Westamerica Bancorporation (Nasdaq: WABC) recently announced first-quarter earnings totaling $36.4 million. While this amount is slightly lower than the earnings from the previous quarter and last year’s first quarter, the bank has shown signs of improvement since dealing with pandemic- and economic-related challenges over the past few years. In 2023, earnings reached $161.8 million, marking a 32% increase compared to the previous year.
Net interest income for the first quarter of 2024 was reported at $66 million, slightly below the $69.5 million from the previous quarter. Net interest income is the difference between interest revenues and servicing liabilities on interest-bearing accounts. Westamerica Bank has been able to maintain a low-cost deposit base, according to President and CEO David Payne.
Total deposits for the first quarter of 2024 reached $5.3 billion, slightly lower than the fourth quarter of 2023. The competitive market for deposits, influenced by benchmark interest rates set by the Federal Reserve, has posed challenges for banks like Westamerica. Noninterest income from fees remained steady at $10 million, while noninterest expenses increased to $26.1 million due to factors like higher payroll taxes.
Westamerica currently manages assets totaling $6.5 billion across more than 80 branches in Northern and Central California. The bank, established in 1884, has a Santa Rosa branch that is undergoing a planned $2 million upgrade. A dividend of 44 cents per share will be paid on May 17.