311094--2/27/2009--WESTAMERICA

related topics

{condition, economic, financial}

{stock, price, share}

{loan, real, estate}

{control, financial, internal}

{regulation, change, law}

{operation, natural, condition}

{competitive, industry, competition}

{capital, credit, financial}

{system, service, information}

{cost, operation, labor}

{regulation, government, change}

{debt, indebtedness, cash}

{loss, insurance, financial}

Changes in capital market conditions could reduce asset valuations. Current market developments may adversely affect the Company s industry, business and results of operations. The soundness of other financial institutions could adversely affect the Company. Current levels of market volatility are unprecedented. There can be no assurance that the recently enacted legislation will help stabilize the U.S. financial system. Risks Related to the Nature and Geographical Location of the Company s Business The Company invests in loans that contain inherent credit risks that may cause the Company to incur losses. The Company s operations are concentrated geographically in California, and poor economic conditions may cause the Company to incur losses. The markets in which the Company operates are subject to the risk of earthquakes and other natural disasters. As a financial services company, adverse changes in general business or economic conditions could have a material adverse effect on the Company s financial condition and results of operations. The Company s Business May Be Adversely Affected by Conditions in the Financial Markets and Economic Conditions Generally The Value of Securities in the Company s Investment Securities Portfolio May be Negatively Affected by Continued Disruptions In Securities Markets Restrictions on dividends and other distributions could limit amounts payable to the Company. Adverse effects of changes in banking or other laws and regulations or governmental fiscal or monetary policies could adversely affect the Company. Federal and state governments could pass legislation responsive to current credit conditions. Systems, Accounting and Internal Control Risks The accuracy of the Company s judgments and estimates about financial and accounting matters will impact operating results and financial condition. The Company s information systems may experience an interruption or breach in security. The Company s controls and procedures may fail or be circumvented. The Company may have difficulty integrating the branches and operations of the former County Bank. Shares of Company common stock eligible for future sale could have a dilutive effect on the market for Company common stock and could adversely affect the market price. The Agreement between the Company and the United States Treasury limits the Company s ability to pay dividends on and repurchase the Company s common stock. The Treasury Preferred Stock impacts net income available to the Company s common stockholders and earnings per common share, and the TARP Warrant may be dilutive to holders of the Company s common stock.

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311094--2/27/2009--WESTAMERICA_BANCORPORATION