West Bancorporation (WTBA) AI Stock Analysis

• Market Cap: $337.12M
• Dividend Yield: 5%
• Average Volume (3M): 35.29K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.90
• Revenue Growth: 8.20%
• EPS Growth: 33.81%
• Country: US
• Employees: 180
• Sector: Financial
• Sector Strength: 73
• Industry: Banks - Regional
• EPS (TTM): 0.47
• Shares Outstanding: 16,940,784
• 10 Day Avg. Volume: 26,272
• 30 Day Avg. Volume: 35,291
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.04
• Enterprise Value/Revenue: 3.45
• Enterprise Value/Gross Profit: 7.97
• Enterprise Value/Ebitda: 16.45
• 1Y Price Target: $20.50
• Price Target Upside: 2.55% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: $22.00 ▲(10.06% Upside)

West Bancorporation's strong financial performance, attractive valuation, and positive earnings call sentiment are the primary drivers of its overall score. Technical analysis indicates short-term momentum but suggests caution due to potential overbought conditions. The company's solid dividend yield and strategic debt management further enhance its investment appeal.

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 primarily through interest income from loans and other financial products. The company offers various loan types, including commercial, residential, and consumer loans, which are a significant source of interest income. Additionally, West Bancorporation earns non-interest income from fees associated with banking services, investment management, and mortgage origination. The bank also benefits from service charges on deposit accounts and transaction fees. Key partnerships with local businesses and municipalities enhance its loan portfolio and deposit base, contributing to overall earnings. The company's prudent risk management practices and focus on local markets allow it to maintain a competitive edge and ensure stable revenue streams.

West Bancorporation Financial Statement Overview

Summary

West Bancorporation exhibits strong financial health with effective cost management and financial leverage. 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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	199.75M	197.84M	169.75M	133.56M	116.42M	109.37M
Gross Profit	86.39M	78.13M	77.78M	104.45M	105.69M	79.97M
EBITDA	41.84M	34.37M	34.94M	63.86M	66.52M	44.77M
Net Income	28.87M	24.05M	24.14M	46.40M	49.61M	32.71M
Balance Sheet
Total Assets	4.06B	4.01B	3.83B	3.61B	3.50B	3.19B
Cash, Cash Equivalents and Short-Term Investments	572.50M	788.04M	689.28M	689.01M	951.65M	498.26M
Total Debt	40.24M	392.63M	592.64M	485.86M	199.87M	222.38M
Total Liabilities	3.82B	3.79B	3.60B	3.40B	3.24B	2.96B
Stockholders Equity	240.93M	227.88M	225.04M	211.11M	260.33M	223.69M
Cash Flow
Free Cash Flow	38.42M	13.67M	-11.14M	38.13M	49.13M	39.97M
Operating Cash Flow	46.96M	39.81M	25.25M	59.44M	57.88M	42.28M
Investing Cash Flow	90.84M	-27.34M	-168.68M	-357.83M	-537.21M	-367.16M
Financing Cash Flow	57.58M	165.65M	182.25M	132.11M	275.72M	668.02M

West Bancorporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 19.99 is above the 20-day moving average (MA) of 18.79, above the 50-day MA of 19.14, and below the 200-day MA of 20.17, indicating a neutral trend. The MACD of 0.27 indicates Negative momentum. The RSI at 62.48 is Neutral, neither overbought nor oversold. The STOCH value of 90.50 is Negative, 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
FMAO	78 Outperform	$367.94M	12.56	8.64%	3.31%	8.62%	37.01%
CWBC	77 Outperform	$408.05M	15.36	7.23%	2.28%	48.19%	36.25%
WTBA	72 Outperform	$337.12M	11.70	12.42%	5.00%	8.20%	33.81%
SSBK	72 Outperform		―		―	17.09%	4.95%
CARE	71 Outperform	$439.57M	14.32	8.06%	―	9.18%	153.68%
Sector *	68 Neutral	$17.89B	12.03	10.28%	3.73%	9.80%	1.66%
BMRC	63 Neutral	$393.30M	56.58	1.58%	4.07%	23.26%	―

West Bancorporation Corporate Events

West Bancorporation Reports Q2 2025 Financial Results

West Bancorporation, Inc. announced its financial results for the second quarter of 2025, reporting a net income of $8.0 million, an increase from both the previous quarter and the same quarter in 2024. The company declared a quarterly dividend of $0.25 per share, payable in August 2025. The company highlighted improvements in net interest income, net interest margin, and efficiency ratio, with no loans on nonaccrual status and no loans past due over 90 days. Despite a decrease in loan balances due to asset sales and refinancing, deposits increased significantly, driven by a local municipal customer’s bond proceeds. The company remains focused on maintaining strong credit quality and exploring growth opportunities.

West Bancorporation Presents Strategic Insights to Investors

On June 12, 2025, West Bancorporation‘s executive officers will present to select investors, sharing insights into the company’s financial performance and strategic direction. The presentation highlights the company’s strong market position in community banking, its focus on organic growth, and its strategic expansion efforts in the Minnesota markets, which enhance business development opportunities and visibility in these communities.