SAN RAFAEL, Calif., April 18, 2024 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (NASDAQ:WABC), parent company of Westamerica Bank, generated net income for the first quarter 2024 of $36.4 million and diluted earnings per common share ("EPS") of $1.37. First quarter 2024 results compare to fourth quarter 2023 net income of $39.5 million and EPS of $1.48.

"Westamerica's first 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 0.20 percent for the first quarter 2024. First quarter 2024 operating expenses remained well controlled at 34 percent of total revenues on a fully-taxable equivalent basis. Our consistent application of conservative loan underwriting practices resulted in relatively stable nonperforming assets totaling $1.5 million," said Chairman, President and CEO David Payne. "First quarter 2024 results generated an annualized 15.2 percent return on average common equity. Shareholders were paid a $0.44 per common share dividend during the first quarter 2024," concluded Payne.

Net interest income on a fully-taxable equivalent (FTE) basis was $66.1 million for the first quarter 2024, compared to $69.7 million for the fourth quarter 2023. The annualized yield earned on loans, bonds and cash for the first quarter 2024 was 4.50 percent compared to 4.52 percent for the fourth quarter 2023. The annualized cost of funding the loan and bond portfolios was 0.20 percent for the first quarter 2024 compared to 0.11 percent for the fourth quarter 2023.

The Company provided $300 thousand for the allowance for credit losses on loans in the first quarter 2024. The Allowance for Credit Losses on Loans was $15.9 million at March 31, 2024.

Noninterest income for the first quarter 2024 totaled $10.1 million compared to $11.0 million for the fourth quarter 2023. Debit card fees declined $524 thousand from the fourth quarter 2023 to the first quarter 2024 due to recognition of an annual volume-based incentive in the fourth quarter 2023. Merchant processing services fees declined $356 thousand from the fourth quarter 2023 to the first quarter 2024 due to reduced processing volumes.

Noninterest expenses for the first quarter 2024 were $26.1 million compared to $25.5 million for the fourth quarter 2023. Salaries and related benefits were $430 thousand higher in the first quarter 2024 compared to the fourth quarter 2023 due to seasonally higher payroll taxes, merit increases and higher welfare benefit costs.

The income tax provision (FTE) for the first quarter 2024 was $13.4 million compared to $15.7 million for the fourth quarter 2023. The fourth quarter 2023 includes a $492 thousand increase to reconcile the 2022 income tax provision to the filed 2022 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 & Chief Financial Officer

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, 2023 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 April 18, 2024

WESTAMERICA BANCORPORATION

FINANCIAL HIGHLIGHTS

March 31, 2024

1. Net Income Summary.

(in thousands except per-share amounts)

Q1'2024

Q1'2023

Change

Q4'2023

Net Interest and Fee Income (FTE)

$66,094

$69,562

-5.0

$69,738

Provision (Reversal

of Provision) for

Credit Losses (1)

300

(1,550

)

n/m

Noninterest Income

10,097

10,549

-4.3

10,992

Noninterest Expense

26,099

26,210

-0.4

25,517

Income Before Taxes (FTE)

49,792

55,451

-10.2

55,213

Income Tax Provision (FTE)

13,375

15,000

-10.8

15,745

Net Income

$36,417

$40,451

-10.0

$39,468

Average Common Shares Outstanding

26,674

26,859

-0.7

26,662

Diluted Average Common Shares Outstanding

26,675

26,866

-0.7

26,664

Operating Ratios:

Basic Earnings Per Common Share

$1.37

$1.51

-9.3

$1.48

Diluted Earnings Per Common Share

1.37

1.51

-9.3

1.48

Return On Assets (a)

2.24

2.31

2.35

Return On Common Equity (a)

15.2

19.1

16.7

Net Interest Margin (FTE) (a)

4.30

4.18

4.41

Efficiency Ratio (FTE)

