Westamerica Bancorporation Reports Third Quarter 2025 Financial Results

SAN RAFAEL, Calif., Oct. 16, 2025 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the third quarter 2025 of $28.3 million and diluted earnings per common share ("EPS") of $1.12. Third quarter 2025 results compare to second quarter 2025 net income of $29.1 million and EPS of $1.12.

"Westamerica’s third quarter 2025 results benefited from the Company’s low-cost operating principles. The annualized cost of funding interest-earning loans, bonds and cash was 0.26 percent for the third quarter 2025. The Company recognized no provision for credit losses in the third quarter 2025. At September 30, 2025, nonperforming assets were $2.6 million and the allowance for credit losses on loans was $11.9 million. Westamerica operated efficiently, spending 40 percent of its revenue on operating costs in the third quarter 2025,” said Chairman, President and CEO David Payne. “Third quarter 2025 results generated an annualized 10.9 percent return on average common equity. Westamerica paid a $0.46 per common share dividend during the third quarter 2025, and retired 488 thousand common shares using its share repurchase plan. Westamerica’s capital ratios remain at historically high levels exceeding the highest regulatory guidelines,” concluded Payne.

Net interest income on a fully-taxable equivalent (FTE) basis was $53.8 million for the third quarter 2025, compared to $54.6 million for the second quarter 2025. The annualized yield earned on loans, bonds and cash for the third quarter 2025 was 4.06 percent compared to 4.07 percent for the second quarter 2025. The annualized cost of funding interest-earning loans, bonds and cash was 0.26 percent for the third quarter 2025 compared to 0.22 percent for the second quarter 2025.

Noninterest income for the third quarter 2025 totaled $10.2 million compared to $10.3 million for the second quarter 2025.

Noninterest expense was $25.8 million for the third quarter 2025 compared to $25.5 million for the second quarter 2025. The increase in noninterest expense is primarily due to higher salaries and benefits expense due to one more business day in the third quarter 2025 compared to the second quarter 2025, higher occupancy and equipment expense and professional fees.

The income tax provision (FTE) for the third quarter 2025 was $10.0 million compared to $10.3 million for the second quarter 2025.

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
Anela Jonas – Investor Relations Contact
707-863-6019
[email protected]

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 June 30, 2025 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 October 16, 2025 WESTAMERICA BANCORPORATION FINANCIAL HIGHLIGHTS September 30, 2025 1. Net Income Summary. (in thousands except per-share amounts) % Q3'2025Q3'2024ChangeQ2'2025 Net Interest and Loan Fee Income (FTE)$53,846 $62,465 -13.8%$54,562 Provision for Credit Losses - - n/m - Noninterest Income 10,151 11,925 -14.9% 10,315 Noninterest Expense 25,800 26,309 -1.9% 25,529 Income Before Taxes (FTE) 38,197 48,081 -20.6% 39,348 Income Tax Provision (FTE) 9,934 13,024 -23.7% 10,282 Net Income$28,263 $35,057 -19.4%$29,066 Average Common Shares Outstanding 25,341 26,685 -5.0% 25,889 Diluted Average Common Shares Outstanding 25,341 26,686 -5.0% 25,889 Operating Ratios: Basic Earnings Per Common Share$1.12 $1.31 -14.5%$1.12 Diluted Earnings Per Common Share 1.12 1.31 -14.5% 1.12 Return On Assets (a) 1.86% 2.16% 1.93% Return On Common Equity (a) 10.9% 13.7% 11.2% Net Interest Margin (FTE) (a) 3.80% 4.08% 3.85% Efficiency Ratio (FTE) 40.3% 35.4% 39.3% Dividends Paid Per Common Share$0.46 $0.44 4.5%$0.46 Common Dividend Payout Ratio 41% 33% 41% % 9/30'25YTD9/30'24YTDChange Net Interest and Loan Fee Income (FTE)$164,798 $192,659 -14.5% (Reversal of) Provision for Credit Losses (550) 300 n/m Noninterest Income 30,787 32,522 -5.3% Noninterest Expense 76,456 78,538 -2.7% Income Before Taxes (FTE) 119,679 146,343 -18.2% Income Tax Provision (FTE) 31,313 39,407 -20.5% Net Income$88,366 $106,936 -17.4% Average Common Shares Outstanding 25,953 26,680 -2.7% Diluted Average Common Shares Outstanding 25,953 26,681 -2.7% Operating Ratios: Basic Earnings Per Common Share$3.40 $4.01 -15.2% Diluted Earnings Per Common Share 3.40 4.01 -15.2% Return On Assets (a) 1.94% 2.19% Return On Common Equity (a) 11.4% 14.4% Net Interest Margin (FTE) (a) 3.85% 4.18% Efficiency Ratio (FTE) 39.1% 34.9% Dividends Paid Per Common Share$1.36 $1.32 3.0% Common Dividend Payout Ratio 40% 33% 2. Net Interest Income. (dollars in thousands) % Q3'2025Q3'2024ChangeQ2'2025 Interest and Loan Fee Income (FTE)$57,491 $68,110 -15.6%$57,751 Interest Expense 3,645 5,645 -35.4% 3,189 Net Interest and Loan Fee Income (FTE)$53,846 $62,465 -13.8%$54,562 Average Earning Assets$5,621,797 $6,062,174 -7.3%$5,652,443 Average Interest-Bearing Liabilities 2,724,510 2,950,093 -7.6% 2,693,505 Yield on Earning Assets (FTE) (a) 4.06% 4.45% 4.07% Cost of Funds (a) 0.26% 0.37% 0.22% Net Interest Margin (FTE) (a) 3.80% 4.08% 3.85% Interest Expense / Interest-Bearing Liabilities (a) 0.53% 0.76% 0.48% Net Interest Spread (FTE) (a) 3.53% 3.69% 3.59% % 9/30'25YTD9/30'24YTDChange Interest and Loan Fee Income (FTE)$175,028 $206,612 -15.3% Interest Expense 10,230 13,953 -26.7% Net Interest and Loan Fee Income (FTE)$164,798 $192,659 -14.5% Average Earning Assets$5,689,058 $6,108,885 -6.9% Average Interest-Bearing Liabilities 2,729,204 2,969,078 -8.1% Yield on Earning Assets (FTE) (a) 4.09% 4.48% Cost of Funds (a) 0.24% 0.30% Net Interest Margin (FTE) (a) 3.85% 4.18% Interest Expense / Interest-Bearing Liabilities (a) 0.50% 0.63% Net Interest Spread (FTE) (a) 3.59% 3.85% 3. Loans & Other Earning Assets. (average volume, dollars in thousands) % Q3'2025Q3'2024ChangeQ2'2025 Total Assets$6,018,937 $6,461,843 -6.9%$6,042,100 Total Earning Assets 5,621,797 6,062,174 -7.3% 5,652,443 Total Loans 744,046 831,418 -10.5% 762,216 Commercial Loans 113,215 136,160 -16.9% 115,943 Commercial Real Estate Loans 486,751 493,272 -1.3% 488,960 Consumer Loans 144,080 201,986 -28.7% 157,313 Total Investment Securities 4,175,230 4,736,024 -11.8% 4,236,303 Debt Securities Available for Sale 3,331,315 3,867,451 -13.9% 3,385,972 Debt Securities Held to Maturity 829,341 