Westamerica Bancorporation Announces Acquisition From FDIC Of Sonoma Valley Bank Assets And Liabilities
Westamerica Bancorporation ( NASDAQ:WABC), announced today its wholly-owned subsidiary bank, Westamerica Bank, entered an agreement with the Federal Deposit Insurance Corporation (“FDIC”) to purchase substantially all the assets and assume substantially all the liabilities of Sonoma Valley Bank. The California Department of Financial Institutions declared Sonoma Valley Bank closed today and appointed the FDIC as receiver.
“We are pleased to welcome the customers of Sonoma Valley Bank as valued customers of Westamerica. Westamerica assumed substantially all deposits of Sonoma Valley Bank. Customers can rest assured their deposits are safe and sound at Westamerica, which is well-capitalized and highly profitable,” said Chairman, President and CEO David Payne. “We will be working diligently with employees of the former Sonoma Valley Bank and the FDIC to ensure a smooth transition of customer accounts to Westamerica. Delivering superior customer service is our objective. Sonoma Valley Bank customers will benefit from Westamerica’s broader branch network throughout Northern and Central California, including our ten branches in Sonoma County,” added Payne.
Westamerica Bank’s capital significantly exceeds regulatory requirements to be considered “well-capitalized.” Westamerica Bank estimates $15 million of capital is required relative to the acquired assets in order to meet the most stringent regulatory “tier one leverage ratio.” At June 30, 2010, Westamerica Bank’s capital exceeded the “well capitalized” requirement for the “tier one leverage ratio” by $145 million. As a result, Westamerica Bank does not require additional capital relative to the acquired assets. Westamerica’s profitability further supports its capital levels; Westamerica Bancorporation’s second quarter 2010 net income was $24 million, of which $10 million was distributed to shareholders in the form of a dividend.
At June 30, 2010, Sonoma Valley Bank reported deposits totaling $256 million and loans totaling $241 million. Westamerica Bank assumed only the assets and liabilities of Sonoma Valley Bank. Assets, liabilities, and common stock of Sonoma Valley Bank’s former parent company Sonoma Valley Bancorp have not been purchased or assumed by Westamerica Bank or Westamerica Bancorporation.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV