West Bancorporation Q3 net income rises on higher net interest income

Overview

• US community bank's Q3 net income rose 25% yr/yr, driven by higher net interest income

• Q3 diluted EPS increased to $0.67 from $0.55 a year earlier

• Company reports no nonaccrual loans and lower substandard and watch list loan balances

Outlook

• Company did not provide specific guidance for future quarters or full-year results in the press release

Result Drivers

• MARGIN EXPANSION - Co said stronger profitability was driven by net interest margin expansion

• EXPENSE DISCIPLINE - Co attributed improved results to expense discipline

• BALANCE SHEET MANAGEMENT - Co said reduction in wholesale funding and steady growth in net interest income resulted from balance sheet management strategies

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for West Bancorporation Inc is $27.75, about 8.9% below its October 28 closing price of $30.46

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads

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• Oct 27 - UMB Financial Q3 profit rises on record loans

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)