Key Highlights

  • Diluted EPS of USD 0.67 matched the consensus estimate and rose from USD 0.55 in the third quarter of 2025.
  • Net income climbed 25% to USD 11.6 million, helped by net interest income of USD 26.4 million, up 17%.
  • Adjusted income of USD 29.2 million on a tax equivalent basis topped the consensus Revenue estimate of USD 28.95 million.
  • Efficiency ratio improved to 47.81% from 54.06%, while return on average Equity reached 16.41% and nonperforming Assets stayed at 0.00%.

West Bancorporation, Inc. (NASDAQ:WTBA) reported third quarter 2026 Diluted Earnings per Share of USD 0.67, in line with the consensus estimate of USD 0.67 and up from USD 0.55 a year earlier. Net Income rose to USD 11.6 million from USD 9.3 million. Adjusted income, a non GAAP measure that combines tax equivalent net interest income with noninterest income, was USD 29.2 million against a consensus revenue estimate of USD 28.95 million, while GAAP net interest income plus noninterest income totaled USD 29.1 million.

Margin Expansion and Cost Control Drive the Gain

Net interest income increased to USD 26.4 million from USD 22.5 million as interest expense fell to USD 22.8 million from USD 26.4 million, with deposit interest costs down to USD 19.4 million from USD 22.5 million. The tax equivalent net interest Margin widened to 2.77% from 2.36%. The bank recorded no Credit loss expense in either period.

Noninterest income grew about 10% to USD 2.7 million, led by trust services at USD 1.2 million versus USD 0.9 million. Noninterest expense rose about 3% to USD 14.0 million, with salaries and benefits of USD 8.0 million offset in part by lower FDIC insurance costs of USD 455 thousand compared with USD 637 thousand. Return on average assets was 1.16%, compared with 0.92%.

Balance Sheet and Risk Disclosures

Total deposits stood at USD 3.27 billion at September 30, down from USD 3.47 billion at year end, while cash and equivalents fell to USD 272.4 million from USD 471.1 million. Loans were nearly flat at USD 2.995 billion, with Commercial Real Estate balances up USD 138.8 million over nine months and construction and land balances down USD 137.2 million. Total assets were USD 3.89 billion, and the equity to assets ratio was 6.98%, compared with 6.40% a year ago.

The company cites several risk factors, including the concentration of large deposits above FDIC insurance limits, changes in commercial or residential real estate values, Liquidity management and Tariff related policy. Gross unrealized losses on state and political subdivision securities reached USD 46.2 million, which the company attributed to higher market interest rates rather than credit.

Signposts for the Fourth Quarter

The board declared a regular quarterly Dividend of USD 0.26 per share, up from USD 0.25 a year ago, payable November 25, 2026 to holders of record on November 11. The dividend Payout Ratio was 38.42%, versus 45.47% in the prior year quarter.

Other figures to follow include the tax equivalent net interest margin of 2.77%, the efficiency ratio of 47.81% compared with a peer group range of 44.00% to 67.51% for the first half of 2026, and the deposit balance relative to the USD 3.47 billion at year end. The company also applies heightened risk management practices if non owner occupied commercial real estate lending exceeds regulatory thresholds.