SAN RAFAEL, Calif., July 18, 2024 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (NASDAQ:WABC), parent company of Westamerica Bank, generated net income for the second quarter 2024 of $35.5 million and diluted earnings per common share ("EPS") of $1.33. Second quarter 2024 results compare to first quarter 2024 net income of $36.4 million and EPS of $1.37.

"Westamerica's second quarter 2024 results benefited from the Company's low-cost operating principles. The annualized cost of funding our interest-earning loans, bonds and cash was 0.35 percent for the second quarter 2024. The Company recognized no provision for credit losses due to $73 thousand of net loan recoveries in the second quarter 2024 and $1.6 million in nonperforming loans at June 30, 2024, while the allowance for credit losses on loans was $16.0 million at June 30, 2024. Westamerica operated efficiently, spending 35 percent of its revenue on operating costs in the second quarter 2024", said Chairman, President and CEO David Payne. "Second quarter 2024 results generated an annualized 14.4 percent return on average common equity. Shareholders were paid a $0.44 per common share dividend during the second quarter 2024," concluded Payne.

Net interest income on a fully-taxable equivalent (FTE) basis was $64.1 million for the second quarter 2024, compared to $66.1 million for the first quarter 2024. The annualized yield earned on loans, bonds and cash for the second quarter 2024 was 4.50 percent, unchanged from the first quarter 2024. The annualized cost of funding the loan and bond portfolios was 0.35 percent for the second quarter 2024, compared to 0.20 percent for the first quarter 2024.

The Company provided no provision for credit losses in the second quarter 2024 compared to $300 thousand in the first quarter 2024. The Allowance for Credit Losses on Loans was $16.0 million at June 30, 2024 compared to $15.9 million at March 31, 2024.

Noninterest income for the second quarter 2024 totaled $10.5 million compared to $10.1 million for the first quarter 2024; the increase is attributable to higher merchant processing fees and higher debit card fees.

Noninterest expenses were $26.1 million for the second quarter 2024 and the first quarter 2024.

The income tax rate on a fully-taxable equivalent basis was 26.8 percent for the second quarter 2024 compared to 26.9 percent for the first 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 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 March 31, 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 July 18, 2024

WESTAMERICA BANCORPORATION

FINANCIAL HIGHLIGHTS

June 30, 2024

1. Net Income Summary.

(in thousands except per-share amounts)

Q2'2024

Q2'2023

Change

Q1'2024

Net Interest and Loan Fee

Income (FTE)

64,100

70,281

-8.8

66,094

Provision for

Credit Losses

n/m

300

Noninterest Income

10,500

10,700

-1.9

10,097

Noninterest Expense

26,130

25,839

1.1

26,099

Income Before Taxes (FTE)

48,470

55,142

-12.1

49,792

Income Tax Provision (FTE)

13,008

14,894

-12.7

13,375

Net Income

35,462

40,248

-11.9

36,417

Average Common Shares

Outstanding

26,680

26,648

0.1

26,674

Diluted Average Common

Shares Outstanding

26,681

26,648

0.1

26,675

Operating Ratios:

Basic Earnings Per Common

Share

1.33

1.51

-11.9

1.37

Diluted Earnings Per

Common Share

1.33

1.51

-11.9

1.37

Return On Assets (a)

2.18

2.35

2.24

Return On Common

Equity (a)

14.4

18.4

15.2

Net Interest Margin (FTE) (a)

4.15

4.34

4.30

Efficiency Ratio (FTE)

35.0

31.9

34.3

Dividends Paid Per Common

Share

0.44

0.42

4.8

0.44

Common Dividend Payout

Ratio

6/30'24YTD

6/30'23YTD

Change

Net Interest and Loan Fee

Income (FTE)

130,194

139,843

-6.9

Provision (Reversal

of Provision) for

Credit Losses (1)

300

(1,550

)

n/m

Noninterest Income

20,597

21,249

-3.1

Noninterest Expense

52,229

52,049

0.3

Income Before Taxes (FTE)

