West Bancorporation, Inc. Announces Third Quarter 2025 Financial Results and Declares Quarterly Dividend

Core Insights - West Bancorporation, Inc. reported a strong third quarter in 2025 with net income of $9.3 million, an increase from $8.0 million in the previous quarter and $6.0 million in the same quarter of 2024 [1][2][3] Financial Performance - Net income for the first nine months of 2025 was $25.1 million, compared to $17.0 million for the same period in 2024 [1] - The company declared a quarterly dividend of $0.25 per common share, payable on November 19, 2025 [1] - Return on average equity improved to 15.25% in Q3 2025 from 13.65% in Q2 2025 and 10.41% in Q3 2024 [3][21] - Return on average assets increased to 0.92% in Q3 2025 from 0.80% in Q2 2025 and 0.60% in Q3 2024 [3][21] - The efficiency ratio improved to 54.06% in Q3 2025 from 56.45% in Q2 2025 and 63.28% in Q3 2024 [3][21] Loan and Deposit Trends - Loans increased by $42.5 million, or 1.4%, in Q3 2025, primarily due to growth in commercial real estate and commercial loans [6] - Deposits decreased by $85.5 million, or 2.5%, in Q3 2025, attributed to normal cash flow fluctuations in core public fund deposits [6] - The allowance for credit losses to total loans was 1.01% as of September 30, 2025, down from 1.03% at June 30, 2025 [6] Interest Income and Margin - Net interest income for Q3 2025 was $22.5 million, up from $21.4 million in Q2 2025 [6][17] - Net interest margin on a fully tax-equivalent basis was 2.36% for Q3 2025, compared to 2.27% in Q2 2025 and 1.91% in Q3 2024 [6][21] Credit Quality - The company reported no loans on nonaccrual status and no loans past due greater than 30 days as of September 30, 2025 [2] - Watch list loans increased from $10.8 million as of June 30, 2025, to $38.7 million as of September 30, 2025, primarily due to one customer relationship [6] Capital Ratios - The tangible common equity ratio was 6.40% as of September 30, 2025, up from 5.94% at June 30, 2025 [6][21] - Total risk-based capital ratio stood at 12.54% as of September 30, 2025, compared to 12.53% at June 30, 2025 [21]