This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Westamerica Bancorporation Reports Fourth Quarter 2010 Results

Westamerica Bancorporation ( NASDAQ: WABC), parent company of Westamerica Bank, today reported fourth quarter 2010 net income applicable to common equity of $23.7 million, or $0.81 diluted earnings per share (“EPS”), compared to $23.7 million, or $0.81 EPS in the prior quarter, and $23.3 million, or $0.79 EPS in the fourth quarter 2009. Fourth quarter 2010 net income applicable to common equity represents an 18 percent annualized return on average common equity.

“Westamerica’s net interest margin was 5.39 percent in the fourth quarter 2010. Yields on loans and investment securities are relatively low in the current interest rate environment, which has caused a reduction in asset yields. Our focus on checking and savings deposits delivered a 0.29 percent cost of funding our loans and securities, a much lower funding cost than our peers. We have worked diligently to operate efficiently in spite of cyclically higher problem loan workout costs and FDIC insurance assessments. From our total revenues of $72 million in the fourth quarter 2010, only $32 million was spent on operating expenses, delivering well over one-half of our revenue as pre-tax income for our shareholders,” said Chairman, President and CEO David Payne. “The credit quality of legacy Westamerica assets improved during the quarter as nonperforming assets declined $6 million to $33 million at December 31, 2010. Purchased nonperforming assets declined $12 million to $111 million at December 31, 2010, of which $69 million are indemnified by the FDIC under loss-sharing agreements. Common shareholders’ equity increased to $545 million at December 31, 2010 resulting in a total regulatory capital ratio of 15.5 percent,” Payne added.

Net interest income on a fully taxable equivalent basis (FTE) was $56.4 million for the fourth quarter 2010, compared to $56.7 million (FTE) for the prior quarter and $58.9 million (FTE) for the fourth quarter 2009. The fourth quarter 2010 annualized net interest margin was 5.39 percent (FTE), compared to 5.54 percent (FTE) for the prior quarter and 5.50 percent (FTE) for the fourth quarter 2009. The decline in net interest margin from the prior quarter is due to a decline in yields on loans and investment securities; current market yields are generally lower than yields on existing portfolios. The decline in net interest income in the fourth quarter 2010 compared to the fourth quarter 2009 is attributable to a lower net interest margin and lower levels of loans; loans have declined due to weak economic conditions and weak loan demand.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 16,776.43 +304.06 1.85%
S&P 500 1,987.05 +35.69 1.83%
NASDAQ 4,781.2640 +73.4890 1.56%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs