Thursday, Westamerica Bancorp. (WABC), the holding company of Westamerica Bank, reported an increase in profit for the fourth quarter, helped mainly by higher net interest income and non-interest income.
For the fourth quarter, the San Rafael, California-based company reported net income applicable to common shareholders of $23.35 million or $0.79 per share, up from $20.81 million or $0.71 per share in the year-ago quarter.
On average, nine analysts polled by Thomson Reuters expected the company to earn $0.82 per share for the quarter. Analysts estimates typically exclude special items.
During the fourth quarter 2009, Westamerica redeemed $42 million in preferred stock requiring accelerated discount accretion of $517 thousand, which reduced net income per share by $0.02. Moreover in the third quarter, Westamerica eliminated $587 thousand in tax reserves due to a lapse in the statute of limitations, which reduced tax provisions and increased net income per share by $0.02. Fourth quarter 2009 results represents a 19% return on common shareholders' equity.
Net interest income on a fully-taxable equivalent basis for the quarter increased 18.3% to $58.95 million from $49.85 million in the prior-year quarter. Non-interest income for the fourth quarter was $15.70 million compared to $13.18 million in the prior year quarter. Seven analysts had a revenue consensus of $76.36 million for the quarter.
Non-interest expense for the fourth quarter was $32.8 million, up 25.5% from $26.17 million in the prior quarter.
Provision for loan losses for the quarter surged 266.7% to $3.30 million from $0.90 million in the same quarter last year.
Total Deposits for the fourth quarter increased 30.7% to $4.07 million from $3.12 million last year.
For the full year, net income applicable to common shareholders increased to $121.46 million or $4.14 per share from $59.84 million or $2.04 per share a year earlier. Analysts were looking for earnings of $3.17 per share.
Net interest income rose 23.4% to $242.22 million from $196.26 million for the year-ago period. Non-interest income for the full year was $112.01 million, compared to non-interest loss of $2.06 million in the previous year. Wall Street's revenue consensus was $307.08 million for fiscal 2009.
WABC is currently trading at $59.90, $1.37 or 2.34% on the Nasdaq.
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