SAN RAFAEL, Calif., July 17, 2025 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (NASDAQ:WABC), parent company of Westamerica Bank, generated net income for the second quarter 2025 of $29.1 million and diluted earnings per common share ("EPS") of $1.12. Second quarter 2025 results compare to first quarter 2025 net income of $31.0 million and EPS of $1.16.

"Westamerica's second quarter 2025 results benefited from the Company's low-cost operating principles. The annualized cost of funding interest-earning loans, bonds and cash was 0.22 percent for the second quarter 2025. The Company recognized no provision for credit losses in the second quarter 2025. At June 30, 2025, nonperforming assets were $5.0 million and the allowance for credit losses on loans was $13.8 million. Westamerica operated efficiently, spending 39 percent of its revenue on operating costs in the second quarter 2025", said Chairman, President and CEO David Payne. "Second quarter 2025 results generated an annualized 11.2 percent return on average common equity. Westamerica paid a $0.46 per common share dividend during the second quarter 2025, and retired 773 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 $54.6 million for the second quarter 2025, compared to $56.4 million for the first quarter 2025. The annualized yield earned on loans, bonds and cash for the second quarter 2025 was 4.07 percent, compared to 4.14 percent for the first quarter 2025. The annualized cost of funding interest-earning loans, bonds and cash was 0.22 percent for the second quarter 2025, compared to 0.24 percent for the first quarter 2025.

The Company provided no provision for credit losses in the second quarter 2025 compared to a $550 thousand reversal of provision for credit losses in the first quarter of 2025. The allowance for credit losses on loans was $13.8 million at June 30, 2025 compared to $13.9 million at March 31, 2025.

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

Noninterest expenses were $25.5 million for the second quarter 2025 and $25.1 million for the first quarter 2025. The increase in noninterest expense is primarily due to higher salaries and benefits expense due to more business days in the second quarter 2025 compared to the first quarter 2025 and higher occupancy and equipment expense.

The income tax provision (FTE) for the second quarter 2025 was $10.3 million compared to $11.1 million for the first 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

Robert A. Thorson – Investor Relations Contact

707-863-6090

investments@westamerica.com

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 March 31, 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 July 17, 2025

WESTAMERICA BANCORPORATION

FINANCIAL HIGHLIGHTS

June 30, 2025

1. Net Income Summary.

(in thousands except per-share amounts)

Q2'2025

Q2'2024

Change

Q1'2025

Net Interest and Loan Fee

Income (FTE)

54,562

64,100

-14.9

56,390

Reversal of Provision

for Credit Losses

n/m

(550

)

Noninterest Income

10,315

10,500

-1.8

10,321

Noninterest Expense

25,529

26,130

-2.3

25,127

Income Before Taxes (FTE)

39,348

48,470

-18.8

42,134

Income Tax Provision (FTE)

10,282

13,008

-21.0

11,097

Net Income

29,066

35,462

-18.0

31,037

Average Common Shares

Outstanding

25,889

26,680

-3.0

26,642

Diluted Average Common

Shares Outstanding

25,889

26,681

-3.0

26,642

Operating Ratios:

Basic Earnings Per Common

Share

1.12

1.33

-15.8

1.16

Diluted Earnings Per

Common Share

1.12

1.33

-15.8

1.16

Return On Assets (a)

1.93

2.18

2.03

Return On Common

Equity (a)

11.2

14.4

11.9

Net Interest Margin (FTE) (a)

3.85

4.15

3.90

Efficiency Ratio (FTE)

39.3

35.0

37.7

Dividends Paid Per Common

Share

0.46

0.44

4.5

0.44

Common Dividend Payout

Ratio

6/30'25YTD

6/30'24YTD

Change

Net Interest and Loan Fee

Income (FTE)

110,952

130,194

-14.8

(Reversal of) Provision

for Credit Losses

(550

)

300

n/m

Noninterest Income

20,636

20,597

0.2

Noninterest Expense

50,656

52,229

-3.0

Income Before Taxes (FTE)

81,482

98,262

-17.1

Income Tax Provision (FTE)

21,379

26,383

-19.0

Net Income

60,103

71,879

-16.4

Average Common Shares

Outstanding

26,263

26,677

-1.6

Diluted Average Common

Shares Outstanding

26,263

26,678

-1.6

Operating Ratios:

