West Bancorporation reports Q2 net income of $8 million

WEST DES MOINES, Iowa - West Bancorporation, Inc. (NASDAQ:WTBA), parent company of West Bank, with a market capitalization of $327.8 million, reported second quarter 2025 net income of $8 million, or $0.47 per diluted share, compared to $7.8 million in the first quarter and $5.2 million in the same period last year. According to InvestingPro analysis, the company is currently trading near its Fair Value, with a P/E ratio of 12.49.

The company’s board declared a quarterly dividend of $0.25 per common share, payable August 20 to stockholders of record as of August 6. InvestingPro data shows the company has maintained dividend payments for 27 consecutive years, with a current dividend yield of 5.16%.

For the first half of 2025, West Bancorporation posted net income of $15.8 million, or $0.93 per diluted share, up from $11 million, or $0.65 per share, in the first half of 2024.

Net interest income for the second quarter was $21.4 million, compared to $20.9 million in the previous quarter and $17.2 million a year earlier. The net interest margin on a fully tax-equivalent basis was 2.27%, relatively unchanged from 2.28% in the first quarter but improved from 1.86% in the second quarter of 2024.

Total loans decreased by $50.1 million during the quarter, primarily due to commercial and commercial real estate loan reductions, partially offset by an increase in construction loans. The company attributed the decrease to customers selling business assets and refinancing commercial real estate in the secondary market.

Deposits increased by $67.5 million, or 2% in the second quarter. Excluding brokered deposits, which decreased by $127.2 million, core deposits grew by $194.7 million or 6.5%. The company noted that a local municipal customer deposited approximately $243 million in bond proceeds expected to be withdrawn over 24 months.

The efficiency ratio was 56.45% for the quarter, compared to 56.37% in the previous quarter and 67.14% a year ago.

West Bancorporation reported no loans on nonaccrual status and no loans past due greater than 90 days as of June 30, 2025. The allowance for credit losses to total loans was 1.03%.

The information in this article is based on a company press release statement. For deeper insights into West Bancorporation’s financial health and performance metrics, including additional ProTips and comprehensive analysis, check out the full research report available on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.

In other recent news, West Bancorporation reported its first-quarter 2025 earnings, exceeding analyst expectations. The company achieved an earnings per share (EPS) of $0.46, surpassing the forecasted $0.40. Revenue also outperformed projections, reaching $23.1 million compared to the anticipated $21.7 million. Despite these positive financial results, the company’s stock experienced a decline, attributed to broader market conditions and specific company challenges. Additionally, Piper Sandler initiated coverage on West Bancorporation with a Neutral rating and set a price target of $21.50. This target reflects a valuation of 10.0 times the firm’s 2026 estimated earnings per share, aligning closely with peer valuations. These developments offer insights into the company’s recent performance and market position.

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