Westamerica Bancorporation(US:WABC)2024-08-08 18:40Financial Performance - Total interest and loan fee income for Q2 2024 was $69,072,000, a decrease of 2% from $70,489,000 in Q2 2023[11]. - Net income for Q2 2024 was $35,462,000, down 12% from $40,248,000 in Q2 2023[11]. - Basic earnings per share for Q2 2024 were $1.33, compared to $1.51 in Q2 2023, reflecting a decrease of 12%[11]. - Total noninterest income for Q2 2024 was $10,500,000, slightly down from $10,700,000 in Q2 2023[11]. - Total noninterest expense increased to $26,130,000 in Q2 2024, up from $25,839,000 in Q2 2023, representing a rise of 1%[11]. - The provision for income taxes in Q2 2024 was $12,673,000, compared to $14,495,000 in Q2 2023, indicating a decrease of 13%[11]. - The company reported a total comprehensive income of $35,019,000 for Q2 2024, compared to $19,778,000 in Q2 2023[12]. - Net income for the period ending June 30, 2024, was $35,462 thousand, compared to $40,248 thousand for the same period in 2023, reflecting a decrease of approximately 12.5%[14]. - Net income for 2024 was $71,879,000, a decrease of 11% from $80,699,000 in 2023[17]. Shareholder Information - Dividends paid per share increased to $0.44 in Q2 2024 from $0.42 in Q2 2023, reflecting a growth of 5%[11]. - The company declared dividends of $0.44 per share for the second quarter of 2024, totaling $11,739 thousand, compared to $0.42 per share totaling $11,192 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 $486,124 thousand, significantly up from $266,187 thousand at the end of the previous year[17]. - Total shareholders' equity increased to $815,600 thousand as of June 30, 2024, up from $772,894 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 $831,842 thousand, a decrease from $866,602 thousand as of December 31, 2023[54]. - Total deposits amounted to $5,131,440 thousand, a decrease from $5,474,267 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, with a provision of $148,000 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, while residential real estate was $5,758,000[55]. - Charge-offs for the period amounted to $(1,513,000), with recoveries of $1,471,000, resulting in a net charge-off of $(42,000)[55]. - The total allowance for credit losses for the six months ended June 30, 2023, was $18,480,000, with a reversal provision of $(1,550,000)[58]. - The company maintains an allowance for credit losses at a level considered adequate to provide for expected losses based on historical loss rates adjusted for current and expected conditions[31]. Debt Securities and Investments - Total debt securities available for sale amounted to $3,979,429,000 with unrealized losses of $280,940,000, resulting in a fair value of $3,699,318,000[41]. - The total amortized cost of debt securities held to maturity was $860,869,000, with a fair value of $817,071,000, reflecting unrealized losses of $43,822,000[41]. - The company evaluates available for sale debt securities for credit-related losses at least quarterly, recording an allowance for credit losses when fair value declines below amortized cost[25]. - The company does not intend to sell any debt securities available for sale with material unrealized losses[47]. - The company monitors interest rate changes and credit ratings, noting that unrealized losses were primarily due to higher risk-free interest rates affecting bond values[46]. Loan Portfolio Management - The company maintains a Loan Review Department that performs continuous evaluations of loans throughout the year[58]. - The total loans categorized as current and accruing amounted to $823,972,000, with an additional $4,758,000 in loans 30-59 days past due[60]. - The company reported no loan modifications made to borrowers experiencing financial difficulty during the six months ended June 30, 2024[61]. - The total credit risk profile showed a total of $805,379,000 in pass grade loans, with $25,128,000 classified as substandard[59]. - The company has no debt securities held to maturity on nonaccrual status or past due 30 days or more as of June 30, 2024[52]. Economic and Regulatory Environment - The Company anticipates that various factors, including economic conditions and regulatory changes, could impact future financial performance[6]. - The Company is currently evaluating the impact of FASB ASU 2023-09 on its consolidated financial statements, which enhances income tax disclosures[39]. - The Company adopted FASB ASU 2020-04 regarding reference rate reform, which did not have a material impact on its consolidated financial statements[37]. Miscellaneous - The carrying value of goodwill remained unchanged at $121,673 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 $867,510 thousand based on collateral pledged as of June 30, 2024[93]. - The Company did not exchange any Visa Class B-1 shares during the exchange offer that expired on May 3, 2024, maintaining a carrying value of $0 for these shares[85].