EX-99.1 2 wtba-20260129exhibit991.htm EX-99.1 Document

Exhibit 99.1

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Press Release
 
January 29, 2026
 
FOR IMMEDIATE RELEASE
For more information contact:
Jane Funk, Executive Vice President, Treasurer and Chief Financial Officer (515) 222-5766
 
WEST BANCORPORATION, INC. ANNOUNCES FOURTH QUARTER 2025 FINANCIAL RESULTS AND DECLARES QUARTERLY DIVIDEND

West Des Moines, IA - West Bancorporation, Inc. (Nasdaq: WTBA; the “Company”), parent company of West Bank, today reported 2025 net income of $32.6 million, or $1.92 per diluted common share, compared to 2024 net income of $24.1 million, or $1.42 per diluted common share. Net income for the fourth quarter 2025 was $7.4 million, or $0.43 per diluted common share, compared to third quarter 2025 net income of $9.3 million, or $0.55 per diluted common share, and fourth quarter 2024 net income of $7.1 million, or $0.42 per diluted common share. On January 28, 2026, the Company’s Board of Directors declared a regular quarterly dividend of $0.25 per common share. The dividend is payable on February 25, 2026, to stockholders of record on February 11, 2026.

David Nelson, President and Chief Executive Officer of the Company, commented, “We have had continuous improvement in earnings and key performance metrics throughout 2025 and finished the year very strong. Through proactive and strategic balance sheet management, we see opportunities for further improvements in 2026. West Bank remains focused on relationship building and outstanding service and support. Our customer base continues to grow in all of our markets.”

David Nelson added, “We had no loans on nonaccrual status and no loans past due greater than 30 days at December 31, 2025. Our pristine credit quality is the result of our disciplined underwriting standards and steadfast approach to risk, which is consistently executed regardless of the economic or interest rate environment.”

Fourth Quarter 2025 Compared to Third Quarter 2025 Overview

•Loans decreased $7.2 million, or 0.2 percent, in the fourth quarter of 2025.

•No credit loss expense on loans was recorded in either the fourth or third quarter of 2025.

•The allowance for credit losses to total loans was 1.02 percent at December 31, 2025, compared to 1.01 percent at September 30, 2025. There were no nonaccrual loans at December 31, 2025 or September 30, 2025. Watch list loans increased from $38.7 million as of September 30, 2025 to $52.2 million as of December 31, 2025. This increase was primarily due to one commercial real estate loan which we believe, as of December 31, 2025, was adequately collateralized.

•Deposits increased $162.0 million, or 4.9 percent, in the fourth quarter of 2025. Brokered deposits totaled $154.6 million at December 31, 2025, compared to $204.8 million at September 30, 2025, a decrease of $50.2 million. Excluding brokered deposits, deposits increased $212.2 million, or 6.8 percent, during the fourth quarter of 2025. As of December 31, 2025, estimated uninsured deposits, which exclude deposits in a reciprocal deposit network, brokered deposits and public funds protected by state programs, accounted for approximately 28.4 percent of total deposits.

•Net interest margin, on a fully tax-equivalent basis (a non-GAAP measure), was 2.47 percent for the fourth quarter of 2025, compared to 2.36 percent for the third quarter of 2025. Net interest income for the fourth quarter of 2025 was $24.2 million, compared to $22.5 million for the third quarter of 2025. These improvements primarily resulted from growth in and changes in the mix of interest earning-assets and reductions to deposit interest rates in response to reductions in the federal funds rate, partially offset by a reduction in rates on variable-rate loans and growth in deposits.




•The efficiency ratio (a non-GAAP measure) was 50.21 percent for the fourth quarter of 2025, compared to 54.06 percent for the third quarter of 2025. The improvement in the efficiency ratio was primarily due to the increase in net interest income.

