WTBA - Earnings call transcript Q4 2017 | West Bancorporation, Inc.

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Operator

Good morning and welcome to the West Bancorporation Fourth Quarter 2017 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions [Operator Instructions]. Please note this event is being recorded. to Officer. conference like Gulling, to now Financial Chief would turn over the Doug I ahead. go Please

Douglas R. Gulling

Thank you, morning morning. Phil. Good us for this joining everyone. Thank you

made the our Chief Accounting Nelson, Dave Milligan, of forward-looking are our to us Any On as and circumstances President; Officer. is company unanticipated XXXX. Officer; call call me speaks occurrence start Harlee Chairman, Brad Olafson, obligation Bank our CEO; revise Risk reflect Winterbottom, Dave based the Roberts, Marie and our on with With line to Chief our events. today Safe us statements the of after statements available statement. this conference call Dave this Securities will statements or I within by meaning off. Act made currently the no during Comments events the begin date, of update such with undertakes Nelson of our or during Harbor of information this today's only only Reform to I'll Litigation the contain Private to that, fair forward-looking ask reflect provisions disclosure may to or us current

Dave Nelson

had very you for joining a string XX non-cash the Thank end Doug our everyone. fourth an adjustments to strong Doug tax deferred consecutive you consecutive quarter, of more and quarter. had We Thank on but asset us. good record We that the add morning will adjustment quarters. brought

non-interest X% X%. increase the non-cash XXXX and year approximately to XX%. one-time our record had than write We loan during we However, three less only this a growth of overall growth growth we in year despite of caused And had down. still expenses markets deposit and had of growth all

XXX% as with recovery. growth strong employee We and quality key credit very banks. we one retention three had We efficiency again net years improvements. So America's the during and top achieved year performing of recognized were both of

Bank during improvement continued all a focus enhancing greater that to West per business continued activities year improvement XXXX dividend activity that the we record on with Brad of clarity and with declared payment call quarterly will skill community of turn upon So, and Directors expectations date special. With performance begin in bank President. building, this make XXXth our team. we And February culture and the $X.XX XXst. leadership, performance by share to Feb Board to sales a relationship as achieve providing our an internal our I'd our Xth for based over Winterbottom, our date like And

Brad Lee Winterbottom

a lot said. am things I we a to great growth in and a deposit Dave Dave. going We that quarter of terms repeat and loan loan deposit had growth. in Thanks had good of year fourth and

quarter our into we that that to now some loans added beginning amortize. We some are During construction out had assets new the of moved relationships. permanent

be loan All that markets quarter activity for not So three only growth would markets year-over-year. three of but some remained the fourth portfolio. the in that's had us, in strong our all very

And our lot was have deposit We've very Olafson a With few that working to activities to and good continued we things. bank. are sales quality XXXX. talk the over anticipate deposits, into customers that asset will who about we very turn that Our pipeline good good. I little it a and core activity we're growth a Harlee the other on will remained things gathering in and brisk added sales of

Harlee N. Olafson

some $XXX,XXX right We had four of standard totaled a total attention our buyers watch XX quality From than list loans the less for cash was you we that Brad X.X% year that Watchlist flow with the list that over loans. credit Thank is perspective the and days as having on And that for of the problems that at in increase credit bank small year sub end that due. total quarter. of a thanks ended is now. the today. currently interest were past Even previous of has your the that a sale with numerous one had

resolved that We lost. June XXth that situation before expect would with credit be no

of One hotel we do and watch is that things properties. office the especially occupancies, issues in continue vacancy to multi-family to properties

lot continue still flow operations built it seem and based of type looks portfolio does bear be to been and We continued cash strong area a at there. those entities to although good space stress there the to in we're sure that test on our in from has of a make that product

still upon is with strong based based borrowers. Our same on good standards criteria, the underwriting

in As Central adequate of to it that year. and City markets Iowa pretty Coralville, Rochester relates will to XXXX had pipelines growth and turn nice this active outside With over into Iowa, going Doug. our have I in it both markets

Douglas R. Gulling

a Okay, to more add thanks Harlee, few details just I will the quarter.

