Westamerica Bancorporation Reports Third Quarter 2026 Financial Results

Quarterly diluted EPS rose 8.9% year over year as diluted average shares outstanding fell 8.8%.

Rhea-AI Summary

Westamerica Bancorporation (Nasdaq: WABC) reported third-quarter 2026 net income of $28.2 million, increasing from the second quarter but declining year over year. Diluted earnings per share were $1.22, versus $1.17 in the second quarter and $1.12 a year earlier. Net income declined 0.4% year over year.

Net interest income on a fully taxable-equivalent basis, which adjusts for tax-exempt income, was $53.5 million, versus $52.7 million sequentially. Annualized net interest margin rose to 3.81% from 3.77%. Noninterest income reached $10.7 million, partly reflecting a one-time merchant processing termination fee; noninterest expense was $26.2 million.

Average loans fell 11.1% year over year, while average deposits rose 0.2%. No credit-loss provision was recorded. Westamerica retired 51 thousand shares and paid $0.48 per share in dividends. Nine-month net income fell 6.2%, while diluted EPS rose 3.5%.

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0 major · 21 points

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Positive

• Moderate pointThird-quarter diluted EPS rose 8.9% year over year to $1.22, versus $1.17 in the second quarter.
• Moderate pointThird-quarter annualized net interest margin reached 3.81%, versus 3.77% sequentially and 3.80% a year earlier.
• Moderate pointThird-quarter noninterest income rose 5.4% year over year to $10.703 million, versus $10.294 million sequentially.
• Moderate pointThird-quarter annualized return on common equity reached 11.5%, versus 10.9% a year earlier and 11.3% sequentially.
• Moderate pointThird-quarter average deposits increased 0.2% year over year to $4,813.780 million.
• Moderate pointThird-quarter average investment securities increased 11.5% year over year to $4,655.877 million as excess cash was invested.
• Moderate pointThird-quarter credit-loss provision was zero; the loan credit-loss allowance was $10.5 million at September 30, 2026.

8 minor points

• Minor pointMerchant processing income benefited sequentially from a one-time termination fee and increased transaction volumes.
• Minor pointThird-quarter dividends paid increased 4.3% year over year to $0.48 per common share.
• Minor pointShare repurchases retired 51 thousand common shares during the third quarter.
• Minor pointNine-month diluted EPS rose 3.5% year over year to $3.52.
• Minor pointNine-month dividends paid rose 4.4% year over year to $1.42 per common share.
• Minor pointThird-quarter deposit service charges increased 3.6% year over year to $3.436 million.
• Minor pointThird-quarter trust fees increased 15.2% year over year to $1.031 million.
• Minor pointThird-quarter ATM processing fees increased 2.1% year over year to $493 thousand.

Negative

• Moderate pointThird-quarter net income fell 0.4% year over year to $28.152 million, although above $27.385 million sequentially.
• Moderate pointThird-quarter taxable-equivalent net interest income fell 0.6% year over year to $53.522 million, despite sequential growth.
• Moderate pointThird-quarter noninterest expense increased 1.6% year over year to $26.218 million, versus $26.037 million sequentially.
• Moderate pointThird-quarter funding cost rose to 0.26% annualized from 0.24% sequentially; it matched the year-earlier rate.
• Moderate pointThird-quarter efficiency ratio worsened to 40.8% from 40.3% a year earlier, but improved from 41.3% sequentially.
• Moderate pointThird-quarter average loans declined 11.1% year over year to $661.291 million.
• Moderate pointThird-quarter average earning assets declined 0.5% year over year to $5,593.967 million.
• Moderate pointThird-quarter average short-term borrowings rose 19.8% year over year to $143.289 million.
• Moderate pointThird-quarter average shareholders' equity declined 5.1% year over year to $973.799 million.
• Moderate pointNine-month annualized return on assets declined to 1.85% from 1.94% a year earlier.

11 minor points

• Minor pointNonperforming assets totaled $476 thousand at September 30, 2026.
• Minor pointNine-month net income declined 6.2% year over year to $82.892 million.
• Minor pointNine-month taxable-equivalent net interest income declined 3.6% year over year to $158.886 million.
• Minor pointNine-month noninterest income declined 0.6% year over year to $30.604 million.
• Minor pointNine-month noninterest expense increased 2.2% year over year to $78.166 million.
• Minor pointNine-month annualized net interest margin declined to 3.78% from 3.85% a year earlier.
• Minor pointNine-month annualized return on common equity declined to 11.3% from 11.4% a year earlier.
• Minor pointNine-month efficiency ratio worsened to 41.3% from 39.1% a year earlier.
• Minor pointNine-month average deposits declined 1.2% year over year to $4,810.612 million.
• Minor pointThird-quarter debit card fees declined 12.8% year over year to $1.398 million.
• Minor pointThird-quarter other service fees declined 1.6% year over year to $441 thousand.

