West Bancorporation · NASDAQ:WTBA
West Bancorporation — Q3 2024 Earnings Presentation
16 slides from West Bancorporation's earnings presentation, Oct 24, 2024
Slide 1: Q3 2024 Earnings Highlights
1 NASDAQ: WTBA Q3 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: 3Q 2024 Financial Highlights
3 3Q 2024 Financial Highlights (1) Presented on a fully taxable equivalent basis; see Appendix for “Non-GAAP Financial Measures.” $26.26 NASDAQ: WTBA September 30, 2024 Closing Price: $19.01 3Q 2024 Price Range: $16.36 to $22.13 Cash Dividend Per Share Declared On October 23, 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: 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: Loans Quarterly Highlights
9 $2,813 $2,858 $2,950 $2,994 $2,991 $2,999 $3,021 3Q23 4Q23 1Q24 2Q24 3Q24 2Q24 3Q24 Loans • Loans increased $22.4 million in Q3 2024, primarily due to the funding of previously committed construction loans. • Quarterly average loans decreased $3.2 million compared to Q2 2024. • Commercial real est
Slide 10: Loan Mix
10 Loan Mix C & I, 17% CRE - NOO, 36% CRE - OO, 13% Multi Family, 13% 1-4 Family, 3% C & D, 17% Consumer and other, 1% Loan Mix as of 9/30/24 Total Construction and Development and Commercial Real Estate Loans Sector Balance ($ in thousands) Multifamily $ 540,751 Medical 151,794 Warehouse & trucking
Slide 11: Deposits Quarterly Highlights
11 Deposits • Total deposits increased $97.6 million in Q3 2024. • Brokered deposits increased $55.6 million in Q3 2024. • West Bank participates in the IntraFi® ICS and CDARS reciprocal deposit network which enables depositors to receive FDIC insurance coverage on deposits otherwise exceeding the m
Slide 12: Funding and Liquidity
12 Funding and Liquidity Cost of liability funding ($ in thousands) Cash and cash equivalents $ 157,803 Unpledged securities 104,043 FHLB borrowing availability 627,984 Unsecured lines of credit availability 75,000 Federal Reserve discount window availability 125,291 Total as of 9/30/2024 $ 1,090,12
Slide 13: Credit Quality
13 $108 $3 3Q23 4Q23 1Q24 2Q24 3Q24 Credit Quality $0.3 $0.3 $0.3 $0.5 $0.2 3Q23 4Q23 1Q24 2Q24 3Q24 $0.3 $0.3 $0.3 $0.5 $0.2 3Q23 4Q23 1Q24 2Q24 3Q24 $28.1 $28.3 $28.3 $28.4 $29.4 3Q23 4Q23 1Q24 2Q24 3Q24 Net Charge-Offs (Recoveries) ($ in thousands) Substandard Loans ($ in millions) Nonaccrual Loa
Slide 14: Net Interest Income
14 Net Interest Income (1) Presented on a fully taxable equivalent basis; see Appendix for “Non-GAAP Financial Measures.” $16.6 $16.4 $16.8 $17.2 $18.0 3Q23 4Q23 1Q24 2Q24 3Q24 Net Interest Income ($ in millions) 1.91% 1.87% 1.88% 1.86% 1.91% Net interest margin %(1) Net interest income increased $0
Slide 15: Regulatory Capital Ratios
15 8.8% 8.7% 8.7% 8.7% 8.8% 12.0% 11.9% 11.8% 11.8% 11.9% 3Q23 4Q23 1Q24 2Q24 3Q24 8.6% 8.5% 8.4% 8.1% 8.2% 11.0% 10.9% 10.7% 10.3% 10.3% 3Q23 4Q23 1Q24 2Q24 3Q24 9.4% 9.3% 9.2% 9.3% 9.4% 12.0% 11.9% 11.8% 11.8% 11.9% 3Q23 4Q23 1Q24 2Q24 3Q24 12.0% 11.9% 11.8% 11.9% 12.0% 12.9% 12.8% 12.6% 12.7% 12.
Slide 16: Appendix: Non-GAAP Financial Measures
16Appendix Appendix Non-GAAP Financial Measures (in thousands) As of and for the Quarter Ended September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 Reconciliation of net interest income and net interest margin on a FTE basis to GAAP: Net interest income (GAAP) $ 17,96