Westamerica Bancorporation reported net income of $28.2 million for the third quarter of 2026, a slight increase from the $27.4 million generated in the second quarter of 2026. Diluted earnings per common share (EPS) were $1.22 for the third quarter, compared to $1.17 in the prior quarter.
The company reported net interest income on a fully-taxable equivalent (FTE) basis of $53.5 million for the quarter, up from $52.7 million in the second quarter. The annualized net interest margin was 3.81 percent, a 4 basis point increase from the previous quarter. The annualized cost of funding interest-earning assets was 0.26 percent, while the yield earned on loans, bonds, and cash was 4.07 percent.
Noninterest income for the third quarter totaled $10.7 million, compared to $10.3 million in the second quarter. The increase was attributed to higher merchant processing services fee income related to a one-time termination fee and increased transaction volumes. Noninterest expense was $26.2 million, up from $26.0 million in the prior quarter, primarily due to higher occupancy and equipment expenses and professional fees, partially offset by lower salaries and benefits expense.
The company recognized no provision for credit losses in the third quarter of 2026. Nonperforming assets stood at $476 thousand as of September 30, 2026, and the allowance for credit losses on loans was $10.5 million. The company paid a dividend of $0.48 per common share during the quarter and retired 51,000 common shares through its share repurchase plan.
Westamerica Bancorporation’s return on average common equity was 11.5 percent for the third quarter of 2026. The company’s capital ratios remain at historically high levels, exceeding the highest regulatory guidelines.
