AGP Picks
View all

West Bancorporation, Inc. Announces Third Quarter 2026 Financial Results and Declares Quarterly Dividend

WEST DES MOINES, Iowa, Oct. 29, 2026 (GLOBE NEWSWIRE) -- West Bancorporation, Inc. (Nasdaq: WTBA; the “Company”), parent company of West Bank, today reported third quarter 2026 net income of $11.6 million, or $0.67 per diluted common share, compared to second quarter 2026 net income of $11.1 million, or $0.64 per diluted common share, and third quarter 2025 net income of $9.3 million, or $0.55 per diluted common share. On October 28, 2026, the Company’s Board of Directors declared a regular quarterly dividend of $0.26 per common share. The dividend is payable on November 25, 2026, to stockholders of record on November 11, 2026.

David Nelson, President and Chief Executive Officer of the Company, commented, “Our net income for the first nine months of 2026 has increased 32 percent compared to the first nine months of 2025. Our annualized return on average equity has improved to 16.18 percent for the first nine months of 2026, compared to 14.27 percent for the first nine months of 2025 and our annualized return on average assets has grown to 1.16 percent in the third quarter of 2026. We are producing stronger profitability through margin expansion and expense discipline, while maintaining a strict underwriting culture and strong asset quality. Our balance sheet management strategies have resulted in a reduction in wholesale funding and steady growth in net interest income.”

Mr. Nelson added, “Our balance sheet remains exceptionally strong, supported by solid capital and liquidity levels. Credit quality remains pristine with no loans on nonaccrual status at September 30, 2026. Additionally, this marks our ninth consecutive quarter-end with no loans greater than 30 days past due.”

Third Quarter 2026 Compared to Second Quarter 2026 Overview

  • Quarterly net income was $11.6 million, an increase of $0.5 million, or 5.01 percent, compared to prior quarter.

  • Quarterly return on average equity increased to 16.41 percent, compared to 16.21 percent in prior quarter.

  • Loan balances increased $45.1 million, or 1.5 percent as of September 30, 2026, compared to June 30, 2026.

  • No credit loss expense on loans was recorded in either the third or second quarter of 2026.

  • The allowance for credit losses to total loans was 1.02 percent as of September 30, 2026, compared to 1.03 percent as of June 30, 2026. There were no nonaccrual loans at September 30, 2026 or June 30, 2026. Substandard loans decreased to $13.8 million as of September 30, 2026, from $14.4 million as of June 30, 2026. The substandard loan balances consisted of commercial and commercial real estate loans to two borrowers. In both instances, the Company believes the loans are sufficiently collateralized. Watch list loans decreased from $7.1 million as of June 30, 2026 to $6.7 million as of September 30, 2026. The decreases in substandard and and watch list loans was primarily due to principal payments.

  • Deposits, excluding brokered deposits, decreased $65.8 million, or 2.0 percent, in the third quarter of 2026. Brokered deposits were reduced by $8.5 million. As of September 30, 2026, estimated uninsured deposits, which exclude deposits in a reciprocal deposit network, brokered deposits and public funds protected by state programs, accounted for approximately 28.5 percent of total deposits.

  • Net interest margin, on a fully tax-equivalent basis (a non-GAAP measure), was 2.77 percent for the third quarter of 2026, compared to 2.69 percent for the second quarter of 2026. Net interest income for the third quarter of 2026 was $26.4 million, compared to $25.5 million for the second quarter of 2026. Loan yields increased 8 basis points, to 5.73 percent, in the third quarter of 2026 compared to the second quarter of 2026, while the average balance of loans declined $44.1 million. The cost of interest-bearing deposits increased 3 basis points, to 2.76 percent. The average balance of interest-bearing deposits decreased $36.4 million in the third quarter of 2026 compared to the prior quarter. The comparison of asset yields and cost of interest-bearing deposits is impacted by the 25 basis point increase in the federal funds target rate in September 2026. The average balance of FHLB advances declined $32.1 million in the third quarter of 2026 compared to the prior quarter as matured advances were not renewed.

  • The efficiency ratio (a non-GAAP measure) was 47.81 percent for the third quarter of 2026, compared to 48.78 percent for the second quarter of 2026, primarily due to the increase in tax-equivalent net interest income.

  • The tangible common equity ratio was 6.98 percent as of September 30, 2026, compared to 6.97 percent as of June 30, 2026.

