West Bancorporation Inc., the parent company of West Bank, today reported third-quarter net income of $7.5 million, or 46 cents per share, topping year-ago net income of $7.1 million and marking a new earnings record for the company. Year over year, West Bank’s loan balances have increased by 14.7%, and the bank earlier this year expanded into the Minnesota market with the opening of three new branches.  

For the first nine months of 2019, net income was $21.1 million, or $1.28 per diluted common share, compared with $21.3 million, or $1.30 per diluted common share, for the first nine months of 2018. The company’s board on Wednesday declared a regular quarterly dividend of 21 cents per common share. 

West Bancorporation’s 2019 financial results have been affected by compensation, professional fees, and occupancy and equipment costs related to its new Minnesota offices, which totaled approximately $1.9 million on a pretax basis for the first nine months of 2019. The company estimates the pretax benefit from loans and deposits in these markets to be approximately $500,000 through Sept. 30. 

Dave Nelson, president and CEO of West Bancorporation, said in a release that he’s encouraged by the new business activity in the Minnesota markets. 

“We have assembled teams of experienced bankers that are building relationships with local business owners and business leaders,” Nelson said. “West Bank remains committed to our community focused business banking model with local leadership. We believe we are uniquely positioned to seize opportunities in all of our markets with the seasoned business banking teams we bring to the table. We are confident that this expansion sets us on a path for building shareholder value.”

Additionally, the company’s net interest margin has been affected by the continued inversion of the U.S. Treasury yield curve and a highly competitive market for loans and deposits, Nelson said.