West Bancorporation · NASDAQ:WTBA
West Bancorporation — Shareholder Meeting (April 2010)
35 slides from West Bancorporation's shareholder meeting presentation, Apr 30, 2010
Slide 1: 2010 Shareholders' Meeting
2010 Shareholders’ Meeting April 29, 2010
Slide 2: *Includes BOLI proceeds, net of foundation contribution of $640,000
* *Includes BOLI proceeds, net of foundation contribution of $640,000
Slide 3: Financial Review
Financial Review
Slide 4: 2009 Financial Results Impacted by Three Items
2009 Financial Results Impacted by Three Items • Goodwill impairment loss • Unprecedented level of loan losses • High level of nonperforming assets
Slide 5: Goodwill Impairment
Goodwill Impairment • $13.4 Million • Had minimal impact on regulatory or tangible capital
Slide 6: Unprecedented Loan Losses
2005 $ 687 2006 $ 846 2007 $ 1,909 2008 $ 10,094 2009 $ 20,815 1 st Quarter 2010 $ 853 Unprecedented Loan Losses ($ in 000’s)
Slide 7: Level of Nonperforming Assets
90 days Past Due Nonaccrual Loans OREO TDR’s Investments Total 2005 $ 767 $ 4,145 $ 497 - - $ 5,409 2006 $ 155 $ 495 $ 2,002 - - $ 2,652 2007 $ 408 $ 5,469 $ 155 - - $ 6,032 2008 $ 92 $ 21,367 $ 4,352 $ 7,376 $ 2,575 $ 35,762 2009 $ 1,150 $ 12,350 $ 25,350 $ 12,817 $ 1,282 $ 52,949 1Q10 $ 173 $ 11,4
Slide 8: 2009 Other Events
2009 Other Events • Sale of WB Capital Management Inc. • SmartyPig
Slide 9: 2010 First Quarter
2010 First Quarter • Some relief from loan losses • SmartyPig service fee • Nonperforming assets still too high
Slide 10: Peer Perspective - Asset Quality
“Texas” Ratio Nonaccrual & Past due (90 days) Loans as % of Total Loans Net Charge-offs as % of Av Loans Bankers Trust 27.46% 1.99% 0.92% First American 34.34% 3.07% 1.53% Hills Bank 7.79% 0.80% 0.69% MidwestOne 33.69% 3.68% 0.85% National Peer Group 34.15% 3.77% 1.51% West Bank 25.54% 1.33% 1.89% 1
Slide 11: Peer Perspective - Capital Ratios
Total Risk Based Capital Ratio Tier I Leverage Ratio Net Income (Loss) $ in 000’s Bankers Trust 12.64% 8.06% $ 12,107 First American 10.90% 7.60% $ 1,922 Hills Bank 12.87% 9.14% $ 16,137 MidwestOne 12.94% 9.23% $ 5,710 National Peer Group 12.56% 8.36% N/A West Bank 13.90% 8.86% $ (3,753) 12/31/09 FD
Slide 12: Going Forward
Going Forward • Strong Core Earnings • SmartyPig Service Fee • Strong Capital Base
Slide 13: West Bank's Capital Ratios
3.31.10 pro- forma* 3.31.10 12.31.09 12.31.08 Requirements to be well-capitalized Risk-based capital as % of risk-weighted assets 14.4% 14.4% 13.9% 13.1% 10.0% Tier I Capital as % of risk-weighted assets 12.3% 12.3% 11.8% 11.0% 8.0% Tier I Capital as % of total assets 10.1% 8.8% 8.9% 9.4% 6.0% *With
Slide 14: Consolidated Capital Measures
3.31.10 pro - -forma* 3.31.10 12.31.09 12.31.08 Tangible common equity as % of total tangible assets 7.0% 6.1% 6.3% 6.7% Tangible common equity ($000’s) $ 102,596 $ 102,596 $ 98,763 $ 102,662 Total tangible assets ($000’s) $1,459,926 $1,691,090 $1,574,782 $1,540,423 *Without SmartyPig Consolidated C
Slide 15: West Bank Year in Review
West Bank Year in Review
