Westamerica Bancorporation Reports Fourth Quarter 2024 Financial Results

January 16, 2025 11:04 ET | Source: Westamerica Bancorporation SAN RAFAEL, Calif., Jan. 16, 2025 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the fourth quarter 2024 of $31.7 million and diluted earnings per common share ("EPS") of $1.19. Fourth quarter 2024 results include an increase to the book tax provision to reconcile the 2023 income tax provision to the filed 2023 tax returns, which reduced EPS $0.01. Fourth quarter 2024 results compare to third quarter 2024 net income of $35.1 million and EPS of $1.31, which included gains from life insurance and sales of other assets equivalent to EPS of $0.04. "Westamerica’s fourth quarter 2024 results benefited from the Company’s valuable low-cost deposit base, of which 47 percent was represented by non-interest bearing checking accounts during the quarter; the annualized cost of funding our loan and bond portfolios was 0.24 percent in the quarter. Operating expenses remained well controlled at 37 percent of total revenues. The Company recognized no provision for credit losses. At December 31, 2024, nonperforming assets were stable at $0.7 million and the allowance for credit losses was $14.8 million” said Chairman, President and CEO David Payne. “Fourth quarter 2024 results generated an annualized 12.1 percent return on average common equity. Shareholders were paid a $0.44 per common share dividend during the fourth quarter 2024,” concluded Payne. Net interest income on a fully-taxable equivalent (FTE) basis was $59.2 million for the fourth quarter 2024, compared to $62.5 million for the third quarter 2024. The annualized yield earned on loans, bonds and cash for the fourth quarter 2024 was 4.25 percent compared to 4.45 percent for the third quarter 2024. The annualized cost of funding the loan and bond portfolios was 0.24 percent for the fourth quarter 2024, compared to 0.37 percent for the third quarter 2024. Noninterest income for the fourth quarter 2024 totaled $10.6 million compared to $11.9 million for the third quarter 2024. Third quarter 2024 results include $1.6 million in gains from life insurance and sales of other assets. Noninterest expenses for the fourth quarter 2024 were $25.9 million compared to $26.3 million for the third quarter 2024. The income tax provision for the fourth quarter 2024 includes a $305 thousand increase to reconcile the 2023 income tax provision to the filed 2023 tax returns. Westamerica Bancorporation’s wholly owned subsidiary Westamerica Bank, operates commercial banking and trust offices throughout Northern and Central California. Westamerica Bancorporation Web Address: www.westamerica.com For additional information contact: Westamerica Bancorporation 1108 Fifth Avenue, San Rafael, CA 94901 Robert A. Thorson – SVP & Treasurer 707-863-6840 investments@westamerica.com FORWARD-LOOKING INFORMATION: The following appears in accordance with the Private Securities Litigation Reform Act of 1995: This press release may contain forward-looking statements about the Company, including descriptions of plans or objectives of its management for future operations, products or services, and forecasts of its revenues, earnings or other measures of economic performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors — many of which are beyond the Company's control — could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. The Company's most recent reports filed with the Securities and Exchange