Westamerica Bancorporation(US:WABC) Globenewswireยท2025-07-17 15:04Core Insights - Westamerica Bancorporation reported a net income of $29.1 million for Q2 2025, with diluted earnings per share (EPS) of $1.12, a decrease from $31.0 million and $1.16 in Q1 2025 [1][2][10]. Financial Performance - The annualized cost of funding interest-earning loans, bonds, and cash was 0.22% in Q2 2025, down from 0.24% in Q1 2025 [3][4]. - Net interest income on a fully-taxable equivalent (FTE) basis was $54.6 million in Q2 2025, compared to $56.4 million in Q1 2025, reflecting a 14.9% decrease year-over-year [11][12]. - Noninterest income remained stable at $10.3 million for both Q2 2025 and Q1 2025 [4][22]. - 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][23]. Asset Quality - The company recognized no provision for credit losses in Q2 2025, compared to a reversal of $550 thousand in Q1 2025 [4][10]. - Nonperforming assets were reported at $5.0 million as of June 30, 2025, with an allowance for credit losses on loans at $13.8 million [2][4]. Capital Management - Westamerica maintained a high capital ratio, exceeding regulatory guidelines, and paid a dividend of $0.46 per common share during Q2 2025 [2][10]. - The company repurchased 773 thousand common shares as part of its share repurchase plan [2][10]. Operational Efficiency - The efficiency ratio (FTE) was reported at 39.3% for Q2 2025, up from 37.7% in Q1 2025, indicating a slight decline in operational efficiency [11][23]. - The return on average common equity was 11.2% for Q2 2025, down from 11.9% in Q1 2025 [2][11].