Westamerica Bancorp redeems preferred stock

Westamerica Bancorp redeems $42 million of preferred stock

• On 2:18 pm EDT, Wednesday September 2, 2009

SAN RAFAEL, Calif. (AP) -- Westamerica Bancorp said Wednesday it redeemed $42 million worth of its preferred shares issued to the federal government.

The 41,863 shares represent half of the preferred shares issued to the Treasury Department, the bank said in a statement. The redemption will require a one-time after-tax charge of $538,000, or about 2 cents per share.

Quarterly preferred stock dividends and discount accretion will decline $553,000, increasing quarterly earnings by about 2 cents per share.

"Westamerica is pleased to begin repaying the preferred stock, and intends to complete full redemption using our operating earnings," David Payne, chairman, president and CEO of the bank, said.

On Aug. 27, Westamerica's board approved the repurchase of up to 2 million common shares prior to Sept. 1, 2010.

Westamerica Bancorp operates 99 branches and two trust offices in California through its subsidiary Westamerica Bank.

Shares of Westamerica slipped 12 cents to $50.08 in afternoon trading.