SAN RAFAEL, Calif., Jan. 16, 2025 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (NASDAQ:WABC), parent company of Westamerica Bank, generated net income for the fourth quarter 2024 of $31.7 million and diluted earnings per common share ("EPS") of $1.19. Fourth quarter 2024 results include an increase to the book tax provision to reconcile the 2023 income tax provision to the filed 2023 tax returns, which reduced EPS $0.01. Fourth quarter 2024 results compare to third quarter 2024 net income of $35.1 million and EPS of $1.31, which included gains from life insurance and sales of other assets equivalent to EPS of $0.04.

"Westamerica's fourth 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 0.24 percent in the quarter. Operating expenses remained well controlled at 37 percent of total revenues. The Company recognized no provision for credit losses. At December 31, 2024, nonperforming assets were stable at $0.7 million and the allowance for credit losses was $14.8 million" said Chairman, President and CEO David Payne. "Fourth quarter 2024 results generated an annualized 12.1 percent return on average common equity. Shareholders were paid a $0.44 per common share dividend during the fourth quarter 2024," concluded Payne.

Net interest income on a fully-taxable equivalent (FTE) basis was $59.2 million for the fourth quarter 2024, compared to $62.5 million for the third quarter 2024. The annualized yield earned on loans, bonds and cash for the fourth quarter 2024 was 4.25 percent compared to 4.45 percent for the third quarter 2024. The annualized cost of funding the loan and bond portfolios was 0.24 percent for the fourth quarter 2024, compared to 0.37 percent for the third quarter 2024.

Noninterest income for the fourth quarter 2024 totaled $10.6 million compared to $11.9 million for the third quarter 2024. Third quarter 2024 results include $1.6 million in gains from life insurance and sales of other assets.

Noninterest expenses for the fourth quarter 2024 were $25.9 million compared to $26.3 million for the third quarter 2024.

The income tax provision for the fourth quarter 2024 includes a $305 thousand increase to reconcile the 2023 income tax provision to the filed 2023 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 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 September 30, 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 January 16, 2025

WESTAMERICA BANCORPORATION

FINANCIAL HIGHLIGHTS

December 31, 2024

1. Net Income Summary.

(in thousands except per-share amounts)

Q4'2024

Q4'2023

Change

Q3'2024

Net Interest and Loan Fee

Income (FTE)

59,247

69,738

-15.0

62,465

Provision for

Credit Losses

n/m

Noninterest Income

10,633

10,992

-3.3

11,925

Noninterest Expense

25,853

25,517

1.3

26,309

Income Before Taxes (FTE)

44,027

55,213

-20.3

48,081

Income Tax Provision (FTE)

12,327

15,745

-21.7

13,024

Net Income

31,700

39,468

-19.7

35,057

Average Common Shares

Outstanding

26,699

26,662

0.1

26,685

Diluted Average Common

Shares Outstanding

26,701

26,664

0.1

26,686

Operating Ratios:

Basic Earnings Per Common

Share

1.19

1.48

-19.6

1.31

Diluted Earnings Per

Common Share

1.19

1.48

-19.6

1.31

Return On Assets (a)

2.02

2.35

2.16

Return On Common

Equity (a)

12.1

16.7

13.7

Net Interest Margin (FTE) (a)

4.01

4.41

4.08

Efficiency Ratio (FTE)

37.0

31.6

35.4

Dividends Paid Per Common

Share

0.44

0.0

0.44

Common Dividend Payout

Ratio

12/31'24YTD

12/31'23YTD

Change

Net Interest and Loan Fee

Income (FTE)

251,906

281,673

-10.6

Provision (Reversal

of Provision) for

Credit Losses (1)

300

(1,150

)

n/m

Noninterest Income

43,155

43,522

-0.8

Noninterest Expense

104,391

103,216

1.1

Income Before Taxes (FTE)

190,370

223,129

-14.7

Income Tax Provision (FTE)

51,734

61,361

-15.7

Net Income

138,636

161,768

-14.3

Average Common Shares

Outstanding

26,685

26,703

-0.1

Diluted Average Common

Shares Outstanding

26,686

26,706

-0.1

Operating Ratios:

Basic Earnings Per Common

Share

5.20

6.06

-14.2

Diluted Earnings Per

Common Share

5.20

6.06

-14.2

Return On Assets

2.15

2.35

Return On Common

Equity

13.8

18.1

Net Interest Margin (FTE)

