West Bancorp (WTBA) Stock Forecast & Price Target

West Bancorp has demonstrated robust financial performance, with a notable increase in net interest income (NII) expected to rise by 7% quarter-over-quarter in 4Q25 and 15% year-over-year, largely fueled by continued mid-single digit loan growth. The company's core fee income also saw a 4% increase quarter-over-quarter, enhancing overall revenue streams, while end-of-period loans increased by $43 million, bolstered by various loan categories including commercial real estate and consumer loans. Additionally, the projected rise in tangible common equity (TCE) to 6.2% / 6.6% by 4Q25 / 4Q26 indicates a solid capital position, further supporting West Bancorp's positive outlook.

West Bancorp Inc. has experienced a 2% decline in end-of-period loans held for investment (HFI) and a 1% decrease in average loans quarter-over-quarter, which reflects a weaker lending environment and subdued client demand. The company’s loan growth outlook for the remainder of the year appears constrained, anticipating only low-to-mid single-digit growth, largely due to macroeconomic uncertainties and heightened selectivity in credit underwriting. Furthermore, the bank's recent performance also indicates challenges in core deposit gathering and core fee income, which could negatively impact overall financial stability moving forward.