West Bancorporation (WTBA) AI Stock Analysis

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West Bancorporation

(NASDAQ:WTBA)

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Rating:70Outperform

Price Target:$33.00▲(7.91% Upside)

Action:reiterated

Date:10/30/26

WTBA scores well overall due to improving financial performance (especially cash flow quality), a constructive technical uptrend, and supportive valuation (reasonable P/E with a solid dividend). The score is capped by soft TTM revenue trends, historical margin volatility, and earnings-call risks around deposit competition and loan payoffs that could temper net interest margin improvement.

Positive Factors

Earnings and margin expansionStrong earnings growth alongside higher net interest income and margin expansion indicates improved core banking profitability. This supports internal capital generation and provides a durable earnings foundation, although future performance will still depend on sustaining asset yields and funding discipline.

Negative Factors

Flat loan growth and payoffsLoan growth has been constrained because new production is being offset by customer asset sales and secondary-market refinancing. Persistent payoffs can reduce earning-asset growth, limit net interest income expansion, and make the robust pipeline less effective in translating into balances.

West Bancorporation (WTBA) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $521.20M
Dividend Yield: 3.34%
Average Volume (3M): 61.91K
Price to Earnings (P/E): 12.7
Beta (1Y): 0.53
Revenue Growth: 0.17%
EPS Growth: 25.46%
Country: US
Employees: 180
Sector: Financial
Sector Strength: 68
Industry: Banks - Regional

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 offeri...

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 ind...

West Bancorporation Earnings Call Summary

Earnings Call Date:Oct 29, 2026(Q3-2026)|% Change Since:1.24%|Next Earnings Date:Jan 28, 2027

Earnings Call SentimentPositive

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.

Positive Updates

Strong Quarterly and Year-to-Date Earnings Growth

Third-quarter net income was $11.6 million, compared with $9.3 million in the third quarter of 2025, representing a 25% increase. Year-to-date net income was $33.3 million, 32% higher than the first nine months of 2025.

Negative Updates

Historically Flat Net Loan Growth

Management identified flat loan growth as the main unfavorable aspect of the year. Good loan production was offset by customers selling assets, and the company continues to experience notable payoffs from secondary-market refinancing and asset sales. Approximately $30 million of known payoffs was expected between the call date and year-end.

Company Guidance

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.

West Bancorporation Financial Statement Overview

Summary

Financials are stable-to-improving: profitability has rebounded versus 2023–2024 and free cash flow is currently strong with good earnings quality. Offsetting this, TTM revenue is soft/declining and margins have been volatile versus the stronger 2021–2022 period, while leverage remains moderately elevated (debt-to-equity still above 1.0).

Income Statement

64Positive

Balance Sheet

58Neutral

Cash Flow

71Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	201.26M	198.49M	197.84M	169.75M	133.56M	116.42M
Gross Profit	107.48M	95.25M	78.13M	77.78M	104.45M	105.69M
EBITDA	58.28M	49.01M	34.37M	34.94M	63.86M	66.52M
Net Income	40.70M	32.56M	24.05M	24.14M	46.40M	49.61M
Balance Sheet
Total Assets	3.89B	4.14B	4.01B	3.83B	3.61B	3.50B
Cash, Cash Equivalents and Short-Term Investments	438.80M	639.50M	788.04M	689.28M	689.01M	951.65M
Total Debt	312.85M	376.41M	392.63M	592.64M	485.86M	199.87M
Total Liabilities	3.62B	3.88B	3.79B	3.60B	3.40B	3.24B
Stockholders Equity	271.69M	265.99M	227.88M	225.04M	211.11M	260.33M
Cash Flow
Free Cash Flow	53.40M	43.15M	13.67M	-11.14M	38.13M	49.13M
Operating Cash Flow	54.75M	46.48M	39.81M	25.25M	59.44M	57.88M
Investing Cash Flow	104.05M	93.30M	-27.34M	-168.68M	-357.83M	-537.21M
Financing Cash Flow	-119.31M	87.83M	165.65M	182.25M	132.11M	275.72M

West Bancorporation Technical Analysis

Technical Analysis SentimentPositive

Last Price30.58

Price Trends

50DMA29.28Positive

100DMA28.30Positive

200DMA25.97Positive

Market Momentum

MACD0.46Negative

RSI58.48Neutral

STOCH47.95Neutral

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 30.58 is above the 20-day moving average (MA) of 29.98, above the 50-day MA of 29.28, and above the 200-day MA of 25.97, indicating a bullish trend. The MACD of 0.46 indicates Negative momentum. The RSI at 58.48 is Neutral, neither overbought nor oversold. The STOCH value of 47.95 is Neutral, 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

3 New Risks

1.Changes in accounting policies or standards could materially impact our financial statements.Q4, 2024

2.Our ability to pay dividends is subject to certain limitations and restrictions, and there is no guarantee that we will be able to continue paying the same level of dividends in the future that we have paid in the past or that we will be able to pay future dividends at all.Q4, 2024

3.Issues with the use of artificial intelligence in our marketplace may result in reputational harm or liability, or could otherwise adversely affect our business.Q4, 2023

West Bancorporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

WTBA against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BSVN	81Outperform	$635.21M	13.55	15.74%	1.88%	-1.46%	-5.48%
ATLO	76Outperform	$301.77M	11.88	12.20%	2.70%	8.44%	59.77%
FMAO	76Outperform	$510.39M	11.80	11.25%	2.56%	6.75%	34.29%
FBIZ	75Outperform	$626.49M	10.79	14.87%	1.82%	4.43%	12.02%
CZWI	73Outperform	$223.96M	15.58	7.64%	1.41%	1.78%	16.81%
WTBA	70Outperform	$522.56M	12.74	14.94%	3.34%	0.17%	25.46%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

* Financial Sector Average

Performance Comparison

WTBA and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
WTBA	West Bancorporation	30.58	9.51	45.13%
ATLO	Ames National Corporation	34.10	13.49	65.47%
CZWI	Citizens Community	23.37	6.81	41.14%
FBIZ	First Business Financial Services	74.92	23.35	45.28%
FMAO	Farmers & Merchants Bancorp, Inc.	36.70	12.65	52.58%
BSVN	Bank7 Corp.	58.96	18.38	45.30%

West Bancorporation Corporate Events

DividendsFinancial Disclosures

West Bancorporation Highlights Strong Q3 2026 Earnings Momentum

Positive

Oct 29, 2026

On October 29, 2026, West Bancorporation reported third-quarter 2026 net income of $11.6 million, or $0.67 per diluted share, up from both the prior quarter and the year-earlier period, while nine‑month 2026 net income rose 32% versus 2025. The board...

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.

Date of analysis: Oct 30, 2026

West Bancorporation AI Stock Analysis