Westamerica Bancorporation Reports Third Quarter 2025 Financial Results

Rhea-AI Summary

Westamerica Bancorporation (Nasdaq: WABC) reported Q3 2025 net income $28.3M and diluted EPS $1.12, essentially flat vs Q2'25 EPS. The company recorded no provision for credit losses, nonperforming assets of $2.6M and an allowance for credit losses on loans of $11.9M. Net interest income (FTE) was $53.8M and net interest margin was 3.80%. Westamerica paid a $0.46 per-share quarterly dividend and retired 488,000 common shares in Q3'25. Efficiency ratio (FTE) was 40.3% and return on common equity was 10.9% (annualized).

Positive

• Q3 net income of $28.3M
• No provision for credit losses in Q3'25
• Repurchased and retired 488,000 common shares
• Quarterly dividend of $0.46 per share
• Low funding cost: 0.26% annualized

Negative

• Net income down 19.4% YoY
• Net interest and loan fee income down 13.8% YoY
• Total loans down 10.5% YoY
• Net interest margin declined to 3.80% from 4.08% QoQ

Insights

Bank financial analyst

Q3 2025 shows stable operating efficiency but weaker earnings versus prior year; capital, dividends and buybacks remain supportive.

Net income of $28.3 million and diluted EPS of $1.12 matched the prior quarter EPS but fell versus year‑ago levels; year‑to‑date net income is $88.4 million, down 17.4%. The bank reported a low cost of funds at 0.26%, an efficiency ratio near 40.3%, no provision for credit losses this quarter, and nonperforming assets of $2.6 million, which together support near‑term stability.

Key dependencies include loan mix and asset yields: average earning assets and total loans declined versus prior periods, and net interest margin eased to 3.80% (FTE). Watch the drivers of loan volumes, securities balances, and cost of funds over the next one to four quarters; upcoming quarterly filings and regulatory capital disclosures through Q4 2025 will show whether earnings recovery or margin stabilization occurs.

SAN RAFAEL, Calif., Oct. 16, 2025 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the third quarter 2025 of $28.3 million and diluted earnings per common share ("EPS") of $1.12. Third quarter 2025 results compare to second quarter 2025 net income of $29.1 million and EPS of $1.12.

"Westamerica’s third quarter 2025 results benefited from the Company’s low-cost operating principles. The annualized cost of funding interest-earning loans, bonds and cash was 0.26 percent for the third quarter 2025. The Company recognized no provision for credit losses in the third quarter 2025. At September 30, 2025, nonperforming assets were $2.6 million and the allowance for credit losses on loans was $11.9 million. Westamerica operated efficiently, spending 40 percent of its revenue on operating costs in the third quarter 2025,” said Chairman, President and CEO David Payne. “Third quarter 2025 results generated an annualized 10.9 percent return on average common equity. Westamerica paid a $0.46 per common share dividend during the third quarter 2025, and retired 488 thousand common shares using its share repurchase plan. Westamerica’s capital ratios remain at historically high levels exceeding the highest regulatory guidelines,” concluded Payne.

Net interest income on a fully-taxable equivalent (FTE) basis was $53.8 million for the third quarter 2025, compared to $54.6 million for the second quarter 2025. The annualized yield earned on loans, bonds and cash for the third quarter 2025 was 4.06 percent compared to 4.07 percent for the second quarter 2025. The annualized cost of funding interest-earning loans, bonds and cash was 0.26 percent for the third quarter 2025 compared to 0.22 percent for the second quarter 2025.

Noninterest income for the third quarter 2025 totaled $10.2 million compared to $10.3 million for the second quarter 2025.

Noninterest expense was $25.8 million for the third quarter 2025 compared to $25.5 million for the second quarter 2025. The increase in noninterest expense is primarily due to higher salaries and benefits expense due to one more business day in the third quarter 2025 compared to the second quarter 2025, higher occupancy and equipment expense and professional fees.

The income tax provision (FTE) for the third quarter 2025 was $10.0 million compared to $10.3 million for the second quarter 2025.

Westamerica Bancorporation’s wholly owned subsidiary Westamerica Bank, operates commercial banking and trust offices throughout Northern and Central California.

Westamerica Bancorporation Web Address: www.westamerica.com

For additional information contact:
Westamerica Bancorporation
1108 Fifth Avenue, San Rafael, CA 94901
Anela Jonas – Investor Relations Contact
707-863-6019
investments@westamerica.com

FORWARD-LOOKING INFORMATION:

The following appears in accordance with the Private Securities Litigation Reform Act of 1995:

This press release may contain forward-looking statements about the Company, including descriptions of plans or objectives of its management for future operations, products or services, and forecasts of its revenues, earnings or other measures of economic performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may."

Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors — many of which are beyond the Company's control — could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. The Company's most recent reports filed with the Securities and Exchange Commission, including the annual report for the year ended December 31, 2024 filed on Form 10-K and quarterly report for the quarter ended June 30, 2025 filed on Form 10-Q, describe some of these factors, including certain credit, interest rate, operational, liquidity and market risks associated with the Company's business and operations. Other factors described in these reports include changes in business and economic conditions, competition, fiscal and monetary policies, disintermediation, cyber security risks, legislation including the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the Sarbanes-Oxley Act of 2002 and the Gramm-Leach-Bliley Act of 1999, and mergers and acquisitions.

