Financial Performance - Net income for the three months ended September 30, 2025, was $28,263 thousand, a decrease of 19.4% compared to $35,057 thousand for the same period in 2024[19] - Net income for the nine months ended September 30, 2025, was $88,366,000, a decrease from $106,936,000 in the same period of 2024, representing a decline of approximately 17%[26] - Basic earnings per share for the three months ended September 30, 2025, were $1.12, down from $1.31 in the same period of 2024, representing a decrease of 14.5%[19] - Total comprehensive income for the three months ended September 30, 2025, was $45,097 thousand, a decrease of 56.9% compared to $104,704 thousand for the same period in 2024[21] - Total interest and loan fee income for the nine months ended September 30, 2025, was $174,192 thousand, down 15.3% from $205,612 thousand in the same period of 2024[19] - Noninterest income for the three months ended September 30, 2025, was $10,151 thousand, a decrease of 6.5% compared to $11,925 thousand for the same period in 2024[19] - Total noninterest expense for the nine months ended September 30, 2025, was $76,456 thousand, a decrease of 2.7% from $78,538 thousand in the same period in 2024[19] Assets and Liabilities - Total assets decreased to $5,914,438 thousand as of September 30, 2025, down from $6,076,274 thousand at December 31, 2024, representing a decline of approximately 2.68%[17] - Total deposits decreased to $4,793,179 thousand as of September 30, 2025, down from $5,011,850 thousand at December 31, 2024, reflecting a decline of approximately 4.36%[17] - Total cash and due from banks at the end of the period was $659,268,000, compared to $502,945,000 at the end of the previous year, indicating an increase of about 31%[26] - The carrying value of the Company's debt securities pledged was $1,858,958 thousand, down from $2,049,954 thousand as of December 31, 2024, indicating a decrease of approximately 9.3%[62] - The balance of common stock outstanding decreased from 26,708,000 shares on December 31, 2024, to 25,107,000 shares on September 30, 2025, a reduction of approximately 6%[23] Credit Losses and Allowances - The allowance for credit losses on loans was $11,859 thousand as of September 30, 2025, compared to $14,780 thousand at December 31, 2024, indicating a reduction of approximately 19.5%[17] - The total allowance for credit losses at the end of the period was $11,859 thousand, with a beginning balance of $13,787 thousand, indicating a reduction of approximately 14.0%[70] - The allowance for credit losses for commercial real estate loans decreased due to lower loan balances, resulting in a reduction in estimated credit losses over the remaining life of such loans[73] - The Company maintains a separate allowance for credit losses from off-balance sheet credit exposures, which includes letters of credit and unfunded loan commitments[48] Dividends - The company declared dividends of $0.46 per share for the three months ended September 30, 2025, compared to $0.44 per share in the same period of 2024, reflecting an increase of 4.5%[19] - The company paid dividends of $35,473,000 for the nine months ended September 30, 2025, consistent with the previous year's payment of $35,216,000[26] Loans and Credit Quality - The total outstanding loans decreased to $741,579 thousand as of September 30, 2025, from $820,300 thousand as of December 31, 2024, reflecting a decline of approximately 9.6%[70] - The total loans reported as past due (30-59 days) amounted to $2,463 thousand as of September 30, 2025[75] - The company’s Loan Review Department performs continuous evaluations of loans throughout the year to assess credit risk[74] - The credit risk profile showed total loans of $741,579 thousand, with $728,110 thousand classified as "pass" grade[75] - The company did not make any loan modifications for borrowers experiencing financial difficulty during the three and nine months ended September 30, 2025[77] Debt Securities - The Company classifies its debt securities into three categories: trading, available for sale, and held to maturity, with held to maturity securities recorded at cost adjusted for amortization[31] - As of September 30, 2025, total debt securities available for sale amounted to $3,447,173, with a fair value of $3,305,324, reflecting unrealized losses of $143,218[55] - The total debt securities held to maturity included $740,545 in corporate securities, with a fair value of $733,797, showing a decline due to market conditions[55] - The company does not intend to sell any debt securities available for sale with material unrealized losses, indicating a long-term holding strategy[59] Market Conditions and Risks - The company continues to evaluate the impacts of inflation and monetary policy on its operations, highlighting ongoing risks in the banking industry[29] - The company anticipates that future declines in fair values of debt securities could occur if market conditions worsen, including rising interest rates and deteriorating economic conditions[61] - The company continuously monitors interest rate changes and credit ratings, which are critical factors affecting the fair value of its debt securities[61] Other Assets and Liabilities - Total other assets decreased from $280,885 thousand at December 31, 2024, to $246,074 thousand at September 30, 2025[90] - Goodwill remained unchanged at $121,673 thousand as of September 30, 2025, with no impairment recognized during the reporting periods[89] - The Company had access to borrowing from the Federal Reserve up to $647,776 thousand based on collateral pledged as of September 30, 2025[102]