Third Quarter 2026 Compared to Third Quarter 2025 Overview

  • Quarterly net income was $11.6 million, an increase of $2.3 million, or 24.8 percent, compared to prior year.

  • Quarterly return on average equity increased to 16.41 percent, compared to 15.25 percent in prior year.

  • Loan balances were down slightly by $13.7 million at September 30, 2026, or 0.5 percent, compared to September 30, 2025. Changes in the loan portfolio included decreases of $159.0 million in construction, land and land development loans and $52.9 million in commercial loans and an increase of $156.3 million in commercial real estate loans. The change in loan mix included reclassifications resulting from completed construction projects moving to permanent financing and commercial loan restructurings that added real estate as collateral.

  • Deposits, excluding brokered deposits, increased $67.0 million, or 2.2 percent, as of September 30, 2026, compared to September 30, 2025. Brokered deposits were reduced by $102.9 million.

  • Net interest margin, on a fully tax-equivalent basis (a non-GAAP measure), was 2.77 percent for the third quarter of 2026, compared to 2.36 percent for the third quarter of 2025. Net interest income for the third quarter of 2026 was $26.4 million, compared to $22.5 million for the third quarter of 2025. Loan yields increased by 7 basis points in the 3rd quarter of 2026, compared to the third quarter of 2025, while the average balance of loans declined $19.6 million. The cost of interest-bearing deposits decreased by 41 basis points in the third quarter of 2026 compared to the third quarter of 2025. The average balance of interest-bearing deposits declined $41.3 million in the third quarter of 2026 compared to the third quarter of 2025. The comparison of asset yields and cost of interest-bearing deposits is impacted by the 75 basis point decrease in the federal funds target rate in the third and fourth quarters of 2025 and subsequent 25 basis point increase in the federal funds target rate in September 2026.

  • The efficiency ratio (a non-GAAP measure) was 47.81 percent for the third quarter of 2026, compared to 54.06 percent for the third quarter of 2025. The improvement in the efficiency ratio in the third quarter of 2026 compared to the third quarter of 2025 was primarily due to the increase in tax-equivalent net interest income.
  • The tangible common equity ratio was 6.98 percent as of September 30, 2026, compared to 6.40 percent as of September 30, 2025. The increase in the tangible common equity ratio was due to growth in retained earnings.

The Company filed its report on Form 10-Q with the Securities and Exchange Commission today. Please refer to that document for a more in-depth discussion of the Company’s financial results. The Form 10-Q is available on the Investor Relations section of West Bank’s website at www.westbankstrong.com.

The Company will discuss its results in a conference call scheduled for 2:00 p.m. Central Time on Thursday, October 29, 2026. The telephone number for the conference call is 833-461-5787. The meeting ID for the conference call is 761930850. A recording of the call will be available until November 12, 2026, by dialing 833-309-1852. The meeting ID for the replay call is 761930850.

About West Bancorporation, Inc. (Nasdaq: WTBA)

West Bancorporation, Inc. is headquartered in West Des Moines, Iowa. Serving customers since 1893, West Bank, a wholly-owned subsidiary of West Bancorporation, Inc., is a community bank that focuses on lending, deposit services, and trust services for small- to medium-sized businesses and consumers. West Bank has six offices in the Des Moines, Iowa metropolitan area, one office in Coralville, Iowa, and four offices in Minnesota in the cities of Rochester, Owatonna, Mankato and St. Cloud.