News Explained

Year over year, diluted EPS rose 8.9%, diluted average shares fell 8.8%, and net income declined 0.4%. The per-share gain therefore coincided with a smaller average share base, rather than higher total earnings.

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SAN RAFAEL, Calif., Oct. 15, 2026 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the third quarter 2026 of $28.2 million and diluted earnings per common share ("EPS") of $1.22. Third quarter 2026 results compare to second quarter 2026 net income of $27.4 million and EPS of $1.17.

"Westamerica’s third quarter 2026 results continued to benefit 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 2026. Excess cash from stable deposit balances was invested in higher interest earning investment securities resulting in an annualized net interest margin of 3.81 percent for the third quarter 2026, a 4 basis point increase when compared to the second quarter 2026. The Company recognized no provision for credit losses in the third quarter 2026. At September 30, 2026, nonperforming assets were $476 thousand and the allowance for credit losses on loans was $10.5 million. Westamerica operated efficiently, spending 41 percent of its revenue on operating costs in the third quarter 2026”, said Chairman, President and CEO David Payne. “Third quarter 2026 results generated an annualized 11.5 percent return on average common equity. Westamerica paid a $0.48 per common share dividend during the third quarter 2026, and retired 51 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 $53.5 million for the third quarter 2026, compared to $52.7 million for the second quarter 2026. The annualized yield earned on loans, bonds and cash for the third quarter 2026 was 4.07 percent compared to 4.01 percent for the second quarter 2026. The annualized cost of funding interest-earning loans, bonds and cash was 0.26 percent for the third quarter 2026 compared to 0.24 percent for the second quarter 2026.

Noninterest income for the third quarter 2026 totaled $10.7 million compared to $10.3 million for the second quarter 2026. The increase in noninterest income is primarily due to higher merchant processing services fee income related to receipt of a one-time termination fee and increased transaction volumes in the third quarter 2026.

Noninterest expense was $26.2 million for the third quarter 2026 compared to $26.0 million for the second quarter 2026. The increase in noninterest expense is primarily due to higher occupancy and equipment expense and professional fees, partially offset by lower salaries and benefits expense.

The income tax provision (FTE) for the third quarter 2026 was $9.9 million compared to $9.5 million for the second quarter 2026.

