0001171843-23-004572.txt : 20230720 0001171843-23-004572.hdr.sgml : 20230720 20230720113959 ACCESSION NUMBER: 0001171843-23-004572 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 14 CONFORMED PERIOD OF REPORT: 20230720 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20230720 DATE AS OF CHANGE: 20230720 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WESTAMERICA BANCORPORATION CENTRAL INDEX KEY: 0000311094 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 942156203 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-09383 FILM NUMBER: 231098717 BUSINESS ADDRESS: STREET 1: 1108 FIFTH AVE CITY: SAN RAFAEL STATE: CA ZIP: 94901 BUSINESS PHONE: (707) 863-6000 MAIL ADDRESS: STREET 1: 4550 MANGELS BLVD STREET 2: A-2Y CITY: FAIRFIELD STATE: CA ZIP: 94585-1200 FORMER COMPANY: FORMER CONFORMED NAME: INDEPENDENT BANKSHARES CORP DATE OF NAME CHANGE: 19830801 8-K 1 f8k_072023.htm FORM 8-K Form 8-K
0000311094 False 0000311094 2023-07-20 2023-07-20 iso4217:USD xbrli:shares iso4217:USD xbrli:shares
 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________

FORM 8-K

_________________

CURRENT REPORT

Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  July 20, 2023

_______________________________

WESTAMERICA BANCORPORATION

(Exact name of registrant as specified in its charter)

_______________________________

California001-0938394-2156203
(State or Other Jurisdiction of Incorporation)(Commission File Number)(I.R.S. Employer Identification No.)

1108 Fifth Avenue

San Rafael, California 94901

(Address of Principal Executive Offices) (Zip Code)

(707) 863-6000

(Registrant's telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

_______________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, no par valueWABCThe Nasdaq Stock Market, LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 
 
Item 2.02. Results of Operations and Financial Condition.

 

On July 20, 2023, the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

 

Item 9.01. Financial Statements and Exhibits.
   
Exhibit 99.1 Press Release dated July 20, 2023
Exhibit 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
 
 

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 WESTAMERICA BANCORPORATION
   
  
Date: July 20, 2023By: /s/ John "Robert" Thorson        
  John "Robert" Thorson
  Senior Vice President and Chief Financial Officer
  

 

EX-99.1 2 exh_991.htm PRESS RELEASE EdgarFiling

EXHIBIT 99.1

Westamerica Bancorporation Reports Second Quarter 2023 Financial Results

SAN RAFAEL, Calif., July 20, 2023 (GLOBE NEWSWIRE) -- 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.

Westamerica Bancorporation Web Address: www.westamerica.com

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

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, 2022 filed on Form 10-K and quarterly report for the quarter ended March 31, 2023 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 2010, 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.


WESTAMERICA BANCORPORATION    
FINANCIAL HIGHLIGHTS    
June 30, 2023    
      
1. Net Income Summary.    
  (in thousands except per-share amounts)
    % 
  Q2'2023Q2'2022ChangeQ1'2023
      
 Net Interest and Fee Income (FTE)$70,281 $48,033 46.3%$69,562 
 Reversal of Provision for Credit Losses (2) -  - n/m (1,550)
 Noninterest Income 10,700  11,264 -5.0% 10,549 
 Noninterest Expense 25,839  24,629 4.9% 26,210 
 Income Before Taxes (FTE) 55,142  34,668 59.1% 55,451 
 Income Tax Provision (FTE) 14,894  9,354 59.2% 15,000 
 Net Income$40,248 $25,314 59.0%$40,451 
      
 Average Common Shares Outstanding 26,648  26,889 -0.9% 26,859 
 Diluted Average Common Shares Outstanding 26,648  26,901 -0.9% 26,866 
      
 Operating Ratios:    
 Basic Earnings Per Common Share$1.51 $0.94 60.6%$1.51 
 Diluted Earnings Per Common Share 1.51  0.94 60.6% 1.51 
 Return On Assets (a) 2.35% 1.37%  2.31%
 Return On Common Equity (a) 18.4% 12.9%  19.1%
 Net Interest Margin (FTE) (a) 4.34% 2.74%  4.18%
 Efficiency Ratio (FTE) 31.9% 41.5%  32.7%
      
 Dividends Paid Per Common Share$0.42 $0.42 0.0%$0.42 
 Common Dividend Payout Ratio  28% 45%  28%
      
