10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2012

or

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________.

Commission file number: 001-9383

WESTAMERICA BANCORPORATION

(Exact Name of Registrant as Specified in Its Charter)

CALIFORNIA

(State or Other Jurisdiction of

Incorporation or Organization)

94-2156203

(I.R.S. Employer

Identification No.)

1108 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA 94901

(Address of Principal Executive Offices) (Zip Code)

Registrant's Telephone Number, Including Area Code (707) 863-6000

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes þ   No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes þ   No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of "large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer þ	Accelerated filer o	Non-accelerated filer o	Smaller reporting company o
	(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes o  No þ

Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date:

Title of Class	Shares outstanding as of July 26, 2012
Common Stock, No Par Value	27,564,656

TABLE OF CONTENTS

	Page
Forward Looking Statements	3
PART I - FINANCIAL INFORMATION
Item 1  Financial Statements	4
Notes to Unaudited Consolidated Financial Statements	9
Financial Summary	28
Item 2  Management's Discussion and Analysis of Financial Condition and Results of Operations	29
Item 3  Quantitative and Qualitative Disclosures about Market Risk	48
Item 4  Controls and Procedures	48
PART II - OTHER INFORMATION
Item 1  Legal Proceedings	49
Item 1A  Risk Factors	49
Item 2  Unregistered Sales of Equity Securities and Use of Proceeds	49
Item 3  Defaults upon Senior Securities	50
Item 4  Mine Safety Disclosures	50
Item 5  Other Information	50
Item 6  Exhibits	50
Signatures	51
Exhibit Index	52
Exhibit 31.1 - Certification of Chief Executive Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a)	53
Exhibit 31.2 - Certification of Chief Financial Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a)	54
Exhibit 32.1 - Certification of Chief Executive Officer Required by 18 U.S.C. Section 1350	55
Exhibit 32.2 - Certification of Chief Financial Officer Required by 18 U.S.C. Section 1350	56

- 2 -

FORWARD-LOOKING STATEMENTS

This report on Form 10-Q contains forward-looking statements about Westamerica Bancorporation for which it claims the protection of the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include, but are not limited to: (i) projections of revenues, expenses, income or loss, earnings or loss per share, the payment or nonpayment of dividends, capital structure and other financial items; (ii) statements of plans, objectives and expectations of the Company or its management or board of directors, including those relating to products or services; (iii) statements of future economic performance; and (iv) statements of assumptions underlying such statements.  Words such as "believes", "anticipates", "expects", "intends", "targeted", "projected", "continue", "remain", "will", "should", "may" and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.

These forward-looking statements are based on Management’s current knowledge and belief and include information concerning the Company’s possible or assumed future financial condition and results of operations. A number of factors, some of which are beyond the Company’s ability to predict or control, could cause future results to differ materially from those contemplated. These factors include but are not limited to (1) the length and severity of current and potential future difficulties in the global, national and California economies and the effects of government efforts to address those difficulties; (2) liquidity levels in capital markets; (3) fluctuations in asset prices including, but not limited to stocks, bonds, real estate, and commodities; (4) the effect of acquisitions and integration of acquired businesses; (5) economic uncertainty created by terrorist threats and attacks on the United States, the actions taken in response, and the uncertain effect of these events on the national and regional economies; (6) changes in the interest rate environment; (7) changes in the regulatory environment; (8) competitive pressure in the banking industry; (9) operational risks including data processing system failures or fraud; (10) volatility of interest rate sensitive loans, deposits and investments; (11) asset/liability management risks and liquidity risks; (12) the effect of natural disasters, including earthquakes, fire, flood, drought, and other disasters, on the uninsured value of loan collateral, the financial condition of debtors and issuers of investment securities, the economic conditions affecting the Company’s market place, and commodities and asset values, and (13) changes in the securities markets. The reader is directed to the Company's annual report on Form 10-K for the year ended December 31, 2011, for further discussion of factors which could affect the Company's business and cause actual results to differ materially from those expressed in any forward-looking statement made in this report. The Company undertakes no obligation to update any forward-looking statements in this report.

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PART I - FINANCIAL INFORMATION

Item 1                      Financial Statements

WESTAMERICA BANCORPORATION
CONSOLIDATED BALANCE SHEETS
(unaudited)
	At June 30,			At December 31,
	2012			2011
	(In thousands)
Assets:
Cash and due from banks	$	320,925		$	530,045
Investment securities available for sale		708,717			638,753
Investment securities held to maturity, with fair values of: $1,232,813 at June 30, 2012, $947,493 at December 31, 2011		1,206,646			922,803
Purchased covered loans		463,251			535,278
Purchased non-covered loans		102,390			125,921
Originated loans		1,751,578			1,862,607
Allowance for loan losses		(31,523	)		(32,597	)
Total loans		2,285,696			2,491,209
Non-covered other real estate owned		17,585			26,500
Covered other real estate owned		14,608			19,135
Premises and equipment, net		37,867			36,548
Identifiable intangibles, net		25,888			28,629
Goodwill		121,673			121,673
Other assets		213,525			226,866
Total Assets	$	4,953,130		$	5,042,161
Liabilities:
Deposits:
Noninterest bearing deposits	$	1,573,188		$	1,562,254
Interest bearing deposits:
Transaction		742,633			734,988
Savings		1,136,876			1,148,178
Time		755,802			804,501
Total deposits		4,208,499			4,249,921
Short-term borrowed funds		81,582			115,689
Federal Home Loan Bank advances		25,911			26,023
Term repurchase agreement		10,000			10,000
Debt financing		15,000			15,000
Other liabilities		54,212			66,887
Total Liabilities		4,395,204			4,483,520
Shareholders' Equity:
Common stock (no par value), authorized - 150,000 shares
Issued and outstanding: 27,621 at June 30, 2012, 28,150 at December 31, 2011		372,631			377,775
Deferred compensation		3,101			3,060
Accumulated other comprehensive income		13,030			11,369
Retained earnings		169,164			166,437
Total Shareholders' Equity		557,926			558,641
Total Liabilities and  Shareholders' Equity	$	4,953,130		$	5,042,161

See accompanying notes to unaudited consolidated financial statements.

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WESTAMERICA BANCORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
	For the Three Months					For the Six Months
	Ended June 30,
	2012			2011		2012			2011
	(In thousands, except per share data)
Interest and Fee Income:
Loans	$	33,745		$	41,272	$	69,401		$	82,635
Investment securities available for sale		4,938			5,684		9,726			10,902
Investment securities held to maturity		8,218			6,132		16,072			12,045
Total Interest and Fee Income		46,901			53,088		95,199			105,582
Interest Expense:
Deposits		1,107			1,777		2,294			3,667
Short-term borrowed funds		21			47		48			109
Term repurchase agreement		24			-		49			-
Federal Home Loan Bank advances		119			128		239			279
Debt financing and notes payable		201			201		401			401
Total Interest Expense		1,472			2,153		3,031			4,456
Net Interest Income		45,429			50,935		92,168			101,126
Provision for Loan Losses		2,800			2,800		5,600			5,600
Net Interest Income After Provision For Loan Losses		42,629			48,135		86,568			95,526
Noninterest Income:
Service charges on deposit accounts		7,027			7,577		14,122			15,098
Merchant processing services		2,529			2,391		4,922			4,562
Debit card fees		1,345			1,283		2,508			2,484
ATM processing fees		932			997		1,865			1,932
Trust fees		497			482		986			975
Financial services commissions		194			117		365			146
Loss on sale of securities		(1,287	)		-		(1,287	)		-
Other		2,296			2,445		4,721			4,838
Total Noninterest Income		13,533			15,292		28,202			30,035
Noninterest Expense:
Salaries and related benefits		14,494			14,913		29,540			29,988
Occupancy		3,775			4,050		7,709			8,075
Outsourced data processing services		2,078			2,122		4,161			4,578
Amortization of identifiable intangibles		1,339			1,480		2,741			3,028
Furniture and equipment		1,041			1,038		1,892			1,971
Professional fees		902			1,453		1,669			2,303
Courier service		793			852		1,578			1,695
Deposit insurance assessments		653			740		1,403			1,960
Other real estate owned		3			990		233			1,135
Settlements		-			2,100		-			2,100
Other		4,271			4,571		8,457			8,799
Total Noninterest Expense		29,349			34,309		59,383			65,632
Income Before Income Taxes		26,813			29,118		55,387			59,929
Provision for income taxes		5,849			7,849		13,418			16,278
Net Income	$	20,964		$	21,269	$	41,969		$	43,651
Average Common Shares Outstanding		27,744			28,771		27,897			28,895
Diluted Average Common Shares Outstanding		27,790			28,923		27,951			29,073
Per Common Share Data:
Basic earnings	$	0.76		$	0.74	$	1.50		$	1.51
Diluted earnings		0.75			0.74		1.50			1.50
Dividends paid		0.37			0.36		0.74			0.72

See accompanying notes to unaudited condensed consolidated financial statements.

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WESTAMERICA BANCORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(unaudited)
	For the Three Months						For the Six Months
	Ended June 30,
	2012			2011			2012			2011
	(In thousands)
Net income	$	20,964		$	21,269		$	41,969		$	43,651
Other comprehensive income:
Increase in net unrealized gains on securities available for sale		1,451			9,861			2,835			13,931
Deferred tax expense		(610	)		(4,145	)		(1,192	)		(5,857	)
Increase in net unrealized gains on securities available for sale, net of tax		841			5,716			1,643			8,074
Post-retirement benefit transition obligation amortization		15			15			30			30
Deferred tax expense		(6	)		(6	)		(12	)		(12	)
Post-retirement benefit transition obligation amortization, net of tax		9			9			18			18
Total other comprehensive income		850			5,725			1,661			8,092
Total comprehensive income	$	21,814		$	26,994		$	43,630		$	51,743

See accompanying notes to unaudited consolidated financial statements.

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WESTAMERICA BANCORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(unaudited)
									Accumulated
	Common						Accumulated		Other
	Shares			Common			Deferred		Comprehensive		Retained
	Outstanding			Stock			Compensation		Income		Earnings			Total
	(In thousands)
Balance, December 31, 2010		29,090		$	378,885		$	2,724	$	159	$	163,519		$	545,287
Net income for the period												43,651			43,651
Other comprehensive income										8,092					8,092
Exercise of stock options		74			3,273										3,273
Tax benefit increase upon exercise of stock options					28										28
Restricted stock activity		15			455			336							791
Stock based compensation					720										720
Stock awarded to employees		1			58										58
Purchase and retirement of stock		(640	)		(8,142	)						(23,542	)		(31,684	)
Dividends												(20,876	)		(20,876	)
Balance, June 30, 2011		28,540		$	375,277		$	3,060	$	8,251	$	162,752		$	549,340
Balance, December 31, 2011		28,150		$	377,775		$	3,060	$	11,369	$	166,437		$	558,641
Net income for the period												41,969			41,969
Other comprehensive income										1,661					1,661
Exercise of stock options		25			1,030										1,030
Tax benefit increase upon exercise of stock options					2										2
Restricted stock activity		11			482			41							523
Stock based compensation					805										805
Stock awarded to employees		1			63										63
Purchase and retirement of stock		(566	)		(7,526	)						(18,555	)		(26,081	)
Dividends												(20,687	)		(20,687	)
Balance, June 30, 2012		27,621		$	372,631		$	3,101	$	13,030	$	169,164		$	557,926

See accompanying notes to unaudited consolidated financial statements.

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WESTAMERICA BANCORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
	For the Six Months
	Ended June 30,
	2012			2011
	(In thousands)
Operating Activities:
Net income	$	41,969		$	43,651
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		7,037			6,943
Loan loss provision		5,600			5,600
Net amortization of deferred loan fees		(303	)		(190	)
Decrease (increase) in interest income receivable		1,004			(161	)
(Increase) decrease in other assets		(3,386	)		1,685
(Decrease) increase in income taxes payable		(1,186	)		212
Increase in net deferred tax asset		(6,275	)		(571	)
Decrease in interest expense payable		(129	)		(328	)
Increase in other liabilities		2,160			4,581
Stock option compensation expense		805			720
Tax benefit increase upon exercise of stock options		(2	)		(28	)
Loss on sale of securities available for sale		1,287			-
Gain on sale of other assets		(256	)		(800	)
Net writedown (gain) on sale of premises and equipment		1			(127	)
Originations of mortgage loans for resale		(27	)		(90	)
Net proceeds from sale of mortgage loans originated for resale		28			93
Net gain on sale of foreclosed assets		(2,041	)		(193	)
Writedown of foreclosed assets		1,925			845
Net Cash Provided by Operating Activities		48,211			61,842
Investing Activities:
Net repayments of loans		194,740			146,387
Proceeds from FDIC1 loss-sharing indemnification		20,259			5,265
Purchases of investment securities available for sale		(137,378	)		(152,998	)
Purchases of investment securities held to maturity		(405,281	)		(128,294	)
Proceeds from sale/maturity/calls of securities available for sale		70,249			122,645
Proceeds from maturity/calls of securities held to maturity		106,080			41,749
Net change in FRB2/FHLB3 securities		895			(13,158	)
Proceeds from sale of foreclosed assets		16,632			6,734
Purchases of premises and equipment		(2,637	)		(250	)
Proceeds from sale of premises and equipment		-			169
Net Cash (Used in) Provided by Investing Activities		(136,441	)		28,249
Financing Activities:
Net change in deposits		(41,048	)		(43,848	)
Net change in short-term borrowings and FHLB3 advances		(34,106	)		(15,658	)
Exercise of stock options		1,030			3,273
Tax benefit increase upon exercise of stock options		2			28
Repurchases/retirement of stock		(26,081	)		(31,684	)
Dividends paid		(20,687	)		(20,876	)
Net Cash Used in Financing Activities		(120,890	)		(108,765	)
Net Change In Cash and Due from Banks		(209,120	)		(18,674	)
Cash and Due from Banks at Beginning of Period		530,045			338,793
Cash and Due from Banks at End of Period	$	320,925		$	320,119
Supplemental Cash Flow Disclosures:
Supplemental disclosure of non cash activities:
Loan collateral transferred to other real estate owned	$	4,108		$	14,637
Supplemental disclosure of cash flow activities:
Interest paid for the period		3,602			6,299
Income tax payments for the period		21,631			16,638

See accompanying notes to unaudited condensed consolidated financial statements.

1 Federal Deposit Insurance Corporation ("FDIC")

2 Federal Reserve Bank ("FRB")

3 Federal Home Loan Bank ("FHLB")

- 8 -

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Note 1: Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission. The results of operations reflect interim adjustments, all of which are of a normal recurring nature and, in the opinion of Management, are necessary for a fair presentation of the results for the interim periods presented. The interim results for the three and six months ended June 30, 2012 and 2011 are not necessarily indicative of the results expected for the full year. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes as well as other information included in the Company's Annual Report on Form 10-K for the year ended December 31, 2011.

The Company has evaluated events and transactions subsequent to the balance sheet date. Based on this evaluation, the Company is not aware of any events or transactions that occurred subsequent to the balance sheet date but prior to filing that would require recognition or disclosure in its consolidated financial statements.

Note 2: Accounting Policies

The Company’s accounting policies are discussed in Note 1 to the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011.  Certain amounts in prior periods have been reclassified to conform to the current presentation.

Certain accounting policies underlying the preparation of these financial statements require Management to make estimates and judgments. These estimates and judgments may significantly affect reported amounts of assets and liabilities, revenues and expenses, and disclosures of contingent assets and liabilities. Management exercises judgment to estimate the appropriate level of the allowance for credit losses, the acquisition date fair value of purchased loans, and the evaluation of other than temporary impairment of investment securities, which are discussed in the Company’s accounting policies.

Recently Adopted Accounting Standards

FASB ASU 2011-03, Reconsideration of Effective Control for Repurchase Agreements, was issued April 2011 addressing the accounting for repurchase agreements and other agreements that both entitle and obligate a transferor to repurchase or redeem financial assets before their maturity.  The amendments remove from the assessment of effective control (1) the criterion requiring the transferor to have the ability to repurchase or redeem the financial assets on substantially the agreed terms, even in the event of default by the transferee, and (2) the collateral maintenance implementation guidance related to that criterion.  The Company adopted the provisions of the Update in the first quarter of 2012 with prospective application to new transactions or existing transactions modified on or after January 1, 2012. The adoption of the Update did not have a material effect on the Company’s financial statements at the date of adoption.

 FASB ASU 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs, was issued May 2011 as a result of the FASB and International Accounting Standards Board’s (IASB) goal to develop common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with U.S. generally accepted accounting principles and International Financial Reporting Standards. The Company adopted the provisions of the Update in the first quarter of 2012 with prospective application, resulting in expanded fair value disclosure. The adoption of the Update did not have a material effect on the Company’s financial statements at the date of adoption.

FASB ASU 2011-05, Presentation of Comprehensive Income, was issued June 2011 requiring that all changes in stockholders’ equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements.  This Update also requires that reclassification adjustments for items that are reclassified from other comprehensive income to net income be presented on the face of the financial statements. The Company adopted the provisions of the Update in the first quarter of 2012 with retrospective application, resulting in the addition of a new financial statement titled “Consolidated Statements of Comprehensive Income”.

FASB ASU 2011-12, Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05, was issued December 2011 updating and superseding certain pending paragraphs relating to the presentation on the face of the financial statements the effects of reclassifications out of accumulated other comprehensive income on the components of net income and other comprehensive income.  This Update was effective concurrent with ASU 2011-05, Presentation of Comprehensive Income, and did not have a material effect on the Company’s financial statements at the date of adoption.

- 9 -

FASB ASU 2011-08, Testing for Goodwill Impairment, was issued September 2011 giving an entity the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, an entity determines it is more likely than not that the fair value of a reporting unit is more than its carrying amount, then performing the two-step impairment test is unnecessary. However, if an entity concludes otherwise, then it is required to perform the first step of the two-step impairment test by calculating the fair value of the reporting unit and comparing the fair value with the carrying amount of the reporting unit. If the carrying amount of a reporting unit exceeds its fair value, then the entity is required to perform the second step of the goodwill impairment test to measure the amount of the impairment loss, if any. Under the amendments in this Update, an entity has the option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to performing the first step of the two-step goodwill impairment test. An entity may resume performing the qualitative assessment in any subsequent period. The Company adopted the provisions of the Update in the first quarter of 2012. The adoption of the Update did not have a material effect on the Company’s financial statements at the date of adoption.

Recently Issued Accounting Standards

FASB ASU 2011-11, Disclosures about Offsetting Assets and Liabilities, was issued December 2011 to require an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. An entity is required to apply the amendments for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented.  The Update will not have a material effect on the Company’s financial statements at the date of adoption.

Note 3:  Investment Securities

The amortized cost, unrealized gains and losses accumulated in other comprehensive income, and fair value of investment securities available for sale follows:

	Investment Securities Available for Sale
	At June 30, 2012
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(In thousands)
U.S. Treasury securities	$	3,528	$	45	$	-		$	3,573
Securities of U.S. Government sponsored entities		100,493		407		(1	)		100,899
Residential mortgage-backed securities		72,394		5,046		(2	)		77,438
Commercial mortgage-backed securities		4,306		64		-			4,370
Obligations of States and political subdivisions		223,237		13,234		(279	)		236,192
Residential collateralized mortgage obligations		43,959		1,646		-			45,605
Asset-backed securities		16,964		-		(218	)		16,746
FHLMC and FNMA stock		824		1,871		(4	)		2,691
Corporate securities		217,952		818		(2,078	)		216,692
Other securities		2,236		2,325		(50	)		4,511
Total	$	685,893	$	25,456	$	(2,632	)	$	708,717

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The amortized cost, unrealized gains and losses, and fair value of investment securities held to maturity follows:

	Investment Securities Held to Maturity
	At June 30, 2012
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(In thousands)
Securities of U.S. Government sponsored entities	$	4,287	$	29	$	-		$	4,316
Residential mortgage-backed securities		82,346		1,896		(73	)		84,169
Obligations of States and political subdivisions		667,386		21,826		(882	)		688,330
Residential collateralized mortgage obligations		452,627		3,982		(611	)		455,998
Total	$	1,206,646	$	27,733	$	(1,566	)	$	1,232,813

The amortized cost, unrealized gains and losses accumulated in other comprehensive income, and fair value of investment securities available for sale follows:

	Investment Securities Available for Sale
	At December 31, 2011
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(In thousands)
U.S. Treasury securities	$	3,537	$	59	$	-		$	3,596
Securities of U.S. Government sponsored entities		117,150		375		(53	)		117,472
Residential mortgage-backed securities		84,961		5,457		(10	)		90,408
Commercial mortgage-backed securities		4,506		27		(3	)		4,530
Obligations of States and political subdivisions		234,522		11,839		(268	)		246,093
Residential collateralized mortgage obligations		49,111		2,053		-			51,164
Asset-backed securities		7,566		-		(260	)		7,306
FHLMC and FNMA stock		824		1,027		(4	)		1,847
Corporate securities		114,286		203		(2,290	)		112,199
Other securities		2,302		1,884		(48	)		4,138
Total	$	618,765	$	22,924	$	(2,936	)	$	638,753

The amortized cost, unrealized gains and losses, and fair value of investment securities held to maturity follows:

	Investment Securities Held to Maturity
	At December 31, 2011
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(In thousands)
Residential mortgage-backed securities	$	54,869	$	1,532	$	(77	)	$	56,324
Obligations of States and political subdivisions		625,390		23,581		(496	)		648,475
Residential collateralized mortgage obligations		242,544		2,781		(2,631	)		242,694
Total	$	922,803	$	27,894	$	(3,204	)	$	947,493

- 11 -

The amortized cost and fair value of investment securities by contractual maturity are shown in the following table:

	At June 30, 2012
	Securities Available				Securities Held
	for Sale				to Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
	(In thousands)
Maturity in years:
1 year or less	$	59,556	$	59,810	$	11,269	$	11,344
Over 1 to 5 years		321,842		321,762		161,587		166,300
Over 5 to 10 years		55,864		58,736		269,998		280,908
Over 10 years		124,912		133,794		228,819		234,094
Subtotal		562,174		574,102		671,673		692,646
Mortgage-backed securities and residential collateralized mortgage obligations		120,659		127,413		534,973		540,167
Other securities		3,060		7,202		-		-
Total	$	685,893	$	708,717	$	1,206,646	$	1,232,813

The amortized cost and fair value of investment securities by contractual maturity are shown in the following table:

	At December 31, 2011
	Securities Available				Securities Held
	for Sale				to Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
	(In thousands)
Maturity in years:
1 year or less	$	37,785	$	37,967	$	12,056	$	12,121
Over 1 to 5 years		242,766		241,945		158,438		162,791
Over 5 to 10 years		63,442		65,919		307,504		321,922
Over 10 years		133,068		140,835		147,392		151,641
Subtotal		477,061		486,666		625,390		648,475
Mortgage-backed securities and residential collateralized mortgage obligations		138,578		146,102		297,413		299,018
Other securities		3,126		5,985		-		-
Total	$	618,765	$	638,753	$	922,803	$	947,493

Expected maturities of mortgage-backed securities can differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties. In addition, such factors as prepayments and interest rates may affect the yield on the carrying value of mortgage-backed securities. At June 30, 2012 and December 31, 2011, the Company had no high-risk collateralized mortgage obligations as defined by regulatory guidelines.

- 12 -

An analysis of gross unrealized losses of investment securities available for sale follows:

	Investment Securities Available for Sale
	At June 30, 2012
	Less than 12 months					12 months or longer					Total
			Unrealized					Unrealized					Unrealized
	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
	(In thousands)
Securities of U.S. Government sponsored entities	$	4,997	$	(1	)	$	-	$	-		$	4,997	$	(1	)
Residential mortgage-backed securities		7		-			984		(2	)		991		(2	)
Obligations of States and political subdivisions		3,663		(71	)		11,705		(208	)		15,368		(279	)
Asset-backed securities		10,194		(6	)		6,552		(212	)		16,746		(218	)
FHLMC and FNMA stock		-		-			1		(4	)		1		(4	)
Corporate securities		71,028		(878	)		38,799		(1,200	)		109,827		(2,078	)
Other securities		-		-			1,951		(50	)		1,951		(50	)
Total	$	89,889	$	(956	)	$	59,992	$	(1,676	)	$	149,881	$	(2,632	)

An analysis of gross unrealized losses of investment securities held to maturity follows:

	Investment Securities Held to Maturity
	At June 30, 2012
	Less than 12 months					12 months or longer					Total
			Unrealized					Unrealized					Unrealized
	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
	(In thousands)
Residential mortgage-backed securities	$	21,030	$	(73	)	$	-	$	-		$	21,030	$	(73	)
Obligations of States and political subdivisions		70,381		(853	)		4,641		(29	)		75,022		(882	)
Residential collateralized mortgage obligations		75,288		(396	)		13,929		(215	)		89,217		(611	)
Total	$	166,699	$	(1,322	)	$	18,570	$	(244	)	$	185,269	$	(1,566	)

The unrealized losses on the Company’s investment securities were caused by market conditions for these types of investments.  The Company evaluates securities on a quarterly basis including changes in security ratings issued by ratings agencies, changes in the financial condition of the issuer, and, for mortgage-related and asset-backed securities, delinquency and loss information with respect to the underlying collateral, changes in the levels of subordination for the Company’s particular position within the repayment structure, and remaining credit enhancement as compared to expected credit losses of the security. During the second quarter 2012, the Company transferred one residential collateralized mortgage obligation with a carrying value of $9,077 thousand from the held to maturity portfolio to the available for sale portfolio. The residential collateralized mortgage obligation was subsequently sold due to a decline in the credit worthiness from increased losses on subordinate tranches resulting in proceeds of $7,790 thousand and a realized loss on sale of $1,287 thousand during the quarter. Substantially all securities owned at June 30, 2012 continue to be investment grade rated by one or more major rating agencies.

The Company does not intend to sell any investments and has concluded that it is more likely than not that it will not be required to sell the investments prior to recovery of the amortized cost basis. Therefore, the Company does not consider these investments to be other-than-temporarily impaired as of June 30, 2012.

The fair values of the investment securities could decline in the future if the general economy deteriorates, credit ratings decline, the issuer’s financial condition deteriorates, or the liquidity for securities declines.  As a result, other than temporary impairments may occur in the future.

As of June 30, 2012, $896,271 thousand of investment securities were pledged to secure public deposits and short-term funding needs, compared to $903,807 thousand at December 31, 2011.

- 13 -

An analysis of gross unrealized losses of investment securities available for sale follows:

	Investment Securities Available for Sale
	At December 31, 2011
	Less than 12 months					12 months or longer					Total
			Unrealized					Unrealized					Unrealized
	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
	(In thousands)
Securities of U.S. Government sponsored entities	$	35,051	$	(53	)	$	-	$	-		$	35,051	$	(53	)
Residential mortgage-backed securities		3,443		(10	)		-		-			3,443		(10	)
Commercial mortgage-backed securities		-		-			1,347		(3	)		1,347		(3	)
Obligations of States and political subdivisions		5,803		(61	)		15,015		(207	)		20,818		(268	)
Asset-backed securities		-		-			7,306		(260	)		7,306		(260	)
FHLMC and FNMA stock		-		-			1		(4	)		1		(4	)
Corporate securities		32,048		(1,516	)		24,226		(774	)		56,274		(2,290	)
Other securities		-		-			1,953		(48	)		1,953		(48	)
Total	$	76,345	$	(1,640	)	$	49,848	$	(1,296	)	$	126,193	$	(2,936	)

An analysis of gross unrealized losses of investment securities held to maturity follows:

	Investment Securities Held to Maturity
	At December 31, 2011
	Less than 12 months					12 months or longer					Total
			Unrealized					Unrealized					Unrealized
	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
	(In thousands)
Residential mortgage-backed securities	$	14,032	$	(77	)	$	-	$	-		$	14,032	$	(77	)
Obligations of States and political subdivisions		38,026		(334	)		6,441		(162	)		44,467		(496	)
Residential collateralized mortgage obligations		50,355		(373	)		15,443		(2,258	)		65,798		(2,631	)
Total	$	102,413	$	(784	)	$	21,884	$	(2,420	)	$	124,297	$	(3,204	)

The following table provides information about the amount of interest income from taxable and non-taxable investment securities:

	For the Three Months				For the Six Months
	Ended June 30,
	2012		2011		2012		2011
	(In thousands)
Taxable	$	5,348	$	4,223	$	10,038	$	7,980
Tax-exempt		7,808		7,593		15,760		14,967
Total interest income from investment securities	$	13,156	$	11,816	$	25,798	$	22,947

- 14 -

Note 4: Loans and Allowance for Credit Losses

A summary of the major categories of loans outstanding is shown in the following table.

	At June 30, 2012
													Consumer
				Commercial						Residential			Installment
	Commercial			Real Estate			Construction			Real Estate			& Other			Total
	(In thousands)
Originated loans	$	357,587		$	662,635		$	12,555		$	249,299		$	469,502		$	1,751,578
Purchased covered loans:
Impaired		347			9,642			2,346			-			260			12,595
Non impaired		84,721			304,625			10,294			10,366			71,016			481,022
Purchase discount		(10,210	)		(18,855	)		(464	)		(522	)		(315	)		(30,366	)
Purchased non-covered loans:
Impaired		2,081			16,747			-			-			298			19,126
Non impaired		12,383			51,031			1,794			3,438			22,646			91,292
Purchase discount		(859	)		(4,496	)		(95	)		(474	)		(2,104	)		(8,028	)
Total	$	446,050		$	1,021,329		$	26,430		$	262,107		$	561,303		$	2,317,219

	At December 31, 2011
													Consumer
				Commercial						Residential			Installment
	Commercial			Real Estate			Construction			Real Estate			& Other			Total
	(In thousands)
Originated loans	$	398,446		$	704,655		$	14,580		$	271,111		$	473,815		$	1,862,607
Purchased covered loans:
Impaired		1,296			20,697			2,977			-			262			25,232
Non impaired		117,777			333,428			13,372			13,016			78,735			556,328
Purchase discount		(19,535	)		(22,318	)		(2,473	)		(524	)		(1,432	)		(46,282	)
Purchased non-covered loans:
Impaired		2,262			17,090			-			-			638			19,990
Non impaired		14,129			67,045			6,076			3,598			25,294			116,142
Purchase discount		(1,013	)		(6,101	)		(95	)		(474	)		(2,528	)		(10,211	)
Total	$	513,362		$	1,114,496		$	34,437		$	286,727		$	574,784		$	2,523,806

Changes in the carrying amount of impaired purchased covered loans were as follows:

	For the
	Six Months Ended			For the Year Ended
	June 30, 2012			December 31, 2011
Impaired purchased covered loans	(In thousands)
Carrying amount at the beginning of the period	$	18,591		$	33,556
Reductions during the period		(9,279	)		(14,965	)
Carrying amount at the end of the period	$	9,312		$	18,591

Changes in the carrying amount of impaired purchased non-covered loans were as follows:

	For the
	Six Months Ended			For the Year Ended
	June 30, 2012			December 31, 2011
Impaired purchased non-covered loans	(In thousands)
Carrying amount at the beginning of the period	$	15,572		$	33,725
Reductions during the period		(691	)		(18,153	)
Carrying amount at the end of the period	$	14,881		$	15,572

- 15 -

Changes in the accretable yield for purchased loans were as follows:

	For the			For the
	Six Months Ended			Year Ended
	June 30, 2012			December 31, 2011
Accretable yield for purchased loans	(In thousands)
Balance at the beginning of the period	$	9,990		$	6,089
Reclassification from nonaccretable difference		3,816			16,906
Accretion		(9,804	)		(13,005	)
Disposals and other		-			-
Balance at the end of the period	$	4,002		$	9,990
Accretion	$	(9,804	)	$	(13,005	)
Reduction in FDIC indemnification asset		7,373			9,315
Increase in interest income	$	(2,431	)	$	(3,690	)

The following summarizes activity in the allowance for credit losses:

	Allowance for Credit Losses
	For the Three Months Ended June 30, 2012
													Consumer			Purchased			Purchased
				Commercial						Residential			Installment			Non-covered			Covered
	Commercial			Real Estate			Construction			Real Estate			and Other			Loans			Loans			Unallocated		Total
	(In thousands)
Allowance for loan losses:
Balance at beginning of period	$	6,814		$	11,427		$	2,755		$	645		$	2,825		$	-		$	139		$	7,278	$	31,883
Additions:
Provision		1,984			(1,561	)		(270	)		19			817			25			324			1,462		2,800
Deductions:
Chargeoffs		(2,696	)		-			-			(62	)		(1,211	)		(25	)		(247	)		-		(4,241	)
Recoveries		228			33			196			-			600			-			24			-		1,081
Net loan and lease losses		(2,468	)		33			196			(62	)		(611	)		(25	)		(223	)		-		(3,160	)
Balance at end of period		6,330			9,899			2,681			602			3,031			-			240			8,740		31,523
Liability for off-balance sheet credit exposure		1,644			16			12			-			384			-			-			637		2,693
Total allowance for credit losses	$	7,974		$	9,915		$	2,693		$	602		$	3,415		$	-		$	240		$	9,377	$	34,216

	Allowance for Credit Losses
	For the Six Months Ended June 30, 2012
												Consumer			Purchased			Purchased
				Commercial					Residential			Installment			Non-covered			Covered
	Commercial			Real Estate			Construction		Real Estate			and Other			Loans			Loans			Unallocated			Total
	(In thousands)
Allowance for loan losses:
Balance at beginning of period	$	6,012		$	10,611		$	2,342	$	781		$	3,072		$	-		$	-		$	9,779		$	32,597
Additions:
Provision		3,259			203			141		753			1,444			25			814			(1,039	)		5,600
Deductions:
Chargeoffs		(3,558	)		(948	)		-		(932	)		(2,864	)		(25	)		(612	)		-			(8,939	)
Recoveries		617			33			198		-			1,379			-			38			-			2,265
Net loan and lease losses		(2,941	)		(915	)		198		(932	)		(1,485	)		(25	)		(574	)		-			(6,674	)
Balance at end of period		6,330			9,899			2,681		602			3,031			-			240			8,740			31,523
Liability for off-balance sheet credit exposure		1,644			16			12		-			384			-			-			637			2,693
Total allowance for credit losses	$	7,974		$	9,915		$	2,693	$	602		$	3,415		$	-		$	240		$	9,377		$	34,216

- 16 -

	Allowance for Credit Losses
	For the Three Months Ended June 30, 2011
												Consumer			Purchased
				Commercial					Residential			Installment			Covered
	Commercial			Real Estate			Construction		Real Estate			and Other			Loans		Unallocated			Total
	(In thousands)
Allowance for loan losses:
Balance at beginning of period	$	7,816		$	10,355		$	2,260	$	377		$	4,458		$	-	$	9,055		$	34,321
Additions:
Provision		2,133			(114	)		1,699		308			(262	)		-		(964	)		2,800
Deductions:
Chargeoffs		(3,663	)		-			-		(219	)		(1,339	)		-		-			(5,221	)
Recoveries		443			-			-		-			665			-		-			1,108
Net loan and lease losses		(3,220	)		-			-		(219	)		(674	)		-		-			(4,113	)
Balance at end of period		6,729			10,241			3,959		466			3,522			-		8,091			33,008
Liability for off-balance sheet credit exposure		1,772			33			105		-			147			-		636			2,693
Total allowance for credit losses	$	8,501		$	10,274		$	4,064	$	466		$	3,669		$	-	$	8,727		$	35,701

	Allowance for Credit Losses
	For the Six Months Ended June 30, 2011
												Consumer			Purchased
				Commercial					Residential			Installment			Covered
	Commercial			Real Estate		Construction			Real Estate			and Other			Loans		Unallocated		Total
	(In thousands)
Allowance for loan losses:
Balance at beginning of period	$	8,094		$	9,607	$	3,260		$	617		$	6,372		$	-	$	7,686	$	35,636
Additions:
Provision		2,979			634		2,174			376			(968	)		-		405		5,600
Deductions:
Chargeoffs		(4,987	)		-		(1,475	)		(527	)		(3,475	)		-		-		(10,464	)
Recoveries		643			-		-			-			1,593			-		-		2,236
Net loan and lease losses		(4,344	)		-		(1,475	)		(527	)		(1,882	)		-		-		(8,228	)
Balance at end of period		6,729			10,241		3,959			466			3,522			-		8,091		33,008
Liability for off-balance sheet credit exposure		1,772			33		105			-			147			-		636		2,693
Total allowance for credit losses	$	8,501		$	10,274	$	4,064		$	466		$	3,669		$	-	$	8,727	$	35,701

The recorded investment in loans evaluated for impairment follows:

	Recorded Investment in Loans Evaluated for Impairment
	At June 30, 2012
	Commercial		Commercial Real Estate		Construction		Residential Real Estate		Consumer Installment and Other		Purchased Non- covered Loans		Purchased Covered Loans		Unallocated		Total
	(In thousands)
Allowance for credit losses:
Individually evaluated for impairment	$	1,297	$	-	$	2,124	$	90	$	-	$	-	$	-	$	-	$	3,511
Collectively evaluated for impairment		6,677		9,915		569		512		3,415		-		240		9,377		30,705
Purchased loans with evidence of credit deterioration		-		-		-		-		-		-		-		-		-
Total	$	7,974	$	9,915	$	2,693	$	602	$	3,415	$	-		240	$	9,377	$	34,216
Carrying value of loans:
Individually evaluated for impairment	$	6,846	$	3,389	$	3,068	$	621	$	-	$	5,727	$	6,635	$	-	$	26,286
Collectively evaluated for impairment		350,741		659,246		9,487		248,678		469,502		81,782		447,304		-		2,266,740
Purchased loans with evidence of credit deterioration		-		-		-		-		-		14,881		9,312		-		24,193
Total	$	357,587	$	662,635	$	12,555	$	249,299	$	469,502	$	102,390	$	463,251	$	-	$	2,317,219

	Recorded Investment in Loans Evaluated for Impairment
	At December 31, 2011
	Commercial		Commercial Real Estate		Construction		Residential Real Estate		Consumer Installment and Other		Purchased Non- covered Loans		Purchased Covered Loans		Unallocated		Total
	(In thousands)
Allowance for credit losses:
Individually evaluated for impairment	$	-	$	229	$	1,794	$	-	$	-	$	-	$	-	$	-	$	2,023
Collectively evaluated for impairment		7,672		10,382		582		781		3,270		-		-		10,580		33,267
Purchased loans with evidence of credit deterioration		-		-		-		-		-		-		-		-		-
Total	$	7,672	$	10,611	$	2,376	$	781	$	3,270	$	-	$	-	$	10,580	$	35,290
Carrying value of loans:
Individually evaluated for impairment	$	-	$	1,399	$	3,126	$	-	$	-	$	5,611	$	5,988	$	-	$	16,124
Collectively evaluated for impairment		398,446		703,256		11,454		271,111		473,815		104,738		510,699		-		2,473,519
Purchased loans with evidence of credit deterioration		-		-		-		-		-		15,572		18,591		-		34,163
Total	$	398,446	$	704,655	$	14,580	$	271,111	$	473,815	$	125,921	$	535,278	$	-	$	2,523,806

The Bank’s customers are small businesses, professionals and consumers. Given the scale of these borrowers, corporate credit rating agencies do not evaluate the borrowers’ financial condition. The Bank maintains a Loan Review Department which reports directly to the Board of Directors. The Loan Review Department performs independent evaluations of loans and assigns credit risk grades to evaluated loans using grading standards employed by bank regulatory agencies. Loans judged to carry lower-risk attributes are assigned a “pass” grade, with a minimal likelihood of loss. Loans judged to carry higher-risk attributes are referred to as “classified loans,” and are further disaggregated, with increasing expectations for loss recognition, as “substandard,” “doubtful,” and “loss.” If the Bank becomes aware of deterioration in a borrower’s performance or financial condition between Loan Review examinations, assigned risk grades will be re-evaluated promptly. Credit risk grades assigned by the Loan Review Department are subject to review by the Bank’s regulatory authority during regulatory examinations.

