First-quarter financial results for West Bancorporation Inc., the parent company of West Bank, were better than expected, president and CEO David Nelson said during a recent earnings report.

“Hopefully we have found the bottom in terms of our margins,” Nelson said during the earnings call. “Our credit quality continues to be pristine with essentially no problem loans and no past-due loans over 30 days at quarter end.”

In the first quarter that ended on March 31, West Bancorporation reported net income of $5.8 million, or 35 cents per diluted common share. In 2023’s fourth quarter, net income was $4.5 million, or 27 cents per diluted share, and in 2023’s first quarter, net income was $7.8 million, or 47 cents per diluted share.

The financial institution, with eleven locations in Iowa and Minnesota, announced a quarterly dividend of 25 cents per share that will be payable to stockholders of record on May 8.

Harlee Olafson, the bank’s chief risk officer and executive vice president, said during the earnings call that West Bancorporation stress-tests its portfolio quarterly and has “seen improving trends in total loan-to-value and debt service coverage.”

The institution’s office portfolio totals about $180 million, and the average loan-to-value is 68%, Olafson said. Half of the institution’s office portfolio is owner-occupied properties, he said.

The increase in interest rates has meant few new projects have been added to West Bancorporation’s portfolio, Olafson said.

Also, during the earnings report, Nelson touted the financial institution’s move to its new headquarters at 3330 Westown Parkway in West Des Moines. The institution owns the property and new four-story building. West Bancorporation offices previously had been in leased space.
West Bancorporation’s first-quarter financial result highlights include:

• A $52.6 million increase in loan activity compared to 2023’s fourth quarter. The institution reported $2.980 billion in loans in the first quarter compared with $2.927 billion in the fourth quarter. The increase is mostly due to funding previously committed construction loans, according to a news release.
• A $91.3 million increase in brokered deposits compared with the fourth quarter. Deposits totaled $396.4 million, up 3.1% from the fourth quarter, when deposits were $305.4 million.

For more information about West Bancorporation’s first-quarter earnings, click here.