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[Executive Summary & Company Overview](index=1&type=section&id=Executive%20Summary%20%26%20Company%20Overview) Westamerica Bancorporation reported Q3 2025 net income of $28.3 million and diluted EPS of $1.12, maintaining low operating costs and strong capital ratios while executing share repurchases and dividends - Westamerica Bancorporation reported Q3 2025 net income of **$28.3 million** and diluted EPS of **$1.12**, slightly down from Q2 2025[1](index=1&type=chunk)[2](index=2&type=chunk) - The company emphasized its low-cost operating principles, with an annualized cost of funding at **0.26%** and no provision for credit losses[1](index=1&type=chunk)[2](index=2&type=chunk) - Capital ratios remain high, and the company executed share repurchases and paid dividends[1](index=1&type=chunk)[2](index=2&type=chunk) Q3 2025 Key Financial Highlights | Metric | Q3 2025 | Q2 2025 | Change (QoQ) | | :------------------------------------ | :------ | :------ | :----------- | | Net Income | $28.3 million | $29.1 million | -2.8% | | Diluted EPS | $1.12 | $1.12 | 0.0% | | Annualized Cost of Funding | 0.26% | 0.22% | +0.04 pp | | Provision for Credit Losses | $0 | $0 | 0.0% | | Nonperforming Assets (Sept 30, 2025) | $2.6 million | - | - | | Allowance for Credit Losses on Loans (Sept 30, 2025) | $11.9 million | - | - | | Operating Costs as % of Revenue | 40% | - | - | | Annualized Return on Average Common Equity | 10.9% | - | - | | Dividend Paid Per Common Share | $0.46 | - | - | | Common Shares Retired | 488 thousand | - | - | | Net Interest Income (FTE) | $53.8 million | $54.6 million | -1.5% | | Noninterest Income | $10.2 million | $10.3 million | -1.0% | | Noninterest Expense | $25.8 million | $25.5 million | +1.2% | | Income Tax Provision (FTE) | $10.0 million | $10.3 million | -2.9% | [Forward-Looking Information](index=1&type=section&id=FORWARD-LOOKING%20INFORMATION) This section serves as a disclaimer regarding forward-looking statements, highlighting inherent risks and uncertainties without commitment to future updates - This section serves as a disclaimer, stating that the press release may contain forward-looking statements, which are subject to various risks and uncertainties beyond the company's control[6](index=6&type=chunk)[7](index=7&type=chunk)[8](index=8&type=chunk) - The company clarifies that it does not undertake to update these statements[6](index=6&type=chunk)[7](index=7&type=chunk)[8](index=8&type=chunk) - Forward-looking statements are identified by specific terminology such as 'believe,' 'expect,' 'anticipate,' 'intend,' 'plan,' 'estimate,' or future/conditional verbs like 'will,' 'would,' 'should,' 'could,' or 'may'[6](index=6&type=chunk) - Key risk factors include credit, interest rate, operational, liquidity, and market risks, as well as changes in business and economic conditions, competition, fiscal and monetary policies, cybersecurity risks, and legislative changes[7](index=7&type=chunk) [Financial Highlights](index=2&type=section&id=WESTAMERICA%20BANCORPORATION%20FINANCIAL%20HIGHLIGHTS) This comprehensive section provides detailed financial performance and position data for Westamerica Bancorporation, covering net income, interest income, asset and liability composition, credit quality, liquidity, and capital, presenting both quarterly and year-to-date comparisons, highlighting key trends and ratios [Net Income Summary](index=2&type=section&id=1.%20Net%20Income%20Summary.) Westamerica Bancorporation's net income for Q3 2025 decreased by 19.4% YoY to $28.3 million, and by 2.8% QoQ, with diluted EPS also seeing a 14.5% YoY decline to $1.12, remaining flat QoQ, and year-to-date net income at $88.4 million, down 17.4% from the prior year Q3 2025 Net Income Summary and Operating Ratios | Metric | Q3'2025 (in thousands) | Q3'2024 (in thousands) | % Change (YoY) | Q2'2025 (in thousands) | % Change (QoQ) | | :----------------------------- | :------ | :------ | :-------------- | :------ | :-------------- | | Net Income | $28,263 | $35,057 | -19.4% | $29,066 | -2.8% | | Diluted Earnings Per Common Share | $1.12 | $1.31 | -14.5% | $1.12 | 0.0% | | 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 | 0.0% | | Common Dividend Payout Ratio | 41% | 33% | - | 41% | - | 9/30'25YTD Net Income Summary and Operating Ratios | Metric | 9/30'25YTD (in thousands) | 9/30'24YTD (in thousands) | % Change (YoY) | | :----------------------------- | :--------- | :--------- | :-------------- | | Net Income | $88,366 | $106,936 | -17.4% | | 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% | - | [Net Interest Income](index=3&type=section&id=2.%20Net%20Interest%20Income.) Net interest and loan fee income (FTE) for Q3 2025 was $53.8 million, a 13.8% decrease YoY and a 1.3% decrease QoQ, driven by a 15.6% YoY decline in interest and loan fee income, despite a 35.4% YoY reduction in interest expense, with the net interest margin (FTE) decreasing to 3.80% from 4.08% YoY and 3.85% QoQ Q3 2025 Net Interest Income (FTE) | Metric | Q3'2025 (in thousands) | Q3'2024 (in thousands) | % Change (YoY) | Q2'2025 (in thousands) | % Change (QoQ) | | :----------------------------- | :------ | :------ | :-------------- | :------ | :-------------- | | Interest and Loan Fee Income (FTE) | $57,491 | $68,110 | -15.6% | $57,751 | -0.4% | | Interest Expense | 3,645 | 5,645 | -35.4% | 3,189 | 14.3% | | Net Interest and Loan Fee Income (FTE) | $53,846 | $62,465 | -13.8% | $54,562 | -1.3% | | 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% | - | 9/30'25YTD Net Interest Income (FTE) | Metric | 9/30'25YTD (in thousands) | 9/30'24YTD (in thousands) | % Change (YoY) | | :----------------------------- | :--------- | :--------- | :-------------- | | 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% | | 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% | - | [Loans & Other Earning Assets](index=4&type=section&id=3.