"Westamerica's first quarter 2026 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 42 percent of total revenues and credit quality remained stable with nonperforming assets of $1.4 million at March 31, 2026," said Chairman, President and CEO David Payne. "First quarter 2026 results generated an annualized 11.0 percent return on average common equity. Shareholders were paid a $0.46 per common share dividend during the first quarter 2026 and 997 thousand shares were retired using the Company's share repurchase plan," concluded Payne.
Net interest income on a fully-taxable equivalent (FTE) basis was $52.7 million for the first quarter 2026, compared to $53.5 million for the fourth quarter 2025. The annualized yield earned on loans, bonds and cash for the first quarter 2026 was 3.98 percent compared to 4.00 percent for the fourth quarter 2025. The annualized cost of funding the loan and bond portfolios was 0.24 percent for the first quarter 2026 unchanged from the fourth quarter 2025.
The Company recognized a $300 thousand reversal of provision for credit losses in the first quarter 2026. The Allowance for Credit Losses on Loans was $11.2 million at March 31, 2026.
Noninterest income for the first quarter 2026 totaled $9.6 million compared to $10.0 million for the fourth quarter 2025. Debit card fees declined $174 thousand from the fourth quarter 2025 to the first quarter 2026 and the Company recognized unrealized securities losses of $247 thousand in the first quarter 2026.
Noninterest expenses for the first quarter 2026 were $25.9 million compared to $25.5 million for the fourth quarter 2025. Salaries and related benefits expense were higher in the first quarter 2026 when compared to fourth quarter 2025 due to seasonally higher payroll taxes and higher benefit costs.
The income tax provision (FTE) for the first quarter 2026 was $9.3 million compared to $10.3 million for the fourth quarter 2025. The fourth quarter 2025 income tax provision includes a $628 thousand increase to the book tax provision 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 Bancorporation1108 Fifth Avenue, San Rafael, CA 94901Robert A. Thorson, Investor Relations Contact707-863-6090[email protected]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 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 April 16, 2026
WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
March 31, 2026
1. Net Income Summary.
(in thousands except per-share amounts)
%
Q1'2026
Q1'2025
Change
Q4'2025
Net Interest and Loan Fee
Income (FTE)
$
52,690
$
56,390
-6.6
%
$
53,549
(Reversal of) Provision
for Credit Losses
(300
)
(550
)
n/m
-
Noninterest Income
9,607
10,321
-6.9
%
10,003
Noninterest Expense
25,911
25,127
3.1
%
25,466
Income Before Taxes (FTE)
36,686
42,134
-12.9
%
38,086
Income Tax Provision (FTE)
9,331
11,097
-15.9
%
10,279
Net Income
$
27,355
$
31,037
-11.9
%
$
27,807
Average Common Shares
Outstanding
24,306
26,642
-8.8
%
24,849
Diluted Average Common
Shares Outstanding
24,306
26,642
-8.8
%
24,849
Operating Ratios:
Basic Earnings Per Common
Share
$
1.13
$
1.16
-2.6
%
$
1.12
Diluted Earnings Per
Common Share
1.13
1.16
-2.6
%
1.12
Return On Assets (a)
1.84
%
2.03
%
1.82
%
Return On Common
Equity (a)
11.0
%
11.9
%
10.8
%
Net Interest Margin (FTE) (a)
3.74
%
3.90
%
3.76
%
Efficiency Ratio (FTE)
41.6
%
37.7
%
40.1
%
Dividends Paid Per Common
Share
$
0.46
$
0.44
4.5
%
$
0.46
Common Dividend Payout
Ratio
41
%
38
%
41
%
2. Net Interest Income.
(dollars in thousands)
%
Q1'2026
Q1'2025
Change
Q4'2025
Interest and Loan Fee
Income (FTE)
$
55,985
$
59,786
-6.4
%
$
57,031
Interest Expense
3,295
3,396
-3.0
%
3,482
Net Interest and Loan Fee
Income (FTE)
$
52,690
$
56,390
-6.6
%
$
53,549
Average Earning Assets
$
5,644,066
$
5,794,836
-2.6
%
$
5,666,854
Average Interest-Bearing
Liabilities
2,754,298
2,770,099
-0.6
%
2,731,820
Yield on Earning Assets
(FTE) (a)
3.98
%
4.14
%
4.00
%
Cost of Funds (a)
0.24
%
0.24
%
0.24
%
Net Interest Margin (FTE) (a)
3.74
%
3.90
%
3.76
%
Interest Expense /
Interest-Bearing
Liabilities (a)
0.49
%
0.50
%
0.51
%
Net Interest Spread (FTE) (a)
