"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]

Core Viewpoint - The upcoming earnings report for Westamerica is critical, with expectations that the stock may rise if key numbers exceed forecasts, while a miss could lead to a decline [1]. Revenue and Earnings Estimates - Revenues for Westamerica are projected to be $74.28 million, reflecting a year-over-year decrease of 7.8% [2]. - The consensus EPS estimate for the quarter has been revised down by 0.76% over the last 30 days, indicating a reassessment by analysts [2]. - The expected quarterly earnings per share (EPS) is $1.32, which represents a year-over-year decline of 12.6% [11]. Earnings Surprise Prediction - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, suggesting that recent analyst revisions may provide more accurate predictions [3]. - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [4]. - Westamerica currently holds a Zacks Rank of 4, indicating a less favorable outlook [5]. Historical Performance - In the last reported quarter, Westamerica was expected to post earnings of $1.39 per share but delivered $1.37, resulting in a surprise of -1.44% [6]. - Over the past four quarters, the company has only beaten consensus EPS estimates once [18]. Market Expectations and Influencing Factors - The market anticipates a year-over-year decline in earnings for Westamerica due to lower revenues, making the comparison of actual results to estimates crucial for stock price movement [9]. - The sustainability of any immediate price changes and future earnings expectations will largely depend on management's discussion during the earnings call [10]. - Despite the potential for an earnings beat, other factors may influence stock performance, as some stocks may decline even after a positive earnings report due to investor disappointment [19].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________. Commission file number: 001-09383 WESTAMERICA BANCORPORATION (Exact Name of Registrant as Specified in Its Charter) CALIFORNIA 94-2 ...

SAN RAFAEL, Calif., April 18, 2024 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the first quarter 2024 of $36.4 million and diluted earnings per common share ("EPS") of $1.37. First quarter 2024 results compare to fourth quarter 2023 net income of $39.5 million and EPS of $1.48. "Westamerica's first quarter 2024 results benefited from the Company's valuable low-cost deposit base, of which 47 percent was represented by non-interes ...

Financial Performance - Net income for 2023 was $161.8 million, with diluted earnings per share (EPS) of $6.06, compared to $122.0 million and $4.54 EPS in 2022, and $86.5 million and $3.22 EPS in 2021[140] - Interest and loan fee income increased to $284.0 million in 2023, up from $221.8 million in 2022 and $173.4 million in 2021[135] - Net interest margin (FTE) improved to 4.37% in 2023, compared to 3.17% in 2022 and 2.62% in 2021[135] - Total assets decreased to $6.36 billion in 2023 from $6.95 billion in 2022 and $7.46 billion in 2021[135] - Loans declined to $866.6 million in 2023, down from $958.5 million in 2022 and $1.07 billion in 2021[135] - Deposits decreased to $5.47 billion in 2023, compared to $6.23 billion in 2022 and $6.41 billion in 2021[135] - Return on assets (ROA) increased to 2.35% in 2023, up from 1.65% in 2022 and 1.23% in 2021[135] - Return on common equity (ROE) rose to 18.08% in 2023, compared to 15.21% in 2022 and 11.52% in 2021[135] - Efficiency ratio improved to 31.7% in 2023, down from 37.2% in 2022 and 45.0% in 2021[135] - Net income for 2023 increased by $39.7 million compared to 2022, reaching $161.8 million[147] - Net interest and loan fee income (FTE) increased by $59.9 million in 2023 compared to 2022, driven by higher yield on interest-earning assets and higher average balances of investment debt securities[147][151] - The net interest margin (FTE) improved to 4.37% in 2023, up from 3.17% in 2022 and 2.62% in 2021[151][152] - The yield on earning assets (FTE) increased to 4.43% in 2023, compared to 3.20% in 2022 and 2.65% in 2021[152][155] - The company recorded a $1.2 million reversal of provision for credit losses in 2023, reflecting a $2.2 million recovery on a previously charged-off loan[147] - Noninterest expense in 2023 increased by $3.9 million compared to 2022, primarily due to higher salaries and benefits, occupancy and equipment expenses, and FDIC insurance assessments[147] - The effective tax rate (FTE) was 27.5% in 2023, slightly higher than 27.2% in 