Financial Performance - Total interest and loan fee income for Q2 2024 was 69,072,000,adecreaseof270,489,000 in Q2 2023[11]. - Net income for Q2 2024 was 35,462,000,down1240,248,000 in Q2 2023[11]. - Basic earnings per share for Q2 2024 were 1.33,comparedto1.51 in Q2 2023, reflecting a decrease of 12%[11]. - Total noninterest income for Q2 2024 was 10,500,000,slightlydownfrom10,700,000 in Q2 2023[11]. - Total noninterest expense increased to 26,130,000inQ22024,upfrom25,839,000 in Q2 2023, representing a rise of 1%[11]. - The provision for income taxes in Q2 2024 was 12,673,000,comparedto14,495,000 in Q2 2023, indicating a decrease of 13%[11]. - The company reported a total comprehensive income of 35,019,000forQ22024,comparedto19,778,000 in Q2 2023[12]. - Net income for the period ending June 30, 2024, was 35,462thousand,comparedto40,248 thousand for the same period in 2023, reflecting a decrease of approximately 12.5%[14]. - Net income for 2024 was 71,879,000,adecreaseof1180,699,000 in 2023[17]. Shareholder Information - Dividends paid per share increased to 0.44inQ22024from0.42 in Q2 2023, reflecting a growth of 5%[11]. - The company declared dividends of 0.44pershareforthesecondquarterof2024,totaling11,739 thousand, compared to 0.42persharetotaling11,192 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 486,124thousand,significantlyupfrom266,187 thousand at the end of the previous year[17]. - Total shareholders' equity increased to 815,600thousandasofJune30,2024,upfrom772,894 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 831,842thousand,adecreasefrom866,602 thousand as of December 31, 2023[54]. - Total deposits amounted to 5,131,440thousand,adecreasefrom5,474,267 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,withaprovisionof148,000 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,whileresidentialrealestatewas5,758,000[55]. - Charge-offs for the period amounted to (1,513,000),withrecoveriesof1,471,000, resulting in a net charge-off of (42,000)[55].−ThetotalallowanceforcreditlossesforthesixmonthsendedJune30,2023,was18,480,000, with a reversal provision of (1,550,000)[58].−Thecompanymaintainsanallowanceforcreditlossesatalevelconsideredadequatetoprovideforexpectedlossesbasedonhistoricallossratesadjustedforcurrentandexpectedconditions[31].DebtSecuritiesandInvestments−Totaldebtsecuritiesavailableforsaleamountedto3,979,429,000 with unrealized losses of 280,940,000,resultinginafairvalueof3,699,318,000[41]. - The total amortized cost of debt securities held to maturity was 860,869,000,withafairvalueof817,071,000, reflecting unrealized losses of 43,822,000[41].−Thecompanyevaluatesavailableforsaledebtsecuritiesforcredit−relatedlossesatleastquarterly,recordinganallowanceforcreditlosseswhenfairvaluedeclinesbelowamortizedcost[25].−Thecompanydoesnotintendtosellanydebtsecuritiesavailableforsalewithmaterialunrealizedlosses[47].−Thecompanymonitorsinterestratechangesandcreditratings,notingthatunrealizedlosseswereprimarilyduetohigherrisk−freeinterestratesaffectingbondvalues[46].LoanPortfolioManagement−ThecompanymaintainsaLoanReviewDepartmentthatperformscontinuousevaluationsofloansthroughouttheyear[58].−Thetotalloanscategorizedascurrentandaccruingamountedto823,972,000, with an additional 4,758,000inloans30−59dayspastdue[60].−ThecompanyreportednoloanmodificationsmadetoborrowersexperiencingfinancialdifficultyduringthesixmonthsendedJune30,2024[61].−Thetotalcreditriskprofileshowedatotalof805,379,000 in pass grade loans, with 25,128,000classifiedassubstandard[59].−Thecompanyhasnodebtsecuritiesheldtomaturityonnonaccrualstatusorpastdue30daysormoreasofJune30,2024[52].EconomicandRegulatoryEnvironment−TheCompanyanticipatesthatvariousfactors,includingeconomicconditionsandregulatorychanges,couldimpactfuturefinancialperformance[6].−TheCompanyiscurrentlyevaluatingtheimpactofFASBASU2023−09onitsconsolidatedfinancialstatements,whichenhancesincometaxdisclosures[39].−TheCompanyadoptedFASBASU2020−04regardingreferenceratereform,whichdidnothaveamaterialimpactonitsconsolidatedfinancialstatements[37].Miscellaneous−Thecarryingvalueofgoodwillremainedunchangedat121,673 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 867,510thousandbasedoncollateralpledgedasofJune30,2024[93].−TheCompanydidnotexchangeanyVisaClassB−1sharesduringtheexchangeofferthatexpiredonMay3,2024,maintainingacarryingvalueof0 for these shares[85].
Westamerica Bancorporation(WABC)2024-08-08 18:40