- Westamerica Bancorporation (WABC, Financial) reported Q1 2025 net income of $31.0 million with an EPS of $1.16, showing a slight decline from Q4 2024.
- The bank maintained a robust deposit base with 46% in non-interest bearing accounts, and a low annualized funding cost of 0.24%.
- Operating expenses were well-managed at 38% of total revenues, with a stable credit quality.
Westamerica Bancorporation (WABC) has released its financial results for the first quarter of 2025, revealing a net income of $31.0 million, translating to a diluted earnings per share (EPS) of $1.16. This represents a slight decrease from the previous quarter's $31.7 million net income and $1.19 EPS.
A key highlight of Westamerica's performance is its strong deposit metrics, with 46% of deposits held in non-interest bearing checking accounts. This strategic deposit mix contributed to maintaining a low annualized cost of funding at 0.24%. The bank's focus on cost efficiency is evident as operating expenses constituted only 38% of total revenues.
Net interest income on a fully-taxable equivalent basis stood at $56.4 million, down from $59.2 million in the previous quarter. Noninterest income marginally decreased to $10.3 million, compared to $10.6 million in the fourth quarter of 2024.
Despite the decline in interest income, Westamerica's credit quality remained robust, with nonperforming assets totaling a mere $277,000 as of March 31, 2025. The quarter benefited from the reversal of provisions for credit losses amounting to $550,000, contributing to the favorable credit quality position.
Additionally, the bank reported an annualized return on average common equity of 11.9%. Shareholders received a quarterly dividend payout of $0.44 per share, reflecting a steady return to investors.
Overall, Westamerica's first-quarter performance underscores its ability to navigate the challenging interest rate environment, with a solid deposit base and disciplined expense management providing a firm foundation for future growth.