- 17 -

The following summarizes the credit risk profile by internally assigned grade:

	Credit Risk Profile by Internally Assigned Grade
	At June 30, 2012
	Commercial		Commercial Real Estate		Construction		Residential Real Estate		Consumer Installment and Other		Purchased Non- covered Loans			Purchased Covered Loans (1)			Total
	(In thousands)
Grade:
Pass	$	325,257	$	603,075	$	8,529	$	243,968	$	467,643	$	53,700		$	321,037		$	2,023,209
Special mention		11,965		30,130		484		2,559		264		9,769			37,355			92,526
Substandard		17,993		29,430		3,542		2,772		1,055		45,406			133,790			233,988
Doubtful		2,372		-		-		-		13		1,543			1,435			5,363
Loss		-		-		-		-		527		-			-			527
Default risk purchase discount		-		-		-		-		-		(8,028	)		(30,366	)		(38,394	)
Total	$	357,587	$	662,635	$	12,555	$	249,299	$	469,502	$	102,390		$	463,251		$	2,317,219

(1) Credit risk profile reflects internally assigned grade of purchased covered loans without regard to FDIC indemnification.

	Credit Risk Profile by Internally Assigned Grade
	At December 31, 2011
	Commercial		Commercial Real Estate		Construction		Residential Real Estate		Consumer Installment and Other		Purchased Non- covered Loans			Purchased Covered Loans (1)			Total
	(In thousands)
Grade:
Pass	$	360,279	$	646,078	$	10,413	$	264,861	$	471,783	$	63,955		$	372,560		$	2,189,929
Special mention		17,247		29,103		341		1,961		600		15,701			32,365			97,318
Substandard		20,695		29,474		3,826		4,289		1,014		52,994			175,410			287,702
Doubtful		225		-		-		-		66		3,444			1,070			4,805
Loss		-		-		-		-		352		38			155			545
Default risk purchase discount		-		-		-		-		-		(10,211	)		(46,282	)		(56,493	)
Total	$	398,446	$	704,655	$	14,580	$	271,111	$	473,815	$	125,921		$	535,278		$	2,523,806

(1) Credit risk profile reflects internally assigned grade of purchased covered loans without regard to FDIC indemnification.

The following tables summarize loans by delinquency and nonaccrual status:

	Summary of Loans by Delinquency and Nonaccrual Status
	At June 30, 2012
	Current and Accruing		30-89 Days Past Due and Accruing		Past Due 90 days or More and Accruing		Nonaccrual		Total Loans
	(In thousands)
Commercial	$	347,329	$	2,583	$	-	$	7,675	$	357,587
Commercial real estate		646,856		11,385		-		4,394		662,635
Construction		9,400		87		-		3,068		12,555
Residential real estate		247,477		423		-		1,399		249,299
Consumer installment & other		465,145		3,822		525		10		469,502
Total originated loans		1,716,207		18,300		525		16,546		1,751,578
Purchased non-covered loans		80,850		1,668		-		19,872		102,390
Purchased covered loans		434,452		18,623		140		10,036		463,251
Total	$	2,231,509	$	38,591	$	665	$	46,454	$	2,317,219

- 18 -

	Summary of Loans by Delinquency and Nonaccrual Status
	At December 31, 2011
	Current and Accruing		30-89 Days Past Due and Accruing		Past Due 90 days or More and Accruing		Nonaccrual		Total Loans
	(In thousands)
Commercial	$	388,322	$	6,953	$	-	$	3,171	$	398,446
Commercial real estate		679,633		16,967		1,626		6,429		704,655
Construction		10,664		570		-		3,346		14,580
Residential real estate		262,917		5,648		-		2,546		271,111
Consumer installment & other		467,015		6,324		421		55		473,815
Total originated loans		1,808,551		36,462		2,047		15,547		1,862,607
Purchased non-covered loans		101,585		1,095		34		23,207		125,921
Purchased covered loans		501,823		18,902		241		14,312		535,278
Total	$	2,411,959	$	56,459	$	2,322	$	53,066	$	2,523,806

The following is a summary of the effect of nonaccrual loans on interest income:

	For the Three Months						For the Six Months
	Ended June 30,
	2012			2011			2012			2011
	(In thousands)
Interest income that would have been recognized had the loans performed in accordance with their original terms	$	789		$	1,586		$	1,577		$	3,270
Less: Interest income recognized on nonaccrual loans		(494	)		(2,085	)		(1,336	)		(2,876	)
Total (addition) reduction of interest income	$	295		$	(499	)	$	241		$	394

There were no commitments to lend additional funds to borrowers whose loans were on nonaccrual status at June 30, 2012 and December 31, 2011.

The following summarizes impaired loans:

	Impaired Loans
	At June 30, 2012
			Unpaid
	Recorded		Principal		Related
	Investment		Balance		Allowance
	(In thousands)
Impaired loans with no related allowance recorded:
Commercial	$	9,010	$	17,574	$	-
Commercial real estate		30,713		39,297		-
Construction		6,433		10,657		-
Residential real estate		982		984		-
Consumer installment and other		2,851		3,226		-
Impaired loans with an allowance recorded:
Commercial		3,097		3,123		1,297
Construction		3,068		3,183		2,124
Residential real estate		621		621		90
Total:
Commercial	$	12,107	$	20,697	$	1,297
Commercial real estate		30,713		39,297		-
Construction		9,501		13,840		2,124
Residential real estate		1,603		1,605		90
Consumer installment and other		2,851		3,226		-

- 19 -

	Impaired Loans
	At December 31, 2011
			Unpaid
	Recorded		Principal		Related
	Investment		Balance		Allowance
	(In thousands)
Impaired loans with no related allowance recorded:
Commercial	$	5,483	$	11,727	$	-
Commercial real estate		33,095		43,793		-
Construction		4,194		7,209		-
Consumer installment and other		2,990		3,658		-
Impaired loans with an allowance recorded:
Commercial real estate		1,399		1,399		229
Construction		3,126		3,183		1,794
Total:
Commercial	$	5,483	$	11,727	$	-
Commercial real estate		34,494		45,192		229
Construction		7,320		10,392		1,794
Consumer installment and other		2,990		3,658		-

Impaired loans may include troubled debt restructured loans. Impaired loans at June 30, 2012 and December 31, 2011, included $3,068 thousand and $3,126 thousand of restructured loans, respectively, which were on nonaccrual status.

	Impaired Loans
	For the Three Months Ended June 30,								For the Six Months Ended June 30,
	2012				2011				2012				2011
	Average		Recognized		Average		Recognized		Average		Recognized		Average		Recognized
	Recorded		Interest		Recorded		Interest		Recorded		Interest		Recorded		Interest
	Investment		Income		Investment		Income		Investment		Income		Investment		Income
	(In thousands)
Commercial	$	9,888	$	67	$	17,135	$	179	$	9,342	$	117	$	17,373	$	509
Commercial real estate		30,228		349		38,402		414		31,416		727		38,732		729
Construction		7,552		59		25,141		89		7,981		159		24,572		173
Residential real estate		1,112		-		449		-		957		-		449		-
Consumer installment and other		2,825		8		2,374		13		2,873		26		2,191		17
Total	$	51,605	$	483	$	83,501	$	695	$	52,569	$	1,029	$	83,317	$	1,428

The following table provides information on troubled debt restructurings:

	Troubled Debt Restructurings
	At June 30, 2012
							Period-End
							Individual
	Number of		Pre-Modification		Period-End		Impairment
	Contracts		Carrying Value		Carrying Value		Allowance
	(In thousands)
Commercial		2	$	326	$	308	$	-
Construction		1		3,183		3,068		2,124
Commercial real estate		2		1,817		1,799		-
Total		5	$	5,326	$	5,175	$	2,124

	Troubled Debt Restructurings
	At December 31, 2011
							Period-End
							Individual
	Number of		Pre-Modification		Period-End		Impairment
	Contracts		Carrying Value		Carrying Value		Allowance
	(In thousands)
Commercial		2	$	326	$	321	$	-
Construction		1		3,183		3,126		1,794
Total		3	$	3,509	$	3,447	$	1,794

- 20 -

During the three and six months ended June 30, 2012, the Company modified one loan with a carrying value of $429 thousand and two loans totaling $1,817 thousand, respectively, that were considered troubled debt restructurings. During the three and six months ended June 30, 2011, the Company modified one loan with a carrying value of $3,183 thousand that was considered a troubled debt restructuring. The concessions granted in the restructuring completed during the first six months of 2012 and 2011 largely consisted of modification of payment terms extending the maturity date to allow for deferred principal repayment.

During the three and six months ended June 30, 2012, the construction loan totaling $3,068 thousand defaulted. During the three and six months ended June 30, 2011, no troubled debt restructurings were in default.

The Company pledges loans to secure borrowings from the Federal Home Loan Bank (FHLB). At June 30, 2012, loans pledged to secure borrowing totaled $52,233 thousand compared with $69,145 thousand at December 31, 2011. The FHLB does not have the right to sell or repledge such loans.

There were no loans held for sale at June 30, 2012 and December 31, 2011.

Note 5: Concentration of Credit Risk

The Company’s business activity is with customers in Northern and Central California. The loan portfolio is well diversified within the Company’s geographic market, although the Company has significant credit arrangements that are secured by real estate collateral. In addition to real estate loans outstanding as disclosed in Note 4, the Company had loan commitments and standby letters of credit related to real estate loans of $73,497 thousand and $77,988 thousand at June 30, 2012 and December 31, 2011, respectively. The Company requires collateral on all real estate loans with loan-to-value ratios generally no greater than 75% on commercial real estate loans and no greater than 80% on residential real estate loans at origination.

Note 6: Goodwill and Identifiable Intangible Assets

The Company has recorded goodwill and other identifiable intangibles associated with purchase business combinations. Goodwill is not amortized, but is periodically evaluated for impairment. The Company did not recognize impairment during the six months ended June 30, 2012 and 2011.

The carrying values of goodwill were (in thousands):

June 30, 2012	$	121,673
December 31, 2011	$	121,673

Identifiable intangibles are amortized to their estimated residual values over their expected useful lives. Such lives and residual values are also periodically reassessed to determine if any amortization period adjustments are indicated. During the six months ended June 30, 2012 and 2011, no such adjustments were recorded.

The gross carrying amount of identifiable intangible assets and accumulated amortization was:

	At June 30,					At December 31,
	2012					2011
	(In thousands)
	Gross					Gross
	Carrying		Accumulated			Carrying		Accumulated
	Amount		Amortization			Amount		Amortization
Core Deposit Intangibles	$	56,808	$	(32,551	)	$	56,808	$	(30,070	)
Merchant Draft Processing Intangible		10,300		(8,669	)		10,300		(8,409	)
Total Identifiable Intangible Assets	$	67,108	$	(41,220	)	$	67,108	$	(38,479	)

- 21 -

As of June 30, 2012, the current year and estimated future amortization expense for identifiable intangible assets was:

	At June 30, 2012
			Merchant
	Core		Draft
	Deposit		Processing
	Intangibles		Intangible		Total
	(In thousands)
For the six months ended June 30, 2012 (actual)	$	2,481	$	260	$	2,741
Estimate for year ended December 31, 2012		4,868		500		5,368
2013		4,304		400		4,704
2014		3,946		324		4,270
2015		3,594		262		3,856
2016		3,292		212		3,504
2017		2,853		164		3,017

Note 7: Commitments and Contingent Liabilities

Loan commitments are agreements to lend to a customer provided there is no violation of any condition established in the agreement. Commitments generally have fixed expiration dates or other termination clauses. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future funding requirements. Loan commitments are subject to the Company’s normal credit policies and collateral requirements. Unfunded loan commitments were $329,779 thousand and $348,621 thousand at June 30, 2012 and December 31, 2011, respectively. Standby letters of credit commit the Company to make payments on behalf of customers when certain specified future events occur. Standby letters of credit are primarily issued to support customers’ short-term financing requirements and must meet the Company’s normal credit policies and collateral requirements. Standby letters of credit outstanding totaled $26,377 thousand and $27,221 thousand at June 30, 2012 and December 31, 2011, respectively. The Company also had commitments for commercial and similar letters of credit of $454 thousand and $454 thousand at June 30, 2012 and December 31, 2011, respectively.

Due to the nature of its business, the Company is subject to various threatened or filed legal cases. Based on the advice of legal counsel, the Company does not expect such cases will have a material, adverse effect on its financial position or results of operations. Legal costs related to covered assets are eighty percent indemnified under loss-sharing agreements with the FDIC if certain conditions are met.

Note 8:  Fair Value Measurements

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures.  Available for sale investment securities are recorded at fair value on a recurring basis.  Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as certain loans held for investment and other assets.  These nonrecurring fair value adjustments typically involve the lower-of-cost-or-fair value accounting of individual assets.

In accordance with the Fair Value Measurement and Disclosure topic of the Codification, the Company bases its fair values on the price that would be received to sell an asset or paid to transfer a liability in the principal market or most advantageous market for an asset or liability in an orderly transaction between market participants on the measurement date under current market conditions.  A fair value measurement reflects all of the assumptions that market participants would use in pricing the asset or liability, including assumptions about the risk inherent in a particular valuation technique, the effect of a restriction on the sale or use of an asset, and the risk of nonperformance.

The Company groups its assets and liabilities measured at fair value into a three-level hierarchy, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. When the valuation assumptions used to measure the fair value of the asset or liability are categorized within different levels of the fair value hierarchy, the asset or liability is categorized in its entirety within the lowest level of the hierarchy. These levels are:

- 22 -

Level 1 – Valuation is based upon quoted prices for identical instruments traded in active exchange markets, such as the New York Stock Exchange.  Level 1 includes U.S. Treasury, equity securities and federal agency securities, which are traded by dealers or brokers in active markets.  Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities.

Level 2 – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 2 includes mortgage-backed securities, corporate securities, asset-backed securities, municipal bonds and residential collateralized mortgage obligations as well as other real estate owned and impaired loans collateralized by real property where the fair value is generally based upon independent market prices or appraised values of the collateral.

Level 3 – Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect the Company’s estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. Level 3 includes those impaired loans collateralized by business assets where the expected cash flow has been used in determining the fair value.

When the Company changes its valuation assumptions for measuring financial assets and financial liabilities at fair value, either due to changes in current market conditions or other factors, it may need to transfer those assets or liabilities to another level in the hierarchy based on the new assumptions used. The Company recognizes these transfers at the end of the reporting period that the transfers occur. For the six months ended June 30, 2012 and 2011, there were no transfers in or out of levels 1, 2 or 3.

Assets Recorded at Fair Value on a Recurring Basis

The table below presents assets measured at fair value on a recurring basis.

	At June 30, 2012
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2 )		Significant Unobservable Inputs (Level 3 )
	(In thousands)
U.S. Treasury securities	$	3,573	$	3,573	$	-	$	-
Securities of U.S. Government sponsored entities		100,899		100,899		-		-
Municipal bonds:
Federally Tax-exempt - California		80,105		-		80,105		-
Federally Tax-exempt - 26 other states		149,347		-		149,347		-
Taxable - California		1,319		-		1,319		-
Taxable - 1 other state		5,421		-		5,421		-
Residential mortgage-backed securities ("MBS"):
Guaranteed by GNMA		33,848		-		33,848		-
Issued by FNMA and FHLMC		43,590		-		43,590		-
Residential collateralized mortgage obligations:
Issued or guaranteed by FNMA, FHLMC, or GNMA		41,609		-		41,609		-
All other		3,996		-		3,996		-
Commercial mortgage-backed securities		4,370		-		4,370		-
Asset-backed securities		16,746		-		16,746		-
FHLMC and FNMA stock		2,691		2,691		-		-
Corporate securities		216,692		-		216,692		-
Other securities		4,511		2,560		1,951		-
Total investment securities available for sale	$	708,717	$	109,723	$	598,994	$	-

- 23 -

	At December 31, 2011
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2 )		Significant Unobservable Inputs (Level 3 )
	(In thousands)
U.S. Treasury securities	$	3,596	$	3,596	$	-	$	-
Securities of U.S. Government sponsored entities		117,472		117,472		-		-
Municipal bonds:
Federally Tax-exempt - California		80,307		-		80,307		-
Federally Tax-exempt - 27 other states		159,031		-		159,031		-
Taxable - California		1,345		-		1,345		-
Taxable - 1 other state		5,410		-		5,410		-
Residential mortgage-backed securities ("MBS"):
Guaranteed by GNMA		37,112		-		37,112		-
Issued by FNMA and FHLMC		53,296		-		53,296		-
Residential collateralized mortgage obligations:
Issued or guaranteed by FNMA, FHLMC, or GNMA		46,130		-		46,130		-
All other		5,034		-		5,034		-
Commercial mortgage-backed securities		4,530		-		4,530		-
Asset-backed securities		7,306		-		7,306		-
FHLMC and FNMA stock		1,847		1,847		-		-
Corporate securities		112,199		-		112,199		-
Other securities		4,138		2,186		1,952		-
Total investment securities available for sale	$	638,753	$	125,101	$	513,652	$	-

Assets Recorded at Fair Value on a Nonrecurring Basis

The Company may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from application of lower-of-cost-or-market accounting of individual assets. For assets measured at fair value on a nonrecurring basis that were still held in the balance sheet at June 30, 2012 and December 31, 2011, the following table provides the level of valuation assumptions used to determine each adjustment and the carrying value of the related assets at period end.

	At June 30, 2012
	Fair Value		Level 1		Level 2		Level 3		Total Losses
	(In thousands)
Non-covered other real estate owned (1)	$	6,244	$	-	$	6,244	$	-	$	(1,081	)
Covered other real estate owned (2)		9,236		-		9,236		-		(252	)
Originated impaired loans (3)		5,825		-		4,625		1,200		(2,214	)
Purchased covered impaired loans (4)		3,304		-		3,304		-		(191	)
Total assets measured at fair value on a nonrecurring basis	$	24,609	$	-	$	23,409	$	1,200	$	(3,738	)

	At December 31, 2011
	Fair Value		Level 1		Level 2		Level 3		Total Losses
	(In thousands)
Non-covered other real estate owned (1)	$	6,350	$	-	$	6,350	$	-	$	(1,000	)
Covered other real estate owned (2)		10,695		-		10,695		-		(578	)
Originated impaired loans (3)		2,502		-		2,502		-		-
Total assets measured at fair value on a nonrecurring basis	$	19,547	$	-	$	19,547	$	-	$	(1,578	)

(1) Represents the fair value of foreclosed real estate owned that was measured at fair value subsequent to its initial classification as foreclosed assets.

(2) Represents the fair value of foreclosed real estate owned that is covered by the Indemnification Agreement with the FDIC where the real estate was written down subsequent to its initial classification as foreclosed assets. Total losses are reduced by the 80% indemnified loss percentage.

- 24 -

(3) Represents carrying value of loans for which adjustments are predominantly based on the appraised value of the collateral and loans considered impaired under FASB ASC 310-10-35, Subsequent Measurement of Receivables, where a specific reserve has been established or a chargeoff has been recorded.

(4) Represents the carrying value of loans covered by the Indemnification Agreement with the FDIC for which adjustments are predominantly based on the appraised value of the collateral and loans considered impaired under FASB ASC 310-10-35, Subsequent Measurement of Receivables, where a specific reserve has been established or a chargeoff has been recorded. Total losses are reduced by the 80% indemnified loss percentage.

Disclosures about Fair Value of Financial Instruments

The following section describes the valuation methodologies used by the Company for estimating fair value of financial instruments not recorded at fair value in the balance sheet.

Cash and Due from Banks  The carrying amount of cash and amounts due from banks approximate fair value due to the relatively short period of time between their origination and their expected realization.

Investment Securities Held to Maturity  The fair values of investment securities were estimated using quoted prices as described above for Level 1 and Level 2 valuation.

Loans  Loans were separated into two groups for valuation. Variable rate loans, except for those described below, which reprice frequently with changes in market rates were valued using historical cost. Fixed rate loans and variable rate loans that have reached their minimum contractual interest rates were valued by discounting the future cash flows expected to be received from the loans using current interest rates charged on loans with similar characteristics. Additionally, the allowance for loan losses of $31,523 thousand at June 30, 2012 and $32,597 thousand at December 31, 2011 and the fair value discount due to credit default risk associated with purchased covered and purchased non-covered loans of $30,366 thousand and $8,028 thousand, respectively at June 30, 2012 and purchased covered and purchased non-covered loans of $46,282 thousand and $10,211 thousand, respectively at December 31, 2011 were applied against the estimated fair values to recognize estimated future defaults of contractual cash flows. The Company does not consider these values to be a liquidation price for the loans.

FDIC Receivable  The fair value of the FDIC receivable recorded in Other Assets was estimated by discounting estimated future cash flows using current market rates for financial instruments with similar characteristics.

Deposit Liabilities  The carrying amount of checking accounts, savings accounts and money market accounts approximates fair value due to the relatively short period of time between their origination and their expected realization.  The fair values of time deposits were estimated by discounting estimated future cash flows related to these financial instruments using current market rates for financial instruments with similar characteristics.

Short-Term Borrowed Funds  The carrying amount of securities sold under agreement to repurchase and other short-term borrowed funds approximate fair value due to the relatively short period of time between their origination and their expected realization.

Federal Home Loan Bank Advances  The fair values of FHLB advances were estimated by using redemption amounts quoted by the Federal Home Loan Bank of San Francisco.

Term Repurchase Agreement  The fair value of the term repurchase agreement was estimated by using interpolated yields for financial instruments with similar characteristics.

Debt Financing  The fair value of debt financing was estimated by using interpolated yields for financial instruments with similar characteristics.

The table below is a summary of fair value estimates for financial instruments and the level of the fair value hierarchy within which the fair value measurements are categorized, excluding financial instruments recorded at fair value on a recurring basis. The values assigned do not necessarily represent amounts which ultimately may be realized. In addition, these values do not give effect to discounts to fair value which may occur when financial instruments are sold in larger quantities.  The carrying amounts in the following table are recorded in the balance sheet under the indicated captions.

The Company has not included assets and liabilities that are not financial instruments, such as goodwill, long-term relationships with deposit, merchant processing and trust customers, other purchased intangibles, premises and equipment, deferred taxes and other assets and liabilities. The total estimated fair values do not represent, and should not be construed to represent, the underlying value of the Company.

- 25 -

	At June 30, 2012
	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2 )		Significant Unobservable Inputs (Level 3 )
Financial Assets	(In thousands)
Cash and due from banks	$	320,925	$	320,925	$	320,925	$	-	$	-
Investment securities held to maturity:
Securities of U.S. Government sponsored entities		4,287		4,316		4,316		-		-
Municipal bonds:
Federally Tax-exempt - California		97,154		100,805		-		100,805		-
Federally Tax-exempt - 41 other states		552,235		569,409		-		569,409		-
Taxable - California		7,855		7,892		-		7,892		-
Taxable - 4 other states		10,142		10,224		-		10,224		-
Residential mortgage-backed securities ("MBS"):
Guaranteed by GNMA		15,614		15,969		-		15,969		-
Issued by FNMA and FHLMC		66,732		68,200		-		68,200		-
Residential collateralized mortgage obligations:
Issued or guaranteed by FNMA, FHLMC, or GNMA		439,404		442,801		-		442,801		-
All other		13,223		13,197		-		13,197		-
Total investment securities held to maturity		1,206,646		1,232,813		4,316		1,228,497		-
Loans		2,285,696		2,307,635		-		-		2,307,635
Other assets - FDIC receivable		20,885		20,861		-		-		20,861
Financial Liabilities
Deposits:
Noninterest bearing	$	1,573,188	$	1,573,188	$	1,573,188	$	-	$	-
Transaction		742,633		742,633		742,633		-		-
Savings		1,136,876		1,136,876		1,136,876		-		-
Time		755,802		758,350		-		-		758,350
Total Deposits		4,208,499		4,211,047		3,452,697		-		758,350
Short-term borrowed funds		81,582		81,582		81,582		-		-
Federal Home Loan Bank advances		25,911		26,364		26,364		-
Term repurchase agreement		10,000		10,166		-		10,166		-
Debt financing		15,000		15,485		-		15,485		-
	At December 31, 2011
	Carrying		Estimated
	Amount		Fair Value
	(In thousands)
Financial Assets
Cash and due from banks	$	530,045	$	530,045
Investment securities held to maturity		922,803		947,493
Loans		2,491,209		2,515,095
Other assets - FDIC receivable		40,113		40,046
Financial Liabilities
Deposits	$	4,249,921	$	4,250,164
Short-term borrowed funds		115,689		115,689
Federal Home Loan Bank advances		26,023		26,532
Term repurchase agreement		10,000		10,242
Debt financing		15,000		15,222

The majority of the Company’s standby letters of credit and other commitments to extend credit carry current market interest rates if converted to loans. No premium or discount was ascribed to these commitments because virtually all funding would be at current market rates.

- 26 -

Note 9: Debt Financing

Unsecured debt financing was as follows:

	At June 30,		At December 31,
	2012		2011
	(In thousands)
Senior fixed-rate note	$	15,000	$	15,000
Total debt financing	$	15,000	$	15,000

The Senior note was issued by Westamerica Bancorporation on October 31, 2003 and matures October 31, 2013. Interest of 5.31% per annum is payable semiannually on April 30 and October 31, with principal due at maturity.

Note 10: Earnings Per Common Share

The table below shows earnings per common share and diluted earnings per common share. Basic earnings per common share are computed by dividing net income applicable to common equity by the average number of common shares outstanding during the period. Diluted earnings per common share are computed by dividing net income applicable to common equity by the average number of common shares outstanding during the period plus the impact of common stock equivalents.

	For the Three Months				For the Six Months
	Ended June 30,
	2012		2011		2012		2011
	(In thousands, except per share data)
Net income applicable to common equity (numerator)	$	20,964	$	21,269	$	41,969	$	43,651
Basic earnings per common share
Weighted average number of common shares outstanding - basic (denominator)		27,744		28,771		27,897		28,895
Basic earnings per common share	$	0.76	$	0.74	$	1.50	$	1.51
Diluted earnings per common share
Weighted average number of common shares outstanding - basic		27,744		28,771		27,897		28,895
Add exercise of options reduced by the number of shares that could have been purchased with the proceeds of such exercise		46		152		54		178
Weighted average number of common shares outstanding - diluted (denominator)		27,790		28,923		27,951		29,073
Diluted earnings per common share	$	0.75	$	0.74	$	1.50	$	1.50

For the three months ended June 30, 2012 and 2011, options to purchase 2,072 thousand and 1,396 thousand shares of common stock, respectively, were outstanding but not included in the computation of diluted net income per share because the option exercise price exceeded the fair value of the stock such that their inclusion would have had an anti-dilutive effect.

For the six months ended June 30, 2012 and 2011, options to purchase 2,035 thousand shares and 1,209 thousand shares of common stock, respectively, were outstanding but not included in the computation of diluted net income per share because their inclusion would have had an anti-dilutive effect.

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WESTAMERICA BANCORPORATION
FINANCIAL SUMMARY
	For the Three Months						For the Six Months
	Ended June 30,
	2012			2011			2012			2011
	(In thousands, except per share data)
Net Interest and Fee Income (FTE)*	$	50,333		$	55,837		$	102,032		$	110,830
Provision for Loan Losses		2,800			2,800			5,600			5,600
Noninterest Income
Loss on sale of securities		(1,287	)		-			(1,287	)		-
Other		14,820			15,292			29,489			30,035
Noninterest Income		13,533			15,292			28,202			30,035
Noninterest Expense:
Settlements		-			2,100			-			2,100
Other		29,349			32,209			59,383			63,532
Total Noninterest Expense		29,349			34,309			59,383			65,632
Income Before Income Taxes (FTE)*		31,717			34,020			65,251			69,633
Income Tax Provision (FTE)*		10,753			12,751			23,282			25,982
Net Income	$	20,964		$	21,269		$	41,969		$	43,651
Average Common Shares Outstanding		27,744			28,771			27,897			28,895
Diluted Average Common Shares Outstanding		27,790			28,923			27,951			29,073
Common Shares Outstanding at Period End		27,621			28,540			27,621			28,540
Per Common Share:
Basic Earnings	$	0.76		$	0.74		$	1.50		$	1.51
Diluted Earnings		0.75			0.74			1.50			1.50
Book Value Per Common Share	$	20.20		$	19.25
Financial Ratios:
Return On Assets		1.69	%		1.73	%		1.69	%		1.78	%
Return On Common Equity		15.55	%		15.64	%		15.50	%		16.14	%
Net Interest Margin (FTE)*		4.89	%		5.38	%		5.00	%		5.37	%
Net Loan Losses to Average Gross Originated Loans		0.65	%		0.83	%		0.67	%		0.83	%
Efficiency Ratio**		46.0	%		48.2	%		45.6	%		46.6	%
Average Balances:
Assets	$	4,974,619		$	4,927,849		$	5,002,777		$	4,934,387
Earning Assets		4,127,699			4,156,226			4,093,985			4,154,676
Originated Loans		1,789,221			1,978,155			1,812,296			1,990,042
Purchased Covered Loans		478,965			644,555			495,965			659,597
Purchased Non-covered Loans		107,483			178,384			113,493			185,870
Deposits		4,227,752			4,143,749			4,240,758			4,141,288
Shareholders' Equity		542,192			545,637			544,434			545,421
Period End Balances:
Assets	$	4,953,130		$	4,876,731
Earning Assets		4,232,582			4,125,743
Originated Loans		1,751,578			1,963,642
Purchased Covered Loans		463,251			622,727
Purchased Non-covered Loans		102,390			164,844
Deposits		4,208,499			4,088,385
Shareholders' Equity		557,926			549,340
Capital Ratios at Period End:
Total Risk Based Capital		15.74	%		15.92	%
Tangible Equity to Tangible Assets		8.54	%		8.39	%
Dividends Paid Per Common Share	$	0.37		$	0.36		$	0.74		$	0.72
Common Dividend Payout Ratio		49	%		49	%		49	%		48	%

The above financial summary has been derived from the Company's unaudited consolidated financial statements. This information should be read in conjunction with those statements, notes and the other information included elsewhere herein.  Percentages under the heading "Financial Ratios" are annualized with the exception of the efficiency ratio.

* Yields on securities and certain loans have been adjusted upward to a "fully taxable equivalent" ("FTE") basis, which is a non-GAAP financial measure, in order to reflect the effect of income which is exempt from federal income taxation at the current statutory tax rate.

** The efficiency ratio is defined as noninterest expense divided by total revenue (net interest income on an FTE basis, which is a non-GAAP financial measure, and noninterest income).

- 28 -

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Westamerica Bancorporation and subsidiaries (the “Company”) reported net income of $21.0 million or $0.75 diluted earnings per common share for the second quarter 2012 and net income of $42.0 million or $1.50 diluted earnings per common share for the six months ended June 30, 2012. The second quarter of 2012 included a $1.3 million loss realized from the sale of a collateralized mortgage obligation bond which decreased net income by $750 thousand and a tax refund from an amended tax return which increased net income by $950 thousand. These results compare to net income of $21.3 million or $0.74 diluted earnings per common share for the second quarter of 2011 and net income of $43.7 million or $1.50 diluted earnings per common share for the first half of 2011. The second quarter of 2011 included a $2.1 million litigation settlement accrual which decreased net income by $1.2 million.