Commission, including the annual report for the year ended December 31, 2023 filed on Form 10-K and quarterly report for the quarter ended September 30, 2024 filed on Form 10-Q, describe some of these factors, including certain credit, interest rate, operational, liquidity and market risks associated with the Company's business and operations. Other factors described in these reports include changes in business and economic conditions, competition, fiscal and monetary policies, disintermediation, cyber security risks, legislation including the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the Sarbanes-Oxley Act of 2002 and the Gramm-Leach-Bliley Act of 1999, and mergers and acquisitions. Forward-looking statements speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date forward looking statements are made. Public Information January 16, 2025 WESTAMERICA BANCORPORATION FINANCIAL HIGHLIGHTS December 31, 2024 1. Net Income Summary. (in thousands except per-share amounts) % Q4'2024Q4'2023ChangeQ3'2024 Net Interest and Loan Fee Income (FTE)$59,247 $69,738 -15.0%$62,465 Provision for Credit Losses - - n/m - Noninterest Income 10,633 10,992 -3.3% 11,925 Noninterest Expense 25,853 25,517 1.3% 26,309 Income Before Taxes (FTE) 44,027 55,213 -20.3% 48,081 Income Tax Provision (FTE) 12,327 15,745 -21.7% 13,024 Net Income$31,700 $39,468 -19.7%$35,057 Average Common Shares Outstanding 26,699 26,662 0.1% 26,685 Diluted Average Common Shares Outstanding 26,701 26,664 0.1% 26,686 Operating Ratios: Basic Earnings Per Common Share$1.19 $1.48 -19.6%$1.31 Diluted Earnings Per Common Share 1.19 1.48 -19.6% 1.31 Return On Assets (a) 2.02% 2.35% 2.16% Return On Common Equity (a) 12.1% 16.7% 13.7% Net Interest Margin (FTE) (a) 4.01% 4.41% 4.08% Efficiency Ratio (FTE) 37.0% 31.6% 35.4% Dividends Paid Per Common Share$0.44 $0.44 0.0%$0.44 Common Dividend Payout Ratio 37% 30% 33% % 12/31'24YTD12/31'23YTDChange Net Interest and Loan Fee Income (FTE)$251,906 $281,673 -10.6% Provision (Reversal of Provision) for Credit Losses (1) 300 (1,150)n/m Noninterest Income 43,155 43,522 -0.8% Noninterest Expense 104,391 103,216 1.1% Income Before Taxes (FTE) 190,370 223,129 -14.7% Income Tax Provision (FTE) 51,734 61,361 -15.7% Net Income$138,636 $161,768 -14.3% Average Common Shares Outstanding 26,685 26,703 -0.1% Diluted Average Common Shares Outstanding 26,686 26,706 -0.1% Operating Ratios: Basic Earnings Per Common Share$5.20 $6.06 -14.2% Diluted Earnings Per Common Share 5.20 6.06 -14.2% Return On Assets 2.15% 2.35% Return On Common Equity 13.8% 18.1% Net Interest Margin (FTE) 4.14% 4.37% Efficiency Ratio (FTE) 35.4% 31.7% Dividends Paid Per Common Share$1.76 $1.72 2.3% Common Dividend Payout Ratio 34% 28% 2. Net Interest Income. (dollars in thousands) % Q4'2024Q4'2023ChangeQ3'2024 Interest and Loan Fee Income (FTE)$62,713 $71,417 -12.2%$68,110 Interest Expense 3,466 1,679 106.4% 5,645 Net Interest and Loan Fee Income (FTE)$59,247 $69,738 -15.0%$62,465 Average Earning Assets$5,850,620 $6,251,143 -6.4%$6,062,174 Average Interest-Bearing Liabilities 2,796,675 2,966,038 -5.7% 2,950,093 Yield on Earning Assets (FTE) (a) 4.25% 4.52% 4.45% Cost of Funds (a) 0.24% 0.11% 0.37% Net Interest Margin (FTE) (a) 4.01% 4.41% 4.08% Interest Expense / Interest-Bearing Liabilities (a) 0.49% 0.22% 0.76% Net Interest Spread (FTE) (a) 3.76% 4.30% 3.69% % 12/31'24YTD12/31'23YTDChange Interest and Loan Fee Income (FTE)$269,325 $285,563 -5.7% Interest Expense 17,419 3,890 347.8% Net Interest and Loan Fee Income (FTE)$251,906 $281,673 -10.6% Average Earning Assets$6,043,966 $6,451,821 -6.3% Average Interest-Bearing Liabilities 2,925,742 3,128,115 -6.5% Yield on Earning Assets (FTE) 4.43% 4.43% Cost of Funds 0.29% 0.06% Net Interest Margin (FTE) 4.14% 4.37% Interest Expense / Interest-Bearing Liabilities 0.60% 0.12% Net Interest Spread (FTE) 3.83% 4.31% 3. Loans & Other Earning Assets. (average volume, dollars in thousands) % Q4'2024Q4'2023ChangeQ3'2024 Total Assets$6,243,799 $6,665,040 -6.3%$6,461,843 Total Earning Assets 5,850,620 6,251,143 -6.4% 6,062,174 Total Loans 821,767 873,635 -5.9% 831,418 Commercial Loans 131,088 139,535 -6.1% 136,160 Commercial Real Estate Loans 503,546 490,645 2.6% 493,272 Consumer Loans 187,133 243,455 -23.1% 201,986 Total Investment Securities 4,557,436 5,182,557 -12.1% 4,736,024 Debt Securities Available for Sale 3,710,378 4,298,396 -13.7% 3,881,678 Debt Securities Held to Maturity 847,058 884,161 -4.2% 854,346 Total Interest-Bearing Cash 471,417 194,951 141.8% 494,732 Loans / Deposits 16.3% 15.7% 16.3% % 12/31'24YTD12/31'23YTDChange Total Assets$6,444,687 $6,871,366 -6.2% Total Earning Assets 6,043,966 6,451,821 -6.3% Total Loans 836,136 912,316 -8.4% Commercial Loans 133,569 153,499 -13.0% Commercial Real Estate Loans 493,282 492,183 0.2% Consumer Loans 209,285 266,634 -21.5% Total Investment Securities 4,833,024 5,334,711 -9.4% Debt Securities Available for Sale 3,973,134 4,436,003 -10.4% Debt Securities Held to Maturity 859,890 898,708 -4.3% Total Interest-Bearing Cash 374,806 204,794 83.0% Loans / Deposits 16.2% 15.8% 4. Deposits, Other Interest-Bearing Liabilities & Equity. (average volume, dollars in thousands) % Q4'2024Q4'2023ChangeQ3'2024 Total Deposits$5,028,363 $5,573,281 -9.8%$5,092,244 Noninterest Demand 2,342,092 2,672,170 -12.4% 2,425,646 Interest-Bearing Transaction 934,876 1,085,864 -13.9% 937,694 Savings 1,666,542 1,713,803 -2.8% 1,639,997 Time greater than $100K 31,541 37,970 -16.9% 32,815 Time less than $100K 53,312 63,474 -16.0% 56,092 Total Short-Term Borrowings 110,404 64,927 70.0% 283,495 Bank Term Funding Program Borrowings - - n/m 167,391 Securities Sold under Repurchase Agreements 110,404 64,927 70.0% 116,104 Shareholders' Equity 1,039,017 938,738 10.7% 1,016,642 Demand Deposits / Total Deposits 46.6% 47.9% 47.6% Transaction & Savings Deposits / Total Deposits 98.3% 98.2% 98.3% % 12/31'24YTD12/31'23YTDChange Total Deposits$5,174,942 $5,787,361 -10.6% Noninterest Demand 2,445,945 2,748,544 -11.0% Interest-Bearing Transaction 977,912 1,156,684 -15.5% Savings 1,660,227 1,766,225 -6.0% Time greater than $100K 33,794 48,076 -29.7% Time less than $100K 57,064 67,832 -15.9% Total Short-Term Borrowings 196,745 89,298 120.3% Bank Term Funding Program Borrowings 107,364 - n/m Securities Sold under Repurchase Agreements 89,381 89,298 0.1% Shareholders' Equity 1,003,242 894,610 12.1% Demand Deposits / Total Deposits 47.3% 47.5% Transaction & Savings Deposits / Total Deposits 98.2% 98.0% 5. Interest Yields Earned & Rates Paid. (dollars in thousands) Q4'2024 AverageIncome/Yield (a) / VolumeExpenseRate (a) Interest & Loan Fee Income Earned: Total Earning Assets (FTE)$5,850,620 $62,713 4.25% Total Loans (FTE) 821,767 11,249 5.45% Commercial Loans (FTE) 131,088 2,107 6.39% Commercial Real Estate Loans 503,546 6,477 5.12% Consumer Loans 187,133 2,665 5.67% Total Investments (FTE) 4,557,436 45,805 3.99% Total Debt Securities Available for Sale (FTE) 3,710,378 37,169 3.97% Corporate Securities 2,038,474 14,011 