Westamerica Bancorporation (WABC) AI Stock Analysis

• Market Cap: $1.26B
• Dividend Yield: 3.7%
• Average Volume (3M): 160.41K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.73
• Revenue Growth: -13.17%
• EPS Growth: -16.37%
• Country: US
• Employees: 616
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.12
• Shares Outstanding: 24,933,050
• 10 Day Avg. Volume: 146,817
• 30 Day Avg. Volume: 160,412
• PEG Ratio: -0.71
• Price to Book (P/B): 1.57
• Price to Sales (P/S): 4.50
• P/FCF Ratio: 10.01
• Enterprise Value/Market Cap: 0.66
• Enterprise Value/Revenue: 2.99
• Enterprise Value/Gross Profit: 3.13
• Enterprise Value/Ebitda: 4.86
• 1Y Price Target: $55.00
• Price Target Upside: 7.53% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: $57.00 ▲(11.44% Upside)

The score is driven primarily by strong financial quality (profitability and conservative leverage) and attractive valuation (low P/E with a solid dividend yield). Technicals are supportive with the stock trading above key moving averages, while recent declines in revenue and free cash flow growth temper the outlook. Positive corporate actions (dividend and buyback) add support.

Positive Factors

Low-cost deposit franchise

A high share of non‑interest bearing checking deposits and a 0.24% annualized funding cost indicate a structurally cheaper funding base. Durable low funding costs support net interest margins, lending competitiveness and stable earnings across rate cycles.

Conservative balance sheet / capital

Conservative leverage and capital ratios above top regulatory requirements provide long‑term resilience. Solid capital cushions support credit loss absorption, continued lending, dividends and buybacks without materially impairing franchise stability over the medium term.

Strong profitability and margins

High gross and net margins and a double‑digit annualized return on common equity reflect efficient expense control and profitable core lending. Persistent profitability supports cash generation, dividend sustainability and strategic investments over coming quarters.

Negative Factors

Declining revenue trend

Material negative revenue growth over the trailing period signals pressure on top‑line momentum. A sustained revenue contraction can erode margins, limit reinvestment, and constrain medium‑term expansion of the loan book and fee businesses.

Slowing free cash flow growth

Although cash generation is healthy relative to net income, weakening free cash flow growth undermines the firm's ability to fund organic growth, credit provisioning, and shareholder returns simultaneously, reducing strategic flexibility over time.

Geographic concentration risk

A concentrated footprint focused on Northern and Central California increases exposure to regional economic and real estate cycles. Limited geographic diversification can amplify localized downturns and slow durable franchise growth compared with broader, more diversified peers.

Westamerica Bancorporation Business Overview & Revenue Model

Company Description

Westamerica Bancorporation operates as a bank holding company for the Westamerica Bank that provides various banking products and services to individual and commercial customers. The company accepts various deposit products, including retail savings and checking accounts, as well as certificates of deposit. Its loan portfolio includes commercial, commercial and residential real estate, real estate construction, and consumer installment loans, as well as indirect automobile loans. It operates through 78 branch offices in 21 counties in Northern and Central California. The company was formerly known as Independent Bankshares Corporation and changed its name to Westamerica Bancorporation in 1983. The company was incorporated in 1972 and is headquartered in San Rafael, California.

How the Company Makes Money

Westamerica Bancorporation generates revenue primarily through the interest earned on loans and investments, known as net interest income. The company makes money by lending to customers at higher interest rates than it pays on deposits. Key revenue streams include interest from commercial and consumer loans, as well as interest from mortgage loans. Additionally, Westamerica earns non-interest income through fees associated with deposit accounts, transaction services, and wealth management services. The bank's strong regional presence and focus on relationship banking contribute to customer retention and growth in its lending portfolio, further enhancing its earnings potential.

Westamerica Bancorporation Financial Statement Overview

Summary

Strong profitability and a solid balance sheet (low leverage, solid ROE) support quality. Offsetting this, revenue and free cash flow growth have recently declined, which weakens the growth outlook.

Income Statement

Westamerica Bancorporation shows strong profitability with high gross and net profit margins, indicating efficient cost management. However, recent revenue growth has been negative, which could signal challenges in expanding market share or increasing sales.

Balance Sheet

The company maintains a low debt-to-equity ratio, reflecting conservative financial leverage and a strong equity position. Return on equity is solid, though it has slightly decreased over the TTM period, suggesting a need for improved profitability or asset utilization.

