West Bancorporation, Inc. Announces Fourth Quarter 2025 Financial Results and Declares Quarterly Dividend
Rhea-AI Summary
West Bancorporation (Nasdaq: WTBA) reported 2025 net income of $32.6 million or $1.92 per diluted share, and Q4 2025 net income of $7.4 million or $0.43 per diluted share. The board declared a quarterly dividend of $0.25 per share payable Feb 25, 2026 (record Feb 11, 2026).
Key metrics: Q4 net interest margin (FTE) 2.47%, net interest income Q4 $24.2 million, allowance for credit losses 1.02%, tangible common equity 6.42%, and a Nov 2025 securities sale of $63.7 million realizing a $4.0 million pre-tax loss.
Positive
- Net income rose to $32.6M in 2025 from $24.1M in 2024 (+35%)
- Net interest income increased by $17.6M in 2025 versus 2024
- Tangible common equity ratio improved to 6.42% from 5.68% year-over-year
- Declared quarterly dividend of $0.25 payable Feb 25, 2026
Negative
- Pre-tax net loss of $4.0M from sale of $63.7M securities in Nov 2025
- Watch list loans increased to $52.2M from $38.7M (Dec 31 vs Sep 30, 2025)
- Estimated uninsured deposits remain sizeable at ~28.4% of total deposits
News Market Reaction
On the day this news was published, WTBA gained 4.21%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
WTBA was down 2.19% pre‑announcement while several regional peers also traded lower (e.g., BWFG -2.10%, FMAO -3.67%, USCB -5.46%), but no broad sector momentum signal was flagged.
Previous Dividends,earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Oct 23 | Q3 2025 earnings | Positive | +3.4% | Stronger Q3 2025 earnings, higher net interest income, and dividend declaration. |
| Jul 24 | Q2 2025 earnings | Positive | -2.7% | Q2 2025 profit growth, pristine credit quality, and maintained $0.25 dividend. |
| Apr 24 | Q1 2025 earnings | Positive | -4.9% | Improved NIM and efficiency ratio with higher Q1 2025 net income and dividend. |
| Jan 23 | Q4 2024 earnings | Positive | -0.2% | Stable full‑year 2024 earnings, better Q4 2024 margin, and $0.25 dividend. |
| Oct 24 | Q3 2024 earnings | Positive | +0.5% | Q3 2024 earnings growth with loan and deposit expansion and NIM improvement. |
Quarterly dividends/earnings releases have been fundamentally positive but produced mixed one-day reactions, with three negative and two positive moves despite similar themes of improving margins and credit quality.
Over the past five dividends/earnings announcements, West Bancorporation has repeatedly highlighted improving net interest margin, better efficiency ratios, and consistently strong credit quality, including nonaccrual loans at or near 0.00%. Quarterly dividends of $0.25 per share have been maintained throughout. Price reactions have varied, from a 3.43% gain on the Q3 2025 release to declines of up to 4.88%, showing that solid operational updates have not always translated into immediate share price strength.
Historical Comparison
In the last five dividends/earnings releases, WTBA’s average one-day move was 2.35%, with fundamentally similar themes of improving margins, strong credit quality, and a steady $0.25 dividend.
Same-tag history shows a steady sequence of quarterly updates highlighting rising net interest margin, improving efficiency ratios, and consistently strong asset quality alongside an unchanged quarterly dividend.
Market Pulse Summary
This announcement highlights continued earnings improvement, with 2025 net income reaching $32.6 million and Q4 2025 net interest margin rising to 2.47%. Credit quality remained strong, with no nonaccrual loans and a tangible common equity ratio of 6.42%. The company again declared a $0.25 quarterly dividend. In assessing this update, investors may watch future trends in deposit mix, watch list loans, and efficiency ratio performance relative to prior quarters.
Key Terms
net interest margin financial
efficiency ratio financial
allowance for credit losses financial
nonaccrual loans financial
brokered deposits financial
tangible common equity ratio financial
accumulated other comprehensive loss financial
form 10-k regulatory
AI-generated analysis. Not financial advice.
WEST DES MOINES, Iowa, Jan. 29, 2026 (GLOBE NEWSWIRE) -- West Bancorporation, Inc. (Nasdaq: WTBA; the “Company”), parent company of West Bank, today reported 2025 net income of
David Nelson, President and Chief Executive Officer of the Company, commented, “We have had continuous improvement in earnings and key performance metrics throughout 2025 and finished the year very strong. Through proactive and strategic balance sheet management, we see opportunities for further improvements in 2026. West Bank remains focused on relationship building and outstanding service and support. Our customer base continues to grow in all of our markets.”
David Nelson added, “We had no loans on nonaccrual status and no loans past due greater than 30 days at December 31, 2025. Our pristine credit quality is the result of our disciplined underwriting standards and steadfast approach to risk, which is consistently executed regardless of the economic or interest rate environment.”
Fourth Quarter 2025 Compared to Third Quarter 2025 Overview
- Loans decreased
$7.2 million , or 0.2 percent, in the fourth quarter of 2025. - No credit loss expense on loans was recorded in either the fourth or third quarter of 2025.
