Westamerica reports Q2 EPS 67c, consensus 67c
"Second quarter net income benefited from higher interest income as rising market interest rates are benefiting our loan and investment securities yields. Our annualized funding costs were unchanged, however, at 0.04% of interest-earning assets due to the predominance of low-cost checking and savings accounts in our deposit portfolio. Net interest income on a fully-taxable equivalent basis was $36.6M for 2Q18, compared to $35.5M for 1Q18 and $35.8M for 2Q17. Noninterest expenses for 2Q18 were $24M, compared to $24.2M for 1Q18 and $24.4M 2Q17. The improvement in revenue and decline in operating expenses resulted in pre-tax income equal to 50.4% of total revenues for 2Q18," said chairman, president and CEO David Payne. "Asset quality remains strong with nonperforming assets totaling only $6M at June 30, 2018, and net loan loss recoveries of $31 thousand for the first six months of 2018. Second quarter 2018 results generated an annualized 11.6% return on average common equity for our shareholders."