Westamerica Bancorporation Reports Fourth Quarter 2012 Earnings

Westamerica Bancorporation Reports Fourth Quarter 2012 Earnings

SAN RAFAEL, Calif., Jan. 17, 2013 (GLOBE NEWSWIRE) -- Westamerica
Bancorporation (Nasdaq:WABC), parent company of Westamerica Bank, today
reported net income for the fourth quarter 2012 of $19.1 million and diluted
earnings per common share ("EPS") of $0.70. Fourth quarter 2012 results
compare to net income of $20.0 million and EPS of $0.73 for the prior quarter,
and net income of $21.8 million and EPS of $0.77 for the fourth quarter 2011.
Fourth quarter 2012 net income represented an annualized return on
shareholders' equity of 14.1 percent.

"Westamerica continues to deliver relatively high levels of profitability in a
difficult operating environment. We are focused on controlling costs while
banking industry revenues are pressured by low interest rates and aggressive
competition. Westamerica's problem loans and repossessed loan collateral
declined $41.8 million from December 31, 2011 to December 31, 2012, which
helped reduce credit administration costs and professional fees. During the
fourth quarter, we delivered approximately 34 percent of our revenue,
after-taxes, to the bottom line for shareholders," said Chairman, President
and CEO David Payne. "Westamerica paid a $0.37 per common share dividend in
the fourth quarter 2012, and retired 183 thousand common shares using our
share repurchase plan. Westamerica's capital ratios continue to exceed the
highest regulatory guidelines," added Payne.

Net interest income on a fully taxable equivalent basis was $46.3 million for
the fourth quarter 2012, compared to $48.7 million for the prior quarter and
$53.4 million for the fourth quarter 2011. The change in net interest income
is due to reductions in yields on loans and investment securities, which have
declined during this period of low market interest rates. The change in net
interest income is also attributable to reduced loan volumes, placing greater
reliance on lower-yielding investment securities. Loan volumes have declined
due to problem loan workout activities, particularly with purchased loans, and
reduced volumes of loan originations. In Management's opinion, current levels
of competitive loan pricing do not provide adequate forward earnings
potential, and competitive loan underwriting standards are loosening, causing
newly originated loans to contain higher levels of credit risk; Management is
avoiding low-yielding higher-risk loan originations. To offset the decline in
interest income, interest expense has been reduced by lowering rates paid on
interest-bearing deposits and borrowings and by reducing the volume of
higher-cost funding sources. The annualized interest cost of funding the
Company's loans and investment securities was 0.13 percent in both the fourth
quarter 2012 and third quarter 2012 compared to 0.18 percent in the fourth
quarter 2011. The annualized net interest margin on a fully taxable equivalent
basis was 4.49 percent for the fourth quarter 2012, compared to 4.67 percent
for the prior quarter and 5.24 percent for the fourth quarter 2011.

The provision for loan losses was $2.8 million for the fourth quarter 2012,
unchanged from the prior quarter and fourth quarter 2011. Net loan losses
charged against the allowance for loan losses totaled $3.5 million for the
fourth quarter 2012, compared to $3.4 million for the prior quarter and $3.1
million for the fourth quarter 2011. At December 31, 2012, the allowance for
loan losses totaled $30.2 million; nonperforming originated loans totaled
$12.2 million; nonperforming purchased FDIC-indemnified loans totaled $13.2
million, net of purchase discounts of $1.9 million; and nonperforming
purchased non-indemnified loans totaled $7.5 million, net of purchase
discounts of $2.0 million.

Noninterest income for the fourth quarter 2012 totaled $14.2 million, compared
to $14.6 million in the third quarter 2012 and $14.9 million for the fourth
quarter 2011.

Noninterest expense for the fourth quarter 2012 totaled $28.2 million,
compared to $29.3 million in the prior quarter and $30.7 million in the fourth
quarter 2011. Management is focused on reducing operating expenses over the
near-term, primarily professional fees, repossessed loan collateral expenses
and other problem loan related costs. Expenses related to repossessed loan
collateral in the fourth quarter 2012 were lower by $357 thousand and $301
thousand compared to the third quarter 2012 and fourth quarter 2011,
respectively. Professional fees were $553 thousand lower in the fourth quarter
2012 compared to the fourth quarter 2011. In addition, personnel related costs
have declined primarily due to lower stock based compensation expense and a
decline in the number of employees due to attrition.

At December 31, 2012, Westamerica Bancorporation's tangible common
equity-to-asset ratio was 8.6 percent, assets totaled $5.0 billion and loans
outstanding totaled $2.1 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, 2011
filed on Form 10-K and quarterly report for the quarter ended September 30,
2012 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.