- The allowance for credit losses to total loans was 1.02 percent at December 31, 2025, compared to 1.01 percent at September 30, 2025. There were no nonaccrual loans at December 31, 2025 or September 30, 2025. Watch list loans increased from
$38.7 million as of September 30, 2025 to$52.2 million as of December 31, 2025. This increase was primarily due to one commercial real estate loan which we believe, as of December 31, 2025, was adequately collateralized. - Deposits increased
$162.0 million , or 4.9 percent, in the fourth quarter of 2025. Brokered deposits totaled$154.6 million at December 31, 2025, compared to$204.8 million at September 30, 2025, a decrease of$50.2 million . Excluding brokered deposits, deposits increased$212.2 million , or 6.8 percent, during the fourth quarter of 2025. As of December 31, 2025, estimated uninsured deposits, which exclude deposits in a reciprocal deposit network, brokered deposits and public funds protected by state programs, accounted for approximately 28.4 percent of total deposits. - Net interest margin, on a fully tax-equivalent basis (a non-GAAP measure), was 2.47 percent for the fourth quarter of 2025, compared to 2.36 percent for the third quarter of 2025. Net interest income for the fourth quarter of 2025 was
$24.2 million , compared to$22.5 million for the third quarter of 2025. These improvements primarily resulted from growth in and changes in the mix of interest earning-assets and reductions to deposit interest rates in response to reductions in the federal funds rate, partially offset by a reduction in rates on variable-rate loans and growth in deposits. - The efficiency ratio (a non-GAAP measure) was 50.21 percent for the fourth quarter of 2025, compared to 54.06 percent for the third quarter of 2025. The improvement in the efficiency ratio was primarily due to the increase in net interest income.
- In November 2025, the Company sold
$63.7 million of securities available for sale and realized a pre-tax net loss of$4.0 million . The securities sold had a weighted average yield of 2.90 percent. We believe this transaction improves the flexibility of our balance sheet. Proceeds may be used for strategic improvement in our long-term earnings profile through redeployment into higher-earning assets or repayment of higher-costing borrowings. - The tangible common equity ratio was 6.42 percent as of December 31, 2025, compared to 6.40 percent as of September 30, 2025.
Fourth Quarter 2025 Compared to Fourth Quarter 2024 Overview
- Loans decreased
$3.2 million at December 31, 2025, or 0.1 percent, compared to December 31, 2024. - Deposits increased
$110.9 million , or 3.3 percent, at December 31, 2025, compared to December 31, 2024. Included in deposits were brokered deposits totaling$154.6 million at December 31, 2025, compared to$266.4 million at December 31, 2024. Excluding brokered deposits, deposits increased$222.7 million , or 7.2 percent, as of December 31, 2025, compared to December 31, 2024. - Net interest margin, on a fully tax-equivalent basis (a non-GAAP measure), was 2.47 percent for the fourth quarter of 2025, compared to 1.98 percent for the fourth quarter of 2024. Net interest income for the fourth quarter of 2025 was
$24.2 million , compared to$19.4 million for the fourth quarter of 2024. The increase in net interest margin and net interest income was primarily due to the decrease in interest expense on deposits and borrowed funds. The cost of deposits decreased by 64 basis points in the fourth quarter of 2025 compared to the fourth quarter of 2024. Also contributing to the improvement was a decrease in average balances in borrowed funds of$39.6 million in the fourth quarter of 2025 compared to the fourth quarter of 2024. - The efficiency ratio (a non-GAAP measure) was 50.21 percent for the fourth quarter of 2025, compared to 60.79 percent for the fourth quarter of 2024. The improvement in the efficiency ratio in the fourth quarter of 2025 compared to the fourth quarter of 2024 was primarily due to the increase in net interest income.
- The tangible common equity ratio was 6.42 percent as of December 31, 2025, compared to 5.68 percent as of December 31, 2024. The increase in the tangible common equity ratio was due to growth in retained earnings and a decrease in accumulated other comprehensive loss.
Year Ended 2025 Compared to Year Ended 2024 Overview
- The Company recorded no credit loss expense in 2025, compared to a credit loss expense of
$1.0 million in 2024. The credit loss expense in 2024 was primarily due to an adjustment to qualitative factors within the commercial real estate segment and changes in forecasted loss rates, which was driven by an increase in the forecasted unemployment rate. - Net interest margin, on a fully tax-equivalent basis (a non-GAAP measure) was 2.35 percent for the year ended December 31, 2025, compared to 1.91 percent for the year ended December 31, 2024. Net interest income increased
$17.6 million in 2025 compared to 2024. The increase in net interest income was primarily due to the increase in interest income on short-term assets consisting of deposits with banks and securities purchased under agreements to resell and decrease in interest expense on deposits and borrowed funds, partially offset by a decrease in interest income on securities. The increase in interest income on interest-earning assets was driven by growth in and changes in the mix of interest-earning assets. The cost of deposits and cost of borrowed funds decreased by 55 and 21 basis points, respectively, in 2025 compared to 2024, contributing to the reduction in interest expense. Also contributing to the reduction in interest expense was the change in mix of interest-bearing liabilities.
