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West Bancorporation
(NASDAQ:WTBA)
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Rating:74Outperform
Price Target:
$34.00
▲(19.34% Upside)
Action:Reiterated
Date:10/24/26
WTBA scores well due to improving financial performance (earnings and cash-flow rebound with reduced leverage) and a strong earnings-call outlook driven by margin expansion, pristine credit quality, and a sizeable loan repricing tailwind. Technicals also support the view with price above key moving averages and positive momentum. The main offsets are historical volatility in results, ongoing funding competition, and near-term loan balance/payoff headwinds.
Positive Factors
Margin Expansion
Improving net interest margin is strengthening the bank’s core earnings engine, while the sizable repricing pipeline provides a defined potential tailwind over the next several quarters. This can support profitability even as management manages ongoing funding-cost pressure.
Negative Factors
Deposit Competition
Intense competition for transactional accounts, money markets, and CDs can keep funding costs elevated and limit future net interest margin gains. Even with asset repricing benefits, persistent deposit pricing pressure may reduce the durability of earnings improvement and constrain spread expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Expansion
Improving net interest margin is strengthening the bank’s core earnings engine, while the sizable repricing pipeline provides a defined potential tailwind over the next several quarters. This can support profitability even as management manages ongoing funding-cost pressure.
Read all positive factors
West Bancorporation (WTBA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$518.81M
Dividend Yield3.32%
Average Volume (3M)60.33K
Price to Earnings (P/E)13.5
Beta (1Y)0.62
Revenue Growth0.14%
EPS Growth32.11%
CountryUS
Employees180
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.26
Shares Outstanding17,043,743
10 Day Avg. Volume67,718
30 Day Avg. Volume60,331
Financial Highlights & Ratios
PEG Ratio0.34
Price to Book (P/B)1.41
Price to Sales (P/S)1.89
P/FCF Ratio8.71
Enterprise Value/Market Cap1.54
Enterprise Value/Revenue3.99
Enterprise Value/Gross Profit7.75
Enterprise Value/Ebitda14.15
Forecast
1Y Price Target
$30.00Price Target Upside5.30% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)2.59
Revenue Forecast (FY)$113.65M
West Bancorporation Business Overview & Revenue Model
Company Description
West Bancorporation, Inc. functions as the holding company for West Bank, delivering a comprehensive suite of community banking and trust services. Serving individuals and small-to-medium enterprises throughout the United States, its financial off...
How the Company Makes Money
West Bancorporation makes money primarily through traditional banking activities conducted by its subsidiary, West Bank. The largest earnings driver is typically net interest income: the bank earns interest and fees on loans (e.g., commercial and ...
West Bancorporation Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call presented multiple strong financial metrics — double-digit net income growth, margin expansion, record dividend, pristine credit metrics and a sizable loan repricing pipeline — which outweigh near-term headwinds such as spot loan payoffs, contraction in development lending, intense deposit competition and a couple of isolated downgrades. Management expects continued margin tailwinds from loan repricing over the next 12 months and sees controlled expenses for the rest of the year.Positive Updates
Strong Net Income and Profitability
Q2 net income of $11.1 million, up 39% year-over-year (Q2 2025: $8.0M). Year-to-date net income is 37% higher than the first half of 2025. 2026 year-to-date return on average equity is a little over 16%.
Negative Updates
Spot Loan Balances Declined Despite Slight Increase in Average Loans
Average loan outstandings increased slightly sequentially, but period-end (spot) loan balances fell as the quarter included several larger payoffs and customer refinancing into the secondary market.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Net Income and Profitability
Q2 net income of $11.1 million, up 39% year-over-year (Q2 2025: $8.0M). Year-to-date net income is 37% higher than the first half of 2025. 2026 year-to-date return on average equity is a little over 16%.
