Westamerica Bancorporation Reports Second Quarter 2014 Earnings

Westamerica Bancorporation Reports Second Quarter 2014 Earnings

SAN RAFAEL, Calif., July 15, 2014 (GLOBE NEWSWIRE) -- Westamerica
Bancorporation (Nasdaq:WABC), parent company of Westamerica Bank, generated
net income for the second quarter 2014 of $15.2 million and diluted earnings
per common share ("EPS") of $0.58. Second quarter 2014 results compare to net
income of $15.3 million and EPS of $0.58 for the prior quarter, and net income
of $17.1 million and EPS of $0.64 for the second quarter 2013.

"Westamerica's credit quality remained sound with nonperforming assets
totaling $30 million at June 30, 2014, essentially unchanged from March 31,
2014. Our net loan losses remained below $1 million for the second consecutive
quarter reflecting the improved quality of our loan portfolio. Our net
interest margin was 3.76 percent in the second quarter, down from 3.83 percent
in the prior quarter. Low market interest rates continued to pressure our net
interest margin, particularly yields on the investment securities portfolio
where we are purchasing shorter-duration, lower-yielding securities to prepare
for rising interest rates. We are also focusing on managing our operating
costs to efficient levels while providing superior customer service," said
Chairman, President and CEO David Payne. "Our second quarter earnings
delivered a relatively high annualized return on common equity of 11.6 percent
for our shareholders, and we paid a $0.38 per share dividend during the
quarter," concluded Payne.

Net interest income on a fully taxable equivalent ("FTE") basis was $38.6
million for the second quarter 2014, compared to $38.9 million for the prior
quarter and $42.6 million for the second quarter 2013. Net interest income
declined as market interest rates on many loan products remain below the
yields earned on older-dated loans and on the overall loan portfolio. The
Company is reducing its exposure to rising interest rates by purchasing
shorter-duration investment securities which carry lower yields than
longer-duration securities. The annualized interest cost of funding the
Company's loans and investment securities was 0.09 percent for the second
quarter 2014, unchanged from the prior quarter, and reduced from 0.12 percent
for the second quarter 2013. The annualized net interest margin on a fully
taxable equivalent basis was 3.76 percent for the second quarter 2014,
compared to 3.83 percent for the prior quarter and 4.12 percent for the second
quarter 2013.

The provision for loan losses was $1.0 million for the second quarter 2014,
unchanged from $1.0 million for the prior quarter, and reduced from $1.8
million for the second quarter 2013. Net loan losses charged against the
allowance for loan losses totaled $711 thousand for the second quarter 2014,
compared to $584 thousand for the prior quarter and $1.2 million for the
second quarter 2013. At June 30, 2014, the allowance for loan losses totaled
$32.4 million; nonperforming originated loans totaled $7.1 million; and
nonperforming purchased loans totaled $14.0 million, net of purchase discounts
of $471 thousand.

Noninterest income for the second quarter 2014 totaled $13.2 million, compared
to $13.0 million for the prior quarter and $14.3 million for the second
quarter 2013. Noninterest income was higher in the second quarter 2013 due to
higher service charges on deposit accounts and higher merchant processing
service fees.

Noninterest expense for the second quarter 2014 totaled $27.0 million,
compared to $26.9 million in the prior quarter and $28.2 million for the
second quarter 2013. Noninterest expense was higher in the second quarter 2013
due to higher professional fees and higher costs related to repossessed loan
collateral ("OREO").

At June 30, 2014, Westamerica Bancorporation's tangible common equity-to-asset
ratio was 8.4 percent, assets totaled $4.9 billion and loans outstanding
totaled $1.8 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, 2013
filed on Form 10-K and quarterly report for the quarter ended March 31, 2014
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.

WESTAMERICA BANCORPORATION                                        
FINANCIAL HIGHLIGHTS                                             
June 30, 2014                                                    
                                                                
1. Net Income Summary.                                           
                                 (in thousands except per-share amounts)
                                                     %           
                                 Q2'14      Q2'13      Change      Q1'14
                                                                
Net Interest and Fee Income (FTE) $38,582    $42,628    -9.5%       $38,864
Provision for Loan Losses         1,000      1,800      -44.4%      1,000
Noninterest Income                13,198     14,284     -7.6%       12,990
Noninterest Expense               26,957     28,192     -4.4%       26,873
Income Before Taxes (FTE)         23,823     26,920     -11.5%      23,981
Income Tax Provision (FTE)        8,666      9,808      -11.6%      8,674
Net Income                        $15,157    $17,112    -11.4%      $15,307
                                                                
