- Net income for West Bancorporation (WTBA, Financial) rose to $7.8 million in Q1 2025, a 35% year-over-year increase.
- Net interest margin improved to 2.28% from 1.98% in Q4 2024.
- The company declared a quarterly dividend of $0.25 per share, payable on May 21, 2025.
West Bancorporation, Inc. (NASDAQ: WTBA) reported significant improvements in its financial results for the first quarter of 2025. The company's net income climbed to $7.8 million, or $0.46 per diluted share, marking a substantial increase from $5.8 million in the same quarter of 2024 and $7.1 million in the previous quarter.
The improved financial performance was driven by a notable enhancement in the net interest margin, which rose to 2.28% from 1.98% in Q4 2024 and 1.88% in Q1 2024. This was largely attributed to reduced deposit costs following Federal Reserve rate adjustments.
Additionally, West Bancorporation's efficiency ratio improved to 56.37%, down from 60.79% quarter-over-quarter, reflecting better cost management relative to income generation. The company also maintained a return on average equity of 13.84%, up from 12.24% in the previous quarter.
Loan growth was modest, with a $11.6 million increase in Q1 2025, primarily driven by commercial and real estate loans. Credit quality remained robust, with zero nonperforming assets as a percentage of total assets and only one loan past due over 30 days, demonstrating disciplined underwriting standards.
However, total deposits decreased by $33.1 million, or 1.0%, during the quarter. The decline was attributed to normal cash flow fluctuations among core depositors, though brokered deposits rose by $69.1 million. Despite a decrease in overall deposits, the company's tangible common equity ratio improved to 5.97% from 5.68% in the previous quarter.
Furthermore, the Board of Directors declared a regular quarterly dividend of $0.25 per share, to be paid on May 21, 2025, to shareholders of record as of May 7, 2025.
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