West Bancorporation, Inc. (WTBA) | Investment Case

1. Company Snapshot

1.a. Company Description

West Bancorporation, Inc.operates as the financial holding company for West Bank that provides community banking and trust services to individuals and small- to medium-sized businesses in the United States.It accepts various deposit products, including checking, savings, and money market accounts, as well as time certificates of deposit.

The company also provides loan products comprising commercial real estate loans, construction and land development loans, commercial lines of credit, and commercial term loans; consumer loans, including loans extended to individuals for household, family, and other personal expenditures not secured by real estate; and 1-4 family residential mortgages and home equity loans.In addition, it offers trust services, including the administration of estates, conservatorships, personal trusts, and agency accounts.Further, the company provides internet and mobile banking services; treasury management services comprising cash management, client-generated automated clearing house transaction, remote deposit, and fraud protection services; and merchant credit card processing services and corporate credit cards.

It has seven offices in the Des Moines area; one office in Coralville and Iowa; and one office each in Rochester, Owatonna, Mankato, and St. Cloud, Minnesota.West Bancorporation, Inc.was founded in 1893 and is headquartered in West Des Moines, Iowa.

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1.b. Last Insights on WTBA

West Bancorporation, Inc.'s recent performance was driven by strong Q2 2025 earnings, with net income of $8.0 million, or $0.47 per diluted common share, surpassing the Zacks Consensus Estimate of $0.45 per share. The company's quarterly dividend declaration also underscores its financial stability. A notable year-over-year increase in earnings, from $0.31 per share, highlights improving profitability. According to recent earnings calls, management remains optimistic about the company's prospects, citing a solid financial position. (Source: Zacks)

1.c. Company Highlights

Last Price	22.2
Change Percentage	-1.25%
Open	22.38
Previous Close	22.48
Market Cap ( Millions)	376
Volume	4335
Year High	24.16
Year Low	17.31
M A 50	21.03
M A 200	20.08

FCF Yield	11.23%
Dividend Yield	4.51%
ROE	13.40%
Debt / Equity	15.28%
Net Debt / EBIDTA	26.38%
Price To Book	1.47
Price Earnings Ratio	11.67
Price To FCF	8.91
Price To sales	1.9
EV / EBITDA	8.45

2. West Bancorporation's Earnings Beat Expectations with Strong Margin Expansion

West Bancorporation, Inc. reported a significant 16% earnings increase over the prior quarter and a 55% increase over the third quarter of last year, driven by an expanding margin. The company's earnings per share (EPS) came in at $0.55, beating analyst estimates of $0.47. The improved financial performance was largely due to the company's ability to replace lower-yielding assets with new ones at better interest rates, resulting in a higher yield on the loan portfolio. The effective tax rate for the quarter was around 19%, but is expected to return to the prior level of 22-23% going forward.

Publication Date: Nov -12

                                    📋 Highlights
                                    Earnings Growth::
                                                16% increase QoQ and 55% YoY in third-quarter earnings.
Credit Quality::
                                                Zero problem loans or 30-day past dues reported.
Dividend Declared::
                                                $0.25 per share quarterly dividend, payable on Nov 19, 2025.
Loan Portfolio Repricing::
                                                $550 million fixed-rate loans to reprice in next 12 months, boosting loan yield.
Minnesota Growth Contribution::
                                                Regional venture accounts for ~33% of company’s total operations.

                                

Loan and Deposit Trends

The company's loan outstandings were up slightly at $3 billion, with a few larger payoffs from asset sales and refinance activity. The majority of those assets were priced below the current environment and were replaced with quality new assets at better interest rates. Deposit gathering efforts continue to be an emphasis, with a focus on attracting new customers and depositors. The company remains selective in obtaining new loan opportunities, which are less than in prior years.

Growth Prospects and Credit Quality

The company expects to maintain its current pace, with mid-single-digit growth doable going forward. West Banc's credit quality remains very strong with essentially no problem loans or 30-day past due loans. The company's selective approach to credit perspectives has contributed to its strong credit quality. The $50 million municipal deposit that was flagged last quarter has come out, and the company expects to fund its growth outlook with deposit gathering and cash flow off the securities portfolio.

Valuation and Dividend

The company's stock is trading at a Price-to-Tangible Book Value (P/TBV) of around 1.45, which is reasonable given its strong financial performance and growth prospects. The Dividend Yield is 4.57%, making it an attractive option for income-seeking investors. The Board declared a $0.25 per share quarterly dividend to common stockholders payable on November 19, 2025. With analysts estimating revenue growth of 13.9% next year, the company's valuation multiples may expand further, making it a potentially attractive investment opportunity.

3. NewsRoom

3 Savings & Loan Industry Stocks to Buy on Solid Industry Prospects

Dec -01

Source: zacks.com

New Strong Buy Stocks for Nov. 26: JRVR, CMC, and More

Nov -26

Source:

Best Income Stocks to Buy for Nov. 26

Nov -26

Source:

West Bancorporation Inc. Cuts Stock Holdings in Amazon.com, Inc. $AMZN

Nov -01

Source: defenseworld.net

West Bancorp (WTBA) Upgraded to Strong Buy: What Does It Mean for the Stock?