Certain statements in this report, other than purely historical information, including estimates, projections, statements relating to the Company’s business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meanings of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements may appear throughout this report. These forward-looking statements are generally identified by the words “believes,” “expects,” “intends,” “anticipates,” “projects,” “forecasts,” “plans,” “targets,” “future,” “confident,” “potentially,” “probably,” “outlook,” “may,” “should,” “would,” “could,” “will,” “strategy,” “plan,” “opportunity,” “will be,” “will likely result,” “will continue” or similar references, as well as the negative of such words, or references to estimates, predictions or future events. Forward-looking statements are not historical facts but instead represent management’s current expectations and forecasts regarding future events, many of which are inherently uncertain and outside of our control. Such forward-looking statements are based upon certain underlying assumptions, known and unknown, risks and uncertainties. Because of the possibility that the underlying assumptions are incorrect or do not materialize as expected in the future, actual results may differ, possibly materially, from these forward-looking statements. Risks and uncertainties that may affect future results include, but are not limited to: interest rate risk, including the effects of the recent increase in the benchmark federal funds rate by the Federal Reserve; fluctuations in the values of the securities held in our investment portfolio, including as a result of rising interest rates; competitive pressures, including from non-bank competitors such as credit unions, “fintech” companies and digital asset service providers; technological changes implemented by us and other parties, including third-party vendors, which may be more difficult to implement or more expensive than anticipated or which may have unforeseen consequences to us and our customers, including the development and implementation of tools incorporating artificial intelligence; pricing pressures on loans and deposits; our ability to successfully manage liquidity risk; changes in credit and other risks posed by the Company’s loan portfolio, including declines in commercial or residential real estate values or changes in the allowance for credit losses dictated by new market conditions, accounting standards or regulatory requirements; the concentration of large deposits from certain clients, including those who have balances above current FDIC insurance limits; the threat or imposition of domestic or foreign tariffs or other governmental policies impacting the global supply chain and the value of products produced by our commercial borrowers; effects on the U.S. economy resulting from actions taken by the federal government, including executive orders and immigration enforcement; changes in local, national and international economic conditions, including the level and impact of inflation, and future monetary policies of the Federal Reserve in response thereto, and possible recession; the impact of bank failures or adverse developments at other banks and related negative publicity about the banking industry in general on investor and depositor sentiment regarding the stability and liquidity of banks; changes in legal and regulatory requirements, limitations and costs; changes in customers’ acceptance of the Company’s products and services; the occurrence of fraudulent activity, breaches or failures of our or our third-party partners’ information security controls or cyber-security related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools; unexpected outcomes of existing or new litigation involving the Company; the monetary, trade and other regulatory policies of the U.S. government; the effects of acts of war or terrorism, including the wars in Iran and Ukraine, ongoing conflicts in the Middle East, and other international military conflicts that can increase levels of political and economic unpredictability, contribute to rising energy and commodity prices, affect global supply chains, increase the volatility of financial markets, and other matters beyond our control; widespread disease, pandemics or epidemics, or other adverse external events; risks related to climate change and the negative impact it may have on our customers and their business; changes to U.S. tax laws, regulations and guidance; potential changes in federal policy and at regulatory agencies; talent and labor shortages; emerging issues related to the development and use of artificial intelligence that could give rise to legal or regulatory action, damage our reputation or otherwise materially harm our business or customers; the availability of future equity and debt issuances and other capital raising opportunities on favorable terms; and any other risks described in the “Risk Factors” sections of reports filed by the Company with the Securities and Exchange Commission (the “SEC”). The Company cautions readers not to place undue reliance on any forward-looking statements. Moreover, any of the forward-looking statements that the Company makes in this report or the documents the Company files with or furnishes to the SEC are based only on information then actually known to the Company and upon management’s beliefs and assumptions at the time they are made, which may turn out to be wrong because of inaccurate assumptions they might make, because of the factors described above or because of other factors that the Company cannot foresee. Forward-looking statements speak only as of the date they are made, and the Company does not undertake and specifically disclaims any obligation to revise or update such forward-looking statements to reflect current or future events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

For more information contact:
Jane Funk, Executive Vice President, Treasurer and Chief Financial Officer (515) 222-5766

WEST BANCORPORATION, INC. AND SUBSIDIARY            
Financial Information (unaudited)                            
                             
    As of and for the Quarter Ended   For the Nine Months Ended
KEY PERFORMANCE RATIOS AND OTHER METRICS   September
30, 2026
  June 30,
2026
  March 31,
2026
  December 31,
2025
  September
30, 2025
  September
30, 2026
  September
30, 2025
Return on average assets(1)     1.16 %     1.10 %     1.06 %     0.72 %     0.92 %     1.11 %     0.84 %
Return on average equity(2)     16.41       16.21       15.91       11.33       15.25       16.18       14.27  
Net interest margin(3)(13)     2.77       2.69       2.59       2.47       2.36       2.68       2.30  
Yield on interest-earning assets(4)(13)     5.16       5.10       5.04       5.02       5.13       5.10       5.08  
Cost of interest-bearing liabilities     2.90       2.88       2.90       3.02       3.26       2.89       3.27  
Efficiency ratio(5)(13)     47.81       48.78       49.85       50.21       54.06       48.79       55.60  
Nonperforming assets to total assets(6)     0.00       0.00       0.00       0.00       0.00          
ACL ratio(7)     1.02       1.03       1.02       1.02       1.01          
Loans/total assets     76.96       73.21       74.59       72.47       75.50          
Loans/total deposits     91.58       88.20       89.71       86.54       91.00          
Tangible common equity ratio(8)     6.98       6.97       6.75       6.42       6.40          
                             
