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

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, 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)

Q2'2026

Q2'2025

Change

Q1'2026

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

6/30'26YTD

6/30'25YTD

Change

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

2. Net Interest Income.

(dollars in thousands)

Q2'2026

Q2'2025

Change

Q1'2026

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

0.49

Net Interest Spread (FTE) (a)

3.53

3.59

3.49

6/30'26YTD

6/30'25YTD

Change

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

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)

Q2'2026

Q2'2025

Change

Q1'2026

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

6/30'26YTD

6/30'25YTD

Change

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)

Q2'2026

Q2'2025

Change

Q1'2026

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

6/30'26YTD

6/30'25YTD

Change

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

Average

Income/

Yield (a) /

Volume

Expense

Rate (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

0.02

Savings

1,630,311

3,024

0.74

Time less than $100K

42,498

0.29

Time greater than $100K

22,335

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

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 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

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

6. Noninterest Income.

(dollars in thousands except per-share amounts)

Q2'2026

Q2'2025

Change

Q1'2026

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

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

Total Revenue (FTE) Per

Avg. Common Share (a)

10.84

10.05

7.8

10.39

6/30'26YTD

6/30'25YTD

Change

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

Total Revenue (FTE) Per

Avg. Common Share (a)

10.61

10.10

5.0

7. Noninterest Expense.

(dollars in thousands)

Q2'2026

Q2'2025

Change

Q1'2026

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

6/30'26YTD

6/30'25YTD

Change

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)

Q2'2026

Q2'2025

Change

Q1'2026

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

Net ACLL Losses /

Avg. Total Loans (a)

-0.21

-0.07

6/30'26YTD

6/30'25YTD

Change

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

Net ACLL Losses /

Avg. Total Loans (a)

-0.14

-0.12

(dollars in thousands)

6/30/26

6/30/25

Change

3/31/26

Allowance for Credit Losses

on Loans

10,790

13,787

-21.7

11,151

Allowance for Credit Losses

on Held to Maturity

Securities

0.0

Total Allowance for Credit

Losses

10,791

13,788

-21.7

11,152

Allowance for Unfunded

Credit Commitments

201

0.0

201

9. Credit Quality.

(dollars in thousands)

6/30/26

6/30/25

Change

3/31/26

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)

6/30/26

6/30/25

Change

3/31/26

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)

Q2'2026

Q2'2025

Change

Q1'2026

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

6/30'26YTD

6/30'25YTD

Change

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)

6/30/26

6/30/25

Change

3/31/26

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

n/m

Goodwill

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)

Q2'2026

Q2'2025

Change

Q1'2026

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

2.3

Savings Deposits

3,024

2,950

2.5

3,002

Time Deposits

-19.6

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

6/30'26YTD

6/30'25YTD

Change

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

0.0

Savings Deposits

6,026

6,078

-0.9

Time Deposits

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.