98,262

110,593

-11.1

Income Tax Provision (FTE)

26,383

29,894

-11.7

Net Income

71,879

80,699

-10.9

Average Common Shares

Outstanding

26,677

26,753

-0.3

Diluted Average Common

Shares Outstanding

26,678

26,756

-0.3

Operating Ratios:

Basic Earnings Per Common

Share

2.69

3.02

-10.9

Diluted Earnings Per

Common Share

2.69

3.02

-10.9

Return On Assets (a)

2.21

2.33

Return On Common

Equity (a)

14.8

18.7

Net Interest Margin (FTE) (a)

4.23

4.26

Efficiency Ratio (FTE)

34.6

32.3

Dividends Paid Per Common

Share

0.88

0.84

4.8

Common Dividend Payout

Ratio

2. Net Interest and Loan Fee Income (FTE).

(dollars in thousands)

Q2'2024

Q2'2023

Change

Q1'2024

Interest and Loan Fee

Income (FTE)

69,407

70,888

-2.1

69,095

Interest Expense

5,307

607

774.3

3,001

Net Interest and Loan Fee

Income (FTE)

64,100

70,281

-8.8

66,094

Average Earning Assets

6,145,626

6,457,270

-4.8

6,119,368

Average Interest-Bearing

Liabilities

3,001,786

3,144,264

-4.5

2,955,565

Yield on Earning Assets

(FTE) (a)

4.50

4.38

4.50

Cost of Funds (a)

0.35

0.04

0.20

Net Interest Margin (FTE) (a)

4.15

4.34

4.30

Interest Expense /

Interest-Bearing

Liabilities (a)

0.71

0.08

0.41

Net Interest Spread (FTE) (a)

3.79

4.30

4.09

6/30'24YTD

6/30'23YTD

Change

Interest and Loan Fee

Income (FTE)

138,502

140,921

-1.7

Interest Expense

8,308

1,078

670.7

Net Interest and Loan Fee

Income (FTE)

130,194

139,843

-6.9

Average Earning Assets

6,132,497

6,560,639

-6.5

Average Interest-Bearing

Liabilities

2,978,676

3,215,316

-7.4

Yield on Earning Assets

(FTE) (a)

4.50

4.29

Cost of Funds (a)

0.27

0.03

Net Interest Margin (FTE) (a)

4.23

4.26

Interest Expense /

Interest-Bearing

Liabilities (a)

0.56

0.07

Net Interest Spread (FTE) (a)

3.94

4.22

3. Loans & Other Earning Assets.

(average volume, dollars in thousands)

Q2'2024

Q2'2023

Change

Q1'2024

Total Assets

6,549,203

6,865,591

-4.6

6,525,921

Total Earning Assets

6,145,626

6,457,270

-4.8

6,119,368

Total Loans

838,016

926,795

-9.6

853,553

Commercial Loans

133,605

157,975

-15.4

133,422

Commercial Real Estate

Loans

487,209

491,902

-1.0

488,989

Consumer Loans

217,202

276,918

-21.6

231,142

Total Investment Securities

4,944,191

5,365,377

-7.9

5,098,539

Debt Securities Available for

Sale

4,079,896

4,460,339

-8.5

4,224,474

Debt Securities Held to

Maturity

864,295

905,038

-4.5

874,065

Total Interest-Bearing Cash

363,419

165,098

120.1

167,276

Loans / Deposits

16.1

16.0

15.9

6/30'24YTD

6/30'23YTD

Change

Total Assets

6,537,562

6,988,272

-6.4

Total Earning Assets

6,132,497

6,560,639

-6.5

Total Loans

845,785

936,277

-9.7

Commercial Loans

133,514

161,647

-17.4

Commercial Real Estate

Loans

488,099

492,514

-0.9

Consumer Loans

224,172

282,116

-20.5

Total Investment Securities

5,021,365

5,456,572

-8.0

Debt Securities Available for

Sale

4,152,185

4,547,733

-8.7

Debt Securities Held to

Maturity

869,180

908,839

-4.4

Total Interest-Bearing Cash

265,347

167,790

58.1

Loans / Deposits

16.0

15.8

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

(average volume, dollars in thousands)

