Core Insights - Westamerica (WABC) reported quarterly earnings of $1.16 per share, exceeding the Zacks Consensus Estimate of $1.09 per share, but down from $1.37 per share a year ago, indicating a 15.3% year-over-year decline [1] - The company achieved revenues of $66.42 million for the quarter, surpassing the Zacks Consensus Estimate by 0.28%, but down from $75.84 million year-over-year, reflecting a 12.5% decrease [2] - Westamerica's stock has underperformed, losing approximately 13.1% since the beginning of the year compared to the S&P 500's decline of 10.3% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.09, with expected revenues of $65.94 million, while for the current fiscal year, the EPS estimate is $4.35 on revenues of $263.81 million [7] - The estimate revisions trend for Westamerica is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Banks - West industry, to which Westamerica belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Another company in the same industry, FS Bancorp (FSBW), is expected to report quarterly earnings of $0.93 per share, reflecting a year-over-year decline of 12.3% [9]

Financial Performance - Westamerica Bancorporation reported net income of $31.0 million for Q1 2025, with diluted EPS of $1.16, compared to net income of $31.7 million and EPS of $1.19 in Q4 2024[1][11]. - The annualized return on average common equity was 11.9% in Q1 2025, down from 15.2% in Q1 2024[2][11]. - Net Income decreased by 14.8% to $31,037 million in Q1'2025 from $36,417 million in Q1'2024[34]. - Average Diluted Earnings per Common Share decreased by 15.3% to $1.16 in Q1'2025 from $1.37 in Q1'2024[34]. Income and Expenses - The company experienced a 14.7% decrease in net interest income (FTE) to $56.4 million in Q1 2025, down from $66.1 million in Q1 2024[3][11]. - Noninterest income for Q1 2025 totaled $10.3 million, a slight increase of 2.2% from $10.1 million in Q1 2024[4][11]. - Total Noninterest Income increased by 2.2% to $10,321 million in Q1'2025 from $10,097 million in Q1'2024[34]. - Noninterest expenses decreased by 3.7% to $25.1 million in Q1 2025, compared to $25.9 million in Q4 2024, primarily due to lower salaries and benefits[5][11]. - Total Noninterest Expense decreased by 3.7% to $25,127 million in Q1'2025 from $26,099 million in Q1'2024[34]. - Total Interest and Loan Fee Income decreased by 13.5% to $59,491 million in Q1'2025 from $68,746 million in Q1'2024[33]. - Net Interest and Loan Fee Income fell by 14.7% to $56,095 million in Q1'2025 compared to $65,745 million in Q1'2024[33]. Assets and Liabilities - Total assets decreased by 5.2% to $6.19 billion in Q1 2025, down from $6.53 billion in Q1 2024[15][11]. - Total assets decreased by 7.7% to $5,966,624,000 from $6,464,685,000 year-over-year[28]. - Total deposits fell by 7.8% to $4.96 billion in Q1 2025, compared to $5.38 billion in Q1 2024[17][11]. - Total deposits decreased by 9.0% to $4,874,095,000 from $5,354,925,000 year-over-year[31]. - Total loans outstanding decreased by 8.7% to $771,030,000 from $844,677,000 year-over-year[24]. - Total interest-bearing liabilities were $2,770,099, with an interest expense of $3,396 and a rate of 0.50%[19]. Credit Losses - The company recognized a reversal of provision for credit losses of $550 thousand in Q1 2025, with an allowance for credit losses on loans at $13.9 million[4][11]. - The allowance for credit losses on loans at the end of Q1'2025 was $13,914, a decrease of 12.4% from $15,879 in Q1'2024[23]. - Provision for Credit Losses showed a reversal of $550 million in Q1'2025 compared to a provision of $300 million in Q1'2024[33]. - The gross allowance for credit losses recoveries to gross losses ratio improved to 82% in Q1'2025 from 36% in Q1'2024[23]. - Total nonperforming loans decreased by 81.3% to $277,000 from $1,483,000 year-over-year[24]. Shareholder Information - The company paid a dividend of $0.44 per common share during Q1 2025, maintaining the same payout as in Q1 2024[12][11]. - Common equity per share increased by 18.0% to $35.02 from $29.68 year-over-year[28]. - Average retirement price for total shares retired was $50.96, with 361 shares retired[28]. Other Financial Metrics - Cash balances increased by 67.5% to $727,336,000 from $434,250,000 year-over-year[30]. - Interest-Bearing Cash increased significantly by 193.6% to $6,703 million in Q1'2025 from $2,283 million in Q1'2024[33]. - Merchant processing services revenue increased by 9.0% to $2,733 in Q1'2025 compared to $2,507 in Q1'2024[22]. - Trust Fees increased by 13.2% to $899 million in Q1'2025 from $794 million in Q1'2024[34].

