Westamerica Bancorporation(US:WABC)2019-05-06 21:21Financial Performance - Net income for the three months ended March 31, 2019, was $19,646 thousand, an increase of 12.24% compared to $17,506 thousand for the same period in 2018[20]. - Basic earnings per share increased to $0.73 for the three months ended March 31, 2019, compared to $0.66 in the same period of 2018, marking a growth of 10.61%[18]. - Total comprehensive income for the three months ended March 31, 2019, was $48,393 thousand, compared to a loss of $5,631 thousand in the same period of 2018[20]. - The company reported a provision for income taxes of $5,739 thousand for the three months ended March 31, 2019, compared to $4,283 thousand in 2018, an increase of 33.98%[18]. - Net income for the three months ended March 31, 2019, was $19,646 thousand, an increase of 6.5% compared to $17,506 thousand for the same period in 2018[26]. Assets and Liabilities - Total assets decreased to $5,555,961 thousand as of March 31, 2019, from $5,568,526 thousand at December 31, 2018, representing a decline of approximately 0.22%[15]. - The company’s total liabilities decreased to $4,899,194 thousand as of March 31, 2019, from $4,952,935 thousand at December 31, 2018, a decline of approximately 1.08%[15]. - Total deposits decreased to $4,792,584 thousand as of March 31, 2019, from $4,866,839 thousand at December 31, 2018, a decline of approximately 1.52%[15]. - Noninterest-bearing deposits were $2,179,803 thousand at March 31, 2019, compared to $2,243,251 thousand at December 31, 2018[87]. - Total short-term borrowed funds increased to $58,317,000 as of March 31, 2019, from $51,247,000 at December 31, 2018[89]. Income and Expenses - Total interest and fee income rose to $39,483 thousand for the three months ended March 31, 2019, up from $36,315 thousand in the prior year, reflecting a growth of 5.98%[18]. - Noninterest expense decreased to $25,183 thousand for the three months ended March 31, 2019, down from $26,022 thousand in 2018, a reduction of 3.22%[18]. - The company reported a decrease in interest income receivable of $1,887 thousand for the three months ended March 31, 2019[26]. - The company experienced a net cash used in financing activities of $(72,159,000) for the three months ended March 31, 2019, compared to a net cash provided of $44,065,000 in the same period of 2018[26]. Loans and Allowance for Loan Losses - The allowance for loan losses decreased to $20,477 thousand as of March 31, 2019, from $21,351 thousand at December 31, 2018, indicating a reduction of 4.09%[15]. - The total loans outstanding as of March 31, 2019, were $1,204,844 thousand, slightly decreased from $1,207,202 thousand at December 31, 2018[54]. - The total allowance for loan losses as of March 31, 2019, was $20,477,000, with $2,715,000 individually evaluated for impairment and $17,762,000 collectively evaluated for impairment[57]. - Impaired loans totaled $16,826 thousand at March 31, 2019, compared to $19,369 thousand at December 31, 2018, reflecting a decrease of 13.3%[68]. - The total loans by delinquency status showed that there were 4,681 loans past due, totaling $1,195,150,000, with 4,000 loans in nonaccrual status[65]. Securities and Investments - Total debt securities available for sale amounted to $2,702,240 thousand as of March 31, 2019, with gross unrealized gains of $20,237 thousand and gross unrealized losses of $38,794 thousand[44]. - The amortized cost of debt securities held to maturity was $923,190 thousand, with a fair value of $920,603 thousand as of March 31, 2019[45]. - The market value of equity securities was $1,771 thousand at March 31, 2019, showing an increase from $1,747 thousand at December 31, 2018[43]. - The company recognized gross unrealized holding gains of $24 thousand during the three months ended March 31, 2019, compared to gross unrealized holding losses of $36 thousand during the same period in 2018[43]. - The total gross unrealized losses for debt securities available for sale were $29,413 thousand, with 218 investment positions affected[47]. Accounting Standards and Changes - The company adopted new accounting standards effective January 1, 2019, which significantly changed the accounting for leases and credit losses[31][37]. - The company recognized a lease liability of $15.3 million and a right-of-use asset of $15.3 million upon the adoption of new lease accounting standards[32]. - The company early adopted provisions of ASU 2018-13 to modify relevant disclosures, effective January 1, 2020, which will not affect financial results upon adoption[40]. - The cumulative effect adjustment from the reclassification of equity securities decreased retained earnings by $142 thousand, net of tax[42]. Other Assets and Liabilities - The company held total other assets of $165,336 thousand at March 31, 2019, an increase from $162,906 thousand at December 31, 2018, representing a growth of 1.4%[76]. - The total other liabilities increased to $48,293 thousand at March 31, 2019, from $34,849 thousand at December 31, 2018, marking a rise of 38.5%[80]. - The company recorded a lease liability of $17,891 thousand and a right-of-use asset of $17,891 thousand as of March 31, 2019[81]. - The net deferred tax asset decreased to $27,332 thousand at March 31, 2019, from $42,256 thousand at December 31, 2018, a decrease of 35.4%[76]. Miscellaneous - Goodwill remains unchanged at $121,673,000 as of March 31, 2019, with no impairment recognized during the three months ended March 31, 2019[84][85]. - The company had 36 lending relationships each with aggregate amounts of $5 million or more as of March 31, 2019[74]. - The estimated future amortization expense for identifiable intangible assets is projected to be $228,000 for the remainder of 2019[85].