West Bancorporation: Loan Growth To Boost Earnings In 2020

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About: West Bancorporation, Inc. (WTBA)
by: Sheen Bay Research
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Sheen Bay Research
Research analyst, macro, ETF investing, banks
Summary

Loan growth is expected to propel the bank's earnings next year. Factors responsible for loan increases include low rates, declining payoffs, and a robust pipeline.

Earnings will also receive support from stable margins. WTBA has room to shift assets into higher yielding loans, which will support margins next year.

Dividends are expected to increase next year to $0.87, resulting in a forward dividend yield of 3.64%.

West Bancorporation (WTBA) shares performed well in the third quarter, which is expected to continue in the remainder of the year. Earnings are expected to improve even further in 2020 on the back