Financial Performance - Westamerica Bancorporation reported a net income of $31.0 million for Q1 2025, with diluted earnings per share (EPS) of $1.16, compared to $31.7 million and $1.19 in Q4 2024 [1][12] - The first quarter results included a reversal of provision for credit losses amounting to $550 thousand, which positively impacted EPS by $0.01 [1][4] - The annualized return on average common equity for Q1 2025 was 11.9% [2] Income and Expenses - Net interest income on a fully-taxable equivalent (FTE) basis was $56.4 million in Q1 2025, down from $59.2 million in Q4 2024, reflecting a 14.7% decrease year-over-year [3][13] - Noninterest income totaled $10.3 million in Q1 2025, slightly up from $10.1 million in Q1 2024 but down from $10.6 million in Q4 2024 [4][24] - Noninterest expenses decreased to $25.1 million in Q1 2025 from $25.9 million in Q4 2024, primarily due to lower salaries and benefits expenses [5][25] Asset Quality - The allowance for credit losses on loans was $13.9 million as of March 31, 2025, down from $15.9 million a year earlier [4][26] - Nonperforming loans decreased significantly to $277 thousand, down 81.3% from $1.5 million in Q1 2024 [26] Deposits and Loans - Total deposits were $4.96 billion in Q1 2025, a decrease of 7.8% from $5.38 billion in Q1 2024 [18] - Total loans outstanding were $789.9 million, down 7.5% from $853.6 million in Q1 2024 [17] Capital and Liquidity - Shareholders' equity increased to $1.06 billion as of March 31, 2025, up 9.3% from $965.8 million a year earlier [32] - The company had $727.3 million in cash balances and expects to receive $265 million in principal payments from debt securities over the next twelve months [28]

Financial Position - As of December 31, 2024, the Company had consolidated assets of approximately $6.1 billion, deposits of approximately $5.0 billion, and shareholders' equity of approximately $890 million[20]. - The Company's total assets decreased to $6.08 billion in 2024 from $6.36 billion in 2023, while total deposits also fell to $5.01 billion from $5.47 billion[140]. - Shareholders' equity increased to $1,003,242 in 2024 from $894,610 in 2023[169]. - The carrying value of the investment securities portfolio decreased to $4.2 billion at December 31, 2024, down from $4.9 billion at December 31, 2023[189]. - The total corporate securities held by the Company decreased from $2.614904 billion in 2023 to $2.539147 billion in 2024[197]. Employee Relations - The Company employed 642 employees (616 full-time equivalent staff) as of December 31, 2024, and maintains a good relationship with its employees[22]. - The Company has a comprehensive benefits package for employees, including company contributions of up to 6% to qualified retirement plans[23]. - Salaries and related benefits increased by $2.4 million in 2024 compared to 2023, attributed to merit increases and higher health insurance costs[184]. Regulatory Compliance - The Company is subject to examination and supervision by the Federal Reserve Board and the California Department of Financial Protection and Innovation[27]. - The Company is subject to significant federal and state regulations that could materially affect its business operations and financial condition[92]. - The Company does not have immediate plans to elect to use the community bank leverage ratio framework but may consider it in the future[44]. - The Company is subject to restrictions on dividend payments based on retained earnings and total assets, which must meet specific criteria under California General Corporation Law[50][52]. Financial Performance - Westamerica Bancorporation reported net income of $138.6 million in 2024, down from $161.8 million in 2023, resulting in diluted earnings per share (EPS) of $5.20 compared to $6.06 in the previous year[145]. - Total interest and