UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
(Mark One)
| ☑ | ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended December 31,
2022
or
| ☐ | TRANSITION REPORT PURSUANT TO SECTION 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from __________ to __________.
Commission file number: 001-09383
| A. | Full title of the plan and the address of the plan, if different from that of the issuer named below: |
WESTAMERICA BANCORPORATION TAX DEFERRED
SAVINGS/RETIREMENT PLAN (ESOP)
| B. | Name of the securities held pursuant to the plan and the address of its principal executive office: |
WESTAMERICA BANCORPORATION
1108 FIFTH AVENUE
SAN RAFAEL, CALIFORNIA 94901
WESTAMERICA BANCORPORATION
TAX DEFERRED SAVINGS/RETIREMENT PLAN (ESOP)
San Rafael, California
FINANCIAL STATEMENTS
December 31, 2022 and 2021
WESTAMERICA BANCORPORATION
TAX DEFERRED SAVINGS/RETIREMENT PLAN (ESOP)
FINANCIAL STATEMENTS
December 31, 2022 and 2021
CONTENTS
All other schedules required by Section 2520.103-10 of the Department of
Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 have been omitted
because they are not applicable.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Plan Participants and Employee Benefits and
Compensation Committee of the
Board of Directors of
Westamerica Bancorporation
San Rafael, CA
Opinion on the Financial Statements
We have audited the accompanying statements of net assets available for
benefits of Westamerica Bancorporation Tax Deferred Savings/Retirement Plan (ESOP) (the "Plan") as of December 31, 2022 and
2021, the related statements of changes in net assets available for benefits for the years then ended, and the related notes (collectively
referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects,
the net assets available for benefits of the Plan as of December 31, 2022 and 2021, and the changes in net assets available for benefits
for the years then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Plan's management.
Our responsibility is to express an opinion on the Plan's financial statements based on our audits. We are a public accounting firm registered
with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect
to the Plan in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange
Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free
of material misstatement, whether due to error or fraud. The Plan is not required to have, nor were we engaged to perform, an audit of
its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over
financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial
reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material
misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures
included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included
evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation
of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Supplemental Information
The supplemental Schedule H, Line 4a – Schedule of Delinquent Participant
Contributions for the year ended December 31, 2022 and Schedule H, Line 4i – Schedule of Assets (Held at End of Year) as of December
31, 2022 have been subjected to audit procedures performed in conjunction with the audit of the Westamerica Bancorporation Tax Deferred
Savings/Retirement Plan (ESOP) financial statements. The supplemental schedules are the responsibility of the Plan’s management.
Our audit procedures included determining whether the information presented in the supplemental schedules reconciles to the financial
statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy
of the information presented in the supplemental schedules. In forming our opinion on the supplemental schedules, we evaluated whether
the supplemental schedules, including their form and content, are presented in conformity with the Department of Labor’s Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, the supplemental schedules
are fairly stated in all material respects in relation to the financial statements as a whole.
/s/ Crowe LLP
Crowe LLP
We have served as the Plan's auditor since 2012.
Oak Brook, Illinois
June 29, 2023
WESTAMERICA BANCORPORATION
TAX DEFERRED SAVINGS/RETIREMENT PLAN (ESOP)
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
December 31, 2022 and 2021
| |
2022 | |
2021 |
| |
| |
|
ASSETS | |
| | | |
| | |
| |
| | | |
| | |
Investments, at fair value (Notes 3 and 4) | |
$ | 54,383,966 | | |
$ | 69,261,055 | |
Notes receivable from participants | |
| 549,935 | | |
| 635,947 | |
| |
| | | |
| | |
Total assets and net assets available for benefits | |
$ | 54,933,901 | | |
$ | 69,897,002 | |
See accompanying notes to financial statements.
WESTAMERICA BANCORPORATION
TAX DEFERRED SAVINGS/RETIREMENT PLAN (ESOP)
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
For the Years Ended December 31, 2022 and 2021
| |
2022 | |
2021 |
| |
| |
|
Investment (loss) income: | |
| | | |
| | |
Dividends and capital gains distributions | |
$ | 1,849,643 | | |
$ | 2,857,042 | |
Net (depreciation) appreciation in fair value of investments | |
| (10,299,301 | ) | |
| 4,940,266 | |
| |
| | | |
| | |
Total investment (loss) income | |
| (8,449,658 | ) | |
| 7,797,308 | |
| |
| | | |
| | |
Interest income on notes receivable from participants | |
| 27,369 | | |
| 37,199 | |
| |
| | | |
| | |
Contributions: | |
| | | |
| | |
Participants | |
| 1,584,309 | | |
| 1,674,628 | |
Employer | |
| 942,842 | | |
| 1,021,805 | |
Participant rollovers | |
| 11,550 | | |
| 19,281 | |
| |
| | | |
| | |
Total contributions | |
| 2,538,701 | | |
| 2,715,714 | |
| |
| | | |
| | |
Total (loss) income and contributions | |
| (5,883,588 | ) | |
| 10,550,221 | |
| |
| | | |
| | |
Benefits paid to participants | |
| (9,044,901 | ) | |
| (5,581,618 | ) |
Administrative expenses | |
| (34,612 | ) | |
| (29,355 | ) |
| |
| | | |
| | |
Total benefit payments and expenses | |
| (9,079,513 | ) | |
| (5,610,973 | ) |
| |
| | | |
| | |
Net (decrease) increase | |
| (14,963,101 | ) | |
| 4,939,248 | |
| |
| | | |
| | |
Net assets available for benefits: | |
| | | |
| | |
Beginning of year | |
| 69,897,002 | | |
| 64,957,754 | |
| |
| | | |
| | |
End of year | |
$ | 54,933,901 | | |
$ | 69,897,002 | |
See accompanying notes to financial statements.
