Westamerica profit dips to $27.4M as margin pressure weighs on regional lenders

Westamerica Bancorporation (NASDAQ:WABC) announced its financial results for the first quarter ended March 31, 2026, today, reporting net income of $27.4 million, or $1.13 per diluted common share.

The results represent a slight decrease from the previous quarter, as the bank navigates a persistent high-interest-rate environment that has continued to pressure net interest margins across the regional banking sector.

The company generated net interest income on a fully taxable equivalent (FTE) basis of $52.7 million.

Despite the industry-wide trend of rising deposit costs, Westamerica maintained a remarkably low cost of funds at 0.24%, highlighting the value of its granular, low-cost deposit base in its Northern and Central California markets.

Return on average common equity for the quarter was 11%.

Balance sheet activity showed a modest contraction, with both loans and deposits declining slightly during the first three months of the year.

However, credit quality remained a bright spot for the institution.

Nonperforming assets were just $1.4 million as of March 31, 2026, representing a fraction of the total portfolio.

The allowance for credit losses stood at $11.2 million, providing ample coverage for the current lending environment.