Westamerica Bancorporation reported third-quarter 2026 net income of $28.2 million, up from $27.4 million in the second quarter, while diluted earnings per share rose to $1.22 from $1.17.
Net interest income on a fully taxable equivalent basis increased to $53.5 million from $52.7 million. The company’s annualized net interest margin widened to 3.81% from 3.77%, a 4-basis-point increase. The annualized yield on loans, bonds and cash improved to 4.07% from 4.01%, while the annualized cost of funding those assets increased to 0.26% from 0.24%.
Noninterest income climbed to $10.7 million from $10.3 million, driven by higher merchant processing services fee income, including a one-time termination fee, and stronger transaction volumes. Noninterest expense edged up to $26.2 million from $26.0 million, reflecting higher occupancy and equipment expense and professional fees, partly offset by lower salaries and benefits.
The bank recorded no provision for credit losses in the quarter, unchanged from the prior period. At Sept. 30, nonperforming assets were $476,000, and the allowance for credit losses on loans stood at $10.5 million.
Westamerica said it generated an annualized return on average common equity of 11.5% in the quarter. It paid a $0.48 per share dividend and repurchased 51,000 common shares. The company also said its capital ratios remained above the highest regulatory guidelines. Following these announcements, the company's shares moved 0.12%, and are now trading at a price of $58.70. If you want to know more, read the company's complete 8-K report here.
