SAN RAFAEL, Calif., July 16, 2026 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the second quarter 2026 of $27.4 million and diluted earnings per common share ("EPS") of $1.17. Second quarter 2026 results compare to first quarter 2026 net income of $27.4 million and EPS of $1.13.
"Westamerica’s second quarter 2026 results benefited from the Company’s low-cost operating principles. The annualized cost of funding interest-earning loans, bonds and cash was 0.24 percent for the second quarter 2026. Operating expenses were well controlled and credit quality remained stable with nonperforming assets of $808 thousand at June 30, 2026”, said Chairman, President and CEO David Payne. “Second quarter 2026 results generated an annualized 11.3 percent return on average common equity. Westamerica paid a $0.48 per common share dividend during the second quarter 2026, and retired 753 thousand common shares using its share repurchase plan,” concluded Payne.
Net interest income on a fully-taxable equivalent (FTE) basis was $52.7 million for the second quarter 2026, compared to $52.7 million for the first quarter 2026. The annualized yield earned on loans, bonds and cash for the second quarter 2026 was 4.01 percent, compared to 3.98 percent for the first quarter 2026. The annualized cost of funding interest-earning loans, bonds and cash was 0.24 percent for the second quarter 2026, unchanged from the first quarter 2026.
The Company provided no provision for credit losses in the second quarter 2026 compared to a $300 thousand reversal of provision for credit losses in the first quarter of 2026. The Allowance for Credit Losses on Loans was $10.8 million at June 30, 2026 compared to $11.2 million at March 31, 2026.
Noninterest income for the second quarter 2026 totaled $10.3 million compared to $9.6 million for the first quarter 2026. The increase in noninterest income is primarily due to higher merchant processing fees, debit card fees and unrealized gains recognized on equity securities.
Noninterest expense for the second quarter 2026 totaled $26.0 million compared to $25.9 million for the first quarter 2026. The increase in noninterest expense is primarily due to higher salaries and benefits expense due to one more business day in the second quarter 2026 compared to the first quarter 2026 and higher professional fees partially offset by lower occupancy and equipment expense.
The income tax provision (FTE) for the second quarter 2026 was $9.5 million compared to $9.3 million for the first quarter 2026.
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
Robert A. Thorson – Investor Relations Contact
707-863-6090
[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, 2025 filed on Form 10-K and quarterly report for the quarter ended March 31, 2026 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 July 16, 2026 WESTAMERICA BANCORPORATION FINANCIAL HIGHLIGHTS June 30, 2026 1. Net Income Summary. (in thousands except per-share amounts) % Q2'2026Q2'2025ChangeQ1'2026 Net Interest and Loan Fee Income (FTE)$52,674 $54,562 -3.5%$52,690 (Reversal of) Provision for Credit Losses - - n/m (300) Noninterest Income 10,294 10,315 -0.2% 9,607 Noninterest Expense 26,037 25,529 2.0% 25,911 Income Before Taxes (FTE) 36,931 39,348 -6.1% 36,686 Income Tax Provision (FTE) 9,546 10,282 -7.2% 9,331 Net Income$27,385 $29,066 -5.8%$27,355 Average Common Shares Outstanding 23,306 25,889 -10.0% 24,306 Diluted Average Common Shares Outstanding 23,319 25,889 -9.9% 24,306 Operating Ratios: Basic Earnings Per Common Share$1.17 $1.12 4.9%$1.13 Diluted Earnings Per Common Share 1.17 1.12 4.5% 1.13 Return On Assets (a) 1.84% 1.93% 1.84% Return On Common Equity (a) 11.3% 11.2% 11.0% Net Interest Margin (FTE) (a) 3.77% 3.85% 3.74% Efficiency Ratio (FTE) 41.3% 39.3% 41.6% Dividends Paid Per Common Share$0.48 $0.46 4.3%$0.46 Common Dividend Payout Ratio 41% 41% 41% % 6/30'26YTD6/30'25YTDChange Net Interest and Loan Fee Income (FTE)$105,364 $110,952 -5.0% Reversal of Provision for Credit Losses (300) (550)n/m Noninterest Income 19,901 20,636 -3.6% Noninterest Expense 51,948 50,656 2.6% Income Before Taxes (FTE) 73,617 81,482 -9.7% Income Tax Provision (FTE) 18,877 21,379 -11.7% Net Income$54,740 $60,103 -8.9% Average Common Shares Outstanding 23,804 26,263 -9.4% Diluted Average Common Shares Outstanding 23,810 26,263 -9.3% Operating Ratios: Basic Earnings Per Common Share$2.30 $2.29 0.4% Diluted Earnings Per Common Share 2.30 2.29 0.4% Return On Assets (a) 1.84% 1.98% Return On Common Equity (a) 11.1% 11.6% Net Interest Margin (FTE) (a) 3.75% 3.87% Efficiency Ratio (FTE) 41.5% 38.5% Dividends Paid Per Common Share$0.94 $0.90 4.4% Common Dividend Payout Ratio 41% 39% 2. Net Interest Income. (dollars in thousands) % Q2'2026Q2'2025ChangeQ1'2026 Interest and Loan Fee Income (FTE)$55,995 $57,751 -3.0%$55,985 Interest Expense 3,321 3,189 4.1% 3,295 Net Interest and Loan Fee Income (FTE)$52,674 $54,562 -3.5%$52,690 Average Earning Assets$5,577,857 $5,652,443 -1.3%$5,644,066 Average Interest-Bearing Liabilities 2,766,057 2,693,505 2.7% 2,754,298 Yield on Earning Assets (FTE) (a) 4.01% 4.07% 3.98% Cost of Funds (a) 0.24% 0.22% 0.24% Net Interest Margin (FTE) (a) 3.77% 3.85% 3.74% Interest Expense / Interest-Bearing Liabilities (a) 0.48% 0.48% 0.49% Net Interest Spread (FTE) (a) 3.53% 3.59% 3.49% % 6/30'26YTD6/30'25YTDChange Interest and Loan Fee Income (FTE)$111,980 $117,537 -4.7% Interest Expense 6,616 6,585 0.5% Net Interest and Loan Fee Income (FTE)$105,364 $110,952 -5.0% Average Earning Assets$5,610,780 $5,723,246 -2.0% Average Interest-Bearing Liabilities 2,760,211 2,731,590 1.0% Yield on Earning Assets (FTE) (a) 3.99% 4.11% Cost of Funds (a) 0.24% 0.24% Net Interest Margin (FTE) (a) 3.75% 3.87% Interest Expense / Interest-Bearing Liabilities (a) 0.48% 0.49% Net Interest Spread (FTE) (a) 3.51% 3.62% 3. Loans & Other Earning Assets. (average volume, dollars in thousands) % Q2'2026Q2'2025ChangeQ1'2026 Total Assets$5,967,886 $6,042,100 -1.2%$6,034,899 Total Earning Assets 5,577,857 5,652,443 -1.3% 5,644,066 Total Loans 682,900 762,216 -10.4% 708,613 Commercial Loans 107,763 115,943 -7.1% 110,159 Commercial Real Estate Loans 465,156 488,960 -4.9% 477,402 Consumer Loans 109,981 157,313 -30.1% 121,052 Total Investment Securities 4,569,681 4,236,303 7.9% 4,469,072 Debt Securities Available for Sale 3,759,010 3,385,972 11.0% 3,643,302 Debt Securities Held to Maturity 796,225 836,104 -4.8% 811,170 Equity Securities 14,446 14,227 1.5% 14,600 Total Interest-Bearing