Net Income

Following is a summary of the components of net income for the periods indicated:

	For the Three Months						For the Six Months
	Ended June 30,
	2012			2011			2012			2011
	(In thousands, except per share data)
Net interest income (FTE)	$	50,333		$	55,837		$	102,032		$	110,830
Provision for loan losses		(2,800	)		(2,800	)		(5,600	)		(5,600	)
Noninterest income		13,533			15,292			28,202			30,035
Noninterest expense		(29,349	)		(34,309	)		(59,383	)		(65,632	)
Income  before taxes (FTE)		31,717			34,020			65,251			69,633
Income tax provision (FTE)		(10,753	)		(12,751	)		(23,282	)		(25,982	)
Net income	$	20,964		$	21,269		$	41,969		$	43,651
Average diluted common shares		27,790			28,923			27,951			29,073
Diluted earnings per common share	$	0.75		$	0.74		$	1.50		$	1.50
Average total assets	$	4,974,619		$	4,927,849		$	5,002,777		$	4,934,387
Net income to average total assets (annualized)		1.69	%		1.73	%		1.69	%		1.78	%
Net income to average common stockholders' equity (annualized)		15.55	%		15.64	%		15.50	%		16.14	%

Net income for the second quarter of 2012 was $305 thousand or 1.4% less than the second quarter of 2011, the net result of declines in net interest income (fully taxable equivalent or “FTE”) and a $1.3 million loss on sale of securities, partially offset by decreases in noninterest expense and income tax provision (FTE). A $5.5 million or 9.9% decrease in net interest income (FTE) was mostly attributed to lower average balances of loans and lower yields on interest earning assets, partially offset by higher average balances of investments, lower average balances of interest-bearing liabilities and lower rates paid on interest-bearing deposits. The provision for loan losses remained the same, reflecting Management's evaluation of losses inherent in the loan portfolio not covered by loss-sharing agreements with the Federal Deposit Insurance Corporation (“FDIC”) and purchased loan credit-default discounts. Noninterest expense decreased $5.0 million due to a $2.1 million settlement accrual in the second quarter of 2011 and reduced costs related to managing nonperforming assets.

Comparing the first half of 2012 to the first half of 2011, net income decreased $1.7 million or 3.9%, primarily due to lower net interest income (FTE) and a $1.3 million loss on sale of securities, partially offset by decreases in noninterest expense and income tax provision (FTE). The lower net interest income (FTE) was primarily caused by a lower average volume of loans and lower yields on interest earning assets, partially offset by higher average balances of investments and lower rates paid on interest-bearing deposits. The provision for loan losses remained the same, reflecting Management's evaluation of losses inherent in the loan portfolio not covered by loss-sharing agreements with the FDIC and purchased loan credit-default discounts. Noninterest expense declined $6.2 million primarily due to a $2.1 million settlement accrual in the second quarter 2011 and reduced costs related to managing nonperforming assets.

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Net Interest Income

Following is a summary of the components of net interest income for the periods indicated:

	For the Three Months						For the Six Months
	Ended June 30,
	2012			2011			2012			2011
	(In thousands)
Interest and fee income	$	46,901		$	53,088		$	95,199		$	105,582
Interest expense		(1,472	)		(2,153	)		(3,031	)		(4,456	)
FTE adjustment		4,904			4,902			9,864			9,704
Net interest income (FTE)	$	50,333		$	55,837		$	102,032		$	110,830
Average earning assets	$	4,127,699		$	4,156,226		$	4,093,985		$	4,154,676
Net interest margin (FTE) (annualized)		4.89	%		5.38	%		5.00	%		5.37	%

Net interest income (FTE) decreased during the second quarter of 2012 by $5.5 million or 9.9% from the same period in 2011 to $50.3 million, mainly due to lower average balances of loans (down $425 million) and lower yields on investments (down 0.73%), partially offset by higher average balances of investments (up $397 million), lower average balances of interest-bearing liabilities (down $62 million) and lower rates paid on interest-bearing deposits (down 0.10%).

Comparing the first half of 2012 with the first half of 2011, net interest income (FTE) decreased $8.8 million or 7.9%, primarily due to a lower average volume of loans (down $414 million) and lower yields on interest earning assets (down 0.44%), partially offset by higher average balances of investments (up $353 million) and lower rates paid on interest-bearing deposits (down 0.11%).

Yields on interest-earning assets have declined due to relatively low interest rates prevailing in the market. Economic conditions, competitive pricing and deleveraging by businesses and individuals 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.

In Management's judgment, economic conditions and competitive pricing create a cautious view toward commercial lending, and economic pressure on consumers has reduced demand for automobile and other consumer loans. As a result, the Company has not taken an aggressive posture relative to loan portfolio growth.

At June 30, 2012, purchased FDIC covered loans represented 20 percent of the Company’s loan portfolio. Under the terms of the FDIC loss-sharing agreements, the FDIC is obligated to reimburse the Bank 80 percent of loan interest income foregone on covered loans. Such reimbursements are limited to the lesser of 90 days contractual interest or actual unpaid contractual interest at the time a principal loss is recognized in respect to the underlying loan.

Interest and Fee Income

Interest and fee income (FTE) for the second quarter of 2012 decreased $6.2 million or 10.7% from the same period in 2011. The decrease was caused by lower average balances of loans and lower yields on interest earning assets, partially offset by higher average balances of investments.

The total average balances of loans declined due to decreases in the average balances of commercial real estate loans (down $176 million), taxable commercial loans (down $127 million), residential real estate loans (down $48 million), construction loans (down $39 million), consumer loans (down $20 million) and tax-exempt commercial loans (down $16 million). The average investment portfolio increased largely due to higher average balances of residential collateralized mortgage obligations (up $242 million), municipal securities (up $107 million) and corporate securities (up $79 million), partially offset by a $68 million decrease in average balances of securities of U.S. government sponsored entities. The average yield on the Company's earning assets decreased from 5.59% in the second quarter of 2011 to 5.04% in the corresponding period of 2012. The composite yield on loans declined 0.19% to 5.84%. Lower yields on consumer loans (down 0.88%), real estate residential loans (down 0.29%), tax-exempt commercial loans (down 0.26%) and construction loans (down 0.38%) were offset by higher yields on commercial real estate loans (up 0.17%). Nonperforming loans are included in average loan volumes used to compute loan yields; fluctuations in nonaccrual loan volumes impact loan yields. The yield on commercial real estate loans in the second quarter 2012 was elevated due to interest received on nonaccrual loans. The investment yields in general declined due to market rates. The investment portfolio yield decreased 0.73% to 3.95% primarily due to lower yields on municipal securities (down 0.61%), residential collateralized mortgage obligations (down 1.45%) and residential mortgage backed securities (down 0.68%). Offsetting the decrease was a 0.15% increase in yields on corporate securities which contain floating interest rate structures.

- 30 -

Comparing the first half of 2012 with the first half of 2011, interest and fee income (FTE) was down $10.2 million or 8.9%. The decrease resulted from a lower average volume of loans and lower yields on interest earning assets, partially offset by higher average balances of investments. Average interest earning assets decreased $61 million or 1.5% in the first half of 2012 compared with the first half of 2011 due to a $414 million decrease in average loans and a $353 million increase in average investments. The decrease in the average balance of the loan portfolio was attributable to decreases in average balances of commercial real estate loans (down $168 million), taxable commercial loans (down $130 million), construction loans (down $40 million), residential real estate loans (down $46 million), tax-exempt commercial loans (down $16 million) and consumer loans (down $13 million). The average investment portfolio increased mostly due to higher average balances of municipal securities (up $117 million), residential collateralized mortgage obligations (up $218 million) and corporate securities (up $58 million), partially offset by a $64 million decline in U.S. government sponsored entities.

The average yield on earning assets for the first half of 2012 was 5.15% compared with 5.59% in the first half of 2011. The loan portfolio yield for the first half of 2012 compared with the first half of 2011 was lower by 0.12% mostly due to lower yields on consumer loans (down 0.75%), residential real estate loans (down 0.36%) and tax-exempt commercial loans (down 0.42%), partially offset by higher yields on commercial real estate loans (up 0.22%), taxable commercial loans (up 0.19%) and construction loans (up 0.68%). Nonperforming loans are included in average loan volumes used to compute loan yields; fluctuations in nonaccrual loan volumes impact loan yields. The yield on commercial real estate loans in the first half 2011 was elevated due to interest received on nonaccrual loans. The investment portfolio yield decreased 0.60% to 4.09% primarily due to lower yields on municipal securities (down 0.55%), residential collateralized mortgage obligations (down 1.58%), residential mortgage backed securities (down 0.50%) and securities of U.S. government sponsored entities (down 0.19%), partially offset by a 0.21% increase in yields on corporate securities which contain floating interest rate structures.

Interest Expense

Interest expense in the second quarter of 2012 decreased $681 thousand or 31.6% compared with the same period in 2011 due to lower rates paid on interest-bearing deposits and a shift from higher costing deposits and financing to lower cost checking and savings accounts. Checking and savings deposits accounted for 81.7% of total deposits in the second quarter 2012 compared with 79.2% in the same quarter of 2011. Interest-bearing liabilities declined due to lower average balances of FHLB advances (down $22 million), long-term debt (down $11 million), time deposits (down $90 million) and preferred money market savings (down $46 million), partially offset by higher average balances of money market checking accounts (up $46 million), money market savings (up $42 million), regular savings (up $19 million) and term repurchase agreement (up $10 million). Lower average balances of long-term debt were attributable to the redemption of $10 million of subordinated debt in August 2011. The average rate paid on interest-bearing liabilities decreased from 0.30% in the second quarter of 2011 to 0.21% in the same quarter of 2012. Rates on interest-bearing deposits decreased 0.10% to 0.17% primarily due to decreases in rates paid on time deposits less than $100 thousand (down 0.12%), time deposits $100 thousand or more (down 0.10%), preferred money market savings (down 0.11%), money market checking (down 0.07%) and money market savings (down 0.09%).

Comparing the first half of 2012 with the first half of 2011, interest expense declined $1.4 million or 32.0%, due to lower average balances of interest-bearing liabilities and lower rates paid on interest-bearing deposits. Average interest-bearing deposits during the first half of 2012 fell $13 million compared with the same period in 2011 primarily due to declines in the average balances of time deposits less than $100 thousand (down $51 million), time deposits $100 thousand or more (down ($39 million) and preferred money market savings (down $26 million), partially offset by increases in the average balance of money market checking accounts (up $41 million), money market savings (up $38 million) and regular savings (up $25 million). Rates paid on interest-bearing deposits averaged 0.17% during the first half of 2012 compared with 0.28% for the first half of 2011 mainly due to lower rates on money market savings (down 0.10%), preferred money market savings (down 0.12%) and regular savings (down 0.05%), time deposits less than $100 thousand (down 0.04%) and time deposits $100 thousand and more (down 0.15%).

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Net Interest Margin (FTE)

The following summarizes the components of the Company's net interest margin for the periods indicated:

	For the Three Months						For the Six Months
	Ended June 30,
	2012			2011			2012			2011
Yield on earning assets (FTE)		5.04	%		5.59	%		5.15	%		5.59	%
Rate paid on interest-bearing liabilities		0.21	%		0.30	%		0.22	%		0.31	%
Net interest spread (FTE)		4.83	%		5.29	%		4.93	%		5.28	%
Impact of noninterest bearing demand deposits		0.06	%		0.09	%		0.07	%		0.09	%
Net interest margin (FTE)		4.89	%		5.38	%		5.00	%		5.37	%

During the second quarter of 2012, the net interest margin (FTE) decreased 0.49% compared with the same period in 2011. Lower yields on earning assets were partially offset by lower rates paid on interest-bearing liabilities and resulted in a 0.46% decrease in net interest spread (FTE). The 0.06% net interest margin contribution of noninterest-bearing demand deposits resulted in the net interest margin (FTE) of 4.89%. During the first half of 2012, the net interest margin (FTE) decreased 0.37% compared with the first half of 2011. The net interest spread (FTE) in the first half of 2012 was 4.93% compared with 5.28% in the first half of 2011, the net result of a 0.44% decrease in earning asset yields, partially offset by lower cost of interest-bearing liabilities (down 0.09%).

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Summary of Average Balances, Yields/Rates and Interest Differential

The following tables present, for the periods indicated, information regarding the Company's consolidated average assets, liabilities and shareholders' equity, the amount of interest income from average earning assets and the resulting annualized yields, and the amount of interest expense paid on average interest-bearing liabilities and the resulting annualized rate paid. Average loan balances include nonperforming loans. Interest income includes proceeds from loans on nonaccrual status only to the extent cash payments have been received and applied as interest income. Yields on securities and certain loans have been adjusted upward to reflect the effect of income which is exempt from federal income taxation at the current statutory tax rate (FTE).

	For the Three Months Ended
	June 30, 2012
					Yields
			Interest		Earned/
	Average		Income/		Rates
	Balance		Expense		Paid
	(In thousands)
Assets
Investment securities:
Available for sale
Taxable	$	449,977	$	2,774		2.47	%
Tax-exempt (1)		220,724		3,254		5.90	%
Held to maturity
Taxable		451,988		2,574		2.28	%
Tax-exempt (1)		629,341		8,731		5.55	%
Loans:
Commercial:
Taxable		330,485		5,490		6.68	%
Tax-exempt (1)		133,591		2,085		6.28	%
Commercial real estate		1,046,878		17,531		6.74	%
Real estate construction		28,627		300		4.21	%
Real estate residential		271,196		2,496		3.68	%
Consumer		564,892		6,570		4.68	%
Total loans (1)		2,375,669		34,472		5.84	%
Total interest-earning assets (1)		4,127,699	$	51,805		5.04	%
Other assets		846,920
Total assets	$	4,974,619
Liabilities and shareholders' equity
Deposits:
Noninterest bearing demand	$	1,579,359	$	-		-	%
Savings and interest-bearing transaction		1,876,734		308		0.07	%
Time less than $100,000		270,549		385		0.57	%
Time $100,000 or more		501,110		414		0.33	%
Total interest-bearing deposits		2,648,393		1,107		0.17	%
Short-term borrowed funds		93,568		21		0.09	%
Term repurchase agreement		10,000		24		0.97	%
Federal Home Loan Bank advances		25,944		119		1.86	%
Debt financing		15,000		201		5.35	%
Total interest-bearing liabilities		2,792,905	$	1,472		0.21	%
Other liabilities		60,163
Shareholders' equity		542,192
Total liabilities and shareholders' equity	$	4,974,619
Net interest spread (1) (2)						4.83	%
Net interest income and interest margin (1) (3)			$	50,333		4.89	%

(1) Interest and rates calculated on a fully taxable equivalent basis using the current statutory federal tax rate.

(2) Net interest spread represents the average yield earned on earning assets minus the average rate paid on interest-bearing liabilities.

(3) Net interest margin is computed by calculating the difference between interest income and expense (annualized), divided by the average balance of earning assets.

- 33 -

	For the Three Months Ended
	June 30, 2011
					Yields
			Interest		Earned/
	Average		Income/		Rates
	Balance		Expense		Paid
	(In thousands)
Assets:
Money market assets and funds sold	$	205	$	-		-	%
Investment securities:
Available for sale
Taxable		467,322		2,914		2.49	%
Tax-exempt (1)		271,889		4,242		6.24	%
Held to maturity
Taxable		139,411		1,309		3.76	%
Tax-exempt (1)		476,305		7,405		6.22	%
Loans:
Commercial:
Taxable		457,659		7,619		6.68	%
Tax-exempt (1)		149,459		2,436		6.54	%
Commercial real estate		1,222,393		20,017		6.57	%
Real estate construction		67,323		771		4.59	%
Real estate residential		319,323		3,171		3.97	%
Consumer		584,937		8,106		5.56	%
Total loans (1)		2,801,094		42,120		6.03	%
Total interest-earning assets (1)		4,156,226	$	57,990		5.59	%
Other assets		771,623
Total assets	$	4,927,849
Liabilities and shareholders' equity
Deposits:
Noninterest bearing demand	$	1,466,754	$	-		-	%
Savings and interest-bearing transaction		1,815,513		647		0.14	%
Time less than $100,000		318,235		548		0.69	%
Time $100,000 or more		543,247		582		0.43	%
Total interest-bearing deposits		2,676,995		1,777		0.27	%
Short-term borrowed funds		103,177		47		0.18	%
Federal Home Loan Bank advances		48,248		128		1.05	%
Debt financing and notes payable		26,007		201		3.08	%
Total interest-bearing liabilities		2,854,427	$	2,153		0.30	%
Other liabilities		61,031
Shareholders' equity		545,637
Total liabilities and shareholders' equity	$	4,927,849
Net interest spread (1) (2)						5.29	%
Net interest income and interest margin (1) (3)			$	55,837		5.38	%

(1) Interest and rates calculated on a fully taxable equivalent basis using the current statutory federal tax rate.

(2) Net interest spread represents the average yield earned on earning assets minus the average rate paid on interest-bearing liabilities.

(3) Net interest margin is computed by calculating the difference between interest income and expense (annualized), divided by the average balance of earning assets.

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	For the Six Months Ended
	June 30, 2012
					Yields
			Interest		Earned/
	Average		Income/		Rates
	Balance		Expense		Paid
	(In thousands)
Assets
Investment securities:
Available for sale
Taxable	$	430,935	$	5,338		2.48	%
Tax-exempt (1)		223,032		6,613		5.93	%
Held to maturity
Taxable		396,547		4,700		2.37	%
Tax-exempt (1)		621,717		17,568		5.65	%
Loans:
Commercial:
Taxable		341,280		11,273		6.64	%
Tax-exempt (1)		135,669		4,139		6.14	%
Commercial real estate		1,068,951		35,780		6.73	%
Real estate construction		30,947		852		5.54	%
Real estate residential		277,167		5,099		3.68	%
Consumer		567,740		13,701		4.85	%
Total loans (1)		2,421,754		70,844		5.88	%
Total interest-earning assets (1)		4,093,985	$	105,063		5.15	%
Other assets		908,792
Total assets	$	5,002,777
Liabilities and shareholders' equity
Deposits:
Noninterest bearing demand	$	1,577,708	$	-		-	%
Savings and interest-bearing transaction		1,880,640		634		0.07	%
Time less than $100,000		275,642		824		0.60	%
Time $100,000 or more		506,768		836		0.33	%
Total interest-bearing deposits		2,663,050		2,294		0.17	%
Short-term borrowed funds		104,237		48		0.09	%
Term repurchase agreement		10,000		49		0.98	%
Federal Home Loan Bank advances		25,972		239		1.85	%
Debt financing and notes payable		15,000		401		5.35	%
Total interest-bearing liabilities		2,818,259	$	3,031		0.22	%
Other liabilities		62,376
Shareholders' equity		544,434
Total liabilities and shareholders' equity	$	5,002,777
Net interest spread (1) (2)						4.93	%
Net interest income and interest margin (1) (3)			$	102,032		5.00	%

(1) Interest and rates calculated on a fully taxable equivalent basis using the current statutory federal tax rate.

(2) Net interest spread represents the average yield earned on earning assets minus the average rate paid on interest-bearing liabilities.

(3) Net interest margin is computed by calculating the difference between interest income and expense (annualized), divided by the average balance of earning assets.

- 35 -

	For the Six Months Ended
	June 30, 2011
					Yields
			Interest		Earned/
	Average		Income/		Rates
	Balance		Expense		Paid
	(In thousands)
Assets:
Money market assets and funds sold	$	440	$	-		-	%
Investment securities:
Available for sale
Taxable		451,994		5,379		2.38	%
Tax-exempt (1)		270,490		8,455		6.25	%
Held to maturity
Taxable		131,087		2,601		3.97	%
Tax-exempt (1)		465,156		14,498		6.23	%
Loans:
Commercial:
Taxable		471,256		15,084		6.45	%
Tax-exempt (1)		151,648		4,936		6.56	%
Commercial real estate		1,236,921		39,945		6.51	%
Real estate construction		71,197		1,717		4.86	%
Real estate residential		323,296		6,527		4.04	%
Consumer		581,191		16,144		5.60	%
Total loans (1)		2,835,509		84,353		6.00	%
Total interest-earning assets (1)		4,154,676	$	115,286		5.59	%
Other assets		779,711
Total assets	$	4,934,387
Liabilities and shareholders' equity
Deposits:
Noninterest bearing demand	$	1,464,925	$	-		-	%
Savings and interest-bearing transaction		1,804,475		1,318		0.15	%
Time less than $100,000		326,159		1,040		0.64	%
Time $100,000 or more		545,729		1,309		0.48	%
Total interest-bearing deposits		2,676,363		3,667		0.28	%
Short-term borrowed funds		106,991		109		0.20	%
Federal Home Loan Bank advances		52,983		279		1.05	%
Debt financing and notes payable		26,161		401		3.06	%
Total interest-bearing liabilities		2,862,498	$	4,456		0.31	%
Other liabilities		61,543
Shareholders' equity		545,421
Total liabilities and shareholders' equity	$	4,934,387
Net interest spread (1) (2)						5.28	%
Net interest income and interest margin (1) (3)			$	110,830		5.37	%

(1) Interest and rates calculated on a fully taxable equivalent basis using the current statutory federal tax rate.

(2) Net interest spread represents the average yield earned on earning assets minus the average rate paid on interest-bearing liabilities.

(3) Net interest margin is computed by calculating the difference between interest income and expense (annualized), divided by the average balance of earning assets.

- 36 -

Summary of Changes in Interest Income and Expense due to Changes in Average Asset & Liability Balances and Yields Earned & Rates Paid

The following tables set forth a summary of the changes in interest income and interest expense due to changes in average asset and liability balances (volume) and changes in average interest rates for the periods indicated. Changes not solely attributable to volume or rates have been allocated in proportion to the respective volume and rate components.

	For the Three Months Ended June 30, 2012
	Compared with
	For the Three months Ended June 30, 2011
	Volume			Rate			Total
	(In thousands)
Interest and fee income:
Investment securities:
Available for sale
Taxable	$	(107	)	$	(33	)	$	(140	)
Tax-exempt (1)		(765	)		(223	)		(988	)
Held to maturity
Taxable		1,949			(684	)		1,265
Tax-exempt (1)		2,182			(856	)		1,326
Loans:
Commercial:
Taxable		(2,133	)		4			(2,129	)
Tax-exempt (1)		(255	)		(96	)		(351	)
Commercial real estate		(2,976	)		490			(2,486	)
Real estate construction		(412	)		(59	)		(471	)
Real estate residential		(455	)		(220	)		(675	)
Consumer		(274	)		(1,262	)		(1,536	)
Total loans (1)		(6,505	)		(1,143	)		(7,648	)
Total decrease in interest and fee income (1)		(3,246	)		(2,939	)		(6,185	)
Interest expense:
Deposits:
Savings and interest-bearing
transaction		21			(360	)		(339	)
Time less than $100,000		(76	)		(87	)		(163	)
Time $100,000 or more		(43	)		(125	)		(168	)
Total interest-bearing deposits		(98	)		(572	)		(670	)
Short-term borrowed funds		(4	)		(22	)		(26	)
Term repurchase agreement		24			-			24
Federal Home Loan Bank advances		(77	)		68			(9	)
Debt financing		(108	)		108			-
Total decrease in interest expense		(263	)		(418	)		(681	)
Decrease in Net Interest Income (1)	$	(2,983	)	$	(2,521	)	$	(5,504	)

(1) Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.

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	For the Six Months Ended June 30, 2012
	Compared with
	For the Six Months Ended June 30, 2011
	Volume			Rate			Total
	(In thousands)
Interest and fee income:
Investment securities:
Available for sale
Taxable	$	(242	)	$	201		$	(41	)
Tax-exempt (1)		(1,415	)		(427	)		(1,842	)
Held to maturity
Taxable		3,490			(1,391	)		2,099
Tax-exempt (1)		4,528			(1,458	)		3,070
Loans:
Commercial:
Taxable		(4,237	)		426			(3,811	)
Tax-exempt (1)		(483	)		(314	)		(797	)
Commercial real estate		(5,457	)		1,292			(4,165	)
Real estate construction		(1,076	)		211			(865	)
Real estate residential		(868	)		(560	)		(1,428	)
Consumer		(295	)		(2,148	)		(2,443	)
Total loans (1)		(12,416	)		(1,093	)		(13,509	)
Total decrease in interest and fee income (1)		(6,055	)		(4,168	)		(10,223	)
Interest expense:
Deposits:
Savings and interest-bearingtransaction		57			(741	)		(684	)
Time less than $100,000		(151	)		(65	)		(216	)
Time $100,000 or more		(83	)		(390	)		(473	)
Total interest-bearing deposits		(177	)		(1,196	)		(1,373	)
Short-term borrowed funds		(2	)		(59	)		(61	)
Term repurchase agreement		49			-			49
Federal Home Loan Bank advances		(21	)		(19	)		(40	)
Debt financing		(216	)		216			-
Total decrease in interest expense		(367	)		(1,058	)		(1,425	)
Decrease in Net Interest Income (1)	$	(5,688	)	$	(3,110	)	$	(8,798	)

(1) Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.

Provision for Loan Losses

The Company manages credit costs by consistently enforcing conservative underwriting and administration procedures and aggressively pursuing collection efforts with debtors experiencing financial difficulties. The provision for loan losses reflects Management's assessment of credit risk in the loan portfolio during each of the periods presented.

The Company provided $2.8 million and $5.6 million for loan losses in the second quarter and first half of 2012, respectively, unchanged from comparable periods in 2011. The Company recorded purchased County Bank (“County”) and Sonoma loans at estimated fair value upon the acquisition dates, February 6, 2009 and August 20, 2010, respectively. Such estimated fair values were recognized for individual loans, although small balance homogenous loans were pooled for valuation purposes. The valuation discounts recorded for purchased loans included Management’s assessment of the risk of principal loss under economic and borrower conditions prevailing on the dates of purchase. The purchased County loans are “covered” by loss-sharing agreements the Company entered with the FDIC which mitigates losses during the term of the agreements. Any deterioration in estimated value related to principal loss subsequent to the acquisition dates requires additional loss recognition through a provision for loan losses. Of the total recorded provision, the Company provided $349 thousand and $839 thousand for purchased loans in the second quarter and first half of 2012, respectively. No assurance can be given future provisions for loan losses related to purchased loans will not be necessary.

- 38 -

For further information regarding credit risk, the FDIC loss-sharing agreements, net credit losses and the allowance for loan losses, see the “Loan Portfolio Credit Risk” and “Allowance for Credit Losses” sections of this report.

Noninterest Income

The following table summarizes the components of noninterest income for the periods indicated.

	For the Three Months					For the Six Months
	Ended June 30,
	2012			2011		2012			2011
	(In thousands)
Service charges on deposit accounts	$	7,027		$	7,577	$	14,122		$	15,098
Merchant processing services		2,529			2,391		4,922			4,562
Debit card fees		1,345			1,283		2,508			2,484
ATM processing fees		932			997		1,865			1,932
Other service fees		697			721		1,393			1,411
Trust fees		497			482		986			975
Check sale income		208			212		420			432
Safe deposit rental		193			168		390			337
Financial services commissions		194			117		365			146
Loss on sale of securities		(1,287	)		-		(1,287	)		-
Other		1,198			1,344		2,518			2,658
Total	$	13,533		$	15,292	$	28,202		$	30,035

Noninterest income for the second quarter of 2012 declined by $1.8 million from the same period in 2011. The decline in second quarter 2012 noninterest income is primarily due to a $1.3 million loss realized from the sale of a collateralized mortgage obligation bond whose underlying support tranches began experiencing escalating losses, which began deteriorating the creditworthiness of the bond. Service charges on deposits decreased $550 thousand or 7.3% due to declines in fees charged on overdrawn and insufficient funds accounts (down $680 thousand), partially offset by higher deficit fees charged on analyzed accounts (up $102 thousand). Merchant processing services income increased $138 thousand or 5.8% primarily due to increased transactions.

In the first half of 2012, noninterest income decreased $1.8 million compared with the first half of 2011. The decline in the first half of 2012 noninterest income is primarily due to a $1.3 million loss realized from the sale of a collateralized mortgage obligation bond whose underlying support tranches began experiencing escalating losses, which began deteriorating the creditworthiness of the bond. Service charges on deposits decreased $976 thousand or 6.5% due to declines in fees charged on overdrawn and insufficient funds accounts (down $1.3 million), partially offset by higher deficit fees charged on analyzed accounts (up $264 thousand). Merchant processing services income increased $360 thousand or 7.9% mainly due to increased transactions. Financial services commissions increased $219 thousand from improved sales activities.

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Noninterest Expense

The following table summarizes the components of noninterest expense for the periods indicated.

	For the Three Months				For the Six Months
	Ended June 30,
	2012		2011		2012		2011
	(In thousands)
Salaries and related benefits	$	14,494	$	14,913	$	29,540	$	29,988
Occupancy		3,775		4,050		7,709		8,075
Outsourced data processing services		2,078		2,122		4,161		4,578
Settlements		-		2,100		-		2,100
Amortization of identifiable intangibles		1,339		1,480		2,741		3,028
Professional fees		902		1,453		1,669		2,303
Furniture and equipment		1,041		1,038		1,892		1,971
Other real estate owned		3		990		233		1,135
Courier service		793		852		1,578		1,695
Deposit insurance assessments		653		740		1,403		1,960
Loan expense		390		544		1,017		938
Telephone		418		428		794		863
Postage		344		363		716		731
Operational losses		149		341		322		589
Stationery and supplies		247		323		490		646
Advertising and public relations		151		161		303		332
Other noninterest expense		2,572		2,411		4,815		4,700
Total	$	29,349	$	34,309	$	59,383	$	65,632

Noninterest expense decreased $5.0 million or 14.5% in the second quarter 2012 compared with the same period in 2011 primarily due to a $2.1 million settlement accrual in the second quarter 2011 and reduced costs related to managing nonperforming assets. Other real estate owned expense decreased $987 thousand mainly due to lower writedowns and maintenance expenses and higher gains on sale of foreclosed assets. Professional fees declined $551 thousand or 37.9% due to lower legal fees. Salaries and related benefits decreased $419 thousand or 2.8% primarily due to employee attrition. Occupancy expense declined $275 thousand or 6.8% mostly due to lower lease rates on bank premises.

In the first half of 2012, noninterest expense decreased $6.2 million or 9.5% compared with the first half of 2011 mainly due to a $2.1 million settlement accrual in 2011 and lower costs related to managing nonperforming assets. Additionally, the first quarter 2011 included $679 thousand in expenses related to pre-integration costs for the acquired Sonoma, primarily outsourced data processing and personnel costs. Sonoma operations were fully integrated in February 2011. Other real estate owned expense decreased $902 thousand mainly due to higher gains on sale of foreclosed assets, partially offset by higher writedowns. Professional fees declined $634 thousand or 27.5% largely due to lower legal fees. Deposit insurance assessments decreased $557 thousand due to a change in assessment rules effective April 1, 2011. Salaries and related benefits decreased $448 thousand or 1.5% primarily due to lower salaries resulting from employee attrition, partially offset by higher employee benefit costs. Outsourced data processing services expense decreased $417 thousand or 9.1%. Occupancy expense declined $366 thousand or 4.5% mostly due to lower lease rates on bank premises and lower maintenance expense.

Provision for Income Tax

During the second quarter of 2012, the Company recorded income tax expense (FTE) of $10.8 million compared with $12.8 million for the second quarter of 2011. The current quarter provision represents an effective tax rate (FTE) of 33.9%, compared with 37.5% for the second quarter of 2011. The decline in tax rate in the second quarter 2012 is attributable to a $968 thousand tax refund from an amended 2006 federal income tax return. This claim for tax refund was processed by the Internal Revenue Service in conjunction with the conclusion of an examination of the Company’s 2008 federal income tax return.

The income tax provision (FTE) was $23.3 million for the first six months of 2012 compared with $26.0 million for the corresponding period of 2011. The first half of 2012 effective tax rate was 35.7% compared to 37.3% for the same period of 2011. The lower tax rate in the first half of 2012 was due to the tax refund described in the preceding paragraph.

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Loan Portfolio Credit Risk

The risk that loan customers do not repay loans extended by the Bank is the most significant risk to the Company. The Company closely monitors the markets in which it conducts its lending operations and follows a strategy to control exposure to loans with high credit risk. The Bank’s organization structure separates the functions of business development and loan underwriting; Management believes this segregation of duties avoids inherent conflicts of combining business development and loan approval functions. In measuring and managing credit risk, the Company adheres to the following practices.

·   The Bank maintains a Loan Review Department which reports directly to the Board of Directors. The Loan Review Department performs independent evaluations of loans and assigns credit risk grades to evaluated loans using grading standards employed by bank regulatory agencies. Those loans judged to carry higher risk attributes are referred to as “classified loans.” Classified loans receive elevated management attention to maximize collection.

·   The Bank maintains two loan administration offices whose sole responsibility is to manage and collect classified loans.

Classified loans with higher levels of credit risk are further designated as “nonaccrual loans.” Management places classified loans on nonaccrual status when full collection of contractual interest and principal payments is in doubt. Interest previously accrued on loans placed on nonaccrual status is charged against interest income, net of estimated FDIC reimbursements under loss-sharing agreements. The Company does not accrue interest income on nonaccrual loans. Interest payments received on nonaccrual loans are applied to reduce the carrying amount of the loan unless the carrying amount is well secured by loan collateral or covered by FDIC loss-sharing agreements. “Nonperforming assets” include nonaccrual loans, loans 90 or more days past due and still accruing, and repossessed loan collateral.

The Bank’s commercial loan customers are primarily small businesses and professionals. As a result, average loan balances are relatively small, providing risk diversification within the overall loan portfolio. At June 30, 2012, the Bank’s nonaccrual loans reflected this diversification: nonaccrual originated loans with a carrying value totaling $17 million comprised twenty-seven borrowers, nonaccrual purchased non-covered loans with a carrying value totaling $20 million comprised nineteen borrowers, and nonaccrual purchased covered loans with a carrying value totaling $10 million comprised thirty-one borrowers.

Management believes the overall credit quality of the loan portfolio is reasonably stable; however, classified and nonperforming assets could fluctuate from period to period. The performance of any individual loan can be affected by external factors such as the interest rate environment, economic conditions, and collateral values or factors particular to the borrower. No assurance can be given that additional increases in nonaccrual and delinquent loans will not occur in the future.

On February 6, 2009, the Bank purchased loans and repossessed loan collateral of the former County Bank from the FDIC. This purchase transaction included loss-sharing agreements with the FDIC wherein the FDIC and the Bank share losses on the purchased assets. The loss-sharing agreements significantly reduce the credit risk of these purchased assets. In evaluating credit risk, Management separates the Bank’s total loan portfolio between those loans qualifying under the FDIC loss-sharing agreements (referred to as “purchased covered loans”) and loans not qualifying under the FDIC loss-sharing agreements (referred to as “purchased non-covered loans” and “originated loans”). At June 30, 2012, purchased covered loans totaled $463 million, or 20 percent of total loans, originated loans totaled $1.8 billion, or 76 percent and purchased non-covered loans totaled $102 million, or 4 percent of total loans.

Purchased covered loans and repossessed loan collateral qualify under loss-sharing agreements with the FDIC. Under the terms of the loss-sharing agreements, the FDIC absorbs 80 percent of losses and shares in 80 percent of loss recoveries on the first $269 million in losses on purchased covered assets (“First Tier”), and absorbs 95 percent of losses and shares in 95 percent of loss recoveries if losses on purchased covered assets exceed $269 million (“Second Tier”). The loss-sharing agreement on covered residential real estate assets expires February 6, 2019 and the loss-sharing agreement on covered non-residential assets expires February 6, 2014 as to losses and February 6, 2017 as to loss recoveries.

The purchased covered assets are primarily located in the California Central Valley, including Merced County. This geographic area currently has some of the weakest economic conditions within California and has experienced significant declines in real estate values. Management expects higher loss rates on purchased covered assets than on originated assets.

The Bank recorded purchased covered assets at estimated fair value on the February 6, 2009 acquisition date. The credit risk discount ascribed to the $1.2 billion acquired loan and repossessed loan collateral portfolio was $161 million representing estimated losses inherent in the assets at the acquisition date. The Bank also recorded a related receivable from the FDIC in the amount of $129 million representing estimated FDIC reimbursements under the loss-sharing agreements.

