Westamerica Ban Corp. (WABC, Financial) filed Quarterly Report for the period ended 2010-03-31.
Westamerica Ban Corp. has a market cap of $1.75 billion; its shares were traded at around $59.75 with a P/E ratio of 18.4 and P/S ratio of 5. The dividend yield of Westamerica Ban Corp. stocks is 2.4%. Westamerica Ban Corp. had an annual average earning growth of 3.3% over the past 10 years.WABC is in the portfolios of Kenneth Fisher of Fisher Asset Management, LLC, Jim Simons of Renaissance Technologies LLC.
Interest and fee income (FTE) for the first quarter of 2010 decreased $3.6 million or 5.7% from the same period in 2009. The decrease was caused by lower average balances of earning assets (down $364 million) and lower yields on investments (down 0.02%), partially offset by higher yields on loans (up 0.2%). The total average balances of loans declined $139 million or 4.4% mainly due to decreases in the average balances of residential real estate loans (down $82 million), taxable commercial loans (down $57 million), indirect auto loans (down $42 million), tax-exempt commercial loans (down $19 million) and construction loans (down $13 million), partially offset by a $47 million increase in the average balance of commercial real estate loans. The average investment portfolio decreased $225 million largely due to declines in average balances of mortgage backed securities and collateralized mortgage obligations (down $101 million), U.S. government sponsored entity obligations (down $82 million) and municipal securities (down $50 million), partially offset by a $7 million increase in the average balances of corporate securities. The average yield on the Companys earning assets increased from 5.79% in the first quarter of 2009 to 5.95% in the corresponding period of 2010. The composite yield on loans rose 0.2% to 6.17% due to increases in yields on construction loans (up 1.69%) and taxable commercial loans (up 0.43%), partially offset by decreases in yields on tax-exempt commercial loans (down 0.44%) and residential real estate loans (down 0.21%). The investment portfolio yield decreased 0.02% to 5.36%, mainly due to declines in yields on U.S. government sponsored entity obligations (down 2.8%), U.S. Treasury securities (down 2.36%), corporate and other securities (down 1.43%), mortgage backed securities and collateralized mortgage obligations (down 0.39%) and municipal securities (down 0.1%).
Comparing the first quarter of 2010 with the fourth quarter of 2009, interest and fee income (FTE) was down $2.7 million or 4.2%. The decrease resulted from a lower volume of average earning assets and lower yields on investment securities, partially offset by higher yields on loans. Average earning assets decreased $157 million or 3.7% in the first quarter of 2010 compared with the fourth quarter of 2009 due to a $128 million decrease in average loans and a $29 million decrease in average investments. The decrease in the average balance of the loan portfolio was attributable to decreases in average balances of residential real estate loans (down $29 million), taxable commercial loans (down $28 million), commercial real estate loans (down $27 million), indirect auto loans (down $20 million), construction loans (down $17 million) and tax-exempt commercial loans (down $7 million). The average investment portfolio decreased $29 million largely due to declines in average balances of mortgage backed securities and collateralized mortgage obligations (down $31 million) and municipal securities (down $12 million), partially offset by increases in the average balances of U.S. government sponsored entity obligations (up $8 million) and corporate securities (up $7 million). The average yield on earning assets for the first three months of 2010 was 5.95% compared with 5.90% in the fourth quarter of 2009. The loan portfolio yield for the first three months of 2010 compared with the previous quarter was higher by 0.11%, due to increases in yields on construction loans (up 1.21%) and taxable commercial loans (up 0.48%), partially offset by decreases in yields on tax-exempt commercial loans (down 0.39%) and residential real estate loans (down 0.16%). The investment portfolio yield decreased by 0.08%, reflecting lower yields on U.S. Treasury securities (down 2.24%), U.S. government sponsored entity obligations (down 1.13%), partially offset by a 0.21% increase in the yield on corporate and other securities.
Interest expense in the first quarter of 2010 decreased $1.3 million compared with the same period in 2009. The decrease was attributable to lower rates paid on the interest-bearing deposits and lower average balances of borrowing, partially offset by higher rates paid on borrowings. The average rate paid on interest-bearing liabilities decreased from 0.62% in the first quarter of 2009 to 0.50% in the same quarter of 2010. Rates on interest-bearing deposits decreased 0.21% to 0.39% primarily due to decreases in rates paid on time deposits less than $100 thousand (down 0.97%), time deposits $100 thousand or more (down 0.08%) and preferred money market savings (down 0.16%). Rates on short-term borrowings increased 0.57% mostly due to a 0.34% increase in the rates on line of credit and repurchase facilities. The rate on Federal Home Loan Bank (FHLB) advances rose 0.22% to 1.37%. Average short-term borrowings declined $308 million in the first quarter of 2010 over the same period of 2009 primarily due to a $315 million decline in the average balance of federal funds purchased, partially offset by a $41 million increase in the average balance of line of credit and repurchase facilities. Interest-bearing deposits remained steady at first quarter 2009 levels, the net result of a $109 million decrease in the average balance of time deposits $100 thousand or more, offset by increases in average balances of money market savings (up $58 million), regular savings (up $24 million) and time deposits less than $100 thousand (down $24 million).
