Company Performance - Westamerica (WABC) reported quarterly earnings of $1.27 per share, matching the Zacks Consensus Estimate, but down from $1.55 per share a year ago [1] - The company posted revenues of $74.07 million for the quarter ended September 2024, exceeding the Zacks Consensus Estimate by 1.83%, but down from $83 million year-over-year [1] - Over the last four quarters, Westamerica has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [1] Market Performance - Westamerica shares have declined approximately 9.4% since the beginning of the year, contrasting with the S&P 500's gain of 22.5% [2] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [4] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.23 on revenues of $71.33 million, and for the current fiscal year, it is $5.20 on revenues of $294.18 million [4] - The trend of estimate revisions for Westamerica is mixed, and future changes in estimates will be closely monitored following the recent earnings report [4] Industry Context - The Banks - West industry, to which Westamerica belongs, is currently ranked in the bottom 35% of over 250 Zacks industries, indicating potential challenges ahead [5] - Another bank in the same industry, RBB, is expected to report a quarterly earnings decline of 39.7% year-over-year, with revenues anticipated to drop by 20.2% [5]

Financial Performance - Westamerica Bancorporation reported net income of $35.1 million for Q3 2024, with diluted EPS of $1.31, compared to $35.5 million and $1.33 EPS in Q2 2024[1][2]. - The annualized return on average common equity was 13.7% for Q3 2024, down from 14.4% in Q2 2024[2][6]. - Noninterest income increased to $11.9 million in Q3 2024, up 5.7% from $10.5 million in Q2 2024[3][6]. - Total Revenue (FTE) for Q3'2024 was $74,390, a decrease of 10.8% compared to Q3'2023's $83,373[18]. - Net income decreased by 15.7% to $35,057, down from $41,601[39]. - Basic earnings per share decreased by 16.0% to $1.31, compared to $1.56[39]. Interest Income and Expenses - Net interest income on a fully-taxable equivalent basis was $62.5 million in Q3 2024, a decrease of 13.4% from $72.1 million in Q3 2023[3][6]. - Interest expense surged by 531.1% year-over-year to $13,953,000, significantly impacting net interest income[11]. - Net interest and loan fee income (FTE) declined by 9.1% year-over-year to $192,659,000[11]. - Net Interest Income and Margin (FTE) for Q3'2024 was $72,092 with a margin of 4.43%, compared to $62,465 and 4.08% in Q3'2023[17]. - Net interest and loan fee income decreased by 13.3% to $62,149, down from $71,715[39]. - Total interest expense surged by 398.2% to $5,645, compared to $1,133[39]. Loans and Deposits - Total loans decreased by 9.1% year-over-year to $840,961,000[12]. - Consumer loans saw a significant decline of 21.0% year-over-year to $216,723,000[12]. - Total deposits decreased by 10.8% year-over-year to $5,224,158,000[14]. - Noninterest demand deposits decreased by 10.6% year-over-year to $2,480,815,000[14]. - Loans to deposits ratio improved to 16.1% from 15.8% year-over-year[12]. - Average total loans decreased by 9.1% to $840,961 thousand compared to $925,351 thousand in the previous year[25]. Expenses and Dividends - Operating expenses were 35% of total revenues in Q3 2024, with noninterest expenses totaling $26.3 million, slightly up from $26.1 million in Q2 2024[2][3]. - Total Noninterest Expense for Q3'2024 was $32,522, an increase of 8.0% from $30,120 in Q3'2023[22]. - Shareholders received a dividend of $0.44 per common share during Q3 2024, maintaining the same payout as in Q2 2024[2][6]. Credit Losses and Allowances - The company recognized no provision for credit losses in Q3 2024, with nonperforming assets stable at $0.9 million[2][3]. - The allowance for credit losses stood at $15.3 million as of September 30, 2024[2][3]. - Allowance for Credit Losses (ACLL) at the end of Q3'2024 was $15,318, down 13.7% from $17,744 in Q3'2023[24]. - Total nonperforming loans decreased by 25.8% to $919 thousand from $1,238 thousand year-over-year[27]. Assets and Equity - Total assets decreased by 6.2% to $6,161,143 thousand compared to $6,567,288 thousand in the previous year[31]. - Total shareholders' equity increased by 40.2% year-over-year to $909,040, compared to $648,423[37]. - Cash balances increased by 19.6% to $502,945 thousand from $420,550 thousand year-over-year[33].

Core Viewpoint - Westamerica Bancorporation reported a net income of $35.1 million for Q3 2024, slightly down from $35.5 million in Q2 2024, with diluted earnings per share (EPS) of $1.31 compared to $1.33 in the previous quarter [1][2]. Financial Performance - The net interest income on a fully-taxable equivalent (FTE) basis was $62.5 million for Q3 2024, down from $64.1 million in Q2 2024, reflecting a 13.4% decrease year-over-year [3][5]. - Noninterest income for Q3 2024 totaled $11.9 million, an increase from $10.5 million in Q2 2024, driven by $1.6 million in gains from life insurance and asset sales [3][22]. - Operating expenses were maintained at 35% of total revenues in Q3 2024, with noninterest expenses slightly increasing to $26.3 million from $26.1 million in Q2 2024 [2][3]. Asset Quality - The company recognized no provision for credit losses in Q3 2024, with nonperforming assets stable at $0.9 million and an allowance for credit losses of $15.3 million [2][3]. - The annualized return on average common equity was reported at 13.7% for Q3 2024, down from 14.4% in Q2 2024 [2][5]. Dividends and Shareholder Returns - Shareholders received a dividend of $0.44 per common share during Q3 2024, consistent with the previous quarter [2][5]. - The common dividend payout ratio was reported at 33% for Q3 2024, unchanged from Q2 2024 [5][9]. Deposits and Funding - Total deposits decreased to $5.09 billion in Q3 2024, down 11.0% from $5.72 billion in Q3 2023 [5][17]. - The company’s low-cost deposit base included 48% non-interest bearing checking accounts, with an annualized cost of funding the loan and bond portfolios at 0.37% for Q3 2024 [2][3]. Loan and Investment Portfolio - Total loans decreased to $831.4 million in Q3 2024, down 8.0% from $903.9 million in Q3 2023 [5][14]. - Total investment securities were reported at $4.74 billion, a decrease of 9.7% year-over-year [5][14].

