Welcome to our dedicated page for Westamerica Bancorporation news (Ticker: WABC), a resource for investors and traders seeking the latest updates and insights on Westamerica Bancorporation stock.
Westamerica Bancorporation (symbol: WABC) is a regional community bank headquartered in San Rafael, California. With approximately $7.5 billion in assets, the company primarily serves commercial clients, including smaller businesses, across central and northern California. Its service area extends from Mendocino and Lake counties to Kern County and reaches east to Nevada County.
The bank’s core business operations generate revenue through net interest income and deposit service charges, the latter forming a significant part of its noninterest income. A major milestone for the company was achieving a net interest income of $66.1 million on a fully-taxable equivalent (FTE) basis in the first quarter of 2024. This compares to $69.7 million in the fourth quarter of 2023, highlighting steady financial performance despite varying economic conditions.
Westamerica Bancorporation prides itself on maintaining a low-cost deposit base. In the first quarter of 2024, non-interest-bearing checking accounts comprised 47% of total deposits. This low-cost funding structure has allowed the company to fully fund its interest-earning assets without borrowing from the Federal Reserve Bank or correspondent banks. The annualized cost of funding loan and bond portfolios was 0.20% in the first quarter of 2024.
Operating expenses are another area where the company excels, consistently maintaining effective cost controls. For instance, first-quarter 2024 operating expenses constituted 34% of total revenues on a fully-taxable equivalent basis. This efficient management contributes to robust returns on equity, which were 15.2% annualized for the same period.
Despite economic fluctuations, Westamerica has maintained stable nonperforming assets, totaling $1.5 million in the first quarter of 2024. The company’s conservative loan underwriting practices have played a crucial role in achieving this stability. The Allowance for Credit Losses on Loans was $15.9 million at March 31, 2024, reflecting a proactive approach to risk management.
The company also reported strong noninterest income, totaling $10.1 million in the first quarter of 2024. Although this is a slight decrease from the $11.0 million reported in the fourth quarter of 2023, it includes various income streams such as debit card fees and merchant processing services fees.
Recent achievements of the company include a $0.44 per common share dividend paid to shareholders during the first quarter of 2024 and maintaining a high annualized yield earned on loans, bonds, and cash at 4.50%.
For additional information, contact:
Westamerica Bancorporation
1108 Fifth Avenue, San Rafael, CA 94901
Robert A. Thorson – SVP & Chief Financial Officer
707-863-6840
investments@westamerica.com
Westamerica Bancorporation (WABC) reported a strong net income of $40.5 million for Q1 2023, translating to a diluted EPS of $1.51. This performance marked an increase from $39.3 million in Q4 2022, where EPS was $1.46. The results were positively impacted by a $1.6 million reversal in provision for credit losses, enhancing EPS by $0.04.
The company maintained a low-cost funding model, with a funding cost of just 0.03% and 47% of deposits being non-interest bearing. Furthermore, net interest income for Q1 was $69.6 million, slightly up from $69.2 million in the previous quarter.
WABC also reported a 19.1% annualized return on average common equity, while noninterest expenses rose to $26.2 million.
Westamerica Bancorporation (NASDAQ: WABC) announced a quarterly cash dividend of $0.42 per share, payable on February 17, 2023, to shareholders of record as of February 6, 2023. The company reported $39.3 million in net income for Q4 2022, equating to $1.46 diluted earnings per share. Chairman David Payne highlighted the dividend as a recognition of the company's reliable earnings, financial strength, and conservative risk profile.
Westamerica Bancorporation (Nasdaq: WABC) reported a fourth quarter 2022 net income of $39.3 million and diluted earnings per share (EPS) of $1.46, up from $34.8 million and $1.29 in the third quarter. Key performance metrics included a return on average common equity of 18.6%, with net interest income rising to $69.2 million from $60.8 million. The cost of funding remained low at 0.03%, benefiting from a strong deposit base of 47% non-interest bearing deposits. Noninterest income decreased to $10.5 million from $11.8 million. A dividend of $0.42 was declared for shareholders.
Westamerica Bancorporation (NASDAQ: WABC) declared a $0.42 quarterly cash dividend per share, payable on November 18, 2022, to shareholders of record by November 7, 2022. This decision reflects the company's financial strength and stable earnings, as highlighted by a reported $34.8 million net income for the three months ending September 30, 2022, translating to $1.29 per diluted share. Chairman David Payne emphasized the bank's conservative risk profile amidst a solid earnings stream.
Westamerica Bancorporation (Nasdaq: WABC) reported a net income of $34.8 million for Q3 2022, translating to diluted earnings per share (EPS) of $1.29, a 37% increase from Q2 2022's net income of $25.3 million and EPS of $0.94. The results were bolstered by variable-rate bonds and a robust deposit base. The non-interest cost of funding remained low at 0.03%. The bank generated $60.8 million in net interest income on a fully-taxable equivalent basis, with a loan and bond yield of 3.47%. A $0.42 dividend was declared for shareholders during the quarter.
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