4.14

4.37

Efficiency Ratio (FTE)

35.4

31.7

Dividends Paid Per Common

Share

1.76

1.72

2.3

Common Dividend Payout

Ratio

2. Net Interest Income.

(dollars in thousands)

Q4'2024

Q4'2023

Change

Q3'2024

Interest and Loan Fee

Income (FTE)

62,713

71,417

-12.2

68,110

Interest Expense

3,466

1,679

106.4

5,645

Net Interest and Loan Fee

Income (FTE)

59,247

69,738

-15.0

62,465

Average Earning Assets

5,850,620

6,251,143

-6.4

6,062,174

Average Interest-Bearing

Liabilities

2,796,675

2,966,038

-5.7

2,950,093

Yield on Earning Assets

(FTE) (a)

4.25

4.52

4.45

Cost of Funds (a)

0.24

0.11

0.37

Net Interest Margin (FTE) (a)

4.01

4.41

4.08

Interest Expense /

Interest-Bearing

Liabilities (a)

0.49

0.22

0.76

Net Interest Spread (FTE) (a)

3.76

4.30

3.69

12/31'24YTD

12/31'23YTD

Change

Interest and Loan Fee

Income (FTE)

269,325

285,563

-5.7

Interest Expense

17,419

3,890

347.8

Net Interest and Loan Fee

Income (FTE)

251,906

281,673

-10.6

Average Earning Assets

6,043,966

6,451,821

-6.3

Average Interest-Bearing

Liabilities

2,925,742

3,128,115

-6.5

Yield on Earning Assets

(FTE)

4.43

Cost of Funds

0.29

0.06

Net Interest Margin (FTE)

4.14

4.37

Interest Expense /

Interest-Bearing

Liabilities

0.60

0.12

Net Interest Spread (FTE)

3.83

4.31

3. Loans & Other Earning Assets.

(average volume, dollars in thousands)

Q4'2024

Q4'2023

Change

Q3'2024

Total Assets

6,243,799

6,665,040

-6.3

6,461,843

Total Earning Assets

5,850,620

6,251,143

-6.4

6,062,174

Total Loans

821,767

873,635

-5.9

831,418

Commercial Loans

131,088

139,535

-6.1

136,160

Commercial Real Estate

Loans

503,546

490,645

2.6

493,272

Consumer Loans

187,133

243,455

-23.1

201,986

Total Investment Securities

4,557,436

5,182,557

-12.1

4,736,024

Debt Securities Available for

Sale

3,710,378

4,298,396

-13.7

3,881,678

Debt Securities Held to

Maturity

847,058

884,161

-4.2

854,346

Total Interest-Bearing Cash

471,417

194,951

141.8

494,732

Loans / Deposits

16.3

15.7

16.3

12/31'24YTD

12/31'23YTD

Change

Total Assets

6,444,687

6,871,366

-6.2

Total Earning Assets

6,043,966

6,451,821

-6.3

Total Loans

836,136

912,316

-8.4

Commercial Loans

133,569

153,499

-13.0

Commercial Real Estate

Loans

493,282

492,183

0.2

Consumer Loans

209,285

266,634

-21.5

Total Investment Securities

4,833,024

5,334,711

-9.4

Debt Securities Available for

Sale

3,973,134

4,436,003

-10.4

Debt Securities Held to

Maturity

859,890

898,708

-4.3

Total Interest-Bearing Cash

374,806

204,794

83.0

Loans / Deposits

16.2

15.8

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

(average volume, dollars in thousands)