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
	Robert A. Thorson – Investor Relations Contact
	707-863-6090
	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, 2025 filed on Form 10-K and quarterly report for the quarter ended June 30, 2026 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 15, 2026
WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
September 30, 2026
1. Net Income Summary.
		(in thousands except per-share amounts)
					%
		Q3'2026		Q3'2025	Change	Q2'2026
	Net Interest and Loan Fee
	Income (FTE)	$53,522		$53,846	-0.6%	$52,674
	Provision for
	Credit Losses	-		-	n/m	-
	Noninterest Income	10,703		10,151	5.4%	10,294
	Noninterest Expense	26,218		25,800	1.6%	26,037
	Income Before Taxes (FTE)	38,007		38,197	-0.5%	36,931
	Income Tax Provision (FTE)	9,855		9,934	-0.8%	9,546
	Net Income	$28,152		$28,263	-0.4%	$27,385
	Average Common Shares
	Outstanding	23,084		25,341	-8.9%	23,306
	Diluted Average Common
	Shares Outstanding	23,123		25,341	-8.8%	23,319
	Operating Ratios:
	Basic Earnings Per Common
	Share	$1.22		$1.12	8.9%	$1.17
	Diluted Earnings Per
	Common Share	1.22		1.12	8.9%	1.17
	Return On Assets (a)	1.86%		1.86%		1.84%
	Return On Common
	Equity (a)	11.5%		10.9%		11.3%
	Net Interest Margin (FTE) (a)	3.81%		3.80%		3.77%
	Efficiency Ratio (FTE)	40.8%		40.3%		41.3%
	Dividends Paid Per Common
	Share	$0.48		$0.46	4.3%	$0.48
	Common Dividend Payout
	Ratio	39%		41%		41%
					%
		9/30'26YTD		9/30'25YTD	Change
	Net Interest and Loan Fee
	Income (FTE)	$158,886		$164,798	-3.6%
	Reversal of Provision
	for Credit Losses	(300)		(550)	n/m
	Noninterest Income	30,604		30,787	-0.6%
	Noninterest Expense	78,166		76,456	2.2%
	Income Before Taxes (FTE)	111,624		119,679	-6.7%
	Income Tax Provision (FTE)	28,732		31,313	-8.2%
	Net Income	$82,892		$88,366	-6.2%
	Average Common Shares
	Outstanding	23,561		25,953	-9.2%
	Diluted Average Common
	Shares Outstanding	23,579		25,953	-9.1%
	Operating Ratios:
	Basic Earnings Per Common
	Share	$3.52		$3.40	3.5%
	Diluted Earnings Per
	Common Share	3.52		3.40	3.5%
	Return On Assets (a)	1.85%		1.94%
	Return On Common
	Equity (a)	11.3%		11.4%
	Net Interest Margin (FTE) (a)	3.78%		3.85%
	Efficiency Ratio (FTE)	41.3%		39.1%
	Dividends Paid Per Common
	Share	$1.42		$1.36	4.4%
	Common Dividend Payout
	Ratio	40%		40%
2. Net Interest and Loan Fee Income.
		(dollars in thousands)
					%
		Q3'2026		Q3'2025	Change	Q2'2026
	Interest and Loan Fee
	Income (FTE)	$57,141		$57,491	-0.6%	$55,995
	Interest Expense	3,619		3,645	-0.7%	3,321
	Net Interest and Loan Fee
	Income (FTE)	$53,522		$53,846	-0.6%	$52,674
	Average Earning Assets	$5,593,967		$5,621,797	-0.5%	$5,577,857
	Average Interest-Bearing
	Liabilities	2,786,456		2,724,510	2.3%	2,766,057
	Yield on Earning Assets
	(FTE) (a)	4.07%		4.06%		4.01%
	Cost of Funds (a)	0.26%		0.26%		0.24%
	Net Interest Margin (FTE) (a)	3.81%		3.80%		3.77%
	Interest Expense /
	Interest-Bearing
	Liabilities (a)	0.52%		0.53%		0.48%
	Net Interest Spread (FTE) (a)	3.55%		3.53%		3.53%
					%
		9/30'26YTD		9/30'25YTD	Change
	Interest and Loan Fee
	Income (FTE)	$169,121		$175,028	-3.4%
	Interest Expense	10,235		10,230	0.0%
	Net Interest and Loan Fee
	Income (FTE)	$158,886		$164,798	-3.6%
	Average Earning Assets	$5,605,113		$5,689,058	-1.5%
	Average Interest-Bearing
	Liabilities	2,769,055		2,729,204	1.5%
	Yield on Earning Assets
	(FTE) (a)	4.02%		4.09%
	Cost of Funds (a)	0.24%		0.24%
	Net Interest Margin (FTE) (a)	3.78%		3.85%
