Note 8 - Deposits and Borrowed Funds

3 Months Ended

Mar. 31, 2013

Deposits And Borrowed Funds [Text Block]

Note 8: Deposits and Borrowed Funds

Deposits totaled $4,161,950 thousand at March 31, 2013, compared with $4,232,492 thousand at December 31, 2012. The following table provides additional detail regarding deposits.

	Deposits
	At March 31, 2013		At December 31, 2012
	(In thousands)
Noninterest-bearing	$	1,621,887	$	1,676,071
Interest-bearing:
Transaction		771,268		748,818
Savings		1,160,976		1,165,032
Time		607,819		642,571
Total deposits	$	4,161,950	$	4,232,492

Demand deposit overdrafts of $2,942 thousand and $6,307 thousand were included as loan balances at March 31, 2013 and December 31, 2012, respectively. Interest expense for aggregate time deposits with individual account balances in excess of $100 thousand was $304 thousand in the first quarter 2013 and $423 thousand in the first quarter 2012.

Short-term borrowed funds of $61,854 thousand at March 31, 2013 represent securities sold under agreements to repurchase the securities. As the Company is obligated to repurchase the securities, the transfer of the securities is accounted for as a secured borrowing rather than a sale. Securities sold under repurchase agreements are held in the custody of independent securities brokers. The amount of the securities approximates $112,182 thousand at March 31, 2013. The short-term borrowed funds mature on an overnight basis.

FHLB advances with carrying value of $25,743 thousand at March 31, 2013 are secured by $28,843 thousand of residential real estate loans and $9,701 of securities at March 31, 2013. The FHLB advances are due in full upon their maturity dates: $5,000 thousand mature in December 2013 and $20,000 thousand mature in January 2015. The FHLB advances may be paid off prior to such maturity dates subject to prepayment fees.

The $10,000 thousand term repurchase agreement at March 31, 2013 represents securities sold under an agreement to repurchase the securities. As the Company is obligated to repurchase the securities, the transfer of the securities is accounted for as a secured borrowing rather than a sale. Securities sold under repurchase agreements are held in the custody of independent securities brokers. The carrying amount of the related securities is approximately $14,621 thousand at March 31, 2013. The term repurchase agreement matures in full in August 2014.

The Company has a $35,000 thousand unsecured line of credit which had no outstanding balance at March 31, 2013, and a variable interest rate of 2.0% per annum with interest payable monthly on outstanding advances. Advances may be made up to the unused credit limit under the line of credit through March 19, 2014.

Debt financing of $15,000 thousand is a note issued by Westamerica Bancorporation on October 31, 2003 which matures October 31, 2013. Interest of 5.31% per annum is payable semiannually on April 30 and October 31, with principal due at maturity. The note is subject to financial covenants requiring the Company to maintain, at all times, certain minimum levels of consolidated tangible net worth and maximum levels of capital debt. The Company believes it is in compliance with all of the covenants required by the note as of March 31, 2013.