Financial Performance - Net income for the three months ended September 30, 2022, was $34,760 thousand, an increase of 57.5% compared to $22,063 thousand for the same period in 2021[17]. - Basic earnings per share for the three months ended September 30, 2022, were $1.29, up from $0.82 in the same period of 2021, marking a growth of 57.3%[17]. - Net income for the nine months ended September 30, 2022, was $82.69 million, an increase from $64.79 million in the same period of 2021, representing a growth of approximately 27.5%[25]. - Noninterest income increased to $11,818 thousand for the three months ended September 30, 2022, compared to $11,282 thousand in the same period of 2021, reflecting a growth of 4.8%[17]. - Total interest and loan fee income rose to $60,802 thousand for the three months ended September 30, 2022, up 38.8% from $43,810 thousand in the same period of 2021[17]. Asset and Equity Changes - Total assets decreased to $7,177,025 thousand as of September 30, 2022, down from $7,461,026 thousand at December 31, 2021, representing a decline of approximately 3.8%[14]. - The company's total shareholders' equity decreased to $538,988 thousand as of September 30, 2022, down from $827,102 thousand at December 31, 2021, a decline of approximately 34.8%[14]. - Total deposits grew to $6,495,256 thousand as of September 30, 2022, compared to $6,413,956 thousand at December 31, 2021, indicating an increase of approximately 1.3%[14]. - Total cash and due from banks at the end of the period was $413.67 million, down from $1.01 billion at the beginning of the period, indicating a decrease of about 61.2%[25]. Credit Loss and Loan Performance - The allowance for credit losses decreased to $21,218 thousand at September 30, 2022, from $23,514 thousand at December 31, 2021, indicating improved credit quality[14]. - The provision for credit losses remained at $0 for the three months ended September 30, 2022, consistent with the same period in 2021[17]. - The total loans amounted to $979,033,000, with $971,241,000 classified as current and past due and accruing[74]. - The credit risk profile showed that $963,089,000 of loans were assigned a "pass" grade, indicating minimal likelihood of loss[71]. - The company reported a total of $14,235,000 in loans classified as substandard, with $739,000 classified as doubtful and $970,000 as loss[71]. Investment Securities - The total amortized cost of debt securities available for sale was $4,789,181 thousand, with a fair value of $4,376,331 thousand, reflecting unrealized losses of $414,485 thousand[50]. - The total amortized cost of debt securities held to maturity was $936,274 thousand, with a fair value of $878,462 thousand, resulting in unrealized losses of $57,861 thousand[51]. - The company holds $2,491,591 thousand in corporate securities, with unrealized losses of $354,168 thousand as of September 30, 2022[50]. - The company utilizes third-party sources to value its investment securities, classifying them as Level 1, Level 2, or Level 3 based on the reliability of the pricing information[30]. Cash Flow and Dividends - Net cash provided by operating activities for the nine months ended September 30, 2022, was $71.88 million, compared to $71.13 million in 2021, showing a slight increase of 1.1%[25]. - Total dividends paid during the nine months ended September 30, 2022, amounted to $33.88 million, compared to $33.02 million in 2021, reflecting an increase of approximately 2.6%[25]. - The company experienced a net cash used in investing activities of $770.32 million for the nine months ended September 30, 2022, compared to $268.66 million in 2021, indicating a substantial increase in investment outflows[25]. Loan Commitments and Other Assets - The company had loan commitments related to real estate loans amounting to $33,342 thousand at September 30, 2022, compared to $34,226 thousand at December 31, 2021, a decline of approximately 2.6%[87]. - Total other assets rose significantly to $340,874 thousand at September 30, 2022, compared to $185,415 thousand at December 31, 2021, marking an increase of approximately 83.9%[88]. - The net deferred tax asset increased to $139,887 thousand as of September 30, 2022, from a net deferred tax liability of $2,501 thousand at December 31, 2021[88]. Risk Management and Compliance - The Company maintains a separate allowance for credit losses from off-balance-sheet credit exposures, which is included within other liabilities[47]. - The Company follows guidance from the Federal Reserve when performing investment security pre-purchase analysis or evaluating investment securities for credit loss[31]. - The Loan Review Department conducts continuous evaluations of loans, ensuring that credit risk grades are promptly re-evaluated if borrower performance deteriorates[70]. - The company maintains a proactive approach to credit risk management, with independent evaluations performed by the Loan Review Department[70].