COMMON SHARE DATA                            
Earnings per common share (basic)   $ 0.68     $ 0.65     $ 0.62     $ 0.44     $ 0.55     $ 1.96     $ 1.49  
Earnings per common share (diluted)     0.67       0.64       0.61       0.43       0.55       1.93       1.48  
Dividends per common share     0.26       0.25       0.25       0.25       0.25       0.76       0.75  
Book value per common share(9)     15.94       16.49       15.90       15.70       15.06          
Closing stock price     28.51       26.53       23.79       22.19       20.32          
Market price/book value(10)     178.86 %     160.89 %     149.62 %     141.34 %     134.93 %        
Price earnings ratio(11)     10.57       10.18       9.40       12.71       9.31          
Annualized dividend yield(12)     3.65 %     3.77 %     4.20 %     4.51 %     4.92 %        
                             
REGULATORY CAPITAL RATIOS                            
Consolidated:                            
Total risk-based capital ratio     13.43 %     13.46 %     12.99 %     12.77 %     12.54 %        
Tier 1 risk-based capital ratio     10.78       10.77       10.34       10.14       9.93          
Tier 1 leverage capital ratio     9.18       8.91       8.74       8.44       8.51          
Common equity tier 1 ratio     10.21       10.18       9.77       9.56       9.37          
West Bank:                            
Total risk-based capital ratio     13.87 %     13.97 %     13.53 %     13.35 %     13.17 %        
Tier 1 risk-based capital ratio     12.95       13.03       12.61       12.44       12.26          
Tier 1 leverage capital ratio     11.03       10.79       10.66       10.35       10.50          
Common equity tier 1 ratio     12.95       13.03       12.61       12.44       12.26          


(1) Annualized net income divided by average assets.
(2) Annualized net income divided by average stockholders’ equity.
(3) Annualized tax-equivalent net interest income divided by average interest-earning assets.
(4) Annualized tax-equivalent interest income on interest-earning assets divided by average interest-earning assets.
(5) Noninterest expense (excluding other real estate owned expense and write-down of premises) divided by noninterest income (excluding net securities gains/losses and gains/losses on disposition of premises and equipment) plus tax-equivalent net interest income.
(6) Total nonperforming assets divided by total assets.
(7) Allowance for credit losses on loans divided by total loans. 
(8) Common equity less intangible assets (none held) divided by tangible assets.
(9) Includes accumulated other comprehensive loss.
(10) Closing stock price divided by book value per common share.
(11) Closing stock price divided by annualized earnings per common share (basic).
(12) Annualized dividend divided by period end closing stock price.
(13) A non-GAAP measure.
   

 

WEST BANCORPORATION, INC. AND SUBSIDIARY            
Financial Information (unaudited)                    
(in thousands)                    
    As of
CONDENSED BALANCE SHEETS   September
30, 2026
  June
30, 2026
  March
31, 2026
  December
31, 2025
  September
30, 2025
Assets                    
Cash and due from banks   $ 23,155     $ 30,986     $ 40,018     $ 25,171     $ 26,875  
Interest-earning deposits with banks     88,822       260,633       180,218       324,502       109,265  
Securities purchased under agreements to resell     160,444       142,080       141,742       121,413       96,792  
Securities available for sale, at fair value     415,648       446,575       456,410       468,447       537,856  
Federal Home Loan Bank stock, at cost     12,426       15,168       15,180       15,167       15,190  
Loans     2,995,211       2,950,114       2,991,638       3,001,690       3,008,888  
Allowance for credit losses     (30,536 )     (30,530 )     (30,523 )     (30,525 )     (30,515 )
Loans, net     2,964,675       2,919,584       2,961,115       2,971,165       2,978,373  
Premises and equipment, net     105,510       106,626       107,619       108,380       109,212  
Bank-owned life insurance     47,066       46,751       46,500       46,192       45,875  
Other assets     73,930       61,261       62,171       61,807       66,042  
Total assets   $ 3,891,676     $ 4,029,664     $ 4,010,973     $ 4,142,244     $ 3,985,480  
                     
