Core Insights - West Bancorporation, Inc. reported a net income of $7.8 million for Q1 2025, an increase from $7.1 million in Q4 2024 and $5.8 million in Q1 2024, reflecting improved financial performance [1][2][5] - The Board of Directors declared a quarterly dividend of $0.25 per common share, payable on May 21, 2025 [1] Financial Performance - Net interest margin improved to 2.28% in Q1 2025 from 1.98% in Q4 2024 and 1.88% in Q1 2024, driven by a decrease in deposit rates [5][9][20] - Net interest income for Q1 2025 was $20.9 million, up from $19.4 million in Q4 2024 and $16.8 million in Q1 2024 [5][18] - The efficiency ratio improved to 56.37% in Q1 2025 from 60.79% in Q4 2024 and 62.04% in Q1 2024, indicating better operational efficiency [5][9][20] Loan and Deposit Trends - Loans increased by $11.6 million in Q1 2025, primarily due to growth in commercial and commercial real estate loans, despite a decline in construction loans [5][9] - Total deposits decreased by $33.1 million, or 1.0%, in Q1 2025, with brokered deposits increasing to $335.5 million from $266.4 million in Q4 2024 [5][9] - Year-over-year, loans increased by $36.3 million, or 1.2%, while deposits rose by $259.5 million, or 8.5% [7][9] Credit Quality - The company maintained strong credit quality metrics, with no loans past due greater than 90 days as of March 31, 2025 [2][5] - The allowance for credit losses to total loans remained stable at 1.01% [5][9] Shareholder Information - Basic earnings per common share for Q1 2025 were $0.47, up from $0.42 in Q4 2024 and $0.35 in Q1 2024 [18][20] - The tangible common equity ratio increased to 5.97% as of March 31, 2025, compared to 5.68% at the end of Q4 2024 [9][20]

Financial Performance - Net income for Q1 2025 was $7,842,000, or $0.46 per diluted common share, a 35% increase from $5,809,000, or $0.35 per diluted common share in Q1 2024[115]. - The return on average assets for Q1 2025 was 0.81%, up from 0.61% in Q1 2024[115]. - The return on average equity increased to 13.84% in Q1 2025 from 10.63% in Q1 2024[115]. - Noninterest income decreased by $56,000 in Q1 2025 compared to the same period in 2024[117]. - Noninterest income totaled $2,243 for the three months ended March 31, 2025, down from $2,299 in the same period of 2024, a decrease of 2.44%[145]. - Total noninterest expense increased to $13,063 for the three months ended March 31, 2025, up from $11,868 in 2024, reflecting a rise of 10.07%[147]. - The income tax expense for the three months ended March 31, 2025, was $2,193, representing 21.9% of pre-tax income, compared to $1,372 or 19.1% in 2024[149]. Interest Income and Margin - Net interest income increased by $4,105,000, or 24.5%, to $20,855,000 in Q1 2025 compared to $16,750,000 in Q1 2024, driven by higher interest income on loans and deposits[116]. - The net interest margin on a fully taxable equivalent (FTE) basis improved to 2.28% in Q1 2025 from 1.88% in Q1 2024[111]. - Net interest income for the three months ended March 31, 2025, increased by $4,089, or 24.29%, compared to the same period in 2024, reaching $20,921[132]. - The net interest margin (FTE) for the three months ended March 31, 2025, increased by 40 basis points to 2.28% compared to 1.88% for the same period in 2024[133]. - The yield on the loan portfolio increased by 3 basis points for the three months ended March 31, 2025, compared to the same period in 2024[134]. - The rate paid on deposits decreased by 42 basis points for the three months ended March 31, 2025, compared to the same period in 2024[136]. - The Federal Reserve decreased the target federal funds interest rate by a total of 100 basis points from September through December of 2024, impacting net interest margin comparability[132]. Loans and Deposits - Total loans outstanding rose by $11,611,000, or 0.4%, to $3,016,471,000 as of March 31, 2025[118]. - The average balance of loans increased by $66,446, or 2.25%, for the three months ended March 31, 2025, totaling $3,016,118[129]. - Loans outstanding increased by $11,611 to $3,016,471 as of March 31, 2025, with commercial real estate loans up by $48,135 and commercial loans up by $17,035[154]. - Deposits decreased by $33,078, or 1.0 percent, during the first three months of 2025, with brokered deposits increasing to $335,494[158]. - The average balance of deposits increased by $335,243, or 13.81%, for the three months ended March 31, 2025, totaling $2,762,281[136]. - The Company had brokered deposits totaling $335,494 as of March 31, 2025, which included fixed-rate and variable-rate deposits with terms extending into 2026[161]. Credit Losses and Allowance - The allowance for credit losses remained stable at 1.01% of total outstanding loans as of March 31, 2025[118]. - The allowance for credit losses was deemed adequate by management, with no credit loss expense recorded for both the three months ended March 31, 2025, and March 31, 2024[138]. - The allowance for credit losses increased to $30,526 as of March 31, 2025, from $28,373 as of March 31, 2024, a change of $2,153[143]. - The ratio of allowance for credit losses to average loans outstanding was 1.01% as of March 31, 2025, compared to 0.96% in 2024[143]. - Nonperforming loans rose to $181 as of March 31, 2025, compared to $133 as of December 31, 2024, reflecting an increase of 48[157]. Assets and Equity - Total assets decreased to $3,986,669 as of March 31, 2025, from $4,014,991 as of December 31, 2024[151]. - The Company reported total stockholders' equity of $237,873 as of March 31, 2025, an increase from $227,875 at December 31, 2024, reflecting a growth of about 4.4%[163]. - The Company’s tangible common equity as a percent of tangible assets increased to 5.97% as of March 31, 2025, from 5.68% as of December 31, 2024[163]. - The Company's total capital ratio to risk-weighted assets was 12.18% as of March 31, 2025, compared to 12.11% as of December 31, 2024, indicating a slight improvement[167]. Dividends and Liquidity - A quarterly cash dividend of $0.25 per common share was declared, payable on May 21, 2025[122]. - The Company had $270,000 of FHLB advances outstanding as of March 31, 2025, hedged with long-term interest rate swaps[159]. - As of March 31, 2025, the Company had liquid assets of $210,610, down from $243,478 as of December 31, 2024, indicating a decrease of approximately 13.4%[160]. - The Company had additional borrowing capacity of approximately $635,000 from the FHLB and $119,000 through the Federal Reserve discount window as of March 31, 2025[161]. - The Company’s net cash from operating activities contributed $9,749 to liquidity for the three months ended March 31, 2025[161]. Commitments and Projections - The Company had remaining commitments to invest in qualified affordable housing projects totaling $663 as of March 31, 2025, down from $861 as of December 31, 2024[162]. - The estimated change in net interest income over a one-year horizon showed a potential decrease of $(9,359) or (9.35)% with a 300 basis points rise in interest rates[172]. - The Company and West Bank met all capital adequacy requirements as of March 31, 2025, ensuring compliance with regulatory standards[164].

