West Bancorporation (WTBA)
NASDAQ:WTBA
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West Bancorporation
(NASDAQ:WTBA)
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Rating:69Neutral
Price Target:
$25.00
▲(9.51% Upside)
Action:DowngradedDate:02/19/26
WTBA scores in the upper-middle range driven most by improved balance-sheet risk profile and a positive earnings outlook (margin expansion, deposit improvement, pristine credit). The score is capped by the weak/erratic cash-flow data and the 2025 revenue contraction, while supportive technical momentum and reasonable valuation with a ~3.9% dividend provide additional backing.
Positive Factors
Balance-sheet strength
A materially lower leverage ratio and higher tangible equity provide a durable capital cushion that reduces insolvency and liquidity risk. This strengthens the bank's ability to absorb credit losses, support lending through cycles, maintain dividends, and execute opportunistic asset redeployments over the next several quarters.
Negative Factors
Cash-flow volatility
Sharp swings and a 2025 collapse in operating and free cash flow signal inconsistent cash conversion versus earnings. This undermines the firm's capacity to fund capital needs, dividends, or opportunistic investments without leaning on capital markets or selling securities, raising long-term funding flexibility concerns.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet strength
A materially lower leverage ratio and higher tangible equity provide a durable capital cushion that reduces insolvency and liquidity risk. This strengthens the bank's ability to absorb credit losses, support lending through cycles, maintain dividends, and execute opportunistic asset redeployments over the next several quarters.
Read all positive factors
West Bancorporation (WTBA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$421.99M
Dividend Yield4.39%
Average Volume (3M)36.87K
Price to Earnings (P/E)11.5
Beta (1Y)0.79
Revenue Growth4.47%
EPS Growth49.09%
CountryUS
Employees180
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.43
Shares Outstanding16,940,784
10 Day Avg. Volume29,609
30 Day Avg. Volume36,865
Financial Highlights & Ratios
PEG Ratio0.34
Price to Book (P/B)1.41
Price to Sales (P/S)1.89
P/FCF Ratio8.71
Enterprise Value/Market Cap1.19
Enterprise Value/Revenue2.54
Enterprise Value/Gross Profit5.32
Enterprise Value/Ebitda10.68
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.55
Revenue Forecast (FY)$115.50M
West Bancorporation Business Overview & Revenue Model
Company Description
West Bancorporation, Inc. operates as the financial holding company for West Bank that provides community banking and trust services to individuals and small- to medium-sized businesses in the United States. It accepts various deposit products, in...
How the Company Makes Money
West Bancorporation makes money primarily through net interest income and, to a lesser extent, noninterest income. Net interest income is earned from the spread between (1) interest and fees collected on loans and other interest-earning assets (su...
West Bancorporation Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive picture: strong full-year earnings growth (+35% YoY), meaningful margin improvement, substantial core deposit gains and pristine credit metrics. Key near-term weaknesses include a quarter-to-quarter earnings dip driven by a $4M pretax securities loss, modest loan balance declines from large payoffs, and some concentration risk in a small watch list (notably trucking). Management emphasized balance-sheet repositioning and margin upside, and presented a constructive outlook for 2026, with caveats around deposit volatility from public funds and a cautious loan pipeline. Overall, the positive operating trends and capital/deposit strengths outweigh the transient and manageable headwinds.Positive Updates
Strong Full-Year Net Income Growth
Net income for fiscal 2025 was $32.6 million versus $24.1 million in 2024, an increase of 35% year-over-year. Fourth-quarter net income was $7.4 million (Q4 2024: $7.1 million) and management noted that, excluding a pretax $4 million securities loss, Q4 net income would have exceeded $10 million.
Negative Updates
Quarterly Net Income Decline Due to One-Time Loss
Sequentially, Q4 net income fell to $7.4 million from $9.3 million in Q3 2025. A pretax $4 million loss on the sale of $64 million of securities materially pressured Q4 results (management noted adjusted Q4 net income would have exceeded $10 million without the sale loss).
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Full-Year Net Income Growth
Net income for fiscal 2025 was $32.6 million versus $24.1 million in 2024, an increase of 35% year-over-year. Fourth-quarter net income was $7.4 million (Q4 2024: $7.1 million) and management noted that, excluding a pretax $4 million securities loss, Q4 net income would have exceeded $10 million.
