Westamerica Bancorporation Files 2023 Annual Report on Form 10-K

TL;DR

<b>Westamerica Bancorporation reported a slight decrease in revenue and flat net income for fiscal year 2023.</b>

AI Summary

WESTAMERICA BANCORPORATION (WABC) filed a Annual Report (10-K) with the SEC on February 29, 2024. Total revenue for the year ended December 31, 2023, was $849,562, a decrease from $873,511 in the prior year. Net income for 2023 was $150,000, remaining flat compared to $150,000 in 2022. Earnings per share (EPS) for 2023 were $1.65, down from $1.68 in 2022. The company's fiscal year ends on December 31. Westamerica Bancorporation is incorporated in California.

Why It Matters

For investors and stakeholders tracking WESTAMERICA BANCORPORATION, this filing contains several important signals. The filing provides a comprehensive overview of the company's financial performance and position for the fiscal year ended December 31, 2023, offering insights into revenue trends and profitability. Key financial metrics such as revenue, net income, and EPS are detailed, allowing investors to assess the company's operational results and compare them to previous periods.

Risk Assessment

Risk Level: medium — WESTAMERICA BANCORPORATION shows moderate risk based on this filing. The company experienced a decrease in total revenue from $873,511 in 2022 to $849,562 in 2023, indicating potential headwinds or shifts in its business operations.

Analyst Insight

Investors should closely examine the factors contributing to the revenue decline and assess management's strategies to address these challenges in the upcoming fiscal year.

Financial Highlights

revenue

849,562

net Income

150,000

eps

1.65

revenue Growth

-2.74%

Key Numbers

• 849,562 — Total Revenue 2023 (Total revenue for the year ended December 31, 2023)
• 873,511 — Total Revenue 2022 (Total revenue for the year ended December 31, 2022)
• 150,000 — Net Income 2023 (Net income for the year ended December 31, 2023)
• 150,000 — Net Income 2022 (Net income for the year ended December 31, 2022)
• 1.65 — EPS 2023 (Earnings per share for the year ended December 31, 2023)
• 1.68 — EPS 2022 (Earnings per share for the year ended December 31, 2022)
• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-02-29 — Filing Date (Filed as of date)

Key Players & Entities

• WESTAMERICA BANCORPORATION (company) — FILER
• 0000311094 (company) — CENTRAL INDEX KEY
• CA (company) — STATE OF INCORPORATION
• 2023-12-31 (date) — CONFORMED PERIOD OF REPORT
• 2024-02-29 (date) — FILED AS OF DATE
• 1.65 (dollar_amount) — EPS for 2023
• 1.68 (dollar_amount) — EPS for 2022
• 849,562 (dollar_amount) — Total revenue for 2023

FAQ

Key Financial Figures

• $6.4 b — ad consolidated assets of approximately $6.4 billion, deposits of approximately $5.5 b
• $5.5 billion — $6.4 billion, deposits of approximately $5.5 billion and shareholders' equity of approximate
• $773 million — d shareholders' equity of approximately $773 million. The Company assesses and is careful t
• $10 billion — enting, examining and (as to banks with $10 billion or more in assets) enforcing compliance
• $250 thousand — se risk management. Made permanent the $250 thousand limit for federal deposit insurance. A

Filing Documents

• wabc20231231_10k.htm (10-K) — 5388KB
• ex_628056.htm (EX-21) — 4KB
• ex_628057.htm (EX-23.1) — 3KB
• ex_628058.htm (EX-31.1) — 8KB
• ex_628059.htm (EX-31.2) — 8KB
• ex_628060.htm (EX-32.1) — 4KB
• ex_628061.htm (EX-32.2) — 4KB
• ex_628062.htm (EX-97) — 28KB
• fiveyearperformance.jpg (GRAPHIC) — 40KB
• tenyearperformance.jpg (GRAPHIC) — 47KB
• 0001171843-24-001054.txt (&nbsp;) — 22802KB
• wabc-20231231.xsd (EX-101.SCH) — 117KB
• wabc-20231231_cal.xml (EX-101.CAL) — 98KB
• wabc-20231231_def.xml (EX-101.DEF) — 741KB
• wabc-20231231_lab.xml (EX-101.LAB) — 700KB
• wabc-20231231_pre.xml (EX-101.PRE) — 811KB
• wabc20231231_10k_htm.xml (XML) — 5883KB

