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Westamerica Bancorporation Reports Third Quarter 2023 Financial Results
SAN RAFAEL, Calif., Oct. 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., Oct. 19, 2023 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the third quarter 2023 of $41.6 million and diluted earnings per common share (“EPS”) of $1.56, which represent the highest third quarter results in Company history. Third quarter 2023 results include a life insurance gain which increased EPS $0.01. Third quarter 2023 results compare to second quarter 2023 net income of $40.2 million and EPS of $1.51. “Westamerica’s third quarter 2023 results benefited from the Company’s valuable low-cost deposit base, of which 48 percent was represented by non-interest bearing checking accounts during the third quarter 2023. The annualized cost of funding our loan and bond portfolios was 0.07 percent in the third quarter 2023. The Company’s customer deposits and shareholders’ equity fully funded our interest earning assets during the third quarter 2023; the Company did not borrow from the Federal Reserve Bank or correspondent banks. Operating expenses remained well controlled. Nonperforming assets were a stable $1.2 million at September 30, 2023,” said Chairman, President and CEO David Payne. “Third quarter 2023 results generated an annualized 18.3 percent return on average common equity. Shareholders were paid a $0.44 per common share dividend during the third quarter 2023,” concluded Payne. Net interest income on a fully-taxable equivalent (FTE) basis was $72.1 million for the third quarter 2023, compared to $70.3 million for the second quarter 2023. The annualized yield earned on loans, bonds and cash for the third quarter 2023 was 4.50 percent, up from 4.38 percent for the second quarter 2023. The annualized cost of funding the loan and bond portfolios was 0.07 percent for the third quarter 2023, compared to 0.04 percent for the second quarter 2023. Variable rate assets at September 30, 2023 included $1.5 billion in collateralized loan obligations on which interest rates reset quarterly. The Company provided $400 thousand for credit losses on loans in the third quarter 2023. The Allowance for Credit Losses on Loans was $17.7 million at September 30, 2023. Noninterest income for the third quarter 2023 totaled $11.3 million compared to $10.7 million for the second quarter 2023. Third quarter 2023 results include a $278 thousand life insu...