Westamerica Bancorporation Reports Third Quarter 2024 Financial Results

Core Viewpoint - Westamerica Bancorporation reported a net income of $35.1 million for Q3 2024, slightly down from $35.5 million in Q2 2024, with diluted earnings per share (EPS) of $1.31 compared to $1.33 in the previous quarter [1][2]. Financial Performance - The net interest income on a fully-taxable equivalent (FTE) basis was $62.5 million for Q3 2024, down from $64.1 million in Q2 2024, reflecting a 13.4% decrease year-over-year [3][5]. - Noninterest income for Q3 2024 totaled $11.9 million, an increase from $10.5 million in Q2 2024, driven by $1.6 million in gains from life insurance and asset sales [3][22]. - Operating expenses were maintained at 35% of total revenues in Q3 2024, with noninterest expenses slightly increasing to $26.3 million from $26.1 million in Q2 2024 [2][3]. Asset Quality - The company recognized no provision for credit losses in Q3 2024, with nonperforming assets stable at $0.9 million and an allowance for credit losses of $15.3 million [2][3]. - The annualized return on average common equity was reported at 13.7% for Q3 2024, down from 14.4% in Q2 2024 [2][5]. Dividends and Shareholder Returns - Shareholders received a dividend of $0.44 per common share during Q3 2024, consistent with the previous quarter [2][5]. - The common dividend payout ratio was reported at 33% for Q3 2024, unchanged from Q2 2024 [5][9]. Deposits and Funding - Total deposits decreased to $5.09 billion in Q3 2024, down 11.0% from $5.72 billion in Q3 2023 [5][17]. - The company’s low-cost deposit base included 48% non-interest bearing checking accounts, with an annualized cost of funding the loan and bond portfolios at 0.37% for Q3 2024 [2][3]. Loan and Investment Portfolio - Total loans decreased to $831.4 million in Q3 2024, down 8.0% from $903.9 million in Q3 2023 [5][14]. - Total investment securities were reported at $4.74 billion, a decrease of 9.7% year-over-year [5][14].