West Bancorporation Q3 earnings rise 24.8% to $11.6M
WTBA's $0.26 quarterly dividend is payable November 25, 2026, to stockholders of record November 11.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
West Bancorporation, Inc. (WTBA) reported third-quarter 2026 net income of $11.6 million, or $0.67 per diluted common share, versus $11.1 million in second-quarter 2026 and $9.3 million in third-quarter 2025; quarterly net income was up 24.8% year over year. Net interest income was $26.4 million, compared with $22.5 million a year earlier, and fully tax-equivalent net interest margin was 2.77%, versus 2.36%.
The board declared a regular quarterly dividend of $0.26 per common share, payable November 25, 2026, to stockholders of record November 11, 2026. Loan balances increased $45.1 million from June 30, 2026, while deposits excluding brokered deposits decreased $65.8 million during the quarter. Estimated uninsured deposits were approximately 28.5% of total deposits, excluding reciprocal-network deposits, brokered deposits, and public funds protected by state programs. No loan credit-loss expense was recorded in the third or second quarter, and there were no nonaccrual loans at September 30, 2026.
For the first nine months of 2026, net income increased 32% from the same period in 2025. Annualized return on average equity was 16.18%, compared with 14.27%. The adjusted, fully tax-equivalent efficiency ratio was 47.81% for the third quarter, versus 54.06% a year earlier.
2 points · 0 major0 major · 0 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointQuarterly net income reached $11.6 million, up 24.8% year over year.
- Minor pointNine-month net income increased 32% year over year.
Negative
- None.
Filing Explained
At September 30, consolidated total risk-based capital was 13.43%, and common equity tier 1 was 10.21%.
With this 8-K, the company furnishes its third-quarter earnings presentation, which reports
The listed amount includes cash, securities and borrowing availability, so it is not cash alone: components include
Other consolidated capital ratios reported as of
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Third-quarter net income: $11.6 million
Diluted earnings per common share: $0.67 per share
Net interest income: $26.4 million
+3 more
6 metrics
Third-quarter net income
$11.6 million
Third quarter 2026; $9.3 million in third quarter 2025
Diluted earnings per common share
$0.67 per share
Third quarter 2026; $0.55 in third quarter 2025
Net interest income
$26.4 million
Third quarter 2026; $22.5 million in third quarter 2025
Fully tax-equivalent net interest margin
2.77%
Third quarter 2026; 2.36% in third quarter 2025
Quarterly dividend
$0.26 per common share
Payable November 25, 2026, to stockholders of record November 11, 2026
Nine-month net income
$33.273 million
Nine months ended September 30, 2026; $25.135 million in the comparable 2025 period
Key Terms
fully tax-equivalent basis, efficiency ratio, allowance for credit losses, reciprocal deposit network, +1 more
5 terms
fully tax-equivalent basis financial
"Net interest margin, on a fully tax-equivalent basis"
A fully tax-equivalent basis converts income or yield that is exempt from federal (and sometimes state or local) taxes into the pre-tax yield that a taxable investment would need to match it. It adjusts the reported after-tax return using an investor’s marginal tax rate so different securities can be compared on the same pretax scale—like converting prices into the same currency so you can compare costs directly.
efficiency ratio financial
"The efficiency ratio (a non-GAAP measure)"
A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.
allowance for credit losses financial
"The allowance for credit losses to total loans"
Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.
reciprocal deposit network financial
"deposits in a reciprocal deposit network"
A reciprocal deposit network is a service banks use to split a large customer deposit across many partner banks so each portion stays within the limit covered by deposit insurance, effectively giving a single customer full insured coverage while funds sit at multiple institutions. For investors, this matters because it affects a bank’s funding stability and cost: access to insured deposits can make a bank’s funding more reliable and less risky, which in turn influences its liquidity profile and creditworthiness.
substandard loans financial
"Substandard loans decreased to $13.8 million"
Loans labeled as substandard have clear weaknesses—such as inconsistent payments, declining borrower income, or insufficient collateral—that make full repayment doubtful without corrective action. Think of them like a car with serious mechanical issues: it still runs but is likely to break down unless fixed. For investors, a rising share of substandard loans signals higher credit losses ahead, stronger reserve needs and pressure on a lender’s profits and capital cushions.
Earnings Snapshot
Net income: $11.6 million
Third quarter 2026
Net income
$11.6 million
Up 24.8% from third quarter 2025
Diluted earnings per common share
$0.67
Compared with $0.55 in third quarter 2025
Net interest income
$26.4 million
Compared with $22.5 million in third quarter 2025
Fully tax-equivalent net interest margin (non-GAAP)
2.77%
Compared with 2.36% in third quarter 2025
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much did WTBA earn in the third quarter of 2026?
WTBA reported third-quarter 2026 net income of $11.6 million, or $0.67 per diluted common share. Net income was $11.1 million in second-quarter 2026 and $9.3 million in third-quarter 2025; the year-over-year increase was 24.8%.
When will WTBA pay its quarterly dividend?
WTBA declared a regular quarterly dividend of $0.26 per common share, payable November 25, 2026, to stockholders of record November 11, 2026.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): October 29, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 515- 222-2300
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered or to be registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02 Results of Operations and Financial Condition.
On October 29, 2026, West Bancorporation, Inc. (the "Company") issued a press release announcing its third quarter earnings results for the period ended September 30, 2026, and the declaration of a quarterly dividend. A copy of the press release is attached hereto as Exhibit 99.1.
The information furnished in this item of this Form 8-K, and the related exhibit, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, except as may be expressly set forth by specific reference in such filing.
Item 7.01 Regulation FD Disclosure.
The Company hereby furnishes the Earnings Presentation attached hereto as Exhibit 99.2.
The information furnished in this item of this Form 8-K, and the related exhibit, shall not be deemed "filed" for purposes of Section 18 of the Exchange Act, or incorporated by reference in any filing under the Securities Act or the Exchange Act, except as may be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits:
| Exhibit Number | Description | |||||||
| 99.1 | Press Release of West Bancorporation, Inc. dated October 29, 2026 | |||||||
| 99.2 | Third Quarter 2026 Earnings Presentation | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| West Bancorporation, Inc. | ||||||||
| October 29, 2026 | By: | /s/ Jane M. Funk | ||||||
| Name: Jane M. Funk | ||||||||
| Title: Executive Vice President, Treasurer and Chief Financial Officer | ||||||||
Exhibit 99.1
Press Release
October 29, 2026
FOR IMMEDIATE RELEASE
For more information contact:
Jane Funk, Executive Vice President, Treasurer and Chief Financial Officer (515) 222-5766
WEST BANCORPORATION, INC. ANNOUNCES THIRD QUARTER 2026 FINANCIAL RESULTS AND DECLARES QUARTERLY DIVIDEND
West Des Moines, IA - West Bancorporation, Inc. (Nasdaq: WTBA; the “Company”), parent company of West Bank, today reported third quarter 2026 net income of $11.6 million, or $0.67 per diluted common share, compared to second quarter 2026 net income of $11.1 million, or $0.64 per diluted common share, and third quarter 2025 net income of $9.3 million, or $0.55 per diluted common share. On October 28, 2026, the Company’s Board of Directors declared a regular quarterly dividend of $0.26 per common share. The dividend is payable on November 25, 2026, to stockholders of record on November 11, 2026.