	Interest Expense /
	Interest-Bearing
	Liabilities (a)	0.49%		0.50%
	Net Interest Spread (FTE) (a)	3.53%		3.59%
3. Loans & Other Earning Assets.
		(average volume, dollars in thousands)
					%
		Q3'2026		Q3'2025	Change	Q2'2026
	Total Assets	$5,992,606		$6,018,937	-0.4%	$5,967,886
	Total Earning Assets	5,593,967		5,621,797	-0.5%	5,577,857
	Total Loans	661,291		744,046	-11.1%	682,900
	Commercial Loans	103,360		113,215	-8.7%	107,763
	Commercial Real Estate
	Loans	457,862		486,751	-5.9%	465,156
	Consumer Loans	100,069		144,080	-30.5%	109,981
	Total Investment Securities	4,655,877		4,175,230	11.5%	4,569,681
	Debt Securities Available for
	Sale	3,839,791		3,331,315	15.3%	3,759,010
	Debt Securities Held to
	Maturity	801,609		829,341	-3.3%	796,225
	Equity Securities	14,477		14,574	-0.7%	14,446
	Total Interest-Bearing Cash	276,799		702,521	-60.6%	325,276
	Loans / Deposits	13.7%		15.5%		14.2%
					%
		9/30'26YTD		9/30'25YTD	Change
	Total Assets	$5,998,309		$6,082,169	-1.4%
	Total Earning Assets	5,605,113		5,689,058	-1.5%
	Total Loans	684,095		765,231	-10.6%
	Commercial Loans	107,069		116,423	-8.0%
	Commercial Real Estate
	Loans	466,735		490,991	-4.9%
	Consumer Loans	110,291		157,817	-30.1%
	Total Investment Securities	4,565,561		4,268,226	7.0%
	Debt Securities Available for
	Sale	3,748,088		3,418,176	9.7%
	Debt Securities Held to
	Maturity	802,966		835,706	-3.9%
	Equity Securities	14,507		14,344	1.1%
	Total Interest-Bearing Cash	355,457		655,601	-45.8%
	Loans / Deposits	14.2%		15.7%
4. Deposits, Other Interest-Bearing Liabilities & Equity.
		(average volume, dollars in thousands)
					%
		Q3'2026		Q3'2025	Change	Q2'2026
	Total Deposits	$4,813,780		$4,806,568	0.2%	$4,795,518
	Noninterest Demand	2,170,613		2,201,644	-1.4%	2,168,936
	Interest-Bearing Transaction	919,726		895,504	2.7%	931,438
	Savings	1,661,489		1,636,259	1.5%	1,630,311
	Time greater than $100K	20,528		25,671	-20.0%	22,335
	Time less than $100K	41,424		47,490	-12.8%	42,498
	Total Short-Term Borrowings	143,289		119,586	19.8%	139,475
	Securities Sold under
	Repurchase Agreements	143,289		119,586	19.8%	139,475
	Shareholders' Equity	973,799		1,026,618	-5.1%	971,898
	Demand Deposits /
	Total Deposits	45.1%		45.8%		45.2%
	Transaction & Savings
	Deposits / Total Deposits	98.7%		98.5%		98.6%
					%
		9/30'26YTD		9/30'25YTD	Change
	Total Deposits	$4,810,612		$4,868,418	-1.2%
	Noninterest Demand	2,181,895		2,246,259	-2.9%
	Interest-Bearing Transaction	923,899		912,830	1.2%
	Savings	1,640,115		1,632,529	0.5%
	Time greater than $100K	22,189		27,465	-19.2%
	Time less than $100K	42,514		49,335	-13.8%
	Total Short-Term Borrowings	140,338		107,045	31.1%
	Securities Sold under
	Repurchase Agreements	140,338		107,045	31.1%
	Shareholders' Equity	984,642		1,039,802	-5.3%
	Demand Deposits /
	Total Deposits	45.4%		46.1%
	Transaction & Savings
	Deposits / Total Deposits	98.7%		98.4%
5. Interest Yields Earned & Rates Paid.
		(dollars in thousands)
		Q3'2026
		Average		Income/	Yield (a) /
		Volume		Expense	Rate (a)
	Interest & Loan Fee Income Earned:
	Total Earning Assets (FTE)	$5,593,967		$57,141	4.07%
	Total Loans (FTE)	661,291		9,563	5.74%
	Commercial Loans (FTE)	103,360		1,554	5.97%
	Commercial Real Estate
	Loans	457,862		6,374	5.52%
	Consumer Loans	100,069		1,635	6.48%
	Total Investment Securities (FTE)	4,655,877		44,971	3.86%
	Total Debt Securities
	Available for Sale (FTE)	3,839,791		36,194	3.76%
	Corporate Securities	1,905,513		13,080	2.75%
