West Bancorporation's EPS Surprise: A Beacon of Stability in Challenging Times

West Bancorporation (WTBA) has just released its full-year 2024 earnings, and the results are nothing short of impressive. The company's earnings per share (EPS) not only met but exceeded analysts' expectations, providing a much-needed boost of confidence in the current economic climate. Let's dive into the key takeaways from West Bancorporation's latest financial report and explore what this means for investors.



West Bancorporation, a community bank headquartered in West Des Moines, Iowa, has been a beacon of stability in the Midwest region, providing lending, deposit, and trust services to small to medium-sized businesses and consumers. The bank's latest earnings report reflects its commitment to maintaining a strong financial foundation, even in the face of challenging market conditions.



One of the standout features of West Bancorporation's earnings report is its ability to maintain a stable net income compared to 2023, despite a challenging year. The bank reported 2024 net income of $24.1 million, or $1.42 per diluted common share, matching the previous year's net income of $24.1 million, or $1.44 per diluted common share. This consistency in earnings performance is a testament to the bank's disciplined approach to loan growth and credit risk management.



Another notable aspect of West Bancorporation's earnings report is its focus on core deposit growth and reduction in wholesale funding. The bank successfully shifted its funding composition by reducing brokered deposits by $159.5 million and increasing core deposits by $238.5 million in the fourth quarter of 2024. This strategic move lowered the cost of funds and improved the net interest margin to 1.98%, positioning the bank for enhanced profitability in 2025.



West Bancorporation's strong credit quality and disciplined loan growth strategy have also contributed to its consistent earnings performance. The bank maintained pristine credit quality with no loans past due beyond 30 days and minimal nonaccrual loans of $133,000. This stability in credit quality ensures that the bank's financial health remains robust, even as it continues to grow its loan portfolio.



In conclusion, West Bancorporation's full-year 2024 earnings report is a shining example of a company that has weathered the storm of challenging market conditions and emerged stronger than ever. The bank's ability to maintain stable net income, focus on core deposit growth, and maintain strong credit quality has positioned it well for future success. As an investor, it's essential to keep an eye on companies like West Bancorporation that demonstrate a commitment to financial stability and growth, even in the face of adversity.