West Bancorporation (WTBA) AI Stock Analysis

• Market Cap: $431.82M
• Dividend Yield: 4.39%
• Average Volume (3M): 36.87K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.78
• Revenue Growth: 4.47%
• EPS Growth: 49.09%
• Country: US
• Employees: 180
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.43
• Shares Outstanding: 16,940,784
• 10 Day Avg. Volume: 29,609
• 30 Day Avg. Volume: 36,865
• PEG Ratio: 0.34
• Price to Book (P/B): 1.41
• Price to Sales (P/S): 1.89
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 2.59
• Enterprise Value/Gross Profit: 5.41
• Enterprise Value/Ebitda: 10.88
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $28.00 ▲(22.65% Upside)
• Action: Downgraded Date: 02/19/26
• Date: Action: Downgraded 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

Improved Leverage & Capital

Material deleveraging and a larger equity base reduce balance-sheet risk and increase the bank's capacity to absorb credit losses or pursue selective growth. Strong tangible equity supports dividends and loan funding, making capital structure more resilient over the next several quarters.

Core Deposit Gains & Lower Funding Costs

Sizable core deposit inflows and materially lower deposit costs strengthen funding stability and reduce interest expense pressure. Durable, low-cost core funding supports net interest margin and gives the bank flexibility to fund loan growth or reprice assets with less reliance on volatile wholesale funding.

Pristine Credit Metrics

Exceptionally clean asset quality and a tiny watch-list share materially lower expected credit losses and capital strain. With limited problem loans, the bank can focus on margin expansion and selective lending, preserving capital and earnings stability across multiple economic scenarios.

Negative Factors

2025 Revenue Contraction

A sharp revenue decline in 2025 interrupts prior growth momentum and reduces operating leverage. Persistent top-line weakness can press margins and limit reinvestment capacity; if loan payoffs and muted origination persist, revenue recovery may lag even as margins improve.

Weak and Volatile Cash Generation

Extreme swings in operating and free cash flow undermine predictability of internal funding for dividends, capital spending, and balance-sheet repositioning. Persistent cash volatility raises the risk that earnings improvements won't translate into sustainable cash returns to shareholders.

Funding/Loan Concentration & Pipeline Risk

A portion of recent deposit gains is transient public-fund cash, creating potential deposit runoff risk. Simultaneously, sector concentration in trucking within the small watch list injects cyclicality risk into credit exposure. Both factors can constrain durable loan growth and funding stability.

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, including checking, savings, and money market accounts, as well as time certificates of deposit. The company also provides loan products comprising commercial real estate loans, construction and land development loans, commercial lines of credit, and commercial term loans; consumer loans, including loans extended to individuals for household, family, and other personal expenditures not secured by real estate; and 1-4 family residential mortgages and home equity loans. In addition, it offers trust services, including the administration of estates, conservatorships, personal trusts, and agency accounts. Further, the company provides internet and mobile banking services; treasury management services comprising cash management, client-generated automated clearing house transaction, remote deposit, and fraud protection services; and merchant credit card processing services and corporate credit cards. It has seven offices in the Des Moines area; one office in Coralville and Iowa; and one office each in Rochester, Owatonna, Mankato, and St. Cloud, Minnesota. West Bancorporation, Inc. was founded in 1893 and is headquartered in West Des Moines, Iowa.

How the Company Makes Money

West Bancorporation generates revenue through multiple channels, primarily through interest income from loans and securities, as well as non-interest income from fees for banking services. The majority of its revenue stems from interest earned on loans provided to consumers and businesses, which includes residential mortgages, commercial loans, and lines of credit. Additionally, the company earns non-interest income from service charges, investment management fees, and other banking services. Significant partnerships with local businesses and community organizations enhance its customer base and contribute to its earnings. Furthermore, effective asset management and a commitment to prudent lending practices help mitigate risks associated with loan defaults, thereby supporting stable revenue growth.

West Bancorporation Financial Statement Overview

Summary

Balance sheet strength is a positive (lower leverage in 2025 and solid ~12% ROE), and profitability margins improved versus 2024. However, the sharp 2025 revenue contraction and especially weak/volatile cash flow metrics (2025 OCF/FCF at 0 after prior variability) materially increase near-term uncertainty.

Income Statement

Revenue grew steadily from 2020–2024, but 2025 reversed sharply (revenue growth -0.85), signaling a meaningful near-term slowdown. Profitability improved in 2025 versus 2024 (net margin ~16.4% vs ~12.2%, and operating margin ~20.9% vs ~13.9%), but margins remain well below the exceptionally strong 2021–2022 levels. Overall, earnings power looks positive but more volatile recently, with the 2025 revenue contraction the key concern.

Balance Sheet

Leverage improved materially in 2025, with debt-to-equity dropping to ~0.40 from elevated levels in 2022–2024 (roughly 1.7–2.6), which reduces balance-sheet risk. Equity also increased to ~$266M (from ~$228M in 2024), while return on equity stayed solid at ~12.2% in 2025 (down from the 2021–2022 peak but still healthy). The main weakness is that assets are large relative to equity (typical for banks), so performance remains sensitive to credit conditions and funding costs despite the better leverage profile.

Cash Flow

Cash generation is the weakest area based on the provided data: 2025 shows operating cash flow and free cash flow at 0 with free cash flow growth of -100%, a major deterioration versus prior years. While 2020–2022 showed strong cash conversion (free cash flow comfortably positive), 2023 turned negative free cash flow and 2024 recovered before the 2025 drop-off. This pattern suggests higher volatility and/or potential reporting classification effects, but using the data provided, cash flow quality and consistency are clear risks.

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	0.00	13.67M	-11.14M	38.13M	49.13M
Operating Cash Flow	0.00	39.81M	25.25M	59.44M	57.88M
Investing Cash Flow	0.00	-27.34M	-168.68M	-357.83M	-537.21M
Financing Cash Flow	-243.48M	165.65M	182.25M	132.11M	275.72M

West Bancorporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.83
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 24.74, below the 50-day MA of 23.44, and above the 200-day MA of 20.55, indicating a bullish trend. The MACD of 0.74 indicates Positive momentum. The RSI at 61.70 is Neutral, neither overbought nor oversold. The STOCH value of 30.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WTBA.

West Bancorporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OBT	80 Outperform	$467.03M	10.50	15.69%	2.00%	8.90%	18.23%
USCB	76 Outperform	$355.87M	14.77	14.96%	2.10%	15.45%	52.68%
FMAO	72 Outperform	$382.25M	11.46	8.98%	3.18%	6.52%	36.77%
BWFG	71 Outperform	$381.50M	10.88	10.04%	1.66%	2.52%	85.94%
WTBA	69 Neutral	$431.82M	13.28	13.14%	4.39%	4.47%	49.09%
PDLB	68 Neutral	$398.66M	14.03	5.48%	―	16.03%	145.10%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

West Bancorporation Corporate Events

West Bancorporation Posts Strong 2025 Earnings, Raises Dividend

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 interest margin; fourth-quarter 2025 profit was $7.4 million, slightly above the prior-year quarter but down from the third quarter. The board declared a quarterly dividend of $0.25 per share payable February 25, 2026, as the company highlighted pristine credit quality with no nonaccrual or past-due loans at year-end, stronger deposit growth—particularly in core, non-brokered balances—an improved efficiency ratio and higher tangible common equity, while also recording a securities sale loss in November intended to enhance balance-sheet flexibility and long-term earnings capacity.

The most recent analyst rating on (WTBA) stock is a Buy with a $26.00 price target. To see the full list of analyst forecasts on West Bancorporation stock, see the WTBA Stock Forecast page.