Westamerica Bancorporation 3Q Profit Jumps

SAN RAFAEL, Calif. (AP) — Westamerica Bancorporation said profit soared in the third quarter as income improved and it reduced losses from investments and unpaid loans.

The company reported net income after paying preferred dividends of $23.8 million, or 81 cents per share, compared with $44,000 and no earnings per share the year before.

Analysts surveyed by Thomson Reuters expected 78 cents per share.

Shares rose 83 cents to $51.73.

The company said net interest income, or profit from lending, rose nearly 27 percent to $61.6 million from $48.7 million a year ago.

Non-interest income, which typically includes fees and other charges, grew to $16 million. A year ago the company recorded a loss of $27.5 million in non-interest income, primarily due to stock losses.

The company, which operates 99 bank branches and two trust offices in California, completed the consolidation of the former County Bank, which failed and was taken over by federal regulators and sold to Westamerica.

It said efficiencies gained from the acquisition will benefit future operating results.

The risk profile of the company's loan portfolio was reduced as loss-sharing agreements with the Federal Deposit Insurance Corporation cover 29 percent its loan portfolio, it said.

The credit quality of the non-FDIC covered loans remained stable during the quarter, CEO David Payne said.