    % 
  6/30'23YTD6/30'22YTDChange 
      
 Net Interest and Fee Income (FTE)$139,843 $91,840 52.3% 
 Reversal of Provision for Credit Losses (2) (1,550) - n/m 
 Noninterest Income (1) 21,249  22,840 -7.0% 
 Noninterest Expense 52,049  49,504 5.1% 
 Income Before Taxes (FTE) 110,593  65,176 69.7% 
 Income Tax Provision (FTE) 29,894  17,246 73.3% 
 Net Income$80,699 $47,930 68.4% 
      
 Average Common Shares Outstanding 26,753  26,880 -0.5% 
 Diluted Average Common Shares Outstanding 26,756  26,893 -0.5% 
      
 Operating Ratios:    
 Basic Earnings Per Common Share$3.02 $1.78 69.7% 
 Diluted Earnings Per Common Share 3.02  1.78 69.7% 
 Return On Assets (a) 2.33% 1.30%  
 Return On Common Equity (a) 18.7% 12.4%  
 Net Interest Margin (FTE) (a) 4.26% 2.63%  
 Efficiency Ratio (FTE) 32.3% 43.2%  
      
 Dividends Paid Per Common Share$0.84 $0.84 0.0% 
 Common Dividend Payout Ratio  28% 47%  
      
2. Net Interest Income.    
  (dollars in thousands)
    % 
  Q2'2023Q2'2022ChangeQ1'2023
      
 Interest and Fee Income (FTE)$70,888 $48,516 46.1%$70,033 
 Interest Expense 607  483 25.7% 471 
 Net Interest and Fee Income (FTE)$70,281 $48,033 46.3%$69,562 
      
 Average Earning Assets$6,457,270 $7,000,862 -7.8%$6,665,156 
 Average Interest- Bearing Liabilities 3,144,264  3,549,140 -11.4% 3,287,158 
      
 Yield on Earning Assets (FTE) (a) 4.38% 2.77%  4.21%
 Cost of Funds (a) 0.04% 0.03%  0.03%
 Net Interest Margin (FTE) (a) 4.34% 2.74%  4.18%
 Interest Expense/    
    Interest-Bearing Liabilities (a) 0.08% 0.05%  0.06%
 Net Interest Spread (FTE) (a) 4.30% 2.72%  4.15%
      
    % 
  6/30'23YTD6/30'22YTDChange 
      
 Interest and Fee Income (FTE)$140,921 $92,803 51.8% 
 Interest Expense 1,078  963 11.9% 
 Net Interest and Fee Income (FTE)$139,843 $91,840 52.3% 
      
 Average Earning Assets$6,560,639 $6,999,556 -6.3% 
 Average Interest- Bearing Liabilities 3,215,316  3,547,651 -9.4% 
      
 Yield on Earning Assets (FTE) (a) 4.29% 2.66%  
 Cost of Funds (a) 0.03% 0.03%  
 Net Interest Margin (FTE) (a) 4.26% 2.63%  
 Interest Expense/    
    Interest-Bearing Liabilities (a) 0.07% 0.05%  
 Net Interest Spread (FTE) (a) 4.22% 2.61%  
      
3. Loans & Other Earning Assets.    
  (average volume, dollars in thousands)
    % 
  Q2'2023Q2'2022ChangeQ1'2023
      
 Total Assets$6,865,591 $7,420,069 -7.5%$7,112,317 
 Total Earning Assets 6,457,270  7,000,862 -7.8% 6,665,156 
 Total Loans 926,795  1,009,633 -8.2% 945,864 
   Commercial Loans 157,975  202,585 -22.0% 165,360 
   Commercial Real Estate Loans  491,902  508,003 -3.2% 493,132 
   Consumer Loans 276,918  299,045 -7.4% 287,372 
 Total Investment Securities 5,365,377  5,008,929 7.1% 5,548,780 
   Debt Securities Available for Sale 4,460,339  4,721,083 -5.5% 4,636,098 
   Debt Securities Held to Maturity 905,038  287,846 214.4% 912,682 
 Total Interest-Bearing Cash 165,098  982,300 -83.2% 170,512 
      
 Loans/Deposits 16.0% 15.7%  15.6%
      
    % 
  6/30'23YTD6/30'22YTDChange 
      
 Total Assets$6,988,272 $7,413,233 -5.7% 
 Total Earning Assets 6,560,639  6,999,556 -6.3% 
 Total Loans 936,277  1,019,623 -8.2% 
   Commercial Loans 161,647  205,228 -21.2% 
   Commercial Real Estate Loans  492,514  515,977 -4.5% 
   Consumer Loans 282,116  298,418 -5.5% 
 Total Investment Securities 5,456,572  4,978,557 9.6% 
   Debt Securities Available for Sale 4,547,733  4,688,714 -3.0% 
   Debt Securities Held to Maturity 908,839  289,843 213.6% 
 Total Interest-Bearing Cash 167,790  1,001,376 -83.2% 
      