David Nelson, President and Chief Executive Officer of the Company, commented, “Our net income for the first nine months of 2026 has increased 32 percent compared to the first nine months of 2025. Our annualized return on average equity has improved to 16.18 percent for the first nine months of 2026, compared to 14.27 percent for the first nine months of 2025 and our annualized return on average assets has grown to 1.16 percent in the third quarter of 2026. We are producing stronger profitability through margin expansion and expense discipline, while maintaining a strict underwriting culture and strong asset quality. Our balance sheet management strategies have resulted in a reduction in wholesale funding and steady growth in net interest income.”
Mr. Nelson added, “Our balance sheet remains exceptionally strong, supported by solid capital and liquidity levels. Credit quality remains pristine with no loans on nonaccrual status at September 30, 2026. Additionally, this marks our ninth consecutive quarter-end with no loans greater than 30 days past due.”
Third Quarter 2026 Compared to Second Quarter 2026 Overview
•Quarterly net income was $11.6 million, an increase of $0.5 million, or 5.01 percent, compared to prior quarter.
•Quarterly return on average equity increased to 16.41 percent, compared to 16.21 percent in prior quarter.
•Loan balances increased $45.1 million, or 1.5 percent as of September 30, 2026, compared to June 30, 2026.
•No credit loss expense on loans was recorded in either the third or second quarter of 2026.
•The allowance for credit losses to total loans was 1.02 percent as of September 30, 2026, compared to 1.03 percent as of June 30, 2026. There were no nonaccrual loans at September 30, 2026 or June 30, 2026. Substandard loans decreased to $13.8 million as of September 30, 2026, from $14.4 million as of June 30, 2026. The substandard loan balances consisted of commercial and commercial real estate loans to two borrowers. In both instances, the Company believes the loans are sufficiently collateralized. Watch list loans decreased from $7.1 million as of June 30, 2026 to $6.7 million as of September 30, 2026. The decreases in substandard and and watch list loans was primarily due to principal payments.
•Deposits, excluding brokered deposits, decreased $65.8 million, or 2.0 percent, in the third quarter of 2026. Brokered deposits were reduced by $8.5 million. As of September 30, 2026, estimated uninsured deposits, which exclude deposits in a reciprocal deposit network, brokered deposits and public funds protected by state programs, accounted for approximately 28.5 percent of total deposits.
•Net interest margin, on a fully tax-equivalent basis (a non-GAAP measure), was 2.77 percent for the third quarter of 2026, compared to 2.69 percent for the second quarter of 2026. Net interest income for the third quarter of 2026 was $26.4 million, compared to $25.5 million for the second quarter of 2026. Loan yields increased 8 basis points, to 5.73 percent, in the third quarter of 2026 compared to the second quarter of 2026, while the average balance of loans declined $44.1 million. The cost of interest-bearing deposits increased 3 basis points, to 2.76 percent. The average balance of interest-bearing deposits decreased $36.4 million in the third quarter of 2026 compared to the prior quarter. The comparison of asset yields and cost of interest-bearing deposits is impacted by the 25 basis point increase in the federal funds target rate in September 2026. The average balance of FHLB advances declined $32.1 million in the third quarter of 2026 compared to the prior quarter as matured advances were not renewed.
•The efficiency ratio (a non-GAAP measure) was 47.81 percent for the third quarter of 2026, compared to 48.78 percent for the second quarter of 2026, primarily due to the increase in tax-equivalent net interest income.
•The tangible common equity ratio was 6.98 percent as of September 30, 2026, compared to 6.97 percent as of June 30, 2026.
Third Quarter 2026 Compared to Third Quarter 2025 Overview
•Quarterly net income was $11.6 million, an increase of $2.3 million, or 24.8 percent, compared to prior year.
•Quarterly return on average equity increased to 16.41 percent, compared to 15.25 percent in prior year.
•Loan balances were down slightly by $13.7 million at September 30, 2026, or 0.5 percent, compared to September 30, 2025. Changes in the loan portfolio included decreases of $159.0 million in construction, land and land development loans and $52.9 million in commercial loans and an increase of $156.3 million in commercial real estate loans. The change in loan mix included reclassifications resulting from completed construction projects moving to permanent financing and commercial loan restructurings that added real estate as collateral.
•Deposits, excluding brokered deposits, increased $67.0 million, or 2.2 percent, as of September 30, 2026, compared to September 30, 2025. Brokered deposits were reduced by $102.9 million.
•Net interest margin, on a fully tax-equivalent basis (a non-GAAP measure), was 2.77 percent for the third quarter of 2026, compared to 2.36 percent for the third quarter of 2025. Net interest income for the third quarter of 2026 was $26.4 million, compared to $22.5 million for the third quarter of 2025. Loan yields increased by 7 basis points in the 3rd quarter of 2026, compared to the third quarter of 2025, while the average balance of loans declined $19.6 million. The cost of interest-bearing deposits decreased by 41 basis points in the third quarter of 2026 compared to the third quarter of 2025. The average balance of interest-bearing deposits declined $41.3 million in the third quarter of 2026 compared to the third quarter of 2025. The comparison of asset yields and cost of interest-bearing deposits is impacted by the 75 basis point decrease in the federal funds target rate in the third and fourth quarters of 2025 and subsequent 25 basis point increase in the federal funds target rate in September 2026.
•The efficiency ratio (a non-GAAP measure) was 47.81 percent for the third quarter of 2026, compared to 54.06 percent for the third quarter of 2025. The improvement in the efficiency ratio in the third quarter of 2026 compared to the third quarter of 2025 was primarily due to the increase in tax-equivalent net interest income.
•The tangible common equity ratio was 6.98 percent as of September 30, 2026, compared to 6.40 percent as of September 30, 2025. The increase in the tangible common equity ratio was due to growth in retained earnings.
The Company filed its report on Form 10-Q with the Securities and Exchange Commission today. Please refer to that document for a more in-depth discussion of the Company’s financial results. The Form 10-Q is 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, October 29, 2026. The telephone number for the conference call is 833-461-5787. The meeting ID for the conference call is 761930850. A recording of the call will be available until November 12, 2026, by dialing 833-309-1852. The meeting ID for the replay call is 761930850.