- 41 -

The maximum risk to future earnings if First Tier losses exceed Management’s estimated $161 million in recognized losses under the FDIC loss-sharing agreements is estimated to be $12 million as follows (dollars in thousands):

First Tier Loss Coverage	$	269,000
Less: Recognized credit risk discount		161,203
Exposure to under-estimated risk within First Tier		107,797
Bank loss-sharing percentage	20 percent
First Tier risk to Bank, pre-tax	$	21,559
First Tier risk to Bank, after-tax	$	12,494

Management has judged the likelihood of experiencing losses of a magnitude to trigger Second Tier FDIC reimbursement as remote. The Bank’s maximum after-tax exposure to Second Tier losses is $11 million as of June 30, 2012, which would be realized only if all purchased covered assets at June 30, 2012 generated no future cash flows.

Purchased covered assets have declined since the acquisition date, and losses have been primarily offset against the estimated credit risk discount, although some losses exceeding the purchase date estimated credit risk discount have been charged-off against the allowance for credit losses. Purchased covered assets totaled $478 million at June 30, 2012, net of a credit risk discount of $30 million, compared to $554 million at December 31, 2011, net of a credit risk discount of $46 million. Purchased covered assets are evaluated for risk classification without regard to FDIC indemnification such that Management can identify purchased covered assets with potential payment problems and devote appropriate credit administration practices to maximize collections. Classified purchased covered assets without regard to FDIC indemnification totaled $131 million and $168 million at June 30, 2012 and December 31, 2011, respectively. FDIC indemnification limits the Company’s loss exposure to covered classified assets.

Allowance for Credit Losses

The Company’s allowance for credit losses represents Management’s estimate of credit losses inherent in the loan portfolio. In evaluating credit risk for loans, Management measures loss potential of the carrying value of loans. As described above, payments received on nonaccrual loans may be applied against the principal balance of the loans until such time as full collection of the remaining recorded balance is expected. Further,the carrying value of purchased loans includes fair value discounts assigned at the time of purchase under the provisions of FASB ASC 805, Business Combinations, and FASB ASC 310-30, Loans or Debt Securities with Deteriorated Credit Quality. The allowance for credit losses represents Management’s estimate of credit losses in excess of these principal reductions.

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- 42 -

	For the Three Months						For the Six Months
	Ended June 30,
	2012			2011			2012			2011
	(In thousands)
Analysis of the Allowance for Credit Losses
Balance, beginning of period	$	34,576		$	37,014		$	35,290		$	38,329
Provision for loan losses		2,800			2,800			5,600			5,600
Provision for unfunded commitments		-			-			-			-
Loans charged off
Commercial		(2,696	)		(3,663	)		(3,558	)		(4,987	)
Commercial real estate		-			-			(948	)		-
Real estate construction		-			-			-			(1,475	)
Real estate residential		(62	)		(219	)		(932	)		(527	)
Consumer		(1,211	)		(1,339	)		(2,864	)		(3,475	)
Purchased covered loans		(247	)		-			(612	)		-
Purchased non-covered loans		(25	)		-			(25	)		-
Total chargeoffs		(4,241	)		(5,221	)		(8,939	)		(10,464	)
Recoveries of loans previously charged off
Commercial		228			443			617			643
Commercial real estate		33			-			33			-
Real estate construction		196			-			198			-
Real estate residential		-			-			-			-
Consumer		600			665			1,379			1,593
Purchased covered loans		24			-			38			-
Total recoveries		1,081			1,108			2,265			2,236
Net loan losses		(3,160	)		(4,113	)		(6,674	)		(8,228	)
Balance, end of period	$	34,216		$	35,701		$	34,216		$	35,701
Components:
Allowance for loan losses	$	31,523		$	33,008
Liability for off-balance sheet credit exposure		2,693			2,693
Allowance for credit losses	$	34,216		$	35,701
Net loan losses:
Originated loans	$	(2,912	)	$	(4,113	)	$	(6,075	)	$	(8,228	)
Purchased covered loans		(223	)		-			(574	)		-
Purchased non-covered loans		(25	)		-			(25	)		-
Net loan losses as a percentage of average loans (annualized):
Originated loans		0.65	%		0.83	%		0.67	%		0.83	%
Purchased covered loans		0.19	%		-	%		0.23	%		-	%
Purchased non-covered loans		0.09	%		-	%		0.04	%		-	%

The Company's allowance for credit losses is maintained at a level considered appropriate to provide for losses that can be estimated based upon specific and general conditions. These include conditions unique to individual borrowers, as well as overall credit loss experience, the amount of past due, nonperforming loans and classified loans, FDIC loss-sharing indemnification, recommendations of regulatory authorities, prevailing economic conditions and other factors. A portion of the allowance is specifically allocated to impaired loans whose full collectability of principal is uncertain. Such allocations are determined by Management based on loan-by-loan analyses. In the first quarter 2012, the Company lowered the dollar threshold for loans evaluated for impairment. The Company evaluates all nonaccrual loans with outstanding principal balances in excess of $500 thousand for impairment. A second allocation is based in part on quantitative analyses of historical credit loss experience, in which historical originated criticized and classified credit balances are analyzed using a linear regression model to determine standard loss rates for originated loans. The results of this analysis are applied to originated criticized and classified loan balances to allocate the allowance to the respective segments of the loan portfolio. In addition, originated loans with similar characteristics not usually criticized using regulatory guidelines are analyzed based on the historical loss rates and delinquency trends, grouped by the number of days the payments on these loans are delinquent. Given currently weak economic conditions, Management is applying further analysis to originated consumer loans. Current levels of originated consumer installment loan losses are compared to initial allowance allocations and, based on Management’s judgment, additional allocations are applied, if needed, to estimate losses. For originated residential real estate loans, Management is comparing ultimate loss rates on foreclosed residential real estate properties and applying such loss rates to nonaccrual originated residential real estate loans. Based on this analysis, Management exercises judgment in allocating additional allowance if deemed appropriate to estimate losses on originated residential real estate loans.Last, allocations are made to originated non-criticized and non-classified commercial and commercial real estate loans based on historical loss rates and other statistical data.

- 43 -

Purchased loans were not underwritten using the Company’s credit policies and practices. Thus, the historical loss rates for originated loans are not applied to estimate credit losses for purchased loans. Purchased loans were recorded on the date of purchase at estimated fair value; fair value discounts include a component for estimated credit losses. The Company evaluates all nonaccrual purchased loans with outstanding principal balances in excess of $500 thousand for impairment; the impaired loan value is compared to the recorded investment in the loan, which has been reduced by the credit default discount estimated on the date of purchase. If Management’s impairment analysis determines the impaired loan value is less than the recorded investment in the purchased loan, an allocation of the allowance for credit losses is established, net of estimated FDIC indemnification. For all other purchased loans, Management evaluates historical credit losses on purchased loans, credit default discounts on purchased loans, and other data to evaluate the likelihood of realizing the recorded investment in purchased loans. Management establishes allocations of the allowance for credit losses for any estimated deficiency.

The remainder of the allowance is considered to be unallocated. The unallocated allowance is established to provide for probable losses that have been incurred as of the reporting date but not reflected in the allocated allowance. The unallocated allowance addresses additional qualitative factors consistent with Management's analysis of the level of risks inherent in the loan portfolio, which are related to the risks of the Company's general lending activity. Included in the unallocated allowance is the risk of losses that are attributable to national or local economic or industry trends which have occurred but have not yet been recognized in loan chargeoff history (external factors). The external factors evaluated by the Company include: economic and business conditions, external competitive issues, and other factors. Also included in the unallocated allowance is the risk of losses attributable to general attributes of the Company's loan portfolio and credit administration (internal factors). The internal factors evaluated by the Company include: loan review system, adequacy of lending Management and staff, loan policies and procedures, problem loan trends, concentrations of credit, and other factors. By their nature, these risks are not readily allocable to any specific loan category in a statistically meaningful manner and are difficult to quantify with a specific number. Management assigns a range of estimated risk to the qualitative risk factors described above based on Management's judgment as to the level of risk, and assigns a quantitative risk factor from the range of loss estimates to determine the appropriate level of the unallocated portion of the allowance. Management considers the $34.2 million allowance for credit losses to be adequate as a reserve against credit losses inherent in the loan portfolio as of June 30, 2012.

See Note 4 to the unaudited consolidated financial statements for additional information related to the loan portfolio and allowance for credit losses.

Asset/Liability and Market Risk Management

Asset/liability management involves the evaluation, monitoring and management of interest rate risk, market risk, liquidity and funding. The fundamental objective of the Company's management of assets and liabilities is to maximize its economic value while maintaining adequate liquidity and a conservative level of interest rate risk.

Interest Rate Risk

Interest rate risk is a significant market risk affecting the Company. Interest rate risk results from many factors. Assets and liabilities may mature or reprice at different times. Assets and liabilities may reprice at the same time but by different amounts. Short-term and long-term market interest rates may change by different amounts. The timing and amount of cash flows of various assets or liabilities may shorten or lengthen as interest rates change. In addition, interest rates may have an impact on loan demand, demand for various deposit products, credit losses, and other sources of earnings such as account analysis fees on commercial deposit accounts and correspondent bank service charges.

In adjusting the Company's asset/liability position, Management attempts to manage interest rate risk while enhancing the net interest margin and net interest income. At times, depending on expected increases or decreases in general interest rates, the relationship between long and short term interest rates, market conditions and competitive factors, Management may adjust the Company's interest rate risk position in order to manage its net interest margin and net interest income. The Company's results of operations and net portfolio values remain subject to changes in interest rates and to fluctuations in the difference between long and short term interest rates.

The Company’s asset and liability position ranged from “neutral” to slightly “asset sensitive” at June 30, 2012, depending on the interest rate assumptions applied to the simulation model employed by Management to measure interest rate risk. A “neutral” position results in similar amounts of change in interest income and interest expense resulting from application of assumed interest rate changes. A slightly “asset sensitive” position results in a slightly larger change in interest income than in interest expense resulting from application of assumed interest rate changes. Management’s simulation modeling is currently biased toward rising interest rates. Management continues to monitor the interest rate environment as well as economic conditions and other factors it deems relevant in managing the Company's exposure to interest rate risk.

- 44 -

Management assesses interest rate risk by comparing the Company's most likely earnings plan with various earnings models using many interest rate scenarios that differ in the direction of interest rate changes, the degree of change over time, the speed of change and the projected shape of the yield curve. For example, using the current composition of the Company's balance sheet and assuming an increase of 100 basis points (“bp”) in the federal funds rate and an increase of 60 bp in the 10 year Constant Maturity Treasury Bond yield during the same period, earnings are not estimated to change by a meaningful amount compared to the Company's most likely net income plan for the twelve months ending June 30, 2013. Simulation estimates depend on, and will change with, the size and mix of the actual and projected balance sheet at the time of each simulation. In the current operating environment, Management’s objective is to maintain a “neutral” to slightly “asset sensitive” interest rate risk position. The Company does not currently engage in trading activities or use derivative instruments to control interest rate risk, even though such activities may be permitted with the approval of the Company's Board of Directors.

Market Risk - Equity Markets

Equity price risk can affect the Company. As an example, any preferred or common stock holdings, as permitted by banking regulations, can fluctuate in value. Management regularly assesses the extent and duration of any declines in market value, the causes of such declines, the likelihood of a recovery in market value, and its intent to hold securities until a recovery in value occurs. Declines in value of preferred or common stock holdings that are deemed “other than temporary” could result in loss recognition in the Company's income statement.

Fluctuations in the Company's common stock price can impact the Company's financial results in several ways. First, the Company has regularly repurchased and retired its common stock; the market price paid to retire the Company's common stock can affect the level of the Company's shareholders' equity, cash flows and shares outstanding. Second, the Company's common stock price impacts the number of dilutive equivalent shares used to compute diluted earnings per share. Third, fluctuations in the Company's common stock price can motivate holders of options to purchase Company common stock through the exercise of such options thereby increasing the number of shares outstanding. Finally, the amount of compensation expense associated with share based compensation fluctuates with changes in and the volatility of the Company's common stock price.

Market Risk - Other

Market values of loan collateral can directly impact the level of loan charge-offs and the provision for loan losses. Market values of mortgages or other assets serving as collateral for investment securities can directly impact the credit quality of the Company’s investment portfolio requiring the Company to recognize other than temporary impairment charges. Other types of market risk, such as foreign currency exchange risk and commodity price risk, are not significant in the normal course of the Company's business activities.

Liquidity and Funding

The Company's routine sources of liquidity are operating earnings, investment securities, consumer and other loans, deposits, and other borrowed funds. During the first half of 2012, operating cash flows provided $48 million to pay $21 million in shareholder dividends and $26 million applied to repurchase Company common stock. During the first half of 2011, the Company’s operating activities generated $62 million in liquidity providing most of the funds to pay common shareholders $21 million in dividends, fund $32 million in stock repurchases and reduce short-term borrowings by $16 million.

During the first half of 2012, investment securities provided $177 million in liquidity from paydowns, maturities and sales, and loans provided $195 million in liquidity from scheduled payments, payoffs and maturities, net of loan fundings. Securities of $543 million were purchased. During the first half of 2011, investment securities provided $165 million in liquidity from paydowns and maturities, and loans provided $146 million in liquidity from scheduled payments, payoffs and maturities, net of loan fundings. The Company purchased securities of $295 million.

At June 30, 2012, the Company’s assets included $321 million in cash and amounts due from other banks from daily transaction settlements. The Bank maintains cash balances for its branches of approximately $50 million to meet the routine needs of its customers. Further, the Bank must maintain approximately $30 million at the Federal Reserve Bank (FRB) to meet its reserve requirement; this reserve requirement is reduced by cash held for branches. Excluding cash for branch needs and cash required at the FRB, cash and amounts due from other banks from daily transaction settlements of approximately $175 million provided excess liquidity, equivalent to four percent of total deposits.

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The Company projects $228 million in additional liquidity from investment security paydowns and maturities during the twelve months ending June 30, 2013. At June 30, 2012, $658 million in residential collateralized mortgage obligations (“CMOs”) and residential mortgage backed securities (“MBSs”) were held in the Company's investment portfolios. None of the CMOs or MBSs are backed by sub-prime mortgages. The residential CMOs and MBSs provided $36 million in liquidity from paydowns during the three months ended June 30, 2012. At June 30, 2012, indirect automobile loans totaled $408 million, which were experiencing stable monthly principal payments of approximately $16 million during the second quarter of 2012.

The Company held $1.9 billion in total investment securities at June 30, 2012. Under certain deposit, borrowing and other arrangements, the Company must hold and pledge investment securities as collateral. At June 30, 2012, such collateral requirements totaled approximately $896 million. At June 30, 2012, $709 million of the Company's investment securities were classified as “available-for-sale”, and as such, could provide additional liquidity if sold, subject to the Company's ability to meet continuing collateral requirements. In addition, at June 30, 2012, the Company had customary lines for overnight borrowings from other financial institutions in excess of $700 million, under which $-0- was outstanding. Additionally, the Company has access to borrowing from the Federal Reserve. Management expects the Company could access additional long-term debt financing if desired. In Management's judgment, the Company's liquidity position is strong and asset liquidations or additional long-term debt are considered unnecessary to meet the ongoing liquidity needs of the Company.

Management will monitor the Company’s cash levels throughout 2012. Loan demand from credit-worthy borrowers will be dictated by economic and competitive conditions for the remainder of 2012. The Company aggressively solicits non-interest bearing demand deposits and money market checking deposits, which are the least sensitive to changes in interest rates. The growth of these deposit balances is subject to heightened competition, the success of the Company's sales efforts, delivery of superior customer service, new regulations and market conditions. The Company does not aggressively solicit higher-costing time deposits; as a result, Management anticipates such deposits will decline. Changes in interest rates, most notably rising interest rates, could impact deposit volumes. Depending on economic conditions, interest rate levels, and a variety of other conditions, deposit growth may be used to fund loans, reduce borrowings or purchase investment securities. However, due to concerns such as uncertainty in the general economic environment, competition and political uncertainty, loan demand and levels of customer deposits are not certain. Shareholder dividends are expected to continue subject to the Board's discretion and continuing evaluation of capital levels, earnings, asset quality and other factors.

The Company performs liquidity stress tests on a periodic basis to evaluate the sustainability of its liquidity. Under the stress testing, the Company assumes outflows of funds increase beyond expected levels. Measurement of such heightened outflows considers the composition of the Company’s deposit base, including any concentration of deposits, non-deposit funding such as short-term borrowings and Federal Home Loan Bank advances, and unfunded lending commitments. The Company evaluates its stock of highly liquid assets to meet the assumed higher levels of outflows. Highly liquid assets include cash and amounts due from other banks from daily transaction settlements, reduced by branch cash needs and FRB reserve requirement, and investment securities based on regulatory risk-weighting guidelines. Based on the results of the most recent liquidity stress test, Management is satisfied with the liquidity condition of the Bank and the Company. However, no assurance can be given the Bank or Company will not experience a period of reduced liquidity.

Westamerica Bancorporation ("Parent Company") is a separate entity and apart from Westamerica Bank (“Bank”) and must provide for its own liquidity. In addition to its operating expenses, the Parent Company is responsible for the payment of dividends declared for its shareholders, and interest and principal on outstanding debt. Substantially all of the Parent Company's revenues are obtained from subsidiary dividends and service fees. Payment of dividends to the Parent Company by the Bank is limited under California and Federal laws. The Company believes that regulatory dividend restrictions will not have an impact on the Parent Company's ability to meet its ongoing cash obligations.

Capital Resources

The Company has historically generated high levels of earnings, which provides a means of raising capital. The Company's net income as a percentage of average common equity (“return on common equity” or “ROE”) was 15.6% (annualized) in the first half of 2012, 16.1% in 2011 and 18.1% in 2010. The Company also raises capital as employees exercise stock options, which are awarded as a part of the Company's executive compensation programs to reinforce shareholders' interests in the Management of the Company. Capital raised through the exercise of stock options totaled $1 million in the first half of 2012, $14 million in 2011 and $17 million in 2010.

The Company paid dividends totaling $21 million in the first half of 2012, $42 million in 2011 and $42 million in 2010, which represent dividends per share of $0.74, $1.45 and $1.44, respectively. The Company's earnings have historically exceeded dividends paid to shareholders. The amount of earnings in excess of dividends gives the Company resources to finance growth and maintain appropriate levels of shareholders' equity. In the absence of profitable growth opportunities, the Company has repurchased and retired its common stock as another means to return capital to shareholders. The Company repurchased and retired 566 thousand shares of common stock valued at $26 million in the first half of 2012, 1.3 million shares valued at $61 million in 2011 and 533 thousand shares valued at $29 million in 2010.

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The Company's shareholders' equity decreased $715 thousand during the first half of 2012. The Company earned $42 million in net income, raised $1 million from issuance of stock in connection with exercises of employee stock options, paid $21 million in dividends, and repurchased $26 million in common stock.

The Company performs capital stress tests on a periodic basis to evaluate the sustainability of its capital. Under the stress testing, the Company assumes various scenarios such as deteriorating economic and operating conditions, unanticipated asset devaluations, and significant operational lapses. The Company measures the impact of these scenarios on its earnings and capital. Based on the results of the most recent stress tests, Management is satisfied with the capital condition of the Bank and the Company. However, no assurance can be given the Bank or Company will not experience a period of reduced earnings or a reduction in capital from unanticipated events and circumstances.

Capital to Risk-Adjusted Assets

The following summarizes the ratios of capital to risk-adjusted assets for the Company on the dates indicated:

										Minimum			Well-capitalized
	At June 30,						At December 31,			Regulatory			by Regulatory
	2012			2011			2011			Requirement			Definition
Tier I Capital		14.46	%		14.58	%		14.54	%		4.00	%		6.00	%
Total Capital		15.74	%		15.92	%		15.83	%		8.00	%		10.00	%
Leverage ratio		8.43	%		8.57	%		8.38	%		4.00	%		5.00	%

The following summarizes the ratios of capital to risk-adjusted assets for the Bank on the dates indicated:

										Minimum			Well-capitalized
	At June 30,						At December 31,			Regulatory			by Regulatory
	2012			2011			2011			Requirement			Definition
Tier I Capital		13.85	%		14.23	%		13.84	%		4.00	%		6.00	%
Total Capital		15.32	%		15.75	%		15.32	%		8.00	%		10.00	%
Leverage ratio		8.02	%		8.32	%		7.93	%		4.00	%		5.00	%

FDIC-covered assets are generally included in the 20% risk-weighted category due to loss sharing agreements, which expire on February 5, 2019 as to the residential real estate covered assets and on February 5, 2014 as to non-residential real estate covered assets. Subsequent to such dates, previously FDIC-indemnified assets will generally be included in the 100% risk-weight category.

On June 7, 2012, the Federal Reserve Board invited comment on three proposed rules intended to improve the quality and increase the quantity of capital in the banking industry. The proposals’ provisions which would most affect the regulatory capital requirements of the Company and the Bank:

·   Redefine the type of capital which qualifies as regulatory capital in a manner which is more restrictive than current rules,

·   Introduce a new “Common Equity Tier 1” capital measurement,

·   Establish higher minimum levels of capital,

·   Introduce a “capital conservation buffer,”

·   Increase the risk-weighting of certain assets and commitments, in particular construction loans, loans on nonaccrual status, loans 90 days or more past due, short-term credit commitments, and deferred tax assets, and

·   Alter the risk-weightings on residential real estate loans based on loan quality (underwriting standards and terms) and the loan-to-value ratio determined at time of origination or subsequent restructuring or modification.

Under the proposals, any bank which is unable to maintain its “capital conservation buffer” will be restricted in the payment of shareholder distributions, as an example dividends and share repurchases, and restricted in the payment of discretionary executive compensation. The proposals have phase-in schedules for the various provisions; the higher minimum capital requirements and changed risk-weightings are fully phased-in by January 1, 2015 and the “capital conservation buffer” is fully phased-in by January 1, 2019.

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These proposals do not supersede the Federal Deposit Insurance Corporation Improvement Act (FDICIA) requiring federal banking agencies to take prompt corrective action (PCA) to resolve problems of insured depository institutions. The proposals would revise the PCA thresholds to incorporate the proposed regulatory capital minimums, including the newly proposed “common equity tier 1” ratios.

Management has evaluated the current capital structure and assets for the Company and the Bank as of June 30, 2012 assuming (1) the Federal Reserve’s proposed rules were currently fully phased-in and (2) the FDIC indemnification of the Bank’s purchased covered assets had expired, causing an increase in risk-weightings on such assets. Based on this evaluation, the Company and the Bank currently maintain capital in excess of all the proposed regulatory ratios, as follows:

							Proposed			Proforma Measurements as of
	Proposed						Minimum			June 30, 2012 Assuming New
	Minimum			"Well-capitalized"			Plus "Capital			Proposals Fully Phased-in and
	Capital			Under PCA			Conservation			Covered Asset Indemnification
	Requirement			Proposal			Buffer"			Expired
										Company			Bank
Capital Measurement:
Leverage		4.00	%		5.00	%		4.00	%		8.65	%		8.22	%
Common Equity Tier 1		4.50	%		6.50	%		7.00	%		13.06	%		12.47	%
Tier I Capital		6.00	%		8.00	%		8.50	%		13.06	%		12.47	%
Total Capital		8.00	%		10.00	%		10.50	%		14.12	%		13.54	%

The Company and the Bank intend to maintain regulatory capital in excess of the highest regulatory standard. The Company and the Bank routinely project capital levels by analyzing forecasted earnings, credit quality, securities valuations, shareholder dividends, asset volumes, share repurchase activity, stock option exercise proceeds, and other factors. Based on current capital projections, the Company and the Bank expect to maintain regulatory capital levels exceeding the highest effective regulatory standard and pay quarterly dividends to shareholders. No assurance can be given that changes in capital management plans will not occur.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

The Company does not currently engage in trading activities or use derivative instruments to control interest rate risk, even though such activities may be undertaken with the approval of the Company's Board of Directors. Interest rate risk and asset valuation risk, as discussed above are the most significant market risks affecting the Company. Other types of market risk, such as foreign currency exchange risk, equity price risk and commodity price risk, are not significant in the normal course of the Company's business activities.

Item 4. Controls and Procedures

The Company's principal executive officer and principal financial officer have evaluated the effectiveness of the Company's “disclosure controls and procedures,” as such term is defined in Rule 13a-15(e) of the Securities Exchange Act of 1934, as amended, as of June 30, 2012. Based upon their evaluation, the principal executive officer and principal financial officer concluded that the Company's disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time period specified in the Securities and Exchange Commission’s rules and forms and are effective in ensuring that information required to be disclosed in the reports that the Company files or submits under the Exchange Act is accumulated and communicated to Management, including the chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding required disclosure. The evaluation did not identify any change in the Company's internal control over financial reporting that occurred during the quarter ended June 30, 2012 that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Due to the nature of its business, the Company is subject to various threatened or filed legal cases resulting from loan collection efforts, transaction processing for deposit accounts, employment practices and other routine business activities. The Company establishes a liability for contingent litigation losses for any legal matter when payments associated with the claims become probable and the costs can be reasonably estimated. Legal costs related to covered assets are eighty percent indemnified under loss-sharing agreements with the FDIC if certain conditions are met.

Item 1A. Risk Factors

The Company’s Form 10-K as of December 31, 2011 includes detailed disclosure about the risks faced by the Company’s business; such risks have not materially changed since the Form 10-K was filed.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(a) Previously reported on Form 8-K.

(b) None

(c) Issuer Purchases of Equity Securities

The table below sets forth the information with respect to purchases made by or on behalf of the Company or any “affiliated purchaser” (as defined in Rule 10b-18(a)(3) under the Securities Exchange Act of 1934), of common stock during the quarter ended June 30, 2012.

					(c)		(d)
					Total Number		Maximum Number
					of Shares		of Shares that May
	(a)		(b)		Purchased as Part of		Yet Be Purchased
	Total Number of		Average Price		Publicly Announced		Under the Plans
Period	Shares Purchased		Paid per Share		Plans or Programs*		or Programs
(In thousands, except per share data)
April 1
through		102	$	46.58		102		1,018
April 30
May 1
through		182		45.16		182		836
May 31
June 1
through		33		43.59		33		803
June 30
Total		317	$	45.45		317		803

* Includes 3 thousand, 5 thousand and -0- thousand shares purchased in April, May and June, respectively, by the Company in private transactions with the independent administrator of the Company's Tax Deferred Savings/Retirement Plan (ESOP). The Company includes the shares purchased in such transactions within the total number of shares authorized for purchase pursuant to the currently existing publicly announced program.

The Company repurchases shares of its common stock in the open market to optimize the Company’s use of equity capital and enhance shareholder value and with the intention of lessening the dilutive impact of issuing new shares to meet stock performance, option plans, and other ongoing requirements.

Shares were repurchased during the second quarter of 2012 pursuant to a program approved by the Board of Directors on July 28, 2011, authorizing the purchase of up to 2 million shares of the Company’s common stock from time to time prior to September 1, 2012.

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Item 3. Defaults upon Senior Securities

None

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None

Item 6. Exhibits

The exhibit list required by this item is incorporated by reference to the Exhibit Index filed with this report.

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SIGNATURES

Pursuant to the requirements of 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

(Registrant)

/s/ JOHN "ROBERT" THORSON

John "Robert" Thorson

Senior Vice President and Chief Financial Officer

(Chief Financial and Accounting Officer)

Date: August 2, 2012

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EXHIBIT INDEX

Exhibit 10 (s)*: 2012 Amended and Restated Stock Option Plan of 1995, incorporated by reference to the Company’s definitive proxy statement pursuant to Regulation 14A filed with the Securities and Exchange Commission on March 13, 2012

Exhibit 31.1:  Certification of Chief Executive Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a)

Exhibit 31.2:  Certification of Chief Financial Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a)

Exhibit 32.1: Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Exhibit 32.2:  Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Exhibit 101:  Pursuant to Rule 405 of Regulation S-T, the following financial information from the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2012, is formatted in XBRL interactive data files: (i) Consolidated Statements of Income for the three and six months ended June 30, 2012 and 2011; (ii) Consolidated Balance Sheets at June 30, 2012, and December 31, 2011; (iii) Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2012 and 2011, (iv) Consolidated Statements of Changes in Shareholders’ Equity for the six months ended June 30, 2012 and 2011; (v) Consolidated Statements of Cash Flows for the six months ended June 30, 2012 and 2011 and (vi) Notes to Consolidated Financial Statements.

* Indicates management contract or compensatory plan or arrangement

EX-31.1

EXHIBIT 31.1

CERTIFICATION UNDER SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, David L. Payne certify that:

1. I have reviewed this report on Form 10-Q of Westamerica Bancorporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/s/  David L. Payne

David L. Payne

Chairman, President and Chief Executive Officer

Date: August 2, 2012

EX-31.2

EXHIBIT 31.2

CERTIFICATION UNDER  SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, John "Robert" Thorson certify that:

1. I have reviewed this report on Form 10-Q of Westamerica Bancorporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/s/  John "Robert" Thorson

John “Robert” Thorson

Senior Vice President and Chief Financial Officer

Date: August 2, 2012

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Westamerica Bancorporation (the Company) on Form 10-Q for the period ended June 30, 2012 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, David L. Payne, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/  David L. Payne

David L. Payne

Chairman, President and Chief Executive Officer

Date: August 2, 2012

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TOSECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Westamerica Bancorporation (the Company) on Form 10-Q for the period ended June 30, 2012 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, John "Robert" Thorson, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/  John "Robert" Thorson

John “Robert” Thorson

Senior Vice President and Chief Financial Officer

Date: August 2, 2012

XML

Note 4 - Loans and Allowance for Credit Losses (Detail) - Impaired loans (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Commercial [Member]
Impaired loans with no related allowance recorded, recorded investment	$ 9,010	$ 5,483
Impaired loans with no related allowance recorded, unpaid principal balance	17,574	11,727
Impaired loans with an allowance recorded, recorded investment	3,097
Impaired loans with an allowance recorded, unpaid principal balance	3,123
Impaired loans with an allowance recorded, related allowance	1,297
Recorded Investment	12,107	5,483
Unpaid Principal Balance	20,697	11,727
Related Allowance	1,297
Commercial Real Estate Loans [Member]
Impaired loans with no related allowance recorded, recorded investment	30,713	33,095
Impaired loans with no related allowance recorded, unpaid principal balance	39,297	43,793
Impaired loans with an allowance recorded, recorded investment		1,399
Impaired loans with an allowance recorded, unpaid principal balance		1,399
Impaired loans with an allowance recorded, related allowance		229
Recorded Investment	30,713	34,494
Unpaid Principal Balance	39,297	45,192
Related Allowance		229
Construction [Member]
Impaired loans with no related allowance recorded, recorded investment	6,433	4,194
Impaired loans with no related allowance recorded, unpaid principal balance	10,657	7,209
Impaired loans with an allowance recorded, recorded investment	3,068	3,126
Impaired loans with an allowance recorded, unpaid principal balance	3,183	3,183
Impaired loans with an allowance recorded, related allowance	2,124	1,794
Recorded Investment	9,501	7,320
Unpaid Principal Balance	13,840	10,392
Related Allowance	2,124	1,794
Residential Real Estate Loans [Member]
Impaired loans with no related allowance recorded, recorded investment	982
Impaired loans with no related allowance recorded, unpaid principal balance	984
Impaired loans with an allowance recorded, recorded investment	621
Impaired loans with an allowance recorded, unpaid principal balance	621
Impaired loans with an allowance recorded, related allowance	90
Recorded Investment	1,603
Unpaid Principal Balance	1,605
Related Allowance	90
Consumer Installment And Other [Member]
Impaired loans with no related allowance recorded, recorded investment	2,851	2,990
Impaired loans with no related allowance recorded, unpaid principal balance	3,226	3,658
Recorded Investment	2,851	2,990
Unpaid Principal Balance	$ 3,226	$ 3,658

XML

Note 10 - Earnings Per Common Share (Detail) - Earnings per common share and diluted earnings per common share (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Net income applicable to common equity (numerator) (in Dollars)	$ 20,964	$ 21,269	$ 41,969	$ 43,651
Weighted average number of common shares outstanding - basic	27,744	28,771	27,897	28,895
Add exercise of options reduced by the number of shares that could have been purchased with the proceeds of such exercise	46	152	54	178
Weighted average number of common shares outstanding - diluted (denominator)	27,790	28,923	27,951	29,073
Diluted earnings per common share (in Dollars per share)	$ 0.75	$ 0.74	$ 1.50	$ 1.50
Basic earnings per common share (in Dollars per share)	$ 0.76	$ 0.74	$ 1.50	$ 1.51

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Note 8 - Fair Value Measurements (Detail) - Assets measured at fair value on a recurring basis (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Fair Value	$ 708,717	$ 638,753
US Treasury Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value	3,573	3,596
US Treasury Securities [Member]
Fair Value	3,573	3,596
US Government-sponsored Enterprises Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value	100,899	117,472
US Government-sponsored Enterprises Debt Securities [Member]
Fair Value	100,899	117,472
US States and Political Subdivisions Debt Securities [Member] | Federally Tax-Exempt - California [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value	80,105	80,307
US States and Political Subdivisions Debt Securities [Member] | Federally Tax-Exempt - California [Member]
Fair Value	80,105	80,307
US States and Political Subdivisions Debt Securities [Member] | Federally Tax-Exempt - Other States [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value	149,347	159,031
US States and Political Subdivisions Debt Securities [Member] | Federally Tax-Exempt - Other States [Member]
Fair Value	149,347	159,031
US States and Political Subdivisions Debt Securities [Member] | Taxable - California [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value	1,319	1,345
US States and Political Subdivisions Debt Securities [Member] | Taxable - California [Member]
Fair Value	1,319	1,345
US States and Political Subdivisions Debt Securities [Member] | Taxable - Other States [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value	5,421	5,410
US States and Political Subdivisions Debt Securities [Member] | Taxable - Other States [Member]
Fair Value	5,421	5,410
US States and Political Subdivisions Debt Securities [Member]
Fair Value	236,192	246,093
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Guaranteed By GNMA [Member]
Fair Value	33,848	37,112
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Issued by FNMA and FHLMC [Member]
Fair Value	43,590	53,296
Residential Mortgage Backed Securities [Member] | Guaranteed By GNMA [Member]
Fair Value	33,848	37,112
Residential Mortgage Backed Securities [Member] | Issued by FNMA and FHLMC [Member]
Fair Value	43,590	53,296
Residential Mortgage Backed Securities [Member]
Fair Value	77,438	90,408
Residential Collateralized Mortgage Obligations [Member] | Issued Or Guaranteed By FNMA, FHLMC, Or GNMA [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value	41,609	46,130
Residential Collateralized Mortgage Obligations [Member] | Issued Or Guaranteed By FNMA, FHLMC, Or GNMA [Member]
Fair Value	41,609	46,130
Residential Collateralized Mortgage Obligations [Member] | Collateralized Securities, Other [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value	3,996	5,034
Residential Collateralized Mortgage Obligations [Member] | Collateralized Securities, Other [Member]
Fair Value	3,996	5,034
Residential Collateralized Mortgage Obligations [Member]
Fair Value	45,605	51,164
Commercial Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value	4,370	4,530
Commercial Mortgage Backed Securities [Member]
Fair Value	4,370	4,530
Asset-backed Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value	16,746	7,306
Asset-backed Securities [Member]
Fair Value	16,746	7,306
FHLMC And FNMA Stock [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value	2,691	1,847
FHLMC And FNMA Stock [Member]
Fair Value	2,691	1,847
Domestic Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value	216,692	112,199
Domestic Corporate Debt Securities [Member]
Fair Value	216,692	112,199
Other Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value	2,560	2,186
Other Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value	1,951	1,952
Other Securities [Member]
Fair Value	4,511	4,138
Fair Value, Inputs, Level 1 [Member]
Fair Value	109,723	125,101
Fair Value, Inputs, Level 2 [Member]
Fair Value	$ 598,994	$ 513,652

XML

Note 7 - Commitments and Contingent Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Unfunded Loan Commitments	$ 329,779	$ 348,621
Financial Standby Letter of Credit [Member]
Letters of Credit Outstanding, Amount	26,377	27,221
Standby Letters of Credit [Member]
Letters of Credit Outstanding, Amount	$ 454	$ 454