Q2'2024

Q2'2023

Change

Q1'2024

Total Deposits

5,202,620

5,797,504

-10.3

5,379,060

Noninterest Demand

2,485,023

2,751,319

-9.7

2,532,381

Interest-Bearing Transaction

981,703

1,159,653

-15.3

1,058,292

Savings

1,642,806

1,763,410

-6.8

1,691,716

Time greater than $100K

34,721

53,901

-35.6

36,135

Time less than $100K

58,367

69,221

-15.7

60,536

Total Short-Term Borrowings

284,189

98,079

-14.2

108,886

Bank Term Funding Program

Borrowings

200,000

0.0

62,582

Securities Sold under

Repurchase Agreements

84,189

98,079

0.0

46,304

Shareholders' Equity

990,927

877,964

12.9

965,840

Demand Deposits /

Total Deposits

47.8

47.5

47.1

Transaction & Savings

Deposits / Total Deposits

98.2

97.9

98.2

6/30'24YTD

6/30'23YTD

Change

Total Deposits

5,290,840

5,928,983

-10.8

Noninterest Demand

2,508,702

2,801,183

-10.4

Interest-Bearing Transaction

1,019,998

1,196,342

-14.7

Savings

1,667,261

1,805,187

-7.6

Time greater than $100K

35,427

55,755

-36.5

Time less than $100K

59,452

70,516

-15.7

Total Short-Term Borrowings

196,538

87,516

124.6

Bank Term Funding Program

Borrowings

131,291

n/m

Securities Sold under

Repurchase Agreements

65,247

87,516

-25.4

Shareholders' Equity

978,384

868,272

12.7

Demand Deposits /

Total Deposits

47.4

47.2

Transaction & Savings

Deposits / Total Deposits

98.2

97.9

5. Interest Yields Earned & Rates Paid.

(dollars in thousands)

Q2'2024

Average

Income/

Yield (a) /

Volume

Expense

Rate (a)

Interest & Loan Fee Income Earned:

Total Earning Assets (FTE)

6,145,626

69,407

4.50

Total Loans (FTE)

838,016

11,441

5.49

Commercial Loans (FTE)

133,605

2,418

7.28

Commercial Real Estate

Loans

487,209

6,014

4.96

Consumer Loans

217,202

3,009

5.57

Total Investments (FTE)

4,944,191

53,005

4.27

Total Debt Securities

Available for Sale (FTE)

4,079,896

44,236

4.31

Corporate Securities

2,090,829

14,366

2.75

Collateralized Loan

Obligations

1,347,475

24,620

7.23

Agency Mortgage Backed

Securities

241,391

1,465

2.43

Securities of U.S.

Government sponsored

entities

309,395

2,777

3.59

Obligations of States and

Political Subdivisions

(FTE)

72,319

543

3.01

U.S. Treasury Securities

4,260

5.08

Other Debt Securities

Available for Sale (FTE)

14,227

411

11.55

Total Debt Securities Held to

Maturity (FTE)

864,295

8,769

4.06

Agency Mortgage Backed

Securities

70,804

401

2.27

Corporate Securities

730,978

7,815

4.28

Obligations of States and

Political Subdivisions

(FTE)

62,513

553

3.54

Total Interest-Bearing Cash

363,419

4,961

5.40

Interest Expense Paid:

Total Earning Assets

6,145,626

5,307

0.35

Total Interest-Bearing

Liabilities

3,001,786

5,307

0.71

Total Interest-Bearing

Deposits

2,717,597

2,460

0.36

Interest-Bearing Transaction

981,703

0.03

Savings

1,642,806

2,322

0.57

Time less than $100K

58,367

0.34

Time greater than $100K

34,721

0.23

Total Short-Term Borrowings

284,189

2,847

4.02

Bank Term Funding Program

Borrowings

200,000

2,692

5.40

Securities Sold under

Repurchase Agreements

84,189

155

0.74

Net Interest Income and

Margin (FTE)

64,100

4.15

Q2'2023

Average

Income/

Yield (a) /

Volume

Expense

Rate (a)

Interest & Loan Fee Income Earned:

Total Earning Assets (FTE)

6,457,270

70,888

4.38

Total Loans (FTE)

926,795

11,937

5.17

Commercial Loans (FTE)

157,975

2,777

7.05

Commercial Real Estate

Loans

491,902

5,732

4.67

Consumer Loans

276,918

3,428

4.97

Total Investments (FTE)

5,365,377

56,841

4.22

Total Debt Securities

Available for Sale (FTE)

4,460,339

47,752

4.26

Corporate Securities

2,210,511

15,456

2.80

Collateralized Loan

Obligations

1,555,328

26,754

6.81

Agency Mortgage Backed

Securities

291,270

1,765

2.42

Securities of U.S.

Government sponsored

entities

306,983

2,776

3.62

Obligations of States and

Political Subdivisions

(FTE)

82,074

617

3.00

Other Debt Securities

Available for Sale (FTE)

14,173

384

10.84

Total Debt Securities Held to

Maturity (FTE)

905,038

9,089

4.02

Agency Mortgage Backed

Securities

94,960

510

2.15

Corporate Securities

724,157

7,816

4.32

Obligations of States and

Political Subdivisions

(FTE)

85,921

763

3.56

Total Interest-Bearing Cash

165,098

2,110

5.06

Interest Expense Paid:

Total Earning Assets

6,457,270

607

0.04

Total Interest-Bearing

Liabilities

3,144,264

607

0.08

Total Interest-Bearing

Deposits

3,046,185

582

0.08

Interest-Bearing Transaction

1,159,653

104

0.04

Savings

1,763,410

396

0.09

Time less than $100K

69,221

0.30

Time greater than $100K

53,901

0.23

Total Short-Term Borrowings

98,079

0.10

Securities Sold under

Repurchase Agreements

98,079

0.10

Net Interest Income and

Margin (FTE)

70,281

4.34

6. Noninterest Income.

(dollars in thousands except per-share amounts)

Q2'2024

Q2'2023

Change

Q1'2024

Service Charges on Deposit

Accounts

3,469

3,459

0.3

3,470

Merchant Processing

Services

2,733

2,869

-4.7

2,507

Debit Card Fees

1,706

1,759

-3.0

1,543

Trust Fees

811

810

0.1

794

ATM Processing Fees

540

702

-23.1

591

Other Service Fees

450

458

-1.7

438

Securities Losses

(125

)

n/m

Other Noninterest Income

791

768

3.0

754

Total Noninterest Income

10,500

10,700

-1.9

10,097

Operating Ratios:

Total Revenue (FTE)

74,600

80,981

-7.9

76,191

Noninterest Income /

Revenue (FTE)

14.1

13.2

13.3

Service Charges /

Avg. Deposits (a)

0.27

0.24

0.26

Total Revenue (FTE) Per

Avg. Common Share (a)

11.25

12.19

-7.7

11.49

6/30'24YTD

6/30'23YTD

Change

Service Charges on Deposit

Accounts

6,939

6,924

0.2

Merchant Processing

Services

5,240

5,506

-4.8

Debit Card Fees

3,249

3,401

-4.5

Trust Fees

1,605

1,575

1.9

ATM Processing Fees

1,131

1,356

-16.6

Other Service Fees

888

857

3.6

Securities Losses

(125

)

n/m

Other Noninterest Income

1,545

1,755

-12.0

Total Noninterest Income

20,597

21,249

-3.1

Operating Ratios:

