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West Bancorporation (WTBA)
NASDAQ:WTBA
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West Bancorporation
(NASDAQ:WTBA)
73Outperform
West Bancorporation (WTBA) vs. S&P 500 (SPY)
Market Cap
$326.55M
Dividend Yield5.42%
Average Volume (3M)25.96K
Price to Earnings (P/E)13.6
Beta (1Y)1.10
Revenue Growth16.51%
EPS Growth-1.01%
CountryUS
Employees180
SectorFinancial
Sector Strength79
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.43
Shares Outstanding16,832,632
10 Day Avg. Volume29,855
30 Day Avg. Volume25,963
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)4.30
Price to Cash Flow (P/CF)7.90
P/FCF Ratio0.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$23.00Price Target Upside18.56% Upside
Rating ConsensusHold
Number of Analyst Covering1
West Bancorporation Business Overview & Revenue Model
Company DescriptionWest Bancorporation, Inc. (WTBA) is a financial holding company headquartered in West Des Moines, Iowa. It primarily operates through its wholly-owned subsidiary, West Bank, which provides a comprehensive range of banking services to individuals and businesses. The bank offers products such as commercial loans, real estate loans, consumer loans, and various deposit services, including checking and savings accounts. Additionally, West Bank provides trust services to its clients, enhancing its portfolio of financial solutions.
How the Company Makes MoneyWest Bancorporation primarily generates revenue through the interest income it earns from its lending activities. This includes interest on commercial and consumer loans, real estate loans, and investment securities. The company also earns non-interest income from service charges on deposit accounts, fees from trust services, and other banking-related transactions. Additionally, West Bancorporation benefits from strategic partnerships and community-focused banking initiatives, which help to attract and retain customers, thereby contributing to its earnings.
West Bancorporation Financial Statement Overview
Summary
West Bancorporation demonstrates robust revenue growth and maintains a stable balance sheet with low leverage. However, profitability metrics show room for improvement, and there are concerns regarding cash flow stability. These factors suggest a generally positive financial health with some risks to monitor.Income Statement
West Bancorporation's income statement reflects solid performance with a gross profit margin of 100%, indicating effective cost management. The net profit margin of 12.65% in 2024 is below the banking industry average, but the company has shown a significant revenue growth of 142.44% from 2023 to 2024. However, the EBIT and EBITDA margins are not available for 2024, which limits the analysis of operational efficiency.76
Positive
Balance Sheet
The balance sheet reveals a healthy financial position with a low debt-to-equity ratio of 0.19, indicating conservative leverage. The return on equity (ROE) is 10.55%, which shows moderate profitability. The equity ratio of 5.68% suggests limited capitalization, which could pose a risk, but overall, the company maintains a stable and secure balance sheet.81
Very Positive
Cash Flow
The cash flow statement shows a strong operating cash flow to net income ratio of 1.65 in 2024, reflecting efficient cash generation from operations. However, the free cash flow to net income ratio is 1.65, which indicates that free cash flow is aligned with net income. The free cash flow growth rate is not available due to negative free cash flow in 2023, highlighting potential volatility in cash generation.69
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 190.07M | 78.40M | 101.41M | 104.79M | 92.44M | Gross Profit |
| 190.07M | 170.37M | 101.41M | 104.79M | 92.44M | EBIT |
| 189.03M | 37.35M | 91.01M | 62.91M | 41.38M | EBITDA |
| 0.00 | 31.64M | 60.90M | 64.41M | 42.88M | Net Income Common Stockholders |
| 24.05M | 24.14M | 46.40M | 49.61M | 32.71M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 573.32M | 657.16M | 689.01M | 776.38M | 498.26M | Total Assets |
| 4.01B | 3.83B | 3.61B | 3.50B | 3.19B | Total Debt |
| 42.74M | 442.37M | 285.86M | 196.99M | 217.01M | Net Debt |
| 13.99M | 377.01M | 259.32M | 179.43M | 139.32M | Total Liabilities |
| 3.79B | 3.60B | 3.40B | 196.99M | 217.01M | Stockholders Equity |
| 227.88M | 225.04M | 211.11M | 260.33M | 223.69M |
| Cash Flow | Free Cash Flow | |||
| 39.81M | -11.14M | 38.13M | 49.13M | 39.97M | Operating Cash Flow |
| 39.81M | 25.25M | 59.44M | 57.88M | 42.28M | Investing Cash Flow |
| -27.34M | -168.68M | -357.83M | -537.21M | -367.16M | Financing Cash Flow |
| 165.65M | 182.25M | 132.11M | 275.72M | 668.02M |
West Bancorporation Technical Analysis
Negative
19.40
Price Trends
20.98
Negative
21.63
Negative
20.38
Negative
Market Momentum
-0.44
Positive
34.23
Neutral
15.49
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WTBA, the sentiment is Negative. The current price of 19.4 is below the 20-day moving average (MA) of 19.73, below the 50-day MA of 20.98, and below the 200-day MA of 20.38, indicating a bearish trend. The MACD of -0.44 indicates Positive momentum. The RSI at 34.23 is Neutral, neither overbought nor oversold. The STOCH value of 15.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WTBA.
