Westamerica Bancorporation Reports Third Quarter 2022 Financial Results

SAN RAFAEL, CA: Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the third quarter 2022 of $34.8 million and diluted earnings per common share (“EPS”) of $1.29, including a life insurance gain equivalent to EPS of $0.03. Third quarter 2022 net income was 37 percent higher than second quarter 2022 net income of $25.3 million and EPS of $0.94.

“Westamerica’s third quarter 2022 results benefited from the Company’s variable-rate bonds, cash and loans, as well as our valuable deposit base. With 47 percent of average deposits represented by non-interest bearing checking accounts and limited reliance on time deposits, the cost of funding our loan and bond portfolios was 0.03 percent in the third quarter 2022, unchanged from the prior quarter. Operating expenses were well controlled and credit quality remained solid,” said Chairman, President and CEO David Payne. “Third quarter 2022 results generated an annualized 17.1 percent return on average common equity. Shareholders were paid a $0.42 per common share dividend during the third quarter 2022,” concluded Payne.

Net interest income on a fully-taxable equivalent (FTE) basis was $60.8 million for the third quarter 2022, compared to $48.0 million for the second quarter 2022. The yield earned on loans and bonds for the third quarter 2022 was 3.47 percent, up from 2.77 percent for the second quarter 2022. The cost of funding the loan and bond portfolios was 0.03 percent for both the third quarter and second quarter of 2022. Variable rate assets at September 30, 2022 included $1.6 billion in collateralized loan obligations for which interest rates reset quarterly, and $304.1 million in interest-bearing cash balances for which the interest rate changes concurrently with Federal Open Market Committee adjustments to the federal funds rate.

Noninterest income for the third quarter 2022 totaled $11.8 million, including a $923 thousand life insurance gain. Noninterest income for the second quarter 2022 was $11.3 million.

Westamerica Bancorporation’s wholly owned subsidiary Westamerica Bank, operates commercial banking and trust offices throughout Northern and Central California.

Quarterly Financial Highlights (PDF)


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]

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