Cash 325,276 653,924 -50.3% 466,381 Loans / Deposits 14.2% 15.7% 14.7% % 6/30'26YTD6/30'25YTDChange Total Assets$6,001,208 $6,114,310 -1.8% Total Earning Assets 5,610,780 5,723,246 -2.0% Total Loans 695,686 775,999 -10.3% Commercial Loans 108,955 118,054 -7.7% Commercial Real Estate Loans 471,245 493,146 -4.4% Consumer Loans 115,486 164,799 -29.9% Total Investment Securities 4,519,655 4,315,494 4.7% Debt Securities Available for Sale 3,701,476 3,462,326 6.9% Debt Securities Held to Maturity 803,656 838,941 -4.2% Equity Securities 14,523 14,227 2.1% Total Interest-Bearing Cash 395,439 631,753 -37.4% Loans / Deposits 14.5% 15.8% 4. Deposits, Other Interest-Bearing Liabilities & Equity. (average volume, dollars in thousands) % Q2'2026Q2'2025ChangeQ1'2026 Total Deposits$4,795,518 $4,841,803 -1.0%$4,822,635 Noninterest Demand 2,168,936 2,245,077 -3.4% 2,206,530 Interest-Bearing Transaction 931,438 908,367 2.5% 920,543 Savings 1,630,311 1,611,845 1.1% 1,628,180 Time greater than $100K 22,335 27,306 -18.2% 23,738 Time less than $100K 42,498 49,208 -13.6% 43,644 Total Short-Term Borrowings 139,475 96,779 44.1% 138,193 Securities Sold under Repurchase Agreements 139,475 96,779 44.1% 138,193 Shareholders' Equity 971,898 1,037,185 -6.3% 1,008,613 Demand Deposits / Total Deposits 45.2% 46.4% 45.8% Transaction & Savings Deposits / Total Deposits 98.6% 98.4% 98.6% % 6/30'26YTD6/30'25YTDChange Total Deposits$4,809,002 $4,899,856 -1.9% Noninterest Demand 2,187,629 2,268,936 -3.6% Interest-Bearing Transaction 926,021 921,637 0.5% Savings 1,629,251 1,630,633 -0.1% Time greater than $100K 23,033 28,377 -18.8% Time less than $100K 43,068 50,273 -14.3% Total Short-Term Borrowings 138,838 100,670 37.9% Securities Sold under Repurchase Agreements 138,838 100,670 37.9% Shareholders' Equity 990,154 1,046,504 -5.4% Demand Deposits / Total Deposits 45.5% 46.3% Transaction & Savings Deposits / Total Deposits 98.6% 98.4% 5. Interest Yields Earned & Rates Paid. (dollars in thousands) Q2'2026 AverageIncome/Yield (a) / VolumeExpenseRate (a) Interest & Loan Fee Income Earned: Total Earning Assets (FTE)$5,577,857 $55,995 4.01% Total Loans (FTE) 682,900 9,719 5.71% Commercial Loans (FTE) 107,763 1,642 6.11% Commercial Real Estate Loans 465,156 6,338 5.46% Consumer Loans 109,981 1,739 6.34% Total Investment Securities (FTE) 4,569,681 43,275 3.78% Total Debt Securities Available for Sale (FTE) 3,759,010 34,629 3.68% Corporate Securities 1,923,302 13,161 2.74% Collateralized Loan Obligations 247,344 3,506 5.61% Agency Mortgage Backed Securities 1,237,212 14,898 4.82% Securities of U.S. Government Sponsored Entities 307,779 2,709 3.52% Obligations of States and Political Subdivisions (FTE) 43,373 355 3.27% Total Debt Securities Held to Maturity (FTE) 796,225 8,184 4.11% Agency Mortgage Backed Securities 43,018 274 2.54% Corporate Securities 732,792 7,716 4.21% Obligations of States and Political Subdivisions (FTE) 20,415 194 3.80% Equity Securities (FTE) 14,446 462 12.79% Total Interest-Bearing Cash 325,276 3,001 3.65% Interest Expense Paid: Total Earning Assets 5,577,857 3,321 0.24% Total Interest-Bearing Liabilities 2,766,057 3,321 0.48% Total Interest-Bearing Deposits 2,626,582 3,110 0.48% Interest-Bearing Transaction 931,438 45 0.02% Savings 