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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________

FORM 8-K

_________________

CURRENT REPORT

Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  July 18, 2024

_______________________________

WESTAMERICA BANCORPORATION

(Exact name of registrant as specified in its charter)

_______________________________

California001-0938394-2156203
(State or Other Jurisdiction of Incorporation)(Commission File Number)(I.R.S. Employer Identification No.)

1108 Fifth Avenue

San Rafael, California 94901

(Address of Principal Executive Offices) (Zip Code)

(707) 863-6000

(Registrant's telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

_______________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, no par valueWABCThe Nasdaq Stock Market, LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 
 
Item 2.02. Results of Operations and Financial Condition.

On July 18, 2024, the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

Exhibit 99.1    Press release dated July 18, 2024
Exhibit 104     Cover Page Interactive Data File (embedded within the Inline XBRL document)

 
 

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 WESTAMERICA BANCORPORATION
   
  
Date: July 18, 2024By: /s/ Anela Jonas        
  Anela Jonas
  Senior Vice President and Chief Financial Officer
  

 

EXHIBIT 99.1

Westamerica Bancorporation Reports Second Quarter 2024 Financial Results

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 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 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)
    % 
  Q2'2024Q2'2023ChangeQ1'2024
 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%
      
    % 
  6/30'24YTD6/30'23YTDChange 
 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)
    % 
  Q2'2024Q2'2023ChangeQ1'2024
 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%
      
    % 
  6/30'24YTD6/30'23YTDChange 
      
 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)
    % 
  Q2'2024Q2'2023ChangeQ1'2024
      
 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%
      
    % 
  6/30'24YTD6/30'23YTDChange 
      
 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)
    % 
  Q2'2024Q2'2023ChangeQ1'2024
      
 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%
      
    % 
  6/30'24YTD6/30'23YTDChange 
      
 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 
  AverageIncome/Yield (a) / 
  VolumeExpenseRate (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  8,769 4.06% 
 Agency Mortgage Backed    
 Securities 70,804  401 2.27% 
 Corporate Securities 730,978  7,815 4.28% 
 Obligations of States and    
 Political Subdivisions    
 (FTE) 62,513  553 3.54% 
 Total Interest-Bearing Cash 363,419  4,961 5.40% 
      
 Interest Expense Paid:    
 Total Earning Assets  6,145,626  5,307 0.35% 
 Total Interest-Bearing    
 Liabilities 3,001,786  5,307 0.71% 
 Total Interest-Bearing    
 Deposits 2,717,597  2,460 0.36% 
 Interest-Bearing Transaction 981,703  69 0.03% 
 Savings 1,642,806  2,322 0.57% 
 Time less than $100K 58,367  49 0.34% 
 Time greater than $100K 34,721  20 0.23% 
 Total Short-Term Borrowings  284,189  2,847 4.02% 
 Bank Term Funding Program    
 Borrowings 200,000  2,692 5.40% 
 Securities Sold under    
 Repurchase Agreements 84,189  155 0.74% 
      
 Net Interest Income and     
 Margin (FTE) $64,100 4.15% 
  Q2'2023 
  AverageIncome/Yield (a) / 
  VolumeExpenseRate (a) 
 Interest & Loan Fee Income Earned:    
 Total Earning Assets (FTE)$6,457,270 $70,888 4.38% 
 Total Loans (FTE) 926,795  11,937 5.17% 
 Commercial Loans (FTE) 157,975  2,777 7.05% 
 Commercial Real Estate    
 Loans  491,902  5,732 4.67% 
 Consumer Loans 276,918  3,428 4.97% 
 Total Investments (FTE) 5,365,377  56,841 4.22% 
 Total Debt Securities    
 Available for Sale (FTE) 4,460,339  47,752 4.26% 
 Corporate Securities 2,210,511  15,456 2.80% 
 Collateralized Loan    
 Obligations 1,555,328  26,754 6.81% 
 Agency Mortgage Backed    
 Securities 291,270  1,765 2.42% 
 Securities of U.S.    
 Government sponsored    
 entities 306,983  2,776 3.62% 
 Obligations of States and    
 Political Subdivisions    
 (FTE) 82,074  617 3.00% 
 Other Debt Securities    
 Available for Sale (FTE) 14,173  384 10.84% 
 Total Debt Securities Held to    
 Maturity (FTE) 905,038  9,089 4.02% 
 Agency Mortgage Backed    
 Securities 94,960  510 2.15% 
 Corporate Securities 724,157  7,816 4.32% 
 Obligations of States and    
 Political Subdivisions    
 (FTE) 85,921  763 3.56% 
 Total Interest-Bearing Cash 165,098  2,110 5.06% 
      
