Westamerica Bancorporation Reports First Quarter 2025 Financial Results

Source: Nasdaq GlobeNewswire / 17 Apr 2025 10:52:07 America/New_York

SAN RAFAEL, Calif., April 17, 2025 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the first quarter 2025 of $31.0 million and diluted earnings per common share ("EPS") of $1.16. First quarter 2025 results include a reversal of provision for credit losses of $550 Thousand, which increased EPS $0.01. These results compare to fourth quarter 2024 net income of $31.7 million and EPS of $1.19.

“Westamerica’s first quarter 2025 results benefited from the Company’s valuable low-cost deposit base, of which 46 percent was represented by non-interest bearing checking accounts during the quarter; the annualized cost of funding our loan and bond portfolios was 0.24 percent in the quarter. Operating expenses remained well controlled at 38 percent of total revenues and credit quality remained stable with nonperforming assets of $277 thousand at March 31, 2025,” said Chairman, President and CEO David Payne. “First quarter 2025 results generated an annualized 11.9 percent return on average common equity. Shareholders were paid a $0.44 per common share dividend during the first quarter 2025,” concluded Payne.

Net interest income on a fully-taxable equivalent (FTE) basis was $56.4 million for the first quarter 2025, compared to $59.2 million for the fourth quarter 2024. The annualized yield earned on loans, bonds and cash for the first quarter 2025 was 4.14 percent compared to 4.25 percent for the fourth quarter 2024. The annualized cost of funding the loan and bond portfolios was 0.24 percent for the first quarter 2025 unchanged from the fourth quarter 2024.

The Company recognized a $550 thousand reversal of provision for credit losses in the first quarter 2025. The Allowance for Credit Losses on Loans was $13.9 million at March 31, 2025.

Noninterest income for the first quarter 2025 totaled $10.3 million compared to $10.6 million for the fourth quarter 2024.

Noninterest expenses for the first quarter 2025 were $25.1 million compared to $25.9 million for the fourth quarter 2024. The decline in noninterest expense is primarily due to lower salaries and benefits expense due to fewer business days in the first quarter 2025 compared to the fourth quarter 2024, lower occupancy and equipment expense, and lower estimated operating losses from limited partnership investments.

The income tax provision (FTE) for the first quarter 2025 was $11.1 million compared to $12.3 million for the fourth quarter 2024. The fourth quarter 2024 income tax provision includes a $305 thousand increase to reconcile the 2023 income tax provision to the filed 2023 tax returns.

Westamerica Bancorporation’s wholly owned subsidiary Westamerica Bank, operates commercial banking and trust offices throughout Northern and Central California.

Westamerica Bancorporation Web Address: www.westamerica.com

For additional information contact:
  Westamerica Bancorporation
                1108 Fifth Avenue, San Rafael, CA 94901
  Robert A. Thorson – Investor Relations Contact
                707-863-6090
                investments@westamerica.com

FORWARD-LOOKING INFORMATION:

The following appears in accordance with the Private Securities Litigation Reform Act of 1995:

This press release may contain forward-looking statements about the Company, including descriptions of plans or objectives of its management for future operations, products or services, and forecasts of its revenues, earnings or other measures of economic performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may."

Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors — many of which are beyond the Company's control — could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. The Company's most recent reports filed with the Securities and Exchange Commission, including the annual report for the year ended December 31, 2024 filed on Form 10-K and quarterly report for the quarter ended September 30, 2024 filed on Form 10-Q, describe some of these factors, including certain credit, interest rate, operational, liquidity and market risks associated with the Company's business and operations. Other factors described in these reports include changes in business and economic conditions, competition, fiscal and monetary policies, disintermediation, cyber security risks, legislation including the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the Sarbanes-Oxley Act of 2002 and the Gramm-Leach-Bliley Act of 1999, and mergers and acquisitions.

Forward-looking statements speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date forward looking statements are made.