Average Common Shares Outstanding 26,175     26,890     -2.7%       26,433
Diluted Average Common Shares     26,238     26,898     -2.5%       26,537
                                                                
Operating Ratios:                                                
Basic Earnings Per Common Share   $0.58      $0.64      -9.4%       $0.58
Diluted Earnings Per Common Share 0.58       0.64       -9.4%       0.58
Return On Assets (a)              1.24%      1.42%                 1.27%
Return On Common Equity (a)       11.6%      12.7%                 11.6%
Net Interest Margin (FTE) (a)     3.76%      4.12%                 3.83%
Efficiency Ratio (FTE)            52.1%      49.5%                 51.8%
                                                                
Dividends Paid Per Common Share   $0.38      $0.37      2.7%        $0.38
Common Dividend Payout Ratio     66%        58%                   66%
                                                                
                                                     %           
                                 6/30'14YTD 6/30'13YTD Change      
                                                                
Net Interest and Fee Income (FTE) $77,446    $86,463    -10.4%      
Provision for Loan Losses         2,000      4,600      -56.5%      
Noninterest Income                26,188     28,562     -8.3%       
Noninterest Expense               53,830     56,869     -5.3%       
Income Before Taxes (FTE)         47,804     53,556     -10.7%      
Income Tax Provision (FTE)        17,340     19,173     -9.6%       
Net Income                        $30,464    $34,383    -11.4%      
                                                                
Average Common Shares Outstanding 26,303     27,017     -2.6%       
Diluted Average Common Shares     26,387     27,027     -2.4%       
                                                                
Operating Ratios:                                                
Basic Earnings Per Common Share   $1.16      $1.27      -8.7%       
Diluted Earnings Per Common Share 1.15       1.27       -9.4%       
Return On Assets (a)              1.25%      1.42%                 
Return On Common Equity (a)       11.6%      12.8%                 
Net Interest Margin (FTE) (a)     3.79%      4.19%                 
Efficiency Ratio (FTE)            51.9%      49.4%                 
                                                                
Dividends Paid Per Common Share   $0.76      $0.74      2.7%        
Common Dividend Payout Ratio     66%        58%                   
                                                                
2. Net Interest Income.                                          
                                 (dollars in thousands)
                                                     %           
                                 Q2'14      Q2'13      Change      Q1'14
                                                                
Interest and Fee Income (FTE)     $39,482    $43,847    -10.0%      $39,762
Interest Expense                  900        1,219      -26.2%      898
Net Interest and Fee Income (FTE) $38,582    $42,628    -9.5%       $38,864
                                                                
Average Earning Assets            $4,114,811 $4,147,096 -0.8%       $4,093,087
Average Interest-                                                
Bearing Liabilities               2,530,030  2,613,978  -3.2%       2,534,251
                                                                
Yield on Earning Assets (FTE) (a) 3.85%      4.24%                 3.92%
Cost of Funds (a)                 0.09%      0.12%                 0.09%
Net Interest Margin (FTE) (a)     3.76%      4.12%                 3.83%
Interest Expense/                                                
Interest-Bearing Liabilities (a)  0.14%      0.19%                 0.14%
Net Interest Spread (FTE) (a)     3.71%      4.05%                 3.78%
                                                                
                                                     %           
                                 6/30'14YTD 6/30'13YTD Change      
                                                                
Interest and Fee Income (FTE)     $79,244    $88,934    -10.9%      
Interest Expense                  1,798      2,471      -27.2%      
Net Interest and Fee Income (FTE) $77,446    $86,463    -10.4%      
                                                                
Average Earning Assets            $4,104,009 $4,141,510 -0.9%       
Average Interest-                                                
Bearing Liabilities               2,532,129  2,639,046  -4.1%       
                                                                
Yield on Earning Assets (FTE) (a) 3.88%      4.31%                 
Cost of Funds (a)                 0.09%      0.12%                 
Net Interest Margin (FTE) (a)     3.79%      4.19%                 
Interest Expense/                                                
Interest-Bearing Liabilities (a)  0.14%      0.19%                 
Net Interest Spread (FTE) (a)     3.74%      4.12%                 
                                                                
3. Loans & Other Earning Assets.                                  
                                 (average volume, dollars in thousands)
                                                     %           
                                 Q2'14      Q2'13      Change      Q1'14
                                                                
