West Bancorporation · NASDAQ:WTBA
West Bancorporation — Investor Presentation (June 2025)
28 slides from West Bancorporation's investor presentation, Jun 12, 2025
Slide 1: West Bancorporation, Inc. Investor Presentation
West Bancorporation, Inc. Investor Presentation June 12, 2025
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements in this presentation, 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, a
Slide 3: Disclaimers
Disclaimers Non-GAAP Financial Information In addition to the results presented in accordance with U.S. General Accepted Accounting Principles (“GAAP”), the Company routinely supplements its evaluation with an analysis of certain non-GAAP financial measures. The Company believes these non-GAAP finan
Slide 4: Summary Financial Highlights (Q1 2025)
Summary Financial Highlights (Q1 2025) Geographic Presence • West Bancorporation, Inc. is a publicly-traded financial holding company (NASDAQ: WTBA) established in 1984 whose sole subsidiary is West Bank, founded in 1893. • WTBA is a strong performing company in U.S. community banking, well-versed i
Slide 5: Corporate History and Growth Profile
Corporate History and Growth Profile 5 1893 1984 2002 2003 2013 First Valley Junction Savings Bank is established, which later becomes West Bank. West Bancorporation, Inc. is formed as the holding company of West Bank. West Bancorporation, Inc. stock is listed on the NASDAQ stock exchange, with the
Slide 6: Meticulous Growth Strategy with Efficient Operations
Meticulous Growth Strategy with Efficient Operations Investment Highlights 6 Conservative yet opportunistic growth strategy, driven by a combination of ongoing organic loan and core deposit growth from existing footprint. Historic track record of successful lift-out strategies and employing a br
Slide 7: Market Overview - Iowa
Market Overview - Iowa Des Moines - West Des Moines, IA • Largest metropolitan statistical area (MSA) in Iowa with a population of approximately 754,0001 • Major center for the insurance and financial services industries with a high concentration of agriculture and biotech companies and a growing te
Slide 8: Market Overview - Minnesota
8 St. Cloud, MN • St. Cloud centrally located in Minnesota with an economy based on healthcare, manufacturing, agriculture, and national and international industry • 4th largest MSA in MN with a population of approximately 206,0001 • Low unemployment rate of 4.3%³ • Major employers include CentraCar
Slide 9: Experienced Executive Leadership
Experienced Executive Leadership David D. Nelson Director/Chief Executive Officer/President Joined West Bank in 2010 Years in Banking: 42 Prior to joining the Company Mr. Nelson was the President of Southeast Minnesota Business Banking and President of Wells Fargo Bank Rochester in Rochester, Minnes
Slide 10: Commitment to Community Leadership & Workplace Culture
Commitment to Community Leadership & Workplace Culture 10 The Greater Des Moines Partnership presented West Bank with a 2024 Economic Impact Award to recognize outstanding strategic contributions toward the economic vitality of the greater Des Moines Community. West Bancorporation’s new corporat
Slide 11: Commitment to Strong Corporate Governance
Commitment to Strong Corporate Governance 11 80% of Directors are independent. Female and minority representation makes up 30% of the Board of Directors. Director diversity in experiences and backgrounds include banking, business and financial expertise; public company experience; risk managem
Slide 12: Business Line Overview
Business Line Overview 12 (1) As of March 31, 2025 Business and Commercial Banking • Commercial real estate lending • Construction and development financing • Commercial and industrial lending • Letters of credit • Full suite of deposit and treasury management services Personal Banking Product Offer
Slide 13: Balance Sheet Metrics
Gross Loans / Deposits (%) Total Assets Loans 2 Total Deposits 2 Gross Loans / Deposits Balance Sheet Metrics 13 1) Dollars in millions 2) 2025Q1 rates are annualized $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 2021 2022 2023 2024 2025Q1 Total Assets ($MM) $3,500 $3,613 $3,826 $4,015 $3,
Slide 14: Earnings and Profitability
14 Return on Average Assets 1,2 Net Interest Margin 1,2,3 Return on Average Equity 1,2 Efficiency Ratio 1,3 Earnings and Profitability 1) WTBA peer medians; peer group as defined in Form 10-Q filed April 24, 2025: PEBO, NIC, GABC, FMBH, MOFG, MBWM, THFF, EQBK, FMNB, BWB, HBT, SMBC, HBIA, BFC, COFS,