1,630,311 3,024 0.74% Time less than $100K 42,498 31 0.29% Time greater than $100K 22,335 10 0.18% Total Short-Term Borrowings 139,475 211 0.60% Securities Sold under Repurchase Agreements 139,475 211 0.60% Net Interest Income and Margin (FTE) $52,674 3.77% Q2'2025 AverageIncome/Yield (a) / VolumeExpenseRate (a) Interest & Loan Fee Income Earned: Total Earning Assets (FTE)$5,652,443 $57,751 4.07% Total Loans (FTE) 762,216 10,591 5.57% Commercial Loans (FTE) 115,943 1,833 6.34% Commercial Real Estate Loans 488,960 6,452 5.29% Consumer Loans 157,313 2,306 5.88% Total Investment Securities (FTE) 4,236,303 39,887 3.75% Total Debt Securities Available for Sale (FTE) 3,385,972 30,920 3.64% Corporate Securities 1,945,959 12,898 2.65% Collateralized Loan Obligations 792,914 12,405 6.19% Agency Mortgage Backed Securities 273,083 2,334 3.42% Securities of U.S. Government sponsored Entities 311,923 2,777 3.56% Obligations of States and Political Subdivisions (FTE) 62,093 506 3.26% Total Debt Securities Held to Maturity (FTE) 836,104 8,533 4.08% Agency Mortgage Backed Securities 51,839 304 2.35% Corporate Securities 737,787 7,816 4.24% Obligations of States and Political Subdivisions (FTE) 46,478 413 3.56% Equity Securities (FTE) 14,227 434 12.21% Total Interest-Bearing Cash 653,924 7,273 4.40% Interest Expense Paid: Total Earning Assets 5,652,443 3,189 0.22% Total Interest-Bearing Liabilities 2,693,505 3,189 0.48% Total Interest-Bearing Deposits 2,596,726 3,045 0.47% Interest-Bearing Transaction 908,367 44 0.02% Savings 1,611,845 2,950 0.73% Time less than $100K 49,208 37 0.30% Time greater than $100K 27,306 14 0.21% Total Short-Term Borrowings 96,779 144 0.60% Securities Sold under Repurchase Agreements 96,779 144 0.60% Net Interest Income and Margin (FTE) $54,562 3.85% 6. Noninterest Income. (dollars in thousands except per-share amounts) % Q2'2026Q2'2025ChangeQ1'2026 Service Charges on Deposit Accounts$3,380 $3,368 0.4%$3,332 Merchant Processing Services 2,840 2,687 5.7% 2,739 Debit Card Fees 1,462 1,664 -12.1% 1,324 Trust Fees 965 867 11.3% 927 ATM Processing Fees 484 482 0.4% 450 Other Service Fees 445 450 -1.1% 408 Bank Owned Life Insurance Gains - 106 n/m - Unrealized Gains (Losses) on Equity Securities 36 - n/m (247) Other Noninterest Income 682 691 -1.3% 674 Total Noninterest Income$10,294 $10,315 -0.2%$9,607 Operating Ratios: Total Revenue (FTE)$62,968 $64,877 -2.9%$62,297 Noninterest Income / Revenue (FTE) 16.3% 15.9% 15.4% Service Charges / Avg. Deposits (a) 0.28% 0.28% 0.28% Total Revenue (FTE) Per Avg. Common Share (a)$10.84 $10.05 7.8%$10.39 % 6/30'26YTD6/30'25YTDChange Service Charges on Deposit Accounts$6,712 $6,749 -0.5% Merchant Processing Services 5,579 5,420 2.9% Debit Card Fees 2,786 3,245 -14.1% Trust Fees 1,892 1,766 7.1% ATM Processing Fees 934 945 -1.2% Other Service Fees 853 879 -3.0% Bank Owned Life Insurance Gains - 208 n/m Unrealized Losses on Equity Securities (211) - n/m Other Noninterest Income 1,356 1,424 -4.8% Total Noninterest Income$19,901 $20,636 -3.6% Operating Ratios: Total Revenue (FTE)$125,265 $131,588 -4.8% Noninterest Income / Revenue (FTE) 15.9% 15.7% Service Charges / Avg. Deposits (a) 0.28% 0.28% Total Revenue (FTE) Per Avg. Common Share (a)$10.61 $10.10 5.0% 