West Bancorporation reports Q4 EPS 27c vs 53c last year

The efficiency ratio was 64.66 percent for the fourth quarter of 2023, compared to 60.83 percent for the third quarter of 2023. The increase in the efficiency ratio was primarily due to the decrease in noninterest income. This decrease was primarily attributable to $431 thousand in loan swap fees that were earned in the third quarter of 2023. Net interest margin, on a fully tax-equivalent basis, was 1.87 percent for the fourth quarter of 2023, compared to 1.91 percent for the third quarter of 2023. David Nelson, President and Chief Executive Officer of the Company, commented, “Like the rest of our industry, our Company experienced some significant margin challenges in 2023. The interest rate environment, including dramatic increases in short-term rates, an ongoing inverted yield curve and aggressive deposit competition, had a significant impact on our cost of funds and net interest margin. We have a clear understanding of what is driving our challenges, along with a clear understanding of our path forward to more normalized margins.”