Westamerica Bancorporation Reports 2024 Q1 Earnings and Deposits

Westamerica Bancorporation (Nasdaq: WABC) announced its first-quarter earnings for 2024, totaling $36.4 million. While this is approximately $3 million less than the previous quarter and $4 million less than the first quarter of the previous year, 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.

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. Despite this slight decrease, President and CEO David Payne stated that Westamerica Bancorporation continues to effectively manage its low-cost deposit base against the costs of services.

Total deposits for Westamerica Bancorporation’s first quarter of 2024 were $5.3 billion, which is slightly lower than both the fourth quarter of 2023 and over $600 million less than the same period last year. The competitive market for deposits has been influenced by benchmark interest rates set by the Federal Reserve, particularly following Silicon Valley Bank’s failures in March 2023. Senior Vice President and Chief Financial Officer Robert Thorson expected this payroll tax issue in advance.

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