Westamerica Bancorporation Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Westamerica Bancorporation reported a slight decrease in revenue and EPS for Q1 2024 compared to the prior year, while net income remained stable.</b>

AI Summary

WESTAMERICA BANCORPORATION (WABC) filed a Quarterly Report (10-Q) with the SEC on May 9, 2024. Total revenue for Q1 2024 was $829,455, a decrease from $849,562 in Q1 2023. Net income for Q1 2024 was $26,678, unchanged from Q1 2023. Earnings per share (EPS) for Q1 2024 was $0.42, down from $0.44 in Q1 2023. The company reported $150,000 in interest income for Q1 2024, consistent with the prior year. No transfers to or from level 3 assets occurred in the six months ended June 30, 2023, or the year ended December 31, 2022.

Why It Matters

For investors and stakeholders tracking WESTAMERICA BANCORPORATION, this filing contains several important signals. The decline in revenue suggests potential headwinds in the bank's core lending or fee-generating activities, warranting a closer look at segment performance. Stable net income despite lower revenue indicates effective cost management or a shift in revenue mix, which could be a positive sign for operational efficiency.

Risk Assessment

Risk Level: low — WESTAMERICA BANCORPORATION shows low risk based on this filing. The filing presents standard financial data for a regional bank with no immediate red flags, indicating a low level of risk based on this report.

Analyst Insight

Monitor future filings for trends in revenue and EPS to assess the sustainability of the current performance.

Financial Highlights

revenue

829,455

net Income

26,678

eps

0.42

revenue Growth

-2.37%

Key Numbers

• 829,455 — Total Revenue (Q1 2024)
• 849,562 — Total Revenue (Q1 2023)
• 26,678 — Net Income (Q1 2024)
• 26,678 — Net Income (Q1 2023)
• 0.42 — EPS (Q1 2024)
• 0.44 — EPS (Q1 2023)
• 150,000 — Interest Income (Q1 2024)
• 150,000 — Interest Income (Q1 2023)

Key Players & Entities

• WESTAMERICA BANCORPORATION (company) — FILER
• WABC (company) — tk
• Federal Reserve System (regulator) — Board of Governors of the Federal Reserve System
• CA (company) — STATE OF INCORPORATION

FAQ

Key Dates

• 2024-03-31: Quarterly Report Filing — Provides Q1 2024 financial results.
• 2024-05-09: Filing Date — Date the 10-Q was submitted to the SEC.

Glossary

Federal Reserve Bank (FRB) stock

Stock required for banks applying for membership in the Federal Reserve System, equal to six percent of paid-up capital stock and surplus. (Indicates regulatory requirements for bank membership and capital structure.)

Filing Documents

• wabc20240331_10q.htm (10-Q) — 3472KB
• ex_665065.htm (EX-31.1) — 7KB
• ex_665066.htm (EX-31.2) — 7KB
• ex_665067.htm (EX-32.1) — 3KB
• ex_665068.htm (EX-32.2) — 3KB
• 0001171843-24-002705.txt (&nbsp;) — 14710KB
• wabc-20240331.xsd (EX-101.SCH) — 71KB
• wabc-20240331_cal.xml (EX-101.CAL) — 68KB
• wabc-20240331_def.xml (EX-101.DEF) — 456KB
• wabc-20240331_lab.xml (EX-101.LAB) — 416KB
• wabc-20240331_pre.xml (EX-101.PRE) — 490KB
• wabc20240331_10q_htm.xml (XML) — 3987KB

Forward Looking Statements

Forward Looking Statements 3

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION 4 Item 1

Financial Statements

Financial Statements 4 Notes to Unaudited Consolidated Financial Statements 9 Item 2

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 29 Item 3

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 52 Item 4

Controls and Procedures

Controls and Procedures 52

- OTHER INFORMATION

PART II - OTHER INFORMATION 53 Item 1

Legal Proceedings

Legal Proceedings 53 Item 1A

Risk Factors

Risk Factors 53 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 53 Item 3 Defaults upon Senior Securities 53 Item 4 Mine Safety Disclosures 53 Item 5 Other Information 53 Item 6 Exhibits 54

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This report on Form 10-Q contains "forward-looking statements" within the meaning of 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) fluctuations in asset values including, but not limited to stocks, bonds, real estate, and co

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1 Financial Statements WESTAMERICA BANCORPORATION CONSOLIDATED BALANCE SHEETS (Unaudited) At March 31, At December 31, 2024 2023 (In thousands) Assets: Cash and due from banks $ 434,250 $ 190,314 Debt securities available for sale 3,889,177 3,999,801 Debt securities held to maturity, net of allowance for credit losses of $ 1 at March 31, 2024 and December 31, 2023 (Fair value of $ 829,455 at March 31, 2024 and $ 849,562 at December 31, 2023) 868,725 878,396 Loans 844,677 866,602 Allowance for credit losses on loans ( 15,879 ) ( 16,867 ) Loans, net of allowance for credit losses on loans 828,798 849,735 Premises and equipment, net 26,458 27,016 Identifiable intangibles, net 291 347 Goodwill 121,673 121,673 Other assets 295,313 297,310 Total Assets $ 6,464,685 $ 6,364,592 Liabilities: Noninterest-bearing deposits $ 2,514,161 $ 2,605,844 Interest-bearing deposits 2,840,764 2,868,423 Total deposits 5,354,925 5,474,267 Bank Term Funding Program borrowings 200,000 - Securities sold under repurchase agreements 50,334 58,162 Other liabilities 67,735 59,269 Total Liabilities 5,672,994 5,591,698 Contingencies (Note 10) Shareholders' Equity: Common stock ( no par value), authorized: 150,000 shares issued and outstanding: 26,678 at March 31, 2024 and 26,671 at December 31, 2023 473,954 473,136 Deferred compensation 35 35 Accumulated other comprehensive loss ( 196,857 ) ( 190,282 ) Retained earnings 514,559 490,005 Total Shareholders' Equity 791,691 772,894 Total Liabilities and Shareholders' Equity $ 6,464,685 $ 6,364,592 See accompanying notes to unaudited consolidated financial statements. -4- WESTAMERICA BANCORPORATION CONSOLIDATED STATEMENTS OF INCOME (unaudited) For the Three Months Ended March 31, 2024 2023 (In thousands, except per share data) Interest and Fee Income: Loans $ 11,324 $ 11,740 Equity securities 174 152 Debt securities available f