•In November 2025, the Company sold $63.7 million of securities available for sale and realized a pre-tax net loss of $4.0 million. The securities sold had a weighted average yield of 2.90 percent. We believe this transaction improves the flexibility of our balance sheet. Proceeds may be used for strategic improvement in our long-term earnings profile through redeployment into higher-earning assets or repayment of higher-costing borrowings.
•The tangible common equity ratio was 6.42 percent as of December 31, 2025, compared to 6.40 percent as of September 30, 2025.

Fourth Quarter 2025 Compared to Fourth Quarter 2024 Overview

•Loans decreased $3.2 million at December 31, 2025, or 0.1 percent, compared to December 31, 2024.

•Deposits increased $110.9 million, or 3.3 percent, at December 31, 2025, compared to December 31, 2024. Included in deposits were brokered deposits totaling $154.6 million at December 31, 2025, compared to $266.4 million at December 31, 2024. Excluding brokered deposits, deposits increased $222.7 million, or 7.2 percent, as of December 31, 2025, compared to December 31, 2024.

•Net interest margin, on a fully tax-equivalent basis (a non-GAAP measure), was 2.47 percent for the fourth quarter of 2025, compared to 1.98 percent for the fourth quarter of 2024. Net interest income for the fourth quarter of 2025 was $24.2 million, compared to $19.4 million for the fourth quarter of 2024. The increase in net interest margin and net interest income was primarily due to the decrease in interest expense on deposits and borrowed funds. The cost of deposits decreased by 64 basis points in the fourth quarter of 2025 compared to the fourth quarter of 2024. Also contributing to the improvement was a decrease in average balances in borrowed funds of $39.6 million in the fourth quarter of 2025 compared to the fourth quarter of 2024.
•The efficiency ratio (a non-GAAP measure) was 50.21 percent for the fourth quarter of 2025, compared to 60.79 percent for the fourth quarter of 2024. The improvement in the efficiency ratio in the fourth quarter of 2025 compared to the fourth quarter of 2024 was primarily due to the increase in net interest income.

•The tangible common equity ratio was 6.42 percent as of December 31, 2025, compared to 5.68 percent as of December 31, 2024. The increase in the tangible common equity ratio was due to growth in retained earnings and a decrease in accumulated other comprehensive loss.

Year Ended 2025 Compared to Year Ended 2024 Overview

•The Company recorded no credit loss expense in 2025, compared to a credit loss expense of $1.0 million in 2024. The credit loss expense in 2024 was primarily due to an adjustment to qualitative factors within the commercial real estate segment and changes in forecasted loss rates, which was driven by an increase in the forecasted unemployment rate.

•Net interest margin, on a fully tax-equivalent basis (a non-GAAP measure) was 2.35 percent for the year ended December 31, 2025, compared to 1.91 percent for the year ended December 31, 2024. Net interest income increased $17.6 million in 2025 compared to 2024. The increase in net interest income was primarily due to the increase in interest income on short-term assets consisting of deposits with banks and securities purchased under agreements to resell and decrease in interest expense on deposits and borrowed funds, partially offset by a decrease in interest income on securities. The increase in interest income on interest-earning assets was driven by growth in and changes in the mix of interest-earning assets. The cost of deposits and cost of borrowed funds decreased by 55 and 21 basis points, respectively, in 2025 compared to 2024, contributing to the reduction in interest expense. Also contributing to the reduction in interest expense was the change in mix of interest-bearing liabilities.

The Company plans to file its report on Form 10-K with the Securities and Exchange Commission on or before February 26, 2026. Please refer to that document for a more in-depth discussion of the Company’s financial results. The Form 10-K will be available on the Investor Relations section of West Bank’s website at www.westbankstrong.com.





The Company will discuss its results in a conference call scheduled for 2:00 p.m. Central Time on Thursday, January 29, 2026. The telephone number for the conference call is 800-715-9871. The conference ID for the conference call is 7846129. A recording of the call will be available until February 12, 2026, by dialing 800-770-2030. The conference ID for the replay call is 7846129 followed by the # key.