The Westamerica Bancorporation logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=3638

                                 Public Information January 17, 2013
WESTAMERICA BANCORPORATION                                    
FINANCIAL HIGHLIGHTS                                          
December 31, 2012                                             
                                                             
1. Net Income Summary.                                        
                                 (in thousands except per-share amounts)
                                                       %      
                                 Q4'12       Q4'11       Change Q3'12
                                                             
Net Interest Income (FTE)         $46,283     $53,362     -13.3% $48,712
Provision for Loan Losses         2,800       2,800       0.0%   2,800
Total Noninterest Income          14,194      14,857      -4.5%  14,626
Noninterest Expense               28,233      30,663      -7.9%  29,269
Income Before Taxes (FTE)         29,444      34,756      -15.3% 31,269
Income Tax Provision (FTE)        10,308      12,951      -20.4% 11,247
Net Income                        $19,136     $21,805     -12.2% $20,022
                                                             
Average Common Shares Outstanding 27,313      28,296      -3.5%  27,513
Diluted Average Common Shares     27,334      28,334      -3.5%  27,565
                                                             
Operating Ratios:                                             
Basic Earnings Per Common Share   $0.70       $0.77       -9.1%  $0.73
Diluted Earnings Per Common Share 0.70        0.77        -9.1%  0.73
Return On Assets (a)              1.55%       1.73%             1.63%
Return On Common Equity (a)       14.1%       15.9%             14.7%
Net Interest Margin (FTE) (a)     4.49%       5.24%             4.67%
Efficiency Ratio (FTE)            46.7%       44.9%             46.2%
                                                             
Dividends Paid Per Common Share   $0.37       $0.37       0.0%   $0.37
Common Dividend Payout Ratio     53%         48%               51%
                                                             
                                                       %      
                                 12/31'12YTD 12/31'11YTD Change 
                                                             
Net Interest Income (FTE)         $197,027    $218,867    -10.0% 
Provision for Loan Losses         11,200      11,200      0.0%   
Noninterest Income:                                           
Loss on Sale of Securities        (1,287)     --         n/m   
Other                             58,309      60,097      -3.0%  
Total Noninterest Income          57,022      60,097      -5.1%  
Noninterest Expense:                                          
Settlements                       --         2,100       n/m    
Other                             116,885     125,578     -6.9%  
Total Noninterest Expense         116,885     127,678     -8.5%  
Income Before Taxes (FTE)         125,964     140,086     -10.1% 
Income Tax Provision (FTE)        44,837      52,198      -14.1% 
Net Income                        $81,127     $87,888     -7.7%  
                                                             
Average Common Shares Outstanding 27,654      28,628      -3.4%  
Diluted Average Common Shares     27,699      28,742      -3.6%  
                                                             
Operating Ratios:                                             
Basic Earnings Per Common Share   $2.93       $3.07       -4.6%  
Diluted Earnings Per Common Share 2.93        3.06        -4.2%  
Return On Assets                  1.64%       1.78%             
Return On Common Equity           14.9%       16.1%             
Net Interest Margin (FTE)         4.79%       5.32%             
Efficiency Ratio (FTE)            46.0%       45.8%             
                                                             
Dividends Paid Per Common Share   $1.48       $1.45       2.1%   
Common Dividend Payout Ratio     51%         47%               
                                                             
2. Net Interest Income.                                       
                                 (dollars in thousands)
                                                       %      
                                 Q4'12       Q4'11       Change Q3'12
                                                             
Interest and Fee Income (FTE)     $47,614     $55,217     -13.8% $50,094
Interest Expense                  1,331       1,855       -28.3% 1,382
Net Interest Income (FTE)         $46,283     $53,362     -13.3% $48,712
                                                             
Average Earning Assets            $4,111,970  $4,052,476  1.5%   $4,160,953
Average Interest--                                            
Bearing Liabilities               2,663,389   2,846,417   -6.4%  2,683,663
                                                             
Yield on Earning Assets (FTE) (a) 4.62%       5.42%             4.80%
Cost of Funds (a)                 0.13%       0.18%             0.13%
Net Interest Margin (FTE) (a)     4.49%       5.24%             4.67%
Interest Expense/                                             
Interest-Bearing Liabilities (a)  0.20%       0.26%             0.21%
Net Interest Spread (FTE) (a)     4.42%       5.16%             4.59%
                                                             
                                                       %      
                                 12/31'12YTD 12/31'11YTD Change 
                                                             
Interest and Fee Income (FTE)     $202,771    $227,249    -10.8% 
Interest Expense                  5,744       8,382       -31.5% 
Net Interest Income (FTE)         $197,027    $218,867    -10.0% 
                                                             
Average Earning Assets            $4,115,339  $4,113,375  0.0%   
Average Interest--                                            
Bearing Liabilities               2,745,497   2,848,441   -3.6%  
                                                             
Yield on Earning Assets (FTE)     4.93%       5.52%             
Cost of Funds                     0.14%       0.20%             
Net Interest Margin (FTE)         4.79%       5.32%             
Interest Expense/                                             
Interest-Bearing Liabilities      0.21%       0.29%             
Net Interest Spread (FTE)         4.72%       5.23%             
                                                             
