West Bancorporation Exceeds Expectations with 37% Increase in Net Income
West Bancorporation, a leading regional bank holding company, has reported an impressive set of results for its second quarter of 2026. The company's net income increased by a significant 37% compared to the same period last year, marking another strong quarter.
In a conference call held on July 23rd, 2026, the company's management team provided insights into the factors that contributed to this impressive performance. Dave Nelson, CEO of West Bancorporation, highlighted the company's strong balance sheet, with higher levels of liquidity and capital, as well as pristine credit quality with zero loans past due 30 days.
The company also announced an increase in its quarterly dividend to $0.26 per common share, payable on August 19th to shareholders of record as of August 5th. This represents the highest level ever in the company's history, demonstrating its commitment to returning value to shareholders.
Harlee Olafson, Chief Risk Officer at West Bancorporation, noted that credit quality is very strong at the bank, with zero past dues over 30 days and a declining watch list. He emphasized the importance of proactive risk management, stating that the company's bankers have done a good job recognizing when problems are likely to occur.
Olafson also highlighted the company's diversified commercial real estate portfolio, which is seasoned, strong, and continues to perform as expected. The company's commercial real estate development loans have declined due to cautious customers looking at new development opportunities, but this has not had a material impact on the overall performance of the bank.
Todd Mather, Des Moines area Market President, provided an update on the bank's loan and deposit activities in the region. He noted that average loan outstandings increased slightly compared to the first quarter, driven by larger payoffs from asset sales and customers refinancing specific assets into the secondary market.
Mather also emphasized the importance of attracting new depositors, with the company continuing to be successful in this area. The bank's bankers have been proactive in prospecting new opportunities, leading to an uptick in the pipeline of new business during the quarter.
The company's Minnesota operations were also highlighted by Brad Peters, who provided a brief update on the bank's expansion into the state. Peters noted that the company has grown its presence in Minnesota since opening its first full-service bank in Rochester in 2016, with further expansions in St. Cloud, Mankato, and Owatonna in 2019.
