Overview

• California regional bank's Q2 net income fell 5.8% yr/yr, EPS up slightly

• Q2 net interest income declined 3.5% from prior year

• Company repurchased 753,000 shares during Q2 under buyback plan

Outlook

• Company did not provide specific guidance or outlook for the current or future periods in the press release

Result Drivers

• LOW COST OF FUNDS - Co said Q2 results benefited from low-cost funding and operating principles, with cost of funds at 0.24%

• NONINTEREST INCOME - Higher merchant processing fees, debit card fees and unrealized gains on equity securities lifted noninterest income

• COST CONTROL - Operating expenses were well controlled, with only a slight increase in noninterest expense, mainly from higher salaries and professional fees, offset by lower occupancy and equipment expense

Company press release: ID:nGNX7Bc4C7

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 EPS		$1.17
Q2 Net Income		$27.40 mln
Q2 Net Interest Income		$52.70 mln

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 $60.00, about 1.7% above its July 15 closing price of $59.02

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 12 three months ago

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