3. Loans & Other Earning Assets.                              
                                 (average volume, dollars in thousands)
                                                       %      
                                 Q4'12       Q4'11       Change Q3'12
                                                             
Total Assets                      $4,920,620  $5,013,227  -1.8%  $4,892,088
Total Earning Assets              4,111,970   4,052,476   1.5%   4,160,953
Total Loans                       2,155,059   2,587,303   -16.7% 2,263,239
Commercial Loans                  425,035     575,607     -26.2% 457,644
Commercial RE Loans              939,943     1,139,249   -17.5% 990,509
Consumer Loans                    790,081     872,447     -9.4%  815,086
Total Investment Securities       1,956,911   1,465,173   33.6%  1,897,714
Available For Sale (Market)       796,998     667,514     19.4%  716,369
Held To Maturity                  1,159,913   797,659     45.4%  1,181,345
Unrealized Gain                   28,516      24,690      15.5%  31,614
                                                             
Loans/Deposits                    51.2%       60.9%             54.2%
                                                             
                                                       %      
                                 12/31'12YTD 12/31'11YTD Change 
                                                             
Total Assets                      $4,954,302  $4,950,754  0.1%   
Total Earning Assets              4,115,339   4,113,375   0.0%   
Total Loans                       2,314,870   2,736,545   -15.4% 
Commercial Loans                  474,436     643,254     -26.2% 
Commercial RE Loans              1,016,805   1,199,390   -15.2% 
Consumer Loans                    823,629     893,901     -7.9%  
Total Investment Securities       1,800,469   1,376,830   30.8%  
Available For Sale (Market)       705,606     704,394     0.2%   
Held To Maturity                  1,094,863   672,436     62.8%  
Unrealized Gain                   28,516      24,690      15.5%  
                                                             
Loans/Deposits                    54.9%       65.6%             

                                                                 
4. Deposits, Other Interest-Bearing                               
Liabilities & Equity
                              (average volume, dollars in thousands)
                                                     %           
                              Q4'12        Q4'11       Change      Q3'12
                                                                
Total Deposits                 $4,211,609   $4,248,191  -0.9%       $4,176,342
Noninterest Demand            1,654,575    1,559,801   6.1%        1,605,362
Interest Bearing Transaction   761,395      727,617     4.6%        756,824
Savings                        1,146,891    1,145,110   0.2%        1,125,286
Time greater than $100K        400,556      521,742     -23.2%      430,239
Time less than $100K           248,192      293,921     -15.6%      258,631
Total Short-Term Borrowings    55,523       106,973     -48.1%      61,794
Federal Home Loan Bank         25,832       26,054      -0.9%       25,889
Advances
Term Repurchase Agreement      10,000       10,000     0.0%        10,000
Debt Financing and Notes       15,000       15,000      0.0%        15,000
Payable
Shareholders' Equity           541,684      545,654     -0.7%       542,708
                                                                
Demand Deposits/                                                 
Total Deposits                 39.3%        36.7%                  38.4%
Transaction & Savings                                           
Deposits / Total Deposits      84.6%        80.8%                  83.5%
                                                                
                                                     %           
                              12/31'12YTD  12/31'11YTD Change      
                                                                
Total Deposits                 $4,217,239   $4,171,894  1.1%        
Noninterest Demand            1,603,981    1,496,362   7.2%        
Interest Bearing Transaction   754,979      713,754     5.8%        
Savings                        1,132,980    1,112,364   1.9%        
Time greater than $100K        460,833      535,866     -14.0%      
Time less than $100K           264,466      313,548     -15.7%      
Total Short-Term Borrowings    81,323       105,157     -22.7%      
Federal Home Loan Bank         25,916       41,741      -37.9%      
Advances
Term Repurchase Agreement      10,000       3,945      n/m         
Debt Financing and Notes       15,000       22,066      -32.0%      
Payable
Shareholders' Equity           543,309      544,458     -0.2%       
                                                                
Demand Deposits/                                                 
Total Deposits                 38.0%        35.9%                  
Transaction & Savings                                           
Deposits / Total Deposits      82.8%        79.6%                  
                                                                
5. Interest Yields Earned &                                      
Rates Paid.
                              (dollars in thousands)               
                              Q4'12                                
                              Average      Income/     Yield (a) / 
                              Volume       Expense     Rate        
                                                                
Interest & Fee Income Earned                                     
Total Earning Assets (FTE)     $4,111,970   $47,614     4.62%       
Total Loans (FTE)              2,155,059    30,267      5.59%       
Commercial Loans (FTE)         425,035      6,983       6.54%       
Commercial RE Loans           939,943      15,067      6.38%       
Consumer Loans                 790,081      8,217       4.14%       
Total Investments (FTE)        1,956,911    17,347      3.54%       
                                                                
