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

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

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

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

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

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

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

Westamerica Bancorporation Web Address: www.westamerica.com

FORWARD-LOOKING INFORMATION:

The following appears in accordance with the Private Securities Litigation Reform Act of 1995:

This press release may contain forward-looking statements about the Company, including descriptions of plans or objectives of its management for future operations, products or services, and forecasts of its revenues, earnings or other measures of economic performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may."

Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors — many of which are beyond the Company's control — could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. The Company's most recent reports filed with the Securities and Exchange Commission, including the annual report for the year ended December 31, 2015 filed on Form 10-K and quarterly report for the quarter ended September 30, 2016 filed on Form 10-Q, describe some of these factors, including certain credit, interest rate, operational, liquidity and market risks associated with the Company's business and operations. Other factors described in these reports include changes in business and economic conditions, competition, fiscal and monetary policies, disintermediation, legislation including the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2011, the Sarbanes-Oxley Act of 2002 and the Gramm-Leach-Bliley Act of 1999, and mergers and acquisitions.

Forward-looking statements speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date forward looking statements are made.
      Public Information January 19, 2017    
WESTAMERICA BANCORPORATION        
FINANCIAL HIGHLIGHTS          
December 31, 2016          
             
1. Net Income Summary.          
    (in thousands except per-share amounts)  
        %    
    Q4'16 Q4'15 Change Q3'16  
             
  Net Interest and Fee Income (FTE) $ 35,959   $ 36,734   -2.1 % $ 36,176    
  (Reversal of) Provision for Loan Losses     -       -   n/m       (3,200 )  
  Noninterest Income   11,545     11,305   2.1 %   11,598    
  Noninterest Expense   24,577     25,504   -3.6 %   26,088    
  Income Before Taxes (FTE)   22,927     22,535   1.7 %   24,886    
  Income Tax Provision (FTE)   8,474     7,957   6.5 %   9,258    
  Net Income $ 14,453   $ 14,578   -0.9 % $ 15,628    
             
  Average Common Shares Outstanding   25,773     25,528   1.0 %   25,641    
  Diluted Average Common Shares   25,925     25,555   1.4 %   25,687    
             
  Operating Ratios:          
  Basic Earnings Per Common Share $ 0.56   $ 0.57   -1.8 % $ 0.61    
  Diluted Earnings Per Common Share   0.56     0.57   -1.8 %   0.61    
  Return On Assets (a)   1.07 %   1.12 %     1.18 %  
  Return On Common Equity (a)   10.3 %   11.0 %     11.4 %  
  Net Interest Margin (FTE) (a)   3.15 %   3.32 %     3.21 %  
  Efficiency Ratio (FTE)   51.7 %   53.1 %     54.6 %  
             
  Dividends Paid Per Common Share $ 0.39   $ 0.39   0.0 % $ 0.39    
  Common Dividend Payout Ratio       70 %   68 %     64 %  
             
        %    
    12/31'16YTD 12/31'15YTD Change    
             
  Net Interest and Fee Income (FTE) $ 145,077   $ 148,258   -2.1 %    
  (Reversal of) Provision for Loan Losses     (3,200 )     -   n/m      
  Noninterest Income   46,574     47,867   -2.7 %    
  Noninterest Expense   101,752     105,300   -3.4 %    
  Income Before Taxes (FTE)   93,099     90,825   2.5 %    
  Income Tax Provision (FTE)   34,246     32,072   6.8 %    
  Net Income $ 58,853   $ 58,753   0.2 %    
             
  Average Common Shares Outstanding   25,612     25,555   0.2 %    
  Diluted Average Common Shares   25,678     25,577   0.4 %    
             
  Operating Ratios:          
  Basic Earnings Per Common Share $ 2.30   $ 2.30   0.0 %    
  Diluted Earnings Per Common Share   2.29     2.30   -0.4 %    
  Return On Assets   1.12 %   1.16 %      
  Return On Common Equity   10.9 %   11.3 %      
  Net Interest Margin (FTE)   3.24 %   3.36 %      
  Efficiency Ratio (FTE)   53.1 %   53.7 %      
             