	Collateralized Loan
	Obligations	178,979		2,590	5.66%
	Agency Mortgage Backed
	Securities	1,411,803		17,506	4.96%
	Securities of U.S.
	Government Sponsored
	Entities	308,262		2,708	3.51%
	Obligations of States and
	Political Subdivisions
	(FTE)	35,234		310	3.52%
	Total Debt Securities Held to
	Maturity (FTE)	801,609		8,315	4.15%
	Agency Mortgage Backed
	Securities	56,991		501	3.52%
	Corporate Securities	730,816		7,680	4.20%
	Obligations of States and
	Political Subdivisions
	(FTE)	13,802		134	3.87%
	Equity Securities (FTE)	14,477		462	12.75%
	Total Interest-Bearing Cash	276,799		2,607	3.69%
	Interest Expense Paid:
	Total Earning Assets	5,593,967		3,619	0.26%
	Total Interest-Bearing
	Liabilities	2,786,456		3,619	0.52%
	Total Interest-Bearing
	Deposits	2,643,167		3,387	0.51%
	Interest-Bearing Transaction	919,726		46	0.02%
	Savings	1,661,489		3,301	0.79%
	Time less than $100K	41,424		31	0.30%
	Time greater than $100K	20,528		9	0.17%
	Total Short-Term Borrowings	143,289		232	0.64%
	Securities Sold under
	Repurchase Agreements	143,289		232	0.64%
	Net Interest Income and
	Margin (FTE)			$53,522	3.81%
		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%
6. Noninterest Income.
		(dollars in thousands except per-share amounts)
					%
		Q3'2026		Q3'2025	Change	Q2'2026
	Service Charges on Deposit
	Accounts	$3,436		$3,317	3.6%	$3,380
	Merchant Processing
	Services	3,273		2,860	14.4%	2,840
	Debit Card Fees	1,398		1,603	-12.8%	1,462
	Trust Fees	1,031		895	15.2%	965
	ATM Processing Fees	493		483	2.1%	484
	Other Service Fees	441		448	-1.6%	445
	Unrealized (Losses) Gains
	on Equity Securities	(8)		(90)	n/m	36
	Other Noninterest Income	639		635	0.6%	682
	Total Noninterest Income	$10,703		$10,151	5.4%	$10,294
	Operating Ratios:
	Total Revenue (FTE)	$64,225		$63,997	0.4%	$62,968
	Noninterest Income /
	Revenue (FTE)	16.7%		15.9%		16.3%
	Service Charges /
	Avg. Deposits (a)	0.28%		0.27%		0.28%
	Total Revenue (FTE) Per
	Avg. Common Share (a)	$11.04		$10.02	10.2%	$10.84
					%
		9/30'26YTD		9/30'25YTD	Change
	Service Charges on Deposit
	Accounts	$10,148		$10,066	0.8%
	Merchant Processing
	Services	8,852		8,280	6.9%
	Debit Card Fees	4,184		4,848	-13.7%
	Trust Fees	2,923		2,661	9.8%
	ATM Processing Fees	1,427		1,428	-0.1%
	Other Service Fees	1,294		1,327	-2.5%
	Bank Owned
	Life Insurance Gains	-		208	n/m
	Unrealized Losses on
	Equity Securities	(219)		(90)	n/m
	Other Noninterest Income	1,995		2,059	-3.1%
	Total Noninterest Income	$30,604		$30,787	-0.6%
	Operating Ratios:
	Total Revenue (FTE)	$189,490		$195,585	-3.1%
	Noninterest Income /
	Revenue (FTE)	16.2%		15.7%
	Service Charges /
	Avg. Deposits (a)	0.28%		0.28%
	Total Revenue (FTE) Per
	Avg. Common Share (a)	$10.75		$10.08	6.7%
7. Noninterest Expense.
		(dollars in thousands)
					%
		Q3'2026		Q3'2025	Change	Q2'2026
	Salaries and Related Benefits	$12,394		$12,387	0.1%	$12,541
	Occupancy and Equipment	5,436		5,253	3.5%	5,209
	Outsourced Data Processing	2,805		2,722	3.0%	2,781
	Limited Partnership
	Operating Losses	1,110		915	21.3%	1,110
	Professional Fees	710		643	10.4%	660
	Courier Service	828		738	12.2%	765
	Other Noninterest Expense	2,935		3,142	-6.6%	2,971
	Total Noninterest Expense	$26,218		$25,800	1.6%	$26,037
	Operating Ratios:
	Noninterest Expense /
	Avg. Earning Assets (a)	1.86%		1.82%		1.87%
	Noninterest Expense /
	Revenues (FTE)	40.8%		40.3%		41.3%
					%
		9/30'26YTD		9/30'25YTD	Change
	Salaries and Related Benefits	$37,260		$36,816	1.2%
