Short answer
WESTAMERICA BANCORPORATION (WABC) filed its fiscal 2025 10-K annual report with the SEC on Feb 27, 2026. It reported revenue of $231M (−13.8% year over year) and net income of $116M.
- Top risk flagged: Regulatory risk from Federal Reserve Board's FOMC interest rate policies impacting loan origination and deposit rates
FY2025 key financial metrics · XBRL
- Revenue
- $231M
- −13.8% YoY
- Net income
- $116M
- −16.2% YoY
- EPS (diluted)
- $4.52
- −13.1% YoY
- ROE
- 12.4%
- −3.1 pp YoY
- Operating cash flow
- $122M
- −13.9% YoY
Source: XBRL data from the WESTAMERICA BANCORPORATION (WABC) FY2025 10-K on SEC EDGAR. USD.
WESTAMERICA BANCORPORATION FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business: Commercial banking primarily serving small businesses in Northern and Central California through Westamerica Bank subsidiary
- No new products or segments introduced; continued focus on core banking and support via Community Banker Services Corporation
- Strategic emphasis on environmental practices, including recycling, energy control, and climate risk mitigation, not highlighted in prior years
- Employee count stable at 627 (608 FTE) with comprehensive benefits and performance-based incentives detailed for 2025
- Regulatory context: Assets approx. $6.0B, deposits $4.8B, shareholders’ equity $934M as of Dec 31, 2025, with all regulatory capital ratios exceeding minimums
Management Discussion & Analysis
- Revenue $258.1M in 2025 down 14.4% YoY from $301.1M in 2024 due to net interest income ($217.3M vs $250.6M) and noninterest income declines ($40.8M vs $43.2M)
- Operating margin (efficiency ratio) worsened to 39.3% in 2025 from 35.4% in 2024; net interest margin fell to 3.82% in 2025 from 4.14% in 2024
- Best segment: Investment securities income with $162.3M (3.77% yield) in 2025; worst segment: Loans down to $41.95M interest income on $755.7M at 5.55% yield in 2025, declining from prior years
- Operating cash flow supported $47M dividends ($1.82/share), no share buybacks reported, capital expenditures not disclosed; shareholders' equity increased to $933.5M from $890M
- Management cautious on inflation, rate cuts, and banking sector volatility risks; notes regional bank failures and liquidity uncertainties could impact future performance
Risk Factors
- Regulatory risk from Federal Reserve Board's FOMC interest rate policies impacting loan origination and deposit rates
- Macroeconomic exposure to fluctuating interest rates affecting income and cash flow from loans and investments
- Operational dependency on competitive interest rate pricing to attract loans and deposits in volatile rate environment
- Competitive threat from rival banks influencing deposit pricing and loan competition in Westamerica's markets
- Financial risk linked to interest margin compression reducing net interest income and cash flow stability
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