SAN RAFAEL, CA: Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the second quarter 2023 of $40.2 million and diluted earnings per common share (“EPS”) of $1.51, which represents the highest second quarter results in Company history. Second quarter 2023 results compare to net income for first quarter 2023 of $40.5 million and EPS of $1.51; the first quarter 2023 included a $1.6 million reversal of provision for credit losses, which increased EPS $0.04.
“Westamerica’s second quarter 2023 results benefited from the Company’s valuable low-cost deposit base; the annualized cost of funding our loan and bond portfolios was 0.04 percent in the second quarter 2023, compared to 0.03 percent in the prior quarter. The Company’s customer deposits and shareholders’ equity fully funded our interest earning assets during the quarter; there was no borrowing from the Federal Reserve Bank or correspondent banks. The second quarter 2023 also benefited from higher yields on variable-rate assets. Operating expenses were well controlled and credit quality remained stable with nonperforming assets of $853 thousand at June 30, 2023,” said Chairman, President and CEO David Payne. “Second quarter 2023 results generated an annualized 18.4 percent return on average common equity. Shareholders were paid a $0.42 per common share dividend during the second quarter 2023,” concluded Payne.
Net interest income on a fully-taxable equivalent (FTE) basis was $70.3 million for the second quarter 2023, compared to $69.6 million for the first quarter 2023. The annualized yield (FTE) earned on loans, bonds and cash for the second quarter 2023 was 4.38 percent, up from 4.21 percent for the first quarter 2023. The annualized cost of funding the loan and bond portfolios was 0.04 percent for the second quarter 2023 and 0.03 percent for the first quarter 2023. Variable rate assets at June 30, 2023 included $1.5 billion in collateralized loan obligations for which interest rates reset quarterly.
Noninterest income for the second quarter 2023 totaled $10.7 million compared to $10.5 million for the first quarter 2023.
Noninterest expenses for the second quarter 2023 were $25.8 million compared to $26.2 million for the first quarter 2023; the decline in noninterest expenses is primarily due to declines in seasonal payroll taxes and occupancy and equipment expenses.
Westamerica Bancorporation’s wholly owned subsidiary Westamerica Bank, operates commercial banking and trust offices throughout Northern and Central California.
Quarterly Financial Highlights (PDF)
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, 2020 filed on Form 10-K and quarterly report for the quarter ended September 30, 2020 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 2011, 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.
####
For additional information contact:
Westamerica Bancorporation
Robert A. Thorson, Senior Vice President and Treasurer, (707) 863-6840
E-mail: [email protected]