7. Noninterest Expense. (dollars in thousands) % Q2'2026Q2'2025ChangeQ1'2026 Salaries and Related Benefits$12,541 $12,303 1.9%$12,325 Occupancy and Equipment 5,209 5,154 1.1% 5,427 Outsourced Data Processing 2,781 2,709 2.7% 2,788 Limited Partnership Operating Losses 1,110 915 21.3% 1,110 Professional Fees 660 386 71.0% 462 Courier Service 765 687 11.4% 734 Other Noninterest Expense 2,971 3,375 -12.0% 3,065 Total Noninterest Expense$26,037 $25,529 2.0%$25,911 Operating Ratios: Noninterest Expense / Avg. Earning Assets (a) 1.87% 1.81% 1.86% Noninterest Expense / Revenues (FTE) 41.3% 39.3% 41.6% % 6/30'26YTD6/30'25YTDChange Salaries and Related Benefits$24,866 $24,429 1.8% Occupancy and Equipment 10,636 10,192 4.4% Outsourced Data Processing 5,569 5,406 3.0% Limited Partnership Operating Losses 2,220 1,830 21.3% Professional Fees 1,122 781 43.7% Courier Service 1,499 1,375 9.0% Other Noninterest Expense 6,036 6,643 -9.1% Total Noninterest Expense$51,948 $50,656 2.6% Operating Ratios: Noninterest Expense / Avg. Earning Assets (a) 1.87% 1.78% Noninterest Expense / Revenues (FTE) 41.5% 38.5% 8. Allowance for Credit Losses. (dollars in thousands) % Q2'2026Q2'2025ChangeQ1'2026 Average Total Loans$682,900 $762,216 -10.4%$708,613 Beginning of Period Allowance for Credit Losses on Loans (ACLL)$11,151 $13,914 -19.9%$11,573 (Reversal of) Provision for Credit Losses - - n/m (300) Net ACLL Losses (361) (127)184.3% (122) End of Period ACLL$10,790 $13,787 -21.7%$11,151 Gross ACLL Recoveries / Gross ACLL Losses 58% 87% 85% Net ACLL Losses / Avg. Total Loans (a) -0.21% -0.07% -0.07% % 6/30'26YTD6/30'25YTDChange Average Total Loans$695,686 $775,999 -10.3% Beginning of Period ACLL$11,573 $14,780 -21.7% Reversal of Provision for Credit Losses (300) (550)n/m Net ACLL Losses (483) (443)9.0% End of Period ACLL$10,790 $13,787 -21.7% Gross ACLL Recoveries / Gross ACLL Losses 71% 83% Net ACLL Losses / Avg. Total Loans (a) -0.14% -0.12% (dollars in thousands) % 6/30/266/30/25Change3/31/26 Allowance for Credit Losses on Loans$10,790 $13,787 -21.7%$11,151 Allowance for Credit Losses on Held to Maturity Securities 1 1 0.0% 1 Total Allowance for Credit Losses$10,791 $13,788 -21.7%$11,152 Allowance for Unfunded Credit Commitments$201 $201 0.0%$201 9. Credit Quality. (dollars in thousands) % 6/30/266/30/25Change3/31/26 Nonperforming Loans: Nonperforming Nonaccrual Loans$183 $- n/m$380 Performing Nonaccrual Loans 342 4,553 -92.5% 785 Total Nonaccrual Loans 525 4,553 -88.5% 1,165 Accruing Loans 90+ Days Past Due 283 411 -31.1% 277 Total Nonperforming Loans$808 $4,964 -83.7%$1,442 Total Loans Outstanding$668,833 $748,264 -10.6%$696,204 Total Assets 5,805,061 5,825,069 -0.3% 5,864,450 Loans: Allowance for Credit Losses on Loans$10,790 $13,787 -21.7%$11,151 Allowance for Credit Losses on Loans / Loans 1.61% 1.84% 1.60% Nonperforming Loans / Total Loans 0.12% 0.66% 0.21% 10. Capital. (in thousands, except per-share amounts) % 6/30/266/30/25Change3/31/26 Shareholders' Equity$853,148 $921,783 -7.4%$882,690 Total Assets 5,805,061 5,825,069 -0.3% 5,864,450 Shareholders' Equity/ Total Assets 14.70% 15.82% 15.05% Shareholders' Equity/ Total Loans 127.56% 123.19% 126.79% Tangible Common Equity Ratio 12.87% 14.03% 13.25% Common Shares Outstanding 23,002 