Westamerica Bancorporation reported a net income of $31.0 million, or $1.16 per diluted share, for the first quarter of 2025, reflecting a decrease from $36.4 million, or $1.37 per share, in the same period last year. The decline in profitability was attributed to a $9.7 million drop in net interest and loan fee income, which totaled $56.4 million for the quarter. This decrease was primarily driven by lower average balances of investment debt securities and loans, as well as a reduction in yields on these assets. The company also recorded a reversal of provision for credit losses amounting to $550,000, which positively impacted earnings by $0.01 per share.
Total assets for Westamerica Bancorporation stood at $5.97 billion as of March 31, 2025, down from $6.08 billion at the end of 2024. The company's loan portfolio decreased to $771.0 million from $820.3 million in the previous quarter, while total deposits fell to $4.87 billion from $5.01 billion. The decline in deposits was primarily due to a reduction in noninterest-bearing deposits, which decreased to $2.24 billion from $2.33 billion. The company’s allowance for credit losses on loans was $13.9 million, representing 1.80% of total loans, a slight decrease from $14.8 million at the end of 2024.
In terms of operational developments, Westamerica Bancorporation has maintained a focus on managing its investment securities portfolio, which totaled $4.08 billion at the end of the first quarter. The company continues to evaluate its investment strategy in response to changing market conditions and interest rate risks. The bank's capital ratios remain strong, with a total risk-based capital ratio of 23.68% as of March 31, 2025, well above the regulatory minimum requirements.
Looking ahead, management expressed caution regarding potential impacts from economic conditions, including inflation and interest rate fluctuations, which could affect liquidity and deposit levels. The company is committed to maintaining a conservative approach to credit risk and capital management while continuing to monitor market conditions closely. The outlook remains uncertain, with management emphasizing the need for adaptability in response to evolving economic factors.
About WESTAMERICA BANCORPORATION
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