West Bancorporation · NASDAQ:WTBA
West Bancorporation — Q1 2023 Earnings Presentation
17 slides from West Bancorporation's earnings presentation, Apr 27, 2023
Slide 1: First Quarter 2023 Earnings Highlights
1 First Quarter 2023 Earnings Highlights April 27, 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: 1Q 2023 Financial Highlights
3 1Q 2023 Financial Highlights (1) Presented on a fully taxable equivalent basis; see Appendix for “Non-GAAP Financial Measures.” $26.26 NASDAQ: WTBA March 31, 2023 Closing Price: $18.27 1Q 2023 Price Range: 17.58 to $25.80 Cash Dividend Declared On April 26, 2023: $0.25 (payable on May 24, 2023) An
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: 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 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 a strong 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
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
9 C & D, 12% 1-4 family, 3% Multi family, 13% CRE - OO, 12% CRE - NOO, 40% C & I, 19% Consumer and other, 1% Loan Mix as of 3/31/2023 Loans $2,450 $2,537 $2,580 $2,650 $2,745 $2,743 $2,756 1Q22 2Q22 3Q22 4Q22 1Q23 4Q22 1Q23 Loans ($ in millions) Period End Loan Yield % Average Balances 3.88% 3.95% 4
Slide 10: Deposits
10 Noninterest bearing, 22% Interest bearing demand, 17% Savings and money market, 43% Time deposits, 10% Brokered deposits, 8% Deposit Mix as of 3/31/2023 Deposits $3,067 $3,003 $2,865 $2,902 2,847 $2,880 $2,798 1Q22 2Q22 3Q22 4Q22 1Q23 4Q22 1Q23 Deposits ($ in million) • Total deposits decreased $
Slide 11: Funding and Liquidity
11 Funding and Liquidity $2,353 $2,304 $2,148 $2,196 $2,195 $715 $698 $717 $705 $651 $198 $252 $361 $370 $521 $3,266 $3,254 $3,226 $3,271 $3,352 1Q22 2Q22 3Q22 4Q22 1Q23 Average borrowings Average noninterest-bearing deposits Average interest-bearing deposits Sources of LiquidityOverall Funding Cost
Slide 12: Credit Quality
12 Credit Quality $(9) $439 $16 $(56) $(10) 1Q22 2Q22 3Q22 4Q22 1Q23 $8.9 $0.4 $0.4 $0.4 $0.4 1Q22 2Q22 3Q22 4Q22 1Q23 $8.8 $0.3 $0.3 $0.3 $0.3 1Q22 2Q22 3Q22 4Q22 1Q23 $27.6 $25.4 $25.4 $25.5 $25.5 1Q22 2Q22 3Q22 4Q22 1Q23 $2.4 ACL/Loans % Nonaccrual Loans ($ in millions) Net Charge-Offs (Recoverie
Slide 13: Net Interest Income
13 Net Interest Income $23.8 $24.2 $23.0 $20.7 $18.7 1Q22 2Q22 3Q22 4Q22 1Q23 Net Interest Income ($ in millions) • Loan interest income increased $2.0 million. • Deposit interest expense increased $2.3 million. • Borrowed funds interest expense increased $1.7 million. • The changes in deposit and f
Slide 14: Noninterest Income & Expense
14 Noninterest Expense ($ in thousands) Noninterest Income & Expense • Q1 2023 included a gain on bank owned life insurance totaling $691 thousand. • Q3 2022 included loan swap fees totaling $835 thousand. $2,389 $2,278 $3,276 $2,265 $2,957 1Q22 2Q22 3Q22 4Q22 1Q23 Noninterest Income ($ in thousands
Slide 15: Regulatory Capital Ratios
15 Regulatory Capital Ratios 10.7% 12.5% 12.3% 12.1% 12.2%11.9% 13.6% 13.4% 13.1% 13.2% 1Q22 2Q22 3Q22 4Q22 1Q23 Tier 1 Capital Ratio Tier 1 Leverage RatioCommon Equity Tier 1 Ratio = Company = West Bank 9.8% 9.8% 9.7% 9.6% 9.5% 11.0% 12.8% 12.6% 12.3% 12.3% 1Q22 2Q22 3Q22 4Q22 1Q23 Total Risk Based
Slide 16: Appendix: Non-GAAP Financial Measures
16Appendix 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 17: West Bancorporation, Inc. Board of Directors
17 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