 Loans/Deposits 15.8% 15.9%  
      
4. Deposits, Other Interest-Bearing Liabilities & Equity.  
  (average volume, dollars in thousands)
    % 
  Q2'2023Q2'2022ChangeQ1'2023
      
 Total Deposits$5,797,504 $6,424,202 -9.8%$6,061,923 
   Noninterest Demand  2,751,319  2,998,360 -8.2% 2,851,600 
   Interest-Bearing Transaction 1,159,653  1,298,665 -10.7% 1,233,439 
   Savings 1,763,410  1,985,325 -11.2% 1,847,428 
   Time greater than $100K 53,901  63,790 -15.5% 57,630 
   Time less than $100K 69,221  78,062 -11.3% 71,826 
 Total Short-Term Borrowings 98,079  123,298 -20.5% 76,835 
 Shareholders' Equity 877,964  788,078 11.4% 858,473 
      
 Demand Deposits/ Total Deposits 47.5% 46.7%  47.0%
 Transaction & Savings Deposits / Total Deposits 97.9% 97.8%  97.9%
      
    % 
  6/30'23YTD6/30'22YTDChange 
      
 Total Deposits$5,928,983 $6,408,915 -7.5% 
   Noninterest Demand  2,801,183  3,001,694 -6.7% 
   Interest-Bearing Transaction 1,196,342  1,281,975 -6.7% 
   Savings 1,805,187  1,982,723 -9.0% 
   Time greater than $100K 55,755  63,980 -12.9% 
   Time less than $100K 70,516  78,543 -10.2% 
 Total Short-Term Borrowings 87,516  140,430 -37.7% 
 Shareholders' Equity 868,272  782,184 11.0% 
      
 Demand Deposits/ Total Deposits 47.2% 46.8%  
 Transaction & Savings Deposits / Total Deposits 97.9% 97.8%  
      
5. Interest Yields Earned & Rates Paid.    
  (dollars in thousands) 
  Q2'2023 
  AverageIncome/Yield (a) / 
  VolumeExpenseRate (a) 
      
 Interest & Fee Income Earned:    
   Total Earning Assets (FTE)$6,457,270 $70,888 4.38% 
   Total Loans (FTE) 926,795  11,937 5.17% 
     Commercial Loans (FTE) 157,975  2,777 7.05% 
     Commercial Real Estate Loans  491,902  5,732 4.67% 
     Consumer Loans 276,918  3,428 4.97% 
   Total Investments (FTE) 5,365,377  56,841 4.22% 
     Total Debt Securities Available for Sale (FTE) 4,460,339  47,752 4.26% 
       Corporate Securities 2,210,511  15,456 2.80% 
       Collateralized Loan Obligations 1,555,328  26,754 6.81% 
       Agency Mortgage Backed Securities 291,270  1,765 2.42% 
       Securities of U.S. Government sponsored entities 306,983  2,776 3.62% 
       Obligations of States and Political Subdivisions (FTE) 82,074  617 3.00% 
       Other Debt Securities Available for Sale (FTE) 14,173  384 10.84% 
     Total Debt Securities Held to Maturity (FTE) 905,038  9,089 4.02% 
       Agency Mortgage Backed Securities 94,960  510 2.15% 
       Corporate Securities 724,157  7,816 4.32% 
       Obligations of States and Political Subdivisions (FTE) 85,921  763 3.56% 
   Total Interest-Bearing Cash 165,098  2,110 5.06% 
      
 Interest Expense Paid:    
   Total Earning Assets  6,457,270  607 0.04% 
   Total Interest-Bearing Liabilities 3,144,264  607 0.08% 
   Total Interest-Bearing Deposits 3,046,185  582 0.08% 
     Interest-Bearing Transaction 1,159,653  104 0.04% 
     Savings 1,763,410  396 0.09% 
     Time less than $100K 69,221  51 0.30% 
     Time greater than $100K 53,901  31 0.23% 
   Total Short-Term Borrowings  98,079  25 0.10% 
      
 Net Interest Income and     
 Margin (FTE) $70,281 4.34% 
      
  Q2'2022 
  AverageIncome/Yield (a) / 
  VolumeExpenseRate (a) 
      
