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 Bancorporation1108 Fifth Avenue, San Rafael, CA 94901Robert A. Thorson – SVP & 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   33 %   28 %     32 %                     %       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   33 %   28 %                 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     54   5.08 %     Other Debt Securities           Available for Sale (FTE)   14,227     411   11.55 %     Total Debt Securities Held to           Maturity (FTE)   864,295