West Bancorporation · NASDAQ:WTBA
West Bancorporation — Q4 2024 Earnings Presentation
18 slides from West Bancorporation's earnings presentation, Jan 23, 2025
Slide 1: Q4 2024 Earnings Highlights
1 NASDAQ: WTBA Q4 2024 | 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 2024 Financial Highlights
3 4Q 2024 Financial Highlights (1) Presented on a fully taxable equivalent basis; see Appendix for “Non-GAAP Financial Measures.” $26.26 NASDAQ: WTBA December 31, 2024 Closing Price: $21.65 4Q 2024 Price Range: $18.02 to $24.85 Cash Dividend Per Share Declared On January 22, 2025: $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: 41 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: Historical Strength - 10 Year Performance Period (2015-2024)
9 Historical Strength - 10 Year Performance Period (2015-2024) Organic Growth • Organic loan growth of $1.82 billion, or 154%. Cumulative annual growth rate (CAGR) of 9.76%. • Organic core deposit growth of $1.83 billion, or 146%. CAGR of 9.42%. Asset Quality • Nonperforming assets to total assets r
Slide 10: 4Q 2024 Income Statement Highlights
10 4Q 2024 Income Statement Highlights (in thousands) For the Quarter Ended Q4 '23 Q3 '24 Q4 '24 Linked Quarter Comments Net interest income 16,361 17,960 19,422 Increases driven primarily by reduction in deposit interest rates and changes in funding mix resulting from growth in deposits and reducti
Slide 11: Net Interest Income
11 Net Interest Income (1) Presented on a fully taxable equivalent basis; see Appendix for “Non-GAAP Financial Measures.” $16.4 $16.8 $17.2 $18.0 $19.4 4Q23 1Q24 2Q24 3Q24 4Q24 Net Interest Income ($ in millions) 1.87% 1.88% 1.86% 1.91% 1.98% Net interest margin %(1) Net interest income increased $1
Slide 12: Loans
12 $2,858 $2,950 $2,994 $2,991 $3,008 $3,021 $3,005 4Q23 1Q24 2Q24 3Q24 4Q24 3Q24 4Q24 Loans • Loans decreased $16.4 million in Q4 2024, primarily due to loan payoffs as a result of customer asset sales and secondary market refinancing. • Quarterly average loans increased $16.3 million compared to Q
Slide 13: Loan Mix
13 Loan Mix C & I, 17% CRE - NOO, 36% CRE - OO, 13% Multi Family, 13% 1-4 Family, 3% C & D, 17% Consumer and other, 1% Loan Mix as of December 31, 2024 Total Construction and Development and Commercial Real Estate Loans at December 31, 2024 Sector Balance ($ in thousands) Multifamily $ 543,472 Medic
Slide 14: Deposits
14 Deposits • Total deposits increased $79.0 million in Q4 2024. • Brokered deposits decreased $159.5 million in Q4 2024. • Deposit costs decreased 27 bps in Q4 2024 compared to Q3 2024, due to reductions in deposit pricing resulting from decreases in the federal funds target rate and changes in dep
Slide 15: Funding and Liquidity
15 Funding and Liquidity Cost of liability funding ($ in thousands) Cash and cash equivalents $ 243,478 Unpledged securities 88,740 FHLB borrowing availability 610,441 Unsecured lines of credit availability 75,000 Federal Reserve discount window availability 116,840 Total as of 12/31/2024 $ 1,134,49
Slide 16: Credit Quality
16 $108 $3 4Q23 1Q24 2Q24 3Q24 4Q24 Credit Quality $0.3 $0.3 $0.5 $0.2 $0.1 4Q23 1Q24 2Q24 3Q24 4Q24 $0.3 $0.3 $0.5 $0.2 $0.1 4Q23 1Q24 2Q24 3Q24 4Q24 $28.3 $28.3 $28.4 $29.4 $30.4 4Q23 1Q24 2Q24 3Q24 4Q24 Net Charge-Offs (Recoveries) ($ in thousands) Substandard Loans ($ in millions) Nonaccrual Loa
Slide 17: Regulatory Capital Ratios
17 8.7% 8.7% 8.7% 8.8% 9.0% 11.9% 11.8% 11.8% 11.9% 12.0% 4Q23 1Q24 2Q24 3Q24 4Q24 8.5% 8.4% 8.1% 8.2% 7.9% 10.9% 10.7% 10.3% 10.3% 10.0% 4Q23 1Q24 2Q24 3Q24 4Q24 9.3% 9.2% 9.3% 9.4% 9.5% 11.9% 11.8% 11.8% 11.9% 12.0% 4Q23 1Q24 2Q24 3Q24 4Q24 11.9% 11.8% 11.9% 12.0% 12.1% 12.8% 12.6% 12.7% 12.7% 12.
Slide 18: Appendix: Non-GAAP Financial Measures
18Appendix Appendix Non-GAAP Financial Measures (in thousands) As of and for the Quarter Ended December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 Reconciliation of net interest income and net interest margin on a FTE basis to GAAP: Net interest income (GAAP) $ 19,422