SAN RAFAEL, Calif., Jan. 19, 2023 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (NASDAQ:WABC), parent company of Westamerica Bank, generated net income for the fourth quarter 2022 of $39.3 million and diluted earnings per common share ("EPS") of $1.46. Fourth quarter 2022 results compare to net income for third quarter 2022 of $34.8 million and EPS of $1.29, which included a life insurance gain equivalent to EPS of $0.03.

"Westamerica's fourth quarter 2022 results benefited from the Company's valuable low-cost deposit base; the cost of funding our loan and bond portfolios was 0.03 percent in the fourth quarter 2022, unchanged from the prior quarter. Non-interest bearing deposits represented 47 percent of average deposits in the fourth quarter 2022. The fourth quarter also benefited from higher yields on variable-rate bonds, loans and cash. Operating expenses were well controlled and credit quality remained solid with nonperforming assets of $774 thousand at December 31, 2022," said Chairman, President and CEO David Payne. "Fourth quarter 2022 results generated an annualized 18.6 percent return on average common equity. Shareholders were paid a $0.42 per common share dividend during the fourth quarter 2022," concluded Payne.

Net interest income on a fully-taxable equivalent (FTE) basis was $69.2 million for the fourth quarter 2022, compared to $60.8 million for the third quarter 2022. The yield earned on loans, bonds, and cash for the fourth quarter 2022 was 3.98 percent, up from 3.47 percent for the third quarter 2022. The cost of funding the loan, bond, and cash portfolios was 0.03 percent for both the fourth quarter and third quarter of 2022. Variable rate assets at December 31, 2022 included $1.6 billion in collateralized loan obligations for which interest rates reset quarterly, and $192 million in interest-bearing cash balances for which the interest rate changes concurrently with Federal Open Market Committee adjustments to the federal funds rate.

Noninterest income for the fourth quarter 2022 totaled $10.5 million compared to $11.8 million for the third quarter 2022, which included a $923 thousand life insurance gain.

Noninterest expenses for the fourth quarter 2022 were $25.1 million compared to $24.8 million for the third quarter 2022.

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, 2021 filed on Form 10-K and quarterly report for the quarter ended September 30, 2022 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 2011, 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.

WESTAMERICA BANCORPORATION

FINANCIAL HIGHLIGHTS

December 31, 2022

1. Net Income Summary.

(in thousands except per-share amounts)

Q4'2022

Q4'2021

Change

Q3'2022

Net Interest and Fee Income (FTE)

69,155

43,117

60.4

60,780

Provision for Credit Losses

n/m

Noninterest Income

10,463

10,842

-3.5

11,818

Noninterest Expense

25,090

23,912

4.9

24,767

Income Before Taxes (FTE)

54,528

30,047

81.5

47,831

Income Tax Provision (FTE)

15,184

8,327

82.3

13,071

Net Income

39,344

21,720

81.1

34,760

Average Common Shares Outstanding

26,912

26,866

0.2

26,906

Diluted Average Common Shares

26,924

26,875

0.2

26,916

Operating Ratios:

Basic Earnings Per Common Share

1.46

0.81

80.2

1.29

Diluted Earnings Per Common Share

1.46

0.81

80.2

1.29

Return On Assets (a)

2.12

1.17

1.85

Return On Common Equity (a)

18.6

11.2

17.1

Net Interest Margin (FTE) (a)

3.95

2.49

3.44

Efficiency Ratio (FTE)

31.5

44.3

34.1

Dividends Paid Per Common Share

0.42

0.0

0.42

Common Dividend Payout Ratio

12/31'22YTD

12/31'21YTD

Change

Net Interest and Fee Income (FTE)

221,775

174,151

27.3

Provision for Credit Losses

n/m

Noninterest Income (1)

45,121

43,345

4.1

Noninterest Expense

99,361

97,806

1.6

Income Before Taxes (FTE)

167,535

119,690

40.0

Income Tax Provision (FTE)

