Page 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
April 18, 2007
--------------
WESTAMERICA BANCORPORATION
--------------------------
(Exact Name of Registrant as Specified in Its Charter)
CALIFORNIA
----------
(State or Other Jurisdiction of Incorporation)
001-9383 94-2156203
-------- ----------
(Commission File Number) (IRS Employer Identification No.)
1108 Fifth Avenue, San Rafael, California 94901
----------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
(707) 863-6000
--------------
(Registrant's Telephone Number, Including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions:
[] Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
[] Soliciting material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)
[] Pre-commencement communications pursuant to Rule 14d-2(b) under
the Exchange Act (17 CFR 240.14d-2(b))
[] Pre-commencement communications pursuant to Rule 13e-4(c) under
the Exchange Act (17 CFR 240.13e-4c))
Page 2
Exhibits
---------
99.1 Press release dated April 17, 2007
Item 2.02: Results of Operations and Financial Condition
----------------------------------------------------------
On April 17, 2007 Westamerica Bancorporation announced their
earnings for the first quarter of 2007. A copy of the press release
is attached as Exhibit 99.1 to this Form 8-K and is incorporated
herein by reference.
Page 3
Signatures
Pursuant to the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
Westamerica Bancorporation
/s/ JOHN "ROBERT" THORSON
-------------------------------------------------
John "Robert" Thorson
Senior Vice President and Chief Financial Officer
April 18, 2007
Page 4
INDEX TO EXHIBITS
-----------------
Sequentially
Exhibit No. Description Number Page
----------- ------------------------- -------------
(99.1) Press release dated 5-16
April 17, 2007
Page 5
FOR IMMEDIATE RELEASE
April 17, 2007
WESTAMERICA BANCORPORATION REPORTS FIRST QUARTER 2007 RESULTS
San Rafael, CA: Westamerica Bancorporation (NASDAQ: WABC), parent company of
Westamerica Bank, today reported quarterly net income for the first quarter of
2007 of $23.6 million or $0.76 diluted earnings per share compared to $26.1
million or $0.81 diluted earnings per share for the first quarter of 2006. First
quarter 2007 results include a gain on company-owned life insurance which
contributed $0.02 to diluted earnings per share. First quarter 2007 return on
average equity was 23.0 percent compared to 24.9 percent for the first quarter
2006.
"First quarter 2007 results remain at high profitability levels. Return on
assets was 2.03 percent in spite of the challenging interest rate environment,
competitive pressures, and seasonal deposit flows," said Chairman, President and
CEO David Payne. "Our low 1.70 percent cost of funds, non-interest income
growth, stable credit quality, and operating efficiencies contributed to these
results," added Payne.
Page 6
Net interest income on a fully taxable equivalent (FTE) basis was $46.9 million
for the first quarter of 2007, compared to $49.0 million for the prior quarter
and to $54.0 million for the first quarter of 2006. The first quarter 2007 net
interest margin on a fully taxable equivalent basis was 4.41 percent, compared
to 4.49 percent for the prior quarter and 4.73 percent for the first quarter of
2006.
The provision for loan losses was $75 thousand for the first quarter of 2007,
compared to $70 thousand for the previous quarter, and $150 thousand for the
first quarter of 2006. Net loan losses totaled $516 thousand or 0.08 percent of
average loans (annualized) for the first quarter of 2007.
Noninterest income for the first quarter of 2007 totaled $15.3 million compared
to $13.6 million for the first quarter 2006. Of the $1.7 million increase,
service charges on deposit accounts increased $445 thousand, debit card fees
increased $67 thousand, merchant credit card processing fees increased $64
thousand, and $822 thousand represents a gain on company-owned life insurance.
Noninterest expense for the first quarter of 2007 totaled $24.7 million, $819
thousand lower than noninterest expense for the first quarter of 2006. The
decrease is primarily due to lower personnel and equipment costs. The first
quarter 2007 efficiency ratio (expenses/revenues) was 39.7 percent compared to
37.7 percent in the first quarter 2006.
Page 7
At March 31, 2007, shareholders' equity was $420 million and the equity-to-asset
ratio was 8.8 percent. First quarter 2007 repurchases of the Company's common
stock totaled approximately 389 thousand shares, net of shares issued.
At March 31, 2007, the Company's assets totaled $4.7 billion and total loans
outstanding totaled $2.5 billion.
Westamerica Bancorporation, through its wholly owned subsidiary Westamerica
Bank, operates 87 branches and two trust offices throughout 21 Northern and
Central California counties.