34.3

32.7

31.6

Dividends Paid Per Common Share

$0.44

$0.42

4.8

$0.44

Common Dividend Payout Ratio

2. Net Interest Income.

(dollars in thousands)

Q1'2024

Q1'2023

Change

Q4'2023

Interest and Fee Income (FTE)

$69,095

$70,033

-1.3

$71,417

Interest Expense

3,001

471

537.2

1,679

Net Interest and Fee Income (FTE)

$66,094

$69,562

-5.0

$69,738

Average Earning Assets

$6,119,368

$6,665,156

-8.2

$6,251,143

Average Interest- Bearing Liabilities

2,955,565

3,287,158

-10.1

2,966,038

Yield on Earning Assets (FTE) (a)

4.50

4.21

4.52

Cost of Funds (a)

0.20

0.03

0.11

Net Interest Margin (FTE) (a)

4.30

4.18

4.41

Interest Expense/

Interest-Bearing Liabilities (a)

0.41

0.06

0.22

Net Interest Spread (FTE) (a)

4.09

4.15

4.30

3. Loans & Other Earning Assets.

(average volume, dollars in thousands)

Q1'2024

Q1'2023

Change

Q4'2023

Total Assets

$6,525,921

$7,112,317

-8.2

$6,665,040

Total Earning Assets

6,119,368

6,665,156

-8.2

6,251,143

Total Loans

853,553

945,864

-9.8

873,635

Commercial Loans

133,422

165,360

-19.3

139,535

Commercial Real Estate Loans

488,989

493,132

-0.8

490,645

Consumer Loans

231,142

287,372

-19.6

243,455

Total Investment Securities

5,098,539

5,548,780

-8.1

5,182,557

Debt Securities Available for Sale

4,224,474

4,636,098

-8.9

4,298,396

Debt Securities Held to Maturity

874,065

912,682

-4.2

884,161

Total Interest-Bearing Cash

167,276

170,512

-1.9

194,951

Loans/Deposits

15.9

15.6

15.7

4. Deposits, Other Interest-Bearing Liabilities & Equity.

(average volume, dollars in thousands)

Q1'2024

Q1'2023

Change

Q4'2023

Total Deposits

$5,379,060

$6,061,923

-11.3

$5,573,281

Noninterest Demand

2,532,381

2,851,600

-11.2

2,672,170

Interest-Bearing Transaction

1,058,292

1,233,439

-14.2

1,085,864

Savings

1,691,716

1,847,428

-8.4

1,713,803

Time greater than $100K

36,135

57,630

-37.3

37,970

Time less than $100K

60,536

71,826

-15.7

63,474

Total Short-Term Borrowings

108,886

76,835

41.7

64,927

Bank Term Funding Program

Borrowings

62,582

n/m

Securities Sold under Repurchase

Agreements

46,304

76,835

-39.7

64,927

Shareholders' Equity

965,840

858,473

12.5

938,738

Demand Deposits/ Total Deposits

47.1

47.0

47.9

Transaction & Savings Deposits / Total Deposits

98.2

97.9

98.2

5. Interest Yields Earned & Rates Paid.

(dollars in thousands)

Q1'2024

Average

Income/

Yield (a) /

Volume

Expense

Rate (a)

Interest & Fee Income Earned:

Total Earning Assets (FTE)

$6,119,368

$69,095

4.50

Total Loans (FTE)

853,553

11,413

5.38

Commercial Loans (FTE)

133,422

2,385

7.19

Commercial Real Estate Loans

488,989

5,911

4.86

Consumer Loans

231,142

3,117

5.42

Total Investments (FTE)

5,098,539

55,399

4.32

Total Debt Securities Available for Sale (FTE)

4,224,474

46,552

4.38

Corporate Securities

2,114,861

14,555

2.75

Collateralized Loan Obligations

1,461,182

26,700

7.23

Agency Mortgage Backed Securities

252,828

1,552

2.45

Securities of U.S. Government sponsored

entities

308,807

2,777

3.60

Obligations of States and Political

Subdivisions (FTE)