WESTAMERICA BANCORPORATION
TAX DEFERRED SAVINGS/RETIREMENT PLAN (ESOP)
NOTES TO FINANCIAL STATEMENTS
December 31, 2022 and 2021
The following description of the Westamerica Bancorporation Tax
Deferred Savings/Retirement Plan (ESOP) (the "Plan") provides only general information. Participants should refer to the Summary
Plan Description and Plan Document for a more complete description of the Plan's provisions.
General
The Plan is a defined contribution plan covering eligible employees
of Westamerica Bancorporation and its subsidiaries (the “Company”). The Plan, which became effective October 1, 1985, is intended
to be a qualified stock bonus plan under section 401(a) of the Internal Revenue Code (IRC) and is designated as an employee stock ownership
plan or ESOP. Portions of the Plan are also intended to qualify as a qualified cash or deferred arrangement within the meaning of section
401(k) of the IRC. The Plan also provides for Roth elective contributions.
The Employee Benefits and Compensation Committee of the Company's
Board of Directors (the "Committee") delegates the administration of the Plan to the Company's Pension Management Committee.
The Committee has the responsibility for the general operation of the Plan, including the resolution of any questions arising under the
Plan agreement. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). Investments in the
Plan are participant directed with the exception of employer contributions which are invested in shares of the Company's common stock
at the time of contribution. Subsequent to investment in the Company's common stock, participants may direct employer matching contributions
among all investment options. Vanguard Fiduciary Trust Company (Vanguard) serves as trustee of the Plan.
Eligibility
During 2022, the Company changed the Plan’s eligibility
criteria.
| · | Employees of the Company who were compensated on a salaried basis became eligible to participate in the
plan on the first day of the calendar month (Entry Date) coinciding with or following the date the employee completed 90 consecutive days
of service with the Company or completed 1,000 service hours in a 12-month consecutive period. |
| · | Effective August 1, 2022, the Entry Date was amended from the first day of the calendar month to the first
day of the payroll period. |
| · | Effective September 4, 2022, hourly employees became eligible to participate in the plan on the first
day of the payroll period coinciding with or following the date the employee completes 90 consecutive days of service with the Company
or completes 1,000 service hours in a 12-month consecutive period. |
WESTAMERICA BANCORPORATION
TAX DEFERRED SAVINGS/RETIREMENT PLAN (ESOP)
NOTES TO FINANCIAL STATEMENTS
December 31, 2022 and 2021
| 1. | DESCRIPTION OF PLAN (Continued) |
Vesting
Participants are immediately vested in their salary-deferral
contributions and the Company's matching contributions, plus actual earnings and losses thereon. Participants become 20%, 40%, 60%, 80%
and 100% vested in the Company’s discretionary contributions after completing, two, three, four, five and six Years of Service,
respectively.
Contributions
Each year, participants may elect to make salary deferral contributions
in any whole percentage of eligible compensation subject to certain IRC limitations. Participants may elect whether their salary deferral
contributions are characterized as pre-tax or after-tax (“Roth”) contributions.
The Company makes a matching contribution equal to 100 percent
of the participant's elective contribution, up to a maximum of 6 percent of the participant's compensation. Additional amounts may be
contributed at the discretion of the Company's Board of Directors. Participants may also contribute amounts representing distributions
from other qualified accounts, defined benefit or defined contribution plans. For the years ended December 31, 2022 and 2021, the Company
made no discretionary contributions. Company contributions are subject to certain IRC limitations.
Participant Accounts
Individual accounts are maintained for each Plan participant.
Each participant's account is credited with the participant's contribution, allocation of the Company's matching and discretionary contributions,
allocation of Plan earnings, and charged with benefit payments, allocations of Plan losses and administrative expenses.
