🧾 What This Document Is

This is a first-quarter 2026 earnings press release filed with the SEC. Public companies use these to quickly share their financial results with investors. Think of it as the company's "report card" for the first three months of the year (January-March 2026). It also includes the exciting news of a dividend payment.

🏢 What The Company Does

👉 In simple terms, West Bancorporation (WTBA) is the parent company of West Bank, a community bank based in Iowa. It's not a giant national bank like Chase or Bank of America. Instead, it focuses on serving small to medium-sized businesses and consumers in specific local markets across Iowa and Minnesota with loans, deposits, and trust services. It's been around since 1893!

💰 Financial Highlights: A Strong Quarter

This was a very good quarter for West Bank. Here’s the quick look:

• Net Income: Made $10.6 million ($0.61 per share). This is a 34.8% increase from the same quarter last year ($7.8 million) and a 43.2% jump from last quarter ($7.4 million).
• Dividend Declared: The Board said, "Here's some cash for being an owner!" They declared a $0.25 per share dividend. It will be paid on May 20, 2026, to shareholders on record by May 6, 2026.
• Profitability Engine (Net Interest Margin): This is the bank's key profit engine—the difference between what it earns on loans and pays on deposits. It expanded to 2.59% from 2.47% last quarter and 2.28% last year. 👉 Why it matters: A wider margin means the bank is making more profit from its core lending business.

📦 Pristine Balance Sheet & Credit Quality

The CEO called the balance sheet "exceptionally strong," and the numbers back it up.

• Zero Problem Loans: As of March 31, 2026, the bank had absolutely zero loans that were not accruing interest (nonaccrual). This is a major sign of health. It's also the 7th straight quarter with no loans more than 30 days late. That's "pristine" credit quality.
• Watch List Shrinking: Loans the bank is watching closely fell from $52.2 million to $41.3 million, mainly because one big $11.4 million loan was paid off.
• Capital Strength: The "tangible common equity ratio" (a measure of the bank's capital cushion) improved to 6.75% from 6.42% last quarter and 5.97% last year.

🔍 Loan & Deposit Trends: The Details

This is the core of banking—taking deposits and making loans. Here’s what happened:

• Loans: They decreased slightly by 0.3% this quarter. Why? Because many borrowers paid their loans off early, often to refinance at better rates elsewhere. This is a sign of a active market, not necessarily trouble.
• Deposits: They decreased 3.8% this quarter. The bank used fewer "brokered deposits" (deposits bought from other financial firms). Excluding those, core deposits fell 2.9%, which the bank says is due to normal cash flow swings for its customers. 👉 The Big Picture: Compared to a year ago, core deposits (excluding brokered ones) are up a healthy 7.7%, boosted by a large $243 million municipal deposit from a local customer received last year.

⚖️ Big Picture: Strengths & Risks

👍 Strengths:

• Profit Growth: Solid increases in both quarterly and year-over-year net income.
• Expanding Margins: Making more money on its core business.
• Rock-Solid Credit: Zero non-accrual loans is a best-in-class result.
• Efficient Operations: The "efficiency ratio" (lower is better) improved to 49.85%, meaning it costs the bank less than 50 cents to generate $1 of revenue.

⚠️ Risks & Considerations:

• Deposit Competition: The slight decline in deposits is a reminder that banks compete for customer funds, which can pressure profits.
• Interest Rate Environment: The bank's success in lowering its cost of deposits is key, but future rate changes could impact this.
• General Banking Risks: As with all banks, it faces risks from economic downturns, cyber threats, regulatory changes, and market sentiment.

📅 What's Next & How to Learn More

• Conference Call: Management will discuss these results live on April 23, 2026, at 2:00 p.m. CT. You can listen by dialing 800-715-9871 (Conference ID: 7846129).
• Full Details: For the nitty-gritty, the company filed its official Form 10-Q with the SEC. You can find it on their website: www.westbankstrong.com.

🧠 The Analogy

Think of West Bank like a well-run local family-owned grocery store. This quarter, they not only sold more goods (made more loans), but they also found a way to buy their supplies (deposits) for cheaper, boosting their profit margin on every sale. Best of all, they had zero shoplifting or spoiled food (no bad loans), which is a huge testament to their careful management. They're sharing some of their profits with the store's owners (shareholders) via a dividend.

🧩 Final Takeaway

West Bancorporation delivered a standout first quarter marked by profit surging 35% from last year, driven by a widening interest margin and a perfectly clean loan book with zero defaults. While they saw some deposit outflows, their overall financial foundation is exceptionally strong. This is the profile of a conservative, well-managed community bank firing on all cylinders.