Westamerica Bancorporation reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting a decline in net income and total deposits compared to the previous fiscal period.
For Q3 2024, net income was $35.1 million, or $1.31 per share, down from $41.6 million, or $1.56 per share, in Q3 2023. For the nine months ended September 30, 2024, net income totaled $106.9 million, or $4.01 per share, compared to $122.3 million, or $4.58 per share, for the same period in 2023. The decrease in net income was attributed to a decline in net interest and loan fee income, which fell to $62.5 million in Q3 2024 from $72.1 million in Q3 2023, and to $192.7 million for the nine months, down from $211.9 million in the prior year.
Total interest and loan fee income for Q3 2024 was $67.8 million, a decrease from $72.8 million in Q3 2023. The decline was influenced by lower average balances of investment debt securities and loans, alongside increased interest rates on liabilities. The annualized net interest margin for Q3 2024 was 4.08%, down from 4.43% in Q3 2023.
Total deposits decreased to $5.1 billion as of September 30, 2024, from $5.5 billion at the end of 2023. This decline was attributed to competitive pricing of financial products and changing fiscal and monetary policies. Noninterest-bearing deposits also fell to $2.4 billion from $2.6 billion, while interest-bearing transaction deposits decreased to $925.5 million from $1.1 billion.
Total shareholders' equity increased to $909 million as of September 30, 2024, up from $773 million at the end of 2023, reflecting a stronger capital position. The total risk-based capital ratio improved to 22.03% from 18.60% year-over-year.
The company reported a significant change in unrealized gains on debt securities available for sale, with a gain of $98.9 million for Q3 2024 compared to a loss of $47.8 million in Q3 2023. This contributed to a total comprehensive income of $104.7 million for Q3 2024, compared to $7.9 million in the same period last year.
In terms of loan performance, total loans outstanding decreased to $834 million as of September 30, 2024, from $867 million at the end of 2023. Commercial real estate loans increased to $503.6 million, while consumer installment loans decreased to $186.4 million.
Overall, Westamerica Bancorporation's financial results reflect challenges in net income and deposit levels, alongside improvements in capital ratios and unrealized gains on securities.
About WESTAMERICA BANCORPORATION
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