Financial Performance - Net income for the three months ended June 30, 2022, was $25,314 thousand, an increase of 7.7% compared to $22,579 thousand for the same period in 2021[19]. - Net income for the six months ended June 30, 2022, was $47,930,000, an increase from $42,726,000 in the same period of 2021, representing a growth of approximately 5.1%[28]. - Basic earnings per share for the three months ended June 30, 2022, were $0.94, up from $0.84 in the same period of 2021, representing a growth of 11.9%[19]. - The company reported a comprehensive loss of $99,725,000 for the period ending June 30, 2022, compared to a comprehensive loss of $237,689,000 for the same period in 2021, showing an improvement[28]. - The company recognized an investment loss of $600 thousand for the three months ended June 30, 2022, compared to a loss of $1,431 thousand for the same period in 2021[90]. Assets and Liabilities - Total assets decreased to $7,222,405 thousand as of June 30, 2022, down from $7,461,026 thousand at December 31, 2021, representing a decline of approximately 3.2%[16]. - Total liabilities decreased from $6,633,924 thousand at December 31, 2021, to $6,605,279 thousand at June 30, 2022, a reduction of approximately 0.4%[16]. - Shareholders' equity decreased to $617,126 thousand as of June 30, 2022, down from $827,102 thousand at December 31, 2021, reflecting a decline of approximately 25.4%[16]. - Total cash and due from banks at the end of the period was $753,293,000, down from $939,929,000 at the beginning of the period, indicating a decrease of about 19.8%[28]. - Total other assets increased to $289,500 thousand as of June 30, 2022, up from $185,415 thousand at December 31, 2021[86]. Income and Expenses - Total interest and loan fee income rose to $47,997 thousand for the three months ended June 30, 2022, compared to $44,276 thousand in the same period of 2021, marking an increase of 6.1%[19]. - Noninterest income totaled $11,264 thousand for the three months ended June 30, 2022, slightly up from $11,032 thousand in the same period of 2021, reflecting a growth of 2.1%[19]. - Total noninterest expense increased to $24,629 thousand for the three months ended June 30, 2022, compared to $24,291 thousand in the same period of 2021, indicating a rise of 1.4%[19]. - Total dividends paid during the period amounted to $22,576,000, slightly higher than $22,006,000 in the previous year, marking an increase of about 2.6%[28]. - Interest expense for aggregate time deposits with balances over $100 thousand was $40 thousand for the three months ended June 30, 2022, compared to $68 thousand for the same period in 2021, a decrease of approximately 41.2%[98]. Credit Quality and Loan Portfolio - The provision for credit losses remained at $0 for the three months ended June 30, 2022, consistent with the same period in 2021[19]. - The allowance for credit losses at the end of June 30, 2022, was $22,313,000, reflecting a decrease from $23,514,000 at the beginning of the period[70]. - Total loans outstanding as of June 30, 2022, amounted to $999,768,000, a decrease of 6.4% from $1,068,126,000 at the end of June 2021[69]. - The total amount of loans in nonaccrual status was $614 thousand as of June 30, 2022, compared to $692 thousand at December 31, 2021[75]. - The total amount of loans classified as "Substandard" was $410 thousand as of June 30, 2022[80]. Investment Securities - The total amortized cost of debt securities available for sale was $4,874,057 thousand, with a fair value of $4,607,114 thousand, reflecting unrealized losses of $272,754 thousand[54]. - The company reported a gross unrealized loss of $13,562 thousand on agency residential mortgage-backed securities, with a fair value of $330,709 thousand[57]. - Debt securities held to maturity totaled $442,361 thousand at amortized cost, with a fair value of $440,074 thousand, indicating unrealized losses of $4,529 thousand[56]. - The total gross unrealized gains for debt securities available for sale were $8,053 thousand as of June 30, 2022[54]. - The company does not intend to sell any debt securities available for sale with an unrealized loss, indicating a strategy focused on recovery of the amortized cost basis[59]. Deposits and Borrowings - Total deposits increased slightly to $6,415,591 thousand as of June 30, 2022, compared to $6,413,956 thousand at December 31, 2021, showing a marginal increase of 0.02%[16]. - Noninterest-bearing deposits decreased to $2,987,725 thousand as of June 30, 2022, from $3,069,080 thousand at December 31, 2021, a decline of approximately 2.67%[98]. - Interest-bearing transaction deposits increased to $1,303,700 thousand as of June 30, 2022, compared to $1,260,869 thousand at December 31, 2021, reflecting a growth of about 3.4%[98]. - Total short-term borrowed funds decreased to $118,167 thousand as of June 30, 2022, from $146,246 thousand at December 31, 2021, a reduction of approximately 19.2%[100]. - The total collateral carrying value for repurchase agreements decreased to $255,028 thousand as of June 30, 2022, from $296,300 thousand at December 31, 2021, a decline of approximately 13.9%[100].

