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

Core Viewpoint - West Bancorporation, Inc. reported a significant increase in net income for 2025, reflecting strong performance and strategic management, with expectations for continued improvement in 2026 [1][2]. Financial Performance - The net income for 2025 was $32.6 million, or $1.92 per diluted common share, compared to $24.1 million, or $1.42 per diluted common share in 2024 [1]. - The fourth quarter net income was $7.4 million, or $0.43 per diluted common share, down from $9.3 million, or $0.55 per diluted common share in the third quarter of 2025 [1]. - The company declared a quarterly dividend of $0.25 per common share, payable on February 25, 2026 [1]. Balance Sheet and Asset Quality - Loans decreased by $7.2 million, or 0.2 percent, in the fourth quarter of 2025, with no credit loss expense recorded in either the fourth or third quarter [5]. - The allowance for credit losses to total loans was 1.02 percent as of December 31, 2025, compared to 1.01 percent at September 30, 2025 [5]. - There were no nonaccrual loans as of December 31, 2025, indicating strong credit quality [5][10]. Deposits and Interest Income - Deposits increased by $162.0 million, or 4.9 percent, in the fourth quarter of 2025, with a notable increase of $212.2 million, or 6.8 percent, excluding brokered deposits [5]. - The net interest margin was 2.47 percent for the fourth quarter of 2025, up from 2.36 percent in the third quarter [5]. - Net interest income for the fourth quarter was $24.2 million, compared to $22.5 million in the third quarter [5]. Efficiency and Capital Ratios - The efficiency ratio improved to 50.21 percent for the fourth quarter of 2025, down from 54.06 percent in the third quarter [5]. - The tangible common equity ratio was 6.42 percent as of December 31, 2025, compared to 6.40 percent at September 30, 2025 [5]. Year-over-Year Comparison - For the year ended December 31, 2025, net interest margin was 2.35 percent, compared to 1.91 percent for the year ended December 31, 2024 [10]. - Net interest income increased by $17.6 million in 2025 compared to 2024, primarily due to a decrease in interest expense on deposits and borrowed funds [10]. - The efficiency ratio for the year improved to 54.11 percent from 63.25 percent in 2024 [10].