Total Assets                      $4,908,467 $4,840,319 1.4%        $4,889,940
Total Earning Assets              4,114,811  4,147,096  -0.8%       4,093,087
Total Loans                       1,802,041  1,994,361  -9.6%       1,822,065
Commercial Loans                  397,549    382,632    3.9%        388,997
Commercial RE Loans              775,687    881,108    -12.0%      788,270
Consumer Loans                    628,805    730,621    -13.9%      644,798
Total Investment Securities       2,312,770  2,152,735  7.4%        2,271,022
Available For Sale (Market)       1,222,987  1,001,151  22.2%       1,147,966
Held To Maturity                  1,089,783  1,151,584  -5.4%       1,123,056
Unrealized Gain (Loss)            4,658      (9,669)    n/m         (6,502)
                                                                
Loans/Deposits                    42.5%      48.3%                 43.3%
                                                                
                                                     %           
                                 6/30'14YTD 6/30'13YTD Change      
                                                                
Total Assets                      $4,899,255 $4,874,212 0.5%        
Total Earning Assets              4,104,009  4,141,510  -0.9%       
Total Loans                       1,811,998  2,035,944  -11.0%      
Commercial Loans                  393,297    393,701    -0.1%       
Commercial RE Loans              781,944    892,908    -12.4%      
Consumer Loans                    636,757    749,335    -15.0%      
Total Investment Securities       2,292,011  2,105,566  8.9%        
Available For Sale (Market)       1,185,683  952,164    24.5%       
Held To Maturity                  1,106,328  1,153,402  -4.1%       
Unrealized Gain (Loss)            4,658      (9,669)    n/m         
                                                                
Loans/Deposits                    42.9%      48.9%                 
                                                                
4. Deposits, Other Interest-Bearing Liabilities &                  
Equity.
                                 (average volume, dollars in thousands)
                                                     %           
                                 Q2'14      Q2'13      Change      Q1'14
                                                                
Total Deposits                    $4,238,769 $4,132,509 2.6%        $4,209,723
Noninterest Demand               1,799,994  1,630,326  10.4%       1,768,464
Interest Bearing Transaction      783,737    753,148    4.1%        781,779
Savings                           1,202,519  1,148,193  4.7%        1,192,651
Time greater than $100K           251,013    369,275    -32.0%      258,202
Time less than $100K              201,506    231,567    -13.0%      208,627
Total Short-Term Borrowings       60,876     61,076     -0.3%       62,472
Federal Home Loan Bank Advances   20,379     25,719     -20.8%      20,520
Term Repurchase Agreement         10,000     10,000    0.0%        10,000
Debt Financing                    --        15,000     n/m         --
Shareholders' Equity              525,288    538,529    -2.5%       533,159
                                                                
Demand Deposits/                                                 
Total Deposits                    42.5%      39.5%                 42.0%
Transaction & Savings                                           
Deposits / Total Deposits         89.3%      85.5%                 88.9%
                                                                
                                                     %           
                                 6/30'14YTD 6/30'13YTD Change      
                                                                
Total Deposits                    $4,224,326 $4,165,685 1.4%        
Noninterest Demand               1,784,316  1,636,801  9.0%        
Interest Bearing Transaction      782,763    759,941    3.0%        
Savings                           1,197,612  1,153,295  3.8%        
Time greater than $100K           254,588    379,838    -33.0%      
Time less than $100K              205,047    235,810    -13.0%      
Total Short-Term Borrowings       61,670     59,414     3.8%        
Federal Home Loan Bank Advances   20,449     25,748     -20.6%      
Term Repurchase Agreement         10,000     10,000    0.0%        
Debt Financing                    --        15,000     n/m         
Shareholders' Equity              529,202    540,192    -2.0%       
                                                                
Demand Deposits/                                                 
Total Deposits                    42.2%      39.3%                 
Transaction & Savings                                           
Deposits / Total Deposits         89.1%      85.2%                 
                                                                
5. Interest Yields Earned & Rates Paid.                           
                                 (dollars in thousands)            
                                 Q2'14                             
                                 Average    Income/    Yield (a) / 
                                 Volume     Expense    Rate        
                                                                
Interest & Fee Income Earned                                     
Total Earning Assets (FTE)        $4,114,811 $39,482    3.85%       
Total Loans (FTE)                 1,802,041  23,256     5.18%       
Commercial Loans (FTE)            397,549    5,576      5.63%       
Commercial RE Loans              775,687    11,889     6.15%       
Consumer Loans                    628,805    5,791      3.69%       
Total Investments (FTE)           2,312,770  16,226     2.80%       
                                                                