Basic Earnings Per Common

Share

2.29

2.69

-14.9

Diluted Earnings Per

Common Share

2.29

2.69

-14.9

Return On Assets (a)

1.98

2.21

Return On Common

Equity (a)

11.6

14.8

Net Interest Margin (FTE) (a)

3.87

4.23

Efficiency Ratio (FTE)

38.5

34.6

Dividends Paid Per Common

Share

0.90

0.88

2.3

Common Dividend Payout

Ratio

2. Net Interest Income.

(dollars in thousands)

Q2'2025

Q2'2024

Change

Q1'2025

Interest and Loan Fee

Income (FTE)

57,751

69,407

-16.8

59,786

Interest Expense

3,189

5,307

-39.9

3,396

Net Interest and Loan Fee

Income (FTE)

54,562

64,100

-14.9

56,390

Average Earning Assets

5,652,443

6,145,626

-8.0

5,794,836

Average Interest-Bearing

Liabilities

2,693,505

3,001,786

-10.3

2,770,099

Yield on Earning Assets

(FTE) (a)

4.07

4.50

4.14

Cost of Funds (a)

0.22

0.35

0.24

Net Interest Margin (FTE) (a)

3.85

4.15

3.90

Interest Expense /

Interest-Bearing

Liabilities (a)

0.48

0.71

0.50

Net Interest Spread (FTE) (a)

3.59

3.79

3.64

6/30'25YTD

6/30'24YTD

Change

Interest and Loan Fee

Income (FTE)

117,537

138,502

-15.1

Interest Expense

6,585

8,308

-20.7

Net Interest and Loan Fee

Income (FTE)

110,952

130,194

-14.8

Average Earning Assets

5,723,246

6,132,497

-6.7

Average Interest-Bearing

Liabilities

2,731,590

2,978,676

-8.3

Yield on Earning Assets

(FTE) (a)

4.11

4.50

Cost of Funds (a)

0.24

0.27

Net Interest Margin (FTE) (a)

3.87

4.23

Interest Expense /

Interest-Bearing

Liabilities (a)

0.49

0.56

Net Interest Spread (FTE) (a)

3.62

3.94

3. Loans & Other Earning Assets.

(average volume, dollars in thousands)

Q2'2025

Q2'2024

Change

Q1'2025

Total Assets

6,042,100

6,549,203

-7.7

6,187,321

Total Earning Assets

5,652,443

6,145,626

-8.0

5,794,836

Total Loans

762,216

838,016

-9.0

789,935

Commercial Loans

115,943

133,605

-13.2

120,189

Commercial Real Estate

Loans

488,960

487,209

0.4

497,379

Consumer Loans

157,313

217,202

-27.6

172,367

Total Investment Securities

4,236,303

4,944,191

-14.3

4,395,565

Debt Securities Available for

Sale

3,400,199

4,079,896

-16.7

3,553,755

Debt Securities Held to

Maturity

836,104

864,295

-3.3

841,810

Total Interest-Bearing Cash

653,924

363,419

79.9

609,336

Loans / Deposits

15.7

16.1

15.9

6/30'25YTD

6/30'24YTD

Change

Total Assets

6,114,310

6,537,562

-6.5

Total Earning Assets

5,723,246

6,132,497

-6.7

Total Loans

775,999

845,785

-8.3

Commercial Loans

118,054

133,514

-11.6

Commercial Real Estate

Loans

493,146

488,099

1.0

Consumer Loans

164,799

224,172

-26.5

Total Investment Securities

4,315,494

5,021,365

-14.1

Debt Securities Available for

Sale

3,476,553

4,152,185

-16.3

Debt Securities Held to

Maturity

838,941

869,180

-3.5

Total Interest-Bearing Cash

631,753

265,347

138.1

Loans / Deposits

15.8

16.0

4. Deposits, Other Interest-Bearing Liabilities & Equity.

(average volume, dollars in thousands)

