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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)

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Outperform 75 (OpenAI - Gpt-5.6Sol)
Rating:75Outperform
Price Target:
$68.00
â–²(16.90% Upside)
Action:Reiterated
Date:10/23/26
The score is driven primarily by strong profitability, conservative leverage, and solid free-cash-flow-to-earnings alignment, tempered by sharply negative recent revenue growth and cooler ROE versus prior peaks. Technicals are mildly supportive with price above key moving averages and neutral momentum, while reasonable P/E and a ~3.1% dividend yield further underpin the overall profile; dividend-related corporate updates add a modest positive.
Positive Factors
Low-cost, efficient banking model
Low funding costs and disciplined operating expenses support a durable spread-based banking model. The combination of a 3.81% net interest margin and 41% operating-cost ratio indicates that Westamerica is converting deposits and lending activity into earnings efficiently.
Negative Factors
Sharp revenue deterioration
The sharp decline in revenue and lower earnings versus earlier periods weaken the bank’s growth profile. If the contraction persists, it could reduce the resources available for reinvestment and capital returns, while making strong current margins less representative of future earnings power.
Read all positive and negative factors
Positive Factors
Negative Factors
Low-cost, efficient banking model
Low funding costs and disciplined operating expenses support a durable spread-based banking model. The combination of a 3.81% net interest margin and 41% operating-cost ratio indicates that Westamerica is converting deposits and lending activity into earnings efficiently.
Read all positive factors

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

Westamerica Bancorporation Business Overview & Revenue Model

Company Description
Westamerica Bancorporation (WABC) functions as a bank holding company, overseeing Westamerica Bank. Through its subsidiary, it delivers a comprehensive suite of financial products and services to both individual consumers and commercial enterprise...
How the Company Makes Money
Westamerica Bancorporation makes money primarily through its banking subsidiary by earning interest income on loans and investment securities and by generating fee-based, noninterest income from banking services. 1) Net interest income (core earn...

Westamerica Bancorporation Financial Statement Overview

Summary
Strong profitability (TTM net margin ~41.7%, EBIT margin ~56.1%) and conservative leverage (TTM debt-to-equity ~0.15) support a solid base, with good earnings quality (TTM FCF ~$146.8M, ~98% of net income). The key offset is a sharp deterioration in momentum (TTM revenue growth -63.2%) and a step-down in ROE versus 2022–2023 levels.
Income Statement
71
Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue265.93M271.84M311.17M327.54M266.88M216.79M
Gross Profit252.51M258.70M293.45M324.80M264.95M214.83M
EBITDA151.69M163.93M199.46M233.35M182.16M133.64M
Net Income110.70M116.17M138.64M161.77M122.03M86.51M
Balance Sheet
Total Assets5.79B5.96B6.08B6.36B6.95B7.46B
Cash, Cash Equivalents and Short-Term Investments322.51M2.12B1.94B4.19B4.63B5.77B
Total Debt139.06M159.50M138.31M76.98M73.54M164.23M
Total Liabilities5.00B5.03B5.19B5.59B6.35B6.63B
Stockholders Equity789.67M933.51M889.96M772.89M602.11M827.10M
Cash Flow
Free Cash Flow79.39M119.59M139.83M157.05M112.89M87.41M
Operating Cash Flow81.84M121.90M141.57M158.21M113.70M88.73M
Investing Cash Flow-272.40M149.67M715.68M547.27M-631.29M-306.08M
Financing Cash Flow-166.78M-305.20M-446.07M-809.40M-320.26M728.16M

Westamerica Bancorporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price58.17
Price Trends
50DMA
59.41
Positive
100DMA
59.11
Positive
200DMA
55.44
Positive
Market Momentum
MACD
0.61
Negative
RSI
54.38
Neutral
STOCH
59.22
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 58.17 is below the 20-day moving average (MA) of 60.06, below the 50-day MA of 59.41, and above the 200-day MA of 55.44, indicating a bullish trend. The MACD of 0.61 indicates Negative momentum. The RSI at 54.38 is Neutral, neither overbought nor oversold. The STOCH value of 59.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WABC.

Westamerica Bancorporation Risk Analysis

Westamerica Bancorporation disclosed 24 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
84
Outperform
$1.60B13.9811.35%2.12%-1.73%1.03%
80
Outperform
$1.27B9.7116.84%2.99%-0.13%9.53%
77
Outperform
$1.64B18.4611.18%1.42%32.72%12.75%
75
Outperform
$1.41B13.1012.80%3.09%-4.35%1.06%
73
Outperform
$1.83B13.559.50%2.39%13.64%169.34%
71
Outperform
$1.58B12.4010.20%1.56%3.63%43.62%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WABC
Westamerica Bancorporation
60.92
14.84
32.20%
DCOM
Dime Community Bancshares
41.86
16.40
64.43%
PFBC
Preferred Bank
107.08
19.43
22.17%
RBCAA
Republic Bancorp
91.44
26.83
41.53%
OBK
Origin Bancorp
51.22
17.29
50.95%
BFC
Bank First National
147.88
25.45
20.79%

Westamerica Bancorporation Corporate Events

DividendsFinancial Disclosures
Westamerica Bancorporation Declares Quarterly Cash Dividend
Positive
Oct 22, 2026
Westamerica Bancorporation, through its wholly owned subsidiary Westamerica Bank, operates banking and trust offices throughout Northern and Central California, providing regional banking and trust services with an emphasis on financial stability ...
DividendsFinancial Disclosures
Westamerica Bancorporation Declares Quarterly Cash Dividend
Positive
Jul 23, 2026
On July 23, 2026, Westamerica Bancorporation’s board declared a quarterly cash dividend of $0.48 per share on common stock, payable on August 14, 2026 to shareholders of record as of August 3, 2026. Management emphasized that the dividend re...
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: Oct 23, 2026