72,569

544

3.00

Other Debt Securities Available for Sale (FTE)

14,227

424

11.92

Total Debt Securities Held to Maturity (FTE)

874,065

8,847

4.05

Agency Mortgage Backed Securities

76,062

427

2.25

Corporate Securities

729,273

7,816

4.29

Obligations of States and Political

Subdivisions (FTE)

68,730

604

3.52

Total Interest-Bearing Cash

167,276

2,283

5.40

Interest Expense Paid:

Total Earning Assets

6,119,368

3,001

0.20

Total Interest-Bearing Liabilities

2,955,565

3,001

0.41

Total Interest-Bearing Deposits

2,846,679

2,106

0.30

Interest-Bearing Transaction

1,058,292

119

0.05

Savings

1,691,716

1,917

0.46

Time less than $100K

60,536

0.33

Time greater than $100K

36,135

0.23

Total Short-Term Borrowings

108,886

895

3.30

Bank Term Funding Program

Borrowings

62,582

843

5.40

Securities Sold under Repurchase

Agreements

46,304

0.45

Net Interest Income and

Margin (FTE)

$66,094

4.30

Q1'2023

Average

Income/

Yield (a) /

Volume

Expense

Rate (a)

Interest & Fee Income Earned:

Total Earning Assets (FTE)

$6,665,156

$70,033

4.21

Total Loans (FTE)

945,864

11,834

5.07

Commercial Loans (FTE)

165,360

2,760

6.77

Commercial Real Estate Loans

493,132

5,627

4.63

Consumer Loans

287,372

3,447

4.86

Total Investments (FTE)

5,548,780

56,257

4.06

Total Debt Securities Available for Sale (FTE)

4,636,098

47,114

4.06

Corporate Securities

2,350,403

16,446

2.80

Collateralized Loan Obligations

1,577,260

25,006

6.34

Agency Mortgage Backed Securities

304,863

1,865

2.45

Securities of U.S. Government sponsored

entities

306,441

2,777

3.62

Obligations of States and Political

Subdivisions (FTE)

83,914

637

3.04

Other Debt Securities Available for Sale (FTE)

13,217

383

11.59

Total Debt Securities Held to Maturity (FTE)

912,682

9,143

4.01

Agency Mortgage Backed Securities

101,911

547

2.15

Corporate Securities

722,452

7,815

4.33

Obligations of States and Political

Subdivisions (FTE)

88,319

781

3.54

Total Interest-Bearing Cash

170,512

1,942

4.56

Interest Expense Paid:

Total Earning Assets

6,665,156

471

0.03

Total Interest-Bearing Liabilities

3,287,158

471

0.06

Total Interest-Bearing Deposits

3,210,323

458

0.06

Interest-Bearing Transaction

1,233,439

0.03

Savings

1,847,428

280

0.06

Time less than $100K

71,826

0.28

Time greater than $100K

57,630

0.24

Total Short-Term Borrowings

76,835

0.07

Securities Sold under Repurchase

Agreements

76,835

0.07

Net Interest Income and

Margin (FTE)

$69,562

4.18

6. Noninterest Income.

(dollars in thousands except per-share amounts)

Q1'2024

Q1'2023

Change

Q4'2023

Service Charges on Deposit Accounts

$3,470

$3,465

0.2

$3,540

Merchant Processing Services

2,507

2,637

-4.9

2,863

Debit Card Fees

1,543

1,642

-6.1

2,067

Trust Fees

794

765

3.8

764

ATM Processing Fees

591

654

-9.6

622

Other Service Fees

438

399

9.7

445

Other Noninterest Income

754

987

-23.6

691

Total Noninterest Income

$10,097

$10,549

-4.3

$10,992

Operating Ratios:

Total Revenue (FTE)

$76,191

$80,111

-4.9

$80,730

Noninterest Income/Revenue (FTE)

13.3

13.2

13.6

Service Charges/Avg. Deposits (a)

0.26

0.23

0.25

Total Revenue (FTE) Per Avg.