The Company plans to file its report on Form 10-K with the Securities and Exchange Commission on or before February 26, 2026. Please refer to that document for a more in-depth discussion of the Company’s financial results. The Form 10-K will be available on the Investor Relations section of West Bank’s website at www.westbankstrong.com.
The Company will discuss its results in a conference call scheduled for 2:00 p.m. Central Time on Thursday, January 29, 2026. The telephone number for the conference call is 800-715-9871. The conference ID for the conference call is 7846129. A recording of the call will be available until February 12, 2026, by dialing 800-770-2030. The conference ID for the replay call is 7846129 followed by the # key.
About West Bancorporation, Inc. (Nasdaq: WTBA)
West Bancorporation, Inc. is headquartered in West Des Moines, Iowa. Serving customers since 1893, West Bank, a wholly-owned subsidiary of West Bancorporation, Inc., is a community bank that focuses on lending, deposit services, and trust services for small- to medium-sized businesses and consumers. West Bank has six offices in the Des Moines, Iowa metropolitan area, one office in Coralville, Iowa, and four offices in Minnesota in the cities of Rochester, Owatonna, Mankato and St. Cloud.
Certain statements in this report, other than purely historical information, including estimates, projections, statements relating to the Company’s business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may appear throughout this report. These forward-looking statements are generally identified by the words “believes,” “expects,” “intends,” “anticipates,” “projects,” “future,” “confident,” “may,” “should,” “will,” “strategy,” “plan,” “opportunity,” “will be,” “will likely result,” “will continue” or similar references, or references to estimates, predictions or future events. Such forward-looking statements are based upon certain underlying assumptions, risks and uncertainties. Because of the possibility that the underlying assumptions are incorrect or do not materialize as expected in the future, actual results could differ materially from these forward-looking statements. Risks and uncertainties that may affect future results include: interest rate risk, including the effects of changes in interest rates; fluctuations in the values of the securities held in our investment portfolio, including as a result of changes in interest rates; competitive pressures, including from non-bank competitors such as credit unions, “fintech” companies and digital asset service providers; technological changes implemented by us and other parties, including third-party vendors, which may be more difficult to implement or more expensive than anticipated or which may have unforeseen consequences to us and our customers, including the development and implementation of tools incorporating artificial intelligence; pricing pressures on loans and deposits; our ability to successfully manage liquidity risk; changes in credit and other risks posed by the Company’s loan portfolio, including declines in commercial or residential real estate values or changes in the allowance for credit losses dictated by new market conditions, accounting standards or regulatory requirements; the concentration of large deposits from certain clients, including those who have balances above current FDIC insurance limits; the threat or imposition of domestic or foreign tariffs or other governmental policies impacting the global supply chain and the value of products produced by our commercial borrowers; changes in local, national and international economic conditions, including the level and impact of inflation, and future monetary policies of the Federal Reserve or executive orders in response thereto; the impact of bank failures or adverse developments at other banks and related negative publicity about the banking industry in general on investor and depositor sentiment regarding the stability and liquidity of banks; changes in legal and regulatory requirements, limitations and costs; changes in customers’ acceptance of the Company’s products and services; the occurrence of fraudulent activity, breaches or failures of our or our third-party partners’ information security controls or cyber-security related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools; unexpected outcomes of existing or new litigation involving the Company; the monetary, trade, foreign and other regulatory policies of the U.S. government; military conflicts, acts of war or terrorism, or threats thereof, including the Israeli-Palestinian conflict, recent military activity in Venezuela and the Russian invasion of Ukraine, widespread disease or pandemics, or other adverse external events; risks related to climate change and the negative impact it may have on our customers and their businesses; changes to U.S. tax laws, regulations and guidance; potential changes in federal policy and at regulatory agencies under the Trump administration; new or revised accounting policies and practices, as may be adopted by state and federal regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission or the Public Company Accounting Oversight Board; talent and labor shortages and employee turnover; and any other risks described in the “Risk Factors” sections of reports filed by the Company with the Securities and Exchange Commission. The Company undertakes no obligation to revise or update such forward-looking statements to reflect current or future events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