Financial Performance - Total interest and loan fee income for Q2 2024 was $69,072,000, a decrease of 2% from $70,489,000 in Q2 2023[11]. - Net income for Q2 2024 was $35,462,000, down 12% from $40,248,000 in Q2 2023[11]. - Basic earnings per share for Q2 2024 were $1.33, compared to $1.51 in Q2 2023, reflecting a decrease of 12%[11]. - Total noninterest income for Q2 2024 was $10,500,000, slightly down from $10,700,000 in Q2 2023[11]. - Total noninterest expense increased to $26,130,000 in Q2 2024, up from $25,839,000 in Q2 2023, representing a rise of 1%[11]. - The provision for income taxes in Q2 2024 was $12,673,000, compared to $14,495,000 in Q2 2023, indicating a decrease of 13%[11]. - The company reported a total comprehensive income of $35,019,000 for Q2 2024, compared to $19,778,000 in Q2 2023[12]. - Net income for the period ending June 30, 2024, was $35,462 thousand, compared to $40,248 thousand for the same period in 2023, reflecting a decrease of approximately 12.5%[14]. - Net income for 2024 was $71,879,000, a decrease of 11% from $80,699,000 in 2023[17]. Shareholder Information - Dividends paid per share increased to $0.44 in Q2 2024 from $0.42 in Q2 2023, reflecting a growth of 5%[11]. - The company declared dividends of $0.44 per share for the second quarter of 2024, totaling $11,739 thousand, compared to $0.42 per share totaling $11,192 thousand in the same quarter of 2023[14]. - Average common shares outstanding for Q2 2024 were 26,680,000, slightly up from 26,648,000 in Q2 2023[11]. Asset and Liability Management - Cash and due from banks at the end of the period was $486,124 thousand, significantly up from $266,187 thousand at the end of the previous year[17]. - Total shareholders' equity increased to $815,600 thousand as of June 30, 2024, up from $772,894 thousand at the end of December 2023, representing a growth of about 5.5%[14]. - The total outstanding loans as of June 30, 2024, were $831,842 thousand, a decrease from $866,602 thousand as of December 31, 2023[54]. - Total deposits amounted to $5,131,440 thousand, a decrease from $5,474,267 thousand as of December 31, 2023, representing a decline of approximately 6.25%[92]. Credit Losses and Provisions - Total allowance for credit losses increased to $15,952,000, with a provision of $148,000 for the three months ended June 30, 2024[55]. - The balance at the beginning of the period for commercial credit losses was $3,765,000, while residential real estate was $5,758,000[55]. - Charge-offs for the period amounted to $(1,513,000), with recoveries of $1,471,000, resulting in a net charge-off of $(42,000)[55]. - The total allowance for credit losses for the six months ended June 30, 2023, was $18,480,000, with a reversal provision of $(1,550,000)[58]. - The company maintains an allowance for credit losses at a level considered adequate to provide for expected losses based on historical loss rates adjusted for current and expected conditions[31]. Debt Securities and Investments - Total debt securities available for sale amounted to $3,979,429,000 with unrealized losses of $280,940,000, resulting in a fair value of $3,699,318,000[41]. - The total amortized cost of debt securities held to maturity was $860,869,000, with a fair value of $817,071,000, reflecting unrealized losses of $43,822,000[41]. - The company evaluates available for sale debt securities for credit-related losses at least quarterly, recording an allowance for credit losses when fair value declines below amortized cost[25]. - The company does not intend to sell any debt securities available for sale with material unrealized losses[47]. - The company monitors interest rate changes and credit ratings, noting that unrealized losses were primarily due to higher risk-free interest rates affecting bond values[46]. Loan Portfolio Management - The company maintains a Loan Review Department that performs continuous evaluations of loans throughout the year[58]. - The total loans categorized as current and accruing amounted to $823,972,000, with an additional $4,758,000 in loans 30-59 days past due[60]. - The company reported no loan modifications made to borrowers experiencing financial difficulty during the six months ended June 30, 2024[61]. - The total credit risk profile showed a total of $805,379,000 in pass grade loans, with $25,128,000 classified as substandard[59]. - The company has no debt securities held to maturity on nonaccrual status or past due 30 days or more as of June 30, 2024[52]. Economic and Regulatory Environment - The Company anticipates that various factors, including economic conditions and regulatory changes, could impact future financial performance[6]. - The Company is currently evaluating the impact of FASB ASU 2023-09 on its consolidated financial statements, which enhances income tax disclosures[39]. - The Company adopted FASB ASU 2020-04 regarding reference rate reform, which did not have a material impact on its consolidated financial statements[37]. Miscellaneous - The carrying value of goodwill remained unchanged at $121,673 thousand as of June 30, 2024, with no impairment recognized during the reporting periods[89]. - The Company had access to borrowing from the Federal Reserve up to $867,510 thousand based on collateral pledged as of June 30, 2024[93]. - The Company did not exchange any Visa Class B-1 shares during the exchange offer that expired on May 3, 2024, maintaining a carrying value of $0 for these shares[85].

