West Bancorporation Posts $10.6M Net Income as Deposits Fall $133M in Q1 2026

West Bancorporation (NASDAQ: WTBA), an Iowa-based bank holding company, reported net income of $10.6 million for the three months ended March 31, 2026, up 35% from $7.8 million in the same period a year earlier. Diluted earnings per share rose to $0.61 from $0.46. Read more earnings reports.

The earnings improvement came as net interest income climbed 17% to $24.4 million from $20.9 million in the first quarter of 2025. Total interest income increased to $47.4 million from $46.1 million, while interest expense fell to $23.0 million from $25.3 million. Deposit interest expense dropped to $19.3 million from $21.4 million.

Noninterest income rose to $2.6 million from $2.2 million, driven by trust services revenue of $1.0 million, up from $777,000. Service charges on deposit accounts generated $508,000 compared to $471,000, and debit card interchange income reached $472,000 versus $446,000.

Operating expenses increased to $13.5 million from $13.1 million. Salaries and employee benefits, the largest expense category, rose to $7.6 million from $7.0 million. Occupancy and equipment costs edged up to $2.0 million from $2.0 million, while FDIC insurance premiums declined to $473,000 from $587,000.

The company's balance sheet showed total assets of $4.01 billion at March 31, 2026, down from $4.14 billion at December 31, 2025. Net loans stood at $2.96 billion, compared to $2.97 billion at year-end. The allowance for credit losses remained essentially flat at $30.5 million.

Deposits totaled $3.33 billion at quarter-end, down $133.5 million from $3.47 billion. Noninterest-bearing demand deposits fell to $511.0 million from $540.4 million, while interest-bearing demand deposits declined to $490.0 million from $577.8 million. Savings and money market accounts decreased to $1.82 billion from $1.84 billion, partially offset by time deposits rising to $515.8 million from $510.8 million.

Cash and cash equivalents contracted to $362.0 million from $471.1 million as the company deployed liquidity. Securities available for sale decreased slightly to $456.4 million from $468.4 million.

The company recorded no credit loss expense for the quarter, compared to a provision of $35,000 in the prior-year period. Noninterest expense as a percentage of total revenue remained under control despite the increase in salaries.

West Bancorporation declared a quarterly dividend of $0.25 per common share, consistent with the prior year, resulting in total cash dividends of $4.2 million. The company ended the quarter with 17.0 million shares outstanding, up from 16.9 million at December 31, 2025.

Stockholders' equity increased to $270.7 million from $266.0 million, despite accumulated other comprehensive losses widening to $69.4 million from $68.5 million. Retained earnings rose to $300.6 million from $294.3 million.

Financial Summary