Employer matching contributions are allocated to participants
based on the participant's elective contribution. Employer discretionary contributions are allocated to the account of each participant
in ratio of the participant's eligible compensation to the total eligible compensation for all Plan participants.
Participants' Investment Options
Company matching contributions are invested in the Westamerica
Common Stock Fund in accordance with the Plan Document. Participants may redirect Company matching contributions from the Westamerica
Common Stock Fund to other investment options at their discretion and without limitation.
Participants direct participant contributions to be invested,
in whole or in part, in any of the following investment fund options as of December 31, 2022:
| · | The Westamerica Common Stock Fund, which is invested in the Company's common stock and temporary
interest-bearing money market funds. |
WESTAMERICA BANCORPORATION
TAX DEFERRED SAVINGS/RETIREMENT PLAN (ESOP)
NOTES TO FINANCIAL STATEMENTS
December 31, 2022 and 2021
| 1. | DESCRIPTION OF PLAN (Continued) |
| · | Vanguard Institutional Index Fund, which invests in stocks of the 500 largest U.S. companies, which
span many different industries and account for about three-fourths of the U.S. stock market’s value. |
| · | Vanguard Explorer Fund, which invests in a diversified group of small-and mid-size company stocks
with prospects for above-average growth. |
| · | Vanguard U.S. Growth Fund, which invests primarily in stocks of large companies that have strong
records of growth in sales and earnings or that have performed well during certain market cycles. |
| · | Vanguard Cash Reserves Federal Money Market Fund, which invests in short-term, high-quality securities
issued by financial institutions, nonfinancial corporations, the U.S. government, and federal agencies. |
| · | Vanguard Total Bond Market Index Fund, which invests in bonds that provide broad exposure to U.S.
investment grade bonds. The fund invests in U.S. government and mortgage-backed securities of all maturities (short-, intermediate-, and
long-term issues). |
| · | Vanguard Total International Stock Index Fund, which invests in stocks of companies located in
developed and emerging economies, with the exception of the United States. |
| · | Vanguard Windsor II Fund, which invests in a diversified group of large-capitalization companies.
The stocks selected generally sell at prices below the market average compared to their dividend income and future return potential. |
| · | Vanguard Extended Market Index Fund, which invests in a broadly diversified portfolio of stocks
of small and medium sized U.S. companies. The portfolio is designed to complement the Vanguard Institutional Index fund; together they
provide exposure to the entire U.S. equity market. |
| · | Vanguard Short-Term Bond Index Fund, which invests in bonds that provide broad exposure to U.S.
investment grade bonds. The fund invests about 30% in corporate bonds and 70% in U.S. government bonds with maturities between one and
five years. |
Vanguard Target Retirement Funds consists of twelve balanced
funds with differing asset allocations as follows:
· | | Vanguard Target Retirement Income Fund |
· | | Vanguard Target Retirement 2020 Fund |
· | | Vanguard Target Retirement 2025 Fund |
· | | Vanguard Target Retirement 2030 Fund |
· | | Vanguard Target Retirement 2035 Fund |
· | | Vanguard Target Retirement 2040 Fund |
WESTAMERICA BANCORPORATION
TAX DEFERRED SAVINGS/RETIREMENT PLAN (ESOP)
NOTES TO FINANCIAL STATEMENTS
December 31, 2022 and 2021
| 1. | DESCRIPTION OF PLAN (Continued) |
· | | Vanguard Target Retirement 2045 Fund |
· | | Vanguard Target Retirement 2050 Fund |
· | | Vanguard Target Retirement 2055 Fund |
· | | Vanguard Target Retirement 2060 Fund |
· | | Vanguard Target Retirement 2065 Fund |
· | | Vanguard Target Retirement 2070 Fund |
Each Vanguard Target Retirement Fund (“Target Retirement
Fund”) invests in other Vanguard mutual funds using an asset allocation strategy designed for investors planning to retire in or
within a few years of the year in the fund's name, except the Income Fund, which is designed for investors in retirement. Once a fund
has passed its designated date, such as the 2020 Fund, its asset allocation is gradually adjusted to match that of the Target Retirement
Income Fund and it may merge with that fund within seven years after its designated date.
Target Retirement Funds are designed as balanced fund-of-funds
for long-term investors. Each Target Retirement Fund invests in broadly diversified funds, which includes stock and bond funds.
With the exception of the Target Retirement Income Fund, the
relative allocations among Target Retirement Funds' component funds gradually grow more conservative over a predetermined schedule.
Participants may change their investment options at any time
directly through Vanguard.