 Interest Expense Paid:    
 Total Earning Assets  6,457,270  607 0.04% 
 Total Interest-Bearing    
 Liabilities 3,144,264  607 0.08% 
 Total Interest-Bearing    
 Deposits 3,046,185  582 0.08% 
 Interest-Bearing Transaction 1,159,653  104 0.04% 
 Savings 1,763,410  396 0.09% 
 Time less than $100K 69,221  51 0.30% 
 Time greater than $100K 53,901  31 0.23% 
 Total Short-Term Borrowings  98,079  25 0.10% 
 Securities Sold under    
 Repurchase Agreements 98,079  25 0.10% 
      
 Net Interest Income and    
 Margin (FTE) $70,281 4.34% 
      
6. Noninterest Income.    
  (dollars in thousands except per-share amounts)
    % 
  Q2'2024Q2'2023ChangeQ1'2024
 Service Charges on Deposit    
 Accounts$3,469 $3,459 0.3%$3,470 
 Merchant Processing    
 Services 2,733  2,869 -4.7% 2,507 
 Debit Card Fees 1,706  1,759 -3.0% 1,543 
 Trust Fees 811  810 0.1% 794 
 ATM Processing Fees 540  702 -23.1% 591 
 Other Service Fees 450  458 -1.7% 438 
 Securities Losses -  (125)n/m  - 
 Other Noninterest Income 791  768 3.0% 754 
 Total Noninterest Income$10,500 $10,700 -1.9%$10,097 
      
 Operating Ratios:    
 Total Revenue (FTE)$74,600 $80,981 -7.9%$76,191 
 Noninterest Income /    
 Revenue (FTE) 14.1% 13.2%  13.3%
 Service Charges /    
 Avg. Deposits (a) 0.27% 0.24%  0.26%
 Total Revenue (FTE) Per    
 Avg. Common Share (a)$11.25 $12.19 -7.7%$11.49 
      
    % 
  6/30'24YTD6/30'23YTDChange 
 Service Charges on Deposit    
 Accounts$6,939 $6,924 0.2% 
 Merchant Processing    
 Services 5,240  5,506 -4.8% 
 Debit Card Fees 3,249  3,401 -4.5% 
 Trust Fees 1,605  1,575 1.9% 
 ATM Processing Fees 1,131  1,356 -16.6% 
 Other Service Fees 888  857 3.6% 
 Securities Losses -  (125)n/m  
 Other Noninterest Income 1,545  1,755 -12.0% 
   Total Noninterest Income$20,597 $21,249 -3.1% 
      
 Operating Ratios:    
 Total Revenue (FTE)$150,791 $161,092 -6.4% 
 Noninterest Income /    
 Revenue (FTE) 13.7% 13.2%  
 Service Charges /    
 Avg. Deposits (a) 0.26% 0.24%  
 Total Revenue (FTE) Per    
 Avg. Common Share (a)$11.37 $12.14 -6.4% 
      
7. Noninterest Expense.    
  (dollars in thousands)
    % 
  Q2'2024Q2'2023ChangeQ1'2024
      
 Salaries and Related Benefits$12,483 $11,828 5.5%$12,586 
 Occupancy and Equipment 5,158  5,012 2.9% 5,040 
 Outsourced Data Processing 2,511  2,488 0.9% 2,536 
 Limited Partnership    
 Operating Losses 1,440  1,440 0.0% 1,440 
 Professional Fees 362  485 -25.4% 402 
 Courier Service 686  611 12.3% 649 
 Other Noninterest Expense 3,490  3,975 -12.2% 3,446 
 Total Noninterest Expense$26,130 $25,839 1.1%$26,099 
      
 Operating Ratios:    
 Noninterest Expense /    
 Avg. Earning Assets (a) 1.71% 1.60%  1.72%
 Noninterest Expense /    
 Revenues (FTE) 35.0% 31.9%  34.3%
      
