Westamerica Bancorporation Reports Decrease in Net Income for Second Quarter of 2026

Westamerica Bancorporation reported a net income of $27.4 million, or $1.17 per diluted share, for the second quarter of 2026, a decrease from $29.1 million, or $1.12 per diluted share, in the same period last year. For the first half of 2026, the company recorded a net income of $54.7 million, down from $60.1 million in the first half of 2025. The decline in profitability was attributed to lower net interest and loan fee income, which fell to $52.7 million from $54.6 million year-over-year, alongside increased noninterest expenses.

Total assets as of June 30, 2026, were $5.8 billion, a slight decrease from $5.96 billion at the end of 2025. The company's loan portfolio also contracted, with total loans amounting to $668.8 million, down from $726.5 million at the end of the previous fiscal year. The decrease in loans was primarily driven by a reduction in commercial and consumer installment loans. The allowance for credit losses on loans decreased to $10.8 million from $11.6 million, reflecting management's assessment of credit risk in the current economic environment.

Westamerica's noninterest income for the second quarter was $10.3 million, nearly unchanged from $10.3 million in the prior year. However, for the first half of 2026, noninterest income decreased to $19.9 million from $20.6 million, primarily due to lower debit card fees and the absence of bank-owned life insurance gains, which were present in the previous year. Noninterest expenses increased to $26 million in the second quarter, up from $25.5 million, driven by higher salaries and related benefits, as well as professional fees.

The company continues to focus on managing its capital and liquidity. As of June 30, 2026, total deposits were $4.77 billion, a decrease from $4.84 billion at the end of 2025. The company maintains a strong capital position, with a total risk-based capital ratio of 23.16%. Looking ahead, Westamerica Bancorporation is closely monitoring economic conditions, including inflation and interest rate fluctuations, which could impact its operations and financial performance. The management remains committed to maintaining a conservative approach to credit risk and capital management while navigating the current economic landscape.