%20Loans%20%26%20Other%20Earning%20Assets.) Total earning assets decreased by 7.3% YoY and 0.5% QoQ in Q3 2025, with total loans declining by 10.5% YoY, primarily driven by a 28.7% decrease in consumer loans and a 16.9% decrease in commercial loans, while total investment securities also fell by 11.8% YoY, and total interest-bearing cash significantly increased by 42.0% YoY Q3 2025 Loans & Other Earning Assets (Average Volume) | Metric | Q3'2025 (in thousands) | Q3'2024 (in thousands) | % Change (YoY) | Q2'2025 (in thousands) | % Change (QoQ) | | :----------------------------- | :-------- | :-------- | :-------------- | :-------- | :-------------- | | Total Assets | $6,018,937 | $6,461,843 | -6.9% | $6,042,100 | -0.4% | | Total Earning Assets | 5,621,797 | 6,062,174 | -7.3% | 5,652,443 | -0.5% | | Total Loans | 744,046 | 831,418 | -10.5% | 762,216 | -2.4% | | Commercial Loans | 113,215 | 136,160 | -16.9% | 115,943 | -2.3% | | Commercial Real Estate Loans | 486,751 | 493,272 | -1.3% | 488,960 | -0.4% | | Consumer Loans | 144,080 | 201,986 | -28.7% | 157,313 | -8.4% | | Total Investment Securities | 4,175,230 | 4,736,024 | -11.8% | 4,236,303 | -1.4% | | Total Interest-Bearing Cash | 702,521 | 494,732 | 42.0% | 653,924 | 7.4% | | Loans / Deposits | 15.5% | 16.3% | - | 15.7% | - | 9/30'25YTD Loans & Other Earning Assets (Average Volume) | Metric | 9/30'25YTD (in thousands) | 9/30'24YTD (in thousands) | % Change (YoY) | | :----------------------------- | :--------- | :--------- | :-------------- | | 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% | | Total Interest-Bearing Cash | 655,601 | 342,367 | 91.5% | | Loans / Deposits | 15.7% | 16.1% | - | [Deposits, Other Interest-Bearing Liabilities & Equity](index=5&type=section&id=4.%20Deposits%2C%20Other%20Interest-Bearing%20Liabilities%20%26%20Equity.) Total deposits decreased by 5.6% YoY and 0.7% QoQ in Q3 2025, with noninterest demand deposits seeing the largest YoY decline of 9.2%, while total short-term borrowings significantly decreased by 57.8% YoY, primarily due to the absence of Bank Term Funding Program Borrowings in Q3 2025 compared to Q3 2024, and shareholders' equity increased by 1.0% YoY Q3 2025 Deposits, Other Interest-Bearing Liabilities & Equity (Average Volume) | Metric | Q3'2025 (in thousands) | Q3'2024 (in thousands) | % Change (YoY) | Q2'2025 (in thousands) | % Change (QoQ) | | :----------------------------- | :-------- | :-------- | :-------------- | :-------- | :-------------- | | Total Deposits | $4,806,568 | $5,092,244 | -5.6% | $4,841,803 | -0.7% | | Noninterest Demand | 2,201,644 | 2,425,646 | -9.2% | 2,245,077 | -1.9% | | Interest-Bearing Transaction | 895,504 | 937,694 | -4.5% | 908,367 | -1.4% | | Savings | 1,636,259 | 1,639,997 | -0.2% | 1,611,845 | 1.5% | | Total Short-Term Borrowings | 119,586 | 283,495 | -57.8% | 96,779 | 23.6% | | Bank Term Funding Program Borrowings | - | 167,391 | n/m | - | n/m | | Shareholders' Equity | 1,026,618 | 1,016,642 | 1.0% | 1,037,185 | -1.0% | | Demand Deposits / Total Deposits | 45.8% | 47.6% | - | 46.4% | - | 9/30'25YTD Deposits, Other Interest-Bearing Liabilities & Equity (Average Volume) | Metric | 9/30'25YTD (in thousands) | 9/30'24YTD (in thousands) | % Change (YoY) | | :----------------------------- | :--------- | :--------- | :-------------- | | 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% | | Total Short-Term Borrowings | 107,045 | 225,735 | -52.6% | | Bank Term Funding Program Borrowings | - | 143,412 | n/m | [Interest Yields Earned & Rates Paid](index=6&type=section&id=5.%20Interest%20Yields%20Earned%20%26%20Rates%20Paid.) In Q3 2025, the yield on total earning assets (FTE) was 4.06%, a decrease from 4.45% in Q3 2024, with the cost of funds decreasing to 0.26% from 0.37% YoY, while yields on loans remained relatively stable YoY, yields on investment securities decreased, and interest expense paid on total interest-bearing liabilities also decreased significantly YoY Q3 2025 Interest & Loan Fee Income Earned (FTE) | Category | Average Volume (in thousands) | Income/Expense (in thousands) | Yield (a) / Rate (a) | | :----------------------------- | :------------- | :------------- | :------------------- | | Total Earning Assets (FTE) | $5,621,797 | $57,491 | 4.06% | | Total Loans (FTE) | 744,046 | 10,321 | 5.51% | | Total Investment Securities (FTE) | 4,175,230 | 39,330 | 3.75% | | Total Interest-Bearing Cash | 702,521 | 7,840 | 4.37% | Q3 2025 Interest Expense Paid | Category | Average Volume (in thousands) | Income/Expense (in thousands) | Yield (a) / Rate (a) | | :----------------------------- | :------------- | :------------- | :------------------- | | 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% | | Total Short-Term Borrowings | 119,586 | 192 | 0.64% | Q3 2024 Interest & Loan Fee Income Earned (FTE) | Category | Average Volume (in thousands) | Income/Expense (in thousands) | Yield (a) / Rate (a) | | :----------------------------- | :------------- | :------------- | :------------------- | | Total Earning Assets (FTE) | $6,062,174 | $68,110 | 4.45% | | Total Loans (FTE) | 831,418 | 11,526 | 5.52% | | Total Investment Securities (FTE) | 4,736,024 | 49,822 | 4.17% | | Total Interest-Bearing Cash | 494,732 | 6,762 | 5.35% | Q3 2024 Interest Expense Paid | Category | Average Volume (in thousands) | Income/Expense (in thousands) | Yield (a) / Rate (a) | | :----------------------------- | :------------- | :------------- | :------------------- | | 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% | | Total Short-Term Borrowings | 283,495 | 2,532 | 3.54% | | Bank Term Funding Program Borrowings | 167,391 | 2,278 | 5.40% | [Noninterest Income](index=8&type=section&id=6.