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Westamerica Bancorporation Reports Fourth Quarter 2022 Financial Results
SAN RAFAEL, Calif., Jan. 19, 2023 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for
About this update from Westamerica Bancorporation
[{"type":"text","content":"SAN RAFAEL, Calif., Jan. 19, 2023 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the fourth quarter 2022 of $39.3 million and diluted earnings per common share (\"EPS\") of $1.46. Fourth quarter 2022 results compare to net income for third quarter 2022 of $34.8 million and EPS of $1.29, which included a life insurance gain equivalent to EPS of $0.03. \"Westamerica’s fourth quarter 2022 results benefited from the Company’s valuable low-cost deposit base; the cost of funding our loan and bond portfolios was 0.03 percent in the fourth quarter 2022, unchanged from the prior quarter. Non-interest bearing deposits represented 47 percent of average deposits in the fourth quarter 2022. The fourth quarter also benefited from higher yields on variable-rate bonds, loans and cash. Operating expenses were well controlled and credit quality remained solid with nonperforming assets of $774 thousand at December 31, 2022,” said Chairman, President and CEO David Payne. “Fourth quarter 2022 results generated an annualized 18.6 percent return on average common equity. Shareholders were paid a $0.42 per common share dividend during the fourth quarter 2022,” concluded Payne. Net interest income on a fully-taxable equivalent (FTE) basis was $69.2 million for the fourth quarter 2022, compared to $60.8 million for the third quarter 2022. The yield earned on loans, bonds, and cash for the fourth quarter 2022 was 3.98 percent, up from 3.47 percent for the third quarter 2022. The cost of funding the loan, bond, and cash portfolios was 0.03 percent for both the fourth quarter and third quarter of 2022. Variable rate assets at December 31, 2022 included $1.6 billion in collateralized loan obligations for which interest rates reset quarterly, and $192 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 fourth quarter 2022 totaled $10.5 million compared to $11.8 million for the third quarter 2022, which included a $923 thousand life insurance gain. Noninterest expenses for the fourth quarter 2022 were $25.1 million compared to $24.8 million for the third quarter 2022. Westamerica Bancorporation’s wholly owned subsidiary Westamerica Bank, operates ...