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

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Insights

WTBA's Q1 2025 shows significant earnings growth and margin improvement, with exceptional credit quality metrics and maintained dividend.

West Bancorporation delivered $7.8 million in Q1 2025 net income, representing a substantial 35% year-over-year increase from Q1 2024's $5.8 million, and a 10.5% improvement from the previous quarter. The $0.46 earnings per diluted share demonstrates the bank's strengthening profitability trajectory.

The net interest margin expansion to 2.28% (from 1.98% in Q4 2024 and 1.88% in Q1 2024) represents a critical fundamental improvement. This 40 basis point year-over-year margin expansion directly drives bottom-line growth, primarily resulting from deposit cost reductions following Federal Reserve rate cuts. Deposit costs decreased 38 basis points quarter-over-quarter.

The efficiency ratio improvement to 56.37% from 62.04% a year earlier indicates more effective cost management relative to income generation. The bank's 13.84% return on equity and 0.81% return on assets both show material improvements from both comparative periods.

Credit quality remains exceptional with 0.00% nonperforming assets to total assets. Only one loan past due beyond 30 days with a minimal $181,000 balance demonstrates disciplined underwriting standards. The bank maintains a steady 1.01% allowance for credit losses despite this pristine credit performance.

While deposits decreased 1.0% during Q1, the bank describes this as normal cash flow fluctuations. Importantly, year-over-year deposits increased 8.5%, allowing a significant reduction in higher-cost borrowed funds. The maintained quarterly dividend of $0.25 per share provides consistent shareholder returns, representing approximately a 5% annualized yield at current prices.

04/24/2025 - 08:30 AM

WEST DES MOINES, Iowa, April 24, 2025 (GLOBE NEWSWIRE) -- West Bancorporation, Inc. (Nasdaq: WTBA; the “Company”), parent company of West Bank, today reported first quarter 2025 net income of $7.8 million, or $0.46 per diluted common share, compared to fourth quarter 2024 net income of $7.1 million, or $0.42 per diluted common share, and first quarter 2024 net income of $5.8 million, or $0.35 per diluted common share. On April 23, 2025, the Company’s Board of Directors declared a regular quarterly dividend of $0.25 per common share. The dividend is payable on May 21, 2025, to stockholders of record on May 7, 2025.

David Nelson, President and Chief Executive Officer of the Company, commented, “In the first quarter of 2025, we have continued to see improvements in net interest margin and efficiency ratio compared to 2024, resulting in a significant improvement in net income compared to the first quarter of 2024. We are pleased with our progress in our balance sheet repricing efforts. Loan growth was modest in the first quarter, as expected with the current economic uncertainty.”

David Nelson added, “One thing that remains the same is our best-in-class credit quality metrics. We had no loans past due greater than 90 days at March 31, 2025, and only one loan past due greater than 30 days with an insignificant balance of $181 thousand. We continue to identify high-quality opportunities for growing our core customer base in all of our markets.”

First Quarter 2025 Financial Highlights

	Quarter Ended March 31, 2025	Quarter Ended December 31, 2024	Quarter Ended March 31, 2024
Net income (in thousands)	$7,842	$7,097	$5,809
Return on average equity	13.84%	12.24%	10.63%
Return on average assets	0.81%	0.68%	0.61%
Efficiency ratio (a non-GAAP measure)	56.37%	60.79%	62.04%
Nonperforming assets to total assets	0.00%	0.00%	0.01%