 Interest & Fee Income Earned:    
   Total Earning Assets (FTE)$7,000,862 $48,516 2.77% 
   Total Loans (FTE) 1,009,633  12,426 4.94% 
     Commercial Loans (FTE) 202,585  2,716 5.38% 
     Commercial Real Estate Loans  508,003  6,192 4.89% 
     Consumer Loans 299,045  3,518 4.72% 
   Total Investments (FTE) 5,008,929  34,088 2.72% 
     Total Debt Securities Available for Sale (FTE) 4,721,083  32,059 2.72% 
       Corporate Securities 2,589,490  17,857 2.76% 
       Collateralized Loan Obligations 1,610,811  10,572 2.60% 
       Agency Mortgage Backed Securities 357,727  2,049 2.29% 
       Securities OF U.S. Government sponsored entities 59,892  533 3.56% 
       Obligations of States and Political Subdivisions (FTE) 88,829  682 3.07% 
       Other Debt Securities Available for Sale (FTE) 14,334  366 10.23% 
     Total Debt Securities Held to Maturity (FTE) 287,846  2,029 2.82% 
       Agency Mortgage Backed Securities 128,319  595 1.85% 
       Corporate Securities 17,749  202 4.56% 
       Obligations of States and Political Subdivisions (FTE) 141,778  1,232 3.48% 
   Total Interest-Bearing Cash 982,300  2,002 0.81% 
      
 Interest Expense Paid:    
   Total Earning Assets  7,000,862  483 0.03% 
   Total Interest-Bearing Liabilities 3,549,140  483 0.05% 
   Total Interest-Bearing Deposits 3,425,842  461 0.05% 
     Interest-Bearing Transaction 1,298,665  91 0.03% 
     Savings 1,985,325  288 0.06% 
     Time less than $100K 78,062  42 0.22% 
     Time greater than $100K 63,790  40 0.25% 
   Total Short-Term Borrowings  123,298  22 0.07% 
      
 Net Interest Income and    
 Margin (FTE) $48,033 2.74% 
      
6. Noninterest Income.    
  (dollars in thousands except per-share amounts)
    % 
  Q2'2023Q2'2022ChangeQ1'2023
      
 Service Charges on Deposit Accounts$3,459 $3,687 -6.2%$3,465 
 Merchant Processing Services 2,869  3,374 -15.0% 2,637 
 Debit Card Fees 1,759  1,709 2.9% 1,642 
 Trust Fees 810  809 0.1% 765 
 ATM Processing Fees 702  469 49.7% 654 
 Other Service Fees 458  480 -4.6% 399 
 Financial Services Commissions 103  118 -12.7% 89 
 Securities Losses (125) - n/m - 
 Other Noninterest Income 665  618 7.6% 898 
 Total Noninterest Income$10,700 $11,264 -5.0%$10,549 
      
 Operating Ratios:    
   Total Revenue (FTE)$80,981 $59,297 36.6%$80,111 
   Noninterest Income/Revenue (FTE) 13.2% 19.0%  13.2%
   Service Charges/Avg. Deposits (a) 0.24% 0.23%  0.23%
   Total Revenue (FTE) Per Avg.     
 Common Share (a)$12.19 $8.85 37.8%$12.10 
      
    % 
  6/30'23YTD6/30'22YTDChange 
      
 Service Charges on Deposit Accounts$6,924 $7,269 -4.7% 
 Merchant Processing Services 5,506  5,997 -8.2% 
 Debit Card Fees (1) 3,401  4,581 -25.8% 
 Trust Fees 1,575  1,652 -4.7% 
 ATM Processing Fees 1,356  920 47.4% 
 Other Service Fees 857  929 -7.8% 
 Financial Services Commissions 192  235 -18.3% 
 Securities Losses (125) - n/m 
 Other Noninterest Income 1,563  1,257 24.3% 
 Total Noninterest Income$21,249 $22,840 -7.0% 
      
 Operating Ratios:    
   Total Revenue (FTE)$161,092 $114,680 40.5% 
   Noninterest Income/Revenue (FTE) 13.2% 19.9%  
   Service Charges/Avg. Deposits (a) 0.24% 0.23%  
   Total Revenue (FTE) Per Avg.    
 Common Share (a)$12.14 $8.60 41.1% 
      
