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Westamerica Bancorporation Reports Fourth Quarter 2025 Financial Results

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SAN RAFAEL, Calif., Jan. 15, 2026 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq: WABC), par...

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AI Summary

WABC reported Q4 2025 net income of $27.8 million, matching EPS of $1.12. Noninterest income decreased to $10 million, down from $10.2 million in Q3. Dividend increased by 4.5% to $0.46 per share, with 485k shares repurchased. Total loans fell 11.5% YoY, affecting profitability metrics. Stable nonperforming assets at $1.8 million keep credit quality intact.

Sentiment Rationale

The financials indicate stable dividends and control over operational costs, but the drop in loans and income raises concern. Historical sales patterns suggest significant stock reactions to earnings miss or strong regulatory capital ratios, yet WABC's position remains steady amid market fluctuations.

Trading Thesis

The immediate implications of Q4 results will influence market reactions, but existing dividends and buybacks indicate long-term stability. Market conditions could sway sentiment within the next quarter based on ongoing earnings reports.

Market-Moving

  • WABC reported Q4 2025 net income of $27.8 million, matching EPS of $1.12.
  • Noninterest income decreased to $10 million, down from $10.2 million in Q3.
  • Dividend increased by 4.5% to $0.46 per share, with 485k shares repurchased.

Key Facts

  • WABC reported Q4 2025 net income of $27.8 million, matching EPS of $1.12.
  • Noninterest income decreased to $10 million, down from $10.2 million in Q3.
  • Dividend increased by 4.5% to $0.46 per share, with 485k shares repurchased.
  • Total loans fell 11.5% YoY, affecting profitability metrics.
  • Stable nonperforming assets at $1.8 million keep credit quality intact.

Companies Mentioned

  • CBSH (CBSH)
  • CFR (CFR)
  • PB (PB)
  • KEY (KEY)

Earnings

Financial results have a historical tendency to influence stock prices substantially, especially around quarterly earnings release times. Despite mixed performance metrics, active dividends and share repurchases are positive signs for investors.

Westamerica Bancorporation Reports Fourth Quarter 2025 Financial Results

SAN RAFAEL, Calif., Jan. 15, 2026 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq: WABC), the parent company of Westamerica Bank, announced its financial results for the fourth quarter of 2025, reporting a net income of $27.8 million and diluted earnings per share (EPS) of $1.12. However, the results reflect a slight adjustment to the prior year’s income tax provision, which decreased EPS by $0.02. Notably, this quarter's performance aligns closely with the third quarter of 2025, where net income was recorded at $28.3 million with an identical EPS of $1.12.

Key Financial Highlights

  • Net interest income (FTE) for Q4 2025: $53.5 million
  • Annualized yield on loans, bonds, and cash: 4.00%
  • Annualized cost of funding loan and bond portfolios: 0.24%
  • Noninterest income: $10.0 million
  • Noninterest expenses: $25.5 million

CEO Comments on Financial Results

David Payne, Chairman, President, and CEO, remarked, “Westamerica’s fourth quarter 2025 results benefited from the Company’s valuable low-cost deposit base, with 46% of total deposits being non-interest bearing checking accounts. The cost of funding our loan and bond portfolios was maintained at a low 0.24% percent.” He also noted that nonperforming assets remained stable at $1.8 million, with a credit loss allowance of $11.6 million. Furthermore, the quarter yielded an annualized return of 10.8% percent on average common equity.

Dividends and Share Repurchases

During the fourth quarter of 2025, Westamerica paid a dividend of $0.46 per common share. The company also executed a share repurchase plan, retiring 485,000 common shares, underscoring its commitment to returning value to shareholders. Payne emphasized, “Westamerica’s capital ratios remain robust and continue to exceed the highest regulatory requirements.”

Fourth Quarter Financial Performance Details

Comparative analysis revealed that net interest income on a fully-taxable equivalent (FTE) basis decreased from $53.8 million in Q3 2025 to $53.5 million in Q4 2025. The yield on earning assets also saw a slight decrease from 4.06% percent to 4.00% percent.

Overall, noninterest income dropped from $10.2 million in Q3 2025 to $10.0 million in Q4 2025. Conversely, noninterest expenses were slightly reduced from $25.8 million to $25.5 million during the same period. This careful management indicates Westamerica's focus on maintaining operational efficiency.

Looking Ahead

Westamerica Bancorporation operates numerous commercial banking and trust offices across Northern and Central California through its wholly owned subsidiary, Westamerica Bank. The management remains committed to navigating forward-looking risks while seizing opportunities to enhance economic performance.

Contact Information

For more details, investors and interested parties can connect with:

Westamerica Bancorporation
1108 Fifth Avenue, San Rafael, CA 94901
Robert A. Thorson – Investor Relations Contact
Phone: 707-863-6090
Email: investments@westamerica.com

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