Interest Expense Paid                                            
Total Earning Assets          4,111,970    1,331       0.13%       
Total Interest-Bearing         2,663,389    1,331       0.20%       
Liabilities
Total Interest-Bearing         2,557,034    970         0.15%       
Deposits
Interest-Bearing Transaction   761,395      70          0.04%       
Savings                        1,146,891    234         0.08%       
Time less than $100K           248,192      332         0.53%       
Time greater than $100K        400,556      334         0.33%       
Total Short-Term Borrowings   55,523       14          0.10%       
Federal Home Loan Bank         25,832       122         1.87%       
Advances
Term Repurchase Agreement      10,000       25          0.97%       
Debt Financing and Notes       15,000       200         5.35%       
Payable
                                                                
Net Interest Income and                                         
Margin (FTE)                               $46,283     4.49%       
                                                                
                              Q4'11                                
                              Average      Income/     Yield (a) / 
                              Volume       Expense     Rate        
                                                                
Interest & Fee Income Earned                                     
Total Earning Assets (FTE)     $4,052,476   $55,217     5.42%       
Total Loans (FTE)              2,587,303    38,936      5.97%       
Commercial Loans (FTE)         575,607      9,932       6.85%       
Commercial RE Loans           1,139,249    18,676      6.50%       
Consumer Loans                 872,447      10,328      4.70%       
Total Investments (FTE)        1,465,173    16,281      4.44%       
                                                                
Interest Expense Paid                                            
Total Earning Assets          4,052,476    1,855       0.18%       
Total Interest-Bearing         2,846,417    1,855       0.26%       
Liabilities
Total Interest-Bearing         2,688,390    1,461       0.22%       
Deposits
Interest-Bearing Transaction   727,617      144         0.08%       
Savings                        1,145,110    356         0.12%       
Time less than $100K           293,921      496         0.67%       
Time greater than $100K        521,742      465         0.35%       
Total Short-Term Borrowings   106,973      46          0.17%       
Federal Home Loan Bank         26,054       122         1.87%       
Advances
Term Repurchase Agreement      10,000      25         0.97%       
Debt Financing and Notes       15,000       201         5.35%       
Payable
                                                                
Net Interest Income and                                          
Margin (FTE)                               $53,362     5.24%       
                                                                
                                                                
6. Noninterest Income.                                           
                              (dollars in thousands except per-share amounts)
                                                     %           
                              Q4'12        Q4'11       Change      Q3'12
                                                                
Service Charges on Deposits    $6,722       $6,994      -3.9%       $6,847
Merchant Processing Services   2,401        2,515       -4.5%       2,411
Debit Card Fees                1,357        1,204       12.7%       1,308
ATM Processing Fees            749          904         -17.2%      782
Trust Fees                     552          480         15.0%       540
Financial Services Commissions 148          165         -10.3%      175
Other Income                   2,265        2,595       -12.7%      2,563
Total Noninterest Income       $14,194      $14,857     -4.5%       $14,626
                                                                
Total Revenue (FTE)            $60,477      $68,219     -11.3%      $63,338
Noninterest Income/Revenue     23.5%        21.8%                  23.1%
(FTE)
Service Charges/Avg. Deposits  0.63%        0.65%                  0.65%
(a)
Total Revenues (FTE) Per Avg.                                   
Common Share (a)               $8.81        $9.57       -7.9%       $9.16
                                                                
                                                     %           
                              12/31'12YTD  12/31'11YTD Change      
                                                                
Service Charges on Deposits    $27,691      $29,523     -6.2%       
Merchant Processing Services   9,734        9,436       3.2%        
Debit Card Fees                5,173        4,956       4.4%        
ATM Processing Fees            3,396        3,815       -11.0%      
Trust Fees                     2,078        1,887       10.1%       
Financial Services Commissions 689          423         63.0%       
Loss on Sale of Securities     (1,287)      --         n/m        
Other Income                   9,548        10,057      -5.1%       
Total Noninterest Income       $57,022      $60,097     -5.1%       
                                                                
Total Revenue (FTE)            $254,049     $278,964    -8.9%       
Noninterest Income/Revenue     22.4%        21.5%                  
(FTE)
Service Charges/Avg. Deposits  0.66%        0.71%                  
Total Revenues (FTE) Per Avg.                                   
Common Share                   $9.19        $9.74       -5.7%       

                                                                
7. Noninterest Expense.                                          
                                    (dollars in thousands)
                                                          %      
                                    Q4'12       Q4'11       Change Q3'12
                                                                
