Westamerica Bancorporation Announces Stock Repurchase Plan

Rhea-AI Summary

Westamerica Bancorporation's Board has authorized a share repurchase program for up to 1,750,000 shares, representing 6.5% of its outstanding stock, aimed at enhancing shareholder value. This buyback will occur in open market or negotiated transactions until September 1, 2021. For the second quarter of 2020, the company reported a net income of $20 million, equating to $0.72 per diluted share. Chairman David Payne emphasized that the buyback reflects the bank's consistent profitability and strong capital position.

Positive

• Approval of a share repurchase program for 1,750,000 shares to enhance shareholder value.
• Reported net income of $20 million for Q2 2020, demonstrating strong profitability.
• Repurchase plan reflects healthy capital levels and solid asset quality.

Negative

• None.

SAN RAFAEL, Calif., July 23, 2020 (GLOBE NEWSWIRE) -- Westamerica Bancorporation’s Board of Directors approved a plan to repurchase, as conditions warrant, up to 1,750,000 shares of the Company’s common stock on the open market or in privately negotiated transactions prior to September 1, 2021. The repurchase plan represents approximately 6.5 percent of the Company’s common stock outstanding as of June 30, 2020.

Chairman, President and CEO David Payne stated, “This share repurchase program recognizes Westamerica’s consistent profitability, healthy capital level, and solid asset quality.”

On July 16, 2020, Westamerica reported $20 million in net income for the three months ended June 30, 2020 or $0.72 diluted earnings per common share.

Westamerica Bancorporation, through its wholly owned subsidiary, Westamerica Bank, operates banking and trust offices throughout Northern and Central California.

Westamerica Bancorporation Web Address: www.westamerica.com

For additional information contact:
Westamerica Bancorporation
1108 Fifth Avenue, San Rafael, CA 94901
Robert A. Thorson – SVP & Chief Financial Officer
707-863-6840
investments@westamerica.com

FORWARD-LOOKING INFORMATION:

The following appears in accordance with the Private Securities Litigation Reform Act of 1995:

This press release may contain forward-looking statements about the Company, including descriptions of plans or objectives of its management for future operations, products or services, and forecasts of its revenues, earnings or other measures of economic performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may."

Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors — many of which are beyond the Company's control — could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. The Company's most recent reports filed with the Securities and Exchange Commission, including the annual report for the year ended December 31, 2019 filed on Form 10-K and quarterly report for the quarter ended March 31, 2020 filed on Form 10-Q, describe some of these factors, including certain credit, interest rate, operational, liquidity and market risks associated with the Company's business and operations. Other factors described in these reports include changes in business and economic conditions, competition, fiscal and monetary policies, disintermediation, cyber security risks, legislation including the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2011, the Sarbanes-Oxley Act of 2002 and the Gramm-Leach-Bliley Act of 1999, and mergers and acquisitions.

Forward-looking statements speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date forward looking statements are made.

FAQ

What is the share repurchase plan announced by Westamerica Bancorporation?

Westamerica Bancorporation has approved a plan to repurchase up to 1,750,000 shares of its common stock, representing about 6.5% of its outstanding shares, prior to September 1, 2021.

What was Westamerica's net income in the second quarter of 2020?

Westamerica reported a net income of $20 million for the three months ended June 30, 2020.

What is the purpose of the share buyback for Westamerica?

The share buyback aims to enhance shareholder value and reflects the company's consistent profitability and strong capital position.

How does the share repurchase affect Westamerica's stock price?

The share repurchase program is expected to positively impact Westamerica's stock price by reducing the number of outstanding shares and signaling confidence in the company's financial health.