Q2'2025

Q2'2024

Change

Q1'2025

Total Deposits

4,841,803

5,202,620

-6.9

4,958,554

Noninterest Demand

2,245,077

2,485,023

-9.7

2,293,059

Interest-Bearing Transaction

908,367

981,703

-7.5

935,054

Savings

1,611,845

1,642,806

-1.9

1,649,631

Time greater than $100K

27,306

34,721

-21.4

29,460

Time less than $100K

49,208

58,367

-15.7

51,350

Total Short-Term Borrowings

96,779

284,189

-65.9

104,604

Bank Term Funding Program

Borrowings

200,000

n/m

Securities Sold under

Repurchase Agreements

96,779

84,189

15.0

104,604

Shareholders' Equity

1,037,185

990,927

4.7

1,055,925

Demand Deposits /

Total Deposits

46.4

47.8

46.2

Transaction & Savings

Deposits / Total Deposits

98.4

98.2

98.4

6/30'25YTD

6/30'24YTD

Change

Total Deposits

4,899,856

5,290,840

-7.4

Noninterest Demand

2,268,936

2,508,702

-9.6

Interest-Bearing Transaction

921,637

1,019,998

-9.6

Savings

1,630,633

1,667,261

-2.2

Time greater than $100K

28,377

35,427

-19.9

Time less than $100K

50,273

59,452

-15.4

Total Short-Term Borrowings

100,670

196,538

-48.8

Bank Term Funding Program

Borrowings

131,291

n/m

Securities Sold under

Repurchase Agreements

100,670

65,247

54.3

Shareholders' Equity

1,046,504

978,384

7.0

Demand Deposits /

Total Deposits

46.3

47.4

Transaction & Savings

Deposits / Total Deposits

98.4

98.2

5. Interest Yields Earned & Rates Paid.

(dollars in thousands)

Q2'2025

Average

Income/

Yield (a) /

Volume

Expense

Rate (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 Investments (FTE)

4,236,303

39,887

3.75

Total Debt Securities

Available for Sale (FTE)

3,400,199

31,354

3.67

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

Other Debt Securities

Available for Sale (FTE)

14,227

434

12.21

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

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

0.02

Savings

1,611,845

2,950

0.73

Time less than $100K

49,208

0.30

Time greater than $100K

27,306

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

Q2'2024

Average

Income/

Yield (a) /

Volume

Expense

Rate (a)

Interest & Loan Fee Income Earned:

Total Earning Assets (FTE)

6,145,626

69,407

4.50

Total Loans (FTE)

838,016

11,441

5.49

Commercial Loans (FTE)

133,605

2,418

7.28

Commercial Real Estate

Loans

487,209

6,014

4.96

Consumer Loans

217,202

3,009

5.57

Total Investments (FTE)

4,944,191

53,005

4.27

Total Debt Securities

Available for Sale (FTE)

4,079,896

44,236

4.31

Corporate Securities

2,090,829

14,366

2.75

Collateralized Loan

Obligations

1,347,475

24,620

7.23

Agency Mortgage Backed

Securities

241,391

1,465

2.43

Securities of U.S.

Government sponsored

entities

309,395

2,777

3.59

Obligations of States and

Political Subdivisions

(FTE)

72,319

543

3.01

U.S. Treasury Securities

4,260

5.08

Other Debt Securities

Available for Sale (FTE)

14,227

411

11.55

Total Debt Securities Held to

Maturity (FTE)

864,295

8,769

4.06

Agency Mortgage Backed

Securities

70,804

401

2.27

Corporate Securities

730,978

7,815

4.28

Obligations of States and

Political Subdivisions

(FTE)

62,513

553

3.54

Total Interest-Bearing Cash

363,419

4,961

5.40

Interest Expense Paid:

Total Earning Assets

6,145,626

5,307

0.35

Total Interest-Bearing

Liabilities

3,001,786

5,307

0.71

Total Interest-Bearing

Deposits

2,717,597

2,460

0.36

Interest-Bearing Transaction

981,703

0.03

Savings

1,642,806

2,322

0.57

Time less than $100K

58,367

0.34

Time greater than $100K

34,721

0.23

Total Short-Term Borrowings

284,189

2,847

4.02

Bank Term Funding Program

Borrowings

200,000

2,692

5.40

Securities Sold under

Repurchase Agreements

84,189

155

0.74

Net Interest Income and

Margin (FTE)

64,100

4.15

6. Noninterest Income.

(dollars in thousands except per-share amounts)

