Westamerica Bancorporation(US:WABC)2025-02-28 21:44Financial Position - As of December 31, 2024, the Company had consolidated assets of approximately $6.1 billion, deposits of approximately $5.0 billion, and shareholders' equity of approximately $890 million[20]. - The Company's total assets decreased to $6.08 billion in 2024 from $6.36 billion in 2023, while total deposits also fell to $5.01 billion from $5.47 billion[140]. - Shareholders' equity increased to $1,003,242 in 2024 from $894,610 in 2023[169]. - The carrying value of the investment securities portfolio decreased to $4.2 billion at December 31, 2024, down from $4.9 billion at December 31, 2023[189]. - The total corporate securities held by the Company decreased from $2.614904 billion in 2023 to $2.539147 billion in 2024[197]. Employee Relations - The Company employed 642 employees (616 full-time equivalent staff) as of December 31, 2024, and maintains a good relationship with its employees[22]. - The Company has a comprehensive benefits package for employees, including company contributions of up to 6% to qualified retirement plans[23]. - Salaries and related benefits increased by $2.4 million in 2024 compared to 2023, attributed to merit increases and higher health insurance costs[184]. Regulatory Compliance - The Company is subject to examination and supervision by the Federal Reserve Board and the California Department of Financial Protection and Innovation[27]. - The Company is subject to significant federal and state regulations that could materially affect its business operations and financial condition[92]. - The Company does not have immediate plans to elect to use the community bank leverage ratio framework but may consider it in the future[44]. - The Company is subject to restrictions on dividend payments based on retained earnings and total assets, which must meet specific criteria under California General Corporation Law[50][52]. Financial Performance - Westamerica Bancorporation reported net income of $138.6 million in 2024, down from $161.8 million in 2023, resulting in diluted earnings per share (EPS) of $5.20 compared to $6.06 in the previous year[145]. - Total interest and loan fee income for 2024 was $268.0 million, while interest expense increased to $17.4 million from $3.9 million in 2023[140]. - The net interest margin (FTE) for 2024 was 4.14%, a decrease from 4.37% in 2023[140]. - The efficiency ratio improved to 35.4% in 2024 from 31.7% in 2023, indicating better cost management relative to revenue[140]. - Noninterest income for 2024 remained stable at $43.2 million compared to 2023, with a $1.4 million gain on the sale of other assets offset by lower income from merchant processing services[155]. Loan Portfolio - Total loans decreased to $820,300,000 in 2024 from $866,602,000 in 2023, representing a decline of approximately 5.5%[209]. - Commercial loans decreased to $127,276,000 in 2024 from $136,550,000 in 2023, a decline of about 9.3%[209]. - Consumer installment and other loans decreased to $171,786,000 in 2024 from $227,531,000 in 2023, reflecting a significant decline of approximately 24.5%[209]. - The commercial real estate loan portfolio increased to $507,900,000 in 2024 from $487,523,000 in 2023, showing a growth of about 4.3%[209]. - The maturity distribution of loans indicates that $75,496,000 are due within one year as of December 31, 2024[210]. Market and Economic Risks - The Company faces competition from major banks, community banks, credit unions, and other financial institutions, with ongoing legislative and technological changes affecting competitive conditions[67][68]. - The Company's operations are heavily concentrated in California, where approximately 65% of its loan portfolio is secured by real estate, making it vulnerable to economic downturns in the region[83]. - Adverse changes in general business or economic conditions, including inflation, could negatively impact the Company's financial performance and credit quality of its loans[86]. - Negative developments in the banking industry, such as bank failures, could increase FDIC deposit insurance premiums and decrease depositor confidence, adversely affecting the Company's stock price and liquidity management[78]. Risk Management - The Company is committed to addressing potential health, safety, and environmental risks through various practices[20]. - The Company has implemented data security safeguards with third-party vendors to quickly identify and contain improper access to sensitive information[101]. - The Company continuously reviews and updates its internal controls and procedures to mitigate risks related to financial reporting and fraud[102]. - The Company closely monitors credit risk and classifies loans with higher levels of credit risk as "nonaccrual loans" when full collection is in doubt[215]. Investment Securities - The Company holds $2.766591 billion in total corporate securities as of December 31, 2024, with a fair value of $2.539147 billion[196]. - Corporate securities comprised 61% of the investment securities portfolio as of December 31, 2024, compared to 54% in 2023[190]. - The fair value of the Company's corporate securities rated AAA is $311.650 million, while those rated AA total $670.939 million as of December 31, 2024[198].