XML

Note 4 - Loans and Allowance for Credit Losses (Detail) - Changes in the accretable yield for purchased loans (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Balance at the beginning of the period	$ 9,990	$ 6,089
Reclassification from nonaccretable difference	3,816	16,906
Accretion	(9,804)	(13,005)
Reduction in FDIC indemnification asset	7,373	9,315
Increase in interest income	(2,431)	(3,690)
Balance at the end of the period	$ 4,002	$ 9,990

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Note 3 - Investment Securities (Detail) - Schedule of amortized cost, unrealized gains and losses accumulated in other comprehensive income, and fair value - available for sale investment securities portfolio (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Amortized Cost	$ 685,893	$ 618,765
Gross Unrealized Gains	25,456	22,924
Gross Unrealized Losses	(2,632)	(2,936)
Fair Value	708,717	638,753
US Treasury Securities [Member]
Amortized Cost	3,528	3,537
Gross Unrealized Gains	45	59
Fair Value	3,573	3,596
US Government-sponsored Enterprises Debt Securities [Member]
Amortized Cost	100,493	117,150
Gross Unrealized Gains	407	375
Gross Unrealized Losses	(1)	(53)
Fair Value	100,899	117,472
Residential Mortgage Backed Securities [Member]
Amortized Cost	72,394	84,961
Gross Unrealized Gains	5,046	5,457
Gross Unrealized Losses	(2)	(10)
Fair Value	77,438	90,408
Commercial Mortgage Backed Securities [Member]
Amortized Cost	4,306	4,506
Gross Unrealized Gains	64	27
Gross Unrealized Losses		(3)
Fair Value	4,370	4,530
US States and Political Subdivisions Debt Securities [Member]
Amortized Cost	223,237	234,522
Gross Unrealized Gains	13,234	11,839
Gross Unrealized Losses	(279)	(268)
Fair Value	236,192	246,093
Residential Collateralized Mortgage Obligations [Member]
Amortized Cost	43,959	49,111
Gross Unrealized Gains	1,646	2,053
Fair Value	45,605	51,164
Asset-backed Securities [Member]
Amortized Cost	16,964	7,566
Gross Unrealized Losses	(218)	(260)
Fair Value	16,746	7,306
FHLMC And FNMA Stock [Member]
Amortized Cost	824	824
Gross Unrealized Gains	1,871	1,027
Gross Unrealized Losses	(4)	(4)
Fair Value	2,691	1,847
Domestic Corporate Debt Securities [Member]
Amortized Cost	217,952	114,286
Gross Unrealized Gains	818	203
Gross Unrealized Losses	(2,078)	(2,290)
Fair Value	216,692	112,199
Other Securities [Member]
Amortized Cost	2,236	2,302
Gross Unrealized Gains	2,325	1,884
Gross Unrealized Losses	(50)	(48)
Fair Value	$ 4,511	$ 4,138

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Note 8 - Fair Value Measurements (Detail) - Fair value estimates for financial instruments, excluding financial instruments recorded at fair value on a recurring basis (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
US Government-sponsored Enterprises Debt Securities [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Investment securities held to maturity:
Investment securities held to maturity	$ 4,287
US Government-sponsored Enterprises Debt Securities [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Investment securities held to maturity:
Investment securities held to maturity	4,316
US Government-sponsored Enterprises Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Investment securities held to maturity:
Investment securities held to maturity	4,316
US States and Political Subdivisions Debt Securities [Member] | Federally Tax-Exempt - California [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Investment securities held to maturity:
Investment securities held to maturity	97,154
US States and Political Subdivisions Debt Securities [Member] | Federally Tax-Exempt - California [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Investment securities held to maturity:
Investment securities held to maturity	100,805
US States and Political Subdivisions Debt Securities [Member] | Federally Tax-Exempt - California [Member] | Fair Value, Inputs, Level 2 [Member]
Investment securities held to maturity:
Investment securities held to maturity	100,805
US States and Political Subdivisions Debt Securities [Member] | Federally Tax-Exempt - Other States [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Investment securities held to maturity:
Investment securities held to maturity	552,235
US States and Political Subdivisions Debt Securities [Member] | Federally Tax-Exempt - Other States [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Investment securities held to maturity:
Investment securities held to maturity	569,409
US States and Political Subdivisions Debt Securities [Member] | Federally Tax-Exempt - Other States [Member] | Fair Value, Inputs, Level 2 [Member]
Investment securities held to maturity:
Investment securities held to maturity	569,409
US States and Political Subdivisions Debt Securities [Member] | Taxable - California [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Investment securities held to maturity:
Investment securities held to maturity	7,855
US States and Political Subdivisions Debt Securities [Member] | Taxable - California [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Investment securities held to maturity:
Investment securities held to maturity	7,892
US States and Political Subdivisions Debt Securities [Member] | Taxable - California [Member] | Fair Value, Inputs, Level 2 [Member]
Investment securities held to maturity:
Investment securities held to maturity	7,892
US States and Political Subdivisions Debt Securities [Member] | Taxable - Other States [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Investment securities held to maturity:
Investment securities held to maturity	10,142
US States and Political Subdivisions Debt Securities [Member] | Taxable - Other States [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Investment securities held to maturity:
Investment securities held to maturity	10,224
US States and Political Subdivisions Debt Securities [Member] | Taxable - Other States [Member] | Fair Value, Inputs, Level 2 [Member]
Investment securities held to maturity:
Investment securities held to maturity	10,224
US States and Political Subdivisions Debt Securities [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | Guaranteed By GNMA [Member]
Investment securities held to maturity:
Investment securities held to maturity	15,614
US States and Political Subdivisions Debt Securities [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | Issued by FNMA and FHLMC [Member]
Investment securities held to maturity:
Investment securities held to maturity	66,732
US States and Political Subdivisions Debt Securities [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Guaranteed By GNMA [Member]
Investment securities held to maturity:
Investment securities held to maturity	15,969
US States and Political Subdivisions Debt Securities [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Issued by FNMA and FHLMC [Member]
Investment securities held to maturity:
Investment securities held to maturity	68,200
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Guaranteed By GNMA [Member]
Investment securities held to maturity:
Investment securities held to maturity	15,969
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Issued by FNMA and FHLMC [Member]
Investment securities held to maturity:
Investment securities held to maturity	68,200
Residential Collateralized Mortgage Obligations [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | Issued Or Guaranteed By FNMA, FHLMC, Or GNMA [Member]
Investment securities held to maturity:
Investment securities held to maturity	439,404
Residential Collateralized Mortgage Obligations [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | Collateralized Securities, Other [Member]
Investment securities held to maturity:
Investment securities held to maturity	13,223
Residential Collateralized Mortgage Obligations [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Issued Or Guaranteed By FNMA, FHLMC, Or GNMA [Member]
Investment securities held to maturity:
Investment securities held to maturity	442,801
Residential Collateralized Mortgage Obligations [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Collateralized Securities, Other [Member]
Investment securities held to maturity:
Investment securities held to maturity	13,197
Residential Collateralized Mortgage Obligations [Member] | Issued Or Guaranteed By FNMA, FHLMC, Or GNMA [Member] | Fair Value, Inputs, Level 2 [Member]
Investment securities held to maturity:
Investment securities held to maturity	442,801
Residential Collateralized Mortgage Obligations [Member] | Collateralized Securities, Other [Member] | Fair Value, Inputs, Level 2 [Member]
Investment securities held to maturity:
Investment securities held to maturity	13,197
Noninterest Bearing [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Deposits:
Deposits	1,573,188
Noninterest Bearing [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Deposits:
Deposits	1,573,188
Noninterest Bearing [Member] | Fair Value, Inputs, Level 1 [Member]
Deposits:
Deposits	1,573,188
Transaction [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Deposits:
Deposits	742,633
Transaction [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Deposits:
Deposits	742,633
Transaction [Member] | Fair Value, Inputs, Level 1 [Member]
Deposits:
Deposits	742,633
Savings [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Deposits:
Deposits	1,136,876
Savings [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Deposits:
Deposits	1,136,876
Savings [Member] | Fair Value, Inputs, Level 1 [Member]
Deposits:
Deposits	1,136,876
Time [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Deposits:
Deposits	755,802
Time [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Deposits:
Deposits	758,350
Time [Member] | Fair Value, Inputs, Level 3 [Member]
Deposits:
Deposits	758,350
Carrying (Reported) Amount, Fair Value Disclosure [Member]
Cash and due from banks	320,925	530,045
Investment securities held to maturity:
Investment securities held to maturity	1,206,646	922,803
Loans	2,285,696	2,491,209
Other assets - FDIC receivable	20,885	40,113
Deposits:
Deposits	4,208,499	4,249,921
Short-term borrowed funds	81,582	115,689
Federal Home Loan Bank advances	25,911	26,023
Term repurchase agreement	10,000	10,000
Debt financing	15,000	15,000
Estimate of Fair Value, Fair Value Disclosure [Member]
Cash and due from banks	320,925	530,045
Investment securities held to maturity:
Investment securities held to maturity	1,232,813	947,493
Loans	2,307,635	2,515,095
Other assets - FDIC receivable	20,861	40,046
Deposits:
Deposits	4,211,047	4,250,164
Short-term borrowed funds	81,582	115,689
Federal Home Loan Bank advances	26,364	26,532
Term repurchase agreement	10,166	10,242
Debt financing	15,485	15,222
Fair Value, Inputs, Level 1 [Member]
Cash and due from banks	320,925
Investment securities held to maturity:
Investment securities held to maturity	4,316
Deposits:
Deposits	3,452,697
Short-term borrowed funds	81,582
Federal Home Loan Bank advances	26,364
Fair Value, Inputs, Level 2 [Member]
Investment securities held to maturity:
Investment securities held to maturity	1,228,497
Deposits:
Term repurchase agreement	10,166
Debt financing	15,485
Fair Value, Inputs, Level 3 [Member]
Investment securities held to maturity:
Loans	2,307,635
Other assets - FDIC receivable	20,861
Deposits:
Deposits	$ 758,350

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Note 5 - Concentration of Credit Risk (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Loan Commitments And Standby Letters Of Credit (in Dollars)	$ 73,497	$ 77,988
Commercial Real Estate Loans [Member]
Loan To Value Ratio Requirement	75.00%
Residential Real Estate Loans [Member]
Loan To Value Ratio Requirement	80.00%

XML

Note 4 - Loans and Allowance for Credit Losses (Detail) - Loans by delinquency and nonaccrual status (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012		Dec. 31, 2011
Current and Accruing	$ 2,231,509		$ 2,411,959
30-89 Days Past Due and Accruing	38,591		56,459
Past Due 90 days or More and Accruing	665		2,322
Nonaccrual	46,454		53,066
Total Loans	2,317,219		2,523,806
Originated Loans [Member] | Commercial Portfolio Segment [Member]
Current and Accruing	347,329		388,322
30-89 Days Past Due and Accruing	2,583		6,953
Nonaccrual	7,675		3,171
Total Loans	357,587		398,446
Originated Loans [Member] | Commercial Real Estate Portfolio Segment [Member]
Current and Accruing	646,856		679,633
30-89 Days Past Due and Accruing	11,385		16,967
Past Due 90 days or More and Accruing			1,626
Nonaccrual	4,394		6,429
Total Loans	662,635		704,655
Originated Loans [Member] | Construction Portfolio Segment [Member]
Current and Accruing	9,400		10,664
30-89 Days Past Due and Accruing	87		570
Nonaccrual	3,068		3,346
Total Loans	12,555		14,580
Originated Loans [Member] | Residential Portfolio Segment [Member]
Current and Accruing	247,477		262,917
30-89 Days Past Due and Accruing	423		5,648
Nonaccrual	1,399		2,546
Total Loans	249,299		271,111
Originated Loans [Member] | Consumer Portfolio Segment [Member]
Current and Accruing	465,145		467,015
30-89 Days Past Due and Accruing	3,822		6,324
Past Due 90 days or More and Accruing	525		421
Nonaccrual	10		55
Total Loans	469,502		473,815
Originated Loans [Member]
Current and Accruing	1,716,207		1,808,551
30-89 Days Past Due and Accruing	18,300		36,462
Past Due 90 days or More and Accruing	525		2,047
Nonaccrual	16,546		15,547
Total Loans	1,751,578		1,862,607
Purchased Non-Covered Loans [Member]
Current and Accruing	80,850		101,585
30-89 Days Past Due and Accruing	1,668		1,095
Past Due 90 days or More and Accruing			34
Nonaccrual	19,872		23,207
Total Loans	102,390		125,921
Purchased Covered Loans [Member]
Current and Accruing	434,452		501,823
30-89 Days Past Due and Accruing	18,623		18,902
Past Due 90 days or More and Accruing	140		241
Nonaccrual	10,036		14,312
Total Loans	463,251	[1]	535,278	[1]
Commercial Portfolio Segment [Member]
Total Loans	446,050		513,362
Commercial Real Estate Portfolio Segment [Member]
Total Loans	1,021,329		1,114,496
Construction Portfolio Segment [Member]
Total Loans	26,430		34,437
Residential Portfolio Segment [Member]
Total Loans	262,107		286,727
Consumer Portfolio Segment [Member]
Total Loans	$ 561,303		$ 574,784

[1] Credit risk profile reflects internally assigned grade of purchased covered loans without regard to FDIC indemnification.

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Note 9 - Debt Financing (Detail) - Schedule of debt financing and notes payable (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Senior fixed-rate note	$ 15,000	$ 15,000
Total debt financing	$ 15,000	$ 15,000

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Note 8 - Fair Value Measurements (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010
FDIC Indemnification Rate	80.00%
Loans and Leases Receivable, Allowance	$ 31,523	$ 31,883	$ 32,597	$ 33,008	$ 34,321	$ 35,636
Purchased Covered Loans [Member]
Loans and Leases Receivable, Allowance	240	139
Fair Value Discount, Credit Default Risk, Purchased Loans	30,366		46,282
Purchased Non-Covered Loans [Member]
Fair Value Discount, Credit Default Risk, Purchased Loans	$ 8,028		$ 10,211

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Note 2 - Accounting Policies

6 Months Ended

Jun. 30, 2012

Significant Accounting Policies [Text Block]

Note 2: Accounting Policies

The Company’s accounting policies are discussed in Note 1 to the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011.  Certain amounts in prior periods have been reclassified to conform to the current presentation.

Certain accounting policies underlying the preparation of these financial statements require Management to make estimates and judgments. These estimates and judgments may significantly affect reported amounts of assets and liabilities, revenues and expenses, and disclosures of contingent assets and liabilities. Management exercises judgment to estimate the appropriate level of the allowance for credit losses, the acquisition date fair value of purchased loans, and the evaluation of other than temporary impairment of investment securities, which are discussed in the Company’s accounting policies.

Recently Adopted Accounting Standards

FASB ASU 2011-03, Reconsideration of Effective Control for Repurchase Agreements, was issued April 2011 addressing the accounting for repurchase agreements and other agreements that both entitle and obligate a transferor to repurchase or redeem financial assets before their maturity.  The amendments remove from the assessment of effective control (1) the criterion requiring the transferor to have the ability to repurchase or redeem the financial assets on substantially the agreed terms, even in the event of default by the transferee, and (2) the collateral maintenance implementation guidance related to that criterion.  The Company adopted the provisions of the Update in the first quarter of 2012 with prospective application to new transactions or existing transactions modified on or after January 1, 2012. The adoption of the Update did not have a material effect on the Company’s financial statements at the date of adoption.

 FASB ASU 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs, was issued May 2011 as a result of the FASB and International Accounting Standards Board’s (IASB) goal to develop common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with U.S. generally accepted accounting principles and International Financial Reporting Standards. The Company adopted the provisions of the Update in the first quarter of 2012 with prospective application, resulting in expanded fair value disclosure. The adoption of the Update did not have a material effect on the Company’s financial statements at the date of adoption.

FASB ASU 2011-05, Presentation of Comprehensive Income, was issued June 2011 requiring that all changes in stockholders’ equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements.  This Update also requires that reclassification adjustments for items that are reclassified from other comprehensive income to net income be presented on the face of the financial statements. The Company adopted the provisions of the Update in the first quarter of 2012 with retrospective application, resulting in the addition of a new financial statement titled “Consolidated Statements of Comprehensive Income”.

FASB ASU 2011-12, Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05, was issued December 2011 updating and superseding certain pending paragraphs relating to the presentation on the face of the financial statements the effects of reclassifications out of accumulated other comprehensive income on the components of net income and other comprehensive income.  This Update was effective concurrent with ASU 2011-05, Presentation of Comprehensive Income, and did not have a material effect on the Company’s financial statements at the date of adoption.

FASB ASU 2011-08, Testing for Goodwill Impairment, was issued September 2011 giving an entity the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, an entity determines it is more likely than not that the fair value of a reporting unit is more than its carrying amount, then performing the two-step impairment test is unnecessary. However, if an entity concludes otherwise, then it is required to perform the first step of the two-step impairment test by calculating the fair value of the reporting unit and comparing the fair value with the carrying amount of the reporting unit. If the carrying amount of a reporting unit exceeds its fair value, then the entity is required to perform the second step of the goodwill impairment test to measure the amount of the impairment loss, if any. Under the amendments in this Update, an entity has the option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to performing the first step of the two-step goodwill impairment test. An entity may resume performing the qualitative assessment in any subsequent period. The Company adopted the provisions of the Update in the first quarter of 2012. The adoption of the Update did not have a material effect on the Company’s financial statements at the date of adoption.

Recently Issued Accounting Standards

FASB ASU 2011-11, Disclosures about Offsetting Assets and Liabilities, was issued December 2011 to require an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. An entity is required to apply the amendments for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented.  The Update will not have a material effect on the Company’s financial statements at the date of adoption.

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Note 6 - Goodwill and Identifiable Intangible Assets (Detail) - Schedule of carrying values of goodwill (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
June 30, 2012	$ 121,673	$ 121,673
December 31, 2011	$ 121,673	$ 121,673

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Note 3 - Investment Securities (Detail) - Schedule of interest income from investment securities (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Taxable	$ 5,348	$ 4,223	$ 10,038	$ 7,980
Tax-exempt	7,808	7,593	15,760	14,967
Total interest income from investment securities	$ 13,156	$ 11,816	$ 25,798	$ 22,947

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Note 3 - Investment Securities (Detail) - Schedule of gross unrealized losses - investments (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Available for sale securities, less than 12 months, fair value	$ 89,889	$ 76,345
Available for sale securities, less than 12 months, unrealized losses	(956)	(1,640)
Available for sale securities, 12 months or longer, fair value	59,992	49,848
Available for sale securities, 12 months or longer, unrealized losses	(1,676)	(1,296)
Available for sale securities, total, fair value	149,881	126,193
Available for sale securities, total, unrealized losses	(2,632)	(2,936)
Held to maturity securities, less than 12 months, fair value	166,699	102,413
Held to maturity securities, less than 12 months, unrealized losses	(1,322)	(784)
Held to maturity securities, 12 months or longer, fair value	18,570	21,884
Held to maturity securities, 12 months or longer, unrealized losses	(244)	(2,420)
Held to maturity securities, total, fair value	185,269	124,297
Held to maturity securities, total, unrealized losses	(1,566)	(3,204)
Residential Mortgage Backed Securities [Member]
Held to maturity securities, less than 12 months, fair value	21,030	14,032
Held to maturity securities, less than 12 months, unrealized losses	(73)	(77)
Held to maturity securities, total, fair value	21,030	14,032
Held to maturity securities, total, unrealized losses	(73)	(77)
US States and Political Subdivisions Debt Securities [Member]
Held to maturity securities, less than 12 months, fair value	70,381	38,026
Held to maturity securities, less than 12 months, unrealized losses	(853)	(334)
Held to maturity securities, 12 months or longer, fair value	4,641	6,441
Held to maturity securities, 12 months or longer, unrealized losses	(29)	(162)
Held to maturity securities, total, fair value	75,022	44,467
Held to maturity securities, total, unrealized losses	(882)	(496)
Residential Collateralized Mortgage Obligations [Member]
Held to maturity securities, less than 12 months, fair value	75,288	50,355
Held to maturity securities, less than 12 months, unrealized losses	(396)	(373)
Held to maturity securities, 12 months or longer, fair value	13,929	15,443
Held to maturity securities, 12 months or longer, unrealized losses	(215)	(2,258)
Held to maturity securities, total, fair value	89,217	65,798
Held to maturity securities, total, unrealized losses	(611)	(2,631)
US Government-sponsored Enterprises Debt Securities [Member]
Available for sale securities, less than 12 months, fair value	4,997	35,051
Available for sale securities, less than 12 months, unrealized losses	(1)	(53)
Available for sale securities, total, fair value	4,997	35,051
Available for sale securities, total, unrealized losses	(1)	(53)
Residential Mortgage Backed Securities [Member]
Available for sale securities, less than 12 months, fair value	7	3,443
Available for sale securities, less than 12 months, unrealized losses		(10)
Available for sale securities, 12 months or longer, fair value	984
Available for sale securities, 12 months or longer, unrealized losses	(2)
Available for sale securities, total, fair value	991	3,443
Available for sale securities, total, unrealized losses	(2)	(10)
US States and Political Subdivisions Debt Securities [Member]
Available for sale securities, less than 12 months, fair value	3,663	5,803
Available for sale securities, less than 12 months, unrealized losses	(71)	(61)
Available for sale securities, 12 months or longer, fair value	11,705	15,015
Available for sale securities, 12 months or longer, unrealized losses	(208)	(207)
Available for sale securities, total, fair value	15,368	20,818
Available for sale securities, total, unrealized losses	(279)	(268)
Asset-backed Securities [Member]
Available for sale securities, less than 12 months, fair value	10,194
Available for sale securities, less than 12 months, unrealized losses	(6)
Available for sale securities, 12 months or longer, fair value	6,552	7,306
Available for sale securities, 12 months or longer, unrealized losses	(212)	(260)
Available for sale securities, total, fair value	16,746	7,306
Available for sale securities, total, unrealized losses	(218)	(260)
FHLMC And FNMA Stock [Member]
Available for sale securities, 12 months or longer, fair value	1	1
Available for sale securities, 12 months or longer, unrealized losses	(4)	(4)
Available for sale securities, total, fair value	1	1
Available for sale securities, total, unrealized losses	(4)	(4)
Domestic Corporate Debt Securities [Member]
Available for sale securities, less than 12 months, fair value	71,028	32,048
Available for sale securities, less than 12 months, unrealized losses	(878)	(1,516)
Available for sale securities, 12 months or longer, fair value	38,799	24,226
Available for sale securities, 12 months or longer, unrealized losses	(1,200)	(774)
Available for sale securities, total, fair value	109,827	56,274
Available for sale securities, total, unrealized losses	(2,078)	(2,290)
Other Securities [Member]
Available for sale securities, 12 months or longer, fair value	1,951	1,953
Available for sale securities, 12 months or longer, unrealized losses	(50)	(48)
Available for sale securities, total, fair value	1,951	1,953
Available for sale securities, total, unrealized losses	(50)	(48)
Commercial Mortgage Backed Securities [Member]
Available for sale securities, 12 months or longer, fair value		1,347
Available for sale securities, 12 months or longer, unrealized losses		(3)
Available for sale securities, total, fair value		1,347
Available for sale securities, total, unrealized losses		$ (3)

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Note 6 - Goodwill and Identifiable Intangible Assets (Detail) - Schedule of gross carrying amount of identifiable intangible assets and accumulated amortization (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Gross Carrying Amount	$ 67,108	$ 67,108
Accumulated Amortization	(41,220)	(38,479)
Core Deposits [Member]
Gross Carrying Amount	56,808	56,808
Accumulated Amortization	(32,551)	(30,070)
Mechant Draft Processing [Member]
Gross Carrying Amount	10,300	10,300
Accumulated Amortization	$ (8,669)	$ (8,409)

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Note 4 - Loans and Allowance for Credit Losses (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Impaired Loans Restructured Nonaccrual Status	$ 3,068	$ 3,068		$ 3,126
Troubled Debt Restructurings During Period	1	2	1
Financing Receivable, Modifications	429	1,817	3,183
Financing Receivable, Modifications, Subsequent Default, Recorded Investment	3,068	3,068
Pledged Financial Instruments, Not Separately Reported, Loans Receivable, for Federal Home Loan Bank Debt	$ 52,233	$ 52,233		$ 69,145

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Note 4 - Loans and Allowance for Credit Losses (Detail) - Schedule of loans receivable at carrying amount (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Originated loans	$ 1,751,578	$ 1,862,607
Purchased covered loans	463,251	535,278
Purchased non-covered loans	102,390	125,921
Total	2,317,219	2,523,806
Commercial Portfolio Segment [Member] | Impaired [Member]
Purchased covered loans	347	1,296
Purchased non-covered loans	2,081	2,262
Commercial Portfolio Segment [Member] | Non Impaired [Member]
Purchased covered loans	84,721	117,777
Purchased non-covered loans	12,383	14,129
Commercial Portfolio Segment [Member] | Purchase Discount [Member]
Purchased covered loans	(10,210)	(19,535)
Purchased non-covered loans	(859)	(1,013)
Commercial Portfolio Segment [Member]
Originated loans	357,587	398,446
Total	446,050	513,362
Commercial Real Estate Portfolio Segment [Member] | Impaired [Member]
Purchased covered loans	9,642	20,697
Purchased non-covered loans	16,747	17,090
Commercial Real Estate Portfolio Segment [Member] | Non Impaired [Member]
Purchased covered loans	304,625	333,428
Purchased non-covered loans	51,031	67,045
Commercial Real Estate Portfolio Segment [Member] | Purchase Discount [Member]
Purchased covered loans	(18,855)	(22,318)
Purchased non-covered loans	(4,496)	(6,101)
Commercial Real Estate Portfolio Segment [Member]
Originated loans	662,635	704,655
Total	1,021,329	1,114,496
Construction Portfolio Segment [Member] | Impaired [Member]
Purchased covered loans	2,346	2,977
Construction Portfolio Segment [Member] | Non Impaired [Member]
Purchased covered loans	10,294	13,372
Purchased non-covered loans	1,794	6,076
Construction Portfolio Segment [Member] | Purchase Discount [Member]
Purchased covered loans	(464)	(2,473)
Purchased non-covered loans	(95)	(95)
Construction Portfolio Segment [Member]
Originated loans	12,555	14,580
Total	26,430	34,437
Residential Portfolio Segment [Member] | Non Impaired [Member]
Purchased covered loans	10,366	13,016
Purchased non-covered loans	3,438	3,598
Residential Portfolio Segment [Member] | Purchase Discount [Member]
Purchased covered loans	(522)	(524)
Purchased non-covered loans	(474)	(474)
Residential Portfolio Segment [Member]
Originated loans	249,299	271,111
Total	262,107	286,727
Consumer Portfolio Segment [Member] | Impaired [Member]
Purchased covered loans	260	262
Purchased non-covered loans	298	638
Consumer Portfolio Segment [Member] | Non Impaired [Member]
Purchased covered loans	71,016	78,735
Purchased non-covered loans	22,646	25,294
Consumer Portfolio Segment [Member] | Purchase Discount [Member]
Purchased covered loans	(315)	(1,432)
Purchased non-covered loans	(2,104)	(2,528)
Consumer Portfolio Segment [Member]
Originated loans	469,502	473,815
Total	561,303	574,784
Impaired [Member]
Purchased covered loans	12,595	25,232
Purchased non-covered loans	19,126	19,990
Non Impaired [Member]
Purchased covered loans	481,022	556,328
Purchased non-covered loans	91,292	116,142
Purchase Discount [Member]
Purchased covered loans	(30,366)	(46,282)
Purchased non-covered loans	$ (8,028)	$ (10,211)

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Note 1 - Basis of Presentation

6 Months Ended

Jun. 30, 2012

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Note 1: Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission. The results of operations reflect interim adjustments, all of which are of a normal recurring nature and, in the opinion of Management, are necessary for a fair presentation of the results for the interim periods presented. The interim results for the three and six months ended June 30, 2012 and 2011 are not necessarily indicative of the results expected for the full year. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes as well as other information included in the Company's Annual Report on Form 10-K for the year ended December 31, 2011.

The Company has evaluated events and transactions subsequent to the balance sheet date. Based on this evaluation, the Company is not aware of any events or transactions that occurred subsequent to the balance sheet date but prior to filing that would require recognition or disclosure in its consolidated financial statements.

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Note 4 - Loans and Allowance for Credit Losses (Detail) - Changes in the carrying amount of impaired purchased loans (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Purchased Covered Loans [Member]
Carrying amount at the beginning of the period	$ 18,591	$ 33,556
Reductions during the period	(9,279)	(14,965)
Carrying amount at the end of the period	9,312	18,591
Purchased Non-Covered Loans [Member]
Carrying amount at the beginning of the period	15,572	33,725
Reductions during the period	(691)	(18,153)
Carrying amount at the end of the period	$ 14,881	$ 15,572

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Note 4 - Loans and Allowance for Credit Losses (Detail) - Impaired loans, supplemental schedule (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Average Recored Investment	$ 51,605	$ 83,501	$ 52,569	$ 83,317
Recognized Interest Income	483	695	1,029	1,428
Commercial [Member]
Average Recored Investment	9,888	17,135	9,342	17,373
Recognized Interest Income	67	179	117	509
Commercial Real Estate Loans [Member]
Average Recored Investment	30,228	38,402	31,416	38,732
Recognized Interest Income	349	414	727	729
Construction [Member]
Average Recored Investment	7,552	25,141	7,981	24,572
Recognized Interest Income	59	89	159	173
Residential Real Estate Loans [Member]
Average Recored Investment	1,112	449	957	449
Consumer Installment And Other [Member]
Average Recored Investment	2,825	2,374	2,873	2,191
Recognized Interest Income	$ 8	$ 13	$ 26	$ 17

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Note 10 - Earnings Per Common Share (Detail) (Stock Options [Member]) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	2,072	1,396	2,035	1,209

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Consolidated Balance Sheets (unaudited) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Assets:
Cash and due from banks	$ 320,925	$ 530,045
Investment securities available for sale	708,717	638,753
Investment securities held to maturity, with fair values of: $1,232,813 at June 30, 2012, $947,493 at December 31, 2011	1,206,646	922,803
Purchased covered loans	463,251	535,278
Purchased non-covered loans	102,390	125,921
Originated loans	1,751,578	1,862,607
Allowance for loan losses	(31,523)	(32,597)
Total loans	2,285,696	2,491,209
Non-covered other real estate owned	17,585	26,500
Covered other real estate owned	14,608	19,135
Premises and equipment, net	37,867	36,548
Identifiable intangibles, net	25,888	28,629
Goodwill	121,673	121,673
Other assets	213,525	226,866
Total Assets	4,953,130	5,042,161
Deposits:
Noninterest bearing deposits	1,573,188	1,562,254
Interest bearing deposits:
Transaction	742,633	734,988
Savings	1,136,876	1,148,178
Time	755,802	804,501
Total deposits	4,208,499	4,249,921
Short-term borrowed funds	81,582	115,689
Federal Home Loan Bank advances	25,911	26,023
Term repurchase agreement	10,000	10,000
Debt financing	15,000	15,000
Other liabilities	54,212	66,887
Total Liabilities	4,395,204	4,483,520
Common stock (no par value), authorized - 150,000 shares
Issued and outstanding: 27,621 at June 30, 2012, 28,150 at December 31, 2011	372,631	377,775
Deferred compensation	3,101	3,060
Accumulated other comprehensive income	13,030	11,369
Retained earnings	169,164	166,437
Total Shareholders' Equity	557,926	558,641
Total Liabilities and Shareholders' Equity	$ 4,953,130	$ 5,042,161

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Note 6 - Goodwill and Identifiable Intangible Assets (Detail) - Schedule of estimated future amortization expense for identifiable intangible assets (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
For the six months ended June 30, 2012 (actual)	$ 1,339	$ 1,480	$ 2,741	$ 3,028
Estimate for year ended December 31, 2012			5,368
2013	4,704		4,704
2014	4,270		4,270
2015	3,856		3,856
2016	3,504		3,504
2017	3,017		3,017
Core Deposits [Member]
For the six months ended June 30, 2012 (actual)			2,481
Estimate for year ended December 31, 2012			4,868
2013	4,304		4,304
2014	3,946		3,946
2015	3,594		3,594
2016	3,292		3,292
2017	2,853		2,853
Mechant Draft Processing [Member]
For the six months ended June 30, 2012 (actual)			260
Estimate for year ended December 31, 2012			500
2013	400		400
2014	324		324
2015	262		262
2016	212		212
2017	$ 164		$ 164

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Consolidated Statements of Changes in Shareholders’ Equity (unaudited) (USD $) In Thousands	Common Stock [Member]	Accumulated Deferred Compensation [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Retained Earnings [Member]	Total
Beginning balance at Dec. 31, 2010	$ 378,885	$ 2,724	$ 159	$ 163,519	$ 545,287
Beginning balance (in Shares) at Dec. 31, 2010	29,090
Tax benefit increase upon exercise of stock options	28				28
Restricted stock activity	455	336			791
Restricted stock activity (in Shares)	15
Stock based compensation	720				720
Stock awarded to employees	58				58
Stock awarded to employees (in Shares)	1
Purchase and retirement of stock	(8,142)			(23,542)	(31,684)
Purchase and retirement of stock (in Shares)	(640)
Dividends				(20,876)	(20,876)
Net income for the period				43,651	43,651
Other comprehensive income			8,092		8,092
Exercise of stock options	3,273				3,273
Exercise of stock options (in Shares)	74
Ending balance at Jun. 30, 2011	375,277	3,060	8,251	162,752	549,340
Ending balance (in Shares) at Jun. 30, 2011	28,540
Beginning balance at Dec. 31, 2011	377,775	3,060	11,369	166,437	558,641
Beginning balance (in Shares) at Dec. 31, 2011	28,150
Tax benefit increase upon exercise of stock options	2				2
Restricted stock activity	482	41			523
Restricted stock activity (in Shares)	11
Stock based compensation	805				805
Stock awarded to employees	63				63
Stock awarded to employees (in Shares)	1
Purchase and retirement of stock	(7,526)			(18,555)	(26,081)
Purchase and retirement of stock (in Shares)	(566)
Dividends				(20,687)	(20,687)
Net income for the period				41,969	41,969
Other comprehensive income			1,661		1,661
Exercise of stock options	1,030				1,030
Exercise of stock options (in Shares)	25
Ending balance at Jun. 30, 2012	$ 372,631	$ 3,101	$ 13,030	$ 169,164	$ 557,926
Ending balance (in Shares) at Jun. 30, 2012	27,621

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Note 4 - Loans and Allowance for Credit Losses (Detail) - Recorded investment in loans evaluated for impairment (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012		Dec. 31, 2011		Jun. 30, 2011
Allowance for credit losses:
Individually evaluated for impairment	$ 3,511		$ 2,023
Collectively evaluated for impairment	30,705		33,267
Total	34,216		35,290		35,701
Carrying value of loans:
Individually evaluated for impairment	26,286		16,124
Collectively evaluated for impairment	2,266,740		2,473,519
Purchased loans with evidence of credit deterioration	24,193		34,163
Total	2,317,219		2,523,806
Commercial [Member]
Allowance for credit losses:
Individually evaluated for impairment	1,297
Collectively evaluated for impairment	6,677		7,672
Total	7,974		7,672		8,501
Carrying value of loans:
Individually evaluated for impairment	6,846
Collectively evaluated for impairment	350,741		398,446
Total	357,587		398,446
Commercial Real Estate Loans [Member]
Allowance for credit losses:
Individually evaluated for impairment			229
Collectively evaluated for impairment	9,915		10,382
Total	9,915		10,611		10,274
Carrying value of loans:
Individually evaluated for impairment	3,389		1,399
Collectively evaluated for impairment	659,246		703,256
Total	662,635		704,655
Construction [Member]
Allowance for credit losses:
Individually evaluated for impairment	2,124		1,794
Collectively evaluated for impairment	569		582
Total	2,693		2,376		4,064
Carrying value of loans:
Individually evaluated for impairment	3,068		3,126
Collectively evaluated for impairment	9,487		11,454
Total	12,555		14,580
Residential Real Estate Loans [Member]
Allowance for credit losses:
Individually evaluated for impairment	90
Collectively evaluated for impairment	512		781
Total	602		781		466
Carrying value of loans:
Individually evaluated for impairment	621
Collectively evaluated for impairment	248,678		271,111
Total	249,299		271,111
Consumer Installment And Other [Member]
Allowance for credit losses:
Collectively evaluated for impairment	3,415		3,270
Total	3,415		3,270		3,669
Carrying value of loans:
Collectively evaluated for impairment	469,502		473,815
Total	469,502		473,815
Purchased Non-Covered Loans [Member]
Carrying value of loans:
Individually evaluated for impairment	5,727		5,611
Collectively evaluated for impairment	81,782		104,738
Purchased loans with evidence of credit deterioration	14,881		15,572
Total	102,390		125,921
Purchased Covered Loans [Member]
Allowance for credit losses:
Collectively evaluated for impairment	240
Total	240
Carrying value of loans:
Individually evaluated for impairment	6,635		5,988
Collectively evaluated for impairment	447,304		510,699
Purchased loans with evidence of credit deterioration	9,312		18,591
Total	463,251	[1]	535,278	[1]
Unallocated Financing Receivable [Member]
Allowance for credit losses:
Collectively evaluated for impairment	9,377		10,580
Total	$ 9,377		$ 10,580

[1] Credit risk profile reflects internally assigned grade of purchased covered loans without regard to FDIC indemnification.