[Financial Highlights and CEO Commentary](index=1&type=section&id=Financial%20Highlights%20and%20CEO%20Commentary) West Bancorporation reported strong Q1 2025 results, showing improved profitability, efficiency, and excellent credit quality Q1 2025 Key Financial Results | Indicator | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Net Income | $7.8 million | $7.1 million | $5.8 million | | Diluted EPS | $0.46 | $0.42 | $0.35 | | Return on average equity | 13.84 % | 12.24 % | 10.63 % | | Efficiency ratio (non-GAAP) | 56.37 % | 60.79 % | 62.04 % | | Nonperforming assets to total assets | 0.00 % | 0.00 % | 0.01 % | - The Board of Directors declared a regular quarterly dividend of **$0.25 per common share**, payable on May 21, 2025, to stockholders of record on May 7, 2025[1](index=1&type=chunk) - CEO David Nelson noted continued improvements in net interest margin and efficiency ratio, modest loan growth as expected, and best-in-class credit quality metrics[2](index=2&type=chunk) - As of March 31, 2025, the company had **no loans past due over 90 days** and only one loan past due over 30 days with an insignificant balance of $181 thousand[2](index=2&type=chunk) [Quarterly Performance Comparison](index=1&type=section&id=Quarterly%20Performance%20Comparison) Compares Q1 2025 financial performance to prior quarters, detailing changes in loans, deposits, and profitability [Q1 2025 vs. Q4 2024](index=1&type=section&id=First%20Quarter%202025%20Compared%20to%20Fourth%20Quarter%202024%20Overview) Compares Q1 2025 performance against Q4 2024, highlighting changes in loans, deposits, and key financial ratios - Loans increased by **$11.6 million**, driven by commercial and commercial real estate loans[5](index=5&type=chunk) - **No credit loss expense** was recorded in Q1 2025, compared to a $1.0 million expense in Q4 2024[5](index=5&type=chunk) - Net interest margin (FTE, non-GAAP) improved to **2.28%** from 1.98% in Q4 2024, primarily due to a 38 basis point decrease in the cost of deposits[7](index=7&type=chunk) - The efficiency ratio (non-GAAP) improved to **56.37%** from 60.79% in the prior quarter, driven by higher net interest income and lower noninterest expense[7](index=7&type=chunk) - Deposits decreased by **$33.1 million**. However, this included a **$69.1 million increase** in brokered deposits, meaning non-brokered deposits decreased by **$102.2 million** due to normal cash flow fluctuations of core depositors[7](index=7&type=chunk) [Q1 2025 vs. Q1 2024](index=3&type=section&id=First%20Quarter%202025%20Compared%20to%20First%20Quarter%202024%20Overview) Compares Q1 2025 performance against Q1 2024, detailing year-over-year changes in loans, deposits, and key ratios - Loans grew by **$36.3 million**, or 1.2%, year-over-year[7](index=7&type=chunk) - Deposits increased by **$259.5 million**, or 8.5%, year-over-year. Excluding brokered deposits, core deposits grew by **$320.4 million**, or 12.0%[7](index=7&type=chunk) - Borrowed funds decreased from **$639.7 million to $391.4 million**, as deposit growth was used to reduce wholesale funding[7](index=7&type=chunk) - Net interest margin (FTE, non-GAAP) expanded to **2.28%** from 1.88% in Q1 2024, driven by a 42 basis point decrease in the cost of deposits and a shift from higher-cost borrowings to deposits[7](index=7&type=chunk) - The efficiency ratio (non-GAAP) improved to **56.37%** from 62.04% year-over-year, mainly due to higher net interest income[7](index=7&type=chunk) [Financial Statements Analysis](index=5&type=section&id=Financial%20Statements%20Analysis) Presents West Bancorporation's detailed unaudited financial statements, including balance sheet, income statement, and credit quality [Balance Sheet](index=5&type=section&id=Balance%20Sheet) Presents the condensed balance sheet as of March 31, 2025, detailing assets, liabilities, and equity Condensed Balance Sheet (As of March 31, 2025) | Account | Amount (in thousands) | | :--- | :--- | | Total Assets | $3,986,669 | | Loans, net | $2,985,945 | | Total Deposits | $3,324,518 | | Total Borrowings | $391,445 | | Total Stockholders' Equity | $237,873 | Loan Portfolio Composition (As of March 31, 2025) | Loan Type | Amount (in thousands) | | :--- | :--- | | Commercial | $531,267 | | Real estate - Commercial | $1,909,330 | | Real estate - Construction | $451,230 | | Other Real Estate & Consumer | $127,576 | | **Total Loans** | **$3,019,403** | Deposit Composition (As of March 31, 2025) | Deposit Type | Amount (in thousands) | | :--- | :--- | | Noninterest-bearing demand | $519,771 | | Interest-bearing demand | $517,409 | | Savings and money market | $1,633,612 | | Time deposits | $653,726 | | **Total Deposits** | **$3,324,518** | [Income Statement](index=7&type=section&id=Income%20Statement) Presents the consolidated income statement for Q1 2025, detailing revenues and expenses Consolidated Statement of Income (For the Quarter Ended March 31, 2025) | Account | Amount (in thousands) | | :--- | :--- | | Net Interest Income | $20,855 | | Credit Loss Expense | $0 | | Total Noninterest Income | $2,243 | | Total Noninterest Expense | $13,063 | | Income Before Income Taxes | $10,035 | | **Net Income** | **$7,842** | - Net interest income for Q1 2025 was **$20.9 million**, an increase from **$19.4 million** in Q4 2024 and **$16.8 million** in Q1 2024[14](index=14&type=chunk) - Total interest income was **$46.1 million**, while total interest expense was **$25.3 million** for Q1 2025[14](index=14&type=chunk) [Credit Quality](index=1&type=section&id=Credit%20Quality) Details the company's credit quality metrics, including nonperforming assets and allowance for credit losses - The ratio of nonperforming assets to total assets was **0.00%** as of March 31, 2025[2](index=2&type=chunk)[15](index=15&type=chunk) - The allowance for credit losses (ACL) to total loans was stable at **1.01%** at March 31, 2025, the same as at December 31, 2024[5](index=5&type=chunk)[15](index=15&type=chunk) Loan Credit Quality Breakdown (As of March 31, 2025) | Quality Rating | Amount (in thousands) | | :--- | :--- | | Pass | $3,011,231 | | Watch | $7,991 | | Substandard | $181 | | Doubtful | $0 | | **Total Loans** | **$3,019,403** | [Shareholder Information](index=1&type=section&id=Shareholder%20Information) Details key shareholder metrics, including per-share data, dividends, and regulatory capital, reflecting financial health [Common Share Data and Dividends](index=1&type=section&id=Common%20Share%20Data%20and%20Dividends) Presents per-share data and dividend information for common shares, highlighting shareholder returns - A quarterly dividend of **$0.25 per common share** was declared[1](index=1&type=chunk) Per Share Data (As of/For the Quarter Ended March 31, 2025) | Metric | Value | | :--- | :--- | | Diluted Earnings per Share | $0.46 | | Dividends per Common Share | $0.25 | | Book Value per Common Share | $14.06 | | Closing Stock Price | $19.94 | | Annualized Dividend Yield | 5.02% | [Regulatory Capital