Westamerica Bancorporation (WABC) investor relations material

Executive summary

• Net income for Q2 2026 was $27.4 million ($1.17 diluted EPS), down from $29.1 million ($1.12 EPS) in Q2 2025 and flat sequentially; six-month net income was $54.7 million ($2.30 EPS), down from $60.1 million ($2.29 EPS) year-over-year.

• Diluted EPS was $1.17, up from $1.13 in Q1 2026 and up 4.5% year-over-year.

• Lower net interest and loan fee income and higher noninterest expense drove the year-over-year decline in profitability.

• Return on average common equity was 11.3% for Q2 2026.

• Dividend of $0.48 per share paid and 753,000 shares repurchased during the quarter.

Financial highlights

• Net interest and loan fee income (FTE) for Q2 2026 was $52.7 million, down from $54.6 million in Q2 2025; six-month total was $105.4 million, down from $111.0 million.

• Noninterest income for Q2 2026 was $10.3 million, flat year-over-year but up 7.2% sequentially, driven by higher merchant processing and debit card fees, and unrealized equity gains.

• Noninterest expense increased to $26.0 million in Q2 2026 from $25.5 million in Q2 2025, mainly due to higher salaries and professional fees.

• Efficiency ratio (FTE) was 41.3% for Q2 2026, up from 39.3% a year ago.

• Net interest margin (FTE) was 3.77% for Q2 2026, down from 3.85% in Q2 2025.

Outlook and guidance

• Management continues to monitor inflation, monetary policy, and geopolitical risks, noting potential for industry volatility and liquidity concerns.

• The company expects to maintain regulatory capital levels well above minimum requirements and continue paying quarterly dividends.

• Management emphasized continued focus on low-cost operations and stable credit quality.

• Forward-looking statements highlight risks from economic conditions, interest rates, competition, and regulatory changes.