	Occupancy and Equipment	16,072		15,445	4.1%
	Outsourced Data Processing	8,374		8,128	3.0%
	Limited Partnership
	Operating Losses	3,330		2,745	21.3%
	Professional Fees	1,832		1,424	28.7%
	Courier Service	2,327		2,113	10.1%
	Other Noninterest Expense	8,971		9,785	-8.3%
	Total Noninterest Expense	$78,166		$76,456	2.2%
	Operating Ratios:
	Noninterest Expense /
	Avg. Earning Assets (a)	1.86%		1.80%
	Noninterest Expense /
	Revenues (FTE)	41.3%		39.1%
8. Allowance for Credit Losses.
		(dollars in thousands)
					%
		Q3'2026		Q3'2025	Change	Q2'2026
	Average Total Loans	$661,291		$744,046	-11.1%	$682,900
	Beginning of Period
	Allowance for Credit
	Losses on Loans (ACLL)	$10,790		$13,787	-21.7%	$11,151
	Provision for
	Credit Losses	-		-	n/m	-
	Net ACLL Losses	(277)		(1,928)	-85.6%	(361)
	End of Period ACLL	$10,513		$11,859	-11.4%	$10,790
	Gross ACLL Recoveries /
	Gross ACLL Losses	63%		22%		58%
	Net ACLL Losses /
	Avg. Total Loans (a)	-0.17%		-1.03%		-0.21%
					%
		9/30'26YTD		9/30'25YTD	Change
	Average Total Loans	$684,095		$765,231	-10.6%
	Beginning of Period ACLL	$11,573		$14,780	-21.7%
	Reversal of Provision for
	Credit Losses	(300)		(550)	n/m
	Net ACLL Losses	(760)		(2,371)	-67.9%
	End of Period ACLL	$10,513		$11,859	-11.4%
	Gross ACLL Recoveries /
	Gross ACLL Losses	68%		54%
	Net ACLL Losses /
	Avg. Total Loans (a)	-0.15%		-0.41%
		(dollars in thousands)
					%
		9/30/26		9/30/25	Change	6/30/26
	Allowance for Credit Losses
	on Loans	$10,513		$11,859	-11.4%	$10,790
	Allowance for Credit Losses
	on Held to Maturity
	Securities	1		1	0.0%	1
	Total Allowance for Credit
	Losses	$10,514		$11,860	-11.3%	$10,791
	Allowance for Unfunded
	Credit Commitments	$201		$201	0.0%	$201
9. Credit Quality.
		(dollars in thousands)
					%
		9/30/26		9/30/25	Change	6/30/26
	Nonperforming Loans:
	Nonperforming Nonaccrual
	Loans	$ -		$1,619	n/m	$183
	Performing Nonaccrual
	Loans	330		728	-54.7%	342
	Total Nonaccrual Loans	330		2,347	-85.9%	525
	Accruing Loans 90+ Days
	Past Due	146		297	-50.8%	283
	Total Nonperforming Loans	$476		$2,644	-82.0%	$808
	Total Loans Outstanding	$658,198		$741,579	-11.2%	$668,833
	Total Assets	5,793,774		5,914,438	-2.0%	5,805,061
	Loans:
	Allowance for Credit Losses
	on Loans	$10,513		$11,859	-11.4%	$10,790
	Allowance for Credit Losses
	on Loans / Loans	1.60%		1.60%		1.61%
	Nonperforming Loans /
	Total Loans	0.07%		0.36%		0.12%
10. Capital.
		(in thousands, except per-share amounts)
					%
		9/30/26		9/30/25	Change	6/30/26
	Shareholders' Equity	$789,672		$931,646	-15.2%	$853,148
	Total Assets	5,793,774		5,914,438	-2.0%	5,805,061
	Shareholders' Equity/
	Total Assets	13.63%		15.75%		14.70%
	Shareholders' Equity/
	Total Loans	119.97%		125.63%		127.56%
	Tangible Common Equity
	Ratio	11.78%		13.98%		12.87%
	Common Shares Outstanding	23,084		25,107	-8.1%	23,002
	Common Equity Per Share	$34.21		$37.11	-7.8%	$37.09
	Market Value Per Common
	Share	58.32		49.99	16.7%	58.67
		(shares in thousands)
					%
		Q3'2026		Q3'2025	Change	Q2'2026
	Share Retirements (Issuances):
	Total Shares Retired	51		488	n/m	753
	Average Retirement Price	$57.92		$48.96	n/m	$55.14
	Net Shares (Issued) Retired	(82)		480	n/m	629
					%
		9/30'26YTD		9/30'25YTD	Change
	Total Shares Retired	1,805		1,622	n/m
	Average Retirement Price	$52.88		$49.60	n/m
	Net Shares Retired	1,539		1,601	n/m
11. Period-End Balance Sheets.
		(unaudited, dollars in thousands)
					%
		9/30/26		9/30/25	Change	6/30/26
	Assets:
	Cash and Due from Banks	$322,510		$659,268	-51.1%	$301,934
	Debt Securities Available for
	Sale:
	Corporate Securities	1,712,385		1,797,562	-4.7%	1,796,083
	Collateralized Loan
	Obligations	152,389		561,063	-72.8%	208,302
	Agency Mortgage Backed
	Securities	1,414,432		589,654	139.9%	1,297,830
	Securities of U.S.
	Government Sponsored
	Entities	287,637		305,192	-5.8%	296,531
	Obligations of States and
	Political Subdivisions	28,977		51,853	-44.1%	40,431
	Total Debt Securities
	Available for Sale	3,595,820		3,305,324	8.8%	3,639,177
	Debt Securities Held to
	Maturity:
	Agency Mortgage Backed
	Securities	55,609		46,433	19.8%	58,202
	Corporate Securities	730,433		740,545	-1.4%	733,806
	Obligations of States and
	Political Subdivisions (1)	12,675		39,527	-67.9%	15,838
	Total Debt Securities
	Held to Maturity (1)	798,717		826,505	-3.4%	807,846
	Loans	658,198		741,579	-11.2%	668,833
	Allowance for Credit Losses
	on Loans	(10,513)		(11,859)	-11.4%	(10,790)
	Total Loans, net	647,685		729,720	-11.2%	658,043
	Premises and Equipment, net	25,590		25,874	-1.1%	25,592
	Goodwill	121,673		121,673	0.0%	121,673
	Other Assets	281,779		246,074	14.5%	250,796
	Total Assets	$5,793,774		$5,914,438	-2.0%	$5,805,061
	Liabilities and Shareholders'
	Equity:
	Deposits:
	Noninterest-Bearing	$2,166,615		$2,214,100	-2.1%	$2,141,783
	Interest-Bearing Transaction	944,441		881,367	7.2%	908,521
	Savings	1,645,363		1,626,474	1.2%	1,660,534
	Time	59,946		71,238	-15.9%	61,939
	Total Deposits	4,816,365		4,793,179	0.5%	4,772,777
	Securities Sold under
	Repurchase Agreements	139,062		133,651	4.0%	131,813
	Total Short-Term
	Borrowed Funds	139,062		133,651	4.0%	131,813
	Other Liabilities	48,675		55,962	-13.0%	47,323
	Total Liabilities	5,004,102		4,982,792	0.4%	4,951,913
	Shareholders' Equity:
	Common Equity:
	Paid-In Capital	421,705		448,600	-6.0%	415,038
	Accumulated Other
	Comprehensive Loss	(202,792)		(99,913)	103.0%	(117,592)
	Retained Earnings	570,759		582,959	-2.1%	555,702
	Total Shareholders' Equity	789,672		931,646	-15.2%	853,148
	Total Liabilities and
	Shareholders' Equity	$5,793,774		$5,914,438	-2.0%	$5,805,061
12. Income Statements.
		(unaudited, in thousands except per-share amounts)
					%
		Q3'2026		Q3'2025	Change	Q2'2026
	Interest and Loan Fee Income:
	Loans	$9,512		$10,257	-7.3%	$9,663
	Equity Securities	433		409	5.9%	433
	Debt Securities Available
	for Sale	36,130		30,358	19.0%	34,556
	Debt Securities Held to
	Maturity	8,287		8,370	-1.0%	8,144
	Interest-Bearing Cash	2,607		7,840	-66.7%	3,001
	Total Interest and Loan
	Fee Income	56,969		57,234	-0.5%	55,797
	Interest Expense:
	Transaction Deposits	46		45	2.2%	45
	Savings Deposits	3,301		3,361	-1.8%	3,024
	Time Deposits	40		47	-14.9%	41
	Securities Sold under
	Repurchase Agreements	232		192	21.0%	211
	Total Interest Expense	3,619		3,645	-0.7%	3,321
	Net Interest and Loan
	Fee Income	53,350		53,589	-0.4%	52,476
	Provision for
	Credit Losses	-		-	n/m	-
	Noninterest Income:
	Service Charges on Deposit
	Accounts	3,436		3,317	3.6%	3,380
	Merchant Processing
	Services	3,273		2,860	14.4%	2,840
	Debit Card Fees	1,398		1,603	-12.8%	1,462
	Trust Fees	1,031		895	15.2%	965
	ATM Processing Fees	493		483	2.1%	484
	Other Service Fees	441		448	-1.6%	445
	Other Noninterest Income	631		545	15.8%	718
	Total Noninterest Income	10,703		10,151	5.4%	10,294
	Noninterest Expense:
	Salaries and Related Benefits	12,394		12,387	0.1%	12,541
	Occupancy and Equipment	5,436		5,253	3.5%	5,209