costs advance. about credit sold again that get of ahead term only and of was not credit recoveries things the we've few for security had weren't to but go provision $XX,XXX. and with to rid necessarily advantage quarter and remaining early wasn't overly instance take them concerned was quarter did saw so years going to that it we over and greater it be did net And the a remains a at weaknesses month of provision prepaid XX% just take so pay we It in only Bank and we that some the good another the reinvested. the year. loss all we We a Federal entire those that bonds than of three about interest We higher take losses much last the actually were for did First in penalty. tax about the this the that how fourth talked did loss, and a Harlee and before some It what of dropped a advance. we'd when our deduct thought for we in couple of prepaid take very rate XX% trending and deduction Loan take quality fourth we the with the but not and got Home

rates I You few also rate the XX think that would know had in of XXXX I approximately interest somewhere is And Then margin since that is this of you are of that our and XX than XX%. the year neighborhood XX-K would maybe with we filed going like net new will know been. we our be basis that tax have to some about. the be it our believe to not yet, points end a to in say the believe tax lower effective averages there we

our was XXX,XXX,XXX. number the for quarter average fourth so equity And

asset for the entire and for average and XXX,XXX,XXX number X,XXX,XXX,XXX X,XXX,XXX,XXX. year was average were assets Our then was the average year the equity

and stop questions. So entertain with any that will we

Operator

Instructions]. [Operator

first comes Partners. with Liesch O'Neill Andrew The and go Please question Sandler from ahead.

Aaron Deer

good Hi, everyone. Andrew. morning This actually is Deer on Aaron for

Douglas R. Gulling

hi Oh, Aaron.

Aaron Deer

if doing I the if could but accounting the your average quarter loans wouldn't provide maybe you well today. have all following you year? them handy, and for numbers guess you're Hope mind you also the

Douglas R. Gulling

You quarter were And loans for bet. for Average the X,XXX,XXX,XXX. the year X,XXX,XXX,XXX.

Aaron Deer

talk some in seemed to you color trends the somewhat some deposits in you deposits in Okay, out the Thank the on in higher inflows some to margin had that's a weighed if and bit. with get quarter in have about hoping had related that to the trends some great. there fourth I accounts, growth margin, just then bit how respect inflows it margin loans cost interesting on of terrific growth both there were that Can nice to or was really of just but liquidity that was the kind the and a maybe if and might the play you strong please? having particularly more excess weighed the little

Douglas R. Gulling

three in And deposits was were the the that the Sure, overnight type priced pricing. deposit top or of you lot bet. customers. two a Yeah, are of the at growth centered of

would weigh So, for on margin the that sure.

Aaron Deer

an from the then, of you for kind effect from take some are your that we get up obviously expect margin able adjusted today? mentioned compression margin in for point -- are where to expansion thoughts going see we do going you but that that to this is into the you're tax forward but could what that just to that are then the be at on and a account redeployed liquidity funds be way those to going Okay,

Douglas R. Gulling

the in overnight million of deployed were the most funds because XX year during the At of we or those end quarter. funds. No, XX million had only

they So quarter. deployed during much the fourth were pretty

is expansion. So, wouldn’t further question I -- so specific to no, answer your expect I not the would margin

Aaron Deer

notwithstanding Okay, I in for it sounds question on guess one issue been a Harlee, like credit trends credit provisions? there; any just with expectation just economic pretty the general this small without and today, spectacular. environment have look then get a is through year taking another you we at out kind that in operating are your the When could we it credit of

Harlee N. Olafson

good question. it's know You a

growth. see our of that quarter each at total we I look our to looking think quarterly upon that based as at we than that independently look more factors the small allowance And we position at upon say is allowance And at that that will try as factors to looked dictate have at. where and we allowance, we we a adequacy that percentage. depend and the do

we And think earlier prudent underrate looking cash what at flows we talked we a basis sort stress to of I to quarterly continue portfolio a As loan things. do our test those Bear. values, about in on is

The recoveries. haven't in been to and losses portfolio provision. growth more we might might perspective loss a the that the lead from dictate have had having be we to add or So

Aaron Deer

okay, taking for good, thank you Sure, very questions. my

Douglas R. Gulling

Aaron. Thanks

Operator

go Andrew This have Liesch we from a Instructions]. concludes follow-up okay our another Please O'Neill [Operator ahead. from Sandler - Partners. one

Aaron Deer

drove types for there just the what color long loan additional more a to I then bit as nobody Hey that that might the hoping and you have as any get and in of color the were growth kind on guys pipeline particular little in construction? maybe is the quarter else on that was

Douglas R. Gulling

to permanent additional large a out that would couple advances a moved refinanced that that added good and financing. would had We of the very customer and we had buildings ones of have us very couple some of have to then some and is buildings, good had approach some large there growth. in construction office construction then during a very quarter we There loans addition

dollars would So those XX fourth of increase some in some quarter. that the million the be transactions caused

Aaron Deer

Thanks stuff. taking I appreciate time. the guys, good Okay, you again

Douglas R. Gulling

Thank you.

Operator

over back turn conference session. I any to Instructions]. [Operator closing for concludes Mr. our Gulling This remarks. to Doug like would the question-and-answer

Douglas R. Gulling

thank this in appreciate again us We Well, morning. your West interest you joining for Bancorporation.

you. thank So

Operator

for Thank has conference The attending concluded. today's you presentation. now

You now disconnect. may

West Bancorporation (WTBA) 26 Jan 182017 Q4 Earnings call transcript