Liabilities and Stockholders’ Equity                    
Deposits   $ 3,270,646     $ 3,344,900     $ 3,334,972     $ 3,468,470     $ 3,306,517  
Borrowings     312,852       374,037       375,221       376,406       389,076  
Other liabilities     36,488       29,685       30,037       31,383       34,754  
Stockholders’ equity     271,690       281,042       270,743       265,985       255,133  
Total liabilities and stockholders’ equity   $ 3,891,676     $ 4,029,664     $ 4,010,973     $ 4,142,244     $ 3,985,480  
                     
    For the Quarter Ended
AVERAGE BALANCES   September
30, 2026
  June
30, 2026
  March
31, 2026
  December
31, 2025
  September
30, 2025
Assets   $ 3,993,933     $ 4,029,324     $ 4,027,218     $ 4,104,279     $ 4,004,769  
Loans     2,940,392       2,984,527       2,971,497       2,982,754       2,959,962  
Deposits     3,335,242       3,347,452       3,348,255       3,418,539       3,333,800  
Stockholders’ equity     281,208       273,967       269,453       259,932       242,245  
                                         


WEST BANCORPORATION, INC. AND SUBSIDIARY            
Financial Information (unaudited)                    
(in thousands)                    
    As of
LOANS   September
30, 2026
  June
30, 2026
  March
31, 2026
  December
31, 2025
  September
30, 2025
Commercial   $ 458,416     $ 463,248     $ 471,423     $ 505,059     $ 511,316  
Real estate:                    
Construction, land and land development     289,616       333,753       376,059       426,833       448,660  
1-4 family residential first mortgages     133,880       130,951       139,118       93,122       87,784  
Home equity     26,331       25,999       27,084       26,088       27,083  
Commercial     2,068,526       1,977,477       1,958,189       1,929,766       1,912,235  
Consumer and other     20,984       21,347       22,257       23,374       24,697  
      2,997,753       2,952,775       2,994,130       3,004,242       3,011,775  
Net unamortized fees and costs     (2,542 )     (2,661 )     (2,492 )     (2,552 )     (2,887 )
Total loans   $ 2,995,211     $ 2,950,114     $ 2,991,638     $ 3,001,690     $ 3,008,888  
Less: allowance for credit losses     (30,536 )     (30,530 )     (30,523 )     (30,525 )     (30,515 )
Net loans   $ 2,964,675     $ 2,919,584     $ 2,961,115     $ 2,971,165     $ 2,978,373  
                     
CREDIT QUALITY                    
Pass   $ 2,977,301     $ 2,931,300     $ 2,952,824     $ 2,952,015     $ 2,973,103  
Watch     6,697       7,112       41,306       52,227       38,672  
Substandard     13,755       14,363       —       —       —  
Doubtful     —       —       —       —       —  
Total loans   $ 2,997,753     $ 2,952,775     $ 2,994,130     $ 3,004,242     $ 3,011,775  
                     
DEPOSITS                    
Noninterest-bearing demand   $ 551,615     $ 553,660     $ 511,013     $ 540,358     $ 512,869  
Interest-bearing demand     436,697       506,574       489,990       577,814       448,731  
Savings and money market - non-brokered     1,677,699       1,705,057       1,731,835       1,739,790       1,677,543  
Money market - brokered     101,979       100,450       86,304       99,718       121,849  
Total nonmaturity deposits     2,767,990       2,865,741       2,819,142       2,957,680       2,760,992  
Time - non-brokered     502,656       469,159       485,658       455,944       462,542  
Time - brokered     —       10,000       30,172       54,846       82,983  
Total time deposits     502,656       479,159       515,830       510,790       545,525  
Total deposits   $ 3,270,646     $ 3,344,900     $ 3,334,972     $ 3,468,470     $ 3,306,517  
                     
BORROWINGS                    
Subordinated notes, net   $ 80,352     $ 80,287     $ 80,221     $ 80,156     $ 80,090  
Federal Home Loan Bank advances     210,000       270,000       270,000       270,000       270,000  
Long-term debt     22,500       23,750       25,000       26,250       38,986  
Total borrowings   $ 312,852     $ 374,037     $ 375,221     $ 376,406     $ 389,076  
                     
