Westamerica Bancorporation Reports Second Quarter 2025 Financial Results
SAN RAFAEL, Calif., July 17, 2025 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (NASDAQ:WABC), parent company of Westamerica Bank, generated net income for the second quarter 2025 of $29.1 million and diluted earnings per common share ("EPS") of $1.12. Second quarter 2025 results compare to first quarter 2025 net income of $31.0 million and EPS of $1.16.
"Westamerica's second quarter 2025 results benefited from the Company's low-cost operating principles. The annualized cost of funding interest-earning loans, bonds and cash was 0.22 percent for the second quarter 2025. The Company recognized no provision for credit losses in the second quarter 2025. At June 30, 2025, nonperforming assets were $5.0 million and the allowance for credit losses on loans was $13.8 million. Westamerica operated efficiently, spending 39 percent of its revenue on operating costs in the second quarter 2025", said Chairman, President and CEO David Payne. "Second quarter 2025 results generated an annualized 11.2 percent return on average common equity. Westamerica paid a $0.46 per common share dividend during the second quarter 2025, and retired 773 thousand common shares using its share repurchase plan. Westamerica's capital ratios remain at historically high levels exceeding the highest regulatory guidelines," concluded Payne.
Net interest income on a fully-taxable equivalent (FTE) basis was $54.6 million for the second quarter 2025, compared to $56.4 million for the first quarter 2025. The annualized yield earned on loans, bonds and cash for the second quarter 2025 was 4.07 percent, compared to 4.14 percent for the first quarter 2025. The annualized cost of funding interest-earning loans, bonds and cash was 0.22 percent for the second quarter 2025, compared to 0.24 percent for the first quarter 2025.
The Company provided no provision for credit losses in the second quarter 2025 compared to a $550 thousand reversal of provision for credit losses in the first quarter of 2025. The allowance for credit losses on loans was $13.8 million at June 30, 2025 compared to $13.9 million at March 31, 2025.
Noninterest income for the second quarter 2025 totaled $10.3 million compared to $10.3 million for the first quarter 2025.
Noninterest expenses were $25.5 million for the second quarter 2025 and $25.1 million for the first quarter 2025. The increase in noninterest expense is primarily due to higher salaries and benefits expense due to more business days in the second quarter 2025 compared to the first quarter 2025 and higher occupancy and equipment expense.
The income tax provision (FTE) for the second quarter 2025 was $10.3 million compared to $11.1 million for the first quarter 2025.
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 Bancorporation1108 Fifth Avenue, San Rafael, CA 94901Robert A. Thorson, Investor Relations
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, 2024 filed on Form 10-K and quarterly report for the quarter ended March 31, 2025 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 2010, the Sarbanes-Oxley Act of 2002 and the Gramm-Leach-Bliley Act of 1999, and mergers and acquisitions.
