Westamerica Bancorporation (WABC) investor relations material

Executive summary

• Net income for Q1 2026 was $27.4 million, or $1.13 per diluted share, including a $300,000 reversal of provision for credit losses that increased EPS by $0.01; this was down from $31.0 million ($1.16 per share) in Q1 2025 and $27.8 million ($1.12 per share) in Q4 2025.

• Annualized return on average common equity was 11.0% for Q1 2026.

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

• Shareholders received a $0.46 per share dividend, and 997,000 shares were repurchased in Q1 2026.

Financial highlights

• Net interest and fee income (FTE) was $52.7 million, down 6.6% year-over-year and 1.6% sequentially.

• Noninterest income was $9.6 million, down 6.9% year-over-year, mainly due to lower debit card fees and $247,000 in unrealized securities losses.

• Noninterest expense increased to $25.9 million, up 3.1% year-over-year, driven by higher salaries, occupancy, and partnership losses.

• Net interest margin (FTE) was 3.74%, down from 3.90% a year ago and 3.76% in Q4 2025.

• Efficiency ratio was 41.6% for Q1 2026, compared to 37.7% in Q1 2025.

Outlook and guidance

• Management continues to monitor inflation, monetary policy, geopolitical risks, and industry volatility, noting potential impacts on liquidity, deposit outflows, and unrealized losses.

• The company expects to maintain regulatory capital levels above well-capitalized thresholds and continue quarterly dividends.

• Management highlighted the benefit of a low-cost deposit base, with 46% in non-interest bearing checking accounts and a 0.24% annualized cost of funding.

• Forward-looking statements caution about risks from credit, interest rates, competition, regulation, and economic conditions.