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 March 31, 2022 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 94-2 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark one) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 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 the registrant as specified in its charter) California ...

Financial Performance - Net income for the three months ended September 30, 2021, was $22,063 thousand, compared to $20,051 thousand for the same period in 2020, reflecting an increase of 10.0%[18] - Net income for the nine months ended September 30, 2021, was $64,789 thousand, an increase from $56,575 thousand in the same period of 2020, representing a growth of approximately 3.5%[27] - Average diluted earnings per share for the nine months ended September 30, 2021, was $2.41, compared to $2.10 for the same period in 2020, an increase of 14.8%[18] - The company reported a total comprehensive income of $6,426 thousand for the three months ended September 30, 2021, down from $29,942 thousand in 2020, a decrease of 78.6%[20] Asset Growth - Total assets increased to $7,403,573 thousand as of September 30, 2021, up from $6,747,931 thousand at December 31, 2020, representing a growth of approximately 9.7%[16] - Total cash and due from banks at the end of the period was $1,011,048 thousand, significantly up from $398,964 thousand at the end of September 2020[27] - Total deposits rose to $6,288,961 thousand as of September 30, 2021, compared to $5,687,979 thousand at December 31, 2020, marking an increase of 10.5%[16] Income and Expenses - Net interest and loan fee income after provision for credit losses was $43,318 thousand for the three months ended September 30, 2021, compared to $40,899 thousand for the same period in 2020, an increase of 5.9%[18] - Noninterest income for the nine months ended September 30, 2021, totaled $32,503 thousand, up from $31,678 thousand in 2020, indicating a growth of 2.6%[18] - Total noninterest expense for the three months ended September 30, 2021, was $24,697 thousand, slightly up from $24,603 thousand in 2020, reflecting a marginal increase of 0.4%[18] Credit Losses and Provisions - The provision for credit losses was $0 for the three months ended September 30, 2021, compared to $4,300 thousand for the same period in 2020, showing a significant reduction in credit loss provisions[18] - The company reported a provision for credit losses of $0 thousand for the nine months ended September 30, 2021, a decrease from $4,300 thousand in the same period of 2020[27] - The allowance for credit losses totaled $23,882,000 at September 30, 2021, compared to $24,142,000 at September 30, 2020, indicating a reduction of about 1.1% year-over-year[67] Loan Portfolio - Total loans amounted to $1,132,472 thousand as of September 30, 2021, with $1,127,490 thousand classified as current and accruing[70] - Total commercial loans decreased from $394,806,000 at December 31, 2020 to $289,729,000 at September 30, 2021, representing a decline of approximately 26.6%[65] - The total amount of troubled debt restructurings (TDRs) at September 30, 2021, was $3,026 thousand, with no allowance for credit losses allocated[71] Investment Securities - The fair value of debt securities available for sale was $4,602,706 thousand as of September 30, 2021, up from $4,063,185 thousand at December 31, 2020, representing an increase of approximately 13.26%[109][111] - The total gross unrealized losses for debt securities available for sale were $7,238 thousand, with corporate securities contributing $6,475 thousand to this total[54] - The Company reported total interest income from investment securities of $85,202 thousand for the nine months ended September 30, 2021, compared to $77,464 thousand for the same period in 2020[63] Dividends and Cash Flow - The company paid dividends of $33,021 thousand for the nine months ended September 30, 2021, slightly down from $33,263 thousand in the same period of 2020[27] - Net cash provided by operating activities for the nine months ended September 30, 2021, was $71,130 thousand, compared to $96,240 thousand in the same period of 2020, indicating a decrease of about 26.1%[27] - The company reported a net cash used in investing activities of $268,660 thousand for the nine months ended September 30, 2021, compared to $832,152 thousand in the same period of 2020, showing a significant reduction in cash outflow[27] Risk Management - The company continues to evaluate the impact of the COVID-19 pandemic on its business operations and financial performance, indicating ongoing strategic assessments[29] - The Company maintains a separate allowance for credit losses from off-balance-sheet credit exposures, which is included within other liabilities on the consolidated statements of financial condition[47] - The Company evaluates available for sale debt securities in unrealized loss positions for credit-related losses at least quarterly, recording an allowance for credit losses when fair value declines below the amortized cost basis[35] Goodwill and Intangibles - Goodwill recorded as of September 30, 2021, was $121,673 thousand, unchanged from December 31, 2020[94] - The Company recorded goodwill and identifiable intangibles associated with business combinations, with no impairment recognized during the three and nine months ended September 30, 2021, and the year ended December 31, 2020[93] - Identifiable intangibles are amortized over their expected useful lives, with no adjustments recorded during the specified periods[93]

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, 2021 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) (State or Other ...