Salaries & Benefits                  $13,555     $14,113     -4.0%  $14,294
Occupancy                            3,851       4,124       -6.6%  3,901
Outsourced Data Processing           2,213       2,101       5.3%   2,156
Amortization of                                                 
Identifiable Intangibles             1,292       1,470       -12.1% 1,336
Professional Fees                    761         1,314       -42.0% 786
Equipment                            892         922         -3.3%  991
Other Real Estate Owned              322         623         -48.3% 679
Courier Service                      768         806         -4.8%  772
Loan Expense                         467         589         -20.7% 400
Telephone                            511         420         21.7%  429
Postage                              301         383         -21.5% 308
Operational Losses                   113         236         -52.0% 110
Stationery & Supplies                275         340         -19.3% 274
Other Operating                      2,912       3,222       -9.6%  2,833
Total Noninterest Expense            $28,233     $30,663     -7.9%  $29,269
                                                                
Noninterest Expense/                                             
Avg. Earning Assets (a)              2.73%       3.00%             2.80%
Noninterest Expense/Revenues (FTE)   46.7%       44.9%             46.2%
                                                                
                                                          %      
                                    12/31'12YTD 12/31'11YTD Change 
                                                                
Salaries & Benefits                  $57,388     $58,501     -1.9%  
Occupancy                            15,460      16,209      -4.6%  
Outsourced Data Processing           8,531       8,844       -3.5%  
Amortization of                                                 
Identifiable Intangibles             5,368       5,975       -10.2% 
Professional Fees                    3,217       4,802       -33.0% 
Equipment                            3,775       3,837       -1.6%  
Other Real Estate Owned              1,235       2,458       -49.8% 
Courier Service                      3,117       3,342       -6.7%  
Loan Expense                         1,884       2,104       -10.5% 
Telephone                            1,735       1,705       1.8%   
Postage                              1,326       1,467       -9.6%  
Operational Losses                   546         1,051       -48.0% 
Stationery & Supplies                1,038       1,259       -17.5% 
Settlements                          --         2,100       n/m    
Other Operating                      12,265      14,024      -12.5% 
Total Noninterest Expense            $116,885    $127,678    -8.5%  
                                                                
Noninterest Expense/                                             
Avg. Earning Assets                  2.84%       3.10%             
Noninterest Expense/Revenues (FTE)   46.0%       45.8%             
                                                                
                                                                
8. Provision for Loan Losses.                                    
                                    (dollars in thousands)
                                                          %      
                                    Q4'12       Q4'11       Change Q3'12
                                                                
Average Total Loans                  $2,155,059  $2,587,303  -16.7% $2,263,239
Avg. Total Purchased                                             
Covered Loans (1)                    394,848     559,451     -29.4% 435,953
Avg. Total Purchased                                             
Non-Covered Loans (2)                77,632      132,576    -41.4% 97,100
Avg. Total Originated Loans          1,682,579   1,895,276   -11.2% 1,730,186
                                                                
Allowance for Loan Loss (ALL)                                   
Beginning of Period                 $30,966     $32,893     -5.9%  $31,523
Provision for Loan Losses           2,800       2,800       0.0%   2,800
Net ALL Losses                       (3,532)     (3,096)     14.1%  (3,357)
ALL End of Period                    $30,234     $32,597     -7.2%  $30,966
ALL Recoveries/Gross ALL Losses     23%         50%               28%
Net ALL Losses/Avg. Loans:                                       
Originated Loans (a)                 0.91%       0.53%             0.63%
Purchased Covered Loans (1)(a)       0.14%       0.40%             0.09%
Purchased Non-Covered Loans (2)(a)   -2.31%      --               2.19%
                                                                
                                                          %      
                                    12/31'12YTD 12/31'11YTD Change 
                                                                
Average Total Loans                  $2,314,870  $2,736,545  -15.4% 
Avg. Total Purchased                                             
Covered Loans (1)                    455,463     618,343     -26.3% 
Avg. Total Purchased                                             
Non-Covered Loans (2)                100,358     163,808    -38.7% 
Avg. Total Originated Loans          1,759,049   1,954,394   -10.0% 
                                                                
Allowance for Loan Loss (ALL)                                   
Beginning of Period                 $32,597     $35,636     -8.5%  
Provision for Loan Losses           11,200      11,200      0.0%   
Net ALL Losses                       (13,563)    (14,239)    -4.8%  
ALL End of Period                    $30,234     $32,597     -7.2%  
ALL Recoveries/Gross ALL Losses     25%         30%               
Net ALL Losses/Avg. Loans:                                       
Originated Loans                     0.72%       0.68%             
Purchased Covered Loans (1)          0.18%       0.16%             
Purchased Non-Covered Loans (2)      0.11%       --               
                                                                
9. Credit Quality.                                               
                                    (dollars in thousands)
                                                          %      
                                    12/31/12    12/31/11    Change 9/30/12
                                                                
Nonperforming Originated Loans:                                  
Nonperforming Nonaccrual             $10,016     $10,291     -2.7%  $9,870
Performing Nonaccrual                1,759       5,256       -66.5% 3,169
Total Nonaccrual Loans               11,775      15,547      -24.3% 13,039
90+ Days Past Due Accruing Loans     455         2,047       -77.8% 433
Total                                12,230      17,594      -30.5% 13,472
Repossessed Loan Collateral          9,295       14,868      -37.5% 11,539
Total Originated                                                 
Nonperforming Assets                21,525      32,462      -33.7% 25,011
                                                                