Westamerica Bancorporation Web Address: www.westamerica.com
For additional information contact:
Westamerica Bancorporation
Robert A. Thorson - SVP & Chief Financial Officer
707-863-6840
Page 8
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 annual and quarterly reports filed with the Securities and
Exchange Commission, including the Company's Form 10-K for the year ended
December 31, 2006, describe some of these factors, including certain credit,
market, operational, liquidity and interest rate 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 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.
#####
Page 9
WESTAMERICA BANCORPORATION Public Information April 17, 2007
FINANCIAL HIGHLIGHTS
March 31, 2007
1. Net Income Summary.
(dollars in thousands except per-share data)
Q1'07 / Q1'07 / 3/31'07YTD /
Q1'07 Q1'06 Q1'06 Q4'06 Q4'06 3/31'07YTD 3/31'06YTD 3/31'06YTD
---------------------------------------------------------------------------------------
1 Net Interest Income $46,914 $53,974 -13.1% $49,029 -4.3% $46,914 $53,974 -13.1%
(Fully Taxable Equivalent)
2 Provision for Credit Losses 75 150 -50.0% 70 7.1% 75 150 -50.0%
3 Noninterest Income:
4 Investment Securities 0 0 n/m 0 n/m 0 0 n/m
(Loss/Impairment) Gains
5 Gains on Sales of 0 0 n/m 0 n/m 0 0 n/m
Property
6 Other 15,277 13,639 12.0% 13,747 11.1% 15,277 13,639 12.0%
----------------------- ------------ -----------------------
7 Total Noninterest Income 15,277 13,639 12.0% 13,747 11.1% 15,277 13,639 12.0%
----------------------- ------------ -----------------------
8 Noninterest Expense 24,664 25,483 -3.2% 24,492 0.7% 24,664 25,483 -3.2%
9 Income Tax Provision (FTE) 13,882 15,863 -12.5% 14,256 -2.6% 13,882 15,863 -12.5%
----------------------- ------------ -----------------------
10 Net Income $23,570 $26,117 -9.8% $23,958 -1.6% $23,570 $26,117 -9.8%
======================= ============ =======================
11 Average Shares Outstanding 30,342 31,688 -4.2% 30,699 -1.2% 30,342 31,688 -4.2%
12 Diluted Average Shares 30,824 32,276 -4.5% 31,204 -1.2% 30,824 32,276 -4.5%
Outstanding
13 Operating Ratios:
14 Basic Earnings Per Share $0.78 $0.82 -5.7% $0.78 -0.5% $0.78 $0.82 -5.7%
15 Diluted Earnings Per Share 0.76 0.81 -5.5% 0.77 -0.4% 0.76 0.81 -5.5%
16 Return On Assets 2.03% 2.10% 1.98% 2.03% 2.10%
17 Return On Equity 23.0% 24.9% 22.8% 23.0% 24.9%
18 Net Interest Margin (FTE) 4.41% 4.73% 4.49% 4.41% 4.73%
19 Efficiency Ratio (FTE) 39.7% 37.7% 39.0% 39.7% 37.7%
20 Dividends Paid Per Share $0.34 $0.32 6.3% $0.34 0.0% $0.34 $0.32 6.3%
21 Dividend Payout Ratio 44% 40% 44% 44% 40%
2. Net Interest Income.
(dollars in thousands)
Q1'07 / Q1'07 / 3/31'07YTD /
Q1'07 Q1'06 Q1'06 Q4'06 Q4'06 3/31'07YTD 3/31'06YTD 3/31'06YTD
---------------------------------------------------------------------------------------