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 Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements may appear throughout this report. These forward-looking statements are generally identified by the words “believes,” “expects,” “intends,” “anticipates,” “projects,” “forecasts,” “plans,” “targets,” “future,” “confident,” “potentially,” “probably,” “outlook,” “may,” “should,” “would,” “could,” “will,” “strategy,” “plan,” “opportunity,” “will be,” “will likely result,” “will continue” or similar references, as well as the negative of such words, or references to estimates, predictions or future events. Forward-looking statements are not historical facts but instead represent management’s current expectations and forecasts regarding future events, many of which are inherently uncertain and outside of our control. Such forward-looking statements are based upon certain underlying assumptions, known and unknown, risks and uncertainties. Because of the possibility that the underlying assumptions are incorrect or do not materialize as expected in the future, actual results may differ, possibly materially, from these forward-looking statements. Risks and uncertainties that may affect future results include, but are not limited to: interest rate risk, including the effects of the recent increase in the benchmark federal funds rate by the Federal Reserve; fluctuations in the values of the securities held in our investment portfolio, including as a result of rising 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; effects on the U.S. economy resulting from actions taken by the federal government, including executive orders and immigration enforcement; changes in local, national and international economic conditions, including the level and impact of inflation, and future monetary policies of the Federal Reserve in response thereto, and possible recession; 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 and other regulatory policies of the U.S. government; the effects of acts of war or terrorism, including the wars in Iran and Ukraine, ongoing conflicts in the Middle East, and other international military conflicts that can increase levels of political and economic unpredictability, contribute to rising energy and commodity prices, affect global supply chains, increase the volatility of financial markets, and other matters beyond our control; widespread disease, pandemics or epidemics, or other adverse external events; risks related to climate change and the negative impact it may have on our customers and their business; changes to U.S. tax laws, regulations and guidance; potential changes in federal policy and at regulatory agencies; talent and labor shortages; emerging issues related to the development and use of artificial intelligence that could give rise to legal or regulatory action, damage our reputation or otherwise materially harm our business or customers; the availability of future equity and debt issuances and other capital raising opportunities on favorable terms; and any other risks described in the “Risk Factors” sections of reports filed by the Company with the Securities and Exchange Commission (the “SEC”). The Company cautions readers not to place undue reliance on any forward-looking statements. Moreover, any of the forward-looking statements that the Company makes in this report or the documents the Company files with or furnishes to the SEC are based only on information then actually known to the Company and upon management’s beliefs and assumptions at the time they are made, which may turn out to be wrong because of inaccurate assumptions they might make, because of the factors described above or because of other factors that the Company cannot foresee. Forward-looking statements speak only as of the date they are made, and the Company does not undertake and specifically disclaims any 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 Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||
| KEY PERFORMANCE RATIOS AND OTHER METRICS | September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | September 30, 2026 | September 30, 2025 | |||||||||||||||||||||||||||||||||||||
Return on average assets(1) | 1.16 | % | 1.10 | % | 1.06 | % | 0.72 | % | 0.92 | % | 1.11 | % | 0.84 | % | ||||||||||||||||||||||||||||||
Return on average equity(2) | 16.41 | 16.21 | 15.91 | 11.33 | 15.25 | 16.18 | 14.27 | |||||||||||||||||||||||||||||||||||||
Net interest margin(3)(13) | 2.77 | 2.69 | 2.59 | 2.47 | 2.36 | 2.68 | 2.30 | |||||||||||||||||||||||||||||||||||||
Yield on interest-earning assets(4)(13) | 5.16 | 5.10 | 5.04 | 5.02 | 5.13 | 5.10 | 5.08 | |||||||||||||||||||||||||||||||||||||
| Cost of interest-bearing liabilities | 2.90 | 2.88 | 2.90 | 3.02 | 3.26 | 2.89 | 3.27 | |||||||||||||||||||||||||||||||||||||
Efficiency ratio(5)(13) | 47.81 | 48.78 | 49.85 | 50.21 | 54.06 | 48.79 | 55.60 | |||||||||||||||||||||||||||||||||||||
Nonperforming assets to total assets(6) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||||||||||||||||||||||||||
ACL ratio(7) | 1.02 | 1.03 | 1.02 | 1.02 | 1.01 | |||||||||||||||||||||||||||||||||||||||
| Loans/total assets | 76.96 | 73.21 | 74.59 | 72.47 | 75.50 | |||||||||||||||||||||||||||||||||||||||
| Loans/total deposits | 91.58 | 88.20 | 89.71 | 86.54 | 91.00 | |||||||||||||||||||||||||||||||||||||||
Tangible common equity ratio(8) | 6.98 | 6.97 | 6.75 | 6.42 | 6.40 | |||||||||||||||||||||||||||||||||||||||
| COMMON SHARE DATA | ||||||||||||||||||||||||||||||||||||||||||||
| Earnings per common share (basic) | $ | 0.68 | $ | 0.65 | $ | 0.62 | $ | 0.44 | $ | 0.55 | $ | 1.96 | $ | 1.49 | ||||||||||||||||||||||||||||||
| Earnings per common share (diluted) | 0.67 | 0.64 | 0.61 | 0.43 | 0.55 | 1.93 | 1.48 | |||||||||||||||||||||||||||||||||||||
| Dividends per common share | 0.26 | 0.25 | 0.25 | 0.25 | 0.25 | 0.76 | 0.75 | |||||||||||||||||||||||||||||||||||||
Book value per common share(9) | 15.94 | 16.49 | 15.90 | 15.70 | 15.06 | |||||||||||||||||||||||||||||||||||||||
| Closing stock price | 28.51 | 26.53 | 23.79 | 22.19 | 20.32 | |||||||||||||||||||||||||||||||||||||||
Market price/book value(10) | 178.86 | % | 160.89 | % | 149.62 | % | 141.34 | % | 134.93 | % | ||||||||||||||||||||||||||||||||||
Price earnings ratio(11) | 10.57 | 10.18 | 9.40 | 12.71 | 9.31 | |||||||||||||||||||||||||||||||||||||||
Annualized dividend yield(12) | 3.65 | % | 3.77 | % | 4.20 | % | 4.51 | % | 4.92 | % | ||||||||||||||||||||||||||||||||||
| REGULATORY CAPITAL RATIOS | ||||||||||||||||||||||||||||||||||||||||||||
| Consolidated: | ||||||||||||||||||||||||||||||||||||||||||||
| Total risk-based capital ratio | 13.43 | % | 13.46 | % | 12.99 | % | 12.77 | % | 12.54 | % | ||||||||||||||||||||||||||||||||||
| Tier 1 risk-based capital ratio | 10.78 | 10.77 | 10.34 | 10.14 | 9.93 | |||||||||||||||||||||||||||||||||||||||
| Tier 1 leverage capital ratio | 9.18 | 8.91 | 8.74 | 8.44 | 8.51 | |||||||||||||||||||||||||||||||||||||||
| Common equity tier 1 ratio | 10.21 | 10.18 | 9.77 | 9.56 | 9.37 | |||||||||||||||||||||||||||||||||||||||
| West Bank: | ||||||||||||||||||||||||||||||||||||||||||||
| Total risk-based capital ratio | 13.87 | % | 13.97 | % | 13.53 | % | 13.35 | % | 13.17 | % | ||||||||||||||||||||||||||||||||||
