Westamerica Bancorporation(US:WABC)2019-11-04 20:19Financial Performance - Net income for the three months ended September 30, 2019, was $20,390 thousand, up 20.1% from $16,993 thousand in the same period of 2018[16]. - Basic earnings per share increased to $0.76 for Q3 2019, compared to $0.64 for Q3 2018, representing an increase of 18.75%[16]. - Net income for the three months ended September 30, 2019, was $20,390,000, compared to $16,993,000 for the same period in 2018, representing an increase of 20.5%[18]. - For the nine months ended September 30, 2019, net income was $59,661,000, up from $52,509,000 in 2018, reflecting a growth of 13.0%[21]. - Total comprehensive income for the three months ended September 30, 2019, was $27,720,000, compared to $12,827,000 in 2018, indicating a significant increase of 116.5%[18]. - Diluted earnings per common share for the nine months ended September 30, 2019, were $2.21, compared to $1.96 for the same period in 2018, representing an increase of about 12.8%[118]. Assets and Liabilities - Total assets increased to $5,616,055 thousand as of September 30, 2019, compared to $5,568,526 thousand at December 31, 2018, reflecting a growth of 0.85%[14]. - Total deposits decreased to $4,796,623 thousand as of September 30, 2019, from $4,866,839 thousand at December 31, 2018, a decline of 1.43%[14]. - The total shareholders' equity as of September 30, 2019, was $713,378,000, up from $693,437,000 on June 30, 2019[20]. - Total other liabilities increased to $60,408 thousand as of September 30, 2019, from $34,849 thousand at December 31, 2018[77]. - Total other assets decreased from $162,906 thousand at December 31, 2018, to $152,772 thousand at September 30, 2019[72]. Income and Expenses - Total noninterest income for the nine months ended September 30, 2019, was $35,676 thousand, slightly down from $36,252 thousand in the same period of 2018, a decrease of 1.58%[16]. - Total noninterest expense decreased to $24,033 thousand for Q3 2019, down 18.5% from $29,366 thousand in Q3 2018[16]. - The company reported depreciation and amortization of $15,178,000 for the nine months ended September 30, 2019, compared to $18,964,000 in 2018[23]. - The company reported a net cash used in financing activities of $(97,977) thousand in 2019, compared to $(7,714) thousand in 2018, indicating a significant increase in cash outflow[24]. Loans and Credit Quality - The total outstanding loans as of September 30, 2019, were $1,133,229 thousand, down from $1,207,202 thousand at December 31, 2018, indicating a decrease of about 6.1%[55]. - The allowance for loan losses at the end of the period was $19,828 thousand, which includes a reversal provision of $(524) thousand for the three months ended September 30, 2019[56]. - The credit risk profile indicated that $1,109,559,000 of loans were graded as "pass," while $23,255,000 were classified as "substandard" as of September 30, 2019[60]. - The company reported no loans on nonaccrual status at September 30, 2019, and December 31, 2018, indicating a stable loan performance[67]. - The company’s Loan Review Department performs continuous evaluations of loans, ensuring that credit risk grades are validated and adjusted as necessary[58]. Deposits and Funding - The company’s deposits amounted to $4,796,623 thousand as of September 30, 2019, slightly down from $4,866,839 thousand at December 31, 2018, indicating a decrease of approximately 1.4%[112]. - Noninterest-bearing deposits increased to $2,265,640 thousand from $2,243,251 thousand, representing a growth of about 1.0% year-over-year[85]. - Interest-bearing transaction deposits decreased to $910,566 thousand from $929,346 thousand, a decline of approximately 2.0%[85]. - Total short-term borrowed funds amounted to $115,018 thousand as of September 30, 2019, an increase from $91,837 thousand at December 31, 2018[87]. Fair Value Measurements - The Company employs independent vendor pricing services to measure fair value for equity and debt securities, ensuring consistency and accuracy in valuation[94]. - The fair value hierarchy categorizes assets into Level 1, Level 2, and Level 3 based on the observability of inputs used for valuation, with no transfers in or out of Level 3 during the nine months ended September 30, 2019[95][97]. - The Company conducts quarterly "other than temporary impairment (OTTI)" analysis on debt securities priced below 95% of par value, which may significantly affect fair value estimates[94]. - The fair value of loans is estimated using a net present value of cash flows methodology, incorporating various risks such as interest rate and credit risks[106]. Dividends - Dividends declared were $0.41 per share for the three months ended September 30, 2019, totaling $11,063,000[20]. - Dividends paid per share were $1.22 in 2019, totaling $32,849 thousand, compared to $1.20 per share totaling $31,944 thousand in 2018[24].