Ratios](index=8&type=section&id=Regulatory%20Capital%20Ratios) Details the company's consolidated and West Bank regulatory capital ratios, demonstrating financial strength Consolidated Capital Ratios (As of March 31, 2025) | Ratio | Value % | | :--- | :--- | | Common equity tier 1 ratio | 9.02% | | Tier 1 risk-based capital ratio | 9.59% | | Total risk-based capital ratio | 12.18% | | Tier 1 leverage capital ratio | 8.36% | West Bank Capital Ratios (As of March 31, 2025) | Ratio | Value % | | :--- | :--- | | Common equity tier 1 ratio | 11.99% | | Tier 1 risk-based capital ratio | 11.99% | | Total risk-based capital ratio | 12.90% | | Tier 1 leverage capital ratio | 10.46% | [Non-GAAP Financial Measures](index=9&type=section&id=NON-GAAP%20FINANCIAL%20MEASURES) Reconciles non-GAAP financial measures, including FTE net interest income and adjusted efficiency ratio, to GAAP equivalents - Management believes non-GAAP measures like FTE net interest margin and the adjusted efficiency ratio provide useful information for analyzing financial performance and are standard measures for comparison in the banking industry[19](index=19&type=chunk) Reconciliation of Net Interest Margin (FTE, non-GAAP) | (in thousands) | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Net interest income (GAAP) | $20,855 | $19,422 | $16,750 | | Tax-equivalent adjustment | $66 | $16 | $82 | | Net interest income (FTE) | $20,921 | $19,438 | $16,832 | | **Net interest margin (FTE)** | **2.28%** | **1.98%** | **1.88%** | Reconciliation of Efficiency Ratio (Adjusted, FTE, non-GAAP) | (in thousands) | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Adjusted Income | $23,172 | $22,040 | $19,131 | | Noninterest Expense | $13,063 | $13,399 | $11,868 | | **Efficiency Ratio (non-GAAP)** | **56.37%** | **60.79%** | **62.04%** |

Part I [ITEM 1. BUSINESS](index=6&type=section&id=Item%201.%20Business) West Bancorporation, Inc. is a financial holding company owning West Bank, a community bank serving businesses in Iowa and Minnesota, with **$3.0 billion** in loans and **$3.4 billion** in deposits by year-end 2024 [General Development of Business](index=6&type=section&id=General%20Development%20of%20Business) West Bancorporation, Inc., a financial holding company for West Bank, grew loans to **$3.0 billion** and deposits to **$3.4 billion** in 2024, maintaining dividends and a strong capital position - West Bancorporation, Inc. is a financial holding company whose primary activity is owning West Bank, an Iowa-chartered community bank organized in 1893. The company operates in central Iowa, eastern Iowa, and southern Minnesota[17](index=17&type=chunk)[19](index=19&type=chunk) Year-End Financial Metrics (2023 vs. 2024) | Metric | 2024 | 2023 | Change | | :--- | :--- | :--- | :--- | | Total Loans | $3.0 billion | $2.9 billion | +2.6% | | Total Deposits | $3.4 billion | $3.0 billion | +12.9% | - The company paid cash dividends totaling **$1.00 per share** in 2024 and declared a quarterly dividend of **$0.25 per share** in January 2025. The tangible common equity ratio was **5.68%** at the end of 2024, compared to **5.88%** at the end of 2023[21](index=21&type=chunk) [Description of the Company's Business](index=7&type=section&id=Description%20of%20the%20Company%27s%20Business) West Bank offers full-service community banking, targeting small- to medium-sized businesses in stable Iowa and Minnesota markets through personalized service and competitive offerings - West Bank offers a full range of services including commercial, real estate, and consumer loans; trust services; and various deposit accounts. It also provides online/mobile banking and treasury management services for businesses[22](index=22&type=chunk)[23](index=23&type=chunk) - The bank's strategy targets small- to medium-sized businesses, leveraging its local presence and expertise to offer personalized financial services[24](index=24&type=chunk) - The company operates in diversified and economically stable markets in Iowa and Minnesota, which are home to major employers like Principal Financial Group, Mayo Clinic, and IBM. As of December 31, 2024, unemployment rates in its markets were below the national rate of **4.1%**[25](index=25&type=chunk)[26](index=26&type=chunk) - West Bank faces high competition from local, regional, and national banks, as well as non-bank entities like FinTech companies. It competes by offering local decision-making authority, flexible loan arrangements, and personalized service[27](index=27&type=chunk)[28](index=28&type=chunk) [Human Capital Management](index=8&type=section&id=Human%20Capital%20Management) The company's success is driven by its **189 employees**, with a diverse workforce (**59% female**, **22% diverse**) and initiatives supporting female leadership, resulting in high retention and low turnover - The company employs **180 full-time** and **9 part-time employees**. The workforce is approximately **59% female** and **22% culturally or ethnically diverse**[31](index=31&type=chunk) - The West Bank Women's Impact Network (WIN) has been active since 2014 to support women in leadership. Women comprise **27%** of the Board of Directors, **20%** of the executive management team, and **45%** of West Bank officers[32](index=32&type=chunk) - The company maintains a stable workforce with an average employee tenure of **nine years** and an average officer tenure of over **12 years**. Non-teller turnover was approximately **7%** in 2024, down from **10%** in 2023[35](index=35&type=chunk) [SUPERVISION AND REGULATION](index=9&type=section&id=SUPERVISION%20AND%20REGULATION) The company and West Bank operate under extensive federal and state regulations, including Basel III capital rules, with oversight from the Federal Reserve and FDIC, managing significant CRE loan concentrations - The Company and West Bank are extensively regulated by federal and state agencies, including the Federal Reserve, FDIC, and CFPB, with a primary focus on protecting depositors[38](index=38&type=chunk) - As a financial holding company, the Company has broader flexibility for financial activities but must ensure both the holding company and West Bank remain well-capitalized and well-managed[42](index=42&type=chunk)[45](index=45&type=chunk) - The Company and West Bank are subject to the Basel III Rule for capital requirements, which mandates minimum ratios for Common Equity Tier 1, Tier 1, and Total Capital. As of December 31, 2024, both entities were well-capitalized and in compliance with the capital conservation buffer[61](index=61&type=chunk)[67](index=67&type=chunk) - West Bank has historically exceeded the **300%** regulatory guideline for Commercial Real Estate (CRE) loans as a percentage of capital and has implemented additional monitoring processes to manage this concentration risk[89](index=89&type=chunk)[90](index=90&type=chunk) [ITEM 1A. RISK FACTORS](index=22&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant credit, accounting, operational, market, and regulatory risks, including high commercial real estate