Westamerica Bank

april 13, 2010

For Immediate Release

San Rafael, CA: Westamerica Bancorporation (NASDAQ: WABC), parent company of Westamerica Bank, today reported net income applicable to common shareholders for the first quarter of 2010 of $24 million and diluted earnings per common share (“EPS”) of $0.80. First quarter 2010 net income represents an annualized 19 percent return on shareholders’ equity.

“Westamerica remains highly profitable. Our net interest margin rose to 5.60 percent, supported by a low 0.35 percent cost of funding our loan and investment portfolios. Operating expenses remained well contained, declining $800 thousand from the prior quarter,” said Chairman, President and CEO David Payne. “Credit quality remained stable compared to the fourth quarter 2009. Westamerica’s regulatory capital ratios are at historically high levels, providing a safe haven for our depositors,” added Payne.

First quarter 2009 EPS was $1.80 including a gain from Westamerica Bank’s acquisition of assets and assumption of liabilities of the former County Bank from the Federal Deposit Insurance Corporation (“FDIC”). First quarter 2009 results also included a refund of federal income taxes related to 2004. The acquisition gain and tax refund combined to increase EPS by $1.00.

Net interest income on a fully taxable equivalent basis was $57.0 million for the first quarter of 2010, compared to $58.9 million for the fourth quarter of 2009 and to $59.4 million for the first quarter of 2009. The decline in net interest income is due to lower levels of interest-earning assets. Weak economic conditions and deleveraging by businesses and individuals have impacted loan volumes. The first quarter 2010 net interest margin on a fully taxable equivalent basis was 5.60 percent, compared to 5.50 percent and 5.35 percent for the fourth and first quarters of 2009, respectively.

The provision for loan losses was $2.8 million for the first quarter of 2010, compared to $3.3 million for the fourth quarter of 2009, and $1.8 million for the first quarter of 2009.  First quarter 2010 net loan losses totaled $3.5 million, or 0.66 percent (annualized) of average loans not covered by FDIC indemnification agreements. Comparable net loan loss rates were 0.88 percent and 0.42 percent, respectively, for the fourth and first quarters of 2009.

Noninterest income for the first quarter of 2010 totaled $15.5 million, compared to $15.7 million in the prior quarter. Noninterest income of $64 million in the first quarter 2009 includes a $49 million acquisition gain.

Noninterest expense for the first quarter of 2010 totaled $32.0 million, compared to $32.8 million in the prior quarter. Personnel costs rose in the first quarter 2010 compared to the prior quarter due merit increases, higher payroll taxes and other employee benefit costs. Offsetting the rise in personnel costs were lower occupancy and equipment expenses, professional fees, and other expenses. Noninterest expense for the first quarter 2009 of $34.1 million includes higher pre-integration expense levels related to the County Bank acquisition. The efficiency ratio (operating expenses divided by net revenues on a fully taxable equivalent basis) was 44 percent in both the first quarter 2010 and fourth quarter 2009.

At March 31, 2010, Westamerica Bancorporation’s tangible common equity-to-asset ratio was 7.9 percent, Westamerica Bancorporation’s total regulatory capital ratio was 15.2 percent, and Westamerica Bank’s total regulatory capital ratio was 15.1 percent.

At March 31, 2010, the Company's assets totaled $4.7 billion and loans outstanding totaled $3.0 billion.

Westamerica Bancorporation, through its wholly owned subsidiary Westamerica Bank, operates commercial banking and trust offices throughout Northern and Central California.

Quarterly Financial Highlights

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 report filed on Form 10-K with the Securities and Exchange Commission, for the year ended December 31, 2009, 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.

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For additional information contact:

Westamerica Bancorporation
Robert A. Thorson, Senior Vice President and Chief Financial Officer, (707) 863-6840
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