Westamerica Bancorporation Reports Third Quarter 2024 Financial Results
SAN RAFAEL, Calif., Oct. 17, 2024 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (NASDAQ:WABC), parent company of Westamerica Bank, generated net income for the third quarter 2024 of $35.1 million and diluted earnings per common share ("EPS") of $1.31, which includes gains from life insurance and sales of other assets equivalent to $0.04 EPS. Third quarter 2024 results compare to second quarter 2024 net income of $35.5 million and EPS of $1.33.
"Westamerica's third quarter 2024 results benefited from the Company's valuable low-cost deposit base, of which 48 percent was represented by non-interest bearing checking accounts during the quarter; the annualized cost of funding our loan and bond portfolios was 0.37 percent in the quarter. Operating expenses remained well controlled at 35 percent of total revenues in the third quarter 2024. The Company recognized no provision for credit losses in the third quarter 2024. At September 30, 2024, nonperforming assets were stable at $0.9 million and the allowance for credit losses was $15.3 million," said Chairman, President and CEO David Payne. "Third quarter 2024 results generated an annualized 13.7 percent return on average common equity. Shareholders were paid a $0.44 per common share dividend during the third quarter 2024," concluded Payne.
Net interest income on a fully-taxable equivalent (FTE) basis was $62.5 million for the third quarter 2024, compared to $64.1 million for the second quarter 2024. The annualized yield earned on loans, bonds and cash for the third quarter 2024 was 4.45 percent compared to 4.50 percent for the second quarter 2024. The annualized cost of funding the loan and bond portfolios was 0.37 percent for the third quarter 2024, compared to 0.35 percent for the second quarter 2024.
Noninterest income for the third quarter 2024 totaled $11.9 million compared to $10.5 million for the second quarter 2024. Third quarter 2024 results include $1.6 million in gains from life insurance and sales of other assets.
Noninterest expenses for the third quarter 2024 were $26.3 million compared to $26.1 million for the second quarter 2024.
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 Bancorporation1108 Fifth Avenue, San Rafael, CA 94901Robert A. Thorson, SVP &
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 June 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 October 17, 2024
WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
September 30, 2024
1. Net Income Summary.
(in thousands except per-share amounts)
%
Q3'2024
Q3'2023
Change
Q2'2024
Net Interest and Loan Fee
Income (FTE)
$
62,465
$
72,092
-13.4
%
$
64,100
Provision for
Credit Losses
-
400
n/m
-
Noninterest Income
11,925
11,281
5.7
%
10,500
Noninterest Expense
26,309
25,650
2.6
%
26,130
Income Before Taxes (FTE)
48,081
57,323
-16.1
%
48,470
Income Tax Provision (FTE)
13,024
15,722
-17.2
%
13,008
Net Income
$
35,057
$
41,601
-15.7
%
$
35,462
Average Common Shares
Outstanding
26,685
26,648
0.1
%
26,680
Diluted Average Common
Shares Outstanding
26,686
26,650
0.1
%
26,681
Operating Ratios:
Basic Earnings Per Common
Share
$
1.31
$
1.56
-16.0
%
$
1.33
Diluted Earnings Per
Common Share
1.31
1.56
-16.0
%
1.33
Return On Assets (a)
2.16
%
2.41
%
2.18
%
Return On Common
Equity (a)
13.7
%
18.3
%
14.4
%
Net Interest Margin (FTE) (a)
4.08
%
4.43
%
4.15
%
Efficiency Ratio (FTE)
35.4
%
30.8
%
35.0
%
Dividends Paid Per Common
Share
$
0.44
$
0.44
0.0
%
$
0.44
Common Dividend Payout
Ratio
33
%
28
%
33
%
%
9/30'24YTD
9/30'23YTD
Change
Net Interest and Loan Fee
Income (FTE)
$
192,659
$
211,935
-9.1
%
Provision (Reversal
of Provision) for
Credit Losses (1)
300
(1,150
)
n/m
Noninterest Income
32,522
32,530
-0.0
%
Noninterest Expense
78,538
77,699
1.1
%
Income Before Taxes (FTE)
146,343
167,916
-12.8
%
Income Tax Provision (FTE)
39,407
45,616
-13.6
%
Net Income
$
106,936
$
122,300
-12.6
%
Average Common Shares
Outstanding
26,680
26,718
-0.1
%
Diluted Average Common
Shares Outstanding
26,681
26,721
-0.1
%
Operating Ratios:
Basic Earnings Per Common
Share
$
4.01
$
4.58
-12.4
%
Diluted Earnings Per
Common Share
4.01
4.58
-12.4
%
Return On Assets (a)
2.19
%
2.36
%
Return On Common
Equity (a)
14.4
%
18.6
%
Net Interest Margin (FTE) (a)
4.18
%
4.32
%
Efficiency Ratio (FTE)
34.9
%
31.8
%
Dividends Paid Per Common
Share
$
1.32
$
1.28
3.1
%
Common Dividend Payout
Ratio
33
%
28
%
2. Net Interest Income.
(dollars in thousands)
%
Q3'2024
Q3'2023
Change
Q2'2024
Interest and Loan Fee
Income (FTE)
$
68,110
$
73,225
-7.0
%
$
69,407
Interest Expense
5,645
1,133
398.2
%
5,307
Net Interest and Loan Fee
Income (FTE)
$
62,465
$
72,092
-13.4
%
$
64,100
Average Earning Assets
$
6,062,174
$
6,438,411
-5.8
%
$
6,145,626
Average Interest-Bearing
Liabilities
2,950,093
3,118,632
-5.4
%
3,001,786
Yield on Earning Assets
(FTE) (a)
4.45
%
4.50
%
4.50
%
Cost of Funds (a)
0.37
%
0.07
%
0.35
%
Net Interest Margin (FTE) (a)
4.08
%
4.43
%
4.15
%
Interest Expense /
Interest-Bearing
Liabilities (a)
0.76
%
0.14
%
0.71
%
Net Interest Spread (FTE) (a)
3.69
%
4.36
%
3.79
%
%
9/30'24YTD
9/30'23YTD
Change
Interest and Loan Fee
Income (FTE)
$
206,612
$
214,146
-3.5
%
Interest Expense
13,953
2,211
531.1
%
Net Interest and Loan Fee
Income (FTE)
$
192,659
$
211,935
-9.1
%
Average Earning Assets
$
6,108,885
$
6,519,448
-6.3
%
Average Interest-Bearing
Liabilities
2,969,078
3,182,734
-6.7
%
Yield on Earning Assets
(FTE) (a)
4.48
%
4.36
%
Cost of Funds (a)
0.30
%
0.04
%
Net Interest Margin (FTE) (a)
4.18
%
4.32
%
Interest Expense /
Interest-Bearing
Liabilities (a)
0.63
%
0.09
%
Net Interest Spread (FTE) (a)
3.85
%
4.27
%
3. Loans & Other Earning Assets.
(average volume, dollars in thousands)
