West Bancorporation (NASDAQ:WTBA) Issues Quarterly Earnings Results

West Bancorporation (NASDAQ:WTBA) released its quarterly earnings results on Thursday. The financial services provider reported $0.67 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.67, FiscalAI reports. West Bancorporation had a net margin of 18.75% and a return on equity of 15.48%. The firm had revenue of $29.20 million during the quarter, compared to the consensus estimate of $28.95 million.

Here are the key takeaways from West Bancorporation’s conference call:

• Strong earnings and dividend: Third-quarter net income rose 25% year over year to $11.6 million, while year-to-date net income increased 32% to $33.3 million. The board approved a quarterly dividend of $0.26 per share.
• Loan growth and pipeline improved: Loans increased 1.5% sequentially to approximately $3 billion, the first quarterly increase in five quarters. Management described the pipeline as robust, with known payoffs declining to about $30 million through year-end.
• Credit quality remains exceptionally strong: The bank reported no loans past due more than 30 days, no non-accruals, no other real estate owned, and a watch list equal to just 0.6% of total loans. No provision for credit losses was recorded.
• Net interest margin continued to expand: Net interest margin increased 8 basis points from the prior quarter and 41 basis points year over year, supported by asset repricing and lower deposit costs.
• Deposit competition could slow margin gains: Recent rate increases have intensified deposit pricing pressure, and management expects deposit betas to remain relatively high. While about $550 million of fixed-rate loans will reprice over the next 12 months, executives expect further margin improvement to moderate rather than accelerate.

West Bancorporation Price Performance

NASDAQ WTBA opened at $30.33 on Friday. The company has a 50-day moving average price of $29.11 and a 200-day moving average price of $26.06. West Bancorporation has a 52 week low of $20.81 and a 52 week high of $30.92. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 1.33. The firm has a market capitalization of $516.94 million, a P/E ratio of 13.53 and a beta of 0.71.

West Bancorporation Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, November 25th. Stockholders of record on Wednesday, November 11th will be paid a $0.26 dividend. The ex-dividend date is Tuesday, November 10th. This represents a $1.04 dividend on an annualized basis and a dividend yield of 3.4%. West Bancorporation’s payout ratio is currently 46.64%.

Wall Street Analyst Weigh In

WTBA has been the topic of several research analyst reports. Weiss Ratings raised shares of West Bancorporation from a “buy (b)” rating to a “buy (b+)” rating in a research note on Thursday, October 8th. Piper Sandler lifted their target price on West Bancorporation from $27.00 to $30.00 and gave the stock a “neutral” rating in a research note on Monday, July 27th. Wall Street Zen lowered shares of West Bancorporation from a “buy” rating to a “hold” rating in a research report on Saturday, August 1st. Finally, Hovde Group upped their price target on West Bancorporation from $25.50 to $28.00 and gave the company a “market perform” rating in a research report on Friday, July 24th. One analyst has rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $29.00.

West Bancorporation Company Profile

West Bancorporation, Inc (NASDAQ: WTBA) is a bank holding company headquartered in West Des Moines, Iowa. It operates primarily through West Bank, a community banking institution that provides financial services to businesses, individuals and nonprofit organizations.

West Bank offers commercial and consumer lending, including commercial real estate, business, residential real estate and personal loans. Its deposit products include checking, savings, money market and certificate of deposit accounts, while additional services include treasury management, online and mobile banking, cash management and trust or wealth management services.

Founded in 1893, West Bank serves communities primarily in central and eastern Iowa, with a presence in the Des Moines metropolitan area and other Iowa markets.