%20Noninterest%20Income.) Total noninterest income for Q3 2025 was $10.2 million, a 14.9% decrease YoY and a 1.6% decrease QoQ, primarily due to a significant 70.2% YoY drop in "Other Noninterest Income" and the absence of Bank Owned Life Insurance Gains, though Merchant Processing Services showed strong 15.6% YoY growth Q3 2025 Noninterest Income | Metric | Q3'2025 (in thousands) | Q3'2024 (in thousands) | % Change (YoY) | Q2'2025 (in thousands) | % Change (QoQ) | | :----------------------------- | :------ | :------ | :-------------- | :------ | :-------------- | | Service Charges on Deposit Accounts | $3,317 | $3,585 | -7.5% | $3,368 | -1.5% | | Merchant Processing Services | 2,860 | 2,474 | 15.6% | 2,687 | 6.4% | | Debit Card Fees | 1,603 | 1,702 | -5.8% | 1,664 | -3.7% | | Trust Fees | 895 | 846 | 5.8% | 867 | 3.2% | | Bank Owned Life Insurance Gains | - | 202 | n/m | 106 | n/m | | Other Noninterest Income | 635 | 2,129 | -70.2% | 691 | -8.1% | | Total Noninterest Income | $10,151 | $11,925 | -14.9% | $10,315 | -1.6% | 9/30'25YTD Noninterest Income | Metric | 9/30'25YTD (in thousands) | 9/30'24YTD (in thousands) | % Change (YoY) | | :----------------------------- | :--------- | :--------- | :-------------- | | Service Charges on Deposit Accounts | $10,066 | $10,524 | -4.4% | | Merchant Processing Services | 8,280 | 7,714 | 7.3% | | Trust Fees | 2,661 | 2,451 | 8.6% | | ATM Processing Fees | 1,428 | 1,664 | -14.2% | | Other Noninterest Income | 2,059 | 3,674 | -44.0% | | Total Noninterest Income | $30,787 | $32,522 | -5.3% | [Noninterest Expense](index=9&type=section&id=7.%20Noninterest%20Expense.) Total noninterest expense for Q3 2025 was $25.8 million, a modest 1.9% decrease YoY but a 1.1% increase QoQ, with Professional Fees seeing a significant 90.8% YoY increase, while Limited Partnership Operating Losses decreased by 24.4% YoY Q3 2025 Noninterest Expense | Metric | Q3'2025 (in thousands) | Q3'2024 (in thousands) | % Change (YoY) | Q2'2025 (in thousands) | % Change (QoQ) | | :----------------------------- | :------ | :------ | :-------------- | :------ | :-------------- | | Salaries and Related Benefits | $12,387 | $12,762 | -2.9% | $12,303 | 0.7% | | Occupancy and Equipment | 5,253 | 5,256 | -0.1% | 5,154 | 1.9% | | Outsourced Data Processing | 2,722 | 2,614 | 4.1% | 2,709 | 0.5% | | Limited Partnership Operating Losses | 915 | 1,210 | -24.4% | 915 | 0.0% | | Professional Fees | 643 | 337 | 90.8% | 386 | 66.6% | | Total Noninterest Expense | $25,800 | $26,309 | -1.9% | $25,529 | 1.1% | | Noninterest Expense / Revenues (FTE) | 40.3% | 35.4% | - | 39.3% | - | 9/30'25YTD Noninterest Expense | Metric | 9/30'25YTD (in thousands) | 9/30'24YTD (in thousands) | % Change (YoY) | | :----------------------------- | :--------- | :--------- | :-------------- | | Salaries and Related Benefits | $36,816 | $37,831 | -2.7% | | 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% | | Total Noninterest Expense | $76,456 | $78,538 | -2.7% | | Noninterest Expense / Revenues (FTE) | 39.1% | 34.9% | - | [Allowance for Credit Losses](index=9&type=section&id=8.%20Allowance%20for%20Credit%20Losses.) The Allowance for Credit Losses on Loans (ACLL) at the end of Q3 2025 was $11.9 million, a 22.6% decrease YoY and a 13.9% decrease QoQ, with no provision for credit losses recognized in Q3 2025, consistent with prior periods, while net ACLL Losses significantly increased YoY and QoQ Q3 2025 Allowance for Credit Losses on Loans (ACLL) | Metric | Q3'2025 (in thousands) | Q3'2024 (in thousands) | % Change (YoY) | Q2'2025 (in thousands) | % Change (QoQ) | | :----------------------------- | :------ | :------ | :-------------- | :------ | :-------------- | | End of Period ACLL | $11,859 | $15,318 | -22.6% | $13,787 | -13.9% | | Provision for Credit Losses | - | - | n/m | - | n/m | | Net ACLL Losses | (1,928) | (634) | n/m | (127) | n/m | | Net ACLL Losses / Avg. Total Loans (a) | -1.03% | -0.30% | - | -0.07% | - | 9/30'25YTD Allowance for Credit Losses on Loans (ACLL) | Metric | 9/30'25YTD (in thousands) | 9/30'24YTD (in thousands) | % Change (YoY) | | :----------------------------- | :--------- | :--------- | :-------------- | | End of Period ACLL | $11,859 | $15,318 | -22.6% | | (Reversal of) Provision for Credit Losses | (550) | 300 | n/m | | Net ACLL Losses | (2,371) | (1,849) | n/m | | Net ACLL Losses / Avg. Total Loans (a) | -0.41% | -0.29% | - | Allowance for Credit Losses (Period-End) | Metric | 9/30/25 (in thousands) | 9/30/24 (in thousands) | % Change (YoY) | 6/30/25 (in thousands) | % Change (QoQ) | | :----------------------------- | :-------- | :-------- | :-------------- | :-------- | :-------------- | | Allowance for Credit Losses on Loans | $11,859 | $15,318 | -22.6% | $13,787 | -13.9% | | Total Allowance for Credit Losses | $11,860 | $15,319 | -22.6% | $13,788 | -13.9% | [Credit Quality](index=10&type=section&id=9.%20Credit%20Quality.) Total nonperforming loans significantly increased by 187.7% YoY to $2.6 million, primarily driven by a substantial rise in nonperforming nonaccrual loans, however, nonperforming loans decreased by 46.7% QoQ, and the ratio of nonperforming loans to total loans increased YoY but decreased QoQ Credit Quality Metrics | Metric | 9/30/25 (in thousands) | 9/30/24 (in thousands) | % Change (YoY) | 6/30/25 (in thousands) | % Change (QoQ) | | :----------------------------- | :------ | :------ | :-------------- | :------ | :-------------- | | Nonperforming Nonaccrual Loans | $1,619 | $252 | 542.5% | $ - | n/m | | Performing Nonaccrual Loans | 728 | - | n/m | 4,553 | -84.0% | | Total Nonaccrual Loans | 2,347 | 252 | 831.3% | 4,553 | -48.4% | | Accruing Loans 90+ Days Past Due | 297 | 667 | -55.5% | 411 | -27.7% | | Total Nonperforming Loans | $2,644 | $919 | 187.7% | $4,964 | -46.7% | | Total Loans Outstanding | $741,579 | $833,967 | -11.1% | $748,264 | -0.9% | | Allowance for Credit Losses on Loans / Loans | 1.60% | 1.84% | - | 1.84% | - | | Nonperforming Loans / Total Loans | 0.36% | 0.11% | - | 0.66% | - | [Liquidity](index=11&type=section&id=10.