About West Bancorporation, Inc. (Nasdaq: WTBA)

West Bancorporation, Inc. is headquartered in West Des Moines, Iowa. Serving customers since 1893, West Bank, a wholly-owned subsidiary of West Bancorporation, Inc., is a community bank that focuses on lending, deposit services, and trust services for small- to medium-sized businesses and consumers. West Bank has six offices in the Des Moines, Iowa metropolitan area, one office in Coralville, Iowa, and four offices in Minnesota in the cities of Rochester, Owatonna, Mankato and St. Cloud.

Certain statements in this report, other than purely historical information, including estimates, projections, statements relating to the Company’s business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may appear throughout this report. These forward-looking statements are generally identified by the words “believes,” “expects,” “intends,” “anticipates,” “projects,” “future,” “confident,” “may,” “should,” “will,” “strategy,” “plan,” “opportunity,” “will be,” “will likely result,” “will continue” or similar references, or references to estimates, predictions or future events. Such forward-looking statements are based upon certain underlying assumptions, risks and uncertainties. Because of the possibility that the underlying assumptions are incorrect or do not materialize as expected in the future, actual results could differ materially from these forward-looking statements.  Risks and uncertainties that may affect future results include: interest rate risk, including the effects of changes in interest rates; fluctuations in the values of the securities held in our investment portfolio, including as a result of changes in interest rates; competitive pressures, including from non-bank competitors such as credit unions, “fintech” companies and digital asset service providers; technological changes implemented by us and other parties, including third-party vendors, which may be more difficult to implement or more expensive than anticipated or which may have unforeseen consequences to us and our customers, including the development and implementation of tools incorporating artificial intelligence; pricing pressures on loans and deposits; our ability to successfully manage liquidity risk; changes in credit and other risks posed by the Company’s loan portfolio, including declines in commercial or residential real estate values or changes in the allowance for credit losses dictated by new market conditions, accounting standards or regulatory requirements; the concentration of large deposits from certain clients, including those who have balances above current FDIC insurance limits; the threat or imposition of domestic or foreign tariffs or other governmental policies impacting the global supply chain and the value of products produced by our commercial borrowers; changes in local, national and international economic conditions, including the level and impact of inflation, and future monetary policies of the Federal Reserve or executive orders in response thereto; the impact of bank failures or adverse developments at other banks and related negative publicity about the banking industry in general on investor and depositor sentiment regarding the stability and liquidity of banks; changes in legal and regulatory requirements, limitations and costs; changes in customers’ acceptance of the Company’s products and services; the occurrence of fraudulent activity, breaches or failures of our or our third-party partners’ information security controls or cyber-security related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools; unexpected outcomes of existing or new litigation involving the Company; the monetary, trade, foreign and other regulatory policies of the U.S. government; military conflicts, acts of war or terrorism, or threats thereof, including the Israeli-Palestinian conflict, recent military activity in Venezuela and the Russian invasion of Ukraine, widespread disease or pandemics, or other adverse external events; risks related to climate change and the negative impact it may have on our customers and their businesses; changes to U.S. tax laws, regulations and guidance; potential changes in federal policy and at regulatory agencies under the Trump administration; new or revised accounting policies and practices, as may be adopted by state and federal regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission or the Public Company Accounting Oversight Board; talent and labor shortages and employee turnover; and any other risks described in the “Risk Factors” sections of reports filed by the Company with the Securities and Exchange Commission. The Company undertakes no obligation to revise or update such forward-looking statements to reflect current or future events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.




WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
As of and for the Quarter EndedFor the Year Ended
KEY PERFORMANCE RATIOS AND OTHER METRICSDecember 31, 2025September 30, 2025June 30, 2025March 31, 2025December 31, 2024December 31, 2025December 31, 2024
Return on average assets(1)
0.72 %0.92 %0.80 %0.81 %0.68 %0.81 %0.61 %
Return on average equity(2)
11.33 15.25 13.65 13.84 12.24 13.47 10.71 
Net interest margin(3)(13)
2.47 2.36 2.27 2.28 1.98 2.35 1.91 
Yield on interest-earning assets(4)(13)
5.02 5.13 5.07 5.04 5.02 5.06 5.08 
Cost of interest-bearing liabilities3.02 3.26 3.28 3.25 3.57 3.20 3.73 
Efficiency ratio(5)(13)
50.21 54.06 56.45 56.37 60.79 54.11 63.25 
Nonperforming assets to total assets(6)
0.00 0.00 0.00 0.00 0.00 
ACL ratio(7)
1.02 1.01 1.03 1.01 1.01 
Loans/total assets72.47 75.50 73.12 75.66 74.84 
Loans/total deposits86.54 91.00 87.45 90.73 89.49 
Tangible common equity ratio(8)
6.42 6.40 5.94 5.97 5.68 
COMMON SHARE DATA
Earnings per common share (basic)$0.44 $0.55 $0.47 $0.47 $0.42 $1.92 $1.43 
Earnings per common share (diluted)0.43 0.55 0.47 0.46 0.42 1.92 1.42 
Dividends per common share0.25 0.25 0.25 0.25 0.25 1.00 1.00 
Book value per common share(9)
15.70 15.06 14.22 14.06 13.54 
Closing stock price22.19 20.32 19.63 19.94 21.65 
Market price/book value(10)
141.34 %134.93 %138.05 %141.82 %159.90 %
Price earnings ratio(11)
12.71 9.31 10.41 10.46 12.96 
Annualized dividend yield(12)
4.51 %4.92 %5.09 %5.02 %4.62 %
REGULATORY CAPITAL RATIOS
Consolidated:
Total risk-based capital ratio12.77 %12.54 %12.53 %12.18 %12.11 %
Tier 1 risk-based capital ratio10.14 9.93 9.89 9.59 9.51 
Tier 1 leverage capital ratio8.44 8.51 8.33 8.36 7.93 
Common equity tier 1 ratio9.56 9.37 9.32 9.02 8.95 
West Bank:
Total risk-based capital ratio13.35 %13.17 %13.21 %12.90 %12.86 %
Tier 1 risk-based capital ratio12.44 12.26 12.29 11.99 11.96 
Tier 1 leverage capital ratio10.35 10.50 10.36 10.46 9.97 
Common equity tier 1 ratio12.44 12.26 12.29 11.99 11.96 

(1) Annualized net income divided by average assets.
(2) Annualized net income divided by average stockholders’ equity.
(3) Annualized tax-equivalent net interest income divided by average interest-earning assets.
(4) Annualized tax-equivalent interest income on interest-earning assets divided by average interest-earning assets.
(5) Noninterest expense (excluding other real estate owned expense and write-down of premises) divided by noninterest income (excluding net securities gains/losses and gains/losses on disposition of premises and equipment) plus tax-equivalent net interest income.
(6) Total nonperforming assets divided by total assets.
(7) Allowance for credit losses on loans divided by total loans.    
(8) Common equity less intangible assets (none held) divided by tangible assets.
(9) Includes accumulated other comprehensive loss.
(10) Closing stock price divided by book value per common share.
(11) Closing stock price divided by annualized earnings per common share (basic).
(12) Annualized dividend divided by period end closing stock price.
(13) A non-GAAP measure.









WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
(in thousands)
As of
CONDENSED BALANCE SHEETSDecember 31, 2025September 30, 2025June 30, 2025March 31, 2025December 31, 2024
Assets
Cash and due from banks$25,171 $26,875 $35,796 $39,253 $28,750 
Interest-earning deposits with banks324,502 109,265 212,450 171,357 214,728 
Securities purchased under agreements to resell121,413 96,792 96,955 — — 
Securities available for sale, at fair value468,447 537,856 536,709 546,619 544,565 
Federal Home Loan Bank stock, at cost15,167 15,190 15,311 15,216 15,129 
Loans3,001,690 3,008,888 2,966,357 3,016,471 3,004,860 
Allowance for credit losses(30,525)(30,515)(30,539)(30,526)(30,432)
Loans, net2,971,165 2,978,373 2,935,818 2,985,945 2,974,428 
Premises and equipment, net108,380 109,212 109,806 110,270 109,985 
Bank-owned life insurance46,192 45,875 45,567 45,272 44,990 
Other assets61,807 66,042 68,257 72,737 82,416 
Total assets$4,142,244 $3,985,480 $4,056,669 $3,986,669 $4,014,991 
Liabilities and Stockholders’ Equity
Deposits$3,468,470 $3,306,517 $3,391,993 $3,324,518 $3,357,596 
Borrowings376,406 389,076 390,260 391,445 392,629 
Other liabilities31,383 34,754 33,486 32,833 36,891 
Stockholders’ equity265,985 255,133 240,930 237,873 227,875 
Total liabilities and stockholders’ equity$4,142,244 $3,985,480 $4,056,669 $3,986,669 $4,014,991 
For the Quarter Ended
AVERAGE BALANCESDecember 31, 2025September 30, 2025June 30, 2025March 31, 2025December 31, 2024
Assets$4,104,279 $4,004,769 $4,016,490 $3,944,789 $4,135,049 
Loans2,982,754 2,959,962 2,989,638 3,016,119 3,007,558 
Deposits3,418,539 3,333,800 3,353,982 3,284,394 3,434,234 
Stockholders’ equity259,932 242,245 234,399 229,874 230,720 



WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
(in thousands)
As of
LOANSDecember 31, 2025September 30, 2025June 30, 2025March 31, 2025December 31, 2024
Commercial$505,059 $511,316 $500,854 $531,267 $514,232 
Real estate:
Construction, land and land development426,833 448,660 459,037 451,230 508,147 
1-4 family residential first mortgages93,122 87,784 86,173 86,292 87,858 
Home equity26,088 27,083 24,285 21,961 19,294 
Commercial1,929,766 1,912,235 1,875,857 1,909,330 1,861,195 
Consumer and other23,374 24,697 22,900 19,323 17,287 
3,004,242 3,011,775 2,969,106 3,019,403 3,008,013 
Net unamortized fees and costs(2,552)(2,887)(2,749)(2,932)(3,153)
Total loans$3,001,690 $3,008,888 $2,966,357 $3,016,471 $3,004,860 
Less: allowance for credit losses(30,525)(30,515)(30,539)(30,526)(30,432)
Net loans$2,971,165 $2,978,373 $2,935,818 $2,985,945 $2,974,428 
CREDIT QUALITY
Pass$2,952,015 $2,973,103 $2,958,318 $3,011,231 $2,999,531 
Watch52,227 38,672 10,788 7,991 8,349 
Substandard— — — 181 133 
Doubtful— — — — — 
     Total loans$3,004,242 $3,011,775 $2,969,106 $3,019,403 $3,008,013 
DEPOSITS
Noninterest-bearing demand$540,358 $512,869 $521,990 $519,771 $541,053 
Interest-bearing demand577,814 448,731 461,207 517,409 543,855 
Savings and money market - non-brokered1,739,790 1,677,543 1,749,049 1,490,189 1,517,510 
Money market - brokered99,718 121,849 98,877 143,423 126,381 
    Total nonmaturity deposits2,957,680 2,760,992 2,831,123 2,670,792 2,728,799 
Time - non-brokered455,944 462,542 451,463 461,655 488,760 
Time - brokered54,846 82,983 109,407 192,071 140,037 
    Total time deposits510,790 545,525 560,870 653,726 628,797 
    Total deposits$3,468,470 $3,306,517 $3,391,993 $3,324,518 $3,357,596 
BORROWINGS
Subordinated notes, net$80,156 $80,090 $80,024 $79,959 $79,893 
Federal Home Loan Bank advances270,000 270,000 270,000 270,000 270,000 
Long-term debt26,250 38,986 40,236 41,486 42,736 
    Total borrowings$376,406 $389,076 $390,260 $391,445 $392,629 
STOCKHOLDERS’ EQUITY
Preferred stock$— $— $— $— $— 
Common stock3,000 3,000 3,000 3,000 3,000 
Additional paid-in capital37,231 36,473 35,773 35,072 35,619 
Retained earnings294,259 291,069 285,990 282,247 278,613 
Accumulated other comprehensive loss(68,505)(75,409)(83,833)(82,446)(89,357)
    Total stockholders’ equity$265,985 $255,133 $240,930 $237,873 $227,875 




WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
(in thousands)
For the Quarter Ended
CONSOLIDATED STATEMENTS OF INCOMEDecember 31, 2025September 30, 2025June 30, 2025March 31, 2025December 31, 2024
Interest income:
Loans, including fees$41,992 $42,198 $41,666 $40,988 $41,822 
Securities:
Taxable2,355 2,643 2,685 2,788 2,959 
Tax-exempt677 739 742 743 795 
Deposits with banks2,808 2,087 2,847 1,617 3,740 
Securities purchased under agreements to resell1,370 1,258 22 — — 
Total interest income49,202 48,925 47,962 46,136 49,316 
Interest expense:
Deposits21,112 22,539 22,676 21,423 25,706 
Subordinated notes1,109 1,107 1,104 1,105 1,106 
Federal Home Loan Bank advances2,316 2,292 2,259 2,235 2,522 
Long-term debt459 486 504 518 560 
Total interest expense24,996 26,424 26,543 25,281 29,894 
Net interest income24,206 22,501 21,419 20,855 19,422 
Credit loss expense— — — — 1,000 
Net interest income after credit loss expense24,206 22,501 21,419 20,855 18,422 
Noninterest income:
Service charges on deposit accounts493 491 486 471 462 
Debit card interchange income493 477 478 446 471 
Trust services964 894 801 777 1,051 
 Increase in cash value of bank-owned life insurance317 308 295 282 287 
Realized securities losses, net(3,959)— — — (1,172)
Other income800 333 350 267 331 
Total noninterest income(892)2,503 2,410 2,243 1,430 
Noninterest expense:
Salaries and employee benefits7,579 7,457 7,343 7,004 7,107 
Occupancy and equipment2,083 2,090 2,034 1,963 2,095 
Data processing673 663 643 617 752 
Technology and software789 794 791 786 743 
FDIC insurance475 637 670 587 699 
Professional fees297 303 303 308 301 
Other expenses1,833 1,606 1,701 1,798 1,702 
Total noninterest expense13,729 13,550 13,485 13,063 13,399 
Income before income taxes9,585 11,454 10,344 10,035 6,453 
Income taxes2,160 2,140 2,365 2,193 (644)
Net income$7,425 $9,314 $7,979 $7,842 $7,097 
Basic earnings per common share$0.44 $0.55 $0.47 $0.47 $0.42 
Diluted earnings per common share$0.43 $0.55 $0.47 $0.46 $0.42 




WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
(in thousands)
For the Year Ended
CONSOLIDATED STATEMENTS OF INCOMEDecember 31, 2025December 31, 2024
Interest income:
Loans, including fees$166,844 $166,222 
Securities:
Taxable10,471 13,030 
Tax-exempt2,901 3,219 
Deposits with banks9,359 7,595 
Securities purchased under agreements to resell2,650 — 
Total interest income192,225 190,066 
Interest expense:
Deposits87,750 97,284 
Federal funds purchased and other short-term borrowings— 4,248 
Subordinated notes4,425 4,431 
Federal Home Loan Bank advances9,102 10,313 
Long-term debt1,967 2,428 
Total interest expense103,244 118,704 
Net interest income88,981 71,362 
Credit loss expense— 1,000 
Net interest income after credit loss expense88,981 70,362 
Noninterest income:
Service charges on deposit accounts1,941 1,843 
Debit card interchange income1,894 1,919 
Trust services3,436 3,449 
Increase in cash value of bank-owned life insurance1,202 1,126 
Realized securities losses, net(3,959)(1,172)
Other income1,750 1,269 
Total noninterest income6,264 8,434 
Noninterest expense:
Salaries and employee benefits29,383 27,588 
Occupancy and equipment8,170 7,320 
Data processing2,596 2,991 
Technology and software3,160 2,896 
FDIC insurance2,369 2,560 
Professional fees1,211 1,041 
Other expenses6,938 6,957 
Total noninterest expense53,827 51,353 
Income before income taxes41,418 27,443 
Income taxes8,858 3,393 
Net income$32,560 $24,050 
Basic earnings per common share$1.92 $1.43 
Diluted earnings per common share$1.92 $1.42 





