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West Bancorporation (WTBA)
NASDAQ:WTBA
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West Bancorporation
(NASDAQ:WTBA)
72Outperform
West Bancorporation (WTBA) vs. S&P 500 (SPY)
Market Cap
$340.83M
Dividend Yield5.13%
Average Volume (3M)30.60K
Price to Earnings (P/E)13.1
Beta (1Y)0.95
Revenue Growth12.93%
EPS Growth17.25%
CountryUS
Employees180
SectorFinancial
Sector Strength85
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.54
Shares Outstanding16,923,280
10 Day Avg. Volume30,965
30 Day Avg. Volume30,601
Financial Highlights & Ratios
PEG Ratio0.76
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap2.03
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit8.75
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$23.00Price Target Upside14.20% Upside
Rating ConsensusHold
Number of Analyst Covering0
West Bancorporation Business Overview & Revenue Model
Company DescriptionWest 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 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 exhibits strong financial health across its income statement, balance sheet, and cash flow. The company benefits from effective cost management and financial leverage, supporting profitability. While revenue growth and asset volatility present potential risks, the overall trajectory suggests a solid financial position within the regional banking sector.Income Statement
West Bancorporation shows strong income statement performance with a consistent increase in net income and EBIT margin in the TTM. The gross profit margin is robust, indicating effective cost management. However, revenue growth has been inconsistent, which slightly tempers the overall positive outlook.75
Positive
Balance Sheet
The balance sheet reflects solid equity ratios and an improving debt-to-equity ratio, suggesting strong financial stability and manageable leverage. Return on equity is moderate, indicating efficient use of shareholder funds. However, the fluctuating total assets and liabilities might suggest some volatility in financial management.68
Positive
Cash Flow
Cash flow analysis reveals a positive trajectory with stable operating cash flow and improved free cash flow in the TTM. The free cash flow to net income ratio is healthy, demonstrating good cash generation relative to profits. However, fluctuations in investing cash flow warrant cautious monitoring.72
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 |
| 79.13M | 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 |
| 392.63M | 442.37M | 285.86M | 196.99M | 217.01M | Net Debt |
| 149.15M | 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 | |||
| 13.67M | -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
Positive
20.14
Price Trends
20.10
Positive
20.97
Negative
20.52
Negative
Market Momentum
-0.06
Negative
56.66
Neutral
70.28
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 20.14 is above the 20-day moving average (MA) of 19.07, above the 50-day MA of 20.10, and below the 200-day MA of 20.52, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 56.66 is Neutral, neither overbought nor oversold. The STOCH value of 70.28 is Neutral, 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
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $347.49M | 9.21 | 14.46% | 1.06% | 17.16% | 4.95% | |
72 Outperform | $340.83M | 13.08 | 11.30% | 5.13% | 12.93% | 17.25% | |
68 Neutral | $351.55M | 12.90 | 8.20% | 3.64% | 11.91% | 25.59% | |
64 Neutral | $12.65B | 9.74 | 8.04% | 17044.64% | 12.65% | -5.11% | |
63 Neutral | $363.16M | 13.04 | 7.22% | ― | 13.73% | 111.78% | |
57 Neutral | $335.89M | ― | -1.47% | 4.87% | -15.92% | -147.11% | |
57 Neutral | $342.91M | 27.96 | 4.21% | 2.74% | 69.35% | -65.75% |
* Financial Sector Average
Performance Comparison
WTBA
West Bancorporation
20.14
3.72
22.66%
BMRC
Bank Of Marin Bancorp
21.36
6.55
44.23%
CWBC
Community West Bancshares
17.99
0.91
5.33%
FMAO
Farmers & Merchants Bancorp
25.66
4.64
22.07%
CARE
Carter Bankshares
15.68
2.80
21.74%
SSBK
Southern States Bancshares
35.02
9.34
36.37%
West Bancorporation Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q1-2025)
| % Change Since: 2.44%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong financial performance with significant earnings growth, excellent credit quality, and a substantial improvement in net interest margin. However, challenges such as flat loan and deposit growth, economic uncertainty, and office property concerns were noted. Despite these challenges, the positive aspects, particularly in financial metrics, outweigh the negatives.Q1-2025 Updates
Positive Updates
Significant Earnings Growth
First quarter earnings were 35% higher than the first quarter of last year, indicating strong financial performance.
Excellent Credit Quality
No problem loans, nonaccruals, or adversely classified assets were reported, showcasing robust credit management.
Increase in Net Interest Margin
Net interest margin increased by 30 basis points compared to the fourth quarter of 2024, reflecting improved profitability.
Strong Deposit Growth in Minnesota
Significant retail deposit growth was achieved in Minnesota regional centers, supported by effective banking strategies.
Successful Asset Replacement
Approximately $100 million in payoffs were replaced with new assets at better rates, maintaining portfolio quality and profitability.
Improved Cost of Funds
Cost of deposits decreased by 38 basis points this quarter compared with the fourth quarter of 2024, contributing to financial improvement.
Negative Updates
Flat Loan and Deposit Growth
Loan and deposit growth remained flat in the first quarter of 2025, indicating potential challenges in expanding business volumes.
Economic and Market Uncertainty
Concerns about economic direction, potential supply interruptions, and less profitability in customer year-end financials were noted.
Office Property Deterioration
Significant office property vacancy issues were highlighted, posing potential risks to the commercial real estate portfolio.
Increased Tax Rate
The tax rate increased due to the expiration of a new market tax credit at the end of 2024, affecting net income.
Company Guidance
During the West Bancorporation First Q 2025 Earnings Conference Call, several key financial metrics and guidance were highlighted. The company's net income for Q1 2025 was $7.8 million, marking an increase from $7.1 million in Q4 2024 and $5.8 million in Q1 2024. The net interest margin increased by 30 basis points from the previous quarter, following a 38 basis point decrease in the cost of deposits. Loan yields for Q1 2025 stood at 5.52%, slightly below the 5.53% in Q4 2024 but above the 5.49% in Q1 2024. The company's loan portfolio remained flat at just over $3 billion, with a noted $100 million in payoffs primarily priced below the current rate environment, offset by new loans at higher rates. Despite a slight decrease in deposits due to normal cash flow fluctuations, credit quality remained robust, with no nonaccrual loans or adversely classified assets at quarter-end. The company declared a $0.25 per share dividend, payable on May 21 to shareholders of record on May 7. Overall, while the company faces economic uncertainties, it remains confident in its strong credit portfolio and strategic deposit and loan management.West Bancorporation Corporate Events
DividendsFinancial Disclosures
West Bancorporation Reports Q1 2025 Net Income Increase
Positive
Apr 24, 2025
West Bancorporation, Inc. reported a net income of $7.8 million for the first quarter of 2025, marking an increase from both the fourth quarter of 2024 and the first quarter of 2024. The company declared a quarterly dividend of $0.25 per share, payable in May 2025. Improvements in net interest margin and efficiency ratio were noted, along with a modest loan growth amidst economic uncertainty. The company maintained strong credit quality with no significant past due loans. Deposits saw a decrease, primarily due to cash flow fluctuations, while brokered deposits increased. The efficiency ratio improved due to higher net interest income and lower noninterest expenses.
Spark’s Take on WTBA Stock
According to Spark, TipRanks’ AI Analyst, WTBA is a Outperform.
West Bancorporation benefits from strong revenue growth and a solid balance sheet. Positive earnings call sentiment and reasonable valuation metrics further support the stock’s prospects. However, technical indicators point to current weakness, and cash flow concerns warrant caution. The overall score reflects a balanced outlook with potential for improvement.
To see Spark’s full report on WTBA stock, click here.
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.