Oct -28

Source: zacks.com

West Bancorporation, Inc. (WTBA) Q3 2025 Earnings Call Transcript

Oct -23

Source: seekingalpha.com

West Bancorp (WTBA) Beats Q3 Earnings and Revenue Estimates

Oct -23

Source: zacks.com

West Bancorporation, Inc. Announces Third Quarter 2025 Financial Results and Declares Quarterly Dividend

Oct -23

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.00%)

6. Segments

Banking and Related Activities

Expected Growth: 2.0%

West Bancorporation, Inc.'s 2.0% growth in Banking and Related Activities is driven by increasing loan demand, expansion of commercial banking services, and strategic acquisitions. Additionally, a strong focus on digital transformation, cost savings initiatives, and a favorable interest rate environment contribute to the segment's growth.

7. Detailed Products

Commercial Loans

West Bancorporation, Inc. offers a range of commercial loans to businesses, including term loans, lines of credit, and construction loans, to help them finance their operations and growth.

Treasury Management Services

West Bancorporation, Inc. provides treasury management services, including cash management, wire transfers, and account reconciliation, to help businesses manage their cash flow and optimize their financial operations.

Mortgage Lending

West Bancorporation, Inc. offers mortgage lending services, including residential and commercial mortgage loans, to help individuals and businesses finance their property purchases.

Deposit Services

West Bancorporation, Inc. provides deposit services, including checking and savings accounts, certificates of deposit, and individual retirement accounts, to help individuals and businesses manage their finances.

Wealth Management Services

West Bancorporation, Inc. offers wealth management services, including investment management, trust services, and financial planning, to help individuals and businesses manage their wealth.

Card Services

West Bancorporation, Inc. provides card services, including debit and credit cards, to help individuals and businesses make payments and manage their finances.

8. West Bancorporation, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

West Bancorporation, Inc. operates in a highly competitive industry, with many substitutes available to customers. However, the company's strong brand recognition and customer loyalty help to mitigate this threat.

Bargaining Power Of Customers

West Bancorporation, Inc.'s customers have some bargaining power due to the availability of alternative banking services. However, the company's strong relationships with its customers and its ability to offer personalized services help to reduce this power.

Bargaining Power Of Suppliers

West Bancorporation, Inc. has a diverse supplier base, which reduces the bargaining power of individual suppliers. The company's strong financial position also gives it the ability to negotiate favorable terms with its suppliers.

Threat Of New Entrants

The banking industry has high barriers to entry, including regulatory hurdles and significant capital requirements. This makes it difficult for new entrants to enter the market and compete with established players like West Bancorporation, Inc.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players competing for market share. West Bancorporation, Inc. faces intense competition from other banks and financial institutions, which can make it difficult to attract and retain customers.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	72.51%
Debt Cost	3.95%
Equity Weight	27.49%
Equity Cost	8.51%
WACC	5.20%
Leverage	263.72%

11. Quality Control: West Bancorporation, Inc. passed 1 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

West Bank

A-Score: 6.5/10

Value: 6.8

Growth: 4.8

Quality: 6.8

Yield: 8.0

Momentum: 6.0

Volatility: 6.7

1-Year Total Return ->

Affinity Bancshares

A-Score: 6.2/10

Value: 6.3

Growth: 7.3

Quality: 5.4

Yield: 7.0

Momentum: 3.0

Volatility: 8.3

1-Year Total Return ->

Stock Yards Bancorp

A-Score: 5.9/10

Value: 4.4

Growth: 6.8

Quality: 6.5

Yield: 4.0

Momentum: 6.5

Volatility: 7.3

1-Year Total Return ->

MainStreet Bancshares

A-Score: 5.7/10

Value: 7.6

Growth: 4.2

Quality: 4.3

Yield: 3.0

Momentum: 7.5

Volatility: 7.3

1-Year Total Return ->

HomeStreet

A-Score: 4.6/10

Value: 9.4

Growth: 1.9

Quality: 3.8

Yield: 3.0

Momentum: 4.0

Volatility: 5.3

1-Year Total Return ->

First Guaranty Bancshares

A-Score: 3.6/10

Value: 6.5

Growth: 4.8

Quality: 2.8

Yield: 3.0

Momentum: 1.0

Volatility: 3.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-3.09%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.20%

West Bancorporation, Inc. - US95123P1066

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on WTBA

1.c. Company Highlights

Weak Momentum

Average Yield

Average Quality

Earnings Beats

Revenues Beats

Earnings Miss

Stable Momentum

Average Growth

Lower Quality

Expensive

Revenues Miss

Lower Growth

Fairly Valued

2. West Bancorporation's Earnings Beat Expectations with Strong Margin Expansion

Loan and Deposit Trends

Growth Prospects and Credit Quality

Valuation and Dividend

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.00%)

6. Segments

Banking and Related Activities

Expected Growth: 2.0%

7. Detailed Products

Commercial Loans

Treasury Management Services

Mortgage Lending

Deposit Services

Wealth Management Services

Card Services

8. West Bancorporation, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: West Bancorporation, Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

22.19$

Current Price

22.2$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA