Westamerica Bancorporation (NASDAQ:WABC), parent company of Westamerica Bank, today reported quarterly net income for the first quarter of 2008 of $26.8 million and diluted earnings per share (“EPS”) of $0.92 compared to net income of $21.8 million and EPS of $0.74 for the previous quarter, and net income of $23.6 million and EPS of $0.76 for the first quarter of 2007. As described below, first quarter 2008 results include benefits from Visa’s initial public offering which increased net income by $4.7 million and EPS by $0.16. Fourth quarter 2007 results include litigation expense of $2.3 million related to Westamerica’s proportionate share of Visa’s litigation exposure and a $700 thousand income tax refund which combined to reduce net income by $590 thousand, or EPS by $0.02. First quarter 2007 results include a gain on company-owned life insurance which contributed $0.02 to EPS.

“During the first quarter 2008, our net interest margin increased to 4.79 percent from 4.53 percent in the fourth quarter 2007. This improvement came primarily from a reduction in our cost of funds as short-term interest rates declined,” said Chairman, President and CEO David Payne. “Our expenses remain well controlled, and our credit quality remains sound. Our non-performing loans represented only 0.23 percent of total loans at quarter-end while our loan loss reserves equal 2.13 percent of total loans. We are pleased to have delivered a return on our shareholders’ equity, excluding the Visa IPO benefits, of 22.6 percent this quarter,” added Payne.

Net interest income on a fully taxable equivalent (FTE) basis was $48.0 million for the first quarter of 2008, compared to $46.8 million for the previous quarter and to $46.9 million for the first quarter of 2007. The first quarter 2008 net interest margin on a fully taxable equivalent basis was 4.79 percent, compared to 4.53 percent for the previous quarter and 4.41 percent for the first quarter of 2007.

The provision for loan losses was $600 thousand for the first quarter of 2008, compared to $475 thousand for the previous quarter, and $75 thousand for the first quarter of 2007. Net loan losses totaled $872 thousand or 0.14 percent of average loans (annualized) for the first quarter of 2008, compared to $907 thousand and 0.14 percent, respectively, for the fourth quarter of 2007.

Management follows diligent and thorough loan administration and risk management practices. The Company assigns risk grades to loans following the same framework used by its regulators. Loans receiving higher risk grades and heightened credit management attention are “classified” loans. The Company’s “classified” loans increased to $33.3 million at March 31, 2008 from $24.4 million at December 31, 2007. The increase in classified loans is primarily attributable to one construction loan relationship with $11.1 million outstanding at March 31, 2008. The loan collateral is comprised of developed land and residential real estate properties located north of Sacramento, California. Management is aggressively pursuing collection of this loan relationship. Some “classified” loans are placed on non-accrual status when the full collection of principal or interest is in doubt. Included in the “classified” loans are non-accrual loans totaling $5.4 million at March 31, 2008, compared to $4.9 million at December 31, 2007. Management regularly assesses the level of the Company’s allowance for loan losses giving consideration to current and developing economic conditions, levels of classified and non-accrual loans, and other relevant external and internal considerations. The Company’s allowance for loan losses totaled $52.2 million at March 31, 2008. Management considers this allowance for loan losses to be an adequate reserve against estimated loan losses.

Noninterest income for the first quarter of 2008 totaled $19.4 million compared to $15.3 million for the first quarter 2007. The increase is primarily attributable to $5.7 million in securities gains from the redemption of Visa Class B common stock as part of the initial public offering in the first quarter 2008, offset by $822 thousand in gains from company-owned life insurance recognized in the first quarter 2007.

Noninterest expense for the first quarter of 2008 totaled $23.1 million, $1.6 million lower than noninterest expense for the first quarter of 2007. The decrease is primarily due to the first quarter 2008 reversal of a $2.3 million accrual for Visa related litigation, which was reversed with the funding of a litigation escrow as a part of the Visa IPO. All other noninterest expenses increased $700 thousand in the first quarter of 2008 compared to the first quarter of 2007. Personnel costs rose due to higher employee benefit costs and annual merit increases. Data processing costs were higher due to conversion of the Company’s item processing function to an outside vendor in the third quarter 2007. These higher costs were offset in part by lower amortization of intangible assets. The first quarter 2008 efficiency ratio (expenses/ FTE revenues) was 34.2 percent compared to 39.7 percent in the first quarter 2007. Excluding the Visa-related benefits recorded in noninterest income and noninterest expense, the efficiency ratio was 41.2 percent for the first quarter 2008. Excluding the company-owned life insurance gain, the efficiency ratio was 40.2 percent for the first quarter 2007.

At March 31, 2008, shareholders' equity was $399 million and the equity-to-asset ratio was 9.2 percent. During the first quarter 2008, repurchases of the Company's common stock totaled approximately 246 thousand shares, net of shares issued, and dividends paid to shareholders totaled $9.8 million.

At March 31, 2008, the Company's assets totaled $4.3 billion and loans outstanding totaled $2.4 billion.

Westamerica Bancorporation, through its wholly owned subsidiary Westamerica Bank, operates 86 branches and two trust offices throughout 21 Northern and Central California counties.

Westamerica Bancorporation Web Address: www.westamerica.com

FORWARD-LOOKING INFORMATION:

The following appears in accordance with the Private Securities Litigation Reform Act of 1995:

This press release may contain forward-looking statements about the Company, including descriptions of plans or objectives of its management for future operations, products or services, and forecasts of its revenues, earnings or other measures of economic performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may."

Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors - many of which are beyond the Company's control - could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. The Company's most recent annual and quarterly reports filed with the Securities and Exchange Commission, including the Company's Form 10-K for the year ended December 31, 2007, describe some of these factors, including certain credit, market, operational, liquidity and interest rate risks associated with the Company's business and operations. Other factors described in these reports include changes in business and economic conditions, competition, fiscal and monetary policies, disintermediation, legislation including the Sarbanes-Oxley Act of 2002 and the Gramm-Leach-Bliley Act of 1999, and mergers and acquisitions.

Forward-looking statements speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date forward looking statements are made.