Westamerica Bancorp 2Q cash & due from banks $626.4M, -14% Q/Q

Westamerica Bancorp 2Q cash & due from banks $626.4M, -14% Q/Q

Westamerica Bancorporation (Nasdaq: WABC) reported its second-quarter 2025 financial results, highlighting a notable decline in cash and due from banks. The bank's cash and due from banks totaled $626.4 million, a decrease of 14% compared to the previous quarter [1].

The bank's net income for Q2 2025 was $29.1 million, with diluted EPS of $1.12. This represents a decline from the first quarter's $31.0 million and $1.16 EPS [1]. Despite the net income drop, Westamerica maintained strong operational efficiency, with an efficiency ratio of 39.3% and a return on equity of 11.2% [1].

Key financial metrics for the second quarter include net interest income (FTE) of $54.6 million, down from $56.4 million in Q1 2025, with an annualized yield of 4.07% on loans, bonds, and cash. The bank's cost of funding remained low at 0.22%, significantly below industry averages [1].

Westamerica's asset quality remains robust, with nonperforming assets at $5.0 million and an allowance for credit losses of $13.8 million. This strength allowed the bank to avoid any provision for credit losses during the quarter [1].

The bank's capital management strategy includes paying a $0.46 dividend per share and repurchasing 773,000 common shares while maintaining capital ratios above regulatory guidelines [1].

Westamerica's loan portfolio decreased by 9.0% year-over-year to $762.2 million, with consumer loans showing the largest decline at 27.6%. Deposits also contracted by 6.9% year-over-year to $4.84 billion, with the loan-to-deposit ratio at a conservative 15.7% [1].

Overall, Westamerica Bancorporation delivered solid Q2 results, reflecting both strengths and challenges. The bank's operational efficiency and low funding costs are notable, but the decline in net interest income and cash and due from banks indicates areas for improvement.

References:
[1] https://www.stocktitan.net/news/WABC/westamerica-bancorporation-reports-second-quarter-2025-financial-5uj526nrlt8d.html