West Bancorporation(US:WTBA)2025-04-24 11:13Financial 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].