West Des Moines-based West Bancorporation reported its third quarter results, noting an increase in net income and loans and a decrease in deposits. 

Third-quarter 2025 net income was $9.3 million, compared to $8 million in the second quarter and $6 million in the third quarter of 2024. 

“We had a strong third quarter with continued improvements in net interest income and net interest margin while prudently managing our noninterest expenses,” David Nelson, president and CEO of West Bancorporation, said in a news release. “We see opportunities for further improvement in earnings and our best-in-class credit quality metrics continue to be extremely strong. We had no loans on nonaccrual status and no loans past due greater than 30 days at Sept. 30, 2025.”

For the third quarter:

• Loans increased $42.5 million, or 1.4%, due to an increase in commercial real estate loans and commercial loans, partially offset by a decline in construction loans.
• Deposits decreased $85.5 million, or 2.5%. Brokered deposits totaled $204.8 million, compared to $208.3 million at June 30, 2025, a decrease of $3.5 million. Excluding brokered deposits, deposits decreased $82.0 million, or 2.6%.
• Net interest margin, on a fully tax-equivalent basis, was 2.36%, compared to 2.27% in the second quarter. Net interest income was $22.5 million, compared to $21.4 million for the second quarter. The increase in net interest income was primarily due to an increase in interest income on loans and short-term assets consisting of deposits with banks and securities purchased under agreements to resell.

Income tax expense decreased $225,000 compared to the second quarter of 2025. This was primarily due to a change in estimate of energy-related investment tax credits in the third quarter of 2025.

Year-over-year results, comparing third quarter 2025 to third quarter 2024, include:

• Loans decreased $12.3 million, or 0.4%, primarily due to the decrease in construction loans, partially offset by an increase in commercial real estate loans.
• Deposits increased $28 million, or 0.9%. Included in deposits were brokered deposits totaling $204.8 million for third quarter 2025, compared to $425.9 million for third quarter 2024. Excluding brokered deposits, deposits increased $249 million, or 8.7%. In the second quarter of 2025, a local municipal customer deposited $243 million of bond proceeds that are expected to be withdrawn over 24 months.
• Borrowed funds decreased to $389.1 million in the third quarter of 2025, compared to $438.8 million in the third quarter of 2024. The decrease was primarily attributable to a decrease of $45 million in Federal Home Loan Bank advances. The reduction in Federal Home Loan Bank advances was due to the repayment of advances at maturity.
• Net interest margin, on a fully tax-equivalent basis, was 2.36%, compared to 1.91% for the third quarter of 2024. Net interest income was $22.5 million, compared to $18 million for the third quarter of 2024. The increase in net interest margin and net interest income was primarily due to the decrease in interest expense on deposits and borrowed funds. 

To read the full report, visit West Bank’s website.