Forward-looking statements speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date forward looking statements are made.

		Public Information October 16, 2025
WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
September 30, 2025
1. Net Income Summary.
		(in thousands except per-share amounts)
								%
		Q3'2025			Q3'2024			Change		Q2'2025
	Net Interest and Loan Fee
	Income (FTE)	$53,846			$62,465			-13.8	%	$54,562
	Provision
	for Credit Losses		-			-		n/m			-
	Noninterest Income		10,151			11,925		-14.9	%		10,315
	Noninterest Expense		25,800			26,309		-1.9	%		25,529
	Income Before Taxes (FTE)		38,197			48,081		-20.6	%		39,348
	Income Tax Provision (FTE)		9,934			13,024		-23.7	%		10,282
	Net Income	$28,263			$35,057			-19.4	%	$29,066
	Average Common Shares
	Outstanding		25,341			26,685		-5.0	%		25,889
	Diluted Average Common
	Shares Outstanding		25,341			26,686		-5.0	%		25,889
	Operating Ratios:
	Basic Earnings Per Common
	Share	$1.12			$1.31			-14.5	%	$1.12
	Diluted Earnings Per
	Common Share		1.12			1.31		-14.5	%		1.12
	Return On Assets (a)		1.86	%		2.16	%				1.93	%
	Return On Common
	Equity (a)		10.9	%		13.7	%				11.2	%
	Net Interest Margin (FTE) (a)		3.80	%		4.08	%				3.85	%
	Efficiency Ratio (FTE)		40.3	%		35.4	%				39.3	%
	Dividends Paid Per Common
	Share	$0.46			$0.44			4.5	%	$0.46
	Common Dividend Payout
	Ratio		41	%		33	%				41	%
								%
		9/30'25YTD			9/30'24YTD			Change
	Net Interest and Loan Fee
	Income (FTE)	$164,798			$192,659			-14.5	%
	(Reversal of) Provision
	for Credit Losses		(550	)		300		n/m
	Noninterest Income		30,787			32,522		-5.3	%
	Noninterest Expense		76,456			78,538		-2.7	%
	Income Before Taxes (FTE)		119,679			146,343		-18.2	%
	Income Tax Provision (FTE)		31,313			39,407		-20.5	%
	Net Income	$88,366			$106,936			-17.4	%
	Average Common Shares
	Outstanding		25,953			26,680		-2.7	%
	Diluted Average Common
	Shares Outstanding		25,953			26,681		-2.7	%
	Operating Ratios:
	Basic Earnings Per Common
	Share	$3.40			$4.01			-15.2	%
	Diluted Earnings Per
	Common Share		3.40			4.01		-15.2	%
	Return On Assets (a)		1.94	%		2.19	%
	Return On Common
	Equity (a)		11.4	%		14.4	%
	Net Interest Margin (FTE) (a)		3.85	%		4.18	%
	Efficiency Ratio (FTE)		39.1	%		34.9	%
	Dividends Paid Per Common
	Share	$1.36			$1.32			3.0	%
	Common Dividend Payout
	Ratio		40	%		33	%
2. Net Interest Income.
		(dollars in thousands)
								%
		Q3'2025			Q3'2024			Change		Q2'2025
	Interest and Loan Fee
	Income (FTE)	$57,491			$68,110			-15.6	%	$57,751
	Interest Expense		3,645			5,645		-35.4	%		3,189
	Net Interest and Loan Fee
	Income (FTE)	$53,846			$62,465			-13.8	%	$54,562
	Average Earning Assets	$5,621,797			$6,062,174			-7.3	%	$5,652,443
	Average Interest-Bearing
	Liabilities		2,724,510			2,950,093		-7.6	%		2,693,505
	Yield on Earning Assets
	(FTE) (a)		4.06	%		4.45	%				4.07	%
	Cost of Funds (a)		0.26	%		0.37	%				0.22	%
	Net Interest Margin (FTE) (a)		3.80	%		4.08	%				3.85	%
	Interest Expense /
	Interest-Bearing
	Liabilities (a)		0.53	%		0.76	%				0.48	%
	Net Interest Spread (FTE) (a)		3.53	%		3.69	%				3.59	%
								%
		9/30'25YTD			9/30'24YTD			Change
	Interest and Loan Fee
	Income (FTE)	$175,028			$206,612			-15.3	%
	Interest Expense		10,230			13,953		-26.7	%
	Net Interest and Loan Fee
	Income (FTE)	$164,798			$192,659			-14.5	%
	Average Earning Assets	$5,689,058			$6,108,885			-6.9	%
	Average Interest-Bearing
	Liabilities		2,729,204			2,969,078		-8.1	%
	Yield on Earning Assets
	(FTE) (a)		4.09	%		4.48	%
	Cost of Funds (a)		0.24	%		0.30	%
	Net Interest Margin (FTE) (a)		3.85	%		4.18	%
	Interest Expense /
	Interest-Bearing
	Liabilities (a)		0.50	%		0.63	%
	Net Interest Spread (FTE) (a)		3.59	%		3.85	%
3. Loans & Other Earning Assets.
		(average volume, dollars in thousands)
								%
		Q3'2025			Q3'2024			Change		Q2'2025
	Total Assets	$6,018,937			$6,461,843			-6.9	%	$6,042,100
	Total Earning Assets		5,621,797			6,062,174		-7.3	%		5,652,443
	Total Loans		744,046			831,418		-10.5	%		762,216
