Westamerica Bancorporation’s Q1 Earnings Show Resilience Amid Challenges

Westamerica Bancorporation (Nasdaq: WABC) recently announced first-quarter earnings totaling $36.4 million, a slight decrease from the previous quarter and $4 million less than the first quarter of the previous year. Despite this, the bank’s earnings for 2023 totaled $161.8 million, marking a 32% increase from the previous year as it emerges from challenges related to the pandemic and the economy.

The institution’s net interest income for the first quarter of 2024 amounted to $66 million, slightly lower than the $69.5 million reported in the previous quarter. Net interest income refers to the difference between revenues generated by interest-bearing accounts and the costs of servicing liabilities. President and CEO David Payne stated that despite this slight decrease, Westamerica Bancorporation continues to effectively manage its low-cost deposit base against the costs of services.

Total deposits for the first quarter of 2024 were $5.3 billion, which is slightly lower than in previous quarters but over $600 million less than in same period last year due to a competitive market for deposits influenced by benchmark interest rates set by Federal Reserve particularly following Silicon Valley Bank’s failures. Noninterest income remained consistent at $10 million comparable to previous quarters of 2023 while noninterest expenses increased slightly to $26.1 million, mainly due to higher payroll taxes as expected by Senior Vice President and Chief Financial Officer Robert Thorson.

Westamerica Bancorporation manages assets totaling $6.5 billion across more than 80 branches in Northern and Central California and is currently upgrading its Santa Rosa branch on Santa Rosa Avenue with a planned $2 million investment. The bank was established in 1884 and is paying out dividend of 44 cents per share on May 17th to its shareholders