  Dividends Paid Per Common Share $ 1.56   $ 1.53   2.0 %    
  Common Dividend Payout Ratio       68 %   67 %      
             
2. Net Interest Income.          
    (dollars in thousands)  
        %    
    Q4'16 Q4'15 Change Q3'16  
             
  Interest and Fee Income (FTE) $ 36,459   $ 37,297   -2.2 % $ 36,699    
  Interest Expense   500     563   -11.2 %   523    
  Net Interest and Fee Income (FTE) $ 35,959   $ 36,734   -2.1 % $ 36,176    
             
  Average Earning Assets $ 4,561,619   $ 4,411,599   3.4 % $ 4,489,317    
  Average Interest-          
    Bearing Liabilities   2,681,585     2,554,447   5.0 %   2,616,357    
             
  Yield on Earning Assets (FTE) (a)   3.19 %   3.37 %     3.26 %  
  Cost of Funds (a)   0.04 %   0.05 %     0.05 %  
  Net Interest Margin (FTE) (a)   3.15 %   3.32 %     3.21 %  
  Interest Expense/          
    Interest-Bearing Liabilities (a)   0.07 %   0.09 %     0.08 %  
  Net Interest Spread (FTE) (a)   3.12 %   3.28 %     3.18 %  
             
        %    
    12/31'16YTD 12/31'15YTD Change    
             
  Interest and Fee Income (FTE) $ 147,193   $ 150,682   -2.3 %    
  Interest Expense   2,116     2,424   -12.7 %    
  Net Interest and Fee Income (FTE) $ 145,077   $ 148,258   -2.1 %    
             
  Average Earning Assets $ 4,476,755   $ 4,415,724   1.4 %    
  Average Interest-          
    Bearing Liabilities   2,624,688     2,544,350   3.2 %    
             
  Yield on Earning Assets (FTE)   3.29 %   3.41 %      
  Cost of Funds   0.05 %   0.05 %      
  Net Interest Margin (FTE)   3.24 %   3.36 %      
  Interest Expense/          
    Interest-Bearing Liabilities   0.08 %   0.10 %      
  Net Interest Spread (FTE)   3.21 %   3.31 %      
             
3. Loans & Other Earning Assets.          
    (average volume, dollars in thousands)  
        %    
    Q4'16 Q4'15 Change Q3'16  
             
  Total Assets $ 5,370,412   $ 5,168,805   3.9 % $ 5,253,502    
  Total Earning Assets   4,561,619     4,411,599   3.4 %   4,489,317    
  Total Loans   1,356,350     1,543,591   -12.1 %   1,386,186    
    Commercial Loans   349,022     371,902   -6.2 %   343,727    
    Commercial RE Loans     546,145     651,991   -16.2 %   572,044    
    Consumer Loans   461,183     519,698   -11.3 %   470,415    
  Total Investment Securities   3,205,269     2,868,008   11.8 %   3,103,131    
    Available For Sale (Market)   1,821,998     1,589,483   14.6 %   1,660,680    
    Held To Maturity   1,383,271     1,278,525   8.2 %   1,442,451    
    Unrealized Gain   (5,571 )   9,624   n/m     29,100    
             
  Loans/Deposits   28.8 %   34.0 %     30.2 %  
             
        %    
    12/31'16YTD 12/31'15YTD Change    
             
  Total Assets $ 5,246,144   $ 5,084,000   3.2 %    
  Total Earning Assets   4,476,755     4,415,724   1.4 %    
  Total Loans   1,424,259     1,618,271   -12.0 %    
    Commercial Loans   354,831     389,050   -8.8 %    
    Commercial RE Loans     590,012     681,145   -13.4 %    
    Consumer Loans   479,416     548,076   -12.5 %    
  Total Investment Securities   3,052,496     2,797,453   9.1 %    
    Available For Sale (Market)   1,651,500     1,648,999   0.2 %    
    Held To Maturity   1,400,996     1,148,454   22.0 %    
    Unrealized Gain   (5,571 )   9,624   n/m      
             
