Westamerica Bancorporation (NASDAQ:WABC) Posts Better-Than-Expected Sales In Q4 CY2025

Regional bank Westamerica Bancorporation (NASDAQ:WABC) reported revenue ahead of Wall Streets expectations in Q4 CY2025, but sales fell by 9.1% year on year to $63.55 million. Its non-GAAP profit of $1.12 per share was 5.2% above analysts’ consensus estimates.

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"Westamerica’s fourth quarter 2025 results benefited from the Company’s valuable low-cost deposit base, of which 46 percent was represented by non-interest bearing checking accounts during the quarter; the annualized cost of funding our loan and bond portfolios was 0.24 percent in the quarter. Operating expenses remained well controlled at 40 percent of total revenues. At December 31, 2025, nonperforming assets were stable at $1.8 million and the allowance for credit losses was $11.6 million” said Chairman, President and CEO David Payne.

Company Overview

Founded in 1884 and serving communities from Mendocino County in the north to Kern County in the south, Westamerica Bancorporation (NASDAQ:WABC) provides banking services to individuals and small businesses throughout Northern and Central California.

Sales Growth

From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions. Regrettably, Westamerica Bancorporation’s revenue grew at a sluggish 4% compounded annual growth rate over the last five years. This fell short of our benchmark for the banking sector and is a rough starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Westamerica Bancorporation’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 10.7% annually.

This quarter, Westamerica Bancorporation’s revenue fell by 9.1% year on year to $63.55 million but beat Wall Street’s estimates by 2.7%.

Net interest income made up 83.2% of the company’s total revenue during the last five years, meaning Westamerica Bancorporation barely relies on non-interest income to drive its overall growth.

Net interest income commands greater market attention due to its reliability and consistency, whereas non-interest income is often seen as lower-quality revenue that lacks the same dependable characteristics.

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Key Takeaways from Westamerica Bancorporation’s Q4 Results

We enjoyed seeing Westamerica Bancorporation beat analysts’ net interest income expectations this quarter. We were also glad its revenue outperformed Wall Street’s estimates. Overall, we think this was a decent quarter with some key metrics above expectations. The stock remained flat at $50.92 immediately after reporting.

So do we think Westamerica Bancorporation is an attractive buy at the current price? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).