Westamerica Bancorporation(WABC) - 2025 Q2 - Quarterly Results

Financial Performance - Net income for Q2 2025 was $29.1 million, with diluted EPS of $1.12, down from $31.0 million and $1.16 in Q1 2025, representing an 18.0% decrease year-over-year[1][12] - Total revenue for Q2 2025 was $64,877 million, a decrease of 13.0% compared to Q2 2024's $74,600 million[28] - Net income decreased by 18.0% to $29,066 million compared to $35,462 million in the previous year[45] - Basic earnings per share dropped by 15.8% to $1.12 from $1.33[45] Income and Expenses - Net interest income (FTE) for Q2 2025 was $54.6 million, a decrease of 14.9% from $64.1 million in Q2 2024 and down from $56.4 million in Q1 2025[3][13] - Noninterest income remained stable at $10.3 million for both Q2 2025 and Q1 2025, but decreased slightly from $10.5 million in Q2 2024[4][13] - Noninterest expenses increased to $25.5 million in Q2 2025 from $25.1 million in Q1 2025, primarily due to higher salaries and benefits[5][13] - Total noninterest expense for Q2 2025 was $25,529 million, a decrease of 2.3% from $26,130 million in Q2 2024[31] - Total interest expense decreased by 20.7% to $6,585 million from $8,308 million[46] Asset and Liability Management - Total Assets decreased by 7.7% to $6,042,100 compared to Q2'2024[19] - Total Loans declined by 9.0% to $762,216 from $838,016 in Q2'2024[19] - Total Investment Securities decreased by 14.3% to $4,236,303 compared to $4,944,191 in Q2'2024[19] - Total Deposits fell by 6.9% to $4,841,803 from $5,202,620 in Q2'2024[22] - Nonperforming assets totaled $5.0 million as of June 30, 2025, with an allowance for credit losses on loans of $13.8 million[2][4] Efficiency and Returns - The efficiency ratio (FTE) was 39.3% in Q2 2025, up from 37.7% in Q1 2025, indicating a decrease in operational efficiency[2][13] - The return on average common equity was 11.2% for Q2 2025, down from 14.4% in Q2 2024[2][12] Shareholder Information - A dividend of $0.46 per common share was paid in Q2 2025, representing a 4.5% increase from $0.44 in Q1 2025[2][14] - Shareholders' Equity increased by 4.7% to $1,037,185 compared to $990,927 in Q2'2024[22] - Common equity per share increased by 17.9% to $36.03 from $30.57 year-over-year[40] - Dividends paid increased by 4.5% to $0.46 from $0.44[45] Loan and Deposit Trends - Consumer Loans saw a significant drop of 27.6%, falling to $157,313 from $217,202 year-over-year[19] - Noninterest Demand Deposits decreased by 9.7% to $2,245,077 compared to $2,485,023 in Q2'2024[22] - Loans to Deposits ratio was 15.7%, down from 16.1% in Q1'2025[19] Credit Quality - The company recognized no provision for credit losses in Q2 2025, compared to a reversal of $550 thousand in Q1 2025[4][12] - Nonperforming loans increased by 220.1% to $4,964 million in Q2 2025 from $1,551 million in Q2 2024[35] - The allowance for credit losses on loans at the end of Q2 2025 was $13,787 million, a reduction of 13.6% from $15,952 million in Q2 2024[33]