1 Interest and Fee Income (FTE) $65,025 $68,486 -5.1% $66,512 -2.2% $65,025 $68,486 -5.1%
2 Interest Expense 18,111 14,512 24.8% 17,483 3.6% 18,111 14,512 24.8%
----------------------- ------------ -----------------------
3 Net Interest Income (FTE) $46,914 $53,974 -13.1% $49,029 -4.3% $46,914 $53,974 -13.1%
======================= ============ =======================
4 Average Earning Assets $4,287,431 $4,606,178 -6.9%$4,366,676 -1.8%$4,287,431 $4,606,178 -6.9%
5 Average Interest-Bearing 2,961,252 3,205,366 -7.6% 2,975,221 -0.5% 2,961,252 3,205,366 -7.6%
Liabilities
6 Yield on Earning Assets (FTE) 6.11% 6.00% 6.07% 6.11% 6.00%
7 Cost of Funds 1.70% 1.27% 1.58% 1.70% 1.27%
8 Net Interest Margin (FTE) 4.41% 4.73% 4.49% 4.41% 4.73%
9 Interest Expense/Interest- 2.46% 1.82% 2.32% 2.46% 1.82%
Bearing Liabilities
10 Net Interest Spread (FTE) 3.65% 4.18% 3.75% 3.65% 4.18%
Page 10
3. Loans & Other Earning Assets.
(average volume, dollars in thousands)
Q1'07 / Q1'07 / 3/31'07YTD /
Q1'07 Q1'06 Q1'06 Q4'06 Q4'06 3/31'07YTD 3/31'06YTD 3/31'06YTD
---------------------------------------------------------------------------------------
1 Total Assets $4,713,173 $5,054,256 -6.7%$4,793,700 -1.7%$4,713,173 $5,054,256 -6.7%
2 Total Earning Assets 4,287,431 4,606,178 -6.9% 4,366,676 -1.8% 4,287,431 4,606,178 -6.9%
3 Total Loans 2,519,861 2,615,949 -3.7% 2,547,524 -1.1% 2,519,861 2,615,949 -3.7%
4 Commercial Loans 616,277 690,772 -10.8% 637,194 -3.3% 616,277 690,772 -10.8%
5 Commercial Real Estate Loans 900,625 922,838 -2.4% 915,578 -1.6% 900,625 922,838 -2.4%
6 Consumer Loans 1,002,959 1,002,339 0.1% 994,752 0.8% 1,002,959 1,002,339 0.1%
7 Total Investment Securities 1,767,570 1,990,229 -11.2% 1,819,152 -2.8% 1,767,570 1,990,229 -11.2%
8 Available For Sale 612,852 665,948 -8.0% 630,827 -2.8% 612,852 665,948 -8.0%
(Market Value)
9 Held To Maturity 1,154,718 1,324,281 -12.8% 1,188,325 -2.8% 1,154,718 1,324,281 -12.8%
10 HTM Unrealized (Loss) (5,955) (25,025) n/m (9,356) n/m (5,955) (25,025) n/m
at Period-End
11 Loans / Deposits 73.5% 69.1% 71.7% 73.5% 69.1%
4. Deposits & Other Interest-Bearing Liabilities.
(average volume, dollars in thousands)
Q1'07 / Q1'07 / 3/31'07YTD /
Q1'07 Q1'06 Q1'06 Q4'06 Q4'06 3/31'07YTD 3/31'06YTD 3/31'06YTD
---------------------------------------------------------------------------------------