2022[147] - Average balances of investment debt securities increased by $31 million in 2023 compared to 2022, contributing to higher net interest income[151] - The company's funding costs were 0.06% in 2023, up from 0.03% in 2022 and 2021[153] - Noninterest-bearing deposits represented 47% of average deposits in both 2023 and 2022, while higher-cost time deposits accounted for 2% in both periods[153] - Total interest-earning assets for 2022 increased to $6,992,696 thousand with a yield of 3.20%, compared to $6,632,632 thousand and a yield of 2.65% in 2021[159][162] - Net interest margin for 2022 improved to 3.17%, up from 2.62% in 2021[159][162] - Total loans for 2022 decreased to $997,964 thousand with a yield of 5.02%, compared to $1,195,135 thousand and a yield of 4.85% in 2021[159][162] - Total interest-bearing deposits for 2022 increased to $3,397,276 thousand with a rate of 0.05%, compared to $3,203,604 thousand and a rate of 0.06% in 2021[159][162] - Total assets for 2022 grew to $7,413,008 thousand, up from $7,039,284 thousand in 2021[159][162] - Shareholders' equity for 2022 increased to $802,489 thousand, compared to $750,669 thousand in 2021[159][162] - The company's investment securities for 2022 totaled $5,303,646 thousand with a yield of 3.13%, up from $4,580,468 thousand and a yield of 2.55% in 2021[159][162] - Noninterest-bearing demand deposits for 2022 increased to $3,018,350 thousand, compared to $2,897,244 thousand in 2021[159][162] - Net interest income for Q1 2023 was $69.153 million, increasing to $71.715 million in Q3 2023 before slightly decreasing to $69.373 million in Q4 2023[432] - Noninterest income showed a steady increase from $10.549 million in Q1 2023 to $11.281 million in Q3 2023, then slightly decreased to $10.992 million in Q4 2023[432] - Net income for Q1 2023 was $40.451 million, peaking at $41.601 million in Q3 2023, and then dropping to $39.468 million in Q4 2023[432] - Basic earnings per common share increased from $1.51 in Q1 2023 to $1.56 in Q3 2023, then decreased to $1.48 in Q4 2023[432] - Dividends paid per common share remained stable at $0.42 in Q1 and Q2 2023, then increased to $0.44 in Q3 and Q4 2023[432] - Interest and loan fee income for Q1 2023 was $69.624 million, peaking at $72.848 million in Q3 2023, and then slightly decreasing to $71.052 million in Q4 2023[432] - Noninterest expense decreased from $26.210 million in Q1 2023 to $25.517 million in Q4 2023[432] - Income before taxes for Q1 2023 was $55.042 million, peaking at $56.946 million in Q3 2023, and then decreasing to $54.848 million in Q4 2023[432] - Price range of common stock in Q1 2023 was $44.04 - $58.34, with a low of $36.85 in Q2 2023 and a high of $57.21 in Q4 2023[432] - Net income for Q1 2022 was $22.616 million, increasing steadily to $39.344 million by Q4 2022[432] Regulatory Compliance and Capital Requirements - The company is subject to the Bank Holding Company Act of 1956 and is regulated by the Federal Reserve Board, which requires maintaining certain levels of capital[28][29] - The company is prohibited from declaring or paying cash dividends that would impose undue pressure on the capital of subsidiary banks[31] - The company's regulatory capital ratios exceeded applicable regulatory minimum capital requirements as of December 31, 2023[43] - The company may elect to use the community bank leverage ratio framework in the future, which requires maintaining a leverage ratio of greater than 9%[44] - The FDIC increased initial base deposit insurance assessment rates by 2 basis points, effective from the first quarterly assessment period of 2023, aiming to restore the DIF reserve ratio to at least 1.35% by September 30, 2028[57] - The Dodd-Frank Act raised the minimum DIF reserve ratio from 1.15% to 1.35%, requiring banks with $10 billion or more in assets to contribute to this increase[55] - The FDIC's Restoration Plan, amended in June 2022, aims to monitor deposit balance trends, potential losses, and other factors affecting the reserve ratio, with semiannual updates and potential adjustments to assessment rates[58] - The Economic Growth, Regulatory Relief, and Consumer Protection Act exempts banks with less than $10 billion in total consolidated assets and less than 5% trading assets/liabilities from the Volcker Rule[63] - The Anti-Money Laundering Act of 2020 (AMLA) introduced a risk-based approach to anti-money laundering compliance, expanded enforcement authority, and established whistleblower