West Bancorporation · NASDAQ:WTBA
West Bancorporation — Q1 2025 Earnings Presentation
17 slides from West Bancorporation's earnings presentation, Apr 24, 2025
Slide 1: Q1 2025 Earnings Highlights
1 NASDAQ: WTBA Q1 2025 | 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: 1Q 2025 Financial Highlights
3 1Q 2025 Financial Highlights (1) Presented on a fully taxable equivalent basis; see Appendix for “Non-GAAP Financial Measures.” $26.26 NASDAQ: WTBA March 31, 2025 Closing Price: $19.94 1Q 2025 Price Range: $19.71 to $23.06 Cash Dividend Per Share Declared On April 23, 2025: $0.25 (payable on May 2
Slide 4: Company Profile and Mission
4 • West Bancorporation, Inc. (the “Company”) is a publicly traded, financial holding company (NASDAQ: WTBA) established in 1984. Its 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: 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, 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: 1Q 2025 Income Statement Highlights
9 1Q 2025 Income Statement Highlights (in thousands) For the Quarter Ended Q1 '24 Q4 '24 Q1 '25 Linked Quarter Comments Net interest income $ 16,750 $ 19,422 $ 20,855 Increases driven primarily by reduction in deposit interest rates and changes in funding mix.Net interest margin(1) 1.88 % 1.98 % 2.2
Slide 10: Net Interest Income
10 Net Interest Income (1) Presented on a fully taxable equivalent basis; see Appendix for “Non-GAAP Financial Measures.” $16.8 $17.2 $18.0 $19.4 $20.9 1Q24 2Q24 3Q24 4Q24 1Q25 Net Interest Income ($ in millions) 1.88% 1.86% 1.91% 1.98% 2.28% Net interest margin %(1) Net interest income increased $1
Slide 11: Loans
11 $2,950 $2,994 $2,991 $3,008 $3,016 $3,005 $3,016 1Q24 2Q24 3Q24 4Q24 1Q25 4Q24 1Q25 Loans • Loans increased $11.6 million in Q1 2025, primarily due to an increase in commercial real estate loans. • Quarterly average loans increased $8.6 million compared to Q4 2024. • Commercial real estate loans
Slide 12: Loan Mix
12 Loan Mix C & I, 18% CRE - NOO, 37% CRE - OO, 13% Multi Family, 13% 1-4 Family, 3% C & D, 15% Consumer and other, 1% Loan Mix as of March 31, 2025 Total Construction and Development and Commercial Real Estate Loans at March 31, 2025 Sector Balance ($ in thousands) Multifamily $ 546,842 Medical 97,
Slide 13: Deposits
13 Deposits • Total deposits decreased $33.1 million in Q1 2025. • Brokered deposits increased $69.1 million in Q1 2025. • Deposit costs decreased 38 bps in Q1 2025 compared to Q4 2024, due to reductions in deposit pricing driven by decreases in the federal funds rate and changes in deposit mix. • W
Slide 14: Funding and Liquidity
14 Funding and Liquidity Cost of liability funding ($ in thousands) Cash and cash equivalents $ 210,610 Unpledged securities 87,317 FHLB borrowing availability 634,634 Unsecured lines of credit availability 75,000 Federal Reserve discount window availability 119,463 Total as of 3/31/2025 $ 1,127,024
Slide 15: Credit Quality
15 $3 1Q24 2Q24 3Q24 4Q24 1Q25 Credit Quality $0.3 $0.5 $0.2 $0.1 $0.2 1Q24 2Q24 3Q24 4Q24 1Q25 $0.3 $0.5 $0.2 $0.1 $0.2 1Q24 2Q24 3Q24 4Q24 1Q25 $28.3 $28.4 $29.4 $30.4 $30.5 1Q24 2Q24 3Q24 4Q24 1Q25 Net Charge-Offs (Recoveries) ($ in thousands) Substandard Loans ($ in millions) Nonaccrual Loans ($
Slide 16: Regulatory Capital Ratios
16 8.7% 8.7% 8.8% 9.0% 9.0% 11.8% 11.8% 11.9% 12.0% 12.0% 1Q24 2Q24 3Q24 4Q24 1Q25 8.4% 8.1% 8.2% 7.9% 8.4% 10.7% 10.3% 10.3% 10.0% 10.5% 1Q24 2Q24 3Q24 4Q24 1Q25 9.2% 9.3% 9.4% 9.5% 9.6% 11.8% 11.8% 11.9% 12.0% 12.0% 1Q24 2Q24 3Q24 4Q24 1Q25 11.8% 11.9% 12.0% 12.1% 12.2%12.6% 12.7% 12.7% 12.9% 12.9
Slide 17: Appendix: Non-GAAP Financial Measures
17Appendix Appendix Non-GAAP Financial Measures (in thousands) As of and for the Quarter Ended March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 Reconciliation of net interest income and net interest margin on a FTE basis to GAAP: Net interest income (GAAP) $ 20,855 $