7. Noninterest Expense.    
  (dollars in thousands)
    % 
  Q2'2023Q2'2022ChangeQ1'2023
      
 Salaries & Benefits$11,828 $11,412 3.6%$12,067 
 Occupancy and Equipment 5,012  4,856 3.2% 5,485 
 Outsourced Data Processing 2,488  2,423 2.7% 2,444 
 Limited Partnership Operating Losses 1,440  1,431 0.6% 1,434 
 Professional Fees 485  736 -34.1% 476 
 Courier Service 611  661 -7.6% 615 
 Other Noninterest Expense 3,975  3,110 27.8% 3,689 
 Total Noninterest Expense$25,839 $24,629 4.9%$26,210 
      
 Operating Ratios:    
   Noninterest Expense/ Avg. Earning Assets (a) 1.60% 1.41%  1.59%
   Noninterest Expense/Revenues (FTE) 31.9% 41.5%  32.7%
      
    % 
  6/30'23YTD6/30'22YTDChange 
      
 Salaries & Benefits$23,895 $23,332 2.4% 
 Occupancy and Equipment 10,497  9,602 9.3% 
 Outsourced Data Processing 4,932  4,860 1.5% 
 Limited Partnership Operating Losses 2,874  2,862 0.4% 
 Professional Fees 961  1,472 -34.7% 
 Courier Service 1,226  1,243 -1.4% 
 Other Noninterest Expense 7,664  6,133 25.0% 
 Total Noninterest Expense$52,049 $49,504 5.1% 
      
 Operating Ratios:    
   Noninterest Expense/ Avg. Earning Assets (a) 1.60% 1.43%  
   Noninterest Expense/Revenues (FTE) 32.3% 43.2%  
      
8. Allowance for Credit Losses.    
  (dollars in thousands)
    % 
  Q2'2023Q2'2022ChangeQ1'2023
      
 Average Total Loans$926,795 $1,009,633 -8.2%$945,864 
      
 Beginning of Period Allowance for    
 Credit Losses on Loans (ACLL)$19,509 $22,925 -14.9%$20,284 
 Reversal of Provision for Credit Losses (2)  -  - n/m (1,550)
 Net ACLL (Losses) Recoveries (1,029) (612)68.1% 775 
 End of Period ACLL$18,480 $22,313 -17.2%$19,509 
      
 Gross ACLL Recoveries / Gross ACLL Losses  38% 57%  138%
      
 Net ACLL Losses (Recoveries) /    
 Avg. Total Loans (a) 0.45% 0.24%  -0.33%
      
    % 
  6/30'23YTD6/30'22YTDChange 
      
 Average Total Loans$936,277 $1,019,623 -8.2% 
      
 Beginning of Period ACLL $20,284 $23,514 -13.7% 
 Reversal of Provision for Credit Losses (2)  (1,550) - n/m 
 Net ACLL Losses (254) (1,201)-78.9% 
 End of Period ACLL$18,480 $22,313 -17.2% 
      
 Gross ACLL Recoveries / Gross ACLL Losses  93% 54%  
      
 Net ACLL Losses / Avg. Total Loans (a) 0.05% 0.24%  
      
  (dollars in thousands)
    % 
  6/30/236/30/22Change3/31/23
 Allowance for Credit Losses on Loans$18,480 $22,313 -17.2%$19,509 
 Allowance for Credit Losses on    
 Held to Maturity Securities 1  7 -85.5% 1 
 Total Allowance for Credit Losses$18,481 $22,320 -17.2%$19,510 
      
 Allowance for Unfunded    
 Credit Commitments$201 $201 0.0%$201 
      
9. Credit Quality.    
  (dollars in thousands)
    % 
  6/30/236/30/22Change3/31/23
 Nonperforming Loans:    
    Nonperforming Nonaccrual Loans$192 $12 n/m$207 
    Performing Nonaccrual Loans 5  235 -97.9% 7 
 Total Nonaccrual Loans 197  247 -20.2% 214 
 90+ Days Past Due Accruing Loans 656  614 6.8% 571 
 Total Nonperforming Loans$853 $861 -0.9%$785 
      
 Total Loans Outstanding $919,583 $999,768 -8.0%$938,628 
      
 Total Assets  6,582,740  7,222,405 -8.9% 6,700,471 
      
 Loans:    
 Allowance for Credit Losses on Loans$18,480 $22,313 -17.2%$19,509 
 Allowance for Credit Losses on Loans / Loans 2.01% 2.23%  2.08%
 Nonperforming Loans/Total Loans 0.09% 0.09%  0.08%
      