  Loans/Deposits   31.0 %   36.5 %      
             
4. Deposits, Other Interest-Bearing Liabilities & Equity.      
    (average volume, dollars in thousands)  
        %    
    Q4'16 Q4'15 Change Q3'16  
             
  Total Deposits $ 4,702,129   $ 4,536,256   3.7 % $ 4,588,762    
    Noninterest Demand     2,077,213     2,036,470   2.0 %   2,041,045    
    Interest Bearing Transaction   871,947     855,320   1.9 %   850,215    
    Savings   1,492,748     1,351,412   10.5 %   1,427,247    
    Time greater than $100K   113,781     128,703   -11.6 %   118,113    
    Time less than $100K   146,440     164,351   -10.9 %   152,142    
  Total Short-Term Borrowings   56,669     54,661   3.7 %   68,640    
  Shareholders' Equity   558,057     525,277   6.2 %   545,771    
             
  Demand Deposits/          
    Total Deposits   44.2 %   44.9 %     44.5 %  
  Transaction & Savings            
    Deposits / Total Deposits   94.5 %   93.5 %     94.1 %  
             
        %    
    12/31'16YTD 12/31'15YTD Change    
             
  Total Deposits $ 4,590,351   $ 4,437,619   3.4 %    
    Noninterest Demand     2,026,939     1,968,817   3.0 %    
    Interest Bearing Transaction   862,581     822,156   4.9 %    
    Savings   1,428,059     1,312,100   8.8 %    
    Time greater than $100K   118,750     161,710   -26.6 %    
    Time less than $100K   154,022     172,836   -10.9 %    
  Total Short-Term Borrowings   61,276     75,054   -18.4 %    
  Federal Home Loan Bank Advances     -     494   n/m      
  Shareholders' Equity   542,301     519,126   4.5 %    
             
  Demand Deposits/          
    Total Deposits   44.2 %   44.4 %      
  Transaction & Savings            
    Deposits / Total Deposits   94.1 %   92.5 %      
             
5. Interest Yields Earned & Rates Paid.        
    (dollars in thousands)    
    Q4'16    
    Average Income/ Yield (a) /    
    Volume Expense Rate    
             
  Interest & Fee Income Earned          
    Total Earning Assets (FTE) $ 4,561,619   $ 36,459   3.19 %    
    Total Loans (FTE)     1,356,350     16,526   4.85 %    
    Commercial Loans (FTE)   349,022     4,084   4.66 %    
    Commercial RE Loans     546,145     8,386   6.11 %    
    Consumer Loans   461,183     4,056   3.50 %    
    Total Investments (FTE)   3,205,269     19,933   2.49 %    
             
  Interest Expense Paid          
    Total Earning Assets     4,561,619     500   0.04 %    
    Total Interest-Bearing Liabilities   2,681,585     500   0.07 %    
    Total Interest-Bearing Deposits   2,624,916     491   0.07 %    
    Interest-Bearing Transaction   871,947     58   0.03 %    
    Savings   1,492,748     230   0.06 %    
    Time less than $100K   146,440     90   0.24 %    
    Time greater than $100K   113,781     113   0.40 %    
    Total Short-Term Borrowings     56,669     9   0.06 %    
             
  Net Interest Income and            
  Margin (FTE)   $ 35,959   3.15 %    
             
    Q4'15    
    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 %    
             
6. Noninterest Income.          
    (dollars in thousands except per-share amounts)  
        %    
    Q4'16 Q4'15 Change Q3'16  
             
