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Westamerica Bancorporation Reports Third Quarter 2025 Financial Results

1. WABC reported Q3 2025 net income of $28.3 million, EPS of $1.12. 2. The cost of funding was low at 0.26%, aiding profitability. 3. Nonperforming assets rose to $2.6 million; credit loss provisions were zero. 4. Dividends increased to $0.46 per share; 488,000 shares were repurchased. 5. Capital ratios exceeded regulatory guidelines, indicating strong financial health.

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Why Bullish?

Despite income drop, WABC's stable profitability and low cost of funding suggest resilience. Compared to historical performance, the return on equity and continued dividends strengthen investor confidence.

How important is it?

The company’s financial health indicators are strong, positively influencing investor perception and stock price.

Why Short Term?

Immediate market reactions are likely favorable due to solid quarterly results and share buybacks, which often boost stock prices. Historical trends show quick upticks in stock price following positive earnings reports.

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October 16, 2025 11:00 ET  | Source: Westamerica Bancorporation 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 Bancorporation1108 Fifth Avenue, San Rafael, CA 94901Anela Jonas – Investor Relations Contact707-863-6019investments@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 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. 

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