PART I. FINANCIAL INFORMATION Item 1. Financial Statements West Bancorporation's unaudited consolidated financial statements for Q2 2025 detail its financial position and performance Consolidated Balance Sheets Consolidated Balance Sheet Highlights (as of June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | Total Assets | $4,056,669 | $4,014,991 | | Loans, net | $2,935,818 | $2,974,428 | | Securities available for sale | $536,709 | $544,565 | | Total Liabilities | $3,815,739 | $3,787,116 | | Total Deposits | $3,391,993 | $3,357,596 | | Total Stockholders' Equity | $240,930 | $227,875 | Consolidated Statements of Income Income Statement Summary (Three Months Ended June 30) | Metric (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net Interest Income | $21,419 | $17,230 | | Credit Loss Expense | $0 | $0 | | Noninterest Income | $2,410 | $2,346 | | Noninterest Expense | $13,485 | $13,194 | | Net Income | $7,979 | $5,192 | Income Statement Summary (Six Months Ended June 30) | Metric (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net Interest Income | $42,274 | $33,980 | | Credit Loss Expense | $0 | $0 | | Noninterest Income | $4,653 | $4,645 | | Noninterest Expense | $26,548 | $25,062 | | Net Income | $15,821 | $11,001 | Earnings Per Share (EPS) | Period | Diluted EPS 2025 | Diluted EPS 2024 | | :--- | :--- | :--- | | Three Months Ended June 30 | $0.47 | $0.31 | | Six Months Ended June 30 | $0.93 | $0.65 | Consolidated Statements of Comprehensive Income (Loss) - Comprehensive income for the six months ended June 30, 2025 was $21.3 million, a significant increase from $7.1 million in the same period of 2024, driven by higher net income and positive other comprehensive income from unrealized gains on securities14 Consolidated Statements of Stockholders' Equity - Total stockholders' equity increased from $227.9 million at year-end 2024 to $240.9 million at June 30, 2025, primarily due to net income of $15.8 million and other comprehensive income of $5.5 million, partially offset by cash dividends of $8.4 million17 Consolidated Statements of Cash Flows Cash Flow Summary (Six Months Ended June 30) | Activity (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $23,276 | $16,123 | | Net Cash from Investing Activities | $56,126 | $(62,058) | | Net Cash from Financing Activities | $22,321 | $130,397 | | Net Increase in Cash | $101,723 | $84,462 | Notes to Consolidated Financial Statements - The company's loan portfolio is primarily composed of commercial real estate ($1.88 billion), commercial loans ($501 million), and construction/land development loans ($459 million)38 - The Allowance for Credit Losses (ACL) was $30.5 million as of June 30, 2025, with no provision for credit loss expense recorded in the first six months of 202541 - The company utilizes interest rate swaps and collars to manage interest rate risk, with derivatives designated as cash flow hedges totaling a notional amount of $495 million as of June 30, 202579 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management's discussion highlights strong Q2 and H1 2025 performance, driven by increased net interest income and robust credit quality Overview Q2 2025 Performance Highlights vs. Q2 2024 | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Income (in thousands) | $7,979 | $5,192 | | Diluted EPS | $0.47 | $0.31 | | Return on Average Assets (ROA) | 0.80% | 0.53% | | Return on Average Equity (ROE) | 13.65% | 9.50% | - The increase in net interest income for Q2 2025 was primarily due to higher interest income on deposits with banks and lower interest expense on deposits and borrowings121 - Credit quality remained strong, with the ratio of nonperforming loans to total assets at 0.00% as of June 30, 2025126 Results of Operations - Net interest margin on a fully taxable equivalent (FTE) basis increased by 41 basis points to 2.27% for Q2 2025 compared to 1.86% in Q2 2024141 - No credit loss expense was recorded for loans in the first six months of 2025 or 2024, reflecting stable credit quality148 - Noninterest expense for the six months ended June 30, 2025 increased by $1.5 million (5.9%) compared to the same period in 2024, primarily due to higher salaries, occupancy, and equipment costs related to new buildings157158 - The effective tax rate increased to 22.4% for the first six months of 2025 from 18.9% in the prior year, mainly due to the expiration of a new market tax credit at the end of 2024160 Financial Condition - Total assets grew to $4.06 billion at June 30, 2025, from $4.01 billion at year-end 2024162 - Loans outstanding decreased by $38.5 million (1.3%) during the first six months of 2025, primarily due to declines in construction and commercial loans126166 - Deposits increased by $34.4 million (1.0%) in the first half of 2025, with core deposits growing by $92.5 million (excluding brokered deposits), aided by a large municipal deposit of $243 million170 - The company and West Bank met all capital adequacy requirements as of June 30, 2025, with a consolidated Tier 1 Capital Ratio of 9.89%179181 Item 3. Quantitative and Qualitative Disclosures About Market Risk The company manages interest rate risk using an earnings simulation model, showing sensitivity to rate changes Net Interest Income Sensitivity Analysis (at June 30, 2025) | Change in Interest Rates | % Change in NII (1-Year Horizon) | | :--- | :--- | | +300 bps | (7.68)% | | +200 bps | (5.03)% | | +100 bps | (2.46)% | | -100 bps | +2.24% | | -200 bps | +3.64% | | -300 bps | +4.36% | Item 4. Controls and Procedures Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2025187 - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal controls188 PART II. OTHER INFORMATION Item 1. Legal Proceedings The company is not involved in any material pending legal proceedings beyond routine litigation - The company reports no material pending legal proceedings outside of ordinary routine litigation190 Item 1A. Risk Factors No material changes to risk factors have been reported since the last Form 10-K filing - No material changes to risk factors were reported since the last Form 10-K filing191 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds The company reported no unregistered sales of equity securities or related use of proceeds - The company reported no unregistered sales of equity securities192 Item 6. Exhibits This section lists the exhibits filed with the report, including CEO/CFO certifications and XBRL data files - Exhibits filed with the report include Sarbanes-Oxley Act certifications (31.1, 31.2, 32.1, 32.2) and XBRL data files196
West Bancorporation(WTBA) - 2025 Q2 - Quarterly Report