WEST DES MOINES - West Bancorporation, Inc. (NASDAQ:WTBA), the parent company of West Bank, has announced its financial results for the third quarter of 2024, showing a net income of $6.0 million, or $0.35 per diluted common share. This marks an increase from the previous quarter's net income of $5.2 million, or $0.31 per diluted common share, and is on par with the third quarter of 2023's net income of $5.9 million, or $0.35 per diluted common share.
The company's Board of Directors declared a regular quarterly dividend of $0.25 per common share on Wednesday, which is payable on November 20, 2024, to stockholders of record as of November 6, 2024.
President and CEO David Nelson highlighted the company's moderate loan and core deposit growth, improved quarterly net interest income and margin, and pristine credit quality with a negligible ratio of nonperforming assets to total assets at 0.01%. Nelson also stated that West Bank is committed to initiatives aimed at driving sustained core profitability through a culture of strong relationships and exceptional personal service in both commercial and consumer banking services.
During the third quarter of 2024, West Bancorporation experienced a loan increase of $22.4 million, or 3.0 percent annualized, primarily due to funding of previously committed construction loans. Deposits also saw an increase of $97.6 million, or 3.1 percent, during the same period.
The efficiency ratio, a non-GAAP measure, improved to 63.28 percent in the third quarter of 2024, down from 67.14 percent in the second quarter. The improvement is mainly attributed to the increase in net interest income. The net interest margin on a fully tax-equivalent basis was 1.91 percent for the third quarter of 2024, a slight increase from 1.86 percent in the second quarter.
The company also filed its report on Form 10-Q with the Securities and Exchange Commission, providing a more in-depth discussion of its financial results. West Bancorporation will further discuss these results in a conference call scheduled for later today.
This article is based on a press release statement from West Bancorporation.
In other recent news, West Bancorporation has been the subject of several key developments. The company recently announced the immediate resignation of Patrick J. Donovan from its Board of Directors and its wholly-owned subsidiary, West Bank. Donovan, who also served on the Risk Management & Information Technology Committee, cited personal reasons for his departure. The company has yet to announce a successor or provide details on plans to fill the vacancy on the board.
In terms of financial performance, West Bancorporation reported its Q2 2024 results, revealing a net income of $5.2 million, a slight decrease from the previous quarter's $5.8 million. Despite flat loan growth, the company saw a healthy increase in deposits. The company also announced a dividend of $0.25 per common share.
These recent developments continue to shape the trajectory of West Bancorporation. Despite a challenging environment, the company continues to focus on maintaining pristine credit quality and seizing deposit growth opportunities.
InvestingPro Insights
To complement West Bancorporation's (NASDAQ:WTBA) third-quarter results, InvestingPro data offers additional context for investors. The company's market capitalization stands at $346.42 million, with a price-to-earnings (P/E) ratio of 15.69, suggesting a moderate valuation relative to earnings.
One of the standout InvestingPro Tips is that West Bancorporation has maintained dividend payments for 26 consecutive years, underscoring the company's commitment to shareholder returns. This aligns with the recently declared quarterly dividend of $0.25 per common share. The current dividend yield is an attractive 4.86%, which may appeal to income-focused investors.
Another relevant InvestingPro Tip indicates that the company has experienced a large price uptick over the last six months. Indeed, the data shows a impressive 25.68% price total return over the past six months, reflecting growing investor confidence in West Bancorporation's performance and outlook.
The company's profitability, as highlighted in the earnings report, is further supported by InvestingPro data showing an operating income margin of 38.34% for the last twelve months as of Q2 2024. This robust margin aligns with CEO David Nelson's comments on the company's initiatives to drive sustained core profitability.
For investors seeking a deeper dive into West Bancorporation's financials and prospects, InvestingPro offers 6 additional tips and a wealth of real-time metrics to inform investment decisions.
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