Westamerica Bancorporation’s Board of Directors approved a new share‑repurchase plan on December 18 2025 that authorizes the bank to buy back up to 2 million shares of its common stock through December 31 2026. The plan represents roughly 8 % of the bank’s outstanding shares as of September 30 2025 and is intended to be executed as market conditions allow.
The buyback follows a consistent capital‑return strategy. In February 2025 the board approved a similar plan for up to 2 million shares, covering about 7.5 % of shares outstanding as of December 31 2024. Westamerica has also maintained a 51‑year dividend streak, paying a 3.7 % yield and a $0.46 per‑share dividend in Q3 2025. These actions demonstrate a long‑term commitment to returning excess cash to shareholders while preserving a conservative balance sheet.
Financially, Westamerica reported Q3 2025 net income of $28.3 million and diluted EPS of $1.12, virtually unchanged from Q3 2024’s $28.26 million and $1.12 EPS. The flat earnings result reflects disciplined cost management amid a 19.4 % decline in net income compared to the prior year, driven by higher operating expenses and a modest drop in net interest income. The stable EPS indicates that the bank’s earnings power remains intact despite the income dip, thanks to a favorable mix of interest‑earning assets and efficient operating leverage.
The share‑repurchase program will be funded from the bank’s excess operating cash. Westamerica has not issued new debt to finance the buyback, and its capital ratios remain well above regulatory requirements, giving management flexibility to deploy cash without compromising liquidity or risk buffers.
CEO David Payne said the plan “recognizes Westamerica’s financial strength, conservative risk profile and reliable earnings stream.” He added that the buyback reflects confidence that the stock is undervalued and that the bank has sufficient excess cash to return to shareholders.
The announcement was met with a positive market reaction, with analysts noting that the buyback signals confidence in the bank’s financial health and its ability to generate excess cash. The move also reinforces Westamerica’s disciplined capital‑return policy and its commitment to maintaining a strong capital position.
The buyback could modestly lift earnings per share if the repurchases are completed at favorable prices, and it provides the bank with flexibility to adjust the pace of repurchases in response to market liquidity and pricing opportunities. However, the program also suggests that Westamerica may have limited attractive internal investment opportunities, a factor that could influence future growth prospects.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.