loan fee income for 2024 was $268.0 million, while interest expense increased to $17.4 million from $3.9 million in 2023[140]. - The net interest margin (FTE) for 2024 was 4.14%, a decrease from 4.37% in 2023[140]. - The efficiency ratio improved to 35.4% in 2024 from 31.7% in 2023, indicating better cost management relative to revenue[140]. - Noninterest income for 2024 remained stable at $43.2 million compared to 2023, with a $1.4 million gain on the sale of other assets offset by lower income from merchant processing services[155]. Loan Portfolio - Total loans decreased to $820,300,000 in 2024 from $866,602,000 in 2023, representing a decline of approximately 5.5%[209]. - Commercial loans decreased to $127,276,000 in 2024 from $136,550,000 in 2023, a decline of about 9.3%[209]. - Consumer installment and other loans decreased to $171,786,000 in 2024 from $227,531,000 in 2023, reflecting a significant decline of approximately 24.5%[209]. - The commercial real estate loan portfolio increased to $507,900,000 in 2024 from $487,523,000 in 2023, showing a growth of about 4.3%[209]. - The maturity distribution of loans indicates that $75,496,000 are due within one year as of December 31, 2024[210]. Market and Economic Risks - The Company faces competition from major banks, community banks, credit unions, and other financial institutions, with ongoing legislative and technological changes affecting competitive conditions[67][68]. - The Company's operations are heavily concentrated in California, where approximately 65% of its loan portfolio is secured by real estate, making it vulnerable to economic downturns in the region[83]. - Adverse changes in general business or economic conditions, including inflation, could negatively impact the Company's financial performance and credit quality of its loans[86]. - Negative developments in the banking industry, such as bank failures, could increase FDIC deposit insurance premiums and decrease depositor confidence, adversely affecting the Company's stock price and liquidity management[78]. Risk Management - The Company is committed to addressing potential health, safety, and environmental risks through various practices[20]. - The Company has implemented data security safeguards with third-party vendors to quickly identify and contain improper access to sensitive information[101]. - The Company continuously reviews and updates its internal controls and procedures to mitigate risks related to financial reporting and fraud[102]. - The Company closely monitors credit risk and classifies loans with higher levels of credit risk as "nonaccrual loans" when full collection is in doubt[215]. Investment Securities - The Company holds $2.766591 billion in total corporate securities as of December 31, 2024, with a fair value of $2.539147 billion[196]. - Corporate securities comprised 61% of the investment securities portfolio as of December 31, 2024, compared to 54% in 2023[190]. - The fair value of the Company's corporate securities rated AAA is $311.650 million, while those rated AA total $670.939 million as of December 31, 2024[198].

Core Viewpoint - Westamerica Bancorporation's Board of Directors has approved a stock repurchase plan for up to 2,000,000 shares, representing approximately 7.5% of the company's outstanding common stock as of December 31, 2024, to be executed before March 31, 2026 [1][2]. Group 1 - The stock repurchase plan reflects Westamerica's financial strength, conservative risk profile, and reliable earnings stream as stated by Chairman, President, and CEO David Payne [2]. - The repurchase will occur in the open market or through privately negotiated transactions [1]. - Westamerica Bancorporation operates banking and trust offices throughout Northern and Central California through its wholly owned subsidiary, Westamerica Bank [2].

