West Bancorporation Reports 53.7% Increase in Net Income for Q2 2025

West Bancorporation, Inc. reported a net income of $7.979 million, or $0.47 per diluted share, for the three months ended June 30, 2025, marking a 53.7% increase from $5.192 million, or $0.31 per diluted share, in the same period last year. For the first half of 2025, net income rose to $15.821 million, or $0.93 per diluted share, compared to $11.001 million, or $0.65 per diluted share, for the same period in 2024. The company's annualized return on average assets and return on average equity improved to 0.80% and 13.74%, respectively, for the six months ended June 30, 2025, up from 0.57% and 10.07% in the prior year.

Total assets increased to $4.057 billion as of June 30, 2025, compared to $4.015 billion at the end of 2024. This growth was driven by a rise in cash and cash equivalents, which reached $345.201 million, up from $243.478 million. However, total loans decreased by 1.3% to $2.966 billion, primarily due to declines in construction and commercial loans. The allowance for credit losses stood at 1.03% of total loans, slightly up from 1.01% at the end of 2024, indicating management's confidence in the adequacy of reserves to cover potential losses.

In terms of operational metrics, West Bancorporation saw a 24.3% increase in net interest income for the second quarter, totaling $21.419 million, driven by higher interest income from deposits and a reduction in interest expenses. Noninterest income also saw a modest increase, rising to $2.410 million from $2.346 million year-over-year. Noninterest expenses increased by 2.2% to $13.485 million, largely due to higher salaries and employee benefits, as well as occupancy costs associated with new facilities.

The company declared a quarterly cash dividend of $0.25 per common share, payable on August 20, 2025, reflecting a dividend payout ratio of 53.08%. Looking ahead, West Bancorporation remains focused on maintaining its capital adequacy, with total stockholders' equity increasing to $240.930 million as of June 30, 2025, from $227.875 million at the end of the previous year. The company continues to monitor market conditions and adjust its strategies accordingly, particularly in light of potential interest rate fluctuations and economic uncertainties.