Common Share (a)

$11.49

$12.10

-5.0

$12.01

7. Noninterest Expense.

(dollars in thousands)

Q1'2024

Q1'2023

Change

Q4'2023

Salaries & Benefits

$12,586

$12,067

4.3

$12,156

Occupancy and Equipment

5,040

5,485

-8.1

4,958

Outsourced Data Processing

2,536

2,444

3.8

2,441

Limited Partnership Operating Losses

1,440

1,434

0.4

1,440

Professional Fees

402

476

-15.5

389

Courier Service

649

615

5.5

681

Other Noninterest Expense

3,446

3,689

-6.6

3,452

Total Noninterest Expense

$26,099

$26,210

-0.4

$25,517

Operating Ratios:

Noninterest Expense/ Avg. Earning Assets (a)

1.72

1.59

1.62

Noninterest Expense/Revenues (FTE)

34.3

32.7

31.6

8. Allowance for Credit Losses.

(dollars in thousands)

Q1'2024

Q1'2023

Change

Q4'2023

Average Total Loans

$853,553

$945,864

-9.8

$873,635

Beginning of Period Allowance for

Credit Losses on Loans (ACLL)

$16,867

$20,284

-16.8

$17,744

Provision (Reversal

of Provision) for

Credit Losses (1)

300

(1,550

)

n/m

Net ACLL (Losses) Recoveries

(1,288

)

775

-266.2

(877

)

End of Period ACLL

$15,879

$19,509

-18.6

$16,867

Gross ACLL Recoveries / Gross ACLL Losses

138

Net ACLL Losses (Recoveries) /

Avg. Total Loans (a)

0.61

-0.33

0.40

(dollars in thousands)

3/31/24

3/31/23

Change

12/31/23

Allowance for Credit Losses on Loans

$15,879

$19,509

-18.6

$16,867

Allowance for Credit Losses on

Held to Maturity Securities

0.0

Total Allowance for Credit Losses

$15,880

$19,510

-18.6

$16,868

Allowance for Unfunded

Credit Commitments

$201

0.0

$201

9. Credit Quality.

(dollars in thousands)

3/31/24

3/31/23

Change

12/31/23

Nonperforming Loans:

Nonperforming Nonaccrual Loans

$957

$207

362.3

$401

Performing Nonaccrual Loans

-85.7

Total Nonaccrual Loans

958

214

347.7

403

Accruing Loans 90+ Days Past Due

525

571

-8.1

388

Total Nonperforming Loans

$1,483

$785

88.9

$791

Total Loans Outstanding

$844,677

$938,628

-10.0

$866,602

Total Assets

6,464,685

6,700,471

-3.5

6,364,592

Loans:

Allowance for Credit Losses on Loans

$15,879

$19,509

-18.6

$16,867

Allowance for Credit Losses on Loans /

Loans

1.88

2.08

1.95

Nonperforming Loans/Total Loans

0.18

0.08

0.09

10. Liquidity.

At March 31, 2024, the Company had $434,250 thousand in cash balances. During the twelve months ending March 31, 2025, the Company expects to receive $303,000 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 March 31, 2024, the Company's debt securities which qualify as collateral for borrowing totaled $3,820,309 thousand. In the ordinary course of business, the Company pledges debt securities as collateral for certain depository customers; at March 31, 2024, the Company had pledged $697,486 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 March 31, 2024, the Company had pledged $863,987 thousand in debt securities at the Federal Reserve Bank. During the Three months ended March 31, 2024, the Company's average borrowings from the Federal Reserve Bank and other correspondent banks were $62,582 thousand and $-0- thousand, respectively, and at March 31, 2024, the Company's borrowings from the Federal Reserve Bank and other correspondent banks were $200,000 thousand and $-0- thousand, respectively. At March 31, 2024, the Company's estimated unpledged collateral qualifying debt securities totaled $1,995,076 thousand. Debt securities eligible as collateral are shown at market value unless otherwise noted.