First Quarter 2025 Compared to Fourth Quarter 2024 Overview

Loans increased $11.6 million in the first quarter of 2025, primarily due to an increase in commercial loans and commercial real estate loans, partially offset by a decline in construction loans.
No credit loss expense on loans was recorded in the first quarter of 2025, compared to credit loss expense on loans of $1.0 million recorded in the fourth quarter of 2024. The credit loss expense on loans in the fourth quarter of 2024 was due to an adjustment to qualitative factors in the commercial real estate loan segment.
The allowance for credit losses to total loans was 1.01 percent at both March 31, 2025 and December 31, 2024. Nonaccrual loans at March 31, 2025 consisted of one loan with a balance of $181 thousand, compared to one loan with a balance of $133 thousand at December 31, 2024.
Deposits decreased $33.1 million, or 1.0 percent, in the first quarter of 2025. Brokered deposits totaled $335.5 million at March 31, 2025, compared to $266.4 million at December 31, 2024, an increase of $69.1 million. Excluding brokered deposits, deposits decreased $102.2 million, or 3.3 percent, during the first quarter of 2025. The decline in deposits was due to normal cash flow fluctuations of our core depositors. As of March 31, 2025, estimated uninsured deposits, which exclude deposits in the IntraFi^®reciprocal network, brokered deposits and public funds protected by state programs, accounted for approximately 28.0 percent of total deposits.
Net interest margin, on a fully tax-equivalent basis (a non-GAAP measure), was 2.28 percent for the first quarter of 2025, compared to 1.98 percent for the fourth quarter of 2024. Net interest income for the first quarter of 2025 was $20.9 million, compared to $19.4 million for the fourth quarter of 2024. The increase in net interest margin and net interest income was primarily due to a decrease in deposit rates, driven by the Federal Reserve’s reductions of the federal funds target rate in the fourth quarter of 2024. The cost of deposits decreased 38 basis points in the first quarter of 2025, compared to the fourth quarter of 2024.
The efficiency ratio (a non-GAAP measure) was 56.37 percent for the first quarter of 2025, compared to 60.79 percent for the fourth quarter of 2024. The improvement in the efficiency ratio was primarily due to the increase in net interest income and decrease in noninterest expense, partially offset by a decrease in trust services income.
The tangible common equity ratio was 5.97 percent as of March 31, 2025, compared to 5.68 percent as of December 31, 2024. The increase in the tangible common equity ratio was due to retained net income and the decrease in accumulated other comprehensive loss, which was the result of an increase in the market value of our available for sale securities portfolio.

Income tax expense increased $2.8 million in the first quarter of 2025 compared to the fourth quarter of 2024. This was primarily due to recording an income tax benefit of $1.8 million in the fourth quarter of 2024 for an energy related investment tax credit associated with the construction of the Company’s new headquarters building.

First Quarter 2025 Compared to First Quarter 2024 Overview

Loans increased $36.3 million at March 31, 2025, or 1.2 percent, compared to March 31, 2024. The increase is primarily due to the increase in commercial real estate loans, partially offset by decreases in commercial loans and construction loans.
Deposits increased $259.5 million, or 8.5 percent, at March 31, 2025, compared to March 31, 2024. Included in deposits were brokered deposits totaling $335.5 million at March 31, 2025, compared to $396.4 million at March 31, 2024. Excluding brokered deposits, deposits increased $320.4 million, or 12.0 percent, as of March 31, 2025, compared to March 31, 2024. Deposit growth included a mix of public funds and commercial and consumer deposits and was used to reduce wholesale funding, build liquidity and fund loan growth.
Borrowed funds decreased to $391.4 million at March 31, 2025, compared to $639.7 million at March 31, 2024. The decrease was primarily attributable to a decrease of $198.5 million in federal funds purchased and other short-term borrowings and a decrease of $45.0 million in Federal Home Loan Bank advances. The decrease in borrowed funds balances was due to the increase in deposits since March 31, 2024. The reduction in the Federal Home Loan Bank advances was due to the maturity of two advances with a total balance of $45.0 million. One of these advances, with a balance of $25.0 million, was hedged with a long-term interest rate swap, which matured and was not renewed.
The efficiency ratio (a non-GAAP measure) was 56.37 percent for the first quarter of 2025, compared to 62.04 percent for the first quarter of 2024. The improvement in the efficiency ratio in the first quarter of 2025 compared to the first quarter of 2024 was primarily due to the increase in net interest income, partially offset by an increase in noninterest expense. Occupancy and equipment expense increased primarily due to the occupancy costs associated with the Company’s newly constructed headquarters.
Net interest margin, on a fully tax-equivalent basis (a non-GAAP measure), was 2.28 percent for the first quarter of 2025, compared to 1.88 percent for the first quarter of 2024. Net interest income for the first quarter of 2025 was $20.9 million, compared to $16.8 million for the first quarter of 2024. The increase in net interest margin and net interest income was primarily due to the decrease in deposit rates. The cost of deposits decreased by 42 basis points in the first quarter of 2025 compared to the first quarter of 2024. Also contributing to the improvement was an increase in average deposit balances of $335.2 million, in comparing the same time periods, which resulted in the reduction of higher-cost borrowed funds and an increase in interest-bearing deposits with other financial institutions.