Total Revenue (FTE)

150,791

161,092

-6.4

Noninterest Income /

Revenue (FTE)

13.7

13.2

Service Charges /

Avg. Deposits (a)

0.26

0.24

Total Revenue (FTE) Per

Avg. Common Share (a)

11.37

12.14

-6.4

7. Noninterest Expense.

(dollars in thousands)

Q2'2024

Q2'2023

Change

Q1'2024

Salaries and Related Benefits

12,483

11,828

5.5

12,586

Occupancy and Equipment

5,158

5,012

2.9

5,040

Outsourced Data Processing

2,511

2,488

0.9

2,536

Limited Partnership

Operating Losses

1,440

0.0

1,440

Professional Fees

362

485

-25.4

402

Courier Service

686

611

12.3

649

Other Noninterest Expense

3,490

3,975

-12.2

3,446

Total Noninterest Expense

26,130

25,839

1.1

26,099

Operating Ratios:

Noninterest Expense /

Avg. Earning Assets (a)

1.71

1.60

1.72

Noninterest Expense /

Revenues (FTE)

35.0

31.9

34.3

6/30'24YTD

6/30'23YTD

Change

Salaries and Related Benefits

25,069

23,895

4.9

Occupancy and Equipment

10,198

10,497

-2.8

Outsourced Data Processing

5,047

4,932

2.3

Limited Partnership

Operating Losses

2,880

2,874

0.2

Professional Fees

764

961

-20.5

Courier Service

1,335

1,226

8.9

Other Noninterest Expense

6,936

7,664

-9.5

Total Noninterest Expense

52,229

52,049

0.3

Operating Ratios:

Noninterest Expense /

Avg. Earning Assets (a)

1.71

1.60

Noninterest Expense /

Revenues (FTE)

34.6

32.3

8. Allowance for Credit Losses.

(dollars in thousands)

Q2'2024

Q2'2023

Change

Q1'2024

Average Total Loans

838,016

926,795

-9.6

853,553

Beginning of Period

Allowance for Credit

Losses on Loans (ACLL)

15,879

19,509

-18.6

16,867

Provision for

Credit Losses

n/m

300

Net ACLL Recoveries

(Losses)

(1,029

)

-107.1

(1,288

)

End of Period ACLL

15,952

18,480

-13.7

15,879

Gross ACLL Recoveries /

Gross ACLL Losses

105

Net ACLL (Recoveries)

Losses /

Avg. Total Loans (a)

-0.04

0.45

0.61

6/30'24YTD

6/30'23YTD

Change

Average Total Loans

845,785

936,277

-9.7

Beginning of Period ACLL

16,867

20,284

-16.8

Provision (Reversal

of Provision) for

Credit Losses (1)

300

(1,550

)

n/m

Net ACLL Losses

(1,215

)

(254

)

378.3

End of Period ACLL

15,952

18,480

-13.7

Gross ACLL Recoveries /

Gross ACLL Losses

Net ACLL Losses /

Avg. Total Loans (a)

0.29

0.05

(dollars in thousands)

6/30/24

6/30/23

Change

3/31/24

Allowance for Credit Losses

on Loans

15,952

18,480

-13.7

15,879

Allowance for Credit Losses

on Held to Maturity

Securities

0.0

Total Allowance for Credit

Losses

15,953

18,481

-13.7

15,880

Allowance for Unfunded

Credit Commitments

201

0.0

201

9. Credit Quality.

(dollars in thousands)

6/30/24

6/30/23

Change

3/31/24

Nonperforming Loans:

Nonperforming Nonaccrual

Loans

971

192

405.7

957

Performing Nonaccrual

Loans

n/m

Total Nonaccrual Loans

971

197

392.9

958

Accruing Loans 90+ Days

Past Due

580

656

-11.6

525

Total Nonperforming Loans

1,551

853

81.8

1,483

Total Loans Outstanding

831,842

919,583

-9.5

844,677

Total Assets

6,312,145

6,582,740

-4.1

6,464,685

Loans:

Allowance for Credit Losses

on Loans

15,952

18,480

-13.7

15,879

Allowance for Credit Losses

on Loans / Loans

1.92

2.01

1.88

Nonperforming Loans /

Total Loans

0.19

0.09

0.18

10. Liquidity.

At June 30, 2024, the Company had $486,124 thousand in cash balances. During the twelve months ending June 30, 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 June 30, 2024, the Company's debt securities which qualify as collateral for borrowing totaled $3,693,459 thousand. In the ordinary course of business, the Company pledges debt securities as collateral for certain depository customers; at June 30, 2024, the Company had pledged $759,338 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 June 30, 2024, the Company had pledged $1,067,510 thousand in debt securities at the Federal Reserve Bank. During the six months ended June 30, 2024, the Company's average borrowings from the Federal Reserve Bank and other correspondent banks were $200,000 thousand and $-0- thousand, respectively, and at June 30, 2024, the Company's borrowings from the Federal Reserve Bank and other correspondent banks were $200,000 thousand and $-0- thousand, respectively. At June 30, 2024, the Company had access to borrowing from the Federal Reserve up to $867,510 thousand based on collateral pledged at June 30, 2024. At June 30, 2024, the Company's estimated unpledged collateral qualifying debt securities totaled $1,462,966 thousand. Debt securities eligible as collateral are shown at market value unless otherwise noted.

(in thousands)

6/30/24

Debt Securities Eligible as

Collateral:

Corporate Securities

2,549,866

Collateralized Loan

Obligations rated AAA

405,308

Obligations of States and

Political Subdivisions

130,006

Agency Mortgage Backed

Securities

286,771

Securities of U.S. Government

Sponsored Entities

116,688

Securities of U.S. Government

Sponsored Entities (Par Value)

200,000

U.S. Treasury Securities

4,820

Total Debt Securities Eligible

as Collateral

3,693,459

Debt Securities Pledged

as Collateral:

Deposits by Public Entities

($759,338

)

Securities Sold under

Repurchase Agreements

(394,283

)

Debt Securities Pledged

at the Federal Reserve Bank

($1,067,510

)

Other

(9,362

)

Total Debt Securities Pledged

as Collateral

($2,230,493

)

Estimated Debt Securities

Available to Pledge

1,462,966

11. Capital.

(in thousands, except per-share amounts)

6/30/24

6/30/23

Change

3/31/24

Shareholders' Equity

815,600

651,862

25.1

791,691

Total Assets

6,312,145

6,582,740

-4.1

6,464,685

Shareholders' Equity/

Total Assets

12.92

9.90

12.25

Shareholders' Equity/

Total Loans

98.05

70.89

93.73

Tangible Common Equity

Ratio

11.21

8.20

10.56

Common Shares Outstanding

26,683

26,648

0.1

26,678

Common Equity Per Share

30.57

24.46

25.0

29.68

Market Value Per Common

Share

48.53

38.30

26.7

48.88

(shares in thousands)

Q2'2024

Q2'2023

Change

Q1'2024

Share Repurchase Programs:

Total Shares Repurchased /

Canceled

n/m

Average Repurchase Price

n/m

45.58

Net Shares Issued

)

n/m

)

6/30'24YTD

6/30'23YTD

Change

Total Shares Repurchased /

Canceled

274

n/m

Average Repurchase Price

45.58

50.11

n/m

Net Shares (Issued)

Repurchased

(12

)

265

n/m

12. Period-End Balance Sheets.

(unaudited, dollars in thousands)

6/30/24

6/30/23

Change

3/31/24

Assets:

Cash and Due from Banks

486,124

266,187

82.6

434,250

Debt Securities Available for

Sale:

Corporate Securities

1,855,618

1,901,504

-2.4

1,879,980

Collateralized Loan

Obligations

1,255,110

1,514,962

-17.2

1,420,584

Agency Mortgage Backed

Securities

222,806

259,190

-14.0

225,564

Securities of U.S.

