West Bancorporation, Inc. (WTBA): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how a community bank navigates the complexities of the financial world while staying true to its roots? West Bancorporation, Inc. (WTBA), a financial holding company since 1893, stands as a testament to this balancing act. With a recent stock price around $20.22 as of March 21, 2025, and a solid dividend yield of 4.99%, what makes this business-focused community bank tick and how does it generate revenue?

Dive in to discover the rich history of West Bancorporation, tracing its journey from the First Valley Junction Savings Bank to a key player in the banking sector, boasting $78.80M in revenue. Learn about its ownership structure, with institutions holding 46.34% of shares, and explore its mission to build strong relationships and communities. Keep reading to understand how West Bancorporation operates and makes money, offering full-service banking to both businesses and consumers across Iowa and Minnesota.

West Bancorporation, Inc. (WTBA) History

West Bancorporation, Inc. Founding Timeline

Year established

West Bancorporation was established in 1985.

Original location

The company is headquartered in West Des Moines, Iowa.

Founding team members

While specific names of all founding team members are not readily available in the provided search results, James P. Henter is a key figure. He has served as the President and CEO of West Bank, a subsidiary of West Bancorporation.

Initial capital/funding

Information regarding the specific initial capital or funding is not available in the provided search results.

West Bancorporation, Inc. Evolution Milestones

West Bancorporation, Inc. Transformative Moments

• Strategic Acquisitions: The acquisition of Valley State Bank in 2008 was a pivotal moment, significantly increasing West Bank's market share in the Des Moines area.
• Leadership Transitions: Executive appointments, such as the ones in 2017, often signal shifts in strategic direction and priorities for the company.
• Consistent Financial Growth: West Bancorporation's ability to maintain strong financial performance, as evidenced by the reported net income available to common stockholders of $68.4 million in 2023, showcases its resilience and effective management.

For more insights into the ownership and investor profile, check out: Exploring West Bancorporation, Inc. (WTBA) Investor Profile: Who’s Buying and Why?

West Bancorporation, Inc. (WTBA) Ownership Structure

West Bancorporation, Inc. operates with a mixed ownership structure, featuring a combination of institutional, retail, and insider holdings that influence its corporate governance and strategic direction.

West Bancorporation, Inc.'s Current Status

West Bancorporation, Inc. is a publicly traded company, meaning its shares are available for purchase by the general public on the stock exchange. This allows for a broad base of investors to own a portion of the company, from large institutional investors to individual retail investors. As a publicly traded entity, West Bancorporation is subject to regulatory oversight and reporting requirements, ensuring transparency and accountability in its operations.

West Bancorporation, Inc.'s Ownership Breakdown

Understanding the ownership structure of West Bancorporation, Inc. provides insights into who has influence over the company's decisions. Here's a breakdown of the ownership composition:

West Bancorporation, Inc.'s Leadership

The leadership team at West Bancorporation, Inc. is responsible for setting the strategic direction and overseeing the day-to-day operations of the company. Key figures include:

• Kevin Linder: President and CEO of West Bancorporation.
• Douglas J. Bass: Executive Vice President and CFO.

These individuals, along with other members of the executive team, guide the company's financial performance, risk management, and overall growth strategy. More information about the company's mission can be found at Mission Statement, Vision, & Core Values of West Bancorporation, Inc. (WTBA).

West Bancorporation, Inc. (WTBA) Mission and Values

West Bancorporation strives to serve its clients and communities through a commitment to integrity, exceptional service, and financial strength. These values guide their operations and contribute to their long-term success and reputation.

West Bancorporation, Inc.’s Core Purpose

Official mission statement

West Bancorporation, Inc. does not have a formal, publicly declared mission statement. However, in its absence, we can infer their core mission from their operational focus and corporate communications. The bank emphasizes building long-term relationships with customers, offering personalized service, and supporting the economic growth of the communities it serves. This suggests a mission centered around being a trusted financial partner that contributes to the prosperity of its clients and the regions it operates in. Their approach combines the financial strength and resources of a larger institution with the personalized attention of a community bank.

Vision statement

While a specific vision statement is not formally published, West Bancorporation's actions and communications suggest a vision focused on sustainable growth, maintaining a strong financial position, and being recognized as a leading community-oriented financial institution. This involves:

• Expanding its presence in key markets.
• Investing in technology to enhance customer experience.
• Fostering a culture of excellence and integrity among its employees.

Company slogan/tagline

West Bancorporation, Inc. does not have a widely publicized official slogan or tagline. In lieu of a formal slogan, the company's brand messaging emphasizes its commitment to customer service, community involvement, and financial expertise. These themes recur in their marketing materials and investor communications, reinforcing the image of a reliable and community-focused financial institution.

For more in-depth insights into West Bancorporation, Inc., check out this related article: Exploring West Bancorporation, Inc. (WTBA) Investor Profile: Who’s Buying and Why?

West Bancorporation, Inc. (WTBA) How It Works

West Bancorporation, Inc. operates primarily through its subsidiary, West Bank, offering a range of community banking and trust services to individuals and small- to medium-sized businesses.

