Westamerica Bancorporation has produced a perfect 4-for-4 earnings beat streak with consistent EPS surprises near 5%, and trades at a forward P/E of 13.4x with best-in-class net margins of 44%, though revenue is declining at -7% annually and the stock sits near its 52-week high with negative asymmetry.
Thesis pillars
- Revenue Decline Growth Concern→Stable
- Perfect Earnings Beat Consistency↓Deteriorating
- Best In Class Net Margin→Stable
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Feb 27, 2026
Westamerica Bancorporation (WABC) Stock Analysis
Breakout setup · Inst Constrain edge
Financial Services · Banks - Regional
Hold if already holding. Not a fresh buy at $60.92, but acceptable to hold if already in. Reasons: Concentration risk — Geographic: California; Concentration risk — Loan Portfolio: real estate-collateralized loans (68.0%).
Westamerica Bancorporation operates Westamerica Bank, a California state-chartered commercial bank serving individuals and small businesses across Northern and Central California. As of December 31, 2025, it held $6.0 billion in consolidated assets, $4.8 billion in deposits, and... Read more
Hold if already holding. Not a fresh buy at $60.92, but acceptable to hold if already in. Reasons: Concentration risk — Geographic: California; Concentration risk — Loan Portfolio: real estate-collateralized loans (68.0%). Chart setup: Golden cross, above all MAs, RSI 57, MACD bullish. Maintain position. Not compelling to add more. Score 5.3/10, moderate confidence.
Passes 7/9 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 77d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.
About Westamerica Bancorporation
About Westamerica Bancorporation
Westamerica Bancorporation held $6.0 billion in consolidated assets, $4.8 billion in deposits, and $934 million in shareholders' equity as of December 31, 2025, operating through its sole subsidiary, Westamerica Bank, across Northern and Central California from Mendocino and Nevada Counties in the north to Kern County in the south. The Bank is a California state-chartered Federal Reserve member institution, regulated primarily by the Federal Reserve Board and the California Department of Financial Protection and Innovation, and employs 627 people.
Westamerica earns the bulk of its income from the spread between interest earned on loans and investment securities and interest paid on deposits and other borrowings, a margin sensitive to Federal Reserve policy and competitive deposit pricing. The Bank's strategic focus is on small-business banking, and its data-processing subsidiary, Community Banker Services Corporation, supports back-office operations for the consolidated group. Real estate served as the principal source of collateral for approximately 68% of the loan portfolio as of December 31, 2025, and the Bank has historically grown through acquisitions — including ValliCorp Holdings in 1997 and the FDIC-assisted purchases of the failed County Bank and Sonoma Valley Bank in 2009 and 2010 — rather than organic branch expansion alone. As a bank holding company with consolidated assets below $10 billion, Westamerica remains exempt from the Volcker Rule's proprietary-trading restrictions and the Dodd-Frank Act's debit-card interchange-fee cap, though larger competitors' interchange pricing can still constrain what Westamerica charges.
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Westamerica's risk factors single out California concentration explicitly: 'substantially all' of the company's business is located in the state, and the 10-K flags that Central Valley counties — from Sacramento to Bakersfield, where approximately 29% of the Bank's loans originate — could recover less soundly from economic downturns than the San Francisco Bay Area counties the Bank also serves. That geographic exposure compounds the loan book's reliance on real estate collateral: a decline in California property values would simultaneously impair collateral values across roughly two-thirds of the loan portfolio and weaken the local borrower base that portfolio depends on.
See also: Financial Services · Banks - Regional
From Westamerica Bancorporation's most recent 10-K filing, extracted July 6, 2026.
Recent developments
updated 2026-10-29Recent Developments — Westamerica Bancorporation
Latest news
- NEWS Westamerica Bancorporation faces earnings test as margins pinch By Investing.com - Investing.com Canada — Investing.com Canada negative
- NEWS New York State Teachers Retirement System Trims Stock Holdings in Westamerica Bancorporation $WABC - MarketBeat — MarketBeat negative
- NEWS WABC Channel 7 Eyewitness News At 11:00 Open, 6/8/2026 (Knicks Lose!) Modena - Juve Stabia (TfIJmolmgv) - Mshale — Mshale neutral
- NEWS Westamerica faces earnings test on net interest margins By Investing.com - Investing.com Nigeria — Investing.com Nigeria neutral
- NEWS Westamerica faces earnings test on net interest margins By Investing.com - Investing.com India — Investing.com India neutral
Generated 2026-10-29T11:20:26Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHGeographicCalifornia10-K Item 1A: 'Substantially all of the Company's business is located in California.'
- HIGHloan_portfolioreal estate-collateralized loans68%10-K Item 1A: 'real estate served as the principal source of collateral with respect to approximately 68% of the Company's loan portfolio'
- MEDIUMGeographicCalifornia Central Valley loans29%10-K Item 1A: 'Approximately 29% of the Company's loans were to borrowers in the California "Central Valley" as of December 31, 2025.'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
1 floor-breaker
Growth below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $60.92, but acceptable to hold if already in. Reasons: Concentration risk — Geographic: California; Concentration risk — Loan Portfolio: real estate-collateralized loans (68.0%). Chart setup: Golden cross, above all MAs, RSI 57, MACD bullish. Maintain position. Not compelling to add more. Analyst target $55.25 reached (−9.3%), stop $58.38 (−4.4%), A.R:R -1.6:1. Score 5.3/10, moderate confidence.
Analyst target $55.25 reached (−9.3% from $60.92); no take-profit level is published. Analyst target $55.25 reached (−9.3%), stop $58.38 (−4.4%), A.R:R -1.6:1. Stop-loss: $58.38.
Concentration risk — Geographic: California; Concentration risk — Loan Portfolio: real estate-collateralized loans (68.0%); Analyst target reached - limited upside remaining.
Westamerica Bancorporation trades at a P/E of 13.4 (forward 13.0). TrendMatrix value score: 7.2/10. Verdict: Hold.
7 analysts cover WABC with a consensus score of 2.3/5. Average price target: $65.
What does Westamerica Bancorporation do?Westamerica Bancorporation operates Westamerica Bank, a California state-chartered commercial bank serving individuals...
Westamerica Bancorporation operates Westamerica Bank, a California state-chartered commercial bank serving individuals and small businesses across Northern and Central California. As of December 31, 2025, it held $6.0 billion in consolidated assets, $4.8 billion in deposits, and $934 million in equity, with 627 employees. Real estate collateralized about 68% of its loan portfolio, and 29% of loans went to Central Valley borrowers.