Stock traders are wondering whether Westamerica Bancorp. will press to cut the price it agreed to pay for Napa Valley Bancorp or even walk away from the deal entirely.

Westamerica, San Rafael, Calif, agreed to swap stock valued at about $52 million. But disclosure documents show that Westamerica can trim the price or pull out of the merger if Napa Valley, which is plagued by loan problems, fails to meet strict credit quality tests.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.