SAN RAFAEL, Calif., Oct. 20, 2022 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (NASDAQ:WABC), parent company of Westamerica Bank, generated net income for the third quarter 2022 of $34.8 million and diluted earnings per common share ("EPS") of $1.29, including a life insurance gain equivalent to EPS of $0.03. Third quarter 2022 net income was 37 percent higher than second quarter 2022 net income of $25.3 million and EPS of $0.94.

"Westamerica's third quarter 2022 results benefited from the Company's variable-rate bonds, cash and loans, as well as our valuable deposit base. With 47 percent of average deposits represented by non-interest bearing checking accounts and limited reliance on time deposits, the cost of funding our loan and bond portfolios was 0.03 percent in the third quarter 2022, unchanged from the prior quarter. Operating expenses were well controlled and credit quality remained solid," said Chairman, President and CEO David Payne. "Third quarter 2022 results generated an annualized 17.1 percent return on average common equity. Shareholders were paid a $0.42 per common share dividend during the third quarter 2022," concluded Payne.

Net interest income on a fully-taxable equivalent (FTE) basis was $60.8 million for the third quarter 2022, compared to $48.0 million for the second quarter 2022. The yield earned on loans and bonds for the third quarter 2022 was 3.47 percent, up from 2.77 percent for the second quarter 2022. The cost of funding the loan and bond portfolios was 0.03 percent for both the third quarter and second quarter of 2022. Variable rate assets at September 30, 2022 included $1.6 billion in collateralized loan obligations for which interest rates reset quarterly, and $304.1 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 third quarter 2022 totaled $11.8 million, including a $923 thousand life insurance gain. Noninterest income for the second quarter 2022 was $11.3 million.

Noninterest expenses for the third quarter 2022 were $24.8 million compared to $24.6 million for the second 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 June 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

September 30, 2022

1. Net Income Summary.
		*(in thousands except per-share amounts)*
								%
		Q3'2022			Q3'2021			Change		Q2'2022

	Net Interest and Fee Income (FTE)	$	60,780		$	43,952		38.3	%	$	48,033
	Provision for Credit Losses		-			-		n/m			-
	Noninterest Income		11,818			11,282		4.8	%		11,264
	Noninterest Expense		24,767			24,697		0.3	%		24,629
	Income Before Taxes (FTE)		47,831			30,537		56.6	%		34,668
	Income Tax Provision (FTE)		13,071			8,474		54.2	%		9,354
	Net Income	$	34,760		$	22,063		57.5	%	$	25,314

	Average Common Shares Outstanding		26,906			26,866		0.1	%		26,889
	Diluted Average Common Shares		26,916			26,875		0.2	%		26,901

	Operating Ratios:
	Basic Earnings Per Common Share	$	1.29		$	0.82		57.3	%	$	0.94
	Diluted Earnings Per Common Share		1.29			0.82		57.3	%		0.94
	Return On Assets (a)		1.85	%		1.22	%				1.37	%
	Return On Common Equity (a)		17.1	%		11.6	%				12.9	%
	Net Interest Margin (FTE) (a)		3.44	%		2.60	%				2.74	%
	Efficiency Ratio (FTE)		34.1	%		44.7	%				41.5	%

	Dividends Paid Per Common Share	$	0.42		$	0.41		2.4	%	$	0.42
	Common Dividend Payout Ratio		33	%		50	%				45	%

								%
		9/30'22YTD			9/30'21YTD			Change

	Net Interest and Fee Income (FTE)	$	152,620		$	131,034		16.5	%
	Provision for Credit Losses		-			-		n/m
	Noninterest Income (1)		34,658			32,503		6.6	%
	Noninterest Expense		74,271			73,894		0.5	%
	Income Before Taxes (FTE)		113,007			89,643		26.1	%
	Income Tax Provision (FTE)		30,317			24,854		22.0	%
	Net Income	$	82,690		$	64,789		27.6	%

	Average Common Shares Outstanding		26,889			26,851		0.1	%
	Diluted Average Common Shares		26,901			26,868		0.1	%

	Operating Ratios:
	Basic Earnings Per Common Share	$	3.08		$	2.41		27.8	%
	Diluted Earnings Per Common Share		3.07			2.41		27.4	%
	Return On Assets (a)		1.49	%		1.25	%
	Return On Common Equity (a)		14.0	%		11.6	%
	Net Interest Margin (FTE) (a)		2.90	%		2.67	%
	Efficiency Ratio (FTE)		39.7	%		45.2	%

	Dividends Paid Per Common Share	$	1.26		$	1.23		2.4	%
	Common Dividend Payout Ratio		41	%		51	%

2. Net Interest Income.
		*(dollars in thousands)*
								%
		Q3'2022			Q3'2021			Change		Q2'2022

	Interest and Fee Income (FTE)	$	61,267		$	44,444		37.9	%	$	48,516
	Interest Expense		487			492		-1.0	%		483
	Net Interest and Fee Income (FTE)	$	60,780		$	43,952		38.3	%	$	48,033

	Average Earning Assets	$	7,041,313		$	6,754,281		4.2	%	$	7,000,862
	Average Interest-Bearing Liabilities		3,520,083			3,370,840		4.4	%		3,549,140

	Yield on Earning Assets (FTE) (a)		3.47	%		2.63	%				2.77	%
	Cost of Funds (a)		0.03	%		0.03	%				0.03	%
	Net Interest Margin (FTE) (a)		3.44	%		2.60	%				2.74	%
	Interest Expense/Interest-Bearing Liabilities (a)		0.05	%		0.06	%				0.05	%
	Net Interest Spread (FTE) (a)		3.42	%		2.57	%				2.72	%

								%
		9/30'22YTD			9/30'21YTD			Change

	Interest and Fee Income (FTE)	$	154,070		$	132,485		16.3	%
	Interest Expense		1,450			1,451		-0.1	%
	Net Interest and Fee Income (FTE)	$	152,620		$	131,034		16.5	%

	Average Earning Assets	$	7,013,627		$	6,535,949		7.3	%
	Average Interest-Bearing Liabilities		3,538,361			3,267,311		8.3	%

	Yield on Earning Assets (FTE) (a)		2.93	%		2.70	%
	Cost of Funds (a)		0.03	%		0.03	%
	Net Interest Margin (FTE) (a)		2.90	%		2.67	%
	Interest Expense/Interest-Bearing Liabilities (a)		0.05	%		0.06	%
	Net Interest Spread (FTE) (a)		2.88	%		2.64	%

3. Loans & Other Earning Assets.

(average volume, dollars in thousands)