854,346 -2.9% 836,104 Equity Securities 14,574 14,227 2.4% 14,227 Total Interest-Bearing Cash 702,521 494,732 42.0% 653,924 Loans / Deposits 15.5% 16.3% 15.7% % 9/30'25YTD9/30'24YTDChange Total Assets$6,082,169 $6,512,138 -6.6% Total Earning Assets 5,689,058 6,108,885 -6.9% Total Loans 765,231 840,961 -9.0% Commercial Loans 116,423 134,402 -13.4% Commercial Real Estate Loans 490,991 489,836 0.2% Consumer Loans 157,817 216,723 -27.2% Total Investment Securities 4,268,226 4,925,557 -13.3% Debt Securities Available for Sale 3,418,176 4,047,131 -15.5% Debt Securities Held to Maturity 835,706 864,199 -3.3% Equity Securities 14,344 14,227 0.8% Total Interest-Bearing Cash 655,601 342,367 91.5% Loans / Deposits 15.7% 16.1% 4. Deposits, Other Interest-Bearing Liabilities & Equity. (average volume, dollars in thousands) % Q3'2025Q3'2024ChangeQ2'2025 Total Deposits$4,806,568 $5,092,244 -5.6%$4,841,803 Noninterest Demand 2,201,644 2,425,646 -9.2% 2,245,077 Interest-Bearing Transaction 895,504 937,694 -4.5% 908,367 Savings 1,636,259 1,639,997 -0.2% 1,611,845 Time greater than $100K 25,671 32,815 -21.8% 27,306 Time less than $100K 47,490 56,092 -15.3% 49,208 Total Short-Term Borrowings 119,586 283,495 -57.8% 96,779 Bank Term Funding Program Borrowings - 167,391 n/m - Securities Sold under Repurchase Agreements 119,586 116,104 3.0% 96,779 Shareholders' Equity 1,026,618 1,016,642 1.0% 1,037,185 Demand Deposits / Total Deposits 45.8% 47.6% 46.4% Transaction & Savings Deposits / Total Deposits 98.5% 98.3% 98.4% % 9/30'25YTD9/30'24YTDChange Total Deposits$4,868,418 $5,224,158 -6.8% Noninterest Demand 2,246,259 2,480,815 -9.5% Interest-Bearing Transaction 912,830 992,363 -8.0% Savings 1,632,529 1,658,106 -1.5% Time greater than $100K 27,465 34,550 -20.5% Time less than $100K 49,335 58,324 -15.4% Total Short-Term Borrowings 107,045 225,735 -52.6% Bank Term Funding Program Borrowings - 143,412 n/m Securities Sold under Repurchase Agreements 107,045 82,323 30.0% Shareholders' Equity 1,039,802 991,229 4.9% Demand Deposits / Total Deposits 46.1% 47.5% Transaction & Savings Deposits / Total Deposits 98.4% 98.2% 5. Interest Yields Earned & Rates Paid. (dollars in thousands) Q3'2025 AverageIncome/Yield (a) / VolumeExpenseRate (a) Interest & Loan Fee Income Earned: Total Earning Assets (FTE)$5,621,797 $57,491 4.06% Total Loans (FTE) 744,046 10,321 5.51% Commercial Loans (FTE) 113,215 1,713 6.01% Commercial Real Estate Loans 486,751 6,438 5.25% Consumer Loans 144,080 2,170 5.98% Total Investment Securities (FTE) 4,175,230 39,330 3.75% Total Debt Securities Available for Sale (FTE) 3,331,315 30,449 3.63% Corporate Securities 1,919,304 12,784 2.66% Collateralized Loan Obligations 658,786 10,505 6.24% Agency Mortgage Backed Securities 384,703 3,945 4.10% Securities of U.S. Government Sponsored Entities 312,563 2,777 3.55% Obligations of States and Political Subdivisions (FTE) 55,959 438 3.13% Total Debt Securities Held to Maturity (FTE) 829,341 8,446 4.07% Agency Mortgage Backed Securities 48,296 264 2.19% Corporate Securities 739,492 7,815 4.23% Obligations of States and Political Subdivisions (FTE) 41,553 367 3.53% Equity Securities (FTE) 14,574 435 11.92% Total Interest-Bearing Cash 702,521 7,840 4.37% Interest Expense Paid: Total Earning Assets 5,621,797 3,645 0.26% Total Interest-Bearing Liabilities 2,724,510 3,645 0.53% Total Interest-Bearing Deposits 2,604,924 3,453 0.53% Interest-Bearing Transaction 895,504 45 0.02% Savings 1,636,259 3,361 0.81% Time less than $100K 47,490 35 0.29% Time greater than $100K 25,671 12 0.19% Total Short-Term Borrowings 119,586 192 0.64% Securities Sold under Repurchase Agreements 119,586 192 0.64% Net Interest Income and Margin (FTE) $53,846 3.80% Q3'2024 AverageIncome/Yield (a) / VolumeExpenseRate (a) Interest & Loan Fee Income Earned: Total Earning Assets (FTE)$6,062,174 $68,110 4.45% Total Loans (FTE) 831,418 11,526 5.52% Commercial Loans (FTE) 136,160 2,393 7.00% Commercial Real Estate Loans 493,272 6,308 5.09% Consumer Loans 201,986 2,825 5.57% Total Investment Securities (FTE) 4,736,024 49,822 4.17% Total Debt Securities Available for Sale (FTE) 3,867,451 40,722 4.16% Corporate Securities 2,074,145 14,268 2.75% Collateralized Loan Obligations 1,166,189 21,459 7.20% Agency Mortgage Backed Securities 244,994 1,638 2.68% Securities of U.S. Government sponsored entities 310,138 2,777 3.58% Obligations of States and Political Subdivisions (FTE) 67,141 518 3.08% U.S. Treasury Securities 4,844 62 5.13% Total Debt Securities Held to Maturity (FTE) 854,346 8,689 4.07% Agency Mortgage Backed Securities 65,545 376 2.29% Corporate Securities 732,689 7,815 4.27% Obligations of States and Political Subdivisions (FTE) 56,112 498 3.55% Equity Securities 14,227 411 11.55% Total Interest-Bearing Cash 494,732 6,762 5.35% Interest Expense Paid: Total Earning Assets 6,062,174 5,645 0.37% Total Interest-Bearing Liabilities 2,950,093 5,645 0.76% Total Interest-Bearing Deposits 2,666,598 3,113 0.46% Interest-Bearing Transaction 937,694 47 0.02% Savings 1,639,997 2,990 0.73% Time less than $100K 56,092 46 0.33% Time greater than $100K 32,815 30 0.36% Total Short-Term Borrowings 283,495 2,532 3.54% Bank Term Funding Program Borrowings 167,391 2,278 5.40% Securities Sold under Repurchase Agreements 116,104 254 0.87% Net Interest Income and Margin (FTE) $62,465 4.08% 6. Noninterest Income. (dollars in thousands except per-share amounts) % Q3'2025Q3'2024ChangeQ2'2025 Service Charges on Deposit Accounts$3,317 $3,585 -7.5%$3,368 Merchant Processing Services 2,860 2,474 15.6% 2,687 Debit Card Fees 1,603 1,702 -5.8% 1,664 Trust Fees 895 846 5.8% 867 ATM Processing Fees 483 533 -9.4% 482 Other Service Fees 448 454 -1.3% 450 Bank Owned Life Insurance Gains - 202 n/m 106 Unrealized Losses on Equity Securities (90) - n/m - Other Noninterest Income 635 2,129 -70.2% 691 Total Noninterest Income$10,151 $11,925 -14.9%$10,315 Operating Ratios: Total Revenue (FTE)$63,997 $74,390 -14.0%$64,877 Noninterest Income / Revenue (FTE) 15.9% 16.0% 15.9% Service Charges / Avg. Deposits (a) 0.27% 0.28% 0.28% Total Revenue (FTE) Per Avg. Common Share (a)$10.02 $11.09 -9.7%$10.05 % 9/30'25YTD9/30'24YTDChange Service Charges on Deposit Accounts$10,066 $10,524 -4.4% Merchant Processing Services 8,280 7,714 7.3% Debit Card Fees 4,848 4,951 -2.1% Trust Fees 2,661 2,451 8.6% ATM Processing Fees 1,428 1,664 -14.2% Other Service Fees 1,327 1,342 -1.1% Bank Owned Life Insurance Gains 208 202 n/m Unrealized Losses on Equity Securities (90) - n/m Other Noninterest Income 2,059 3,674 -44.0% Total Noninterest Income$30,787 $32,522 -5.3% Operating Ratios: Total Revenue (FTE)$195,585 $225,181 -13.1% Noninterest Income / Revenue (FTE) 15.7% 14.4% Service Charges / Avg. Deposits (a) 0.28% 0.27% Total Revenue (FTE) Per Avg. Common Share (a)$10.08 $11.27 -10.6% 7. Noninterest Expense. (dollars in thousands) % Q3'2025Q3'2024ChangeQ2'2025 Salaries and Related Benefits$12,387 $12,762 -2.9%$12,303 Occupancy and Equipment 5,253 5,256 -0.1% 5,154 Outsourced Data Processing 2,722 2,614 4.1% 2,709 Limited Partnership Operating Losses 915 1,210 -24.4% 915 Professional Fees 643 337 90.8% 386 Courier Service 738 682 8.2% 687 Other Noninterest Expense 3,142 3,448 -8.9% 3,375 Total Noninterest Expense$25,800 $26,309 -1.9%$25,529 Operating Ratios: Noninterest Expense / Avg. Earning Assets (a) 1.82% 1.73% 1.81% Noninterest Expense / Revenues (FTE) 40.3% 35.4% 39.3% % 9/30'25YTD9/30'24YTDChange Salaries and Related Benefits$36,816 $37,831 -2.7% Occupancy and Equipment 15,445 15,454 -0.1% Outsourced Data Processing 8,128 7,661 6.1% Limited Partnership Operating Losses 2,745 4,090 -32.9% Professional Fees 1,424 1,101 29.3% Courier Service 2,113 2,017 4.8% Other Noninterest Expense 9,785 10,384 -5.8% Total Noninterest Expense$76,456 $78,538 -2.7% Operating Ratios: Noninterest Expense / Avg. Earning Assets (a) 1.80% 1.72% Noninterest Expense / Revenues (FTE) 39.1% 34.9% 8. Allowance for Credit Losses. (dollars in thousands) % Q3'2025Q3'2024ChangeQ2'2025 Average Total Loans$744,046 $831,418 -10.5%$762,216 Beginning of Period Allowance for Credit Losses on Loans (ACLL)$13,787 $15,952 -13.6%$13,914 Provision for Credit Losses - - n/m - Net ACLL Losses (1,928) (634)n/m (127) End of Period ACLL$11,859 $15,318 -22.6%$13,787 Gross ACLL Recoveries / Gross ACLL Losses 22% 62% 87% Net ACLL Losses / Avg. Total Loans (a) -1.03% -0.30% -0.07% % 9/30'25YTD9/30'24YTDChange Average Total Loans$765,231 $840,961 -9.0% Beginning of Period ACLL$14,780 $16,867 -12.4% (Reversal of) Provision for Credit Losses (550) 300 n/m Net ACLL Losses (2,371) (1,849)n/m End of Period ACLL$11,859 $15,318 -22.6% Gross ACLL Recoveries / Gross ACLL Losses 54% 64% Net ACLL Losses / Avg. Total Loans (a) -0.41% -0.29% (dollars in thousands) % 9/30/259/30/24Change6/30/25 Allowance for Credit Losses on Loans$11,859 $15,318 -22.6%$13,787 Allowance for Credit Losses on Held to Maturity Securities 1 1 0.0% 1 Total Allowance for Credit Losses$11,860 $15,319 -22.6%$13,788 Allowance for Unfunded Credit Commitments$201 $201 0.0%$201 9. Credit Quality. (dollars in thousands) % 9/30/259/30/24Change6/30/25 Nonperforming Loans: Nonperforming Nonaccrual Loans$1,619 $252 542.5%$ - Performing Nonaccrual Loans 728 - n/m 4,553 Total Nonaccrual Loans 2,347 252 831.3% 4,553 Accruing Loans 90+ Days Past Due 297 667 -55.5% 411 Total Nonperforming Loans$2,644 $919 187.7%$4,964 Total Loans Outstanding$741,579 $833,967 -11.1%$748,264 