Interest Expense Paid                                            
Total Earning Assets             4,114,811  900        0.09%       
Total Interest-Bearing            2,530,030  900        0.14%       
Liabilities
Total Interest-Bearing Deposits   2,438,775  754        0.12%       
Interest-Bearing Transaction      783,737    67         0.03%       
Savings                           1,202,519  238        0.08%       
Time less than $100K              201,506    216        0.43%       
Time greater than $100K           251,013    233        0.37%       
Total Short-Term Borrowings      60,876     21         0.14%       
Federal Home Loan Bank Advances   20,379     101        1.99%       
Term Repurchase Agreement         10,000     24         0.98%       
                                                                
Net Interest Income and                                         
Margin (FTE)                                $38,582    3.76%       
                                                                
                                 Q2'13                             
                                 Average    Income/    Yield (a) / 
                                 Volume     Expense    Rate        
                                                                
Interest & Fee Income Earned                                     
Total Earning Assets (FTE)        $4,147,096 $43,847    4.24%       
Total Loans (FTE)                 1,994,361  26,745     5.38%       
Commercial Loans (FTE)            382,632    5,794      6.07%       
Commercial RE Loans              881,108    13,725     6.25%       
Consumer Loans                    730,621    7,226      3.97%       
Total Investments (FTE)           2,152,735  17,102     3.18%       
                                                                
Interest Expense Paid                                            
Total Earning Assets             4,147,096  1,219      0.12%       
Total Interest-Bearing            2,613,978  1,219      0.19%       
Liabilities
Total Interest-Bearing Deposits   2,502,183  847        0.14%       
Interest-Bearing Transaction      753,148    64         0.03%       
Savings                           1,148,193  228        0.08%       
Time less than $100K              231,567    272        0.47%       
Time greater than $100K           369,275    283        0.31%       
Total Short-Term Borrowings      61,076     26         0.17%       
Federal Home Loan Bank Advances   25,719     120        1.87%       
Term Repurchase Agreement         10,000    25        0.99%       
Debt Financing                    15,000     201        5.35%       
                                                                
Net Interest Income and                                          
Margin (FTE)                                $42,628    4.12%       

                                                              
6. Noninterest Income.                                         
                           (dollars in thousands except per-share amounts)
                                                     %         
                           Q2'14         Q2'13         Change    Q1'14
                                                              
Service Charges on Deposits $6,105        $6,452        -5.4%     $6,010
Merchant Processing         1,820         2,413         -24.6%    1,924
Services
Debit Card Fees             1,534         1,478         3.8%      1,405
Other Service Fees          688           696           -1.1%     661
ATM Processing Fees         634           721           -12.1%    620
Trust Fees                  615           585           5.2%      654
Financial Services          221           284           -22.2%    171
Commissions
Other Income                1,581         1,655         -4.5%     1,545
Total Noninterest Income    $13,198       $14,284       -7.6%     $12,990
                                                              
Total Revenue (FTE)         $51,780       $56,912       -9.0%     $51,854
Noninterest Income/Revenue  25.5%         25.1%                  25.1%
(FTE)
Service Charges/Avg.        0.58%         0.63%                  0.58%
Deposits (a)
Total Revenues (FTE) Per                                       
Avg.
Common Share (a)            $7.93         $8.49         -6.5%     $7.96
                                                              
                                                     %         
                           6/30'14YTD    6/30'13YTD    Change    
                                                              
Service Charges on Deposits $12,115       $12,994       -6.8%     
Merchant Processing         3,744         4,822         -22.4%    
Services
Debit Card Fees             2,939         2,836         3.6%      
Other Service Fees          1,349         1,458         -7.5%     
ATM Processing Fees         1,254         1,426         -12.1%    
Trust Fees                  1,269         1,153         10.1%     
Financial Services          392           464           -15.5%    
Commissions
Other Income                3,126         3,409         -8.3%     
Total Noninterest Income    $26,188       $28,562       -8.3%     
                                                              
Total Revenue (FTE)         $103,634      $115,025      -9.9%     
Noninterest Income/Revenue  25.3%         24.8%                  
(FTE)
Service Charges/Avg.        0.58%         0.63%                  
Deposits (a)
Total Revenues (FTE) Per                                       
Avg.
Common Share (a)            $7.95         $8.59         -7.5%     
                                                              
7. Noninterest Expense.                                        
                           (dollars in thousands)
                                                     %         
                           Q2'14         Q2'13         Change    Q1'14
                                                              
Salaries & Benefits         $13,926       $14,064       -1.0%     $14,126
Occupancy                   3,746         3,638         3.0%      3,727
Outsourced Data Processing  2,115         2,140         -1.2%     2,105
Amortization of                                               
Identifiable Intangibles    1,058         1,165         -9.2%     1,105
Professional Fees           577           745           -22.5%    430
Furniture & Equipment       1,005         1,021         -1.5%     1,005
Other Real Estate Owned     (270)         278           n/m       (350)
Courier Service             665           737           -9.7%     610
Other Operating             4,135         4,404         -6.1%     4,115
Total Noninterest Expense   $26,957       $28,192       -4.4%     $26,873
                                                              
Noninterest Expense/                                           
Avg. Earning Assets (a)     2.63%         2.73%                  2.66%
Noninterest                 52.1%         49.5%                  51.8%
Expense/Revenues (FTE)
                                                              
                                                     %         
                           6/30'14YTD    6/30'13YTD    Change    
                                                              
Salaries & Benefits         $28,052       $28,467       -1.5%     
Occupancy                   7,473         7,524         -0.7%     
Outsourced Data Processing  4,220         4,297         -1.8%     
Amortization of                                               
Identifiable Intangibles    2,163         2,384         -9.3%     
Professional Fees           1,007         1,380         -27.0%    
Furniture & Equipment       2,010         1,901         5.8%      
Other Real Estate Owned     (620)         612           n/m       
Courier Service             1,275         1,478         -13.7%    
Other Operating             8,250         8,826         -6.5%     
Total Noninterest Expense   $53,830       $56,869       -5.3%     
                                                              
Noninterest Expense/                                           
Avg. Earning Assets (a)     2.65%         2.77%                  
Noninterest                 51.9%         49.4%                  
Expense/Revenues (FTE)
                                                              
8. Provision for Loan                                          
Losses.
                           (dollars in thousands)
                                                     %         
                           Q2'14         Q2'13         Change    Q1'14
                                                              
Average Total Loans         $1,802,041    $1,994,361    -9.6%     $1,822,065
                                                              
Allowance for Loan Loss (ALL)                                  
Beginning of Period        $32,109       $30,354       5.8%      $31,693
Provision for Loan Losses  1,000         1,800         -44.4%    1,000
Net ALL Losses              (711)         (1,228)       -42.1%    (584)
ALL End of Period           $32,398       $30,926       4.8%      $32,109
ALL Recoveries/Gross ALL    52%           42%                    56%
Losses
                                                              
Net ALL Losses/Avg. Total   0.16%         0.25%                  0.13%
Loans (a)
                                                              
                                                     %         
                           6/30'14YTD    6/30'13YTD    Change    
                                                              
Average Total Loans         $1,811,998    $2,035,944    -11.0%    
                                                              
Allowance for Loan Loss (ALL)                                  
Beginning of Period        $31,693       $30,234       4.8%      
Provision for Loan Losses  2,000         4,600         -56.5%    
Net ALL Losses              (1,295)       (3,908)       -66.9%    
ALL End of Period           $32,398       $30,926       4.8%      
ALL Recoveries/Gross ALL    54%           34%                    
Losses
                                                              
Net ALL Losses/Avg. Total   0.14%         0.39%                  
Loans (a)
                                                              
9. Credit Quality.                                             
                           (dollars in thousands)
                                                     %         
                           6/30/14       6/30/13       Change    3/31/14
                                                              
Nonperforming Originated                                       
Loans:
Nonperforming Nonaccrual    $6,757        $7,664        -11.8%    $4,784
Performing Nonaccrual       203           1,272         -84.0%    39
Total Nonaccrual Loans      6,960         8,936         -22.1%    4,823
90+ Days Past Due Accruing  183           241           -24.1%    196
Loans
Total                       7,143         9,177         -22.2%    5,019
Repossessed Loan Collateral 5,308         5,414         -2.0%     5,347
Total Nonperforming                                            
Originated Assets           12,451        14,591        -14.7%    10,366
                                                              