2.75% Collateralized Loan Obligations 1,037,319 17,689 6.67% Agency Mortgage Backed Securities 240,259 1,688 2.81% Securities of U.S. Government Sponsored Entities 310,617 2,776 3.58% Obligations of States and Political Subdivisions (FTE) 64,575 507 3.14% U.S. Treasury Securities 4,907 63 5.08% Other Debt Securities Available for Sale (FTE) 14,227 435 12.22% Total Debt Securities Held to Maturity (FTE) 847,058 8,636 4.08% Agency Mortgage Backed Securities 60,572 351 2.31% Corporate Securities 734,395 7,815 4.26% Obligations of States and Political Subdivisions (FTE) 52,091 470 3.61% Total Interest-Bearing Cash 471,417 5,659 4.70% Interest Expense Paid: Total Earning Assets 5,850,620 3,466 0.24% Total Interest-Bearing Liabilities 2,796,675 3,466 0.49% Total Interest-Bearing Deposits 2,686,271 3,262 0.48% Interest-Bearing Transaction 934,876 46 0.02% Savings 1,666,542 3,148 0.75% Time less than $100K 53,312 43 0.32% Time greater than $100K 31,541 25 0.31% Total Short-Term Borrowings 110,404 204 0.73% Securities Sold under Repurchase Agreements 110,404 204 0.73% Net Interest Income and Margin (FTE) $59,247 4.01% Q4'2023 AverageIncome/Yield (a) / VolumeExpenseRate (a) Interest & Loan Fee Income Earned: Total Earning Assets (FTE)$6,251,143 $71,417 4.52% Total Loans (FTE) 873,635 11,695 5.31% Commercial Loans (FTE) 139,535 2,503 7.12% Commercial Real Estate Loans 490,645 5,945 4.81% Consumer Loans 243,455 3,247 5.29% Total Investments (FTE) 5,182,557 57,032 4.35% Total Debt Securities Available for Sale (FTE) 4,298,396 48,094 4.42% Corporate Securities 2,129,736 14,687 2.76% Collateralized Loan Obligations 1,508,494 28,041 7.27% Agency Mortgage Backed Securities 264,514 1,627 2.46% Securities of U.S. Government sponsored entities 308,234 2,777 3.60% Obligations of States and Political Subdivisions (FTE) 73,191 549 3.00% Other Debt Securities Available for Sale (FTE) 14,227 413 11.62% Total Debt Securities Held to Maturity (FTE) 884,161 8,938 4.04% Agency Mortgage Backed Securities 81,789 456 2.23% Corporate Securities 727,579 7,816 4.30% Obligations of States and Political Subdivisions (FTE) 74,793 666 3.56% Total Interest-Bearing Cash 194,951 2,690 5.40% Interest Expense Paid: Total Earning Assets 6,251,143 1,679 0.11% Total Interest-Bearing Liabilities 2,966,038 1,679 0.22% Total Interest-Bearing Deposits 2,901,111 1,635 0.22% Interest-Bearing Transaction 1,085,864 128 0.05% Savings 1,713,803 1,431 0.33% Time less than $100K 63,474 51 0.32% Time greater than $100K 37,970 25 0.26% Total Short-Term Borrowings 64,927 44 0.26% Securities Sold under Repurchase Agreements 64,927 44 0.26% Net Interest Income and Margin (FTE) $69,738 4.41% 6. Noninterest Income. (dollars in thousands except per-share amounts) % Q4'2024Q4'2023ChangeQ3'2024 Service Charges on Deposit Accounts$3,501 $3,540 -1.1%$3,585 Merchant Processing Services 2,735 2,863 -4.5% 2,474 Debit Card Fees 1,902 2,067 -8.0% 1,702 Trust Fees 867 764 13.5% 846 ATM Processing Fees 506 622 -18.6% 533 Other Service Fees 428 445 -3.8% 454 Life Insurance Gains - 1 n/m 202 Other Noninterest Income 694 690 0.6% 2,129 Total Noninterest Income$10,633 $10,992 -3.3%$11,925 Operating Ratios: Total Revenue (FTE)$69,880 $80,730 -13.4%$74,390 Noninterest Income / Revenue (FTE) 15.2% 13.6% 16.0% Service Charges / Avg. Deposits (a) 0.28% 0.25% 0.28% Total Revenue (FTE) Per Avg. Common Share (a)$10.41 $12.01 -13.3%$11.09 % 12/31'24YTD12/31'23YTDChange Service Charges on Deposit Accounts$14,025 $14,169 -1.0% Merchant Processing Services 