West Bancorporation · NASDAQ:WTBA
West Bancorporation — Q3 2022 Earnings Presentation
14 slides from West Bancorporation's earnings presentation, Oct 27, 2022
Slide 1: Third Quarter 2022 Earnings Highlights
1 Third Quarter 2022 Earnings Highlights October 27, 2022
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: 3Q 2022 Financial Highlights
3 3Q 2022 Financial Highlights (1) Presented on a fully taxable equivalent basis; see Appendix for “Non-GAAP Financial Measures” $26.26 NASDAQ: WTBA September 30, 2022 Closing Price: $20.81 3Q 2022 Price Range: $20.39 to $26.26 Cash Dividend Declared On October 26, 2022: $0.25 (payable on November 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 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 $2,874 $2,965 $3,067 $3,003 $2,865 $2,842 $2,823 3Q21 4Q21 1Q22 2Q22 3Q22 2Q22 3Q22 Deposits ($ in million) • Savings and money market deposits decreased $107.3 million. • Brokered deposits increased $61.6 million. • Customers utilized excess liquidity primarily for business purpo
Slide 10: Credit Quality
10 Credit Quality $(56) $(266) $(9) $439 $16 3Q21 1Q22 2Q22 3Q22 $9.3 $9.1 $8.9 $0.4 $0.4 3Q21 4Q21 1Q22 2Q22 3Q22 $9.1 $8.9 $8.8 $0.3 $0.3 3Q21 4Q21 1Q22 2Q22 3Q22 $28.1 $28.4 $27.6 $25.4 $25.4 3Q21 4Q21 1Q22 2Q22 3Q22 ALLL/Loans % 4Q21 Nonaccrual Loans ($ in millions) Net Charge-Offs (Recoveries)
Slide 11: Net Interest Income
11 Net Interest Income $24.5 $24.6 $23.8 $24.2 $23.0 3Q21 4Q21 1Q22 2Q22 3Q22 Net Interest Income ($ in millions) Net interest income decreased $1.2 million in Q3 2022 • Loan interest income increased $3.3 million. • Deposit interest expense increased $3.2 million. • Borrowed funds interest expense
Slide 12: Noninterest Income & Expense
12 Noninterest Expense ($ in thousands) Noninterest Income & Expense $10,712 $11,871 $10,662 $11,266 $11,458 3Q21 4Q21 1Q22 2Q22 3Q22 Noninterest expense increased $192 thousand in Q3 2022 • Salaries and employee benefits increased $168 thousand. • Occupancy increased $73 thousand. Efficiency Ratio%
Slide 13: Consolidated Regulatory Capital Ratios
13 Consolidated Regulatory Capital Ratios 11.1% 10.9% 10.7% 12.5% 12.3% 3Q21 4Q21 1Q22 2Q22 3Q22 10.1% 9.9% 9.8% 9.8% 9.7% 3Q21 4Q21 1Q22 2Q22 3Q22 9.4% 9.2% 9.2% 9.2% 9.1% 3Q21 4Q21 1Q22 2Q22 3Q22 8.5% 8.5% 8.4% 8.6% 8.9% 3Q21 4Q21 1Q22 2Q22 3Q22 Total Risk Based Capital Ratio Tier 1 Capital Ratio
Slide 14: Appendix: Non-GAAP Financial Measures
14Appendix Appendix Non-GAAP Financial Measures (in thousands) September 30, June 30, March 31, December 31, September 30 2022 2022 2022 2021 2021 Reconciliation of net interest income and net interest margin on a FTE basis to GAAP: Net interest income (GAAP) $23,004 $24,239 $23,828 $24,602 $24,486