Public Information April 17, 2025

WESTAMERICA BANCORPORATION

FINANCIAL HIGHLIGHTS

March 31, 2025

1. Net Income Summary.

(in thousands except per-share amounts)

Q1'2025

Q1'2024

Change

Q4'2024

Net Interest and Loan Fee

Income (FTE)

56,390

66,094

-14.7

59,247

(Reversal of ) Provision

for Credit Losses

(550

)

300

n/m

Noninterest Income

10,321

10,097

2.2

10,633

Noninterest Expense

25,127

26,099

-3.7

25,853

Income Before Taxes (FTE)

42,134

49,792

-15.4

44,027

Income Tax Provision (FTE)

11,097

13,375

-17.0

12,327

Net Income

31,037

36,417

-14.8

31,700

Average Common Shares

Outstanding

26,642

26,674

-0.1

26,699

Diluted Average Common

Shares Outstanding

26,642

26,675

-0.1

26,701

Operating Ratios:

Basic Earnings Per Common

Share

1.16

1.37

-15.3

1.19

Diluted Earnings Per

Common Share

1.16

1.37

-15.3

1.19

Return On Assets (a)

2.03

2.24

2.02

Return On Common

Equity (a)

11.9

15.2

12.1

Net Interest Margin (FTE) (a)

3.90

4.30

4.01

Efficiency Ratio (FTE)

37.7

34.3

37.0

Dividends Paid Per Common

Share

0.44

0.0

0.44

Common Dividend Payout

Ratio

2. Net Interest Income.

(dollars in thousands)

Q1'2025

Q1'2024

Change

Q4'2024

Interest and Loan Fee

Income (FTE)

59,786

69,095

-13.5

62,713

Interest Expense

3,396

3,001

13.2

3,466

Net Interest and Loan Fee

Income (FTE)

56,390

66,094

-14.7

59,247

Average Earning Assets

5,794,836

6,119,368

-5.3

5,850,620

Average Interest-Bearing

Liabilities

2,770,099

2,955,565

-6.3

2,796,675

Yield on Earning Assets

(FTE) (a)

4.14

4.50

4.25

Cost of Funds (a)

0.24

0.20

0.24

Net Interest Margin (FTE) (a)

3.90

4.30

4.01

Interest Expense /

Interest-Bearing

Liabilities (a)

0.50

0.41

0.49

Net Interest Spread (FTE) (a)

3.64

4.09

3.76

3. Loans & Other Earning Assets.

(average volume, dollars in thousands)

Q1'2025

Q1'2024

Change

Q4'2024

Total Assets

6,187,321

6,525,921

-5.2

6,243,799

Total Earning Assets

5,794,836

6,119,368

-5.3

5,850,620

Total Loans

789,935

853,553

-7.5

821,767

Commercial Loans

120,189

133,422

-9.9

131,088

Commercial Real Estate

Loans

497,379

488,989

1.7

503,546

Consumer Loans

172,367

231,142

-25.4

187,133

Total Investment Securities

4,395,565

5,098,539

-13.8

4,557,436

Debt Securities Available for

Sale

3,553,755

4,224,474

-15.9

3,710,378

Debt Securities Held to

Maturity

841,810

874,065

-3.7

847,058

Total Interest-Bearing Cash

609,336

167,276

264.3

471,417

Loans / Deposits

15.9

16.3

4. Deposits, Other Interest-Bearing Liabilities & Equity.

(average volume, dollars in thousands)

Q1'2025

Q1'2024

Change

Q4'2024

Total Deposits

4,958,554

5,379,060

-7.8

5,028,363

Noninterest Demand

2,293,059

2,532,381

-9.5

2,342,092

Interest-Bearing Transaction

935,054

1,058,292

-11.6

934,876

Savings

1,649,631

1,691,716

-2.5

1,666,542

Time greater than $100K

29,460

36,135

-18.5

31,541

Time less than $100K

51,350

60,536

-15.2

53,312

Total Short-Term Borrowings

104,604

108,886

-3.9

110,404

Bank Term Funding Program

Borrowings

62,582

n/m

Securities Sold under

Repurchase Agreements

104,604

46,304

125.9

110,404

Shareholders' Equity

1,055,925

965,840

9.3

1,039,017

Demand Deposits /

Total Deposits

46.2

47.1

46.6

Transaction & Savings

Deposits / Total Deposits

98.4

98.2

98.3

5. Interest Yields Earned & Rates Paid.

(dollars in thousands)

Q1'2025

Average

Income/

Yield (a) /

Volume

Expense

Rate (a)

Interest & Loan Fee Income Earned:

Total Earning Assets (FTE)

5,794,836

59,786

4.14

Total Loans (FTE)

789,935

10,744

5.51

Commercial Loans (FTE)

120,189

1,845

6.21

Commercial Real Estate

Loans

497,379

6,473

5.28

Consumer Loans

172,367

2,426

5.70

Total Investments (FTE)

4,395,565

42,339

3.85

Total Debt Securities

Available for Sale (FTE)

3,553,755

33,753

3.80

Corporate Securities

1,991,278

13,522

2.72

Collateralized Loan

Obligations

915,873

14,422

6.30

Agency Mortgage Backed

Securities

254,126

2,034

3.20

Securities of U.S.