1 Total Deposits $3,427,010 $3,784,436 -9.4%$3,553,379 -3.6%$3,427,010 $3,784,436 -9.4%
2 Noninterest Demand 1,270,522 1,355,501 -6.3% 1,332,213 -4.6% 1,270,522 1,355,501 -6.3%
3 Interest-Bearing Transaction 586,860 651,547 -9.9% 593,236 -1.1% 586,860 651,547 -9.9%
4 Savings 866,192 1,022,087 -15.3% 896,538 -3.4% 866,192 1,022,087 -15.3%
5 Other Time > $100K 484,887 501,299 -3.3% 505,390 -4.1% 484,887 501,299 -3.3%
6 Other Time < $100K 218,549 254,002 -14.0% 226,002 -3.3% 218,549 254,002 -14.0%
7 Total Short-Term Borrowings 767,858 738,307 4.0% 717,114 7.1% 767,858 738,307 4.0%
8 Fed Funds Purchased 596,965 548,494 8.8% 517,913 15.3% 596,965 548,494 8.8%
9 Other Short-Term Funds 170,893 189,813 -10.0% 199,201 -14.2% 170,893 189,813 -10.0%
10 Long-Term Debt 36,905 38,124 -3.2% 36,941 -0.1% 36,905 38,124 -3.2%
11 Shareholders' Equity 414,957 424,832 -2.3% 417,597 -0.6% 414,957 424,832 -2.3%
12 Demand Deposits / 37.1% 35.8% 37.5% 37.1% 35.8%
Total Deposits
13 Transaction & Savings 79.5% 80.0% 79.4% 79.5% 80.0%
Deposits / Total Deposits
Page 11
5. Interest Yields Earned & Rates Paid.
(dollars in thousands)
Q1'07 Q1'06
------------------------------- Q4'06 ----------------------------------
Average Income/ Yield/ Yield/ Average Income/ Yield/
Volume Expense Rate Rate Volume Expense Rate
----------------------------------------------------------------------------
1 Interest & Fees Income Earned
2 Total Earning Assets (FTE) $4,287,431 $65,026 6.11% 6.07%$4,606,178 $68,486 6.00%
3 Total Loans (FTE) 2,519,861 41,398 6.66% 6.61% 2,615,949 42,483 6.52%
4 Commercial Loans (FTE) 616,277 12,080 7.67% 7.69% 690,772 13,153 7.59%
5 Commercial Real Estate 900,625 15,936 7.18% 7.09% 922,838 16,815 7.39%
Loans
6 Consumer Loans 1,002,959 13,382 5.41% 5.41% 1,002,339 12,515 5.06%
7 Total Investment 1,767,570 23,628 5.35% 5.29% 1,990,229 26,003 5.23%
Securities (FTE)
8 Interest Expense Paid
9 Total Earning Assets 4,287,431 18,111 1.70% 1.58% 4,606,178 14,512 1.27%
10 Total Interest-Bearing 2,961,252 18,111 2.46% 2.32% 3,205,366 14,512 1.82%
Liabilities
11 Total Interest-Bearing 2,156,488 9,237 1.74% 1.66% 2,428,935 7,242 1.21%
Deposits
12 Interest-Bearing 586,860 523 0.36% 0.32% 651,547 428 0.27%
Transaction
13 Savings 866,192 1,409 0.66% 0.53% 1,022,087 898 0.36%
14 Other Time < $100K 218,549 1,734 3.22% 3.11% 254,002 1,460 2.33%
15 Other Time > $100K 484,887 5,571 4.66% 4.57% 501,299 4,456 3.60%
16 Total Short-Term Borrowings 767,858 8,296 4.32% 4.16% 738,307 6,672 3.62%
17 Fed Funds Purchased 596,965 7,824 5.24% 5.24% 548,494 6,090 4.44%
18 Other Short-Term Funds 170,893 472 1.12% 1.37% 189,813 582 1.24%
19 Long-Term Debt 36,905 578 6.27% 6.26% 38,124 598 6.27%
20 Net Interest Income and Margin (FTE) $46,914 4.41% 4.49% $53,974 4.73%
6. Noninterest Income.
(dollars in thousands except per share data)
Q1'07 / Q1'07 / 3/31'07YTD /
Q1'07 Q1'06 Q1'06 Q4'06 Q4'06 3/31'07YTD 3/31'06YTD 3/31'06YTD
---------------------------------------------------------------------------------------
1 Service Charges on $7,528 $7,083 6.3% $6,990 7.7% $7,528 $7,083 6.3%
Deposit Accounts
2 Merchant Credit Card Income 2,449 2,385 2.6% 2,652 -7.7% 2,449 2,385 2.6%
3 ATM Fees & Interchange 677 678 -0.1% 676 0.1% 677 678 -0.1%
4 Debit Card Fees 895 828 8.1% 902 -0.7% 895 828 8.1%
5 Financial Services Fees 310 298 4.1% 331 -6.2% 310 298 4.1%
6 Mortgage Banking Income 30 50 -39.9% 44 -32.7% 30 50 -39.9%
7 Trust Fees 337 282 19.4% 311 8.2% 337 282 19.4%
8 Other Income 3,051 2,035 49.9% 1,841 65.8% 3,051 2,035 49.9%
----------------------- ------------ -----------------------
9 Sub-total 15,277 13,639 12.0% 13,747 11.1% 15,277 13,639 12.0%
10 Gains on Sales of 0 0 n/m 0 n/m 0 0 n/m
Real Property
11 Investment Securities 0 0 n/m 0 n/m 0 0 n/m
Gains (Losses)
12 Total Noninterest Income $15,277 $13,639 12.0% $13,747 11.1% $15,277 $13,639 12.0%
======================= ============ =======================
13 Operating Ratios:
14 Total Revenue (FTE) $62,191 $67,613 -8.0% $62,776 -0.9% $62,191 $67,613 -8.0%
15 Noninterest Income / 24.6% 20.2% 21.9% 24.6% 20.2%
Revenue (FTE)
16 Service Charges / 0.89% 0.76% 0.78% 0.89% 0.76%
Deposits (annualized)
17 Total Revenue Per Share $8.31 $8.65 -3.9% $8.11 2.5% $8.31 $8.65 -3.9%
(annualized)
