WTBA - Earnings call 3 2023 | West Bancorporation, Inc.

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Operator

Hello. My name is Chris, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the West Bancorporation Inc. Q3 Earnings Call. [Operator Instructions] Thank you. Officer, begin. Financial Chief Funk, you may Jane

Jane Funk

the All everybody and Peters, and today you. our We CEO; Jane thank Dave President. Chief our with to Winterbottom, welcome just want our Funk, company. I'm Minnesota to our Officer; for Harlee interest Group right. I Nelson, Brad your have me, Thank you in CFO. Risk our Brad Olafson, earnings call, President; Bank

earnings of forward-looking materially. conference safe call, is make disclosures The our statements caution our September as events future we of performance within more turn Nelson, We which Private forward-looking harbor CEO. for the third are other Please and information. And now Dave differ the such actual financial today quarter of the us. Act meaning XX, it today's provisions may predictions During and to about of Reform undertake projections the or affect I'll may over Litigation and statements the future provide accurate XXXX information that to will see release company. no risks or that duty uncertainties, we regarding update may of Securities XXXX the XXXX, we results in information statement

David Nelson

welcome, for in We appreciate our Thank everyone. your Thank you, joining Jane, interest company. and you us today.

quality, Our third credit our from growth our quarter our went as about and we expected, more and you'll others hear margin.

problem any remains loans Our due even with no nor credit quality incredibly essentially strong loans. past

about have loan fine. pipeline. Year-to-date demand terms serve doing communities loan growth the to deposit working is growth, we In be in terms Fed the for and X%, of a reducing of growth, appears we action are good and loan but

to margin others. Our similar situation is on

at up perhaps on have or deposits now and We the peak. been near are we paying

with the market to these X-year loans 'XX to rates During based from and XXXX 'XX. deficit industry will investments, used we reprice liquidity prevailing and assets when a duration. liquidity federal Therefore, make spending, that was flooded mostly XXXX, our and upon during

velocity our XXXX into 'XX. We compression increasing during only to improve with expect continue and margin temporary XXXX and

dividend a over have his November Officer, of with share our a now the Olafson, Mr. call record Chief date declared November We to Harlee of Risk comments. of per shareholders as turn of to X. I XX $X.XX will payment for

Harlee Olafson

Thanks, Dave.

mentioned Dave very As strong West quality earlier, at credit is Bank.

$XXX,XXX, Our like list watch have anymore. totaled seems X don't almost we

improving past loans XX due no service and days. our quarter test debt loan-to-value total have over stress coverage. We seen Quarterly, end trends at portfolio and we in have

office was looked of average our of owner-occupied We the have of total portfolio office and X.XX. our About The the service $XXX debt loan-to-value properties The strong portfolio. was million. new lot XX%, to consists nonowner-occupied have portfolio closely of the office portfolio. not With and there half significant of at our office is The been is real a rates, added estate rising projects seasoned. remainder commercial properties. portfolio coverage

the Our comprehensive service us. to a is have customers that our continuing focus with to provide relationship best

that We do want to not to deal. a financing applicants providing are just us

business. sides total a our Brad our relationships have base, over looking prospecting capturing Winterbottom. to that, we rates add resilient. to will keep that economy to balance customer it The maintain more markets deposit our our keep With turn both sheet. With President, areas increase concern. We and customers' bankers to those the cracks of I of been doing surprisingly job our remains of Our having good in for bank

Brad Winterbottom

has been Harlee. Thanks, repeat. I'll This but stated,

$X.XX approximately first $XX outstandings. X% for X loan the million our our billion to portfolio or the grew months year, quarter, of grew For loan in Then the portfolio X.X%.

we to transactions. a previously financed in customer acquisition construction portfolio the vertical was committed draws in Our and due that growth part on

to XX rate should that unfunded over vertical million the slightly in take $XXX commitments on draws next slowed construction business environment months. Interest have place XX markets. all has activities in We over

of customers and given Financials gathering is living and our a and to in. are solid remain the strong, However, customer of important we deposit we remain environment maintaining general do base. Deposit do weakening are working our Peters. us, create our positive ability we pipeline not We remain and customers we with to working that. it and hard confident our over turn the I to that, relationships maintain to in prospects pursuing. With are our and Brad will see

Bradley Peters

Thanks, to on provide a update Minnesota. Brad. in afternoon, brief everyone. progress I'm going Good our

rapid challenging relationships. in challenges, existing environment those rates. a interest continue spite are and to We due we growing the of enhancing In rise navigate business through to new

calling we growth have and focus our grow has business. on been and our treasury in to management intentional been efforts Our C&I deposits new

growing are key our employees. Mankato retail their market building and business deposits also their focusing next opening be on month. owners We will high-value new by

end turn We now their continue I Owatonna expect fall. Those comments. back to over building a be great new has The Jane. plans to attract for new tool to will of construction relationships. the finalized my the facility this to market will this begin new are call later and