| WEST BANCORPORATION, INC. AND SUBSIDIARY | ||||||||||||||||||||||||||||
| Financial Information (unaudited) | ||||||||||||||||||||||||||||
| As of and for the Quarter Ended | For the Year Ended | |||||||||||||||||||||||||||
| KEY PERFORMANCE RATIOS AND OTHER METRICS | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | |||||||||||||||||||||
| Return on average assets(1) | 0.72 | % | 0.92 | % | 0.80 | % | 0.81 | % | 0.68 | % | 0.81 | % | 0.61 | % | ||||||||||||||
| Return on average equity(2) | 11.33 | 15.25 | 13.65 | 13.84 | 12.24 | 13.47 | 10.71 | |||||||||||||||||||||
| Net interest margin(3)(13) | 2.47 | 2.36 | 2.27 | 2.28 | 1.98 | 2.35 | 1.91 | |||||||||||||||||||||
| Yield on interest-earning assets(4)(13) | 5.02 | 5.13 | 5.07 | 5.04 | 5.02 | 5.06 | 5.08 | |||||||||||||||||||||
| Cost of interest-bearing liabilities | 3.02 | 3.26 | 3.28 | 3.25 | 3.57 | 3.20 | 3.73 | |||||||||||||||||||||
| Efficiency ratio(5)(13) | 50.21 | 54.06 | 56.45 | 56.37 | 60.79 | 54.11 | 63.25 | |||||||||||||||||||||
| Nonperforming assets to total assets(6) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||||||||||
| ACL ratio(7) | 1.02 | 1.01 | 1.03 | 1.01 | 1.01 | |||||||||||||||||||||||
| Loans/total assets | 72.47 | 75.50 | 73.12 | 75.66 | 74.84 | |||||||||||||||||||||||
| Loans/total deposits | 86.54 | 91.00 | 87.45 | 90.73 | 89.49 | |||||||||||||||||||||||
| Tangible common equity ratio(8) | 6.42 | 6.40 | 5.94 | 5.97 | 5.68 | |||||||||||||||||||||||
| COMMON SHARE DATA | ||||||||||||||||||||||||||||
| Earnings per common share (basic) | $ | 0.44 | $ | 0.55 | $ | 0.47 | $ | 0.47 | $ | 0.42 | $ | 1.92 | $ | 1.43 | ||||||||||||||
| Earnings per common share (diluted) | 0.43 | 0.55 | 0.47 | 0.46 | 0.42 | 1.92 | 1.42 | |||||||||||||||||||||
| Dividends per common share | 0.25 | 0.25 | 0.25 | 0.25 | 0.25 | 1.00 | 1.00 | |||||||||||||||||||||
| Book value per common share(9) | 15.70 | 15.06 | 14.22 | 14.06 | 13.54 | |||||||||||||||||||||||
| Closing stock price | 22.19 | 20.32 | 19.63 | 19.94 | 21.65 | |||||||||||||||||||||||
| Market price/book value(10) | 141.34 | % | 134.93 | % | 138.05 | % | 141.82 | % | 159.90 | % | ||||||||||||||||||
| Price earnings ratio(11) | 12.71 | 9.31 | 10.41 | 10.46 | 12.96 | |||||||||||||||||||||||
| Annualized dividend yield(12) | 4.51 | % | 4.92 | % | 5.09 | % | 5.02 | % | 4.62 | % | ||||||||||||||||||
| REGULATORY CAPITAL RATIOS | ||||||||||||||||||||||||||||
| Consolidated: | ||||||||||||||||||||||||||||
| Total risk-based capital ratio | 12.77 | % | 12.54 | % | 12.53 | % | 12.18 | % | 12.11 | % | ||||||||||||||||||
| Tier 1 risk-based capital ratio | 10.14 | 9.93 | 9.89 | 9.59 | 9.51 | |||||||||||||||||||||||
| Tier 1 leverage capital ratio | 8.44 | 8.51 | 8.33 | 8.36 | 7.93 | |||||||||||||||||||||||
| Common equity tier 1 ratio | 9.56 | 9.37 | 9.32 | 9.02 | 8.95 | |||||||||||||||||||||||
| West Bank: | ||||||||||||||||||||||||||||
| Total risk-based capital ratio | 13.35 | % | 13.17 | % | 13.21 | % | 12.90 | % | 12.86 | % | ||||||||||||||||||
| Tier 1 risk-based capital ratio | 12.44 | 12.26 | 12.29 | 11.99 | 11.96 | |||||||||||||||||||||||
| Tier 1 leverage capital ratio | 10.35 | 10.50 | 10.36 | 10.46 | 9.97 | |||||||||||||||||||||||
| Common equity tier 1 ratio | 12.44 | 12.26 | 12.29 | 11.99 | 11.96 | |||||||||||||||||||||||
(1) Annualized net income divided by average assets.
(2) Annualized net income divided by average stockholders’ equity.
(3) Annualized tax-equivalent net interest income divided by average interest-earning assets.
(4) Annualized tax-equivalent interest income on interest-earning assets divided by average interest-earning assets.
(5) Noninterest expense (excluding other real estate owned expense and write-down of premises) divided by noninterest income (excluding net securities gains/losses and gains/losses on disposition of premises and equipment) plus tax-equivalent net interest income.
(6) Total nonperforming assets divided by total assets.
(7) Allowance for credit losses on loans divided by total loans.
(8) Common equity less intangible assets (none held) divided by tangible assets.
(9) Includes accumulated other comprehensive loss.
(10) Closing stock price divided by book value per common share.
(11) Closing stock price divided by annualized earnings per common share (basic).
(12) Annualized dividend divided by period end closing stock price.
