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Westamerica Bancorporation Reports Third Quarter 2021 Financial Results EXHIBIT 99.1 SAN RAFAEL , Calif . , Oct. 21 , 2021 ( GLOBE NEWSWIRE ) -- Westamerica Bancorporation ( Nasdaq : WABC ) , parent company of Westamerica Bank , generated net income for the third quarter 2021 of $ 22.1 million and diluted earnings per common share ( " EPS " ) of $ 0.82 . Third quarter 2021 results include " make - whole " interest income on corporate bonds redeemed prior to maturity , which increased EPS $ 0.02 . These results compare to net income of $ 22.6 million and EPS of $ 0.84 for the second quarter 2021 , which included “ make - whole ” interest income on corporate bonds redeemed before maturity , which increased EPS $ 0.04 . " Westamerica's valuable deposit base generated a very low 0.03 percent annualized cost of funding our loan and bond portfolios during the third quarter 2021. Operating expenses remained well managed in the third quarter 2021 , delivering fifty - five percent of revenue to pre - tax income . Credit quality remained solid with nonperforming loans of $ 1.8 million at September 30 , 2021 , " said Chairman , President and CEO David Payne . “ Third quarter 2021 results generated an annualized 11.6 percent return on average common equity , and shareholders were paid a $ 0.41 per common share dividend during the quarter , ” concluded Payne . Net interest income on a fully - taxable equivalent ( FTE ) basis was $ 44.0 million for the third quarter 2021 , including “ make- whole " interest income on corporate bonds redeemed prior to maturity of $ 732 thousand . Third quarter 2021 net interest income ( FTE ) compares to $ 44.5 million for the second quarter 2021 , which included “ make - whole ” interest income on corporate bonds redeemed prior to maturity of $ 1.4 million . PPP loan average balances declined to $ 145 million for the third quarter 2021 from $ 208 million for the second quarter 2021 ; at September 30 , 2021 PPP loans totaled $ 103 million . Checking and savings deposits represented ninety - eight percent of the Company's average deposit base during the third quarter 2021 , generating a low 0.03 percent annualized cost of funding interest - earning assets . At September 30 , 2021 , nonperforming loans declined to $ 1.8 million due to the full payoff of a $ 3.1 million non - accrual loan during the third quarter 2021. The allowance for credit losses on loans was $ 23.9 million at September 30 , 2021. The Company continues to work with loan customers requesting loan payment deferrals due to economic weakness caused by the pandemic . At September 30 , 2021 , loans with deferred payments totaled $ 1.0 million , all of which were consumer automobile loans . Noninterest income for the third quarter 2021 totaled $ 11.3 million , compared to noninterest income for the second quarter 2021 of $ 11.0 million . The increase in noninterest income was primarily due to higher levels of deposit related fees . Noninterest expense for the third quarter 2021 was $ 24.7 million compared to $ 24.3 million for the second quarter 2021 . Westamerica Bancorporation's wholly owned subsidiary Westamerica Bank , operates commercial banking and trust offices throughout Northern and Central California . Westamerica Bancorporation Web Address : www.westamerica.com For additional information contact : Westamerica Bancorporation 1108 Fifth Avenue , San Rafael , CA 94901 Robert A. Thorson - SVP & Treasurer 707-863-6840 investments@westamerica.com FORWARD - LOOKING INFORMATION : The following appears in accordance with the Private Securities Litigation Reform Act of 1995 : This press release may contain forward - looking statements about the Company , including descriptions of plans or objectives of its management for future operations , products or services , and forecasts of its revenues , earnings or other measures of economic performance . Forward - looking statements can be identified by the fact that they do not relate strictly to historical or current facts . They often include the words " believe , " " expect , " " anticipate , " " intend , " " plan , " " estimate , " or words of similar meaning , or future or conditional verbs such as " will , " " would , " " should , " " could , " or " may . " Forward - looking statements , by their nature , are subject to risks and uncertainties . A number of factors many of which are beyond the Company's control could cause actual conditions , events or results to differ significantly from those described in the forward - looking statements . The Company's most recent reports filed with the Securities and Exchange Commission , including the annual report for the year ended December 31 , 2020 filed on Form 10 - K and quarterly report for the quarter ended June 30 , 2021 filed on Form 10 - Q , describe some of these factors , including certain credit , interest rate , operational , liquidity and market risks associated with the Company's business and operations . Other factors described in these reports include changes in business and economic conditions , competition , fiscal and monetary policies , disintermediation , cyber security risks , legislation including the Dodd - Frank Wall Street Reform and Consumer Protection Act of 2011 , the Sarbanes - Oxley Act of 2002 and the Gramm - Leach - Bliley Act of 1999 , and mergers and acquisitions .