Westamerica Bancorporation(WABC) - 2022 Q2 - Quarterly Report

Financial Performance - Net income for the three months ended June 30, 2022, was $25,314 thousand, an increase of 7.7% compared to $22,579 thousand for the same period in 2021[19]. - Net income for the six months ended June 30, 2022, was $47,930,000, an increase from $42,726,000 in the same period of 2021, representing a growth of approximately 5.1%[28]. - Basic earnings per share for the three months ended June 30, 2022, were $0.94, up from $0.84 in the same period of 2021, representing a growth of 11.9%[19]. - The company reported a comprehensive loss of $99,725,000 for the period ending June 30, 2022, compared to a comprehensive loss of $237,689,000 for the same period in 2021, showing an improvement[28]. - The company recognized an investment loss of $600 thousand for the three months ended June 30, 2022, compared to a loss of $1,431 thousand for the same period in 2021[90]. Assets and Liabilities - Total assets decreased to $7,222,405 thousand as of June 30, 2022, down from $7,461,026 thousand at December 31, 2021, representing a decline of approximately 3.2%[16]. - Total liabilities decreased from $6,633,924 thousand at December 31, 2021, to $6,605,279 thousand at June 30, 2022, a reduction of approximately 0.4%[16]. - Shareholders' equity decreased to $617,126 thousand as of June 30, 2022, down from $827,102 thousand at December 31, 2021, reflecting a decline of approximately 25.4%[16]. - Total cash and due from banks at the end of the period was $753,293,000, down from $939,929,000 at the beginning of the period, indicating a decrease of about 19.8%[28]. - Total other assets increased to $289,500 thousand as of June 30, 2022, up from $185,415 thousand at December 31, 2021[86]. Income and Expenses - Total interest and loan fee income rose to $47,997 thousand for the three months ended June 30, 2022, compared to $44,276 thousand in the same period of 2021, marking an increase of 6.1%[19]. - Noninterest income totaled $11,264 thousand for the three months ended June 30, 2022, slightly up from $11,032 thousand in the same period of 2021, reflecting a growth of 2.1%[19]. - Total noninterest expense increased to $24,629 thousand for the three months ended June 30, 2022, compared to $24,291 thousand in the same period of 2021, indicating a rise of 1.4%[19]. - Total dividends paid during the period amounted to $22,576,000, slightly higher than $22,006,000 in the previous year, marking an increase of about 2.6%[28]. - Interest expense for aggregate time deposits with balances over $100 thousand was $40 thousand for the three months ended June 30, 2022, compared to $68 thousand for the same period in 2021, a decrease of approximately 41.2%[98]. Credit Quality and Loan Portfolio - The provision for credit losses remained at $0 for the three months ended June 30, 2022, consistent with the same period in 2021[19]. - The allowance for credit losses at the end of June 30, 2022, was $22,313,000, reflecting a decrease from $23,514,000 at the beginning of the period[70]. - Total loans outstanding as of June 30, 2022, amounted to $999,768,000, a decrease of 6.4% from $1,068,126,000 at the end of June 2021[69]. - The total amount of loans in nonaccrual status was $614 thousand as of June 30, 2022, compared to $692 thousand at December 31, 2021[75]. - The total amount of loans classified as "Substandard" was $410 thousand as of June 30, 2022[80]. Investment Securities - The total amortized cost of debt securities available for sale was $4,874,057 thousand, with a fair value of $4,607,114 thousand, reflecting unrealized losses of $272,754 thousand[54]. - The company reported a gross unrealized loss of $13,562 thousand on agency residential mortgage-backed securities, with a fair value of $330,709 thousand[57]. - Debt securities held to maturity totaled $442,361 thousand at amortized cost, with a fair value of $440,074 thousand, indicating unrealized losses of $4,529 thousand[56]. - The total gross unrealized gains for debt securities available for sale were $8,053 thousand as of June 30, 2022[54]. - The company does not intend to sell any debt securities available for sale with an unrealized loss, indicating a strategy focused on recovery of the amortized cost basis[59]. Deposits and Borrowings - Total deposits increased slightly to $6,415,591 thousand as of June 30, 2022, compared to $6,413,956 thousand at December 31, 2021, showing a marginal increase of 0.02%[16]. - Noninterest-bearing deposits decreased to $2,987,725 thousand as of June 30, 2022, from $3,069,080 thousand at December 31, 2021, a decline of approximately 2.67%[98]. - Interest-bearing transaction deposits increased to $1,303,700 thousand as of June 30, 2022, compared to $1,260,869 thousand at December 31, 2021, reflecting a growth of about 3.4%[98]. - Total short-term borrowed funds decreased to $118,167 thousand as of June 30, 2022, from $146,246 thousand at December 31, 2021, a reduction of approximately 19.2%[100]. - The total collateral carrying value for repurchase agreements decreased to $255,028 thousand as of June 30, 2022, from $296,300 thousand at December 31, 2021, a decline of approximately 13.9%[100].