On July 18, 2024, Westamerica reported $35.5 million in net income for the three months ended June 30, 2024, or $1.33 diluted earnings per common share. The following appears in accordance with the Private Securities Litigation Reform Act of 1995: Westamerica Bancorporation Web Address: www.westamerica.com SAN RAFAEL, Calif., July 25, 2024 (GLOBE NEWSWIRE) -- The Board of Directors of Westamerica Bancorporation (NASDAQ: WABC) today declared a quarterly cash dividend of $0.44 per share on common stock outsta ...

SAN RAFAEL, Calif., July 25, 2024 (GLOBE NEWSWIRE) -- The Board of Directors of Westamerica Bancorporation (NASDAQ: WABC) today declared a quarterly cash dividend of $0.44 per share on common stock outstanding to shareholders of record at the close of business August 5, 2024. The dividend is payable August 16, 2024. Westamerica Bancorporation, through its wholly owned subsidiary, Westamerica Bank, operates banking and trust offices throughout Northern and Central California. FORWARD-LOOKING INFORMATION: For ...

Core Viewpoint - Westamerica Bank reported quarterly earnings of $1.33 per share, surpassing the Zacks Consensus Estimate of $1.32, but down from $1.51 per share a year ago [8]. Financial Performance - The company posted revenues of $74.27 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 0.02% and down from $80.58 million year-over-year [2]. - The current consensus EPS estimate for the upcoming quarter is $1.30 on revenues of $73.5 million, and for the current fiscal year, it is $5.25 on revenues of $295.81 million [5]. Stock Performance - Westamerica shares have increased approximately 1.8% since the beginning of the year, while the S&P 500 has gained 17.2% [3]. - The stock has underperformed the market so far this year, leading to questions about its future performance [4]. Earnings Estimate Revisions - The trend for earnings estimate revisions for Westamerica is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [12]. - Over the last four quarters, the company has surpassed consensus EPS estimates two times [9]. Industry Context - The Zacks Industry Rank for Banks - West places it in the bottom 36% of over 250 Zacks industries, suggesting that the outlook for the industry can significantly impact stock performance [13].

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Q2 2024 Performance Overview](index=1&type=section&id=Q2%202024%20Performance%20Overview) Westamerica Bancorporation reported net income of $35.5 million and diluted EPS of $1.33 for Q2 2024, a slight decrease from Q1 2024, while maintaining low-cost operating principles with a 0.35% annualized cost of funding and an efficiency ratio of 35% Q2 2024 Key Financial Highlights (vs. Q1 2024) | Metric | Q2 2024 | Q1 2024 | Change | | :-------------------------------- | :------ | :------ | :----- | | Net Income | $35.5 million | $36.4 million | -2.5% | | Diluted EPS | $1.33 | $1.37 | -2.9% | | Annualized Cost of Funding | 0.35% | 0.20% | +0.15 pp | | Efficiency Ratio | 35% | 34.3% | +0.7 pp | | Return on Average Common Equity (annualized) | 14.4% | 15.2% | -0.8 pp | | Dividends Paid Per Common Share | $0.44 | $0.44 | 0.0% | - No provision for credit losses was recognized in Q2 2024, benefiting from **$73 thousand** of net loan recoveries and low nonperforming loans (**$1.6 million** at June 30, 2024)[2](index=2&type=chunk)[4](index=4&type=chunk) - Noninterest income increased to **$10.5 million** in Q2 2024 from **$10.1 million** in Q1 2024, driven by higher merchant processing and debit card fees[4](index=4&type=chunk) [Forward-Looking Information](index=1&type=section&id=Forward-Looking%20Information) [Nature and Risks of Forward-Looking Statements](index=1&type=section&id=Nature%20and%20Risks%20of%20Forward-Looking%20Statements) This section clarifies that the press release may contain forward-looking statements, identifiable by specific terminology, which are inherently subject to risks and uncertainties, and the company does not commit to updating these statements - Forward-looking statements are identified by words like 'believe,' 'expect,' 'anticipate,' 'intend,' 'plan,' 'estimate,' or future/conditional verbs[6](index=6&type=chunk) - Risks and uncertainties, including credit, interest rate, operational, liquidity, and market risks, as well as changes in business conditions, competition, and regulations, could cause actual results to differ from forward-looking statements[7](index=7&type=chunk) - The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after their creation[8](index=8&type=chunk) [Financial Highlights](index=2&type=section&id=FINANCIAL%20HIGHLIGHTS) [1. Net Income Summary](index=2&type=section&id=1.