West Bancorporation (WTBA) investor relations material

Executive summary

• Net income for Q2 2026 was $11.1 million ($0.64 per diluted share), up 39% year-over-year, with six-month net income at $21.6 million, up 37% year-over-year.

• Annualized return on average assets was 1.10% and return on average equity was 16.21% for Q2 2026, both higher than the prior year.

• Total assets reached $4.0 billion, gross loans $3.0 billion, and total deposits $3.3 billion as of June 30, 2026.

• Declared a record quarterly dividend of $0.26 per share, payable August 19, 2026, with an annualized yield of 3.77%.

• Balance sheet remains strong with high liquidity, solid capital, and no loans on nonaccrual status at quarter-end.

Financial highlights

• Net interest income for Q2 2026 was $25.5 million, up $1.1 million sequentially and 19% year-over-year, driven by margin improvement.

• Net interest margin (FTE) improved to 2.69% in Q2 2026 from 2.27% in Q2 2025.

• Efficiency ratio improved to 48.78% in Q2 2026 from 56.45% in Q2 2025.

• Noninterest income increased to $2.6 million, led by trust services and debit card interchange.

• No provision for credit losses recorded; allowance for credit losses stable at 1.03% of total loans.

Outlook and guidance

• Management expects continued benefit from higher loan yields and margin expansion, with robust capital and liquidity.

• Interest rate risk simulations show net interest income could decrease up to 5.8% if rates rise 300 bps, but increase up to 6.9% if rates fall 300 bps.

• Approximately $600 million in loans expected to reprice over the next 12 months, mostly in the first half of 2027, with yields in the low to mid 4% range.

• Loan payoffs expected to persist through Q3, then moderate, with a strong pipeline to offset.

• No significant expense increases anticipated for the remainder of 2026.