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Note 9 - Debt Financing (Tables)

6 Months Ended

Jun. 30, 2012

Schedule of Debt [Table Text Block]

	At June 30,		At December 31,
	2012		2011
	(In thousands)
Senior fixed-rate note	$	15,000	$	15,000
Total debt financing	$	15,000	$	15,000

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Note 4 - Loans and Allowance for Credit Losses (Detail) - Credit risk profile by internally assigned grade (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012		Dec. 31, 2011
Loans by grade	$ 2,317,219		$ 2,523,806
Pass [Member] | Commercial [Member]
Loans by grade	325,257		360,279
Pass [Member] | Commercial Real Estate Loans [Member]
Loans by grade	603,075		646,078
Pass [Member] | Construction [Member]
Loans by grade	8,529		10,413
Pass [Member] | Residential Real Estate Loans [Member]
Loans by grade	243,968		264,861
Pass [Member] | Consumer Installment And Other [Member]
Loans by grade	467,643		471,783
Pass [Member] | Purchased Non-Covered Loans [Member]
Loans by grade	53,700		63,955
Pass [Member] | Purchased Covered Loans [Member]
Loans by grade	321,037	[1]	372,560	[1]
Pass [Member]
Loans by grade	2,023,209		2,189,929
Special Mention [Member] | Commercial [Member]
Loans by grade	11,965		17,247
Special Mention [Member] | Commercial Real Estate Loans [Member]
Loans by grade	30,130		29,103
Special Mention [Member] | Construction [Member]
Loans by grade	484		341
Special Mention [Member] | Residential Real Estate Loans [Member]
Loans by grade	2,559		1,961
Special Mention [Member] | Consumer Installment And Other [Member]
Loans by grade	264		600
Special Mention [Member] | Purchased Non-Covered Loans [Member]
Loans by grade	9,769		15,701
Special Mention [Member] | Purchased Covered Loans [Member]
Loans by grade	37,355	[1]	32,365	[1]
Special Mention [Member]
Loans by grade	92,526		97,318
Substandard [Member] | Commercial [Member]
Loans by grade	17,993		20,695
Substandard [Member] | Commercial Real Estate Loans [Member]
Loans by grade	29,430		29,474
Substandard [Member] | Construction [Member]
Loans by grade	3,542		3,826
Substandard [Member] | Residential Real Estate Loans [Member]
Loans by grade	2,772		4,289
Substandard [Member] | Consumer Installment And Other [Member]
Loans by grade	1,055		1,014
Substandard [Member] | Purchased Non-Covered Loans [Member]
Loans by grade	45,406		52,994
Substandard [Member] | Purchased Covered Loans [Member]
Loans by grade	133,790	[1]	175,410	[1]
Substandard [Member]
Loans by grade	233,988		287,702
Doubtful [Member] | Commercial [Member]
Loans by grade	2,372		225
Doubtful [Member] | Consumer Installment And Other [Member]
Loans by grade	13		66
Doubtful [Member] | Purchased Non-Covered Loans [Member]
Loans by grade	1,543		3,444
Doubtful [Member] | Purchased Covered Loans [Member]
Loans by grade	1,435	[1]	1,070	[1]
Doubtful [Member]
Loans by grade	5,363		4,805
Unlikely to be Collected Financing Receivable [Member] | Consumer Installment And Other [Member]
Loans by grade	527		352
Unlikely to be Collected Financing Receivable [Member] | Purchased Non-Covered Loans [Member]
Loans by grade			38
Unlikely to be Collected Financing Receivable [Member] | Purchased Covered Loans [Member]
Loans by grade		[1]	155	[1]
Unlikely to be Collected Financing Receivable [Member]
Loans by grade	527		545
Default Risk Purchase Discount [Member] | Purchased Non-Covered Loans [Member]
Loans by grade	(8,028)		(10,211)
Default Risk Purchase Discount [Member] | Purchased Covered Loans [Member]
Loans by grade	(30,366)	[1]	(46,282)	[1]
Default Risk Purchase Discount [Member]
Loans by grade	(38,394)		(56,493)
Commercial [Member]
Loans by grade	357,587		398,446
Commercial Real Estate Loans [Member]
Loans by grade	662,635		704,655
Construction [Member]
Loans by grade	12,555		14,580
Residential Real Estate Loans [Member]
Loans by grade	249,299		271,111
Consumer Installment And Other [Member]
Loans by grade	469,502		473,815
Purchased Non-Covered Loans [Member]
Loans by grade	102,390		125,921
Purchased Covered Loans [Member]
Loans by grade	$ 463,251	[1]	$ 535,278	[1]

[1] Credit risk profile reflects internally assigned grade of purchased covered loans without regard to FDIC indemnification.

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Note 3 - Investment Securities (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2012	Dec. 31, 2011
Number Of Securities Transferred From Held To Maturity To Available For Sale	1
Held-to-maturity Securities, Transferred Security, at Carrying Value	$ 9,077	$ 9,077
Proceeds from Sale of Available-for-sale Securities, Debt	7,790
Available-for-sale Securities, Gross Realized Gain (Loss)	(1,287)	(1,287)
Pledged Financial Instruments, Not Separately Reported, Securities	$ 896,271	$ 896,271	$ 903,807

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Consolidated Statements of Cash Flows (unaudited) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Operating Activities:
Net income	$ 41,969	$ 43,651
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	7,037	6,943
Loan loss provision	5,600	5,600
Net amortization of deferred loan fees	(303)	(190)
Decrease (increase) in interest income receivable	1,004	(161)
(Increase) decrease in other assets	(3,386)	1,685
(Decrease) increase in income taxes payable	(1,186)	212
Increase in net deferred tax asset	(6,275)	(571)
Decrease in interest expense payable	(129)	(328)
Increase in other liabilities	2,160	4,581
Stock option compensation expense	805	720
Tax benefit increase upon exercise of stock options	(2)	(28)
Loss on sale of securities available for sale	1,287
Gain on sale of other assets	(256)	(800)
Net writedown (gain) on sale of premises and equipment	1	(127)
Originations of mortgage loans for resale	(27)	(90)
Net proceeds from sale of mortgage loans originated for resale	28	93
Net gain on sale of foreclosed assets	(2,041)	(193)
Writedown of foreclosed assets	1,925	845
Net Cash Provided by Operating Activities	48,211	61,842
Investing Activities:
Net repayments of loans	194,740	146,387
Proceeds from FDIC1 loss-sharing indemnification	20,259	5,265
Purchases of investment securities available for sale	(137,378)	(152,998)
Purchases of investment securities held to maturity	(405,281)	(128,294)
Proceeds from sale/maturity/calls of securities available for sale	70,249	122,645
Proceeds from maturity/calls of securities held to maturity	106,080	41,749
Net change in FRB2/FHLB3 securities	895	(13,158)
Proceeds from sale of foreclosed assets	16,632	6,734
Purchases of premises and equipment	(2,637)	(250)
Proceeds from sale of premises and equipment		169
Net Cash (Used in) Provided by Investing Activities	(136,441)	28,249
Financing Activities:
Net change in deposits	(41,048)	(43,848)
Net change in short-term borrowings and FHLB3 advances	(34,106)	(15,658)
Exercise of stock options	1,030	3,273
Tax benefit increase upon exercise of stock options	2	28
Repurchases/retirement of stock	(26,081)	(31,684)
Dividends paid	(20,687)	(20,876)
Net Cash Used in Financing Activities	(120,890)	(108,765)
Net Change In Cash and Due from Banks	(209,120)	(18,674)
Cash and Due from Banks at Beginning of Period	530,045	338,793
Cash and Due from Banks at End of Period	320,925	320,119
Supplemental disclosure of non cash activities:
Loan collateral transferred to other real estate owned	4,108	14,637
Supplemental disclosure of cash flow activities:
Interest paid for the period	3,602	6,299
Income tax payments for the period	$ 21,631	$ 16,638

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Consolidated Balance Sheets (unaudited) (Parentheticals) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Investment securities held to maturity, fair value (in Dollars)	$ 1,232,813	$ 947,493
Common stock, shares authorized	150,000	150,000
Common stock, shares issued	27,621	28,150
Common stock, shares outstanding	27,621	28,150

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Note 10 - Earnings Per Common Share

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Text Block]

Note 10: Earnings Per Common Share

The table below shows earnings per common share and diluted earnings per common share. Basic earnings per common share are computed by dividing net income applicable to common equity by the average number of common shares outstanding during the period. Diluted earnings per common share are computed by dividing net income applicable to common equity by the average number of common shares outstanding during the period plus the impact of common stock equivalents.

	For the Three Months				For the Six Months
	Ended June 30,
	2012		2011		2012		2011
	(In thousands, except per share data)
Net income applicable to common equity (numerator)	$	20,964	$	21,269	$	41,969	$	43,651
Basic earnings per common share
Weighted average number of common shares outstanding - basic (denominator)		27,744		28,771		27,897		28,895
Basic earnings per common share	$	0.76	$	0.74	$	1.50	$	1.51
Diluted earnings per common share
Weighted average number of common shares outstanding - basic		27,744		28,771		27,897		28,895
Add exercise of options reduced by the number of shares that could have been purchased with the proceeds of such exercise		46		152		54		178
Weighted average number of common shares outstanding - diluted (denominator)		27,790		28,923		27,951		29,073
Diluted earnings per common share	$	0.75	$	0.74	$	1.50	$	1.50

For the three months ended June 30, 2012 and 2011, options to purchase 2,072 thousand and 1,396 thousand shares of common stock, respectively, were outstanding but not included in the computation of diluted net income per share because the option exercise price exceeded the fair value of the stock such that their inclusion would have had an anti-dilutive effect.

For the six months ended June 30, 2012 and 2011, options to purchase 2,035 thousand shares and 1,209 thousand shares of common stock, respectively, were outstanding but not included in the computation of diluted net income per share because their inclusion would have had an anti-dilutive effect.

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Document And Entity Information	6 Months Ended
	Jun. 30, 2012	Jul. 26, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	WESTAMERICA BANCORPORATION
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		27,564,656
Amendment Flag	false
Entity Central Index Key	0000311094
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Well-known Seasoned Issuer	Yes
Document Period End Date	Jun. 30, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2

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Note 3 - Investment Securities (Tables)

6 Months Ended

Jun. 30, 2012

Schedule of Available-for-sale Securities Reconciliation [Table Text Block]

	Investment Securities Available for Sale
	At June 30, 2012
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(In thousands)
U.S. Treasury securities	$	3,528	$	45	$	-		$	3,573
Securities of U.S. Government sponsored entities		100,493		407		(1	)		100,899
Residential mortgage-backed securities		72,394		5,046		(2	)		77,438
Commercial mortgage-backed securities		4,306		64		-			4,370
Obligations of States and political subdivisions		223,237		13,234		(279	)		236,192
Residential collateralized mortgage obligations		43,959		1,646		-			45,605
Asset-backed securities		16,964		-		(218	)		16,746
FHLMC and FNMA stock		824		1,871		(4	)		2,691
Corporate securities		217,952		818		(2,078	)		216,692
Other securities		2,236		2,325		(50	)		4,511
Total	$	685,893	$	25,456	$	(2,632	)	$	708,717

	Investment Securities Available for Sale
	At December 31, 2011
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(In thousands)
U.S. Treasury securities	$	3,537	$	59	$	-		$	3,596
Securities of U.S. Government sponsored entities		117,150		375		(53	)		117,472
Residential mortgage-backed securities		84,961		5,457		(10	)		90,408
Commercial mortgage-backed securities		4,506		27		(3	)		4,530
Obligations of States and political subdivisions		234,522		11,839		(268	)		246,093
Residential collateralized mortgage obligations		49,111		2,053		-			51,164
Asset-backed securities		7,566		-		(260	)		7,306
FHLMC and FNMA stock		824		1,027		(4	)		1,847
Corporate securities		114,286		203		(2,290	)		112,199
Other securities		2,302		1,884		(48	)		4,138
Total	$	618,765	$	22,924	$	(2,936	)	$	638,753

Schedule Of Held To Maturity Securities Reconciliation [Table Text Block]

	Investment Securities Held to Maturity
	At June 30, 2012
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(In thousands)
Securities of U.S. Government sponsored entities	$	4,287	$	29	$	-		$	4,316
Residential mortgage-backed securities		82,346		1,896		(73	)		84,169
Obligations of States and political subdivisions		667,386		21,826		(882	)		688,330
Residential collateralized mortgage obligations		452,627		3,982		(611	)		455,998
Total	$	1,206,646	$	27,733	$	(1,566	)	$	1,232,813

	Investment Securities Held to Maturity
	At December 31, 2011
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(In thousands)
Residential mortgage-backed securities	$	54,869	$	1,532	$	(77	)	$	56,324
Obligations of States and political subdivisions		625,390		23,581		(496	)		648,475
Residential collateralized mortgage obligations		242,544		2,781		(2,631	)		242,694
Total	$	922,803	$	27,894	$	(3,204	)	$	947,493

Investments Classified by Contractual Maturity Date [Table Text Block]

	At June 30, 2012
	Securities Available				Securities Held
	for Sale				to Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
	(In thousands)
Maturity in years:
1 year or less	$	59,556	$	59,810	$	11,269	$	11,344
Over 1 to 5 years		321,842		321,762		161,587		166,300
Over 5 to 10 years		55,864		58,736		269,998		280,908
Over 10 years		124,912		133,794		228,819		234,094
Subtotal		562,174		574,102		671,673		692,646
Mortgage-backed securities and residential collateralized mortgage obligations		120,659		127,413		534,973		540,167
Other securities		3,060		7,202		-		-
Total	$	685,893	$	708,717	$	1,206,646	$	1,232,813

	At December 31, 2011
	Securities Available				Securities Held
	for Sale				to Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
	(In thousands)
Maturity in years:
1 year or less	$	37,785	$	37,967	$	12,056	$	12,121
Over 1 to 5 years		242,766		241,945		158,438		162,791
Over 5 to 10 years		63,442		65,919		307,504		321,922
Over 10 years		133,068		140,835		147,392		151,641
Subtotal		477,061		486,666		625,390		648,475
Mortgage-backed securities and residential collateralized mortgage obligations		138,578		146,102		297,413		299,018
Other securities		3,126		5,985		-		-
Total	$	618,765	$	638,753	$	922,803	$	947,493

Schedule of Unrealized Loss on Investments [Table Text Block]

	Investment Securities Available for Sale
	At June 30, 2012
	Less than 12 months					12 months or longer					Total
			Unrealized					Unrealized					Unrealized
	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
	(In thousands)
Securities of U.S. Government sponsored entities	$	4,997	$	(1	)	$	-	$	-		$	4,997	$	(1	)
Residential mortgage-backed securities		7		-			984		(2	)		991		(2	)
Obligations of States and political subdivisions		3,663		(71	)		11,705		(208	)		15,368		(279	)
Asset-backed securities		10,194		(6	)		6,552		(212	)		16,746		(218	)
FHLMC and FNMA stock		-		-			1		(4	)		1		(4	)
Corporate securities		71,028		(878	)		38,799		(1,200	)		109,827		(2,078	)
Other securities		-		-			1,951		(50	)		1,951		(50	)
Total	$	89,889	$	(956	)	$	59,992	$	(1,676	)	$	149,881	$	(2,632	)

	Investment Securities Held to Maturity
	At June 30, 2012
	Less than 12 months					12 months or longer					Total
			Unrealized					Unrealized					Unrealized
	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
	(In thousands)
Residential mortgage-backed securities	$	21,030	$	(73	)	$	-	$	-		$	21,030	$	(73	)
Obligations of States and political subdivisions		70,381		(853	)		4,641		(29	)		75,022		(882	)
Residential collateralized mortgage obligations		75,288		(396	)		13,929		(215	)		89,217		(611	)
Total	$	166,699	$	(1,322	)	$	18,570	$	(244	)	$	185,269	$	(1,566	)

	Investment Securities Available for Sale
	At December 31, 2011
	Less than 12 months					12 months or longer					Total
			Unrealized					Unrealized					Unrealized
	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
	(In thousands)
Securities of U.S. Government sponsored entities	$	35,051	$	(53	)	$	-	$	-		$	35,051	$	(53	)
Residential mortgage-backed securities		3,443		(10	)		-		-			3,443		(10	)
Commercial mortgage-backed securities		-		-			1,347		(3	)		1,347		(3	)
Obligations of States and political subdivisions		5,803		(61	)		15,015		(207	)		20,818		(268	)
Asset-backed securities		-		-			7,306		(260	)		7,306		(260	)
FHLMC and FNMA stock		-		-			1		(4	)		1		(4	)
Corporate securities		32,048		(1,516	)		24,226		(774	)		56,274		(2,290	)
Other securities		-		-			1,953		(48	)		1,953		(48	)
Total	$	76,345	$	(1,640	)	$	49,848	$	(1,296	)	$	126,193	$	(2,936	)

	Investment Securities Held to Maturity
	At December 31, 2011
	Less than 12 months					12 months or longer					Total
			Unrealized					Unrealized					Unrealized
	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
	(In thousands)
Residential mortgage-backed securities	$	14,032	$	(77	)	$	-	$	-		$	14,032	$	(77	)
Obligations of States and political subdivisions		38,026		(334	)		6,441		(162	)		44,467		(496	)
Residential collateralized mortgage obligations		50,355		(373	)		15,443		(2,258	)		65,798		(2,631	)
Total	$	102,413	$	(784	)	$	21,884	$	(2,420	)	$	124,297	$	(3,204	)

Interest Income From Investments [Table Text Block]

	For the Three Months				For the Six Months
	Ended June 30,
	2012		2011		2012		2011
	(In thousands)
Taxable	$	5,348	$	4,223	$	10,038	$	7,980
Tax-exempt		7,808		7,593		15,760		14,967
Total interest income from investment securities	$	13,156	$	11,816	$	25,798	$	22,947

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Consolidated Statements of Income (unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Interest and Fee Income:
Loans	$ 33,745	$ 41,272	$ 69,401	$ 82,635
Investment securities available for sale	4,938	5,684	9,726	10,902
Investment securities held to maturity	8,218	6,132	16,072	12,045
Total Interest and Fee Income	46,901	53,088	95,199	105,582
Interest Expense:
Deposits	1,107	1,777	2,294	3,667
Short-term borrowed funds	21	47	48	109
Term repurchase agreement	24		49
Federal Home Loan Bank advances	119	128	239	279
Debt financing and notes payable	201	201	401	401
Total Interest Expense	1,472	2,153	3,031	4,456
Net Interest Income	45,429	50,935	92,168	101,126
Provision for Loan Losses	2,800	2,800	5,600	5,600
Net Interest Income After Provision For Loan Losses	42,629	48,135	86,568	95,526
Noninterest Income:
Service charges on deposit accounts	7,027	7,577	14,122	15,098
Merchant processing services	2,529	2,391	4,922	4,562
Debit card fees	1,345	1,283	2,508	2,484
ATM processing fees	932	997	1,865	1,932
Trust fees	497	482	986	975
Financial services commissions	194	117	365	146
Loss on sale of securities	(1,287)		(1,287)
Other	2,296	2,445	4,721	4,838
Total Noninterest Income	13,533	15,292	28,202	30,035
Noninterest Expense:
Salaries and related benefits	14,494	14,913	29,540	29,988
Occupancy	3,775	4,050	7,709	8,075
Outsourced data processing services	2,078	2,122	4,161	4,578
Amortization of identifiable intangibles	1,339	1,480	2,741	3,028
Furniture and equipment	1,041	1,038	1,892	1,971
Professional fees	902	1,453	1,669	2,303
Courier service	793	852	1,578	1,695
Deposit insurance assessments	653	740	1,403	1,960
Other real estate owned	3	990	233	1,135
Settlements		2,100		2,100
Other	4,271	4,571	8,457	8,799
Total Noninterest Expense	29,349	34,309	59,383	65,632
Income Before Income Taxes	26,813	29,118	55,387	59,929
Provision for income taxes	5,849	7,849	13,418	16,278
Net Income	$ 20,964	$ 21,269	$ 41,969	$ 43,651
Average Common Shares Outstanding (in Shares)	27,744	28,771	27,897	28,895
Diluted Average Common Shares Outstanding (in Shares)	27,790	28,923	27,951	29,073
Per Common Share Data:
Basic earnings (in Dollars per share)	$ 0.76	$ 0.74	$ 1.50	$ 1.51
Diluted earnings (in Dollars per share)	$ 0.75	$ 0.74	$ 1.50	$ 1.50
Dividends paid (in Dollars per share)	$ 0.37	$ 0.36	$ 0.74	$ 0.72

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Note 5 - Concentration of Credit Risk

6 Months Ended

Jun. 30, 2012

Concentration Risk Disclosure [Text Block]

Note 5: Concentration of Credit Risk

The Company’s business activity is with customers in Northern and Central California. The loan portfolio is well diversified within the Company’s geographic market, although the Company has significant credit arrangements that are secured by real estate collateral. In addition to real estate loans outstanding as disclosed in Note 4, the Company had loan commitments and standby letters of credit related to real estate loans of $73,497 thousand and $77,988 thousand at June 30, 2012 and December 31, 2011, respectively. The Company requires collateral on all real estate loans with loan-to-value ratios generally no greater than 75% on commercial real estate loans and no greater than 80% on residential real estate loans at origination.

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Note 4 - Loans and Allowance for Credit Losses

6 Months Ended

Jun. 30, 2012

Loans And Allowance For Credit Losses [Text Block]

Note 4: Loans and Allowance for Credit Losses

A summary of the major categories of loans outstanding is shown in the following table.

	At June 30, 2012
													Consumer
				Commercial						Residential			Installment
	Commercial			Real Estate			Construction			Real Estate			& Other			Total
	(In thousands)
Originated loans	$	357,587		$	662,635		$	12,555		$	249,299		$	469,502		$	1,751,578
Purchased covered loans:
Impaired		347			9,642			2,346			-			260			12,595
Non impaired		84,721			304,625			10,294			10,366			71,016			481,022
Purchase discount		(10,210	)		(18,855	)		(464	)		(522	)		(315	)		(30,366	)
Purchased non-covered loans:
Impaired		2,081			16,747			-			-			298			19,126
Non impaired		12,383			51,031			1,794			3,438			22,646			91,292
Purchase discount		(859	)		(4,496	)		(95	)		(474	)		(2,104	)		(8,028	)
Total	$	446,050		$	1,021,329		$	26,430		$	262,107		$	561,303		$	2,317,219

	At December 31, 2011
													Consumer
				Commercial						Residential			Installment
	Commercial			Real Estate			Construction			Real Estate			& Other			Total
	(In thousands)
Originated loans	$	398,446		$	704,655		$	14,580		$	271,111		$	473,815		$	1,862,607
Purchased covered loans:
Impaired		1,296			20,697			2,977			-			262			25,232
Non impaired		117,777			333,428			13,372			13,016			78,735			556,328
Purchase discount		(19,535	)		(22,318	)		(2,473	)		(524	)		(1,432	)		(46,282	)
Purchased non-covered loans:
Impaired		2,262			17,090			-			-			638			19,990
Non impaired		14,129			67,045			6,076			3,598			25,294			116,142
Purchase discount		(1,013	)		(6,101	)		(95	)		(474	)		(2,528	)		(10,211	)
Total	$	513,362		$	1,114,496		$	34,437		$	286,727		$	574,784		$	2,523,806

Changes in the carrying amount of impaired purchased covered loans were as follows:

	For the
	Six Months Ended			For the Year Ended
	June 30, 2012			December 31, 2011
Impaired purchased covered loans	(In thousands)
Carrying amount at the beginning of the period	$	18,591		$	33,556
Reductions during the period		(9,279	)		(14,965	)
Carrying amount at the end of the period	$	9,312		$	18,591

Changes in the carrying amount of impaired purchased non-covered loans were as follows:

	For the
	Six Months Ended			For the Year Ended
	June 30, 2012			December 31, 2011
Impaired purchased non-covered loans	(In thousands)
Carrying amount at the beginning of the period	$	15,572		$	33,725
Reductions during the period		(691	)		(18,153	)
Carrying amount at the end of the period	$	14,881		$	15,572

Changes in the accretable yield for purchased loans were as follows:

	For the			For the
	Six Months Ended			Year Ended
	June 30, 2012			December 31, 2011
Accretable yield for purchased loans	(In thousands)
Balance at the beginning of the period	$	9,990		$	6,089
Reclassification from nonaccretable difference		3,816			16,906
Accretion		(9,804	)		(13,005	)
Disposals and other		-			-
Balance at the end of the period	$	4,002		$	9,990
Accretion	$	(9,804	)	$	(13,005	)
Reduction in FDIC indemnification asset		7,373			9,315
Increase in interest income	$	(2,431	)	$	(3,690	)

The following summarizes activity in the allowance for credit losses:

	Allowance for Credit Losses
	For the Three Months Ended June 30, 2012
													Consumer			Purchased			Purchased
				Commercial						Residential			Installment			Non-covered			Covered
	Commercial			Real Estate			Construction			Real Estate			and Other			Loans			Loans			Unallocated		Total
	(In thousands)
Allowance for loan losses:
Balance at beginning of period	$	6,814		$	11,427		$	2,755		$	645		$	2,825		$	-		$	139		$	7,278	$	31,883
Additions:
Provision		1,984			(1,561	)		(270	)		19			817			25			324			1,462		2,800
Deductions:
Chargeoffs		(2,696	)		-			-			(62	)		(1,211	)		(25	)		(247	)		-		(4,241	)
Recoveries		228			33			196			-			600			-			24			-		1,081
Net loan and lease losses		(2,468	)		33			196			(62	)		(611	)		(25	)		(223	)		-		(3,160	)
Balance at end of period		6,330			9,899			2,681			602			3,031			-			240			8,740		31,523
Liability for off-balance sheet credit exposure		1,644			16			12			-			384			-			-			637		2,693
Total allowance for credit losses	$	7,974		$	9,915		$	2,693		$	602		$	3,415		$	-		$	240		$	9,377	$	34,216

	Allowance for Credit Losses
	For the Six Months Ended June 30, 2012
												Consumer			Purchased			Purchased
				Commercial					Residential			Installment			Non-covered			Covered
	Commercial			Real Estate			Construction		Real Estate			and Other			Loans			Loans			Unallocated			Total
	(In thousands)
Allowance for loan losses:
Balance at beginning of period	$	6,012		$	10,611		$	2,342	$	781		$	3,072		$	-		$	-		$	9,779		$	32,597
Additions:
Provision		3,259			203			141		753			1,444			25			814			(1,039	)		5,600
Deductions:
Chargeoffs		(3,558	)		(948	)		-		(932	)		(2,864	)		(25	)		(612	)		-			(8,939	)
Recoveries		617			33			198		-			1,379			-			38			-			2,265
Net loan and lease losses		(2,941	)		(915	)		198		(932	)		(1,485	)		(25	)		(574	)		-			(6,674	)
Balance at end of period		6,330			9,899			2,681		602			3,031			-			240			8,740			31,523
Liability for off-balance sheet credit exposure		1,644			16			12		-			384			-			-			637			2,693
Total allowance for credit losses	$	7,974		$	9,915		$	2,693	$	602		$	3,415		$	-		$	240		$	9,377		$	34,216

	Allowance for Credit Losses
	For the Three Months Ended June 30, 2011
												Consumer			Purchased
				Commercial					Residential			Installment			Covered
	Commercial			Real Estate			Construction		Real Estate			and Other			Loans		Unallocated			Total
	(In thousands)
Allowance for loan losses:
Balance at beginning of period	$	7,816		$	10,355		$	2,260	$	377		$	4,458		$	-	$	9,055		$	34,321
Additions:
Provision		2,133			(114	)		1,699		308			(262	)		-		(964	)		2,800
Deductions:
Chargeoffs		(3,663	)		-			-		(219	)		(1,339	)		-		-			(5,221	)
Recoveries		443			-			-		-			665			-		-			1,108
Net loan and lease losses		(3,220	)		-			-		(219	)		(674	)		-		-			(4,113	)
Balance at end of period		6,729			10,241			3,959		466			3,522			-		8,091			33,008
Liability for off-balance sheet credit exposure		1,772			33			105		-			147			-		636			2,693
Total allowance for credit losses	$	8,501		$	10,274		$	4,064	$	466		$	3,669		$	-	$	8,727		$	35,701

	Allowance for Credit Losses
	For the Six Months Ended June 30, 2011
												Consumer			Purchased
				Commercial					Residential			Installment			Covered
	Commercial			Real Estate		Construction			Real Estate			and Other			Loans		Unallocated		Total
	(In thousands)
Allowance for loan losses:
Balance at beginning of period	$	8,094		$	9,607	$	3,260		$	617		$	6,372		$	-	$	7,686	$	35,636
Additions:
Provision		2,979			634		2,174			376			(968	)		-		405		5,600
Deductions:
Chargeoffs		(4,987	)		-		(1,475	)		(527	)		(3,475	)		-		-		(10,464	)
Recoveries		643			-		-			-			1,593			-		-		2,236
Net loan and lease losses		(4,344	)		-		(1,475	)		(527	)		(1,882	)		-		-		(8,228	)
Balance at end of period		6,729			10,241		3,959			466			3,522			-		8,091		33,008
Liability for off-balance sheet credit exposure		1,772			33		105			-			147			-		636		2,693
Total allowance for credit losses	$	8,501		$	10,274	$	4,064		$	466		$	3,669		$	-	$	8,727	$	35,701

The recorded investment in loans evaluated for impairment follows:

	Recorded Investment in Loans Evaluated for Impairment
	At June 30, 2012
	Commercial		Commercial Real Estate		Construction		Residential Real Estate		Consumer Installment and Other		Purchased Non- covered Loans		Purchased Covered Loans		Unallocated		Total
	(In thousands)
Allowance for credit losses:
Individually evaluated for impairment	$	1,297	$	-	$	2,124	$	90	$	-	$	-	$	-	$	-	$	3,511
Collectively evaluated for impairment		6,677		9,915		569		512		3,415		-		240		9,377		30,705
Purchased loans with evidence of credit deterioration		-		-		-		-		-		-		-		-		-
Total	$	7,974	$	9,915	$	2,693	$	602	$	3,415	$	-		240	$	9,377	$	34,216
Carrying value of loans:
Individually evaluated for impairment	$	6,846	$	3,389	$	3,068	$	621	$	-	$	5,727	$	6,635	$	-	$	26,286
Collectively evaluated for impairment		350,741		659,246		9,487		248,678		469,502		81,782		447,304		-		2,266,740
Purchased loans with evidence of credit deterioration		-		-		-		-		-		14,881		9,312		-		24,193
Total	$	357,587	$	662,635	$	12,555	$	249,299	$	469,502	$	102,390	$	463,251	$	-	$	2,317,219

	Recorded Investment in Loans Evaluated for Impairment
	At December 31, 2011
	Commercial		Commercial Real Estate		Construction		Residential Real Estate		Consumer Installment and Other		Purchased Non- covered Loans		Purchased Covered Loans		Unallocated		Total
	(In thousands)
Allowance for credit losses:
Individually evaluated for impairment	$	-	$	229	$	1,794	$	-	$	-	$	-	$	-	$	-	$	2,023
Collectively evaluated for impairment		7,672		10,382		582		781		3,270		-		-		10,580		33,267
Purchased loans with evidence of credit deterioration		-		-		-		-		-		-		-		-		-
Total	$	7,672	$	10,611	$	2,376	$	781	$	3,270	$	-	$	-	$	10,580	$	35,290
Carrying value of loans:
Individually evaluated for impairment	$	-	$	1,399	$	3,126	$	-	$	-	$	5,611	$	5,988	$	-	$	16,124
Collectively evaluated for impairment		398,446		703,256		11,454		271,111		473,815		104,738		510,699		-		2,473,519
Purchased loans with evidence of credit deterioration		-		-		-		-		-		15,572		18,591		-		34,163
Total	$	398,446	$	704,655	$	14,580	$	271,111	$	473,815	$	125,921	$	535,278	$	-	$	2,523,806

The Bank’s customers are small businesses, professionals and consumers. Given the scale of these borrowers, corporate credit rating agencies do not evaluate the borrowers’ financial condition. The Bank maintains a Loan Review Department which reports directly to the Board of Directors. The Loan Review Department performs independent evaluations of loans and assigns credit risk grades to evaluated loans using grading standards employed by bank regulatory agencies. Loans judged to carry lower-risk attributes are assigned a “pass” grade, with a minimal likelihood of loss. Loans judged to carry higher-risk attributes are referred to as “classified loans,” and are further disaggregated, with increasing expectations for loss recognition, as “substandard,” “doubtful,” and “loss.” If the Bank becomes aware of deterioration in a borrower’s performance or financial condition between Loan Review examinations, assigned risk grades will be re-evaluated promptly. Credit risk grades assigned by the Loan Review Department are subject to review by the Bank’s regulatory authority during regulatory examinations.

The following summarizes the credit risk profile by internally assigned grade:

	Credit Risk Profile by Internally Assigned Grade
	At June 30, 2012
	Commercial		Commercial Real Estate		Construction		Residential Real Estate		Consumer Installment and Other		Purchased Non- covered Loans			Purchased Covered Loans (1)			Total
	(In thousands)
Grade:
Pass	$	325,257	$	603,075	$	8,529	$	243,968	$	467,643	$	53,700		$	321,037		$	2,023,209
Special mention		11,965		30,130		484		2,559		264		9,769			37,355			92,526
Substandard		17,993		29,430		3,542		2,772		1,055		45,406			133,790			233,988
Doubtful		2,372		-		-		-		13		1,543			1,435			5,363
Loss		-		-		-		-		527		-			-			527
Default risk purchase discount		-		-		-		-		-		(8,028	)		(30,366	)		(38,394	)
Total	$	357,587	$	662,635	$	12,555	$	249,299	$	469,502	$	102,390		$	463,251		$	2,317,219

(1) Credit risk profile reflects internally assigned grade of purchased covered loans without regard to FDIC indemnification.