45,501

33,181

37.1

Net Income

122,034

86,509

41.1

Average Common Shares Outstanding

26,895

26,855

0.1

Diluted Average Common Shares

26,907

26,870

0.1

Operating Ratios:

Basic Earnings Per Common Share

4.54

3.22

41.0

Diluted Earnings Per Common Share

4.54

3.22

41.0

Return On Assets

1.65

1.23

Return On Common Equity

15.2

11.5

Net Interest Margin (FTE)

3.17

2.62

Efficiency Ratio (FTE)

37.2

45.0

Dividends Paid Per Common Share

1.68

1.65

1.8

Common Dividend Payout Ratio

2. Net Interest Income.

(dollars in thousands)

Q4'2022

Q4'2021

Change

Q3'2022

Interest and Fee Income (FTE)

69,630

43,621

59.6

61,267

Interest Expense

475

504

-5.8

487

Net Interest and Fee Income (FTE)

69,155

43,117

60.4

60,780

Average Earning Assets

6,930,584

6,919,528

0.2

7,041,313

Average Interest-

Bearing Liabilities

3,412,189

3,468,111

-1.6

3,520,083

Yield on Earning Assets (FTE) (a)

3.98

2.52

3.47

Cost of Funds (a)

0.03

Net Interest Margin (FTE) (a)

3.95

2.49

3.44

Interest Expense/

Interest-Bearing Liabilities (a)

0.06

0.05

Net Interest Spread (FTE) (a)

3.92

2.46

3.42

12/31'22YTD

12/31'21YTD

Change

Interest and Fee Income (FTE)

223,700

176,106

27.0

Interest Expense

1,925

1,955

-1.5

Net Interest and Fee Income (FTE)

221,775

174,151

27.3

Average Earning Assets

6,992,696

6,632,632

5.4

Average Interest-

Bearing Liabilities

3,506,559

3,317,924

5.7

Yield on Earning Assets (FTE)

3.20

2.65

Cost of Funds

0.03

Net Interest Margin (FTE)

3.17

2.62

Interest Expense/

Interest-Bearing Liabilities

0.05

0.06

Net Interest Spread (FTE)

3.15

2.59

3. Loans & Other Earning Assets.

(average volume, dollars in thousands)

Q4'2022

Q4'2021

Change

Q3'2022

Total Assets

7,353,270

7,334,977

0.2

7,472,304

Total Earning Assets

6,930,584

6,919,528

0.2

7,041,313

Total Loans

964,287

1,097,698

-12.2

989,033

Total Commercial Loans

173,527

259,007

-33.0

190,325

Paycheck Protection Program (PPP) Loans

3,529

68,870

-94.9

10,453

Commercial Loans

169,998

190,137

-10.6

179,872

Commercial RE Loans

492,549

538,177

-8.5

494,717

Consumer Loans

298,211

300,514

-0.8

303,991

Total Investment Securities

5,694,280

4,866,476

17.0

5,552,588

Debt Securities Available for Sale

4,767,459

4,533,494

5.2

4,845,055

Debt Securities Held to Maturity

926,821

332,982

178.3

707,533

Total Interest-Bearing Cash

272,017

955,354

-71.5

499,692

Loans/Deposits

15.2

17.3

15.2

12/31'22YTD

12/31'21YTD

Change

Total Assets

7,413,008

7,039,284

5.3

Total Earning Assets

6,992,696

6,632,632

5.4

Total Loans

997,964

1,195,135

-16.5

Total Commercial Loans

193,481

349,981

-44.7

PPP Loans

17,604

152,149

-88.4

Commercial Loans

175,877

197,832

-11.1

Commercial RE Loans

504,713

546,750

-7.7

Consumer Loans

299,770

298,404

0.5

Total Investment Securities

5,303,646

4,580,468

15.8

Debt Securities Available for Sale

4,747,969

4,169,091

13.9

Debt Securities Held to Maturity

555,677

411,377

35.1

Total Interest-Bearing Cash

691,086

857,029

-19.4

Loans/Deposits

15.6

19.6

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

(average volume, dollars in thousands)