Page 12
7. Noninterest Expense.
(dollars in thousands)
Q1'07 / Q1'07 / 3/31'07YTD /
Q1'07 Q1'06 Q1'06 Q4'06 Q4'06 3/31'07YTD 3/31'06YTD 3/31'06YTD
---------------------------------------------------------------------------------------
1 Salaries & Benefits $12,568 $13,258 -5.2% $12,405 1.3% $12,568 $13,258 -5.2%
2 Occupancy 3,291 3,232 1.8% 3,227 2.0% 3,291 3,232 1.8%
3 Equipment 1,138 1,266 -10.1% 1,174 -3.1% 1,138 1,266 -10.1%
4 Data Processing 1,524 1,534 -0.7% 1,529 -0.3% 1,524 1,534 -0.7%
5 Courier 848 922 -8.0% 891 -4.8% 848 922 -8.0%
6 Postage 410 410 0.0% 431 -4.9% 410 410 0.0%
7 Telephone 360 432 -16.7% 365 -1.4% 360 432 -16.7%
8 Professional Fees 495 457 8.3% 614 -19.4% 495 457 8.3%
9 Stationery & Supplies 315 270 16.7% 314 0.1% 315 270 16.7%
10 Loan Expense 167 195 -14.1% 199 -15.9% 167 195 -14.1%
11 Operational Losses 160 189 -15.2% 320 -50.0% 160 189 -15.2%
12 Amortization of 975 1,040 -6.3% 1,016 -4.0% 975 1,040 -6.3%
Identifiable Intangibles
13 Other Operating 2,413 2,278 5.9% 2,007 20.3% 2,413 2,278 5.9%
----------------------- ------------ -----------------------
14 Total Noninterest Expense $24,664 $25,483 -3.2% $24,492 0.7% $24,664 $25,483 -3.2%
======================= ============ =======================
15 Full Time Equivalent Staff 892 939 -5.0% 891 0.1% 892 939 -5.0%
16 Average Assets / Full Time $5,284 $5,383 -1.8% $5,380 -1.8% $5,284 $5,383 -1.8%
Equivalent Staff
17 Operating Ratios:
18 FTE Revenue / Full Time $283 $292 -3.2% $280 1.2% $283 $292 -3.2%
Equiv. Staff
(annualized)
19 Noninterest Expense / 2.33% 2.24% 2.23% 2.33% 2.24%
Earning Assets
(annualized)
20 Noninterest Expense / 39.7% 37.7% 39.0% 39.7% 37.7%
Revenues
Page 13
8. Provision for Credit Losses.
(dollars in thousands)
Q1'07 / Q1'07 / 3/31'07YTD /
Q1'07 Q1'06 Q1'06 Q4'06 Q4'06 3/31'07YTD 3/31'06YTD 3/31'06YTD
---------------------------------------------------------------------------------------
1 Provision for Credit Losses $75 $150 -50.0% $70 7.1% $75 $150 -50.0%
2 Gross Loan Losses 1,244 1,118 11.3% 848 46.8% 1,244 1,118 11.3%
3 Net Loan Losses 516 231 123.9% 78 562.9% 516 231 123.9%
4 Recoveries / Gross Loan Losses 59% 79% 91% 59% 79%
5 Average Total Loans $2,519,861 $2,615,949 -3.7%$2,547,524 -1.1%$2,519,861 $2,615,949 -3.7%
6 Net Loan Losses / Loans 0.08% 0.04% 0.01% 0.08% 0.04%
(annualized)
7 Provision for Credit Losses / 0.01% 0.02% 0.01% 0.01% 0.02%
Loans (annualized)