	Commercial Loans		113,215			136,160		-16.9	%		115,943
	Commercial Real Estate
	Loans		486,751			493,272		-1.3	%		488,960
	Consumer Loans		144,080			201,986		-28.7	%		157,313
	Total Investment Securities		4,175,230			4,736,024		-11.8	%		4,236,303
	Debt Securities Available for
	Sale		3,331,315			3,867,451		-13.9	%		3,385,972
	Debt Securities Held to
	Maturity		829,341			854,346		-2.9	%		836,104
	Equity Securities		14,574			14,227		2.4	%		14,227
	Total Interest-Bearing Cash		702,521			494,732		42.0	%		653,924
	Loans / Deposits		15.5	%		16.3	%				15.7	%
								%
		9/30'25YTD			9/30'24YTD			Change
	Total Assets	$6,082,169			$6,512,138			-6.6	%
	Total Earning Assets		5,689,058			6,108,885		-6.9	%
	Total Loans		765,231			840,961		-9.0	%
	Commercial Loans		116,423			134,402		-13.4	%
	Commercial Real Estate
	Loans		490,991			489,836		0.2	%
	Consumer Loans		157,817			216,723		-27.2	%
	Total Investment Securities		4,268,226			4,925,557		-13.3	%
	Debt Securities Available for
	Sale		3,418,176			4,047,131		-15.5	%
	Debt Securities Held to
	Maturity		835,706			864,199		-3.3	%
	Equity Securities		14,344			14,227		0.8	%
	Total Interest-Bearing Cash		655,601			342,367		91.5	%
	Loans / Deposits		15.7	%		16.1	%
4. Deposits, Other Interest-Bearing Liabilities & Equity.
		(average volume, dollars in thousands)
								%
		Q3'2025			Q3'2024			Change		Q2'2025
	Total Deposits	$4,806,568			$5,092,244			-5.6	%	$4,841,803
	Noninterest Demand		2,201,644			2,425,646		-9.2	%		2,245,077
	Interest-Bearing Transaction		895,504			937,694		-4.5	%		908,367
	Savings		1,636,259			1,639,997		-0.2	%		1,611,845
	Time greater than $100K		25,671			32,815		-21.8	%		27,306
	Time less than $100K		47,490			56,092		-15.3	%		49,208
	Total Short-Term Borrowings		119,586			283,495		-57.8	%		96,779
	Bank Term Funding Program
	Borrowings		-			167,391		n/m			-
	Securities Sold under
	Repurchase Agreements		119,586			116,104		3.0	%		96,779
	Shareholders' Equity		1,026,618			1,016,642		1.0	%		1,037,185
	Demand Deposits /
	Total Deposits		45.8	%		47.6	%				46.4	%
	Transaction & Savings
	Deposits / Total Deposits		98.5	%		98.3	%				98.4	%
								%
		9/30'25YTD			9/30'24YTD			Change
	Total Deposits	$4,868,418			$5,224,158			-6.8	%
	Noninterest Demand		2,246,259			2,480,815		-9.5	%
	Interest-Bearing Transaction		912,830			992,363		-8.0	%
	Savings		1,632,529			1,658,106		-1.5	%
	Time greater than $100K		27,465			34,550		-20.5	%
	Time less than $100K		49,335			58,324		-15.4	%
	Total Short-Term Borrowings		107,045			225,735		-52.6	%
	Bank Term Funding Program
	Borrowings		-			143,412		n/m
	Securities Sold under
	Repurchase Agreements		107,045			82,323		30.0	%
	Shareholders' Equity		1,039,802			991,229		4.9	%
	Demand Deposits /
	Total Deposits		46.1	%		47.5	%
	Transaction & Savings
	Deposits / Total Deposits		98.4	%		98.2	%
5. Interest Yields Earned & Rates Paid.
		(dollars in thousands)
		Q3'2025
		Average			Income/			Yield (a) /
		Volume			Expense			Rate (a)
	Interest & Loan Fee Income Earned:
	Total Earning Assets (FTE)	$5,621,797			$57,491			4.06	%
	Total Loans (FTE)		744,046			10,321		5.51	%
	Commercial Loans (FTE)		113,215			1,713		6.01	%
	Commercial Real Estate
	Loans		486,751			6,438		5.25	%
	Consumer Loans		144,080			2,170		5.98	%
	Total Investment Securities (FTE)		4,175,230			39,330		3.75	%
	Total Debt Securities
	Available for Sale (FTE)		3,331,315			30,449		3.63	%
	Corporate Securities		1,919,304			12,784		2.66	%
	Collateralized Loan
	Obligations		658,786			10,505		6.24	%
	Agency Mortgage Backed
	Securities		384,703			3,945		4.10	%
	Securities of U.S.
	Government Sponsored
	Entities		312,563			2,777		3.55	%
	Obligations of States and
	Political Subdivisions
	(FTE)		55,959			438		3.13	%
	Total Debt Securities Held to
	Maturity (FTE)		829,341			8,446		4.07	%
	Agency Mortgage Backed
	Securities		48,296			264		2.19	%
	Corporate Securities		739,492			7,815		4.23	%
	Obligations of States and
	Political Subdivisions
	(FTE)		41,553			367		3.53	%