Q4'2022

Q4'2021

Change

Q3'2022

Total Deposits

6,349,401

6,349,137

0.0

6,495,051

Noninterest Demand

3,010,806

3,022,787

-0.4

3,058,662

Interest-Bearing Transaction

1,287,304

1,245,385

3.4

1,308,310

Savings

1,917,370

1,934,220

-0.9

1,989,275

Time greater than $100K

59,720

65,920

-9.4

62,014

Time less than $100K

74,201

80,825

-8.2

76,790

Total Short-Term Borrowings

73,594

141,761

-48.1

83,694

Shareholders' Equity

837,499

766,358

9.3

807,428

Demand Deposits/

Total Deposits

47.4

47.6

47.1

Transaction & Savings

Deposits / Total Deposits

97.9

97.7

97.9

12/31'22YTD

12/31'21YTD

Change

Total Deposits

6,415,626

6,100,848

5.2

Noninterest Demand

3,018,350

2,897,244

4.2

Interest-Bearing Transaction

1,289,956

1,208,269

6.8

Savings

1,967,902

1,842,590

6.8

Time greater than $100K

62,411

69,165

-9.8

Time less than $100K

77,007

83,580

-7.9

Total Short-Term Borrowings

109,283

114,267

-4.4

Other Borrowed Funds

n/m

Shareholders' Equity

802,489

750,669

6.9

Demand Deposits/

Total Deposits

47.0

47.5

Transaction & Savings

Deposits / Total Deposits

97.8

97.5

5. Interest Yields Earned & Rates Paid.

(dollars in thousands)

Q4'2022

Average

Income/

Yield (a) /

Volume

Expense

Rate (a)

Interest & Fee Income Earned

Total Earning Assets (FTE)

6,930,584

69,630

3.98

Total Loans (FTE)

964,287

12,293

5.06

Total Commercial Loans (FTE)

173,527

2,896

6.62

PPP Loans

3,529

408

45.89

Commercial Loans (FTE)

169,998

2,488

5.81

Commercial RE Loans

492,549

5,812

4.68

Consumer Loans

298,211

3,585

4.77

Total Investments (FTE)

5,694,280

54,770

3.81

Total Debt Securities Available for Sale (FTE)

4,767,459

45,531

3.78

Corporate Securities

2,462,131

17,102

2.78

Collateralized Loan Obligations

1,590,164

22,801

5.61

Agency Mortgage Backed Securities

319,843

1,921

2.40

Securities of U.S. Government sponsored entities

297,710

2,690

3.61

Obligations of States and Political Subdivisions (FTE)

84,774

644

3.04

Other Debt Securities Available for Sale (FTE)

12,837

373

11.63

Total Debt Securities Held to Maturity (FTE)

926,821

9,239

3.99

Agency Mortgage Backed Securities

109,100

575

2.11

Corporate Securities

720,752

7,815

4.34

Obligations of States and Political Subdivisions (FTE)

96,969

849

3.50

Total Interest-Bearing Cash

272,017

2,567

3.69

Interest Expense Paid

Total Earning Assets

6,930,584

475

0.03

Total Interest-Bearing Liabilities

3,412,189

475

0.06

Total Interest-Bearing Deposits

3,338,595

463

0.05

Interest-Bearing Transaction

1,287,304

0.03

Savings

1,917,370

280

0.06

Time less than $100K

74,201

0.27

Time greater than $100K

59,720

0.24

Total Short-Term Borrowings

73,594

0.06

Net Interest Income and

Margin (FTE)

69,155

3.95

Q4'2021

Average

Income/

Yield (a) /

Volume

Expense

Rate (a)

Interest & Fee Income Earned

Total Earning Assets (FTE)

6,919,528

43,621

2.52

Total Loans (FTE)

1,097,698

13,223

4.78

Total Commercial Loans (FTE)

259,007

3,187

4.88

PPP Loans

68,870

1,208

6.96

Commercial Loans (FTE)

