Westamerica Bancorporation(US:WABC)2025-11-07 19:12Financial Performance - Net income for the three months ended September 30, 2025, was $28,263 thousand, a decrease of 19.4% compared to $35,057 thousand for the same period in 2024[19] - Net income for the nine months ended September 30, 2025, was $88,366,000, a decrease from $106,936,000 in the same period of 2024, representing a decline of approximately 17%[26] - Basic earnings per share for the three months ended September 30, 2025, were $1.12, down from $1.31 in the same period of 2024, representing a decrease of 14.5%[19] - Total comprehensive income for the three months ended September 30, 2025, was $45,097 thousand, a decrease of 56.9% compared to $104,704 thousand for the same period in 2024[21] - Total interest and loan fee income for the nine months ended September 30, 2025, was $174,192 thousand, down 15.3% from $205,612 thousand in the same period of 2024[19] - Noninterest income for the three months ended September 30, 2025, was $10,151 thousand, a decrease of 6.5% compared to $11,925 thousand for the same period in 2024[19] - Total noninterest expense for the nine months ended September 30, 2025, was $76,456 thousand, a decrease of 2.7% from $78,538 thousand in the same period in 2024[19] Assets and Liabilities - Total assets decreased to $5,914,438 thousand as of September 30, 2025, down from $6,076,274 thousand at December 31, 2024, representing a decline of approximately 2.68%[17] - Total deposits decreased to $4,793,179 thousand as of September 30, 2025, down from $5,011,850 thousand at December 31, 2024, reflecting a decline of approximately 4.36%[17] - Total cash and due from banks at the end of the period was $659,268,000, compared to $502,945,000 at the end of the previous year, indicating an increase of about 31%[26] - The carrying value of the Company's debt securities pledged was $1,858,958 thousand, down from $2,049,954 thousand as of December 31, 2024, indicating a decrease of approximately 9.3%[62] - The balance of common stock outstanding decreased from 26,708,000 shares on December 31, 2024, to 25,107,000 shares on September 30, 2025, a reduction of approximately 6%[23] Credit Losses and Allowances - The allowance for credit losses on loans was $11,859 thousand as of September 30, 2025, compared to $14,780 thousand at December 31, 2024, indicating a reduction of approximately 19.5%[17] - The total allowance for credit losses at the end of the period was $11,859 thousand, with a beginning balance of $13,787 thousand, indicating a reduction of approximately 14.0%[70] - The allowance for credit losses for commercial real estate loans decreased due to lower loan balances, resulting in a reduction in estimated credit losses over the remaining life of such loans[73] - The Company maintains a separate allowance for credit losses from off-balance sheet credit exposures, which includes letters of credit and unfunded loan commitments[48] Dividends - The company declared dividends of $0.46 per share for the three months ended September 30, 2025, compared to $0.44 per share in the same period of 2024, reflecting an increase of 4.5%[19] - The company paid dividends of $35,473,000 for the nine months ended September 30, 2025, consistent with the previous year's payment of $35,216,000[26] Loans and Credit Quality - The total outstanding loans decreased to $741,579 thousand as of September 30, 2025, from $820,300 thousand as of December 31, 2024, reflecting a decline of approximately 9.6%[70] - The total loans reported as past due (30-59 days) amounted to $2,463 thousand as of September 30, 2025[75] - The company’s Loan Review Department performs continuous evaluations of loans throughout the year to assess credit risk[74] - The credit risk profile showed total loans of $741,579 thousand, with $728,110 thousand classified as "pass" grade[75] - The company did not make any loan modifications for borrowers experiencing financial difficulty during the three and nine months ended September 30, 2025[77] Debt Securities - The Company classifies its debt securities into three categories: trading, available for sale, and held to maturity, with held to maturity securities recorded at cost adjusted for amortization[31] - As of September 30, 2025, total debt securities available for sale amounted to $3,447,173, with a fair value of $3,305,324, reflecting unrealized losses of $143,218[55] - The total debt securities held to maturity included $740,545 in corporate securities, with a fair value of $733,797, showing a decline due to market conditions[55] - The company does not intend to sell any debt securities available for sale with material unrealized losses, indicating a long-term holding strategy[59] Market Conditions and Risks - The company continues to evaluate the impacts of inflation and monetary policy on its operations, highlighting ongoing risks in the banking industry[29] - The company anticipates that future declines in fair values of debt securities could occur if market conditions worsen, including rising interest rates and deteriorating economic conditions[61] - The company continuously monitors interest rate changes and credit ratings, which are critical factors affecting the fair value of its debt securities[61] Other Assets and Liabilities - Total other assets decreased from $280,885 thousand at December 31, 2024, to $246,074 thousand at September 30, 2025[90] - Goodwill remained unchanged at $121,673 thousand as of September 30, 2025, with no impairment recognized during the reporting periods[89] - The Company had access to borrowing from the Federal Reserve up to $647,776 thousand based on collateral pledged as of September 30, 2025[102]