Forward-looking statements speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date forward looking statements are made.
Public Information July 17, 2025
WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
June 30, 2025
1. Net Income Summary.
(in thousands except per-share amounts)
%
Q2'2025
Q2'2024
Change
Q1'2025
Net Interest and Loan Fee
Income (FTE)
$
54,562
$
64,100
-14.9
%
$
56,390
Reversal of Provision
for Credit Losses
-
-
n/m
(550
)
Noninterest Income
10,315
10,500
-1.8
%
10,321
Noninterest Expense
25,529
26,130
-2.3
%
25,127
Income Before Taxes (FTE)
39,348
48,470
-18.8
%
42,134
Income Tax Provision (FTE)
10,282
13,008
-21.0
%
11,097
Net Income
$
29,066
$
35,462
-18.0
%
$
31,037
Average Common Shares
Outstanding
25,889
26,680
-3.0
%
26,642
Diluted Average Common
Shares Outstanding
25,889
26,681
-3.0
%
26,642
Operating Ratios:
Basic Earnings Per Common
Share
$
1.12
$
1.33
-15.8
%
$
1.16
Diluted Earnings Per
Common Share
1.12
1.33
-15.8
%
1.16
Return On Assets (a)
1.93
%
2.18
%
2.03
%
Return On Common
Equity (a)
11.2
%
14.4
%
11.9
%
Net Interest Margin (FTE) (a)
3.85
%
4.15
%
3.90
%
Efficiency Ratio (FTE)
39.3
%
35.0
%
37.7
%
Dividends Paid Per Common
Share
$
0.46
$
0.44
4.5
%
$
0.44
Common Dividend Payout
Ratio
41
%
33
%
38
%
%
6/30'25YTD
6/30'24YTD
Change
Net Interest and Loan Fee
Income (FTE)
$
110,952
$
130,194
-14.8
%
(Reversal of) Provision
for Credit Losses
(550
)
300
n/m
Noninterest Income
20,636
20,597
0.2
%
Noninterest Expense
50,656
52,229
-3.0
%
Income Before Taxes (FTE)
81,482
98,262
-17.1
%
Income Tax Provision (FTE)
21,379
26,383
-19.0
%
Net Income
$
60,103
$
71,879
-16.4
%
Average Common Shares
Outstanding
26,263
26,677
-1.6
%
Diluted Average Common
Shares Outstanding
26,263
26,678
-1.6
%
Operating Ratios:
Basic Earnings Per Common
Share
$
2.29
$
2.69
-14.9
%
Diluted Earnings Per
Common Share
2.29
2.69
-14.9
%
Return On Assets (a)
1.98
%
2.21
%
Return On Common
Equity (a)
11.6
%
14.8
%
Net Interest Margin (FTE) (a)
3.87
%
4.23
%
Efficiency Ratio (FTE)
38.5
%
34.6
%
Dividends Paid Per Common
Share
$
0.90
$
0.88
2.3
%
Common Dividend Payout
Ratio
39
%
33
%
2. Net Interest Income.
(dollars in thousands)
%
Q2'2025
Q2'2024
Change
Q1'2025
Interest and Loan Fee
Income (FTE)
$
57,751
$
69,407
-16.8
%
$
59,786
Interest Expense
3,189
5,307
-39.9
%
3,396
Net Interest and Loan Fee
Income (FTE)
$
54,562
$
64,100
-14.9
%
$
56,390
Average Earning Assets
$
5,652,443
$
6,145,626
-8.0
%
$
5,794,836
Average Interest-Bearing
Liabilities
2,693,505
3,001,786
-10.3
%
2,770,099
Yield on Earning Assets
(FTE) (a)
4.07
%
4.50
%
4.14
%
Cost of Funds (a)
0.22
%
0.35
%
0.24
%
Net Interest Margin (FTE) (a)
3.85
%
4.15
%
3.90
%
Interest Expense /
Interest-Bearing
Liabilities (a)
0.48
%
0.71
%
0.50
%
Net Interest Spread (FTE) (a)
3.59
%
3.79
%
3.64
%
%
6/30'25YTD
6/30'24YTD
Change
Interest and Loan Fee
Income (FTE)
$
117,537
$
138,502
-15.1
%
Interest Expense
6,585
8,308
-20.7
%
Net Interest and Loan Fee
Income (FTE)
$
110,952
$
130,194
-14.8
%
Average Earning Assets
$
5,723,246
$
6,132,497
-6.7
%
Average Interest-Bearing
Liabilities
2,731,590
2,978,676
-8.3
%
Yield on Earning Assets
(FTE) (a)
4.11
%
4.50
%
Cost of Funds (a)
0.24
%
0.27
%
Net Interest Margin (FTE) (a)
3.87
%
4.23
%
Interest Expense /
Interest-Bearing
Liabilities (a)
0.49
%
0.56
%
Net Interest Spread (FTE) (a)