190,137

1,979

4.13

Commercial RE Loans

538,177

6,492

4.79

Consumer Loans

300,514

3,544

4.68

Total Investments (FTE)

4,866,476

30,032

2.47

Total Debt Securities Available for Sale (FTE)

4,533,494

27,900

2.45

Corporate Securities

2,652,661

18,385

2.77

Collateralized Loan Obligations

1,352,348

6,309

1.83

Agency Mortgage Backed Securities

422,721

2,123

2.01

Obligations of States and Political Subdivisions (FTE)

91,412

717

3.14

Other Debt Securities Available for Sale (FTE)

14,352

366

10.20

Total Debt Securities Held to Maturity (FTE)

332,982

2,132

2.56

Agency Mortgage Backed Securities

158,537

664

1.68

Obligations of States and Political Subdivisions (FTE)

174,445

1,468

3.36

Total Interest-Bearing Cash

955,354

366

0.15

Interest Expense Paid

Total Earning Assets

6,919,528

504

0.03

Total Interest-Bearing Liabilities

3,468,111

504

0.06

Total Interest-Bearing Deposits

3,326,350

479

0.06

Interest-Bearing Transaction

1,245,385

0.03

Savings

1,934,220

282

0.06

Time less than $100K

80,825

0.20

Time greater than $100K

65,920

0.37

Total Short-Term Borrowings

141,761

0.07

Net Interest Income and

Margin (FTE)

43,117

2.49

6. Noninterest Income.

(dollars in thousands except per-share amounts)

Q4'2022

Q4'2021

Change

Q3'2022

Service Charges on Deposits

3,484

3,580

-2.7

3,737

Merchant Processing Services

2,701

3,000

-10.0

2,925

Debit Card Fees

1,704

1,727

-1.4

1,594

Trust Fees

754

844

-10.7

810

ATM Processing Fees

646

488

32.4

594

Other Service Fees

416

449

-7.3

463

Financial Services Commissions

103

7.3

Life Insurance Gains

n/m

923

Other Noninterest Income

648

658

-1.5

693

Total Noninterest Income

10,463

10,842

-3.5

11,818

Total Revenue (FTE)

79,618

53,959

47.6

72,598

Noninterest Income/Revenue (FTE)

13.1

20.1

16.3

Service Charges/Avg. Deposits (a)

0.22

0.23

Total Revenue (FTE) Per Avg.

Common Share (a)

11.74

7.97

47.3

10.70

12/31'22YTD

12/31'21YTD

Change

Service Charges on Deposits

14,490

13,697

5.8

Merchant Processing Services

11,623

11,998

-3.1

Debit Card Fees (1)

7,879

6,859

14.9

Trust Fees

3,216

3,311

-2.9

ATM Processing Fees

2,160

2,280

-5.3

Other Service Fees

1,808

1,884

-4.0

Financial Services Commissions

417

356

17.1

Life Insurance Gains

930

n/m

Securities Gains

n/m

Other Noninterest Income

2,598

2,926

-11.2

Total Noninterest Income

45,121

43,345

4.1

Total Revenue (FTE)

266,896

217,496

22.7

Noninterest Income/Revenue (FTE)

16.9

19.9

Service Charges/Avg. Deposits

0.23

0.22

Total Revenue (FTE) Per Avg./

Common Share

9.92

8.10

22.5

7. Noninterest Expense.

(dollars in thousands)

Q4'2022

Q4'2021

Change

Q3'2022

Salaries & Benefits

11,482

11,436

0.4

11,311

Occupancy and Equipment

5,218

4,692

11.2

5,064

Outsourced Data Processing

2,390

2,357

1.4

2,434

Limited Partnership Operating Losses

1,431

800

78.9

1,431

Professional Fees

574

757

-24.2

582

Courier Service

700

572

22.4

671

Other Noninterest Expense

3,295

3,298

-0.1

3,274

Total Noninterest Expense

25,090

23,912

4.9

24,767

Noninterest Expense/

Avg. Earning Assets (a)

1.44

1.37

1.40

Noninterest Expense/Revenues (FTE)

