West Bancorporation's Q4 2024: Loan Growth, Interest Rates, and CRE Health Under Scrutiny

Strong Financial Performance:
- West Bancorporation reported net income of $7.1 million in Q4 2024, a significant improvement of 18.3% compared to Q3 2024 and 59.6% compared to Q4 2023.
- The growth was driven by a combination of solid deposit gathering, successful asset repricing opportunities, and improved credit quality.

Deposit Growth and Cost Reduction:
- Core deposit balances increased by 15.8% in 2024, with an 8.3% increase in the fourth quarter.
- The deposit growth facilitated a reduction in expensive wholesale funding by over $200 million in Q4 2024, reducing the cost of funding and supporting increased net interest margin.

Credit Quality and Loan Portfolio Health:
- West Bank maintained pristine credit quality, with 0 past dues over 30 days at quarter-end and a watch list representing only 0.26% of total loans.
- The strong credit quality can be attributed to doing business with customers with proven track records, good balance sheets, and strong payment abilities, as well as thriving community economies.

Commercial Real Estate and C&I Portfolio Performance:
- The $2.4 billion commercial real estate portfolio and $500 million C&I portfolio performed well, with no significant deterioration in financial strength.
- This was due to diversified payment abilities and strong market conditions in the communities where West Bank operates.