West Bancorporation, Inc. reported a net income of $7.8 million, or $0.46 per diluted share, for the first quarter of 2025, reflecting a 35% increase from the $5.8 million, or $0.35 per diluted share, recorded in the same period of 2024. The company's annualized return on average assets rose to 0.81% from 0.61%, while the return on average equity improved to 13.84% from 10.63%. The increase in net income was primarily driven by a 24.5% rise in net interest income, which reached $20.9 million, up from $16.8 million a year earlier, attributed to higher interest income from loans and interest-bearing deposits.
Total assets decreased to $3.99 billion as of March 31, 2025, down from $4.01 billion at the end of 2024. The decline was mainly due to a reduction in interest-bearing cash deposits and total deposits, which fell by $33.1 million, or 1.0%. However, total loans outstanding increased slightly by $11.6 million, or 0.4%, to $3.02 billion, with notable growth in commercial real estate and commercial loans. The allowance for credit losses remained stable at 1.01% of total loans, indicating strong credit quality, as evidenced by a nonperforming loans ratio of 0.00%.
In terms of operational developments, West Bancorporation's employee headcount increased, reflecting the company's expansion efforts, including the opening of a new branch in Owatonna, Minnesota, and the new headquarters in West Des Moines, Iowa. The company also declared a quarterly cash dividend of $0.25 per common share, payable on May 21, 2025, to stockholders of record on May 7, 2025.
Looking ahead, West Bancorporation anticipates continued growth in its loan portfolio and a stable interest rate environment, although it remains cautious about potential economic fluctuations and their impact on credit quality. The company is focused on maintaining its capital adequacy and liquidity, with a tangible common equity ratio of 5.97% as of March 31, 2025, which is above regulatory requirements. Management believes that the current allowance for credit losses is adequate to absorb expected losses in the loan portfolio, positioning the company well for future challenges.
About WEST BANCORPORATION INC
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