	Credit Risk Profile by Internally Assigned Grade
	At December 31, 2011
	Commercial		Commercial Real Estate		Construction		Residential Real Estate		Consumer Installment and Other		Purchased Non- covered Loans			Purchased Covered Loans (1)			Total
	(In thousands)
Grade:
Pass	$	360,279	$	646,078	$	10,413	$	264,861	$	471,783	$	63,955		$	372,560		$	2,189,929
Special mention		17,247		29,103		341		1,961		600		15,701			32,365			97,318
Substandard		20,695		29,474		3,826		4,289		1,014		52,994			175,410			287,702
Doubtful		225		-		-		-		66		3,444			1,070			4,805
Loss		-		-		-		-		352		38			155			545
Default risk purchase discount		-		-		-		-		-		(10,211	)		(46,282	)		(56,493	)
Total	$	398,446	$	704,655	$	14,580	$	271,111	$	473,815	$	125,921		$	535,278		$	2,523,806

(1) Credit risk profile reflects internally assigned grade of purchased covered loans without regard to FDIC indemnification.

The following tables summarize loans by delinquency and nonaccrual status:

	Summary of Loans by Delinquency and Nonaccrual Status
	At June 30, 2012
	Current and Accruing		30-89 Days Past Due and Accruing		Past Due 90 days or More and Accruing		Nonaccrual		Total Loans
	(In thousands)
Commercial	$	347,329	$	2,583	$	-	$	7,675	$	357,587
Commercial real estate		646,856		11,385		-		4,394		662,635
Construction		9,400		87		-		3,068		12,555
Residential real estate		247,477		423		-		1,399		249,299
Consumer installment & other		465,145		3,822		525		10		469,502
Total originated loans		1,716,207		18,300		525		16,546		1,751,578
Purchased non-covered loans		80,850		1,668		-		19,872		102,390
Purchased covered loans		434,452		18,623		140		10,036		463,251
Total	$	2,231,509	$	38,591	$	665	$	46,454	$	2,317,219

	Summary of Loans by Delinquency and Nonaccrual Status
	At December 31, 2011
	Current and Accruing		30-89 Days Past Due and Accruing		Past Due 90 days or More and Accruing		Nonaccrual		Total Loans
	(In thousands)
Commercial	$	388,322	$	6,953	$	-	$	3,171	$	398,446
Commercial real estate		679,633		16,967		1,626		6,429		704,655
Construction		10,664		570		-		3,346		14,580
Residential real estate		262,917		5,648		-		2,546		271,111
Consumer installment & other		467,015		6,324		421		55		473,815
Total originated loans		1,808,551		36,462		2,047		15,547		1,862,607
Purchased non-covered loans		101,585		1,095		34		23,207		125,921
Purchased covered loans		501,823		18,902		241		14,312		535,278
Total	$	2,411,959	$	56,459	$	2,322	$	53,066	$	2,523,806

The following is a summary of the effect of nonaccrual loans on interest income:

	For the Three Months						For the Six Months
	Ended June 30,
	2012			2011			2012			2011
	(In thousands)
Interest income that would have been recognized had the loans performed in accordance with their original terms	$	789		$	1,586		$	1,577		$	3,270
Less: Interest income recognized on nonaccrual loans		(494	)		(2,085	)		(1,336	)		(2,876	)
Total (addition) reduction of interest income	$	295		$	(499	)	$	241		$	394

There were no commitments to lend additional funds to borrowers whose loans were on nonaccrual status at June 30, 2012 and December 31, 2011.

The following summarizes impaired loans:

	Impaired Loans
	At June 30, 2012
			Unpaid
	Recorded		Principal		Related
	Investment		Balance		Allowance
	(In thousands)
Impaired loans with no related allowance recorded:
Commercial	$	9,010	$	17,574	$	-
Commercial real estate		30,713		39,297		-
Construction		6,433		10,657		-
Residential real estate		982		984		-
Consumer installment and other		2,851		3,226		-
Impaired loans with an allowance recorded:
Commercial		3,097		3,123		1,297
Construction		3,068		3,183		2,124
Residential real estate		621		621		90
Total:
Commercial	$	12,107	$	20,697	$	1,297
Commercial real estate		30,713		39,297		-
Construction		9,501		13,840		2,124
Residential real estate		1,603		1,605		90
Consumer installment and other		2,851		3,226		-

	Impaired Loans
	At December 31, 2011
			Unpaid
	Recorded		Principal		Related
	Investment		Balance		Allowance
	(In thousands)
Impaired loans with no related allowance recorded:
Commercial	$	5,483	$	11,727	$	-
Commercial real estate		33,095		43,793		-
Construction		4,194		7,209		-
Consumer installment and other		2,990		3,658		-
Impaired loans with an allowance recorded:
Commercial real estate		1,399		1,399		229
Construction		3,126		3,183		1,794
Total:
Commercial	$	5,483	$	11,727	$	-
Commercial real estate		34,494		45,192		229
Construction		7,320		10,392		1,794
Consumer installment and other		2,990		3,658		-

Impaired loans may include troubled debt restructured loans. Impaired loans at June 30, 2012 and December 31, 2011, included $3,068 thousand and $3,126 thousand of restructured loans, respectively, which were on nonaccrual status.

	Impaired Loans
	For the Three Months Ended June 30,								For the Six Months Ended June 30,
	2012				2011				2012				2011
	Average		Recognized		Average		Recognized		Average		Recognized		Average		Recognized
	Recorded		Interest		Recorded		Interest		Recorded		Interest		Recorded		Interest
	Investment		Income		Investment		Income		Investment		Income		Investment		Income
	(In thousands)
Commercial	$	9,888	$	67	$	17,135	$	179	$	9,342	$	117	$	17,373	$	509
Commercial real estate		30,228		349		38,402		414		31,416		727		38,732		729
Construction		7,552		59		25,141		89		7,981		159		24,572		173
Residential real estate		1,112		-		449		-		957		-		449		-
Consumer installment and other		2,825		8		2,374		13		2,873		26		2,191		17
Total	$	51,605	$	483	$	83,501	$	695	$	52,569	$	1,029	$	83,317	$	1,428

The following table provides information on troubled debt restructurings:

	Troubled Debt Restructurings
	At June 30, 2012
							Period-End
							Individual
	Number of		Pre-Modification		Period-End		Impairment
	Contracts		Carrying Value		Carrying Value		Allowance
	(In thousands)
Commercial		2	$	326	$	308	$	-
Construction		1		3,183		3,068		2,124
Commercial real estate		2		1,817		1,799		-
Total		5	$	5,326	$	5,175	$	2,124

	Troubled Debt Restructurings
	At December 31, 2011
							Period-End
							Individual
	Number of		Pre-Modification		Period-End		Impairment
	Contracts		Carrying Value		Carrying Value		Allowance
	(In thousands)
Commercial		2	$	326	$	321	$	-
Construction		1		3,183		3,126		1,794
Total		3	$	3,509	$	3,447	$	1,794

During the three and six months ended June 30, 2012, the Company modified one loan with a carrying value of $429 thousand and two loans totaling $1,817 thousand, respectively, that were considered troubled debt restructurings. During the three and six months ended June 30, 2011, the Company modified one loan with a carrying value of $3,183 thousand that was considered a troubled debt restructuring. The concessions granted in the restructuring completed during the first six months of 2012 and 2011 largely consisted of modification of payment terms extending the maturity date to allow for deferred principal repayment.

During the three and six months ended June 30, 2012, the construction loan totaling $3,068 thousand defaulted. During the three and six months ended June 30, 2011, no troubled debt restructurings were in default.

The Company pledges loans to secure borrowings from the Federal Home Loan Bank (FHLB). At June 30, 2012, loans pledged to secure borrowing totaled $52,233 thousand compared with $69,145 thousand at December 31, 2011. The FHLB does not have the right to sell or repledge such loans.

There were no loans held for sale at June 30, 2012 and December 31, 2011.

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Note 10 - Earnings Per Common Share (Tables)

6 Months Ended

Jun. 30, 2012

Schedule of Earnings Per Share Reconciliation [Table Text Block]

	For the Three Months				For the Six Months
	Ended June 30,
	2012		2011		2012		2011
	(In thousands, except per share data)
Net income applicable to common equity (numerator)	$	20,964	$	21,269	$	41,969	$	43,651
Basic earnings per common share
Weighted average number of common shares outstanding - basic (denominator)		27,744		28,771		27,897		28,895
Basic earnings per common share	$	0.76	$	0.74	$	1.50	$	1.51
Diluted earnings per common share
Weighted average number of common shares outstanding - basic		27,744		28,771		27,897		28,895
Add exercise of options reduced by the number of shares that could have been purchased with the proceeds of such exercise		46		152		54		178
Weighted average number of common shares outstanding - diluted (denominator)		27,790		28,923		27,951		29,073
Diluted earnings per common share	$	0.75	$	0.74	$	1.50	$	1.50

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Note 4 - Loans and Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2012

Schedule Of Loans Receivable [Table Text Block]

	At June 30, 2012
													Consumer
				Commercial						Residential			Installment
	Commercial			Real Estate			Construction			Real Estate			& Other			Total
	(In thousands)
Originated loans	$	357,587		$	662,635		$	12,555		$	249,299		$	469,502		$	1,751,578
Purchased covered loans:
Impaired		347			9,642			2,346			-			260			12,595
Non impaired		84,721			304,625			10,294			10,366			71,016			481,022
Purchase discount		(10,210	)		(18,855	)		(464	)		(522	)		(315	)		(30,366	)
Purchased non-covered loans:
Impaired		2,081			16,747			-			-			298			19,126
Non impaired		12,383			51,031			1,794			3,438			22,646			91,292
Purchase discount		(859	)		(4,496	)		(95	)		(474	)		(2,104	)		(8,028	)
Total	$	446,050		$	1,021,329		$	26,430		$	262,107		$	561,303		$	2,317,219

	At December 31, 2011
													Consumer
				Commercial						Residential			Installment
	Commercial			Real Estate			Construction			Real Estate			& Other			Total
	(In thousands)
Originated loans	$	398,446		$	704,655		$	14,580		$	271,111		$	473,815		$	1,862,607
Purchased covered loans:
Impaired		1,296			20,697			2,977			-			262			25,232
Non impaired		117,777			333,428			13,372			13,016			78,735			556,328
Purchase discount		(19,535	)		(22,318	)		(2,473	)		(524	)		(1,432	)		(46,282	)
Purchased non-covered loans:
Impaired		2,262			17,090			-			-			638			19,990
Non impaired		14,129			67,045			6,076			3,598			25,294			116,142
Purchase discount		(1,013	)		(6,101	)		(95	)		(474	)		(2,528	)		(10,211	)
Total	$	513,362		$	1,114,496		$	34,437		$	286,727		$	574,784		$	2,523,806

Impaired Purchased Loans Roll Forward [Table Text Block]

	For the
	Six Months Ended			For the Year Ended
	June 30, 2012			December 31, 2011
Impaired purchased covered loans	(In thousands)
Carrying amount at the beginning of the period	$	18,591		$	33,556
Reductions during the period		(9,279	)		(14,965	)
Carrying amount at the end of the period	$	9,312		$	18,591

	For the
	Six Months Ended			For the Year Ended
	June 30, 2012			December 31, 2011
Impaired purchased non-covered loans	(In thousands)
Carrying amount at the beginning of the period	$	15,572		$	33,725
Reductions during the period		(691	)		(18,153	)
Carrying amount at the end of the period	$	14,881		$	15,572

Accretable Yield Reconciliation Schedule [Table Text Block]

	For the			For the
	Six Months Ended			Year Ended
	June 30, 2012			December 31, 2011
Accretable yield for purchased loans	(In thousands)
Balance at the beginning of the period	$	9,990		$	6,089
Reclassification from nonaccretable difference		3,816			16,906
Accretion		(9,804	)		(13,005	)
Disposals and other		-			-
Balance at the end of the period	$	4,002		$	9,990
Accretion	$	(9,804	)	$	(13,005	)
Reduction in FDIC indemnification asset		7,373			9,315
Increase in interest income	$	(2,431	)	$	(3,690	)

Schedule of Credit Losses Related to Financing Receivables, Current and Noncurrent [Table Text Block]

	Allowance for Credit Losses
	For the Three Months Ended June 30, 2012
													Consumer			Purchased			Purchased
				Commercial						Residential			Installment			Non-covered			Covered
	Commercial			Real Estate			Construction			Real Estate			and Other			Loans			Loans			Unallocated		Total
	(In thousands)
Allowance for loan losses:
Balance at beginning of period	$	6,814		$	11,427		$	2,755		$	645		$	2,825		$	-		$	139		$	7,278	$	31,883
Additions:
Provision		1,984			(1,561	)		(270	)		19			817			25			324			1,462		2,800
Deductions:
Chargeoffs		(2,696	)		-			-			(62	)		(1,211	)		(25	)		(247	)		-		(4,241	)
Recoveries		228			33			196			-			600			-			24			-		1,081
Net loan and lease losses		(2,468	)		33			196			(62	)		(611	)		(25	)		(223	)		-		(3,160	)
Balance at end of period		6,330			9,899			2,681			602			3,031			-			240			8,740		31,523
Liability for off-balance sheet credit exposure		1,644			16			12			-			384			-			-			637		2,693
Total allowance for credit losses	$	7,974		$	9,915		$	2,693		$	602		$	3,415		$	-		$	240		$	9,377	$	34,216

	Allowance for Credit Losses
	For the Six Months Ended June 30, 2012
												Consumer			Purchased			Purchased
				Commercial					Residential			Installment			Non-covered			Covered
	Commercial			Real Estate			Construction		Real Estate			and Other			Loans			Loans			Unallocated			Total
	(In thousands)
Allowance for loan losses:
Balance at beginning of period	$	6,012		$	10,611		$	2,342	$	781		$	3,072		$	-		$	-		$	9,779		$	32,597
Additions:
Provision		3,259			203			141		753			1,444			25			814			(1,039	)		5,600
Deductions:
Chargeoffs		(3,558	)		(948	)		-		(932	)		(2,864	)		(25	)		(612	)		-			(8,939	)
Recoveries		617			33			198		-			1,379			-			38			-			2,265
Net loan and lease losses		(2,941	)		(915	)		198		(932	)		(1,485	)		(25	)		(574	)		-			(6,674	)
Balance at end of period		6,330			9,899			2,681		602			3,031			-			240			8,740			31,523
Liability for off-balance sheet credit exposure		1,644			16			12		-			384			-			-			637			2,693
Total allowance for credit losses	$	7,974		$	9,915		$	2,693	$	602		$	3,415		$	-		$	240		$	9,377		$	34,216

	Allowance for Credit Losses
	For the Three Months Ended June 30, 2011
												Consumer			Purchased
				Commercial					Residential			Installment			Covered
	Commercial			Real Estate			Construction		Real Estate			and Other			Loans		Unallocated			Total
	(In thousands)
Allowance for loan losses:
Balance at beginning of period	$	7,816		$	10,355		$	2,260	$	377		$	4,458		$	-	$	9,055		$	34,321
Additions:
Provision		2,133			(114	)		1,699		308			(262	)		-		(964	)		2,800
Deductions:
Chargeoffs		(3,663	)		-			-		(219	)		(1,339	)		-		-			(5,221	)
Recoveries		443			-			-		-			665			-		-			1,108
Net loan and lease losses		(3,220	)		-			-		(219	)		(674	)		-		-			(4,113	)
Balance at end of period		6,729			10,241			3,959		466			3,522			-		8,091			33,008
Liability for off-balance sheet credit exposure		1,772			33			105		-			147			-		636			2,693
Total allowance for credit losses	$	8,501		$	10,274		$	4,064	$	466		$	3,669		$	-	$	8,727		$	35,701

	Allowance for Credit Losses
	For the Six Months Ended June 30, 2011
												Consumer			Purchased
				Commercial					Residential			Installment			Covered
	Commercial			Real Estate		Construction			Real Estate			and Other			Loans		Unallocated		Total
	(In thousands)
Allowance for loan losses:
Balance at beginning of period	$	8,094		$	9,607	$	3,260		$	617		$	6,372		$	-	$	7,686	$	35,636
Additions:
Provision		2,979			634		2,174			376			(968	)		-		405		5,600
Deductions:
Chargeoffs		(4,987	)		-		(1,475	)		(527	)		(3,475	)		-		-		(10,464	)
Recoveries		643			-		-			-			1,593			-		-		2,236
Net loan and lease losses		(4,344	)		-		(1,475	)		(527	)		(1,882	)		-		-		(8,228	)
Balance at end of period		6,729			10,241		3,959			466			3,522			-		8,091		33,008
Liability for off-balance sheet credit exposure		1,772			33		105			-			147			-		636		2,693
Total allowance for credit losses	$	8,501		$	10,274	$	4,064		$	466		$	3,669		$	-	$	8,727	$	35,701

Schedule Of Recorded Investment In Loans Evaluted For Impairment [Table Text Block]

	Recorded Investment in Loans Evaluated for Impairment
	At June 30, 2012
	Commercial		Commercial Real Estate		Construction		Residential Real Estate		Consumer Installment and Other		Purchased Non- covered Loans		Purchased Covered Loans		Unallocated		Total
	(In thousands)
Allowance for credit losses:
Individually evaluated for impairment	$	1,297	$	-	$	2,124	$	90	$	-	$	-	$	-	$	-	$	3,511
Collectively evaluated for impairment		6,677		9,915		569		512		3,415		-		240		9,377		30,705
Purchased loans with evidence of credit deterioration		-		-		-		-		-		-		-		-		-
Total	$	7,974	$	9,915	$	2,693	$	602	$	3,415	$	-		240	$	9,377	$	34,216
Carrying value of loans:
Individually evaluated for impairment	$	6,846	$	3,389	$	3,068	$	621	$	-	$	5,727	$	6,635	$	-	$	26,286
Collectively evaluated for impairment		350,741		659,246		9,487		248,678		469,502		81,782		447,304		-		2,266,740
Purchased loans with evidence of credit deterioration		-		-		-		-		-		14,881		9,312		-		24,193
Total	$	357,587	$	662,635	$	12,555	$	249,299	$	469,502	$	102,390	$	463,251	$	-	$	2,317,219

	Recorded Investment in Loans Evaluated for Impairment
	At December 31, 2011
	Commercial		Commercial Real Estate		Construction		Residential Real Estate		Consumer Installment and Other		Purchased Non- covered Loans		Purchased Covered Loans		Unallocated		Total
	(In thousands)
Allowance for credit losses:
Individually evaluated for impairment	$	-	$	229	$	1,794	$	-	$	-	$	-	$	-	$	-	$	2,023
Collectively evaluated for impairment		7,672		10,382		582		781		3,270		-		-		10,580		33,267
Purchased loans with evidence of credit deterioration		-		-		-		-		-		-		-		-		-
Total	$	7,672	$	10,611	$	2,376	$	781	$	3,270	$	-	$	-	$	10,580	$	35,290
Carrying value of loans:
Individually evaluated for impairment	$	-	$	1,399	$	3,126	$	-	$	-	$	5,611	$	5,988	$	-	$	16,124
Collectively evaluated for impairment		398,446		703,256		11,454		271,111		473,815		104,738		510,699		-		2,473,519
Purchased loans with evidence of credit deterioration		-		-		-		-		-		15,572		18,591		-		34,163
Total	$	398,446	$	704,655	$	14,580	$	271,111	$	473,815	$	125,921	$	535,278	$	-	$	2,523,806

Financing Receivable Credit Quality Indicators [Table Text Block]

	Credit Risk Profile by Internally Assigned Grade
	At June 30, 2012
	Commercial		Commercial Real Estate		Construction		Residential Real Estate		Consumer Installment and Other		Purchased Non- covered Loans			Purchased Covered Loans (1)			Total
	(In thousands)
Grade:
Pass	$	325,257	$	603,075	$	8,529	$	243,968	$	467,643	$	53,700		$	321,037		$	2,023,209
Special mention		11,965		30,130		484		2,559		264		9,769			37,355			92,526
Substandard		17,993		29,430		3,542		2,772		1,055		45,406			133,790			233,988
Doubtful		2,372		-		-		-		13		1,543			1,435			5,363
Loss		-		-		-		-		527		-			-			527
Default risk purchase discount		-		-		-		-		-		(8,028	)		(30,366	)		(38,394	)
Total	$	357,587	$	662,635	$	12,555	$	249,299	$	469,502	$	102,390		$	463,251		$	2,317,219

	Credit Risk Profile by Internally Assigned Grade
	At December 31, 2011
	Commercial		Commercial Real Estate		Construction		Residential Real Estate		Consumer Installment and Other		Purchased Non- covered Loans			Purchased Covered Loans (1)			Total
	(In thousands)
Grade:
Pass	$	360,279	$	646,078	$	10,413	$	264,861	$	471,783	$	63,955		$	372,560		$	2,189,929
Special mention		17,247		29,103		341		1,961		600		15,701			32,365			97,318
Substandard		20,695		29,474		3,826		4,289		1,014		52,994			175,410			287,702
Doubtful		225		-		-		-		66		3,444			1,070			4,805
Loss		-		-		-		-		352		38			155			545
Default risk purchase discount		-		-		-		-		-		(10,211	)		(46,282	)		(56,493	)
Total	$	398,446	$	704,655	$	14,580	$	271,111	$	473,815	$	125,921		$	535,278		$	2,523,806

Past Due Financing Receivables [Table Text Block]

	Summary of Loans by Delinquency and Nonaccrual Status
	At June 30, 2012
	Current and Accruing		30-89 Days Past Due and Accruing		Past Due 90 days or More and Accruing		Nonaccrual		Total Loans
	(In thousands)
Commercial	$	347,329	$	2,583	$	-	$	7,675	$	357,587
Commercial real estate		646,856		11,385		-		4,394		662,635
Construction		9,400		87		-		3,068		12,555
Residential real estate		247,477		423		-		1,399		249,299
Consumer installment & other		465,145		3,822		525		10		469,502
Total originated loans		1,716,207		18,300		525		16,546		1,751,578
Purchased non-covered loans		80,850		1,668		-		19,872		102,390
Purchased covered loans		434,452		18,623		140		10,036		463,251
Total	$	2,231,509	$	38,591	$	665	$	46,454	$	2,317,219

	Summary of Loans by Delinquency and Nonaccrual Status
	At December 31, 2011
	Current and Accruing		30-89 Days Past Due and Accruing		Past Due 90 days or More and Accruing		Nonaccrual		Total Loans
	(In thousands)
Commercial	$	388,322	$	6,953	$	-	$	3,171	$	398,446
Commercial real estate		679,633		16,967		1,626		6,429		704,655
Construction		10,664		570		-		3,346		14,580
Residential real estate		262,917		5,648		-		2,546		271,111
Consumer installment & other		467,015		6,324		421		55		473,815
Total originated loans		1,808,551		36,462		2,047		15,547		1,862,607
Purchased non-covered loans		101,585		1,095		34		23,207		125,921
Purchased covered loans		501,823		18,902		241		14,312		535,278
Total	$	2,411,959	$	56,459	$	2,322	$	53,066	$	2,523,806

Effect Of Nonaccrual Loans On Interest Income [Table Text Block]

	For the Three Months						For the Six Months
	Ended June 30,
	2012			2011			2012			2011
	(In thousands)
Interest income that would have been recognized had the loans performed in accordance with their original terms	$	789		$	1,586		$	1,577		$	3,270
Less: Interest income recognized on nonaccrual loans		(494	)		(2,085	)		(1,336	)		(2,876	)
Total (addition) reduction of interest income	$	295		$	(499	)	$	241		$	394

Impaired Financing Receivables [Table Text Block]

	Impaired Loans
	At June 30, 2012
			Unpaid
	Recorded		Principal		Related
	Investment		Balance		Allowance
	(In thousands)
Impaired loans with no related allowance recorded:
Commercial	$	9,010	$	17,574	$	-
Commercial real estate		30,713		39,297		-
Construction		6,433		10,657		-
Residential real estate		982		984		-
Consumer installment and other		2,851		3,226		-
Impaired loans with an allowance recorded:
Commercial		3,097		3,123		1,297
Construction		3,068		3,183		2,124
Residential real estate		621		621		90
Total:
Commercial	$	12,107	$	20,697	$	1,297
Commercial real estate		30,713		39,297		-
Construction		9,501		13,840		2,124
Residential real estate		1,603		1,605		90
Consumer installment and other		2,851		3,226		-

	Impaired Loans
	At December 31, 2011
			Unpaid
	Recorded		Principal		Related
	Investment		Balance		Allowance
	(In thousands)
Impaired loans with no related allowance recorded:
Commercial	$	5,483	$	11,727	$	-
Commercial real estate		33,095		43,793		-
Construction		4,194		7,209		-
Consumer installment and other		2,990		3,658		-
Impaired loans with an allowance recorded:
Commercial real estate		1,399		1,399		229
Construction		3,126		3,183		1,794
Total:
Commercial	$	5,483	$	11,727	$	-
Commercial real estate		34,494		45,192		229
Construction		7,320		10,392		1,794
Consumer installment and other		2,990		3,658		-

Impaired Financing Receivables, Supplemental Schedule [Table Text Block]

	Impaired Loans
	For the Three Months Ended June 30,								For the Six Months Ended June 30,
	2012				2011				2012				2011
	Average		Recognized		Average		Recognized		Average		Recognized		Average		Recognized
	Recorded		Interest		Recorded		Interest		Recorded		Interest		Recorded		Interest
	Investment		Income		Investment		Income		Investment		Income		Investment		Income
	(In thousands)
Commercial	$	9,888	$	67	$	17,135	$	179	$	9,342	$	117	$	17,373	$	509
Commercial real estate		30,228		349		38,402		414		31,416		727		38,732		729
Construction		7,552		59		25,141		89		7,981		159		24,572		173
Residential real estate		1,112		-		449		-		957		-		449		-
Consumer installment and other		2,825		8		2,374		13		2,873		26		2,191		17
Total	$	51,605	$	483	$	83,501	$	695	$	52,569	$	1,029	$	83,317	$	1,428

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

	Troubled Debt Restructurings
	At June 30, 2012
							Period-End
							Individual
	Number of		Pre-Modification		Period-End		Impairment
	Contracts		Carrying Value		Carrying Value		Allowance
	(In thousands)
Commercial		2	$	326	$	308	$	-
Construction		1		3,183		3,068		2,124
Commercial real estate		2		1,817		1,799		-
Total		5	$	5,326	$	5,175	$	2,124

	Troubled Debt Restructurings
	At December 31, 2011
							Period-End
							Individual
	Number of		Pre-Modification		Period-End		Impairment
	Contracts		Carrying Value		Carrying Value		Allowance
	(In thousands)
Commercial		2	$	326	$	321	$	-
Construction		1		3,183		3,126		1,794
Total		3	$	3,509	$	3,447	$	1,794

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Note 8 - Fair Value Measurements

6 Months Ended

Jun. 30, 2012

Fair Value Disclosures [Text Block]

Note 8:  Fair Value Measurements

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures.  Available for sale investment securities are recorded at fair value on a recurring basis.  Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as certain loans held for investment and other assets.  These nonrecurring fair value adjustments typically involve the lower-of-cost-or-fair value accounting of individual assets.

In accordance with the Fair Value Measurement and Disclosure topic of the Codification, the Company bases its fair values on the price that would be received to sell an asset or paid to transfer a liability in the principal market or most advantageous market for an asset or liability in an orderly transaction between market participants on the measurement date under current market conditions.  A fair value measurement reflects all of the assumptions that market participants would use in pricing the asset or liability, including assumptions about the risk inherent in a particular valuation technique, the effect of a restriction on the sale or use of an asset, and the risk of nonperformance.

The Company groups its assets and liabilities measured at fair value into a three-level hierarchy, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. When the valuation assumptions used to measure the fair value of the asset or liability are categorized within different levels of the fair value hierarchy, the asset or liability is categorized in its entirety within the lowest level of the hierarchy. These levels are:

Level 1 – Valuation is based upon quoted prices for identical instruments traded in active exchange markets, such as the New York Stock Exchange.  Level 1 includes U.S. Treasury, equity securities and federal agency securities, which are traded by dealers or brokers in active markets.  Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities.

Level 2 – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 2 includes mortgage-backed securities, corporate securities, asset-backed securities, municipal bonds and residential collateralized mortgage obligations as well as other real estate owned and impaired loans collateralized by real property where the fair value is generally based upon independent market prices or appraised values of the collateral.

Level 3 – Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect the Company’s estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. Level 3 includes those impaired loans collateralized by business assets where the expected cash flow has been used in determining the fair value.

When the Company changes its valuation assumptions for measuring financial assets and financial liabilities at fair value, either due to changes in current market conditions or other factors, it may need to transfer those assets or liabilities to another level in the hierarchy based on the new assumptions used. The Company recognizes these transfers at the end of the reporting period that the transfers occur. For the six months ended June 30, 2012 and 2011, there were no transfers in or out of levels 1, 2 or 3.

Assets Recorded at Fair Value on a Recurring Basis

The table below presents assets measured at fair value on a recurring basis.

	At June 30, 2012
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2 )		Significant Unobservable Inputs (Level 3 )
	(In thousands)
U.S. Treasury securities	$	3,573	$	3,573	$	-	$	-
Securities of U.S. Government sponsored entities		100,899		100,899		-		-
Municipal bonds:
Federally Tax-exempt - California		80,105		-		80,105		-
Federally Tax-exempt - 26 other states		149,347		-		149,347		-
Taxable - California		1,319		-		1,319		-
Taxable - 1 other state		5,421		-		5,421		-
Residential mortgage-backed securities ("MBS"):
Guaranteed by GNMA		33,848		-		33,848		-
Issued by FNMA and FHLMC		43,590		-		43,590		-
Residential collateralized mortgage obligations:
Issued or guaranteed by FNMA, FHLMC, or GNMA		41,609		-		41,609		-
All other		3,996		-		3,996		-
Commercial mortgage-backed securities		4,370		-		4,370		-
Asset-backed securities		16,746		-		16,746		-
FHLMC and FNMA stock		2,691		2,691		-		-
Corporate securities		216,692		-		216,692		-
Other securities		4,511		2,560		1,951		-
Total investment securities available for sale	$	708,717	$	109,723	$	598,994	$	-

	At December 31, 2011
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2 )		Significant Unobservable Inputs (Level 3 )
	(In thousands)
U.S. Treasury securities	$	3,596	$	3,596	$	-	$	-
Securities of U.S. Government sponsored entities		117,472		117,472		-		-
Municipal bonds:
Federally Tax-exempt - California		80,307		-		80,307		-
Federally Tax-exempt - 27 other states		159,031		-		159,031		-
Taxable - California		1,345		-		1,345		-
Taxable - 1 other state		5,410		-		5,410		-
Residential mortgage-backed securities ("MBS"):
Guaranteed by GNMA		37,112		-		37,112		-
Issued by FNMA and FHLMC		53,296		-		53,296		-
Residential collateralized mortgage obligations:
Issued or guaranteed by FNMA, FHLMC, or GNMA		46,130		-		46,130		-
All other		5,034		-		5,034		-
Commercial mortgage-backed securities		4,530		-		4,530		-
Asset-backed securities		7,306		-		7,306		-
FHLMC and FNMA stock		1,847		1,847		-		-
Corporate securities		112,199		-		112,199		-
Other securities		4,138		2,186		1,952		-
Total investment securities available for sale	$	638,753	$	125,101	$	513,652	$	-

Assets Recorded at Fair Value on a Nonrecurring Basis

The Company may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from application of lower-of-cost-or-market accounting of individual assets. For assets measured at fair value on a nonrecurring basis that were still held in the balance sheet at June 30, 2012 and December 31, 2011, the following table provides the level of valuation assumptions used to determine each adjustment and the carrying value of the related assets at period end.

	At June 30, 2012
	Fair Value		Level 1		Level 2		Level 3		Total Losses
	(In thousands)
Non-covered other real estate owned (1)	$	6,244	$	-	$	6,244	$	-	$	(1,081	)
Covered other real estate owned (2)		9,236		-		9,236		-		(252	)
Originated impaired loans (3)		5,825		-		4,625		1,200		(2,214	)
Purchased covered impaired loans (4)		3,304		-		3,304		-		(191	)
Total assets measured at fair value on a nonrecurring basis	$	24,609	$	-	$	23,409	$	1,200	$	(3,738	)

	At December 31, 2011
	Fair Value		Level 1		Level 2		Level 3		Total Losses
	(In thousands)
Non-covered other real estate owned (1)	$	6,350	$	-	$	6,350	$	-	$	(1,000	)
Covered other real estate owned (2)		10,695		-		10,695		-		(578	)
Originated impaired loans (3)		2,502		-		2,502		-		-
Total assets measured at fair value on a nonrecurring basis	$	19,547	$	-	$	19,547	$	-	$	(1,578	)

(1) Represents the fair value of foreclosed real estate owned that was measured at fair value subsequent to its initial classification as foreclosed assets.

(2) Represents the fair value of foreclosed real estate owned that is covered by the Indemnification Agreement with the FDIC where the real estate was written down subsequent to its initial classification as foreclosed assets. Total losses are reduced by the 80% indemnified loss percentage.

(3) Represents carrying value of loans for which adjustments are predominantly based on the appraised value of the collateral and loans considered impaired under FASB ASC 310-10-35, Subsequent Measurement of Receivables, where a specific reserve has been established or a chargeoff has been recorded.

(4) Represents the carrying value of loans covered by the Indemnification Agreement with the FDIC for which adjustments are predominantly based on the appraised value of the collateral and loans considered impaired under FASB ASC 310-10-35, Subsequent Measurement of Receivables, where a specific reserve has been established or a chargeoff has been recorded. Total losses are reduced by the 80% indemnified loss percentage.

Disclosures about Fair Value of Financial Instruments

The following section describes the valuation methodologies used by the Company for estimating fair value of financial instruments not recorded at fair value in the balance sheet.

Cash and Due from Banks  The carrying amount of cash and amounts due from banks approximate fair value due to the relatively short period of time between their origination and their expected realization.

Investment Securities Held to Maturity  The fair values of investment securities were estimated using quoted prices as described above for Level 1 and Level 2 valuation.

Loans  Loans were separated into two groups for valuation. Variable rate loans, except for those described below, which reprice frequently with changes in market rates were valued using historical cost. Fixed rate loans and variable rate loans that have reached their minimum contractual interest rates were valued by discounting the future cash flows expected to be received from the loans using current interest rates charged on loans with similar characteristics. Additionally, the allowance for loan losses of $31,523 thousand at June 30, 2012 and $32,597 thousand at December 31, 2011 and the fair value discount due to credit default risk associated with purchased covered and purchased non-covered loans of $30,366 thousand and $8,028 thousand, respectively at June 30, 2012 and purchased covered and purchased non-covered loans of $46,282 thousand and $10,211 thousand, respectively at December 31, 2011 were applied against the estimated fair values to recognize estimated future defaults of contractual cash flows. The Company does not consider these values to be a liquidation price for the loans.

FDIC Receivable  The fair value of the FDIC receivable recorded in Other Assets was estimated by discounting estimated future cash flows using current market rates for financial instruments with similar characteristics.

Deposit Liabilities  The carrying amount of checking accounts, savings accounts and money market accounts approximates fair value due to the relatively short period of time between their origination and their expected realization.  The fair values of time deposits were estimated by discounting estimated future cash flows related to these financial instruments using current market rates for financial instruments with similar characteristics.

Short-Term Borrowed Funds  The carrying amount of securities sold under agreement to repurchase and other short-term borrowed funds approximate fair value due to the relatively short period of time between their origination and their expected realization.

Federal Home Loan Bank Advances  The fair values of FHLB advances were estimated by using redemption amounts quoted by the Federal Home Loan Bank of San Francisco.

Term Repurchase Agreement  The fair value of the term repurchase agreement was estimated by using interpolated yields for financial instruments with similar characteristics.

Debt Financing  The fair value of debt financing was estimated by using interpolated yields for financial instruments with similar characteristics.

The table below is a summary of fair value estimates for financial instruments and the level of the fair value hierarchy within which the fair value measurements are categorized, excluding financial instruments recorded at fair value on a recurring basis. The values assigned do not necessarily represent amounts which ultimately may be realized. In addition, these values do not give effect to discounts to fair value which may occur when financial instruments are sold in larger quantities.  The carrying amounts in the following table are recorded in the balance sheet under the indicated captions.

