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West Bancorporation
(NASDAQ:WTBA)
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Rating:71Outperform
Price Target:
$29.00
▲(6.34% Upside)
Action:Reiterated
Date:07/23/26
WTBA scores well overall due to improving financial performance (earnings and cash-flow rebound with better leverage trends) and a strong, confidence-building earnings update (margin expansion, record dividend increase, and pristine credit quality). Supportive technicals and a reasonable valuation with a solid dividend yield further lift the score, while historical volatility in profitability/cash flow and near-term loan growth/payoff uncertainty keep it out of the top tier.
Positive Factors
Pristine credit quality
Exceptionally low delinquency and no nonaccruals materially reduce expected credit losses and provisioning needs, supporting stable earnings and free cash flow generation. Over 2–6 months this underwriting strength sustains capital and dividend capacity and lowers downside earnings volatility.
Negative Factors
Loan balance volatility & payoffs
Recurring large payoffs and refinancings introduce uncertainty in period-end loan balances and the timing of NII recognition. That volatility can mute the immediate impact of repricing tailwinds, complicate forecasting of interest income and slow visible loan growth over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Pristine credit quality
Exceptionally low delinquency and no nonaccruals materially reduce expected credit losses and provisioning needs, supporting stable earnings and free cash flow generation. Over 2–6 months this underwriting strength sustains capital and dividend capacity and lowers downside earnings volatility.
Read all positive factors
West Bancorporation (WTBA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$478.08M
Dividend Yield3.57%
Average Volume (3M)36.87K
Price to Earnings (P/E)12.4
Beta (1Y)0.77
Revenue Growth0.14%
EPS Growth32.11%
CountryUS
Employees180
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.26
Shares Outstanding17,043,743
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$30.00Price Target Upside10.01% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)2.59
Revenue Forecast (FY)$114.55M
West Bancorporation Business Overview & Revenue Model
Company Description
West Bancorporation, Inc. functions as the holding company for West Bank, delivering a comprehensive suite of community banking and trust services. Serving individuals and small-to-medium enterprises throughout the United States, its financial off...
How the Company Makes Money
West Bancorporation primarily makes money through traditional banking activities. The largest driver is net interest income: West Bank earns interest and fees on loans and other interest-earning assets and pays interest on deposits and other fundi...
West Bancorporation Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call presented multiple strong financial metrics — double-digit net income growth, margin expansion, record dividend, pristine credit metrics and a sizable loan repricing pipeline — which outweigh near-term headwinds such as spot loan payoffs, contraction in development lending, intense deposit competition and a couple of isolated downgrades. Management expects continued margin tailwinds from loan repricing over the next 12 months and sees controlled expenses for the rest of the year.Positive Updates
Strong Net Income and Profitability
Q2 net income of $11.1 million, up 39% year-over-year (Q2 2025: $8.0M). Year-to-date net income is 37% higher than the first half of 2025. 2026 year-to-date return on average equity is a little over 16%.
Negative Updates
Spot Loan Balances Declined Despite Slight Increase in Average Loans
Average loan outstandings increased slightly sequentially, but period-end (spot) loan balances fell as the quarter included several larger payoffs and customer refinancing into the secondary market.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Net Income and Profitability
Q2 net income of $11.1 million, up 39% year-over-year (Q2 2025: $8.0M). Year-to-date net income is 37% higher than the first half of 2025. 2026 year-to-date return on average equity is a little over 16%.
