SAN RAFAEL, Calif., Oct. 19, 2023 (GLOBE NEWSWIRE) -- Westamerica Bancorporation ( WABC), parent company of Westamerica Bank, generated net income for the third quarter 2023 of $41.6 million and diluted earnings per common share (“EPS”) of $1.56, which represent the highest third quarter results in Company history. Third quarter 2023 results include a life insurance gain which increased EPS $0.01. Third quarter 2023 results compare to second quarter 2023 net income of $40.2 million and EPS of $1.51.
“Westamerica’s third quarter 2023 results benefited from the Company’s valuable low-cost deposit base, of which 48 percent was represented by non-interest bearing checking accounts during the third quarter 2023. The annualized cost of funding our loan and bond portfolios was 0.07 percent in the third quarter 2023. The Company’s customer deposits and shareholders’ equity fully funded our interest earning assets during the third quarter 2023; the Company did not borrow from the Federal Reserve Bank or correspondent banks. Operating expenses remained well controlled. Nonperforming assets were a stable $1.2 million at September 30, 2023,” said Chairman, President and CEO David Payne. “Third quarter 2023 results generated an annualized 18.3 percent return on average common equity. Shareholders were paid a $0.44 per common share dividend during the third quarter 2023,” concluded Payne.
Net interest income on a fully-taxable equivalent (FTE) basis was $72.1 million for the third quarter 2023, compared to $70.3 million for the second quarter 2023. The annualized yield earned on loans, bonds and cash for the third quarter 2023 was 4.50 percent, up from 4.38 percent for the second quarter 2023. The annualized cost of funding the loan and bond portfolios was 0.07 percent for the third quarter 2023, compared to 0.04 percent for the second quarter 2023. Variable rate assets at September 30, 2023 included $1.5 billion in collateralized loan obligations on which interest rates reset quarterly.
The Company provided $400 thousand for credit losses on loans in the third quarter 2023. The Allowance for Credit Losses on Loans was $17.7 million at September 30, 2023.
Noninterest income for the third quarter 2023 totaled $11.3 million compared to $10.7 million for the second quarter 2023. Third quarter 2023 results include a $278 thousand life insurance gain.
Noninterest expenses for the third quarter 2023 were $25.7 million compared to $25.8 million for the second quarter 2023.
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 | |
| [email protected] | |
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, 2022 filed on Form 10-K and quarterly report for the quarter ended June 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 October 19, 2023 | ||||||||||||
| WESTAMERICA BANCORPORATION | ||||||||||||
| FINANCIAL HIGHLIGHTS | ||||||||||||
| September 30, 2023 | ||||||||||||
| 1. Net Income Summary. | ||||||||||||
| (in thousands except per-share amounts) | ||||||||||||
| % | ||||||||||||
| Q3’2023 | Q3’2022 | Change | Q2’2023 | |||||||||
| Net Interest and Fee Income (FTE) | $ | 72,092 | $ | 60,780 | 18.6 | % | $ | 70,281 | ||||
| Provision for Credit Losses | 400 | - | n/m | - | ||||||||
| Noninterest Income | 11,281 | 11,818 | -4.5 | % | 10,700 | |||||||
