Westamerica Bancorporation sets plan to repurchase 2M shares

SAN RAFAEL, Calif. - Westamerica Bancorporation (NASDAQ: NASDAQ:WABC), a banking institution operating in Northern and Central California, has announced a new stock repurchase program. The company’s Board of Directors has approved the buyback of up to 2,000,000 shares, which is equivalent to approximately 7.5 percent of its common stock outstanding as of December 31, 2024. This decision underscores the company’s strong financial position and consistent earnings performance, reflected in its impressive 51-year streak of maintaining dividend payments and a current dividend yield of 3.51%.

The repurchase plan is set to be executed on the open market or through privately negotiated transactions, with a completion deadline of March 31, 2026. David Payne, Chairman, President, and CEO of Westamerica, commented on the plan, highlighting the company’s "financial strength, conservative risk profile, and reliable earnings stream." According to InvestingPro data, the company maintains a healthy financial profile with a P/E ratio of 9.69 and notably low volatility with a beta of 0.57.

Westamerica Bancorporation’s strategy to buy back shares is a common financial maneuver that can potentially benefit shareholders by increasing the value of remaining shares. It also reflects the company’s confidence in its own financial health and future prospects. InvestingPro analysis reveals the company has raised its dividend for 32 consecutive years, with several additional insights available to subscribers.

The company, through its subsidiary Westamerica Bank, provides banking and trust services across a network of offices in its regional market. This move comes as part of the company’s broader financial management practices and is subject to market conditions.

Investors and stakeholders should note that while the company has expressed positive expectations for its operations and financial performance, forward-looking statements are inherently uncertain. Factors that could cause actual results to differ include market risks, economic conditions, and regulatory changes, among others.

The information regarding the repurchase plan is based on a press release statement from Westamerica Bancorporation. As with all financial decisions, the actual outcome of the repurchase plan will depend on a variety of market and economic factors.

In other recent news, Westamerica Bancorporation has announced significant changes in its executive team. The company reported the retirement of John "Robert" A. Thorson, who served as Senior Vice President and Treasurer, effective January 24, 2025. Thorson has been with the company for over 35 years, marking the end of a long tenure. Following his retirement, John Sousa has been appointed as the new Senior Vice President and Treasurer, starting January 27, 2025. Sousa joined Westamerica Bancorporation in July 2024 as Vice President and Assistant Treasurer. Before joining the company, he managed investment portfolios and derivatives execution at Bank of the West for over thirteen years. This leadership transition is a notable development in Westamerica Bancorporation’s financial management team. The changes were detailed in a recent SEC filing as part of the company’s disclosure obligations.

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