Nonperforming Purchased Covered Loans                           
(1,3):
Nonperforming Nonaccrual    --           14,619        n/m       86
Performing Nonaccrual       --           2,204         n/m       --
Total Nonaccrual Loans      --           16,823        n/m       86
90+ Days Past Due Accruing  --           74            n/m       --
Loans
Total                       --           16,897        n/m       86
Repossessed Purchased                                          
Covered
Loan Collateral (1,3)       585           10,480        n/m       585
Total Nonperforming                                            
Purchased
Covered Assets (1,3)        585           27,377        n/m       671
                                                              
Nonperforming Purchased Non-Covered Loans                       
(2,3):
Nonperforming Nonaccrual    12,707        1,890        n/m       11,578
Performing Nonaccrual       895           3,013        n/m       902
Total Nonaccrual Loans      13,602        4,903        n/m       12,480
90+ Days Past Due Accruing  351          --           n/m       209
Loans
Total                       13,953        4,903        n/m       12,689
Repossessed Purchased Non-Covered                              
Loan Collateral (2,3)       2,650        3,543        n/m       6,254
Total Nonperforming                                            
Purchased
Non-Covered Assets (2,3)    16,603        8,446        n/m       18,943
                                                              
Total Nonperforming Assets  $29,639       $50,414       -41.2%    $29,980
                                                              
Total Originated Loans      $1,517,278    $1,553,303    -2.3%     $1,529,502
Outstanding
Total Purchased Covered                                       
Loans Outstanding (1,3)     18,169        324,976       n/m       18,969
Total Purchased                                                
Non-Covered
Loans Outstanding (2,3)     249,161       61,062       n/m       267,848
Total Loans Outstanding    $1,784,608    $1,939,341    -8.0%     $1,816,319
                                                              
Total Assets               $4,931,095    $4,813,908    2.4%      $4,921,042
                                                              
Loans:                                                         
Allowance for Loan Losses   $32,398       $30,926       4.8%      $32,109
Allowance/Loans             1.82%         1.59%                  1.77%
Nonperforming Loans/Total   1.18%         1.60%                  0.98%
Loans
                                                              
Purchased Covered Loans                                        
(1,3):
Fair Value Discount on                                         
Purchased
Covered Loans               $529          $18,514                $643
Discount/Purchased Covered                                     
Loans, gross                2.83%         5.39%                  3.28%
Nonperforming Purchased Covered Loans/                          
Total Purchased Covered     0.00%         5.20%                  0.45%
Loans
                                                              
Purchased Non-Covered Loans                                    
(2,3):
Fair Value Discount on                                         
Purchased
Non-Covered Loans           $11,193       $3,609                 $12,140
Discount/Purchased          4.30%         5.58%                  4.34%
Non-Covered
Loans, gross                                                   
Nonperforming Purchased Non-Covered                             
Loans/
Total Purchased Non-Covered 5.60%         8.03%                  4.74%
Loans
                                                              
10. Capital.                                                   
                           (in thousands, except per-share amounts)
                                                     %         
                           6/30/14       6/30/13       Change    3/31/14
                                                              
Shareholders' Equity        $538,803      $544,622      -1.1%     $540,883
Tier I Regulatory Capital   394,760       405,851       -2.7%     399,886
Total Regulatory Capital    437,514       443,052       -1.2%     442,274
                                                              
Total Assets                4,931,095     4,813,908     2.4%      4,921,042
Risk-Adjusted Assets        2,909,838     2,772,900     4.9%      2,910,773
                                                              
Shareholders' Equity/                                          
Total Assets                10.93%        11.31%                 10.99%
Shareholders' Equity/                                          
Total Loans                 30.19%        28.08%                 29.78%
Tier I Capital/Total Assets 8.01%         8.43%                  8.13%
Tier I Capital/                                                
Risk-Adjusted Assets        13.57%        14.64%                 13.74%
Total Regulatory Capital/                                      
Risk-Adjusted Assets        15.04%        15.98%                 15.19%
Tangible Common Equity      8.36%         8.61%                  8.40%
Ratio
Common Shares Outstanding   26,074        26,769        -2.6%     26,299
Common Equity Per Share     $20.66        $20.34        1.6%      $20.57
Market Value Per Common     $52.28        $45.69        14.4%     $54.08
Share
                                                              
Share Repurchase Programs                                      
                           (shares in thousands)
                                                     %         
                           Q2'14         Q2'13         Change    Q1'14
                                                              
Total Shares Repurchased    271           270           0.5%      437
Average Repurchase Price    $50.33        $44.29        13.6%     $51.93
Net Shares Repurchased      225           249           -9.4%     211
                                                              
                                                     %         
                           6/30'14YTD    6/30'13YTD    Change    
                                                              
Total Shares Repurchased    708           617           14.8%     
Average Repurchase Price    $51.32        $44.39        15.6%     
Net Shares Repurchased      436           444           -1.7%     
                                                              
11. Period-End Balance                                         
Sheets.
                           (unaudited, dollars in thousands)
                                                     %         
                           6/30/14       6/30/13       Change    3/31/14
Assets:                                                        
Cash and Due from Banks     $484,904      $384,276      26.2%     $428,840
                                                              
Investment Securities:                                         
Available For Sale          1,278,242     1,004,888     27.2%     1,240,288
Held to Maturity            1,069,135     1,134,615     -5.8%     1,110,329
                                                              
Loans                       1,784,608     1,939,341     -8.0%     1,816,319
Allowance For Loan Losses   (32,398)      (30,926)      4.8%      (32,109)
Total Loans, net            1,752,210     1,908,415     -8.2%     1,784,210
                                                              
Other Real Estate Owned     8,543         19,437        -56.0%    12,186
Premises and Equipment, net 37,424        38,267        -2.2%     36,675
Identifiable Intangibles,   16,394        20,877        -21.5%    17,452
net
Goodwill                   121,673       121,673       0.0%      121,673
Other Assets                162,570       181,460       -10.4%    169,389
                                                              
Total Assets                $4,931,095    $4,813,908    2.4%      $4,921,042
                                                              
Liabilities and                                                
Shareholders' Equity:
Deposits:                                                      
Noninterest Bearing         $1,814,023    $1,644,151    10.3%     $1,778,034
Interest-Bearing            756,596       725,852       4.2%      771,299
Transaction
Savings                     1,198,353     1,139,110     5.2%      1,207,881
Time                        444,417       592,281       -25.0%    457,569
Total Deposits              4,213,389     4,101,394     2.7%      4,214,783
                                                              
Short-Term Borrowed Funds   68,962        66,640        3.5%      64,382
Federal Home Loan Bank      20,296        25,687        -21.0%    20,437
Advances
Term Repurchase Agreement   10,000        10,000       0.0%      10,000
Debt Financing              --           15,000        n/m       --
Other Liabilities           79,645        50,565        57.5%     70,557
Total Liabilities           4,392,292     4,269,286     2.9%      4,380,159
                                                              
Shareholders' Equity:                                          
Common Equity:                                                 
Paid-In Capital             384,893       374,209       2.9%      386,201
Accumulated Other                                              
Comprehensive Income        12,554        4,524         n/m       8,856
Retained Earnings           141,356       165,889       -14.8%    145,826
Total Shareholders' Equity  538,803       544,622       -1.1%     540,883
                                                              
Total Liabilities and                                         
Shareholders' Equity        $4,931,095    $4,813,908    2.4%      $4,921,042
                                                              
12. Income Statements.                                         
                           (unaudited, in thousands except per-share amounts)
                                                     %         
                           Q2'14         Q2'13         Change    Q1'14
Interest & Fee Income:                                         
Loans                       $22,787       $26,180       -13.0%    $22,901
Investment Securities:                                         
Available for Sale          5,875         5,532         6.2%      5,630
Held to Maturity            6,741         7,557         -10.8%    7,033
Total Interest & Fee Income 35,403        39,269        -9.8%     35,564
                                                              
Interest Expense:                                              
Transaction Deposits        67            64            4.0%      67
Savings Deposits            238           228           4.1%      234
Time Deposits               449           555           -19.2%    453
Short-Term Borrowed Funds   21            26            -18.0%    20
Federal Home Loan Bank      101           120           -15.8%    99
Advances
Term Repurchase Agreement   24            25           -4.5%     25
Debt Financing              --           201           n/m       --
Total Interest Expense      900           1,219         -26.2%    898
                                                              
Net Interest Income         34,503        38,050        -9.3%     34,666
                                                              
Provision for Loan Losses   1,000         1,800         -44.4%    1,000
                                                              
Noninterest Income:                                            
Service Charges            6,105         6,452         -5.4%     6,010
Merchant Processing         1,820         2,413         -24.6%    1,924
Services
Debit Card Fees             1,534         1,478         3.8%      1,405
Other Service Fees          688           696           -1.1%     661
ATM Processing Fees         634           721           -12.1%    620
Trust Fees                  615           585           5.2%      654
Financial Services          221           284           -22.2%    171
Commissions
Other                       1,581         1,655         -4.5%     1,545
Total Noninterest Income    13,198        14,284        -7.6%     12,990
                                                              
