Westamerica Bank experiences slight drop in Q1 earnings
Westamerica Bancorporation (Nasdaq: WABC) posted first-quarter earnings amounting to $36.4 million, the San Rafael-based parent company of Westamerica Bank announced.
The net income reported April 18 amounts to about $3 million less than the three months ending 2023 and approximately $4 million less than last year’s first quarter.
Still, as the bank recovers from residual pandemic- and economic-related challenges in the last few years, 2023 earnings of $161.8 million came in 32% higher than the previous year.
Net interest income for the year’s first quarter added up to $66 million, slightly shy of the $69.5 million posted in the previous quarter. Net interest income is defined as the difference between revenues generated by interest-bearing accounts and the costs of servicing liabilities.
As in the case of fourth quarter results, the financial institution continues to hold steady with managing “a low-cost deposit base” against the costs of service, President and CEO David Payne said in a statement.
Total deposits brought in for 2024’s first quarter were $5.3 billion, a little less than 2023’s fourth quarter tallies and over $600 million less than the same period in 2023.
The benchmark interest rates imposed by the Federal Reserve has created a highly competitive market for deposits, especially in the wake of failures from regional banks such as Silicon Valley Bank.
Noninterest income, derived by fees, came in at a steady $10 million, about as equal as the last year’s previous quarters.
Meanwhile, noninterest expenses added up to $26.1 million, which nudged up from the previous quarter. The increase was attributable to higher payroll taxes, bank officials indicated.
Senior Vice President and Chief Financial Officer Robert Thorson said that among other line items in the quarterly report, the payroll tax issue was expected.
With assets totaling $6.5 billion, Westamerica manages more than 80 branches in Northern and Central California. The bank was founded in 1884.
The bank, which was founded in 1884, has a Santa Rosa branch on Santa Rosa Avenue that is undergoing a planned $2 million upgrade, the Business Journal reported April 15.
The bank will pay a dividend of 44 cents per share on May 17.