Company Performance - Westamerica (WABC) reported quarterly earnings of $1.19 per share, missing the Zacks Consensus Estimate of $1.21 per share, and down from $1.48 per share a year ago, representing an earnings surprise of -1.65% [1] - The company posted revenues of $69.57 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 0.64%, and down from $80.37 million year-over-year [2] - Over the last four quarters, Westamerica has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] Stock Performance - Westamerica shares have lost about 1.1% since the beginning of the year, while the S&P 500 has gained 1.2% [3] - The current Zacks Rank for Westamerica is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the coming quarter is $1.12 on revenues of $67.15 million, and for the current fiscal year, it is $4.40 on revenues of $265.59 million [7] - The outlook for the industry, specifically the Banks - West sector, is currently in the top 35% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]

Financial Performance - Net income for Q4 2024 was $31.7 million, with diluted EPS of $1.19, a decrease of 19.7% compared to Q4 2023[1][10] - Total Revenue (FTE) decreased by 9.3% to $295,061 thousand compared to $325,195 thousand in Q4 2023[24] - Net income decreased by 19.7% to $31,700 million compared to $39,468 million in the previous year[36] - Basic earnings per share decreased by 19.6% to $1.19 from $1.48[36] Income and Expenses - Net interest income (FTE) for Q4 2024 was $59.2 million, down 15.0% from $69.7 million in Q4 2023[3][10] - Noninterest income totaled $10.6 million in Q4 2024, a decrease of 3.3% from $11.9 million in Q3 2024[4][10] - Total Noninterest Income declined by 3.3% to $10,633 thousand from $11,925 thousand in Q4 2023[23] - Total noninterest income fell by 3.3% to $10,633 million from $10,992 million[36] - Total interest and loan fee income decreased by 12.2% to $62,402 from $71,052 year-over-year[35] - Net interest and loan fee income declined by 15.0% to $58,936 compared to $69,373 in the previous year[35] - Total interest expense surged by 347.8% to $17,419 million from $3,890 million[37] - Total Noninterest Expense increased by 1.3% to $25,853 thousand compared to $25,517 thousand in Q4 2023[25] Asset and Liability Management - Total assets decreased by 6.3% year-over-year to $6,243,799 million in Q4'2024 from $6,665,040 million in Q4'2023[16] - Total deposits decreased by 9.8% year-over-year to $5,028,363 million in Q4'2024 from $5,573,281 million in Q4'2023[19] - Total loans declined by 5.9% to $821,767 million in Q4'2024 compared to $873,635 million in Q4'2023[16] - Total short-term borrowings increased by 70.0% to $110,404 million in Q4'2024 from $64,927 million in Q4'2023[19] - Total interest-bearing cash increased by 141.8% to $471,417 million in Q4'2024 from $194,951 million in Q4'2023[16] Loan and Deposit Trends - Consumer loans saw a significant drop of 23.1%, falling to $187,133 million in Q4'2024 from $243,455 million in Q4'2023[16] - Noninterest demand deposits fell by 12.4% to $2,342,092 million in Q4'2024 compared to $2,672,170 million in Q4'2023[19] - Average Total Loans decreased by 5.9% to $821,767 thousand from $873,635 thousand in Q4 2023[27] - Loans decreased by 5.3% to $820,300 from $866,602[34] Equity and Ratios - Shareholders' equity rose by 10.7% to $1,039,017 million in Q4'2024 from $938,738 million in Q4'2023[19] - The return on average common equity for Q4 2024 was 12.1%, down from 16.7% in Q4 2023[2][10] - The tangible common equity ratio improved to 12.90% from 10.43% year-over-year[33] - The loans to deposits ratio improved slightly to 16.3% in Q4'2024 from 15.7% in Q4'2023[16] Market and Operational Metrics - The efficiency ratio (FTE) for Q4 2024 was 37.0%, up from 31.6% in Q4 2023[10] - Nonperforming assets remained stable at $0.7 million as of December 31, 2024[2] - Nonperforming Loans decreased by 7.1% to $735 thousand from $791 thousand in Q4 2023[28] - Trust fees increased by 13.5% to $867 million compared to $764 million[36] - Operating losses decreased by 24.0% to $1,095 million from $1,440 million[36] Cash and Liquidity - Cash balances at December 31, 2024, were $601,494 thousand, with expected principal payments of $309,000 thousand from debt securities[29] - The Company had access to borrowing from the Federal Reserve up to $766,606 thousand based on collateral pledged at December 31, 2024[29] - Cash and due from banks surged by 216.1% to $601,494, compared to $190,314 last year[34] Investment and Securities - Total investment securities decreased by 12.1% to $4,557,436 million in Q4'2024 from $5,182,557 million in Q4'2023[16] - Total debt securities available for sale decreased by 15.1% to $3,395,810 from $3,999,801[34]