Q2'2025

Q2'2024

Change

Q1'2025

Service Charges on Deposit

Accounts

3,368

3,469

-2.9

3,381

Merchant Processing

Services

2,687

2,733

-1.7

2,733

Debit Card Fees

1,664

1,706

-2.5

1,581

Trust Fees

867

811

6.9

899

ATM Processing Fees

482

540

-10.7

463

Other Service Fees

450

0.0

429

Life Insurance Gains

106

n/m

102

Other Noninterest Income

691

791

-12.6

733

Total Noninterest Income

10,315

10,500

-1.8

10,321

Operating Ratios:

Total Revenue (FTE)

64,877

74,600

-13.0

66,711

Noninterest Income /

Revenue (FTE)

15.9

14.1

15.5

Service Charges /

Avg. Deposits (a)

0.28

0.27

0.28

Total Revenue (FTE) Per

Avg. Common Share (a)

10.05

11.25

-10.6

10.16

6/30'25YTD

6/30'24YTD

Change

Service Charges on Deposit

Accounts

6,749

6,939

-2.7

Merchant Processing

Services

5,420

5,240

3.4

Debit Card Fees

3,245

3,249

-0.1

Trust Fees

1,766

1,605

10.0

ATM Processing Fees

945

1,131

-16.4

Other Service Fees

879

888

-1.0

Life Insurance Gains

208

n/m

Other Noninterest Income

1,424

1,545

-7.8

Total Noninterest Income

20,636

20,597

0.2

Operating Ratios:

Total Revenue (FTE)

131,588

150,791

-12.7

Noninterest Income /

Revenue (FTE)

15.7

13.7

Service Charges /

Avg. Deposits (a)

0.28

0.26

Total Revenue (FTE) Per

Avg. Common Share (a)

10.10

11.37

-11.1

7. Noninterest Expense.

(dollars in thousands)

Q2'2025

Q2'2024

Change

Q1'2025

Salaries and Related Benefits

12,303

12,483

-1.4

12,126

Occupancy and Equipment

5,154

5,158

-0.1

5,038

Outsourced Data Processing

2,709

2,511

7.9

2,697

Limited Partnership

Operating Losses

915

1,440

-36.5

915

Professional Fees

386

362

6.6

395

Courier Service

687

686

0.1

688

Other Noninterest Expense

3,375

3,490

-3.3

3,268

Total Noninterest Expense

25,529

26,130

-2.3

25,127

Operating Ratios:

Noninterest Expense /

Avg. Earning Assets (a)

1.81

1.71

1.76

Noninterest Expense /

Revenues (FTE)

39.3

35.0

37.7

6/30'25YTD

6/30'24YTD

Change

Salaries and Related Benefits

24,429

25,069

-2.6

Occupancy and Equipment

10,192

10,198

-0.1

Outsourced Data Processing

5,406

5,047

7.1

Limited Partnership

Operating Losses

1,830

2,880

-36.5

Professional Fees

781

764

2.2

Courier Service

1,375

1,335

3.0

Other Noninterest Expense

6,643

6,936

-4.2

Total Noninterest Expense

50,656

52,229

-3.0

Operating Ratios:

Noninterest Expense /

Avg. Earning Assets (a)

1.78

1.71

Noninterest Expense /

Revenues (FTE)

38.5

34.6

8. Allowance for Credit Losses.

(dollars in thousands)

Q2'2025

Q2'2024

Change

Q1'2025

Average Total Loans

762,216

838,016

-9.0

789,935

Beginning of Period

Allowance for Credit

Losses on Loans (ACLL)

13,914

15,879

-12.4

14,780

Reversal of Provision for

Credit Losses

n/m

(550

)

Net ACLL (Losses)

Recoveries

(127

)

n/m

(316

)

End of Period ACLL

13,787

15,952

-13.6

13,914

Gross ACLL Recoveries /

Gross ACLL Losses

105

Net ACLL (Losses)

Recoveries/

Avg. Total Loans (a)

-0.07

0.04

-0.16

6/30'25YTD

6/30'24YTD

Change

Average Total Loans

775,999

845,785

-8.3

Beginning of Period ACLL

14,780

16,867

-12.4

(Reversal of) Provision for

Credit Losses

(550

)