| Tier 1 risk-based capital ratio | 12.95 | 13.03 | 12.61 | 12.44 | 12.26 | |||||||||||||||||||||||||||||||||||||||
| Tier 1 leverage capital ratio | 11.03 | 10.79 | 10.66 | 10.35 | 10.50 | |||||||||||||||||||||||||||||||||||||||
| Common equity tier 1 ratio | 12.95 | 13.03 | 12.61 | 12.44 | 12.26 | |||||||||||||||||||||||||||||||||||||||
(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 | September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | |||||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||||||
| Cash and due from banks | $ | 23,155 | $ | 30,986 | $ | 40,018 | $ | 25,171 | $ | 26,875 | ||||||||||||||||||||||
| Interest-earning deposits with banks | 88,822 | 260,633 | 180,218 | 324,502 | 109,265 | |||||||||||||||||||||||||||
| Securities purchased under agreements to resell | 160,444 | 142,080 | 141,742 | 121,413 | 96,792 | |||||||||||||||||||||||||||
| Securities available for sale, at fair value | 415,648 | 446,575 | 456,410 | 468,447 | 537,856 | |||||||||||||||||||||||||||
| Federal Home Loan Bank stock, at cost | 12,426 | 15,168 | 15,180 | 15,167 | 15,190 | |||||||||||||||||||||||||||
| Loans | 2,995,211 | 2,950,114 | 2,991,638 | 3,001,690 | 3,008,888 | |||||||||||||||||||||||||||
| Allowance for credit losses | (30,536) | (30,530) | (30,523) | (30,525) | (30,515) | |||||||||||||||||||||||||||
| Loans, net | 2,964,675 | 2,919,584 | 2,961,115 | 2,971,165 | 2,978,373 | |||||||||||||||||||||||||||
| Premises and equipment, net | 105,510 | 106,626 | 107,619 | 108,380 | 109,212 | |||||||||||||||||||||||||||
| Bank-owned life insurance | 47,066 | 46,751 | 46,500 | 46,192 | 45,875 | |||||||||||||||||||||||||||
| Other assets | 73,930 | 61,261 | 62,171 | 61,807 | 66,042 | |||||||||||||||||||||||||||
| Total assets | $ | 3,891,676 | $ | 4,029,664 | $ | 4,010,973 | $ | 4,142,244 | $ | 3,985,480 | ||||||||||||||||||||||
| Liabilities and Stockholders’ Equity | ||||||||||||||||||||||||||||||||
| Deposits | $ | 3,270,646 | $ | 3,344,900 | $ | 3,334,972 | $ | 3,468,470 | $ | 3,306,517 | ||||||||||||||||||||||
| Borrowings | 312,852 | 374,037 | 375,221 | 376,406 | 389,076 | |||||||||||||||||||||||||||
| Other liabilities | 36,488 | 29,685 | 30,037 | 31,383 | 34,754 | |||||||||||||||||||||||||||
| Stockholders’ equity | 271,690 | 281,042 | 270,743 | 265,985 | 255,133 | |||||||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 3,891,676 | $ | 4,029,664 | $ | 4,010,973 | $ | 4,142,244 | $ | 3,985,480 | ||||||||||||||||||||||
| For the Quarter Ended | ||||||||||||||||||||||||||||||||
| AVERAGE BALANCES | September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | |||||||||||||||||||||||||||
| Assets | $ | 3,993,933 | $ | 4,029,324 | $ | 4,027,218 | $ | 4,104,279 | $ | 4,004,769 | ||||||||||||||||||||||
| Loans | 2,940,392 | 2,984,527 | 2,971,497 | 2,982,754 | 2,959,962 | |||||||||||||||||||||||||||
| Deposits | 3,335,242 | 3,347,452 | 3,348,255 | 3,418,539 | 3,333,800 | |||||||||||||||||||||||||||
| Stockholders’ equity | 281,208 | 273,967 | 269,453 | 259,932 | 242,245 | |||||||||||||||||||||||||||
| WEST BANCORPORATION, INC. AND SUBSIDIARY | ||||||||||||||||||||||||||||||||
| Financial Information (unaudited) | ||||||||||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||||||||
| As of | ||||||||||||||||||||||||||||||||
| LOANS | September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | |||||||||||||||||||||||||||
| Commercial | $ | 458,416 | $ | 463,248 | $ | 471,423 | $ | 505,059 | $ | 511,316 | ||||||||||||||||||||||
| Real estate: | ||||||||||||||||||||||||||||||||
| Construction, land and land development | 289,616 | 333,753 | 376,059 | 426,833 | 448,660 | |||||||||||||||||||||||||||
| 1-4 family residential first mortgages | 133,880 | 130,951 | 139,118 | 93,122 | 87,784 | |||||||||||||||||||||||||||
| Home equity | 26,331 | 25,999 | 27,084 | 26,088 | 27,083 | |||||||||||||||||||||||||||
| Commercial | 2,068,526 | 1,977,477 | 1,958,189 | 1,929,766 | 1,912,235 | |||||||||||||||||||||||||||
| Consumer and other | 20,984 | 21,347 | 22,257 | 23,374 | 24,697 | |||||||||||||||||||||||||||
| 2,997,753 | 2,952,775 | 2,994,130 | 3,004,242 | 3,011,775 | ||||||||||||||||||||||||||||
| Net unamortized fees and costs | (2,542) | (2,661) | (2,492) | (2,552) | (2,887) | |||||||||||||||||||||||||||
| Total loans | $ | 2,995,211 | $ | 2,950,114 | $ | 2,991,638 | $ | 3,001,690 | $ | 3,008,888 | ||||||||||||||||||||||
| Less: allowance for credit losses | (30,536) | (30,530) | (30,523) | (30,525) | (30,515) | |||||||||||||||||||||||||||
| Net loans | $ | 2,964,675 | $ | 2,919,584 | $ | 2,961,115 | $ | 2,971,165 | $ | 2,978,373 | ||||||||||||||||||||||
| CREDIT QUALITY | ||||||||||||||||||||||||||||||||
| Pass | $ | 2,977,301 | $ | 2,931,300 | $ | 2,952,824 | $ | 2,952,015 | $ | 2,973,103 | ||||||||||||||||||||||
| Watch | 6,697 | 7,112 | 41,306 | 52,227 | 38,672 | |||||||||||||||||||||||||||
| Substandard | 13,755 | 14,363 | — | — | — | |||||||||||||||||||||||||||
| Doubtful | — | — | — | — | — | |||||||||||||||||||||||||||
| Total loans | $ | 2,997,753 | $ | 2,952,775 | $ | 2,994,130 | $ | 3,004,242 | $ | 3,011,775 | ||||||||||||||||||||||
| DEPOSITS | ||||||||||||||||||||||||||||||||
| Noninterest-bearing demand | $ | 551,615 | $ | 553,660 | $ | 511,013 | $ | 540,358 | $ | 512,869 | ||||||||||||||||||||||
| Interest-bearing demand | 436,697 | 506,574 | 489,990 | 577,814 | 448,731 | |||||||||||||||||||||||||||
| Savings and money market - non-brokered | 1,677,699 | 1,705,057 | 1,731,835 | 1,739,790 | 1,677,543 | |||||||||||||||||||||||||||
| Money market - brokered | 101,979 | 100,450 | 86,304 | 99,718 | 121,849 | |||||||||||||||||||||||||||
| Total nonmaturity deposits | 2,767,990 | 2,865,741 | 2,819,142 | 2,957,680 | 2,760,992 | |||||||||||||||||||||||||||
| Time - non-brokered | 502,656 | 469,159 | 485,658 | 455,944 | 462,542 | |||||||||||||||||||||||||||
| Time - brokered | — | 10,000 | 30,172 | 54,846 | 82,983 | |||||||||||||||||||||||||||
| Total time deposits | 502,656 | 479,159 | 515,830 | 510,790 | 545,525 | |||||||||||||||||||||||||||
| Total deposits | $ | 3,270,646 | $ | 3,344,900 | $ | 3,334,972 | $ | 3,468,470 | $ | 3,306,517 | ||||||||||||||||||||||
| BORROWINGS | ||||||||||||||||||||||||||||||||
| Subordinated notes, net | $ | 80,352 | $ | 80,287 | $ | 80,221 | $ | 80,156 | $ | 80,090 | ||||||||||||||||||||||
| Federal Home Loan Bank advances | 210,000 | 270,000 | 270,000 | 270,000 | 270,000 | |||||||||||||||||||||||||||
| Long-term debt | 22,500 | 23,750 | 25,000 | 26,250 | 38,986 | |||||||||||||||||||||||||||
| Total borrowings | $ | 312,852 | $ | 374,037 | $ | 375,221 | $ | 376,406 | $ | 389,076 | ||||||||||||||||||||||
| STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||
| Preferred stock | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||
| Common stock | 3,000 | 3,000 | 3,000 | 3,000 | 3,000 | |||||||||||||||||||||||||||
| Additional paid-in capital | 38,068 | 37,312 | 36,553 | 37,231 | 36,473 | |||||||||||||||||||||||||||
| Retained earnings | 314,605 | 307,408 | 300,596 | 294,259 | 291,069 | |||||||||||||||||||||||||||
| Accumulated other comprehensive loss | (83,983) | (66,678) | (69,406) | (68,505) | (75,409) | |||||||||||||||||||||||||||