	Equity Securities (FTE)		14,574			435		11.92	%
	Total Interest-Bearing Cash		702,521			7,840		4.37	%
	Interest Expense Paid:
	Total Earning Assets		5,621,797			3,645		0.26	%
	Total Interest-Bearing
	Liabilities		2,724,510			3,645		0.53	%
	Total Interest-Bearing
	Deposits		2,604,924			3,453		0.53	%
	Interest-Bearing Transaction		895,504			45		0.02	%
	Savings		1,636,259			3,361		0.81	%
	Time less than $100K		47,490			35		0.29	%
	Time greater than $100K		25,671			12		0.19	%
	Total Short-Term Borrowings		119,586			192		0.64	%
	Securities Sold under
	Repurchase Agreements		119,586			192		0.64	%
	Net Interest Income and
	Margin (FTE)				$53,846			3.80	%
		Q3'2024
		Average			Income/			Yield (a) /
		Volume			Expense			Rate (a)
	Interest & Loan Fee Income Earned:
	Total Earning Assets (FTE)	$6,062,174			$68,110			4.45	%
	Total Loans (FTE)		831,418			11,526		5.52	%
	Commercial Loans (FTE)		136,160			2,393		7.00	%
	Commercial Real Estate
	Loans		493,272			6,308		5.09	%
	Consumer Loans		201,986			2,825		5.57	%
	Total Investment Securities (FTE)		4,736,024			49,822		4.17	%
	Total Debt Securities
	Available for Sale (FTE)		3,867,451			40,722		4.16	%
	Corporate Securities		2,074,145			14,268		2.75	%
	Collateralized Loan
	Obligations		1,166,189			21,459		7.20	%
	Agency Mortgage Backed
	Securities		244,994			1,638		2.68	%
	Securities of U.S.
	Government sponsored
	entities		310,138			2,777		3.58	%
	Obligations of States and
	Political Subdivisions
	(FTE)		67,141			518		3.08	%
	U.S. Treasury Securities		4,844			62		5.13	%
	Total Debt Securities Held to
	Maturity (FTE)		854,346			8,689		4.07	%
	Agency Mortgage Backed
	Securities		65,545			376		2.29	%
	Corporate Securities		732,689			7,815		4.27	%
	Obligations of States and
	Political Subdivisions
	(FTE)		56,112			498		3.55	%
	Equity Securities		14,227			411		11.55	%
	Total Interest-Bearing Cash		494,732			6,762		5.35	%
	Interest Expense Paid:
	Total Earning Assets		6,062,174			5,645		0.37	%
	Total Interest-Bearing
	Liabilities		2,950,093			5,645		0.76	%
	Total Interest-Bearing
	Deposits		2,666,598			3,113		0.46	%
	Interest-Bearing Transaction		937,694			47		0.02	%
	Savings		1,639,997			2,990		0.73	%
	Time less than $100K		56,092			46		0.33	%
	Time greater than $100K		32,815			30		0.36	%
	Total Short-Term Borrowings		283,495			2,532		3.54	%
	Bank Term Funding Program
	Borrowings		167,391			2,278		5.40	%
	Securities Sold under
	Repurchase Agreements		116,104			254		0.87	%
	Net Interest Income and
	Margin (FTE)				$62,465			4.08	%
6. Noninterest Income.
		(dollars in thousands except per-share amounts)
								%
		Q3'2025			Q3'2024			Change		Q2'2025
	Service Charges on Deposit
	Accounts	$3,317			$3,585			-7.5	%	$3,368
	Merchant Processing
	Services		2,860			2,474		15.6	%		2,687
	Debit Card Fees		1,603			1,702		-5.8	%		1,664
	Trust Fees		895			846		5.8	%		867
	ATM Processing Fees		483			533		-9.4	%		482
	Other Service Fees		448			454		-1.3	%		450
	Bank Owned
	Life Insurance Gains		-			202		n/m			106
	Unrealized Losses on
	Equity Securities		(90	)		-		n/m			-
	Other Noninterest Income		635			2,129		-70.2	%		691
	Total Noninterest Income	$10,151			$11,925			-14.9	%	$10,315
	Operating Ratios:
	Total Revenue (FTE)	$63,997			$74,390			-14.0	%	$64,877
	Noninterest Income /
	Revenue (FTE)		15.9	%		16.0	%				15.9	%
	Service Charges /
	Avg. Deposits (a)		0.27	%		0.28	%				0.28	%
	Total Revenue (FTE) Per
	Avg. Common Share (a)	$10.02			$11.09			-9.7	%	$10.05
								%
		9/30'25YTD			9/30'24YTD			Change
	Service Charges on Deposit
	Accounts	$10,066			$10,524			-4.4	%
	Merchant Processing
	Services		8,280			7,714		7.3	%
	Debit Card Fees		4,848			4,951		-2.1	%
	Trust Fees		2,661			2,451		8.6	%
	ATM Processing Fees		1,428			1,664		-14.2	%
	Other Service Fees		1,327			1,342		-1.1	%
	Bank Owned
	Life Insurance Gains		208			202		n/m
	Unrealized Losses on
	Equity Securities		(90	)		-		n/m
	Other Noninterest Income		2,059			3,674		-44.0	%
	Total Noninterest Income	$30,787			$32,522			-5.3	%
	Operating Ratios:
	Total Revenue (FTE)	$195,585			$225,181			-13.1	%
	Noninterest Income /
	Revenue (FTE)		15.7	%		14.4	%
	Service Charges /
	Avg. Deposits (a)		0.28	%		0.27	%
	Total Revenue (FTE) Per
	Avg. Common Share (a)	$10.08			$11.27			-10.6	%
7. Noninterest Expense.
		(dollars in thousands)
								%
		Q3'2025			Q3'2024			Change		Q2'2025
	Salaries and Related Benefits	$12,387			$12,762			-2.9	%	$12,303
	Occupancy and Equipment		5,253			5,256		-0.1	%		5,154
	Outsourced Data Processing		2,722			2,614		4.1	%		2,709
	Limited Partnership
	Operating Losses		915			1,210		-24.4	%		915
	Professional Fees		643			337		90.8	%		386
	Courier Service		738			682		8.2	%		687
	Other Noninterest Expense		3,142			3,448		-8.9	%		3,375
	Total Noninterest Expense	$25,800			$26,309			-1.9	%	$25,529
	Operating Ratios:
	Noninterest Expense /
	Avg. Earning Assets (a)		1.82	%		1.73	%				1.81	%
	Noninterest Expense /
	Revenues (FTE)		40.3	%		35.4	%				39.3	%
								%
		9/30'25YTD			9/30'24YTD			Change
	Salaries and Related Benefits	$36,816			$37,831			-2.7	%
	Occupancy and Equipment		15,445			15,454		-0.1	%
	Outsourced Data Processing		8,128			7,661		6.1	%
	Limited Partnership
	Operating Losses		2,745			4,090		-32.9	%
	Professional Fees		1,424			1,101		29.3	%
	Courier Service		2,113			2,017		4.8	%
	Other Noninterest Expense		9,785			10,384		-5.8	%
	Total Noninterest Expense	$76,456			$78,538			-2.7	%
	Operating Ratios:
	Noninterest Expense /
	Avg. Earning Assets (a)		1.80	%		1.72	%
	Noninterest Expense /
	Revenues (FTE)		39.1	%		34.9	%
8. Allowance for Credit Losses.
		(dollars in thousands)
								%
		Q3'2025			Q3'2024			Change		Q2'2025
	Average Total Loans	$744,046			$831,418			-10.5	%	$762,216
	Beginning of Period
	Allowance for Credit
	Losses on Loans (ACLL)	$13,787			$15,952			-13.6	%	$13,914
	Provision for
	Credit Losses		-			-		n/m			-
	Net ACLL Losses		(1,928	)		(634	)	n/m			(127	)
	End of Period ACLL	$11,859			$15,318			-22.6	%	$13,787
	Gross ACLL Recoveries /
	Gross ACLL Losses		22	%		62	%				87	%
	Net ACLL Losses /
	Avg. Total Loans (a)		-1.03	%		-0.30	%				-0.07	%
								%
		9/30'25YTD			9/30'24YTD			Change
	Average Total Loans	$765,231			$840,961			-9.0	%
	Beginning of Period ACLL	$14,780			$16,867			-12.4	%
	(Reversal of) Provision for
	Credit Losses		(550	)		300		n/m
	Net ACLL Losses		(2,371	)		(1,849	)	n/m
	End of Period ACLL	$11,859			$15,318			-22.6	%
	Gross ACLL Recoveries /
	Gross ACLL Losses		54	%		64	%
	Net ACLL Losses /
	Avg. Total Loans (a)		-0.41	%		-0.29	%
		(dollars in thousands)
								%
		9/30/25			9/30/24			Change		6/30/25
	Allowance for Credit Losses
	on Loans	$11,859			$15,318			-22.6	%	$13,787
	Allowance for Credit Losses
	on Held to Maturity
	Securities		1			1		0.0	%		1
	Total Allowance for Credit
	Losses	$11,860			$15,319			-22.6	%	$13,788
	Allowance for Unfunded
	Credit Commitments	$201			$201			0.0	%	$201
9. Credit Quality.
		(dollars in thousands)
								%
		9/30/25			9/30/24			Change		6/30/25
	Nonperforming Loans:
	Nonperforming Nonaccrual
	Loans	$1,619			$252			542.5	%	$ -
	Performing Nonaccrual
	Loans		728			-		n/m			4,553
	Total Nonaccrual Loans		2,347			252		831.3	%		4,553
	Accruing Loans 90+ Days
	Past Due		297			667		-55.5	%		411
	Total Nonperforming Loans	$2,644			$919			187.7	%	$4,964
	Total Loans Outstanding	$741,579			$833,967			-11.1	%	$748,264
	Total Assets		5,914,438			6,161,143		-4.0	%		5,825,069
	Loans:
	Allowance for Credit Losses
	on Loans	$11,859			$15,318			-22.6	%	$13,787
	Allowance for Credit Losses
	on Loans / Loans		1.60	%		1.84	%				1.84	%
	Nonperforming Loans /
	Total Loans		0.36	%		0.11	%				0.66	%
10. Liquidity.