Government Sponsored

Entities

311,297

2,777

3.57

Obligations of States and

Political Subdivisions

(FTE)

62,651

496

3.17

U.S. Treasury Securities

4,303

5.13

Other Debt Securities

Available for Sale (FTE)

14,227

448

12.60

Total Debt Securities Held to

Maturity (FTE)

841,810

8,586

4.08

Agency Mortgage Backed

Securities

56,006

329

2.35

Corporate Securities

736,089

7,815

4.25

Obligations of States and

Political Subdivisions

(FTE)

49,715

442

3.56

Total Interest-Bearing Cash

609,336

6,703

4.40

Interest Expense Paid:

Total Earning Assets

5,794,836

3,396

0.24

Total Interest-Bearing

Liabilities

2,770,099

3,396

0.50

Total Interest-Bearing

Deposits

2,665,495

3,229

0.49

Interest-Bearing Transaction

935,054

0.02

Savings

1,649,631

3,128

0.77

Time less than $100K

51,350

0.30

Time greater than $100K

29,460

0.24

Total Short-Term Borrowings

104,604

167

0.65

Securities Sold under

Repurchase Agreements

104,604

167

0.65

Net Interest Income and

Margin (FTE)

56,390

3.90

(dollars in thousands)

Q1'2024

Average

Income/

Yield (a) /

Volume

Expense

Rate (a)

Interest & Loan Fee Income Earned:

Total Earning Assets (FTE)

6,119,368

69,095

4.50

Total Loans (FTE)

853,553

11,413

5.38

Commercial Loans (FTE)

133,422

2,385

7.19

Commercial Real Estate

Loans

488,989

5,911

4.86

Consumer Loans

231,142

3,117

5.42

Total Investments (FTE)

5,098,539

55,399

4.32

Total Debt Securities

Available for Sale (FTE)

4,224,474

46,552

4.38

Corporate Securities

2,114,861

14,555

2.75

Collateralized Loan

Obligations

1,461,182

26,700

7.23

Agency Mortgage Backed

Securities

252,828

1,552

2.45

Securities of U.S.

Government sponsored

entities

308,807

2,777

3.60

Obligations of States and

Political Subdivisions

(FTE)

72,569

544

3.00

Other Debt Securities

Available for Sale (FTE)

14,227

424

11.92

Total Debt Securities Held to

Maturity (FTE)

874,065

8,847

4.05

Agency Mortgage Backed

Securities

76,062

427

2.25

Corporate Securities

729,273

7,816

4.29

Obligations of States and

Political Subdivisions

(FTE)

68,730

604

3.52

Total Interest-Bearing Cash

167,276

2,283

5.40

Interest Expense Paid:

Total Earning Assets

6,119,368

3,001

0.20

Total Interest-Bearing

Liabilities

2,955,565

3,001

0.41

Total Interest-Bearing

Deposits

2,846,679

2,106

0.30

Interest-Bearing Transaction

1,058,292

119

0.05

Savings

1,691,716

1,917

0.46

Time less than $100K

60,536

0.33

Time greater than $100K

36,135

0.23

Total Short-Term Borrowings

108,886

895

3.30

Bank Term Funding Program

Borrowings

62,582

843

5.40

Securities Sold under

Repurchase Agreements

46,304

0.45

Net Interest Income and

Margin (FTE)

66,094

4.30

6. Noninterest Income.

(dollars in thousands except per-share amounts)

Q1'2025

Q1'2024

Change

Q4'2024

Service Charges on Deposit

Accounts

3,381

3,470

-2.6

3,501

Merchant Processing

Services

2,733

2,507

9.0

2,735

Debit Card Fees

1,581

1,543

2.5

1,902

Trust Fees

899

794

13.2

867

ATM Processing Fees

463

591

-21.7

506

Other Service Fees

429

438

-2.1

428

Life Insurance Gains

102

n/m

Other Noninterest Income

733

754

-2.8

694

Total Noninterest Income

10,321

10,097

2.2

10,633

Operating Ratios:

Total Revenue (FTE)

66,711

76,191

-12.4

69,880

Noninterest Income /

Revenue (FTE)

15.5

13.3

15.2

Service Charges /

Avg. Deposits (a)

0.28

0.26

0.28

Total Revenue (FTE) Per

Avg. Common Share (a)

10.16

11.49

-11.6

10.41

7. Noninterest Expense.

(dollars in thousands)

Q1'2025

Q1'2024

Change

Q4'2024

Salaries and Related Benefits

12,126

12,586

-3.7

12,461

Occupancy and Equipment

5,038

5,040

-0.0

5,219

Outsourced Data Processing

2,697

2,536

6.3

2,610

Limited Partnership

Operating Losses

915

1,440

-36.5

1,095

Professional Fees

395

402

-1.7

369

Courier Service

688

649

6.0

692

Other Noninterest Expense

3,268

3,446

-5.2

3,407

Total Noninterest Expense

25,127

26,099

-3.7

25,853

Operating Ratios:

Noninterest Expense /

Avg. Earning Assets (a)

1.76

1.72

1.76

Noninterest Expense /

Revenues (FTE)

37.7

34.3

37.0

8. Allowance for Credit Losses.

(dollars in thousands)

Q1'2025

Q1'2024

Change

Q4'2024

Average Total Loans

789,935

853,553

-7.5

821,767

Beginning of Period

Allowance for Credit

Losses on Loans (ACLL)

14,780

16,867

-12.4

15,318

(Reversal of ) Provision

for Credit Losses

(550

)

300

n/m

Net ACLL Losses

(316

)

(1,288

)

-75.5

(538

)

End of Period ACLL

13,914

15,879

-12.4

14,780

Gross ACLL Recoveries /

Gross ACLL Losses

Net ACLL Losses /

Avg. Total Loans (a)

-0.16

-0.61

-0.26

(dollars in thousands)

3/31/25

3/31/24

Change

12/31/24

Allowance for Credit Losses

on Loans

13,914

15,879

-12.4

14,780

Allowance for Credit Losses

on Held to Maturity

Securities

0.0

Total Allowance for Credit

Losses

13,915

15,880

-12.4

14,781

Allowance for Unfunded

Credit Commitments

201

0.0

201

9. Credit Quality.

(dollars in thousands)

3/31/25

3/31/24

Change

12/31/24

Nonperforming Loans:

Nonperforming Nonaccrual

Loans

957

n/m

201

Performing Nonaccrual

Loans

n/m

Total Nonaccrual Loans

958

n/m

201

Accruing Loans 90+ Days

Past Due

277

525

-47.2

534

Total Nonperforming Loans

277

1,483

-81.3

735

Total Loans Outstanding

771,030

844,677

-8.7

820,300

Total Assets

5,966,624

6,464,685

-7.7

6,076,274

Loans:

Allowance for Credit Losses

on Loans

13,914

15,879

-12.4

14,780

Allowance for Credit Losses

on Loans / Loans

1.80

1.88

1.80

Nonperforming Loans /

Total Loans

0.04

0.18

0.09

10. Liquidity.

At March 31, 2025, the Company had $727,336 thousand in cash balances. During the twelve months ending March 31, 2026, the Company expects to receive $265,000 thousand in principal payments from its debt securities. If additional operational liquidity is required, the Company can pledge debt securities as collateral for borrowing purposes; at March 31, 2025, the Company’s debt securities which qualify as collateral for borrowing totaled $3,498,151 thousand. In the ordinary course of business, the Company pledges debt securities as collateral for certain depository customers; at March 31, 2025, the Company had pledged $713,752 thousand in debt securities for depository customers. In the ordinary course of business, the Company pledges debt securities as collateral for borrowing from the Federal Reserve Bank; at March 31, 2025, the Company had pledged $724,966 thousand in debt securities at the Federal Reserve Bank. During the three months ended March 31, 2025, the Company’s average borrowings from the Federal Reserve Bank and other correspondent banks were $-0- thousand and $-0- thousand, respectively, and at March 31, 2025, the Company had no borrowings from the Federal Reserve Bank or other correspondent banks. At March 31, 2025, the Company had access to borrowing from the Federal Reserve up to $724,966 thousand based on collateral pledged at March 31, 2025. At March 31, 2025, the Company’s estimated unpledged collateral qualifying debt securities totaled $1,615,433 thousand. Debt securities eligible as collateral are shown at market value.

