Westamerica Bancorp's Q3 net income dips

Overview

• US regional bank's Q3 net income falls slightly

• Net interest and loan fee income for Q3 dipped 0.6% from a year earlier

• Company retired 51,000 shares under its repurchase plan in Q3

Outlook

• Company did not provide specific financial guidance for the current or future periods

Result Drivers

• LOW COSTS - Co said results benefited from low-cost operating principles

• INVESTMENT IN SECURITIES - Excess cash from stable deposit balances was invested in higher interest earning investment securities, boosting net interest margin

• NO CREDIT LOSS PROVISION - Co recognized no provision for credit losses in Q3

• MERCHANT PROCESSING FEES - Higher merchant processing services fee income, including a one-time termination fee and increased transaction volumes, lifted noninterest income

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Westamerica Bancorp is $64.00, about 9% above its October 14 closing price of $58.70

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

• Oct 14 - US banks post solid third-quarter loan growth, but face more competition for deposits

• Oct 15 - Bank7 Corp's Q3 profit edges past estimates on loan growth

• Oct 14 - Home BancShares Q3 revenue rises on net interest income strength

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)