Westamerica Bancorporation (WABC) | Investment Case

1. Company Snapshot

1.a. 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.

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1.b. Last Insights on WABC

Westamerica Bancorporation's recent performance was negatively driven by a miss in Q4 earnings and revenue estimates. The company reported earnings of $1.19 per share, below the consensus estimate of $1.21 per share, and a 19.7% decline from the same period last year. The bank's net income was also impacted by an increase to the book tax provision, which reduced EPS by $0.01. Additionally, the company's results were negatively compared to its Q3 2024 performance, which included gains from life insurance and sales of other assets equivalent to EPS of $0.04.

1.c. Company Highlights

Last Price	47.59
Change Percentage	-1.16%
Open	47.85
Previous Close	48.15
Market Cap ( Millions)	1187
Volume	89820
Year High	57.65
Year Low	42
M A 50	47.77
M A 200	48.74

FCF Yield	10.49%
Dividend Yield	3.82%
ROE	13.10%
Debt / Equity	14.35%
Net Debt / EBIDTA	-311.11%
Price To Book	1.29
Price Earnings Ratio	10.04
Price To FCF	9.54
Price To sales	4.27
EV / EBITDA	3.91

2. Transcript Summary

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3. NewsRoom

Reviewing FS Bancorp (NASDAQ:FSBW) and Westamerica Bancorporation (NASDAQ:WABC)

Dec -03

Source: defenseworld.net

American Century Companies Inc. Increases Position in Westamerica Bancorporation $WABC

Nov -26

Source: defenseworld.net

D.A. Davidson & CO. Purchases 2,471 Shares of Westamerica Bancorporation $WABC

Oct -30

Source: defenseworld.net

Westamerica Bancorporation Declares Quarterly Cash Dividend

Oct -23

Source: globenewswire.com

Westamerica Bancorporation Reports Third Quarter 2025 Financial Results

Oct -16

Source: globenewswire.com

Westamerica Bancorporation Reports Second Quarter 2025 Financial Results

Jul -17

Source: globenewswire.com

4 Upcoming Dividend Increases

May -02

Source: seekingalpha.com

Westamerica Bancorporation Increases Quarterly Cash Dividend

Apr -24

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (14.00%)

6. Segments

Banking and Related Activities

Expected Growth: 14%

Westamerica Bancorporation's 14% growth in Banking and Related Activities is driven by strong loan growth, increased deposit market share, and expansion of fee-based services. Additionally, the bank's focus on commercial and industrial lending, as well as its strategic acquisitions, have contributed to its growth momentum.

7. Detailed Products

Personal Banking

Westamerica Bancorporation offers a range of personal banking services, including checking and savings accounts, credit cards, loans, and investment products.

Business Banking

The company provides business banking services, including commercial loans, cash management, and treasury management solutions.

Wealth Management

Westamerica Bancorporation offers wealth management services, including investment management, trust services, and financial planning.

Mortgage Lending

The company provides mortgage lending services, including residential and commercial mortgage loans.

Online Banking

Westamerica Bancorporation offers online banking services, including bill pay, fund transfers, and account management.

Mobile Banking

The company provides mobile banking services, including mobile deposit, bill pay, and account management.

8. Westamerica Bancorporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Westamerica Bancorporation operates in a highly competitive industry, with many substitutes available to customers. However, the company's strong brand recognition and customer loyalty help to mitigate the threat of substitutes.

Bargaining Power Of Customers

Westamerica Bancorporation's customers have some bargaining power due to the availability of alternative banking services. However, the company's strong relationships with its customers and its ability to offer personalized services help to reduce the bargaining power of customers.

Bargaining Power Of Suppliers

Westamerica Bancorporation has a diverse supplier base, which reduces the bargaining power of individual suppliers. The company's strong financial position also gives it the ability to negotiate favorable terms with its suppliers.

Threat Of New Entrants

The banking industry is heavily regulated, which creates barriers to entry for new entrants. Additionally, Westamerica Bancorporation's strong brand recognition and established customer base make it difficult for new entrants to gain traction.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players competing for market share. Westamerica Bancorporation faces intense competition from larger banks and fintech companies, which puts pressure on its pricing and profitability.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	9.70%
Debt Cost	3.95%
Equity Weight	90.30%
Equity Cost	6.74%
WACC	6.47%
Leverage	10.74%

11. Quality Control: Westamerica Bancorporation passed 6 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

United Security Bancshares

A-Score: 7.3/10

Value: 6.8

Growth: 5.9

Quality: 7.4

Yield: 9.0

Momentum: 7.0

Volatility: 7.7

1-Year Total Return ->

OpenBank

A-Score: 7.0/10

Value: 7.7

Growth: 6.9

Quality: 6.7

Yield: 8.0

Momentum: 6.0

Volatility: 6.7

1-Year Total Return ->

Westamerica

A-Score: 6.8/10

Value: 5.9

Growth: 6.3

Quality: 8.0

Yield: 7.0

Momentum: 5.0

Volatility: 8.7

1-Year Total Return ->

Mercantile Bank

A-Score: 6.8/10

Value: 6.4

Growth: 7.8

Quality: 6.1

Yield: 7.0

Momentum: 6.0

Volatility: 7.3

1-Year Total Return ->

Bank of Princeton

A-Score: 5.8/10

Value: 5.8

Growth: 5.0

Quality: 6.2

Yield: 7.0

Momentum: 2.5

Volatility: 8.0

1-Year Total Return ->

BankFinancial

A-Score: 5.6/10

Value: 4.6

Growth: 3.6

Quality: 4.2

Yield: 8.0

Momentum: 5.0

Volatility: 8.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-7.86%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.47%

Westamerica Bancorporation - US9570901036

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on WABC

1.c. Company Highlights

Better Quality

Average Growth

Stable Momentum

Revenues Beats

Average Quality

Earnings Beats

Medium Volatility

Average Yield

Revenues Miss

Weak Momentum

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (14.00%)

6. Segments

Banking and Related Activities

Expected Growth: 14%

7. Detailed Products

Personal Banking

Business Banking

Wealth Management

Mortgage Lending

Online Banking

Mobile Banking

8. Westamerica Bancorporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Westamerica Bancorporation passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

47.59$

Current Price

47.59$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA