PART I - FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201%20Financial%20Statements) This section presents Westamerica Bancorporation's unaudited consolidated financial statements for the quarter ended March 31, 2025, detailing its financial position, performance, and cash flows [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased to $5.97 billion at March 31, 2025, from $6.08 billion at December 31, 2024, primarily due to a reduction in loans and debt securities, while shareholders' equity increased Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $5,966,624 | $6,076,274 | | Loans, net | $757,116 | $805,520 | | Total Deposits | $4,874,095 | $5,011,850 | | Total Liabilities | $5,043,486 | $5,186,317 | | Total Shareholders' Equity | $923,138 | $889,957 | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) For the first quarter of 2025, net income was $31.0 million, a decrease from $36.4 million in the first quarter of 2024, primarily driven by a $9.6 million decrease in net interest and fee income Income Statement Highlights (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Interest and Fee Income | $56,095 | $65,745 | | (Reversal of) Provision for Credit Losses | ($550) | $300 | | Noninterest Income | $10,321 | $10,097 | | Noninterest Expense | $25,127 | $26,099 | | Net Income | $31,037 | $36,417 | | Diluted Earnings Per Share | $1.16 | $1.37 | [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Total comprehensive income for Q1 2025 was $62.4 million, a significant increase from $29.8 million in Q1 2024, driven by a positive change in net unrealized losses on debt securities available for sale Comprehensive Income (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income | $31,037 | $36,417 | | Other Comprehensive Income (Loss), net of tax | $31,336 | ($6,575) | | **Total Comprehensive Income** | **$62,373** | **$29,842** | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the three months ended March 31, 2025, net cash provided by operating activities was $42.4 million, and net cash provided by investing activities was $258.3 million, resulting in a net increase in cash and due from banks of $125.8 million Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $42,394 | $52,212 | | Net Cash Provided by Investing Activities | $258,283 | $130,839 | | Net Cash (Used in) Provided by Financing Activities | ($174,835) | $60,885 | | **Net Change In Cash and Due from Banks** | **$125,842** | **$243,936** | [Notes to Unaudited Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) This section provides detailed disclosures on accounting policies and specific financial statement items, including investment securities, loan portfolio, allowance for credit losses, deposits, borrowings, fair value measurements, and commitments [Note 3: Investment Securities](index=12&type=section&id=Note%203%3A%20Investment%20Securities) The investment securities portfolio totaled $4.1 billion at fair value as of March 31, 2025, primarily composed of corporate securities and collateralized loan obligations, with unrealized losses mainly due to higher market interest rates Investment Securities Portfolio (Amortized Cost, in thousands) | Security Type | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Debt securities available for sale | $3,430,221 | $3,634,471 | | Debt securities held to maturity | $839,349 | $844,635 | | **Total** | **$4,269,570** | **$4,479,106** | - Unrealized losses on debt securities were primarily caused by market conditions, specifically **higher interest rates**, not credit deterioration. All collateralized loan obligations, municipal, and corporate securities were **investment grade** at March 31, 2025[57](index=57&type=chunk) - The company does not intend to sell any debt securities available for sale with a material unrealized loss and believes it is more likely than not that it will not be required to sell them prior to recovery of the amortized cost basis[58](index=58&type=chunk) [Note 4: Loans, Allowance for Credit Losses, and OREO](index=19&type=section&id=Note%204%3A%20Loans%2C%20Allowance%20for%20Credit%20Losses%20and%20Other%20Real%20Estate%20Owned) Total loans decreased to $771.0 million at March 31, 2025, with the allowance for credit losses at 1.80% of total loans, and a net reversal of provision recorded in Q1 2025 Loan Portfolio Composition (in thousands) | Loan Category | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Commercial | $111,888 | $127,276 | | Commercial real estate | $489,612 | $507,900 | | Consumer installment & other | $156,405 | $171,786 | | **Total Loans** | **$771,030** | **$820,300** | Allowance for Credit Losses Activity - Q1 2025 (in thousands) | Activity | Amount | | :--- | :--- | | Beginning Balance (Jan 1, 2025) | $14,780 | | (Reversal) provision | ($550) | | Charge-offs | ($1,726) | | Recoveries | $1,410 | | **Ending Balance (Mar 31, 2025)** | **$13,914** | - As of March 31, 2025, there were **no loans on nonaccrual status**, a decrease from $201 thousand at year-end 2024. The company held **no Other Real Estate Owned (OREO)**[72](index=72&type=chunk)[81](index=81&type=chunk) [Note 8: Deposits and Borrowed Funds](index=29&type=section&id=Note%208%3A%20Deposits%20and%20Borrowed%20Funds) Total deposits decreased to $4.87 billion at March 31, 2025, with noninterest-bearing deposits comprising 46% of the total, and no outstanding borrowings from available credit lines Deposit Composition (in thousands) | Deposit Type | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Noninterest-bearing | $2,241,802 | $2,333,389 | | Interest-bearing | $2,632,293 | $2,678,461 | | **Total Deposits** | **$4,874,095** | **$5,011,850** | - At March 31, 2025, the Company had access to borrowing from the Federal Reserve up to **$725 million** and a **$60 million** line of credit with a correspondent bank, with **no outstanding balances** on either[97](index=97&type=chunk) [Management's Discussion and Analysis (MD&A)](index=36&type=section&id=Item%202%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the financial results for Q1 2025, highlighting a decrease in net income due to lower net interest income and a compressed net interest margin, while affirming strong capital ratios and liquidity Key Financial Performance Metrics | Metric | Q1 2025 | Q1 2024 | Q4 2024 | | :--- | :--- | :--- | :--- | | Net Income (in millions) | $31.0 | $36.4 | $31.7 | | Diluted EPS | $1.16 | $1.37 | $1.19 | | Return On Assets (ROA) | 2.03% | 2.24% | 2.02% | | Return On Common Equity (ROE) | 11.92% | 15.17% | 12.14% | | Net Interest Margin (FTE) | 3.90% | 4.30% | 4.01% | [Net Interest Income and Margin](index=40&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income (FTE) decreased by $9.7 million year-over-year in Q1 2025, leading to a net interest margin compression to 3.90%, primarily due to lower asset yields and higher deposit rates - The decrease in net interest income compared to Q1 2024 was due to **lower average balances of investment securities** (down **$703 million**) and **loans** (down **$64 million**), **lower yields on securities and cash**, and **higher rates on deposits**[131](index=131&type=chunk) - The annualized net interest margin (FTE) was **3.90%** in Q1 2025, down from **4.30%** in Q1 2024 and **4.01%** in Q4 2024[133](index=133&type=chunk) [Loan Portfolio and Credit Risk](index=51&type=section&id=Loan%20Portfolio%20and%20Credit%20Risk) The company maintains a conservative credit risk approach, with very low nonperforming loans and an adequate allowance for credit losses at 1.80% of total loans, recording a reversal of provision in Q1 2025 Nonperforming Loans (in thousands) | Status | March 31, 2025 | March 31, 2024 | Dec 31, 2024 | | :--- | :--- | :--- | :--- | | Total nonaccrual loans | $0 | $958 | $201 | | Accruing loans 90+ days past due | $277 | $525 | $534 | | **Total nonperforming loans** | **$277** | **$1,483** | **$735** | - The allowance for credit losses as a percentage of total loans was **1.80%** at March 31, 2025, consistent with the **1.80%** at year-end 2024[189](index=189&type=chunk) [Liquidity and Capital Resources](index=59&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity, primarily from a stable deposit base, and robust capital ratios significantly exceeding regulatory minimums, while also engaging in dividends and stock repurchases - At March 31, 2025, estimated federally uninsured deposits totaled **$2.36 billion**[212](index=212&type=chunk) - During Q1 2025, the company paid dividends of **$0.44 per share** (totaling **$12 million**) and retired **361 thousand shares** of common stock for **$18 million**[217](index=217&type=chunk)[219](index=219&type=chunk) Company Capital Ratios (March 31, 2025) | Ratio | Company Actual | Required for Adequacy | | :--- | :--- | :--- | | Common Equity Tier I Capital | 23.33% | 7.00% | | Tier I Capital | 23.33% | 8.50% | | Total Capital | 23.68% | 10.50% | | Leverage Ratio | 15.47% | 4.00% | [Quantitative and Qualitative Disclosures about Market Risk](index=52&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company identifies credit and interest rate risk as its most significant market risks, which are discussed in the MD&A, and does not use derivative instruments for trading or risk management - The company identifies **credit risk** and **interest rate risk** as its most significant market risks[224](index=224&type=chunk) - The company does not engage in trading activities or use derivative instruments to manage interest rate risk[223](index=223&type=chunk) [Controls and Procedures](index=52&type=section&id=Item%204%20Controls%20and%20Procedures) The company's disclosure controls and procedures were deemed effective as of March 31, 2025, with no material changes to internal control over financial reporting identified during the quarter - Management concluded that the Company's disclosure controls and procedures are **effective**[227](index=227&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=62&type=section&id=Item%201%20Legal%20Proceedings) The company is subject to various legal cases in the ordinary course of business but does not expect them to materially affect its financial position or results of operations - The company is not a party to any material pending legal proceedings outside of the ordinary course of business[228](index=228&type=chunk) [Issuer Purchases of Equity Securities](index=63&type=section&id=Item%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In March 2025, the company repurchased 356 thousand shares of common stock under a new program authorizing up to 2 million shares through March 31, 2026 - A new stock repurchase plan was approved on February 27, 2025, authorizing the purchase of up to **2,000,000 shares**[233](index=233&type=chunk) Share Repurchases in Q1 2025 | Period | Shares Purchased | Average Price Paid | | :--- | :--- | :--- | | Jan 2025 | N/A | N/A | | Feb 2025 | 0 | $0.00 | | Mar 2025 | 356,000 | $50.44 | | **Total Q1** | **356,000** | **$50.44** |

Core Points - Westamerica Bancorporation declared a quarterly cash dividend of $0.46 per share, marking a two cent increase from the previous quarter, payable on May 16, 2025, to shareholders of record by May 5, 2025 [1][2] - The company reported a net income of $31.0 million for the three months ending March 31, 2025, translating to $1.16 diluted earnings per common share [2] Financial Performance - The increase in the quarterly dividend reflects Westamerica's reliable earnings stream, financial strength, and conservative risk profile as stated by Chairman, President, and CEO David Payne [2] - The reported net income of $31.0 million indicates a stable financial performance for the company in the recent quarter [2] Company Overview - Westamerica Bancorporation operates through its wholly owned subsidiary, Westamerica Bank, providing banking and trust services across Northern and Central California [2]

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].