incentives and protections[64] - The Company's ability to pay dividends is restricted by federal and California state laws, including FDICIA prohibitions on dividends if the institution would become undercapitalized post-distribution[51][52] - The federal banking agencies require banks to maintain adequate valuation allowances for potential credit losses, with the Company's internal staff continuously reviewing loan quality and reporting to the Board of Directors[49] - The FDIC may terminate deposit insurance if an institution engages in unsafe or unsound practices, violates laws, or is in an unsafe condition, with authority to conduct examinations and enforce actions[59] - The Bank is subject to fair lending requirements and Community Reinvestment Act (CRA) obligations, with proposed rules to modernize CRA regulations released for public comment in May 2022[60] - The Bank Secrecy Act, as amended by the USA PATRIOT Act, mandates financial institutions to report suspicious transactions, verify customer identification, and maintain anti-money laundering programs[62] Risk Management and Credit Exposure - The company may incur losses if required to sell securities in its held-to-maturity portfolio to meet liquidity needs, potentially impairing its financial condition[73] - The market value of government and other debt securities has declined significantly due to interest rate increases, resulting in unrealized losses in the held-to-maturity portfolio[73] - Approximately 59% of the company's loan portfolio is collateralized by real estate, with 25% of loans concentrated in California's Central Valley as of December 31, 2023[81] - The company faces risks from potential declines in California real estate values, which could adversely impact loan collateral and borrower repayment capacity[81] - The company's operations are concentrated in California, making it vulnerable to regional economic conditions, natural disasters, and sector-specific risks such as agriculture and construction[81][82] - The company's financial performance is highly dependent on economic growth, labor markets, and capital market conditions in California and the U.S.[84] - The company may experience increased FDIC deposit insurance premiums and regulatory scrutiny due to industry-wide concerns about liquidity and deposit outflows[76] - The company's ability to pay dividends is limited by regulatory capital levels, earnings prospects, and restrictions on subsidiary dividends[86][88] - The company's financial condition could be adversely affected by changes in federal or state laws, regulations, or fiscal policies, including potential increases in taxes or credit losses[92] - The company faces risks from inflation, Federal Reserve monetary policy, and climate changes, which could impact liquidity and deposit outflows[290] - The company's debt securities are classified into trading, available for sale, or held to maturity categories, with valuation based on fair value and third-party sources[295][296] - Nonmarketable equity securities include Visa Class B common stock and Federal Reserve Bank stock, accounted for under the cost method and reviewed quarterly for impairment[303] - Loans are stated at principal amount outstanding, with interest accrued daily and included in other assets. Loans over 90 days delinquent are placed on nonaccrual status[304] - The company extends loans primarily in Northern and Central California, exposing it to risks such as borrower default and economic conditions[305] - Management estimates expected credit losses over the contractual life of the loan portfolio, requiring significant judgment and a systematic methodology[306] - The allowance for credit losses is maintained at a level considered adequate to cover expected losses based on historical loss rates adjusted for current conditions[307] - Loans are segregated into pools based on common risk characteristics, with historical loss rates adjusted for economic trends and other factors[308] - Collateral-dependent loans are evaluated individually, with credit loss reserves established based on the fair value of collateral[309] - Off-balance sheet credit exposures include letters of credit and unfunded loan commitments, with a separate allowance for credit losses[311] - The company had uncommitted lines of credit totaling $100 million and access to Federal Reserve borrowing up to $996.9 million at December 31, 2023[376] Employee Benefits and Compensation - Employees receive a comprehensive