Executive Summary

Q4 2024 EPS was $1.19 and net income $31.7M; sequentially softer vs Q3 ($1.31 EPS, $35.1M) primarily on lower net interest income and absence of prior-quarter gains, with ROE at 12.1% and ROA 2.02% .
Net interest income (FTE) fell to $59.2M from $62.5M in Q3, as asset yields declined to 4.25% (from 4.45%) while cost of funds improved to 0.24% (from 0.37%), compressing NIM to 4.01% (from 4.08%) .
Credit quality remained robust: no provision for credit losses, nonperforming loans at $0.7M (0.09% of loans), and ACL on loans $14.8M (1.80% of loans) at quarter-end .
Shareholder returns and capital actions: quarterly dividend maintained at $0.44 and a new authorization to repurchase up to 2,000,000 shares (~7.5% of shares outstanding) announced post-quarter, potential catalysts for sentiment and capital deployment narrative .
Wall Street consensus estimates from S&P Global were unavailable due to a request limit; estimate comparisons could not be provided (S&P Global unavailable).

What Went Well and What Went Wrong

What Went Well

“Westamerica’s fourth quarter 2024 results benefited from the Company’s valuable low-cost deposit base, of which 47 percent was represented by non-interest bearing checking accounts during the quarter; the annualized cost of funding our loan and bond portfolios was 0.24 percent in the quarter.” — David Payne (Chairman, President & CEO) .
Operating discipline: efficiency ratio held to 37%, and noninterest expense decreased q/q to $25.9M from $26.3M .
Credit stability: no provision for credit losses; nonperforming assets stable at $0.7M and ACL at $14.8M, supporting benign loss content and conservative provisioning posture .

What Went Wrong

Net interest income and NIM drifted lower sequentially (NII FTE $59.2M from $62.5M; NIM 4.01% from 4.08%) as asset yields fell (4.25% vs 4.45%) despite lower funding costs, reflecting pressure from portfolio mix and rate dynamics .
Noninterest income down q/q ($10.6M vs $11.9M) due to absence of Q3’s $1.6M gains from life insurance and asset sales; core fee categories also slightly softer vs prior year .
Deposit averages declined y/y and sequentially, with lower noninterest demand balances (avg $2.34B vs $2.43B in Q3 and $2.67B y/y), tempering balance sheet scale and revenue capacity .

Financial Results

Quarterly Comparison (Sequential)

Metric	Q2 2024	Q3 2024	Q4 2024
Net Income ($USD Millions)	$35.5	$35.1	$31.7
Diluted EPS ($)	$1.33	$1.31	$1.19
Total Revenue (FTE) ($USD Millions)	$74.6	$74.39	$69.88
Net Interest Income (FTE) ($USD Millions)	$64.10	$62.47	$59.25
Noninterest Income ($USD Millions)	$10.50	$11.93	$10.63
Net Interest Margin (FTE, %)	4.15%	4.08%	4.01%
Yield on Earning Assets (%, annualized)	4.50%	4.45%	4.25%
Cost of Funds (%, annualized)	0.35%	0.37%	0.24%
Efficiency Ratio (FTE, %)	35.0%	35.4%	37.0%
ROA (%)	2.18%	2.16%	2.02%
ROE (%)	14.4%	13.7%	12.1%

Year-over-Year (Q4)

Metric	Q4 2023	Q4 2024
Net Income ($USD Millions)	$39.47	$31.70
Diluted EPS ($)	$1.48	$1.19
Total Revenue (FTE) ($USD Millions)	$80.73	$69.88
Net Interest Income (FTE) ($USD Millions)	$69.74	$59.25
Noninterest Income ($USD Millions)	$10.99	$10.63
Net Interest Margin (FTE, %)	4.41%	4.01%
Efficiency Ratio (FTE, %)	31.6%	37.0%

Revenue Mix (FTE)

Metric	Q2 2024	Q3 2024	Q4 2024
Net Interest & Loan Fee Income (FTE) ($USD Millions)	$64.10	$62.47	$59.25
Noninterest Income ($USD Millions)	$10.50	$11.93	$10.63
Total Revenue (FTE) ($USD Millions)	$74.60	$74.39	$69.88

