West Bancorporation · NASDAQ:WTBA
West Bancorporation — Q4 2023 Earnings Presentation
16 slides from West Bancorporation's earnings presentation, Jan 25, 2024
Slide 1: Q4 2023 Earnings Highlights
1 NASDAQ: WTBA Q4 2023 | Earnings Highlights
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 2023 Financial Highlights
3 4Q 2023 Financial Highlights (1) Presented on a fully taxable equivalent basis; see Appendix for “Non-GAAP Financial Measures.” $26.26 NASDAQ: WTBA December 29, 2023* Closing Price: $21.20 4Q 2023 Price Range: $15.25 to $22.39 Cash Dividend Per Share Declared On January 24, 2024: $0.25 (payable on
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 g
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: 40 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 David Nelson joins West Bank as CEO. Entered the Rochester, Minnesota market by hiring experienced bankers who had existing strong relationships with local business owners and creating an advisory community board made up of local busi
Slide 7: Company Highlights – Commitment to Excellence
7 Company Highlights – Commitment to Excellence West Bancorporation is a high performing company 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 businesses in its Iowa a
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. Credit
Slide 9: Loans – Quarterly Highlights
9 $2,650 $2,745 $2,783 $2,813 $2,858 $2,850 $2,928 4Q22 1Q23 2Q23 3Q23 4Q23 3Q23 4Q23 Loans • Loans increased $77.8 million in Q4 2023. • Quarterly average loans increased $44.4 million compared to Q3 2023. • Commercial real estate loans are diversified among various sectors, including hotels, wareh
Slide 10: Deposits – Quarterly Highlights
10 Deposits • Total deposits increased $218.2 million in Q4 2023. • Brokered deposits increased $68.4 million in Q4 2023. • West Bank participates in the IntraFi® ICS and CDARS reciprocal deposit network which enables depositors to receive FDIC insurance coverage on deposits otherwise exceeding the
Slide 11: Funding and Liquidity
11 Funding and Liquidity Cost of liability funding ($ in thousands) Cash and cash equivalents $ 65,357 Unpledged securities 254,740 FHLB borrowing availability 528,039 Unsecured lines of credit availability 35,000 Federal Reserve discount window availability 2,282 Federal Reserve Bank Term Funding P
Slide 12: Credit Quality
12 $3 $108 4Q22 1Q23 2Q23 3Q23 4Q23 Credit Quality $0.4 $0.4 $0.3 $0.3 $0.3 4Q22 1Q23 2Q23 3Q23 4Q23 $0.3 $0.3 $0.3 $0.3 $0.3 4Q22 1Q23 2Q23 3Q23 4Q23 $25.5 $25.5 $27.9 $28.1 $28.3 $2.4 4Q22 1Q23 2Q23 3Q23 4Q23 Net Charge-Offs (Recoveries) ($ in thousands) Substandard Loans ($ in millions) Nonaccrua
Slide 13: Net Interest Income
13 Net Interest Income (1) Presented on a fully taxable equivalent basis; see Appendix for “Non-GAAP Financial Measures.” Net interest income decreased $0.2 million in Q4 2023 compared to Q3 2023 • Loan interest income increased $1.5 million. • Deposit interest expense increased $2.9 million. • Borr
Slide 14: Regulatory Capital Ratios
14 9.0% 8.9% 8.9% 8.8% 8.7% 12.3% 12.3% 12.2% 12.0% 11.9% 4Q22 1Q23 2Q23 3Q23 4Q23 8.8% 8.6% 8.6% 8.6% 8.5% 11.4% 11.1% 11.1% 11.0% 10.9% 4Q22 1Q23 2Q23 3Q23 4Q23 9.6% 9.5% 9.5% 9.4% 9.3% 12.3% 12.3% 12.2% 12.0% 11.9% 4Q22 1Q23 2Q23 3Q23 4Q23 12.1% 12.2% 12.2% 12.0% 11.9% 13.1% 13.2% 13.1% 12.9% 12.
Slide 15: Appendix: Non-GAAP Financial Measures
15Appendix Appendix Non-GAAP Financial Measures (in thousands) As of and for the Quarter Ended December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 Reconciliation of net interest income and net interest margin on a FTE basis to GAAP: Net interest Income (GAAP) $ 16,361
Slide 16: Appendix: West Bancorporation Board of Directors
16 Third Quarter 2022 Earnings Highlights October 27, 2022 Appendix West Bancorporation, Inc. Board of Directors Back L to R: Douglas Gulling, Sean McMurray, Patrick Donovan and Philip Jason Worth Front L to R: Steven Gaer, Lisa Elming, George Milligan, Rosemary Parson, David Nelson, James Noyce (Ch