Comparing the first quarter of 2010 with the fourth quarter of 2009, interest expense declined $767 thousand, due to lower average balances of interest-bearing liabilities and lower rates on interest-bearing deposits, offset by higher rates paid on borrowings. Average interest-bearing liabilities during the first quarter of 2010 fell by $139 million over the last quarter of 2009 mainly due to decreases in average balances of FHLB advances (down $61 million), time deposits less than $100 thousand (down $44 million), money market savings (down $14 million) and time deposits $100 thousand or more (down $9 million). Rates paid on liabilities averaged 0.50% during the first three months of 2010 compared with 0.57% for the last three months of 2009. The average rate paid on interest-bearing deposits declined 0.06% to 0.39% in the first quarter 2010 mainly due to lower rates on time deposits $100 thousand or more (down 0.13%) and time deposits less than $100 thousand (down 0.13%).
During the first quarter of 2010, the net interest margin (FTE) increased 0.25% compared with the same period in 2009. Higher yields on earning assets (FTE) and lower rates paid on interest-bearing liabilities resulted in a 0.28% increase in net interest spread. The increase in the net interest spread was partially reduced by the lower net interest margin contribution of noninterest-bearing funding sources. The net interest margin (FTE) in the first three months of 2010 rose by 0.10% compared with the fourth quarter of 2009. Earning asset yields increased 0.05% while the cost of interest-bearing liabilities declined by 0.07%, resulting in a 0.12% increase in the net interest spread. The 0.02% decrease in margin contribution from noninterest bearing funding sources resulted in the net interest margin of 5.60%.
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Westamerica Ban Corp. has a market cap of $1.75 billion; its shares were traded at around $59.75 with a P/E ratio of 18.4 and P/S ratio of 5. The dividend yield of Westamerica Ban Corp. stocks is 2.4%. Westamerica Ban Corp. had an annual average earning growth of 3.3% over the past 10 years.WABC is in the portfolios of Kenneth Fisher of Fisher Asset Management, LLC, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Comparing the first three months of 2010 with the fourth quarter of 2009, net interest income (FTE) decreased $1.9 million or 3.3%, primarily due to a lower volume of average earning assets (down $157 million) and lower yields on investments (down 0.08%), partially offset by higher yields on loans (up 0.11%), lower average balances of interest-bearing liabilities (down $139 million) and lower rates paid on interest-bearing deposits (down 0.06%).Interest and fee income (FTE) for the first quarter of 2010 decreased $3.6 million or 5.7% from the same period in 2009. The decrease was caused by lower average balances of earning assets (down $364 million) and lower yields on investments (down 0.02%), partially offset by higher yields on loans (up 0.2%). The total average balances of loans declined $139 million or 4.4% mainly due to decreases in the average balances of residential real estate loans (down $82 million), taxable commercial loans (down $57 million), indirect auto loans (down $42 million), tax-exempt commercial loans (down $19 million) and construction loans (down $13 million), partially offset by a $47 million increase in the average balance of commercial real estate loans. The average investment portfolio decreased $225 million largely due to declines in average balances of mortgage backed securities and collateralized mortgage obligations (down $101 million), U.S. government sponsored entity obligations (down $82 million) and municipal securities (down $50 million), partially offset by a $7 million increase in the average balances of corporate securities. The average yield on the Companys earning assets increased from 5.79% in the first quarter of 2009 to 5.95% in the corresponding period of 2010. The composite yield on loans rose 0.2% to 6.17% due to increases in yields on construction loans (up 1.69%) and taxable commercial loans (up 0.43%), partially offset by decreases in yields on tax-exempt commercial loans (down 0.44%) and residential real estate loans (down 0.21%). The investment portfolio yield decreased 0.02% to 5.36%, mainly due to declines in yields on U.S. government sponsored entity obligations (down 2.8%), U.S. Treasury securities (down 2.36%), corporate and other securities (down 1.43%), mortgage backed securities and collateralized mortgage obligations (down 0.39%) and municipal securities (down 0.1%).