3.49
%
3.64
%
3.49
%
3. Loans & Other Earning Assets.
(average volume, dollars in thousands)
%
Q1'2026
Q1'2025
Change
Q4'2025
Total Assets
$
6,034,899
$
6,187,321
-2.5
%
$
6,055,696
Total Earning Assets
5,644,066
5,794,836
-2.6
%
5,666,854
Total Loans
708,613
789,935
-10.3
%
727,540
Commercial Loans
110,159
120,189
-8.3
%
112,830
Commercial Real Estate
Loans
477,402
497,379
-4.0
%
482,133
Consumer Loans
121,052
172,367
-29.8
%
132,577
Total Investment Securities
4,469,072
4,395,565
1.7
%
4,343,373
Debt Securities Available for
Sale
3,643,302
3,539,528
2.9
%
3,504,978
Debt Securities Held to
Maturity
811,170
841,810
-3.6
%
823,690
Equity Securities
14,600
14,227
2.6
%
14,705
Total Interest-Bearing Cash
466,381
609,336
-23.5
%
595,941
Loans / Deposits
14.7
%
15.9
%
15.0
%
4. Deposits, Other Interest-Bearing Liabilities & Equity.
(average volume, dollars in thousands)
%
Q1'2026
Q1'2025
Change
Q4'2025
Total Deposits
$
4,822,635
$
4,958,554
-2.7
%
$
4,837,964
Noninterest Demand
2,206,530
2,293,059
-3.8
%
2,236,646
Interest-Bearing Transaction
920,543
935,054
-1.6
%
894,816
Savings
1,628,180
1,649,631
-1.3
%
1,636,817
Time greater than $100K
23,738
29,460
-19.4
%
24,428
Time less than $100K
43,644
51,350
-15.0
%
45,257
Total Short-Term Borrowings
138,193
104,604
32.1
%
130,502
Securities Sold under
Repurchase Agreements
138,193
104,604
32.1
%
130,502
Shareholders' Equity
1,008,613
1,055,925
-4.5
%
1,019,086
Demand Deposits /
Total Deposits
45.8
%
46.2
%
46.2
%
Transaction & Savings
Deposits / Total Deposits
98.6
%
98.4
%
98.6
%
5. Interest Yields Earned & Rates Paid.
(dollars in thousands)
Q1'2026
Average
Income/
Yield (a) /
Volume
Expense
Rate (a)
Interest & Loan Fee Income Earned:
Total Earning Assets (FTE)
$
5,644,066
$
55,985
3.98
%
Total Loans (FTE)
708,613
9,936
5.68
%
Commercial Loans (FTE)
110,159
1,692
6.21
%
Commercial Real Estate
Loans
477,402
6,384
5.42
%
Consumer Loans
121,052
1,860
6.23
%
Total Investment Securities (FTE)
4,469,072
41,793
3.74
%
Total Debt Securities
Available for Sale (FTE)
3,643,302
32,769
3.60
%
Corporate Securities
1,920,776
12,642
2.63
%
Collateralized Loan
Obligations
349,347
4,926
5.64
%
Agency Mortgage Backed
Securities
1,018,548
12,123
4.76
%
Securities of U.S.
Government Sponsored
Entities
308,433
2,720
3.53
%
Obligations of States and
Political Subdivisions
(FTE)
46,198
358
3.10
%
Total Debt Securities Held to
Maturity (FTE)
811,170
8,549
4.22
%
Agency Mortgage Backed
Securities
42,622
254
2.38
%
Corporate Securities
738,979
8,028
4.35
%
Obligations of States and
Political Subdivisions
(FTE)
29,569
267
3.61
%
Equity Securities (FTE)
14,600
475
13.02
%
Total Interest-Bearing Cash
466,381
4,256
3.65
%
Interest Expense Paid:
Total Earning Assets
5,644,066
3,295
0.24
%
Total Interest-Bearing
Liabilities
2,754,298
3,295
0.49
%
Total Interest-Bearing
Deposits
2,616,105