%20Net%20Income%20Summary) Westamerica Bancorporation's net income for Q2 2024 was **$35.46 million**, an 11.9% decrease YoY and 2.6% decrease QoQ, with diluted EPS following a similar trend and year-to-date net income also declining by 10.9% Net Income Summary (QoQ and YoY) | Metric | Q2'2024 (in thousands) | Q2'2023 (in thousands) | % Change (YoY) | Q1'2024 (in thousands) | % Change (QoQ) | | :-------------------------------- | :------ | :------ | :------------- | :------ | :------------- | | Net Interest and Loan Fee Income (FTE) | $64,100 | $70,281 | -8.8% | $66,094 | -3.0% | | Provision for Credit Losses | - | - | n/m | $300 | n/m | | Noninterest Income | $10,500 | $10,700 | -1.9% | $10,097 | 4.0% | | Noninterest Expense | $26,130 | $25,839 | 1.1% | $26,099 | 0.1% | | Net Income | $35,462 | $40,248 | -11.9% | $36,417 | -2.6% | | Diluted EPS | $1.33 | $1.51 | -11.9% | $1.37 | -2.9% | | Return On Assets (a) | 2.18% | 2.35% | -0.17 pp | 2.24% | -0.06 pp | | Return On Common Equity (a) | 14.4% | 18.4% | -4.0 pp | 15.2% | -0.8 pp | | Net Interest Margin (FTE) (a) | 4.15% | 4.34% | -0.19 pp | 4.30% | -0.15 pp | | Efficiency Ratio (FTE) | 35.0% | 31.9% | +3.1 pp | 34.3% | +0.7 pp | | Dividends Paid Per Common Share | $0.44 | $0.42 | 4.8% | $0.44 | 0.0% | Net Income Summary (YTD) | Metric | 6/30'24 YTD (in thousands) | 6/30'23 YTD (in thousands) | % Change | | :-------------------------------- | :---------- | :---------- | :------- | | Net Interest and Loan Fee Income (FTE) | $130,194 | $139,843 | -6.9% | | Provision (Reversal of Provision) for Credit Losses | $300 | ($1,550) | n/m | | Noninterest Income | $20,597 | $21,249 | -3.1% | | Noninterest Expense | $52,229 | $52,049 | 0.3% | | Net Income | $71,879 | $80,699 | -10.9% | | Diluted EPS | $2.69 | $3.02 | -10.9% | | Return On Assets (a) | 2.21% | 2.33% | -0.12 pp | | Return On Common Equity (a) | 14.8% | 18.7% | -3.9 pp | | Net Interest Margin (FTE) (a) | 4.23% | 4.26% | -0.03 pp | | Efficiency Ratio (FTE) | 34.6% | 32.3% | +2.3 pp | | Dividends Paid Per Common Share | $0.88 | $0.84 | 4.8% | [2. Net Interest and Loan Fee Income (FTE)](index=3&type=section&id=2.%20Net%20Interest%20and%20Loan%20Fee%20Income%20(FTE)) Net interest and loan fee income (FTE) decreased by 8.8% YoY and 3.0% QoQ in Q2 2024, primarily due to a significant increase in interest expense, which led to a decline in net interest margin despite a stable yield on earning assets Net Interest and Loan Fee Income (FTE) - Quarterly | Metric | Q2'2024 (in thousands) | Q2'2023 (in thousands) | % Change (YoY) | Q1'2024 (in thousands) | % Change (QoQ) | | :-------------------------------- | :------ | :------ | :------------- | :------ | :------------- | | Interest and Loan Fee Income (FTE) | $69,407 | $70,888 | -2.1% | $69,095 | 0.45% | | Interest Expense | $5,307 | $607 | 774.3% | $3,001 | 76.8% | | Net Interest and Loan Fee Income (FTE) | $64,100 | $70,281 | -8.8% | $66,094 | -3.0% | | Average Earning Assets | $6,145,626 | $6,457,270 | -4.8% | $6,119,368 | 0.43% | | Yield on Earning Assets (FTE) (a) | 4.50% | 4.38% | +0.12 pp | 4.50% | 0.00 pp | | Cost of Funds (a) | 0.35% | 0.04% | +0.31 pp | 0.20% | +0.15 pp | | Net Interest Margin (FTE) (a) | 4.15% | 4.34% | -0.19 pp | 4.30% | -0.15 pp | Net Interest and Loan Fee Income (FTE) - YTD | Metric | 6/30'24 YTD (in thousands) | 6/30'23 YTD (in thousands) | % Change | | :-------------------------------- | :---------- | :---------- | :------- | | Interest and Loan Fee Income (FTE) | $138,502 | $140,921 | -1.7% | | Interest Expense | $8,308 | $1,078 | 670.7% | | Net Interest and Loan Fee Income (FTE) | $130,194 | $139,843 | -6.9% | | Average Earning Assets | $6,132,497 | $6,560,639 | -6.5% | | Yield on Earning Assets (FTE) (a) | 4.50% | 4.29% | +0.21 pp | | Cost of Funds (a) | 0.27% | 0.03% | +0.24 pp | | Net Interest Margin (FTE) (a) | 4.23% | 4.26% | -0.03 pp | [3. Loans & Other Earning Assets](index=4&type=section&id=3.%20Loans%20%26%20Other%20Earning%20Assets) Total earning assets decreased by 4.8% YoY and 0.4% QoQ in Q2 2024, driven by a significant 9.6% YoY decline in total loans, particularly consumer loans, while total interest-bearing cash saw a substantial 120.1% YoY increase Loans & Other Earning Assets - Quarterly Averages | Metric | Q2'2024 (in thousands) | Q2'2023 (in thousands) | % Change (YoY) | Q1'2024 (in thousands) | % Change (QoQ) | | :-------------------------- | :---------- | :---------- | :------------- | :---------- | :------------- | | Total Earning Assets | $6,145,626 | $6,457,270 | -4.8% | $6,119,368 | 0.43% | | Total Loans | $838,016 | $926,795 | -9.6% | $853,553 | -1.8% | | Commercial Loans | $133,605 | $157,975 | -15.4% | $133,422 | 0.1% | | Commercial Real Estate Loans | $487,209 | $491,902 | -1.0% | $488,989 | -0.4% | | Consumer Loans | $217,202 | $276,918 | -21.6% | $231,142 | -6.0% | | Total Investment Securities | $4,944,191 | $5,365,377 | -7.9% | $5,098,539 | -3.0% | | Total Interest-Bearing Cash | $363,419 | $165,098 | 120.1% | $167,276 | 117.2% | | Loans / Deposits | 16.1% | 