(in thousands)

3/31/24

Debt Securities Eligible as Collateral:

Corporate Securities

$2,577,324

Collateralized Loan Obligations rated AAA

496,419

Obligations of States and Political Subdivisions

135,051

Agency Mortgage Backed Securities

294,480

Securities of U.S. Government Sponsored Entities

117,035

Securities of U.S. Government Sponsored Entities (Par Value)

200,000

Total Debt Securities Eligible as Collateral

$3,820,309

Debt Securities Pledged as Collateral:

Deposits by Public Entities

($697,846

)

Securities Sold under Repurchase Agreements

(257,936

)

Other

(5,464

)

Total Debt Securities Pledged as Collateral

($961,246

)

Debt Securities Pledged at the Federal Reserve Bank

($863,987

)

Estimated Debt Securities Available to Pledge

$1,995,076

11. Capital.

(in thousands, except per-share amounts)

3/31/24

3/31/23

Change

12/31/23

Shareholders' Equity

$791,691

$642,925

23.1

$772,894

Total Assets

6,464,685

6,700,471

-3.5

6,364,592

Shareholders' Equity/

Total Assets

12.25

9.60

12.14

Shareholders' Equity/

Total Loans

93.73

68.50

89.19

Tangible Common Equity Ratio

10.56

7.92

10.43

Common Shares Outstanding

26,678

26,648

0.1

26,671

Common Equity Per Share

$29.68

$24.13

23.0

$28.98

Market Value Per Common Share

48.88

44.30

10.3

56.41

(shares in thousands)

Q1'2024

Q1'2023

Change

Q4'2023

Share Repurchase Programs:

Total Shares Repurchased / Canceled

274

n/m

Average Repurchase Price

$45.58

$50.11

n/m

Net Shares (Issued) Repurchased

)

265

n/m

(22

)

12. Period-End Balance Sheets.

(unaudited, dollars in thousands)

3/31/24

3/31/23

Change

12/31/23

Assets:

Cash and Due from Banks

$434,250

$195,202

122.5

$190,314

Debt Securities Available for Sale

Corporate Securities

1,879,980

2,019,240

-6.9

1,909,548

Collateralized Loan Obligations

1,420,584

1,542,377

-7.9

1,484,597

Agency Mortgage Backed Securities

225,564

276,078

-18.3

239,454

Securities of U.S. Government sponsored

entities

292,583

297,140

-1.5

294,919

Obligations of States and Political

Subdivisions

70,466

82,678

-14.8

71,283

Total Debt Securities Available for Sale

3,889,177

4,217,513

-7.8

3,999,801

Debt Securities Held to Maturity

Agency Mortgage Backed Securities

73,023

98,006

-25.5

78,565

Corporate Securities

730,350

723,553

0.9

728,650

Obligations of States and Political

Subdivisions (2)

65,352

87,760

-25.5

71,181

Total Debt Securities Held to Maturity (2)

868,725

909,319

-4.5

878,396

Loans

844,677

938,628

-10.0

866,602

Allowance For Credit Losses on Loans

(15,879

)

(19,509

)

-18.6

(16,867

)

Total Loans, net

828,798

919,119

-9.8

849,735

Premises and Equipment, net

26,458

28,331

-6.6

27,016

Identifiable Intangibles, net

291

523

-44.5

347

Goodwill

121,673

0.0

121,673

Other Assets

295,313

308,791

-4.4

297,310

Total Assets

$6,464,685

$6,700,471

-3.5

$6,364,592

Liabilities and Shareholders' Equity:

Deposits:

