Westamerica Bancorp Q2 Earnings Drop vs Year Ago

Westamerica Bancorporation (WABC), parent company of Westamerica Bank, posted earnings for Q2 ended June 30, 2014 in line with Street expectations.

The company reported Q2 net income of $15.2 million and diluted earnings per common share of $0.58, compared with the prior-year period’s net income of $17.1 million and EPS of $0.64. Analysts polled by Capital IQ were expecting EPS of $0.58.

Net interest income on a fully taxable equivalent basis was $38.6 million for the quarter, compared with $42.6 million for the comparable quarter in 2013. The company said net interest income declined as market interest rates on many loan products remain below the yields earned on older-dated loans and on the overall loan portfolio. WABC added further that it is reducing its exposure to rising interest rates by purchasing shorter-duration investment securities which carry lower yields than longer-duration securities.

The annualized net interest margin on a fully taxable equivalent basis was 3.76% for the quarter, compared with 4.12% for prior-year quarter. The provision for loan losses was $1.0 million reduced from $1.8 million for Q2 2013.

Shares are down 0.40% at $50.99 with a 52-week range of $45.90 – $57.59.

 

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