SAN RAFAEL, Calif., Oct. 19, 2011 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq:WABC), parent company of Westamerica Bank, today reported net income for the third quarter 2011 of $22.4 million and diluted earnings per common share ("EPS") of $0.79. Third quarter 2011 net income represents an annualized return on average shareholders' equity of 16.4 percent.

"We are pleased to be generating relatively high returns for our shareholders under current economic and operating conditions. With low interest rates and increasing government regulations, Westamerica is focused on managing our operating expenses. Our third quarter 2011 core operating expenses declined $800 thousand from the prior quarter due in part to reduced expenses for managing problem assets. We experienced continuing improvement in our credit quality with nonperforming assets declining 13 percent from June 30, 2011 to September 30, 2011, and the annualized rate of loan losses declining to 0.60 percent during the third quarter 2011," said Chairman, President, and CEO David Payne. "Westamerica's strong and reliable quarterly earnings were used to pay shareholders $10.3 million in dividends, retire $10 million in high-coupon trust-preferred debt, and repurchase and retire 316 thousand shares of common stock. Westamerica's capital levels remain robust with a total regulatory capital ratio of 15.6 percent at September 30, 2011," added Payne.

Net interest income on a fully taxable equivalent basis was $54.7 million for the third quarter 2011 compared to $56.7 million for the third quarter 2010. The change in net interest income is due to a reduction in the net interest margin. Yields on interest-earning assets have declined due to relatively low interest rates prevailing in the market. Economic conditions, deleveraging by businesses and individuals, and competitive pricing conditions have reduced loan volumes, placing greater reliance on lower-yielding investment securities. Rates on interest-bearing deposits and borrowings have declined to offset some of the decline in asset yields. The third quarter 2011 net interest margin on a fully taxable equivalent basis was 5.32 percent, compared to 5.54 percent for the third quarter 2010.

The provision for loan losses was $2.8 million for the third quarter 2011, unchanged from the prior quarter and third quarter 2010. Third quarter 2011 net loan losses totaled $2.9 million, or 0.60 percent (annualized) of average originated loans. The comparable net loan loss rate was 0.83 percent for both the prior quarter and third quarter 2010. At September 30, 2011, the $32.9 million reserve for loan losses represented 182 percent of nonperforming originated loans.

Noninterest income for the third quarter 2011 was $15.2 million compared to $15.3 million for the prior quarter and $15.1 million for the third quarter 2010.

Noninterest expense for the third quarter 2011 totaled $31.4 million, compared to $34.3 million in the second quarter 2011. Second quarter 2011 expenses included a $2.1 million settlement charge. Third quarter 2011 operating expenses for professional fees, foreclosed loan collateral, and personnel declined from second quarter 2011 levels.

Westamerica Bancorporation, through its wholly owned subsidiary Westamerica Bank, operates commercial banking and trust offices throughout Northern and Central California. At September 30, 2011, Westamerica Bancorporation's tangible common equity-to-asset ratio was 8.4 percent, Westamerica Bancorporation's total regulatory capital ratio was 15.6 percent, and Westamerica Bank's total regulatory capital ratio was 15.7 percent. At September 30, 2011, the Company's assets totaled $5.0 billion and loans outstanding totaled $2.6 billion.

Westamerica Bancorporation Web Address: www.westamerica.com

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

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, 2010 filed on Form 10-K and quarterly report for the quarter ended June 30, 2011 filed on Form 10-Q, 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 Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, 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.

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