loan concentration, cybersecurity threats, interest rate sensitivity, and stock trading volatility [Risks Related to Credit Quality](index=22&type=section&id=Risks%20Related%20to%20Credit%20Quality) The company faces substantial credit risk due to its high concentration in commercial and commercial real estate (CRE) loans, with CRE concentrations exceeding regulatory guidelines at **110%** and **422%** of risk-based capital - The company's loan portfolio has a significant amount of commercial real estate, construction, and commercial loans. Repayment of these loans is dependent on the borrowers' successful business operations and can be impacted by economic downturns[101](index=101&type=chunk) - Commercial real estate (CRE) loans constituted a significant portion of the total loan portfolio as of December 31, 2024. The value of real estate can fluctuate significantly, and repayment often depends on income from the properties[102](index=102&type=chunk) - The company's CRE lending concentrations exceed federal guidelines. As of December 31, 2024, construction and land development loans were **110%** of total risk-based capital (guideline is **100%**), and total CRE-related loans were **422%** (guideline is **300%**), requiring heightened risk management[104](index=104&type=chunk) [Risks Related to Accounting Policies and Estimates](index=24&type=section&id=Risks%20Related%20to%20Accounting%20Policies%20and%20Estimates) The company's financial reporting is exposed to risks from subjective accounting estimates, particularly the allowance for credit losses, and **$128.8 million** in unrealized losses in its securities portfolio - The determination of the allowance for credit losses (ACL) is subjective and requires significant estimates. An insufficient allowance could adversely affect financial condition if charge-offs exceed the allowance[106](index=106&type=chunk)[107](index=107&type=chunk) - As of December 31, 2024, the company had **$128.8 million** of net unrealized losses in its securities portfolio. If forced to sell these securities before maturity, the company would recognize a charge to earnings[112](index=112&type=chunk) [Risks Related to Information Security and Business Interruption](index=26&type=section&id=Risks%20Related%20to%20Information%20Security%20and%20Business%20Interruption) The company faces significant risks from increasingly sophisticated cybersecurity threats, including AI-driven fraud, and is highly dependent on third-party IT systems, making it vulnerable to operational disruptions and data breaches - The company is susceptible to fraudulent activity and cybersecurity incidents, including phishing, wire fraud, and malware, which are becoming more sophisticated with tools like artificial intelligence[114](index=114&type=chunk)[115](index=115&type=chunk) - The use of artificial intelligence, either internally or by third-party partners, presents risks such as flawed algorithms, data bias, and potential legal liability or reputational harm[119](index=119&type=chunk) - The business is highly dependent on third-party servicers for major systems like data processing and mobile/online banking. A failure or interruption of these systems could disrupt operations and harm financial condition[120](index=120&type=chunk) [Other Risks Related to West Bank's Operations and the Economy](index=27&type=section&id=Other%20Risks%20Related%20to%20West%20Bank%27s%20Operations%20and%20the%20Economy) The company faces liquidity risk from deposit withdrawals, intense market competition, and sensitivity to economic conditions like interest rate changes and inflation, with potential impacts on capital and dividends - The company is subject to liquidity risk. Borrowed funds decreased to **$392.6 million** at the end of 2024 from **$592.6 million** at the end of 2023, reflecting a reduction in FHLB advances and federal funds purchased[124](index=124&type=chunk)[125](index=125&type=chunk) - The company operates in highly competitive markets, facing pressure on loan and deposit pricing from other banks and non-bank financial service providers like FinTech companies[126](index=126&type=chunk) - Changes in interest rates significantly impact net interest income. The Federal Reserve's rate cuts in late 2024 and anticipated cuts in 2025 create uncertainty. The company's interest-bearing liabilities have a shorter duration than its assets, creating potential earnings volatility[138](index=138&type=chunk)[140](index=140&type=chunk) - Financial performance is dependent on domestic and international economic conditions, which can be affected by factors like inflation, unemployment, geopolitical conflicts (e.g., Russia-Ukraine, Israel-Palestine), and changes in trade or tax policies[142](index=142&type=chunk)[143](index=143&type=chunk) - Failure to maintain sufficient regulatory capital could adversely affect customer confidence, growth, funding costs, and the ability to pay dividends[145](index=145&type=chunk) [Risks Related to the Supervision and Regulation of the Banking Industry and Government Policies](index=33&type=section&id=Risks%20Related%20to%20the%20Supervision%20and%20Regulation%20of%20the%20Banking%20Industry%20and%20Government%20Policies) The company faces significant risks from extensive and complex banking regulations, primarily for depositor protection, and is highly sensitive to the Federal Reserve's monetary policies and interest rate changes - The company is subject to extensive and complex federal and state banking regulations, which primarily aim to protect depositors. Non-compliance can lead to penalties and reputational harm[146](index=146&type=chunk)[147](index=147&type=chunk) - The Federal Reserve's monetary policies, including adjustments to interest rates and the money supply, significantly affect the company's earnings and growth. Recent rate cuts in 2024 and anticipated cuts in 2025 introduce uncertainty[149](index=149&type=chunk)[150](index=150&type=chunk) [Other Risks Related to the Banking Industry in General](index=34&type=section&id=Other%20Risks%20Related%20to%20the%20Banking%20Industry%20in%20General) The company faces industry risks from rapid technological changes, the rise of non-bank financial alternatives leading to disintermediation, and climate change, which could impact operations, collateral, and compliance costs - Rapid technological changes in banking require substantial investment to adapt products and services. Failure to keep pace with competitors, who may have greater resources, could result in a competitive disadvantage[153](index=153&type=chunk) - The rise of alternative financial transaction methods and digital asset service providers could lead to "disintermediation," resulting in the loss of fee income and customer deposits[154](index=154&type=chunk)[155](index=155&type=chunk)[156](index=156&type=chunk) - Climate change poses risks through potential physical damage to collateralized property and transition risks from new regulations and changes in consumer behavior, which