Westamerica Bancorporation Reports Second Quarter 2024 Financial Results

Core Insights - Westamerica Bancorporation reported a net income of $35.5 million for Q2 2024, with diluted earnings per share (EPS) of $1.33, compared to $36.4 million and EPS of $1.37 in Q1 2024 [3][20] - The company maintained a low cost of funding at 0.35% for Q2 2024, which contributed to an annualized return on average common equity of 14.4% [1][21] - The allowance for credit losses on loans was $16.0 million as of June 30, 2024, with no provision for credit losses recognized in Q2 2024 [2][34] Financial Performance - Net interest income on a fully-taxable equivalent (FTE) basis was $64.1 million for Q2 2024, down from $66.1 million in Q1 2024 [4][20] - Noninterest income increased to $10.5 million in Q2 2024 from $10.1 million in Q1 2024, driven by higher merchant processing and debit card fees [5][27] - Total loans decreased by 9.6% year-over-year to $838.0 million as of June 30, 2024, with significant declines in commercial and consumer loans [10][23] Operational Efficiency - The company operated efficiently, spending 35% of its revenue on operating costs in Q2 2024 [1][17] - Noninterest expenses were reported at $26.1 million for Q2 2024, consistent with Q1 2024 [17][30] - The efficiency ratio improved to 35.0% in Q2 2024 from 34.3% in Q1 2024, indicating better cost management [20][21] Asset Quality - Nonperforming loans totaled $1.6 million as of June 30, 2024, with a nonperforming loans to total loans ratio of 0.19% [34] - The allowance for credit losses on loans decreased by 13.7% year-over-year, reflecting improved credit quality [33][34] Dividends and Shareholder Returns - The company declared a dividend of $0.44 per common share during Q2 2024, an increase of 4.8% from the previous quarter [1][20] - The common dividend payout ratio was 33% for Q2 2024, up from 28% in Q1 2024 [20][21]