Westamerica Bancorp (Nasdaq: WABC), parent company of Westamerica Bank, announced on Thursday that its third quarter net profit was up 9.9% from a year ago and down 2.2% from in the middle of the exercise.
The San Rafael-based bank said it made a profit of $ 22.1 million, or 82 cents per share, in the quarter ended Sept. 30, from $ 20.1 million, or 74 cents per share, a year ago, and $ 22.6 million, or 84 cents. an action, in the middle of its exercise.
The holding company of Westamerica Bank generated revenue of $ 55.1 million during the period. Its revenue net of interest expense was $ 54.6 million, beating Street’s forecast.
“Westamerica’s valuable deposit base generated a very low 0.03% annualized cost of funding our loan and bond portfolios during the third quarter of 2021. Operating expenses remained well managed in the third quarter. 2021, generating fifty-five percent of revenue over pre-tax profit. Credit quality remained strong with NPLs of $ 1.8 million as at September 30, 2021, ”said Chief Executive Officer David Payne in the financial results announcement. “Third quarter 2021 results generated an annualized return of 11.6% on average equity, and shareholders received a dividend of $ 0.41 per common share during the quarter,” concluded Payne.
Average business pandemic relief loan balances under the U.S. Small Business Administration’s Paycheck Protection Program declined to $ 145 million in fiscal third quarter from $ 208 million in the middle of exercise. As of September 30, PPP loans totaled $ 103 million.
Distressed loans also improved in the quarter, the institution said. Non-performing loans decreased to $ 1.8 million after the full repayment of an unrecorded loan of $ 3.1 million in the quarter. The allowance for credit losses on loans was $ 23.9 million as at September 30, 2021.
Deferrals of loan payments due to the economic weakness caused by the pandemic totaled $ 1.0 million as of September 30, a for consumer auto loans.
A year earlier, deferred consumer loans totaled $ 5.0 million. Commercial real estate loans with deferred payments totaled $ 19.1 million, primarily for hotels, restaurants and retail, “associated with low loan-to-value ratios.” Commercial loans with deferred payments totaled $ 209,000.