At September 30, 2025, the Company had $659,268 thousand in cash balances. During the twelve months ending September 30, 2026, the Company expects to receive $338,000 thousand in principal payments from its debt securities. If additional operational liquidity is required, the Company can pledge debt securities as collateral for borrowing purposes; at September 30, 2025, the Company’s debt securities which qualify as collateral for borrowing totaled $3,752,853 thousand. In the ordinary course of business, the Company pledges debt securities as collateral for certain depository customers; at September 30, 2025, the Company had pledged $713,200 thousand in debt securities for depository customers. In the ordinary course of business, the Company pledges debt securities as collateral for borrowing from the Federal Reserve Bank; at September 30, 2025, the Company had pledged $647,776 thousand in debt securities at the Federal Reserve Bank. During the nine months ended September 30, 2025, the Company’s average borrowings from the Federal Reserve Bank and correspondent banks were $-0- thousand and $-0- thousand, respectively, and at September 30, 2025, the Company had no borrowings from the Federal Reserve Bank or other correspondent banks. At September 30, 2025, the Company had access to borrowing from the Federal Reserve up to $647,776 thousand based on collateral pledged at September 30, 2025. At September 30, 2025, the Company’s estimated unpledged collateral qualifying debt securities totaled $1,970,022 thousand. Debt securities eligible as collateral are shown at market value.
										(in thousands)
										9/30/25
	Debt Securities Eligible as
	Collateral:
	Corporate Securities									$2,531,359
	Collateralized Loan
	Obligations rated AAA										190,368
	Obligations of States and
	Political Subdivisions										91,351
	Agency Mortgage Backed
	Securities										634,583
	Securities of U.S. Government
	Sponsored Entities										305,192
	Total Debt Securities Eligible
	as Collateral									$3,752,853
	Debt Securities Pledged
	as Collateral:
	Debt Securities Pledged
	at the Federal Reserve Bank									($647,776		)
	Deposits by Public Entities										(713,200	)
	Securities Sold under
	Repurchase Agreements										(415,475	)
	Other										(6,380	)
	Total Debt Securities Pledged
	as Collateral									($1,782,831		)
	Estimated Debt Securities
	Available to Pledge									$1,970,022
11. Capital.
		(in thousands, except per-share amounts)
								%
		9/30/25			9/30/24			Change		6/30/25
	Shareholders' Equity	$931,646			$909,040			2.5	%	$921,783
	Total Assets		5,914,438			6,161,143		-4.0	%		5,825,069
	Shareholders' Equity/
	Total Assets		15.75	%		14.75	%				15.82	%
	Shareholders' Equity/
	Total Loans		125.63	%		109.00	%				123.19	%
	Tangible Common Equity
	Ratio		13.98	%		13.03	%				14.03	%
	Common Shares Outstanding		25,107			26,686		-5.9	%		25,587
	Common Equity Per Share	$37.11			$34.06			8.9	%	$36.03
	Market Value Per Common
	Share		49.99			49.42		1.2	%		48.44
		(shares in thousands)
								%
		Q3'2025			Q3'2024			Change		Q2'2025
	Share Retirements (Issuances):
	Total Shares Retired		488			-		n/m			773
	Average Retirement Price	$48.96			$ -			n/m		$49.61
	Net Shares Retired (Issued)		480			(3	)	n/m			773
								%
		9/30'25YTD			9/30'24YTD			Change
	Total Shares Retired		1,622			4		n/m
	Average Retirement Price	$49.60			$45.58			n/m
	Net Shares Retired (Issued)		1,601			(15	)	n/m
12. Period-End Balance Sheets.
		(unaudited, dollars in thousands)
								%
		9/30/25			9/30/24			Change		6/30/25
	Assets:
	Cash and Due from Banks	$659,268			$502,945			31.1	%	$626,437
	Debt Securities Available for
	Sale:
	Corporate Securities		1,797,562			1,901,617		-5.5	%		1,792,021
	Collateralized Loan
	Obligations		561,063			1,078,920		-48.0	%		780,147
	Agency Mortgage Backed
	Securities		589,654			227,565		159.1	%		291,543
	Securities of U.S.
	Government Sponsored
	Entities		305,192			303,609		0.5	%		301,903
	Obligations of States and
	Political Subdivisions		51,853			63,876		-18.8	%		60,835
	U.S. Treasury Securities		-			4,899		n/m			-
	Total Debt Securities
	Available for Sale		3,305,324			3,580,486		-7.7	%		3,226,449
	Debt Securities Held to
	Maturity:
	Agency Mortgage Backed
	Securities		46,433			62,745		-26.0	%		49,878
	Corporate Securities		740,545			733,748		0.9	%		738,846