[Forward Looking Statements](index=3&type=section&id=Forward%20Looking%20Statements) - This report contains forward-looking statements regarding projections of revenues, expenses, credit quality, and other financial items. These statements are based on management's current knowledge and are subject to various factors beyond the company's control, including economic conditions, interest rate changes, regulatory environments, and the impacts of the COVID-19 pandemic[10](index=10&type=chunk)[11](index=11&type=chunk) [PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Westamerica Bancorporation as of March 31, 2021. It includes the Consolidated Balance Sheets, Statements of Income, Statements of Comprehensive Income (Loss), Statements of Changes in Shareholders' Equity, and Statements of Cash Flows, along with the accompanying notes Consolidated Balance Sheet Highlights (Unaudited) | Account | At March 31, 2021 (In thousands) | At December 31, 2020 (In thousands) | | :--- | :--- | :--- | | **Total Assets** | **$6,912,481** | **$6,747,931** | | Debt securities available for sale | $3,990,570 | $4,063,185 | | Loans, net | $1,270,273 | $1,232,389 | | **Total Liabilities** | **$6,100,349** | **$5,903,122** | | Total deposits | $5,923,833 | $5,687,979 | | **Total Shareholders' Equity** | **$812,132** | **$844,809** | Consolidated Income Statement Highlights (Unaudited) | Account | Three Months Ended March 31, 2021 (In thousands) | Three Months Ended March 31, 2020 (In thousands) | | :--- | :--- | :--- | | Net Interest and Fee Income | $41,841 | $39,549 | | Provision for Credit Losses | $0 | $4,300 | | Total Noninterest Income | $10,189 | $11,648 | | Total Noninterest Expense | $24,906 | $24,664 | | **Net Income** | **$20,147** | **$16,962** | | **Diluted Earnings Per Share** | **$0.75** | **$0.63** | Consolidated Cash Flow Highlights (Unaudited) | Activity | Three Months Ended March 31, 2021 (In thousands) | Three Months Ended March 31, 2020 (In thousands) | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $32,272 | $54,451 | | Net Cash Used in Investing Activities | ($9,296) | ($113,700) | | Net Cash Provided by (Used in) Financing Activities | $222,206 | ($9,544) | | **Net Change In Cash and Due from Banks** | **$245,182** | **($68,793)** | [Notes to Unaudited Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) This section provides detailed explanations of the accounting policies and methodologies used in preparing the financial statements. Key areas covered include the basis of presentation, policies for investment securities and loans, the calculation of the allowance for credit losses under CECL, fair value measurements, commitments and contingencies, and earnings per share calculations - The financial statements are prepared in accordance with U.S. GAAP for interim information. The company adopted ASU 2016-13 (CECL) on January 1, 2020, which requires estimating expected credit losses over the life of financial instruments[26](index=26&type=chunk)[49](index=49&type=chunk) - The allowance for credit losses is determined for pools of loans with similar risk characteristics based on historical loss rates, adjusted for current conditions and a forecast horizon of up to two years. Collateral-dependent loans are evaluated individually[42](index=42&type=chunk)[43](index=43&type=chunk) - Under the CARES Act, the company has made loan modifications for customers impacted by COVID-19, which are not classified as Troubled Debt Restructurings (TDRs). As of March 31, 2021, these modifications included **$2.3 million** for a commercial real estate loan and **$1.8 million** in consumer loans[38](index=38&type=chunk)[70](index=70&type=chunk) Investment Securities Breakdown (March 31, 2021) | Security Type | Amortized Cost (In thousands) | Fair Value (In thousands) | | :--- | :--- | :--- | | **Available for Sale** | | | | Agency residential MBS | $558,366 | $577,490 | | Corporate securities | $2,076,354 | $2,149,366 | | Collateralized loan obligations | $1,156,067 | $1,157,452 | | **Total Available for Sale** | **$3,892,750** | **$3,990,570** | | **Held to Maturity** | | | | Total Held to Maturity | $469,268 | $480,558 | | **Total Debt Securities** | **$4,362,018** | **$4,471,128** | Loan Portfolio Breakdown | Loan Category | At March 31, 2021 (In thousands) | At December 31, 2020 (In thousands) | | :--- | :--- | :--- | | Commercial (including PPP) | $448,642 | $394,806 | | Commercial Real Estate | $548,802 | $564,300 | | Consumer Installment & Other | $274,645 | $273,537 | | **Total Loans** | **$1,293,756** | **$1,256,243** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management provides an analysis of the company's financial condition and results of operations for the first quarter of 2021. The discussion covers net income drivers, net interest income and