What are Westamerica Bancorporation's Business Segments?
Commercial loans represent term loans used to acquire durable business assets
or revolving lines of credit used to finance working capital. Underwriting practices
evaluate each borrower’s cash flow as the principal source of loan repayment.
Commercial loans are generally secured by the borrower’s business assets
as a secondary source of repayment. Commercial loans are evaluated for credit-worthiness
based on prior loan performance, borrower financial information including cash
flow, borrower net worth and aggregate debt.
Commercial real estate loans represent term loans used to acquire real estate
to be operated by the borrower in a commercial capacity. Underwriting practices
evaluate each borrower’s global cash flow as the principal source of loan
repayment, independent appraisal of value of the property, and other relevant
factors. Commercial real estate loans are generally secured by a first lien on
the property as a secondary source of repayment.
Real estate construction loans represent the financing of real estate development.
Loan principal disbursements are controlled through the use of project budgets,
and disbursements are approved based on construction progress, which is validated
by project site inspections. The real estate serves as collateral, secured by
a first lien position on the property.
Residential real estate loans generally represent first lien mortgages used by
the borrower to purchase or refinance a principal residence. For interest-rate
risk purposes, the Company offers only fully-amortizing, adjustable-rate mortgages.
In underwriting first lien mortgages, the Company evaluates each borrower’s
ability to repay the loan, an independent appraisal of the value of the property,
and other relevant factors. The Company does not offer riskier mortgage products,
such as non-amortizing “interest-only” mortgages and “negative
amortization” mortgages.
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