8 Provision for Credit Losses / 14.5% 65.0% 89.9% 14.5% 65.0%
Net Loan Losses
9. Credit Quality.
(dollars in thousands)
3/31/07 / 3/31/07 /
3/31/07 3/31/06 3/31/06 12/31/06 12/31/06 9/30/06 6/30/06 12/31/05
---------------------------------------------------------------------------------------
1 Nonperforming Nonaccrual Loans $2,341 $2,993 -21.8% $61 3737.7% $1,162 $1,613 $2,068
2 Performing Nonaccrual Loans 2,459 3,232 -23.9% 4,404 -44.2% 3,889 3,899 4,256
----------------------- ------------ ----------------------------------
3 Total Nonaccrual Loans 4,800 6,225 -22.9% 4,465 7.5% 5,051 5,512 6,324
4 Accruing Loans 90+ Days 82 29 n/m 65 n/m 252 114 162
Past Due ----------------------- ------------ ----------------------------------
5 Total Nonperforming Loans 4,882 6,254 -21.9% 4,530 7.8% 5,303 5,626 6,486
6 Repossessed Collateral 647 0 n/m 647 n/m 656 656 0
7 Total Nonperforming Loans & ----------------------- ------------ ----------------------------------
8 Repossessed Collateral $5,529 $6,254 -11.6% $5,177 6.8% $5,959 $6,282 $6,486
======================= ============ ==================================
9 Classified Loans $18,439 $28,878 -36.1% $20,180 -8.6% $24,111 $25,682 $29,997
======================= ============ ==================================
10 Allowance for Loan Losses $54,889 $55,768 -1.6% $55,330 -0.8% $55,338 $55,684 $55,849
11 Total Loans Outstanding 2,519,898 2,639,968 -4.5% 2,531,734 -0.5% 2,552,929 2,580,612 2,672,221
12 Total Assets 4,748,829 5,054,309 -6.0% 4,769,335 -0.4% 4,844,116 4,905,642 5,157,559
13 Allowance for Loan Losses / 2.18% 2.11% 2.19% 2.17% 2.16% 2.09%
Total Loans
14 Nonperforming Loans / 0.19% 0.24% 0.18% 0.21% 0.22% 0.24%
Total Loans
15 Nonperforming Loans &
16 Repossesed Collateral / 0.12% 0.12% 0.11% 0.12% 0.13% 0.13%
Total Assets
17 Allowance/Nonperforming Loans 1124% 892% 1221% 1044% 990% 861%
18 Allowance for Loan Losses / 298% 193% 274% 230% 217% 186%
Classified Loans
19 Classified Loans /
20 (Equity + Allowance for 3.9% 5.9% 4.2% 5.0% 5.4% 6.1%
Loan Losses)
Page 14
10.Capital.
(dollars in thousands, except per-share data)
3/31/07 / 3/31/07 /
3/31/07 3/31/06 3/31/06 12/31/06 12/31/06 9/30/06 6/30/06 12/31/05
---------------------------------------------------------------------------------------
1 Shareholders' Equity $419,810 $431,128 -2.6% $424,235 -1.0% $428,732 $423,487 $435,064
2 Tier I Regulatory Capital 293,382 303,344 -3.3% 298,576 -1.7% 300,344 300,661 296,746
3 Total Regulatory Capital 333,658 345,786 -3.5% 339,114 -1.6% 341,207 341,788 339,881
4 Total Assets 4,748,829 5,054,309 -6.0% 4,769,335 -0.4% 4,844,116 4,905,642 5,157,559
5 Risk-Adjusted Assets 3,043,445 3,222,355 -5.6% 3,057,054 -0.4% 3,094,942 3,127,641 3,267,226
6 Shareholders' Equity / 8.84% 8.53% 8.90% 8.85% 8.63% 8.44%
Total Assets
7 Shareholders' Equity / 16.66% 16.33% 16.76% 16.79% 16.41% 16.28%
Total Loans
8 Tier I Capital /Total Assets 6.18% 6.00% 6.26% 6.20% 6.13% 5.75%
9 Tier I Capital / 9.64% 9.41% 9.77% 9.70% 9.61% 9.08%
Risk-Adjusted Assets
10 Total Capital / 10.96% 10.73% 11.09% 11.02% 10.93% 10.40%
Risk-Adjusted Assets
11 Shares Outstanding 30,158 31,544 -4.4% 30,547 -1.3% 30,910 31,201 31,882
12 Book Value Per Share ($) $13.92 $13.67 1.8% $13.89 0.2% $13.87 $13.57 $13.65
13 Market Value Per Share ($) 48.17 51.92 -7.2% 50.63 -4.9% 50.51 48.97 53.07
14 Share Repurchase Programs
(shares in thousands)
Q1'07 / Q1'07 /
Q1'07 Q1'06 Q1'06 Q4'06 Q4'06 3/31'07YTD 3/31'06YTD 3/31'06YTD
---------------------------------------------------------------------------------------
15 Total Shares Repurchased / 447 429 4.2% 410 9.0% 447 429 4.2%
Canceled
16 Average Repurchase Price $49.49 $53.62 -7.7% $49.32 0.4% $49.49 $53.62 -7.7%
17 Net Shares Repurchased 389 338 15.0% 363 7.2% 389 338 15.0%
(Issued)
Page 15
11.Period-End Balance Sheets.
