"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. "Fourth quarter 2025 results generated an annualized 10.8 percent return on average common equity. Westamerica paid a $0.46 per common share dividend during the fourth quarter 2025, and retired 485 thousand common shares using its share repurchase plan. Westamerica's capital ratios remain at levels exceeding the highest regulatory guidelines," concluded Payne.
Net interest income on a fully-taxable equivalent (FTE) basis was $53.5 million for the fourth quarter 2025, compared to $53.8 million for the third quarter 2025. The annualized yield earned on loans, bonds and cash for the fourth quarter 2025 was 4.00 percent compared to 4.06 percent for the third quarter 2025. The annualized cost of funding the loan and bond portfolios was 0.24 percent for the fourth quarter 2025, compared to 0.26 percent for the third quarter 2025.
Noninterest income for the fourth quarter 2025 totaled $10.0 million compared to $10.2 million for the third quarter 2025.
Noninterest expenses for the fourth quarter 2025 were $25.5 million compared to $25.8 million for the third quarter 2025.
The income tax provision for the fourth quarter 2025 includes a $628 thousand increase to reconcile the 2024 income tax provision to the filed 2024 tax returns.
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 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 September 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 January 15, 2026
WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
December 31, 2025
1. Net Income Summary.
(in thousands except per-share amounts)
%
Q4'2025
Q4'2024
Change
Q3'2025
Net Interest and Loan Fee
Income (FTE)
$
53,549
$
59,247
-9.6%
$
53,846
Provision
for Credit Losses
-
-
n/m
-
Noninterest Income
10,003
10,633
-5.9%
10,151
Noninterest Expense
25,466
25,853
-1.5%
25,800
Income Before Taxes (FTE)
38,086
44,027
-13.5%
38,197
Income Tax Provision (FTE)
10,279
12,327
-16.6%
9,934
Net Income
$
27,807
$
31,700
-12.3%
$
28,263
Average Common Shares
Outstanding
24,849
26,699
-6.9%
25,341
Diluted Average Common
Shares Outstanding
24,849
26,701
-6.9%
25,341
Operating Ratios:
Basic Earnings Per Common
Share
$
1.12
$
1.19
-5.9%
$
1.12
Diluted Earnings Per
Common Share
1.12
1.19
-5.9%
1.12
Return On Assets (a)
1.82%
2.02%
1.86%
Return On Common
Equity (a)
10.8%
12.1%
10.9%
Net Interest Margin (FTE) (a)
3.76%
4.01%
3.80%
Efficiency Ratio (FTE)
40.1%
37.0%
40.3%
Dividends Paid Per Common
Share
$
0.46
$
0.44
4.5%
$
0.46
Common Dividend Payout
Ratio
41%
37%
41%
%
12/31'25YTD
12/31'24YTD
Change
Net Interest and Loan Fee
Income (FTE)
$
218,347
$
251,906
-13.3%
(Reversal of) Provision
for Credit Losses
(550
)
300
n/m
Noninterest Income
40,790
43,155
-5.5%
Noninterest Expense
101,922
104,391
-2.4%
Income Before Taxes (FTE)
157,765
190,370
-17.1%
Income Tax Provision (FTE)
41,592
51,734
-19.6%
Net Income
$
116,173
$
138,636
-16.2%
Average Common Shares
Outstanding
25,674
26,685
-3.8%
Diluted Average Common
Shares Outstanding
25,674
26,686
-3.8%
Operating Ratios:
Basic Earnings Per Common
Share
$
4.52
$
5.20
-13.1%
Diluted Earnings Per
Common Share
4.52
5.20
-13.1%
Return On Assets
1.91%
2.15%
Return On Common
Equity
11.2%
13.8%
Net Interest Margin (FTE)
3.82%
4.14%
Efficiency Ratio (FTE)
39.3%
35.4%
Dividends Paid Per Common
Share
$
1.82
$
1.76
3.4%
Common Dividend Payout
Ratio
40%
34%
2. Net Interest Income.
(dollars in thousands)
%
Q4'2025
Q4'2024
Change
Q3'2025
Interest and Loan Fee
Income (FTE)
$
57,031
$
62,713
-9.1%
$
57,491
Interest Expense
3,482
3,466
0.5%
3,645
Net Interest and Loan Fee
Income (FTE)
$
53,549
$
59,247
-9.6%
$
53,846
Average Earning Assets
$
5,666,854
$
5,850,620
-3.1%
$
5,621,797
Average Interest-Bearing
Liabilities
2,731,820
2,796,675
-2.3%
2,724,510
Yield on Earning Assets
(FTE) (a)
4.00%
4.25%
4.06%
Cost of Funds (a)
0.24%
0.24%
0.26%
Net Interest Margin (FTE) (a)
3.76%
4.01%
3.80%
Interest Expense /
Interest-Bearing
Liabilities (a)
0.51%
0.49%
0.53%
Net Interest Spread (FTE) (a)
3.49%
3.76%
3.53%
%
12/31'25YTD
12/31'24YTD
Change
Interest and Loan Fee
Income (FTE)
$
232,059
$
269,325
-13.8%
Interest Expense
13,712
17,419
-21.3%
Net Interest and Loan Fee
Income (FTE)
$
218,347
$
251,906
-13.3%
Average Earning Assets
$
5,683,462
$
6,043,966
-6.0%
Average Interest-Bearing
Liabilities
2,729,864
2,925,742
-6.7%
Yield on Earning Assets
(FTE)
4.06%
4.43%
Cost of Funds
0.24%
0.29%
Net Interest Margin (FTE)
3.82%
4.14%
Interest Expense /
Interest-Bearing
Liabilities
0.50%
0.60%
Net Interest Spread (FTE)
