WESTAMERICA BANCORPORATION SEC 10-Q Report

Westamerica Bancorporation has released its Form 10-Q report for Q3 2025, highlighting a decline in financial performance. Total interest and loan fee income fell to $57.234 million, down from $67.794 million in Q3 2024. Net income decreased to $28.263 million, with basic and diluted earnings per share both at $1.12, down from $1.31. Noninterest income also dropped to $10.151 million. The company is assessing the impact of economic factors on its operations, particularly in Northern and Central California, where it primarily operates.

Westamerica Bancorporation, a prominent financial institution operating primarily in Northern and Central California, has released its Form 10-Q report for the third quarter of 2025. The report provides a comprehensive overview of the company's financial performance and operational highlights for the three months ended September 30, 2025. This summary delves into the key financial metrics and business activities that have shaped the company's recent performance.

Financial Highlights

Total Interest and Loan Fee Income: $57.234 million for the three months ended September 30, 2025, reflecting a decrease from $67.794 million in the same period in 2024, primarily due to lower income from debt securities available for sale.
Net Interest and Loan Fee Income: $53.589 million for the three months ended September 30, 2025, down from $62.149 million in the same period in 2024, indicating a reduction in interest income.
Net Income: $28.263 million for the three months ended September 30, 2025, compared to $35.057 million in the same period in 2024, reflecting a decrease in profitability.
Basic Earnings Per Share: $1.12 for the three months ended September 30, 2025, down from $1.31 in the same period in 2024, indicating a decrease in earnings per share.
Diluted Earnings Per Share: $1.12 for the three months ended September 30, 2025, compared to $1.31 in the same period in 2024, showing a decline in diluted earnings.
Total Noninterest Income: $10.151 million for the three months ended September 30, 2025, down from $11.925 million in the same period in 2024, due to lower other noninterest income.
Total Noninterest Expense: $25.800 million for the three months ended September 30, 2025, slightly down from $26.309 million in the same period in 2024, indicating cost control measures.
Income Before Income Taxes: $37.940 million for the three months ended September 30, 2025, compared to $47.765 million in the same period in 2024, reflecting a decrease in pre-tax income.

Business Highlights

Revenue Segments: The company’s revenue is primarily derived from interest and loan fee income, with significant contributions from loans, equity securities, debt securities available for sale, and debt securities held to maturity. Noninterest income also plays a role, with service charges on deposit accounts, merchant processing services, and debit card fees being notable contributors.
Geographical Performance: The company operates primarily in Northern and Central California, focusing on lending activities to commercial and consumer customers in these regions. The economic conditions and market trends in these areas significantly impact the company's operations.
Sales Units: The company reported a decrease in loan balances, particularly in commercial and consumer installment loans, which reflects a reduction in the number of units sold or serviced.
Future Outlook: Management is evaluating the impacts of inflation, Federal Reserve monetary policy, tariffs, international trade tensions, and climate changes on the company’s business. The banking industry could experience significant volatility, and industry-wide concerns related to liquidity, deposit outflows, and unrealized losses on debt securities could adversely affect the company’s ability to fund its operations effectively.

SEC Filing: WESTAMERICA BANCORPORATION [ WABC ] - 10-Q - Nov. 07, 2025