Read all positive updates
Company Guidance
The company’s guidance emphasized continued margin improvement and stable operations: Q2 net income was $11.1M (vs. $8.0M a year ago, +~39%), year‑to‑date net income was +37% and return on average equity is a little over 16%; net interest income rose $4.1M (+19% YoY) while net interest margin improved +10 bps sequentially and +42 bps YoY, and deposit cost fell 2 bps QoQ (46 bps YoY) with only “a couple” bps change this quarter; credit remains pristine (0 loans past due/0 nonaccruals/0 OREO, watch list down 50% to ~$0.7M) so no provision for credit losses was recorded; management said roughly $600M of loans will reprice over the next 12 months (weighted average in the low‑to‑mid‑4% range, more weighted to H1 2027), expects payoff activity (including >$200M of development assets sold or moved to nonrecourse in H1) to continue into Q3 then moderate, foresees an upward bias to the margin from asset repricing despite intense deposit pricing competition, approved a quarterly dividend increase to $0.26/share (payable Aug. 19, record Aug. 5), and does not expect any material expense projects for the remainder of 2026 (potential investments targeted for 2027–28).West Bancorporation Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
66
Positive
Cash Flow
61
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 200.56M | 198.49M | 197.84M | 169.75M | 133.56M | 116.42M |
| Gross Profit | 103.19M | 95.25M | 78.13M | 77.78M | 104.45M | 105.69M |
| EBITDA | 56.49M | 49.01M | 34.37M | 34.94M | 63.86M | 66.52M |
| Net Income | 38.38M | 32.56M | 24.05M | 24.14M | 46.40M | 49.61M |
Balance Sheet | ||||||
| Total Assets | 4.03B | 4.14B | 4.01B | 3.83B | 3.61B | 3.50B |
| Cash, Cash Equivalents and Short-Term Investments | 477.56M | 639.50M | 788.04M | 689.28M | 689.01M | 951.65M |
| Total Debt | 374.04M | 376.41M | 392.63M | 592.64M | 485.86M | 199.87M |
| Total Liabilities | 3.75B | 3.88B | 3.79B | 3.60B | 3.40B | 3.24B |
| Stockholders Equity | 281.04M | 265.99M | 227.88M | 225.04M | 211.11M | 260.33M |
Cash Flow | ||||||
| Free Cash Flow | 49.38M | 43.15M | 13.67M | -11.14M | 38.13M | 49.13M |
| Operating Cash Flow | 50.45M | 46.48M | 39.81M | 25.25M | 59.44M | 57.88M |
| Investing Cash Flow | 108.38M | 93.30M | -27.34M | -168.68M | -357.83M | -537.21M |
| Financing Cash Flow | -70.34M | 87.83M | 165.65M | 182.25M | 132.11M | 275.72M |
West Bancorporation Technical Analysis
Positive
28.49
Price Trends
29.02
Positive
27.72
Positive
25.63
Positive
Market Momentum
0.24
Negative
63.88
Neutral
89.93
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WTBA, the sentiment is Positive. The current price of 28.49 is below the 20-day moving average (MA) of 29.13, below the 50-day MA of 29.02, and above the 200-day MA of 25.63, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 63.88 is Neutral, neither overbought nor oversold. The STOCH value of 89.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WTBA.
West Bancorporation Risk Analysis
West Bancorporation disclosed 38 risk factors in its most recent earnings report. West Bancorporation reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
West Bancorporation Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $298.49M | 11.74 | 12.20% | 2.73% | 8.44% | 59.77% | |
76 Outperform | $606.12M | 10.92 | 14.75% | 1.81% | 6.56% | 16.72% | |
75 Outperform | $503.27M | 11.75 | 11.25% | 2.57% | 6.75% | 34.29% | |
75 Outperform | $557.74M | 13.46 | 15.74% | 1.90% | -1.46% | -5.48% | |
74 Outperform | $518.81M | 13.47 | 14.31% | 3.32% | 0.14% | 32.11% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | $206.71M | 16.35 | 6.77% | 1.47% | 0.77% | 6.16% |
* Financial Sector Average
WTBA
West Bancorporation
30.44
9.49
45.27%
ATLO
Ames National
33.70
13.35
65.63%
CZWI
Citizens Community Bancorp
21.42
5.77
36.90%
FBIZ
First Business Financial
72.43
23.31
47.46%
FMAO
Farmers & Merchants Bancorp
36.54
13.35
57.55%
BSVN
Bank7
58.55
16.91
40.61%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.