margin, credit quality, noninterest income and expenses, and the management of the investment and loan portfolios. It also details the company's approach to liquidity, capital resources, and market risk Financial Summary (Q1 2021 vs. Q1 2020) | Metric | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Net Income | $20.1 million | $17.0 million | | Diluted EPS | $0.75 | $0.63 | | Return On Assets | 1.23% | 1.21% | | Return On Common Equity | 11.11% | 9.67% | | Net Interest Margin (FTE) | 2.74% | 3.10% | | Efficiency Ratio | 47.2% | 47.3% | - Net income for Q1 2021 was **$20.1 million**, an increase from **$17.0 million** in Q1 2020. The increase was primarily driven by higher net interest income and the absence of a provision for credit losses, which was **$4.3 million** in the prior-year quarter due to the onset of the COVID-19 pandemic[123](index=123&type=chunk)[129](index=129&type=chunk) - The Bank originated **$91 million** in Paycheck Protection Program (PPP) loans during Q1 2021. These loans are **100%** guaranteed by the SBA and are not expected to have credit losses[124](index=124&type=chunk)[64](index=64&type=chunk) [Net Interest and Loan Fee Income (FTE)](index=46&type=section&id=Net%20Interest%20and%20Loan%20Fee%20Income%20(FTE)) Net interest income on a fully taxable equivalent (FTE) basis was $42.6 million for Q1 2021, up from $40.5 million in Q1 2020, driven by higher average balances of investments and PPP loans. The net interest margin (FTE) decreased to 2.74% from 3.10% year-over-year, primarily due to lower yields on interest-earning assets. Funding costs remained stable at 0.03% Net Interest Income and Margin (FTE) | Metric | Q1 2021 | Q1 2020 | Q4 2020 | | :--- | :--- | :--- | :--- | | Net Interest Income (FTE) | $42,583 thousand | $40,547 thousand | $43,292 thousand | | Net Interest Margin (FTE) | 2.74% | 3.10% | 2.81% | | Yield on Earning Assets (FTE) | 2.77% | 3.13% | 2.84% | | Rate on Interest-Bearing Liabilities | 0.06% | 0.07% | 0.06% | - The increase in net interest income compared to Q1 2020 was primarily due to a **$5.5 million** positive impact from higher asset volumes, partially offset by a **$3.4 million** negative impact from lower yields[147](index=147&type=chunk) [Provision for Credit Losses](index=51&type=section&id=Provision%20for%20Credit%20Losses) The company recorded no provision for credit losses in the first quarter of 2021. This compares to a $4.3 million provision in the first quarter of 2020, which was taken in response to the anticipated economic impact of the COVID-19 pandemic. The zero provision in Q1 2021 reflects management's assessment of the current credit quality and the adequacy of the existing allowance - No provision for credit losses was recorded in Q1 2021, compared to a **$4.3 million** provision in Q1 2020[151](index=151&type=chunk) [Noninterest Income and Expense](index=52&type=section&id=Noninterest%20Income%20and%20Expense) Noninterest income decreased by $1.5 million to $10.2 million in Q1 2021 compared to Q1 2020, mainly due to lower service charges on deposit accounts. Noninterest expense remained relatively flat, increasing slightly by $242 thousand to $24.9 million, driven by higher professional fees and FDIC assessments, offset by lower salary costs Noninterest Income Components (in thousands) | Category | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Service charges on deposit accounts | $3,304 | $4,248 | | Merchant processing services | $2,560 | $2,358 | | Debit card fees | $1,601 | $1,468 | | **Total Noninterest Income** | **$10,189** | **$11,648** | Noninterest Expense Components (in thousands) | Category | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Salaries and related benefits | $12,665 | $13,018 | | Occupancy and equipment | $4,880 | $4,932 | | Professional fees | $942 | $389 | | **Total Noninterest Expense** | **$24,906** | **$24,664** | [Loan Portfolio and Credit Risk](index=58&type=section&id=Loan%20Portfolio%20and%20Credit%20Risk) The loan portfolio's credit quality is considered reasonably stable. Total nonperforming assets decreased to $4.1 million at March 31, 2021, from $4.8 million at year-end 2020. The allowance for credit losses on loans stood at $23.5 million, which management deems adequate. Net charge-offs were low at 0.12% of average loans for the quarter Nonperforming Assets (in thousands) | Category | At Mar 31, 2021 | At Dec 31, 2020 | | :--- | :--- | :--- | | Total nonaccrual loans | $3,971 | $4,329 | | Accruing loans 90+ days past due | $132 | $450 | | **Total nonperforming loans** | **$4,103** | **$4,779** | | Other real estate owned | $0 | $0 | | **Total nonperforming assets** | **$4,103** | **$4,779** | Allowance for Credit Losses on Loans (in thousands) | Metric | Q1 2021 | | :--- | :--- | | Beginning Balance | $23,854 | | Provision for credit