Read all positive updates
Company Guidance
The company’s guidance emphasized continued margin improvement and stable operations: Q2 net income was $11.1M (vs. $8.0M a year ago, +~39%), year‑to‑date net income was +37% and return on average equity is a little over 16%; net interest income rose $4.1M (+19% YoY) while net interest margin improved +10 bps sequentially and +42 bps YoY, and deposit cost fell 2 bps QoQ (46 bps YoY) with only “a couple” bps change this quarter; credit remains pristine (0 loans past due/0 nonaccruals/0 OREO, watch list down 50% to ~$0.7M) so no provision for credit losses was recorded; management said roughly $600M of loans will reprice over the next 12 months (weighted average in the low‑to‑mid‑4% range, more weighted to H1 2027), expects payoff activity (including >$200M of development assets sold or moved to nonrecourse in H1) to continue into Q3 then moderate, foresees an upward bias to the margin from asset repricing despite intense deposit pricing competition, approved a quarterly dividend increase to $0.26/share (payable Aug. 19, record Aug. 5), and does not expect any material expense projects for the remainder of 2026 (potential investments targeted for 2027–28).West Bancorporation Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
66
Positive
Cash Flow
61
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 200.56M | 198.49M | 197.84M | 169.75M | 133.56M | 116.42M |
| Gross Profit | 103.19M | 95.25M | 78.13M | 77.78M | 104.45M | 105.69M |
| EBITDA | 54.57M | 49.01M | 34.37M | 34.94M | 63.86M | 66.52M |
| Net Income | 38.38M | 32.56M | 24.05M | 24.14M | 46.40M | 49.61M |
Balance Sheet | ||||||
| Total Assets | 4.03B | 4.14B | 4.01B | 3.83B | 3.61B | 3.50B |
| Cash, Cash Equivalents and Short-Term Investments | 477.56M | 639.50M | 788.04M | 689.28M | 689.01M | 951.65M |
| Total Debt | 374.04M | 376.41M | 392.63M | 592.64M | 485.86M | 199.87M |
| Total Liabilities | 3.75B | 3.88B | 3.79B | 3.60B | 3.40B | 3.24B |
| Stockholders Equity | 281.04M | 265.99M | 227.88M | 225.04M | 211.11M | 260.33M |
Cash Flow | ||||||
| Free Cash Flow | 49.38M | 43.15M | 13.67M | -11.14M | 38.13M | 49.13M |
| Operating Cash Flow | 50.45M | 46.48M | 39.81M | 25.25M | 59.44M | 57.88M |
| Investing Cash Flow | 108.38M | 93.30M | -27.34M | -168.68M | -357.83M | -537.21M |
| Financing Cash Flow | -70.34M | 87.83M | 165.65M | 182.25M | 132.11M | 275.72M |
West Bancorporation Technical Analysis
Positive
27.27
Price Trends
25.73
Positive
24.69
Positive
23.55
Positive
Market Momentum
0.59
Negative
65.21
Neutral
80.03
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 27.27 is above the 20-day moving average (MA) of 27.05, above the 50-day MA of 25.73, and above the 200-day MA of 23.55, indicating a bullish trend. The MACD of 0.59 indicates Negative momentum. The RSI at 65.21 is Neutral, neither overbought nor oversold. The STOCH value of 80.03 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $543.37M | 12.55 | 13.95% | 1.29% | 9.03% | 108.77% | |
77 Outperform | $401.26M | 14.31 | 13.11% | 2.10% | 4.72% | 3.36% | |
75 Outperform | $459.47M | 11.46 | 10.72% | 2.96% | 6.49% | 35.88% | |
75 Outperform | $512.85M | 10.77 | 16.44% | 1.78% | 6.51% | 38.77% | |
71 Outperform | $478.08M | 12.41 | 14.31% | 3.67% | 0.14% | 32.11% | |
68 Neutral | $488.11M | 14.21 | 5.85% | ― | 12.29% | 97.75% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
WTBA
West Bancorporation
28.25
10.71
61.10%
BWFG
Bankwell Financial Group
67.52
28.28
72.08%
FMAO
Farmers & Merchants Bancorp
33.59
9.79
41.15%
PDLB
Ponce Financial Group Inc
20.51
6.39
45.25%
OBT
Orange County Bancorp
38.27
14.40
60.33%
USCB
USCB Financial Holdings, Inc. Class A
22.43
6.43
40.17%
West Bancorporation Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
West Bancorporation Posts Strong Q2 2026 Results, Hikes Dividend
Positive
Jul 23, 2026
West Bancorporation, Inc., parent of community lender West Bank, reported strong second-quarter 2026 results, underscoring its position as a conservative, relationship-focused bank serving small- and mid-sized businesses and retail customers in Io...
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.