%
Q3'2024
Q3'2023
Change
Q2'2024
Total Assets
$
6,461,843
$
6,847,691
-5.6
%
$
6,549,203
Total Earning Assets
6,062,174
6,438,411
-5.8
%
6,145,626
Total Loans
831,418
903,854
-8.0
%
838,016
Commercial Loans
136,160
151,431
-10.1
%
133,605
Commercial Real Estate
Loans
493,272
493,072
0.0
%
487,209
Consumer Loans
201,986
259,351
-22.1
%
217,202
Total Investment Securities
4,736,024
5,247,118
-9.7
%
4,944,191
Debt Securities Available for
Sale
3,881,678
4,353,794
-10.8
%
4,079,896
Debt Securities Held to
Maturity
854,346
893,324
-4.4
%
864,295
Total Interest-Bearing Cash
494,732
287,439
72.1
%
363,419
Loans / Deposits
16.3
%
15.8
%
16.1
%
%
9/30'24YTD
9/30'23YTD
Change
Total Assets
$
6,512,138
$
6,940,897
-6.2
%
Total Earning Assets
6,108,885
6,519,448
-6.3
%
Total Loans
840,961
925,351
-9.1
%
Commercial Loans
134,402
158,204
-15.0
%
Commercial Real Estate
Loans
489,836
492,702
-0.6
%
Consumer Loans
216,723
274,445
-21.0
%
Total Investment Securities
4,925,557
5,385,986
-8.5
%
Debt Securities Available for
Sale
4,061,358
4,482,376
-9.4
%
Debt Securities Held to
Maturity
864,199
903,610
-4.4
%
Total Interest-Bearing Cash
342,367
208,111
64.5
%
Loans / Deposits
16.1
%
15.8
%
4. Deposits, Other Interest-Bearing Liabilities & Equity.
(average volume, dollars in thousands)
%
Q3'2024
Q3'2023
Change
Q2'2024
Total Deposits
$
5,092,244
$
5,722,817
-11.0
%
$
5,202,620
Noninterest Demand
2,425,646
2,721,358
-10.9
%
2,485,023
Interest-Bearing Transaction
937,694
1,149,483
-18.4
%
981,703
Savings
1,639,997
1,741,994
-5.9
%
1,642,806
Time greater than $100K
32,815
43,073
-23.8
%
34,721
Time less than $100K
56,092
66,909
-16.2
%
58,367
Total Short-Term Borrowings
283,495
117,173
141.9
%
284,189
Bank Term Funding Program
Borrowings
167,391
-
n/m
200,000
Securities Sold under
Repurchase Agreements
116,104
117,173
-0.9
%
84,189
Shareholders' Equity
1,016,642
902,300
12.7
%
990,927
Demand Deposits /
Total Deposits
47.6
%
47.6
%
47.8
%
Transaction & Savings
Deposits / Total Deposits
98.3
%
98.1
%
98.2
%
%
9/30'24YTD
9/30'23YTD
Change
Total Deposits
$
5,224,158
$
5,859,506
-10.8
%
Noninterest Demand
2,480,815
2,774,282
-10.6
%
Interest-Bearing Transaction
992,363
1,180,551
-15.9
%
Savings
1,658,106
1,783,891
-7.1
%
Time greater than $100K
34,550
51,481
-32.9
%
Time less than $100K
58,324
69,301
-15.8
%
Total Short-Term Borrowings
225,735
97,510
131.5
%
Bank Term Funding Program
Borrowings
143,412
-
n/m
Securities Sold under
Repurchase Agreements
82,323
97,510
-15.6
%
Shareholders' Equity
991,229
879,740
12.7
%
Demand Deposits /
Total Deposits
47.5
%
47.3
%
Transaction & Savings
Deposits / Total Deposits
98.2
%
97.9
%
5. Interest Yields Earned & Rates Paid.
(dollars in thousands)
Q3'2024
Average
Income/
Yield (a) /
Volume
Expense
Rate (a)
Interest & Loan Fee Income Earned:
Total Earning Assets (FTE)
$
6,062,174
$
68,110
4.45
%
Total Loans (FTE)
831,418
11,526
5.52
%
Commercial Loans (FTE)
136,160
2,393
7.00
%
Commercial Real Estate
Loans
493,272
6,308
5.09
%
Consumer Loans
201,986
2,825
5.57
%
Total Investments (FTE)
4,736,024
49,822
4.17
%
Total Debt Securities
Available for Sale (FTE)
3,881,678
41,133
4.19
%
Corporate Securities
2,074,145
14,268
2.75
%
Collateralized Loan
Obligations
1,166,189
21,459
7.20
%
Agency Mortgage Backed
Securities
244,994
1,638
2.68
%
Securities of U.S.
Government sponsored
entities
310,138
2,777
3.58
%
Obligations of States and
Political Subdivisions
(FTE)
67,141
518
3.08
%
U.S. Treasury Securities
4,844
62
5.13
%
Other Debt Securities
Available for Sale (FTE)
14,227
411
11.55
%
Total Debt ...