%20Liquidity.) As of September 30, 2025, the company maintained $659.3 million in cash balances and had significant debt securities eligible as collateral totaling $3.75 billion, with an estimated $1.97 billion available to pledge, expecting $338 million in principal payments from debt securities over the next twelve months, and had no borrowings from the Federal Reserve Bank or correspondent banks - Cash balances at September 30, 2025, totaled **$659,268 thousand**[28](index=28&type=chunk) - The Company expects to receive **$338,000 thousand** in principal payments from its debt securities during the twelve months ending September 30, 2026[28](index=28&type=chunk) Debt Securities Eligible and Pledged as Collateral (Sept 30, 2025) | Category | Amount (in thousands) | | :------------------------------------ | :-------------------- | | Total Debt Securities Eligible as Collateral | $3,752,853 | | Total Debt Securities Pledged as Collateral | ($1,782,831) | | Estimated Debt Securities Available to Pledge | $1,970,022 | - At September 30, 2025, the Company had **no borrowings** from the Federal Reserve Bank or other correspondent banks[28](index=28&type=chunk) [Capital](index=12&type=section&id=11.%20Capital.) Shareholders' equity increased by 2.5% YoY to $931.6 million at September 30, 2025, with the Shareholders' Equity/Total Assets ratio improving to 15.75% YoY, and the company continued its share repurchase program, retiring 488 thousand common shares in Q3 2025 and 1.62 million shares year-to-date Capital Ratios and Equity Metrics | Metric | 9/30/25 (in thousands) | 9/30/24 (in thousands) | % Change (YoY) | 6/30/25 (in thousands) | % Change (QoQ) | | :----------------------------- | :-------- | :-------- | :-------------- | :-------- | :-------------- | | Shareholders' Equity | $931,646 | $909,040 | 2.5% | $921,783 | 1.1% | | Total Assets | 5,914,438 | 6,161,143 | -4.0% | 5,825,069 | 1.5% | | 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 Equity Per Share | $37.11 | $34.06 | 8.9% | $36.03 | 3.0% | Share Retirements (Issuances) | Metric | Q3'2025 (in thousands) | Q3'2024 (in thousands) | % Change (YoY) | Q2'2025 (in thousands) | % Change (QoQ) | | :----------------------------- | :------ | :------ | :-------------- | :------ | :-------------- | | Total Shares Retired | 488 | - | n/m | 773 | -36.9% | | Average Retirement Price | $48.96 | $ - | n/m | $49.61 | -1.3% | | Net Shares Retired (Issued) | 480 | (3) | n/m | 773 | -37.9% | Share Retirements (Issuances) YTD | Metric | 9/30'25YTD (in thousands) | 9/30'24YTD (in thousands) | % Change (YoY) | | :----------------------------- | :--------- | :--------- | :-------------- | | 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 | [Period-End Balance Sheets](index=13&type=section&id=12.%20Period-End%20Balance%20Sheets.) Total assets decreased by 4.0% YoY to $5.91 billion at September 30, 2025, while total liabilities decreased by 5.1% YoY, cash and due from banks increased significantly by 31.1% YoY, total loans, net of allowance for credit losses, decreased by 10.9% YoY, and total deposits also saw a 5.4% YoY decline Period-End Balance Sheet Highlights | Metric | 9/30/25 (in thousands) | 9/30/24 (in thousands) | % Change (YoY) | 6/30/25 (in thousands) | % Change (QoQ) | | :----------------------------- | :-------- | :-------- | :-------------- | :-------- | :-------------- | | Total Assets | $5,914,438 | $6,161,143 | -4.0% | $5,825,069 | 1.5% | | Cash and Due from Banks | 659,268 | 502,945 | 31.1% | 626,437 | 5.2% | | Total Debt Securities Available for Sale | 3,305,324 | 3,580,486 | -7.7% | 3,226,449 | 2.4% | | Total Debt Securities Held to Maturity | 826,505 | 850,261 | -2.8% | 834,439 | -0.9% | | Total Loans, net | 729,720 | 818,649 | -10.9% | 734,477 | -0.7% | | Total Liabilities | 4,982,792 | 5,252,103 | -5.1% | 4,903,286 | 1.6% | | Total Deposits | 4,793,179 | 5,065,050 | -5.4% | 4,747,535 | 1.0% | | Noninterest-Bearing Deposits | 2,214,100 | 2,375,958 | -6.8% | 2,175,841 | 1.8% | | Total Shareholders' Equity | 931,646 | 909,040 | 2.5% | 921,783 | 1.1% | [Income Statements](index=14&type=section&id=13.%20Income%20Statements.) The income statement for Q3 2025 shows a 15.6% YoY decrease in total interest and loan fee income, primarily from debt securities available for sale, with total interest expense decreasing by 35.4% YoY, largely due to the absence of Bank Term Funding Program Borrowings, and net income declining by 19.4% YoY, while year-to-date figures reflect similar trends with a 15.3% decrease in total interest and loan fee income and a 26.7% decrease in total interest expense Q3 2025 Income Statement Highlights | Metric | Q3'2025 (in thousands) | Q3'2024 (in thousands) | % Change (YoY) | Q2'2025 (in thousands) | % Change (QoQ) | | :----------------------------- | :------ | :------ | :-------------- | :------ | :-------------- | | Total Interest and Loan Fee Income | $57,234 | $67,794 | -15.6% | $57,467 | -0.4% | | Interest Expense: Loans | $10,257 | $11,441 | -10.3% | $10,523 | -2.5% | | Interest Expense: Debt Securities Available for Sale | 30,358 | 40,616 | -25.3% | 30,815 | -1.5% | | Interest Expense: Interest-Bearing Cash | 7,840 | 6,762 | 15.9% | 7,273 | 7.8% | | Total Interest Expense | 3,645 | 5,645 | -35.4% | 3,189 | 14.3% | | Net Interest and Loan Fee Income | 53,589 | 62,149 | -13.8% | 54,278 | -1.3% | | Provision for Credit Losses | - | - | n/m | - | n/m | | Total Noninterest Income | 10,151 | 11,925 | -14.9% | 10,315 | -1.6% | | Total Noninterest Expense | 25,800 | 26,309 | -1.9% | 25,529 | 1.1% | | Net Income | $28,263 | $35,057 | -19.4% | $29,066 | -2.8% | | Diluted Earnings Per Share | $1.12 | $1.31 | -14.5% | $1.12 | 0.0% | 9/30'25YTD Income Statement Highlights | Metric | 