Total Assets 5,914,438 6,161,143 -4.0% 5,825,069 Loans: Allowance for Credit Losses on Loans$11,859 $15,318 -22.6%$13,787 Allowance for Credit Losses on Loans / Loans 1.60% 1.84% 1.84% Nonperforming Loans / Total Loans 0.36% 0.11% 0.66% 10. Liquidity. At September 30, 2025, the Company had $659,268 thousand in cash balances. During the twelve months ending September 30, 2026, the Company expects to receive $338,000 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 September 30, 2025, the Company’s debt securities which qualify as collateral for borrowing totaled $3,752,853 thousand. In the ordinary course of business, the Company pledges debt securities as collateral for certain depository customers; at September 30, 2025, the Company had pledged $713,200 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 September 30, 2025, the Company had pledged $647,776 thousand in debt securities at the Federal Reserve Bank. During the nine months ended September 30, 2025, the Company’s average borrowings from the Federal Reserve Bank and correspondent banks were $-0- thousand and $-0- thousand, respectively, and at September 30, 2025, the Company had no borrowings from the Federal Reserve Bank or other correspondent banks. At September 30, 2025, the Company had access to borrowing from the Federal Reserve up to $647,776 thousand based on collateral pledged at September 30, 2025. At September 30, 2025, the Company’s estimated unpledged collateral qualifying debt securities totaled $1,970,022 thousand. Debt securities eligible as collateral are shown at market value. (in thousands) 9/30/25 Debt Securities Eligible as Collateral: Corporate Securities $2,531,359 Collateralized Loan Obligations rated AAA 190,368 Obligations of States and Political Subdivisions 91,351 Agency Mortgage Backed Securities 634,583 Securities of U.S. Government Sponsored Entities 305,192 Total Debt Securities Eligible as Collateral $3,752,853 Debt Securities Pledged as Collateral: Debt Securities Pledged at the Federal Reserve Bank ($647,776) Deposits by Public Entities (713,200) Securities Sold under Repurchase Agreements (415,475) Other (6,380) Total Debt Securities Pledged as Collateral ($1,782,831) Estimated Debt Securities Available to Pledge $1,970,022 11. Capital. (in thousands, except per-share amounts) % 9/30/259/30/24Change6/30/25 Shareholders' Equity$931,646 $909,040 2.5%$921,783 Total Assets 5,914,438 6,161,143 -4.0% 5,825,069 Shareholders' Equity/ Total Assets 15.75% 14.75% 15.82% Shareholders' Equity/ Total Loans 125.63% 109.00% 123.19% Tangible Common Equity Ratio 13.98% 13.03% 14.03% Common Shares Outstanding 25,107 26,686 -5.9% 25,587 Common Equity Per Share$37.11 $34.06 8.9%$36.03 Market Value Per Common Share 49.99 49.42 1.2% 48.44 (shares in thousands) % Q3'2025Q3'2024ChangeQ2'2025 Share Retirements (Issuances): Total Shares Retired 488 - n/m 773 Average Retirement Price$48.96 $ - n/m$49.61 Net Shares Retired (Issued) 480 (3)n/m 773 % 9/30'25YTD9/30'24YTDChange Total Shares Retired 1,622 4 n/m Average Retirement Price$49.60 $45.58 n/m Net Shares Retired (Issued) 1,601 (15)n/m 12. Period-End Balance