West Bancorporation (WTBA) Q4 2024 earnings summary

Executive summary

• Fourth quarter net income was $7.1 million ($0.42 per share), up from $6 million in Q3 2024 and $4.5 million in Q4 2023, marking the strongest earnings in seven quarters.

• Full-year 2024 net income was $24.1 million ($1.42 per diluted share), flat compared to 2023.

• Board declared a $0.25 per share dividend for common shareholders of record as of February 5th, payable February 19th, 2025.

• Core deposit growth and improved funding costs contributed to better performance.

• Credit quality remains strong, with no loans past due over 30 days and a minimal watch list.

Financial highlights

• Q4 2024 net interest income was $19.4 million, up from $18.0 million in Q3 2024 and $16.4 million in Q4 2023.

• Net interest margin (FTE) for Q4 2024 was 1.98%, up from 1.91% in Q3 2024 and 1.87% in Q4 2023.

• Efficiency ratio improved to 60.79% in Q4 2024 from 63.28% in Q3 2024 and 64.66% in Q4 2023.

• Deposits increased to $3.4 billion at year-end, up from $3.0 billion a year earlier; core deposit balances rose 15.8% year-over-year.

• A $1.2 million loss was recognized on the sale of $12 million in investment securities, with proceeds to be reinvested in loans.

Outlook and guidance

• Management expects positive trends in core deposit growth, net interest income, and efficiency ratio to continue into 2025.

• Moderate growth is anticipated in 2025, with interest rates influencing new projects and expansions.

• Focus remains on disciplined loan growth, credit risk management, and technology enhancements.