Westamerica Bancorporation Launches Share Buyback Program

Westamerica Bancorporation Authorizes Significant Share Repurchase Program

SAN RAFAEL, Calif. – December 18, 2025 – Westamerica Bancorporation (NASDAQ: WABC) announced today that its Board of Directors has approved a new stock repurchase program, authorizing the buyback of up to 2,000,000 shares of the company’s common stock. This strategic move underscores the bank’s robust financial standing and commitment to shareholder value.

The authorization permits repurchases to be made on the open market or through privately negotiated transactions. This flexibility allows Westamerica to execute the program efficiently, capitalizing on market conditions as they arise. The program is slated to conclude on December 31, 2026.

This repurchase authorization is substantial, representing approximately 8.0% of the company’s outstanding shares as of September 30, 2025. Such a significant buyback signals management’s confidence in the company’s intrinsic value and its future earnings potential.

David Payne, Chairman, President, and CEO of Westamerica Bancorporation, commented on the decision, stating, “This stock repurchase plan reflects Westamerica’s strong financial position, our conservative approach to risk management, and our consistent track record of generating reliable earnings. We believe this is a prudent use of capital that will benefit our shareholders.”

The buyback is discretionary, with repurchases to be executed “as conditions warrant.” This approach indicates that while the company has authorized the repurchase, the actual execution will be dependent on prevailing market dynamics and the company’s ongoing assessment of its capital allocation strategy. Management’s emphasis on financial strength, a conservative risk profile, and a reliable earnings stream suggests that the program is designed to be a sustainable component of the company’s capital return strategy rather than a signal of immediate undervaluation.

Westamerica Bancorporation, through its subsidiary Westamerica Bank, operates a network of banking and trust offices across Northern and Central California. The company has built a reputation for stability and consistent performance in the regional banking sector.

The repurchase program is expected to be funded by existing cash resources and the company’s strong operating cash flow. This approach minimizes the need for additional debt financing, further reinforcing the message of financial prudence. From a financial analysis perspective, such buybacks can have several positive implications for shareholders. They can reduce the number of outstanding shares, thereby increasing earnings per share (EPS) and potentially boosting the stock price. Furthermore, it demonstrates a commitment from management to return capital to shareholders, which can enhance investor confidence.

However, the discretionary nature of the buyback means that its impact on shareholder returns could be subject to change. If market conditions deteriorate or if the company’s strategic priorities shift, the repurchase program could be slowed or suspended. Investors will be closely monitoring the execution of this program and its impact on key financial metrics.

For investors and analysts, the announcement provides valuable insight into Westamerica’s capital allocation strategy and its outlook on its own stock’s valuation. The “as conditions warrant” clause, while standard, invites scrutiny regarding the triggers that would lead to accelerated repurchases or a pause in the program. The company’s stated reliance on its “reliable earnings stream” suggests that future buybacks will likely be well-supported by operational performance.

This initiative occurs within a broader market context where many financial institutions are re-evaluating their capital return strategies in light of evolving economic conditions and regulatory landscapes. Westamerica’s move appears to be a proactive measure to enhance shareholder value while maintaining a disciplined financial approach.

Forward-Looking Statements:
This press release may contain forward-looking statements concerning the Company. These statements are based on management’s current expectations and are subject to risks and uncertainties that could cause actual results to differ materially. Factors that could influence future results include, but are not limited to, changes in business and economic conditions, competition, fiscal and monetary policies, cyber security risks, legislative changes, and other risks detailed in the Company’s filings with the Securities and Exchange Commission. The Company undertakes no obligation to update these forward-looking statements.