10,449 11,280 -7.4% Debit Card Fees 6,853 7,185 -4.6% Trust Fees 3,318 3,122 6.3% ATM Processing Fees 2,170 2,618 -17.1% Other Service Fees 1,770 1,765 0.3% Life Insurance Gains 202 279 n/m Securities Losses - (125)n/m Other Noninterest Income 4,368 3,229 35.3% Total Noninterest Income$43,155 $43,522 -0.8% Operating Ratios: Total Revenue (FTE)$295,061 $325,195 -9.3% Noninterest Income / Revenue (FTE) 14.6% 13.4% Service Charges / Avg. Deposits 0.27% 0.24% Total Revenue (FTE) Per Avg. Common Share$11.06 $12.18 -9.2% 7. Noninterest Expense. (dollars in thousands) % Q4'2024Q4'2023ChangeQ3'2024 Salaries and Related Benefits$12,461 $12,156 2.5%$12,762 Occupancy and Equipment 5,219 4,958 5.3% 5,256 Outsourced Data Processing 2,610 2,441 6.9% 2,614 Limited Partnership Operating Losses 1,095 1,440 -24.0% 1,210 Professional Fees 369 389 -5.1% 337 Courier Service 692 681 1.6% 682 Other Noninterest Expense 3,407 3,452 -1.3% 3,448 Total Noninterest Expense$25,853 $25,517 1.3%$26,309 Operating Ratios: Noninterest Expense / Avg. Earning Assets (a) 1.76% 1.62% 1.73% Noninterest Expense / Revenues (FTE) 37.0% 31.6% 35.4% % 12/31'24YTD12/31'23YTDChange Salaries and Related Benefits$50,292 $47,871 5.1% Occupancy and Equipment 20,673 20,520 0.7% Outsourced Data Processing 10,271 9,846 4.3% Limited Partnership Operating Losses 5,185 5,754 -9.9% Professional Fees 1,470 1,751 -16.0% Courier Service 2,709 2,652 2.1% Other Noninterest Expense 13,791 14,822 -7.0% Total Noninterest Expense$104,391 $103,216 1.1% Operating Ratios: Noninterest Expense / Avg. Earning Assets 1.73% 1.60% Noninterest Expense / Revenues (FTE) 35.4% 31.7% 8. Allowance for Credit Losses. (dollars in thousands) % Q4'2024Q4'2023ChangeQ3'2024 Average Total Loans$821,767 $873,635 -5.9%$831,418 Beginning of Period Allowance for Credit Losses on Loans (ACLL)$15,318 $17,744 -13.7%$15,952 Provision for Credit Losses - - n/m - Net ACLL Losses (538) (877)-38.7% (634) End of Period ACLL$14,780 $16,867 -12.4%$15,318 Gross ACLL Recoveries / Gross ACLL Losses 63% 60% 62% Net ACLL Losses / Avg. Total Loans (a) -0.26% -0.40% -0.30% % 12/31'24YTD12/31'23YTDChange Average Total Loans$836,136 $912,316 -8.4% Beginning of Period ACLL$16,867 $20,284 -16.8% Provision (Reversal of Provision) for Credit Losses (1) 300 (1,150)n/m Net ACLL Losses (2,387) (2,267)5.3% End of Period ACLL$14,780 $16,867 -12.4% Gross ACLL Recoveries / Gross ACLL Losses 64% 72% Net ACLL Losses / Avg. Total Loans -0.29% -0.25% (dollars in thousands) % 12/31/2412/31/23Change9/30/24 Allowance for Credit Losses on Loans$14,780 $16,867 -12.4%$15,318 Allowance for Credit Losses on Held to Maturity Securities 1 1 49.1% 1 Total Allowance for Credit Losses$14,781 $16,868 -12.4%$15,319 Allowance for Unfunded Credit Commitments$201 $201 0.0%$201 9. Credit Quality. (dollars in thousands) % 12/31/2412/31/23Change9/30/24 Nonperforming Loans: Nonperforming Nonaccrual Loans$201 $401 -49.9%$252 Performing Nonaccrual Loans - 2 n/m - Total Nonaccrual Loans 201 403 -50.1% 252 Accruing Loans 90+ Days Past Due 534 388 37.6% 667 Total Nonperforming Loans$735 $791 -7.1%$919 Total Loans Outstanding$820,300 $866,602 -5.3%$833,967 Total Assets 6,076,274 6,364,592 -4.5% 6,161,143 Loans: Allowance for Credit Losses on Loans$14,780 $16,867 -12.4%$15,318 Allowance for Credit Losses on Loans / Loans 1.80% 1.95% 1.84% Nonperforming Loans / Total Loans 0.09% 0.09% 0.11% 10. Liquidity. At December 31, 2024, the Company had $601,494 thousand in cash balances. During the twelve months