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Dec 31, 2025
Westamerica Q4 2025 Earnings Report
Westamerica Bancorporation reported a decline in both net interest income and net income in Q4 2025, impacted by lower yields on earning assets and slightly higher operating expenses.
Key Takeaways
Westamerica Bancorporation saw a 12.3% drop in net income and a 9.6% decline in net interest income in Q4 2025, driven by a reduced net interest margin and flat noninterest income. The company maintained strong capital levels and efficient operations despite economic headwinds.
Net income for Q4 2025 was $27.8 million, down from $31.7 million in Q4 2024.
EPS for the quarter was $1.12, flat quarter-over-quarter but down from $1.19 year-over-year.
Net interest income declined to $53.5 million as net interest margin narrowed to 3.76%.
Efficiency ratio remained low at 40.1%, reflecting solid cost control.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company is maintaining its conservative balance sheet and efficient cost structure as it navigates margin compression and prepares for macroeconomic shifts.
Positive Outlook
- Maintained low cost of funds at 0.24%.
- Efficiency ratio remains strong at 40.1%.
- Stable nonperforming assets at $1.8 million.
- Strong capital position exceeding regulatory requirements.
- Continued dividend payments and share repurchases reflect confidence.
Challenges Ahead
- Net interest income declined due to narrowing interest margin.
- Return on equity decreased year-over-year.
- Total loans and earning assets declined.
- Noninterest income dropped by 5.9%.
- Revenue declined 9.1% compared to Q4 2024.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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