benefits package, including company contributions of up to 6% to qualified retirement plans[25] - The company's stock option plan had 973,000 options outstanding at December 31, 2023, with a weighted average exercise price of $59.50[382] - The company's matching contributions to the Tax Deferred Savings/Retirement Plan (ESOP) were $873 thousand in 2023, down from $921 thousand in 2022 and $972 thousand in 2021[417] - The benefit obligation at the end of 2023 was $1,276 thousand, down from $1,401 thousand in 2022 and $1,527 thousand in 2021[420] - The discount rate used to determine benefit obligations decreased from 5.01% in 2022 to 4.75% in 2023[421] Cybersecurity and Data Protection - The company experienced a potential data compromise in Q2 2023 involving a third-party vendor, affecting a limited number of customers, but no misuse of information was reported as of December 31, 2023[98] - The company maintains a robust cybersecurity program, including regular penetration tests, vulnerability scans, and employee training, with no material cybersecurity incidents reported in 2023[113][117][119] - The company's cybersecurity program is overseen by an Information Security Officer (ISO) with multiple certifications, reporting quarterly to the Board of Directors[113] Market and Competitive Environment - The company's strategic focus is on the banking needs of small businesses[16] - The company acquired five banks within its immediate market area during the early to mid-1990s and three additional banks between 2000 and 2005[19][20] - The company acquired the banking operations of two failed banks in 2009 and 2010, with assets and liabilities measured at estimated fair values[21] - The company faces intense competition in financial services, particularly in California, from both traditional and non-traditional providers, including fintech lenders[110] - The company's loan portfolio includes real estate-secured loans, with environmental liability risks from potential hazardous substances on foreclosed properties[112] Environmental and Social Responsibility - The company has $18 million in loans to agricultural borrowers, with ongoing monitoring of water access and crop yield sustainability[104] - The company's principal IT vendor aims to achieve 100% carbon neutrality for Scope 1 and 2 greenhouse gas emissions by 2025[103] Operational and Geographic Concentration - The company operates 77 branch offices across 20 counties in Northern and Central California, owning 28 locations and leasing 55 facilities[120][121] - The company's operations are concentrated in California, making it vulnerable to regional economic conditions, natural disasters, and sector-specific risks such as agriculture and construction[81][82] Shareholder Information and Dividends - The company has 26.7 million shares of common stock outstanding, with 973 thousand stock options outstanding and 705 thousand shares available for future grants under equity incentive plans[78] - The company's stock is traded on NASDAQ under the symbol "WABC," with approximately 4,700 shareholders of record as of January 31, 2024[124] - The company has paid quarterly cash dividends since 1972, with intentions to continue, subject to earnings and regulatory policies[125] - The company's ability to pay dividends is limited by regulatory capital levels, earnings prospects, and restrictions on subsidiary dividends[86][88] Financial Instruments and Valuation - Changes in net unrealized losses on debt securities available for sale resulted in a net of tax loss of $305,769 thousand in 2022, improving to a net of tax gain of $65,823 thousand in 2023[426] - Accumulated other comprehensive income (loss) improved from a balance of $(256,105) thousand in 2022 to $(190,282) thousand in 2023[426] - Commercial real estate loans measured at fair value on a nonrecurring basis decreased from $225 thousand in 2022 to $110 thousand in 2023[410] Interest Rates and Monetary Policy - The Federal Reserve maintained the target range for the federal funds rate at 5.25% to 5.50% as of January 31, 2024[141]