losses | $0 | | Net chargeoffs | ($371) | | **Ending Balance** | **$23,483** | [Liquidity and Capital Resources](index=63&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position, primarily funded by a stable base of customer deposits, which accounted for 97% of funding for average total assets. Capital levels remain well above regulatory requirements, with a Common Equity Tier 1 Capital ratio of 16.26% at March 31, 2021. The company paid dividends of $0.41 per share and repurchased 4 thousand shares during the quarter - The company's funding is primarily sourced from customer deposits, which along with shareholders' equity, provided **97%** of funding for average total assets in Q1 2021[208](index=208&type=chunk) - The company paid common dividends of **$11 million** (**$0.41 per share**) and repurchased common stock valued at **$232 thousand** in Q1 2021[216](index=216&type=chunk) Regulatory Capital Ratios (Company) | Ratio | At Mar 31, 2021 | Required for Adequacy | | :--- | :--- | :--- | | Common Equity Tier I Capital | 16.26% | 7.00% | | Tier I Capital | 16.26% | 8.50% | | Total Capital | 16.88% | 10.50% | | Leverage Ratio | 9.48% | 4.00% | [Quantitative and Qualitative Disclosures about Market Risk](index=51&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's most significant market risks are credit risk and interest rate risk. The company does not engage in trading activities or use derivative instruments to manage these risks. The company's asset and liability position was slightly "asset sensitive" at March 31, 2021, meaning net interest income would be expected to increase in a rising rate environment - The company's primary market risks are identified as credit risk and interest rate risk. The company does not use derivative instruments[223](index=223&type=chunk)[224](index=224&type=chunk) - At March 31, 2021, the company was slightly "asset sensitive." A static simulation estimated that an immediate **+1.00%** parallel shift in interest rates would increase first-year net interest income by **13.0%**[201](index=201&type=chunk)[202](index=202&type=chunk) [Controls and Procedures](index=52&type=section&id=Item%204%20Controls%20and%20Procedures) The company's principal executive officer and principal financial officer concluded that the disclosure controls and procedures were effective as of March 31, 2021. No material changes to internal control over financial reporting were identified during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures are effective to ensure material information is recorded and reported in a timely manner[226](index=226&type=chunk) [PART II - OTHER INFORMATION](index=52&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=66&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 have a material adverse effect on 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[227](index=227&type=chunk) [Risk Factors](index=66&type=section&id=Item%201A%20Risk%20Factors) There have been no material changes to the risk factors disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2020 - Risk factors have not materially changed since the filing of the 2020 Form 10-K[228](index=228&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=53&type=section&id=Item%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the first quarter of 2021, the company repurchased 4,000 shares of its common stock at an average price of $61.09 per share. The repurchases were made under a program authorized by the Board of Directors on July 23, 2020 Issuer Purchases of Equity Securities (Q1 2021) | Period | Total Shares Purchased | Average Price Paid per Share | Maximum Shares Remaining for Purchase | | :--- | :--- | :--- | :--- | | Jan 2021 | 0 | $- | 1,624 thousand | | Feb 2021 | 0 | $- | 1,624 thousand | | Mar 2021 | 4 thousand | $61.09 | 1,620 thousand | | **Total** | **4 thousand** | **$61.09** | **1,620 thousand** | [Exhibits](index=54&type=section&id=Item%206%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications (Exhibits 31.1, 31.2, 32.1, 32.2) and the Inline XBRL documents (Exhibits 101 and 104) - Key exhibits filed include certifications by the CEO and CFO pursuant to the Securities Exchange Act and Sarbanes-Oxley Act, as well as XBRL data files[236](index=236&type=chunk) [Signatures](index=55&type=section&id=Signatures) - The report was signed on May 5, 2021, by Jesse Leavitt, Senior Vice President and Chief Financial Officer[238](index=238&type=chunk)