Sheets. (unaudited, dollars in thousands) % 9/30/259/30/24Change6/30/25 Assets: Cash and Due from Banks$659,268 $502,945 31.1%$626,437 Debt Securities Available for Sale: Corporate Securities 1,797,562 1,901,617 -5.5% 1,792,021 Collateralized Loan Obligations 561,063 1,078,920 -48.0% 780,147 Agency Mortgage Backed Securities 589,654 227,565 159.1% 291,543 Securities of U.S. Government Sponsored Entities 305,192 303,609 0.5% 301,903 Obligations of States and Political Subdivisions 51,853 63,876 -18.8% 60,835 U.S. Treasury Securities - 4,899 n/m - Total Debt Securities Available for Sale 3,305,324 3,580,486 -7.7% 3,226,449 Debt Securities Held to Maturity: Agency Mortgage Backed Securities 46,433 62,745 -26.0% 49,878 Corporate Securities 740,545 733,748 0.9% 738,846 Obligations of States and Political Subdivisions (1) 39,527 53,768 -26.5% 45,715 Total Debt Securities Held to Maturity (1) 826,505 850,261 -2.8% 834,439 Loans 741,579 833,967 -11.1% 748,264 Allowance For Credit Losses on Loans (11,859) (15,318)-22.6% (13,787) Total Loans, net 729,720 818,649 -10.9% 734,477 Premises and Equipment, net 25,874 26,129 -1.0% 25,850 Identifiable Intangibles, net - 178 n/m 19 Goodwill 121,673 121,673 0.0% 121,673 Other Assets 246,074 260,822 -5.7% 255,725 Total Assets$5,914,438 $6,161,143 -4.0%$5,825,069 Liabilities and Shareholders' Equity: Deposits: Noninterest-Bearing$2,214,100 $2,375,958 -6.8%$2,175,841 Interest-Bearing Transaction 881,367 925,455 -4.8% 894,774 Savings 1,626,474 1,677,332 -3.0% 1,603,974 Time 71,238 86,305 -17.5% 72,946 Total Deposits 4,793,179 5,065,050 -5.4% 4,747,535 Securities Sold under Repurchase Agreements 133,651 132,487 0.9% 101,210 Total Short-Term Borrowed Funds 133,651 132,487 0.9% 101,210 Other Liabilities 55,962 54,566 2.6% 54,541 Total Liabilities 4,982,792 5,252,103 -5.1% 4,903,286 Shareholders' Equity: Common Equity: Paid-In Capital 448,600 475,096 -5.6% 456,964 Accumulated Other Comprehensive Loss (99,913) (127,653)-21.7% (116,747) Retained Earnings 582,959 561,597 3.8% 581,566 Total Shareholders' Equity 931,646 909,040 2.5% 921,783 Total Liabilities and Shareholders' Equity$5,914,438 $6,161,143 -4.0%$5,825,069 13. Income Statements. (unaudited, in thousands except per-share amounts) % Q3'2025Q3'2024ChangeQ2'2025 Interest and Loan Fee Income: Loans$10,257 $11,441 -10.3%$10,523 Equity Securities 409 388 5.4% 408 Debt Securities Available for Sale 30,358 40,616 -25.3% 30,815 Debt Securities Held to Maturity 8,370 8,587 -2.5% 8,448 Interest-Bearing Cash 7,840 6,762 15.9% 7,273 Total Interest and Loan Fee Income 57,234 67,794 -15.6% 57,467 Interest Expense: Transaction Deposits 45 47 -4.3% 44 Savings Deposits 3,361 2,990 12.4% 2,950 Time Deposits 47 76 -38.2% 51 Bank Term Funding Program Borrowings - 2,278 n/m - Securities Sold under Repurchase Agreements 192 254 -24.5% 144 Total Interest Expense 3,645 5,645 -35.4% 3,189 Net Interest and Loan Fee Income 53,589 62,149 -13.8% 54,278 Provision for Credit Losses - - n/m - Noninterest Income: Service Charges on Deposit Accounts 3,317 3,585 -7.5% 3,368 Merchant Processing Services 2,860 2,474 15.6% 2,687 Debit Card Fees 1,603 1,702 -5.8% 1,664 