    % 
  6/30'24YTD6/30'23YTDChange 
      
 Salaries and Related Benefits$25,069 $23,895 4.9% 
 Occupancy and Equipment 10,198  10,497 -2.8% 
 Outsourced Data Processing 5,047  4,932 2.3% 
 Limited Partnership    
 Operating Losses 2,880  2,874 0.2% 
 Professional Fees 764  961 -20.5% 
 Courier Service 1,335  1,226 8.9% 
 Other Noninterest Expense 6,936  7,664 -9.5% 
 Total Noninterest Expense$52,229 $52,049 0.3% 
      
 Operating Ratios:    
 Noninterest Expense /    
 Avg. Earning Assets (a) 1.71% 1.60%  
 Noninterest Expense /    
 Revenues (FTE) 34.6% 32.3%  
      
8. Allowance for Credit Losses.    
  (dollars in thousands)
    % 
  Q2'2024Q2'2023ChangeQ1'2024
      
 Average Total Loans$838,016 $926,795 -9.6%$853,553 
      
 Beginning of Period    
 Allowance for Credit    
 Losses on Loans (ACLL)$15,879 $19,509 -18.6%$16,867 
 Provision for    
 Credit Losses -  - n/m  300 
 Net ACLL Recoveries    
 (Losses) 73  (1,029)-107.1% (1,288)
 End of Period ACLL$15,952 $18,480 -13.7%$15,879 
      
 Gross ACLL Recoveries /    
 Gross ACLL Losses  105% 38%  36%
 Net ACLL (Recoveries)    
 Losses /    
 Avg. Total Loans (a) -0.04% 0.45%  0.61%
      
    % 
  6/30'24YTD6/30'23YTDChange 
      
 Average Total Loans$845,785 $936,277 -9.7% 
      
 Beginning of Period ACLL $16,867 $20,284 -16.8% 
 Provision (Reversal    
 of Provision) for    
 Credit Losses (1) 300  (1,550)n/m  
 Net ACLL Losses (1,215) (254)378.3% 
 End of Period ACLL$15,952 $18,480 -13.7% 
      
 Gross ACLL Recoveries /    
 Gross ACLL Losses  66% 93%  
 Net ACLL Losses /    
 Avg. Total Loans (a) 0.29% 0.05%  
      
  (dollars in thousands)
    % 
  6/30/246/30/23Change3/31/24
 Allowance for Credit Losses    
 on Loans$15,952 $18,480 -13.7%$15,879 
 Allowance for Credit Losses    
 on Held to Maturity    
 Securities 1  1 0.0% 1 
 Total Allowance for Credit    
 Losses$15,953 $18,481 -13.7%$15,880 
      
 Allowance for Unfunded    
 Credit Commitments$201 $201 0.0%$201 
      
9. Credit Quality.    
  (dollars in thousands)
    % 
  6/30/246/30/23Change3/31/24
 Nonperforming Loans:    
 Nonperforming Nonaccrual    
 Loans$971 $192 405.7%$957 
 Performing Nonaccrual    
 Loans -  5 n/m  1 
 Total Nonaccrual Loans 971  197 392.9% 958 
 Accruing Loans 90+ Days    
 Past Due 580  656 -11.6% 525 
 Total Nonperforming Loans$1,551 $853 81.8%$1,483 
      
 Total Loans Outstanding $831,842 $919,583 -9.5%$844,677 
      
 Total Assets  6,312,145  6,582,740 -4.1% 6,464,685 
      
 Loans:    
 Allowance for Credit Losses    
 on Loans$15,952 $18,480 -13.7%$15,879 
 Allowance for Credit Losses    
   on Loans / Loans 1.92% 2.01%  1.88%
 Nonperforming Loans /    
 Total Loans 0.19% 0.09%  0.18%
      
10. Liquidity.    
      
 At June 30, 2024, the Company had $486,124 thousand in cash balances. During the twelve months ending June 30, 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 June 30, 2024, the Company’s debt securities which qualify as collateral for borrowing totaled $3,693,459 thousand. In the ordinary course of business, the Company pledges debt securities as collateral for certain depository customers; at June 30, 2024, the Company had pledged $759,338 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 June 30, 2024, the Company had pledged $1,067,510 thousand in debt securities at the Federal Reserve Bank. During the six months ended June 30, 2024, the Company’s average borrowings from the Federal Reserve Bank and other correspondent banks were $200,000 thousand and $-0- thousand, respectively, and at June 30, 2024, the Company’s borrowings from the Federal Reserve Bank and other correspondent banks were $200,000 thousand and $-0- thousand, respectively. At June 30, 2024, the Company had access to borrowing from the Federal Reserve up to $867,510 thousand based on collateral pledged at June 30, 2024. At June 30, 2024, the Company’s estimated unpledged collateral qualifying debt securities totaled $1,462,966 thousand. Debt securities eligible as collateral are shown at market value unless otherwise noted.
      
