Westamerica Bancorporation(WABC) - 2021 Q3 - Quarterly Report

Financial Performance - Net income for the three months ended September 30, 2021, was $22,063 thousand, compared to $20,051 thousand for the same period in 2020, reflecting an increase of 10.0%[18] - Net income for the nine months ended September 30, 2021, was $64,789 thousand, an increase from $56,575 thousand in the same period of 2020, representing a growth of approximately 3.5%[27] - Average diluted earnings per share for the nine months ended September 30, 2021, was $2.41, compared to $2.10 for the same period in 2020, an increase of 14.8%[18] - The company reported a total comprehensive income of $6,426 thousand for the three months ended September 30, 2021, down from $29,942 thousand in 2020, a decrease of 78.6%[20] Asset Growth - Total assets increased to $7,403,573 thousand as of September 30, 2021, up from $6,747,931 thousand at December 31, 2020, representing a growth of approximately 9.7%[16] - Total cash and due from banks at the end of the period was $1,011,048 thousand, significantly up from $398,964 thousand at the end of September 2020[27] - Total deposits rose to $6,288,961 thousand as of September 30, 2021, compared to $5,687,979 thousand at December 31, 2020, marking an increase of 10.5%[16] Income and Expenses - Net interest and loan fee income after provision for credit losses was $43,318 thousand for the three months ended September 30, 2021, compared to $40,899 thousand for the same period in 2020, an increase of 5.9%[18] - Noninterest income for the nine months ended September 30, 2021, totaled $32,503 thousand, up from $31,678 thousand in 2020, indicating a growth of 2.6%[18] - Total noninterest expense for the three months ended September 30, 2021, was $24,697 thousand, slightly up from $24,603 thousand in 2020, reflecting a marginal increase of 0.4%[18] Credit Losses and Provisions - The provision for credit losses was $0 for the three months ended September 30, 2021, compared to $4,300 thousand for the same period in 2020, showing a significant reduction in credit loss provisions[18] - The company reported a provision for credit losses of $0 thousand for the nine months ended September 30, 2021, a decrease from $4,300 thousand in the same period of 2020[27] - The allowance for credit losses totaled $23,882,000 at September 30, 2021, compared to $24,142,000 at September 30, 2020, indicating a reduction of about 1.1% year-over-year[67] Loan Portfolio - Total loans amounted to $1,132,472 thousand as of September 30, 2021, with $1,127,490 thousand classified as current and accruing[70] - Total commercial loans decreased from $394,806,000 at December 31, 2020 to $289,729,000 at September 30, 2021, representing a decline of approximately 26.6%[65] - The total amount of troubled debt restructurings (TDRs) at September 30, 2021, was $3,026 thousand, with no allowance for credit losses allocated[71] Investment Securities - The fair value of debt securities available for sale was $4,602,706 thousand as of September 30, 2021, up from $4,063,185 thousand at December 31, 2020, representing an increase of approximately 13.26%[109][111] - The total gross unrealized losses for debt securities available for sale were $7,238 thousand, with corporate securities contributing $6,475 thousand to this total[54] - The Company reported total interest income from investment securities of $85,202 thousand for the nine months ended September 30, 2021, compared to $77,464 thousand for the same period in 2020[63] Dividends and Cash Flow - The company paid dividends of $33,021 thousand for the nine months ended September 30, 2021, slightly down from $33,263 thousand in the same period of 2020[27] - Net cash provided by operating activities for the nine months ended September 30, 2021, was $71,130 thousand, compared to $96,240 thousand in the same period of 2020, indicating a decrease of about 26.1%[27] - The company reported a net cash used in investing activities of $268,660 thousand for the nine months ended September 30, 2021, compared to $832,152 thousand in the same period of 2020, showing a significant reduction in cash outflow[27] Risk Management - The company continues to evaluate the impact of the COVID-19 pandemic on its business operations and financial performance, indicating ongoing strategic assessments[29] - The Company maintains a separate allowance for credit losses from off-balance-sheet credit exposures, which is included within other liabilities on the consolidated statements of financial condition[47] - The Company evaluates available for sale debt securities in unrealized loss positions for credit-related losses at least quarterly, recording an allowance for credit losses when fair value declines below the amortized cost basis[35] Goodwill and Intangibles - Goodwill recorded as of September 30, 2021, was $121,673 thousand, unchanged from December 31, 2020[94] - The Company recorded goodwill and identifiable intangibles associated with business combinations, with no impairment recognized during the three and nine months ended September 30, 2021, and the year ended December 31, 2020[93] - Identifiable intangibles are amortized over their expected useful lives, with no adjustments recorded during the specified periods[93]