Notes Receivable from Participants
Participants may borrow a minimum of $1,000 up to a maximum equal
to the lesser of 50 percent of their vested account balance or $50,000. Effective January 1, 2022, participants are limited to one
loan outstanding at any time. For the purposes of this limit, all qualified plans of the Company shall be considered one plan. Participant
loans are funded by selling investments in the borrowing participant's accounts and bear fixed interest rates determined using market
rates prevailing at the time the funds are borrowed. Participant loans are subject to a one-time origination fee and annual maintenance
fee. The origination fee is included in the loan balance. Participant loans are made for a term not to exceed 5 years. Principal and interest
is paid ratably through payroll deductions and invested in the borrowing participant's accounts in accordance with their investment directions.
Payment of Benefits
Upon termination of service for any reason, a participant may
elect to receive a lump-sum distribution equal to the value in his or her account. Distributions for the value of a participant's account
invested in the Westamerica Common Stock Fund stock are made in the form of the Company's common stock plus cash for any fractional shares
or, if a participant elects, in cash, as provided by the Plan document. Participants may also receive in-service distributions on account
of hardship or after attaining age 59 1/2.
WESTAMERICA BANCORPORATION
TAX DEFERRED SAVINGS/RETIREMENT PLAN (ESOP)
NOTES TO FINANCIAL STATEMENTS
December 31, 2022 and 2021
| 1. | DESCRIPTION OF PLAN (Continued) |
Cash dividends paid on Westamerica Bancorporation common stock
allocated to participant accounts may be paid to participants in cash or be credited to the participant's account as earnings, which are
reinvested in additional shares of Westamerica Bancorporation common stock. If the value of a separated participant's benefit is not more
than $1,000, the benefit shall be automatically paid in a single lump sum in cash or, if elected, directly to an eligible retirement plan.
Benefits payable to separated participants for amounts greater than $1,000 may be made in cash or other form of distribution, as defined
by the Plan. As of December 31, 2022 and 2021, there were no benefits payable to participants that had elected to withdraw from the
Plan but had not yet been paid.
Voting Rights
Each participant is entitled to exercise voting rights attributable
to the Westamerica Bancorporation common stock shares allocated to their account and is notified by the trustee prior to the time that
such rights are to be exercised. The trustee is permitted to vote any unallocated shares and allocated shares for which instructions have
not been given by a participant or beneficiary, in direct proportion to the shares with respect to which it has received timely voting
instructions from participants or beneficiaries.
Plan Termination
Although it has not expressed any intent to do so, the Company
has the right under the Plan to discontinue its contributions at any time and to terminate the Plan, subject to the provisions of ERISA.
Administrative and Investment Management Expenses
The Company provides bookkeeping and other administrative services
for the Plan at no charge. The Company pays the Plan's annual account maintenance fees for participants actively employed by the Company
and other administrative expenses. Administrative expenses reflected in the financial statements are comprised of annual loan maintenance
fees for active employees and recordkeeping and information management fees for participants who are no longer employed by the Company
(inactive) that maintain Plan account balances. The administrative expenses were included as reductions to the respective participants’
account balances. Investment management fees are charged to the Plan as a reduction of investment return and included in the investment
income (loss) reported by the Plan.
| 2. | SUMMARY OF ACCOUNTING POLICIES |
Basis of Accounting
The financial statements of the Plan have been prepared on the
accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America.
WESTAMERICA BANCORPORATION
TAX DEFERRED SAVINGS/RETIREMENT PLAN (ESOP)
NOTES TO FINANCIAL STATEMENTS
December 31, 2022 and 2021
| 2. | SUMMARY OF ACCOUNTING POLICIES (Continued) |
Use of Estimates
The preparation of financial statements requires the Plan's management
to make estimates and assumptions that affect the reported amounts of net assets available for benefits and changes therein and disclosure
of contingent assets and liabilities. It is at least reasonably possible that a significant change may occur in the near term in the estimated
fair value of the Plan's investments.
Investment Valuation and Income Recognition
The Plan's investments are stated at fair value. Fair value is
the estimated price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants
at the measurement date. See Note 4 for additional discussion of fair value measurements.
Purchases and sales of securities are recorded on a trade-date
basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. Net appreciation (depreciation)
in fair value of investments includes net unrealized market appreciation (depreciation) of investments and net realized gains and losses
on the sale of investments during the period.
Management fees and operating expenses charged to the Plan’s
investments in shares of registered investment companies (mutual funds) are deducted from mutual fund income earned on a daily basis and
are not separately reflected. Trustee fees charged to the Westamerica Bancorporation Common Stock Fund are deducted from income earned
on the Westamerica Common Stock Fund. Consequently, management fees, operating expenses and trustee fees are reflected as a reduction
of investment return for such investments.
The Westamerica Bancorporation Common Stock Fund is invested
in the Company’s common stock and temporary interest-bearing money market funds. The money market fund component at December 31,
2022 and 2021, was insignificant and is not separately reflected. As such, disclosures reflect whole shares of Westamerica Bancorporation
common stock.
Notes Receivable from Participants
Notes receivable from participants are measured at their unpaid
balance plus any accrued but unpaid interest.
