Westamerica Bancorporation Q1 Net Income $27.4M and EPS $1.13, ROE 11.0%
Westamerica Bancorporation generated first quarter 2026 net income of $27.4 million and diluted EPS of $1.13, including a $300 thousand credit loss provision reversal that added $0.01 per share. The bank maintained a 0.24% funding cost on loans and bonds with 46% of deposits in non-interest checking, supporting an 11.0% annualized ROE and controlling operating expenses at 42% of revenues.
1. First Quarter Earnings Performance
Westamerica Bancorporation reported Q1 2026 net income of $27.4 million and diluted EPS of $1.13, compared to $27.8 million and $1.12 per share in Q4 2025. Results included a $300 thousand reversal of credit loss provisions, boosting EPS by $0.01.
2. Deposit Base and Funding Costs
The bank’s deposit base comprised 46% non-interest bearing checking accounts, enabling a stable 0.24% annualized cost of funding for its loan and bond portfolios. Loan and bond yields averaged 3.98% for the quarter, slightly below the prior quarter’s 4.00%.
3. Expense Control and Asset Quality
Operating expenses remained at 42% of total revenues, with noninterest expense of $25.9 million. Credit quality stayed strong with nonperforming assets of $1.4 million at March 31, 2026, while noninterest income fell to $9.6 million, reflecting a $247 thousand unrealized securities loss and lower debit card fees.
4. Shareholder Returns and Capital Actions
The company achieved an 11.0% annualized return on average common equity and paid a $0.46 per share dividend. During the quarter, 997 thousand shares were retired through the share repurchase program.