The Company filed its report on Form 10-Q with the Securities and Exchange Commission today. Please refer to that document for a more in-depth discussion of the Company’s financial results. The Form 10-Q is available on the Investor Relations section of West Bank’s website at www.westbankstrong.com.

The Company will discuss its results in a conference call scheduled for 2:00 p.m. Central Time on Thursday, April 24, 2025. The telephone number for the conference call is 800-715-9871. The conference ID for the conference call is 7846129. A recording of the call will be available until May 8, 2025, by dialing 800-770-2030. The conference ID for the replay call is 7846129, followed by the # key.

About West Bancorporation, Inc. (Nasdaq: WTBA)

West Bancorporation, Inc. is headquartered in West Des Moines, Iowa. Serving customers since 1893, West Bank, a wholly-owned subsidiary of West Bancorporation, Inc., is a community bank that focuses on lending, deposit services, and trust services for small- to medium-sized businesses and consumers. West Bank has six offices in the Des Moines, Iowa metropolitan area, one office in Coralville, Iowa, and four offices in Minnesota in the cities of Rochester, Owatonna, Mankato and St. Cloud.

Certain statements in this report, other than purely historical information, including estimates, projections, statements relating to the Company’s business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may appear throughout this report. These forward-looking statements are generally identified by the words “believes,” “expects,” “intends,” “anticipates,” “projects,” “future,” “confident,” “may,” “should,” “will,” “strategy,” “plan,” “opportunity,” “will be,” “will likely result,” “will continue” or similar references, or references to estimates, predictions or future events. Such forward-looking statements are based upon certain underlying assumptions, risks and uncertainties. Because of the possibility that the underlying assumptions are incorrect or do not materialize as expected in the future, actual results could differ materially from these forward-looking statements. Risks and uncertainties that may affect future results include: interest rate risk, including the effects of changes in interest rates; fluctuations in the values of the securities held in our investment portfolio, including as a result of changes in interest rates; competitive pressures, including from non-bank competitors such as credit unions, “fintech” companies and digital asset service providers; pricing pressures on loans and deposits; our ability to successfully manage liquidity risk; changes in credit and other risks posed by the Company’s loan portfolio, including declines in commercial or residential real estate values or changes in the allowance for credit losses dictated by new market conditions, accounting standards or regulatory requirements; the concentration of large deposits from certain clients, including those who have balances above current FDIC insurance limits; the imposition of domestic or foreign tariffs or other governmental policies impacting the global supply chain and the value of products produced by our commercial borrowers; changes in local, national and international economic conditions, including the level and impact of inflation, and future monetary policies of the Federal Reserve in response thereto, and possible recession; the effects of recent developments and events in the financial services industry, including the large-scale deposit withdrawals over a short period of time that resulted in several bank failures; changes in legal and regulatory requirements, limitations and costs; changes in customers’ acceptance of the Company’s products and services; the occurrence of fraudulent activity, breaches or failures of our or our third-party partners’ information security controls or cyber-security related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools; unexpected outcomes of existing or new litigation involving the Company; the monetary, trade and other regulatory policies of the U.S. government; acts of war or terrorism, including the ongoing Israeli-Palestinian conflict and the Russian invasion of Ukraine, widespread disease or pandemics, or other adverse external events; risks related to climate change and the negative impact it may have on our customers and their businesses; changes to U.S. tax laws, regulations and guidance; potential changes in federal policy and at regulatory agencies as a result of the 2024 presidential election; new or revised accounting policies and practices, as may be adopted by state and federal regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission or the Public Company Accounting Oversight Board; talent and labor shortages and employee turnover; and any other risks described in the “Risk Factors” sections of reports filed by the Company with the Securities and Exchange Commission. The Company undertakes no obligation to revise or update such forward-looking statements to reflect current or future events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
(in thousands)
	As of
CONDENSED BALANCE SHEETS	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Assets
Cash and due from banks	$	39,253		$	28,750		$	34,157		$	27,994		$	27,071
Interest-bearing deposits		171,357			214,728			123,646			121,825			120,946
Securities available for sale, at fair value		546,619			544,565			597,745			588,452			605,735
Federal Home Loan Bank stock, at cost		15,216			15,129			17,195			21,065			26,181
Loans		3,016,471			3,004,860			3,021,221			2,998,774			2,980,133
Allowance for credit losses		(30,526	)		(30,432	)		(29,419	)		(28,422	)		(28,373	)
Loans, net		2,985,945			2,974,428			2,991,802			2,970,352			2,951,760
Premises and equipment, net		110,270			109,985			106,771			101,965			95,880
Bank-owned life insurance		45,272			44,990			44,703			44,416			44,138
Other assets		72,737			82,416			72,547			89,046			90,981
Total assets	$	3,986,669		$	4,014,991		$	3,988,566		$	3,965,115		$	3,962,692