16.0% | +0.1 pp | 15.9% | +0.2 pp | Loans & Other Earning Assets - YTD Averages | Metric | 6/30'24 YTD (in thousands) | 6/30'23 YTD (in thousands) | % Change | | :-------------------------- | :---------- | :---------- | :------- | | Total Earning Assets | $6,132,497 | $6,560,639 | -6.5% | | Total Loans | $845,785 | $936,277 | -9.7% | | Commercial Loans | $133,514 | $161,647 | -17.4% | | Commercial Real Estate Loans | $488,099 | $492,514 | -0.9% | | Consumer Loans | $224,172 | $282,116 | -20.5% | | Total Investment Securities | $5,021,365 | $5,456,572 | -8.0% | | Total Interest-Bearing Cash | $265,347 | $167,790 | 58.1% | | Loans / Deposits | 16.0% | 15.8% | +0.2 pp | [4. Deposits, Other Interest-Bearing Liabilities & Equity](index=5&type=section&id=4.%20Deposits%2C%20Other%20Interest-Bearing%20Liabilities%20%26%20Equity) Total deposits decreased by 10.3% YoY and 3.3% QoQ in Q2 2024, with noninterest demand deposits declining by 9.7% YoY, while shareholders' equity increased significantly by 12.9% YoY and 2.6% QoQ, and total short-term borrowings rose substantially due to Bank Term Funding Program borrowings Deposits, Other Interest-Bearing Liabilities & Equity - Quarterly Averages | Metric | Q2'2024 (in thousands) | Q2'2023 (in thousands) | % Change (YoY) | Q1'2024 (in thousands) | % Change (QoQ) | | :-------------------------------- | :---------- | :---------- | :------------- | :---------- | :------------- | | Total Deposits | $5,202,620 | $5,797,504 | -10.3% | $5,379,060 | -3.3% | | Noninterest Demand | $2,485,023 | $2,751,319 | -9.7% | $2,532,381 | -1.9% | | Interest-Bearing Transaction | $981,703 | $1,159,653 | -15.3% | $1,058,292 | -7.2% | | Savings | $1,642,806 | $1,763,410 | -6.8% | $1,691,716 | -2.9% | | Time greater than $100K | $34,721 | $53,901 | -35.6% | $36,135 | -3.9% | | Time less than $100K | $58,367 | $69,221 | -15.7% | $60,536 | -3.6% | | Total Short-Term Borrowings | $284,189 | $98,079 | 189.7% | $108,886 | 160.9% | | Bank Term Funding Program Borrowings | $200,000 | - | n/m | $62,582 | 219.6% | | Shareholders' Equity | $990,927 | $877,964 | 12.9% | $965,840 | 2.6% | | Demand Deposits / Total Deposits | 47.8% | 47.5% | +0.3 pp | 47.1% | +0.7 pp | Deposits, Other Interest-Bearing Liabilities & Equity - YTD Averages | Metric | 6/30'24 YTD (in thousands) | 6/30'23 YTD (in thousands) | % Change | | :-------------------------------- | :---------- | :---------- | :------- | | Total Deposits | $5,290,840 | $5,928,983 | -10.8% | | Noninterest Demand | $2,508,702 | $2,801,183 | -10.4% | | Interest-Bearing Transaction | $1,019,998 | $1,196,342 | -14.7% | | Savings | $1,667,261 | $1,805,187 | -7.6% | | Time greater than $100K | $35,427 | $55,755 | -36.5% | | Time less than $100K | $59,452 | $70,516 | -15.7% | | Total Short-Term Borrowings | $196,538 | $87,516 | 124.6% | | Bank Term Funding Program Borrowings | $131,291 | - | n/m | | Shareholders' Equity | $978,384 | $868,272 | 12.7% | | Demand Deposits / Total Deposits | 47.4% | 47.2% | +0.2 pp | [5. Interest Yields Earned & Rates Paid](index=6&type=section&id=5.%20Interest%20Yields%20Earned%20%26%20Rates%20Paid) In Q2 2024, the yield on total earning assets (FTE) increased to 4.50% YoY, but the cost of funds significantly rose to 0.35% from 0.04% YoY, impacting the net interest margin, and the interest expense on total interest-bearing liabilities sharply increased to 0.71% Interest Yields Earned & Rates Paid - Q2 2024 vs Q2 2023 | Metric | Q2'2024 Yield (a) / Rate (a) | Q2'2023 Yield (a) / Rate (a) | Change (pp) | | :-------------------------------- | :--------------------------- | :--------------------------- | :---------- | | Total Earning Assets (FTE) Yield | 4.50% | 4.38% | +0.12 | | Total Loans (FTE) Yield | 5.49% | 5.17% | +0.32 | | Total Investments (FTE) Yield | 4.27% | 4.22% | +0.05 | | Total Interest-Bearing Liabilities Rate | 0.71% | 0.08% | +0.63 | | Total Interest-Bearing Deposits Rate | 0.36% | 0.08% | +0.28 | | Total Short-Term Borrowings Rate | 4.02% | 0.10% | +3.92 | | Bank Term Funding Program Borrowings Rate | 5.40% | - | n/m | | Net Interest Margin (FTE) | 4.15% | 4.34% | -0.19 | [6. Noninterest Income](index=8&type=section&id=6.