Cash Flow

Cash flow metrics indicate healthy free cash flow relative to net income, suggesting good cash generation capabilities. However, the decline in free cash flow growth in the TTM period raises concerns about future cash flow sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	278.09M	311.17M	327.54M	266.88M	216.79M	207.96M
Gross Profit	264.96M	293.45M	324.80M	264.95M	214.83M	201.83M
EBITDA	170.82M	199.46M	233.35M	182.16M	133.64M	129.45M
Net Income	120.07M	138.64M	161.77M	122.03M	86.51M	80.41M
Balance Sheet
Total Assets	5.91B	6.08B	6.36B	6.95B	7.46B	6.75B
Cash, Cash Equivalents and Short-Term Investments	1.98B	1.94B	4.19B	4.63B	5.77B	4.68B
Total Debt	156.08M	138.31M	76.98M	73.54M	164.23M	121.38M
Total Liabilities	4.98B	5.19B	5.59B	6.35B	6.63B	5.90B
Stockholders Equity	931.65M	889.96M	772.89M	602.11M	827.10M	844.81M
Cash Flow
Free Cash Flow	122.81M	139.83M	157.05M	112.89M	87.41M	105.54M
Operating Cash Flow	125.10M	141.57M	158.21M	113.70M	88.73M	107.74M
Investing Cash Flow	428.16M	715.68M	547.27M	-631.29M	-306.08M	-748.92M
Financing Cash Flow	-396.94M	-446.07M	-809.40M	-320.26M	728.16M	889.03M

Westamerica Bancorporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 51.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WABC, the sentiment is Positive. The current price of 51.15 is above the 20-day moving average (MA) of 49.27, above the 50-day MA of 48.56, and above the 200-day MA of 47.76, indicating a bullish trend. The MACD of 0.54 indicates Negative momentum. The RSI at 62.90 is Neutral, neither overbought nor oversold. The STOCH value of 43.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WABC.

Westamerica Bancorporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WABC	80 Outperform	$1.26B	11.18	13.05%	3.70%	-13.17%	-16.37%
RBCAA	75 Outperform	$1.26B	10.92	12.35%	2.57%	5.21%	24.51%
DCOM	74 Outperform	$1.49B	14.42	4.23%	3.14%	-1.79%	-23.87%
BFC	72 Outperform	$1.57B	19.31	11.18%	3.99%	14.13%	-12.75%
OBK	71 Outperform	$1.33B	17.85	5.08%	1.56%	-6.29%	-21.17%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PFBC	67 Neutral	$1.15B	8.24	16.91%	2.99%	-3.05%	-0.51%

Westamerica Bancorporation Corporate Events

Westamerica Bancorporation Appoints Carter Welch to Board

On January 22, 2026, Westamerica Bancorporation announced that its Board of Directors appointed Carter Welch as an independent director, with his term to begin on February 26, 2026 and continue until a successor is nominated, qualified and elected. Welch brings more than 25 years of experience in marketing and business strategy, adding depth to the board’s expertise in areas that are likely important for the company’s strategic direction and stakeholder oversight.

The most recent analyst rating on (WABC) stock is a Buy with a $59.00 price target. To see the full list of analyst forecasts on Westamerica Bancorporation stock, see the WABC Stock Forecast page.

Westamerica Bancorporation Declares Quarterly Cash Dividend, Signals Stability

On January 22, 2026, Westamerica Bancorporation’s board declared a quarterly cash dividend of $0.46 per share on common stock, payable on February 13, 2026, to shareholders of record as of February 2, 2026, underscoring the bank’s consistent dividend policy. The move followed the company’s January 15, 2026 report of $27.8 million in net income, or $1.12 diluted earnings per share, for the fourth quarter of 2025, with management citing reliable earnings, financial strength and a conservative risk profile, signaling ongoing stability for investors and reinforcing its positioning as a financially solid regional banking franchise.

The most recent analyst rating on (WABC) stock is a Hold with a $55.00 price target. To see the full list of analyst forecasts on Westamerica Bancorporation stock, see the WABC Stock Forecast page.

Westamerica Bancorporation Announces Significant Share Repurchase Program

On December 18, 2025, Westamerica Bancorporation announced that its board of directors had approved a stock repurchase plan authorizing the company to buy back up to 2,000,000 shares of its common stock, or about 8% of shares outstanding as of September 30, 2025, via open-market purchases or privately negotiated transactions through December 31, 2026. Management framed the move as a reflection of Westamerica’s financial strength, conservative risk profile and reliable earnings, signaling confidence in the bank’s capital position and potentially enhancing shareholder value through reduced share count in a competitive regional banking landscape.

The most recent analyst rating on (WABC) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on Westamerica Bancorporation stock, see the WABC Stock Forecast page.