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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
About this update from Westamerica Bancorporation
[{"type":"text","content":"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 primar...