%20Noninterest%20Income) Total noninterest income for Q2 2024 was **$10.5 million**, a slight decrease of 1.9% YoY but an increase of 4.0% QoQ, primarily driven by higher merchant processing services and debit card fees, while year-to-date noninterest income decreased by 3.1% YoY Noninterest Income - Quarterly | Metric | Q2'2024 (in thousands) | Q2'2023 (in thousands) | % Change (YoY) | Q1'2024 (in thousands) | % Change (QoQ) | | :-------------------------- | :------ | :------ | :------------- | :------ | :------------- | | Service Charges on Deposit Accounts | $3,469 | $3,459 | 0.3% | $3,470 | 0.0% | | Merchant Processing Services | $2,733 | $2,869 | -4.7% | $2,507 | 9.0% | | Debit Card Fees | $1,706 | $1,759 | -3.0% | $1,543 | 10.6% | | Trust Fees | $811 | $810 | 0.1% | $794 | 2.1% | | ATM Processing Fees | $540 | $702 | -23.1% | $591 | -8.7% | | Other Noninterest Income | $791 | $768 | 3.0% | $754 | 4.9% | | Total Noninterest Income | $10,500 | $10,700 | -1.9% | $10,097 | 4.0% | Noninterest Income - YTD | Metric | 6/30'24 YTD (in thousands) | 6/30'23 YTD (in thousands) | % Change | | :-------------------------- | :---------- | :---------- | :------- | | Service Charges on Deposit Accounts | $6,939 | $6,924 | 0.2% | | Merchant Processing Services | $5,240 | $5,506 | -4.8% | | Debit Card Fees | $3,249 | $3,401 | -4.5% | | Trust Fees | $1,605 | $1,575 | 1.9% | | ATM Processing Fees | $1,131 | $1,356 | -16.6% | | Other Noninterest Income | $1,545 | $1,755 | -12.0% | | Total Noninterest Income | $20,597 | $21,249 | -3.1% | [7. Noninterest Expense](index=9&type=section&id=7.%20Noninterest%20Expense) Total noninterest expense remained relatively stable at **$26.13 million** in Q2 2024, a 1.1% increase YoY and 0.1% increase QoQ, with salaries and related benefits rising by 5.5% YoY, while the efficiency ratio (FTE) increased to 35.0% Noninterest Expense - Quarterly | Metric | Q2'2024 (in thousands) | Q2'2023 (in thousands) | % Change (YoY) | Q1'2024 (in thousands) | % Change (QoQ) | | :-------------------------- | :------ | :------ | :------------- | :------ | :------------- | | Salaries and Related Benefits | $12,483 | $11,828 | 5.5% | $12,586 | -0.8% | | Occupancy and Equipment | $5,158 | $5,012 | 2.9% | $5,040 | 2.3% | | Outsourced Data Processing | $2,511 | $2,488 | 0.9% | $2,536 | -1.0% | | Professional Fees | $362 | $485 | -25.4% | $402 | -9.9% | | Courier Service | $686 | $611 | 12.3% | $649 | 5.7% | | Other Noninterest Expense | $3,490 | $3,975 | -12.2% | $3,446 | 1.3% | | Total Noninterest Expense | $26,130 | $25,839 | 1.1% | $26,099 | 0.1% | | Noninterest Expense / Revenues (FTE) | 35.0% | 31.9% | +3.1 pp | 34.3% | +0.7 pp | Noninterest Expense - YTD | Metric | 6/30'24 YTD (in thousands) | 6/30'23 YTD (in thousands) | % Change | | :-------------------------- | :---------- | :---------- | :------- | | Salaries and Related Benefits | $25,069 | $23,895 | 4.9% | | Occupancy and Equipment | $10,198 | $10,497 | -2.8% | | Outsourced Data Processing | $5,047 | $4,932 | 2.3% | | Professional Fees | $764 | $961 | -20.5% | | Courier Service | $1,335 | $1,226 | 8.9% | | Other Noninterest Expense | $6,936 | $7,664 | -9.5% | | Total Noninterest Expense | $52,229 | $52,049 | 0.3% | | Noninterest Expense / Revenues (FTE) | 34.6% | 32.3% | +2.3 pp | [8. Allowance for Credit Losses](index=9&type=section&id=8.%20Allowance%20for%20Credit%20Losses) The Allowance for Credit Losses on Loans (ACLL) at the end of Q2 2024 was **$15.95 million**, a 13.7% decrease YoY but a slight increase from **$15.88 million** QoQ, with no provision for credit losses recorded in Q2 2024 due to net loan recoveries Allowance for Credit Losses on Loans (ACLL) - Quarterly | Metric | Q2'2024 (in thousands) | Q2'2023 (in thousands) | % Change (YoY) | Q1'2024 (in thousands) | % Change (QoQ) | | :-------------------------------- | :------ | :------ | :------------- | :------ | :------------- | | Beginning of Period ACLL | $15,879 | $19,509 | -18.6% | $16,867 | -5.9% | | Provision for Credit Losses | - | - | n/m | $300 | n/m | | Net ACLL Recoveries (Losses) | $73 | ($1,029) | -107.1% | ($1,288) | -105.7% | | End of Period ACLL | $15,952 | $18,480 | -13.7% | $15,879 | 0.5% | | Gross ACLL Recoveries / Gross ACLL Losses | 105% | 38% | +67 pp | 36% | +69 pp | Allowance for Credit Losses on Loans (ACLL) - YTD | Metric | 6/30'24 YTD (in thousands) | 6/30'23 YTD (in thousands) | % Change | | :-------------------------------- | :---------- | :---------- | :------- | | Beginning of Period ACLL | $16,867 | $20,284 | -16.8% | | Provision (Reversal of Provision) for Credit Losses | $300 | ($1,550) | n/m | | Net ACLL Losses | ($1,215) | ($254) | 378.3% | | End of Period ACLL | $15,952 | $18,480 | -13.7% | | Gross ACLL Recoveries / Gross ACLL Losses | 66% | 93% | -27 pp | Total Allowance for Credit Losses - Period End | Metric | 6/30/24 (in thousands) | 6/30/23 (in thousands) | % Change (YoY) | 3/31/24 (in thousands) | % Change (QoQ) | | :-------------------------------- | :------ | :------ | :------------- | :------ | :------------- | | Allowance for Credit Losses on Loans | $15,952 | $18,480 | -13.7% | $15,879 | 0.5% | | Allowance for Credit Losses on Held to Maturity Securities | $1 | $1 | 0.0% | $1 | 0.0% | | Total Allowance for Credit Losses | $15,953 | $18,481 | -13.7% | $15,880 | 0.5% | [9. Credit Quality](index=10&type=section&id=9.