West Bancorporation (NASDAQ:WTBA) Announces Quarterly Earnings Results, Beats Estimates By $0.01 EPS

West Bancorporation (NASDAQ:WTBA) issued its quarterly earnings data on Thursday. The financial services provider reported $0.64 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.63 by $0.01, FiscalAI reports. The firm had revenue of $28.22 million during the quarter, compared to analysts’ expectations of $28.15 million. West Bancorporation had a return on equity of 14.88% and a net margin of 17.30%.During the same period in the previous year, the firm posted $0.47 earnings per share.

Here are the key takeaways from West Bancorporation’s conference call:

• West Bancorporation reported a strong second quarter, with net income up 39% year over year to $11.1 million and year-to-date return on average equity a little over 16%.
• Net interest income and margin improved, helped by higher loan yields and lower deposit costs; management said the margin rose 10 basis points sequentially and 42 basis points from a year ago.
• Credit quality remained pristine with no loans past due 30 days, no OREO, no non-accruals, and no provision for credit losses recorded in the quarter.
• Management said loan growth is being offset by payoffs and refinancings, including more than $200 million of developed properties moving off balance sheet in the first half, though the pipeline remains healthy.
• The board approved a higher quarterly dividend of $0.26 per share, which management said is the highest dividend level in the company’s history.

West Bancorporation Price Performance

Shares of WTBA traded down $0.07 during trading hours on Friday, reaching $27.12. 3,391 shares of the company traded hands, compared to its average volume of 49,125. The company has a quick ratio of 0.99, a current ratio of 0.99 and a debt-to-equity ratio of 1.39. The stock has a market capitalization of $461.88 million, a PE ratio of 13.14 and a beta of 0.72. West Bancorporation has a fifty-two week low of $17.31 and a fifty-two week high of $27.87. The stock has a fifty day simple moving average of $25.30 and a 200 day simple moving average of $24.46.

West Bancorporation Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 19th. Stockholders of record on Wednesday, August 5th will be given a $0.26 dividend. This is an increase from West Bancorporation’s previous quarterly dividend of $0.25. This represents a $1.04 annualized dividend and a dividend yield of 3.8%. The ex-dividend date is Wednesday, August 5th. West Bancorporation’s dividend payout ratio (DPR) is currently 48.54%.

Institutional Investors Weigh In On West Bancorporation

Several hedge funds have recently modified their holdings of WTBA. Russell Investments Group Ltd. raised its position in shares of West Bancorporation by 4,593.5% in the third quarter. Russell Investments Group Ltd. now owns 1,455 shares of the financial services provider’s stock valued at $30,000 after buying an additional 1,424 shares during the last quarter. BNP Paribas Financial Markets grew its stake in West Bancorporation by 68.9% in the 2nd quarter. BNP Paribas Financial Markets now owns 1,618 shares of the financial services provider’s stock worth $32,000 after acquiring an additional 660 shares during the period. CANADA LIFE ASSURANCE Co raised its holdings in West Bancorporation by 37.6% in the 4th quarter. CANADA LIFE ASSURANCE Co now owns 1,665 shares of the financial services provider’s stock valued at $37,000 after acquiring an additional 455 shares during the last quarter. Tower Research Capital LLC TRC lifted its stake in shares of West Bancorporation by 662.9% during the 2nd quarter. Tower Research Capital LLC TRC now owns 3,784 shares of the financial services provider’s stock worth $74,000 after purchasing an additional 3,288 shares during the period. Finally, Empowered Funds LLC purchased a new position in shares of West Bancorporation during the 4th quarter worth $126,000. 44.30% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on WTBA. Piper Sandler raised their price target on West Bancorporation from $26.00 to $27.00 and gave the company a “neutral” rating in a research report on Friday, June 26th. Wall Street Zen upgraded shares of West Bancorporation from a “hold” rating to a “buy” rating in a research report on Saturday, April 25th. Hovde Group boosted their price objective on shares of West Bancorporation from $25.50 to $28.00 and gave the stock a “market perform” rating in a research report on Friday. Weiss Ratings reissued a “buy (b)” rating on shares of West Bancorporation in a research note on Friday, June 5th. Finally, Zacks Research downgraded shares of West Bancorporation from a “strong-buy” rating to a “hold” rating in a report on Thursday, April 2nd. One equities research analyst has rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $27.50.

Key Headlines Impacting West Bancorporation

Here are the key news stories impacting West Bancorporation this week:

• Positive Sentiment: West Bancorporation beat second-quarter earnings estimates, reporting $0.64 per share versus the $0.63 consensus, with revenue of $28.22 million also slightly ahead of expectations. Article Title
• Positive Sentiment: The company posted stronger year-over-year profitability, with Q2 net income rising to $11.1 million from $8.0 million a year ago, while return on equity improved and net interest margin expanded. Article Title
• Positive Sentiment: West Bancorporation raised its quarterly dividend to $0.26 per share, a record high for the company and a sign of confidence in earnings and capital strength. Article Title
• Positive Sentiment: Hovde Group lifted its price target on WTBA to $28.00 from $25.50, signaling improved expectations even though it kept a “market perform” rating. Article Title
• Neutral Sentiment: Management highlighted strong deposit growth and a healthy balance sheet, but loan balances edged lower and substandard loans increased to $14.4 million, which investors may watch for credit-quality trends. Article Title

About West Bancorporation

West Bancorporation, Inc is the bank holding company for West Town Bank and Trust, a full-service community bank headquartered in Chicago, Illinois. Through its subsidiary, the company offers a comprehensive suite of commercial and consumer banking products, including deposit accounts, residential and commercial mortgages, business loans and treasury management services. West Bancorporation focuses on delivering personalized financial solutions to small- and medium-sized businesses, real estate developers and individual customers within its urban market.

Since launching operations in 2006, West Town Bank and Trust has steadily expanded its presence across the Chicago metropolitan area.