West Bancorporation (WTBA) Q3 2026 Earnings Report

The call was predominantly positive. West Bancorporation reported strong earnings growth, expanding net interest margin, pristine credit quality, controlled expenses, a return to quarterly loan growth, and a robust pipeline. The main challenges were historically flat net loan growth caused by customer asset sales, economic and political uncertainty, intense deposit competition, and the expectation that future rate hikes will slow margin improvement.

Management said there are likely a couple more asset sales coming sometime next year, but it is likely to subside during 2027; known payoffs are about $30 million between now and the end of the year, and fourth-quarter loan growth could be “robust.” Over the next 12 months, about $550 million in fixed rate loans will reprice at a weighted average rate of “somewhere around 450-ish basis points,” while new loan production is coming on sheet at “High sixes.” Management said rate hikes will “slow down our net interest margin improvement,” but it does not necessarily foresee a squeeze on margin, “but just a probably slowdown in that improvement”; fourth-quarter expenses are expected to be “similar to what we’ve been doing throughout this year,” with some increase in technology and product spending during 2027 and 2028, although specifics have not been determined, and this quarter’s tax rate would “probably” be a good run rate.