| Total stockholders’ equity | $ | 271,690 | $ | 281,042 | $ | 270,743 | $ | 265,985 | $ | 255,133 | ||||||||||||||||||||||
| WEST BANCORPORATION, INC. AND SUBSIDIARY | ||||||||||||||||||||||||||||||||
| Financial Information (unaudited) | ||||||||||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||||||||
| For the Quarter Ended | ||||||||||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | |||||||||||||||||||||||||||
| Interest income: | ||||||||||||||||||||||||||||||||
| Loans, including fees | $ | 42,463 | $ | 42,031 | $ | 40,946 | $ | 41,992 | $ | 42,198 | ||||||||||||||||||||||
| Securities: | ||||||||||||||||||||||||||||||||
| Taxable | 2,105 | 2,097 | 2,143 | 2,355 | 2,643 | |||||||||||||||||||||||||||
| Tax-exempt | 634 | 636 | 638 | 677 | 739 | |||||||||||||||||||||||||||
| Deposits with banks | 2,224 | 2,130 | 2,047 | 2,808 | 2,087 | |||||||||||||||||||||||||||
| Securities purchased under agreements to resell | 1,769 | 1,580 | 1,617 | 1,370 | 1,258 | |||||||||||||||||||||||||||
| Total interest income | 49,195 | 48,474 | 47,391 | 49,202 | 48,925 | |||||||||||||||||||||||||||
| Interest expense: | ||||||||||||||||||||||||||||||||
| Deposits | 19,376 | 19,184 | 19,261 | 21,112 | 22,539 | |||||||||||||||||||||||||||
| Subordinated notes | 1,113 | 1,110 | 1,104 | 1,109 | 1,107 | |||||||||||||||||||||||||||
| Federal Home Loan Bank advances | 1,965 | 2,274 | 2,244 | 2,316 | 2,292 | |||||||||||||||||||||||||||
| Long-term debt | 371 | 385 | 397 | 459 | 486 | |||||||||||||||||||||||||||
| Total interest expense | 22,825 | 22,953 | 23,006 | 24,996 | 26,424 | |||||||||||||||||||||||||||
| Net interest income | 26,370 | 25,521 | 24,385 | 24,206 | 22,501 | |||||||||||||||||||||||||||
| Credit loss expense | — | — | — | — | — | |||||||||||||||||||||||||||
| Net interest income after credit loss expense | 26,370 | 25,521 | 24,385 | 24,206 | 22,501 | |||||||||||||||||||||||||||
| Noninterest income: | ||||||||||||||||||||||||||||||||
| Service charges on deposit accounts | 482 | 476 | 508 | 493 | 491 | |||||||||||||||||||||||||||
| Debit card interchange income | 504 | 514 | 472 | 493 | 477 | |||||||||||||||||||||||||||
| Trust services | 1,190 | 1,048 | 1,010 | 964 | 894 | |||||||||||||||||||||||||||
| Increase in cash value of bank-owned life insurance | 316 | 313 | 308 | 317 | 308 | |||||||||||||||||||||||||||
| Realized securities losses, net | — | — | — | (3,959) | — | |||||||||||||||||||||||||||
| Other income | 253 | 245 | 256 | 800 | 333 | |||||||||||||||||||||||||||
| Total noninterest income (loss) | 2,745 | 2,596 | 2,554 | (892) | 2,503 | |||||||||||||||||||||||||||
| Noninterest expense: | ||||||||||||||||||||||||||||||||
| Salaries and employee benefits | 7,956 | 7,987 | 7,632 | 7,579 | 7,457 | |||||||||||||||||||||||||||
| Occupancy and equipment | 2,025 | 2,006 | 2,006 | 2,083 | 2,090 | |||||||||||||||||||||||||||
| Technology and software | 790 | 822 | 774 | 789 | 794 | |||||||||||||||||||||||||||
| Data processing | 578 | 545 | 596 | 673 | 663 | |||||||||||||||||||||||||||
| FDIC insurance | 455 | 444 | 473 | 475 | 637 | |||||||||||||||||||||||||||
| Professional fees | 260 | 298 | 278 | 297 | 303 | |||||||||||||||||||||||||||
| Other expenses | 1,897 | 1,665 | 1,706 | 1,833 | 1,606 | |||||||||||||||||||||||||||
| Total noninterest expense | 13,961 | 13,767 | 13,465 | 13,729 | 13,550 | |||||||||||||||||||||||||||
| Income before income taxes | 15,154 | 14,350 | 13,474 | 9,585 | 11,454 | |||||||||||||||||||||||||||
| Income taxes | 3,526 | 3,277 | 2,902 | 2,160 | 2,140 | |||||||||||||||||||||||||||
| Net income | $ | 11,628 | $ | 11,073 | $ | 10,572 | $ | 7,425 | $ | 9,314 | ||||||||||||||||||||||
| Basic earnings per common share | $ | 0.68 | $ | 0.65 | $ | 0.62 | $ | 0.44 | $ | 0.55 | ||||||||||||||||||||||
| Diluted earnings per common share | $ | 0.67 | $ | 0.64 | $ | 0.61 | $ | 0.43 | $ | 0.55 | ||||||||||||||||||||||
| WEST BANCORPORATION, INC. AND SUBSIDIARY | ||||||||||||||
| Financial Information (unaudited) | ||||||||||||||
| (in thousands) | ||||||||||||||
| For the Nine Months Ended | ||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | September 30, 2026 | September 30, 2025 | ||||||||||||
| Interest income: | ||||||||||||||
| Loans, including fees | $ | 125,440 | $ | 124,852 | ||||||||||
| Securities: | ||||||||||||||
| Taxable | 6,345 | 8,116 | ||||||||||||
| Tax-exempt | 1,908 | 2,224 | ||||||||||||
| Deposits with banks | 6,401 | 6,551 | ||||||||||||
| Securities purchased under agreements to resell | 4,966 | 1,280 | ||||||||||||
| Total interest income | 145,060 | 143,023 | ||||||||||||
| Interest expense: | ||||||||||||||
| Deposits | 57,821 | 66,638 | ||||||||||||
| Subordinated notes | 3,327 | 3,316 | ||||||||||||
| Federal Home Loan Bank advances | 6,483 | 6,786 | ||||||||||||
| Long-term debt | 1,153 | 1,508 | ||||||||||||
| Total interest expense | 68,784 | 78,248 | ||||||||||||
| Net interest income | 76,276 | 64,775 | ||||||||||||
| Credit loss expense | — | — | ||||||||||||
| Net interest income after credit loss expense | 76,276 | 64,775 | ||||||||||||
| Noninterest income: | ||||||||||||||
| Service charges on deposit accounts | 1,466 | 1,448 | ||||||||||||
| Debit card interchange income | 1,490 | 1,401 | ||||||||||||
| Trust services | 3,248 | 2,472 | ||||||||||||
| Increase in cash value of bank-owned life insurance | 937 | 885 | ||||||||||||
| Other income | 754 | 950 | ||||||||||||
| Total noninterest income | 7,895 | 7,156 | ||||||||||||
| Noninterest expense: | ||||||||||||||
| Salaries and employee benefits | 23,575 | 21,804 | ||||||||||||
| Occupancy and equipment | 6,037 | 6,087 | ||||||||||||
| Technology and software | 2,386 | 2,371 | ||||||||||||
| Data processing | 1,719 | 1,923 | ||||||||||||
| FDIC insurance | 1,372 | 1,894 | ||||||||||||
| Professional fees | 836 | 914 | ||||||||||||
| Other expenses | 5,268 | 5,105 | ||||||||||||
| Total noninterest expense | 41,193 | 40,098 | ||||||||||||
| Income before income taxes | 42,978 | 31,833 | ||||||||||||
| Income taxes | 9,705 | 6,698 | ||||||||||||
| Net income | $ | 33,273 | $ | 25,135 | ||||||||||
| Basic earnings per common share | $ | 1.96 | $ | 1.49 | ||||||||||
| Diluted earnings per common share | $ | 1.93 | $ | 1.48 | ||||||||||
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 Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||
| September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | September 30, 2026 | September 30, 2025 | ||||||||||||||||||||||||||||||||||||||
| Reconciliation of net interest income and net interest margin on a FTE basis to GAAP: | ||||||||||||||||||||||||||||||||||||||||||||
| Net interest income (GAAP) | $ | 26,370 | $ | 25,521 | $ | 24,385 | $ | 24,206 | $ | 22,501 | $ | 76,276 | $ | 64,775 | ||||||||||||||||||||||||||||||
Tax-equivalent adjustment (1) | 76 | 75 | 72 | 70 | 61 | 223 | 186 | |||||||||||||||||||||||||||||||||||||
| Net interest income on a FTE basis (non-GAAP) | 26,446 | 25,596 | 24,457 | 24,276 | 22,562 | 76,499 | 64,961 | |||||||||||||||||||||||||||||||||||||
| Average interest-earning assets | 3,785,334 | 3,820,041 | 3,821,463 | 3,893,827 | 3,790,154 | 3,808,813 | 3,769,158 | |||||||||||||||||||||||||||||||||||||
| Net interest margin on a FTE basis (non-GAAP) | 2.77 | % | 2.69 | % | 2.59 | % | 2.47 | % | 2.36 | % | 2.68 | % | 2.30 | % | ||||||||||||||||||||||||||||||
