
West Bancorp (WTBA) Stock Forecast & Price Target
West Bancorp (WTBA) Analyst Ratings
Bulls say
West Bancorp Inc. has demonstrated a positive trend in its net interest margin, which rose to 1.98%, driven by a notable reduction in the cost of deposits and an increase in earning asset yield. The company's net interest income (NII) exceeded expectations, attributed to a larger earning asset base, and overall deposits grew by 2% to $3.36 billion, indicating solid customer engagement and financial health. Additionally, the tangible common equity (TCE) ratio improved to 5.9%, with strong returns on assets (ROA) of 0.60% and return on equity (ROE) of 10.4%, reflecting effective management and profitability amidst shifting interest rates.
Bears say
The current analysis presents a negative outlook on West Bancorp's stock primarily due to a declining loan-to-deposit ratio, which dropped to 92%, indicating potential liquidity concerns that could affect future growth. Additionally, the tangible common equity (TCE) ratio decreased to 5.7%, attributed to a negative fair value mark on available-for-sale securities amid rising interest rates, which raises concerns over the bank's capital strength. Lastly, the decline in both noninterest demand deposit accounts and tangible book value per share, which fell 3% to $13.54, further signals challenges in maintaining customer deposits and overall valuation, exacerbating the financial institution's pressures in a competitive market.
This aggregate rating is based on analysts' research of West Bancorp and is not a guaranteed prediction by Public.com or investment advice.
West Bancorp (WTBA) Analyst Forecast & Price Prediction
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