(13) A non-GAAP measure.
| WEST BANCORPORATION, INC. AND SUBSIDIARY | ||||||||||||||||||||
| Financial Information (unaudited) | ||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||
| As of | ||||||||||||||||||||
| CONDENSED BALANCE SHEETS | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | |||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and due from banks | $ | 25,171 | $ | 26,875 | $ | 35,796 | $ | 39,253 | $ | 28,750 | ||||||||||
| Interest-earning deposits with banks | 324,502 | 109,265 | 212,450 | 171,357 | 214,728 | |||||||||||||||
| Securities purchased under agreements to resell | 121,413 | 96,792 | 96,955 | — | — | |||||||||||||||
| Securities available for sale, at fair value | 468,447 | 537,856 | 536,709 | 546,619 | 544,565 | |||||||||||||||
| Federal Home Loan Bank stock, at cost | 15,167 | 15,190 | 15,311 | 15,216 | 15,129 | |||||||||||||||
| Loans | 3,001,690 | 3,008,888 | 2,966,357 | 3,016,471 | 3,004,860 | |||||||||||||||
| Allowance for credit losses | (30,525 | ) | (30,515 | ) | (30,539 | ) | (30,526 | ) | (30,432 | ) | ||||||||||
| Loans, net | 2,971,165 | 2,978,373 | 2,935,818 | 2,985,945 | 2,974,428 | |||||||||||||||
| Premises and equipment, net | 108,380 | 109,212 | 109,806 | 110,270 | 109,985 | |||||||||||||||
| Bank-owned life insurance | 46,192 | 45,875 | 45,567 | 45,272 | 44,990 | |||||||||||||||
| Other assets | 61,807 | 66,042 | 68,257 | 72,737 | 82,416 | |||||||||||||||
| Total assets | $ | 4,142,244 | $ | 3,985,480 | $ | 4,056,669 | $ | 3,986,669 | $ | 4,014,991 | ||||||||||
| Liabilities and Stockholders’ Equity | ||||||||||||||||||||
| Deposits | $ | 3,468,470 | $ | 3,306,517 | $ | 3,391,993 | $ | 3,324,518 | $ | 3,357,596 | ||||||||||
| Borrowings | 376,406 | 389,076 | 390,260 | 391,445 | 392,629 | |||||||||||||||
| Other liabilities | 31,383 | 34,754 | 33,486 | 32,833 | 36,891 | |||||||||||||||
| Stockholders’ equity | 265,985 | 255,133 | 240,930 | 237,873 | 227,875 | |||||||||||||||
| Total liabilities and stockholders’ equity | $ | 4,142,244 | $ | 3,985,480 | $ | 4,056,669 | $ | 3,986,669 | $ | 4,014,991 | ||||||||||
| For the Quarter Ended | ||||||||||||||||||||
| AVERAGE BALANCES | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | |||||||||||||||
| Assets | $ | 4,104,279 | $ | 4,004,769 | $ | 4,016,490 | $ | 3,944,789 | $ | 4,135,049 | ||||||||||
| Loans | 2,982,754 | 2,959,962 | 2,989,638 | 3,016,119 | 3,007,558 | |||||||||||||||
| Deposits | 3,418,539 | 3,333,800 | 3,353,982 | 3,284,394 | 3,434,234 | |||||||||||||||
| Stockholders’ equity | 259,932 | 242,245 | 234,399 | 229,874 | 230,720 | |||||||||||||||
| WEST BANCORPORATION, INC. AND SUBSIDIARY | ||||||||||||||||||||
| Financial Information (unaudited) | ||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||
| As of | ||||||||||||||||||||
| LOANS | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | |||||||||||||||
| Commercial | $ | 505,059 | $ | 511,316 | $ | 500,854 | $ | 531,267 | $ | 514,232 | ||||||||||
| Real estate: | ||||||||||||||||||||
| Construction, land and land development | 426,833 | 448,660 | 459,037 | 451,230 | 508,147 | |||||||||||||||
| 1-4 family residential first mortgages | 93,122 | 87,784 | 86,173 | 86,292 | 87,858 | |||||||||||||||
| Home equity | 26,088 | 27,083 | 24,285 | 21,961 | 19,294 | |||||||||||||||
| Commercial | 1,929,766 | 1,912,235 | 1,875,857 | 1,909,330 | 1,861,195 | |||||||||||||||
| Consumer and other | 23,374 | 24,697 | 22,900 | 19,323 | 17,287 | |||||||||||||||
| 3,004,242 | 3,011,775 | 2,969,106 | 3,019,403 | 3,008,013 | ||||||||||||||||
| Net unamortized fees and costs | (2,552 | ) | (2,887 | ) | (2,749 | ) | (2,932 | ) | (3,153 | ) | ||||||||||
| Total loans | $ | 3,001,690 | $ | 3,008,888 | $ | 2,966,357 | $ | 3,016,471 | $ | 3,004,860 | ||||||||||
| Less: allowance for credit losses | (30,525 | ) | (30,515 | ) | (30,539 | ) | (30,526 | ) | (30,432 | ) | ||||||||||
| Net loans | $ | 2,971,165 | $ | 2,978,373 | $ | 2,935,818 | $ | 2,985,945 | $ | 2,974,428 | ||||||||||
| CREDIT QUALITY | ||||||||||||||||||||
| Pass | $ | 2,952,015 | $ | 2,973,103 | $ | 2,958,318 | $ | 3,011,231 | $ | 2,999,531 | ||||||||||
| Watch | 52,227 | 38,672 | 10,788 | 7,991 | 8,349 | |||||||||||||||
| Substandard | — | — | — | 181 | 133 | |||||||||||||||
| Doubtful | — | — | — | — | — | |||||||||||||||