31.5

44.3

34.1

12/31'22YTD

12/31'21YTD

Change

Salaries & Benefits

46,125

48,011

-3.9

Occupancy and Equipment

19,884

19,139

3.9

Outsourced Data Processing

9,684

9,601

0.9

Limited Partnership Operating Losses

5,724

2,620

118.5

Professional Fees

2,628

3,253

-19.2

Courier Service

2,614

2,177

20.1

Other Noninterest Expense

12,702

13,005

-2.3

Total Noninterest Expense

99,361

97,806

1.6

Noninterest Expense/

Avg. Earning Assets

1.42

1.47

Noninterest Expense/Revenues (FTE)

37.2

45.0

8. Allowance for Credit Losses.

(dollars in thousands)

Q4'2022

Q4'2021

Change

Q3'2022

Average Total Loans

964,287

1,097,698

-12.2

989,033

Beginning of Period Allowance for

Credit Losses on Loans (ACLL)

21,218

23,882

-11.2

22,313

Provision for Credit Losses

n/m

Net ACLL Losses

(940

)

(368

)

n/m

(1,095

)

End of Period ACLL

20,284

23,514

-13.7

21,218

Gross ACLL Recoveries /

Gross ACLL Losses

Net ACLL Losses / Avg. Total Loans (a)

0.39

0.13

0.44

12/31'22YTD

12/31'21YTD

Change

Average Total Loans

997,964

1,195,135

-16.5

Beginning of Period ACLL

23,514

23,854

-1.4

Provision for Credit Losses

n/m

Net ACLL Losses

(3,236

)

(342

)

n/m

End of Period ACLL

20,284

23,514

-13.7

Gross ACLL Recoveries /

Gross ACLL Losses

Net ACLL Losses / Avg. Total Loans

0.32

0.03

(dollars in thousands)

12/31/22

12/31/21

Change

9/30/22

Allowance for Credit Losses on Loans

20,284

23,514

-13.7

21,218

Allowance for Credit Losses on

Held to Maturity Securities

-78.4

Total Allowance for Credit Losses

20,285

23,521

-13.8

21,225

Allowance for Unfunded

Credit Commitments

201

0.0

201

9. Credit Quality.

(dollars in thousands)

12/31/22

12/31/21

Change

9/30/22

Nonperforming Loans:

Nonperforming Nonaccrual

146

265

-44.9

131

Performing Nonaccrual

427

n/m

Total Nonaccrual Loans

146

692

-78.9

197

90+ Days Past Due Accruing Loans

628

339

85.3

769

Total Nonperforming Loans

774

1,031

-24.9

966

Total Loans Outstanding

958,488

1,068,126

-10.3

979,033

Total Assets

6,950,317

7,461,026

-6.8

7,177,025

Loans:

Allowance for Credit Losses on Loans

20,284

23,514

-13.7

21,218

Allowance for Credit Losses on Loans /

Loans

2.12

2.20

2.17

Nonperforming Loans/Total Loans

0.08

0.10

10. Capital.

(in thousands, except per-share amounts)

12/31/22

12/31/21

Change

9/30/22

Shareholders' Equity

602,110

827,102

-27.2

538,988

Total Assets

6,950,317

7,461,026

-6.8

7,177,025

Shareholders' Equity/

Total Assets

8.66

11.09

7.51

Shareholders' Equity/

Total Loans

62.82

77.43

55.05

Tangible Common Equity Ratio

7.03

9.60

5.91

Common Shares Outstanding

26,913

26,866

0.2

26,911

Common Equity Per Share

22.37

30.79

-27.3

20.03

Market Value Per Common Share

59.01

57.73

2.2

52.29

(shares in thousands)

Q4'2022

Q4'2021

Change

Q3'2022

Share Repurchase Programs:

Total Shares Repurchased

n/m

Average Repurchase Price

n/m

Net Shares Issued

)

n/m

(15

)

12/31'22YTD

12/31'21YTD

Change

Total Shares Repurchased

n/m

Average Repurchase Price

58.66

61.09

n/m

Net Shares Issued

(47

)