Nonperforming Purchased Covered                                  
Loans (1):
Nonperforming Nonaccrual             11,698      9,388       24.6%  19,584
Performing Nonaccrual                1,323       4,924       -73.1% 1,014
Total Nonaccrual Loans               13,021      14,312      -9.0%  20,598
90+ Days Past Due Accruing Loans     155         241         -35.7% 59
Total                                13,176      14,553      -9.5%  20,657
Repossessed Purchased Covered                                   
Loan Collateral (1)                  13,691      19,135      -28.5% 12,437
Total Nonperforming Purchased                                    
Covered Assets (1)                   26,867      33,688      -20.2% 33,094
                                                                
Nonperforming Purchased Non-Covered Loans (2):                    
Nonperforming Nonaccrual             7,038       16,170     -56.5% 7,823
Performing Nonaccrual                461         7,037      -93.4% 2,260
Total Nonaccrual Loans               7,499       23,207     -67.7% 10,083
90+ Days Past Due Accruing Loans     4          34         n/m    1
Total                                7,503       23,241     -67.7% 10,084
Repossessed Purchased Non-Covered                               
Loan Collateral (2)                  3,366       11,632     -71.1% 3,303
Total Nonperforming Purchased                                    
Non-Covered Assets (2)               10,869      34,873     -68.8% 13,387
                                                                
Total Nonperforming Assets           $59,261     $101,023    -41.3% $71,492
                                                                
Total Originated Loans Outstanding   $1,664,183  $1,862,607  -10.7% $1,708,414
Total Purchased Covered                                         
Loans Outstanding (1)                372,283     535,278     -30.5% 418,364
Total Purchased Non-Covered                                     
Loans Outstanding (2)                74,891      125,921    -40.5% 82,676
Total Loans Outstanding             $2,111,357  $2,523,806  -16.3% $2,209,454
                                                                
Total Assets                        $4,952,193  $5,042,161  -1.8%  $4,859,627
                                                                
Originated Loans:                                                
Allowance for Loan Losses            $30,234     $32,597     -7.2%  $30,966
Allowance/Originated Loans           1.82%       1.75%             1.81%
Nonperforming Originated Loans/                                  
Total Originated Loans               0.73%       0.94%             0.79%
Allowance/Originated                                             
Nonperforming Loans                  247%        185%              230%
                                                                
Purchased Covered Loans (1):                                     
Fair Value Discount on Purchased                                
Covered Loans                        $26,128     $46,282           $27,241
Discount/Purchased Covered                                       
Loans, gross                         6.56%       7.96%             6.11%
Nonperforming Purchased Covered                                  
Loans/
Total Purchased Covered Loans        3.54%       2.72%             4.94%
                                                                
Purchased Non-Covered Loans (2):                                 
Fair Value Discount on Purchased                                
Non-Covered Loans                    $5,226      $10,211           $5,495
Discount/Purchased Non-Covered       6.52%       7.50%             6.23%
Loans, gross                                                     
Nonperforming Purchased Non-Covered Loans/                        
Total Purchased Non-Covered Loans    10.02%      18.46%            12.20%

                                                              
10. Capital.                                                   
                           (in thousands, except per-share amounts)
                                                      %        
                           12/31/12       12/31/11      Change   9/30/12
                                                              
Shareholders' Equity        $560,102       $558,641      0.3%     $558,841
Tier I Regulatory Capital   409,763        408,266       0.4%     407,881
Total Regulatory Capital    444,205        444,659       -0.1%    442,399
                                                              
Total Assets                4,952,193      5,042,161     -1.8%    4,859,627
Risk-Adjusted Assets        2,720,332      2,808,303     -3.1%    2,726,803
                                                              
Shareholders' Equity/                                          
Total Assets                11.31%         11.08%                11.50%
Shareholders' Equity/                                          
Total Loans                 26.53%         22.13%                25.29%
Tier I Capital/Total Assets 8.27%          8.10%                 8.39%
Tier I Capital/                                                
Risk-Adjusted Assets        15.06%         14.54%                14.96%
Total Regulatory Capital/                                      
Risk-Adjusted Assets        16.33%         15.83%                16.22%
Tangible Common Equity      8.64%          8.35%                 8.75%
Ratio
Common Shares Outstanding   27,213         28,150        -3.3%    27,396
Common Equity Per Share     $20.58         $19.85        3.7%     $20.40
Market Value Per Common     $42.59         $43.90        -3.0%    $47.05
Share
                                                              
Share Repurchase Programs                                      
                           (shares in thousands)
                                                      %        
                           Q4'12          Q4'11         Change   Q3'12
                                                              