300

n/m

Net ACLL Losses

(443

)

(1,215

)

-63.5

End of Period ACLL

13,787

15,952

-13.6

Gross ACLL Recoveries /

Gross ACLL Losses

Net ACLL Losses /

Avg. Total Loans (a)

-0.12

-0.29

(dollars in thousands)

6/30/25

6/30/24

Change

3/31/25

Allowance for Credit Losses

on Loans

13,787

15,952

-13.6

13,914

Allowance for Credit Losses

on Held to Maturity

Securities

0.0

Total Allowance for Credit

Losses

13,788

15,953

-13.6

13,915

Allowance for Unfunded

Credit Commitments

201

0.0

201

9. Credit Quality.

(dollars in thousands)

6/30/25

6/30/24

Change

3/31/25

Nonperforming Loans:

Nonperforming Nonaccrual

Loans

971

n/m

Performing Nonaccrual

Loans

4,553

n/m

Total Nonaccrual Loans

4,553

971

368.9

Accruing Loans 90+ Days

Past Due

411

580

-29.1

277

Total Nonperforming Loans

4,964

1,551

220.1

277

Total Loans Outstanding

748,264

831,842

-10.0

771,030

Total Assets

5,825,069

6,312,145

-7.7

5,966,624

Loans:

Allowance for Credit Losses

on Loans

13,787

15,952

-13.6

13,914

Allowance for Credit Losses

on Loans / Loans

1.84

1.92

1.80

Nonperforming Loans /

Total Loans

0.66

0.19

0.04

10. Liquidity.

At June 30, 2025, the Company had $626,437 thousand in cash balances. During the twelve months ending June 30, 2026, the Company expects to receive $288,000 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 June 30, 2025, the Company's debt securities which qualify as collateral for borrowing totaled $3,522,823 thousand. In the ordinary course of business, the Company pledges debt securities as collateral for certain depository customers; at June 30, 2025, the Company had pledged $715,788 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 June 30, 2025, the Company had pledged $703,398 thousand in debt securities at the Federal Reserve Bank. During the six months ended June 30, 2025, the Company's average borrowings from the Federal Reserve Bank and correspondent banks were $-0- thousand and $-0- thousand, respectively, and at June 30, 2025, the Company had no borrowings from the Federal Reserve Bank or other correspondent banks. At June 30, 2025, the Company had access to borrowing from the Federal Reserve up to $703,398 thousand based on collateral pledged at June 30, 2025. At June 30, 2025, the Company's estimated unpledged collateral qualifying debt securities totaled $1,683,788 thousand. Debt securities eligible as collateral are shown at market value.

(in thousands)

6/30/25

Debt Securities Eligible as

Collateral:

Corporate Securities

2,517,133

Collateralized Loan

Obligations rated AAA

257,649

Obligations of States and

Political Subdivisions

106,428

Agency Mortgage Backed

Securities

339,710

Securities of U.S. Government

Sponsored Entities

301,903

Total Debt Securities Eligible

as Collateral

3,522,823

Debt Securities Pledged

as Collateral:

Debt Securities Pledged

at the Federal Reserve Bank

703,398

)

Deposits by Public Entities

(715,788

)

Securities Sold under

Repurchase Agreements

(412,956

)

Other

(6,893

)

Total Debt Securities Pledged

as Collateral

1,839,035

)

Estimated Debt Securities

Available to Pledge

1,683,788

11. Capital.

(in thousands, except per-share amounts)

6/30/25

6/30/24

Change

3/31/25

Shareholders' Equity

921,783

815,600

13.0

923,138

Total Assets

5,825,069

6,312,145

-7.7

5,966,624

Shareholders' Equity/

Total Assets

15.82

12.92

15.47

Shareholders' Equity/

Total Loans

123.19

98.05

119.73

Tangible Common Equity

Ratio

14.03

11.21

13.71

Common Shares Outstanding

25,587

26,683

-4.1

26,360

Common Equity Per Share

36.03

30.57

17.9

35.02

Market Value Per Common

Share

48.44

48.53

-0.2

50.63

(shares in thousands)

Q2'2025

Q2'2024

Change

Q1'2025

Share Retirements (Issuances):