(59

)

n/m

11. Period-End Balance Sheets.

(unaudited, dollars in thousands)

12/31/22

12/31/21

Change

9/30/22

Assets:

Cash and Due from Banks

294,236

1,132,085

-74.0

413,665

Debt Securities Available for Sale

Corporate Securities

2,099,955

2,746,735

-23.5

2,138,508

Collateralized Loan Obligations

1,572,883

1,386,355

13.5

1,587,622

Agency Mortgage Backed Securities

286,048

411,726

-30.5

296,689

Securities of U.S. Government sponsored entities

290,853

n/m

272,525

Obligations of States and Political Subdivisions

82,004

93,920

-12.7

80,987

Other Debt Securities Available for Sale

119

n/m

Total Debt Securities Available for Sale

4,331,743

4,638,855

-6.6

4,376,331

Debt Securities Held to Maturity

Agency Mortgage Backed Securities

104,852

148,390

-29.3

112,371

Corporate Securities

721,854

n/m

720,154

Obligations of States and Political Subdivisions (2)

89,207

158,006

-43.5

103,742

Total Debt Securities Held to Maturity (2)

915,913

306,396

198.9

936,267

Loans

958,488

1,068,126

-10.3

979,033

Allowance For Credit Losses on Loans

(20,284

)

(23,514

)

-13.7

(21,218

)

Total Loans, net

938,204

1,044,612

-10.2

957,815

Premises and Equipment, net

28,819

31,155

-7.5

29,756

Identifiable Intangibles, net

583

835

-30.2

644

Goodwill

121,673

0.0

121,673

Other Assets

319,146

185,415

72.1

340,874

Total Assets

6,950,317

7,461,026

-6.8

7,177,025

Liabilities and Shareholders' Equity:

Deposits:

Noninterest-Bearing

2,947,277

3,069,080

-4.0

3,069,907

Interest-Bearing Transaction

1,273,143

1,260,869

1.0

1,338,855

Savings

1,874,115

1,940,395

-3.4

1,949,711

Time

130,755

143,612

-9.0

136,783

Total Deposits

6,225,290

6,413,956

-2.9

6,495,256

Short-Term Borrowed Funds

57,792

146,246

-60.5

76,886

Other Liabilities

65,125

73,722

-11.7

65,895

Total Liabilities

6,348,207

6,633,924

-4.3

6,638,037

Shareholders' Equity:

Common Equity:

Paid-In Capital

475,121

471,043

0.9

474,732

Accumulated Other

Comprehensive (Loss) Income

(256,105

)

49,664

n/m

(290,797

)

Retained Earnings

383,094

306,395

25.0

355,053

Total Shareholders' Equity

602,110

827,102

-27.2

538,988

Total Liabilities and

Shareholders' Equity

6,950,317

7,461,026

-6.8

7,177,025

12. Income Statements.

(unaudited, in thousands except per-share amounts)

Q4'2022

Q4'2021

Change

Q3'2022

Interest & Fee Income:

Loans

12,201

13,124

-7.0

12,208

Equity Securities

153

129

18.6

127

Debt Securities Available for Sale

45,216

27,598

63.8

39,100

Debt Securities Held to Maturity

9,061

1,824

396.8

6,625

Interest-Bearing Cash

2,567

366

601.4

2,742

Total Interest & Fee Income

69,198

43,041

60.8

60,802

Interest Expense:

Transaction Deposits

1.1

Savings Deposits

280

282

-0.7

290

Time Deposits

102

-14.7

Short-Term Borrowed Funds

-52.0

Total Interest Expense

475

504

-5.8

487

Net Interest Income

68,723

42,537

61.6

60,315

Provision for Credit Losses

n/m

Noninterest Income:

