Westamerica Bancorporation (Nasdaq: WABC) recently announced its first-quarter earnings, which totaled $36.4 million. While this figure is slightly lower than the previous quarter and the first quarter of the previous year, the bank’s total earnings for 2023 amounted to $161.8 million, marking a 32% increase from the previous year as it emerges from challenges related to the pandemic and the economy.
The net interest income for the first quarter of 2024 was $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 noted 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 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 the failures of regional banks like Silicon Valley Bank.
Noninterest income remained consistent at $10 million, comparable to previous quarters of the previous year. Noninterest expenses increased slightly to $26.1 million, primarily due to higher payroll taxes. Senior Vice President and Chief Financial Officer Robert Thorson expected this issue and noted that it was not unexpected based on current market conditions.
Westamerica Bancorporation manages assets totaling $6.5 billion across more than 80 branches in Northern and Central California