25,587 -10.1% 23,631 Common Equity Per Share$37.09 $36.03 3.0%$37.35 Market Value Per Common Share 58.67 48.44 21.1% 52.15 (shares in thousands) % Q2'2026Q2'2025ChangeQ1'2026 Share Retirements (Issuances): Total Shares Retired 753 773 n/m 1,001 Average Retirement Price$55.14 $49.61 n/m$50.94 Net Shares Retired 629 773 n/m 992 % 6/30'26YTD6/30'25YTDChange Total Shares Retired 1,754 1,134 n/m Average Retirement Price$52.74 $49.88 n/m Net Shares Retired 1,621 1,121 n/m 11. Period-End Balance Sheets. (unaudited, dollars in thousands) % 6/30/266/30/25Change3/31/26 Assets: Cash and Due from Banks$301,934 $626,437 -51.8%$397,284 Debt Securities Available for Sale: Corporate Securities 1,796,083 1,792,021 0.2% 1,835,522 Collateralized Loan Obligations 208,302 780,147 -73.3% 293,987 Agency Mortgage Backed Securities 1,297,830 291,543 345.2% 1,123,422 Securities of U.S. Government Sponsored Entities 296,531 301,903 -1.8% 298,502 Obligations of States and Political Subdivisions 40,431 60,835 -33.5% 45,422 Total Debt Securities Available for Sale 3,639,177 3,226,449 12.8% 3,596,855 Debt Securities Held to Maturity: Agency Mortgage Backed Securities 58,202 49,878 16.7% 41,271 Corporate Securities 733,806 738,846 -0.7% 732,168 Obligations of States and Political Subdivisions (1) 15,838 45,715 -65.4% 26,119 Total Debt Securities Held to Maturity (1) 807,846 834,439 -3.2% 799,558 Loans 668,833 748,264 -10.6% 696,204 Allowance For Credit Losses on Loans (10,790) (13,787)-21.7% (11,151) Total Loans, net 658,043 734,477 -10.4% 685,053 Premises and Equipment, net 25,592 25,850 -1.0% 25,968 Identifiable Intangibles, net - 19 n/m - Goodwill 121,673 121,673 0.0% 121,673 Other Assets 250,796 255,725 -1.9% 238,059 Total Assets$5,805,061 $5,825,069 -0.3%$5,864,450 Liabilities and Shareholders' Equity: Deposits: Noninterest-Bearing$2,141,783 $2,175,841 -1.6%$2,135,925 Interest-Bearing Transaction 908,521 894,774 1.5% 939,285 Savings 1,660,534 1,603,974 3.5% 1,643,599 Time 61,939 72,946 -15.1% 64,943 Total Deposits 4,772,777 4,747,535 0.5% 4,783,752 Securities Sold under Repurchase Agreements 131,813 101,210 30.2% 144,456 Total Short-Term Borrowed Funds 131,813 101,210 30.2% 144,456 Other Liabilities 47,323 54,541 -13.2% 53,552 Total Liabilities 4,951,913 4,903,286 1.0% 4,981,760 Shareholders' Equity: Common Equity: Paid-In Capital 415,038 456,964 -9.2% 422,348 Accumulated Other Comprehensive Loss (117,592) (116,747)0.7% (107,267) Retained Earnings 555,702 581,566 -4.4% 567,609 Total Shareholders' Equity 853,148 921,783 -7.4% 882,690 Total Liabilities and Shareholders' Equity$5,805,061 $5,825,069 -0.3%$5,864,450 12. Income Statements. (unaudited, in thousands except per-share amounts) % Q2'2026Q2'2025ChangeQ1'2026 Interest and Loan Fee Income: Loans$9,663 $10,523 -8.2%$9,879 Equity Securities 433 408 6.1% 446 Debt Securities Available for Sale 34,556 30,815 12.1% 32,695 Debt Securities Held to Maturity 8,144 8,448 -3.6% 8,494 Interest-Bearing Cash 3,001 7,273 -58.7% 4,256 Total Interest and Loan Fee Income 55,797 57,467 -2.9% 55,770 Interest Expense: Transaction Deposits 45 44 2.3% 45 Savings Deposits 3,024 2,950 2.5% 3,002 Time Deposits 41 51 -19.6% 42 Securities Sold under Repurchase Agreements 211 144 46.1% 206 Total Interest Expense 