	Outsourced Data Processing	2,805		2,722	3.0%	2,781
	Limited Partnership
	Operating Losses	1,110		915	21.3%	1,110
	Professional Fees	710		643	10.4%	660
	Courier Service	828		738	12.2%	765
	Other Noninterest Expense	2,935		3,142	-6.6%	2,971
	Total Noninterest Expense	26,218		25,800	1.6%	26,037
	Income Before Income Taxes	37,835		37,940	-0.3%	36,733
	Income Tax Provision	9,683		9,677	0.1%	9,348
	Net Income	$28,152		$28,263	-0.4%	$27,385
	Average Common Shares
	Outstanding	23,084		25,341	-8.9%	23,306
	Diluted Average Common
	Shares Outstanding	23,123		25,341	-8.8%	23,319
	Per Common Share Data:
	Basic Earnings	$1.22		$1.12	8.9%	$1.17
	Diluted Earnings	1.22		1.12	8.9%	1.17
	Dividends Paid	0.48		0.46	4.3%	0.48
					%
		9/30'26YTD		9/30'25YTD	Change
	Interest and Loan Fee Income:
	Loans	$29,054		$31,449	-7.6%
	Equity Securities	1,312		1,239	5.9%
	Debt Securities Available
	for Sale	103,381		94,376	9.5%
	Debt Securities Held to
	Maturity	24,925		25,312	-1.5%
	Interest-Bearing Cash	9,864		21,816	-54.8%
	Total Interest and Loan
	Fee Income	168,536		174,192	-3.2%
	Interest Expense:
	Transaction Deposits	136		135	0.7%
	Savings Deposits	9,327		9,439	-1.2%
	Time Deposits	123		153	-19.6%
	Securities Sold under
	Repurchase Agreements	649		503	29.0%
	Total Interest Expense	10,235		10,230	0.0%
	Net Interest and Loan
	Fee Income	158,301		163,962	-3.5%
	Reversal of Provision
	for Credit Losses	(300)		(550)	n/m
	Noninterest Income:
	Service Charges on Deposit	10,148		10,066	0.8%
	Accounts
	Merchant Processing
	Services	8,852		8,280	6.9%
	Debit Card Fees	4,184		4,848	-13.7%
	Trust Fees	2,923		2,661	9.8%
	ATM Processing Fees	1,427		1,428	-0.1%
	Other Service Fees	1,294		1,327	-2.5%
	Bank Owned
	Life Insurance Gains	-		208	n/m
	Other Noninterest Income	1,776		1,969	-9.8%
	Total Noninterest Income	30,604		30,787	-0.6%
	Noninterest Expense:
	Salaries and Related Benefits	37,260		36,816	1.2%
	Occupancy and Equipment	16,072		15,445	4.1%
	Outsourced Data Processing	8,374		8,128	3.0%
	Limited Partnership
	Operating Losses	3,330		2,745	21.3%
	Professional Fees	1,832		1,424	28.7%
	Courier Service	2,327		2,113	10.1%
	Other Noninterest Expense	8,971		9,785	-8.3%
	Total Noninterest Expense	78,166		76,456	2.2%
	Income Before Income Taxes	111,039		118,843	-6.6%
	Income Tax Provision	28,147		30,477	-7.6%
	Net Income	$82,892		$88,366	-6.2%
	Average Common Shares
	Outstanding	23,561		25,953	-9.2%
	Diluted Average Common
	Shares Outstanding	23,579		25,953	-9.1%
	Per Common Share Data:
	Basic Earnings	$3.52		$3.40	3.5%
	Diluted Earnings	3.52		3.40	3.5%
	Dividends Paid	1.42		1.36	4.4%
	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, 2026, June 30, 2026 and September 30, 2025.
	(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

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Westamerica's third-quarter 2026 earnings and EPS?

Westamerica reported $28.2 million in net income and $1.22 in diluted EPS for the third quarter of 2026. Net income declined 0.4% year over year, while diluted EPS increased 8.9%. Second-quarter 2026 net income was $27.4 million, with diluted EPS of $1.17.

Why did Westamerica's third-quarter 2026 operating expenses increase?

Noninterest expense increased sequentially primarily because of higher occupancy and equipment expense and professional fees, partly offset by lower salaries and benefits expense. Total noninterest expense was $26.2 million, compared with $26.0 million in the second quarter.