STOCKHOLDERS’ EQUITY                    
Preferred stock   $ —     $ —     $ —     $ —     $ —  
Common stock     3,000       3,000       3,000       3,000       3,000  
Additional paid-in capital     38,068       37,312       36,553       37,231       36,473  
Retained earnings     314,605       307,408       300,596       294,259       291,069  
Accumulated other comprehensive loss     (83,983 )     (66,678 )     (69,406 )     (68,505 )     (75,409 )
Total stockholders’ equity   $ 271,690     $ 281,042     $ 270,743     $ 265,985     $ 255,133  
                                         


WEST BANCORPORATION, INC. AND SUBSIDIARY                
Financial Information (unaudited)                    
(in thousands)                    
    For the Quarter Ended
CONSOLIDATED STATEMENTS OF INCOME   September
30, 2026
  June
30, 2026
  March
31, 2026
  December
31, 2025
  September
30, 2025
Interest income:                    
Loans, including fees   $ 42,463   $ 42,031   $ 40,946   $ 41,992     $ 42,198
Securities:                    
Taxable     2,105     2,097     2,143     2,355       2,643
Tax-exempt     634     636     638     677       739
Deposits with banks     2,224     2,130     2,047     2,808       2,087
Securities purchased under agreements to resell     1,769     1,580     1,617     1,370       1,258
Total interest income     49,195     48,474     47,391     49,202       48,925
Interest expense:                    
Deposits     19,376     19,184     19,261     21,112       22,539
Subordinated notes     1,113     1,110     1,104     1,109       1,107
Federal Home Loan Bank advances     1,965     2,274     2,244     2,316       2,292
Long-term debt     371     385     397     459       486
Total interest expense     22,825     22,953     23,006     24,996       26,424
Net interest income     26,370     25,521     24,385     24,206       22,501
Credit loss expense     —     —     —     —       —
Net interest income after credit loss expense     26,370     25,521     24,385     24,206       22,501
Noninterest income:                    
Service charges on deposit accounts     482     476     508     493       491
Debit card interchange income     504     514     472     493       477
Trust services     1,190     1,048     1,010     964       894
Increase in cash value of bank-owned life insurance     316     313     308     317       308
Realized securities losses, net     —     —     —     (3,959 )     —
Other income     253     245     256     800       333
Total noninterest income (loss)     2,745     2,596     2,554     (892 )     2,503
Noninterest expense:                    
Salaries and employee benefits     7,956     7,987     7,632     7,579       7,457
Occupancy and equipment     2,025     2,006     2,006     2,083       2,090
Technology and software     790     822     774     789       794
Data processing     578     545     596     673       663
FDIC insurance     455     444     473     475       637
Professional fees     260     298     278     297       303
Other expenses     1,897     1,665     1,706     1,833       1,606
Total noninterest expense     13,961     13,767     13,465     13,729       13,550
Income before income taxes     15,154     14,350     13,474     9,585       11,454
Income taxes     3,526     3,277     2,902     2,160       2,140
Net income   $ 11,628   $ 11,073   $ 10,572   $ 7,425     $ 9,314
                     
Basic earnings per common share   $ 0.68   $ 0.65   $ 0.62   $ 0.44     $ 0.55
Diluted earnings per common share   $ 0.67   $ 0.64   $ 0.61   $ 0.43     $ 0.55
                                 


WEST BANCORPORATION, INC. AND SUBSIDIARY    
Financial Information (unaudited)        
(in thousands)        
    For the Nine Months Ended
CONSOLIDATED STATEMENTS OF INCOME   September 30, 2026   September 30, 2025
Interest income:        
Loans, including fees   $ 125,440   $ 124,852
Securities:        
Taxable     6,345     8,116
Tax-exempt     1,908     2,224
Deposits with banks     6,401     6,551
Securities purchased under agreements to resell     4,966     1,280
Total interest income     145,060     143,023
Interest expense:        
Deposits     57,821     66,638
Subordinated notes     3,327     3,316
Federal Home Loan Bank advances     6,483     6,786
Long-term debt     1,153     1,508
Total interest expense     68,784     78,248
Net interest income     76,276     64,775
Credit loss expense     —     —
Net interest income after credit loss expense     76,276     64,775
Noninterest income:        
Service charges on deposit accounts     1,466     1,448
Debit card interchange income     1,490     1,401
Trust services     3,248     2,472
Increase in cash value of bank-owned life insurance     937     885
Other income     754     950
Total noninterest income     7,895     7,156
Noninterest expense:        
Salaries and employee benefits     23,575     21,804
Occupancy and equipment     6,037     6,087
Technology and software     2,386     2,371
Data processing     1,719     1,923
FDIC insurance     1,372     1,894
Professional fees     836     914
Other expenses     5,268     5,105
Total noninterest expense     41,193     40,098
Income before income taxes     42,978     31,833
Income taxes     9,705     6,698
Net income   $ 33,273   $ 25,135
         
