Westamerica Bancorporation (WABC) AI Stock Analysis

Westamerica Bancorporation serves as the bank holding company for Westamerica Bank, delivering financial products and services to individual and commercial customers. Founded in 1972 and based in San Rafael, California, the company operates a network of branches providing retail savings accounts, checking accounts, and certificates of deposit. Its lending portfolio covers commercial loans, residential and commercial real estate loans, construction financing, consumer installment loans, and indirect automobile loans. Formerly known as Independent Bankshares Corporation until 1983, the bank focuses on regional community banking, customer service, and adapting to industry and technological developments.

Between FY2020 and FY2025, revenue expanded at a five-year compound annual growth rate of 5.5%. Annual revenue peaked at $327.5M in FY2023 before declining 5.0% to $311.2M in FY2024 and 12.6% to $271.8M in FY2025. Net income moved from $86.5M in FY2021 to a peak of $161.8M in FY2023, subsequently falling to $116.2M in FY2025. Diluted earnings per share stood at $4.52 in FY2025. In the latest quarter ended September 30, 2026, revenue increased 0.5% year-over-year to support trailing twelve month revenue of $252.5M, while quarterly net earnings expanded 9.3% year-over-year. Trailing twelve month operating margin remained high at 60.8%.

As of September 30, 2026, Westamerica held $322.5M in cash and short-term investments against total debt of $139.1M, yielding a net cash position of $183.4M. Total assets reached $5.79B, with shareholders' equity at $789.7M and a debt-to-equity ratio of 0.18. The company's current ratio stood at 2.32. In FY2025, capital expenditures were modest at $2.2M, leaving free cash flow at $119.6M. Capital allocation in FY2025 included $103.8M deployed toward share buybacks and $46.9M paid in cash dividends.

Westamerica trades at a trailing price-to-earnings ratio of 13.6x and a forward price-to-earnings ratio of 21.1x, higher than the median of its US-listed Financial Services peers at 12.1x trailing and 10.8x forward. Its price-to-sales ratio stands at 5.6x compared to the peer median of 3.2x, while its price-to-book ratio is 1.3x. Over the past year, the stock returned 38.6%, outperforming the S&P 500 (SPY) return of 16.8%. However, its five-year return of 32.9% lagged the S&P 500 return of 83.0%.

Westamerica Bancorporation pays an annualized forward dividend of $1.92 per share, representing a 3.13% dividend yield with a payout ratio of 32.6%. The company distributes dividends quarterly and has paid consecutive dividends for 42 years. Its dividend has achieved a 2.1% five-year annualized growth rate. The last ex-dividend date was August 3, 2026.

Wall Street coverage consists of 2 Hold ratings, with 0 Buy or Sell recommendations. The mean price target is $65.00, reflecting an upside potential of 6.1% relative to the last close of $61.28. Consensus estimates project FY2026 EPS of $4.74 on revenue of $254.4M, followed by FY2027 EPS of $4.94 on revenue of $259.0M. Over the last four quarters, the bank exceeded consensus EPS estimates in all 4 periods.

This page is an AI-written research summary of Westamerica Bancorporation (WABC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: WABC income statement, WABC balance sheet, WABC key metrics, WABC analyst forecast, WABC chart. See the WABC stock overview for the latest quote and news.