West Bancorporation Reports Strong Q2 Earnings with Improved Net Income and Credit Quality
West Bancorporation (NASDAQ:WTBA) reported strong second-quarter earnings for 2026, with net income rising to $11.1 million from $8 million in the same period a year ago — an increase of 39%. The company also saw a 19% rise in net interest income and maintained robust credit quality as of June 30, including no loans more than 30 days past due or nonaccruals. Management noted continued challenges from commercial real estate payoffs and intense deposit competition, particularly in key markets like Minnesota. The bank's return on average equity for the first half of 2026 was just over 16%, with year-to-date net income up by 37%. CEO Dave Nelson highlighted strong liquidity and capital levels as well as a dividend increase to $0.26 per share, effective August 5. CFO Jane Funk noted that while deposit costs have declined significantly from the previous quarter and last year, pricing pressures remain high. Looking ahead, West Bancorporation expects about $600 million in loans to reprice over the next 12 months, with current weighted average rates in the low- to mid-4% range. The company's proactive risk management has led to a significant reduction in its loan watch list.
Tickers: $WTBA
Topics: banking credit quality dividend increase financial performance