Q4'2024

Q4'2023

Change

Q3'2024

Total Deposits

5,028,363

5,573,281

-9.8

5,092,244

Noninterest Demand

2,342,092

2,672,170

-12.4

2,425,646

Interest-Bearing Transaction

934,876

1,085,864

-13.9

937,694

Savings

1,666,542

1,713,803

-2.8

1,639,997

Time greater than $100K

31,541

37,970

-16.9

32,815

Time less than $100K

53,312

63,474

-16.0

56,092

Total Short-Term Borrowings

110,404

64,927

70.0

283,495

Bank Term Funding Program

Borrowings

n/m

167,391

Securities Sold under

Repurchase Agreements

110,404

64,927

70.0

116,104

Shareholders' Equity

1,039,017

938,738

10.7

1,016,642

Demand Deposits /

Total Deposits

46.6

47.9

47.6

Transaction & Savings

Deposits / Total Deposits

98.3

98.2

98.3

12/31'24YTD

12/31'23YTD

Change

Total Deposits

5,174,942

5,787,361

-10.6

Noninterest Demand

2,445,945

2,748,544

-11.0

Interest-Bearing Transaction

977,912

1,156,684

-15.5

Savings

1,660,227

1,766,225

-6.0

Time greater than $100K

33,794

48,076

-29.7

Time less than $100K

57,064

67,832

-15.9

Total Short-Term Borrowings

196,745

89,298

120.3

Bank Term Funding Program

Borrowings

107,364

n/m

Securities Sold under

Repurchase Agreements

89,381

89,298

0.1

Shareholders' Equity

1,003,242

894,610

12.1

Demand Deposits /

Total Deposits

47.3

47.5

Transaction & Savings

Deposits / Total Deposits

98.2

98.0

5. Interest Yields Earned & Rates Paid.

(dollars in thousands)

Q4'2024

Average

Income/

Yield (a) /

Volume

Expense

Rate (a)

Interest & Loan Fee Income Earned:

Total Earning Assets (FTE)

5,850,620

62,713

4.25

Total Loans (FTE)

821,767

11,249

5.45

Commercial Loans (FTE)

131,088

2,107

6.39

Commercial Real Estate

Loans

503,546

6,477

5.12

Consumer Loans

187,133

2,665

5.67

Total Investments (FTE)

4,557,436

45,805

3.99

Total Debt Securities

Available for Sale (FTE)

3,710,378

37,169

3.97

Corporate Securities

2,038,474

14,011

2.75

Collateralized Loan

Obligations

1,037,319

17,689

6.67

Agency Mortgage Backed

Securities

240,259

1,688

2.81

Securities of U.S.

Government Sponsored

Entities

310,617

2,776

3.58

Obligations of States and

Political Subdivisions

(FTE)

64,575

507

3.14

U.S. Treasury Securities

4,907

5.08

Other Debt Securities

Available for Sale (FTE)

14,227

435

12.22

Total Debt Securities Held to

Maturity (FTE)

847,058

8,636

4.08

Agency Mortgage Backed

Securities

60,572

351

2.31

Corporate Securities

734,395

7,815

4.26

Obligations of States and

Political Subdivisions

(FTE)

52,091

470

3.61

Total Interest-Bearing Cash

471,417

5,659

4.70

Interest Expense Paid:

Total Earning Assets

5,850,620

3,466

0.24

Total Interest-Bearing

Liabilities

2,796,675

3,466

0.49

Total Interest-Bearing

Deposits

2,686,271

3,262

0.48

Interest-Bearing Transaction

934,876

0.02

Savings

1,666,542

3,148

0.75

Time less than $100K

53,312

0.32

Time greater than $100K

31,541

0.31

Total Short-Term Borrowings

110,404

204

0.73

Securities Sold under

Repurchase Agreements

110,404

204

0.73

Net Interest Income and

Margin (FTE)

59,247

4.01

Q4'2023

Average

Income/

Yield (a) /

Volume

Expense

Rate (a)

Interest & Loan Fee Income Earned:

Total Earning Assets (FTE)

6,251,143

71,417

4.52

Total Loans (FTE)

873,635

11,695

5.31

Commercial Loans (FTE)

139,535

2,503

7.12

Commercial Real Estate

Loans

490,645

5,945

4.81

Consumer Loans

243,455

3,247

5.29

Total Investments (FTE)

5,182,557

57,032

4.35

Total Debt Securities

Available for Sale (FTE)

4,298,396

48,094

4.42

Corporate Securities

2,129,736

14,687

2.76

Collateralized Loan

Obligations

1,508,494

28,041

7.27

Agency Mortgage Backed

Securities

264,514

1,627

2.46

Securities of U.S.