could negatively impact clients' financial conditions[157](index=157&type=chunk)[158](index=158&type=chunk) [Risks Related to West Bancorporation's Common Stock](index=35&type=section&id=Risks%20Related%20to%20West%20Bancorporation%27s%20Common%20Stock) Investment in the company's common stock carries risks including low trading volume leading to price volatility, potential dilution from future issuances, subordination to debt, and dividend payments contingent on earnings and regulatory approval - The company's common stock has a relatively small trading volume, which can lead to price volatility and make it difficult to buy or sell significant amounts without affecting the price[159](index=159&type=chunk) - As of December 31, 2024, the company had **$20.6 million** in junior subordinated debentures and **$60.0 million** in subordinated notes, which are senior to common stock in payment priority[162](index=162&type=chunk) - The company's ability to pay dividends is subject to limitations, including regulatory capital requirements and its dependence on dividends received from its subsidiary, West Bank[163](index=163&type=chunk)[164](index=164&type=chunk)[165](index=165&type=chunk) [ITEM 1B. UNRESOLVED STAFF COMMENTS](index=36&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved comments from the SEC staff - There are no unresolved comments from the SEC staff[168](index=168&type=chunk) [ITEM 1C. CYBERSECURITY](index=37&type=section&id=Item%201C.%20Cybersecurity) The company maintains a comprehensive cybersecurity risk management framework, overseen by the Board and management, employing layered controls, regular assessments, and training, while acknowledging potential future material impacts - The company has implemented an Information Security Program that includes policies, regular assessments, layered controls, and a third-party risk management program to manage cybersecurity threats[171](index=171&type=chunk)[174](index=174&type=chunk) - Cybersecurity risk oversight is handled by the Board of Directors and its Risk and Information Technology Committee, while day-to-day management is the responsibility of the management team and the Information Security Committee[173](index=173&type=chunk)[174](index=174&type=chunk) - While previously identified cybersecurity threats have not materially affected the company, it is acknowledged that future incidents could have a material adverse effect[172](index=172&type=chunk) [ITEM 2. PROPERTIES](index=38&type=section&id=Item%202.%20Properties) The company's headquarters is in West Des Moines, Iowa, with West Bank operating eleven locations, including six owned and four leased branches, plus a new owned office opened in Owatonna, Minnesota in January 2025 - The company's headquarters is at 3330 Westown Parkway in West Des Moines, Iowa[175](index=175&type=chunk) - West Bank operates ten branch offices in addition to its headquarters. Six are owned (in Coralville and Waukee, IA, and Rochester, St. Cloud, Mankato, and Owatonna, MN) and four are leased (in the Des Moines, IA area)[175](index=175&type=chunk) - A new, owned office in Owatonna, Minnesota was completed and opened in January 2025, replacing a leased office in the same city[176](index=176&type=chunk) [ITEM 3. LEGAL PROCEEDINGS](index=38&type=section&id=Item%203.%20Legal%20Proceedings) Neither the company nor West Bank is party to any material pending legal proceedings, beyond ordinary litigation incidental to their business - Neither the Company nor West Bank is party to any material pending legal proceedings, apart from ordinary routine litigation[177](index=177&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=38&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[178](index=178&type=chunk) Part II [ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES](index=39&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) West Bancorporation's common stock trades on Nasdaq under "WTBA", with **$1.00 per share** in dividends paid in 2024 and 2023, and its performance tracked against market indices - The company's common stock is traded on the Nasdaq Global Select Market under the symbol "WTBA". As of February 14, 2025, the closing price was **$22.20 per share**[181](index=181&type=chunk) - Total cash dividends paid were **$1.00 per common share** in both 2024 and 2023. The company intends to continue paying quarterly dividends, contingent on earnings and regulatory approval[182](index=182&type=chunk) Five-Year Cumulative Stock Performance (Indexed) | Index | 12/31/2019 | 12/31/2020 | 12/31/2021 | 12/31/2022 | 12/31/2023 | 12/31/2024 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | West Bancorporation, Inc. | 100.00 | 78.82 | 131.21 | 112.28 | 98.38 | 105.98 | | Nasdaq Composite Index | 100.00 | 144.92 | 177.06 | 119.45 | 172.77 | 223.87 | | S&P U.S. BMI Banks - Midwest Region Index | 100.00 | 85.98 | 113.59 | 98.03 | 100.08 | 122.10 | [ITEM 6. Reserved](index=41&type=section&id=Item%206.%20Reserved) This item is reserved [ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=41&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Net income in 2024 was **$24.1 million**, stable year-over-year, with total assets growing to **$4.0 billion**, loans to **$3.0 billion**, and deposits to **$3.4 billion**, while net interest margin compressed to **1.91%** and credit quality remained strong [Introduction](index=41&type=section&id=Introduction) The company's 2024 net income was **$24.1 million**, with diluted EPS of **$1.42**, and it aims for top-tier peer performance in metrics like **10.71%** return on average equity and **0.00%** nonperforming assets Financial Highlights (2022-2024) | Operating Results and Year-End Balances (in thousands) | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Net income | $24,050 | $24,137 | $46,399 | | Diluted earnings per common share | $1.42 | $1.44 | $2.76 | | Total assets | $4,014,991 | $3,825,758 | $3,613,218 | | Loans | $3,004,860 | $2,927,535 | $2,742,836 | | Deposits | $3,357,596 | $2,973,779 | $2,880,408 | | Stockholders' equity | $227,875 | $225,043 | $211,112 | Key Performance Ratios (2024) | Ratio | West Bancorporation, Inc. | Peer Group Range | | :--- | :--- | :--- | | Return on average equity | 10.71% | (11.08%) - 14.44% | | Efficiency ratio (non-GAAP) | 63.25% | 46.23% - 73.19% | | Nonperforming assets to total assets | 0.00% | 0.01% - 0.80% | [CRITICAL ACCOUNTING POLICIES AND ESTIMATES](index=43&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) The allowance for credit losses (ACL) is the company's most critical accounting policy, estimated using a cash flow-based model incorporating historical data, current conditions, and economic forecasts, with the ACL at **$30.4 million** or **1.01%** of loans in 2024 - The most critical accounting policy involves the allowance for credit losses (ACL), which requires significant management estimates and judgment[196](index=196&type=chunk) - The company uses a cash flow-based model to estimate expected credit losses, incorporating historical loss information, current conditions, and a four-quarter forecast period for economic metrics like the national unemployment rate and treasury rate spreads[198](index=198&type=chunk)[199](index=199&type=chunk) - The allowance for credit losses was **$30,432 thousand** (**1.01%** of loans) at year-end 2024, compared to **$28,342 thousand** (**0.97%** of loans) at year-end 2023[200](index=200&type=chunk) [RESULTS OF OPERATIONS - 2024 COMPARED TO 2023](index=45&type=section&id=Results%20of%20Operations%20-%202024%20Compared%20to%202023) Net income in 2024 was **$24.1 million**, stable year-over-year, driven by increased net interest income offset by lower noninterest income and higher noninterest expense, with the effective tax rate reduced to **12.3%** by an energy-related investment tax credit - Net income decreased slightly to **$24,050 thousand** in 2024 from **$24,137 thousand** in 2023. This was primarily due to higher noninterest expense and lower noninterest income, offset by increased net interest income[206](index=206&type=chunk)[207](index=207&type=chunk) - Credit loss expense was **$1,000 thousand** in 2024, consisting of a **$2,000 thousand** provision for loans offset by a **$1,000 thousand** benefit for unfunded commitments[208](index=208&type=chunk) - Noninterest income decreased by **16.2%** to **$8,434 thousand**, driven by a **$741 thousand** increase in realized securities losses and the non-recurrence of a **$691 thousand** gain from bank-owned life insurance in 2023[209](index=209&type=chunk)[214](index=214&type=chunk) - Noninterest expense increased by **5.6%** to **$51,353 thousand**, primarily due to higher occupancy and equipment costs (**$1,813 thousand**), technology and software (**$555 thousand**), and FDIC insurance (**$810 thousand**)[209](index=209&type=chunk)[217](index=217&type=chunk) - The effective tax rate dropped to **12.3%** in 2024 from **18.9%** in 2023, mainly due to a **$1,842 thousand** energy-related investment tax credit associated with the new headquarters building[219](index=219&type=chunk) [Financial Condition](index=51&type=section&id=Financial%20Condition) As of December 31, 2024, total assets reached **$4.0 billion**, with loans growing to **$3.0 billion** and deposits to **$3.4 billion**, while the securities portfolio held **$128.8 million** in unrealized losses and the tangible common equity ratio declined to **5.68%** [ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=62&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk, managed via earnings simulation, with a **100 basis point** rate rise estimated to decrease net interest income by **3.06%** and a **100 basis point** fall estimated to increase it by **2.27%** - The Company's main market risk is interest rate risk, which it manages using an earnings simulation approach overseen by its Asset Liability Committee[298](index=298&type=chunk)[299](index=299&type=chunk)[300](index=300&type=chunk) Sensitivity of Net Interest Income (at Dec 31, 2024) | Change in Interest Rates | $ Change (in thousands) | % Change | | :--- | :--- | :--- | | 300 basis points rising | $(8,155) | (8.54)% | | 200 basis points rising | $(5,060) | (5.30)% | | 100 basis points rising | $(2,928) | (3.06)% | | 100 basis points falling | $2,165 | 2.27% | | 200 basis points falling | $3,333 | 3.49% | | 300 basis points falling | $4,075 | 4.27% | [ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA](index=63&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for 2024, with RSM US LLP providing unqualified opinions on both financial statements and internal controls, identifying the allowance for credit losses as a critical audit matter [Report of Independent Registered Public Accounting Firm](index=63&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) RSM US LLP issued unqualified opinions on the company's 2024 and 2023 consolidated financial statements and internal controls, identifying the allowance for credit losses for loans as a critical audit matter due to subjective judgments - The auditor, RSM US LLP, issued an unqualified opinion, stating the financial statements are fairly presented in accordance with U.S. GAAP[305](index=305&type=chunk) - The auditor also issued an unqualified opinion on the effectiveness of the Company's internal control over financial reporting as of December 31, 2024[306](index=306&type=chunk)[316](index=316&type=chunk) - The allowance for credit losses for loans was identified as a critical audit matter because its estimation involves highly sensitive, subjective, and complex judgments regarding qualitative factors and forecasts[311](index=311&type=chunk)[312](index=312&type=chunk) [Consolidated Financial Statements](index=66&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements show total assets of **$4.01 billion** and net loans of **$2.97 billion** as of December 31, 2024, with net income of **$24.05 million** and total comprehensive income of **$18.22 million** for the year Consolidated Balance Sheet Highlights (As of Dec 31) | (in thousands) | 2024 | 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $243,478 | $65,357 | | Loans, net | $2,974,428 | $2,899,193 | | Total assets | $4,014,991 | $3,825,758 | | Total deposits | $3,357,596 | $2,973,779 | | Total liabilities | $3,787,116 | $3,600,715 | | Total stockholders' equity | $227,875 | $225,043 | Consolidated Income Statement Highlights (Year Ended Dec 31) | (in thousands) | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Net interest income | $71,362 | $69,031 | $91,740 | | Credit loss expense (benefit) | $1,000 | $700 | $(2,500) | | Noninterest income | $8,434 | $10,066 | $10,208 | | Noninterest expense | $51,353 | $48,611 | $45,051 | | Net income | $24,050 | $24,137 | $46,399 | [Notes to Consolidated Financial Statements](index=71&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, including ACL estimation and securities valuation, with the loan portfolio at **$3.0 billion**, ACL at **$30.4 million**, securities at **$544.6 million** with **$128.8 million** unrealized losses, deposits at **$3.4 billion**, and **$420 million** in interest rate swaps [ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE](index=109&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants regarding accounting principles, financial disclosure, or auditing scope within the last two years - There have been no changes in or disagreements with the Company's accountants in the prior two years[507](index=507&type=chunk) [ITEM 9A. CONTROLS AND PROCEDURES](index=109&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2024, with no material changes identified in Q4 2024 - The CEO and CFO concluded that the Company's disclosure controls and procedures were effective as of the end of the reporting period[508](index=508&type=chunk) - Management assessed and asserted that the Company maintained effective internal control over financial reporting as of December 31, 2024, based on the COSO framework[512](index=512&type=chunk) - There were no changes in internal control over financial reporting during the fourth quarter of 2024 that materially affected, or are reasonably likely to materially affect, the Company's internal controls[514](index=514&type=chunk) [ITEM 9B. OTHER INFORMATION](index=109&type=section&id=Item%209B.%20Other%20Information) No directors or executive officers adopted or terminated Rule 10b5-1 trading plans during the fourth quarter of 2024 - During the fourth quarter of 2024, no directors or executive officers adopted or terminated a Rule 10b5-1 trading plan[515](index=515&type=chunk) [ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTION](index=110&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20That%20Prevent%20Inspection) This item is not applicable to the company - Not applicable[516](index=516&type=chunk) Part III [ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE](index=111&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%2C%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the Proxy Statement, with the Audit Committee comprising four independent directors, three of whom are financial experts - Most information required for this item is incorporated by reference from the Company's definitive Proxy Statement to be filed by March 4, 2025[518](index=518&type=chunk) - The Company has a Code of Conduct for all directors, officers, and employees, available on its website[519](index=519&type=chunk) - The Audit Committee members are Steven T. Schuler (Chair), James W. Noyce, Rosemary Parson, and Therese M. Vaughan. All are independent, and Mr. Schuler, Mr. Noyce, and Dr. Vaughan are designated as audit committee financial experts[521](index=521&type=chunk) [ITEM 11. EXECUTIVE COMPENSATION](index=111&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the company's definitive Proxy Statement on Form DEF 14A - Information regarding executive compensation is incorporated by reference from the Company's definitive Proxy Statement[522](index=522&type=chunk) [ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS](index=111&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Security ownership information is incorporated by reference from the Proxy Statement, with **459,605** outstanding equity awards and **665,758** shares available for future issuance under the 2021 Equity Incentive Plan - Most information for this item is incorporated by reference from the Company's definitive Proxy Statement[526](index=526&type=chunk) Equity Compensation Plan Information (as of Dec 31, 2024) | Plan Category | Number of shares to be issued upon exercise (a) | Weighted-average exercise price (b) | Number of shares remaining available for future issuance (c) | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by stockholders | 459,605 | — | 665,758 | | Equity compensation plans not approved by stockholders | — | — | — | | Total | 459,605 | — | 665,758 | [ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE](index=112&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding certain relationships, related transactions, and director independence is incorporated by reference from the company's definitive Proxy Statement - Information regarding certain relationships, related transactions, and director independence is incorporated by reference from the Company's definitive Proxy Statement[527](index=527&type=chunk) [ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES](index=113&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the company's definitive Proxy Statement - Information regarding principal accountant fees and services is incorporated by reference from the Company's definitive Proxy Statement[528](index=528&type=chunk) Part IV [ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES](index=113&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section details the exhibits and financial statement schedules filed with the Form 10-K, including consolidated financial statements in Item 8, with other schedules omitted, and a comprehensive list of corporate and legal exhibits - The consolidated financial statements are filed under Item 8 of this Form 10-K[530](index=530&type=chunk) - All financial statement schedules have been omitted because they are not applicable or the required information is included in the financial statements or notes[532](index=532&type=chunk) - A comprehensive list of exhibits is provided, including corporate governance documents, debt agreements, management compensation plans, and required CEO/CFO certifications[532](index=532&type=chunk)[535](index=535&type=chunk)[536](index=536&type=chunk) [ITEM 16. FORM 10-K SUMMARY](index=117&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company has not provided a Form 10-K summary - None[537](index=537&type=chunk)

Financial Data and Key Metrics Changes - The company reported its financial performance as of December 31, 2024, with specific metrics to be discussed in detail during the call [5]. Business Line Data and Key Metrics Changes - Detailed performance metrics for various business lines will be provided in the earnings release, which is referenced for further information [5]. Market Data and Key Metrics Changes - The company will discuss market conditions and performance metrics during the call, with a focus on how these factors influence overall financial results [5]. Company Strategy and Development Direction and Industry Competition - The management team will outline the company's strategic direction and competitive positioning within the industry during the conference call [5]. Management's Comments on Operating Environment and Future Outlook - Management will provide insights into the current operating environment and future outlook, emphasizing the potential risks and uncertainties that may impact performance [4][5]. Other Important Information - The company has issued a fair disclosure statement, cautioning that forward-looking statements made during the call are subject to risks and uncertainties [4]. Q&A Session All Questions and Answers Question: What are the expectations for future financial performance? - Management will address projections and expectations for future financial performance during the Q&A session [4][5].

NASDAQ: WTBA Q4 2024 | Earnings Highlights 1 Disclaimers Certain statements in this presentation, other than purely historical information, including estimates, projections, statements relating to the Company's business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are "forward-looking statements" within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of ...

West Bancorp (WTBA) came out with quarterly earnings of $0.42 per share, beating the Zacks Consensus Estimate of $0.40 per share. This compares to earnings of $0.27 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5%. A quarter ago, it was expected that this holding company for West Bank would post earnings of $0.31 per share when it actually produced earnings of $0.35, delivering a surprise of 12.90%.Over the last four quarter ...