3,321 3,189 4.1% 3,295 Net Interest and Loan Fee Income 52,476 54,278 -3.3% 52,475 (Reversal of) Provision for Credit Losses - - n/m (300) Noninterest Income: Service Charges on Deposit Accounts 3,380 3,368 0.4% 3,332 Merchant Processing Services 2,840 2,687 5.7% 2,739 Debit Card Fees 1,462 1,664 -12.1% 1,324 Trust Fees 965 867 11.3% 927 ATM Processing Fees 484 482 0.4% 450 Other Service Fees 445 450 -1.1% 408 Bank Owned Life Insurance Gains - 106 n/m - Other Noninterest Income 718 691 3.9% 427 Total Noninterest Income 10,294 10,315 -0.2% 9,607 Noninterest Expense: Salaries and Related Benefits 12,541 12,303 1.9% 12,325 Occupancy and Equipment 5,209 5,154 1.1% 5,427 Outsourced Data Processing 2,781 2,709 2.7% 2,788 Limited Partnership Operating Losses 1,110 915 21.3% 1,110 Professional Fees 660 386 71.0% 462 Courier Service 765 687 11.4% 734 Other Noninterest Expense 2,971 3,375 -12.0% 3,065 Total Noninterest Expense 26,037 25,529 2.0% 25,911 Income Before Income Taxes 36,733 39,064 -6.0% 36,471 Income Tax Provision 9,348 9,998 -6.5% 9,116 Net Income$27,385 $29,066 -5.8%$27,355 Average Common Shares Outstanding 23,306 25,889 -10.0% 24,306 Diluted Average Common Shares Outstanding 23,319 25,889 -9.9% 24,306 Per Common Share Data: Basic Earnings$1.17 $1.12 4.9%$1.13 Diluted Earnings 1.17 1.12 4.5% 1.13 Dividends Paid 0.48 0.46 4.3% 0.46 % 6/30'26YTD6/30'25YTDChange Interest and Loan Fee Income: Loans$19,542 $21,192 -7.8% Equity Securities 879 830 5.9% Debt Securities Available for Sale 67,251 64,018 5.0% Debt Securities Held to Maturity 16,638 16,942 -1.8% Interest-Bearing Cash 7,257 13,976 -48.1% Total Interest and Loan Fee Income 111,567 116,958 -4.6% Interest Expense: Transaction Deposits 90 90 0.0% Savings Deposits 6,026 6,078 -0.9% Time Deposits 83 106 -21.7% Securities Sold under Repurchase Agreements 417 311 34.1% Total Interest Expense 6,616 6,585 0.5% Net Interest and Loan Fee Income 104,951 110,373 -4.9% Reversal of Provision for Credit Losses (300) (550)n/m Noninterest Income: Service Charges on Deposit 6,712 6,749 -0.5% Accounts Merchant Processing Services 5,579 5,420 2.9% Debit Card Fees 2,786 3,245 -14.1% Trust Fees 1,892 1,766 7.1% ATM Processing Fees 934 945 -1.2% Other Service Fees 853 879 -3.0% Bank Owned Life Insurance Gains - 208 n/m Other Noninterest Income 1,145 1,424 -19.6% Total Noninterest Income 19,901 20,636 -3.6% Noninterest Expense: Salaries and Related Benefits 24,866 24,429 1.8% Occupancy and Equipment 10,636 10,192 4.4% Outsourced Data Processing 5,569 5,406 3.0% Limited Partnership Operating Losses 2,220 1,830 21.3% Professional Fees 1,122 781 43.7% Courier Service 1,499 1,375 9.0% Other Noninterest Expense 6,036 6,643 -9.1% Total Noninterest Expense 51,948 50,656 2.6% Income Before Income Taxes 73,204 80,903 -9.5% Income Tax Provision 18,464 20,800 -11.2% Net Income$54,740 $60,103 -8.9% Average Common Shares Outstanding 23,804 26,263 -9.4% Diluted Average Common Shares Outstanding 23,810 26,263 -9.3% Per Common Share Data: Basic Earnings$2.30 $2.29 0.4% Diluted Earnings 2.30 2.29 0.4% Dividends Paid 0.94 0.90 4.4% 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 June 30, 2026, March 31, 2026 and June 30, 2025. (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.