The Company has not included assets and liabilities that are not financial instruments, such as goodwill, long-term relationships with deposit, merchant processing and trust customers, other purchased intangibles, premises and equipment, deferred taxes and other assets and liabilities. The total estimated fair values do not represent, and should not be construed to represent, the underlying value of the Company.

	At June 30, 2012
	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2 )		Significant Unobservable Inputs (Level 3 )
Financial Assets	(In thousands)
Cash and due from banks	$	320,925	$	320,925	$	320,925	$	-	$	-
Investment securities held to maturity:
Securities of U.S. Government sponsored entities		4,287		4,316		4,316		-		-
Municipal bonds:
Federally Tax-exempt - California		97,154		100,805		-		100,805		-
Federally Tax-exempt - 41 other states		552,235		569,409		-		569,409		-
Taxable - California		7,855		7,892		-		7,892		-
Taxable - 4 other states		10,142		10,224		-		10,224		-
Residential mortgage-backed securities ("MBS"):
Guaranteed by GNMA		15,614		15,969		-		15,969		-
Issued by FNMA and FHLMC		66,732		68,200		-		68,200		-
Residential collateralized mortgage obligations:
Issued or guaranteed by FNMA, FHLMC, or GNMA		439,404		442,801		-		442,801		-
All other		13,223		13,197		-		13,197		-
Total investment securities held to maturity		1,206,646		1,232,813		4,316		1,228,497		-
Loans		2,285,696		2,307,635		-		-		2,307,635
Other assets - FDIC receivable		20,885		20,861		-		-		20,861
Financial Liabilities
Deposits:
Noninterest bearing	$	1,573,188	$	1,573,188	$	1,573,188	$	-	$	-
Transaction		742,633		742,633		742,633		-		-
Savings		1,136,876		1,136,876		1,136,876		-		-
Time		755,802		758,350		-		-		758,350
Total Deposits		4,208,499		4,211,047		3,452,697		-		758,350
Short-term borrowed funds		81,582		81,582		81,582		-		-
Federal Home Loan Bank advances		25,911		26,364		26,364		-
Term repurchase agreement		10,000		10,166		-		10,166		-
Debt financing		15,000		15,485		-		15,485		-
	At December 31, 2011
	Carrying		Estimated
	Amount		Fair Value
	(In thousands)
Financial Assets
Cash and due from banks	$	530,045	$	530,045
Investment securities held to maturity		922,803		947,493
Loans		2,491,209		2,515,095
Other assets - FDIC receivable		40,113		40,046
Financial Liabilities
Deposits	$	4,249,921	$	4,250,164
Short-term borrowed funds		115,689		115,689
Federal Home Loan Bank advances		26,023		26,532
Term repurchase agreement		10,000		10,242
Debt financing		15,000		15,222

The majority of the Company’s standby letters of credit and other commitments to extend credit carry current market interest rates if converted to loans. No premium or discount was ascribed to these commitments because virtually all funding would be at current market rates.

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Note 6 - Goodwill and Identifiable Intangible Assets

6 Months Ended

Jun. 30, 2012

Goodwill and Intangible Assets Disclosure [Text Block]

Note 6: Goodwill and Identifiable Intangible Assets

The Company has recorded goodwill and other identifiable intangibles associated with purchase business combinations. Goodwill is not amortized, but is periodically evaluated for impairment. The Company did not recognize impairment during the six months ended June 30, 2012 and 2011.

The carrying values of goodwill were (in thousands):

June 30, 2012	$	121,673
December 31, 2011	$	121,673

Identifiable intangibles are amortized to their estimated residual values over their expected useful lives. Such lives and residual values are also periodically reassessed to determine if any amortization period adjustments are indicated. During the six months ended June 30, 2012 and 2011, no such adjustments were recorded.

The gross carrying amount of identifiable intangible assets and accumulated amortization was:

	At June 30,					At December 31,
	2012					2011
	(In thousands)
	Gross					Gross
	Carrying		Accumulated			Carrying		Accumulated
	Amount		Amortization			Amount		Amortization
Core Deposit Intangibles	$	56,808	$	(32,551	)	$	56,808	$	(30,070	)
Merchant Draft Processing Intangible		10,300		(8,669	)		10,300		(8,409	)
Total Identifiable Intangible Assets	$	67,108	$	(41,220	)	$	67,108	$	(38,479	)

As of June 30, 2012, the current year and estimated future amortization expense for identifiable intangible assets was:

	At June 30, 2012
			Merchant
	Core		Draft
	Deposit		Processing
	Intangibles		Intangible		Total
	(In thousands)
For the six months ended June 30, 2012 (actual)	$	2,481	$	260	$	2,741
Estimate for year ended December 31, 2012		4,868		500		5,368
2013		4,304		400		4,704
2014		3,946		324		4,270
2015		3,594		262		3,856
2016		3,292		212		3,504
2017		2,853		164		3,017

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Note 7 - Commitments and Contingent Liabilities

6 Months Ended

Jun. 30, 2012

Commitments and Contingencies Disclosure [Text Block]

Note 7: Commitments and Contingent Liabilities

Loan commitments are agreements to lend to a customer provided there is no violation of any condition established in the agreement. Commitments generally have fixed expiration dates or other termination clauses. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future funding requirements. Loan commitments are subject to the Company’s normal credit policies and collateral requirements. Unfunded loan commitments were $329,779 thousand and $348,621 thousand at June 30, 2012 and December 31, 2011, respectively. Standby letters of credit commit the Company to make payments on behalf of customers when certain specified future events occur. Standby letters of credit are primarily issued to support customers’ short-term financing requirements and must meet the Company’s normal credit policies and collateral requirements. Standby letters of credit outstanding totaled $26,377 thousand and $27,221 thousand at June 30, 2012 and December 31, 2011, respectively. The Company also had commitments for commercial and similar letters of credit of $454 thousand and $454 thousand at June 30, 2012 and December 31, 2011, respectively.

Due to the nature of its business, the Company is subject to various threatened or filed legal cases. Based on the advice of legal counsel, the Company does not expect such cases will have a material, adverse effect on its financial position or results of operations. Legal costs related to covered assets are eighty percent indemnified under loss-sharing agreements with the FDIC if certain conditions are met.

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Note 9 - Debt Financing

6 Months Ended

Jun. 30, 2012

Debt Disclosure [Text Block]

Note 9: Debt Financing

Unsecured debt financing was as follows:

	At June 30,		At December 31,
	2012		2011
	(In thousands)
Senior fixed-rate note	$	15,000	$	15,000
Total debt financing	$	15,000	$	15,000

The Senior note was issued by Westamerica Bancorporation on October 31, 2003 and matures October 31, 2013. Interest of 5.31% per annum is payable semiannually on April 30 and October 31, with principal due at maturity.

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Note 4 - Loans and Allowance for Credit Losses (Detail) - Allowance for Credit Losses (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Allowance for loan losses:
Balance at beginning of period	$ 31,883	$ 34,321	$ 32,597	$ 35,636
Additions:
Provision	2,800	2,800	5,600	5,600
Deductions:
Chargeoffs	(4,241)	(5,221)	(8,939)	(10,464)
Recoveries	1,081	1,108	2,265	2,236
Net loan and lease losses	(3,160)	(4,113)	(6,674)	(8,228)
Balance at end of period	31,523	33,008	31,523	33,008
Liability for off-balance sheet credit exposure	2,693	2,693	2,693	2,693
Total allowance for credit losses	34,216	35,701	34,216	35,701	35,290
Commercial [Member]
Allowance for loan losses:
Balance at beginning of period	6,814	7,816	6,012	8,094
Additions:
Provision	1,984	2,133	3,259	2,979
Deductions:
Chargeoffs	(2,696)	(3,663)	(3,558)	(4,987)
Recoveries	228	443	617	643
Net loan and lease losses	(2,468)	(3,220)	(2,941)	(4,344)
Balance at end of period	6,330	6,729	6,330	6,729
Liability for off-balance sheet credit exposure	1,644	1,772	1,644	1,772
Total allowance for credit losses	7,974	8,501	7,974	8,501	7,672
Commercial Real Estate Loans [Member]
Allowance for loan losses:
Balance at beginning of period	11,427	10,355	10,611	9,607
Additions:
Provision	(1,561)	(114)	203	634
Deductions:
Chargeoffs			(948)
Recoveries	33		33
Net loan and lease losses	33		(915)
Balance at end of period	9,899	10,241	9,899	10,241
Liability for off-balance sheet credit exposure	16	33	16	33
Total allowance for credit losses	9,915	10,274	9,915	10,274	10,611
Construction [Member]
Allowance for loan losses:
Balance at beginning of period	2,755	2,260	2,342	3,260
Additions:
Provision	(270)	1,699	141	2,174
Deductions:
Chargeoffs				(1,475)
Recoveries	196		198
Net loan and lease losses	196		198	(1,475)
Balance at end of period	2,681	3,959	2,681	3,959
Liability for off-balance sheet credit exposure	12	105	12	105
Total allowance for credit losses	2,693	4,064	2,693	4,064	2,376
Residential Real Estate Loans [Member]
Allowance for loan losses:
Balance at beginning of period	645	377	781	617
Additions:
Provision	19	308	753	376
Deductions:
Chargeoffs	(62)	(219)	(932)	(527)
Net loan and lease losses	(62)	(219)	(932)	(527)
Balance at end of period	602	466	602	466
Total allowance for credit losses	602	466	602	466	781
Consumer Installment And Other [Member]
Allowance for loan losses:
Balance at beginning of period	2,825	4,458	3,072	6,372
Additions:
Provision	817	(262)	1,444	(968)
Deductions:
Chargeoffs	(1,211)	(1,339)	(2,864)	(3,475)
Recoveries	600	665	1,379	1,593
Net loan and lease losses	(611)	(674)	(1,485)	(1,882)
Balance at end of period	3,031	3,522	3,031	3,522
Liability for off-balance sheet credit exposure	384	147	384	147
Total allowance for credit losses	3,415	3,669	3,415	3,669	3,270
Purchased Non-Covered Loans [Member]
Additions:
Provision	25		25
Deductions:
Chargeoffs	(25)		(25)
Net loan and lease losses	(25)		(25)
Purchased Covered Loans [Member]
Allowance for loan losses:
Balance at beginning of period	139
Additions:
Provision	324		814
Deductions:
Chargeoffs	(247)		(612)
Recoveries	24		38
Net loan and lease losses	(223)		(574)
Balance at end of period	240		240
Total allowance for credit losses	240		240
Unallocated [Member]
Allowance for loan losses:
Balance at beginning of period	7,278	9,055	9,779	7,686
Additions:
Provision	1,462	(964)	(1,039)	405
Deductions:
Balance at end of period	8,740	8,091	8,740	8,091
Liability for off-balance sheet credit exposure	637	636	637	636
Total allowance for credit losses	$ 9,377	$ 8,727	$ 9,377	$ 8,727

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Note 9 - Debt Financing (Detail)	Jun. 30, 2012
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate	5.31%

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Note 8 - Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2012

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

	At June 30, 2012
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2 )		Significant Unobservable Inputs (Level 3 )
	(In thousands)
U.S. Treasury securities	$	3,573	$	3,573	$	-	$	-
Securities of U.S. Government sponsored entities		100,899		100,899		-		-
Municipal bonds:
Federally Tax-exempt - California		80,105		-		80,105		-
Federally Tax-exempt - 26 other states		149,347		-		149,347		-
Taxable - California		1,319		-		1,319		-
Taxable - 1 other state		5,421		-		5,421		-
Residential mortgage-backed securities ("MBS"):
Guaranteed by GNMA		33,848		-		33,848		-
Issued by FNMA and FHLMC		43,590		-		43,590		-
Residential collateralized mortgage obligations:
Issued or guaranteed by FNMA, FHLMC, or GNMA		41,609		-		41,609		-
All other		3,996		-		3,996		-
Commercial mortgage-backed securities		4,370		-		4,370		-
Asset-backed securities		16,746		-		16,746		-
FHLMC and FNMA stock		2,691		2,691		-		-
Corporate securities		216,692		-		216,692		-
Other securities		4,511		2,560		1,951		-
Total investment securities available for sale	$	708,717	$	109,723	$	598,994	$	-

	At December 31, 2011
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2 )		Significant Unobservable Inputs (Level 3 )
	(In thousands)
U.S. Treasury securities	$	3,596	$	3,596	$	-	$	-
Securities of U.S. Government sponsored entities		117,472		117,472		-		-
Municipal bonds:
Federally Tax-exempt - California		80,307		-		80,307		-
Federally Tax-exempt - 27 other states		159,031		-		159,031		-
Taxable - California		1,345		-		1,345		-
Taxable - 1 other state		5,410		-		5,410		-
Residential mortgage-backed securities ("MBS"):
Guaranteed by GNMA		37,112		-		37,112		-
Issued by FNMA and FHLMC		53,296		-		53,296		-
Residential collateralized mortgage obligations:
Issued or guaranteed by FNMA, FHLMC, or GNMA		46,130		-		46,130		-
All other		5,034		-		5,034		-
Commercial mortgage-backed securities		4,530		-		4,530		-
Asset-backed securities		7,306		-		7,306		-
FHLMC and FNMA stock		1,847		1,847		-		-
Corporate securities		112,199		-		112,199		-
Other securities		4,138		2,186		1,952		-
Total investment securities available for sale	$	638,753	$	125,101	$	513,652	$	-

Fair Value Measurements, Nonrecurring [Table Text Block]

	At June 30, 2012
	Fair Value		Level 1		Level 2		Level 3		Total Losses
	(In thousands)
Non-covered other real estate owned (1)	$	6,244	$	-	$	6,244	$	-	$	(1,081	)
Covered other real estate owned (2)		9,236		-		9,236		-		(252	)
Originated impaired loans (3)		5,825		-		4,625		1,200		(2,214	)
Purchased covered impaired loans (4)		3,304		-		3,304		-		(191	)
Total assets measured at fair value on a nonrecurring basis	$	24,609	$	-	$	23,409	$	1,200	$	(3,738	)

	At December 31, 2011
	Fair Value		Level 1		Level 2		Level 3		Total Losses
	(In thousands)
Non-covered other real estate owned (1)	$	6,350	$	-	$	6,350	$	-	$	(1,000	)
Covered other real estate owned (2)		10,695		-		10,695		-		(578	)
Originated impaired loans (3)		2,502		-		2,502		-		-
Total assets measured at fair value on a nonrecurring basis	$	19,547	$	-	$	19,547	$	-	$	(1,578	)

Fair Value, by Balance Sheet Grouping [Table Text Block]

	At June 30, 2012
	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2 )		Significant Unobservable Inputs (Level 3 )
Financial Assets	(In thousands)
Cash and due from banks	$	320,925	$	320,925	$	320,925	$	-	$	-
Investment securities held to maturity:
Securities of U.S. Government sponsored entities		4,287		4,316		4,316		-		-
Municipal bonds:
Federally Tax-exempt - California		97,154		100,805		-		100,805		-
Federally Tax-exempt - 41 other states		552,235		569,409		-		569,409		-
Taxable - California		7,855		7,892		-		7,892		-
Taxable - 4 other states		10,142		10,224		-		10,224		-
Residential mortgage-backed securities ("MBS"):
Guaranteed by GNMA		15,614		15,969		-		15,969		-
Issued by FNMA and FHLMC		66,732		68,200		-		68,200		-
Residential collateralized mortgage obligations:
Issued or guaranteed by FNMA, FHLMC, or GNMA		439,404		442,801		-		442,801		-
All other		13,223		13,197		-		13,197		-
Total investment securities held to maturity		1,206,646		1,232,813		4,316		1,228,497		-
Loans		2,285,696		2,307,635		-		-		2,307,635
Other assets - FDIC receivable		20,885		20,861		-		-		20,861
Financial Liabilities
Deposits:
Noninterest bearing	$	1,573,188	$	1,573,188	$	1,573,188	$	-	$	-
Transaction		742,633		742,633		742,633		-		-
Savings		1,136,876		1,136,876		1,136,876		-		-
Time		755,802		758,350		-		-		758,350
Total Deposits		4,208,499		4,211,047		3,452,697		-		758,350
Short-term borrowed funds		81,582		81,582		81,582		-		-
Federal Home Loan Bank advances		25,911		26,364		26,364		-
Term repurchase agreement		10,000		10,166		-		10,166		-
Debt financing		15,000		15,485		-		15,485		-
	At December 31, 2011
	Carrying		Estimated
	Amount		Fair Value
	(In thousands)
Financial Assets
Cash and due from banks	$	530,045	$	530,045
Investment securities held to maturity		922,803		947,493
Loans		2,491,209		2,515,095
Other assets - FDIC receivable		40,113		40,046
Financial Liabilities
Deposits	$	4,249,921	$	4,250,164
Short-term borrowed funds		115,689		115,689
Federal Home Loan Bank advances		26,023		26,532
Term repurchase agreement		10,000		10,242
Debt financing		15,000		15,222

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Note 3 - Investment Securities (Detail) - Schedule of amortized cost, unrealized gains and losses, and fair value - held to maturity investment securities portfolio (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Amortized Cost	$ 1,206,646	$ 922,803
Gross Unrealized Gains	27,733	27,894
Gross Unrealized Losses	(1,566)	(3,204)
Fair Value	1,232,813	947,493
US Government-sponsored Enterprises Debt Securities [Member]
Amortized Cost	4,287
Gross Unrealized Gains	29
Fair Value	4,316
Residential Mortgage Backed Securities [Member]
Amortized Cost	82,346	54,869
Gross Unrealized Gains	1,896	1,532
Gross Unrealized Losses	(73)	(77)
Fair Value	84,169	56,324
US States and Political Subdivisions Debt Securities [Member]
Amortized Cost	667,386	625,390
Gross Unrealized Gains	21,826	23,581
Gross Unrealized Losses	(882)	(496)
Fair Value	688,330	648,475
Residential Collateralized Mortgage Obligations [Member]
Amortized Cost	452,627	242,544
Gross Unrealized Gains	3,982	2,781
Gross Unrealized Losses	(611)	(2,631)
Fair Value	$ 455,998	$ 242,694

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Note 8 - Fair Value Measurements (Detail) - Assets measured at fair value on a nonrecurring basis (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012		Dec. 31, 2011
Fair Value	$ 24,609		$ 19,547
Total Losses	(3,738)		(1,578)
Non-Covered Other Real Estate Owned [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value	6,244	[1]	6,350	[1]
Non-Covered Other Real Estate Owned [Member]
Fair Value	6,244	[1]	6,350	[1]
Total Losses	(1,081)		(1,000)
Covered Other Real Estate Owned [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value	9,236	[2]	10,695	[2]
Covered Other Real Estate Owned [Member]
Fair Value	9,236	[2]	10,695	[2]
Total Losses	(252)		(578)
Originated Impaired Loans [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value	4,625	[3]	2,502	[3]
Originated Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value	1,200	[3]
Originated Impaired Loans [Member]
Fair Value	5,825	[3]	2,502	[3]
Total Losses	(2,214)
Purchased Covered Impaired Loans [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value	3,304	[4]
Purchased Covered Impaired Loans [Member]
Fair Value	3,304	[4]
Total Losses	(191)
Fair Value, Inputs, Level 2 [Member]
Fair Value	23,409		19,547
Fair Value, Inputs, Level 3 [Member]
Fair Value	$ 1,200

[1] Represents the fair value of foreclosed real estate owned that was measured at fair value subsequent to its initial classification as foreclosed assets.

[2] Represents the fair value of foreclosed real estate owned that is covered by the Indemnification Agreement with the FDIC where the real estate was written down subsequent to its initial classification as foreclosed assets. Total losses are reduced by the 80% indemnified loss percentage.

[3] Represents carrying value of loans for which adjustments are predominantly based on the appraised value of the collateral and loans considered impaired under FASB ASC 310-10-35, Subsequent Measurement of Receivables, where a specific reserve has been established or a chargeoff has been recorded.

[4] Represents the carrying value of loans covered by the Indemnification Agreement with the FDIC for which adjustments are predominantly based on the appraised value of the collateral and loans considered impaired under FASB ASC 310-10-35, Subsequent Measurement of Receivables, where a specific reserve has been established or a chargeoff has been recorded. Total losses are reduced by the 80% indemnified loss percentage.

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Note 4 - Loans and Allowance for Credit Losses (Detail) - Troubled debt restructurings (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Number of Contracts	5	3
Pre-Modification Carrying Value	$ 5,326	$ 3,509
Period-End Carrying Value	5,175	3,447
Period-End Individual Impairment Allowance	2,124	1,794
Commercial [Member]
Number of Contracts	2	2
Pre-Modification Carrying Value	326	326
Period-End Carrying Value	308	321
Construction [Member]
Number of Contracts	1	1
Pre-Modification Carrying Value	3,183	3,183
Period-End Carrying Value	3,068	3,126
Period-End Individual Impairment Allowance	2,124	1,794
Commercial Real Estate Loans [Member]
Number of Contracts	2
Pre-Modification Carrying Value	1,817
Period-End Carrying Value	$ 1,799

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Consolidated Statements of Comprehensive Income (unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Net income	$ 20,964	$ 21,269	$ 41,969	$ 43,651
Other comprehensive income:
Increase in net unrealized gains on securities available for sale	1,451	9,861	2,835	13,931
Deferred tax expense	(610)	(4,145)	(1,192)	(5,857)
Increase in net unrealized gains on securities available for sale, net of tax	841	5,716	1,643	8,074
Post-retirement benefit transition obligation amortization	15	15	30	30
Deferred tax expense	(6)	(6)	(12)	(12)
Post-retirement benefit transition obligation amortization, net of tax	9	9	18	18
Total other comprehensive income	850	5,725	1,661	8,092
Total comprehensive income	$ 21,814	$ 26,994	$ 43,630	$ 51,743

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Note 3 - Investment Securities

6 Months Ended

Jun. 30, 2012

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Note 3:  Investment Securities

The amortized cost, unrealized gains and losses accumulated in other comprehensive income, and fair value of investment securities available for sale follows:

	Investment Securities Available for Sale
	At June 30, 2012
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(In thousands)
U.S. Treasury securities	$	3,528	$	45	$	-		$	3,573
Securities of U.S. Government sponsored entities		100,493		407		(1	)		100,899
Residential mortgage-backed securities		72,394		5,046		(2	)		77,438
Commercial mortgage-backed securities		4,306		64		-			4,370
Obligations of States and political subdivisions		223,237		13,234		(279	)		236,192
Residential collateralized mortgage obligations		43,959		1,646		-			45,605
Asset-backed securities		16,964		-		(218	)		16,746
FHLMC and FNMA stock		824		1,871		(4	)		2,691
Corporate securities		217,952		818		(2,078	)		216,692
Other securities		2,236		2,325		(50	)		4,511
Total	$	685,893	$	25,456	$	(2,632	)	$	708,717

The amortized cost, unrealized gains and losses, and fair value of investment securities held to maturity follows:

	Investment Securities Held to Maturity
	At June 30, 2012
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(In thousands)
Securities of U.S. Government sponsored entities	$	4,287	$	29	$	-		$	4,316
Residential mortgage-backed securities		82,346		1,896		(73	)		84,169
Obligations of States and political subdivisions		667,386		21,826		(882	)		688,330
Residential collateralized mortgage obligations		452,627		3,982		(611	)		455,998
Total	$	1,206,646	$	27,733	$	(1,566	)	$	1,232,813

The amortized cost, unrealized gains and losses accumulated in other comprehensive income, and fair value of investment securities available for sale follows:

	Investment Securities Available for Sale
	At December 31, 2011
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(In thousands)
U.S. Treasury securities	$	3,537	$	59	$	-		$	3,596
Securities of U.S. Government sponsored entities		117,150		375		(53	)		117,472
Residential mortgage-backed securities		84,961		5,457		(10	)		90,408
Commercial mortgage-backed securities		4,506		27		(3	)		4,530
Obligations of States and political subdivisions		234,522		11,839		(268	)		246,093
Residential collateralized mortgage obligations		49,111		2,053		-			51,164
Asset-backed securities		7,566		-		(260	)		7,306
FHLMC and FNMA stock		824		1,027		(4	)		1,847
Corporate securities		114,286		203		(2,290	)		112,199
Other securities		2,302		1,884		(48	)		4,138
Total	$	618,765	$	22,924	$	(2,936	)	$	638,753

The amortized cost, unrealized gains and losses, and fair value of investment securities held to maturity follows:

	Investment Securities Held to Maturity
	At December 31, 2011
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(In thousands)
Residential mortgage-backed securities	$	54,869	$	1,532	$	(77	)	$	56,324
Obligations of States and political subdivisions		625,390		23,581		(496	)		648,475
Residential collateralized mortgage obligations		242,544		2,781		(2,631	)		242,694
Total	$	922,803	$	27,894	$	(3,204	)	$	947,493

The amortized cost and fair value of investment securities by contractual maturity are shown in the following table:

	At June 30, 2012
	Securities Available				Securities Held
	for Sale				to Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
	(In thousands)
Maturity in years:
1 year or less	$	59,556	$	59,810	$	11,269	$	11,344
Over 1 to 5 years		321,842		321,762		161,587		166,300
Over 5 to 10 years		55,864		58,736		269,998		280,908
Over 10 years		124,912		133,794		228,819		234,094
Subtotal		562,174		574,102		671,673		692,646
Mortgage-backed securities and residential collateralized mortgage obligations		120,659		127,413		534,973		540,167
Other securities		3,060		7,202		-		-
Total	$	685,893	$	708,717	$	1,206,646	$	1,232,813

The amortized cost and fair value of investment securities by contractual maturity are shown in the following table:

	At December 31, 2011
	Securities Available				Securities Held
	for Sale				to Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
	(In thousands)
Maturity in years:
1 year or less	$	37,785	$	37,967	$	12,056	$	12,121
Over 1 to 5 years		242,766		241,945		158,438		162,791
Over 5 to 10 years		63,442		65,919		307,504		321,922
Over 10 years		133,068		140,835		147,392		151,641
Subtotal		477,061		486,666		625,390		648,475
Mortgage-backed securities and residential collateralized mortgage obligations		138,578		146,102		297,413		299,018
Other securities		3,126		5,985		-		-
Total	$	618,765	$	638,753	$	922,803	$	947,493

Expected maturities of mortgage-backed securities can differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties. In addition, such factors as prepayments and interest rates may affect the yield on the carrying value of mortgage-backed securities. At June 30, 2012 and December 31, 2011, the Company had no high-risk collateralized mortgage obligations as defined by regulatory guidelines.

An analysis of gross unrealized losses of investment securities available for sale follows:

	Investment Securities Available for Sale
	At June 30, 2012
	Less than 12 months					12 months or longer					Total
			Unrealized					Unrealized					Unrealized
	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
	(In thousands)
Securities of U.S. Government sponsored entities	$	4,997	$	(1	)	$	-	$	-		$	4,997	$	(1	)
Residential mortgage-backed securities		7		-			984		(2	)		991		(2	)
Obligations of States and political subdivisions		3,663		(71	)		11,705		(208	)		15,368		(279	)
Asset-backed securities		10,194		(6	)		6,552		(212	)		16,746		(218	)
FHLMC and FNMA stock		-		-			1		(4	)		1		(4	)
Corporate securities		71,028		(878	)		38,799		(1,200	)		109,827		(2,078	)
Other securities		-		-			1,951		(50	)		1,951		(50	)
Total	$	89,889	$	(956	)	$	59,992	$	(1,676	)	$	149,881	$	(2,632	)

An analysis of gross unrealized losses of investment securities held to maturity follows:

	Investment Securities Held to Maturity
	At June 30, 2012
	Less than 12 months					12 months or longer					Total
			Unrealized					Unrealized					Unrealized
	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
	(In thousands)
Residential mortgage-backed securities	$	21,030	$	(73	)	$	-	$	-		$	21,030	$	(73	)
Obligations of States and political subdivisions		70,381		(853	)		4,641		(29	)		75,022		(882	)
Residential collateralized mortgage obligations		75,288		(396	)		13,929		(215	)		89,217		(611	)
Total	$	166,699	$	(1,322	)	$	18,570	$	(244	)	$	185,269	$	(1,566	)

The unrealized losses on the Company’s investment securities were caused by market conditions for these types of investments.  The Company evaluates securities on a quarterly basis including changes in security ratings issued by ratings agencies, changes in the financial condition of the issuer, and, for mortgage-related and asset-backed securities, delinquency and loss information with respect to the underlying collateral, changes in the levels of subordination for the Company’s particular position within the repayment structure, and remaining credit enhancement as compared to expected credit losses of the security. During the second quarter 2012, the Company transferred one residential collateralized mortgage obligation with a carrying value of $9,077 thousand from the held to maturity portfolio to the available for sale portfolio. The residential collateralized mortgage obligation was subsequently sold due to a decline in the credit worthiness from increased losses on subordinate tranches resulting in proceeds of $7,790 thousand and a realized loss on sale of $1,287 thousand during the quarter. Substantially all securities owned at June 30, 2012 continue to be investment grade rated by one or more major rating agencies.

The Company does not intend to sell any investments and has concluded that it is more likely than not that it will not be required to sell the investments prior to recovery of the amortized cost basis. Therefore, the Company does not consider these investments to be other-than-temporarily impaired as of June 30, 2012.

The fair values of the investment securities could decline in the future if the general economy deteriorates, credit ratings decline, the issuer’s financial condition deteriorates, or the liquidity for securities declines.  As a result, other than temporary impairments may occur in the future.

As of June 30, 2012, $896,271 thousand of investment securities were pledged to secure public deposits and short-term funding needs, compared to $903,807 thousand at December 31, 2011.

An analysis of gross unrealized losses of investment securities available for sale follows:

	Investment Securities Available for Sale
	At December 31, 2011
	Less than 12 months					12 months or longer					Total
			Unrealized					Unrealized					Unrealized
	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
	(In thousands)
Securities of U.S. Government sponsored entities	$	35,051	$	(53	)	$	-	$	-		$	35,051	$	(53	)
Residential mortgage-backed securities		3,443		(10	)		-		-			3,443		(10	)
Commercial mortgage-backed securities		-		-			1,347		(3	)		1,347		(3	)
Obligations of States and political subdivisions		5,803		(61	)		15,015		(207	)		20,818		(268	)
Asset-backed securities		-		-			7,306		(260	)		7,306		(260	)
FHLMC and FNMA stock		-		-			1		(4	)		1		(4	)
Corporate securities		32,048		(1,516	)		24,226		(774	)		56,274		(2,290	)
Other securities		-		-			1,953		(48	)		1,953		(48	)
Total	$	76,345	$	(1,640	)	$	49,848	$	(1,296	)	$	126,193	$	(2,936	)

An analysis of gross unrealized losses of investment securities held to maturity follows:

	Investment Securities Held to Maturity
	At December 31, 2011
	Less than 12 months					12 months or longer					Total
			Unrealized					Unrealized					Unrealized
	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
	(In thousands)
Residential mortgage-backed securities	$	14,032	$	(77	)	$	-	$	-		$	14,032	$	(77	)
Obligations of States and political subdivisions		38,026		(334	)		6,441		(162	)		44,467		(496	)
Residential collateralized mortgage obligations		50,355		(373	)		15,443		(2,258	)		65,798		(2,631	)
Total	$	102,413	$	(784	)	$	21,884	$	(2,420	)	$	124,297	$	(3,204	)

The following table provides information about the amount of interest income from taxable and non-taxable investment securities:

	For the Three Months				For the Six Months
	Ended June 30,
	2012		2011		2012		2011
	(In thousands)
Taxable	$	5,348	$	4,223	$	10,038	$	7,980
Tax-exempt		7,808		7,593		15,760		14,967
Total interest income from investment securities	$	13,156	$	11,816	$	25,798	$	22,947

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Note 3 - Investment Securities (Detail) - Schedule of amortized cost and fair value of securities, by contractual maturity (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Maturity in years:
Securities Available for Sale, Amortized Cost, 1 year or less	$ 59,556	$ 37,785
Securities Available for Sale, Fair Value, 1 year or less	59,810	37,967
Securities Held to Maturity, Amortized Cost, 1 year or less	11,269	12,056
Securities Held to Maturity, Fair Value, 1 year or less	11,344	12,121
Securities Available for Sale, Amortized Cost, Over 1 to 5 years	321,842	242,766
Securities Available for Sale, Fair Value, Over 1 to 5 years	321,762	241,945
Securities Held to Maturity, Amortized Cost, Over 1 to 5 years	161,587	158,438
Securities Held to Maturity, Fair Value, Over 1 to 5 years	166,300	162,791
Securities Available for Sale, Amortized Cost, Over 5 to 10 years	55,864	63,442
Securities Available for Sale, Fair Value, Over 5 to 10 years	58,736	65,919
Securities Held to Maturity, Amortized Cost, Over 5 to 10 years	269,998	307,504
Securities Held to Maturity, Fair Value, Over 5 to 10 years	280,908	321,922
Securities Available for Sale, Amortized Cost, Over 10 years	124,912	133,068
Securities Available for Sale, Fair Value, Over 10 years	133,794	140,835
Securities Held to Maturity, Amortized Cost, Over 10 years	228,819	147,392
Securities Held to Maturity, Fair Value, Over 10 years	234,094	151,641
Securities Available for Sale, Amortized Cost, Subtotal	562,174	477,061
Securities Available for Sale, Fair Value, Subtotal	574,102	486,666
Securities Held to Maturity, Amortized Cost, Subtotal	671,673	625,390
Securities Held to Maturity, Fair Value, Subtotal	692,646	648,475
Securities Available for Sale, Amortized Cost, Mortgage-backed securities and residential collateralized mortgage obligations	120,659	138,578
Securities Available for Sale, Fair Value, Mortgage-backed securities and residential collateralized mortgage obligations	127,413	146,102
Securities Held to Maturity, Amortized Cost, Mortgage-backed securities and residential collateralized mortgage obligations	534,973	297,413
Securities Held to Maturity, Fair Value, Mortgage-backed securities and residential collateralized mortgage obligations	540,167	299,018
Securities Available for Sale, Amortized Cost, Other securities	3,060	3,126
Securities Available for Sale, Fair Value, Other securities	7,202	5,985
Securities Available for Sale, Amortized Cost, Total	685,893	618,765
Securities Available for Sale, Fair Value, Total	708,717	638,753
Securities Held to Maturity, Amortized Cost, Total	1,206,646	922,803
Securities Held to Maturity, Fair Value, Total	$ 1,232,813	$ 947,493

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Note 4 - Loans and Allowance for Credit Losses (Detail) - Effect of nonaccrual loans on interest income (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Interest income that would have been recognized had the loans performed in accordance with their original terms	$ 789	$ 1,586	$ 1,577	$ 3,270
Less: Interest income recognized on nonaccrual loans	(494)	(2,085)	(1,336)	(2,876)
Total (addition) reduction of interest income	$ 295	$ (499)	$ 241	$ 394

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Note 6 - Goodwill and Identifiable Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2012

Schedule of Goodwill [Table Text Block]

June 30, 2012	$	121,673
December 31, 2011	$	121,673

Schedule of Finite-Lived Intangible Assets [Table Text Block]

	At June 30,					At December 31,
	2012					2011
	(In thousands)
	Gross					Gross
	Carrying		Accumulated			Carrying		Accumulated
	Amount		Amortization			Amount		Amortization
Core Deposit Intangibles	$	56,808	$	(32,551	)	$	56,808	$	(30,070	)
Merchant Draft Processing Intangible		10,300		(8,669	)		10,300		(8,409	)
Total Identifiable Intangible Assets	$	67,108	$	(41,220	)	$	67,108	$	(38,479	)

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

	At June 30, 2012
			Merchant
	Core		Draft
	Deposit		Processing
	Intangibles		Intangible		Total
	(In thousands)
For the six months ended June 30, 2012 (actual)	$	2,481	$	260	$	2,741
Estimate for year ended December 31, 2012		4,868		500		5,368
2013		4,304		400		4,704
2014		3,946		324		4,270
2015		3,594		262		3,856
2016		3,292		212		3,504
2017		2,853		164		3,017