Westamerica Bancorporation reported its fourth‑quarter 2025 financial results, posting net income of $27.8 million and diluted earnings per share of $1.12, a beat of $0.05 over the consensus estimate of $1.07. The earnings beat was driven by disciplined cost management that kept operating expenses at 40 % of revenue and by a stable low‑cost deposit base that supported net interest income.
Total revenue reached $63.5 million, combining $53.5 million of net interest income and $10.0 million of non‑interest income. Revenue was slightly below the $63.6 million of the prior quarter, reflecting a modest decline in net interest income from $53.8 million in Q3 2025. The dip is attributed to a tightening rate environment that compressed interest margins, while non‑interest income fell marginally as fee‑based activities slowed.
The bank’s balance sheet remained strong, with non‑performing assets at $1.8 million and an allowance for credit losses of $11.6 million. Operating expenses were 40 % of total revenues, and the annualized cost of funding the loan and bond portfolios fell to 0.24 percent from 0.26 percent in the prior quarter, supporting a net interest margin of 3.76 percent.
Management highlighted continued capital return initiatives, paying a $0.46 per share dividend and retiring 485,000 shares under its share‑repurchase plan. The return on average common equity rose to 10.8 percent, a figure that underscores the bank’s efficient use of capital and disciplined expense control.
Analysts noted that the earnings beat and revenue beat of $1.70 million over the $61.9 million consensus demonstrate the bank’s resilience amid a challenging rate environment. The results suggest that Westamerica’s conservative growth strategy and focus on high‑quality assets are sustaining profitability, even as interest income faces headwinds.
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