ending December 31, 2025, the Company expects to receive $309,000 thousand in principal payments from its debt securities. If additional operational liquidity is required, the Company can pledge debt securities as collateral for borrowing purposes; at December 31, 2024, the Company’s debt securities which qualify as collateral for borrowing totaled $3,534,099 thousand. In the ordinary course of business, the Company pledges debt securities as collateral for certain depository customers; at December 31, 2024, the Company had pledged $726,784 thousand in debt securities for depository customers. In the ordinary course of business, the Company pledges debt securities as collateral for borrowing from the Federal Reserve Bank; at December 31, 2024, the Company had pledged $766,606 thousand in debt securities at the Federal Reserve Bank. During the twelve months ended December 31, 2024, the Company’s average borrowings from the Federal Reserve Bank and other correspondent banks were $107,364 thousand and $-0- thousand, respectively, and at December 31, 2024, the Company had no borrowings from the Federal Reserve Bank or other correspondent banks. At December 31, 2024, the Company had access to borrowing from the Federal Reserve up to $766,606 thousand based on collateral pledged at December 31, 2024. At December 31, 2024, the Company’s estimated unpledged collateral qualifying debt securities totaled $1,597,486 thousand. Debt securities eligible as collateral are shown at market value. (in thousands) 12/31/24 Debt Securities Eligible as Collateral: Corporate Securities $2,539,147 Collateralized Loan Obligations rated AAA 311,650 Obligations of States and Political Subdivisions 113,082 Agency Mortgage Backed Securities 273,148 Securities of U.S. Government Sponsored Entities 292,117 U.S. Treasury Securities 4,955 Total Debt Securities Eligible as Collateral $3,534,099 Debt Securities Pledged as Collateral: Debt Securities Pledged at the Federal Reserve Bank ($766,606) Deposits by Public Entities (726,784) Securities Sold under Repurchase Agreements (434,205) Other (9,018) Total Debt Securities Pledged as Collateral ($1,936,613) Estimated Debt Securities Available to Pledge $1,597,486 11. Capital. (in thousands, except per-share amounts) % 12/31/2412/31/23Change9/30/24 Shareholders' Equity$889,957 $772,894 15.1%$909,040 Total Assets 6,076,274 6,364,592 -4.5% 6,161,143 Shareholders' Equity/ Total Assets 14.65% 12.14% 14.75% Shareholders' Equity/ Total Loans 108.49% 89.19% 109.00% Tangible Common Equity Ratio 12.90% 10.43% 13.03% Common Shares Outstanding 26,708 26,671 0.1% 26,686 Common Equity Per Share$33.32 $28.98 15.0%$34.06 Market Value Per Common Share 52.46 56.41 -7.0% 49.42 (shares in thousands) % Q4'2024Q4'2023ChangeQ3'2024 Share (Issuances) Retirements: Total Shares Retired - - n/m - Average Retirement Price$- $- n/m$- Net Shares Issued (22) (22)n/m (3) % 12/31'24YTD12/31'23YTDChange Total Shares Retired 4 274 n/m Average Retirement Price$45.58 $50.11 n/m Net Shares (Issued) Retired (37) 242 n/m 12. Period-End Balance Sheets. (unaudited, dollars in thousands) % 12/31/2412/31/23Change9/30/24 Assets: Cash and Due from Banks$601,494 $190,314 216.1%$502,945 Debt Securities Available for Sale: Corporate Securities 1,835,937 1,909,548 -3.9% 1,901,617 Collateralized Loan Obligations 982,589 1,484,597 -33.8% 1,078,920 Agency Mortgage Backed Securities 218,026 239,454 -8.9% 227,565 Securities of U.S. Government Sponsored Entities 292,117 294,919 -1.0% 303,609 