Westamerica Bancorporation Reports Third Quarter 2025 Financial Results

Core Insights - Westamerica Bancorporation reported a net income of $28.3 million for Q3 2025, with diluted earnings per share (EPS) of $1.12, consistent with the previous quarter's EPS but down from $29.1 million in net income [1][2]. Financial Performance - The annualized cost of funding interest-earning loans, bonds, and cash was 0.26% in Q3 2025, up from 0.22% in Q2 2025 [2][3]. - Net interest income on a fully-taxable equivalent (FTE) basis was $53.8 million for Q3 2025, a decrease of 13.8% from $62.5 million in Q3 2024 and slightly down from $54.6 million in Q2 2025 [11][12]. - Noninterest income totaled $10.2 million in Q3 2025, down 14.9% from $10.3 million in Q2 2025 [4][22]. - Noninterest expense was $25.8 million for Q3 2025, a slight increase from $25.5 million in Q2 2025, primarily due to higher salaries and benefits [4][23]. Asset Quality - As of September 30, 2025, nonperforming assets were $2.6 million, with an allowance for credit losses on loans of $11.9 million [2][5]. - The company recognized no provision for credit losses in Q3 2025, indicating stable asset quality [2][11]. Capital Management - Westamerica maintained a historically high capital ratio, exceeding the highest regulatory guidelines [2]. - The company paid a dividend of $0.46 per common share during Q3 2025 and repurchased 488,000 common shares [2][11]. Efficiency Metrics - The efficiency ratio for Q3 2025 was 40.3%, compared to 39.3% in Q2 2025, indicating a slight decline in operational efficiency [11][23]. - The return on average common equity was 10.9% for Q3 2025, down from 11.2% in Q2 2025 [11].