Total Shares Retired

773

n/m

361

Average Retirement Price

49.61

n/m

50.96

Net Shares Retired (Issued)

773

)

n/m

348

6/30'25YTD

6/30'24YTD

Change

Total Shares Retired

1,134

n/m

Average Retirement Price

49.88

45.58

n/m

Net Shares Retired (Issued)

1,121

(12

)

n/m

12. Period-End Balance Sheets.

(unaudited, dollars in thousands)

6/30/25

6/30/24

Change

3/31/25

Assets:

Cash and Due from Banks

626,437

486,124

28.9

727,336

Debt Securities Available for

Sale:

Corporate Securities

1,792,021

1,855,618

-3.4

1,802,791

Collateralized Loan

Obligations

780,147

1,255,110

-37.8

822,111

Agency Mortgage Backed

Securities

291,543

222,806

30.9

250,844

Securities of U.S.

Government Sponsored

Entities

301,903

291,206

3.7

299,722

Obligations of States and

Political Subdivisions

60,835

69,758

-12.8

60,581

U.S. Treasury Securities

4,820

n/m

Total Debt Securities

Available for Sale

3,226,449

3,699,318

-12.8

3,236,049

Debt Securities Held to

Maturity:

Agency Mortgage Backed

Securities

49,878

67,777

-26.4

53,528

Corporate Securities

738,846

732,049

0.9

737,146

Obligations of States and

Political Subdivisions (1)

45,715

61,042

-25.1

48,674

Total Debt Securities

Held to Maturity (1)

834,439

860,868

-3.1

839,348

Loans

748,264

831,842

-10.0

771,030

Allowance For Credit Losses

on Loans

(13,787

)

(15,952

)

-13.6

(13,914

)

Total Loans, net

734,477

815,890

-10.0

757,116

Premises and Equipment, net

25,850

26,275

-1.6

25,722

Identifiable Intangibles, net

234

-91.9

Goodwill

121,673

0.0

121,673

Other Assets

255,725

301,763

-15.3

259,308

Total Assets

5,825,069

6,312,145

-7.7

5,966,624

Liabilities and Shareholders'

Equity:

Deposits:

Noninterest-Bearing

2,175,841

2,459,467

-11.5

2,241,802

Interest-Bearing Transaction

894,774

936,186

-4.4

920,461

Savings

1,603,974

1,646,781

-2.6

1,633,445

Time

72,946

89,006

-18.0

78,387

Total Deposits

4,747,535

5,131,440

-7.5

4,874,095

Bank Term Funding

Program Borrowings

200,000

n/m

Securities Sold under

Repurchase Agreements

101,210

100,167

1.0

113,219

Total Short-Term

Borrowed Funds

101,210

300,167

-66.3

113,219

Other Liabilities

54,541

64,938

-16.0

56,172

Total Liabilities

4,903,286

5,496,545

-10.8

5,043,486

Shareholders' Equity:

Common Equity:

Paid-In Capital

456,964

474,618

-3.7

470,844

Accumulated Other

Comprehensive Loss

(116,747

)

(197,300

)

-40.8

(136,768

)

Retained Earnings

581,566

538,282

8.0

589,062

Total Shareholders' Equity

921,783

815,600

13.0

923,138

Total Liabilities and

Shareholders' Equity

5,825,069

6,312,145

-7.7

5,966,624

13. Income Statements.

(unaudited, in thousands except per-share amounts)

Q2'2025

Q2'2024

Change

Q1'2025

Interest and Loan Fee Income:

Loans

10,523

11,354

-7.3

10,669

Equity Securities

195

175

11.4

195

Debt Securities Available

for Sale

31,028

43,927

-29.4

33,430

Debt Securities Held to

Maturity

8,448

8,655

-2.4

8,494

Interest-Bearing Cash

7,273

4,961

46.6

6,703

Total Interest and Loan

Fee Income

57,467

69,072

-16.8

59,491

Interest Expense:

Transaction Deposits

-36.2

Savings Deposits

2,950

2,322

27.0

3,128

Time Deposits

-26.1

Bank Term Funding Program

Borrowings

2,692

n/m

Securities Sold under

Repurchase Agreements

144

155

-6.7

167

Total Interest Expense

3,189

5,307

-39.9

3,396

Net Interest and Loan

Fee Income

54,278

63,765

-14.9

56,095

Reversal of Provision for

Credit Losses

n/m

(550

)