%20Credit%20Quality) Total nonperforming loans increased significantly by 81.8% YoY and 4.6% QoQ to **$1.55 million** at June 30, 2024, primarily driven by a substantial increase in nonperforming nonaccrual loans, though the ratio of nonperforming loans to total loans remained low at **0.19%** Credit Quality - Period End | Metric | 6/30/24 (in thousands) | 6/30/23 (in thousands) | % Change (YoY) | 3/31/24 (in thousands) | % Change (QoQ) | | :-------------------------------- | :------ | :------ | :------------- | :------ | :------------- | | Nonperforming Nonaccrual Loans | $971 | $192 | 405.7% | $957 | 1.5% | | Accruing Loans 90+ Days Past Due | $580 | $656 | -11.6% | $525 | 10.5% | | Total Nonperforming Loans | $1,551 | $853 | 81.8% | $1,483 | 4.6% | | Total Loans Outstanding | $831,842 | $919,583 | -9.5% | $844,677 | -1.5% | | Allowance for Credit Losses on Loans / Loans | 1.92% | 2.01% | -0.09 pp | 1.88% | +0.04 pp | | Nonperforming Loans / Total Loans | 0.19% | 0.09% | +0.10 pp | 0.18% | +0.01 pp | [10. Liquidity](index=11&type=section&id=10.%20Liquidity) At June 30, 2024, Westamerica Bancorporation maintained strong liquidity with **$486.12 million** in cash balances and **$1.46 billion** in estimated unpledged debt securities, with expected principal payments of **$309 million** and access to **$867.51 million** in Federal Reserve borrowing - Cash balances stood at **$486.124 million** at June 30, 2024[30](index=30&type=chunk) - The Company expects **$309 million** in principal payments from debt securities during the twelve months ending June 30, 2025[30](index=30&type=chunk) Debt Securities Eligible and Pledged as Collateral (June 30, 2024) | Category | Amount (in thousands) | | :-------------------------------- | :-------------------- | | Total Debt Securities Eligible as Collateral | $3,693,459 | | Total Debt Securities Pledged as Collateral | ($2,230,493) | | Estimated Debt Securities Available to Pledge | $1,462,966 | - Access to borrowing from the Federal Reserve was up to **$867.510 million** at June 30, 2024, based on collateral pledged[30](index=30&type=chunk) [11. Capital](index=12&type=section&id=11.%20Capital) Shareholders' equity increased significantly by 25.1% YoY to **$815.60 million** at June 30, 2024, and 3.0% QoQ, leading to improved capital ratios, including Shareholders' Equity/Total Assets rising to **12.92%** and Tangible Common Equity Ratio to **11.21%** Capital Ratios - Period End | Metric | 6/30/24 (in thousands) | 6/30/23 (in thousands) | % Change (YoY) | 3/31/24 (in thousands) | % Change (QoQ) | | :-------------------------------- | :------ | :------ | :------------- | :------ | :------------- | | Shareholders' Equity | $815,600 | $651,862 | 25.1% | $791,691 | 3.0% | | Total Assets | $6,312,145 | $6,582,740 | -4.1% | $6,464,685 | -2.3% | | Shareholders' Equity/Total Assets | 12.92% | 9.90% | +3.02 pp | 12.25% | +0.67 pp | | Shareholders' Equity/Total Loans | 98.05% | 70.89% | +27.16 pp | 93.73% | +4.32 pp | | Tangible Common Equity Ratio | 11.21% | 8.20% | +3.01 pp | 10.56% | +0.65 pp | | Common Equity Per Share | $30.57 | $24.46 | 25.0% | $29.68 | 3.0% | Share Repurchase Programs - Quarterly and YTD | Metric | Q2'2024 | Q1'2024 | 6/30'24 YTD | 6/30'23 YTD | | :-------------------------------- | :------ | :------ | :---------- | :---------- | | Total Shares Repurchased / Canceled | - | 4 | 4 | 274 | | Average Repurchase Price | - | $45.58 | $45.58 | $50.11 | [12. Period-End Balance Sheets](index=13&type=section&id=12.%20Period-End%20Balance%20Sheets) Total assets decreased by 4.1% YoY and 2.3% QoQ to **$6.31 billion** at June 30, 2024, while cash and due from banks increased significantly by **82.6%** YoY, and total short-term borrowed funds rose by **117.5%** YoY, primarily due to Bank Term Funding Program borrowings Period-End Balance Sheet - Assets | Asset Category | 6/30/24 (in thousands) | 6/30/23 (in thousands) | % Change (YoY) | 3/31/24 (in thousands) | % Change (QoQ) | | :-------------------------------- | :---------- | :---------- | :------------- | :---------- | :------------- | | Cash and Due from Banks | $486,124 | $266,187 | 82.6% | $434,250 | 11.9% | | Total Debt Securities Available for Sale | $3,699,318 | $4,046,458 | -8.6% | $3,889,177 | -4.9% | | Total Debt Securities Held to Maturity | $860,868 | $900,356 | -4.4% | $868,725 | -0.9% | | Total Loans, net | $815,890 | $901,103 | -9.5% | $828,798 | -1.6% | | Total Assets | $6,312,145 | $6,582,740 | -4.1% | $6,464,685 | -2.3% | Period-End Balance Sheet - Liabilities and Shareholders' Equity | Liability/Equity Category | 6/30/24 (in thousands) | 6/30/23 (in thousands) | % Change (YoY) | 3/31/24 (in thousands) | % Change (QoQ) | | :-------------------------------- | :---------- | :---------- | :------------- | :---------- | :------------- | | Total Deposits | $5,131,440 | $5,705,927 | -10.1% | $5,354,925 | -4.2% | | Noninterest-Bearing Deposits | $2,459,467 | $2,721,046 | -9.6% | $2,514,161 | -2.2% | | Interest-Bearing Transaction Deposits | $936,186 | $1,133,006 | -17.4% | $1,066,038 | -12.2% | | Total Short-Term Borrowed Funds | $300,167 | $138,005 | 117.5% | $250,334 | 19.9% | | Bank Term Funding Program Borrowings | $200,000 | - | n/m | $200,000 | 0.0% | | Total Liabilities | $5,496,545 | $5,930,878 | -7.3% | $5,672,994 | -3.1% | | Total Shareholders' Equity | $815,600 | $651,862 | 25.1% | $791,691 | 3.0% | [13. Income Statements](index=14&type=section&id=13.