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West Bancorporation, Inc. Announces Fourth Quarter and Year End 2024 Financial Results and Declares Quarterly Dividend

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]