Payment of Benefits
Benefits are recorded when paid.
WESTAMERICA BANCORPORATION
TAX DEFERRED SAVINGS/RETIREMENT PLAN (ESOP)
NOTES TO FINANCIAL STATEMENTS
December 31, 2022 and 2021
| 2. | SUMMARY OF ACCOUNTING POLICIES (Continued) |
Subsequent Events
Plan management has evaluated events occurring after December
31, 2022 and has concluded that there are no events that require recognition or disclosure in the financial statements.
| 3. | INVESTMENT IN WESTAMERICA BANCORPORATION COMMON STOCK |
The Plan's investments at December 31, 2022 and 2021 in Westamerica
Bancorporation common stock are as follows:
| |
2022 | |
2021 |
| |
| |
|
Number of shares | |
| 284,637 | | |
| 284,641 | |
| |
| | | |
| | |
Cost | |
$ | 13,207,393 | | |
$ | 12,946,591 | |
| |
| | | |
| | |
Fair value | |
$ | 16,796,429 | | |
$ | 16,432,347 | |
Concentrations of Investments
The Westamerica Common Stock Fund represents 31% and 24% of total
investments of the Plan at December 31, 2022 and 2021, respectively. A significant decline in the market value of the Company's stock
would have a materially adverse effect on the Plan's net assets available for benefits.
| 4. | FAIR VALUE MEASUREMENTS |
Fair Value Hierarchy
Fair value is the estimated price that would be received by the
Plan for an asset or paid by the Plan to transfer a liability (an exit price) in an orderly transaction between market participants on
the measurement date in the Plan's principal or most advantageous market for the asset or liability. Fair value measurements are determined
by maximizing the use of available observable inputs and minimizing the use of available unobservable inputs. The fair value hierarchy
places the highest priority on unadjusted quoted market prices in active markets for identical assets or liabilities (level 1 measurements)
and gives the lowest priority to unobservable inputs (level 3 measurements). The three levels of inputs within the fair value hierarchy
are defined as follows:
Level 1: Quoted prices (unadjusted) for identical assets or
liabilities in active markets that the Plan has the ability to access as of the measurement date.
Level 2: Significant other observable inputs other than level
1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are
observable or can be corroborated by observable market data.
WESTAMERICA BANCORPORATION
TAX DEFERRED SAVINGS/RETIREMENT PLAN (ESOP)
NOTES TO FINANCIAL STATEMENTS
December 31, 2022 and 2021
| 4. | FAIR VALUE MEASUREMENTS (Continued) |
Level 3: Significant unobservable inputs that reflect the Plan's
own assumptions about the assumptions that market participants would use in pricing an asset or liability.
In some cases, a valuation technique used to estimate fair value
may include inputs from multiple levels of the fair value hierarchy. The lowest level of significant input determines the placement of
the entire fair value measurement in the hierarchy.
Assets Recorded at Fair Value
There were no changes in the valuation techniques used during
2022 and 2021. The following tables present information about the Plan's assets and liabilities measured at
fair value on a recurring basis as of December 31, 2022 and 2021.
The Plan is required to record the following assets at fair value
on a recurring basis under other accounting pronouncements:
| |
December 31, 2022 |
Description | |
Fair Value | |
Level 1 | |
Level 2 | |
Level 3 |
| |
| |
| |
| |
|
Common stock of | |
| | | |
| | | |
| | | |
| | |
Plan Sponsor | |
$ | 16,796,429 | | |
$ | 16,796,429 | | |
$ | - | | |
$ | - | |
Mutual funds | |
| 37,587,537 | | |
| 37,587,537 | | |
| - | | |
| - | |
| |
$ | 54,383,966 | | |
$ | 54,383,966 | | |
$ | - | | |
$ | - | |
| |
December 31, 2021 |
Description | |
Fair Value | |
Level 1 | |
Level 2 | |
Level 3 |
| |
| |
| |
| |
|
Common stock of | |
| | | |
| | | |
| | | |
| | |
Plan Sponsor | |
$ | 16,432,347 | | |
$ | 16,432,347 | | |
$ | - | | |
$ | - | |
Mutual funds | |
| 52,828,708 | | |
| 52,828,708 | | |
| - | | |
| - | |
| |
$ | 69,261,055 | | |
$ | 69,261,055 | | |
$ | - | | |
$ | - | |
Fair value of the common stock of the Plan Sponsor is based on
the closing quoted market price reported on the active market on which the individual securities are traded. Such securities are actively
traded throughout each market trading day on the NASDAQ Global Select Market (Level 1 inputs).
Mutual funds are valued using the Net Asset Value (NAV) provided
by the trustee of the fund. The NAV is computed by dividing the value of the underlying assets, minus liabilities, allocated to each share
class by the number of fund shares outstanding for that class. Mutual fund NAVs are calculated once each market trading day as of the
close of regular market trading (Level 1 inputs). The NAV is a quoted price in a market that is active.
