West Bancorporation (WTBA) Q4 2025 earnings summary

Executive summary

• Net income for 2025 rose 35% year-over-year to $32.6 million ($1.92 per diluted share), with Q4 net income at $7.4 million ($0.43 per share), despite a securities loss trade in Q4.

• Total assets reached $4.1 billion and total deposits $3.5 billion as of December 31, 2025.

• Maintained a strong community banking focus, disciplined risk management, and opened a new corporate headquarters in April 2024.

• Loan portfolio remains problem-free with no past dues, non-accruals, or substandard loans at year-end 2025.

• Quarterly dividend of $0.25 per share declared, payable February 25, 2026.

Financial highlights

• Net interest income for Q4 2025 was $24.2 million, up from $22.5 million in Q3 2025; net interest margin improved to 2.47% in Q4 2025 from 2.36% in Q3 2025.

• Efficiency ratio improved to 50.21% in Q4 2025 from 54.06% in Q3 2025 and 60.79% in Q4 2024.

• No provision for credit losses was recorded in Q4 2025; allowance for credit losses was 1.02% of loans at year-end.

• Deposit balances grew by $162 million in Q4 2025, with core deposit balances (excluding brokered funds) rising $212 million in Q4.

• A $4 million pre-tax net loss was realized from the sale of $63.7 million in securities in Q4 2025.

Outlook and guidance

• Management anticipates further improvements in 2026, with focus on organic growth, disciplined risk management, and maintaining pristine credit quality.

• Deposit growth outlook is uncertain due to expected outflows from public funds in 2026.

• Net interest margin at 2.5% at year-end, with room for improvement even without rate changes.

• Ongoing evaluation of further securities portfolio repositioning in 2026, depending on liquidity needs.

• Continued investment in community service and philanthropy, with over 7,000 volunteer hours and $550,000 in contributions in 2025.