Comparing the first quarter of 2010 with the fourth quarter of 2009, interest and fee income (FTE) was down $2.7 million or 4.2%. The decrease resulted from a lower volume of average earning assets and lower yields on investment securities, partially offset by higher yields on loans. Average earning assets decreased $157 million or 3.7% in the first quarter of 2010 compared with the fourth quarter of 2009 due to a $128 million decrease in average loans and a $29 million decrease in average investments. The decrease in the average balance of the loan portfolio was attributable to decreases in average balances of residential real estate loans (down $29 million), taxable commercial loans (down $28 million), commercial real estate loans (down $27 million), indirect auto loans (down $20 million), construction loans (down $17 million) and tax-exempt commercial loans (down $7 million). The average investment portfolio decreased $29 million largely due to declines in average balances of mortgage backed securities and collateralized mortgage obligations (down $31 million) and municipal securities (down $12 million), partially offset by increases in the average balances of U.S. government sponsored entity obligations (up $8 million) and corporate securities (up $7 million). The average yield on earning assets for the first three months of 2010 was 5.95% compared with 5.90% in the fourth quarter of 2009. The loan portfolio yield for the first three months of 2010 compared with the previous quarter was higher by 0.11%, due to increases in yields on construction loans (up 1.21%) and taxable commercial loans (up 0.48%), partially offset by decreases in yields on tax-exempt commercial loans (down 0.39%) and residential real estate loans (down 0.16%). The investment portfolio yield decreased by 0.08%, reflecting lower yields on U.S. Treasury securities (down 2.24%), U.S. government sponsored entity obligations (down 1.13%), partially offset by a 0.21% increase in the yield on corporate and other securities.
Interest expense in the first quarter of 2010 decreased $1.3 million compared with the same period in 2009. The decrease was attributable to lower rates paid on the interest-bearing deposits and lower average balances of borrowing, partially offset by higher rates paid on borrowings. The average rate paid on interest-bearing liabilities decreased from 0.62% in the first quarter of 2009 to 0.50% in the same quarter of 2010. Rates on interest-bearing deposits decreased 0.21% to 0.39% primarily due to decreases in rates paid on time deposits less than $100 thousand (down 0.97%), time deposits $100 thousand or more (down 0.08%) and preferred money market savings (down 0.16%). Rates on short-term borrowings increased 0.57% mostly due to a 0.34% increase in the rates on line of credit and repurchase facilities. The rate on Federal Home Loan Bank (FHLB) advances rose 0.22% to 1.37%. Average short-term borrowings declined $308 million in the first quarter of 2010 over the same period of 2009 primarily due to a $315 million decline in the average balance of federal funds purchased, partially offset by a $41 million increase in the average balance of line of credit and repurchase facilities. Interest-bearing deposits remained steady at first quarter 2009 levels, the net result of a $109 million decrease in the average balance of time deposits $100 thousand or more, offset by increases in average balances of money market savings (up $58 million), regular savings (up $24 million) and time deposits less than $100 thousand (down $24 million).
Comparing the first quarter of 2010 with the fourth quarter of 2009, interest expense declined $767 thousand, due to lower average balances of interest-bearing liabilities and lower rates on interest-bearing deposits, offset by higher rates paid on borrowings. Average interest-bearing liabilities during the first quarter of 2010 fell by $139 million over the last quarter of 2009 mainly due to decreases in average balances of FHLB advances (down $61 million), time deposits less than $100 thousand (down $44 million), money market savings (down $14 million) and time deposits $100 thousand or more (down $9 million). Rates paid on liabilities averaged 0.50% during the first three months of 2010 compared with 0.57% for the last three months of 2009. The average rate paid on interest-bearing deposits declined 0.06% to 0.39% in the first quarter 2010 mainly due to lower rates on time deposits $100 thousand or more (down 0.13%) and time deposits less than $100 thousand (down 0.13%).
During the first quarter of 2010, the net interest margin (FTE) increased 0.25% compared with the same period in 2009. Higher yields on earning assets (FTE) and lower rates paid on interest-bearing liabilities resulted in a 0.28% increase in net interest spread. The increase in the net interest spread was partially reduced by the lower net interest margin contribution of noninterest-bearing funding sources. The net interest margin (FTE) in the first three months of 2010 rose by 0.10% compared with the fourth quarter of 2009. Earning asset yields increased 0.05% while the cost of interest-bearing liabilities declined by 0.07%, resulting in a 0.12% increase in the net interest spread. The 0.02% decrease in margin contribution from noninterest bearing funding sources resulted in the net interest margin of 5.60%.
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