West Bancorporation (WTBA) Q4 2025 earnings summary

Executive summary

• Net income for 2025 rose 35% year-over-year to $32.6 million ($1.92 per diluted share), with Q4 net income at $7.4 million ($0.43 per share), down from Q3 but up from Q4 last year.

• Total assets reached $4.1 billion and total deposits $3.5 billion as of December 31, 2025.

• Maintained a strong community banking focus, disciplined risk management, and opened a new headquarters in April 2024.

• A $0.25 dividend was declared for Q4, payable February 25th to shareholders of record as of February 11th.

Financial highlights

• Net interest income for Q4 2025 was $24.2 million, up from $22.5 million in Q3 and $19.4 million in Q4 2024.

• Net interest margin improved to 2.47% in Q4 2025, up 11 basis points sequentially and 49 basis points year-over-year.

• Efficiency ratio improved to 50.21% in Q4 2025 from 54.06% in Q3 and 60.79% in Q4 2024.

• Cost of deposits declined 28 basis points from Q3 and 64 basis points from Q4 last year.

• No provision for credit losses was recorded in Q4 2025.

Outlook and guidance

• Management anticipates further improvements in 2026, with margin improvement expected even without rate changes.

• Deposit growth outlook is uncertain due to expected outflows from public funds in 2026.

• Ongoing evaluation of further securities portfolio repositioning, with no set plans for 2026.

• Focus remains on organic growth, disciplined risk management, and maintaining pristine credit quality.

• Continued investment in community service and philanthropy, with over 7,000 volunteer hours and $550,000 in contributions in 2025.