West Bancorporation ( (WTBA) ) has released its Q3 earnings. Here is a breakdown of the information West Bancorporation presented to its investors.
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West Bancorporation, Inc., headquartered in West Des Moines, Iowa, operates as a community bank through its subsidiary, West Bank, offering lending, deposit, and trust services primarily to small- to medium-sized businesses and consumers across Iowa and Minnesota.
In its third quarter of 2025, West Bancorporation reported a net income of $9.3 million, translating to $0.55 per diluted share, marking a significant increase from both the previous quarter and the same period last year. The company also declared a quarterly dividend of $0.25 per share, reflecting consistent returns to shareholders.
Key financial highlights include a 1.4% increase in loans, driven by commercial real estate and commercial loans, while deposits saw a 2.5% decline due to expected cash flow fluctuations. The net interest margin improved to 2.36%, supported by increased interest income from loans and short-term assets. The efficiency ratio also showed positive movement, decreasing to 54.06% from the previous quarter.
The company maintained strong credit quality with no nonaccrual loans and a slight increase in the allowance for credit losses. Despite a rise in watch list loans, primarily due to one customer relationship, these loans are considered well-collateralized.
Looking ahead, West Bancorporation remains focused on enhancing its treasury management and digital banking services, aiming to strengthen customer relationships and improve financial performance, as indicated by its management’s optimistic outlook for future earnings growth.