Liabilities and Stockholders’ Equity
Deposits	$	3,324,518		$	3,357,596		$	3,278,553		$	3,180,922		$	3,065,030
Federal funds purchased and other short-term borrowings		—			—			—			85,500			198,500
Other borrowings		391,445			392,629			438,814			439,998			441,183
Other liabilities		32,833			36,891			35,846			34,812			34,223
Stockholders’ equity		237,873			227,875			235,353			223,883			223,756
Total liabilities and stockholders’ equity	$	3,986,669		$	4,014,991		$	3,988,566		$	3,965,115		$	3,962,692

	For the Quarter Ended
AVERAGE BALANCES	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Assets	$	3,944,789		$	4,135,049		$	3,973,824		$	3,964,109		$	3,812,199
Loans		3,016,119			3,007,558			2,991,272			2,994,492			2,949,672
Deposits		3,284,394			3,434,234			3,258,669			3,123,282			2,956,635
Stockholders’ equity		229,874			230,720			227,513			219,771			219,835

WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
(in thousands)
	As of
LOANS	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Commercial	$	531,267		$	514,232		$	512,884		$	526,589		$	544,293
Real estate:
Construction, land and land development		451,230			508,147			520,516			496,864			465,247
1-4 family residential first mortgages		86,292			87,858			89,749			92,230			108,065
Home equity		21,961			19,294			17,140			15,264			14,020
Commercial		1,909,330			1,861,195			1,870,132			1,856,301			1,839,580
Consumer and other		19,323			17,287			14,261			15,234			12,844
		3,019,403			3,008,013			3,024,682			3,002,482			2,984,049
Net unamortized fees and costs		(2,932	)		(3,153	)		(3,461	)		(3,708	)		(3,916	)
Total loans	$	3,016,471		$	3,004,860		$	3,021,221		$	2,998,774		$	2,980,133
Less: allowance for credit losses		(30,526	)		(30,432	)		(29,419	)		(28,422	)		(28,373	)
Net loans	$	2,985,945		$	2,974,428		$	2,991,802		$	2,970,352		$	2,951,760

CREDIT QUALITY
Pass	$	3,011,231		$	2,999,531		$	3,016,493		$	2,994,310		$	2,983,618
Watch		7,991			8,349			7,956			7,651			142
Substandard		181			133			233			521			289
Doubtful		—			—			—			—			—
Total loans	$	3,019,403		$	3,008,013		$	3,024,682		$	3,002,482		$	2,984,049