Slide 16: How We Monitor Asset Quality
How We Monitor Asset Quality Commercial Banking Team • 15 bankers manage the bulk of the $1 Billion loan portfolio. – These 15 bankers have 305 years of combined experience – Eight bankers have 20 years experience – Three bankers have more than 30 years experience • These bankers provide daily conta
Slide 17: Loan approval process
Loan approval process Most bankers have modest loan authority requiring most approvals & renewals to be approved at a committee level. Thereafter: 1. Independent Review of the facts is conducted by the Credit Department 2. A Risk Rating is assigned by Banker 3. Loan Committee and Credit Department c
Slide 18: During the life of the loan
During the life of the loan The banker monitors the credit, adjusting risk ratings as real time information is received Other Independent Reviews • Risk Auditor - looks for compliance and documentation issues • Loan Auditor - confirms documentation and insures loan is made within approvals granted •
Slide 19: Nonperforming Assets
90 days Past Due Nonaccrual Loans OREO TDR’s 2005 $ 767 $ 4,145 $ 497 - 2006 $ 155 $ 495 $ 2,002 - 2007 $ 408 $ 5,469 $ 155 - 2008 $ 92 $ 21,367 $ 4,352 $ 7,376 2009 $ 1,150 $ 12,350 $ 25,350 $ 12,817 1Q10 $ 173 $ 11,450 $ 26,974 $ 16,554 Nonperforming Assets When a loan becomes stressed it is repor
Slide 20: Nonperforming Assets
90 days Past Due Nonaccrual Loans OREO TDR’s 2005 $ 767 $ 4,145 $ 497 - 2006 $ 155 $ 495 $ 2,002 - 2007 $ 408 $ 5,469 $ 155 - 2008 $ 92 $ 21,367 $ 4,352 $ 7,376 2009 $ 1,150 $ 12,350 $ 25,350 $ 12,817 1Q10 $ 173 $ 11,450 $ 26,974 $ 16,554 As past due loans move to non-accrual: • Accrued interest is
Slide 21: Nonperforming Assets
90 days Past Due Nonaccrual Loans OREO TDR’s 2005 $ 767 $ 4,145 $ 497 - 2006 $ 155 $ 495 $ 2,002 - 2007 $ 408 $ 5,469 $ 155 - 2008 $ 92 $ 21,367 $ 4,352 $ 7,376 2009 $ 1,150 $ 12,350 $ 25,350 $ 12,817 1Q10 $ 173 $ 11,450 $ 26,974 $ 16,554 When the bank takes possession of the asset, it is moved to O
Slide 22: Nonperforming Assets
90 days Past Due Nonaccrual Loans OREO TDR’s 2005 $ 767 $ 4,145 $ 497 - 2006 $ 155 $ 495 $ 2,002 - 2007 $ 408 $ 5,469 $ 155 - 2008 $ 92 $ 21,367 $ 4,352 $ 7,376 2009 $ 1,150 $ 12,350 $ 25,350 $ 12,817 1Q10 $ 173 $ 11,450 $ 26,974 $ 16,554 A loan is classified TDR • When it is re-negotiated, • The bo
Slide 23: Trends in nonperforming assets
Trends in nonperforming assets
Slide 24: Non-accruals are moving in the right direction
90 days Past Due Nonaccrual Loans OREO TDR’s 2005 $ 767 $ 4,145 $ 497 - 2006 $ 155 $ 495 $ 2,002 - 2007 $ 408 $ 5,469 $ 155 - 2008 $ 92 $ 21,367 $ 4,352 $ 7,376 2009 $ 1,150 $ 12,350 $ 25,350 $ 12,817 1Q10 $ 173 $ 11,450 $ 26,974 $ 16,554 Non-accruals are moving in the right direction
Slide 25: OREO increasing, aggressively marketing assets
90 days Past Due Nonaccrual Loans OREO TDR’s 2005 $ 767 $ 4,145 $ 497 - 2006 $ 155 $ 495 $ 2,002 - 2007 $ 408 $ 5,469 $ 155 - 2008 $ 92 $ 21,367 $ 4,352 $ 7,376 2009 $ 1,150 $ 12,350 $ 25,350 $ 12,817 1Q10 $ 173 $ 11,450 $ 26,974 $ 16,554 While OREO is increasing, we control the assets and are aggre
