West Bancorporation announces third-quarter earnings
Business Record Staff Oct 31, 2024 | 11:42 am
1 min read time
332 wordsAll Latest News, Banking and FinanceWest Bancorporation Inc.’s loan portfolio remained strong in the third quarter, including in the commercial real estate sector, Harlee Olafson, the financial institution’s chief risk officer and executive vice president, said during a recent third-quarter earnings report.
The institution’s overall loan values have declined slightly because of a limited number of new projects, Olafson said. The institution does not have any past due loans in its commercial real estate portfolio, he said.
West Bancorporation’s commercial real estate loans are spread over several industry sectors, Olafson said. The institution, as of Sept. 30, had over $2.3 billion in construction and development and commercial real estate loans, according to earnings highlights. Sector loans have been made in multifamily (22.6%, or $540.7 million); warehouse and trucking terminals (10.9%, or $261.7 million); hotels (10.9%, or $261.7 million); and retail (10.4%, or $250 million).
Thirty-five percent of West Bancorporation’s loan portfolios include variable-rate loans, many of which are in the commercial sector, according to the earning report.
“We do have significant commercial real estate loans that will reprice and will cause our customers’ cash flows to decline,” Olafson said during the earnings call. “We have stress tested the individual loans and do not see significant payment issues at the expected higher rates.”
In the third quarter, which ended Sept. 30, West Bancorporation reported:
- Net income of nearly $6 million, or 35 cents per diluted common share. In the second quarter, the institution reported net income of $5.2 million, or 31 cents per diluted share, and in 2023’s third quarter, it reported net income of $5.9 million, or 35 cents per diluted share.
- A quarterly dividend of 25 cents per share that will be payable to stockholders of record on Nov. 20.
- A $55.6 million increase in brokered deposits, which totaled $425.9 million compared to $370.3 million in the second quarter.
West Bancorporation is the parent company of West Bank, which has 11 locations in Iowa and Minnesota. For more information about West Bancorporation’s third-quarter earnings, click here.