3.56%
3.83%
3. Loans & Other Earning Assets.
(average volume, dollars in thousands)
%
Q4'2025
Q4'2024
Change
Q3'2025
Total Assets
$
6,055,696
$
6,243,799
-3.0%
$
6,018,937
Total Earning Assets
5,666,854
5,850,620
-3.1%
5,621,797
Total Loans
727,540
821,767
-11.5%
744,046
Commercial Loans
112,830
131,088
-13.9%
113,215
Commercial Real Estate
Loans
482,133
503,546
-4.3%
486,751
Consumer Loans
132,577
187,133
-29.2%
144,080
Total Investment Securities
4,343,373
4,557,436
-4.7%
4,175,230
Debt Securities Available for
Sale
3,504,978
3,696,151
-5.2%
3,331,315
Debt Securities Held to
Maturity
823,690
847,058
-2.8%
829,341
Equity Securities
14,705
14,227
3.4%
14,574
Total Interest-Bearing Cash
595,941
471,417
26.4%
702,521
Loans / Deposits
15.0%
16.3%
15.5%
%
12/31'25YTD
12/31'24YTD
Change
Total Assets
$
6,075,496
$
6,444,687
-5.7%
Total Earning Assets
5,683,462
6,043,966
-6.0%
Total Loans
755,731
836,136
-9.6%
Commercial Loans
115,518
133,569
-13.5%
Commercial Real Estate
Loans
488,758
493,282
-0.9%
Consumer Loans
151,455
209,285
-27.6%
Total Investment Securities
4,287,167
4,833,024
-11.3%
Debt Securities Available for
Sale
3,440,054
3,958,907
-13.1%
Debt Securities Held to
Maturity
832,678
859,890
-3.2%
Equity Securities
14,435
14,227
1.5%
Total Interest-Bearing Cash
640,564
374,806
70.9%
Loans / Deposits
15.5%
16.2%
4. Deposits, Other Interest-Bearing Liabilities & Equity.
(average volume, dollars in thousands)
%
Q4'2025
Q4'2024
Change
Q3'2025
Total Deposits
$
4,837,964
$
5,028,363
-3.8%
$
4,806,568
Noninterest Demand
2,236,646
2,342,092
-4.5%
2,201,644
Interest-Bearing Transaction
894,816
934,876
-4.3%
895,504
Savings
1,636,817
1,666,542
-1.8%
1,636,259
Time greater than $100K
24,428
31,541
-22.6%
25,671
Time less than $100K
45,257
53,312
-15.1%
47,490
Total Short-Term Borrowings
130,502
110,404
18.2%
119,586
Securities Sold under
Repurchase Agreements
130,502
110,404
18.2%
119,586
Shareholders' Equity
1,019,086
1,039,017
-1.9%
1,026,618
Demand Deposits /
Total Deposits
46.2%
46.6%
45.8%
Transaction & Savings
Deposits / Total Deposits
98.6%
98.3%
98.5%
%
12/31'25YTD
12/31'24YTD
Change
Total Deposits
$
4,860,742
$
5,174,942
-6.1%
Noninterest Demand
2,243,836
2,445,945
-8.3%
Interest-Bearing Transaction
908,290
977,912
-7.1%
Savings
1,633,610
1,660,227
-1.6%
Time greater than $100K
26,699
33,794
-21.0%
Time less than $100K
48,307
57,064
-15.3%
Total Short-Term Borrowings
112,958
196,745
-42.6%
Bank Term Funding Program
Borrowings
-
107,364
n/m
Securities Sold under
Repurchase Agreements
112,958
89,381
26.4%
Shareholders' Equity
1,034,581
1,003,242
3.1%
Demand Deposits /
Total Deposits
46.2%
47.3%
Transaction & Savings
Deposits / Total Deposits
98.5%
98.2%
5. Interest Yields Earned & Rates Paid.
(dollars in thousands)
Q4'2025
Average
Income/
Yield (a) /
Volume
Expense
Rate (a)
Interest & Loan Fee Income Earned:
Total Earning Assets (FTE)
$
5,666,854
$
57,031
4.00%
Total Loans (FTE)
727,540
10,295
5.62%
Commercial Loans (FTE)
112,830
1,695
5.97%
Commercial Real Estate
Loans
482,133
6,536
5.38%
Consumer Loans
132,577
2,064
6.18%
Total Investment Securities (FTE)
4,343,373
40,748
3.74%
Total Debt Securities
Available for Sale (FTE)
3,504,978
31,860
3.62%
Corporate Securities
1,914,010
12,758
2.67%
Collateralized Loan
Obligations
487,564
7,375
5.92%
Agency Mortgage Backed
Securities
740,532
8,573
4.63%
Securities of U.S.
Government Sponsored
Entities
312,190
2,766
3.54%
Obligations of States and
Political Subdivisions
(FTE)
50,682
388
3.06%