(dollars in thousands)
3/31/07 / 3/31/07 /
3/31/07 3/31/06 3/31/06 12/31/06 12/31/06 9/30/06 6/30/06 12/31/05
---------------------------------------------------------------------------------------
1 Assets:
2 Cash and Money Market Assets $208,734 $188,481 10.7% $185,009 12.8% $192,175 $189,204 $209,807
3 Investment Securities 602,220 642,996 -6.3% 615,525 -2.2% 617,736 620,294 662,388
Available For Sale
4 Investment Securities 1,142,382 1,307,848 -12.7% 1,165,092 -1.9% 1,211,589 1,243,936 1,337,216
Held to Maturity
5 Loans, gross 2,519,898 2,639,968 -4.5% 2,531,734 -0.5% 2,552,929 2,580,612 2,672,221
6 Allowance For Loan Losses (54,889) (55,768) -1.6% (55,330) -0.8% (55,338) (55,684) (55,849)
----------------------- ------------ ----------------------------------
7 Loans, net 2,465,009 2,584,200 -4.6% 2,476,404 -0.5% 2,497,591 2,524,928 2,616,372
----------------------- ------------ ----------------------------------
8 Premises and Equipment 29,643 32,535 -8.9% 30,188 -1.8% 30,979 31,785 33,221
9 Identifiable Intangible 21,108 25,130 -16.0% 22,082 -4.4% 23,098 24,114 26,170
Assets
10 Goodwill 121,719 121,719 0.0% 121,719 0.0% 121,719 121,719 121,907
11 Interest Receivable and 158,014 151,400 4.4% 153,316 3.1% 149,229 149,662 150,478
Other Assets ----------------------- ------------ ----------------------------------
12 Total Assets $4,748,829 $5,054,309 -6.0%$4,769,335 -0.4%$4,844,116 $4,905,642 $5,157,559
======================= ============ ==================================
13 Liabilities and Shareholders'
Equity:
14 Deposits:
15 Noninterest Bearing $1,293,920 $1,355,426 -4.5%$1,341,019 -3.5%$1,298,519 $1,330,280 $1,419,313
16 Interest-Bearing 584,026 641,264 -8.9% 588,668 -0.8% 581,705 606,633 658,667
Transaction
17 Savings 851,800 1,004,964 -15.2% 865,268 -1.6% 926,262 951,819 1,022,645
18 Time 714,626 737,532 -3.1% 721,779 -1.0% 744,644 758,315 745,476
----------------------- ------------ ----------------------------------
19 Total Deposits 3,444,372 3,739,186 -7.9% 3,516,734 -2.1% 3,551,131 3,647,047 3,846,101
----------------------- ------------
20 Short-Term Borrowed Funds 776,781 784,639 -1.0% 731,977 6.1% 768,841 746,517 775,173
21 Debt Financing and 36,883 37,030 -0.4% 36,920 -0.1% 36,956 36,993 40,281
Notes Payable
22 Liability For Interest, 70,983 62,326 13.9% 59,469 19.4% 58,456 51,598 60,940
Taxes and Other ----------------------- ------------ ----------------------------------
23 Total Liabilities 4,329,019 4,623,181 -6.4% 4,345,100 -0.4% 4,415,384 4,482,155 4,722,495
----------------------- ------------ ----------------------------------
24 Shareholders' Equity:
25 Paid-In Capital $341,724 $344,941 -0.9% $344,263 -0.7% $346,603 $346,224 $345,458
26 Accumulated Other
27 Comprehensive Income 3,593 (830) n/m 1,850 n/m 1,805 (4,771) 1,882
28 Retained Earnings 74,493 87,017 -14.4% 78,122 -4.6% 80,324 82,034 87,724
----------------------- ------------ ----------------------------------
29 Total Shareholders' Equity 419,810 431,128 -2.6% 424,235 -1.0% 428,732 423,487 435,064
----------------------- ------------ ----------------------------------
30 Total Liabilities and $4,748,829 $5,054,309 -6.0%$4,769,335 -0.4%$4,844,116 $4,905,642 $5,157,559
Shareholders' Equity ======================= ============ ==================================
Page 16
12.Income Statements.