West Bancorporation Risk Analysis
West Bancorporation disclosed 38 risk factors in its most recent earnings report. West Bancorporation reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
West Bancorporation Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $1.38B | 10.40 | 12.51% | 2.62% | 12.26% | 7.48% | |
73 Outperform | $326.55M | 13.63 | 10.62% | 5.42% | 16.51% | -1.01% | |
69 Neutral | $192.00M | 10.55 | 14.14% | 2.87% | 9.65% | 1820.32% | |
68 Neutral | $1.13B | 17.01 | 5.60% | 3.12% | 4.29% | -9.78% | |
65 Neutral | $744.65M | 9.40 | 9.62% | 3.06% | 17.70% | 3.88% | |
64 Neutral | $13.44B | 9.41 | 9.19% | 4.92% | 16.30% | -8.66% |
* Financial Sector Average
Performance Comparison
WTBA
West Bancorporation
18.38
3.11
20.37%
SRCE
1St Source
56.31
9.04
19.12%
BHLB
Berkshire Hills
24.27
3.92
19.26%
HWBK
Hawthorn Bancshares
27.50
7.21
35.53%
FMBH
First Mid-Illinois Bancshares
32.89
4.12
14.32%
West Bancorporation Earnings Call Summary
Earnings Call Date: Jan 23, 2025 | % Change Since: -7.79% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with record net income growth, significant deposit growth, and pristine credit quality. However, there were some challenges, such as a loss in investment securities and slowed credit opportunities in Minnesota. Overall, the positives significantly outweigh the negatives, indicating a robust performance outlook.Highlights
Record Net Income Growth
Net income was $7.1 million in Q4 compared to $6 million in Q3 2024 and $4.5 million in Q4 2023.
Strong Deposit Growth
Core deposit balances increased 15.8% in 2024 with an 8.3% increase in Q4, facilitating a reduction in expensive wholesale funding by over $200 million.
Pristine Credit Quality
Credit quality remains strong with 0 past dues over 30 days and the watch list representing only 0.26% of total loans.
Positive Loan Portfolio Performance
The $2.4 billion commercial real estate portfolio and $500 million C&I portfolio are performing well, with no significant deterioration in financial strength.
Successful Cost Management
Net interest income increased for four consecutive quarters, with a net interest margin increase of 7 basis points in Q4.
Strategic Facility Expansion
The new facility in Owatonna was completed, designed to host client and prospect events, aligning with the strategy of building business based on strong relationships.
Lowlights
Investment Securities Loss
A $1.2 million loss was recorded from selling approximately $12 million of investment securities in December.
Challenges in Minnesota Credit Opportunities
Credit opportunities have slowed in Minnesota, with a selective focus on efforts due to a lack of credit needs from prospects.
Company Guidance
During the fourth quarter of 2024, West Bancorporation, Inc. experienced a strong financial performance, with net income rising to $7.1 million compared to $6 million in the third quarter and $4.5 million in the same quarter of 2023. The company's core deposit balances increased by 15.8% over the year, contributing to a 200 million dollar reduction in expensive wholesale funding. The net interest margin improved by 7 basis points, aided by a 100 basis point drop in the Fed rate, which helped reduce deposit rates in high-cost sectors. West Bancorporation's credit quality remained robust, with no past dues over 30 days and a watch list representing only 0.26% of total loans. The commercial real estate portfolio, valued at $2.4 billion, performed well, and the $500 million commercial and industrial (C&I) portfolio showed no significant deterioration. The company declared a $0.25 dividend to common shareholders, reflecting confidence in ongoing financial strength and stability.West Bancorporation Corporate Events
Executive/Board ChangesDividendsFinancial Disclosures
West Bancorporation Announces Board Change and Financial Results
Neutral
Jan 23, 2025
On January 21, 2025, Philip Jason Worth announced that he will not stand for re-election to West Bancorporation’s Board of Directors at the April 2025 annual meeting, ending his tenure that began in 2013. In addition, the company reported its financial results for 2024, indicating net income of $24.1 million, unchanged from 2023, with a notable increase in the fourth quarter net income to $7.1 million. The company saw growth in core deposits and improvements in net interest income, despite a challenging year, and declared a quarterly dividend of $0.25 per share.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.