Service Charges

3,484

3,580

-2.7

3,737

Merchant Processing Services

2,701

3,000

-10.0

2,925

Debit Card Fees

1,704

1,727

-1.4

1,594

Trust Fees

754

844

-10.7

810

ATM Processing Fees

646

488

32.4

594

Other Service Fees

416

449

-7.3

463

Financial Services Commissions

103

7.3

Life Insurance Gains

n/m

923

Other Noninterest Income

648

658

-1.5

693

Total Noninterest Income

10,463

10,842

-3.5

11,818

Noninterest Expense:

Salaries and Benefits

11,482

11,436

0.4

11,311

Occupancy and Equipment

5,218

4,692

11.2

5,064

Outsourced Data Processing

2,390

2,357

1.4

2,434

Limited Partnership Operating Losses

1,431

800

78.9

1,431

Professional Fees

574

757

-24.2

582

Courier Service

700

572

22.4

671

Other Noninterest Expense

3,295

3,298

-0.1

3,274

Total Noninterest Expense

25,090

23,912

4.9

24,767

Income Before Income Taxes

54,096

29,467

83.6

47,366

Income Tax Provision

14,752

7,747

90.4

12,606

Net Income

39,344

21,720

81.1

34,760

Average Common Shares Outstanding

26,912

26,866

0.2

26,906

Diluted Common Shares Outstanding

26,924

26,875

0.2

26,916

Per Common Share Data:

Basic Earnings

1.46

0.81

80.2

1.29

Diluted Earnings

1.46

0.81

80.2

1.29

Dividends Paid

0.42

0.0

0.42

12/31'22YTD

12/31'21YTD

Change

Interest & Fee Income:

Loans

49,682

57,558

-13.7

Equity Securities

537

458

17.2

Debt Securities Available for Sale

144,646

105,420

37.2

Debt Securities Held to Maturity

19,101

8,875

115.2

Interest-Bearing Cash

7,790

1,132

588.2

Total Interest & Fee Income

221,756

173,443

27.9

Interest Expense:

Transaction Deposits

369

378

-2.4

Savings Deposits

1,141

1,067

6.9

Time Deposits

336

432

-22.2

Short-Term Borrowed Funds

1.3

Total Interest Expense

1,925

1,955

-1.5

Net Interest Income

219,831

171,488

28.2

Provision for Credit Losses

n/m

Noninterest Income:

Service Charges

14,490

13,697

5.8

Merchant Processing Services

11,623

11,998

-3.1

Debit Card Fees (1)

7,879

6,859

14.9

Trust Fees

3,216

3,311

-2.9

ATM Processing Fees

2,160

2,280

-5.3

Other Service Fees

1,808

1,884

-4.0

Financial Services Commissions

417

356

17.1

Life Insurance Gains

930

n/m

Securities Gains

n/m

Other Operating

2,598

2,926

-11.2

Total Noninterest Income

45,121

43,345

4.1

Noninterest Expense:

Salaries and Benefits

46,125

48,011

-3.9

Occupancy and Equipment

19,884

19,139

3.9

Outsourced Data Processing

9,684

9,601

0.9

Limited Partnership Operating Losses

5,724

2,620

118.5

Professional Fees

2,628

3,253

-19.2

Courier Service

2,614

2,177

20.1

Other Operating

12,702

13,005

-2.3

Total Noninterest Expense

99,361

97,806

1.6

Income Before Income Taxes

165,591

117,027

41.5

Income Tax Provision

43,557

30,518

42.7

Net Income

122,034

86,509

41.1

Average Common Shares Outstanding

26,895

26,855

0.1

Diluted Common Shares Outstanding

26,907

26,870

0.1

Per Common Share Data:

Basic Earnings

4.54

3.22

41.0

Diluted Earnings

4.54

3.22

41.0

Dividends Paid

1.68

1.65

1.8

Footnotes and Abbreviations:

(1) The Company received a $1.2 million reconciling payment from a payments network in the first quarter 2022.

(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, 2022, $7 thousand at September 30, 2022 and December 31, 2021.

(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 relatively large 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

Certain amounts in prior periods have been reclassified to conform to the current presentation.

Westamerica Bancorporation Reports Fourth Quarter 2022 Financial Results