Basic earnings per common share   $ 1.96   $ 1.49
Diluted earnings per common share   $ 1.93   $ 1.48
         

NON-GAAP FINANCIAL MEASURES

This report contains references to financial measures that are not defined in GAAP. Such non-GAAP financial measures include the Company’s presentation of net interest income and net interest margin on a fully taxable equivalent (FTE) basis and the presentation of the efficiency ratio on an adjusted and FTE basis, excluding certain income and expenses. Management believes these non-GAAP financial measures provide useful information to both management and investors to analyze and evaluate the Company’s financial performance. These measures are considered standard measures of comparison within the banking industry. Additionally, management believes providing measures on a FTE basis enhances the comparability of income arising from taxable and nontaxable sources. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in these measures and that different companies might calculate these measures differently. These non-GAAP disclosures should not be considered an alternative to the Company’s GAAP results. The following table reconciles the non-GAAP financial measures of net interest income and net interest margin on a fully taxable equivalent basis and efficiency ratio on an adjusted and FTE basis.

 (in thousands)   For the Quarter Ended   For the Nine Months Ended
    September
30, 2026
  June
30, 2026
  March
31, 2026
  December
31, 2025
  September
30, 2025
  September
30, 2026
  September
30, 2025
Reconciliation of net interest income and net interest margin on a FTE basis to GAAP:                            
Net interest income (GAAP)   $ 26,370     $ 25,521     $ 24,385     $ 24,206     $ 22,501     $ 76,276     $ 64,775  
Tax-equivalent adjustment (1)     76       75       72       70       61       223       186  
Net interest income on a FTE basis (non-GAAP)     26,446       25,596       24,457       24,276       22,562       76,499       64,961  
Average interest-earning assets     3,785,334       3,820,041       3,821,463       3,893,827       3,790,154       3,808,813       3,769,158  
Net interest margin on a FTE basis (non-GAAP)     2.77 %     2.69 %     2.59 %     2.47 %     2.36 %     2.68 %     2.30 %
                             
Reconciliation of efficiency ratio on an adjusted and FTE basis to GAAP:                            
Net interest income on a FTE basis (non-GAAP)   $ 26,446     $ 25,596     $ 24,457     $ 24,276     $ 22,562     $ 76,499     $ 64,961  
Noninterest income     2,745       2,596       2,554       (892 )     2,503       7,895       7,156  
Adjustment for realized securities losses, net     —       —       —       3,959       —       —       —  
Adjustment for losses on disposal of premises and equipment, net     7       28       2       —       —       37       8  
Adjusted income     29,198       28,220       27,013       27,343       25,065       84,431       72,125  
Noninterest expense     13,961       13,767       13,465       13,729       13,550       41,193       40,098  
Efficiency ratio on an adjusted and FTE basis (non-GAAP) (2)     47.81 %     48.78 %     49.85 %     50.21 %     54.06 %     48.79 %     55.60 %


(1) Computed on a tax-equivalent basis using a federal income tax rate of 21 percent, adjusted to reflect the effect of the nondeductible interest expense associated with owning tax-exempt securities and loans. Management believes the presentation of this non-GAAP measure provides supplemental useful information for proper understanding of the financial results, as it enhances the comparability of income arising from taxable and nontaxable sources.
(2) The efficiency ratio expresses noninterest expense as a percent of fully taxable equivalent net interest income and noninterest income, excluding specific noninterest income and expenses. Management believes the presentation of this non-GAAP measure provides supplemental useful information for proper understanding of the Company's financial performance. It is a standard measure of comparison within the banking industry. A lower ratio is more desirable.



Primary Logo

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.

Share this page:

Advanced Search Options

Search for:

Search scope:

Type:

Search in:

Date range:

The last

Sort by:

Sign up for:

Iowa Business Gazette

The daily local news briefing you can trust. Every day. Subscribe now.

By signing up, you agree to our Terms & Conditions.