Q3'2022

Q3'2021

Change

Q2'2022

Total Assets

7,472,304

7,158,462

4.4

7,420,069

Total Earning Assets

7,041,313

6,754,281

4.2

7,000,862

Total Loans

989,033

1,176,114

-15.9

1,009,633

Total Commercial Loans

190,325

333,327

-42.9

202,585

Paycheck Protection Program (PPP) Loans

10,453

144,641

-92.8

20,997

Commercial Loans

179,872

188,686

-4.7

181,588

Commercial RE Loans

494,717

543,429

-9.0

508,003

Consumer Loans

303,991

299,358

1.5

299,045

Total Investment Securities

5,552,588

4,615,540

20.3

5,008,929

Debt Securities Available For Sale

4,845,055

4,235,141

14.4

4,721,083

Debt Securities Held To Maturity

707,533

380,399

86.0

287,846

Total Interest-Bearing Cash

499,692

962,627

-48.1

982,300

Loans/Deposits

15.2

18.9

15.7

9/30'22YTD

9/30'21YTD

Change

Total Assets

7,433,140

6,939,636

7.1

Total Earning Assets

7,013,627

6,535,949

7.3

Total Loans

1,009,314

1,227,971

-17.8

Total Commercial Loans

200,206

380,638

-47.4

PPP Loans

22,347

180,214

-87.6

Commercial Loans

177,859

200,424

-11.3

Commercial RE Loans

508,812

549,639

-7.4

Consumer Loans

300,296

297,694

0.9

Total Investment Securities

5,172,003

4,484,084

15.3

Debt Securities Available For Sale

4,741,400

4,046,289

17.2

Debt Securities Held To Maturity

430,603

437,795

-1.6

Total Interest-Bearing Cash

832,310

823,894

1.0

Loans/Deposits

15.7

20.4

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

(average volume, dollars in thousands)

Q3'2022

Q3'2021

Change

Q2'2022

Total Deposits

6,495,051

6,223,500

4.4

6,424,202

Noninterest Demand

3,058,662

2,960,207

3.3

2,998,360

Interest-Bearing Transaction

1,308,310

1,246,667

4.9

1,298,665

Savings

1,989,275

1,864,401

6.7

1,985,325

Time greater than $100K

62,014

68,811

-9.9

63,790

Time less than $100K

76,790

83,414

-7.9

78,062

Total Short-Term Borrowings

83,694

107,547

-22.2

123,298

Shareholders' Equity

807,428

755,682

6.8

788,078

Demand Deposits/

Total Deposits

47.1

47.6

46.7

Transaction & Savings

Deposits / Total Deposits

97.9

97.6

97.8

9/30'22YTD

9/30'21YTD

Change

Total Deposits

6,437,943

6,017,175

7.0

Noninterest Demand

3,020,892

2,854,936

5.8

Interest-Bearing Transaction

1,290,850

1,195,762

8.0

Savings

1,984,931

1,811,711

9.6

Time greater than $100K

63,318

70,258

-9.9

Time less than $100K

77,952

84,508

-7.8

Total Short-Term Borrowings

121,310

105,001

15.5

Other Borrowed Funds

n/m

Shareholders' Equity

790,691

745,382

6.1

Demand Deposits/

Total Deposits

46.9

47.4

Transaction & Savings

Deposits / Total Deposits

97.8

97.4

5. Interest Yields Earned & Rates Paid.
		*(dollars in thousands)*
		Q3'2022
		Average		Income/		Yield (a) /
		Volume		Expense		Rate (a)
	Interest & Fee Income Earned
	Total Earning Assets (FTE)	$	7,041,313	$	61,267	3.47	%
	Total Loans (FTE)		989,033		12,298	4.93	%
	Total Commercial Loans (FTE)		190,325		2,843	5.93	%
	PPP Loans		10,453		533	20.24	%
	Commercial Loans (FTE)		179,872		2,310	5.10	%
	Commercial RE Loans		494,717		5,821	4.67	%
	Consumer Loans		303,991		3,634	4.74	%
	Total Investments (FTE)		5,552,588		46,227	3.33	%
	Total Debt Securities Available For Sale (FTE)		4,845,055		39,388	3.22	%
	Corporate Securities		2,518,870		17,404	2.76	%
	Collateralized Loan Obligations		1,600,611		16,355	4.00	%
	Agency Mortgage Backed Securities		336,392		2,001	2.38	%
	Securities of U.S. Government sponsored entities		288,538		2,604	3.61	%
	Obligations of States and Political Subdivisions (FTE)		86,357		660	3.06	%
	Other Debt Securities Available For Sale (FTE)		14,287		364	10.18	%
	Total Debt Securities Held To Maturity (FTE)		707,533		6,839	3.87	%
	Agency Mortgage Backed Securities		117,606		586	1.99	%
	Corporate Securities		477,881		5,230	4.38	%
	Obligations of States and Political Subdivisions (FTE)		112,046		1,023	3.65	%
	Total Interest-Bearing Cash		499,692		2,742	2.15	%

	Interest Expense Paid
	Total Earning Assets		7,041,313		487	0.03	%
	Total Interest-Bearing Liabilities		3,520,083		487	0.05	%
	Total Interest-Bearing Deposits		3,436,389		470	0.05	%
	Interest-Bearing Transaction		1,308,310		94	0.03	%
	Savings		1,989,275		290	0.06	%
	Time less than $100K		76,790		47	0.24	%
	Time greater than $100K		62,014		39	0.25	%
	Total Short-Term Borrowings		83,694		17	0.08	%

	Net Interest Income and Margin (FTE)			$	60,780	3.44	%

		Q3'2021
		Average		Income/		Yield (a) /
		Volume		Expense		Rate (a)
	Interest & Fee Income Earned
	Total Earning Assets (FTE)	$	6,754,281	$	44,444	2.63	%
	Total Loans (FTE)		1,176,114		14,893	5.02	%
	Total Commercial Loans (FTE)		333,327		3,866	4.60	%
	PPP Loans		144,641		1,865	5.12	%
	Commercial Loans (FTE)		188,686		2,001	4.21	%
	Commercial RE Loans		543,429		7,457	5.44	%
	Consumer Loans		299,358		3,570	4.73	%
	Total Investments (FTE)		4,615,540		29,182	2.53	%
	Total Debt Securities Available For Sale (FTE)		4,235,141		26,736	2.51	%
	Corporate Securities		2,506,856		17,974	2.87	%
	Collateralized Loan Obligations		1,148,445		5,631	1.92	%
	Agency Mortgage Backed Securities		470,250		2,022	1.72	%
	Obligations of States and Political Subdivisions (FTE)		95,229		747	3.14	%
	Other Debt Securities Available For Sale (FTE)		14,361		362	10.09	%
	Total Debt Securities Held To Maturity (FTE)		380,399		2,446	2.57	%
	Agency Mortgage Backed Securities		178,381		753	1.69	%
	Obligations of States and Political Subdivisions (FTE)		202,018		1,693	3.35	%
	Total Interest-Bearing Cash		962,627		369	0.15	%

	Interest Expense Paid
	Total Earning Assets		6,754,281		492	0.03	%
	Total Interest-Bearing Liabilities		3,370,840		492	0.06	%
	Total Interest-Bearing Deposits		3,263,293		473	0.06	%
	Interest-Bearing Transaction		1,246,667		101	0.03	%
	Savings		1,864,401		272	0.06	%
	Time less than $100K		83,414		42	0.20	%
	Time greater than $100K		68,811		58	0.33	%
	Total Short-Term Borrowings		107,547		19	0.07	%

	Net Interest Income and Margin (FTE)			$	43,952	2.60	%

6. Noninterest Income.
		*(dollars in thousands except per-share amounts)*
								%
		Q3'2022			Q3'2021			Change		Q2'2022

	Service Charges on Deposits	$	3,737		$	3,578		4.4	%	$	3,687
	Merchant Processing Services		2,925			3,159		-7.4	%		3,374
	Debit Card Fees		1,594			1,740		-8.4	%		1,709
	Trust Fees		810			839		-3.5	%		809
	ATM Processing Fees		594			573		3.7	%		469
	Other Service Fees		463			475		-2.6	%		480
	Financial Services Commissions		79			95		-16.8	%		118
	Life Insurance Gains		923			-		n/m			-
	Other Noninterest Income		693			823		-15.8	%		618
	Total Noninterest Income	$	11,818		$	11,282		4.8	%	$	11,264

	Total Revenue (FTE)	$	72,598		$	55,234		31.4	%	$	59,297
	Noninterest Income/Revenue (FTE)		16.3	%		20.4	%				19.0	%
	Service Charges/Avg. Deposits (a)		0.23	%		0.23	%				0.23	%
	Total Revenue (FTE) Per Avg. Common Share (a)	$	10.70		$	8.16		31.2	%	$	8.85

								%
		9/30'22YTD			9/30'21YTD			Change

	Service Charges on Deposits	$	11,006		$	10,117		8.8	%
	Merchant Processing Services		8,922			8,998		-0.8	%
	Debit Card Fees (1)		6,175			5,132		20.3	%
	Trust Fees		2,462			2,467		-0.2	%
	ATM Processing Fees		1,514			1,792		-15.5	%
	Other Service Fees		1,392			1,435		-3.0	%
	Financial Services Commissions		314			260		20.8	%
	Life Insurance Gains		923			-		n/m
	Securities Gains		-			34		n/m
	Other Noninterest Income		1,950			2,268		-14.0	%
	Total Noninterest Income	$	34,658		$	32,503		6.6	%

	Total Revenue (FTE)	$	187,278		$	163,537		14.5	%
	Noninterest Income/Revenue (FTE)		18.5	%		19.9	%
	Service Charges/Avg. Deposits (a)		0.23	%		0.22	%
	Total Revenue (FTE) Per Avg./Common Share (a)	$	9.31		$	8.14		14.4	%

7. Noninterest Expense.
		*(dollars in thousands)*
								%
		Q3'2022			Q3'2021			Change		Q2'2022

	Salaries & Benefits	$	11,311		$	11,813		-4.2	%	$	11,412
	Occupancy and Equipment		5,064			4,759		6.4	%		4,856
	Outsourced Data Processing		2,434			2,429		0.2	%		2,423
	Limited Partnership Operating Losses		1,431			620		130.8	%		1,431
	Professional Fees		582			724		-19.6	%		736
	Courier Service		671			534		25.7	%		661
	Other Noninterest Expense		3,274			3,818		-14.2	%		3,110
	Total Noninterest Expense	$	24,767		$	24,697		0.3	%	$	24,629

	Noninterest Expense/Avg. Earning Assets (a)		1.40	%		1.45	%				1.41	%
	Noninterest Expense/Revenues (FTE)		34.1	%		44.7	%				41.5	%

								%
		9/30'22YTD			9/30'21YTD			Change

	Salaries & Benefits	$	34,643		$	36,575		-5.3	%
	Occupancy and Equipment		14,666			14,447		1.5	%
	Outsourced Data Processing		7,294			7,244		0.7	%
	Limited Partnership Operating Losses		4,293			1,820		135.9	%
	Professional Fees		2,054			2,496		-17.7	%
	Courier Service		1,914			1,605		19.3	%
	Other Noninterest Expense		9,407			9,707		-3.1	%
	Total Noninterest Expense	$	74,271		$	73,894		0.5	%

	Noninterest Expense/Avg. Earning Assets (a)		1.42	%		1.51	%
	Noninterest Expense/Revenues (FTE)		39.7	%		45.2	%

8. Allowance for Credit Losses.
		*(dollars in thousands)*
								%
		Q3'2022			Q3'2021			Change		Q2'2022

	Average Total Loans	$	989,033		$	1,176,114		-15.9	%	$	1,009,633

	Beginning of Period Allowance for Credit Losses on Loans (ACLL)	$	22,313		$	23,737		-6.0	%	$	22,925
	Provision for Credit Losses		-			2		n/m			-
	Net ACLL (Losses) Recoveries		(1,095	)		143		n/m			(612	)
	End of Period ACLL	$	21,218		$	23,882		-11.2	%	$	22,313
	Gross ACLL Recoveries / Gross ACLL Losses		43	%		115	%				57	%
	Net ACLL Losses (Recoveries) / Avg. Total Loans (a)		0.44	%		(0.05	%)				0.24	%

								%
		9/30'22YTD			9/30'21YTD			Change

	Average Total Loans	$	1,009,314		$	1,227,971		-17.8	%

	Beginning of Period ACLL	$	23,514		$	23,854		-1.4	%
	Provision for Credit Losses		-			2		n/m
	Net ACLL (Losses) Recoveries		(2,296	)		26		n/m
	End of Period ACLL	$	21,218		$	23,882		-11.2	%
	Gross ACLL Recoveries / Gross ACLL Losses		49	%		101	%
	Net ACLL Losses (Recoveries) / Avg. Total Loans (a)		0.30	%		0.00	%

		*(dollars in thousands)*
								%
		9/30/22			9/30/21			Change		6/30/22
	Allowance for Credit Losses on Loans	$	21,218		$	23,882		-11.2	%	$	22,313
	Allowance for Credit Losses on HTM Securities		7			7		0.0	%		7
	Total Allowance for Credit Losses	$	21,225		$	23,889		-11.2	%	$	22,320

	Allowance for Unfunded Credit Commitments	$	201		$	101		99.3	%	$	201

9. Credit Quality.
		*(dollars in thousands)*
								%
		9/30/22			9/30/21			Change		6/30/22
	Nonperforming Loans:
	Nonperforming Nonaccrual	$	131		$	801		-83.6	%	$	12
	Performing Nonaccrual		66			436		-84.9	%		235
	Total Nonaccrual Loans		197			1,237		-84.1	%		247
	90+ Days Past Due Accruing Loans		769			537		43.2	%		614
	Total Nonperforming Loans	$	966		$	1,774		-45.5	%	$	861

	Total Loans Outstanding	$	979,033		$	1,132,472		-13.5	%	$	999,768

	Total Assets		7,177,025			7,403,573		-3.1	%		7,222,405

	Loans:
	Allowance for Credit Losses on Loans	$	21,218		$	23,882		-11.2	%	$	22,313
	Allowance for Credit Losses on Loans / Loans		2.17	%		2.11	%				2.23	%
	Nonperforming Loans/Total Loans		0.10	%		0.16	%				0.09	%

10. Capital.
		*(in thousands, except per-share amounts)*
								%
		9/30/22			9/30/21			Change		6/30/22

	Shareholders' Equity	$	538,988		$	837,953		-35.7	%	$	617,126
	Total Assets		7,177,025			7,403,573		-3.1	%		7,222,405
	Shareholders' Equity/Total Assets		7.51	%		11.32	%				8.54	%
	Shareholders' Equity/Total Loans		55.05	%		73.99	%				61.73	%
	Tangible Common Equity Ratio		5.91	%		9.83	%				6.97	%
	Common Shares Outstanding		26,911			26,866		0.2	%		26,896
	Common Equity Per Share	$	20.03		$	31.19		-35.8	%	$	22.94
	Market Value Per Common Share		52.29			56.26		-7.1	%		55.66

		*(shares in thousands)*
								%
		Q3'2022			Q3'2021			Change		Q2'2022
	Share Repurchase Programs:
	Total Shares Repurchased		-			-		n/m			-
	Average Repurchase Price	$	-		$	-		n/m		$	-
	Net Shares Issued		(15	)		(1	)	n/m			(13	)

								%
		9/30'22YTD			9/30'21YTD			Change

	Total Shares Repurchased		3			4		n/m
	Average Repurchase Price	$	58.66		$	61.09		n/m
	Net Shares Issued		(45	)		(59	)	n/m

11. Period-End Balance Sheets.

(unaudited, dollars in thousands)

9/30/22

9/30/21

Change

6/30/22

Assets:

Cash and Due from Banks

413,665

1,011,048

-59.1

753,293

Debt Securities Available For Sale:

Corporate Securities

2,138,508

2,668,389

-19.9

2,296,853

Collateralized Loan Obligations

1,587,622

1,379,533

15.1

1,601,333

Agency Mortgage Backed Securities

296,689

458,053

-35.2

331,425

Securities of U.S. Government sponsored entities

272,525

n/m

290,725

Obligations of States and Political Subdivisions

80,987

96,603

-16.2

86,676

Other Debt Securities Available For Sale

128

n/m

102

Total Debt Securities Available For Sale

4,376,331

4,602,706

-4.9

4,607,114

Debt Securities Held To Maturity:

Agency Mortgage Backed Securities

112,371

166,955

-32.7

121,810

Corporate Securities

720,154

n/m

181,316

Obligations of States and Political Subdivisions (2)

103,742

189,151

-45.2

139,228

Total Debt Securities Held To Maturity (2)

936,267

356,106

162.9

442,354

Loans

979,033

1,132,472

-13.5

999,768

Allowance For Credit Losses on Loans

(21,218

)

(23,882

)

-11.2

(22,313

)

Total Loans, net

957,815

1,108,590

-13.6

977,455

Premises and Equipment, net

29,756

31,603

-5.8

30,309

Identifiable Intangibles, net

644

900

-28.4

707

Goodwill

121,673

0.0

121,673

Other Assets

340,874

170,947

99.4

289,500

Total Assets

7,177,025

7,403,573

-3.1

7,222,405

Liabilities and Shareholders' Equity:

Deposits:

Noninterest-Bearing

3,069,907

2,988,329

2.7

2,987,725

Interest-Bearing Transaction

1,338,855

1,257,460

6.5

1,303,700

Savings

1,949,711

1,894,290

2.9

1,983,713

Time

136,783

148,882

-8.1

140,453

Total Deposits

6,495,256

6,288,961

3.3

6,415,591

Short-Term Borrowed Funds

76,886

119,102

-35.4

118,167

Other Liabilities

65,895

157,557

-58.2

71,521

Total Liabilities

6,638,037

6,565,620

1.1

6,605,279

Shareholders' Equity:

Common Equity:

Paid-In Capital

474,732

470,711

0.9

473,555

Accumulated Other Comprehensive (Loss) Income

(290,797

)

71,284

n/m

(188,025

)

Retained Earnings

355,053

295,958

20.0

331,596

Total Shareholders' Equity

538,988

837,953

-35.7

617,126

Total Liabilities and Shareholders' Equity

7,177,025

7,403,573

-3.1

7,222,405

12. Income Statements.
		*(unaudited, in thousands except per-share amounts)*
						%
		Q3'2022		Q3'2021		Change		Q2'2022
	Interest & Fee Income:
	Loans	$	12,208	$	14,789	-17.5	%	$	12,331
	Equity Securities		127		109	16.5	%		129
	Debt Securities Available For Sale		39,100		26,452	47.8	%		31,764
	Debt Securities Held To Maturity		6,625		2,091	216.9	%		1,771
	Interest-Bearing Cash		2,742		369	643.1	%		2,002
	Total Interest & Fee Income		60,802		43,810	38.8	%		47,997

	Interest Expense:
	Transaction Deposits		94		101	-6.9	%		91
	Savings Deposits		290		272	6.6	%		288
	Time Deposits		86		100	-14.0	%		82
	Short-Term Borrowed Funds		17		19	-10.5	%		22
	Total Interest Expense		487		492	-1.0	%		483

	Net Interest Income		60,315		43,318	39.2	%		47,514

	Provision for Credit Losses		-		-	n/m			-

	Noninterest Income:
	Service Charges		3,737		3,578	4.4	%		3,687
	Merchant Processing Services		2,925		3,159	-7.4	%		3,374
	Debit Card Fees		1,594		1,740	-8.4	%		1,709
	Trust Fees		810		839	-3.5	%		809
	ATM Processing Fees		594		573	3.7	%		469
	Other Service Fees		463		475	-2.6	%		480
	Financial Services Commissions		79		95	-16.8	%		118
	Life Insurance Gains		923		-	n/m			-
	Other Noninterest Income		693		823	-15.8	%		618
	Total Noninterest Income		11,818		11,282	4.8	%		11,264