3.62
%
3.94
%
3. Loans & Other Earning Assets.
(average volume, dollars in thousands)
%
Q2'2025
Q2'2024
Change
Q1'2025
Total Assets
$
6,042,100
$
6,549,203
-7.7
%
$
6,187,321
Total Earning Assets
5,652,443
6,145,626
-8.0
%
5,794,836
Total Loans
762,216
838,016
-9.0
%
789,935
Commercial Loans
115,943
133,605
-13.2
%
120,189
Commercial Real Estate
Loans
488,960
487,209
0.4
%
497,379
Consumer Loans
157,313
217,202
-27.6
%
172,367
Total Investment Securities
4,236,303
4,944,191
-14.3
%
4,395,565
Debt Securities Available for
Sale
3,400,199
4,079,896
-16.7
%
3,553,755
Debt Securities Held to
Maturity
836,104
864,295
-3.3
%
841,810
Total Interest-Bearing Cash
653,924
363,419
79.9
%
609,336
Loans / Deposits
15.7
%
16.1
%
15.9
%
%
6/30'25YTD
6/30'24YTD
Change
Total Assets
$
6,114,310
$
6,537,562
-6.5
%
Total Earning Assets
5,723,246
6,132,497
-6.7
%
Total Loans
775,999
845,785
-8.3
%
Commercial Loans
118,054
133,514
-11.6
%
Commercial Real Estate
Loans
493,146
488,099
1.0
%
Consumer Loans
164,799
224,172
-26.5
%
Total Investment Securities
4,315,494
5,021,365
-14.1
%
Debt Securities Available for
Sale
3,476,553
4,152,185
-16.3
%
Debt Securities Held to
Maturity
838,941
869,180
-3.5
%
Total Interest-Bearing Cash
631,753
265,347
138.1
%
Loans / Deposits
15.8
%
16.0
%
4. Deposits, Other Interest-Bearing Liabilities & Equity.
(average volume, dollars in thousands)
%
Q2'2025
Q2'2024
Change
Q1'2025
Total Deposits
$
4,841,803
$
5,202,620
-6.9
%
$
4,958,554
Noninterest Demand
2,245,077
2,485,023
-9.7
%
2,293,059
Interest-Bearing Transaction
908,367
981,703
-7.5
%
935,054
Savings
1,611,845
1,642,806
-1.9
%
1,649,631
Time greater than $100K
27,306
34,721
-21.4
%
29,460
Time less than $100K
49,208
58,367
-15.7
%
51,350
Total Short-Term Borrowings
96,779
284,189
-65.9
%
104,604
Bank Term Funding Program
Borrowings
-
200,000
n/m
-
Securities Sold under
Repurchase Agreements
96,779
84,189
15.0
%
104,604
Shareholders' Equity
1,037,185
990,927
4.7
%
1,055,925
Demand Deposits /
Total Deposits
46.4
%
47.8
%
46.2
%
Transaction & Savings
Deposits / Total Deposits
98.4
%
98.2
%
98.4
%
%
6/30'25YTD
6/30'24YTD
Change
Total Deposits
$
4,899,856
$
5,290,840
-7.4
%
Noninterest Demand
2,268,936
2,508,702
-9.6
%
Interest-Bearing Transaction
921,637
1,019,998
-9.6
%
Savings
1,630,633
1,667,261
-2.2
%
Time greater than $100K
28,377
35,427
-19.9
%
Time less than $100K
50,273
59,452
-15.4
%
Total Short-Term Borrowings
100,670
196,538
-48.8
%
Bank Term Funding Program
Borrowings
-
131,291
n/m
Securities Sold under
Repurchase Agreements
100,670
65,247
54.3
%
Shareholders' Equity
1,046,504
978,384
7.0
%
Demand Deposits /
Total Deposits
46.3
%
47.4
%
Transaction & Savings
Deposits / Total Deposits
98.4
%
98.2
%
5. Interest Yields Earned & Rates Paid.
(dollars in thousands)
Q2'2025
Average
Income/
Yield (a) /
Volume
Expense
Rate (a)
Interest & Loan Fee Income Earned:
Total Earning Assets (FTE)
$
5,652,443
$
57,751
4.07
%
Total Loans (FTE)
762,216
10,591
5.57
%
Commercial Loans (FTE)
115,943
1,833
6.34
%
Commercial Real Estate
Loans
488,960
6,452
5.29
%
Consumer Loans
157,313
2,306
5.88
%
Total Investments (FTE)
4,236,303
39,887
3.75
%
Total Debt Securities
Available for Sale (FTE)
3,400,199
31,354
3.67
%
Corporate Securities
1,945,959
12,898
2.65
%
Collateralized Loan
Obligations
792,914
12,405
6.19
%
Agency Mortgage Backed
Securities
273,083
2,334
3.42
%
Securities of U.S.
Government Sponsored
Entities
311,923
2,777
3.56
%
Obligations of States and
Political Subdivisions
(FTE)
62,093
506
3.26
%
Other Debt Securities
Available for Sale (FTE)
14,227
434
12.21
%
