WTBA - Earnings call transcript Q2 2018 | West Bancorporation, Inc.

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Operator

Good day and welcome to the West Bancorporation Quarterly Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Mr. Doug Gulling, Chief Financial Officer. Please go ahead.

Doug Gulling

good and Alice you, morning everyone. Thank for you joining us morning. this Thank

statement Any call Act disclosure of Harbor contain Private statement. On Executive only morning by call the company occurrence are turn Officer. of Dave Officer based today’s or call made Safe me Dave current revise during us is this I reflect statements of Harlee this or it let Litigation events. to forward-looking cover the Securities fair over unanticipated The begin, to to to events only this our may And call Comments made available to with currently circumstances or conference reflect the Olafson, within Nelson, us provisions on statements to Risk Chief XXXX. this Nelson. of will our me update and Reform undertakes date. forward-looking as our the information during no obligation and Chief such speaks of after the meaning

Dave Nelson

Doug XXX-year thank the was had It for very everyone record a and during you joining quarter. We an quarter our but second us. it strong best all-time quarter, was history. not you, Thank

dividend of record Board of Directors August per declared a of share with Our a August $X.XX quarterly date XX. payable X

our closing that future traffic will retail it the Just Doug November or It’s City, volume, detail our more City give we and to bank events been I refer happened office. that location best the operations a of we X the Coralville locations of low this, as the Iowa pending will we than a location. on which one specific in Iowa with thought couple introduce particular historically of during to the consolidate and Muscatine low of in announced Lower that but closure quarter our

billion country, their to Bank all birthday as XXXX our Magazine came top help billion had us week in with combined actually size the And XXXth ever, $XX $X all out very time top also class that the billion and of their performing they America. by banks, over. lists including Director earlier all where classes performing present throughout this asset our first quite asset the celebrate ranked then bank the our a scorecard We to anniversary, had number $X of the for us bank XX way, they in large and ranked banks

our financial the So in America performing bank their publicly they XX all as institutions. number had traded bank, combined top Bank, list, in West of

proud our the and among would So will credit that. am to very things, talk Harlee to I strong and with like But turn pipelines. Harlee? trends who pleased I call about over other Olafson,

Harlee Olafson

talking Thanks, has our second where say business strong, I we activity Dave. financing. I would through significant from about but sales will loan start loans regard payoffs And construction quarter, limited to long-term are the outside has growth. growth converting been and to off to at been due

end with will place and Going have forward, scheduled dollars projects this Current for quarter totals are going during less quarter. draw closings to quarter anticipated our we better in next our expectations growth are significant the that by boost payoffs. also significant

the the good. markets, is far our As in as economy economy

take need lot to online and to does of projects, come we that’s slowing and be product, absorb appear new there real some that a does there a estate Although multifamily time. down is commercial mainly that of will

is On to with product. does still it slowdown new additional see be our opportunities. very but and there, strong, some specific appears stable I property, fine, some Des Iowa So, office do warehouse is Moines is of of very need types Rochester areas. still absorb in Eastern strong, to particularly multifamily the

especially on slowdown, sales just is we there now. there perspective, quality update lots of of credit trend pretty $XXX,XXX a credit a think Housing, both homes, a mainly and over of and where the is little in at. From range. are product, the hotels I bit

Our total watch list is X.X% of total loans.

have no other We real estate.

amount next category quarter X.X% were loans. loans is end, substandard X.X% loans $XXX,XXX, our loans had that’s due. XX that we days worse non-accrual our over due, total of and total of is Our three At of totaling past past

We have are of of shown credits a that couple had bit a we deterioration on. have that working

million of is non-accrual plus the and of value that example over appraised equipment inventory. secured $X has couple and a liquidation real of loan receivables million on largest state for property value by Our million $X.X of

things through. our just So we money are you work not in of but to getting back, not it’s have situation a

whole Our commercial as adequate no and debt had dues estate past portfolio coverages. had a real at end quarter service

through things X% costs. was is about coming than and the on higher been working depository that a time, between X.X% renewals we on of and increasing bookings appears And is at it product are our that we our going this short-term coming have new the product year new it is at through ago. renewal as One and

are that working go some compression, margin as but forward. we we see So, we better do through getting

portfolio manner underwrite results. well to and that, turn I’d to With and portfolio Doug. overall conservative strong continue manage in with back it we a performing the So, over is