Total Shares Repurchased    299            361           -17.2%   270
Average Repurchase Price    $42.92         $42.83        0.2%     $46.63
Net Shares Repurchased      183            151           21.1%    225
                                                              
                                                      %        
                           12/31'12YTD    12/31'11YTD   Change   
                                                              
Total Shares Repurchased    1,135          1,317         -13.8%   
Average Repurchase Price    $45.38         $45.99        -1.3%    
Net Shares Repurchased      937            940           -0.4%    
                                                              
11. Period-End Balance                                         
Sheets.
                           (unaudited, dollars in thousands)
                                                      %        
                           12/31/12       12/31/11      Change   9/30/12
Assets:                                                        
Cash and Money Market       $491,382       $530,045      -7.3%    $367,964
Assets
                                                              
Investment Securities:                                         
Available For Sale          825,636        638,753       29.3%    738,462
Held to Maturity            1,156,041      922,803       25.3%    1,158,731
                                                              
Purchased Covered Loans (1) 372,283        535,278       -30.5%   418,364
Purchased Non-Covered Loans 74,891         125,921      -40.5%   82,676
(2)
Originated Loans            1,664,183      1,862,607     -10.7%   1,708,414
Allowance For Loan Losses   (30,234)       (32,597)      -7.2%    (30,966)
Total Loans, net            2,081,123      2,491,209     -16.5%   2,178,488
                                                              
Non-Covered Other Real                                         
Estate
Owned                       12,661         26,500        -52.2%   14,842
Covered Other Real Estate                                      
Owned (1)                   13,691         19,135        -28.5%   12,437
Premises and Equipment, net 38,639         36,548        5.7%     38,386
Identifiable Intangibles,   23,261         28,629        -18.8%   24,553
net
Goodwill                   121,673        121,673       0.0%     121,673
Other Assets                188,086        226,866       -17.1%   204,091
                                                              
Total Assets                $4,952,193     $5,042,161    -1.8%    $4,859,627
                                                              
Liabilities and                                                
Shareholders' Equity:
Deposits:                                                      
Noninterest Bearing         $1,676,071     $1,562,254    7.3%     $1,594,379
Interest-Bearing            748,818        734,988       1.9%     745,852
Transaction
Savings                     1,165,032      1,148,178     1.5%     1,133,788
Time                        642,571        804,501       -20.1%   656,538
Total Deposits              4,232,492      4,249,921     -0.4%    4,130,557
                                                              
Short-Term Borrowed Funds   53,687         115,689       -53.6%   55,630
Federal Home Loan Bank      25,799         26,023        -0.9%    25,855
Advances
Term Repurchase Agreement   10,000         10,000       0.0%     10,000
Debt Financing and Notes    15,000         15,000        0.0%     15,000
Payable
Other Liabilities           55,113         66,887        -17.6%   63,744
Total Liabilities           4,392,091      4,483,520     -2.0%    4,300,786
                                                              
Shareholders' Equity:                                          
Common Equity:                                                 
Paid-In Capital             375,113        380,835       -1.5%    374,312
Accumulated Other                                              
Comprehensive Income        14,625         11,369        28.6%    14,454
Retained Earnings           170,364        166,437       2.4%     170,075
Total Shareholders' Equity  560,102        558,641       0.3%     558,841
                                                              
Total Liabilities and                                         
Shareholders' Equity        $4,952,193     $5,042,161    -1.8%    $4,859,627
                                                              
12. Income Statements.                                         
                           (unaudited, in thousands except per-share amounts)
                                                      %        
                           Q4'12          Q4'11         Change   Q3'12
Interest & Fee Income:                                         
Loans                       $29,640        $38,139       -22.3%   $31,779
Investment Securities:                                         
Available for Sale          5,166          5,167         0.0%     4,918
Held to Maturity            8,087          7,115         13.7%    8,575
Total Interest & Fee Income 42,893         50,421        -14.9%   45,272
                                                              
Interest Expense:                                              
Transaction Deposits        70             144           -51.6%   70
Savings Deposits            234            356           -34.3%   231
Time Deposits               666            961           -30.7%   719
Short-Term Borrowed Funds   14             46            -69.0%   15
Federal Home Loan Bank      122            122           -0.4%    122
Advances
Term Repurchase Agreement   25             25           0.0%     25
Debt Financing and Notes    200            201           0.0%     200
Payable
Total Interest Expense      1,331          1,855         -28.3%   1,382
                                                              
Net Interest Income         41,562         48,566        -14.4%   43,890
                                                              
Provision for Loan Losses   2,800          2,800         0.0%     2,800
                                                              
Noninterest Income:                                            
Service Charges            6,722          6,994         -3.9%    6,847
Merchant Processing         2,401          2,515         -4.5%    2,411
Services
Debit Card Fees             1,357          1,204         12.7%    1,308
ATM Processing Fees         749            904           -17.2%   782
Trust Fees                  552            480           15.0%    540
Financial Services          148            165           -10.3%   175
Commissions
Other                       2,265          2,595         -12.7%   2,563
Total Noninterest Income    14,194         14,857        -4.5%    14,626
                                                              