(in thousands)

3/31/25

Debt Securities Eligible as

Collateral:

Corporate Securities

2,517,299

Collateralized Loan

Obligations rated AAA

269,817

Obligations of States and

Political Subdivisions

109,065

Agency Mortgage Backed

Securities

302,248

Securities of U.S. Government

Sponsored Entities

299,722

Total Debt Securities Eligible

as Collateral

3,498,151

Debt Securities Pledged

as Collateral:

Debt Securities Pledged

at the Federal Reserve Bank

724,966

)

Deposits by Public Entities

(713,752

)

Securities Sold under

Repurchase Agreements

(439,287

)

Other

(4,713

)

Total Debt Securities Pledged

as Collateral

1,882,718

)

Estimated Debt Securities

Available to Pledge

1,615,433

11. Capital.

(in thousands, except per-share amounts)

3/31/25

3/31/24

Change

12/31/24

Shareholders' Equity

923,138

791,691

16.6

889,957

Total Assets

5,966,624

6,464,685

-7.7

6,076,274

Shareholders' Equity/

Total Assets

15.47

12.25

14.65

Shareholders' Equity/

Total Loans

119.73

93.73

108.49

Tangible Common Equity

Ratio

13.71

10.56

12.90

Common Shares Outstanding

26,360

26,678

-1.2

26,708

Common Equity Per Share

35.02

29.68

18.0

33.32

Market Value Per Common

Share

50.63

48.88

3.6

52.46

(shares in thousands)

Q1'2025

Q1'2024

Change

Q4'2024

Share Retirements (Issuances):

Total Shares Retired

361

n/m

Average Retirement Price

50.96

45.58

n/m

Net Shares Retired (Issued)

348

)

n/m

(22

)

12. Period-End Balance Sheets.

(unaudited, dollars in thousands)

3/31/25

3/31/24

Change

12/31/24

Assets:

Cash and Due from Banks

727,336

434,250

67.5

601,494

Debt Securities Available for

Sale:

Corporate Securities

1,802,791

1,879,980

-4.1

1,835,937

Collateralized Loan

Obligations

822,111

1,420,584

-42.1

982,589

Agency Mortgage Backed

Securities

250,844

225,564

11.2

218,026

Securities of U.S.

Government Sponsored

Entities

299,722

292,583

2.4

292,117

Obligations of States and

Political Subdivisions

60,581

70,466

-14.0

62,186

U.S. Treasury Securities

n/m

4,955

Total Debt Securities

Available for Sale

3,236,049

3,889,177

-16.8

3,395,810

Debt Securities Held to

Maturity:

Agency Mortgage Backed

Securities

53,528

73,023

-26.7

57,927

Corporate Securities

737,146

730,350

0.9

735,447

Obligations of States and

Political Subdivisions (1)

48,674

65,352

-25.5

51,260

Total Debt Securities

Held to Maturity (1)

839,348

868,725

-3.4

844,634

Loans

771,030

844,677

-8.7

820,300

Allowance For Credit Losses

on Loans

(13,914

)

(15,879

)

-12.4

(14,780

)

Total Loans, net

757,116

828,798

-8.6

805,520

Premises and Equipment, net

25,722

26,458

-2.8

26,133

Identifiable Intangibles, net

291

-75.2

125

Goodwill

121,673

0.0

121,673

Other Assets

259,308

295,313

-12.2

280,885

Total Assets

5,966,624

6,464,685

-7.7

6,076,274

Liabilities and Shareholders'

Equity:

Deposits:

Noninterest-Bearing

2,241,802

2,514,161

-10.8

2,333,389

Interest-Bearing Transaction

920,461

1,066,038

-13.7

953,863

Savings

1,633,445

1,681,921

-2.9

1,642,360

Time

78,387

92,805

-15.5

82,238

Total Deposits

4,874,095

5,354,925

-9.0

5,011,850

Bank Term Funding

Program Borrowings

200,000

n/m

Securities Sold under

Repurchase Agreements

113,219

50,334

124.9

120,322

Total Short-Term

Borrowed Funds

113,219

250,334

-54.8

120,322

Other Liabilities

56,172

67,735

-17.1

54,145

Total Liabilities

5,043,486

5,672,994

-11.1

5,186,317

Shareholders' Equity:

Common Equity:

Paid-In Capital

470,844

473,989

-0.7

476,506

Accumulated Other

Comprehensive Loss

(136,768

)

(196,857

)

-30.5

(168,104

)

Retained Earnings

589,062

514,559

14.5

581,555

Total Shareholders' Equity

923,138

791,691

16.6

889,957

Total Liabilities and

Shareholders' Equity

5,966,624

6,464,685

-7.7

6,076,274

13. Income Statements.

(unaudited, in thousands except per-share amounts)

Q1'2025

Q1'2024

Change

Q4'2024

Interest and Loan Fee Income:

Loans

10,669

11,324

-5.8

11,167

Equity Securities

195

174

12.1

195

Debt Securities Available

for Sale

33,430

46,243

-27.7

36,843

Debt Securities Held to

Maturity

8,494

8,722

-2.6

8,538

Interest-Bearing Cash

6,703

2,283

193.6

5,659

Total Interest and Loan

Fee Income

59,491

68,746

-13.5

62,402

Interest Expense:

Transaction Deposits

119

-61.3

Savings Deposits

3,128

1,917

63.2

3,148

Time Deposits

-21.4

Bank Term Funding Program

Borrowings

843

n/m

Securities Sold under

Repurchase Agreements

167

222.1

204

Total Interest Expense

3,396

3,001

13.2

3,466

Net Interest and Loan

Fee Income

56,095

65,745

-14.7

58,936

(Reversal of) Provision

for Credit Losses

(550

)

300

n/m

Noninterest Income:

Service Charges on Deposit

Accounts

3,381

3,470

-2.6

3,501

Merchant Processing

Services

2,733

2,507

9.0

2,735

Debit Card Fees

1,581

1,543

2.5

1,902

Trust Fees

899

794

13.2

867

ATM Processing Fees

463

591

-21.7

506

Other Service Fees

429

438

-2.1

428

Life Insurance Gains

102

n/m

Other Noninterest Income

733

754

-2.8

694

Total Noninterest Income

10,321

10,097

2.2

10,633

Noninterest Expense:

Salaries and Related Benefits

12,126

12,586

-3.7

12,461

Occupancy and Equipment

5,038

5,040

-0.0

5,219

Outsourced Data Processing

2,697

2,536

6.3

2,610

Limited Partnership

Operating Losses

915

1,440

-36.5

1,095

Professional Fees

395

402

-1.7

369

Courier Service

688

649

6.0

692

Other Noninterest Expense

3,268

3,446

-5.2

3,407

Total Noninterest Expense

25,127

26,099

-3.7

25,853

Income Before Income Taxes

41,839

49,443

-15.4

43,716

Income Tax Provision

10,802

13,026

-17.1

12,016

Net Income

31,037

36,417

-14.8

31,700

Average Common Shares

Outstanding

26,642

26,674

-0.1

26,699

Diluted Average Common

Shares Outstanding

26,642

26,675

-0.1

26,701

Per Common Share Data:

Basic Earnings

1.16

1.37

-15.3

1.19

Diluted Earnings

1.16

1.37

-15.3

1.19

Dividends Paid

0.44

0.0

0.44

Footnotes and Abbreviations:

(1) Debt Securities Held To Maturity and Obligations of States and Political Subdivisions are net of related reserve for expected credit losses of $1 thousand at March 31, 2025, December 31, 2024 and March 31, 2024.

(FTE) Fully Taxable Equivalent. The Company presents its net interest margin and net interest income on a FTE basis using the current statutory federal tax rate. Management believes the FTE basis is valuable to the reader because the Company’s loan and investment securities portfolios contain a portion of municipal loans and securities that are federally tax exempt. The Company’s tax exempt loans and securities composition may not be similar to that of other banks, therefore in order to reflect the impact of the federally tax exempt loans and securities on the net interest margin and net interest income for comparability with other banks, the Company presents its net interest margin and net interest income on a FTE basis.

(a) Annualized

Westamerica Bancorporation Reports First Quarter 2025 Financial Results

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