  Service Charges on Deposits $ 5,064   $ 5,259   -3.7 % $ 5,303    
  Merchant Processing Services   1,678     1,368   22.7 %   1,532    
  Debit Card Fees   1,566     1,557   0.6 %   1,587    
  Other Service Fees   620     648   -4.3 %   671    
  ATM Processing Fees   551     569   -3.2 %   600    
  Trust Fees   682     671   1.7 %   686    
  Financial Services Commissions   157     168   -6.3 %   118    
  Other Income   1,227     1,065   15.2 %   1,101    
  Total Noninterest Income $ 11,545   $ 11,305   2.1 % $ 11,598    
             
    Total Revenue (FTE) $ 47,504   $ 48,039   -1.1 % $ 47,774    
    Noninterest Income/Revenue (FTE)   24.3 %   23.5 %     24.3 %  
    Service Charges/Avg. Deposits (a)   0.43 %   0.46 %     0.46 %  
    Total Revenues (FTE) Per Avg.            
  Common Share (a) $ 7.33   $ 7.47   -1.8 % $ 7.41    
             
        %    
    12/31'16YTD 12/31'15YTD Change    
             
  Service Charges on Deposits $ 20,854   $ 22,241   -6.2 %    
  Merchant Processing Services   6,377     6,339   0.6 %    
  Debit Card Fees   6,290     6,084   3.4 %    
  Other Service Fees   2,571     2,689   -4.4 %    
  ATM Processing Fees   2,411     2,397   0.6 %    
  Trust Fees   2,686     2,732   -1.7 %    
  Financial Services Commissions   568     695   -18.3 %    
  Other Income   4,817     4,690   2.7 %    
  Total Noninterest Income $ 46,574   $ 47,867   -2.7 %    
             
    Total Revenue (FTE) $ 191,651   $ 196,125   -2.3 %    
    Noninterest Income/Revenue (FTE)   24.3 %   24.4 %      
    Service Charges/Avg. Deposits   0.45 %   0.50 %      
    Total Revenues (FTE) Per Avg.            
  Common Share $ 7.48   $ 7.67   -2.5 %    
             
7. Noninterest Expense.          
    (dollars in thousands)  
        %    
    Q4'16 Q4'15 Change Q3'16  
             
  Salaries & Benefits $ 12,439   $ 12,398   0.3 % $ 13,063    
  Occupancy   3,570     3,761   -5.1 %   3,749    
  Outsourced Data Processing   2,131     2,107   1.1 %   2,114    
  Amortization of            
    Identifiable Intangibles   863     948   -9.0 %   867    
  Professional Fees   797     614   29.8 %   1,693    
  Furniture & Equipment   1,290     1,081   19.3 %   1,211    
  Other Real Estate Owned   7     53   n/m     (206 )  
  Courier Service   494     585   -15.6 %   451    
  Other Operating   2,986     3,957   -24.5 %   3,146    
  Total Noninterest Expense $ 24,577   $ 25,504   -3.6 % $ 26,088    
             
  Noninterest Expense/          
    Avg. Earning Assets (a)   2.14 %   2.29 %     2.31 %  
  Noninterest Expense/Revenues (FTE)   51.7 %   53.1 %     54.6 %  
             
        %    
    12/31'16YTD 12/31'15YTD Change    
             
  Salaries & Benefits $ 51,507   $ 52,192   -1.3 %    
  Occupancy   14,116     14,960   -5.6 %    
  Outsourced Data Processing   8,505     8,441   0.8 %    
  Amortization of            
    Identifiable Intangibles   3,504     3,856   -9.1 %    
  Professional Fees   3,980     2,490   59.8 %    
  Furniture & Equipment   4,901     4,434   10.5 %    
  Other Real Estate Owned   (479 )   504   n/m      
  Courier Service   1,952     2,329   -16.2 %    
  Other Operating   13,766     16,094   -14.5 %    
  Total Noninterest Expense $ 101,752   $ 105,300   -3.4 %    
             
  Noninterest Expense/          
    Avg. Earning Assets   2.27 %   2.38 %      
  Noninterest Expense/Revenues (FTE)   53.1 %   53.7 %      
             