Obligations of States and Political Subdivisions 62,186 71,283 -12.8% 63,876 U.S. Treasury Securities 4,955 - n/m 4,899 Total Debt Securities Available for Sale 3,395,810 3,999,801 -15.1% 3,580,486 Debt Securities Held to Maturity: Agency Mortgage Backed Securities 57,927 78,565 -26.3% 62,745 Corporate Securities 735,447 728,650 0.9% 733,748 Obligations of States and Political Subdivisions (2) 51,260 71,181 -28.0% 53,768 Total Debt Securities Held to Maturity (2) 844,634 878,396 -3.8% 850,261 Loans 820,300 866,602 -5.3% 833,967 Allowance For Credit Losses on Loans (14,780) (16,867)-12.4% (15,318) Total Loans, net 805,520 849,735 -5.2% 818,649 Premises and Equipment, net 26,133 27,016 -3.3% 26,129 Identifiable Intangibles, net 125 347 -63.9% 178 Goodwill 121,673 121,673 0.0% 121,673 Other Assets 280,885 297,310 -5.5% 260,822 Total Assets$6,076,274 $6,364,592 -4.5%$6,161,143 Liabilities and Shareholders' Equity: Deposits: Noninterest-Bearing$2,333,389 $2,605,844 -10.5%$2,375,958 Interest-Bearing Transaction 953,863 1,072,233 -11.0% 925,455 Savings 1,642,360 1,699,388 -3.4% 1,677,332 Time 82,238 96,802 -15.0% 86,305 Total Deposits 5,011,850 5,474,267 -8.4% 5,065,050 Securities Sold under Repurchase Agreements 120,322 58,162 106.9% 132,487 Total Short-Term Borrowed Funds 120,322 58,162 106.9% 132,487 Other Liabilities 54,145 59,269 -8.6% 54,566 Total Liabilities 5,186,317 5,591,698 -7.2% 5,252,103 Shareholders' Equity: Common Equity: Paid-In Capital 476,506 473,171 0.7% 475,096 Accumulated Other Comprehensive Loss (168,104) (190,282)-11.7% (127,653) Retained Earnings 581,555 490,005 18.7% 561,597 Total Shareholders' Equity 889,957 772,894 15.1% 909,040 Total Liabilities and Shareholders' Equity$6,076,274 $6,364,592 -4.5%$6,161,143 13. Income Statements. (unaudited, in thousands except per-share amounts) % Q4'2024Q4'2023ChangeQ3'2024 Interest and Loan Fee Income: Loans$11,167 $11,606 -3.8%$11,441 Equity Securities 195 174 12.1% 175 Debt Securities Available for Sale 36,843 47,783 -22.9% 40,829 Debt Securities Held to Maturity 8,538 8,799 -3.0% 8,587 Interest-Bearing Cash 5,659 2,690 110.4% 6,762 Total Interest and Loan Fee Income 62,402 71,052 -12.2% 67,794 Interest Expense: Transaction Deposits 46 128 -64.1% 47 Savings Deposits 3,148 1,431 120.0% 2,990 Time Deposits 68 76 -10.5% 76 Bank Term Funding Program Borrowings - - n/m 2,278 Securities Sold under Repurchase Agreements 204 44 359.1% 254 Total Interest Expense 3,466 1,679 106.4% 5,645 Net Interest and Loan Fee Income 58,936 69,373 -15.0% 62,149 Provision for Credit Losses - - n/m - Noninterest Income: Service Charges on Deposit Accounts 3,501 3,540 -1.1% 3,585 Merchant Processing Services 2,735 2,863 -4.5% 2,474 Debit Card Fees 1,902 2,067 -8.0% 1,702 Trust Fees 867 764 13.5% 846 ATM Processing Fees 506 622 -18.6% 533 Other Service Fees 428 445 -3.8% 454 Life Insurance Gains - 1 n/m 202 Other Noninterest Income 694 690 0.6% 2,129 Total Noninterest Income 10,633 10,992 -3.3% 11,925 Noninterest Expense: Salaries and Related Benefits 12,461 12,156 2.5% 12,762 Occupancy and Equipment 5,219 4,958 5.3% 5,256 Outsourced Data Processing 2,610 2,441 6.9% 2,614 Limited Partnership Operating Losses 1,095 1,440 -24.0% 1,210 Professional Fees 369 389 -5.1% 337 Courier Service 692 681 1.6% 682 Other Noninterest Expense 3,407 3,452 -1.3% 3,448 Total Noninterest Expense 25,853 25,517 1.3% 26,309 Income Before Income Taxes 43,716 54,848 -20.3% 47,765 Income Tax Provision 12,016 15,380 -21.9% 12,708 Net Income$31,700 $39,468 -19.7%$35,057 Average Common Shares Outstanding 26,699 26,662 0.1% 26,685 Diluted Average Common Shares Outstanding 26,701 26,664 0.1% 26,686 Per Common Share Data: Basic Earnings$1.19 $1.48 -19.6%$1.31 Diluted Earnings 1.19 1.48 -19.6% 1.31 Dividends Paid 0.44 0.44 0.0% 0.44 % 12/31'24YTD12/31'23YTDChange Interest and Loan Fee Income: Loans$45,286 $47,116 -3.9% Equity Securities 719 630 14.1% Debt Securities Available for Sale 167,842 190,039 -11.7% Debt Securities Held to Maturity 34,502 35,557 -3.0% Interest-Bearing Cash 19,665 10,671 84.3% Total Interest and Loan Fee Income 268,014 284,013 -5.6% Interest Expense: Transaction Deposits 281 457 -38.5% Savings Deposits 10,377 2,993 246.7% Time Deposits 283 320 -11.6% Bank Term Funding Program Borrowings 5,813 - n/m Securities Sold under Repurchase Agreements 665 120 454.2% Total Interest Expense 17,419 3,890 347.8% Net Interest and Loan Fee Income 250,595 280,123 -10.5% Provision (Reversal of Provision) for Credit Losses (1) 300 (1,150)n/m Noninterest Income: Service Charges on Deposit 14,025 14,169 -1.0% Accounts Merchant Processing Services 10,449 11,280 -7.4% Debit Card Fees 6,853 7,185 -4.6% Trust Fees 3,318 3,122 6.3% ATM Processing Fees 2,170 2,618 -17.1% Other Service Fees 1,770 1,765 0.3% Life Insurance Gains 202 279 n/m Securities Losses - (125)n/m Other Noninterest Income 4,368 3,229 35.3% Total Noninterest Income 43,155 43,522 -0.8% Noninterest Expense: Salaries and Related Benefits 50,292 47,871 5.1% Occupancy and Equipment 20,673 20,520 0.7% Outsourced Data Processing 10,271 9,846 4.3% Limited Partnership Operating Losses 5,185 5,754 -9.9% Professional Fees 1,470 1,751 -16.0% Courier Service 2,709 2,652 2.1% Other Noninterest Expense 13,791 14,822 -7.0% Total Noninterest Expense 104,391 103,216 1.1% Income Before Income Taxes 189,059 221,579 -14.7% Income Tax Provision 50,423 59,811 -15.7% Net Income$138,636 $161,768 -14.3% Average Common Shares Outstanding 26,685 26,703 -0.1% Diluted Average Common Shares Outstanding 26,686 26,706 -0.1% Per Common Share Data: Basic Earnings$5.20 $6.06 -14.2% Diluted Earnings 5.20 6.06 -14.2% Dividends Paid 1.76 1.72 2.3% Footnotes and Abbreviations: (1) A recovery in excess of principal charged off on the loan in the first quarter 2023 resulted in a $1,550 thousand reversal of the allowance for credit loss provision in the first quarter 2023. (2) Debt Securities Held To Maturity and Obligations of States and Political Subdivisions are net of related reserve for expected credit losses of $1 thousand at December 31, 2024, September 30, 2024 and December 31, 2023. (FTE) Fully Taxable Equivalent. The Company presents its net interest margin and net interest income on a FTE basis using the current statutory federal tax rate. Management believes the FTE basis is valuable to the reader because the Company’s loan and investment securities portfolios contain a portion of municipal loans and securities that are federally tax exempt. The Company’s tax exempt loans and securities composition may not be similar to that of other banks, therefore in order to reflect the impact of the federally tax exempt loans and securities on the net interest margin and net interest income for comparability with other banks, the Company presents its net interest margin and net interest income on a FTE basis. (a) Annualized

Westamerica Bancorporation Reports Fourth Quarter 2024 Financial Results

FAQ

Why Neutral?

How important is it?

Why Short Term?

Related Companies

Related News