DEPOSITS
Noninterest-bearing demand	$	519,771		$	541,053		$	525,332		$	530,441		$	521,377
Interest-bearing demand		517,409			543,855			438,402			443,658			449,946
Savings and money market - non-brokered		1,490,189			1,517,510			1,481,840			1,483,264			1,315,698
Money market - brokered		143,423			126,381			123,780			97,259			119,840
Total nonmaturity deposits		2,670,792			2,728,799			2,569,354			2,554,622			2,406,861
Time - non-brokered		461,655			488,760			407,109			353,269			381,646
Time - brokered		192,071			140,037			302,090			273,031			276,523
Total time deposits		653,726			628,797			709,199			626,300			658,169
Total deposits	$	3,324,518		$	3,357,596		$	3,278,553		$	3,180,922		$	3,065,030

BORROWINGS
Federal funds purchased and other short-term borrowings	$	—		$	—		$	—		$	85,500		$	198,500
Subordinated notes, net		79,959			79,893			79,828			79,762			79,697
Federal Home Loan Bank advances		270,000			270,000			315,000			315,000			315,000
Long-term debt		41,486			42,736			43,986			45,236			46,486
Total borrowings	$	391,445		$	392,629		$	438,814		$	525,498		$	639,683

STOCKHOLDERS’ EQUITY
Preferred stock	$	—		$	—		$	—		$	—		$	—
Common stock		3,000			3,000			3,000			3,000			3,000
Additional paid-in capital		35,072			35,619			34,960			34,322			33,685
Retained earnings		282,247			278,613			275,724			273,981			272,997
Accumulated other comprehensive loss		(82,446	)		(89,357	)		(78,331	)		(87,420	)		(85,926	)
Total stockholders’ equity	$	237,873		$	227,875		$	235,353		$	223,883		$	223,756

WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
(in thousands)
	For the Quarter Ended
CONSOLIDATED STATEMENTS OF INCOME	March 31, 2025		December 31, 2024			September 30, 2024		June 30, 2024		March 31, 2024
Interest income:
Loans, including fees	$	40,988	$	41,822		$	42,504	$	41,700	$	40,196
Securities:
Taxable		2,788		2,959			3,261		3,394		3,416
Tax-exempt		743		795			806		808		810
Interest-bearing deposits		1,617		3,740			2,041		1,666		148
Total interest income		46,136		49,316			48,612		47,568		44,570
Interest expense:
Deposits		21,423		25,706			26,076		23,943		21,559
Federal funds purchased and other short-term borrowings		—		—			115		1,950		2,183
Subordinated notes		1,105		1,106			1,112		1,105		1,108
Federal Home Loan Bank advances		2,235		2,522			2,748		2,718		2,325
Long-term debt		518		560			601		622		645
Total interest expense		25,281		29,894			30,652		30,338		27,820
Net interest income		20,855		19,422			17,960		17,230		16,750
Credit loss expense		—		1,000			—		—		—
Net interest income after credit loss expense		20,855		18,422			17,960		17,230		16,750
Noninterest income:
Service charges on deposit accounts		471		462			459		462		460
Debit card usage fees		446		471			500		490		458
Trust services		777		1,051			828		794		776
Increase in cash value of bank-owned life insurance		282		287			287		278		274
Realized securities losses, net		—		(1,172	)		—		—		—
Other income		267		331			285		322		331
Total noninterest income		2,243		1,430			2,359		2,346		2,299
Noninterest expense:
Salaries and employee benefits		7,004		7,107			6,823		7,169		6,489
Occupancy and equipment		1,963		2,095			1,926		1,852		1,447
Data processing		617		752			771		754		714
Technology and software		786		743			722		731		700
FDIC insurance		587		699			711		631		519
Professional fees		308		301			239		244		257
Director fees		206		170			223		236		199
Other expenses		1,592		1,532			1,477		1,577		1,543
Total noninterest expense		13,063		13,399			12,892		13,194		11,868
Income before income taxes		10,035		6,453			7,427		6,382		7,181
Income taxes		2,193		(644	)		1,475		1,190		1,372
Net income	$	7,842	$	7,097		$	5,952	$	5,192	$	5,809

Basic earnings per common share	$	0.47	$	0.42		$	0.35	$	0.31	$	0.35
Diluted earnings per common share	$	0.46	$	0.42		$	0.35	$	0.31	$	0.35

WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)