Government sponsored

entities

291,206

291,402

-0.1

292,583

Obligations of States and

Political Subdivisions

69,758

79,400

-12.1

70,466

U.S. Treasury Securities

4,820

n/m

Total Debt Securities

Available for Sale

3,699,318

4,046,458

-8.6

3,889,177

Debt Securities Held to

Maturity:

Agency Mortgage Backed

Securities

67,777

91,141

-25.6

73,023

Corporate Securities

732,049

725,252

0.9

730,350

Obligations of States and

Political Subdivisions (2)

61,042

83,963

-27.3

65,352

Total Debt Securities

Held to Maturity (2)

860,868

900,356

-4.4

868,725

Loans

831,842

919,583

-9.5

844,677

Allowance For Credit Losses

on Loans

(15,952

)

(18,480

)

-13.7

(15,879

)

Total Loans, net

815,890

901,103

-9.5

828,798

Premises and Equipment, net

26,275

27,908

-5.9

26,458

Identifiable Intangibles, net

234

463

-49.5

291

Goodwill

121,673

0.0

121,673

Other Assets

301,763

318,592

-5.3

295,313

Total Assets

6,312,145

6,582,740

-4.1

6,464,685

Liabilities and Shareholders'

Equity:

Deposits:

Noninterest-Bearing

2,459,467

2,721,046

-9.6

2,514,161

Interest-Bearing Transaction

936,186

1,133,006

-17.4

1,066,038

Savings

1,646,781

1,735,083

-5.1

1,681,921

Time

89,006

116,792

-23.8

92,805

Total Deposits

5,131,440

5,705,927

-10.1

5,354,925

Bank Term Funding

Program Borrowings

200,000

-27.4

200,000

Securities Sold under

Repurchase Agreements

100,167

138,005

n/m

50,334

Total Short-Term

Borrowed Funds

300,167

138,005

117.5

250,334

Other Liabilities

64,938

86,946

-25.3

67,735

Total Liabilities

5,496,545

5,930,878

-7.3

5,672,994

Shareholders' Equity:

Common Equity:

Paid-In Capital

474,618

471,510

0.7

473,989

Accumulated Other

Comprehensive Loss

(197,300

)

(252,043

)

-21.7

(196,857

)

Retained Earnings

538,282

432,395

24.5

514,559

Total Shareholders' Equity

815,600

651,862

25.1

791,691

Total Liabilities and

Shareholders' Equity

6,312,145

6,582,740

-4.1

6,464,685

13. Income Statements.

(unaudited, in thousands except per-share amounts)

Q2'2024

Q2'2023

Change

Q1'2024

Interest and Loan Fee Income:

Loans

11,354

11,845

-4.1

11,324

Equity Securities

175

152

15.1

174

Debt Securities Available

for Sale

43,927

47,452

-7.4

46,243

Debt Securities Held to

Maturity

8,655

8,930

-3.1

8,722

Interest-Bearing Cash

4,961

2,110

135.1

2,283

Total Interest and Loan

Fee Income

69,072

70,489

-2.0

68,746

Interest Expense:

Transaction Deposits

104

-33.7

119

Savings Deposits

2,322

396

486.4

1,917

Time Deposits

-15.9

Bank Term Funding Program

Borrowings

2,692

n/m

843

Securities Sold under

Repurchase Agreements

155

509.0

Total Interest Expense

5,307

607

774.3

3,001

Net Interest and Loan

Fee Income

63,765

69,882

-8.8

65,745

Provision for Credit Losses

n/m

300

Noninterest Income:

Service Charges on Deposit

Accounts

3,469

3,459

0.3

3,470

Merchant Processing

Services

2,733

2,869

-4.7

2,507

Debit Card Fees

1,706

1,759

-3.0

1,543

Trust Fees

811

810

0.1

794

ATM Processing Fees

540

702

-23.1

591

Other Service Fees

450

458

-1.7

438

Securities Losses

(125

)

n/m

Other Noninterest Income

791

768

3.0

754

Total Noninterest Income

10,500

10,700

-1.9

10,097

Noninterest Expense:

Salaries and Related Benefits

12,483

11,828

5.5

12,586

Occupancy and Equipment

5,158

5,012

2.9

5,040

Outsourced Data Processing

2,511

2,488

0.9

2,536

Limited Partnership

Operating Losses

1,440

0.0

1,440

Professional Fees

362

485

-25.4

402

Courier Service

686

611

12.3

649

Other Noninterest Expense

3,490

3,975

-12.2

3,446

Total Noninterest Expense

26,130

25,839

1.1

26,099

Income Before Income Taxes

48,135

54,743

-12.1

49,443

Income Tax Provision

12,673

14,495

-12.6

13,026

Net Income

35,462

40,248

-11.9

36,417

Average Common Shares

Outstanding

26,680

26,648

0.1

26,674

Diluted Average Common

Shares Outstanding

26,681

26,648

0.1

26,675

Per Common Share Data:

Basic Earnings

1.33

1.51

-11.9

1.37

Diluted Earnings

1.33

1.51

-11.9

1.37

Dividends Paid

0.44

0.42

4.8

0.44

6/30'24YTD

6/30'23YTD

Change

Interest and Loan Fee Income:

Loans

22,678

23,585

-3.8

Equity Securities

349

304

14.8

Debt Securities Available

for sale

90,170

94,262

-4.3

Debt Securities Held to

Maturity

17,377

17,910

-3.0

Interest-Bearing Cash

7,244

4,052

78.8

Total Interest and Loan

Fee Income

137,818

140,113

-1.6

Interest Expense:

Transaction Deposits

188

198

-5.1

Savings Deposits

4,239

676

527.1

Time Deposits

139

166

-16.3

Bank Term Funding Program

Borrowings

3,535

n/m

Securities Sold under

Repurchase Agreements

207

444.7

Total Interest Expense

8,308

1,078

670.7

Net Interest and Loan

Fee Income

129,510

139,035

-6.9

Provision (Reversal

of Provision) for

Credit Losses (1)

300

(1,550

)

n/m

Noninterest Income:

Service Charges on Deposit

6,939

6,924

0.2

Accounts

Merchant Processing

Services

5,240

5,506

-4.8

Debit Card Fees

3,249

3,401

-4.5

Trust Fees

1,605

1,575

1.9

ATM Processing Fees

1,131

1,356

-16.6

Other Service Fees

888

857

3.6

Securities Losses

(125

)

n/m

Other Noninterest Income

1,545

1,755

-12.0

Total Noninterest Income

20,597

21,249

-3.1

Noninterest Expense:

Salaries and Related Benefits

25,069

23,895

4.9

Occupancy and Equipment

10,198

10,497

-2.8

Outsourced Data Processing

5,047

4,932

2.3

Limited Partnership

Operating Losses

2,880

2,874

0.2

Professional Fees

764

961

-20.5

Courier Service

1,335

1,226

8.9

Other Noninterest Expense

6,936

7,664

-9.5

Total Noninterest Expense

52,229

52,049

0.3

Income Before Income Taxes

97,578

109,785

-11.1

Income Tax Provision

25,699

29,086

-11.6

Net Income

71,879

80,699

-10.9

Average Common Shares

Outstanding

26,677

26,753

-0.3

Diluted Average Common

Shares Outstanding

26,678

26,756

-0.3

Per Common Share Data:

Basic Earnings

2.69

3.02

-10.9

Diluted Earnings

2.69

3.02

-10.9

Dividends Paid

0.88

0.84

4.8

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 June 30, 2024, March 31, 2024 and June 30, 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 Second Quarter 2024 Financial Results