WESTAMERICA BANCORPORATION
TAX DEFERRED SAVINGS/RETIREMENT PLAN (ESOP)
NOTES TO FINANCIAL STATEMENTS
December 31, 2022 and 2021
| 4. | FAIR VALUE MEASUREMENTS (Continued) |
There were no transfers in or out of Levels 1, 2 or 3 for the
twelve months ending December 31, 2022 and 2021.
There were no liabilities measured at fair value on a recurring
basis at December 31, 2022 or 2021.
Risks and Uncertainties
The Plan utilizes various investment instruments, including the
common stock of the Company and mutual funds. Investment securities, in general, are exposed to various risks, such as interest rate,
credit, currency, overall market volatility and risks of global events. Due to the level of risk associated with certain investment securities,
changes in the values of investment securities may occur in the near term and such changes could materially affect the participants’
account balance and amounts reported in the financial statements.
| 5. | FEDERAL INCOME TAX STATUS |
The Plan Sponsor adopted a Prototype Non-Standardized Pre-Approved
Profit Sharing Plan/CODA/ESOP (“Prototype Plan”), sponsored by Vanguard Fiduciary Trust Company. The adoption of the Prototype
Plan became effective January 1, 2022. The Prototype Plan received an IRS opinion letter dated June 30, 2020 stating that the Prototype
Plan is acceptable under section 401 and 4975(e)(7) of the Internal Revenue Code for use by employers for the benefit of their employees.
Accounting principles generally accepted in the United States
of America require plan management to evaluate tax positions taken by the Plan. Management evaluated the Plan's tax positions and concluded
that the Plan had maintained its tax exempt status and had taken no uncertain tax positions that require recognition or disclosure in
the financial statements. Therefore, no provision or liability for income taxes has been included in the financial statements. With few
exceptions, the Plan is no longer subject to income tax examinations by the U.S. federal, state, or local tax authorities for years before
2019.
| 6. | PARTY-IN-INTEREST TRANSACTIONS |
Parties in interest are defined under DOL regulations as any
fiduciary of the Plan, any party rendering service to the Plan, the employer, and certain others. Plan investments include shares of mutual
funds managed by an affiliate of Vanguard Fiduciary Trust Company (VFTC). VFTC is the trustee as defined by the Plan and, therefore, these
transactions qualify as party-in-interest transactions. The Plan also invests in Westamerica Bancorporation common stock, as disclosed
in Note 4 and received dividends on these shares of $475,851 and $463,031 during the years ended December 31, 2022 and 2021, respectively.
The purchases of Westamerica Bancorporation common stock were $1,202,421 and $1,667,782 during the years ended December 31, 2022 and 2021,
respectively. The sales of Westamerica Bancorporation common stock were $1,029,041 and $2,002,278 during the years ended December
31, 2022 and 2021, respectively. Notes receivable from participants are also considered party-in-interest transactions.
WESTAMERICA BANCORPORATION
TAX DEFERRED SAVINGS/RETIREMENT PLAN (ESOP)
NOTES TO FINANCIAL STATEMENTS
December 31, 2022 and 2021
| 6. | PARTY-IN-INTEREST TRANSACTIONS (Continued) |
Management fees and operating expenses charged to the Plan’s
investments in shares of registered investment companies (mutual funds) are deducted from mutual fund income earned on a daily basis and
are not separately reflected. Trustee fees charged to the Westamerica Common Stock Fund are deducted from income earned on the Westamerica
Common Stock Fund. Consequently, management fees, operating expenses and trustee fees are reflected as a reduction of investment return
for such investments.
Fees paid by the Plan for trustee services in connection with
the Westamerica Common Stock Fund for the years ended December 31, 2022 and 2021 amounted to $31,673 and $25,736 respectively.
The Company provides bookkeeping and other administrative services
for the Plan at no charge to the Plan. The Company also pays recordkeeping fees, certain other administrative expenses, and certain professional
fees to third-party service providers on behalf of the Plan.
| 7. | RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500 |
The following is a reconciliation of net assets available for
benefits per the financial statements as of December 31, 2022 and 2021 to Form 5500:
| |
2022 | |
2021 |
| |
| |
|
Net assets available for benefits per the financial statements | |
$ | 54,933,901 | | |
$ | 69,897,002 | |
| |
| | | |
| | |
Deemed distributions of participant loans | |
| (11,518 | ) | |
| (11,517 | ) |
| |
| | | |
| | |
Net assets per Form 5500 | |
$ | 54,922,383 | | |
$ | 69,885,485 | |
The following is a reconciliation of the change in net assets
available for benefits for the years ended December 31, 2022 and 2021 per the financial statements to the net income reported in the 2022
and 2021 Form 5500.