West Bancorporation's Product/Service Portfolio

West Bancorporation's Operational Framework

West Bancorporation's business is conducted almost exclusively through West Bank. The bank focuses on developing strong business and personal relationships with its customers by delivering products and services tailored to their individual needs. WTBA emphasizes teamwork, sound practices, and a focus on business banking. The bank also emphasizes strong cost controls, while striving to achieve an above average return on equity.

• Customer Relationships: West Bank emphasizes strong business and personal relationships between the bank and its customers.
• Local Focus: The bank concentrates on small- to medium-sized businesses in its local markets.
• Employee Compensation: WTBA offers above-average pay in exchange for above-average performance.
• Branch Network: West Bank has offices in the greater Des Moines, Iowa area, an office in Coralville, Iowa, and offices in Rochester, Owatonna, Mankato and St. Cloud, Minnesota.

West Bancorporation's Strategic Advantages

• Relationship-Based Business Model: West Bancorporation uses its successful relationship-based business model to grow stockholder value.
• Digital Transformation: West Bank invests heavily in its digital capabilities, to meet the changing needs of its customers.
• Strong Brand Recognition: West Bancorporation has strong brand recognition, an extensive branch network, and a diverse product portfolio.
• Strategic Partnerships: West Bancorporation maintains strategic partnerships with local and regional business networks, agricultural and commercial lending institutions, technology vendors, and regulatory compliance and financial advisory firms.

To learn more, check out Mission Statement, Vision, & Core Values of West Bancorporation, Inc. (WTBA).

West Bancorporation, Inc. (WTBA) How It Makes Money

West Bancorporation, Inc. primarily generates revenue through traditional banking activities, including taking deposits and originating loans. They profit from the interest rate spread, which is the difference between the interest earned on loans and the interest paid on deposits, as well as fees for various banking services.

West Bancorporation, Inc.'s Revenue Breakdown

West Bancorporation, Inc.'s Business Economics

West Bancorporation, Inc.'s profitability is significantly influenced by the broader economic environment and interest rate policies set by the Federal Reserve. Key aspects of their business economics include:

• Interest Rate Sensitivity: A significant portion of their income comes from net interest income, making them highly sensitive to changes in interest rates. When interest rates rise, their net interest margin typically expands, boosting profitability, and vice versa.
• Loan Portfolio Composition: The types of loans they issue (commercial, residential, agricultural) affect their risk profile and potential returns. A diversified loan portfolio can mitigate risks associated with economic downturns in specific sectors.
• Deposit Base: The cost and stability of their deposit base are crucial. A strong base of low-cost deposits allows them to lend at more competitive rates while maintaining a healthy margin.
• Operating Efficiency: Controlling operating expenses is essential for maintaining profitability. This includes managing salaries, overhead, and other administrative costs.

For more insights into West Bancorporation, Inc., explore this resource: Exploring West Bancorporation, Inc. (WTBA) Investor Profile: Who’s Buying and Why?

West Bancorporation, Inc.'s Financial Performance

Analyzing West Bancorporation, Inc.'s financial performance involves looking at several key metrics:

• Net Interest Margin (NIM): This is a critical indicator of profitability, representing the difference between interest income and interest expense, divided by average earning assets. A higher NIM indicates greater profitability.
• Return on Assets (ROA): This ratio measures how efficiently the company is using its assets to generate earnings. An ROA of 1% or higher is generally considered good.
• Return on Equity (ROE): This metric shows how effectively the company is using shareholders' equity to generate profit. An ROE of 10% or higher is often seen as a sign of good performance.
• Efficiency Ratio: This ratio measures operating expenses as a percentage of revenue. A lower efficiency ratio indicates better operational efficiency. A ratio below 60% is often considered desirable.
• Asset Quality: Monitoring non-performing loans and loan loss reserves is crucial. A low level of non-performing assets indicates a healthy loan portfolio.
• Capital Adequacy Ratios: These ratios, such as the Tier 1 capital ratio and total capital ratio, measure the bank's ability to absorb losses. Regulatory requirements typically mandate minimum levels for these ratios to ensure financial stability.

Based on the company's 2024 fiscal year data, these metrics provide a snapshot of its financial health and operational effectiveness, helping investors assess its long-term viability and growth potential.

West Bancorporation, Inc. (WTBA) Market Position & Future Outlook

West Bancorporation operates within a competitive banking landscape, striving to maintain and grow its market share through strategic initiatives focused on customer service, digital innovation, and community engagement. The company's future outlook is shaped by its ability to capitalize on market opportunities while effectively managing potential risks in the evolving financial environment.

Competitive Landscape

Opportunities & Challenges

Industry Position

West Bancorporation maintains a solid position as a regional bank, primarily serving customers in Iowa and surrounding areas.

• The company focuses on providing personalized banking services and building long-term relationships with its customers.
• WTBA emphasizes community involvement and support for local businesses.
• West Bancorporation is committed to investing in technology to enhance its digital banking capabilities and improve customer experience.

For more insights into the company's financial standing, consider reading: Breaking Down West Bancorporation, Inc. (WTBA) Financial Health: Key Insights for Investors