10. Liquidity.    
      
 At June 30, 2023, the Company had $266,187 thousand in cash balances. During the twelve months ending June 30, 2024, the Company expects to receive $288,000 thousand in principal payments from its debt securities. If additional operational liquidity is required, the Company can pledge debt securities as collateral for borrowing purposes; at June 30, 2023, the Company’s debt securities which qualify as collateral for borrowing totaled $3,924,826 thousand. In the ordinary course of business, the Company pledges debt securities as collateral for certain depository customers; at June 30, 2023, the Company had pledged $704,822 thousand in debt securities for depository customers. In the ordinary course of business, the Company pledges debt securities as collateral for borrowing from the Federal Reserve Bank; at June 30, 2023, the Company’s had pledged $1,000,132 thousand in debt securities at the Federal Reserve Bank. During the six months ended June 30, 2023, the Company’s average borrowings from the Federal Reserve Bank and other correspondent banks were $-0- thousand, and at June 30, 2023, the Company’s borrowings from the Federal Reserve Bank and other correspondent banks were $-0- thousand. At June 30, 2023, the Company’s estimated unpledged collateral qualifying debt securities totaled $2,072,988 thousand. Debt securities eligible as collateral are shown in market value unless otherwise noted.
      
     (in thousands)
     6/30/23
 Debt Securities Eligible as Collateral:    
 Corporate Securities   $2,587,771 
 Collateralized Loan Obligations rated AAA    503,037 
 Obligations of States and Political Subdivisions   162,528 
 Agency Mortgage Backed Securities    344,657 
 Securities of U.S. Government Sponsored Entities (Par Value)  326,833 
 Total Debt Securities Eligible as Collateral   $3,924,826 
      
 Debt Securities Pledged as Collateral:    
 Deposits by Public Entities   ($704,822)
 Short-Term Borrowed Funds (Deposit Sweep)   (140,765)
 Other    (6,119)
 Total Debt Securities Pledged as Collateral   ($851,706)
      
 Debt Securities Pledged at the Federal Reserve Bank  ($1,000,132)
      
 Estimated Debt Securities Available to Pledge   $2,072,988 
      
11. Capital.    
  (in thousands, except per-share amounts)
    % 
  6/30/236/30/22Change3/31/23
      
 Shareholders' Equity$651,862 $617,126 5.6%$642,925 
 Total Assets 6,582,740  7,222,405 -8.9% 6,700,471 
 Shareholders' Equity/    
    Total Assets 9.90% 8.54%  9.60%
 Shareholders' Equity/    
    Total Loans 70.89% 61.73%  68.50%
 Tangible Common Equity Ratio 8.20% 6.97%  7.92%
 Common Shares Outstanding 26,648  26,896 -0.9% 26,648 
 Common Equity Per Share$24.46 $22.94 6.6%$24.13 
 Market Value Per Common Share 38.30  55.66 -31.2% 44.30 
      
  (shares in thousands)
    % 
  Q2'2023Q2'2022ChangeQ1'2023
 Share Repurchase Programs:    
   Total Shares Repurchased / Canceled -  - n/m 274 
   Average Repurchase Price$- $- n/m$50.11 
   Net Shares (Issued) Repurchased -  (13)n/m 265 
      
    % 
  6/30'23YTD6/30'22YTDChange 
      
   Total Shares Repurchased 274  3 n/m 
   Average Repurchase Price$50.11 $58.66 n/m 
   Net Shares Repurchased (Issued) 265  (30)n/m 
      
12. Period-End Balance Sheets.    
  (unaudited, dollars in thousands)
    % 
  6/30/236/30/22Change3/31/23
 Assets:    
   Cash and Due from Banks$266,187 $753,293 -64.7%$195,202 
      
   Debt Securities Available for Sale    
     Corporate Securities 1,901,504  2,296,853 -17.2% 2,019,240 
     Collateralized Loan Obligations 1,514,962  1,601,333 -5.4% 1,542,377 
     Agency Mortgage Backed Securities 259,190  331,425 -21.8% 276,078 
     Securities of U.S. Government sponsored entities 291,402  290,725 0.2% 297,140 
     Obligations of States and Political Subdivisions 79,400  86,676 -8.4% 82,678 
     Other Debt Securities Available for Sale -  102 n/m - 
   Total Debt Securities Available for Sale 4,046,458  4,607,114 -12.2% 4,217,513 
      
   Debt Securities Held to Maturity    
     Agency Mortgage Backed Securities 91,141  121,810 -25.2% 98,006 
     Corporate Securities 725,252  181,316 300.0% 723,553 
     Obligations of States and Political Subdivisions (3) 83,963  139,228 -39.7% 87,760 
   Total Debt Securities Held to Maturity (3) 900,356  442,354 103.5% 909,319 
      