Government sponsored

entities

308,234

2,777

3.60

Obligations of States and

Political Subdivisions

(FTE)

73,191

549

3.00

Other Debt Securities

Available for Sale (FTE)

14,227

413

11.62

Total Debt Securities Held to

Maturity (FTE)

884,161

8,938

4.04

Agency Mortgage Backed

Securities

81,789

456

2.23

Corporate Securities

727,579

7,816

4.30

Obligations of States and

Political Subdivisions

(FTE)

74,793

666

3.56

Total Interest-Bearing Cash

194,951

2,690

5.40

Interest Expense Paid:

Total Earning Assets

6,251,143

1,679

0.11

Total Interest-Bearing

Liabilities

2,966,038

1,679

0.22

Total Interest-Bearing

Deposits

2,901,111

1,635

0.22

Interest-Bearing Transaction

1,085,864

128

0.05

Savings

1,713,803

1,431

0.33

Time less than $100K

63,474

0.32

Time greater than $100K

37,970

0.26

Total Short-Term Borrowings

64,927

0.26

Securities Sold under

Repurchase Agreements

64,927

0.26

Net Interest Income and

Margin (FTE)

69,738

4.41

6. Noninterest Income.

(dollars in thousands except per-share amounts)

Q4'2024

Q4'2023

Change

Q3'2024

Service Charges on Deposit

Accounts

3,501

3,540

-1.1

3,585

Merchant Processing

Services

2,735

2,863

-4.5

2,474

Debit Card Fees

1,902

2,067

-8.0

1,702

Trust Fees

867

764

13.5

846

ATM Processing Fees

506

622

-18.6

533

Other Service Fees

428

445

-3.8

454

Life Insurance Gains

n/m

202

Other Noninterest Income

694

690

0.6

2,129

Total Noninterest Income

10,633

10,992

-3.3

11,925

Operating Ratios:

Total Revenue (FTE)

69,880

80,730

-13.4

74,390

Noninterest Income /

Revenue (FTE)

15.2

13.6

16.0

Service Charges /

Avg. Deposits (a)

0.28

0.25

0.28

Total Revenue (FTE) Per

Avg. Common Share (a)

10.41

12.01

-13.3

11.09

12/31'24YTD

12/31'23YTD

Change

Service Charges on Deposit

Accounts

14,025

14,169

-1.0

Merchant Processing

Services

10,449

11,280

-7.4

Debit Card Fees

6,853

7,185

-4.6

Trust Fees

3,318

3,122

6.3

ATM Processing Fees

2,170

2,618

-17.1

Other Service Fees

1,770

1,765

0.3

Life Insurance Gains

202

279

n/m

Securities Losses

(125

)

n/m

Other Noninterest Income

4,368

3,229

35.3

Total Noninterest Income

43,155

43,522

-0.8

Operating Ratios:

Total Revenue (FTE)

295,061

325,195

-9.3

Noninterest Income /

Revenue (FTE)

14.6

13.4

Service Charges /

Avg. Deposits

0.27

0.24

Total Revenue (FTE) Per

Avg. Common Share

11.06

12.18

-9.2

7. Noninterest Expense.

(dollars in thousands)

Q4'2024

Q4'2023

Change

Q3'2024

Salaries and Related Benefits

12,461

12,156

2.5

12,762

Occupancy and Equipment

5,219

4,958

5.3

5,256

Outsourced Data Processing

2,610

2,441

6.9

2,614

Limited Partnership

Operating Losses

1,095

1,440

-24.0

1,210

Professional Fees

369

389

-5.1

337

Courier Service

692

681

1.6

682

Other Noninterest Expense

3,407

3,452

-1.3

3,448

Total Noninterest Expense

25,853

25,517

1.3

26,309

Operating Ratios:

Noninterest Expense /

Avg. Earning Assets (a)

1.76

1.62

1.73

Noninterest Expense /

Revenues (FTE)

37.0

31.6

35.4

12/31'24YTD

12/31'23YTD

Change

Salaries and Related Benefits

50,292

47,871

5.1

Occupancy and Equipment

20,673

20,520

0.7

Outsourced Data Processing

10,271

9,846

4.3

Limited Partnership

Operating Losses

5,185

5,754

-9.9

Professional Fees

1,470

1,751

-16.0

Courier Service

2,709

2,652

2.1

Other Noninterest Expense

13,791

14,822

-7.0

Total Noninterest Expense

104,391

103,216

1.1

Operating Ratios:

Noninterest Expense /

Avg. Earning Assets

1.73

1.60

Noninterest Expense /

Revenues (FTE)

35.4

31.7

8. Allowance for Credit Losses.

(dollars in thousands)

Q4'2024

Q4'2023

Change

Q3'2024

Average Total Loans

821,767

873,635

-5.9

831,418

Beginning of Period

Allowance for Credit

Losses on Loans (ACLL)

15,318

17,744

-13.7

15,952

Provision for

Credit Losses

n/m

Net ACLL Losses

(538

)

(877

)

-38.7

(634

)