8. Allowance for Loan Losses.          
    (dollars in thousands)  
        %    
    Q4'16 Q4'15 Change Q3'16  
             
  Average Total Loans $ 1,356,350   $ 1,543,591   -12.1 % $ 1,386,186    
             
  Allowance for Loan Loss (ALL)          
  Beginning of Period   $ 26,359   $ 30,036   -12.2 % $ 28,910    
  (Reversal of) Provision for Loan Losses         -       -   n/m       (3,200 )  
  Net ALL (Losses) Recoveries   (405 )   (265 ) 52.7 %   649    
  ALL End of Period $ 25,954   $ 29,771   -12.8 % $ 26,359    
  ALL Recoveries/Gross ALL Losses       66 %   78 %     134 %  
             
  Net ALL Losses (Recoveries)/Avg.          
  Total Loans (a)   0.12 %   0.07 %     -0.19 %  
             
        %    
    12/31'16YTD 12/31'15YTD Change    
             
  Average Total Loans $ 1,424,259   $ 1,618,271   -12.0 %    
             
  Allowance for Loan Loss (ALL)          
  Beginning of Period   $ 29,771   $ 31,485   -5.4 %    
  (Reversal of) Provision for Loan Losses         (3,200 )     -   n/m      
  Net ALL Losses   (617 )   (1,714 ) -64.0 %    
  ALL End of Period $ 25,954   $ 29,771   -12.8 %    
  ALL Recoveries/Gross ALL Losses       91 %   67 %      
             
  Net ALL Losses/Avg. Total Loans   0.04 %   0.11 %      
             
9. Credit Quality.          
    (dollars in thousands)  
        %    
    12/31/16 12/31/15 Change 9/30/16  
             
  Nonperforming Originated Loans:          
  Nonperforming Nonaccrual $ 1,405   $ 6,302   -77.7 % $ 1,198    
  Performing Nonaccrual     4,410       350   n/m       4,410    
  Total Nonaccrual Loans   5,815     6,652   -12.6 %   5,608    
  90+ Days Past Due Accruing Loans   355     295   20.3 %   438    
  Total   6,170     6,947   -11.2 %   6,046    
  Repossessed Originated Loan Collateral   396     5,829   -93.2 %   666    
  Total Nonperforming          
    Originated Assets   6,566     12,776   -48.6 %   6,712    
             
  Nonperforming Purchased Covered Loans (1):        
  Nonperforming Nonaccrual     858       -   n/m       29    
  Performing Nonaccrual     -       -   n/m       -    
  Total Nonaccrual Loans     858       -   n/m       29    
  90+ Days Past Due Accruing Loans     -       -   n/m       -    
  Total     858       -   n/m       29    
  Repossessed Purchased Covered              
  Loan Collateral (1)     -       -   n/m       -    
  Total Nonperforming Purchased            
  Covered Assets (1)     858       -   n/m       29    
             
  Nonperforming Purchased Non-Covered Loans (2):        
  Nonperforming Nonaccrual   1,693       8,346   -79.7 %   634    
  Performing Nonaccrual     19       -   n/m       22    
  Total Nonaccrual Loans   1,712       8,346   -79.5 %   656    
  90+ Days Past Due Accruing Loans     142       -   n/m       49    
  Total   1,854       8,346   -77.8 %   705    
  Repossessed Purchased Non-Covered            
  Loan Collateral (2)     2,699       3,435   -21.4 %     2,366    
  Total Nonperforming Purchased          
  Non-Covered Assets (2)   4,553       11,781   -61.4 %   3,071    
             
  Total Nonperforming Assets $ 11,977   $ 24,557   -51.2 % $ 9,812    
             
  Total Originated Loans Outstanding $ 1,235,559   $ 1,351,839   -8.6 % $ 1,242,224    
  Total Purchased Covered            
  Loans Outstanding (1)   11,027     14,061   -21.6 %   11,745    
  Total Purchased Non-Covered            
  Loans Outstanding (2)   106,125       167,496   -36.6 %   110,360    
  Total Loans Outstanding   $ 1,352,711   $ 1,533,396   -11.8 % $ 1,364,329    
             
