David D. Nelson, CEO and President of West Bancorporation Inc. (NASDAQ:WTBA), recently purchased 592 shares of the company's common stock, according to a filing with the Securities and Exchange Commission. The shares were acquired at a price of $23.79 each, totaling approximately $14,083. Following this transaction, Nelson directly owns 107,227 shares. Additionally, Nelson holds shares indirectly through the Katherine A. Nelson Rev Trust and a 401(k) plan, with respective holdings of 98,034 and 29,875 shares. The recent purchase reflects Nelson's ongoing investment in the company.
In other recent news, West Bancorporation has reported a stable performance in Q3 of 2024, with modest loan growth and a robust deposit pipeline. The company's loan demand was not strong, but showed some growth, and the deposit gathering efforts were fruitful, reflecting positively on the balance sheet. The Board of Directors declared a $0.25 per share quarterly dividend. The company's net income for Q3 remained consistent with the same period in the previous year at $6 million.
Analysts noted that West Bancorporation's credit quality remained robust with no significant issues, and a provision of $1 million for credit losses was recorded due to forecasted unemployment rates. The company's loan portfolio grew by $94 million or 3.2% in the first nine months of 2024, while core deposit growth was approximately 3.5% for the quarter.
In terms of future expectations, West Bancorporation anticipates benefits from further Federal Reserve rate cuts. However, the company's net income for the first nine months of 2024 was $17 million, compared to $19.6 million for the same period in 2023. These are the recent developments in West Bancorporation's financial performance.
InvestingPro Insights
David D. Nelson's recent purchase of West Bancorporation Inc. (NASDAQ:WTBA) shares aligns with several positive indicators highlighted by InvestingPro. The company's stock has shown strong performance, with a 24.06% price total return over the last three months and a 37.41% return over the past six months. This upward trend is further supported by the fact that WTBA is currently trading near its 52-week high, with the price at 96.86% of its peak.
InvestingPro Tips reveal that West Bancorporation has maintained dividend payments for 26 consecutive years, which may be particularly appealing to income-focused investors like Nelson. The company's current dividend yield stands at 4.22%, offering a substantial income stream for shareholders.
Despite these positive indicators, it's worth noting that WTBA suffers from weak gross profit margins, according to another InvestingPro Tip. This could be a factor for investors to monitor in the context of the company's overall financial health.
For those interested in a more comprehensive analysis, InvestingPro offers additional tips and insights that could provide further context to Nelson's investment decision and the company's prospects.
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