Noninterest-Bearing

$2,514,161

$2,788,992

-9.9

$2,605,844

Interest-Bearing Transaction

1,066,038

1,201,356

-11.3

1,072,233

Savings

1,681,921

1,783,667

-5.7

1,699,388

Time

92,805

125,300

-25.9

96,802

Total Deposits

5,354,925

5,899,315

-9.2

5,474,267

Bank Term Funding Program

Borrowings

200,000

n/m

Securities Sold under Repurchase

Agreements

50,334

83,088

-39.4

58,162

Total Short-Term Borrowed Funds

250,334

83,088

201.3

58,162

Other Liabilities

67,735

75,143

-9.9

59,269

Total Liabilities

5,672,994

6,057,546

-6.3

5,591,698

Shareholders' Equity:

Common Equity:

Paid-In Capital

473,989

471,159

0.6

473,171

Accumulated Other

Comprehensive Loss

(196,857

)

(231,573

)

-15.0

(190,282

)

Retained Earnings

514,559

403,339

27.6

490,005

Total Shareholders' Equity

791,691

642,925

23.1

772,894

Total Liabilities and

Shareholders' Equity

$6,464,685

$6,700,471

-3.5

$6,364,592

13. Income Statements.

(unaudited, in thousands except per-share amounts)

Q1'2024

Q1'2023

Change

Q4'2023

Interest & Fee Income:

Loans

$11,324

$11,740

-3.5

$11,606

Equity Securities

174

152

14.5

174

Debt Securities Available for Sale

46,243

46,810

-1.2

47,783

Debt Securities Held to Maturity

8,722

8,980

-2.9

8,799

Interest-Bearing Cash

2,283

1,942

17.6

2,690

Total Interest & Fee Income

68,746

69,624

-1.3

71,052

Interest Expense:

Transaction Deposits

119

26.6

128

Savings Deposits

1,917

280

584.6

1,431

Time Deposits

-16.7

Bank Term Funding Program

Borrowings

843

n/m

Securities Sold under Repurchase

Agreements

306.0

Total Interest Expense

3,001

471

537.2

1,679

Net Interest Income

65,745

69,153

-4.9

69,373

Provision (Reversal of Provision)

for Credit Losses (1)

300

(1,550

)

n/m

Noninterest Income:

Service Charges on Deposit Accounts

3,470

3,465

0.2

3,540

Merchant Processing Services

2,507

2,637

-4.9

2,863

Debit Card Fees

1,543

1,642

-6.1

2,067

Trust Fees

794

765

3.8

764

ATM Processing Fees

591

654

-9.6

622

Other Service Fees

438

399

9.7

445

Other Noninterest Income

754

987

-23.6

691

Total Noninterest Income

10,097

10,549

-4.3

10,992

Noninterest Expense:

Salaries and Related Benefits

12,586

12,067

4.3

12,156

Occupancy and Equipment

5,040

5,485

-8.1

4,958

Outsourced Data Processing

2,536

2,444

3.8

2,441

Limited Partnership Operating Losses

1,440

1,434

0.4

1,440

Professional Fees

402

476

-15.5

389

Courier Service

649

615

5.5

681

Other Noninterest Expense

3,446

3,689

-6.6

3,452

Total Noninterest Expense

26,099

26,210

-0.4

25,517

Income Before Income Taxes

49,443

55,042

-10.2

54,848

Income Tax Provision

13,026

14,591

-10.7

15,380

Net Income

$36,417

$40,451

-10.0

$39,468

Average Common Shares Outstanding

26,674

26,859

-0.7

26,662

Diluted Average Common Shares Outstanding

26,675

26,866

-0.7

26,664

Per Common Share Data:

Basic Earnings

$1.37

$1.51

-9.3

$1.48

Diluted Earnings

1.37

1.51

-9.3

1.48

Dividends Paid

0.44

0.42

4.8

0.44

Footnotes and Abbreviations:

(1) A recovery of a previously charged off 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 March 31, 2024, December 31, 2023 and March 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 First Quarter 2024 Financial Results