Westamerica Bancorporation, the parent company of Westamerica Bank, reported a net income of $31.0 million and diluted earnings per common share of $1.16 for the first quarter of 2025. Comparing this to the fourth quarter of 2024, the company saw a slight decrease in net income from $31.7 million and diluted earnings per common share of $1.19. The first quarter of 2025 results also included a reversal of provision for credit losses of $550 thousand, which increased earnings per share by $0.01.
The company's low-cost deposit base, with 46% represented by non-interest bearing checking accounts, contributed to a stable annualized cost of funding the loan and bond portfolios at 0.24% in the first quarter of 2025. Operating expenses remained well-controlled at 38% of total revenues, while credit quality remained stable with nonperforming assets at $277 thousand as of March 31, 2025.
Net interest income on a fully-taxable equivalent basis was reported at $56.4 million for the first quarter of 2025, compared to $59.2 million for the fourth quarter of 2024. The annualized yield earned on loans, bonds, and cash for the first quarter of 2025 was 4.14%, slightly lower than the 4.25% reported for the fourth quarter of 2024.
The company recognized a $550 thousand reversal of provision for credit losses in the first quarter of 2025, with the allowance for credit losses on loans at $13.9 million as of March 31, 2025. Noninterest income for the first quarter of 2025 totaled $10.3 million, a slight decrease from $10.6 million in the fourth quarter of 2024. Noninterest expenses also decreased to $25.1 million from $25.9 million in the fourth quarter of 2024, primarily due to lower salaries and benefits expense, lower occupancy and equipment expense, and lower estimated operating losses from limited partnership investments.
The income tax provision for the first quarter of 2025 was $11.1 million, down from $12.3 million in the fourth quarter of 2024. This decrease is partly attributed to a $305 thousand increase in the fourth quarter of 2024 to reconcile the 2023 income tax provision to the filed 2023 tax returns.
Westamerica Bancorporation's wholly owned subsidiary, Westamerica Bank, operates commercial banking and trust offices throughout northern and central California. Following these announcements, the company's shares moved 0.6%, and are now trading at a price of $45.85. If you want to know more, read the company's complete 8-K report here.
