DJN: PRESS RELEASE: Westamerica Bancorporation Third Quarter 2009 Financial Results

(DOW JONES) DJN: PRESS RELEASE: Westamerica Bancorporation Third Quarter 2009 Financial Results
DJN: PRESS RELEASE: Westamerica Bancorporation Third Quarter 2009 Financial Results

SAN RAFAEL, Calif.--(BUSINESS WIRE)--October 14, 2009--
Westamerica Bancorporation (NASDAQ: WABC) earned net income applicable to
common shareholders of $23.8 million, or $0.81 per diluted common share
("EPS"), for the three months ended September 30, 2009, compared to net
income applicable to common shareholders of $22.1 million, or $0.75 EPS, for
the three months ended June 30, 2009. During the third quarter 2009,
Westamerica completed systems conversions and branch consolidations related
to the purchase of assets and assumption of liabilities of the former County
Bank, which resulted in reduced expense levels. During the third quarter
2009, Westamerica redeemed $42 million in preferred stock requiring
accelerated discount accretion of $538 thousand, which reduced EPS $0.02.
Also during the third quarter 2009, Westamerica eliminated $587 thousand in
tax reserves due to a lapse in the statute of limitations, which reduced tax
provisions and increased EPS $0.02. Third quarter 2009 results represents a
20 percent return on common shareholders' equity.
"The County Bank integration was completed on time in August, and the
efficiencies gained following the integration will continue to benefit
future operating results. The cost of funding our loan and investment
portfolio continued to decline due to our pricing practices and an improved
mix of deposits. The third quarter 2009 cost of funds was 0.40 percent,
which supported our 5.48 percent net interest margin. The risk profile of
our loan portfolio is significantly reduced as loss-sharing agreements with
the Federal Deposit Insurance Corporation cover 29 percent of our loan
portfolio. The credit quality of the non-FDIC covered loans remained stable
during the quarter," said Chairman, President and CEO David Payne. "Our
healthy profitability and 15.1 percent total regulatory capital ratio
distinguishes Westamerica as a safe and sound bank during this troublesome
period for our industry," added Payne.