilities and Shareholders' Equity:          
  Deposits:          
  Noninterest Bearing $ 2,026,049   $ 1,910,781     6.0 % $ 1,942,450    
  Interest-Bearing Transaction   860,706     792,448     8.6 %   812,940    
  Savings   1,366,936     1,260,819     8.4 %   1,310,985    
  Time   286,968     385,143     -25.5 %   300,545    
  Total Deposits   4,540,659     4,349,191     4.4 %   4,366,920    
             
  Short-Term Borrowed Funds   53,028     89,784     -40.9 %   57,063    
  Federal Home Loan Bank Advances     -     20,015     n/m       -    
  Other Liabilities   42,983     50,131     -14.3 %   43,474    
  Total Liabilities   4,636,670     4,509,121     2.8 %   4,467,457    
             
  Shareholders' Equity:          
  Common Equity:          
  Paid-In Capital   381,436     380,843     0.2 %   381,227    
  Accumulated Other Comprehensive Income   675     5,292     -87.2 %   7,198    
  Retained Earnings   150,094     140,468     6.9 %   145,513    
  Total Shareholders' Equity   532,205     526,603     1.1 %   533,938    
             
  Total Liabilities and Shareholders' Equity $ 5,168,875   $ 5,035,724     2.6 % $ 5,001,395    
             
12. Income Statements.          
    (unaudited, in thousands except per-share amounts)  
        %    
    Q4'15 Q4'14 Change Q3'15  
  Interest & Fee Income:          
  Loans $ 18,798   $ 21,240     -11.5 % $ 19,378    
  Investment Securities:          
  Available for Sale   7,916     6,884     15.0 %   7,880    
  Held to Maturity   7,174     6,218     15.4 %   7,041    
  Total Interest & Fee Income   33,888     34,342     -1.3 %   34,299    
             
  Interest Expense:          
  Transaction Deposits   70     65     7.3 %   65    
  Savings Deposits   218     214     2.0 %   211    
  Time Deposits   266     393     -32.4 %   297    
  Short-Term Borrowed Funds   9     25     -65.9 %   12    
  Federal Home Loan Bank Advances     -     103     n/m       -    
  Total Interest Expense   563     800     -29.7 %   585    
             
  Net Interest Income   33,325     33,542     -0.6 %   33,714    
             
  Provision for Loan Losses     -     200     n/m       -    
             
  Noninterest Income:          
  Service Charges     5,259     5,870     -10.4 %   5,581    
  Merchant Processing Services   1,368     1,734     -21.1 %   1,485    
  Debit Card Fees   1,557     1,478     5.3 %   1,538    
  Other Service Fees   648     673     -3.7 %   693    
  ATM Processing Fees   569     581     -2.1 %   616    
  Trust Fees   671     684     -1.9 %   682    
  Financial Services Commissions   168     171     -2.3 %   177    
  Other   1,065     1,354     -21.3 %   1,221    
  Total Noninterest Income   11,305     12,545     -9.9 %   11,993    
             
  Noninterest Expense:          
  Salaries and   Benefits   12,398     13,086     -5.3 %   12,761    
  Occupancy     3,761     3,708     1.4 %   3,746    
  Outsourced Data Processing   2,107     2,097     0.5 %   2,115    
  Amortization of Identifiable Intangibles   948     1,051     -9.8 %   952    
  Professional Fees   614     640     -4.0 %   746    
  Furniture & Equipment   1,081     1,104     -2.0 %   1,075    
  Other Real Estate Owned   53     265     n/m     83    
  Courier Service   585     686     -14.8 %   604    
  Other   3,957     3,716     6.5 %   4,091    
  Total Noninterest Expense   25,504     26,353     -3.2 %   26,173    
             
  Income Before Income Taxes   19,126     19,534     -2.1 %   19,534    
  Income Tax Provision   4,548     4,506     0.9 %   4,677    
  Net Income $ 14,578   $ 15,028     -3.0 % $ 14,857    
             
  Average Common Shares Outstanding   25,528     25,821     -1.1 %   25,530    
  Diluted Common Shares Outstanding   25,555     25,858     -1.2 %   25,565    
             
  Per Common Share Data:          
  Basic Earnings $ 0.57   $ 0.58     -1.7 % $ 0.58    
  Diluted Earnings   0.57     0.58     -1.7 %   0.58    
  Dividends Paid   0.39     0.38     2.6 %   0.38    
        %    
    12/31'15YTD 12/31'14YTD Change    
  Interest & Fee Income:          
  Loans $ 78,441   $ 89,056     -11.9 %    
  Investment Securities:          
  Available for Sale   31,263     24,740     26.4 %    
  Held to Maturity   26,825     26,413     1.6 %    
  Total Interest & Fee Income   136,529     140,209     -2.6 %    
             
  Interest Expense:          
  Transaction Deposits   260     268     -3.1 %    
  Savings Deposits   852     906     -6.0 %    
  Time Deposits   1,258     1,713     -26.6 %    
  Short-Term Borrowed Funds   53     90     -41.6 %    
  Federal Home Loan Bank Advances     1     407     n/m      
  Term Repurchase Agreement     -       60     n/m      
  Total Interest Expense   2,424     3,444     -29.6 %    
             
  Net Interest Income   134,105     136,765     -1.9 %    
             
  Provision for Loan Losses     -     2,800     n/m      
             
  Noninterest Income:          
  Service Charges     22,241     24,191     -8.1 %    
  Merchant Processing Services   6,339     7,219     -12.2 %    
  Debit Card Fees   6,084     5,960     2.1 %    
  Other Service Fees   2,689     2,717     -1.0 %    
  ATM Processing Fees   2,397     2,473     -3.1 %    
  Trust Fees   2,732     2,582     5.8 %    
  Financial Services Commissions   695     757     -8.2 %    
  Other   4,690     5,888     -20.3 %    
  Total Noninterest Income   47,867     51,787     -7.6 %    
             
  Noninterest Expense:          
  Salaries and   Benefits   52,192     54,777     -4.7 %    
  Occupancy     14,960     14,992     -0.2 %    
  Outsourced Data Processing   8,441     8,411     0.4 %    
  Amortization of Identifiable Intangibles   3,856     4,270     -9.7 %    
  Professional Fees   2,490     2,346     6.1 %    
  Furniture & Equipment   4,434     4,174     6.3 %    
  Other Real Estate Owned   504     (642 )   n/m      
  Courier Service   2,329     2,624     -11.2 %    
  Other   16,094     15,847     1.6 %    
  Total Noninterest Expense   105,300     106,799     -1.4 %    
             
  Income Before Income Taxes   76,672     78,953     -2.9 %    
  Income Tax Provision   17,919     18,307     -2.1 %    
  Net Income $ 58,753   $ 60,646     -3.1 %    
             
  Average Common Shares Outstanding   25,555     26,099     -2.1 %    
  Diluted Common Shares Outstanding   25,577     26,160     -2.2 %    
             
  Per Common Share Data:          
  Basic Earnings $ 2.30   $ 2.32     -0.9 %    
  Diluted Earnings   2.30     2.32     -0.9 %    
  Dividends Paid   1.53     1.52     0.7 %    
             
  Footnotes and Abbreviations:     
  (FTE) Fully Taxable Equivalent   
  (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 Bancorporation1108 Fifth Avenue, San Rafael, CA 94901Robert A. Thorson - SVP & Chief Financial Officer707-863-6840investments@westamerica.com

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