Westamerica Bancorporation Earnings Summary — Q2 FY2026

• Net income remained stable sequentially at $27.4M, while diluted EPS grew 3.5% QoQ to $1.17, aided by aggressive share repurchases.
• The bank retired 753,000 common shares during the quarter, contributing to a 10% year-over-year reduction in average common shares outstanding.
• Cost of funds remained exceptionally low at 0.24%, maintaining a competitive advantage in a high-rate environment.
• Credit quality remains a core strength with nonperforming assets totaling only $808 thousand, down significantly from $5.0M in the prior year.
• Net Interest Margin (FTE) expanded slightly to 3.77% from 3.74% in Q1 2026, driven by higher yields on earning assets.
• Loan volumes continued to contract, with average total loans down 10.4% year-over-year to $682.9M.
• The company maintained a robust capital position with a Tangible Common Equity Ratio of 12.87% despite mark-to-market adjustments in the securities portfolio.

Management focused on the execution of 'low-cost operating principles,' emphasizing well-controlled operating expenses and stable credit quality as drivers for the 11.3% annualized return on average common equity.

Improving

While net income was flat sequentially, the significant reduction in share count and stable net interest margins demonstrate effective capital management and resilience against rising funding costs.

The outlook remains focused on maintaining a low-cost deposit franchise and high credit standards. The bank is successfully offsetting lower loan volumes through higher yields on its investment securities portfolio and aggressive share buybacks.