Financial Position - As of December 31, 2020, the Company had consolidated assets of approximately $6.7 billion, deposits of approximately $5.7 billion, and shareholders' equity of approximately $845 million[21]. - The Company reported net income of $80.4 million for 2020, maintaining diluted earnings per share at $2.98, consistent with 2019[130]. - Total assets increased to $6.75 billion at the end of 2020, up from $5.62 billion in 2019[124]. - Shareholders' equity increased to $711,554,000, reflecting a solid capital position for the company[151]. - The total risk-based capital ratio was 16.68% at the end of 2020, slightly down from 16.83% in 2019[124]. Employee and Corporate Governance - The Company employed 712 full-time equivalent staff, consisting of 578 full-time employees and 189 part-time and on-call employees as of December 31, 2020[23]. - The Company provides a comprehensive benefits package to employees, including up to 6% contributions to qualified retirement plans and various health and wellness benefits[24]. - The Company has a good relationship with its employees, who are not represented by a collective bargaining unit[23]. - The Company’s code of ethics prohibits discrimination or harassment and requires annual training for employees[25]. Regulatory Environment - The Company is subject to regulatory capital adequacy guidelines, and as of December 31, 2020, its capital ratios exceeded applicable regulatory requirements[42]. - The Company is regulated by the Federal Reserve Board and must maintain certain levels of capital as required by the BHCA[28]. - The Company is subject to restrictions on dividend payments based on retained earnings and total assets[49]. - The Company is subject to fair lending requirements and reporting obligations under the Community Reinvestment Act[57]. - Regulatory changes could adversely impact the Company’s ability to pay dividends and its overall financial condition[98]. Loan Portfolio and Credit Risk - Approximately 48% of the Company's loan portfolio is collateralized by real estate, which is subject to economic conditions in California[92]. - The total loan portfolio reached $1.256 billion at December 31, 2020, an increase from $1.127 billion in 2019[207]. - The company has a diversified loan portfolio with significant exposure to commercial and residential real estate, as well as consumer loans[210]. - The Company estimates expected losses in the loan portfolio and establishes an allowance for credit losses, which is adjusted through earnings[213]. - The provision for credit losses in 2020 was $4.3 million, reflecting management's estimate of additional reserves needed due to credit risk from economic weakness caused by the pandemic[141]. Financial Performance - Total interest and loan fee income for 2020 was $151.7 million, a decrease from $165.9 million in 2019[123]. - Noninterest income totaled $45.6 million in 2020, down from $47.4 million in 2019[124]. - The efficiency ratio improved to 46.2% in 2020 from 47.4% in 2019, indicating better cost management[124]. - The net interest margin (FTE) decreased to 2.91% in 2020 from 3.11% in 2019, attributed to lower yields on interest-bearing earning assets and a higher percentage of lower-yielding investments[146]. - Noninterest expense decreased by $420 thousand in 2020, attributed to lower salaries, occupancy, and equipment expenses[141]. Market and Economic Conditions - The Company expects net interest margin and non-interest income to decline and credit-related losses to increase due to the decline in economic activity[79]. - Legislative changes can unpredictably affect the Company's operating environment and competitive conditions[64]. - The Company may face increased competition from various financial institutions due to recent legislative changes[65]. - The Company’s financial performance is highly dependent on the business environment in California and the overall U.S. economy, including factors like economic growth and labor market health[96]. Investment Securities - The carrying value of the Company's investment securities portfolio increased to $4.6 billion at December 31, 2020, from $3.8 billion at December 31, 2019[173]. - Corporate securities comprised 46% of the investment securities portfolio at December 31, 2020, compared to 48% in 2019[174]. - The average interest rate for total debt securities available for sale was 2.82% as of December 31, 2020[179]. - The total fair value of debt securities available for sale increased to $4,063,185 thousand in 2020 from $3,078,846 thousand in 2019, representing a growth of 32%[177]. Community Engagement - The Company has a strategic focus on the banking needs of small businesses in Northern and Central California[16]. - The Bank funded $249 million in government guaranteed PPP loans during 2020, which increased interest-earning assets and related interest and fee income[75]. - The Company granted loan deferrals totaling $2.5 million for consumer loans and $7.8 million for commercial real estate loans due to COVID-19 impacts[212].

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 September 30, 2020 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) (State or O ...