Trust Fees 895 846 5.8% 867 ATM Processing Fees 483 533 -9.4% 482 Other Service Fees 448 454 -1.3% 450 Bank Owned Life Insurance Gains - 202 n/m 106 Other Noninterest Income 545 2,129 -74.4% 691 Total Noninterest Income 10,151 11,925 -14.9% 10,315 Noninterest Expense: Salaries and Related Benefits 12,387 12,762 -2.9% 12,303 Occupancy and Equipment 5,253 5,256 -0.1% 5,154 Outsourced Data Processing 2,722 2,614 4.1% 2,709 Limited Partnership Operating Losses 915 1,210 -24.4% 915 Professional Fees 643 337 90.8% 386 Courier Service 738 682 8.2% 687 Other Noninterest Expense 3,142 3,448 -8.9% 3,375 Total Noninterest Expense 25,800 26,309 -1.9% 25,529 Income Before Income Taxes 37,940 47,765 -20.6% 39,064 Income Tax Provision 9,677 12,708 -23.9% 9,998 Net Income$28,263 $35,057 -19.4%$29,066 Average Common Shares Outstanding 25,341 26,685 -5.0% 25,889 Diluted Average Common Shares Outstanding 25,341 26,686 -5.0% 25,889 Per Common Share Data: Basic Earnings$1.12 $1.31 -14.5%$1.12 Diluted Earnings 1.12 1.31 -14.5% 1.12 Dividends Paid 0.46 0.44 4.5% 0.46 % 9/30'25YTD9/30'24YTDChange Interest and Loan Fee Income: Loans$31,449 $34,119 -7.8% Equity Securities 1,239 1,178 5.2% Debt Securities Available for Sale 94,376 130,345 -27.6% Debt Securities Held to Maturity 25,312 25,964 -2.5% Interest-Bearing Cash 21,816 14,006 55.8% Total Interest and Loan Fee Income 174,192 205,612 -15.3% Interest Expense: Transaction Deposits 135 235 -42.6% Savings Deposits 9,439 7,229 30.6% Time Deposits 153 215 -28.8% Bank Term Funding Program Borrowings - 5,813 n/m Securities Sold under Repurchase Agreements 503 461 9.1% Total Interest Expense 10,230 13,953 -26.7% Net Interest and Loan Fee Income 163,962 191,659 -14.5% (Reversal of) Provision for Credit Losses (550) 300 n/m Noninterest Income: Service Charges on Deposit 10,066 10,524 -4.4% Accounts Merchant Processing Services 8,280 7,714 7.3% Debit Card Fees 4,848 4,951 -2.1% Trust Fees 2,661 2,451 8.6% ATM Processing Fees 1,428 1,664 -14.2% Other Service Fees 1,327 1,342 -1.1% Bank Owned Life Insurance Gains 208 202 n/m Other Noninterest Income 1,969 3,674 -46.4% Total Noninterest Income 30,787 32,522 -5.3% Noninterest Expense: Salaries and Related Benefits 36,816 37,831 -2.7% Occupancy and Equipment 15,445 15,454 -0.1% Outsourced Data Processing 8,128 7,661 6.1% Limited Partnership Operating Losses 2,745 4,090 -32.9% Professional Fees 1,424 1,101 29.3% Courier Service 2,113 2,017 4.8% Other Noninterest Expense 9,785 10,384 -5.8% Total Noninterest Expense 76,456 78,538 -2.7% Income Before Income Taxes 118,843 145,343 -18.2% Income Tax Provision 30,477 38,407 -20.6% Net Income$88,366 $106,936 -17.4% Average Common Shares Outstanding 25,953 26,680 -2.7% Diluted Average Common Shares Outstanding 25,953 26,681 -2.7% Per Common Share Data: Basic Earnings$3.40 $4.01 -15.2% Diluted Earnings 3.40 4.01 -15.2% Dividends Paid 1.36 1.32 3.0% 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 September 30, 2025, June 30, 2025 and September 30, 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 Certain amounts in prior periods have been reclassified to conform to the current presentation.