Doug Gulling

in Muscatine a here Couple by it would what was that We down on Okay, second thanks, comments believe expenses it. $XXX,XXX to sell to and Harlee. we go net be Lower regarding wrote some of value of the office. we get quarter stated to realizable our it when

another wrote it down we property marketed not that the chance it operating annual would are approximately and better. little as value of out financial building. might that sell a bit we The $XXX,XXX. a not yet is costs institution, by it office have assuming that bank If come we sell to to We we

operating until X, operating lower November expect So, year, next to to $XXX,XXX. going be would about by it’s we but be costs

to over our one down does that the and would salary levels go others is include little we be through there employee anyone laying bit not but off, we costs, retained, Now attrition, will a are retirement expect time.

the and rate that rate essentially at will up X.X%. $XX and we a X.XX%, have at will the little million level. a for will at cost locate provision quarter. – And and convert be of of do deposits the credit we for and quality we more that on result think level the quarter will about mentioned end net of margin swap the at at there. become we fact good cost if into effective, quality that the Fund of becomes Harlee year When increases cost uptick essentially swap loan the the Currently, bit not Harlee by did loss drop million recoveries end securities. our security year, trust second X.XX%. that, effective questions. the swap that continued one that of we the is heard the become of the the You so the on about to Then preferred because Fed $XX X.XX% there, time, the in second the effective be open preferred targeted variable in of down will trust have we certainly that fix of that convert fixed will maybe very had talk as be lastly, rate a a We With compression Fed end September, the will it it credit will we then

Operator

from Instructions] Liesch Andrew Thank Please go you. ahead. [Operator will of our Sandler today And come first O’Neill. question

Andrew Liesch

you? are How guys. Hey,

Dave Nelson

Good. Andrew. morning, Good

Andrew Liesch

a they looks drove more was benefits salaries what there expecting what of question on, like on curious that went the any the Just increased line, quarter, that? in in than and expenses was I operating kind hiring it just

Doug Gulling

drove that. that Yes, two things

X the for X except officers, reviews are NEOs our of that April effective All annual have an basis. salary on

X-year of and effective in expense were also increases right with then amortized salary end associated the we new we period. officers’ over X compensation have April the the new awards, of RSUs a X. RSUs – all so generally are kick well, course, and they typically So, of And April committee towards March our

full for to retirement people approaching their shorter period. we who have However, over a age, those amortize are

salary about And what for some little period these a people accounted but new a had so and get and increase $XX,XXX RSUs higher than is $XX,XXX roughly RSU a increases our officers’ little shortens all bit increases who expense it as said the their month roughly age, having the expense a that, bit, been. of month amortization

Andrew Liesch

just that’s until appreciate and on a later but the year, to start this is quarter, And trends then fourth until then? late margin, third floor that to the the really into be fret a maybe lower find quarter, increase still helpful. Okay, still trend would

Dave Nelson

we Well, rate. not significantly, month portfolio variable the I well a third at of don’t we – that about month, the at variable million end investments some the believe. added of to added some added was of $XX end then about and investment the We the rate

of to be few I weeks, I it rate loans there got have don’t in X We know variable be the points, couple we book maybe going here X significant. next don’t would could are basis a think or so

Andrew Liesch

Thank my taking Okay, questions. you that’s for helpful. really

Dave Nelson

Yes, thanks, Andrew.

Operator

And at time, Instructions] showing additional any am questions. [Operator this not I

So over I and like to for conference Mr. our would back session to turn the remarks. Q&A closing conclude Gulling

Doug Gulling

appreciate forward Well, the in our we us and you. We this thank to October. end morning. the your interest joining you at for look company call of Thank

Operator

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

disconnect. now may You

West Bancorporation (WTBA) 28 Jul 182018 Q2 Earnings call transcript