KPIs and Balance Sheet

KPI	Q2 2024	Q3 2024	Q4 2024
Demand Deposits / Total Deposits (%)	47.8%	47.6%	46.6%
Loans / Deposits (%)	16.1%	16.3%	16.3%
Cash Balances ($USD Millions)	$486.12	$502.95	$601.49
Nonperforming Loans ($USD Thousands)	$1,551	$919	$735
NPLs / Total Loans (%)	0.19%	0.11%	0.09%
ACL on Loans ($USD Thousands)	$15,952	$15,318	$14,780
ACL / Loans (%)	1.92%	1.84%	1.80%
Dividends Paid Per Share ($)	$0.44	$0.44	$0.44

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Quarterly Dividend per Share	Q1 2025	$0.44	$0.44	Maintained
Share Repurchase Authorization	Through 3/31/2026	None disclosed	Up to 2,000,000 shares (~7.5% of common shares)	New

Notes: No formal EPS/revenue/margin guidance provided in Q4 materials; commentary emphasized deposit mix, funding cost, expenses, and credit quality .

Earnings Call Themes & Trends

No Q4 2024 earnings call transcript was available in the document catalog; themes are inferred from press releases.

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q4 2024)	Trend
Deposit mix and funding cost	Cost of funds 0.35% (Q2); noninterest checking ~48%; focus on low-cost funding	Cost of funds improved to 0.24%; noninterest checking 47%	Positive funding trend; stable NIB mix
Net interest margin and asset yields	NIM 4.15% (Q2); asset yield 4.50%	NIM 4.01%; asset yield 4.25%	Moderation in NIM, lower yields
Credit quality and ACL	NPLs $1.551M; ACL/loans 1.92% (Q2)	NPLs $0.735M; ACL/loans 1.80%; no provision	Improving NPLs; conservative ACL levels
Liquidity and borrowings	Cash $486M; FRB pledged collateral $1.07B, BTFP $200M (Q2)	Cash $601M; FRB access $767M; no borrowings outstanding at 12/31/24	Strong liquidity position, reduced BTFP
Capital and shareholder returns	Dividend $0.44; equity $815.6M (Q2)	Dividend $0.44; equity $889.96M; new buyback authorization post-Q4	Enhanced capital flexibility

Management Commentary

“Operating expenses remained well controlled at 37 percent of total revenues. The Company recognized no provision for credit losses. At December 31, 2024, nonperforming assets were stable at $0.7 million and the allowance for credit losses was $14.8 million.” — David Payne, Chairman, President & CEO .
“Fourth quarter 2024 results generated an annualized 12.1 percent return on average common equity. Shareholders were paid a $0.44 per common share dividend during the fourth quarter 2024.” — David Payne .
Dividend affirmation post-quarter: “This quarterly dividend recognizes Westamerica’s reliable earnings stream, financial strength and conservative risk profile.” — David Payne .
Buyback plan: “This stock repurchase plan recognizes Westamerica’s financial strength, conservative risk profile and reliable earnings stream.” — David Payne .

Q&A Highlights

No Q4 2024 earnings call transcript was available; Q&A themes and clarifications could not be assessed from primary transcripts.

Estimates Context

S&P Global Wall Street consensus estimates for Q4 2024 could not be retrieved due to a daily request limit; comparison to consensus is unavailable (S&P Global unavailable).

Where estimates may need to adjust: Given sequential declines in NII and NIM and strong cost control and credit outcomes, future estimates may calibrate NIM trajectory, fee run-rate excluding one-time items, and capital return impacts (buyback, dividend) once consensus is accessible .

Key Takeaways for Investors

Funding advantage remains a core differentiator: noninterest-bearing deposits at 47% and cost of funds at 0.24% should cushion earnings even as asset yields moderate .
NIM compression continued (4.01% from 4.08%), driven by lower asset yields; watch rate path and reinvestment opportunities for stabilization or recovery .
Credit profile is pristine with no provision, very low NPLs (0.09%), and ACL at 1.80%; supports resilient earnings quality and potential capital flexibility .
Operating efficiency is strong (37% efficiency ratio), providing downside protection to profitability amid revenue pressure .
Shareholder returns are consistent (dividend $0.44) and enhanced by the new buyback authorization (~7.5% of shares), a potential support for per-share metrics and stock sentiment .
Liquidity posture improved materially (cash $601M; significant eligible collateral and FRB access), with no outstanding FRB borrowings at year-end, lowering funding risk .
Near-term trading implications: absent consensus data, the narrative skews to high-quality balance sheet and capital returns vs NIM drift; monitor subsequent disclosures and buyback execution for catalysts .

WESTAMERICA BANCORPORATION (WABC)·Q4 2024 Earnings Summary