Westamerica Bancorporation (Nasdaq: WABC) recently announced its first-quarter earnings totaling $36.4 million. This figure is about $3 million less than the previous quarter and $4 million less than the same period last year. Despite this slight decrease, the bank’s earnings for 2023 totaled $161.8 million, marking a 32% increase from the previous year as the bank emerges from challenges related to the pandemic and the economy.
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. The institution continues to effectively manage its low-cost deposit base against the costs of services, according to President and CEO David Payne.
Total deposits for Westamerica Bancorporation were $5.3 billion in the first quarter of 2024, which is slightly lower than in the fourth quarter of 2023 but over $600 million higher than in 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. The payroll tax issue was expected, according to Senior Vice President and Chief Financial Officer Robert Thorson.
Westamerica Bancorporation manages assets totaling $6.5 billion across more than 80 branches in Northern and Central California