     (in thousands)
     6/30/24
 Debt Securities Eligible as    
 Collateral:    
 Corporate Securities   $2,549,866 
 Collateralized Loan    
 Obligations rated AAA    405,308 
 Obligations of States and    
 Political Subdivisions    130,006 
 Agency Mortgage Backed    
 Securities    286,771 
 Securities of U.S. Government    
 Sponsored Entities    116,688 
 Securities of U.S. Government    
 Sponsored Entities (Par Value)    200,000 
 U.S. Treasury Securities    4,820 
 Total Debt Securities Eligible    
 as Collateral   $3,693,459 
      
 Debt Securities Pledged    
 as Collateral:    
 Deposits by Public Entities   ($759,338)
 Securities Sold under    
 Repurchase Agreements    (394,283)
 Debt Securities Pledged      
 at the Federal Reserve Bank    ($1,067,510)
 Other    (9,362)
 Total Debt Securities Pledged    
 as Collateral   ($2,230,493)
      
 Estimated Debt Securities    
 Available to Pledge   $1,462,966 
      
11. Capital.    
  (in thousands, except per-share amounts)
    % 
  6/30/246/30/23Change3/31/24
      
 Shareholders' Equity$815,600 $651,862 25.1%$791,691 
 Total Assets 6,312,145  6,582,740 -4.1% 6,464,685 
 Shareholders' Equity/    
 Total Assets 12.92% 9.90%  12.25%
 Shareholders' Equity/    
 Total Loans 98.05% 70.89%  93.73%
 Tangible Common Equity    
 Ratio 11.21% 8.20%  10.56%
 Common Shares Outstanding 26,683  26,648 0.1% 26,678 
 Common Equity Per Share$30.57 $24.46 25.0%$29.68 
 Market Value Per Common    
 Share 48.53  38.30 26.7% 48.88 
      
  (shares in thousands)
    % 
  Q2'2024Q2'2023ChangeQ1'2024
 Share Repurchase Programs:    
 Total Shares Repurchased /    
 Canceled -  - n/m  4 
 Average Repurchase Price$- $- n/m $45.58 
 Net Shares Issued (5) - n/m  (7)
      
    % 
  6/30'24YTD6/30'23YTDChange 
      
 Total Shares Repurchased /    
 Canceled 4  274 n/m  
 Average Repurchase Price$45.58 $50.11 n/m  
 Net Shares (Issued)     
 Repurchased (12) 265 n/m  
      
12. Period-End Balance Sheets.    
  (unaudited, dollars in thousands)
    % 
  6/30/246/30/23Change3/31/24
 Assets:    
 Cash and Due from Banks$486,124 $266,187 82.6%$434,250 
      
 Debt Securities Available for    
 Sale:    
 Corporate Securities 1,855,618  1,901,504 -2.4% 1,879,980 
 Collateralized Loan    
 Obligations 1,255,110  1,514,962 -17.2% 1,420,584 
 Agency Mortgage Backed    
 Securities 222,806  259,190 -14.0% 225,564 
 Securities of U.S.    
 Government sponsored    
 entities 291,206  291,402 -0.1% 292,583 
 Obligations of States and    
 Political Subdivisions 69,758  79,400 -12.1% 70,466 
 U.S. Treasury Securities 4,820  - n/m  - 
 Total Debt Securities    
 Available for Sale 3,699,318  4,046,458 -8.6% 3,889,177 
      
 Debt Securities Held to    
 Maturity:    
 Agency Mortgage Backed    
 Securities 67,777  91,141 -25.6% 73,023 
 Corporate Securities 732,049  725,252 0.9% 730,350 
 Obligations of States and    
 Political Subdivisions (2) 61,042  83,963 -27.3% 65,352 
 Total Debt Securities    
 Held to Maturity (2) 860,868  900,356 -4.4% 868,725 
      