%20Income%20Statements) Net income for Q2 2024 was **$35.46 million**, down 11.9% YoY and 2.6% QoQ, as total interest expense surged by **774.3%** YoY due to increased costs on savings deposits and Bank Term Funding Program borrowings, despite stable noninterest expenses Income Statement - Quarterly | Metric | Q2'2024 (in thousands) | Q2'2023 (in thousands) | % Change (YoY) | Q1'2024 (in thousands) | % Change (QoQ) | | :-------------------------------- | :------ | :------ | :------------- | :------ | :------------- | | Total Interest and Loan Fee Income | $69,072 | $70,489 | -2.0% | $68,746 | 0.5% | | Total Interest Expense | $5,307 | $607 | 774.3% | $3,001 | 76.8% | | Net Interest and Loan Fee Income | $63,765 | $69,882 | -8.8% | $65,745 | -3.0% | | Provision for Credit Losses | - | - | n/m | $300 | n/m | | Total Noninterest Income | $10,500 | $10,700 | -1.9% | $10,097 | 4.0% | | Total Noninterest Expense | $26,130 | $25,839 | 1.1% | $26,099 | 0.1% | | Income Before Income Taxes | $48,135 | $54,743 | -12.1% | $49,443 | -2.6% | | Income Tax Provision | $12,673 | $14,495 | -12.6% | $13,026 | -2.7% | | Net Income | $35,462 | $40,248 | -11.9% | $36,417 | -2.6% | | Diluted Earnings Per Share | $1.33 | $1.51 | -11.9% | $1.37 | -2.9% | | Dividends Paid Per Share | $0.44 | $0.42 | 4.8% | $0.44 | 0.0% | Income Statement - YTD | Metric | 6/30'24 YTD (in thousands) | 6/30'23 YTD (in thousands) | % Change | | :-------------------------------- | :---------- | :---------- | :------- | | Total Interest and Loan Fee Income | $137,818 | $140,113 | -1.6% | | Total Interest Expense | $8,308 | $1,078 | 670.7% | | Net Interest and Loan Fee Income | $129,510 | $139,035 | -6.9% | | Provision (Reversal of Provision) for Credit Losses | $300 | ($1,550) | n/m | | Total Noninterest Income | $20,597 | $21,249 | -3.1% | | Total Noninterest Expense | $52,229 | $52,049 | 0.3% | | Income Before Income Taxes | $97,578 | $109,785 | -11.1% | | Income Tax Provision | $25,699 | $29,086 | -11.6% | | Net Income | $71,879 | $80,699 | -10.9% | | Diluted Earnings Per Share | $2.69 | $3.02 | -10.9% | | Dividends Paid Per Share | $0.88 | $0.84 | 4.8% |

"Westamerica's second quarter 2024 results benefited from the Company's low-cost operating principles. The annualized cost of funding our interest-earning loans, bonds and cash was 0.35 percent for the second quarter 2024. The Company recognized no provision for credit losses due to $73 thousand of net loan recoveries in the second quarter 2024 and $1.6 million in nonperforming loans at June 30, 2024, while the allowance for credit losses on loans was $16.0 million at June 30, 2024. Westamerica operated eff ...

Core Insights - Westamerica Bancorporation reported a net income of $35.5 million for Q2 2024, with diluted earnings per share (EPS) of $1.33, compared to $36.4 million and EPS of $1.37 in Q1 2024 [3][20] - The company maintained a low cost of funding at 0.35% for Q2 2024, which contributed to an annualized return on average common equity of 14.4% [1][21] - The allowance for credit losses on loans was $16.0 million as of June 30, 2024, with no provision for credit losses recognized in Q2 2024 [2][34] Financial Performance - Net interest income on a fully-taxable equivalent (FTE) basis was $64.1 million for Q2 2024, down from $66.1 million in Q1 2024 [4][20] - Noninterest income increased to $10.5 million in Q2 2024 from $10.1 million in Q1 2024, driven by higher merchant processing and debit card fees [5][27] - Total loans decreased by 9.6% year-over-year to $838.0 million as of June 30, 2024, with significant declines in commercial and consumer loans [10][23] Operational Efficiency - The company operated efficiently, spending 35% of its revenue on operating costs in Q2 2024 [1][17] - Noninterest expenses were reported at $26.1 million for Q2 2024, consistent with Q1 2024 [17][30] - The efficiency ratio improved to 35.0% in Q2 2024 from 34.3% in Q1 2024, indicating better cost management [20][21] Asset Quality - Nonperforming loans totaled $1.6 million as of June 30, 2024, with a nonperforming loans to total loans ratio of 0.19% [34] - The allowance for credit losses on loans decreased by 13.7% year-over-year, reflecting improved credit quality [33][34] Dividends and Shareholder Returns - The company declared a dividend of $0.44 per common share during Q2 2024, an increase of 4.8% from the previous quarter [1][20] - The common dividend payout ratio was 33% for Q2 2024, up from 28% in Q1 2024 [20][21]