Noninterest Expense:                                           
Salaries andBenefits       13,926        14,064        -1.0%     14,126
Occupancy                  3,746         3,638         3.0%      3,727
Outsourced Data Processing  2,115         2,140         -1.2%     2,105
Amortization of             1,058         1,165         -9.2%     1,105
Identifiable Intangibles
Professional Fees           577           745           -22.5%    430
Furniture & Equipment       1,005         1,021         -1.5%     1,005
Other Real Estate Owned     (270)         278           n/m       (350)
Courier Service             665           737           -9.7%     610
Other                       4,135         4,404         -6.1%     4,115
Total Noninterest Expense   26,957        28,192        -4.4%     26,873
                                                              
Income Before Income Taxes  19,744        22,342        -11.6%    19,783
Income Tax Provision        4,587         5,230         -12.3%    4,476
Net Income                  $15,157       $17,112       -11.4%    $15,307
                                                              
Average Common Shares       26,175        26,890        -2.7%     26,433
Outstanding
Diluted Common Shares       26,238        26,898        -2.5%     26,537
Outstanding
                                                              
Per Common Share Data:                                         
Basic Earnings              $0.58         $0.64         -9.4%     $0.58
Diluted Earnings            0.58          0.64          -9.4%     0.58
Dividends Paid              0.38          0.37          2.7%      0.38
                                                              
                                                     %         
                           6/30'14YTD    6/30'13YTD    Change    
Interest & Fee Income:                                         
Loans                       $45,688       $53,579       -14.7%    
Investment Securities:                                         
Available for Sale          11,505        10,868        5.9%      
Held to Maturity            13,774        15,287        -9.9%     
Total Interest & Fee Income 70,967        79,734        -11.0%    
                                                              
Interest Expense:                                              
Transaction Deposits        134           130           2.7%      
Savings Deposits            472           458           3.0%      
Time Deposits               902           1,158         -22.2%    
Short-Term Borrowed Funds   41            37            11.8%     
Federal Home Loan Bank      200           238           -15.9%    
Advances
Term Repurchase Agreement   49            49           0.6%      
Debt Financing              --           401           n/m       
Total Interest Expense      1,798         2,471         -27.2%    
                                                              
Net Interest Income         69,169        77,263        -10.5%    
                                                              
Provision for Loan Losses   2,000         4,600         -56.5%    
                                                              
Noninterest Income:                                            
Service Charges            12,115        12,994        -6.8%     
Merchant Processing         3,744         4,822         -22.4%    
Services
Debit Card Fees             2,939         2,836         3.6%      
Other Service Fees          1,349         1,458         -7.5%     
ATM Processing Fees         1,254         1,426         -12.1%    
Trust Fees                  1,269         1,153         10.1%     
Financial Services          392           464           -15.5%    
Commissions
Other                       3,126         3,409         -8.3%     
Total Noninterest Income    26,188        28,562        -8.3%     
                                                              
Noninterest Expense:                                           
Salaries andBenefits       28,052        28,467        -1.5%     
Occupancy                  7,473         7,524         -0.7%     
Outsourced Data Processing  4,220         4,297         -1.8%     
Amortization of             2,163         2,384         -9.3%     
Identifiable Intangibles
Professional Fees           1,007         1,380         -27.0%    
Furniture & Equipment       2,010         1,901         5.8%      
Other Real Estate Owned     (620)         612           n/m       
Courier Service             1,275         1,478         -13.7%    
Other                       8,250         8,826         -6.5%     
Total Noninterest Expense   53,830        56,869        -5.3%     
                                                              
Income Before Income Taxes  39,527        44,356        -10.9%    
Income Tax Provision        9,063         9,973         -9.1%     
Net Income                  $30,464       $34,383       -11.4%    
                                                              
Average Common Shares       26,303        27,017        -2.6%     
Outstanding
Diluted Common Shares       26,387        27,027        -2.4%     
Outstanding
                                                              
Per Common Share Data:                                         
Basic Earnings              $1.16         $1.27         -8.7%     
Diluted Earnings            1.15          1.27          -9.4%     
Dividends Paid              0.76          0.74          2.7%      

                                                                
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.
(3) The FDIC indemnification of non-single family assets acquired from the
former County Bank expired 2/6/14 and were reclassified into purchased
non-covered loans and repossessed loan collateral.

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

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