| Reconciliation of efficiency ratio on an adjusted and FTE basis to GAAP: | ||||||||||||||||||||||||||||||||||||||||||||
| Net interest income on a FTE basis (non-GAAP) | $ | 26,446 | $ | 25,596 | $ | 24,457 | $ | 24,276 | $ | 22,562 | $ | 76,499 | $ | 64,961 | ||||||||||||||||||||||||||||||
| Noninterest income | 2,745 | 2,596 | 2,554 | (892) | 2,503 | 7,895 | 7,156 | |||||||||||||||||||||||||||||||||||||
| Adjustment for realized securities losses, net | — | — | — | 3,959 | — | — | — | |||||||||||||||||||||||||||||||||||||
| Adjustment for losses on disposal of premises and equipment, net | 7 | 28 | 2 | — | — | 37 | 8 | |||||||||||||||||||||||||||||||||||||
| Adjusted income | 29,198 | 28,220 | 27,013 | 27,343 | 25,065 | 84,431 | 72,125 | |||||||||||||||||||||||||||||||||||||
| Noninterest expense | 13,961 | 13,767 | 13,465 | 13,729 | 13,550 | 41,193 | 40,098 | |||||||||||||||||||||||||||||||||||||
Efficiency ratio on an adjusted and FTE basis (non-GAAP) (2) | 47.81 | % | 48.78 | % | 49.85 | % | 50.21 | % | 54.06 | % | 48.79 | % | 55.60 | % | ||||||||||||||||||||||||||||||
(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.
1 NASDAQ: WTBA Q3 2026 | Earnings Highlights
2 Certain statements in this presentation, 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 Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements may appear throughout this presentation. These forward-looking statements are generally identified by the words “believes,” “expects,” “intends,” “anticipates,” “projects,” "forecasts," "plans," "targets," “future,” “confident,” "potentially," "probably," "outlook," “may,” “should,” "would," "could," “will,” “strategy,” “plan,” “opportunity,” “will be,” “will likely result,” “will continue” or similar references, as well as the negative of such words, or references to estimates, predictions or future events. Forward-looking statements are not historical facts but instead represent management's current expectations and forecasts regarding future events, many of which are inherently uncertain and outside our control. Such forward-looking statements are based upon certain underlying assumptions, known and unknown risks and uncertainties. Because of the possibility that the underlying assumptions are incorrect or do not materialize as expected in the future, actual results may differ, possibly materially, from these forward-looking statements. Risks and uncertainties that may affect future results include, but are not limited to: interest rate risk, including the effects of the recent increase in the benchmark federal funds rate by the Federal Reserve; fluctuations in the values of the securities held in our investment portfolio, including as a result of rising 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; effects on the U.S. economy resulting from actions taken by the federal government, including executive orders and immigration enforcement; changes in local, national and international economic conditions, including the level and impact of inflation, and future monetary policies of the Federal Reserve in response thereto, and possible recession; 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 and other regulatory policies of the U.S. government; the effects of acts of war or terrorism, including the wars in Iran and Ukraine, ongoing conflicts in the Middle East, and other international military conflicts that can increase levels of political and economic unpredictability, contribute to rising energy and commodity prices, affect global supply chains, increase the volatility of financial markets, and other matters beyond our control; widespread disease, pandemics or epidemics, or other adverse external events; risks related to climate change and the negative impact it may have on our customers and their business; changes to U.S. tax laws, regulations and guidance; potential changes in federal policy and at regulatory agencies; talent and labor shortages; emerging issues related to the development and use of artificial intelligence that could give rise to legal or regulatory action, damage our reputation or otherwise materially harm our business or customers; the availability of future equity and debt issuances and other capital raising opportunities on favorable terms; and any other risks described in the “Risk Factors” sections of reports filed by the Company with the Securities and Exchange Commission (the "SEC"). The Company cautions readers not to place undue reliance on any forward-looking statements. Moreover, any of the forward- looking statements that the Company makes in this report or the documents the Company files with or furnishes to the SEC are based only on information then actually known to the Company and upon management's beliefs and assumptions at the time they are made, which may turn out to be wrong because of inaccurate assumptions they might make, because of the factors described above or because of other factors that the Company cannot foresee. Forward-looking statements speak only as of the date they are made, and the Company does not undertake and specifically disclaims any 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. Except as otherwise indicated, this presentation speaks as of the date hereof. The delivery of this presentation shall not, under any circumstances, create any implication that there has been no change in the affairs of West Bancorporation, Inc. after the date hereof. Certain of the information contained herein may be derived from information provided by industry sources. We believe that such information is accurate and that the sources from which it has been obtained are reliable. We cannot guarantee the accuracy of such information, however, and we have not independently verified such information. This presentation 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. This presentation includes reconciliations of non-GAAP financial measures to comparable GAAP financial measures. Disclaimers
3 3Q 2026 Financial Highlights * Presented on a fully taxable equivalent basis; see Appendix for “Non-GAAP Financial Measures.” NASDAQ: WTBA September 30, 2026 Closing Price $28.51 3Q 2026 Price Range $25.67 to $30.33 Cash Dividend Per Share Declared On October 28, 2026 $0.26 (payable on November 25, 2026) Annualized Dividend Yield 3.65% 3Q 2026 Total Assets $3.9 billion Gross Loans $3.0 billion Total Deposits $3.3 billion Net Income $11.6 million Annualized ROAA 1.16% Annualized ROAE 16.41% Net Interest Margin* 2.77% Efficiency Ratio* 47.81% NPAs/Assets 0.00% Diluted EPS $0.67
