Westamerica Bancorporation(WABC) - 2024 Q3 - Quarterly Results

Financial Performance - Westamerica Bancorporation reported net income of $35.1 million for Q3 2024, with diluted EPS of $1.31, compared to $35.5 million and $1.33 EPS in Q2 2024[1][2]. - The annualized return on average common equity was 13.7% for Q3 2024, down from 14.4% in Q2 2024[2][6]. - Noninterest income increased to $11.9 million in Q3 2024, up 5.7% from $10.5 million in Q2 2024[3][6]. - Total Revenue (FTE) for Q3'2024 was $74,390, a decrease of 10.8% compared to Q3'2023's $83,373[18]. - Net income decreased by 15.7% to $35,057, down from $41,601[39]. - Basic earnings per share decreased by 16.0% to $1.31, compared to $1.56[39]. Interest Income and Expenses - Net interest income on a fully-taxable equivalent basis was $62.5 million in Q3 2024, a decrease of 13.4% from $72.1 million in Q3 2023[3][6]. - Interest expense surged by 531.1% year-over-year to $13,953,000, significantly impacting net interest income[11]. - Net interest and loan fee income (FTE) declined by 9.1% year-over-year to $192,659,000[11]. - Net Interest Income and Margin (FTE) for Q3'2024 was $72,092 with a margin of 4.43%, compared to $62,465 and 4.08% in Q3'2023[17]. - Net interest and loan fee income decreased by 13.3% to $62,149, down from $71,715[39]. - Total interest expense surged by 398.2% to $5,645, compared to $1,133[39]. Loans and Deposits - Total loans decreased by 9.1% year-over-year to $840,961,000[12]. - Consumer loans saw a significant decline of 21.0% year-over-year to $216,723,000[12]. - Total deposits decreased by 10.8% year-over-year to $5,224,158,000[14]. - Noninterest demand deposits decreased by 10.6% year-over-year to $2,480,815,000[14]. - Loans to deposits ratio improved to 16.1% from 15.8% year-over-year[12]. - Average total loans decreased by 9.1% to $840,961 thousand compared to $925,351 thousand in the previous year[25]. Expenses and Dividends - Operating expenses were 35% of total revenues in Q3 2024, with noninterest expenses totaling $26.3 million, slightly up from $26.1 million in Q2 2024[2][3]. - Total Noninterest Expense for Q3'2024 was $32,522, an increase of 8.0% from $30,120 in Q3'2023[22]. - Shareholders received a dividend of $0.44 per common share during Q3 2024, maintaining the same payout as in Q2 2024[2][6]. Credit Losses and Allowances - The company recognized no provision for credit losses in Q3 2024, with nonperforming assets stable at $0.9 million[2][3]. - The allowance for credit losses stood at $15.3 million as of September 30, 2024[2][3]. - Allowance for Credit Losses (ACLL) at the end of Q3'2024 was $15,318, down 13.7% from $17,744 in Q3'2023[24]. - Total nonperforming loans decreased by 25.8% to $919 thousand from $1,238 thousand year-over-year[27]. Assets and Equity - Total assets decreased by 6.2% to $6,161,143 thousand compared to $6,567,288 thousand in the previous year[31]. - Total shareholders' equity increased by 40.2% year-over-year to $909,040, compared to $648,423[37]. - Cash balances increased by 19.6% to $502,945 thousand from $420,550 thousand year-over-year[33].