Slide 26: While TDR is increasing
90 days Past Due Nonaccrual Loans OREO TDR’s 2005 $ 767 $ 4,145 $ 497 - 2006 $ 155 $ 495 $ 2,002 - 2007 $ 408 $ 5,469 $ 155 - 2008 $ 92 $ 21,367 $ 4,352 $ 7,376 2009 $ 1,150 $ 12,350 $ 25,350 $ 12,817 1Q10 $ 173 $ 11,450 $ 26,974 $ 16,554 While TDR is increasing: • We are earning interest • Payments
Slide 27: Nonperforming Assets: asset sales since April 1, 2010
90 days Past Due Nonaccrual Loans OREO TDR’s 2005 $ 767 $ 4,145 $ 497 - 2006 $ 155 $ 495 $ 2,002 - 2007 $ 408 $ 5,469 $ 155 - 2008 $ 92 $ 21,367 $ 4,352 $ 7,376 2009 $ 1,150 $ 12,350 $ 25,350 $ 12,817 1Q10 $ 173 $ 11,450 $ 26,974 $ 16,554 Since April 1, 2010 14 separate assets, totaling $4.9M have b
Slide 28: OREO by Category
March 31, 2010 Dec 31, 2009 Construction, land development and other land $13,916 $ 8,596 1-4 family residential properties $ 3,784 $ 3,918 Commercial Properties $ 9,274 $ 12,836 Total OREO $ 26,974 $ 25,350 Land Development • Minimal Expenses • Hard to market 1- 4 Family • Costly to hold • Lively s
Slide 29: Additions to Asset Quality Assurance Team
Additions to Asset Quality Assurance Team • Legal – Staffed with three lawyers and two associates • Loan Review New hires added support and control over asset quality issues and compliance improvements – Risk Auditor – Loan Auditor – Loan Review – Three Loan Support Staff • Compliance – Added two fu
Slide 30: Net Charge-Offs by Quarter
Net Charge-Offs by Quarter
Slide 31: Past Due Loan Summary
West Bank 12.31.07 12.31.08 03.31.09 06.30.09 09.30.09 12.31.09 03.31.10 Past Due 30+ days $4,762 $31,022 $41,973 $57,078 $30,082 $13,993 $29,697 Total Loans $985,400 $1,101,700 $1,123,400 $1,122,500 $1,063,500 $1,018,800 $991,500 Past due Ratio .48% 2.82% 3.74% 5.08% 2.83% 1.37% 3.00% Past Due Loan
Slide 32: Line of Business Report
Line of Business Report Commercial Banking • Soft Economy • Loans declined 7.3% in 2009 • Loans declined another 3% in 1Q10 • Treasury Management Products – Continued growth in our remote deposit capture product – Expanded e-services suite for large-to mid-clients seeking fraud protection services –
Slide 33: Line of Business Report
3.31.10 3.31.09 2009 2008 2007 $187M $298M $1,114M $544M $161M Line of Business Report Residential Mortgage Headed by James Glaser, SVP • Stable work force • Expanding sales effort in 2010 Gain and fees on sales of residential Mortgages Trust Services Headed by James Benda, STO • Stable work force W
Slide 34: Bank Awards & Community Outreach
Bank Awards & Community Outreach Recipient • 2009 Better Business Bureau Integrity Award • 2009 United Way Leader in Giving Award Shred it Day • 3 rd Annual Event held May 16, 2009 • 4 th Annual Event scheduled for May 22, 2010 Employee Community Service • 174 Employees contributed nearly 8,700 comm
Slide 35: 2010 Shareholders' Meeting
2010 Shareholders’ Meeting April 29, 2010
West Bancorporation — Shareholder Meeting (April 2010) on 6ix