Business

Business 2 Item 1A

Risk Factors

Risk Factors 9 Item 1B Unresolved Staff Comments 16 Item 1C Cybersecurity 16 Item 2

Properties

Properties 17 Item 3

Legal Proceedings

Legal Proceedings 17 Item 4 Mine Safety Disclosures 17 PART II Item 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 17 Item 6 [Reserved] 19 Item 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 20 Item 7A

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 50 Item 8

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 50 Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 93 Item 9A

Controls and Procedures

Controls and Procedures 93 Item 9B Other Information 93 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 93 PART III Item 10 Directors, Executive Officers and Corporate Governance 93 Item 11

Executive Compensation

Executive Compensation 93 Item 12

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 94 Item 13 Certain Relationships, Related Transactions and Director Independence 94 Item 14 Principal Accountant Fees and Services 94 PART IV Item 15 Exhibits, Financial Statement Schedules 94 Item 16 Form 10-K Summary 96

Signatures

Signatures 97 -1-

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Report on Form 10-K contains forward-looking statements about Westamerica Bancorporation for which it claims the protection of the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include, but are not limited to: (i) projections of revenues, expenses, future credit quality and performance, the appropriateness of the allowance for credit losses, loan growth or reduction, mitigation of risk in the Company's loan and investment securities portfolios, income or loss, earnings or loss per share, the payment or nonpayment of dividends, stock repurchases, capital structure and other financial items; (ii) statements of plans, objectives and expectations of the Company or its management or board of directors, including those relating to products or services; (iii) statements of future economic performance; and (iv) statements of assumptions underlying such statements. Words such as "believes", "anticipates", "expects", "estimates", "intends", "targeted", "projected", "forecast", "continue", "remain", "will", "should", "may" and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. These forward-looking statements are based on the current knowledge and belief of the management ("Management") of Westamerica Bancorporation (the "Company") and include information concerning the Company's possible or assumed future financial condition and results of operations. A number of factors, some of which are beyond the Company's ability to predict or control, could cause future results to differ materially from those contemplated. These factors include but are not limited to (1) the length and severity of any difficulties in the global, national and California economies and the effects of government efforts to address those difficulties; (2) liquidity levels in capital markets; (3) fluctu

BUSINESS

ITEM 1. BUSINESS Westamerica Bancorporation (the "Company") is a bank holding company registered under the Bank Holding Company Act of 1956, as amended ("BHCA"). Its legal headquarters are located at 1108 Fifth Avenue, San Rafael, California 94901. Its principal administrative offices are located at 4550 Mangels Boulevard, Fairfield, California 94534, its telephone number is (707) 863-6000 and its website address is www.westamerica.com. The Company provides a full range of banking services to individual and commercial customers in Northern and Central California through its subsidiary bank, Westamerica Bank (the "Bank"). The Bank is a California-chartered commercial bank whose deposit are insured by the Federal Deposit Insurance Corporation (the "FDIC") up to applicable limits. The principal communities served are located in Northern and Central California, from Mendocino, Lake and Nevada Counties in the north to Kern County in the south. The Company's strategic focus is on the banking needs of small businesses. In addition, the Bank owns 100% of the capital stock of Community Banker Services Corporation ("CBSC"), a company engaged in providing the Company and its subsidiaries with data processing services and other support functions. -2- The Company was incorporated under the laws of the State of California in 1972 as "Independent Bankshares Corporation" pursuant to a plan of reorganization among three previously unaffiliated Northern California banks. The Company operated as a multi-bank holding company until mid-1983, at which time the then six subsidiary banks were merged into a single bank named Westamerica Bank and the name of the holding company was changed to Westamerica Bancorporation. The Company acquired five banks within its immediate market area during the early to mid 1990's. In April 1997, the Company acquired ValliCorp Holdings, Inc., parent company of ValliWide Bank, the largest independent bank holding company headquartered in Central Californ