| |
2022 | |
2021 |
(Decrease) increase in net assets available for benefits per the financial statements | |
$ | (14,963,101 | ) | |
$ | 4,939,248 | |
Change in deemed distributions of participant loans | |
| (1 | ) | |
| (1,189 | ) |
| |
| | | |
| | |
Net (loss) income per Form 5500 | |
$ | (14,963,102 | ) | |
$ | 4,938,059 | |
SUPPLEMENTAL SCHEDULES
WESTAMERICA BANCORPORATION
TAX DEFERRED SAVINGS/RETIREMENT PLAN (ESOP)
EMPLOYER IDENTIFICATION NUMBER: 94-2156203
PLAN NUMBER: 002
SCHEDULE H, LINE 4a
SCHEDULE OF DELINQUENT PARTICIPANT CONTRIBUTIONS
Year ended December 31, 2022
Participant
Contributions
Transferred Late
to the Plan |
Total that Constitute Nonexempt Prohibited Transactions |
Total Fully Corrected
Under VFCP and PTE 2002-51 |
Check here if Late
Participant Loan
Repayments are included: |
Contributions Not Corrected |
Contributions
Corrected Outside
VFCP |
Contributions Pending Correction in VFCP |
X |
- |
$416 |
- |
- |
WESTAMERICA BANCORPORATION
TAX DEFERRED SAVINGS/RETIREMENT PLAN (ESOP)
EMPLOYER IDENTIFICATION NUMBER: 94-2156203
PLAN NUMBER: 002
SCHEDULE H, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR)
December 31, 2022
| |
| |
(c) | |
| |
|
| |
(b) | |
Description of Investment, Including | |
| |
(e) |
| |
Identity of Issuer, Borrower, | |
Maturity Date, Rate of Interest, | |
(d) | |
Current |
(a) | |
Lessor or Similar Party | |
Collateral, Par or Maturity Value | |
Cost | |
Value |
| |
| |
| |
| |
|
* | |
Westamerica Bancorporation | |
Common Stock Fund | |
** | |
$ | 16,796,429 | |
| |
| |
| |
| |
| | |
* | |
The Vanguard Group, Inc. | |
Registered Investment Company | |
| |
| | |
| |
| |
Vanguard Institutional Index Fund | |
** | |
| 8,627,494 | |
| |
| |
| |
| |
| | |
* | |
The Vanguard Group, Inc. | |
Registered Investment Company | |
| |
| | |
| |
| |
Vanguard Target Retirement | |
| |
| | |
| |
| |
2025 Fund | |
** | |
| 3,887,111 | |
| |
| |
| |
| |
| | |
* | |
The Vanguard Group, Inc. | |
Registered Investment Company | |
| |
| | |
| |
| |
Vanguard Cash Reserves Money Market Fund | |
| |
| | |
| |
| |
Admiral Shares | |
** | |
| 3,470,033 | |
| |
| |
| |
| |
| | |
* | |
The Vanguard Group, Inc. | |
Registered Investment Company | |
| |
| | |
| |
| |
Vanguard U.S. Growth Fund Admiral Shares
| |
**
| |
| 3,454,034 | |
* | |
The Vanguard Group, Inc. | |
Registered Investment Company | |
| |
| | |
| |
| |
Vanguard Target Retirement | |
| |
| | |
| |
| |
Income Fund | |
** | |
| 3,283,458 | |
| |
| |
| |
| |
| | |
* | |
The Vanguard Group, Inc. | |
Registered Investment Company | |
| |
| | |
| |
| |
Vanguard Target Retirement | |
| |
| | |
| |
| |
2035 Fund | |
** | |
| 1,981,149 | |
| |
| |
| |
| |
| | |
* | |
The Vanguard Group, Inc. | |
Registered Investment Company | |
| |
| | |
| |
| |
Vanguard Target Retirement | |
| |
| | |
| |
| |
2030 Fund | |
** | |
| 1,825,246 | |
| |
| |
| |
| |
| | |
* | |
The Vanguard Group, Inc. | |
Registered Investment Company | |
| |
| | |
| |
| |
Vanguard Total Bond Market Index Fund | |
| |
| | |
| |
| |
Admiral Shares | |
** | |
| 1,706,299 | |
| |
| |
| |
| |
| | |
* | |
The Vanguard Group, Inc. | |
Registered Investment Company | |
| |
| | |
| |
| |
Vanguard Windsor II Fund Admiral Shares | |
** | |
| 1,379,187 | |
| |
| |
| |
| |
| | |
* | |
The Vanguard Group, Inc. | |
Registered Investment Company | |
| |
| | |
| |
| |
Vanguard Target Retirement | |
| |
| | |
| |
| |
2045 Fund | |
** | |
| 1,289,892 | |
| |
| |
| |
| |
| | |
* | |
The Vanguard Group, Inc. | |
Registered Investment Company | |
| |
| | |
| |
| |
Vanguard Target Retirement | |
| |
| | |
| |
| |
2020 Fund | |
** | |
| 1,165,360 | |