Financial Performance - West Bancorporation reported a net income of $24.1 million for 2024, consistent with 2023, but diluted earnings per share decreased slightly from $1.44 to $1.42 [1] - Fourth quarter 2024 net income was $7.1 million, up from $6.0 million in the third quarter and $4.5 million in the fourth quarter of 2023 [1] - The company declared a quarterly dividend of $0.25 per common share, payable on February 19, 2025 [1] Key Financial Metrics - Return on average equity was 12.24% for Q4 2024, up from 10.71% for the full year [4] - Return on average assets improved to 0.68% in Q4 2024 from 0.61% for the full year [4] - The efficiency ratio improved to 60.79% in Q4 2024 from 63.25% for the full year [4] Deposit and Loan Performance - Core deposits grew significantly in Q4 2024, leading to a 2.4% increase in total deposits and an 8.4% increase excluding brokered deposits [5] - Loans decreased by $16.4 million in Q4 2024 due to customer asset sales and refinancing, but increased by $77.3 million or 2.6% compared to December 31, 2023 [5][10] - The allowance for credit losses to total loans ratio increased to 1.01% at December 31, 2024 from 0.97% at September 30, 2024 [5] Net Interest Margin and Income - Net interest margin improved to 1.98% in Q4 2024 from 1.91% in Q3 2024 and 1.87% in Q4 2023 [10] - Net interest income increased to $19.4 million in Q4 2024 from $18.0 million in Q3 2024 and $16.4 million in Q4 2023 [10] - The cost of deposits decreased by 27 basis points in Q4 2024 due to changes in deposit mix and reductions in deposit pricing [10] Credit Quality and Risk Management - Credit quality remained strong with no loans past due greater than 30 days at year-end [2] - Nonperforming assets to total assets remained at 0.00% as of December 31, 2024 [4] - The credit loss expense for 2024 was $1.0 million, primarily due to adjustments in the commercial real estate segment [9] Strategic Initiatives and Investments - The company focused on core deposit growth through targeted relationship building and improved digital banking platforms [2] - Investments were made in retail online and mobile banking platforms, as well as fraud management tools [2] - The company sold $11.8 million of securities in December 2024, realizing a net loss of $1.2 million, with proceeds to be reinvested in the loan portfolio [10] Balance Sheet and Capital Position - Total assets increased to $4.0 billion at December 31, 2024 from $3.8 billion at December 31, 2023 [15] - The tangible common equity ratio decreased to 5.68% at December 31, 2024 from 5.90% at September 30, 2024 [10] - Borrowed funds decreased to $392.6 million at December 31, 2024 from $592.6 million at December 31, 2023 [10]

Financial Performance - The Company reported 2024 net income of $24.1 million, or $1.42 per diluted common share, compared to $24.1 million, or $1.44 per diluted common share in 2023[1]. - Fourth quarter 2024 net income was $7.1 million, or $0.42 per diluted common share, an increase from $6.0 million, or $0.35 per diluted common share in the third quarter of 2024[1]. - For the year ended December 31, 2024, total interest income increased to $190,066,000, up from $160,305,000 in 2023, representing a growth of 18.6%[18]. - Net income for the quarter ended December 31, 2024, was $7,097,000, compared to $5,952,000 in the previous quarter, reflecting a 19.2% increase[17]. - Basic earnings per common share for the quarter ended December 31, 2024, was $0.42, compared to $0.35 in the previous quarter, a rise of 20%[19]. - Adjusted income for the year ended December 31, 2024, was $81,197,000, compared to $80,048,000 for the previous year[26]. Asset and Deposit Growth - Total assets increased to $4,014,991 thousand as of December 31, 2024, up from $3,825,758 thousand a year earlier, representing a growth of 4.9%[15]. - Deposits increased to $3.4 billion at December 31, 2024, compared to $3.0 billion at December 31, 2023, with a 15.8 percent increase excluding brokered deposits[12]. - Total deposits reached $3,357,596 thousand, up 12.9% from $2,973,779 thousand a year ago, indicating strong customer retention and acquisition[16]. Loan Performance - Loans increased by $77.3 million, or 2.6 percent, at December 31, 2024, compared to December 31, 2023[7]. - Net loans stood at $2,974,428 thousand, a slight decrease from $2,991,802 thousand in the previous quarter, but an increase from $2,899,193 thousand year-over-year, reflecting a growth of 2.6%[16]. - The company reported a total of $3,008,013 thousand in loans, with commercial loans comprising $514,232 thousand, showing stability in the commercial lending segment[16]. - Average loans for the quarter ended December 31, 2024, were $3,007,558 thousand, compared to $2,857,594 thousand a year earlier, marking an increase of 5.2%[15]. Credit Quality and Risk Management - The allowance for credit losses to total loans was 1.01 percent at December 31, 2024, up from 0.97 percent at September 30, 2024[8]. - The allowance for credit losses was $30,432 thousand, showing a slight increase from $29,419 thousand in the previous quarter, indicating a cautious approach to credit risk management[16]. - The company maintained a strong credit quality with $2,999,531 thousand of loans classified as pass, indicating effective risk management practices[16]. Efficiency and Cost Management - The efficiency ratio improved to 60.79 percent in the fourth quarter of 2024, compared to 63.28 percent in the third quarter of 2024[8]. - Noninterest expense for the quarter ended December 31, 2024, was $13,399,000, an increase from $12,892,000 in the previous quarter[26]. - Efficiency ratio on an adjusted and FTE basis improved to 60.79% for the quarter ended December 31, 2024, compared to 63.28% in the previous quarter[26]. Interest Income and Expenses - The total interest expense for the year ended December 31, 2024, rose to $118,704,000, compared to $91,274,000 in 2023, an increase of 30.1%[18]. - Net interest income (GAAP) for the quarter ended December 31, 2024, was $19,422,000, an increase from $17,960,000 in the previous quarter[26]. - The net interest margin for the quarter ended December 31, 2024, improved to 1.98%, up from 1.91% in the previous quarter[21]. - Net interest margin on a fully taxable equivalent (FTE) basis was 1.98% for the quarter ended December 31, 2024, up from 1.91% in the previous quarter[26]. Stockholder Information - The Company declared a regular quarterly dividend of $0.25 per common share, payable on February 19, 2025[1]. - Stockholders' equity decreased to $227,875 thousand from $235,353 thousand in the previous quarter, reflecting a decrease of 3.5%[16]. - The closing stock price as of December 31, 2024, was $21.65, compared to $19.01 at the end of the previous quarter, an increase of 13.9%[19]. Regulatory and Reporting - The Company plans to file its report on Form 10-K with the SEC on or before February 20, 2025[10]. - The total risk-based capital ratio as of December 31, 2024, was 12.11%, slightly up from 11.95% in the previous quarter[20]. Noninterest Income - Total noninterest income for the year ended December 31, 2024, was $8,434,000, down from $10,066,000 in 2023, a decrease of 16.2%[18].

West Bancorp (WTBA) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Since a ch ...