West Bancorporation reported third-quarter 2026 net income of $11.6 million, up from both the previous quarter and a year earlier, and declared a quarterly dividend of 26 cents per share. The Iowa-based parent of West Bank also reported loan growth and a higher net interest margin, alongside declines in deposits and continued low levels of problem loans.
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Earnings improved: Net income was $11.6 million, or 67 cents per diluted share, compared with $11.1 million, or 64 cents, in the second quarter and $9.3 million, or 55 cents, in the third quarter of 2025. The company said net income for the first nine months of 2026 was up 32% from the same period last year.
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Profitability measures rose: Third-quarter return on average equity was 16.41%, versus 16.21% in the prior quarter. For the first nine months, annualized return on average equity was 16.18%, compared with 14.27% a year earlier. Return on average assets was 1.16% in the third quarter.
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The dividend is payable Nov. 25: The 26-cent-per-share dividend will go to shareholders of record on Nov. 11.
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Loans grew, while deposits declined: Loan balances increased $45.1 million, or 1.5%, from June 30 to Sept. 30. Deposits excluding brokered deposits fell $65.8 million, or 2%, during the quarter; brokered deposits declined by a further $8.5 million. Estimated uninsured deposits were 28.5% of total deposits, excluding reciprocal-network deposits, brokered deposits and public funds protected by state programs.
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Net interest margin expanded: The fully tax-equivalent net interest margin was 2.77%, up from 2.69% in the second quarter. The company attributed stronger profitability to margin expansion and expense discipline, and said its balance-sheet management had reduced wholesale funding while supporting steady growth in net interest income.
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Credit measures remained strong: The company recorded no loan credit-loss expense in either the second or third quarter. Its allowance for credit losses was 1.02% of total loans at quarter-end, down from 1.03% at the end of June. There were no nonaccrual loans at either quarter-end, and the company said it had no loans more than 30 days past due for a ninth consecutive quarter-end.
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Some criticized-loan balances decreased: Substandard loans declined to $13.8 million from $14.4 million, and watch-list loans fell to $6.7 million from $7.1 million, primarily because of principal payments. The substandard loans involved two commercial and commercial real-estate borrowers; the company said it believed the loans were sufficiently collateralized.
The results point to higher reported earnings and a wider interest margin, while the quarter’s loan growth coincided with lower deposits. The company characterized its capital and liquidity as strong and said its underwriting standards remained strict.