| Noninterest Expense | 25,650 | 24,767 | 3.6 | % | 25,839 | |||||||
| Income Before Taxes (FTE) | 57,323 | 47,831 | 19.8 | % | 55,142 | |||||||
| Income Tax Provision (FTE) | 15,722 | 13,071 | 20.3 | % | 14,894 | |||||||
| Net Income | $ | 41,601 | $ | 34,760 | 19.7 | % | $ | 40,248 | ||||
| Average Common Shares Outstanding | 26,648 | 26,906 | -1.0 | % | 26,648 | |||||||
| Diluted Average Common Shares Outstanding | 26,650 | 26,916 | -1.0 | % | 26,648 | |||||||
| Operating Ratios: | ||||||||||||
| Basic Earnings Per Common Share | $ | 1.56 | $ | 1.29 | 20.9 | % | $ | 1.51 | ||||
| Diluted Earnings Per Common Share | 1.56 | 1.29 | 20.9 | % | 1.51 | |||||||
| Return On Assets (a) | 2.41 | % | 1.85 | % | 2.35 | % | ||||||
| Return On Common Equity (a) | 18.3 | % | 17.1 | % | 18.4 | % | ||||||
| Net Interest Margin (FTE) (a) | 4.43 | % | 3.44 | % | 4.34 | % | ||||||
| Efficiency Ratio (FTE) | 30.8 | % | 34.1 | % | 31.9 | % | ||||||
| Dividends Paid Per Common Share | $ | 0.44 | $ | 0.42 | 4.8 | % | $ | 0.42 | ||||
| Common Dividend Payout Ratio | 28 | % | 33 | % | 28 | % | ||||||
| % | ||||||||||||
| 9/30’23YTD | 9/30’22YTD | Change | ||||||||||
| Net Interest and Fee Income (FTE) | $ | 211,935 | $ | 152,620 | 38.9 | % | ||||||
| Reversal of Provision for Credit Losses (2) | (1,150 | ) | - | n/m | ||||||||
| Noninterest Income (1) | 32,530 | 34,658 | -6.1 | % | ||||||||
| Noninterest Expense | 77,699 | 74,271 | 4.6 | % | ||||||||
| Income Before Taxes (FTE) | 167,916 | 113,007 | 48.6 | % | ||||||||
| Income Tax Provision (FTE) | 45,616 | 30,317 | 50.5 | % | ||||||||
| Net Income | $ | 122,300 | $ | 82,690 | 47.9 | % | ||||||
| Average Common Shares Outstanding | 26,718 | 26,889 | -0.6 | % | ||||||||
| Diluted Average Common Shares Outstanding | 26,721 | 26,901 | -0.7 | % | ||||||||
| Operating Ratios: | ||||||||||||
| Basic Earnings Per Common Share | $ | 4.58 | $ | 3.08 | 48.7 | % | ||||||
| Diluted Earnings Per Common Share | 4.58 | 3.07 | 49.2 | % | ||||||||
| Return On Assets (a) | 2.36 | % | 1.49 | % | ||||||||
| Return On Common Equity (a) | 18.6 | % | 14.0 | % | ||||||||
| Net Interest Margin (FTE) (a) | 4.32 | % | 2.90 | % | ||||||||
| Efficiency Ratio (FTE) | 31.8 | % | 39.7 | % | ||||||||
| Dividends Paid Per Common Share | $ | 1.28 | $ | 1.26 | 1.6 | % | ||||||
| Common Dividend Payout Ratio | 28 | % | 41 | % | ||||||||
| 2. Net Interest Income. | ||||||||||||
| (dollars in thousands) | ||||||||||||
| % | ||||||||||||
| Q3’2023 | Q3’2022 | Change | Q2’2023 | |||||||||
| Interest and Fee Income (FTE) | $ | 73,225 | $ | 61,267 | 19.5 | % | $ | 70,888 | ||||
| Interest Expense | 1,133 | 487 | 132.6 | % | 607 | |||||||
| Net Interest and Fee Income (FTE) | $ | 72,092 | $ | 60,780 | 18.6 | % | $ | 70,281 | ||||
| Average Earning Assets | $ | 6,438,411 | $ | 7,041,313 | -8.6 | % | $ | 6,457,270 | ||||
| Average Interest- Bearing Liabilities | 3,118,632 | 3,520,083 | -11.4 | % | 3,144,264 | |||||||
| Yield on Earning Assets (FTE) (a) | 4.50 | % | 3.47 | % | 4.38 | % | ||||||
| Cost of Funds (a) | 0.07 | % | 0.03 | % | 0.04 | % | ||||||
| Net Interest Margin (FTE) (a) | 4.43 | % | 3.44 | % | 4.34 | % | ||||||
| Interest Expense/ | ||||||||||||
| Interest-Bearing Liabilities (a) | 0.14 | % | 0.05 | % | 0.08 | % | ||||||
| Net Interest Spread (FTE) (a) | 4.36 | % | 3.42 | % | 4.30 | |||||||