| Total loans | $ | 3,004,242 | $ | 3,011,775 | $ | 2,969,106 | $ | 3,019,403 | $ | 3,008,013 | ||||||||||
| DEPOSITS | ||||||||||||||||||||
| Noninterest-bearing demand | $ | 540,358 | $ | 512,869 | $ | 521,990 | $ | 519,771 | $ | 541,053 | ||||||||||
| Interest-bearing demand | 577,814 | 448,731 | 461,207 | 517,409 | 543,855 | |||||||||||||||
| Savings and money market - non-brokered | 1,739,790 | 1,677,543 | 1,749,049 | 1,490,189 | 1,517,510 | |||||||||||||||
| Money market - brokered | 99,718 | 121,849 | 98,877 | 143,423 | 126,381 | |||||||||||||||
| Total nonmaturity deposits | 2,957,680 | 2,760,992 | 2,831,123 | 2,670,792 | 2,728,799 | |||||||||||||||
| Time - non-brokered | 455,944 | 462,542 | 451,463 | 461,655 | 488,760 | |||||||||||||||
| Time - brokered | 54,846 | 82,983 | 109,407 | 192,071 | 140,037 | |||||||||||||||
| Total time deposits | 510,790 | 545,525 | 560,870 | 653,726 | 628,797 | |||||||||||||||
| Total deposits | $ | 3,468,470 | $ | 3,306,517 | $ | 3,391,993 | $ | 3,324,518 | $ | 3,357,596 | ||||||||||
| BORROWINGS | ||||||||||||||||||||
| Subordinated notes, net | $ | 80,156 | $ | 80,090 | $ | 80,024 | $ | 79,959 | $ | 79,893 | ||||||||||
| Federal Home Loan Bank advances | 270,000 | 270,000 | 270,000 | 270,000 | 270,000 | |||||||||||||||
| Long-term debt | 26,250 | 38,986 | 40,236 | 41,486 | 42,736 | |||||||||||||||
| Total borrowings | $ | 376,406 | $ | 389,076 | $ | 390,260 | $ | 391,445 | $ | 392,629 | ||||||||||
| STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
| Preferred stock | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Common stock | 3,000 | 3,000 | 3,000 | 3,000 | 3,000 | |||||||||||||||
| Additional paid-in capital | 37,231 | 36,473 | 35,773 | 35,072 | 35,619 | |||||||||||||||
| Retained earnings | 294,259 | 291,069 | 285,990 | 282,247 | 278,613 | |||||||||||||||
| Accumulated other comprehensive loss | (68,505 | ) | (75,409 | ) | (83,833 | ) | (82,446 | ) | (89,357 | ) | ||||||||||
| Total stockholders’ equity | $ | 265,985 | $ | 255,133 | $ | 240,930 | $ | 237,873 | $ | 227,875 | ||||||||||
| WEST BANCORPORATION, INC. AND SUBSIDIARY | |||||||||||||||||
| Financial Information (unaudited) | |||||||||||||||||
| (in thousands) | |||||||||||||||||
| For the Quarter Ended | |||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | ||||||||||||
| Interest income: | |||||||||||||||||
| Loans, including fees | $ | 41,992 | $ | 42,198 | $ | 41,666 | $ | 40,988 | $ | 41,822 | |||||||
| Securities: | |||||||||||||||||
| Taxable | 2,355 | 2,643 | 2,685 | 2,788 | 2,959 | ||||||||||||
| Tax-exempt | 677 | 739 | 742 | 743 | 795 | ||||||||||||
| Deposits with banks | 2,808 | 2,087 | 2,847 | 1,617 | 3,740 | ||||||||||||
| Securities purchased under agreements to resell | 1,370 | 1,258 | 22 | — | — | ||||||||||||
| Total interest income | 49,202 | 48,925 | 47,962 | 46,136 | 49,316 | ||||||||||||
| Interest expense: | |||||||||||||||||
| Deposits | 21,112 | 22,539 | 22,676 | 21,423 | 25,706 | ||||||||||||
| Subordinated notes | 1,109 | 1,107 | 1,104 | 1,105 | 1,106 | ||||||||||||
| Federal Home Loan Bank advances | 2,316 | 2,292 | 2,259 | 2,235 | 2,522 | ||||||||||||
| Long-term debt | 459 | 486 | 504 | 518 | 560 | ||||||||||||
| Total interest expense | 24,996 | 26,424 | 26,543 | 25,281 | 29,894 | ||||||||||||
| Net interest income | 24,206 | 22,501 | 21,419 | 20,855 | 19,422 | ||||||||||||
| Credit loss expense | — | — | — | — | 1,000 | ||||||||||||
| Net interest income after credit loss expense | 24,206 | 22,501 | 21,419 | 20,855 | 18,422 | ||||||||||||
| Noninterest income: | |||||||||||||||||
| Service charges on deposit accounts | 493 | 491 | 486 | 471 | 462 | ||||||||||||
| Debit card interchange income | 493 | 477 | 478 | 446 | 471 | ||||||||||||
| Trust services | 964 | 894 | 801 | 777 | 1,051 | ||||||||||||
| Increase in cash value of bank-owned life insurance | 317 | 308 | 295 | 282 | 287 | ||||||||||||
| Realized securities losses, net | (3,959 | ) | — | — | — | (1,172 | ) | ||||||||||
| Other income | 800 | 333 | 350 | 267 | 331 | ||||||||||||
| Total noninterest income | (892 | ) | 2,503 | 2,410 | 2,243 | 1,430 | |||||||||||
| Noninterest expense: | |||||||||||||||||
| Salaries and employee benefits | 7,579 | 7,457 | 7,343 | 7,004 | 7,107 | ||||||||||||
| Occupancy and equipment | 2,083 | 2,090 | 2,034 | 1,963 | 2,095 | ||||||||||||
