Slide 1: Fourth Quarter 2022 Earnings Highlights
1 Fourth Quarter 2022 Earnings Highlights January 26, 2023
Slide 2: Forward-looking statements
2 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, are “forward-looking state
Slide 3: 4Q 2022 Financial Highlights
3 4Q 2022 Financial Highlights (1) Presented on a fully taxable equivalent basis; see Appendix for “Non-GAAP Financial Measures.” $26.26 NASDAQ: WTBA December 30, 2022* Closing Price: $25.55 4Q 2022 Price Range: 0.50 to $25.62 Cash Dividend Declared On January 25, 2023: $0.25 (payable on February 22
Slide 4: Company Profile and Mission
4 • West Bancorporation, Inc. (the “Company”) is a publicly-traded financial holding company (NASDAQ: WTBA) established in 1984 whose sole subsidiary is West Bank, founded in 1893. • West Bank is headquartered in West Des Moines, Iowa and has 11 branches and commercial banking offices serving the gr
Slide 5: Experienced Executive Leadership
5 Experienced Executive Leadership David D. Nelson Director/Chief Executive Officer/President Joined West Bank in 2010 Years in Banking: 39 Prior to joining the Company Mr. Nelson was the President of Southeast Minnesota Business Banking and President of Wells Fargo Bank Rochester in Rochester, Minn
Slide 6: Conservative Organic Growth with Successful Lift-Out Strategies
6 Conservative Organic Growth with Successful Lift-Out Strategies 2010 2013 2016 2018 2019 2020 2022 2022 Began construction on new corporate headquarters in West Des Moines, Iowa. After being in the same leased space for fifty years, the new building is an opportunity to consolidate our corporate o
Slide 7: Company Highlights – Commitment to Excellence
7 Company Highlights – Commitment to Excellence West Bancorporation is one of the strongest performing companies in U.S. community banking, well- versed in providing commercial banking services including loans and lines of credit and all types of deposit services, to small and medium-sized businesse
Slide 8: Company Highlights – Commitment to Excellence
8 Company Highlights – Commitment to Excellence West Bank is a commercially-focused financial institution operating in high quality markets in Iowa and Minnesota led by a deep and experienced management team with skills developed internally and with other large regional banking institutions. Risk Ma
Slide 9: Loans & Deposits
9 Loans & Deposits $2,965 $3,067 $3,003 $2,865 $2,902 $2,842 $2,880 4Q21 1Q22 2Q22 3Q22 4Q22 3Q22 4Q22 Deposits ($ in million) • Interest-bearing deposits increased $76.7 million. • Brokered deposits increased $14.6 million. • Higher deposit costs were driven by the Federal Reserve’s rate increases,
Slide 10: Credit Quality
10 Credit Quality $(266) $(9) $439 $16 $(56) 4Q21 1Q22 2Q22 3Q22 4Q22 $9.1 $8.9 $0.4 $0.4 $0.4 4Q21 1Q22 2Q22 3Q22 4Q22 $8.9 $8.8 $0.3 $0.3 $0.3 4Q21 1Q22 2Q22 3Q22 4Q22 $28.4 $27.6 $25.4 $25.4 $25.5 4Q21 1Q22 2Q22 3Q22 4Q22 ALLL/Loans % Nonaccrual Loans ($ in millions) Net Charge-Offs (Recoveries)
Slide 11: Net Interest Income
11 Net Interest Income $24.6 $23.8 $24.2 $23.0 $20.7 4Q21 1Q22 2Q22 3Q22 4Q22 Net Interest Income ($ in millions) Net interest income decreased $1.2 million in Q3 2022 • Loan interest income increased $3.0 million. • Deposit interest expense increased $4.8 million. • Borrowed funds interest expense
Slide 12: Noninterest Income & Expense
12 Noninterest Expense ($ in thousands) Noninterest Income & Expense $11,871 $10,662 $11,266 $11,458 $11,665 4Q21 1Q22 2Q22 3Q22 4Q22 Efficiency Ratio% (1) 43.32% 40.14% 41.96% 43.16% 50.42% • Loan swap fees totaled $835 thousand in Q3 2022, compared to none in Q4 2022. $2,348 $2,389 $2,278 $3,276 $
Slide 13: Regulatory Capital Ratios
13 Regulatory Capital Ratios 10.9% 10.7% 12.5% 12.3% 12.1%12.1% 11.9% 13.6% 13.4% 13.1% 4Q21 1Q22 2Q22 3Q22 4Q22 Tier 1 Capital Ratio Tier 1 Leverage RatioCommon Equity Tier 1 Ratio = Company = West Bank 9.9% 9.8% 9.8% 9.7% 9.6% 11.1% 11.0% 12.8% 12.6% 12.3% 4Q21 1Q22 2Q22 3Q22 4Q22 Total Risk Based
Slide 14: Non-GAAP Financial Measures
14Appendix Appendix Non-GAAP Financial Measures (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 t
Slide 15: West Bancorporation, Inc. Board of Directors
15 Third Quarter 2022 Earnings Highlights October 27, 2022 West Bancorporation, Inc. Board of Directors Front: L to R: Lisa Elming, Steven Schuler, Rosemary Parson, Therese Vaughan, Douglas Gulling and George Milligan. Back L to R: Steven Gaer, Sean McMurray, James Noyce (Chair), David Nelson, Micha