4 • West Bancorporation, Inc. (the “Company”) is a publicly traded, financial holding company (NASDAQ: WTBA) established in 1984. Its sole subsidiary is West Bank, founded in 1893. • West Bank is a full service commercial bank headquartered in West Des Moines, Iowa and has 11 branches and commercial banking offices serving the greater Des Moines, Iowa area; eastern Iowa, which includes Iowa City and Coralville, Iowa; and southern Minnesota, which includes Rochester, Owatonna, Mankato, and St. Cloud, Minnesota. • The Company is a long-standing and reliable, dividend paying community bank. Our mission is to build strong relationships, build strong communities, and build upon our strong reputation to ensure our clients receive exceptional care, our communities receive outstanding support, and the loyalty of our employees and stockholders is rewarded. Company Profile and Mission • One of the Company's key competitive advantages is its client-centric approach to delivering strategic financial solutions to businesses and business owners, driven by the establishment of deep customer relationships and extensive experience in its markets. • First and foremost a community bank, West Bank has built a strong reputation for being responsive to local needs. West Bank employees place a high priority on community involvement, lending their time and talents to a long list of civic and community projects. Mission
5 Experienced Executive Leadership David D. Nelson Director/Chief Executive Officer/President Joined West Bank in 2010 Years in Banking: 43 Prior to joining the Company Mr. Nelson was the President of Southeast Minnesota Business Banking and President of Wells Fargo Bank Rochester in Rochester, Minnesota. Harlee N. Olafson Chief Risk Officer/Executive Vice President Joined West Bank in 2010 Years in Banking: 48 Prior to joining the Company Mr. Olafson was the President of Southwest Minnesota Business Banking and President of Wells Fargo Bank Mankato in Mankato, Minnesota. Bradley P. Peters Executive Vice President West Bank Minnesota Group President Joined West Bank in 2019 Years in Banking: 41 Prior to joining the Company Mr. Peters was the Executive Vice President of a $16 billion regional bank in Minnesota where he was responsible for new market expansion. Jane M. Funk Chief Financial Officer Executive Vice President/Treasurer Joined West Bank in 2014 Years in Banking & Public Accounting: 36 Ms. Funk has extensive experience in the community banking industry and spent 18 years of her career at a large public accounting firm. Brad L. Winterbottom Executive Vice President West Bank President Joined West Bank in 1992 Years in Banking: 46 Mr. Winterbottom has extensive experience in commercial lending and loan portfolio administration and knowledge of the Iowa business community. Todd A. Mather West Bank Central Iowa Market President Joined West Bank in 2019 Years in Banking: 30 Prior to joining West Bank, Mr. Mather spent 8 years at a $16 billion regional bank in Minnesota as a Senior Credit Director and Group Senior Credit Manager.
6 Conservative Organic Growth with Successful Lift-Out Strategies David Nelson joins West Bancorporation, Inc. as CEO. Entered the Rochester, Minnesota market by hiring experienced bankers who had existing strong relationships with local business owners and creating an advisory community board made up of local business owners and leaders. Successful and profitable establishment of market presence led to construction of permanent commercial banking office in 2016. Reached $2 billion in total assets. Expanded into St. Cloud, Mankato, and Owatonna, Minnesota with the same lift- out strategy used in Rochester, Minnesota. Successful and profitable establishment of market presence led to construction of permanent commercial banking offices in each of these three markets during 2022-2025. Reached $3 billion in total assets. Opened new corporate headquarters building in West Des Moines, Iowa in April 2024. The new building consolidated the organization's operations under one roof, and provides space for future growth and enhanced business development opportunities. Reached $4 billion in total assets. 2010 2013 2018 2019 2020 2024 2024
7 Company Highlights – Commitment to Excellence West Bancorporation, Inc. is a high performing company in U.S. community banking, well-versed in providing commercial banking services, including loans and lines of credit and all types of deposit services, to small- and medium-sized businesses in its Iowa and Minnesota markets. Attractive Franchise Strategy Community Service & Philanthropy • A 133 year presence in the Des Moines, Iowa metropolitan area and is West Des Moines' oldest business of any type. • Long track record of growth and stability coupled with attractive financial returns and dividend yield. • Simple and consistent business model with a conservative operating philosophy and expense management controls. • Efficient and right-sized branch network, with a total of 11 offices serving 6 markets. • Organic growth strategy with a track record of successful lift-out strategies and a branch-lite structure. • Disciplined business model highlighted by focus on risk management and consistent execution that has resulted in pristine credit quality. • Superior talent with business expertise in building relationships and providing a differentiated level of service. • In 2025, our employees volunteered over 7,000 hours of community service. • In 2025, the West Bancorporation Foundation and West Bank provided over $550,000 in total philanthropic contributions to more than 182 organizations. • West Bancorporation, Inc.'s corporate headquarters, which opened in April 2024, was constructed on a redevelopment site in West Des Moines, Iowa in an area in need of a catalyst for revitalization.
8 Company Highlights – Commitment to Excellence West Bank is a commercially-focused financial institution operating in high quality markets in Iowa and Minnesota led by a deep and experienced management team with skills developed internally and with other large regional banking institutions. Credit Culture Asset Quality & Risk Management • Strict credit risk management with robust processes and experienced credit personnel. • 31 high quality commercial bankers with an average of 21 years of commercial banking experience. • Centralized committee structure that is agile and responsive to customer needs and an organizational structure that provides deep support of credit and administrative functions. • We are a local lender to local customers. • Proven credit culture with a history of strong asset quality. • Classified and watch list loan balance was 0.68% of the loan portfolio at September 30, 2026. • No nonperforming assets at September 30, 2026. • Commercial real estate stress testing is completed quarterly. • Independent third party loan review is performed semi-annually.
9 3Q 2026 Income Statement Highlights (in thousands) For the Quarter Ended Q3 '25 Q2 '26 Q3 '26 Linked Quarter Comments Q2 '26 vs. Q3 '26 Net interest income $ 22,501 $ 25,521 $ 26,370 Loan yields increased 8 basis points, while the cost of interest-bearing deposits increased 3 basis points.Net interest margin(1) 2.36 % 2.69 % 2.77 % Credit loss expense $ — $ — $ — Credit quality remains pristine. Noninterest income (excluding securities losses) $ 2,503 $ 2,596 $ 2,745 Increase in trust services revenue. Noninterest expense $ 13,550 $ 13,767 $ 13,961 Improvement in efficiency ratio is primarily due to increase in net interest income. Efficiency ratio(1) 54.06 % 48.78 % 47.81 % Income tax expense $ 2,140 $ 3,277 $ 3,526 Effective tax rate was 23.3 percent in Q3 2026, compared to 22.8 percent in Q2 2026. Net income $ 9,314 $ 11,073 $ 11,628 Return on average equity 15.25 % 16.21 % 16.41 % (1) Presented on a fully taxable equivalent basis; see Appendix for “Non-GAAP Financial Measures.”