Financial Performance - Net income for the three months ended June 30, 2020, was $19,562 thousand, slightly down from $19,625 thousand in the same period of 2019, a decrease of 0.3%[16] - Net income for the six months ended June 30, 2020, was $36,524,000, compared to $39,271,000 for the same period in 2019, representing a decrease of approximately 7%[23] - Average diluted earnings per share for the six months ended June 30, 2020, was $1.35, down from $1.46 in 2019, a decrease of 7.5%[16] - Basic earnings per common share for the three months ended June 30, 2020, was $0.72, a decrease from $0.73 in the same period of 2019[128] - Total comprehensive income for the three months ended June 30, 2020, was $113,123,000, significantly up from $43,998,000 in 2019, reflecting an increase of 156.4%[18] Assets and Liabilities - Total assets increased to $6,463,889 thousand as of June 30, 2020, up from $5,619,555 thousand at December 31, 2019, representing a growth of 15%[14] - Total liabilities increased to $5,655,813 thousand as of June 30, 2020, from $4,888,138 thousand at December 31, 2019, an increase of 15.6%[14] - Shareholders' equity rose to $808,076 thousand as of June 30, 2020, compared to $731,417 thousand at December 31, 2019, reflecting an increase of 10.5%[14] Deposits - Total deposits rose to $5,468,412 thousand as of June 30, 2020, compared to $4,812,621 thousand at December 31, 2019, marking an increase of 13.6%[14] - Noninterest-bearing deposits rose to $2,702,885 thousand at June 30, 2020, compared to $2,240,112 thousand at December 31, 2019, reflecting an increase of about 20.7%[101] - Interest-bearing transaction deposits grew to $997,593 thousand at June 30, 2020, from $931,888 thousand at December 31, 2019, marking a rise of approximately 7.1%[101] Income and Expenses - Net interest and loan fee income after provision for credit losses was $76,353 thousand for the six months ended June 30, 2020, compared to $78,128 thousand for the same period in 2019, a decrease of 2.3%[16] - Noninterest income decreased to $21,202 thousand for the six months ended June 30, 2020, down from $23,867 thousand in 2019, a decline of 11%[16] - Noninterest expense totaled $49,418 thousand for the six months ended June 30, 2020, compared to $50,744 thousand in the same period of 2019, showing a reduction of approximately 2.6%[16] Credit Losses - The provision for credit losses was $4,300 thousand for the six months ended June 30, 2020, compared to no provision in the same period of 2019[16] - The allowance for credit losses increased to $24,529,000 as of June 30, 2020, reflecting the impact of expected credit losses due to the COVID-19 pandemic[74] - The significant increase in the allowance for credit losses for consumer installment and other loans was attributed to forecasted unemployment due to the pandemic[74] Cash Flow - Total cash provided by operating activities for the six months ended June 30, 2020, was $65,923,000, an increase from $39,541,000 in 2019, indicating a growth of approximately 67%[24] - The company reported a net cash used in investing activities of $(620,310,000) for the six months ended June 30, 2020, compared to $105,968,000 provided in 2019[24] Loans - The total outstanding loans as of June 30, 2020, amounted to $1,316,359,000, up from $1,126,664,000 at the end of 2019, indicating a growth of approximately 16.8%[74] - The company originated $240,815,000 in Paycheck Protection Program (PPP) loans, which are 100% guaranteed by the Small Business Administration[75] - The credit risk profile showed that as of June 30, 2020, the total loans classified as "Pass" amounted to $1,292,824 thousand, while "Substandard" loans totaled $22,725 thousand[78] Securities - As of June 30, 2020, the total debt securities available for sale amounted to $3,708,370 thousand, with gross unrealized gains of $152,626 thousand and unrealized losses of $1,460 thousand[60] - The total amortized cost of debt securities held to maturity was $638,297 thousand, with a fair value of $656,390 thousand as of June 30, 2020[61] - The company had no provision for credit loss on debt securities held to maturity during the quarter ended June 30, 2020[60] Accounting Standards - The Company adopted the new accounting standard ASU 2016-13 on January 1, 2020, which changed the credit loss estimation model from incurred loss to current expected credit loss (CECL) model[32] - The company is currently evaluating the potential effects of FASB ASU 2019-12 on its consolidated financial statements, which simplifies accounting for income taxes[55] - The company early adopted provisions of FASB ASU 2018-13 related to Fair Value Measurements, effective January 1, 2020, without affecting financial results[54] Dividends - The company declared dividends of $0.41 per share for both the three months ended June 30, 2020, and 2019, maintaining the same level[16] - The company paid dividends of $22,220,000 for the six months ended June 30, 2020, compared to $21,786,000 in 2019, reflecting a slight increase in shareholder returns[24]