Westamerica Bancorporation has announced its financial results for the third quarter of 2026, reporting a net income of $28.2 million and diluted earnings per share (EPS) of $1.22. This marks an increase from the previous quarter's net income of $27.4 million and EPS of $1.17. The results are significant as they reflect the bank's continued strength in the national commercial banking sector.
David Payne, Chairman, President, and CEO of Westamerica, highlighted that the company's results benefited from its low-cost operating principles. The annualized cost of funding interest-earning loans, bonds, and cash was 0.26 percent for the third quarter, with excess cash being invested in higher interest-earning securities. This resulted in an annualized net interest margin of 3.81 percent, a slight increase from the previous quarter.
Westamerica's efficient operations are evident as the bank spent only 41 percent of its revenue on operating costs during the quarter. Notably, the company recognized no provision for credit losses, with nonperforming assets totaling just $476 thousand and an allowance for credit losses on loans at $10.5 million.
In addition to its solid earnings, Westamerica paid a dividend of $0.48 per common share during the quarter and retired 51 thousand common shares through its repurchase plan. The bank's capital ratios remain robust, exceeding the highest regulatory guidelines.
Westamerica Bancorporation operates through its wholly owned subsidiary, Westamerica Bank, which provides commercial banking and trust services throughout Northern and Central California. The bank's focus on maintaining low operational costs and investing wisely has positioned it well within the competitive landscape of the national commercial banking sector.
Looking ahead, Westamerica's management is optimistic about future performance, emphasizing the importance of their strategic approach in navigating the banking industry's challenges. The filing does not specify what actions will follow these results, but the strong financial performance suggests a positive outlook for both the bank and its stakeholders.