Slide 15: Earnings Per Share and Dividend History
15 Earnings Per Share and Dividend History $0.62 $0.67 $0.71 $0.78 $0.83 $0.84 $0.94 $1.00 $1.00 $1.00 $1.00 $1.35 $1.42 $1.41 $1.74 $1.74 $1.98 $2.95 $2.76 $1.44 $1.42 $1.87 $- $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025Q1 (Annualized) Dividends
Slide 16: Net Interest Income
Net Interest Income 16 $95.1 $91.7 $69.0 $71.4 $84.6 3.05% 2.76% 2.01% 1.91% 2.28% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 $90.0 $100.0 2021 2022 2023 2024 2025Q1 • Net interest margin improved in Q1 2025 as the Company’s deposit costs ben
Slide 17: Noninterest Income and Noninterest Expense
Noninterest Income Noninterest Expense Noninterest Income and Noninterest Expense 1) Dollars in thousands 17 • Other noninterest income includes nonrecurring items, such as BOLI gains, loan swap fees and realized securities gains and losses. • Other noninterest expense includes technology and softwa
Slide 18: Loan Portfolio: Overview
Loan Portfolio: Overview 18 1) Dollars in thousands; as of March 31, 2025 2) Amounts do not include unamortized fees and costs of approximately $2.9 million Loan Composition2 Loan Portfolio Overview $451,230Construction & Development 108,2531-4 Family 402,471Multifamily 398,577Owner-Occupied RE 1,10
Slide 19: Loan Portfolio: CRE and C&D
1) Data as of March 31, 2025 Loan Portfolio: CRE and C&D 19 CRE Composition CRE and C&D Overview • The four largest CRE concentration types are multifamily, warehouse, hotels and 1-4 family dwelling and have average WALTVs of 62% - 69% and DSC ratios of 1.29 to 1.76. C&D WALTV of 56%. • Heightened r
Slide 20: Credit Culture Overview
• Legal lending limit of $68.4 million • No subprime lending • No specialty or niche lending • Loan participations make up less than 2.6% of the loan portfolio • Disciplined underwriting • Experienced executive loan committee • Seasoned bankers with significant regional and industry experience • Ban
Slide 21: Credit Quality
• Conservative underwriting continues to result in consistently pristine credit quality performance • Non-performing assets to total assets ranged from 0.00% - 0.02% over the last 10 years (2015-2024) • Net charge-off to average assets ranged from (0.04)% to 0.02% over the last 10 years (2015-2024)
Slide 22: Deposit Portfolio
Deposit Portfolio 22 Deposit Composition Cost of Total Deposits Additional Deposit Information 1) Dollars in thousands; as of March 31, 2025 2) Core deposits equates to total deposits less brokered deposits $519,771Non-Interest Bearing Demand 517,409Interest Bearing Demand 1,633,612MMDA & Savings 65
Slide 23: Investment Portfolio
Investment Portfolio Municipal Securities Geography & Ratings Securities Portfolio 23 Municipals Distribution Rating (%) AAA 16.4 AA 72.8 A 10.8 NR 0.0 Investment Portfolio Detail Book Yield (%) Fair Unrealized Value Gain /(Loss) ($000) ($000) Book Value ($000)Sector 1.59($49,317)$223,759$273,076Col
Slide 24: Funding and Liquidity
24 Funding and Liquidity 1) Dollars in thousands; as of March 31, 2025 • Holding company level cash of $4.4 million • Term loan with a remaining balance of $30.0 million – Rate: Wall Street Journal Prime Rate less 100bps – Quarterly principal payments of $1.25 million, with the balance due February
Slide 25: Historic Capital Ratios
Historic Capital Ratios 25 Common Equity Tier 1 Capital Ratio Tier 1 Capital Ratio Tier 1 Leverage Ratio Total Risk Based Capital Ratio 9.24% 8.96% 8.74% 8.95% 9.02% 11.13% 12.33% 11.89% 11.95% 11.99% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 2021 2022 2023 2024 Q1 2025 Consolidated West Ba
Slide 26: Summary
Summary 1) Financial data for the quarter ended March 31, 2025 2) Presented on an FTE basis; see Appendix for “Reconciliation of Non-GAAP Financial Measures” Meaningfully Sized Commercial Bank with Strong Profitability With approximately $4.0 billion in assets, WTBA has a track record of strong prof
Slide 27: Appendix
Appendix 27
Slide 28: Reconciliation of Non-GAAP Financial Measures
Appendix Reconciliation of Non-GAAP Financial Measures 28 For the Quarter Ended, For the Year Ended, 3/31/202512/31/202412/31/202312/31/202212/31/2021 Reconciliation of net interest income and annualized net interest margin on an FTE basis to GAAP: $20,855$71,362$69,031$91,740$95,059Net interest inc
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