(dollars in thousands, except per-share data)
Q1'07 / Q1'07 /
Q1'07 Q1'06 Q1'06 Q4'06 Q4'06 3/31'07YTD 3/31'06YTD 3/31'06YTD
---------------------------------------------------------------------------------------
1 Interest and Fee Income:
2 Loans $40,167 $41,106 -2.3% $41,197 -2.5% $40,167 $41,106 -2.3%
3 Money Market Assets and 2 1 n/m 2 n/m 2 1 n/m
Funds Sold
4 Investment Securities 7,122 7,574 -6.0% 7,184 -0.9% 7,122 7,574 -6.0%
Available For Sale
5 Investment Securities 12,083 13,786 -12.4% 12,422 -2.7% 12,083 13,786 -12.4%
Held to Maturity ----------------------- ------------ -----------------------
6 Total Interest Income 59,374 62,467 -5.0% 60,805 -2.4% 59,374 62,467 -5.0%
----------------------- ------------ -----------------------
7 Interest Expense:
8 Transaction Deposits 523 428 22.4% 486 7.7% 523 428 22.4%
9 Savings Deposits 1,409 898 56.9% 1,203 17.1% 1,409 898 56.9%
10 Time Deposits 7,305 5,916 23.5% 7,593 -3.8% 7,305 5,916 23.5%
11 Short-Term Borrowed Funds 8,296 6,672 24.3% 7,622 8.8% 8,296 6,672 24.3%
12 Debt Financing and 578 598 -3.3% 578 0.0% 578 598 -3.3%
Notes Payable ----------------------- ------------ -----------------------
13 Total Interest Expense 18,111 14,512 24.8% 17,482 3.6% 18,111 14,512 24.8%
----------------------- ------------ -----------------------
14 Net Interest Income 41,263 47,955 -14.0% 43,323 -4.8% 41,263 47,955 -14.0%
----------------------- ------------ -----------------------
15 Provision for Credit Losses 75 150 -50.0% 70 7.1% 75 150 -50.0%
----------------------- ------------ -----------------------
16 Noninterest Income:
17 Service Charges on 7,528 7,083 6.3% 6,990 7.7% 7,528 7,083 6.3%
Deposit Accounts
18 Merchant Credit Card 2,449 2,385 2.6% 2,652 -7.7% 2,449 2,385 2.6%
19 Financial Services 310 298 4.1% 331 -6.2% 310 298 4.1%
Commissions
20 Mortgage Banking 30 50 -39.9% 44 -32.7% 30 50 -39.9%
21 Trust Fees 337 282 19.4% 311 8.2% 337 282 19.4%
22 Gains on Sales of 0 0 n/m 0 n/m 0 0 n/m
Real Property
23 Securities Gains (Losses) 0 0 n/m 0 n/m 0 0 n/m
24 Other 4,623 3,541 30.6% 3,419 35.2% 4,623 3,541 30.6%
----------------------- ------------ -----------------------
25 Total Noninterest Income 15,277 13,639 12.0% 13,747 11.1% 15,277 13,639 12.0%
----------------------- ------------ -----------------------
26 Noninterest Expense:
27 Salaries and Related 12,568 13,258 -5.2% 12,405 1.3% 12,568 13,258 -5.2%
Benefits
28 Occupancy 3,291 3,232 1.8% 3,227 2.0% 3,291 3,232 1.8%
29 Equipment 1,138 1,266 -10.1% 1,174 -3.1% 1,138 1,266 -10.1%
30 Data Processing 1,524 1,534 -0.7% 1,529 -0.3% 1,524 1,534 -0.7%
31 Professional Fees 495 457 8.3% 614 -19.4% 495 457 8.3%
32 Other 5,648 5,736 -1.5% 5,543 1.9% 5,648 5,736 -1.5%
----------------------- ------------ -----------------------
33 Total Noninterest Expense 24,664 25,483 -3.2% 24,492 0.7% 24,664 25,483 -3.2%
----------------------- ------------ -----------------------
34 Income Before Income Taxes 31,801 35,961 -11.6% 32,508 -2.2% 31,801 35,961 -11.6%
35 Provision for income taxes 8,231 9,844 -16.4% 8,550 -3.7% 8,231 9,844 -16.4%
----------------------- ------------ -----------------------
36 Net Income $23,570 $26,117 -9.8% $23,958 -1.6% $23,570 $26,117 -9.8%
======================= ============ =======================
37 Average Shares Outstanding 30,342 31,688 -4.2% 30,699 -1.2% 30,342 31,688 -4.2%
38 Diluted Average Shares 30,824 32,276 -4.5% 31,204 -1.2% 30,824 32,276 -4.5%
Outstanding
39 Per Share Data:
40 Basic Earnings $0.78 $0.82 -5.7% $0.78 -0.5% $0.78 $0.82 -5.7%
41 Diluted Earnings 0.76 0.81 -5.5% 0.77 -0.4% 0.76 0.81 -5.5%
42 Dividends Paid 0.34 0.32 6.3% 0.34 0.0% 0.34 0.32 6.3%