Westamerica Bancorporation(WABC) - 2025 Q3 - Quarterly Results

Executive Summary & Company Overview 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][2] - The company emphasized its low-cost operating principles, with an annualized cost of funding at 0.26% and no provision for credit losses[1][2] - Capital ratios remain high, and the company executed share repurchases and paid dividends[1][2] 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 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][7][8] - The company clarifies that it does not undertake to update these statements[6][7][8] - 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] - 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] Financial Highlights 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 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 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 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 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 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 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 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 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 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 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] - The Company expects to receive $338,000 thousand in principal payments from its debt securities during the twelve months ending September 30, 2026[28] 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] Capital 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 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 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 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][40][41] - It also notes that certain prior period amounts have been reclassified for consistent presentation[39][40][41] - 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] - 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]