| Data processing | 673 | 663 | 643 | 617 | 752 | ||||||||||||
| Technology and software | 789 | 794 | 791 | 786 | 743 | ||||||||||||
| FDIC insurance | 475 | 637 | 670 | 587 | 699 | ||||||||||||
| Professional fees | 297 | 303 | 303 | 308 | 301 | ||||||||||||
| Other expenses | 1,833 | 1,606 | 1,701 | 1,798 | 1,702 | ||||||||||||
| Total noninterest expense | 13,729 | 13,550 | 13,485 | 13,063 | 13,399 | ||||||||||||
| Income before income taxes | 9,585 | 11,454 | 10,344 | 10,035 | 6,453 | ||||||||||||
| Income taxes | 2,160 | 2,140 | 2,365 | 2,193 | (644 | ) | |||||||||||
| Net income | $ | 7,425 | $ | 9,314 | $ | 7,979 | $ | 7,842 | $ | 7,097 | |||||||
| Basic earnings per common share | $ | 0.44 | $ | 0.55 | $ | 0.47 | $ | 0.47 | $ | 0.42 | |||||||
| Diluted earnings per common share | $ | 0.43 | $ | 0.55 | $ | 0.47 | $ | 0.46 | $ | 0.42 | |||||||
| WEST BANCORPORATION, INC. AND SUBSIDIARY | ||||||||
| Financial Information (unaudited) | ||||||||
| (in thousands) | ||||||||
| For the Year Ended | ||||||||
| CONSOLIDATED STATEMENTS OF INCOME | December 31, 2025 | December 31, 2024 | ||||||
| Interest income: | ||||||||
| Loans, including fees | $ | 166,844 | $ | 166,222 | ||||
| Securities: | ||||||||
| Taxable | 10,471 | 13,030 | ||||||
| Tax-exempt | 2,901 | 3,219 | ||||||
| Deposits with banks | 9,359 | 7,595 | ||||||
| Securities purchased under agreements to resell | 2,650 | — | ||||||
| Total interest income | 192,225 | 190,066 | ||||||
| Interest expense: | ||||||||
| Deposits | 87,750 | 97,284 | ||||||
| Federal funds purchased and other short-term borrowings | — | 4,248 | ||||||
| Subordinated notes | 4,425 | 4,431 | ||||||
| Federal Home Loan Bank advances | 9,102 | 10,313 | ||||||
| Long-term debt | 1,967 | 2,428 | ||||||
| Total interest expense | 103,244 | 118,704 | ||||||
| Net interest income | 88,981 | 71,362 | ||||||
| Credit loss expense | — | 1,000 | ||||||
| Net interest income after credit loss expense | 88,981 | 70,362 | ||||||
| Noninterest income: | ||||||||
| Service charges on deposit accounts | 1,941 | 1,843 | ||||||
| Debit card interchange income | 1,894 | 1,919 | ||||||
| Trust services | 3,436 | 3,449 | ||||||
| Increase in cash value of bank-owned life insurance | 1,202 | 1,126 | ||||||
| Realized securities losses, net | (3,959 | ) | (1,172 | ) | ||||
| Other income | 1,750 | 1,269 | ||||||
| Total noninterest income | 6,264 | 8,434 | ||||||
| Noninterest expense: | ||||||||
| Salaries and employee benefits | 29,383 | 27,588 | ||||||
| Occupancy and equipment | 8,170 | 7,320 | ||||||
| Data processing | 2,596 | 2,991 | ||||||
| Technology and software | 3,160 | 2,896 | ||||||
| FDIC insurance | 2,369 | 2,560 | ||||||
| Professional fees | 1,211 | 1,041 | ||||||
| Other expenses | 6,938 | 6,957 | ||||||
| Total noninterest expense | 53,827 | 51,353 | ||||||
| Income before income taxes | 41,418 | 27,443 | ||||||
| Income taxes | 8,858 | 3,393 | ||||||
| Net income | $ | 32,560 | $ | 24,050 | ||||
| Basic earnings per common share | $ | 1.92 | $ | 1.43 | ||||
| Diluted earnings per common share | $ | 1.92 | $ | 1.42 | ||||
NON-GAAP FINANCIAL MEASURES
This report contains references to financial measures that are not defined in GAAP. Such non-GAAP financial measures include the Company’s presentation of net interest income and net interest margin on a fully taxable equivalent (FTE) basis and the presentation of the efficiency ratio on an adjusted and FTE basis, excluding certain income and expenses. Management believes these non-GAAP financial measures provide useful information to both management and investors to analyze and evaluate the Company’s financial performance. These measures are considered standard measures of comparison within the banking industry. Additionally, management believes providing measures on a FTE basis enhances the comparability of income arising from taxable and nontaxable sources. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in these measures and that different companies might calculate these measures differently. These non-GAAP disclosures should not be considered an alternative to the Company’s GAAP results. The following table reconciles the non-GAAP financial measures of net interest income and net interest margin on a fully taxable equivalent basis and efficiency ratio on an adjusted and FTE basis.
| (in thousands) | For the Quarter Ended | For the Year Ended | ||||||||||||||||||||||||||
| December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||
| Reconciliation of net interest income and net interest margin on a FTE basis to GAAP: | ||||||||||||||||||||||||||||
| Net interest income (GAAP) | $ | 24,206 | $ | 22,501 | $ | 21,419 | $ | 20,855 | $ | 19,422 | $ | 88,981 | $ | 71,362 | ||||||||||||||
| Tax-equivalent adjustment(1) | 70 | 61 | 59 | 66 | 16 | 256 | 182 | |||||||||||||||||||||
| Net interest income on a FTE basis (non-GAAP) | 24,276 | 22,562 | 21,478 | 20,921 | 19,438 | 89,237 | 71,544 | |||||||||||||||||||||
| Average interest-earning assets | 3,893,827 | 3,790,154 | 3,799,081 | 3,717,441 | 3,910,978 | 3,800,582 | 3,747,528 | |||||||||||||||||||||
| Net interest margin on a FTE basis (non-GAAP) | 2.47 | % | 2.36 | % | 2.27 | % | 2.28 | % | 1.98 | % | 2.35 | % | 1.91 | % | ||||||||||||||
| Reconciliation of efficiency ratio on an adjusted and FTE basis to GAAP: | ||||||||||||||||||||||||||||
| Net interest income on a FTE basis (non-GAAP) | $ | 24,276 | $ | 22,562 | $ | 21,478 | $ | 20,921 | $ | 19,438 | $ | 89,237 | $ | 71,544 | ||||||||||||||
| Noninterest income | (892 | ) | 2,503 | 2,410 | 2,243 | 1,430 | 6,264 | 8,434 | ||||||||||||||||||||
| Adjustment for realized securities losses, net | 3,959 | — | — | — | 1,172 | 3,959 | 1,172 | |||||||||||||||||||||
| Adjustment for losses on disposal of premises and equipment, net | — | — | — | 8 | — | 8 | 47 | |||||||||||||||||||||
| Adjusted income | 27,343 | 25,065 | 23,888 | 23,172 | 22,040 | 99,468 | 81,197 | |||||||||||||||||||||
| Noninterest expense | 13,729 | 13,550 | 13,485 | 13,063 | 13,399 | 53,827 | 51,353 | |||||||||||||||||||||
| Efficiency ratio on an adjusted and FTE basis (non-GAAP)(2) | 50.21 | % | 54.06 | % | 56.45 | % | 56.37 | % | 60.79 | % | 54.11 | % | 63.25 | % | ||||||||||||||
(1) Computed on a tax-equivalent basis using a federal income tax rate of 21 percent, adjusted to reflect the effect of the nondeductible interest expense associated with owning tax-exempt securities and loans. Management believes the presentation of this non-GAAP measure provides supplemental useful information for proper understanding of the financial results, as it enhances the comparability of income arising from taxable and nontaxable sources.
(2) The efficiency ratio expresses noninterest expense as a percent of fully taxable equivalent net interest income and noninterest income, excluding specific noninterest income and expenses. Management believes the presentation of this non-GAAP measure provides supplemental useful information for proper understanding of the Company's financial performance. It is a standard measure of comparison within the banking industry. A lower ratio is more desirable.
For more information contact:
Jane Funk, Executive Vice President, Treasurer and Chief Financial Officer (515) 222-5766
FAQ
What were West Bancorporation (WTBA) full-year 2025 earnings per share and net income?
How much was West Bancorporation's (WTBA) dividend declared in January 2026 and when is it payable?
What drove West Bank's (WTBA) Q4 2025 net interest margin improvement to 2.47%?
Did West Bancorporation (WTBA) record credit losses in 2025?
What was the impact of the November 2025 securities sale on West Bancorporation (WTBA)?
