10-Q · April 23, 2026
West Bancorporation reported a stronger Q1 2026 with total adjusted income of $27,013,000 (tax-equivalent net interest income $24,457,000 plus noninterest income $2,554,000) and net income of $10,572,000, up 34.81% from…
Earnings analysis · 10-Q
WTBA earnings analysis
Filed July 23, 2026 · Our reading of the company's report
The latest report
West Bancorporation delivered strong Q2 profitability: diluted EPS increased to $0.64 from $0.47 a year earlier, supported by a 42-basis-point expansion in FTE net interest margin to 2.69% and a 767-basis-point…
Read full summary
West Bancorporation delivered strong Q2 profitability: diluted EPS increased to $0.64 from $0.47 a year earlier, supported by a 42-basis-point expansion in FTE net interest margin to 2.69% and a 767-basis-point improvement in the efficiency ratio to 48.78%. Revenue of $28.117 million increased sequentially from $26.939 million and year over year from $23.829 million, while trust revenue and lower deposit costs added support. The principal offsets are declining deposits and loans, CRE concentration above regulatory guidelines, reduced liquid assets, and modeled downside if rates rise materially. Operating cash flow was $27.251 million for the first six months; capex and free cash flow were not disclosed.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.64
What stood out
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EPS and net income rose sharply
Q2 net income rose 38.8% year over year to $11.073 million, and diluted EPS increased to $0.64 from $0.47. Net interest income was $25.521 million, up $4.102 million (19.2%).
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Sequential and year-over-year top-line growth
Revenue, measured as GAAP net interest income plus noninterest income, was $28.117 million, up from $26.939 million in Q1 2026 (derived from the filing’s six-month and Q2 results) and $23.829 million in Q2 2025. The sequential increase was led by a $1.136 million increase in net interest income.
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Margin and efficiency improved materially
Tax-equivalent net interest margin expanded 42 basis points year over year to 2.69%, while the adjusted/FTE efficiency ratio improved to 48.78% from 56.45%. Deposit interest expense declined $3.492 million despite average interest-bearing deposits declining only $33.304 million.
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Trust income outpaced expense growth
Noninterest income increased 7.7% to $2.596 million, driven by a $247 thousand, or 30.8%, increase in trust-services revenue to $1.048 million. Noninterest expense increased only 2.1% to $13.767 million.
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Asset quality remained pristine
Credit performance remained exceptionally clean: nonperforming assets were 0.00% of total assets, there were no nonaccrual loans, and the allowance for credit losses was $30.530 million, or 1.03% of ending loans. No loan or unfunded-commitment credit-loss expense was recorded.
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Capital and contingent liquidity strengthened
Liquidity and capital remained solid, with $433.699 million of liquid assets, $675.000 million of additional FHLB capacity, and stockholders’ equity of $281.042 million, up from $265.985 million at December 31, 2025. Tangible common equity to tangible assets improved to 6.97% from 6.42%.
What to watch
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Deposit and loan balances contracted
Deposits fell $123.570 million, or 3.6%, during the first six months, while loans declined $51.576 million to $2.950 billion. Management attributed the loan reduction partly to notable payoffs from secondary-market refinancings and asset/business sales.
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Elevated commercial real estate concentration
The commercial real estate portfolio exceeded regulatory concentration guidelines at June 30, 2026, although management says it remained within internal policy limits. Construction, land and land-development loans declined $93.080 million, while commercial real estate loans increased $47.711 million.
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Earnings remain exposed to higher rates
The rate-sensitivity model estimates that an immediate 300-basis-point rate increase would reduce one-year net interest income by $6.485 million, or 5.81%. This contrasts with an estimated $7.703 million, or 6.90%, benefit under a 300-basis-point decline.
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Liquidity declined alongside deposit outflows
Liquid assets declined $37.387 million to $433.699 million from $471.086 million at year-end, and brokered deposits were $110.450 million. Estimated uninsured deposits were 27.2% of total deposits, excluding reciprocal-network, brokered, and protected public funds.
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No material risk-factor updates
Item 1A states there were no material changes to risk factors from the February 26, 2026 Form 10-K. The filing nonetheless identifies heightened rate risk, including the modeled $6.485 million one-year net-interest-income reduction in a 300-basis-point rising-rate scenario.
Management's outlook
The 10-Q provides no quantitative revenue or EPS outlook. Management discusses rate sensitivity and expects fixed-rate renewals/originations to support loan yields while market rates remain above the fixed-rate portfolio yield, but gives no numeric forecast.
Earlier filings 4
10-K · February 26, 2026
West Bancorporation (West Bank) reports modest balance-sheet growth in 2025 with total assets of $4.1 billion (up 3.2% from $4.0 billion in 2024) and total deposits of $3.5 billion (up 3.3%). Profitability and liquidity…
10-Q · October 23, 2025
West Bancorporation reported a strong quarter with total revenue (net interest income plus noninterest income) of $25,004,000 and diluted EPS of $0.55, beating consensus. Net interest income increased to $22,501,000 (up…
10-Q · July 24, 2025
West Bancorporation reported Q2 2025 revenue of $23.829M and diluted EPS of $0.47, marking year-over-year and modest quarter-over-quarter improvements driven by higher net interest income. Deposits rose $34.398M and…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.