 Loans 831,842  919,583 -9.5% 844,677 
 Allowance For Credit Losses    
 on Loans (15,952) (18,480)-13.7% (15,879)
 Total Loans, net 815,890  901,103 -9.5% 828,798 
      
 Premises and Equipment, net 26,275  27,908 -5.9% 26,458 
 Identifiable Intangibles, net 234  463 -49.5% 291 
 Goodwill  121,673  121,673 0.0% 121,673 
 Other Assets 301,763  318,592 -5.3% 295,313 
      
 Total Assets$6,312,145 $6,582,740 -4.1%$6,464,685 
      
 Liabilities and Shareholders'    
 Equity:    
 Deposits:    
 Noninterest-Bearing$2,459,467 $2,721,046 -9.6%$2,514,161 
 Interest-Bearing Transaction 936,186  1,133,006 -17.4% 1,066,038 
 Savings 1,646,781  1,735,083 -5.1% 1,681,921 
 Time 89,006  116,792 -23.8% 92,805 
 Total Deposits 5,131,440  5,705,927 -10.1% 5,354,925 
      
 Bank Term Funding    
 Program Borrowings 200,000  - -27.4% 200,000 
 Securities Sold under    
 Repurchase Agreements 100,167  138,005 n/m  50,334 
 Total Short-Term    
 Borrowed Funds 300,167  138,005 117.5% 250,334 
      
 Other Liabilities 64,938  86,946 -25.3% 67,735 
 Total Liabilities 5,496,545  5,930,878 -7.3% 5,672,994 
      
 Shareholders' Equity:    
 Common Equity:    
 Paid-In Capital 474,618  471,510 0.7% 473,989 
 Accumulated Other    
 Comprehensive Loss (197,300) (252,043)-21.7% (196,857)
 Retained Earnings 538,282  432,395 24.5% 514,559 
 Total Shareholders' Equity 815,600  651,862 25.1% 791,691 
      
 Total Liabilities and     
 Shareholders' Equity$6,312,145 $6,582,740 -4.1%$6,464,685 
      
13. Income Statements.    
  (unaudited, in thousands except per-share amounts)
    % 
  Q2'2024Q2'2023ChangeQ1'2024
 Interest and Loan Fee Income:    
 Loans$11,354 $11,845 -4.1%$11,324 
 Equity Securities 175  152 15.1% 174 
 Debt Securities Available    
 for Sale 43,927  47,452 -7.4% 46,243 
 Debt Securities Held to    
 Maturity 8,655  8,930 -3.1% 8,722 
 Interest-Bearing Cash 4,961  2,110 135.1% 2,283 
 Total Interest and Loan    
 Fee Income 69,072  70,489 -2.0% 68,746 
      
 Interest Expense:    
 Transaction Deposits 69  104 -33.7% 119 
 Savings Deposits 2,322  396 486.4% 1,917 
 Time Deposits 69  82 -15.9% 70 
 Bank Term Funding Program    
 Borrowings 2,692  - n/m  843 
 Securities Sold under    
 Repurchase Agreements 155  25 509.0% 52 
 Total Interest Expense 5,307  607 774.3% 3,001 
      
 Net Interest and Loan    
 Fee Income 63,765  69,882 -8.8% 65,745 
      
 Provision for Credit Losses -  - n/m  300 
      
 Noninterest Income:    
      
 Service Charges on Deposit    
 Accounts 3,469  3,459 0.3% 3,470 
 Merchant Processing    
 Services 2,733  2,869 -4.7% 2,507 
 Debit Card Fees 1,706  1,759 -3.0% 1,543 
 Trust Fees 811  810 0.1% 794 
 ATM Processing Fees 540  702 -23.1% 591 
 Other Service Fees 450  458 -1.7% 438 
 Securities Losses -  (125)n/m  - 
 Other Noninterest Income 791  768 3.0% 754 
 Total Noninterest Income 10,500  10,700 -1.9% 10,097 
      