	As of and for the Quarter Ended
COMMON SHARE DATA	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Earnings per common share (basic)	$	0.47		$	0.42		$	0.35		$	0.31		$	0.35
Earnings per common share (diluted)		0.46			0.42			0.35			0.31			0.35
Dividends per common share		0.25			0.25			0.25			0.25			0.25
Book value per common share⁽¹⁾		14.06			13.54			13.98			13.30			13.31
Closing stock price		19.94			21.65			19.01			17.90			17.83
Market price/book value⁽²⁾		141.82	%		159.90	%		135.98	%		134.59	%		133.96	%
Price earnings ratio⁽³⁾		10.46			12.96			13.65			14.36			12.77
Annualized dividend yield⁽⁴⁾		5.02	%		4.62	%		5.26	%		5.59	%		5.61	%

REGULATORY CAPITAL RATIOS
Consolidated:
Total risk-based capital ratio		12.18	%		12.11	%		11.95	%		11.85	%		11.78	%
Tier 1 risk-based capital ratio		9.59			9.51			9.39			9.30			9.23
Tier 1 leverage capital ratio		8.36			7.93			8.15			8.08			8.36
Common equity tier 1 ratio		9.02			8.95			8.83			8.74			8.67
West Bank:
Total risk-based capital ratio		12.90	%		12.86	%		12.73	%		12.66	%		12.63	%
Tier 1 risk-based capital ratio		11.99			11.96			11.86			11.79			11.76
Tier 1 leverage capital ratio		10.46			9.97			10.29			10.25			10.65
Common equity tier 1 ratio		11.99			11.96			11.86			11.79			11.76

KEY PERFORMANCE RATIOS AND OTHER METRICS
Return on average assets⁽⁵⁾		0.81	%		0.68	%		0.60	%		0.53	%		0.61	%
Return on average equity⁽⁶⁾		13.84			12.24			10.41			9.50			10.63
Net interest margin^(7)(13)		2.28			1.98			1.91			1.86			1.88
Yield on interest-earning assets^(8)(13)		5.04			5.02			5.16			5.13			4.99
Cost of interest-bearing liabilities		3.25			3.57			3.84			3.83			3.70
Efficiency ratio^(9)(13)		56.37			60.79			63.28			67.14			62.04
Nonperforming assets to total assets⁽¹⁰⁾		0.00			0.00			0.01			0.01			0.01
ACL ratio⁽¹¹⁾		1.01			1.01			0.97			0.95			0.95
Loans/total assets		75.66			74.84			75.75			75.63			75.20
Loans/total deposits		90.73			89.49			92.15			94.27			97.23
Tangible common equity ratio⁽¹²⁾		5.97			5.68			5.90			5.65			5.65

^{(1) Includes accumulated other comprehensive loss.}
^{(2) Closing stock price divided by book value per common share.}
^{(3) Closing stock price divided by annualized earnings per common share (basic).}
^{(4) Annualized dividend divided by period end closing stock price.}
^{(5) Annualized net income divided by average assets.}
^{(6) Annualized net income divided by average stockholders’ equity.}
^{(7) Annualized tax-equivalent net interest income divided by average interest-earning assets.}
^{(8) Annualized tax-equivalent interest income on interest-earning assets divided by average interest-earning assets.}
^{(9) Noninterest expense (excluding other real estate owned expense and write-down of premises) divided by noninterest income (excluding net securities gains/losses and gains/losses on disposition of premises and equipment) plus tax-equivalent net interest income.}
^{(10) Total nonperforming assets divided by total assets.}
^{(11) Allowance for credit losses on loans divided by total loans.}
^{(12) Common equity less intangible assets (none held) divided by tangible assets.}
^{(13) A non-GAAP measure.}

NON-GAAP FINANCIAL MEASURES

This report contains references to financial measures that are not defined in GAAP. Such non-GAAP financial measures include the Company’s presentation of net interest income and net interest margin on a fully taxable equivalent (FTE) basis and the presentation of the efficiency ratio on an adjusted and FTE basis, excluding certain income and expenses. Management believes these non-GAAP financial measures provide useful information to both management and investors to analyze and evaluate the Company’s financial performance. These measures are considered standard measures of comparison within the banking industry. Additionally, management believes providing measures on a FTE basis enhances the comparability of income arising from taxable and nontaxable sources. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in these measures and that different companies might calculate these measures differently. These non-GAAP disclosures should not be considered an alternative to the Company’s GAAP results. The following table reconciles the non-GAAP financial measures of net interest income and net interest margin on a fully taxable equivalent basis and efficiency ratio on an adjusted and FTE basis.