	Obligations of States and
	Political Subdivisions (1)		39,527			53,768		-26.5	%		45,715
	Total Debt Securities
	Held to Maturity (1)		826,505			850,261		-2.8	%		834,439
	Loans		741,579			833,967		-11.1	%		748,264
	Allowance For Credit Losses
	on Loans		(11,859	)		(15,318	)	-22.6	%		(13,787	)
	Total Loans, net		729,720			818,649		-10.9	%		734,477
	Premises and Equipment, net		25,874			26,129		-1.0	%		25,850
	Identifiable Intangibles, net		-			178		n/m			19
	Goodwill		121,673			121,673		0.0	%		121,673
	Other Assets		246,074			260,822		-5.7	%		255,725
	Total Assets	$5,914,438			$6,161,143			-4.0	%	$5,825,069
	Liabilities and Shareholders'
	Equity:
	Deposits:
	Noninterest-Bearing	$2,214,100			$2,375,958			-6.8	%	$2,175,841
	Interest-Bearing Transaction		881,367			925,455		-4.8	%		894,774
	Savings		1,626,474			1,677,332		-3.0	%		1,603,974
	Time		71,238			86,305		-17.5	%		72,946
	Total Deposits		4,793,179			5,065,050		-5.4	%		4,747,535
	Securities Sold under
	Repurchase Agreements		133,651			132,487		0.9	%		101,210
	Total Short-Term
	Borrowed Funds		133,651			132,487		0.9	%		101,210
	Other Liabilities		55,962			54,566		2.6	%		54,541
	Total Liabilities		4,982,792			5,252,103		-5.1	%		4,903,286
	Shareholders' Equity:
	Common Equity:
	Paid-In Capital		448,600			475,096		-5.6	%		456,964
	Accumulated Other
	Comprehensive Loss		(99,913	)		(127,653	)	-21.7	%		(116,747	)
	Retained Earnings		582,959			561,597		3.8	%		581,566
	Total Shareholders' Equity		931,646			909,040		2.5	%		921,783
	Total Liabilities and
	Shareholders' Equity	$5,914,438			$6,161,143			-4.0	%	$5,825,069
13. Income Statements.
		(unaudited, in thousands except per-share amounts)
								%
		Q3'2025			Q3'2024			Change		Q2'2025
	Interest and Loan Fee Income:
	Loans	$10,257			$11,441			-10.3	%	$10,523
	Equity Securities		409			388		5.4	%		408
	Debt Securities Available
	for Sale		30,358			40,616		-25.3	%		30,815
	Debt Securities Held to
	Maturity		8,370			8,587		-2.5	%		8,448
	Interest-Bearing Cash		7,840			6,762		15.9	%		7,273
	Total Interest and Loan
	Fee Income		57,234			67,794		-15.6	%		57,467
	Interest Expense:
	Transaction Deposits		45			47		-4.3	%		44
	Savings Deposits		3,361			2,990		12.4	%		2,950
	Time Deposits		47			76		-38.2	%		51
	Bank Term Funding Program
	Borrowings		-			2,278		n/m			-
	Securities Sold under
	Repurchase Agreements		192			254		-24.5	%		144
	Total Interest Expense		3,645			5,645		-35.4	%		3,189
	Net Interest and Loan
	Fee Income		53,589			62,149		-13.8	%		54,278
	Provision for
	Credit Losses		-			-		n/m			-
	Noninterest Income:
	Service Charges on Deposit
	Accounts		3,317			3,585		-7.5	%		3,368
	Merchant Processing
	Services		2,860			2,474		15.6	%		2,687
	Debit Card Fees		1,603			1,702		-5.8	%		1,664
	Trust Fees		895			846		5.8	%		867
	ATM Processing Fees		483			533		-9.4	%		482
	Other Service Fees		448			454		-1.3	%		450
	Bank Owned
	Life Insurance Gains		-			202		n/m			106
	Other Noninterest Income		545			2,129		-74.4	%		691
	Total Noninterest Income		10,151			11,925		-14.9	%		10,315
	Noninterest Expense:
	Salaries and Related Benefits		12,387			12,762		-2.9	%		12,303
	Occupancy and Equipment		5,253			5,256		-0.1	%		5,154
	Outsourced Data Processing		2,722			2,614		4.1	%		2,709
	Limited Partnership
	Operating Losses		915			1,210		-24.4	%		915
	Professional Fees		643			337		90.8	%		386
	Courier Service		738			682		8.2	%		687
	Other Noninterest Expense		3,142			3,448		-8.9	%		3,375
	Total Noninterest Expense		25,800			26,309		-1.9	%		25,529
	Income Before Income Taxes		37,940			47,765		-20.6	%		39,064
	Income Tax Provision		9,677			12,708		-23.9	%		9,998
	Net Income	$28,263			$35,057			-19.4	%	$29,066
	Average Common Shares
	Outstanding		25,341			26,685		-5.0	%		25,889
	Diluted Average Common
	Shares Outstanding		25,341			26,686		-5.0	%		25,889
	Per Common Share Data:
	Basic Earnings	$1.12			$1.31			-14.5	%	$1.12
	Diluted Earnings		1.12			1.31		-14.5	%		1.12
	Dividends Paid		0.46			0.44		4.5	%		0.46
								%