9/30'25YTD (in thousands) | 9/30'24YTD (in thousands) | % Change (YoY) | | :----------------------------- | :--------- | :--------- | :-------------- | | Total Interest and Loan Fee Income | $174,192 | $205,612 | -15.3% | | Interest Expense: Loans | $31,449 | $34,119 | -7.8% | | Interest Expense: Debt Securities Available for Sale | 94,376 | 130,345 | -27.6% | | Interest Expense: Interest-Bearing Cash | 21,816 | 14,006 | 55.8% | | 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 | | Total Noninterest Income | 30,787 | 32,522 | -5.3% | | Total Noninterest Expense | 76,456 | 78,538 | -2.7% | | Net Income | $88,366 | $106,936 | -17.4% | | Diluted Earnings Per Share | $3.40 | $4.01 | -15.2% | [Footnotes and Abbreviations](index=17&type=section&id=Footnotes%20and%20Abbreviations) This section defines key financial terms and abbreviations, clarifies reclassifications of prior period amounts, and explains the use of the Fully Taxable Equivalent (FTE) basis for comparability - This section provides definitions for key terms and abbreviations used in the financial report, such as "FTE" (Fully Taxable Equivalent) and "(a)" for annualized figures[39](index=39&type=chunk)[40](index=40&type=chunk)[41](index=41&type=chunk) - It also notes that certain prior period amounts have been reclassified for consistent presentation[39](index=39&type=chunk)[40](index=40&type=chunk)[41](index=41&type=chunk) - Debt Securities Held To Maturity and Obligations of States and Political Subdivisions are presented net of a **$1 thousand** reserve for expected credit losses at September 30, 2025, June 30, 2025, and September 30, 2024[39](index=39&type=chunk) - The Fully Taxable Equivalent (FTE) basis is used for net interest margin and net interest income to reflect the impact of federally tax-exempt municipal loans and securities, enhancing comparability with other banks[40](index=40&type=chunk)

Core Insights - Westamerica Bancorporation reported a net income of $28.3 million for Q3 2025, with diluted earnings per share (EPS) of $1.12, consistent with the previous quarter's EPS but down from $29.1 million in net income [1][2]. Financial Performance - The annualized cost of funding interest-earning loans, bonds, and cash was 0.26% in Q3 2025, up from 0.22% in Q2 2025 [2][3]. - Net interest income on a fully-taxable equivalent (FTE) basis was $53.8 million for Q3 2025, a decrease of 13.8% from $62.5 million in Q3 2024 and slightly down from $54.6 million in Q2 2025 [11][12]. - Noninterest income totaled $10.2 million in Q3 2025, down 14.9% from $10.3 million in Q2 2025 [4][22]. - Noninterest expense was $25.8 million for Q3 2025, a slight increase from $25.5 million in Q2 2025, primarily due to higher salaries and benefits [4][23]. Asset Quality - As of September 30, 2025, nonperforming assets were $2.6 million, with an allowance for credit losses on loans of $11.9 million [2][5]. - The company recognized no provision for credit losses in Q3 2025, indicating stable asset quality [2][11]. Capital Management - Westamerica maintained a historically high capital ratio, exceeding the highest regulatory guidelines [2]. - The company paid a dividend of $0.46 per common share during Q3 2025 and repurchased 488,000 common shares [2][11]. Efficiency Metrics - The efficiency ratio for Q3 2025 was 40.3%, compared to 39.3% in Q2 2025, indicating a slight decline in operational efficiency [11][23]. - The return on average common equity was 10.9% for Q3 2025, down from 11.2% in Q2 2025 [11].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________. Commission file number: 001-09383 WESTAMERICA BANCORPORATION (Exact Name of Registrant as Specified in Its Charter) CALIFORNIA 94-21 ...

Net interest income on a fully-taxable equivalent (FTE) basis was $54.6 million for the second quarter 2025, compared to $56.4 million for the first quarter 2025. The annualized yield earned on loans, bonds and cash for the second quarter 2025 was 4.07 percent, compared to 4.14 percent for the first quarter 2025. The annualized cost of funding interest-earning loans, bonds and cash was 0.22 percent for the second quarter 2025, compared to 0.24 percent for the first quarter 2025. The Company provided no prov ...

Core Insights - Westamerica Bancorporation reported a net income of $29.1 million for Q2 2025, with diluted earnings per share (EPS) of $1.12, a decrease from $31.0 million and $1.16 in Q1 2025 [1][2][10]. Financial Performance - The annualized cost of funding interest-earning loans, bonds, and cash was 0.22% in Q2 2025, down from 0.24% in Q1 2025 [3][4]. - Net interest income on a fully-taxable equivalent (FTE) basis was $54.6 million in Q2 2025, compared to $56.4 million in Q1 2025, reflecting a 14.9% decrease year-over-year [11][12]. - Noninterest income remained stable at $10.3 million for both Q2 2025 and Q1 2025 [4][22]. - Noninterest expenses increased to $25.5 million in Q2 2025 from $25.1 million in Q1 2025, primarily due to higher salaries and benefits [5][23]. Asset Quality - The company recognized no provision for credit losses in Q2 2025, compared to a reversal of $550 thousand in Q1 2025 [4][10]. - Nonperforming assets were reported at $5.0 million as of June 30, 2025, with an allowance for credit losses on loans at $13.8 million [2][4]. Capital Management - Westamerica maintained a high capital ratio, exceeding regulatory guidelines, and paid a dividend of $0.46 per common share during Q2 2025 [2][10]. - The company repurchased 773 thousand common shares as part of its share repurchase plan [2][10]. Operational Efficiency - The efficiency ratio (FTE) was reported at 39.3% for Q2 2025, up from 37.7% in Q1 2025, indicating a slight decline in operational efficiency [11][23]. - The return on average common equity was 11.2% for Q2 2025, down from 11.9% in Q1 2025 [2][11].