(in thousands)	For the Quarter Ended
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Reconciliation of net interest income and net interest margin on a FTE basis to GAAP:
Net interest income (GAAP)	$	20,855		$	19,422		$	17,960		$	17,230		$	16,750
Tax-equivalent adjustment ⁽¹⁾		66			16			29			55			82
Net interest income on a FTE basis (non-GAAP)		20,921			19,438			17,989			17,285			16,832
Average interest-earning assets		3,717,441			3,910,978			3,749,688			3,731,674			3,595,954
Net interest margin on a FTE basis (non-GAAP)		2.28	%		1.98	%		1.91	%		1.86	%		1.88	%

Reconciliation of efficiency ratio on an adjusted and FTE basis to GAAP:
Net interest income on a FTE basis (non-GAAP)	$	20,921		$	19,438		$	17,989		$	17,285		$	16,832
Noninterest income		2,243			1,430			2,359			2,346			2,299
Adjustment for realized securities losses, net		—			1,172			—			—			—
Adjustment for losses on disposal of premises and equipment, net		8			—			26			21			—
Adjusted income		23,172			22,040			20,374			19,652			19,131
Noninterest expense		13,063			13,399			12,892			13,194			11,868
Efficiency ratio on an adjusted and FTE basis (non-GAAP) ⁽²⁾		56.37	%		60.79	%		63.28	%		67.14	%		62.04	%

^{(1) Computed on a tax-equivalent basis using a federal income tax rate of 21 percent, adjusted to reflect the effect of the nondeductible interest expense associated with owning tax-exempt securities and loans. Management believes the presentation of this non-GAAP measure provides supplemental useful information for proper understanding of the financial results, as it enhances the comparability of income arising from taxable and nontaxable sources.}
^{(2) The efficiency ratio expresses noninterest expense as a percent of fully taxable equivalent net interest income and noninterest income, excluding specific noninterest income and expenses. Management believes the presentation of this non-GAAP measure provides supplemental useful information for proper understanding of the Company's financial performance. It is a standard measure of comparison within the banking industry. A lower ratio is more desirable.}

For more information contact:
Jane Funk, Executive Vice President, Treasurer and Chief Financial Officer (515) 222-5766

FAQ

What was West Bancorporation's (WTBA) earnings per share in Q1 2025?

WTBA reported earnings of $0.46 per diluted share in Q1 2025, up from $0.42 in Q4 2024 and $0.35 in Q1 2024.

How much is WTBA's quarterly dividend payment in 2025?

West Bancorporation declared a quarterly dividend of $0.25 per share, payable on May 21, 2025, to stockholders of record on May 7, 2025.

What is West Bancorporation's (WTBA) current net interest margin?

WTBA's net interest margin was 2.28% in Q1 2025, improved from 1.98% in Q4 2024 and 1.88% in Q1 2024.

How did WTBA's deposit base change in Q1 2025?

Total deposits decreased by $33.1 million (1.0%), with core deposits declining $102.2 million (3.3%) while brokered deposits increased by $69.1 million.

What is West Bancorporation's (WTBA) credit quality status in Q1 2025?

WTBA maintained excellent credit quality with nonperforming assets to total assets at 0.00% and only one loan past due over 30 days totaling $181,000.

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

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What was West Bancorporation's (WTBA) earnings per share in Q1 2025?

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What is West Bancorporation's (WTBA) credit quality status in Q1 2025?

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

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What was West Bancorporation's (WTBA) earnings per share in Q1 2025?

How much is WTBA's quarterly dividend payment in 2025?

What is West Bancorporation's (WTBA) current net interest margin?

How did WTBA's deposit base change in Q1 2025?

What is West Bancorporation's (WTBA) credit quality status in Q1 2025?

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