Westamerica Bancorporation(US:WABC)2026-01-15 19:19Financial Performance - Westamerica Bancorporation reported a net income of $27.8 million for Q4 2025, with diluted EPS of $1.12, a decrease from $28.3 million and $1.12 in Q3 2025[1][2] - The annualized return on average common equity for Q4 2025 was 10.8%, down from 12.1% in Q4 2024[2][10] - Net interest income on a fully-taxable equivalent basis was $53.5 million in Q4 2025, a 9.6% decrease from $59.2 million in Q4 2024[3][10] - Noninterest income for Q4 2025 totaled $10.0 million, down 5.9% from $10.6 million in Q4 2024[4][10] - Total Revenue (FTE) for Q4'2025 was $63,552, a decrease of 9.1% compared to Q4'2024's $69,880[23] - Net income decreased by 12.3% to $27,807 million compared to $31,700 million in the previous year[37] - Total noninterest income fell by 5.9% to $10,003 million from $10,633 million[37] - Total noninterest income for the year-to-date period was $40,790 million, down 5.5% from $43,155 million[38] Expenses and Efficiency - Noninterest expenses were $25.5 million in Q4 2025, a slight decrease of 1.5% from $25.9 million in Q3 2025[4][10] - The efficiency ratio for Q4 2025 was 40.1%, up from 37.0% in Q4 2024[10] - Total Noninterest Expense for Q4'2025 was $25,466, down 1.5% from $25,853 in Q4'2024[25] - The Noninterest Expense to Revenues (FTE) ratio was 40.1% in Q4'2025, up from 37.0% in Q4'2024[25] Asset and Loan Performance - Total assets decreased by 3.0% to $6,055,696 compared to $6,243,799 in Q4'2024[14] - Total loans declined by 11.5% to $727,540 from $821,767 in Q4'2024[14] - Consumer loans saw a significant drop of 29.2%, falling to $132,577 from $187,133 year-over-year[14] - Average Total Loans decreased by 11.5% to $727,540 in Q4'2025 from $821,767 in Q4'2024[26] - Total loans decreased by 11.4% to $726,482 thousand from $820,300 thousand in the previous year[33] Deposits and Funding - Total deposits decreased by 3.8% to $4,837,964 compared to $5,028,363 in Q4'2024[17] - Noninterest demand deposits fell by 4.5% to $2,236,646 from $2,342,092 in Q4'2024[17] - Loans to deposits ratio decreased to 15.0% from 16.3% in Q4'2024[14] - Total short-term borrowings increased by 18.2% to $130,502 from $110,404 in Q4'2024[17] Equity and Dividends - Westamerica paid a dividend of $0.46 per common share in Q4 2025, an increase of 4.5% from $0.44 in Q4 2024[2][10] - Shareholders' equity slightly decreased by 1.9% to $1,019,086 from $1,039,017 in Q4'2024[17] - Shareholders' equity increased by 4.9% to $933,509 thousand from $889,957 thousand year-over-year[34] Market and Valuation - The market value per common share decreased by 8.8% to $47.83 from $52.46 in the previous year[32] - The average retirement price for shares retired in 2025 was $49.27, compared to $45.58 in 2024[32] Credit Quality - Nonperforming assets remained stable at $1.8 million as of December 31, 2025[2][10] - Nonperforming Loans increased by 146.8% to $1,814 in Q4'2025 compared to $735 in Q4'2024[27] - The Allowance for Credit Losses on Loans decreased by 21.7% to $11,573 in Q4'2025 from $14,780 in Q4'2024[26] Investment and Securities - Total investment securities decreased by 4.7% to $4,343,373 from $4,557,436 in Q4'2024[14] - Total debt securities eligible as collateral amounted to $4,013,502 thousand, with corporate securities making up $2,541,560 thousand[29] - The company pledged $741,923 thousand in debt securities at the Federal Reserve Bank and $710,092 thousand for depository customers, totaling $1,875,670 thousand in pledged securities[31]