Core Viewpoint - Westamerica Bancorporation reported a net income of $31.7 million for Q4 2024, reflecting a decrease from $35.1 million in Q3 2024, with diluted earnings per share (EPS) of $1.19, down from $1.31 in the previous quarter [1][2]. Financial Performance - The net interest income on a fully-taxable equivalent (FTE) basis was $59.2 million for Q4 2024, compared to $62.5 million in Q3 2024, marking a 15.0% decrease [3][9]. - Noninterest income totaled $10.6 million in Q4 2024, down from $11.9 million in Q3 2024, which included $1.6 million in gains from life insurance and asset sales [4][21]. - Total noninterest expenses were $25.9 million in Q4 2024, slightly lower than $26.3 million in Q3 2024 [4][24]. Asset and Liability Management - Total assets decreased to $6.24 billion in Q4 2024 from $6.46 billion in Q3 2024, a decline of 3.4% [15]. - Total deposits fell to $5.03 billion in Q4 2024, down 9.8% from $5.57 billion in Q4 2023 [17]. - The company maintained a stable nonperforming asset level of $0.7 million as of December 31, 2024 [2]. Capital and Returns - The annualized return on average common equity was 12.1% for Q4 2024, down from 16.7% in Q4 2023 [2][9]. - Shareholders received a dividend of $0.44 per common share during Q4 2024, consistent with the previous quarter [2][9]. Loan and Investment Portfolio - Total loans decreased to $821.8 million in Q4 2024, down 5.9% from $873.6 million in Q4 2023 [15]. - The annualized yield on loans, bonds, and cash was 4.25% in Q4 2024, compared to 4.45% in Q3 2024 [3][12]. Cost of Funds - The annualized cost of funding the loan and bond portfolios was 0.24% in Q4 2024, a decrease from 0.37% in Q3 2024 [3][12].

Financial Performance - Total interest and loan fee income for Q3 2024 was $67,794, a decrease of 7.1% from $72,848 in Q3 2023[14] - Net income for Q3 2024 was $35,057, down 15.5% from $41,601 in Q3 2023[14] - Basic earnings per share for Q3 2024 were $1.31, compared to $1.56 in Q3 2023, reflecting a decline of 16.0%[14] - Total noninterest income for Q3 2024 was $11,925, an increase of 5.7% from $11,281 in Q3 2023[14] - Total noninterest expense for Q3 2024 was $26,309, up 2.6% from $25,650 in Q3 2023[14] - The company reported a total comprehensive income of $104,704 for Q3 2024, significantly higher than $7,935 in Q3 2023[16] - The company paid dividends of $0.44 per share in Q3 2024, consistent with Q3 2023[14] - Net income for the period ended September 30, 2024, was $106,936 thousand, compared to $122,300 thousand for the same period in 2023, reflecting a decrease of approximately 12.5%[20] - Total shareholders' equity as of September 30, 2024, was $909,040 thousand, an increase from $648,423 thousand as of September 30, 2023, representing a growth of approximately 40.1%[18] Credit Losses and Loan Quality - The provision for credit losses was $0 in Q3 2024, compared to a reversal of $400 in Q3 2023[14] - The allowance for credit losses increased to $15,318,000 as of September 30, 2024, compared to $16,867,000 at the end of 2023, reflecting a reduction of approximately 9.2%[65] - The credit risk profile shows that $807,651,000 of loans were assigned a "Pass" grade, representing the majority of the total loans outstanding[68] - The company reported no debt securities held to maturity on nonaccrual status or past due 30 days or more as of September 30, 2024[62] - The total allowance for credit losses for the nine months ended September 30, 2024, was $15,318,000, reflecting a decrease from the previous year[67] - The company maintains a Loan Review Department