Core Viewpoint - Westamerica (WABC) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which are crucial for stock price movements [1][3][5] Earnings Estimates and Revisions - The Zacks Consensus Estimate for Westamerica is projected at $4.50 per share for the fiscal year ending December 2025, reflecting a year-over-year decline of 12.8% [8] - Over the past three months, analysts have increased their earnings estimates for Westamerica by 3.4% [8] Zacks Rating System - The Zacks rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7] - The system maintains a balanced distribution of 'buy' and 'sell' ratings, ensuring that only the top 5% of stocks receive a 'Strong Buy' rating, indicating superior earnings estimate revisions [9][10] Market Implications - The upgrade to Zacks Rank 1 positions Westamerica among the top 5% of stocks covered by Zacks, suggesting potential for higher stock prices in the near term due to improved earnings outlook [10]

PART I - FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201%20Financial%20Statements) This section presents Westamerica Bancorporation's unaudited consolidated financial statements for the quarter ended March 31, 2025, detailing its financial position, performance, and cash flows [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased to $5.97 billion at March 31, 2025, from $6.08 billion at December 31, 2024, primarily due to a reduction in loans and debt securities, while shareholders' equity increased Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $5,966,624 | $6,076,274 | | Loans, net | $757,116 | $805,520 | | Total Deposits | $4,874,095 | $5,011,850 | | Total Liabilities | $5,043,486 | $5,186,317 | | Total Shareholders' Equity | $923,138 | $889,957 | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) For the first quarter of 2025, net income was $31.0 million, a decrease from $36.4 million in the first quarter of 2024, primarily driven by a $9.6 million decrease in net interest and fee income Income Statement Highlights (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Interest and Fee Income | $56,095 | $65,745 | | (Reversal of) Provision for Credit Losses | ($550) | $300 | | Noninterest Income | $10,321 | $10,097 | | Noninterest Expense | $25,127 | $26,099 | | Net Income | $31,037 | $36,417 | | Diluted Earnings Per Share | $1.16 | $1.37 | [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Total comprehensive income for Q1 2025 was $62.4 million, a significant increase from $29.8 million in Q1 2024, driven by a positive change in net unrealized losses on debt securities available for sale Comprehensive Income (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income | $31,037 | $36,417 | | Other Comprehensive Income (Loss), net of tax | $31,336 | ($6,575) | | **Total Comprehensive Income** | **$62,373** | **$29,842** | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the three months ended March 31, 2025, net cash provided by operating activities was $42.4 million, and net cash provided by investing activities was $258.3 million, resulting in a net increase in cash and due from banks of $125.8 million Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $42,394 | $52,212 | | Net Cash Provided by Investing Activities | $258,283 | $130,839 | | Net Cash (Used in) Provided by Financing Activities | ($174,835) | $60,885 | | **Net Change In Cash and Due from Banks** | **$125,842** | **$243,936** | [Notes to Unaudited Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) This section provides detailed disclosures on accounting policies and specific financial statement items, including investment securities, loan portfolio, allowance for credit losses, deposits, borrowings, fair value measurements, and commitments [Note 3: Investment Securities](index=12&type=section&id=Note%203%3A%20Investment%20Securities) The investment securities portfolio totaled $4.1 billion at fair value as of March 31, 2025, primarily composed of corporate securities and collateralized loan obligations, with unrealized losses mainly due to higher market interest rates Investment Securities Portfolio (Amortized Cost, in thousands) | Security Type | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Debt securities available for sale | $3,430,221 | $3,634,471 | | Debt securities held to maturity | $839,349 | $844,635 | | **Total** | **$4,269,570** | **$4,479,106** | - Unrealized losses on debt securities were primarily caused by market conditions, specifically **higher interest rates**, not credit deterioration. All collateralized loan obligations, municipal, and corporate securities were **investment grade** at March 31, 2025[57](index=57&type=chunk) - The company does not intend to sell any debt securities available for sale with a material unrealized loss and believes it is more likely than not that it will not be required to sell them prior to recovery of the amortized cost basis[58](index=58&type=chunk) [Note 4: Loans, Allowance for Credit Losses, and OREO](index=19&type=section&id=Note%204%3A%20Loans%2C%20Allowance%20for%20Credit%20Losses%20and%20Other%20Real%20Estate%20Owned) Total loans decreased to $771.0 million at March 31, 2025, with the allowance for credit losses at 1.80% of total loans, and a net reversal of provision recorded in Q1 2025 Loan Portfolio Composition (in thousands) | Loan Category | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Commercial | $111,888 | $127,276 | | Commercial real estate | $489,612 | $507,900 | | Consumer installment & other | $156,405 | $171,786 | | **Total Loans** | **$771,030** | **$820,300** | Allowance for Credit Losses Activity - Q1 2025 (in thousands) | Activity | Amount | | :--- | :--- | | Beginning Balance (Jan 1, 2025) | $14,780 | | (Reversal) provision | ($550) | | Charge-offs | ($1,726) | | Recoveries | $1,410 | | **Ending Balance (Mar 31, 2025)** | **$13,914** | - As of March 31, 2025, there were **no loans on nonaccrual status**, a decrease from $201 thousand at year-end 2024. The company held **no Other Real Estate Owned (OREO)**[72](index=72&type=chunk)[81](index=81&type=chunk) [Note 8: Deposits and Borrowed Funds](index=29&type=section&id=Note%208%3A%20Deposits%20and%20Borrowed%20Funds) Total deposits decreased to $4.87 billion at March 31, 2025, with noninterest-bearing deposits comprising 46% of the total, and no outstanding borrowings from available credit lines Deposit Composition (in thousands) | Deposit Type | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Noninterest-bearing | $2,241,802 | $2,333,389 | | Interest-bearing | $2,632,293 | $2,678,461 | | **Total Deposits** | **$4,874,095** | **$5,011,850** | - At March 31, 2025, the Company had access to borrowing from the Federal Reserve up to **$725 million** and a **$60 million** line of credit with a correspondent bank, with **no outstanding balances** on either[97](index=97&type=chunk) [Management's Discussion and Analysis (MD&A)](index=36&type=section&id=Item%202%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the financial results for Q1 2025, highlighting a decrease in net income due to lower net interest income and a compressed net interest margin, while affirming strong capital ratios and liquidity Key Financial Performance Metrics | Metric | Q1 2025 | Q1 2024 | Q4 2024 | | :--- | :--- | :--- | :--- | | Net Income (in millions) | $31.0 | $36.4 | $31.7 | | Diluted EPS | $1.16 | $1.37 | $1.19 | | Return On Assets (ROA) | 2.03% | 2.24% | 2.02% | | Return On Common Equity (ROE) | 11.92% | 15.17% | 12.14% | | Net Interest Margin (FTE) | 3.90% | 4.30% | 4.01% | [Net Interest Income and Margin](index=40&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income (FTE) decreased by $9.7 million year-over-year in Q1 2025, leading to a net interest margin compression to 3.90%, primarily due to lower asset yields and higher deposit rates - The decrease in net interest income compared to Q1 2024 was due to **lower average balances of investment securities** (down **$703 million**) and **loans** (down **$64 million**), **lower yields on securities and cash**, and **higher rates on deposits**[131](index=131&type=chunk) - The annualized net interest margin (FTE) was **3.90%** in Q1 2025, down from **4.30%** in Q1 2024 and **4.01%** in Q4 2024[133](index=133&type=chunk) [Loan Portfolio and Credit Risk](index=51&type=section&id=Loan%20Portfolio%20and%20Credit%20Risk) The company maintains a conservative credit risk approach, with very low nonperforming loans and an adequate allowance for credit losses at 1.80% of total loans, recording a reversal of provision in Q1 2025 Nonperforming Loans (in thousands) | Status | March 31, 2025 | March 31, 2024 | Dec 31, 2024 | | :--- | :--- | :--- | :--- | | Total nonaccrual loans | $0 | $958 | $201 | | Accruing loans 90+ days past due | $277 | $525 | $534 | | **Total nonperforming loans** | **$277** | **$1,483** | **$735** | - The allowance for credit losses as a percentage of total loans was **1.80%** at March 31, 2025, consistent with the **1.80%** at year-end 2024[189](index=189&type=chunk) [Liquidity and Capital Resources](index=59&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity, primarily from a stable deposit base, and robust capital ratios significantly exceeding regulatory minimums, while also engaging in dividends and stock repurchases - At March 31, 2025, estimated federally uninsured deposits totaled **$2.36 billion**[212](index=212&type=chunk) - During Q1 2025, the company paid dividends of **$0.44 per share** (totaling **$12 million**) and retired **361 thousand shares** of common stock for **$18 million**[217](index=217&type=chunk)[219](index=219&type=chunk) Company Capital Ratios (March 31, 2025) | Ratio | Company Actual | Required for Adequacy | | :--- | :--- | :--- | | Common Equity Tier I Capital | 23.33% | 7.00% | | Tier I Capital | 23.33% | 8.50% | | Total Capital | 23.68% | 10.50% | | Leverage Ratio | 15.47% | 4.00% | [Quantitative and Qualitative Disclosures about Market Risk](index=52&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company identifies credit and interest rate risk as its most significant market risks, which are discussed in the MD&A, and does not use derivative instruments for trading or risk management - The company identifies **credit risk** and **interest rate risk** as its most significant market risks[224](index=224&type=chunk) - The company does not engage in trading activities or use derivative instruments to manage interest rate risk[223](index=223&type=chunk) [Controls and Procedures](index=52&type=section&id=Item%204%20Controls%20and%20Procedures) The company's disclosure controls and procedures were deemed effective as of March 31, 2025, with no material changes to internal control over financial reporting identified during the quarter - Management concluded that the Company's disclosure controls and procedures are **effective**[227](index=227&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=62&type=section&id=Item%201%20Legal%20Proceedings) The company is subject to various legal cases in the ordinary course of business but does not expect them to materially affect its financial position or results of operations - The company is not a party to any material pending legal proceedings outside of the ordinary course of business[228](index=228&type=chunk) [Issuer Purchases of Equity Securities](index=63&type=section&id=Item%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In March 2025, the company repurchased 356 thousand shares of common stock under a new program authorizing up to 2 million shares through March 31, 2026 - A new stock repurchase plan was approved on February 27, 2025, authorizing the purchase of up to **2,000,000 shares**[233](index=233&type=chunk) Share Repurchases in Q1 2025 | Period | Shares Purchased | Average Price Paid | | :--- | :--- | :--- | | Jan 2025 | N/A | N/A | | Feb 2025 | 0 | $0.00 | | Mar 2025 | 356,000 | $50.44 | | **Total Q1** | **356,000** | **$50.44** |

Core Points - Westamerica Bancorporation declared a quarterly cash dividend of $0.46 per share, marking a two cent increase from the previous quarter, payable on May 16, 2025, to shareholders of record by May 5, 2025 [1][2] - The company reported a net income of $31.0 million for the three months ending March 31, 2025, translating to $1.16 diluted earnings per common share [2] Financial Performance - The increase in the quarterly dividend reflects Westamerica's reliable earnings stream, financial strength, and conservative risk profile as stated by Chairman, President, and CEO David Payne [2] - The reported net income of $31.0 million indicates a stable financial performance for the company in the recent quarter [2] Company Overview - Westamerica Bancorporation operates through its wholly owned subsidiary, Westamerica Bank, providing banking and trust services across Northern and Central California [2]