West Bancorporation(WTBA) - 2024 Q4 - Annual Results

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].