that performs independent evaluations of loans, ensuring compliance with regulatory standards[67] - Nonaccrual loans totaled $403 thousand, with no allowance for credit losses allocated to these loans as of September 30, 2024[70] - The risk category of loans showed $22,595 thousand classified as pass grade, with $2,672 thousand as substandard[73] Deposits and Cash Flow - The company experienced a net change in deposits of $(409,217) thousand for the period ended September 30, 2024, compared to $(526,277) thousand in the prior year, indicating a smaller outflow[20] - As of September 30, 2024, total deposits amounted to $5,065,050 thousand, a decrease from $5,474,267 thousand on December 31, 2023, representing a decline of approximately 7.5%[102] - Noninterest-bearing deposits were $2,375,958 thousand at September 30, 2024, down from $2,605,844 thousand at December 31, 2023, indicating a decrease of about 8.8%[102] - The company reported net cash provided by operating activities for the period ended September 30, 2024, of $111,799 thousand, down from $166,189 thousand in the previous year, indicating a decline of about 32.7%[20] - The company experienced a net cash used in financing activities of $370,020 thousand for the period ended September 30, 2024, compared to $516,696 thousand in the previous year, reflecting a reduction of approximately 28.3%[20] Investment Securities - The company reported total debt securities available for sale at an amortized cost of $3,761,718 thousand and a fair value of $3,580,486 thousand as of September 30, 2024, reflecting gross unrealized losses of $183,797 thousand[47] - The amortized cost of debt securities held to maturity was $850,262 thousand, with a fair value of $837,080 thousand, indicating gross unrealized losses of $15,152 thousand[47] - The total amortized cost of all debt securities was $4,611,980 thousand, with a fair value of $4,417,566 thousand, resulting in total gross unrealized losses of $198,949 thousand[48] - The company reported gross unrealized gains of $2,565 thousand on debt securities available for sale as of September 30, 2024[47] - The company holds $2,057,115 thousand in corporate securities, with a fair value of $1,901,617 thousand, reflecting significant unrealized losses[47] - The total fair value of debt securities available for sale was $2,906,499 thousand, with significant unrealized losses concentrated in corporate securities[52] Economic Outlook and Management Strategies - The company anticipates continued economic uncertainty and competitive pressure in the banking industry affecting future performance[9] - Management continues to evaluate the impacts of inflation, Federal Reserve's monetary policy, and climate changes on the Company's business[2] - The company does not intend to sell any debt securities available for sale with material unrealized losses, indicating a long-term holding strategy[54] - The Company continuously monitors market conditions, including interest rate changes and credit ratings, to assess the impact on the value of its debt securities[56] - The company aims to improve its credit loss allowance by closely monitoring the delinquency and nonaccrual status of its loan portfolio[81]

Core Points - Westamerica Bancorporation declared a quarterly cash dividend of $0.44 per share for shareholders of record as of November 4, 2024, payable on November 15, 2024 [1] - The company reported a net income of $35.1 million for the three months ended September 30, 2024, translating to $1.31 diluted earnings per common share [1] - The Chairman, President, and CEO, David Payne, emphasized that the dividend reflects Westamerica's reliable earnings, financial strength, and conservative risk profile [1] Financial Performance - Westamerica Bancorporation's net income for Q3 2024 was $35.1 million [1] - Diluted earnings per common share for the same period were reported at $1.31 [1] Corporate Information - Westamerica Bancorporation operates through its wholly owned subsidiary, Westamerica Bank, with banking and trust offices located throughout Northern and Central California [1] - The company's website is www.westamerica.com [1]