WESTAMERICA BANCORPORATION Earnings Per Share Disclosure
Note 17: Earnings Per Common Share
The table below shows earnings per common share and diluted earnings per common share. Basic earnings per common share are computed by dividing net income by the average number of common shares outstanding during the period. Diluted earnings per common share are computed by dividing net income by the average number of common shares outstanding during the period plus the impact of common stock equivalents.
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For the Years Ended December 31, |
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2025 |
2024 |
2023 |
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(In thousands, except per share data) |
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Net income (numerator) |
$ | 116,173 | $ | 138,636 | $ | 161,768 | ||||||
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Basic earnings per common share |
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Weighted average number of common shares outstanding - basic (denominator) |
25,674 | 26,685 | 26,703 | |||||||||
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Basic earnings per common share |
$ | 4.52 | $ | 5.20 | $ | 6.06 | ||||||
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Diluted earnings per common share |
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Weighted average number of common shares outstanding - basic |
25,674 | 26,685 | 26,703 | |||||||||
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Add common stock equivalents for options |
- | 1 | 3 | |||||||||
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Weighted average number of common shares outstanding - diluted (denominator) |
25,674 | 26,686 | 26,706 | |||||||||
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Diluted earnings per common share |
$ | 4.52 | $ | 5.20 | $ | 6.06 | ||||||
For the years ended December 31, 2025, 2024 and 2023, options to purchase 1,211 thousand, 1,065 thousand, and 983 thousand shares of common stock, respectively, were outstanding but not included in the computation of diluted earnings per common share because the option exercise price exceeded the fair value of the stock such that their inclusion would have had an anti-dilutive effect.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2018 | Feb 28, 2019 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Feb 28, 2017 | |
| 2015 | Feb 26, 2016 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.