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Investing.com -- Westamerica Bancorporation (NASDAQ:WABC) reported second quarter 2025 earnings that exceeded analyst expectations, while revenue fell slightly short of estimates. The parent company of Westamerica Bank posted net income of $29.1 million with earnings per share (EPS) of $1.12, beating the analyst consensus of $1.07.
Revenue for the quarter came in at $64.88 million, below the consensus estimate of $65.8 million. The company’s stock remained flat following the announcement, reflecting the relatively in-line results.
Net interest income on a fully-taxable equivalent basis was $54.6 million for the second quarter, down from $56.4 million in the first quarter of 2025. The company maintained its efficiency with an operating cost ratio of 39% of revenue and required no provision for credit losses during the quarter.
"Westamerica’s second quarter 2025 results benefited from the Company’s low-cost operating principles," said Chairman, President and CEO David Payne. "The annualized cost of funding interest-earning loans, bonds and cash was 0.22% for the second quarter 2025."
The bank’s asset quality remained strong with nonperforming assets at just $5.0 million and an allowance for credit losses on loans of $13.8 million as of June 30, 2025. The second quarter results generated an annualized 11.2% return on average common equity.
During the quarter, Westamerica paid a $0.46 per common share dividend and repurchased 773,000 common shares. The company’s capital ratios continue to exceed regulatory guidelines, maintaining historically high levels according to management.
The annualized yield earned on loans, bonds and cash decreased slightly to 4.07% from 4.14% in the previous quarter, while funding costs improved to 0.22% from 0.24%.
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