West Bancorporation Reports 38.8% Increase in Net Income for Q2 2026

West Bancorporation, Inc. reported a net income of $11.1 million, or $0.64 per diluted share, for the second quarter of 2026, marking a 38.8% increase from $8.0 million, or $0.47 per diluted share, in the same period of 2025. For the first half of 2026, net income reached $21.6 million, up 36.8% from $15.8 million in the prior year. The company's annualized return on average assets improved to 1.10% from 0.80%, while the return on average equity rose to 16.21% from 13.65% year-over-year. The increase in profitability was primarily driven by a 19.2% rise in net interest income, which totaled $25.5 million for the quarter, attributed to higher interest income from loans and securities.

In terms of operational metrics, West Bancorporation's total assets decreased to $4.03 billion as of June 30, 2026, down from $4.14 billion at the end of 2025. This decline was influenced by a reduction in loans, which fell to $2.95 billion from $3.00 billion, and a decrease in total deposits, which dropped to $3.34 billion from $3.47 billion. The company experienced a notable decrease in construction and land development loans, while there were increases in commercial real estate and residential mortgage loans. The overall loan portfolio mix reflects strategic adjustments in response to market conditions.

The company also reported a slight increase in noninterest income, which rose to $2.6 million for the second quarter, driven by growth in trust services revenue. Noninterest expenses increased modestly to $13.8 million, primarily due to higher salaries and employee benefits, although this was partially offset by a decrease in FDIC insurance expenses. The efficiency ratio improved to 48.78%, down from 56.45% in the previous year, indicating better cost management relative to income generation.

Looking ahead, West Bancorporation remains focused on maintaining its capital adequacy, with total stockholders' equity increasing to $281.0 million as of June 30, 2026, from $266.0 million at the end of 2025. The company continues to monitor its loan portfolio closely, particularly in commercial real estate, to ensure compliance with regulatory guidelines. Management expressed confidence in the company's ability to navigate market fluctuations and maintain profitability, supported by a strong capital position and liquidity management strategies. The Board of Directors declared a quarterly cash dividend of $0.26 per common share, payable on August 19, 2026, reflecting the company's commitment to returning value to shareholders.