  Total Assets   $ 5,366,083   $ 5,168,875   3.8 % $ 5,306,778    
             
  Loans:          
  Allowance for Loan Losses $ 25,954   $ 29,771   -12.8 % $ 26,359    
  Allowance/Loans   1.92 %   1.94 %     1.93 %  
  Nonperforming Loans/Total Loans   0.66 %   1.00 %     0.50 %  
             
  Purchased Covered Loans (1):          
  Fair Value Discount on Purchased            
    Covered Loans $ -   $ 152     $ -    
  Discount/Purchased Covered          
  Loans, gross   0.00 %   1.07 %     0.00 %  
  Nonperforming Purchased Covered Loans/        
  Total Purchased Covered Loans   7.78 %   0.00 %     0.25 %  
             
  Purchased Non-Covered Loans (2):          
  Fair Value Discount on Purchased            
  Non-Covered Loans $ 4,058   $ 6,432     $ 4,922    
  Discount/Purchased Non-Covered   3.68 %   3.70 %     4.27 %  
  Loans, gross          
  Nonperforming Purchased Non-Covered Loans/        
  Total Purchased Non-Covered Loans   1.75 %   4.98 %     0.64 %  
             
10. Capital.          
    (in thousands, except per-share amounts)  
        %    
    12/31/16 12/31/15 Change 9/30/16  
             
  Shareholders' Equity $ 561,367   $ 532,205   5.5 % $ 562,996    
  Total Assets   5,366,083     5,168,875   3.8 %   5,306,778    
             
  Shareholders' Equity/          
    Total Assets   10.46 %   10.30 %     10.61 %  
  Shareholders' Equity/          
    Total Loans   41.50 %   34.71 %     41.27 %  
  Tangible Common Equity Ratio   8.26 %   7.94 %     8.37 %  
  Common Shares Outstanding   25,907     25,528   1.5 %   25,665    
  Common Equity Per Share $ 21.67   $ 20.85   3.9 % $ 21.94    
  Market Value Per Common Share $ 62.93   $ 46.75   34.6 % $ 50.88    
             
  Share Repurchase Programs          
    (shares in thousands)  
        %    
    Q4'16 Q4'15 Change Q3'16  
             
  Total Shares Repurchased     -     2   n/m       -    
    Average Repurchase Price $ -   $ 43.01   n/m   $ -    
  Net Shares (Issued) Repurchased   (242 )   2   n/m     (33 )  
             
        %    
    12/31'16YTD 12/31'15YTD Change    
             
  Total Shares Repurchased   137     344   n/m      
    Average Repurchase Price $ 41.94   $ 43.90   n/m      
  Net Shares (Issued) Repurchased   (379 )   217   n/m      
11. Period-End Balance Sheets.          
    (unaudited, dollars in thousands)  
        %    
    12/31/16 12/31/15 Change 9/30/16  
  Assets:          
    Cash and Due from Banks $ 462,271   $ 433,044   6.7 % $ 471,367    
             
    Investment Securities:          
    Available For Sale   1,890,758     1,570,216   20.4 %   1,762,408    
    Held to Maturity   1,346,312     1,316,075   2.3 %   1,411,019    
             
    Loans   1,352,711     1,533,396   -11.8 %   1,364,329    
    Allowance For Loan Losses   (25,954 )   (29,771 ) -12.8 %   (26,359 )  
    Total Loans, net   1,326,757     1,503,625   -11.8 %   1,337,970    
             
    Other Real Estate Owned   3,095     9,264   -66.6 %   3,032    
    Premises and Equipment, net   36,566     38,693   -5.5 %   37,059    
    Identifiable Intangibles, net   6,927     10,431   -33.6 %   7,789    
    Goodwill     121,673     121,673   0.0 %   121,673    
    Other Assets   171,724     165,854   3.5 %   154,461    
             
