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Westamerica Ban Corp. (WABC) filed Quarterly Report for the period ended 2011-06-30.
Westamerica Ban Corp. has a market cap of $1.34 billion; its shares were traded at around $46.47 with a P/E ratio of 14.8 and P/S ratio of 4.8. The dividend yield of Westamerica Ban Corp. stocks is 3.1%. Westamerica Ban Corp. had an annual average earning growth of 2.4% over the past 10 years.
This is the annual revenues and earnings per share of WABC over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of WABC.
Highlight of Business Operations:
$73 million), partially offset by declines in the average balances of collateralized mortgage obligations (down $10 million) and residential mortgage backed securities (down $46 million). The average yield on the Company's earning assets decreased from 5.93% in the second quarter of 2010 to 5.59% in the corresponding period of 2011. The composite yield on loans declined 0.15% to 6.03% in the second quarter 2011 compared to the corresponding period of 2010. Nonperforming loans are included in average loan volumes used to compute loan yields; fluctuations in nonaccrual loan volumes impact loan yields. The loan portfolio yield fell due to declines in yields on construction loans (down 1.29%), residential real estate loans (down 0.51%), indirect auto loans (down 0.66%), tax-exempt commercial loans (down 0.4%) and commercial real estate loans (down 0.06%), partially offset by increases in yields on taxable commercial loans (up 0.43%) and personal credit lines (up 0.53%). The investment portfolio yield decreased 0.6% to 4.68%. Decreases in yields on collateralized mortgage obligations (down 0.75%), residential mortgage backed securities (down 0.26%), municipal securities (down 0.19%) were partially offset by increases in yields on corporate securities (up 0.61%) and U.S. government sponsored entities (up 0.12%). The decline in loan and investment yields is primarily due to relatively low market rates and competitive loan pricing.
Comparing the first half of 2011 with the first half of 2010, interest and fee income (FTE) was down $5.0 million or 4.2%. The decrease resulted from a lower average volume of loans and lower yields on interest earning assets, partially offset by higher average balances of investments. A lower average balance of the loan portfolio was mostly attributable to decreases in average balances of taxable commercial loans (down $80 million), residential real estate loans (down $44 million), tax-exempt commercial loans (down $20 million) and indirect auto loans (down $12 million), partially offset by a $19 million increase in the average balance of personal credit lines. The average investment portfolio increased mostly due to higher average balances of U.S. government sponsored entity obligations (up $131 million), municipal securities (up $87 million) and corporate securities (up $74 million), partially offset by decreases in collateralized mortgage obligations (down $38 million) and residential mortgage backed securities (down $51 million). The average yield on earning assets for the first half of 2011 was 5.59% compared with 5.94% in the first half of 2010. The loan portfolio yield for the first half of 2011 decreased 0.18% compared with the first half of 2010 primarily due to lower yields on construction loans (down 0.85%), residential real estate loans (down 0.51%), indirect auto loans (down 0.58%) and commercial real estate loans (down 0.13%), partially offset by increases in yields on taxable commercial loans (up 0.18%) and personal credit lines (up 0.36%). The investment portfolio yield declined from 5.32% in the first half of 2010 to 4.69% in the first half of 2011 mainly due to decreases in yields on collateralized mortgage obligations (down 0.46%), residential mortgage backed securities (down 0.28%) and municipal securities (down 0.17%), partially offset by corporate securities (up 0.5%)
Interest expense in the second quarter of 2011 decreased $992 thousand or 31.5% compared with the same period in 2010. The decrease was attributable to lower rates paid on interest-bearing liabilities (down 0.16%) and a shift from higher costing term repurchase agreements and time deposits less than $100 thousand to low-cost checking and savings accounts. Such deposits represented 79% of total deposits in the second quarter 2011 compared with 77% in the second quarter 2010. Lower average balances of short-term borrowed funds (down $103 million) and time deposits less than $100 thousand (down $33 million) were partially offset by higher average balances of Federal Home Loan Bank advances (up $38 million), preferred money market savings (up $66 million), money market savings (up $54 million), money market checking accounts (up $39 million) and regular savings (up $37 million). Lower average balances of short-term borrowed funds were attributable to repayment of term repurchase agreements of $100 million in December of 2010. The average rate paid on interest-bearing liabilities decreased from 0.46% in the second quarter of 2010 to 0.3% in the same quarter of 2011. Rates on interest-bearing deposits decreased 0.08% to 0.27% primarily due to decreases in rates paid on time deposits $100 thousand or more (down 0.2%) and preferred money market savings (down 0.31%), partially offset by higher rates paid on time deposits less than $100 thousand (up 0.18%). Rates on short-term borrowed funds decreased 0.76%. Rates on Federal Home Loan Bank advances also declined 0.95%. Rates on debt financing payable declined 3.3% due to the adjustment of the premium amortization on a $10 million subordinated note, which the Company intends to redeem in August 2011. The redemption premium will approximate 5 percent of the $10 million principal amount.
Rates paid on interest-bearing liabilities averaged 0.31% during the first half of 2011 compared with 0.48% for the first half of 2010 mainly due to lower rates on time deposits over $100 thousand (down 0.17%), money market savings (down 0.16%),
preferred money market savings (down 0.32%), short-term borrowed funds (down 0.76%), Federal Home Loan Bank advances (down 0.51%) and debt financing and notes payable (down 3.34%), partially offset by a 0.06% increase in rates on time deposits less than $100 thousand. Rates on debt financing payable declined due to the adjusted premium amortization described in the preceding paragraph.
During the second quarter of 2011, the net interest margin (FTE) decreased 0.24% compared with the same period in 2010. Yields on interest-earning assets have declined due to relatively low interest rates prevailing in the market. Economic conditions and deleveraging by businesses and individuals have reduced loan volumes, placing greater reliance on lower-yielding investment securities. Rates on interest-bearing deposits and borrowings have declined to offset some of the decline in asset yields. Lower yields on earning assets were partially offset by lower rates paid on interest-bearing liabilities and resulted in a 0.18% decrease in net interest spread (FTE). The net interest margin contribution of noninterest-bearing demand deposits increased the net interest margin (FTE) to 5.38%. The net interest margin (FTE) in the first half of 2011 was 5.37% compared with 5.61% in the first half of 2010, the net result of a 0.35% decrease in earning asset yields, partially offset by lower cost of interest-bearing liabilities (down 0.17%). The margin contribution from noninterest bearing demand deposits declined from 0.15% in the first half of 2010 to 0.09% in the first half of 2011.
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