SAN RAFAEL, Calif., April 18, 2024 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (NASDAQ:WABC), parent company of Westamerica Bank, generated net income for the first quarter 2024 of $36.4 million and diluted earnings per common share ("EPS") of $1.37. First quarter 2024 results compare to fourth quarter 2023 net income of $39.5 million and EPS of $1.48. "Westamerica's first quarter 2024 results benefited from the Company's valuable low-cost deposit base, of which 47 percent was represented by non-interest bearing checking accounts during the quarter; the annualized cost of funding our loan and bond portfolios was 0.20 percent for the first quarter 2024. First quarter 2024 operating expenses remained well controlled at 34 percent of total revenues on a fully-taxable equivalent basis. Our consistent application of conservative loan underwriting practices resulted in relatively stable nonperforming assets totaling $1.5 million," said Chairman, President and CEO David Payne. "First quarter 2024 results generated an annualized 15.2 percent return on average common equity. Shareholders were paid a $0.44 per common share dividend during the first quarter 2024," concluded Payne. Net interest income on a fully-taxable equivalent (FTE) basis was $66.1 million for the first quarter 2024, compared to $69.7 million for the fourth quarter 2023. The annualized yield earned on loans, bonds and cash for the first quarter 2024 was 4.50 percent compared to 4.52 percent for the fourth quarter 2023. The annualized cost of funding the loan and bond portfolios was 0.20 percent for the first quarter 2024 compared to 0.11 percent for the fourth quarter 2023. The Company provided $300 thousand for the allowance for credit losses on loans in the first quarter 2024. The Allowance for Credit Losses on Loans was $15.9 million at March 31, 2024. Noninterest income for the first quarter 2024 totaled $10.1 million compared to $11.0 million for the fourth quarter 2023. Debit card fees declined $524 thousand from the fourth quarter 2023 to the first quarter 2024 due to recognition of an annual volume-based incentive in the fourth quarter 2023. Merchant processing services fees declined $356 thousand from the fourth quarter 2023 to the first quarter 2024 due to reduced processing volumes. Noninterest expenses for the first quarter 2024 were $26.1 million compared to $25.5 million for the fourth quarter 2023. Salaries and related benefits were $430 thousand higher in the first quarter 2024 compared to the fourth quarter 2023 due to seasonally higher payroll taxes, merit increases and higher welfare benefit costs. The income tax provision (FTE) for the first quarter 2024 was $13.4 million compared to $15.7 million for the fourth quarter 2023. The fourth quarter 2023 includes a $492 thousand increase to reconcile the 2022 income tax provision to the filed 2022 tax returns. Westamerica Bancorporation's wholly owned subsidiary Westamerica Bank, operates commercial banking and trust offices throughout Northern and Central California. Westamerica Bancorporation Web Address: www.westamerica.com For additional information contact:Westamerica Bancorporation1108 Fifth Avenue, San Rafael, CA 94901Robert A. Thorson – SVP & Chief Financial INFORMATION: The following appears in accordance with the Private Securities Litigation Reform Act of 1995: This press release may contain forward-looking statements about the Company, including descriptions of plans or objectives of its management for future operations, products or services, and forecasts of its revenues, earnings or other measures of economic performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors — many of which are beyond the Company's control — could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. The Company's most recent reports filed with the Securities and Exchange Commission, including the annual report for the year ended December 31, 2023 filed on Form 10-K and quarterly report for the quarter ended September 30, 2023 filed on Form 10-Q, describe some of these factors, including certain credit, interest rate, operational, liquidity and market risks associated with the Company's business and operations. Other factors described in these reports include changes in business and economic conditions, competition, fiscal and monetary policies, disintermediation, cyber security risks, legislation including the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the Sarbanes-Oxley Act of 2002 and the Gramm-Leach-Bliley Act of 1999, and mergers and acquisitions. Forward-looking statements speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date forward looking statements are made.   Public Information April 18, 2024   WESTAMERICA BANCORPORATION             FINANCIAL HIGHLIGHTS             March 31, 2024                             1. Net Income Summary.                 (in thousands except per-share amounts)             %           Q1'2024 Q1'2023 Change Q4'2023                       Net Interest and Fee Income (FTE) $66,094   $69,562   -5.0 % $69,738         Provision (Reversal               of Provision) for               Credit Losses (1)   300     (1,550 ) n/m     -         Noninterest Income   10,097     10,549   -4.3 %   10,992         Noninterest Expense   26,099     26,210   -0.4 %   25,517         Income Before Taxes (FTE)   49,792     55,451   -10.2 %   55,213         Income Tax Provision (FTE)   13,375     15,000   -10.8 %   15,745         Net Income $36,417   $40,451   -10.0 % $39,468                         Average Common Shares Outstanding   26,674     26,859   -0.7 %   26,662         Diluted Average Common Shares Outstanding   26,675     26,866   -0.7 %   26,664                         Operating Ratios:               Basic Earnings Per Common Share $1.37   $1.51   -9.3 % $1.48         Diluted Earnings Per Common Share   1.37     1.51   -9.3 %   1.48         Return On Assets (a)   2.24 %   2.31 %     2.35 %       Return On Common Equity (a)   15.2 %   19.1 %     16.7 %       Net Interest Margin (FTE) (a)   4.30 %   4.18 %     4.41 %       Efficiency Ratio (FTE)   34.3 %   32.7 %     31.6 %                       Dividends Paid Per Common Share $0.44   $0.42   4.8 % $0.44         Common Dividend Payout Ratio   32 %   28 %     30 %                     2. Net Interest Income.                 (dollars in thousands)             %           Q1'2024 Q1'2023 Change Q4'2023                       Interest and Fee Income (FTE) $69,095   $70,033   -1.3 % $71,417         Interest Expense   3,001     471   537.2 %   1,679         Net Interest and Fee Income (FTE) $66,094   $69,562   -5.0 % $69,738                         Average Earning Assets $6,119,368   $6,665,156   -8.2 % $6,251,143         Average Interest- Bearing Liabilities   2,955,565     3,287,158   -10.1 %   2,966,038                         Yield on Earning Assets (FTE) (a)   4.50 %   4.21 %     4.52 %       Cost of Funds (a)   0.20 %   0.03 %     0.11 %       Net Interest Margin (FTE) (a)   4.30 %   4.18 %     4.41 %       Interest Expense/                  Interest-Bearing Liabilities (a)   0.41 %   0.06 %     0.22 %       Net Interest Spread (FTE) (a)   4.09 %   4.15 %     4.30 %                     3. Loans & Other Earning Assets.                 (average volume, dollars in thousands)             %           Q1'2024 Q1'2023 Change Q4'2023                       Total Assets $6,525,921   $7,112,317   -8.2 % $6,665,040         Total Earning Assets   6,119,368     6,665,156   -8.2 %   6,251,143         Total Loans   853,553     945,864   -9.8 %   873,635           Commercial Loans   133,422     165,360   -19.3 %   139,535           Commercial Real Estate Loans   488,989     493,132   -0.8 %   490,645           Consumer Loans   231,142     287,372   -19.6 %   243,455         Total Investment Securities   5,098,539     5,548,780   -8.1 %   5,182,557           Debt Securities Available for Sale   4,224,474     4,636,098   -8.9 %   4,298,396           Debt Securities Held to Maturity   874,065     912,682   -4.2 %   884,161         Total Interest-Bearing Cash   167,276     170,512   -1.9 %   194,951                         Loans/Deposits   15.9 %   15.6 %     15.7 %                     4. Deposits, Other Interest-Bearing Liabilities & Equity.             (average volume, dollars in thousands)             %           Q1'2024 Q1'2023 Change Q4'2023                       Total Deposits $5,379,060   $6,061,923   -11.3 % $5,573,281           Noninterest Demand   2,532,381     2,851,600   -11.2 %   2,672,170           Interest-Bearing Transaction   1,058,292     1,233,439   -14.2 %   1,085,864           Savings   1,691,716     1,847,428   -8.4 %   1,713,803           Time greater than $100K   36,135     57,630   -37.3 %   37,970           Time less than $100K   60,536     71,826   -15.7 %   63,474         Total Short-Term Borrowings   108,886     76,835   41.7 %   64,927           Bank Term Funding Program                   Borrowings   62,582     -   n/m     -           Securities Sold under Repurchase                   Agreements   46,304     76,835   -39.7 %   64,927         Shareholders' Equity   965,840     858,473   12.5 %   938,738                         Demand Deposits/ Total Deposits   47.1 %   47.0 %     47.9 %       Transaction & Savings Deposits / Total Deposits   98.2 %   97.9 %     98.2 %                     5. Interest Yields Earned & Rates Paid.                 (dollars in thousands)           Q1'2024           Average Income/ Yield (a) /           Volume Expense Rate (a)         Interest & Fee Income Earned:                 Total Earning Assets (FTE) $6,119,368   $69,095   4.50 %           Total Loans (FTE)   853,553     11,413   5.38 %             Commercial Loans (FTE)   133,422     2,385   7.19 %             Commercial Real Estate Loans   488,989     5,911   4.86 %             Consumer Loans   231,142     3,117   5.42 %           Total Investments (FTE)   5,098,539     55,399   4.32 %             Total Debt Securities Available for Sale (FTE)   4,224,474     46,552   4.38 %               Corporate Securities   2,114,861     14,555   2.75 %               Collateralized Loan Obligations   1,461,182     26,700   7.23 %               Agency Mortgage Backed Securities   252,828     1,552   2.45 %               Securities of U.S. Government sponsored                        entities   308,807     2,777   3.60 %               Obligations of States and Political                        Subdivisions (FTE)   72,569     544   3.00 %               Other Debt Securities Available for Sale (FTE)   14,227     424   11.92 %             Total Debt Securities Held to Maturity (FTE)   874,065     8,847   4.05 %               Agency Mortgage Backed Securities   76,062     427   2.25 %               Corporate Securities   729,273     7,816   4.29 %               Obligations of States and Political                        Subdivisions (FTE)   68,730     604   3.52 %           Total Interest-Bearing Cash   167,276     2,283   5.40 %                         Interest Expense Paid:                 Total Earning Assets   6,119,368     3,001   0.20 %           Total Interest-Bearing Liabilities   2,955,565     3,001   0.41 %           Total Interest-Bearing Deposits   2,846,679     2,106   0.30 %             Interest-Bearing Transaction   1,058,292     119   0.05 %             Savings   1,691,716     1,917   0.46 %             Time less than $100K   60,536     49   0.33 %             Time greater than $100K   36,135     21   0.23 %           Total Short-Term Borrowings   108,886     895   3.30 %           Bank Term Funding Program