   Loans 919,583  999,768 -8.0% 938,628 
   Allowance For Credit Losses on Loans (18,480) (22,313)-17.2% (19,509)
   Total Loans, net 901,103  977,455 -7.8% 919,119 
      
   Premises and Equipment, net 27,908  30,309 -7.9% 28,331 
   Identifiable Intangibles, net 463  707 -34.5% 523 
   Goodwill  121,673  121,673 0.0% 121,673 
   Other Assets 318,592  289,500 10.0% 308,791 
      
 Total Assets$6,582,740 $7,222,405 -8.9%$6,700,471 
      
 Liabilities and Shareholders' Equity:    
   Deposits:    
     Noninterest-Bearing$2,721,046 $2,987,725 -8.9%$2,788,992 
     Interest-Bearing Transaction 1,133,006  1,303,700 -13.1% 1,201,356 
     Savings 1,735,083  1,983,713 -12.5% 1,783,667 
     Time 116,792  140,453 -16.8% 125,300 
   Total Deposits 5,705,927  6,415,591 -11.1% 5,899,315 
      
   Short-Term Borrowed Funds 138,005  118,167 16.8% 83,088 
   Other Liabilities 86,946  71,521 21.6% 75,143 
 Total Liabilities 5,930,878  6,605,279 -10.2% 6,057,546 
      
 Shareholders' Equity:    
   Common Equity:    
     Paid-In Capital 471,510  473,555 -0.4% 471,159 
     Accumulated Other    
       Comprehensive Loss (252,043) (188,025)34.0% (231,573)
     Retained Earnings 432,395  331,596 30.4% 403,339 
 Total Shareholders' Equity 651,862  617,126 5.6% 642,925 
      
 Total Liabilities and     
    Shareholders' Equity$6,582,740 $7,222,405 -8.9%$6,700,471 
      
13. Income Statements.    
  (unaudited, in thousands except per-share amounts)
    % 
  Q2'2023Q2'2022ChangeQ1'2023
 Interest & Fee Income:    
 Loans$11,845 $12,331 -3.9%$11,740 
 Equity Securities 152  129 17.8% 152 
 Debt Securities Available for Sale 47,452  31,764 49.4% 46,810 
 Debt Securities Held to Maturity 8,930  1,771 404.3% 8,980 
 Interest-Bearing Cash 2,110  2,002 5.4% 1,942 
 Total Interest & Fee Income 70,489  47,997 46.9% 69,624 
      
 Interest Expense:    
   Transaction Deposits 104  91 14.3% 94 
   Savings Deposits 396  288 37.5% 280 
   Time Deposits 82  82 0.0% 84 
   Short-Term Borrowed Funds 25  22 13.6% 13 
 Total Interest Expense 607  483 25.7% 471 
      
 Net Interest Income 69,882  47,514 47.1% 69,153 
      
 Reversal of Provision for Credit Losses (2) -  - n/m (1,550)
      
 Noninterest Income:    
   Service Charges on Deposit Accounts 3,459  3,687 -6.2% 3,465 
   Merchant Processing Services 2,869  3,374 -15.0% 2,637 
   Debit Card Fees 1,759  1,709 2.9% 1,642 
   Trust Fees 810  809 0.1% 765 
   ATM Processing Fees 702  469 49.7% 654 
   Other Service Fees 458  480 -4.6% 399 
   Financial Services Commissions 103  118 -12.7% 89 
   Securities Losses (125) - n/m - 
   Other Noninterest Income 665  618 7.6% 898 
 Total Noninterest Income 10,700  11,264 -5.0% 10,549 
      
 Noninterest Expense:    
   Salaries and Related Benefits 11,828  11,412 3.6% 12,067 
   Occupancy and Equipment 5,012  4,856 3.2% 5,485 
   Outsourced Data Processing 2,488  2,423 2.7% 2,444 
   Limited Partnership Operating Losses 1,440  1,431 0.6% 1,434 
   Professional Fees 485  736 -34.1% 476 
   Courier Service 611  661 -7.6% 615 
   Other Noninterest Expense 3,975  3,110 27.8% 3,689 
 Total Noninterest Expense 25,839  24,629 4.9% 26,210 
      
 Income Before Income Taxes 54,743  34,149 60.3% 55,042 
 Income Tax Provision 14,495  8,835 64.1% 14,591 
 Net Income$40,248 $25,314 59.0%$40,451 
      
