Westamerica Bancorp. (WABC), the parent company of Westamerica Bank, Tuesday said its profit for the third quarter declined more than five percent from a year ago, as revenues dropped reflecting mainly lower interest margins. As well, Westamerica's earnings for the quarter missed Street estimates by a penny.
The San Rafael, California-based company's net income for the quarter dropped to $22.4 million or $0.79 per share from $23.7 million or $0.81 per share in the prior-year quarter. On average, ten analysts polled by Thomson Reuters expected earnings of $0.80 per share for the quarter. Analysts' estimates typically exclude unusual gains and losses.
Net interest income on a fully taxable equivalent basis for the quarter declined 3.5 percent to $54.7 million from last year, due mainly to lower net interest margin. Net interest margin, the difference between what the bank pays for funds and what it charges for loans, for the quarter dropped to 5.32 percent from 5.54 percent last year.
Non-interest income for the quarter edged up 0.9 percent to $15.2 million from a year ago.
Eight Wall Street analysts had a consensus revenue estimate of $69.95 million for the quarter.
Provision for loan losses for the third quarter remained flat year-over-year at $2.80 million.
Chief Executive David Payne said, "We experienced continuing improvement in our credit quality with non-performing assets declining 13 percent from June 30, 2011 to September 30, 2011, and the annualized rate of loan losses declining to 0.60 percent during the third quarter 2011."
Net loan losses totaled $2.9 million, or 0.60 percent, of average originated loans, compared to 0.83 percent in the prior-year quarter.
WABC is currently trading on the Nasdaq at $42.27, down $0.73 or 1.70%.
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