Noninterest Income:

Service Charges on Deposit

Accounts

3,368

3,469

-2.9

3,381

Merchant Processing

Services

2,687

2,733

-1.7

2,733

Debit Card Fees

1,664

1,706

-2.5

1,581

Trust Fees

867

811

6.9

899

ATM Processing Fees

482

540

-10.7

463

Other Service Fees

450

0.0

429

Life Insurance Gains

106

n/m

102

Other Noninterest Income

691

791

-12.6

733

Total Noninterest Income

10,315

10,500

-1.8

10,321

Noninterest Expense:

Salaries and Related Benefits

12,303

12,483

-1.4

12,126

Occupancy and Equipment

5,154

5,158

-0.1

5,038

Outsourced Data Processing

2,709

2,511

7.9

2,697

Limited Partnership

Operating Losses

915

1,440

-36.5

915

Professional Fees

386

362

6.6

395

Courier Service

687

686

0.1

688

Other Noninterest Expense

3,375

3,490

-3.3

3,268

Total Noninterest Expense

25,529

26,130

-2.3

25,127

Income Before Income Taxes

39,064

48,135

-18.8

41,839

Income Tax Provision

9,998

12,673

-21.1

10,802

Net Income

29,066

35,462

-18.0

31,037

Average Common Shares

Outstanding

25,889

26,680

-3.0

26,642

Diluted Average Common

Shares Outstanding

25,889

26,681

-3.0

26,642

Per Common Share Data:

Basic Earnings

1.12

1.33

-15.8

1.16

Diluted Earnings

1.12

1.33

-15.8

1.16

Dividends Paid

0.46

0.44

4.5

0.44

6/30'25YTD

6/30'24YTD

Change

Interest and Loan Fee Income:

Loans

21,192

22,678

-6.6

Equity Securities

390

349

11.7

Debt Securities Available

for Sale

64,458

90,170

-28.5

Debt Securities Held to

Maturity

16,942

17,377

-2.5

Interest-Bearing Cash

13,976

7,244

92.9

Total Interest and Loan

Fee Income

116,958

137,818

-15.1

Interest Expense:

Transaction Deposits

188

-52.1

Savings Deposits

6,078

4,239

43.4

Time Deposits

106

139

-23.7

Bank Term Funding Program

Borrowings

3,535

n/m

Securities Sold under

Repurchase Agreements

311

207

50.2

Total Interest Expense

6,585

8,308

-20.7

Net Interest and Loan

Fee Income

110,373

129,510

-14.8

(Reversal of) Provision

for Credit Losses

(550

)

300

n/m

Noninterest Income:

Service Charges on Deposit

6,749

6,939

-2.7

Accounts

Merchant Processing

Services

5,420

5,240

3.4

Debit Card Fees

3,245

3,249

-0.1

Trust Fees

1,766

1,605

10.0

ATM Processing Fees

945

1,131

-16.4

Other Service Fees

879

888

-1.0

Life Insurance Gains

208

n/m

Other Noninterest Income

1,424

1,545

-7.8

Total Noninterest Income

20,636

20,597

0.2

Noninterest Expense:

Salaries and Related Benefits

24,429

25,069

-2.6

Occupancy and Equipment

10,192

10,198

-0.1

Outsourced Data Processing

5,406

5,047

7.1

Limited Partnership

Operating Losses

1,830

2,880

-36.5

Professional Fees

781

764

2.2

Courier Service

1,375

1,335

3.0

Other Noninterest Expense

6,643

6,936

-4.2

Total Noninterest Expense

50,656

52,229

-3.0

Income Before Income Taxes

80,903

97,578

-17.1

Income Tax Provision

20,800

25,699

-19.1

Net Income

60,103

71,879

-16.4

Average Common Shares

Outstanding

26,263

26,677

-1.6

Diluted Average Common

Shares Outstanding

26,263

26,678

-1.6

Per Common Share Data:

Basic Earnings

2.29

2.69

-14.9

Diluted Earnings

2.29

2.69

-14.9

Dividends Paid

0.90

0.88

2.3

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, 2025, March 31, 2025 and June 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