 Average Common Shares Outstanding 26,648  26,889 -0.9% 26,859 
 Diluted Average Common Shares Outstanding 26,648  26,901 -0.9% 26,866 
      
 Per Common Share Data:    
   Basic Earnings$1.51 $0.94 60.6%$1.51 
   Diluted Earnings 1.51  0.94 60.6% 1.51 
   Dividends Paid 0.42  0.42 0.0% 0.42 
      
    % 
  6/30'23YTD6/30'22YTDChange 
 Interest & Fee Income:    
 Loans$23,585 $25,273 -6.7% 
 Equity Securities 304  257 18.3% 
 Debt Securities Available for Sale 94,262  60,330 56.2% 
 Debt Securities Held to Maturity 17,910  3,415 424.5% 
 Interest-Bearing Cash 4,052  2,481 63.3% 
 Total Interest & Fee Income 140,113  91,756 52.7% 
      
 Interest Expense:    
   Transaction Deposits 198  179 10.6% 
   Savings Deposits 676  571 18.4% 
   Time Deposits 166  163 1.8% 
   Short-Term Borrowed Funds 38  50 -24.0% 
 Total Interest Expense 1,078  963 11.9% 
      
 Net Interest Income 139,035  90,793 53.1% 
      
 Reversal of Provision for Credit Losses (2) (1,550) - n/m 
      
 Noninterest Income:    
   Service Charges on Deposit Accounts 6,924  7,269 -4.7% 
   Merchant Processing Services 5,506  5,997 -8.2% 
   Debit Card Fees (1) 3,401  4,581 -25.8% 
   Trust Fees 1,575  1,652 -4.7% 
   ATM Processing Fees 1,356  920 47.4% 
   Other Service Fees 857  929 -7.8% 
   Financial Services Commissions 192  235 -18.3% 
   Securities Losses (125) - n/m 
   Other Operating 1,563  1,257 24.3% 
 Total Noninterest Income 21,249  22,840 -7.0% 
      
 Noninterest Expense:    
   Salaries and Related Benefits 23,895  23,332 2.4% 
   Occupancy and Equipment 10,497  9,602 9.3% 
   Outsourced Data Processing 4,932  4,860 1.5% 
   Limited Partnership Operating Losses 2,874  2,862 0.4% 
   Professional Fees 961  1,472 -34.7% 
   Courier Service 1,226  1,243 -1.4% 
   Other Operating 7,664  6,133 25.0% 
 Total Noninterest Expense 52,049  49,504 5.1% 
      
 Income Before Income Taxes 109,785  64,129 71.2% 
 Income Tax Provision 29,086  16,199 79.6% 
 Net Income$80,699 $47,930 68.4% 
      
 Average Common Shares Outstanding 26,753  26,880 -0.5% 
 Diluted Average Common Shares Outstanding 26,756  26,893 -0.5% 
      
 Per Common Share Data:    
 Basic Earnings$3.02 $1.78 69.7% 
 Diluted Earnings 3.02  1.78 69.7% 
 Dividends Paid 0.84  0.84 0.0% 
      
 Footnotes and Abbreviations:    
      
 (1) The Company received a $1.2 million reconciling payment from a payments network in the first quarter 2022.
      
 (2) A recovery of a previously charged off loan in the first quarter 2023 resulted in a $1,550 thousand reversal of the allowance for credit loss provision in the first quarter 2023.
      
 (3) Debt Securities Held To Maturity and Obligations of States and Political Subdivisions are net of related reserve for expected credit losses of $1 thousand at June 30, 2023, March 31, 2023 and $7 thousand at June 30, 2022.
      
 (FTE) Fully Taxable Equivalent. The Company presents its net interest margin and net interest income on a FTE basis using the current statutory federal tax rate. Management believes the FTE basis is valuable to the reader because the Company’s loan and investment securities portfolios contain a portion of municipal loans and securities that are federally tax exempt. The Company’s tax exempt loans and securities composition may not be similar to that of other banks, therefore in order to reflect the impact of the federally tax exempt loans and securities on the net interest margin and net interest income for comparability with other banks, the Company presents its net interest margin and net interest income on a FTE basis.
      
 (a) Annualized    

 

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Jul. 20, 2023
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Entity Registrant Name WESTAMERICA BANCORPORATION
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Entity Tax Identification Number 94-2156203
Entity Incorporation, State or Country Code CA
Entity Address, Address Line One 1108 Fifth Avenue
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City Area Code 707
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