10 Net Interest Income (1) Presented on a fully taxable equivalent basis; see Appendix for “Non-GAAP Financial Measures.” $22.5 $24.2 $24.4 $25.5 $26.4 3Q25 4Q25 1Q26 2Q26 3Q26 Net Interest Income ($ in millions) 2.36% 2.47% 2.59% 2.69% 2.77% Net interest margin %(1) Quarterly Highlights • Net interest income increased $0.9 million and net interest margin increased 8 bps in Q3 2026 compared to Q2 2026. • Interest income on loans increased $0.4 million. Loan yields increased 8 basis points, from 5.65% in Q2 2026 to 5.73% in Q3 2026, while average loan balances declined $44.1 million. Fixed-rate loan originations and renewals continue to price higher than average portfolio roll-off rates. Increases in Prime and SOFR based rates also increased the yield on variable rate loans in Q3 2026. • Deposit interest expense increased $0.2 million. The cost of interest-bearing deposits increased 3 basis points, while the average balance of interest- bearing deposits declined $36.4 million. The cost of deposits was impacted by the 25 basis points increase in the federal funds rate during the quarter. • Interest expense on FHLB advances declined by $0.3 million. The average balance of FHLB advances declined $32.1 million in Q3 2026 compared to Q2 2026 as matured advances were not renewed.
11 $2,960 $2,983 $2,971 $2,985 $2,940 $2,950 $2,995 3Q25 4Q25 1Q26 2Q26 3Q26 2Q26 3Q26 Loans • Loans increased $45.1 million in Q3 2026, primarily due to increases in commercial real estate loans. • Quarterly average loans decreased $44.1 million compared to Q2 2026. • Commercial real estate loans are well diversified among various industry sectors. • Loan yields increased 8 basis points in Q3 2026, compared to Q2 2026. The increase in loan yields is due to the ongoing repricing of the fixed-rate loan portfolio into higher prevailing market rates, along with increases in Prime and SOFR based rates in Q3 2026. • 36% of the loan portfolio consists of variable-rate loans. Quarterly Highlights 5.66% 5.59% 5.59% 5.65% 5.73% Loans ($ in millions) Average Balances Period End Loan Yield %
12 Loan Mix C & I, 15% CRE - NOO, 34% CRE - OO, 15% Multifamily, 20% 1-4 Family, 4% C & D, 10% Consumer and other, 2% Loan Mix as of September 30, 2026 Total Construction and Development and Commercial Real Estate Loans at September 30, 2026 Sector Balance ($ in thousands) Multifamily $ 666,215 Warehouse & trucking terminals 260,140 Retail 252,724 Hotels 247,001 Office 155,168 Mixed use 113,135 Medical 109,332 Land and land development 101,534 Manufacturing 78,711 Residential 68,915 Other 305,267 Total $ 2,358,142
13 $24 $(9) $2 $(7) $(6) 3Q25 4Q25 1Q26 2Q26 3Q26 Credit Quality $0.0 $0.0 $0.0 $14.4 $13.8 3Q25 4Q25 1Q26 2Q26 3Q26 $0.0 $0.0 $0.0 $0.0 $0.0 3Q25 4Q25 1Q26 2Q26 3Q26 $30.5 $30.5 $30.5 $30.5 $30.5 3Q25 4Q25 1Q26 2Q26 3Q26 Net Charge-Offs (Recoveries) ($ in thousands) Substandard Loans ($ in millions) Nonaccrual Loans ($ in millions) Allowance for Credit Losses ($ in millions) 1.01% 1.02% 1.02% 1.03% 1.02% ACL/Loans %
14 Deposits • Total deposits decreased $74.3 million in Q3 2026. Quarterly average deposits decreased $12.2 million in Q3 2026. • Brokered deposits decreased $8.5 million in Q3 2026. • Deposit costs increased 3 bps in Q3 2026 compared to Q2 2026. • West Bank participates in a reciprocal deposit network which enables depositors to receive FDIC insurance coverage on deposits otherwise exceeding the maximum insurable amount. • Estimated uninsured deposits, excluding deposits in a reciprocal deposit network, brokered deposits and public funds protected by state programs, were approximately 28.5% of total deposits at the end of Q3. Quarterly Highlights $3,334 $3,419 $3,348 $3,347 $3,335 $3,345 $3,271 3Q25 4Q25 1Q26 2Q26 3Q26 2Q26 3Q26 Average Balances Deposit Cost % Period End Deposits ($ in millions) 3.17% 2.89% 2.75% 2.73% 2.76% Brokered Deposits, 3% Noninterest- Bearing, 17% Interest-Bearing Demand, 14% Savings and Money Market, 51% Time Deposits, 15% Deposit Mix as of September 30, 2026
15 Funding and Liquidity Cost of liability funding ($ in thousands) Cash and cash equivalents $ 272,421 Unpledged securities 44,161 FHLB borrowing availability 734,658 Unsecured lines of credit availability 75,000 Federal Reserve discount window availability 32,864 Total as of September 30, 2026 $ 1,159,104 $3,723 $3,806 $3,724 $3,721 $3,676 $512 $524 $506 $530 $554 $2,822 $2,894 $2,842 $2,817 $2,781 $389 $388 $376 $374 $341 Average Noninterest-Bearing Deposits Average Interest-Bearing Deposits Average Borrowings 3Q25 4Q25 1Q26 2Q26 3Q26 3.26% 3.02% 2.90% 2.88% 2.90% Overall Funding Costs Sources of Liquidity West Bank also maintains master brokered deposit agreements with various brokerage firms and deposit networks. ($ in millions)
16 9.4% 9.6% 9.8% 10.2% 10.2% 12.3% 12.4% 12.6% 13.0% 13.0% 3Q25 4Q25 1Q26 2Q26 3Q26 8.5% 8.4% 8.7% 8.9% 9.2% 10.5% 10.4% 10.7% 10.8% 11.0% 3Q25 4Q25 1Q26 2Q26 3Q26 9.9% 10.1% 10.3% 10.8% 10.8% 12.3% 12.4% 12.6% 13.0% 13.0% 3Q25 4Q25 1Q26 2Q26 3Q26 12.5% 12.8% 13.0% 13.5% 13.4%13.2% 13.4% 13.5% 14.0% 13.9% 3Q25 4Q25 1Q26 2Q26 3Q26 Regulatory Capital Ratios Note: Lines depict regulatory requirements to be considered well-capitalized.Consolidated West Bank Total Risk-Based Capital Ratio Tier 1 Capital Ratio Common Equity Tier 1 Ratio Tier 1 Leverage Ratio 6.5% 10% 8% 5%
17Appendix Appendix Non-GAAP Financial Measures (in thousands) As of and for the Quarter Ended September 30, 2026 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 Reconciliation of net interest income and net interest margin on a FTE basis to GAAP: Net interest income (GAAP) $ 26,370 $ 25,521 $ 24,385 $ 24,206 $ 22,501 Tax-equivalent adjustment (1) 76 75 72 70 61 Net interest income on a FTE basis (non-GAAP) 26,446 25,596 24,457 24,276 22,562 Average interest-earning assets 3,785,334 3,820,041 3,821,463 3,893,827 3,790,154 Net interest margin on a FTE basis (non-GAAP) 2.77 % 2.69 % 2.59 % 2.47 % 2.36 % Reconciliation of efficiency ratio on an adjusted and FTE basis to GAAP: Net interest income on a FTE basis (non-GAAP) $ 26,446 $ 25,596 $ 24,457 $ 24,276 $ 22,562 Noninterest income 2,745 2,596 2,554 (892) 2,503 Adjustment for realized securities losses, net — — — 3,959 — Adjustment for losses on disposal of premises and equipment, net 7 28 2 — — Adjusted income 29,198 28,220 27,013 27,343 25,065 Noninterest expense 13,961 13,767 13,465 13,729 13,550 Efficiency ratio on an adjusted and FTE basis (non- GAAP) (2) 47.81 % 48.78 % 49.85 % 50.21 % 54.06 % (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.