Westamerica Bancorp. of San Rafael, Calif., reported a 90% surge in second-quarter earnings Tuesday as a recent acquisition and lower short-term interest rates more than offset increased credit costs.
The parent of Westamerica Bank, which has not had the same degree of loan losses as other lenders, also said it plans to redeem this month some of the preferred stock it issued to the Treasury Department. Westamerica received nearly $83 million in February through the Troubled Asset Relief Program.
As the $5.3 billion-asset company's credit quality has held up, so has its stock. The shares are up 15% this year, though they slipped 3% Tuesday, to close at $48.21.
Westamerica posted earnings of $23.2 million, or 75 cents a share.
The results included a 6-cent impact from increased assessments by the Federal Deposit Insurance Corp. while the year-earlier results included an $18.2 million investment loss.
The average estimate of analysts surveyed by Thomson Reuters was 76 cents.
Deposits jumped 32% to $4.2 billion as a result of the February acquisition of the failed County Bank in Merced, Calif.