Jane Funk

Thanks, make few open just about up questions. then and for it financials we'll comments Brad. I'll a the

this compared previous Our was the flat net to quarter income quarter.

in of the third we increase in to our in and resulting the securities in quarter rate X.XX% industry, of of base, onetime And recorded income on declined on of $XXX,XXX loan quarter. interest see from The quarter. Along back-to-back in pressure third cost growth. as rest credit continue second the compared costs for fee transaction, of our X.XX% deposits. increase $XXX,XXX quarter portfolios. the to Net quarter repricing our loss provision margin an continue a deposit a interest the a to swap income net also to outpace recorded with $XXX,XXX second swap loan the The included and the declined interest result third a in we

due deposits balances Our fund XX, October, million. the at increased June deposit $XXX to compared were September deposits. lower of seasonality In public our XX have XXXX, to partially

base remarks, are questions. open stable. Those to Our now remains deposit our up end prepared the we'll core of and it

Operator

Andrew with from Liesch is Piper Sandler. question first Our Instructions] [Operator

Andrew Liesch

I the margin slowing lower, until you Do look think that Just guess it's that, won't now? slowed. a do you compression 'XX? margin base pace assets want on to where that recognizing year and touch continue here. like here of might really but will from think trending Certainly, the reprice the

Jane Funk

Well, we that's compression -- for some I the across continue the will the industry, pressure to know cost because everybody. Margin, to will we to see are we think, on of question, million-dollar deposits. be expecting there continue

the pace. Fed even what rates, to if down. continue increase, at So doesn't has costs will change It slowed but

sign. At point So to stops and reverse starts is that's seen. it good a be yet to what

year rest year. expect to we see this So and of next additional pressure in the early see margins

Brad Winterbottom

get the commitments are unfunded margin vast so the also majority construction will on bit I the as in help would those $XXX I of add, Andrew, draws, little rates mentioned and floating million actually advanced. those a that that

Andrew Liesch

Obviously, I is is year construction it. loan appropriate? the think mid-single-digit turning growth. growth maybe going how from Got draws? gains had quarter. And mean you out some I on the guess, what's look to for good trend now, timing loan this if growth a towards overall you those we next do But year?

Brad Winterbottom

the let's as seen not that's XX not predict. and draws, had hard I -- But think that's evenly pay we're be we're our going the million deals months, that's We've in -- those of seeing we in to totaled going really probably probably aware now 'XX era. X deals 'XX, as many and mostly we're spread. of to and $XX between -- say, seeing off maybe XX, construction that's to end the the that XX, But year. certainly,

Andrew Liesch

Got you. metrics mean, Harlee, I mean have been credit Then excellent. All your That's right. helpful. I mentioned, as you

very there be where for metrics are seeing might looking I been You've there? Are cracks. anything strong. out mean the you

Harlee Olafson

Well, that's love but deal the are we because so to areas of that carefully don't you of watching going we living where are in this that have costs gone that truth. assisted we more have care very high, that category, tell had next to the you like senior pay We actually that housing, X have up or month. off didn't much the

So just in concern area. costs that's the an area labor because that of of

it. office, that metro have have Our office be strong we don't in office would that called portfolio, long-term doesn't anything downtown tenants multi-tenant

into the on service there looking strong. a remain keep we just the keep And we debt coming paying ones portfolio. do coverages and fold, old deal great and projects the down So isn't of the new stress since the

have So has We've some business and done there have new good. that businesses made our some been C&I portfolio acquisitions. some

we adds say So for it us that's I -- to keep of all Andrew. a you, sides I looking, the I for answer that don't because to balance sheet. both have hate good good a business -- but I don't have

Andrew Liesch

quarters. here and encouraging. guess, the operating And rate couple question have That's forward? last the level then to X What's good around be on expenses a good going run out costs I bounced here. of forecasting just

Jane Funk

probably say stable a quarter was this would quarter. pretty I

Operator

Paul from is [indiscernible]. question The next

Unknown Analyst

I on for securities Funk. have the a portfolio? is question What duration Ms. the

Jane Funk

years. X About

Operator

no remarks. to [Operator back further closing questions. Instructions] turn Jane have It appears it I'll that any Funk we for over

Jane Funk

everyone just We January. quarterly today want joining you on this you. next again right. talking in earnings and Thank quarter to look we All and forward call, thank to us to for

Operator

call. you participating. today's Thank conference for This concludes

disconnect. now may You

West Bancorporation (WTBA) 26 Oct 232023 Q3 Earnings call transcript