  Total Assets $ 5,366,083   $ 5,168,875   3.8 % $ 5,306,778    
             
  Liabilities and Shareholders' Equity:          
    Deposits:          
    Noninterest Bearing $ 2,089,443   $ 2,026,049   3.1 % $ 2,064,988    
    Interest-Bearing Transaction   865,701     860,706   0.6 %   851,885    
    Savings   1,493,427     1,366,936   9.3 %   1,462,860    
    Time   256,170     286,968   -10.7 %   265,137    
    Total Deposits   4,704,741     4,540,659   3.6 %   4,644,870    
             
    Short-Term Borrowed Funds   59,078     53,028   11.4 %   56,358    
    Other Liabilities   40,897     42,983   -4.9 %   42,554    
  Total Liabilities   4,804,716     4,636,670   3.6 %   4,743,782    
             
  Shareholders' Equity:          
    Common Equity:          
    Paid-In Capital   406,139     381,436   6.5 %   393,134    
    Accumulated Other          
    Comprehensive Income   (10,074 )   675   n/m     9,001    
    Retained Earnings   165,302     150,094   10.1 %   160,861    
  Total Shareholders' Equity   561,367     532,205   5.5 %   562,996    
             
  Total Liabilities and            
    Shareholders' Equity $ 5,366,083   $ 5,168,875   3.8 % $ 5,306,778    
             
12. Income Statements.          
    (unaudited, in thousands except per-share amounts)  
        %    
    Q4'16 Q4'15 Change Q3'16  
  Interest & Fee Income:          
    Loans $ 16,235   $ 18,798   -13.6 % $ 16,968    
    Investment Securities:          
    Available for Sale   9,422     7,916   19.0 %   8,796    
    Held to Maturity   7,552     7,174   5.3 %   7,704    
  Total Interest & Fee Income   33,209     33,888   -2.0 %   33,468    
             
  Interest Expense:          
    Transaction Deposits   58     70   -17.0 %   64    
    Savings Deposits   230     218   5.7 %   229    
    Time Deposits   203     266   -23.6 %   219    
    Short-Term Borrowed Funds   9     9   -1.7 %   11    
  Total Interest Expense   500     563   -11.2 %   523    
             
  Net Interest Income   32,709     33,325   -1.8 %   32,945    
             
  (Reversal of) Provision for Loan Losses     -       -   n/m       (3,200 )  
             
  Noninterest Income:          
    Service Charges     5,064     5,259   -3.7 %   5,303    
    Merchant Processing Services   1,678     1,368   22.7 %   1,532    
    Debit Card Fees   1,566     1,557   0.6 %   1,587    
    Other Service Fees   620     648   -4.3 %   671    
    ATM Processing Fees   551     569   -3.2 %   600    
    Trust Fees   682     671   1.7 %   686    
    Financial Services Commissions   157     168   -6.3 %   118    
    Other   1,227     1,065   15.2 %   1,101    
  Total Noninterest Income   11,545     11,305   2.1 %   11,598    
             
  Noninterest Expense:          
    Salaries and   Benefits   12,439     12,398   0.3 %   13,063    
    Occupancy     3,570     3,761   -5.1 %   3,749    
    Outsourced Data Processing   2,131     2,107   1.1 %   2,114    
    Amortization of Identifiable Intangibles   863     948   -9.0 %   867    
    Professional Fees   797     614   29.8 %   1,693    
    Furniture & Equipment   1,290     1,081   19.3 %   1,211    
    Other Real Estate Owned   7     53   n/m     (206 )  
    Courier Service   494     585   -15.6 %   451    
    Other   2,986     3,957   -24.5 %   3,146    
  Total Noninterest Expense   24,577     25,504   -3.6 %   26,088    
             
  Income Before Income Taxes   19,677     19,126   2.9 %   21,655    
  Income Tax Provision   5,224     4,548   14.9 %   6,027    
  Net Income $ 14,453   $ 14,578   -0.9 % $ 15,628    
             
  Average Common Shares Outstanding   25,773     25,528   1.0 %   25,641    
  Diluted Common Shares Outstanding   25,925     25,555   1.4 %   25,687    
             
