Westamerica Bancorporation (NASDAQ: WABC) has reported its financial results for the fourth quarter of 2024, showcasing a net income of $31.7 million and diluted earnings per common share (EPS) of $1.19. Comparing this to the third quarter of 2024, where the net income was $35.1 million and EPS was $1.31, we see a decrease in both net income and EPS.
The company's low-cost deposit base, with 47% represented by non-interest bearing checking accounts, contributed to its performance, with an annualized cost of funding the loan and bond portfolios at 0.24% in the fourth quarter of 2024. Operating expenses remained well controlled at 37% of total revenues, with no provision for credit losses recognized. Nonperforming assets were stable at $0.7 million, and the allowance for credit losses was $14.8 million as of December 31, 2024.
The annualized yield earned on loans, bonds, and cash for the fourth quarter of 2024 was 4.25%, in comparison to 4.45% for the third quarter of 2024. Net interest income on a fully-taxable equivalent (FTE) basis was $59.2 million for the fourth quarter, down from $62.5 million in the third quarter of 2024. Noninterest income for the fourth quarter of 2024 totaled $10.6 million, a decrease from $11.9 million in the third quarter of 2024.
Noninterest expenses for the fourth quarter of 2024 were $25.9 million, slightly down from $26.3 million in the third quarter of 2024. The company reported an annualized 12.1% return on average common equity for the fourth quarter of 2024 and paid a $0.44 per common share dividend during the same period.
Westamerica Bancorporation's wholly owned subsidiary, Westamerica Bank, operates commercial banking and trust offices throughout northern and central California.
This data shows a decrease in net income, EPS, net interest income, and noninterest income compared to the previous quarter, along with a decrease in the annualized yield earned on loans, bonds, and cash. However, the company's low-cost deposit base and controlled operating expenses have positively impacted its performance. As a result of these announcements, the company's shares have moved -1.4% on the market, and are now trading at a price of $51.16. If you want to know more, read the company's complete 8-K report here.