WESTAMERICA BANCORPORATION
TAX DEFERRED SAVINGS/RETIREMENT PLAN (ESOP)
EMPLOYER IDENTIFICATION NUMBER: 94-2156203
PLAN NUMBER: 002
SCHEDULE H, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR)
December 31, 2022
| |
| |
(c) | |
| |
|
| |
(b) | |
Description of Investment, Including | |
| |
(e) |
| |
Identity of Issuer, Borrower, | |
Maturity Date, Rate of Interest, | |
(d) | |
Current |
(a) | |
Lessor or Similar Party | |
Collateral, Par or Maturity Value | |
Cost | |
Value |
| |
| |
| |
| |
|
* | |
The Vanguard Group, Inc. | |
Registered Investment Company | |
| |
| | |
| |
| |
Vanguard Target Retirement | |
| |
| | |
| |
| |
2060 Fund | |
** | |
| 1,122,675 | |
| |
| |
| |
| |
| | |
* | |
The Vanguard Group, Inc. | |
Registered Investment Company | |
| |
| | |
| |
| |
Vanguard Extended Market Index Fund | |
| |
| | |
| |
| |
Admiral Shares | |
** | |
| 1,033,755 | |
| |
| |
| |
| |
| | |
* | |
The Vanguard Group, Inc. | |
Registered Investment Company | |
| |
| | |
| |
| |
Vanguard Target Retirement | |
| |
| | |
| |
| |
2040 Fund | |
** | |
| 987,194 | |
| |
| |
| |
| |
| | |
* | |
The Vanguard Group, Inc. | |
Registered Investment Company | |
| |
| | |
| |
| |
Vanguard Total International Stock Index Fund | |
| |
| | |
| |
| |
Admiral Shares | |
** | |
| 978,245 | |
| |
| |
| |
| |
| | |
* | |
The Vanguard Group, Inc. | |
Registered Investment Company | |
| |
| | |
| |
| |
Vanguard Target Retirement | |
| |
| | |
| |
| |
2050 Fund | |
** | |
| 514,387 | |
| |
| |
| |
| |
| | |
* | |
The Vanguard Group, Inc. | |
Registered Investment Company | |
| |
| | |
| |
| |
Vanguard Explorer Fund Admiral Shares | |
** | |
| 281,978 | |
| |
| |
| |
| |
| | |
* | |
The Vanguard Group, Inc. | |
Registered Investment Company | |
| |
| | |
| |
| |
Vanguard Short Term Bond Index | |
| |
| | |
| |
| |
Admiral Shares | |
** | |
| 275,549 | |
| |
| |
| |
| |
| | |
* | |
The Vanguard Group, Inc. | |
Registered Investment Company | |
| |
| | |
| |
| |
Vanguard Target Retirement | |
| |
| | |
| |
| |
2055 Fund | |
** | |
| 235,090 | |
| |
| |
| |
| |
| | |
* | |
The Vanguard Group, Inc. | |
Registered Investment Company | |
| |
| | |
| |
| |
Vanguard Target Retirement | |
| |
| | |
| |
| |
2065 Fund | |
** | |
| 88,678 | |
| |
| |
| |
| |
| | |
* | |
The Vanguard Group, Inc. | |
Registered Investment Company | |
| |
| | |
| |
| |
Vanguard Target Retirement | |
| |
| | |
| |
| |
2070 Fund | |
** | |
| 723 | |
| |
| |
| |
| |
| | |
* | |
Notes Receivable from | |
Interest rate 4.25% - 9.75%, maturing at | |
| |
| | |
| |
Plan Participants | |
various dates through January 2, 2028 | |
** | |
| 538,417 | |
| |
| |
| |
| |
| | |
| |
| |
| |
| |
$ | 54,922,383 | |
| * | Party-in-interest to the Plan. |
| ** | Cost information is not required as investments are participant-directed. |
Duly Authorized Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or the persons
who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly
authorized.
WESTAMERICA BANCORPORATION
TAX DEFERRED SAVINGS/RETIREMENT PLAN (ESOP)
Date: June 29, 2023
By: /s/ Anela Jonas
Anela Jonas
Vice President
And Member, Pension Management Committee
Exhibit Index
Exhibit 23.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We consent to the incorporation by reference in Registration Statement
No. 333-107329 on Form S-8 of Westamerica Bancorporation of our report dated June 29, 2023 appearing in this Annual Report on Form
11-K of Westamerica Bancorporation Tax Deferred Savings/Retirement Plan (ESOP) for the year ended December 31, 2022.
/s/ Crowe LLP
Oakbrook, Illinois
June 29, 2023
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