Financial Performance - Net income for the three months ended September 30, 2023 was $41,601 thousand, up from $34,760 thousand in the same period of 2022, reflecting an increase of approximately 19.1%[18]. - Net income for the nine months ended September 30, 2023, was $122.3 million, an increase of 47.9% compared to $82.69 million for the same period in 2022[27]. - Basic earnings per common share for the three months ended September 30, 2023, were $1.56, compared to $1.29 for the same period in 2022, reflecting a year-over-year increase of 21.0%[127]. - Diluted earnings per common share for the nine months ended September 30, 2023, were $4.58, up from $3.07 in the same period of 2022, marking an increase of 49.0%[127]. - Total revenue for the company decreased to $885,850,000 in September 2023 from $958,488,000 in December 2022, representing a decline of approximately 7.6%[71]. Asset and Liability Changes - Total assets decreased from $6,950,317 thousand at December 31, 2022 to $6,567,288 thousand at September 30, 2023, a decline of approximately 5.5%[16]. - Total liabilities decreased from $6,348,207 thousand at December 31, 2022 to $5,918,865 thousand at September 30, 2023, a decline of about 6.8%[16]. - The company's total shareholders' equity increased from $602,110 thousand at December 31, 2022 to $648,423 thousand at September 30, 2023, an increase of approximately 7.7%[16]. - Total deposits decreased from $6,225,290 thousand at December 31, 2022 to $5,699,013 thousand at September 30, 2023, a reduction of about 8.4%[16]. Income and Expense Analysis - Net interest and loan fee income increased to $71,715 thousand for the three months ended September 30, 2023, compared to $60,315 thousand for the same period in 2022, representing a growth of about 18.9%[18]. - Noninterest income for the nine months ended September 30, 2023 was $32,530 thousand, down from $34,658 thousand in the same period of 2022, a decrease of approximately 6.1%[18]. - Total noninterest expense increased to $25,650,000 in Q3 2023, up from $24,767,000 in Q3 2022, representing a rise of 3.6%[18]. - The provision for credit losses was $400 thousand for the three months ended September 30, 2023, compared to a reversal of provision of $0 for the same period in 2022[18]. Credit Quality and Loan Portfolio - The allowance for credit losses at the end of September 2023 was $17,744,000, down from $20,284,000 at the beginning of the period, indicating a reduction of about 12.5%[72]. - The company reported charge-offs of $1,827,000 for the three months ended September 30, 2023, compared to $2,089,000 for the same period in 2022, reflecting a decrease of approximately 12.5%[71]. - The total loans by delinquency status indicate $877.90 million in current and accruing loans, with $5.46 million past due and $1.26 million in nonaccrual status[74]. - The company reported no allowance for credit losses allocated to loans on nonaccrual status as of September 30, 2023[77]. - The company maintains a Loan Review Department that conducts independent evaluations of loans, ensuring compliance with regulatory standards[73]. Investment Securities and Market Conditions - The total amortized cost of debt securities available for sale is $4,311,861 thousand, with a fair value of $3,906,233 thousand, resulting in unrealized losses of $406,959 thousand[54]. - The total amortized cost of debt securities held to maturity is $888,857 thousand, with a fair value of $818,395 thousand, leading to unrealized losses of $70,475 thousand[54]. - The company reported gross unrealized losses on debt securities available for sale amounting to $394,107 thousand, with 450 investment positions affected[57]. - The unrealized losses on debt securities were primarily attributed to increasing risk-free interest rates, which have negatively impacted bond values[59]. - The company continues to monitor interest rate changes, risk premium spreads, and credit ratings to manage its investment portfolio effectively[59]. Dividends and Shareholder Returns - The company paid dividends of $0.44 per share for the three months ended September 30, 2023, compared to $0.42 per share in the same period of 2022, an increase of approximately 4.8%[18]. - Total dividends paid for the nine months ended September 30, 2023, amounted to $34.22 million, compared to $33.88 million in the same period of 2022[27]. Regulatory and Compliance Matters - The Company adopted FASB ASU 2022-02 effective January 1, 2023, which eliminates recognition and measurement guidance for troubled debt restructurings and requires enhanced disclosures[49]. - The company does not expect any material impact on its consolidated financial statements from the recently issued FASB ASU 2020-04 regarding reference rate reform[50]. - The company evaluated debt securities for credit losses on a quarterly basis, indicating a proactive approach to risk management[111].

Financial Performance - Net income for the three months ended June 30, 2023, was $40,248 thousand, an increase of 58.8% compared to $25,314 thousand for the same period in 2022 [20]. - Net income for the six months ended June 30, 2023, was $80,699,000, compared to $47,930,000 for the same period in 2022, representing a 68.4% increase [29]. - Basic earnings per share for the three months ended June 30, 2023, were $1.51, up from $0.94 in the same period of 2022, representing a growth of 60.6% [20]. - Basic earnings per common share for the three months ended June 30, 2023, was $1.51, up from $0.94 in the same period of 2022, reflecting a 60% increase [127]. - Total comprehensive income for the six months ended June 30, 2023, was $84,761 thousand, compared to a loss of $189,759 thousand for the same period in 2022 [22]. - Total comprehensive income for Q2 2023 was $19,778,000, compared to a loss of $74,411,000 in Q2 2022 [22]. Revenue and Income Sources - Total interest and loan fee income rose to $70,489 thousand for the three months ended June 30, 2023, up 46.8% from $47,997 thousand in the prior year [20]. - Total interest income from investment securities for Q2 2023 reached $56,534,000, compared to $33,664,000 for the same period in 2022, representing a 68% increase [70]. - Total interest income from taxable securities for the six months ended June 30, 2023, was $110,120,000, compared to $60,825,000 in 2022, reflecting an 81% increase [70]. - Total noninterest income decreased to $10,700 thousand for the three months ended June 30, 2023, down 5.0% from $11,264 thousand in the same period of 2022 [20]. Expenses and Liabilities - Total noninterest expense increased to $25,839 thousand for the three months ended June 30, 2023, compared to $24,629 thousand in the same period of 2022, reflecting a rise of 4.9% [20]. - The provision for income taxes for the three months ended June 30, 2023, was $14,495 thousand, compared to $8,835 thousand for the same period in 2022, indicating an increase of 63.5% [20]. - Total liabilities decreased to $5,930,878 thousand at June 30, 2023, from $6,348,207 thousand at December 31, 2022, a reduction of about 6.6% [17]. Assets and Deposits - Total assets decreased from $6,950,317 thousand at December 31, 2022, to $6,582,740 thousand at June 30, 2023, representing a decline of approximately 5.3% [17]. - Total deposits decreased from $6,225,290 thousand at June 30, 2022, to $5,705,927 thousand at June 30, 2023, a decline of approximately 8.3% [17]. - Cash and due from banks at the end of the period was $266,187,000, down from $753,293,000 at the end of the same period in 2022 [29]. Credit Losses and Loan Performance - The allowance for credit losses on loans decreased from $20,284 thousand at December 31, 2022, to $18,480 thousand at June 30, 2023, a reduction of 8.9% [17]. - The total allowance for credit losses for the three months ended June 30, 2023, was $4,764, compared to $6,536 for the same period in 2022, reflecting a decrease of 27% [72]. - The company reported a reversal provision of $(3,410) for the six months ended June 30, 2023, indicating a reduction in expected credit losses [73]. - The total charge-offs for the six months ended June 30, 2023, were $3,552,000 [84]. - The total amount of loans past due 30-59 days was $4.610 million, while loans past due 60-89 days totaled $1.793 million [75]. Securities and Investments - The total amortized cost of debt securities available for sale as of June 30, 2023, is $4,404,289 thousand, with a fair value of $4,046,458 thousand, reflecting unrealized losses of $358,874 thousand [56]. - The total debt securities held to maturity amount to $900,357 thousand, with a fair value of $853,472 thousand, indicating unrealized losses of $46,930 thousand [56]. - The company reported securities losses of $125,000 for the six months ended June 30, 2023, compared to no losses in the same period of 2022 [29]. - The company does not intend to sell any debt securities available for sale with unrealized losses, indicating a long-term holding strategy [61]. Regulatory and Accounting Changes - The Company adopted FASB ASU 2022-02 effective January 1, 2023, which eliminates recognition and measurement guidance for troubled debt restructurings and requires enhanced disclosures [52]. - The company is currently evaluating the impact of FASB ASU 2023-02 on its consolidated financial statements, which expands the use of the proportional amortization method for certain tax credit structures [55]. - The company does not expect any material impact on its consolidated financial statements from the recently issued FASB ASU 2020-04 regarding reference rate reform [53]. Miscellaneous - The company declared dividends of $0.42 per share for Q2 2023, consistent with Q2 2022 [20]. - The company maintains a separate allowance for credit losses from off-balance-sheet credit exposures, which is included within other liabilities [51]. - The company continues to evaluate the impacts of inflation and Federal Reserve monetary policy on its business operations [32].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________. Commission file number: 001-09383 WESTAMERICA BANCORPORATION (Exact Name of Registrant as Specified in Its Charter) CALIFORNIA 94-2 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark one) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to______________. Commission File Number: 001-09383 WESTAMERICA BANCORPORATION (Exact name of the registrant as specified in its charter) California ...