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Westamerica Bancorporation (WABC)
NASDAQ:WABC
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Westamerica Bancorporation (WABC) AI Stock Analysis

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WABC

Westamerica Bancorporation

(NASDAQ:WABC)

Rating:75Outperform
Price Target:
$55.00
▲(12.13%Upside)
Westamerica Bancorporation's strong financial performance and attractive valuation are key strengths, contributing significantly to the overall score. Despite some bearish technical indicators, the company's robust cash flow and dividend policy enhance its attractiveness. The recent analyst 'Hold' rating further supports a stable outlook.
Positive Factors
Credit Quality
WABC is recognized for its exceptional credit quality, reflected in non-accrual loans being only 0.02% of total loans.
Dividend Increase
WABC announced a 4.6% increase in its quarterly dividend, which is likely to attract income-focused investors.
Earnings
WABC reported second-quarter earnings per share of $1.12, surpassing both the analyst consensus estimate and internal forecasts, indicating strong financial performance.
Negative Factors
Earning Assets
The trend of declining average earning assets for WABC is expected to continue, potentially affecting revenue growth.
Net Interest Margin
The net interest margin for WABC has narrowed, which could impact future profitability.
Profitability
Analysts predict a slow but steady decline in profitability for WABC in the coming quarters.

Westamerica Bancorporation (WABC) vs. SPDR S&P 500 ETF (SPY)

Westamerica Bancorporation Business Overview & Revenue Model

Company DescriptionWestamerica Bancorporation (WABC) is a bank holding company based in San Rafael, California. It operates through its principal subsidiary, Westamerica Bank, which provides a range of financial services to individual and business customers. The company offers traditional banking products such as checking and savings accounts, loans, and credit services, catering primarily to clients in Northern and Central California. Westamerica Bancorporation is known for its focus on community banking and personalized customer service.
How the Company Makes MoneyWestamerica Bancorporation primarily generates revenue through interest income from its loan portfolio and investment securities. The company earns money by providing loans to individuals and businesses, charging interest on these loans, and collecting fees for various banking services. Additionally, Westamerica Bancorporation generates non-interest income through service charges on deposit accounts, fees for managing assets, and other financial services. The company's profitability is influenced by its ability to manage interest rate spreads, maintain low-cost deposits, and efficiently manage its operating expenses. Strategic partnerships, such as collaborations with financial service providers and community organizations, also contribute to its revenue streams.

Westamerica Bancorporation Financial Statement Overview

Summary
Westamerica Bancorporation showcases strong financial health across all statements. The income statement highlights high profitability despite a decline in revenue. The balance sheet reflects low leverage and effective equity utilization, while cash flow analysis indicates robust cash generation and management. The company's financial stability and profitability position it well within the regional banking industry, though attention to revenue growth remains important for future performance.
Income Statement
85
Very Positive
The income statement reflects strong profitability with a high gross profit margin of approximately 94.27% and a solid net profit margin of 44.09% for TTM (Trailing-Twelve-Months). Despite a decrease in total revenue by 8.99% compared to the previous annual report, the company maintains robust EBIT and EBITDA margins at 60.05% and 63.17%, respectively. The high margins indicate effective cost management, although the revenue decline suggests potential challenges in revenue generation.
Balance Sheet
80
Positive
The balance sheet demonstrates stability with a low debt-to-equity ratio of 0.14, indicating low leverage. The return on equity is strong at 14.44%, suggesting efficient use of shareholder funds. Additionally, the equity ratio stands at 15.47%, reflecting a conservative capital structure. The company's strong equity position and low debt levels contribute to its financial resilience, though the modest equity ratio highlights a smaller proportion of equity financing relative to total assets.
Cash Flow
90
Very Positive
Cash flow analysis shows strong operational performance with a high operating cash flow to net income ratio of 0.99 and a robust free cash flow to net income ratio of 0.97. The company exhibits a positive free cash flow growth rate of 15.11% compared to the previous annual report, indicating effective cash management and the ability to generate cash beyond operational needs. This strong cash flow performance enhances the company's financial flexibility.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue302.14M311.17M327.54M266.88M216.79M207.96M
Gross Profit284.87M293.45M324.80M264.95M214.83M201.83M
EBITDA190.91M199.46M233.35M182.16M133.64M129.45M
Net Income133.26M138.64M161.77M122.03M86.51M80.41M
Balance Sheet
Total Assets5.97B6.08B6.36B6.95B7.46B6.75B
Cash, Cash Equivalents and Short-Term Investments1.90B1.94B4.19B4.63B5.77B4.68B
Total Debt133.21M138.31M76.98M73.54M164.23M121.38M
Total Liabilities5.04B5.19B5.59B6.35B6.63B5.90B
Stockholders Equity923.14M889.96M772.89M602.11M827.10M844.81M
Cash Flow
Free Cash Flow129.93M139.83M157.05M112.89M87.41M105.54M
Operating Cash Flow131.75M141.57M158.21M113.70M88.73M107.74M
Investing Cash Flow843.12M715.68M547.27M-631.29M-306.08M-748.92M
Financing Cash Flow-681.79M-446.07M-809.40M-320.26M728.16M889.03M

Westamerica Bancorporation Technical Analysis

Technical Analysis Sentiment
Negative
Last Price49.05
Price Trends
50DMA
49.09
Negative
100DMA
48.76
Positive
200DMA
50.28
Negative
Market Momentum
MACD
0.18
Positive
RSI
45.49
Neutral
STOCH
18.46
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WABC, the sentiment is Negative. The current price of 49.05 is below the 20-day moving average (MA) of 50.32, below the 50-day MA of 49.09, and below the 200-day MA of 50.28, indicating a bearish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 45.49 is Neutral, neither overbought nor oversold. The STOCH value of 18.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WABC.

Westamerica Bancorporation Risk Analysis

Westamerica Bancorporation disclosed 25 risk factors in its most recent earnings report. Westamerica Bancorporation reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Westamerica Bancorporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$1.62B14.787.12%1.75%-2.85%-0.33%
76
Outperform
$1.74B15.467.25%2.55%-1.08%32.40%
75
Outperform
$1.28B10.4514.60%3.63%-10.55%-16.51%
74
Outperform
$1.38B12.399.17%3.09%1.15%-0.39%
74
Outperform
$1.51B30.2412.78%16.62%18.72%
68
Neutral
$17.10B11.449.70%3.58%11.11%-4.78%
64
Neutral
$1.33B30.071.92%5.38%-12.50%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WABC
Westamerica Bancorporation
49.05
-4.84
-8.98%
HOPE
Hope Bancorp
10.41
-2.66
-20.35%
TCBK
Trico Bancshares
42.78
-3.41
-7.38%
VBTX
Veritex
32.51
7.99
32.59%
STEL
Stellar Bancorp
31.39
4.01
14.65%
CCB
Coastal Financial
102.32
49.39
93.31%

Westamerica Bancorporation Corporate Events

DividendsFinancial Disclosures
Westamerica Bancorporation Declares Quarterly Dividend
Positive
Jul 24, 2025

On July 24, 2025, Westamerica Bancorporation declared a quarterly cash dividend of $0.46 per share, payable on August 15, 2025, reflecting the company’s reliable earnings and financial strength. Previously, on July 17, 2025, the company reported a net income of $29.1 million for the quarter ending June 30, 2025, highlighting its stable financial performance.

The most recent analyst rating on (WABC) stock is a Hold with a $60.00 price target. To see the full list of analyst forecasts on Westamerica Bancorporation stock, see the WABC Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 25, 2025