End of Period ACLL

14,780

16,867

-12.4

15,318

Gross ACLL Recoveries /

Gross ACLL Losses

Net ACLL Losses /

Avg. Total Loans (a)

-0.26

-0.40

-0.30

12/31'24YTD

12/31'23YTD

Change

Average Total Loans

836,136

912,316

-8.4

Beginning of Period ACLL

16,867

20,284

-16.8

Provision (Reversal

of Provision) for

Credit Losses (1)

300

(1,150

)

n/m

Net ACLL Losses

(2,387

)

(2,267

)

5.3

End of Period ACLL

14,780

16,867

-12.4

Gross ACLL Recoveries /

Gross ACLL Losses

Net ACLL Losses /

Avg. Total Loans

-0.29

-0.25

(dollars in thousands)

12/31/24

12/31/23

Change

9/30/24

Allowance for Credit Losses

on Loans

14,780

16,867

-12.4

15,318

Allowance for Credit Losses

on Held to Maturity

Securities

49.1

Total Allowance for Credit

Losses

14,781

16,868

-12.4

15,319

Allowance for Unfunded

Credit Commitments

201

0.0

201

9. Credit Quality.

(dollars in thousands)

12/31/24

12/31/23

Change

9/30/24

Nonperforming Loans:

Nonperforming Nonaccrual

Loans

201

401

-49.9

252

Performing Nonaccrual

Loans

n/m

Total Nonaccrual Loans

201

403

-50.1

252

Accruing Loans 90+ Days

Past Due

534

388

37.6

667

Total Nonperforming Loans

735

791

-7.1

919

Total Loans Outstanding

820,300

866,602

-5.3

833,967

Total Assets

6,076,274

6,364,592

-4.5

6,161,143

Loans:

Allowance for Credit Losses

on Loans

14,780

16,867

-12.4

15,318

Allowance for Credit Losses

on Loans / Loans

1.80

1.95

1.84

Nonperforming Loans /

Total Loans

0.09

0.11

10. Liquidity.

At December 31, 2024, the Company had $601,494 thousand in cash balances. During the twelve months ending December 31, 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 December 31, 2024, the Company's debt securities which qualify as collateral for borrowing totaled $3,534,099 thousand. In the ordinary course of business, the Company pledges debt securities as collateral for certain depository customers; at December 31, 2024, the Company had pledged $726,784 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 December 31, 2024, the Company had pledged $766,606 thousand in debt securities at the Federal Reserve Bank. During the twelve months ended December 31, 2024, the Company's average borrowings from the Federal Reserve Bank and other correspondent banks were $107,364 thousand and $-0- thousand, respectively, and at December 31, 2024, the Company had no borrowings from the Federal Reserve Bank or other correspondent banks. At December 31, 2024, the Company had access to borrowing from the Federal Reserve up to $766,606 thousand based on collateral pledged at December 31, 2024. At December 31, 2024, the Company's estimated unpledged collateral qualifying debt securities totaled $1,597,486 thousand. Debt securities eligible as collateral are shown at market value.

(in thousands)

12/31/24

Debt Securities Eligible as

Collateral:

Corporate Securities

2,539,147

Collateralized Loan

Obligations rated AAA

311,650

Obligations of States and

Political Subdivisions

113,082

Agency Mortgage Backed

Securities

273,148

Securities of U.S. Government

Sponsored Entities

292,117

U.S. Treasury Securities

4,955

Total Debt Securities Eligible

as Collateral

3,534,099

Debt Securities Pledged

as Collateral:

Debt Securities Pledged

at the Federal Reserve Bank

766,606

)

Deposits by Public Entities

(726,784

)

Securities Sold under

Repurchase Agreements

(434,205

)

Other

(9,018

)

Total Debt Securities Pledged

as Collateral

1,936,613

)

Estimated Debt Securities

Available to Pledge

1,597,486

11. Capital.

(in thousands, except per-share amounts)

12/31/24

12/31/23

Change

9/30/24

Shareholders' Equity

889,957

772,894

15.1

909,040

Total Assets

6,076,274

6,364,592

-4.5

6,161,143

Shareholders' Equity/

Total Assets

14.65

12.14

14.75

Shareholders' Equity/

Total Loans

108.49

89.19

109.00

Tangible Common Equity

Ratio

12.90

10.43

13.03

Common Shares Outstanding

26,708

26,671

0.1

26,686

Common Equity Per Share

33.32

28.98

15.0

34.06

Market Value Per Common

Share

52.46

56.41

-7.0

49.42

(shares in thousands)

