Earnings analysis · 10-Q
WABC earnings analysis
Filed May 8, 2026 · Our reading of the company's report
The latest report
Westamerica Bancorporation's Q1 2026 results show a slight decline in revenues compared to the prior year and quarter, with total revenue at $62.3 million, down from $70 million in Q1 2025 and $67 million in Q4 2025.…
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Westamerica Bancorporation's Q1 2026 results show a slight decline in revenues compared to the prior year and quarter, with total revenue at $62.3 million, down from $70 million in Q1 2025 and $67 million in Q4 2025. Earnings per share increased slightly to $1.13 from $1.12 in the previous quarter, reflecting a modest EPS surprise of 5.6%. Management continues to face challenges from lower net interest income and noninterest income, while controlling expenses and maintaining a strong capital position.
Reported figures
- Earnings per share
- $1.13
- Gross margin
- 92.9%
What stood out
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Revenue Surpassed Expectations
Q1 2026 revenue was $62.3 million, above the consensus estimate of $60.7 million.
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Gross Margin Stability
Gross margin for Q1 2026 remained strong at 92.9%, consistent with the previous period.
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Earnings per Share Increase
Diluted EPS for Q1 2026 was $1.13, up from $1.12 in Q4 2025.
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Net Income Comparable to Prior Year
Net income for the first quarter was $27.4 million, not far from $27.8 million in Q4 2025.
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Higher Capital Ratios Maintained
Total capital ratio stood at 22.11% as of March 31, 2026, exceeding regulatory requirements.
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Strong Shareholder Returns
Dividends paid per common share increased to $0.46, consistent with prior periods.
What to watch
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Decline in Noninterest Income
Noninterest income fell to $9.6 million, down from $10 million in Q1 2025 due to lower debit card fees.
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Increased Noninterest Expenses
Total noninterest expenses rose to $25.9 million, up from $25.5 million in Q4 2025.
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Decrease in Loan Balances
Loans decreased to $696 million from $727 million in Q1 2025, impacting interest income.
Management's outlook
Management has not provided specific numerical guidance for future earnings or revenue, citing market uncertainties.
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.