  Per Common Share Data:          
    Basic Earnings $ 0.56   $ 0.57   -1.8 % $ 0.61    
    Diluted Earnings   0.56     0.57   -1.8 %   0.61    
    Dividends Paid   0.39     0.39   0.0 %   0.39    
        %    
    12/31'16YTD 12/31'15YTD Change    
  Interest & Fee Income:          
    Loans $ 69,139   $ 78,441   -11.9 %    
    Investment Securities:          
    Available for Sale   34,276     31,263   9.6 %    
    Held to Maturity   30,636     26,825   14.2 %    
  Total Interest & Fee Income   134,051     136,529   -1.8 %    
             
  Interest Expense:          
    Transaction Deposits   259     260   -0.4 %    
    Savings Deposits   907     852   6.4 %    
    Time Deposits   911     1,258   -27.6 %    
    Short-Term Borrowed Funds   39     53   -26.1 %    
    Federal Home Loan Bank Advances     -     1   n/m      
  Total Interest Expense   2,116     2,424   -12.7 %    
             
  Net Interest Income   131,935     134,105   -1.6 %    
             
  (Reversal of) Provision for Loan Losses     (3,200 )     -   n/m      
             
  Noninterest Income:          
    Service Charges     20,854     22,241   -6.2 %    
    Merchant Processing Services   6,377     6,339   0.6 %    
    Debit Card Fees   6,290     6,084   3.4 %    
    Other Service Fees   2,571     2,689   -4.4 %    
    ATM Processing Fees   2,411     2,397   0.6 %    
    Trust Fees   2,686     2,732   -1.7 %    
    Financial Services Commissions   568     695   -18.3 %    
    Other   4,817     4,690   2.7 %    
  Total Noninterest Income   46,574     47,867   -2.7 %    
             
  Noninterest Expense:          
    Salaries and   Benefits   51,507     52,192   -1.3 %    
    Occupancy     14,116     14,960   -5.6 %    
    Outsourced Data Processing   8,505     8,441   0.8 %    
    Amortization of Identifiable Intangibles   3,504     3,856   -9.1 %    
    Professional Fees   3,980     2,490   59.8 %    
    Furniture & Equipment   4,901     4,434   10.5 %    
    Other Real Estate Owned   (479 )   504   n/m      
    Courier Service   1,952     2,329   -16.2 %    
    Other   13,766     16,094   -14.5 %    
  Total Noninterest Expense   101,752     105,300   -3.4 %    
             
  Income Before Income Taxes   79,957     76,672   4.3 %    
  Income Tax Provision   21,104     17,919   17.8 %    
  Net Income $ 58,853   $ 58,753   0.2 %    
             
  Average Common Shares Outstanding   25,612     25,555   0.2 %    
  Diluted Common Shares Outstanding   25,678     25,577   0.4 %    
             
  Per Common Share Data:          
  Basic Earnings $ 2.30   $ 2.30   0.0 %    
  Diluted Earnings   2.29     2.30   -0.4 %    
  Dividends Paid   1.56     1.53   2.0 %    
             
  Footnotes and Abbreviations:          
             
  (FTE) Fully Taxable Equivalent. The Company presents its net interest margin and net interest incomeon a FTE basis using the current statutory federal tax rate, which is a non-generally acceptedaccounting principles (GAAP) financial measure.   Management believes the FTE basis is valuable tothe reader because the Company's loan and investment securities portfolios contain a relatively largeportion of municipal loans and securities that are federally tax exempt.   The Company's tax exemptloans and securities composition may not be similar to that of other banks, therefore in order toreflect the impact of the federally tax exempt loans and securities on the net interest margin and netinterest income for comparability with other banks, the Company presents its net interest margin andnet interest income on a FTE basis.    
       
  (a) Annualized          
             
  (1) Purchased covered loans and repossessed loan collateral represent assets purchased in abusiness 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 abusiness 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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