West Bancorporation, Inc.

West Bancorporation reported Q2 2026 net income of $11.1 million, up from $8.0 million in Q2 2025, a 39% increase. Net interest income increased by $4.1 million, or 19%, year over year, and net interest margin improved 10 basis points sequentially and 42 basis points from the prior-year quarter. The cost of deposits declined 2 basis points from the prior quarter and 46 basis points from Q2 2025, while noninterest expenses rose 2% year over year; there was no provision for credit losses and no unusual items in noninterest income or noninterest expense. On guidance, management said about $600 million of loans will reprice over the next 12 months at a weighted average rate in the low to mid-4s, with some slowdown in the second half of the year and a bigger share of repricing in the first half of next year. They also said they do not expect any large expense projects in 2026 and do not foresee significant noninterest expense fluctuations.

CEO Dave Nelson struck an upbeat tone, calling it “another very strong quarter” and highlighting 37% year-to-date net income growth, a ROAE a little over 16%, and a stronger balance sheet with higher liquidity and capital. He emphasized pristine credit quality and said the board approved a dividend increase to $0.26 per share. In response to macro questions, he said he expects some lower short-term rates and hopes that would help expand loan demand.

CFO Jane Funk said Q2 net income was $11.1 million, up 39% from last year’s second quarter, and reiterated that year-to-date net income is 37% above the first half of 2025. She pointed to a 19% increase in net interest income, a 10 basis point sequential NIM expansion, and a 42 basis point year-over-year NIM improvement, while deposit costs fell 2 basis points sequentially and 46 basis points year over year. She said credit quality is strong with no provision booked this quarter, expenses were well controlled at +2% year over year, and there were no unusual items. On outlook, she said roughly $600 million of loans will reprice over the next 12 months and that there should not be any large expense-driving projects this year.

Analysts focused on the competitive environment for loans and deposits, the timing of loan growth, criticized asset migration, repricing tailwinds, payoff activity, tax rate variability, and the expense outlook. Management said deposit competition is fierce across transactional accounts, money market accounts, and CDs, while lending remains healthy but constrained by cautious development borrowers and asset payoffs. They also said about $200 million of developed properties has been sold or moved to nonrecourse financing in the first six months, some additional payoffs are likely in Q3, and most payoff activity should slow after that.