Noninterest Expense:                                           
Salaries andBenefits       13,555         14,113        -4.0%    14,294
Occupancy                  3,851          4,124         -6.6%    3,901
Outsourced Data Processing  2,213          2,101         5.3%     2,156
Amortization of             1,292          1,470         -12.1%   1,336
Identifiable Intangibles
Professional Fees           761            1,314         -42.0%   786
Equipment                   892            922           -3.3%    991
Other Real Estate Owned     322            623           -48.3%   679
Courier Service             768            806           -4.8%    772
Other                       4,579          5,190         -11.8%   4,354
Total Noninterest Expense   28,233         30,663        -7.9%    29,269
                                                              
Income Before Income Taxes  24,723         29,960        -17.5%   26,447
Income Tax Provision        5,587          8,155         -31.5%   6,425
Net Income                  $19,136        $21,805       -12.2%   $20,022
                                                              
Average Common Shares       27,313         28,296        -3.5%    27,513
Outstanding
Diluted Common Shares       27,334         28,334        -3.5%    27,565
Outstanding
                                                              
Per Common Share Data:                                         
Basic Earnings              $0.70          $0.77         -9.1%    $0.73
Diluted Earnings            0.70           0.77          -9.1%    0.73
Dividends Paid              0.37           0.37          0.0%     0.37
                                                      %        
                           12/31'12YTD    12/31'11YTD   Change   
Interest & Fee Income:                                         
Loans                       $130,820       $160,673      -18.6%   
Investment Securities:                                         
Available for Sale          19,810         21,594        -8.3%    
Held to Maturity            32,734         25,712        27.3%    
Total Interest & Fee Income 183,364        207,979       -11.8%   
                                                              
Interest Expense:                                              
Transaction Deposits        308            727           -57.6%   
Savings Deposits            930            1,692         -45.1%   
Time Deposits               3,045          4,386         -30.6%   
Short-Term Borrowed Funds   77             216           -64.2%   
Federal Home Loan Bank      483            520           -7.2%    
Advances
Term Repurchase Agreement   99             39           n/m      
Debt Financing and Notes    802            802           0.0%     
Payable
Total Interest Expense      5,744          8,382         -31.5%   
                                                              
Net Interest Income         177,620        199,597       -11.0%   
                                                              
Provision for Loan Losses   11,200         11,200        0.0%     
                                                              
Noninterest Income:                                            
Service Charges            27,691         29,523        -6.2%    
Merchant Processing         9,734          9,436         3.2%     
Services
Debit Card Fees             5,173          4,956         4.4%     
ATM Processing Fees         3,396          3,815         -11.0%   
Trust Fees                  2,078          1,887         10.1%    
Financial Services          689            423           63.0%    
Commissions
Loss on Sale of Securities  (1,287)        --           n/m      
Other                       9,548          10,057        -5.1%    
Total Noninterest Income    57,022         60,097        -5.1%    
                                                              
Noninterest Expense:                                           
Salaries andBenefits       57,388         58,501        -1.9%    
Occupancy                  15,460         16,209        -4.6%    
Outsourced Data Processing  8,531          8,844         -3.5%    
Amortization of             5,368          5,975         -10.2%   
Identifiable Intangibles
Professional Fees           3,217          4,802         -33.0%   
Equipment                   3,775          3,837         -1.6%    
Other Real Estate Owned     1,235          2,458         -49.8%   
Courier Service             3,117          3,342         -6.7%    
Settlements                 --            2,100         n/m      
Other                       18,794         21,610        -13.0%   
Total Noninterest Expense   116,885        127,678       -8.5%    
                                                              
Income Before Income Taxes  106,557        120,816       -11.8%   
Income Tax Provision        25,430         32,928        -22.8%   
Net Income                  $81,127        $87,888       -7.7%    
                                                              
Average Common Shares       27,654         28,628        -3.4%    
Outstanding
Diluted Common Shares       27,699         28,742        -3.6%    
Outstanding
                                                              
Per Common Share Data:                                         
Basic Earnings              $2.93          $3.07         -4.6%    
Diluted Earnings            2.93           3.06          -4.2%    
Dividends Paid              1.48           1.45          2.1%     
                                                              
Footnotes and Abbreviations:
(FTE) Fully Taxable Equivalent
(a) Annualized
(1) Purchased covered loans represent purchased loans on which losses are
shared with the FDIC per a Loss Sharing Agreement.Purchased covered loans
were recorded at estimated fair value at February 6, 2009, the date of
purchase.
(2) Purchased non-covered loans represent purchased loans recorded at
estimated fair value at August 20, 2010, the date of purchase.

CONTACT: Westamerica Bancorporation
         Robert A. Thorson - SVP & Chief Financial Officer
         707-863-6840

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