West Bancorporation expects a boost to its net interest margin as approximately $600 million in loans are set to reprice over the next 12 months. Chief Financial Officer Jane Funk said during the second-quarter earnings call that those loans carry a weighted average rate in the low to mid-4s. The company reported net income of $11.1 million for the quarter, a 39% increase from $8 million a year earlier, and raised its quarterly dividend to a record $0.26 per share. Credit quality remained strong with zero past-due loans, while deposit competition was described as fierce, limiting relief on funding costs. Management also noted that over $200 million in developed properties moved off the balance sheet in the first half of the year through sales or nonrecourse financing, but expects loan growth to resume as the pipeline builds.
West BancorporationExpects net interest margin boost from $600M loan repricing, reported 39% net income increase, and raised dividend.