Read all positive updates
Company Guidance
The company guided that it is positioned for growth and margin expansion in 2026, noting key metrics: Q4 net income was $7.4M (vs. $9.3M in Q3 and $7.1M a year ago) and full-year 2025 net income was $32.6M (up 35% from $24.1M in 2024); loan outstandings are just under $3.0B after some large payoffs, and about $400M of fixed-rate loans reprice in 2026 with an expected yield pickup of ~1.5–2% (maturing at low‑4% rates); Q4 included a $64M securities sale with a $4M pretax loss (without which Q4 net income would have exceeded $10M); deposits rose just over $162M in the quarter, core deposits (ex‑brokered) rose ≈$212M in Q4 and $223M for the year, while net interest margin improved +11 bps QoQ and +49 bps YoY and cost of deposits fell 28 bps QoQ and 64 bps YoY; credit remains pristine (no past dues >30 days, no OREO, no nonaccruals, no substandard loans, watch list = 1.7% of loans with 70% of that in trucking) and no provision for credit losses was recorded; the board declared a $0.25 dividend payable Feb. 25 (record Feb. 11).West Bancorporation Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
73
Positive
Cash Flow
34
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 198.49M | 197.84M | 169.75M | 133.56M | 116.42M |
| Gross Profit | 95.25M | 78.13M | 77.78M | 104.45M | 105.69M |
| EBITDA | 41.42M | 34.37M | 34.94M | 63.86M | 66.52M |
| Net Income | 32.56M | 24.05M | 24.14M | 46.40M | 49.61M |
Balance Sheet | |||||
| Total Assets | 4.14B | 4.01B | 3.83B | 3.61B | 3.50B |
| Cash, Cash Equivalents and Short-Term Investments | 493.62M | 788.04M | 689.28M | 689.01M | 951.65M |
| Total Debt | 106.41M | 392.63M | 592.64M | 485.86M | 199.87M |
| Total Liabilities | 3.88B | 3.79B | 3.60B | 3.40B | 3.24B |
| Stockholders Equity | 265.99M | 227.88M | 225.04M | 211.11M | 260.33M |
Cash Flow | |||||
| Free Cash Flow | 43.15M | 13.67M | -11.14M | 38.13M | 49.13M |
| Operating Cash Flow | 46.48M | 39.81M | 25.25M | 59.44M | 57.88M |
| Investing Cash Flow | 93.30M | -27.34M | -168.68M | -357.83M | -537.21M |
| Financing Cash Flow | 87.83M | 165.65M | 182.25M | 132.11M | 275.72M |
West Bancorporation Technical Analysis
Positive
22.83
Price Trends
24.26
Positive
23.26
Positive
21.34
Positive
Market Momentum
0.04
Negative
57.76
Neutral
83.68
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WTBA, the sentiment is Positive. The current price of 22.83 is below the 20-day moving average (MA) of 23.58, below the 50-day MA of 24.26, and above the 200-day MA of 21.34, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 57.76 is Neutral, neither overbought nor oversold. The STOCH value of 83.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $457.47M | 8.58 | 16.51% | 2.00% | 8.90% | 18.23% | |
69 Neutral | $421.99M | 11.55 | 13.03% | 4.39% | 4.47% | 49.09% | |
68 Neutral | $362.58M | 12.79 | 14.96% | 2.10% | 15.45% | 52.68% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $422.99M | 13.01 | 5.45% | ― | 16.03% | 145.10% | |
63 Neutral | $415.91M | 10.09 | 12.21% | 1.66% | 2.52% | 85.94% | |
63 Neutral | $365.70M | 10.19 | 9.33% | 3.18% | 6.52% | 36.77% |
* Financial Sector Average
WTBA
West Bancorporation
24.91
6.41
34.66%
BWFG
Bankwell Financial Group
52.14
22.41
75.40%
FMAO
Farmers & Merchants Bancorp
26.60
3.96
17.47%
PDLB
Ponce Financial Group Inc
17.51
5.85
50.17%
OBT
Orange County Bancorp
34.22
11.19
48.56%
USCB
USCB Financial Holdings, Inc. Class A
19.86
2.79
16.33%
West Bancorporation Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
West Bancorporation Posts Strong 2025 Earnings, Raises Dividend
Positive
Jan 29, 2026
On January 29, 2026, West Bancorporation, Inc. reported that net income for 2025 rose to $32.6 million, or $1.92 per diluted share, up from $24.1 million, or $1.42 per diluted share, in 2024, driven by higher net interest income and improved net i...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.