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Westamerica Bancorporation (WABC) in San Rafael, Calif., reported another decline in quarterly profits as low interest rates continued to reduce yields on loans and investment securities.
July 15 -
Smaller institutions are likely to report stable net interest margins, even as competition for the best credits remains fierce. Loan volume could suffer from a seasonal slowdown, while investors would be keen to track commentary on loan structure.
October 9 -
Performance among banks and thrifts with $2 billion to $10 billion of assets has not changed much over the past year, judging from our annual ranking.
July 28
Westamerica in San Rafael, Calif., reported lower quarterly earnings largely because of a narrower net interest margin.
The $4.9 billion-asset company reported Wednesday that its earnings fell nearly 10% from a year earlier, to $15.2 million. Earnings per share of 58 cents were in line with the average estimate of analysts polled by Bloomberg.
Westamerica's net interest income fell 8%, to $37.9 million, because of low market interest rates and a portfolio holding lower-yielding, shorter-duration securities. The net interest margin compressed by 35 basis points to 3.66%.
Noninterest income fell 9%, to $13.1 million, because of a decrease in merchant processing fees, service charges on deposit accounts and loan principal recoveries.
Noninterest expenses fell slightly, to $26.6 million, due to lower costs tied to foreclosures and reduced personnel costs.
Nonperforming assets fell by roughly 50%, to $26 million.