 Noninterest Expense:    
 Salaries and Related Benefits 12,483  11,828 5.5% 12,586 
 Occupancy and Equipment 5,158  5,012 2.9% 5,040 
 Outsourced Data Processing 2,511  2,488 0.9% 2,536 
 Limited Partnership    
 Operating Losses 1,440  1,440 0.0% 1,440 
 Professional Fees 362  485 -25.4% 402 
 Courier Service 686  611 12.3% 649 
 Other Noninterest Expense 3,490  3,975 -12.2% 3,446 
 Total Noninterest Expense 26,130  25,839 1.1% 26,099 
      
 Income Before Income Taxes 48,135  54,743 -12.1% 49,443 
 Income Tax Provision 12,673  14,495 -12.6% 13,026 
 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 
      
 Per Common Share Data:    
 Basic Earnings$1.33 $1.51 -11.9%$1.37 
 Diluted Earnings 1.33  1.51 -11.9% 1.37 
 Dividends Paid 0.44  0.42 4.8% 0.44 
      
    % 
  6/30'24YTD6/30'23YTDChange 
 Interest and Loan Fee Income:    
 Loans$22,678 $23,585 -3.8% 
 Equity Securities 349  304 14.8% 
 Debt Securities Available    
 for sale 90,170  94,262 -4.3% 
 Debt Securities Held to    
 Maturity 17,377  17,910 -3.0% 
 Interest-Bearing Cash 7,244  4,052 78.8% 
 Total Interest and Loan    
 Fee Income 137,818  140,113 -1.6% 
      
 Interest Expense:    
 Transaction Deposits 188  198 -5.1% 
 Savings Deposits 4,239  676 527.1% 
 Time Deposits 139  166 -16.3% 
 Bank Term Funding Program    
 Borrowings 3,535  - n/m  
 Securities Sold under    
 Repurchase Agreements 207  38 444.7% 
 Total Interest Expense 8,308  1,078 670.7% 
      
 Net Interest and Loan    
 Fee Income 129,510  139,035 -6.9% 
      
 Provision (Reversal    
 of Provision) for    
 Credit Losses (1) 300  (1,550)n/m  
      
 Noninterest Income:    
      
 Service Charges on Deposit 6,939  6,924 0.2% 
 Accounts    
 Merchant Processing    
 Services 5,240  5,506 -4.8% 
 Debit Card Fees 3,249  3,401 -4.5% 
 Trust Fees 1,605  1,575 1.9% 
 ATM Processing Fees 1,131  1,356 -16.6% 
 Other Service Fees 888  857 3.6% 
 Securities Losses -  (125)n/m  
 Other Noninterest Income 1,545  1,755 -12.0% 
 Total Noninterest Income 20,597  21,249 -3.1% 
      
 Noninterest Expense:    
 Salaries and Related Benefits 25,069  23,895 4.9% 
 Occupancy and Equipment 10,198  10,497 -2.8% 
 Outsourced Data Processing 5,047  4,932 2.3% 
 Limited Partnership    
 Operating Losses 2,880  2,874 0.2% 
 Professional Fees 764  961 -20.5% 
 Courier Service 1,335  1,226 8.9% 
 Other Noninterest Expense 6,936  7,664 -9.5% 
 Total Noninterest Expense 52,229  52,049 0.3% 
      
 Income Before Income Taxes 97,578  109,785 -11.1% 
 Income Tax Provision 25,699  29,086 -11.6% 
 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% 
      
 Per Common Share Data:    
 Basic Earnings$2.69 $3.02 -10.9% 
 Diluted Earnings 2.69  3.02 -10.9% 
 Dividends Paid 0.88  0.84 4.8% 
      
      
 Footnotes and Abbreviations:    
      
 (1) A recovery of a previously charged off 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 June 30, 2024, March 31, 2024 and June 30, 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    
      

v3.24.2
Cover
Jul. 18, 2024
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Jul. 18, 2024
Entity File Number 001-09383
Entity Registrant Name WESTAMERICA BANCORPORATION
Entity Central Index Key 0000311094
Entity Tax Identification Number 94-2156203
Entity Incorporation, State or Country Code CA
Entity Address, Address Line One 1108 Fifth Avenue
Entity Address, City or Town San Rafael
Entity Address, State or Province CA
Entity Address, Postal Zip Code 94901
City Area Code 707
Local Phone Number 863-6000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, no par value
Trading Symbol WABC
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Westamerica Bancorporation (NASDAQ:WABC)
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Westamerica Bancorporation (NASDAQ:WABC)
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