		9/30'25YTD			9/30'24YTD			Change
	Interest and Loan Fee Income:
	Loans	$31,449			$34,119			-7.8	%
	Equity Securities		1,239			1,178		5.2	%
	Debt Securities Available
	for Sale		94,376			130,345		-27.6	%
	Debt Securities Held to
	Maturity		25,312			25,964		-2.5	%
	Interest-Bearing Cash		21,816			14,006		55.8	%
	Total Interest and Loan
	Fee Income		174,192			205,612		-15.3	%
	Interest Expense:
	Transaction Deposits		135			235		-42.6	%
	Savings Deposits		9,439			7,229		30.6	%
	Time Deposits		153			215		-28.8	%
	Bank Term Funding Program
	Borrowings		-			5,813		n/m
	Securities Sold under
	Repurchase Agreements		503			461		9.1	%
	Total Interest Expense		10,230			13,953		-26.7	%
	Net Interest and Loan
	Fee Income		163,962			191,659		-14.5	%
	(Reversal of) Provision
	for Credit Losses		(550	)		300		n/m
	Noninterest Income:
	Service Charges on Deposit		10,066			10,524		-4.4	%
	Accounts
	Merchant Processing
	Services		8,280			7,714		7.3	%
	Debit Card Fees		4,848			4,951		-2.1	%
	Trust Fees		2,661			2,451		8.6	%
	ATM Processing Fees		1,428			1,664		-14.2	%
	Other Service Fees		1,327			1,342		-1.1	%
	Bank Owned
	Life Insurance Gains		208			202		n/m
	Other Noninterest Income		1,969			3,674		-46.4	%
	Total Noninterest Income		30,787			32,522		-5.3	%
	Noninterest Expense:
	Salaries and Related Benefits		36,816			37,831		-2.7	%
	Occupancy and Equipment		15,445			15,454		-0.1	%
	Outsourced Data Processing		8,128			7,661		6.1	%
	Limited Partnership
	Operating Losses		2,745			4,090		-32.9	%
	Professional Fees		1,424			1,101		29.3	%
	Courier Service		2,113			2,017		4.8	%
	Other Noninterest Expense		9,785			10,384		-5.8	%
	Total Noninterest Expense		76,456			78,538		-2.7	%
	Income Before Income Taxes		118,843			145,343		-18.2	%
	Income Tax Provision		30,477			38,407		-20.6	%
	Net Income	$88,366			$106,936			-17.4	%
	Average Common Shares
	Outstanding		25,953			26,680		-2.7	%
	Diluted Average Common
	Shares Outstanding		25,953			26,681		-2.7	%
	Per Common Share Data:
	Basic Earnings	$3.40			$4.01			-15.2	%
	Diluted Earnings		3.40			4.01		-15.2	%
	Dividends Paid		1.36			1.32		3.0	%
	Footnotes and Abbreviations:
	(1) Debt Securities Held To Maturity and Obligations of States and Political Subdivisions are net of related reserve for expected credit losses of $1 thousand at September 30, 2025, June 30, 2025 and September 30, 2024.
	(FTE) Fully Taxable Equivalent. The Company presents its net interest margin and net interest income on a FTE basis using the current statutory federal tax rate. Management believes the FTE basis is valuable to the reader because the Company’s loan and investment securities portfolios contain a portion of municipal loans and securities that are federally tax exempt. The Company’s tax exempt loans and securities composition may not be similar to that of other banks, therefore in order to reflect the impact of the federally tax exempt loans and securities on the net interest margin and net interest income for comparability with other banks, the Company presents its net interest margin and net interest income on a FTE basis.
	(a) Annualized
	Certain amounts in prior periods have been reclassified to conform to the current presentation.

FAQ

What were Westamerica (WABC) Q3 2025 earnings and EPS?

Westamerica reported Q3 2025 net income $28.3M and diluted EPS $1.12.

Did Westamerica (WABC) record any credit loss provision in Q3 2025?

No. Westamerica recognized no provision for credit losses in Q3 2025.

How much did Westamerica (WABC) return to shareholders in Q3 2025?

Westamerica paid a $0.46 per-share dividend and retired 488,000 common shares in Q3 2025.

What happened to Westamerica’s (WABC) loans and net interest income in Q3 2025?

Total loans were down 10.5% YoY and net interest and loan fee income (FTE) fell 13.8% YoY.

What was Westamerica’s (WABC) net interest margin and funding cost in Q3 2025?

Net interest margin (FTE) was 3.80% and the annualized cost of funding was 0.26% in Q3 2025.