West Bancorporation earnings decline slightly in third quarter

Company declares $.25 quarterly dividend

West Bancorporation earnings
The West Bank branch in Coralville. CREDIT WEST BANCORPORATION

West Bancorporation, the parent company of West Bank, on Oct. 27 reported third-quarter net income of $11.6 million, or $.69 per diluted common share, for the third quarter of 2022.

The third quarter report represents a slight decline from the second quarter, when West Bancorporation reported net income of $12.7 million and earnings of $.76 per diluted common share.

For the first three quarters of 2022, West Bancorporation reported net income of $37.5 million, or $2.23 per diluted common share, essentially flat compared to earnings of $2.25 on net income of $37.7 million for the first three quarters of 2021.

West Bancorporation ended 2021 with a net income of $49.6 million, a record total for the company and up markedly from the $32.7 million reported in 2020.

On Oct. 26, West Bancorporation’s board of directors declared a regular quarterly dividend of $0.25 per common share for the third quarter of 2022, payable on Nov. 23 to stockholders of record as of Nov. 9.

“Our company had another strong quarter,” West Bancorporation president and CEO David Nelson said in a release. “Our credit quality remains pristine, and we continue to see opportunities for high quality loan growth, although at a slower pace than we experienced the last few quarters. We remain diligent in monitoring and managing our credit quality as we anticipate increasing economic challenges as the Federal Reserve aggressively seeks to reduce inflation by raising interest rates.

“While the yield on our loan portfolio is increasing, changes in liquidity and competitive deposit pricing, resulting from volatility and uncertainty in the interest rate environment, has put upward pressure on our cost of funds,” Mr. Nelson added. “Our capital position is strong and we remain focused on our highly successful core business model to continue building shareholder value.”

West Bank, headquartered in Des Moines, has a branch office in Coralville.