"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 Bancorporation1108 Fifth Avenue, San Rafael, CA 94901Anela Jonas, Investor Relations
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