Q4'2024

Q4'2023

Change

Q3'2024

Share (Issuances) Retirements:

Total Shares Retired

n/m

Average Retirement Price

n/m

Net Shares Issued

(22

)

(22

)

n/m

)

12/31'24YTD

12/31'23YTD

Change

Total Shares Retired

274

n/m

Average Retirement Price

45.58

50.11

n/m

Net Shares (Issued) Retired

(37

)

242

n/m

12. Period-End Balance Sheets.

(unaudited, dollars in thousands)

12/31/24

12/31/23

Change

9/30/24

Assets:

Cash and Due from Banks

601,494

190,314

216.1

502,945

Debt Securities Available for

Sale:

Corporate Securities

1,835,937

1,909,548

-3.9

1,901,617

Collateralized Loan

Obligations

982,589

1,484,597

-33.8

1,078,920

Agency Mortgage Backed

Securities

218,026

239,454

-8.9

227,565

Securities of U.S.

Government Sponsored

Entities

292,117

294,919

-1.0

303,609

Obligations of States and

Political Subdivisions

62,186

71,283

-12.8

63,876

U.S. Treasury Securities

4,955

n/m

4,899

Total Debt Securities

Available for Sale

3,395,810

3,999,801

-15.1

3,580,486

Debt Securities Held to

Maturity:

Agency Mortgage Backed

Securities

57,927

78,565

-26.3

62,745

Corporate Securities

735,447

728,650

0.9

733,748

Obligations of States and

Political Subdivisions (2)

51,260

71,181

-28.0

53,768

Total Debt Securities

Held to Maturity (2)

844,634

878,396

-3.8

850,261

Loans

820,300

866,602

-5.3

833,967

Allowance For Credit Losses

on Loans

(14,780

)

(16,867

)

-12.4

(15,318

)

Total Loans, net

805,520

849,735

-5.2

818,649

Premises and Equipment, net

26,133

27,016

-3.3

26,129

Identifiable Intangibles, net

125

347

-63.9

178

Goodwill

121,673

0.0

121,673

Other Assets

280,885

297,310

-5.5

260,822

Total Assets

6,076,274

6,364,592

-4.5

6,161,143

Liabilities and Shareholders'

Equity:

Deposits:

Noninterest-Bearing

2,333,389

2,605,844

-10.5

2,375,958

Interest-Bearing Transaction

953,863

1,072,233

-11.0

925,455

Savings

1,642,360

1,699,388

-3.4

1,677,332

Time

82,238

96,802

-15.0

86,305

Total Deposits

5,011,850

5,474,267

-8.4

5,065,050

Securities Sold under

Repurchase Agreements

120,322

58,162

106.9

132,487

Total Short-Term

Borrowed Funds

120,322

58,162

106.9

132,487

Other Liabilities

54,145

59,269

-8.6

54,566

Total Liabilities

5,186,317

5,591,698

-7.2

5,252,103

Shareholders' Equity:

Common Equity:

Paid-In Capital

476,506

473,171

0.7

475,096

Accumulated Other

Comprehensive Loss

(168,104

)

(190,282

)

-11.7

(127,653

)

Retained Earnings

581,555

490,005

18.7

561,597

Total Shareholders' Equity

889,957

772,894

15.1

909,040

Total Liabilities and

Shareholders' Equity

6,076,274

6,364,592

-4.5

6,161,143

13. Income Statements.

(unaudited, in thousands except per-share amounts)

Q4'2024

Q4'2023

Change

Q3'2024

Interest and Loan Fee Income:

Loans

11,167

11,606

-3.8

11,441

Equity Securities

195

174

12.1

175

Debt Securities Available

for Sale

36,843

47,783

-22.9

40,829

Debt Securities Held to

Maturity

8,538

8,799

-3.0

8,587

Interest-Bearing Cash

5,659

2,690

110.4

6,762

Total Interest and Loan

Fee Income

62,402

71,052

-12.2

67,794

Interest Expense:

Transaction Deposits

128

-64.1

Savings Deposits

3,148

1,431

120.0

2,990

Time Deposits

-10.5

Bank Term Funding Program

Borrowings

n/m

2,278

Securities Sold under

Repurchase Agreements

204

359.1

254

Total Interest Expense

3,466

1,679

106.4

5,645

Net Interest and Loan

Fee Income

58,936

69,373

-15.0

62,149

Provision for Credit Losses

n/m

Noninterest Income:

Service Charges on Deposit

Accounts

3,501

3,540

-1.1

3,585

Merchant Processing

Services

2,735

2,863

-4.5

2,474

Debit Card Fees

1,902

2,067

-8.0

1,702

Trust Fees

867

764

13.5

846

ATM Processing Fees

506

622

-18.6

533

Other Service Fees

428

445

-3.8

454

Life Insurance Gains

n/m

202

Other Noninterest Income

694

690

0.6

2,129

Total Noninterest Income

10,633

10,992

-3.3

11,925

Noninterest Expense:

Salaries and Related Benefits

12,461

12,156

2.5

12,762

Occupancy and Equipment

5,219

4,958

5.3

5,256

Outsourced Data Processing

2,610

2,441

6.9

2,614

Limited Partnership

Operating Losses

1,095

1,440

-24.0

1,210

Professional Fees

369

389

-5.1

337

Courier Service

692

681

1.6

682

Other Noninterest Expense

3,407

3,452

-1.3

3,448

Total Noninterest Expense

25,853

25,517

1.3

26,309

Income Before Income Taxes

43,716

54,848

-20.3

47,765

Income Tax Provision

12,016

15,380

-21.9

12,708

Net Income

31,700

39,468

-19.7

35,057

Average Common Shares

Outstanding

26,699

26,662

0.1

26,685

Diluted Average Common

Shares Outstanding

26,701

26,664

0.1

26,686

Per Common Share Data:

Basic Earnings

1.19

1.48

-19.6

1.31

Diluted Earnings

1.19

1.48

-19.6

1.31

Dividends Paid

0.44

0.0

0.44

12/31'24YTD

12/31'23YTD

Change

Interest and Loan Fee Income:

Loans

45,286

47,116

-3.9

Equity Securities

719

630

14.1

Debt Securities Available

for Sale

167,842

190,039

-11.7

Debt Securities Held to

Maturity

34,502

35,557

-3.0

Interest-Bearing Cash

19,665

10,671

84.3

Total Interest and Loan

Fee Income

268,014

284,013

-5.6

Interest Expense:

Transaction Deposits

281

457

-38.5

Savings Deposits

10,377

2,993

246.7

Time Deposits

283

320

-11.6

Bank Term Funding Program

Borrowings

5,813

n/m

Securities Sold under

Repurchase Agreements

665

120

454.2

Total Interest Expense

17,419

3,890

347.8

Net Interest and Loan

Fee Income

250,595

280,123

-10.5

Provision (Reversal

of Provision) for

Credit Losses (1)

300

(1,150

)

n/m

Noninterest Income:

Service Charges on Deposit

14,025

14,169

-1.0

Accounts

Merchant Processing

Services

10,449

11,280

-7.4

Debit Card Fees

6,853

7,185

-4.6

Trust Fees

3,318

3,122

6.3

ATM Processing Fees

2,170

2,618

-17.1

Other Service Fees

1,770

1,765

0.3

Life Insurance Gains

202

279

n/m

Securities Losses

(125

)

n/m

Other Noninterest Income

4,368

3,229

35.3

Total Noninterest Income

43,155

43,522

-0.8

Noninterest Expense:

Salaries and Related Benefits

50,292

47,871

5.1

Occupancy and Equipment

20,673

20,520

0.7

Outsourced Data Processing

10,271

9,846

4.3

Limited Partnership

Operating Losses

5,185

5,754

-9.9

Professional Fees

1,470

1,751

-16.0

Courier Service

2,709

2,652

2.1

Other Noninterest Expense

13,791

14,822

-7.0

Total Noninterest Expense

104,391

103,216

1.1

Income Before Income Taxes

189,059

221,579

-14.7

Income Tax Provision

50,423

59,811

-15.7

Net Income

138,636

161,768

-14.3

Average Common Shares

Outstanding

26,685

26,703

-0.1

Diluted Average Common

Shares Outstanding

26,686

26,706

-0.1

Per Common Share Data:

Basic Earnings

5.20

6.06

-14.2

Diluted Earnings

5.20

6.06

-14.2

Dividends Paid

1.76

1.72

2.3

Footnotes and Abbreviations:

(1) A recovery in excess of principal charged off on the 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 December 31, 2024, September 30, 2024 and December 31, 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 Fourth Quarter 2024 Financial Results