	Noninterest Expense:
	Salaries and Benefits		11,311		11,813	-4.2	%		11,412
	Occupancy and Equipment		5,064		4,759	6.4	%		4,856
	Outsourced Data Processing		2,434		2,429	0.2	%		2,423
	Limited Partnership Operating Losses		1,431		620	130.8	%		1,431
	Professional Fees		582		724	-19.6	%		736
	Courier Service		671		534	25.7	%		661
	Other Noninterest Expense		3,274		3,818	-14.2	%		3,110
	Total Noninterest Expense		24,767		24,697	0.3	%		24,629

	Income Before Income Taxes		47,366		29,903	58.4	%		34,149
	Income Tax Provision		12,606		7,840	60.8	%		8,835
	Net Income	$	34,760	$	22,063	57.5	%	$	25,314

	Average Common Shares Outstanding		26,906		26,866	0.1	%		26,889
	Diluted Common Shares Outstanding		26,916		26,875	0.2	%		26,901

	Per Common Share Data:
	Basic Earnings	$	1.29	$	0.82	57.3	%	$	0.94
	Diluted Earnings		1.29		0.82	57.3	%		0.94
	Dividends Paid		0.42		0.41	2.4	%		0.42

						%
		9/30'22YTD		9/30'21YTD		Change
	Interest & Fee Income:
	Loans	$	37,481	$	44,434	-15.6	%
	Equity Securities		384		329	16.7	%
	Debt Securities Available For Sale		99,430		77,822	27.8	%
	Debt Securities Held To Maturity		10,040		7,051	42.4	%
	Interest-Bearing Cash		5,223		766	581.9	%
	Total Interest & Fee Income		152,558		130,402	17.0	%

	Interest Expense:
	Transaction Deposits		273		283	-3.5	%
	Savings Deposits		861		785	9.7	%
	Time Deposits		249		330	-24.5	%
	Short-Term Borrowed Funds		67		53	26.4	%
	Total Interest Expense		1,450		1,451	-0.1	%

	Net Interest Income		151,108		128,951	17.2	%

	Provision for Credit Losses		-		-	n/m

	Noninterest Income:
	Service Charges		11,006		10,117	8.8	%
	Merchant Processing Services		8,922		8,998	-0.8	%
	Debit Card Fees (1)		6,175		5,132	20.3	%
	Trust Fees		2,462		2,467	-0.2	%
	ATM Processing Fees		1,514		1,792	-15.5	%
	Other Service Fees		1,392		1,435	-3.0	%
	Financial Services Commissions		314		260	20.8	%
	Life Insurance Gains		923		-	n/m
	Securities Gains		-		34	n/m
	Other Operating		1,950		2,268	-14.0	%
	Total Noninterest Income		34,658		32,503	6.6	%

	Noninterest Expense:
	Salaries and Benefits		34,643		36,575	-5.3	%
	Occupancy and Equipment		14,666		14,447	1.5	%
	Outsourced Data Processing		7,294		7,244	0.7	%
	Limited Partnership Operating Losses		4,293		1,820	135.9	%
	Professional Fees		2,054		2,496	-17.7	%
	Courier Service		1,914		1,605	19.3	%
	Other Operating		9,407		9,707	-3.1	%
	Total Noninterest Expense		74,271		73,894	0.5	%

	Income Before Income Taxes		111,495		87,560	27.3	%
	Income Tax Provision		28,805		22,771	26.5	%
	Net Income	$	82,690	$	64,789	27.6	%

	Average Common Shares Outstanding		26,889		26,851	0.1	%
	Diluted Common Shares Outstanding		26,901		26,868	0.1	%

	Per Common Share Data:
	Basic Earnings	$	3.08	$	2.41	27.8	%
	Diluted Earnings		3.07		2.41	27.4	%
	Dividends Paid		1.26		1.23	2.4	%

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 $7 thousand at September 30, 2022, June 30, 2022 and September 30, 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 Third Quarter 2022 Financial Results