Westamerica Bancorporation (NASDAQ: WABC) has reported its financial results for the first quarter of 2024, with net income of $36.4 million and diluted earnings per common share (EPS) of $1.37. This represents a decrease from the fourth quarter of 2023, which saw net income of $39.5 million and EPS of $1.48.
The company's low-cost deposit base, with 47 percent represented by non-interest bearing checking accounts, contributed to an annualized cost of funding the loan and bond portfolios at 0.20 percent for the first quarter of 2024. Operating expenses remained well controlled at 34 percent of total revenues on a fully-taxable equivalent basis.
Westamerica Bancorporation's first quarter 2024 results generated an annualized 15.2 percent return on average common equity. Shareholders were paid a $0.44 per common share dividend during the first quarter of 2024.
Net interest income on a fully-taxable equivalent (FTE) basis was $66.1 million for the first quarter of 2024, compared to $69.7 million for the fourth quarter of 2023. The annualized yield earned on loans, bonds, and cash for the first quarter of 2024 was 4.50 percent, slightly lower than the 4.52 percent recorded for the fourth quarter of 2023.
Noninterest income for the first quarter of 2024 totaled $10.1 million, a decrease from $11.0 million in the fourth quarter of 2023. Debit card fees declined by $524 thousand, while merchant processing services fees decreased by $356 thousand from the fourth quarter of 2023 to the first quarter of 2024.
Noninterest expenses for the first quarter of 2024 were $26.1 million, up from $25.5 million for the fourth quarter of 2023. Salaries and related benefits were $430 thousand higher in the first quarter of 2024 compared to the fourth quarter of 2023, driven by seasonally higher payroll taxes, merit increases, and higher welfare benefit costs.
The income tax provision (FTE) for the first quarter of 2024 was $13.4 million, down from $15.7 million for the fourth quarter of 2023, which included a $492 thousand increase to reconcile the 2022 income tax provision to the filed 2022 tax returns.
Westamerica Bancorporation's wholly owned subsidiary, Westamerica Bank, operates commercial banking and trust offices throughout northern and central California.
This article is based on the press release issued by Westamerica Bancorporation and does not include any additional information. As a result of these announcements, the company's shares have moved 0.7% on the market, and are now trading at a price of $45.83. For the full picture, make sure to review Westamerica Bancorporation's 8-K report.