NON-GAAP FINANCIAL MEASURES

This report contains references to financial measures that are not defined in GAAP. Such non-GAAP financial measures include the Company’s presentation of net interest income and net interest margin on a fully taxable equivalent (FTE) basis and the presentation of the efficiency ratio on an adjusted and FTE basis, excluding certain income and expenses. Management believes these non-GAAP financial measures provide useful information to both management and investors to analyze and evaluate the Company’s financial performance. These measures are considered standard measures of comparison within the banking industry. Additionally, management believes providing measures on a FTE basis enhances the comparability of income arising from taxable and nontaxable sources. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in these measures and that different companies might calculate these measures differently. These non-GAAP disclosures should not be considered an alternative to the Company’s GAAP results. The following table reconciles the non-GAAP financial measures of net interest income and net interest margin on a fully taxable equivalent basis and efficiency ratio on an adjusted and FTE basis.

 (in thousands)For the Quarter EndedFor the Year Ended
December 31, 2025September 30, 2025June 30, 2025March 31, 2025December 31, 2024December 31, 2025December 31, 2024
Reconciliation of net interest income and net interest margin on a FTE basis to GAAP:
Net interest income (GAAP)$24,206 $22,501 $21,419 $20,855 $19,422 $88,981 $71,362 
Tax-equivalent adjustment (1)
70 61 59 66 16 256 182 
Net interest income on a FTE basis (non-GAAP)24,276 22,562 21,478 20,921 19,438 89,237 71,544 
Average interest-earning assets3,893,827 3,790,154 3,799,081 3,717,441 3,910,978 3,800,582 3,747,528 
Net interest margin on a FTE basis (non-GAAP)2.47 %2.36 %2.27 %2.28 %1.98 %2.35 %1.91 %
Reconciliation of efficiency ratio on an adjusted and FTE basis to GAAP:
Net interest income on a FTE basis (non-GAAP)$24,276 $22,562 $21,478 $20,921 $19,438 $89,237 $71,544 
Noninterest income(892)2,503 2,410 2,243 1,430 6,264 8,434 
Adjustment for realized securities losses, net3,959 — — — 1,172 3,959 1,172 
Adjustment for losses on disposal of premises and equipment, net— — — 8 — 8 47 
Adjusted income27,343 25,065 23,888 23,172 22,040 99,468 81,197 
Noninterest expense13,729 13,550 13,485 13,063 13,399 53,827 51,353 
Efficiency ratio on an adjusted and FTE basis (non-GAAP) (2)
50.21 %54.06 %56.45 %56.37 %60.79 %54.11 %63.25 %
(1)    Computed on a tax-equivalent basis using a federal income tax rate of 21 percent, adjusted to reflect the effect of the nondeductible interest expense associated with owning tax-exempt securities and loans. Management believes the presentation of this non-GAAP measure provides supplemental useful information for proper understanding of the financial results, as it enhances the comparability of income arising from taxable and nontaxable sources.
(2)     The efficiency ratio expresses noninterest expense as a percent of fully taxable equivalent net interest income and noninterest income, excluding specific noninterest income and expenses. Management believes the presentation of this non-GAAP measure provides supplemental useful information for proper understanding of the Company's financial performance. It is a standard measure of comparison within the banking industry. A lower ratio is more desirable.