Westamerica Bancorporation(US:WABC)2023-08-08 18:43Financial 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].