WTBA - Earnings call transcript Q1 2024 | West Bancorporation, Inc.

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Operator

Thank you for standing by. My name is Mandeep and I will be your conference operator today. At this time, I would like to welcome everyone to the West Bancorporation, Inc. Q1 2024 Earnings Call.

[Operator Instructions]

to conference like Funk, to now CFO. would turn over the Jane I

may You begin.

Jane Funk

everybody, you Group be Dave and today Welcome, Brad we'll Officer; you. Thank thank all President; Bank for earnings Harlee Chief and Today, the Brad CEO; and Winterbottom, on our for call. I've today our making got Minnesota comments. Nelson, Peters, Olafson, Risk President, our us joining call,

reading by fair statement. our I'll start off disclosure

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

turn to it point, for opening Dave comments. this at And I'll over

David Nelson

Welcome, Good our Jane. for your and company. for thank interest you us. you, Thank everyone. in Also, afternoon, joining thank you

margin, to is terms we our to our but days at it speak community attention. quarter, quality, no hopefully, past Our at have of than detail and just and be better office Harlee loans a excitement quarter West we bottom facility, new of no this wind headquarter to pristine is main in XX news expected into this, more but more in credit problem and has found lot over essentially bit loans Jane with moved will end. will Exciting actually that continues generated Bank forecasted. our a have speak the and due

high XX call of for May are declared comments, profile the Officer, a our to record quarterly date very of of new the [indiscernible] site shareholders headquarters, regular a something to rather of May Mr. special. We've to turning like turn Harlee Chief Those into I'd extent payment Risk over my prepared a completed Olafson. redevelopment X. as We $X.XX, dividend

Harlee Olafson

Thanks, Dave.

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

billion watch almost Our list only on our is $X $XXX,XXX. portfolio

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

million. value properties. closely properties service looked of the have half our $XXX is the loan portfolio consists average portfolio, About about of and at owner-occupied We the XX%, to X. X.XX portfolio to nonowner-occupied The office office debt is totals office office our of coverage

remainder of our estate portfolio seasoned. The is and commercial strong real

repricing that the will loans cover increased next appears new It will commercial portfolio. be in net a year. payments. have still that interest real projects rising most We there of significant been estate lot have income have the rates, With not to enough added stress-tested to the operating

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

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

customer and deposit been rates markets having to relationships prospecting Our our keep maintain those remain of base, in both that strong. have The business. with keep bankers the economy for sheet. looking a increase our capturing our add to we good job of customers' doing cracks We of sides more to balance areas our concern

Winterbottom. I will bank our President, that, Brad turn to it With over

Brad Winterbottom

brief. be comments My you. Thank will

For XX, from the grew our portfolio loan increase quarter March XXXX. a billion to $X.XX in or X.X% ended outstandings year-end

committed vertical construction transactions. primarily draws on was portfolio the in growth by previously Our driven

price. and these million that take next variable rate will draws commitments place XX construction are in over We the unfunded have vertical months roughly primarily $XXX on loans

ability ago, customers' a with remains battles. with remain customers slightly we are What staff. in gathering we're picked seeing maintain year winning of existing is our We share but is from positive sales priority reduction create, a the we but have stiff, that to our Competition our balances our fair we that deposit and new prospects with relationships are in confident up pursuing. gathering. Deposit

Mr. Peters, With that, all yours.

Bradley Peters

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

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

been intentional deposits Our new and have business. growth our been C&I and bankers focus management deposit growth, treasury efforts their on draw has in to and calling

focusing retail owners also and new grow are facility. to executives market key has business now opened their on We high-value our Mankato deposits.

As with bank relationship is new our building. other designed for locations, the

year. have new facilities and enhance served Owatonna to the will of attract existing market in new a construction, quarter this new be great The relationships. tool in the and under business we fourth bank we occupying as facility our Our anticipate new is

back end I to Jane. it now comments. will over the of are my turn Those

Jane Funk

Thanks, fourth $X.X fourth recorded Brad. Net million for the of $X.X in loan first to the in first to quarter of and $XXX,XXX $X.X the in small the million XXXX. of income was quarter compared million quarter was There losses for provision as of XXXX provision quarter in compared XXXX. a the quarter no

pristine. credit our quality mentioned, previously As remains

basis flows, for has was compared our income X.XX% interest quarter and of XXXX X to Loan up prevailing net to cash investment at Net the from quarter-over-quarter. maturities and the to continue ranged $XXX,XXX X increased last margin quarter interest quarters. X.XX% interest the point rates. the higher first in reprice Net fourth margin market

rate, pressure and deposit upward higher inverted put rates. extended on However, expectations competition for deposits for longer curve an to continue yield

uncertainty of any activities deposits that, questions. forecasting With competition and volatility, in any interest rate net end we'll remarks, and margin. for flow of continues cash take are customers' prepared to those the our Market create our

Operator

[Operator Instructions]

of comes Piper line first with Andrew Sandler. Your question Liesch from the

Andrew Liesch

said, you've pressure could this costs some seems pretty pressure just see just you place environment. a that finally out margin, quarter, And like as it's that for that I Jane, seems forecast you it upward it's mean now resiliency some given great like out on the deposit found level longer given to can just know on where here. I much [ with -- But tough subsiding]. there wasn't how upward just

getting better new yields are You on loans.

So I of level to maybe build steady is good a guess, this forward? off I mean, or

Jane Funk

I what is this would say faster projected a that our for than yield had -- the at the little pace originally year. improving loan on portfolio bit we

costs thing. a much have the that's the more good they gone manageable So same slowed also to But have time, but up, pace. deposit at a

to quarter some that forecast second in rate rates. pretty repricing third we're interest have So do of We we swaps and low to really at give some margin. any are hate going that be

they'll direction while could so to time, more reprice reached this movement market give good to year the that like And kind throughout right us rates, said, on bottom. know we the Dave so we there's seeing in repricing to that point the challenges. in at But going be of continue the things side cost we've other we're hope

Andrew Liesch

commentary. That's you have Is number? in that's And it. that have deposits. correct, that really about I Got here notes that my around helpful million indexed $XXX through

Jane Funk

steady that pretty running been level. It's Yes. at

Andrew Liesch

also guess, some may is where growth like coming the be then side, And growth sounds you had the C&I some there CRE that pipeline from? construction, good How challenging, it but it. solid. growth. pipeline a is loan And on little I is more good Got the there?

Brad Winterbottom

that we've up we're than sense. our right few of quite But makes say gathering, trying is emphasis would balance more if on to deposit picked a side customers. left little yes, side, the to grow the more get I a frankly, the sheet bit

Andrew Liesch

you And go certainly. those Yes, how then deposit guess the looking throughout year. that I is here along as lines, pipeline

be on deposits with First the planning funding of side? tough and can quarter how grow year to you pretty commercial are April, the rest the for same but

Brad Winterbottom

of have of right fairly those. going successful we we're that on a be think we a think that handful I relationships to significant And we're now. chasing majority

Does So question? are answer your it's our crossed, fingers good. but that

Andrew Liesch

Yes, very Jane, last helpful. question expense you on for just base. then, the And

a operating off control ] [ expecting. heading Is I there to quarter, cost run the we're higher. lower cost us is anything Or than that as rate could was good So in came push good affect might that here, this much of? in build

Jane Funk

with is -- building. onetime just expenses logistics have not determined go new of that essentially, we'll think know up other the of that, we cost than any addition the I yet the with physical But that. for be Well, occupancy like quarter some to our the shifts That's second going we're things in on the significant side. move expecting and expense to the

Operator

Instructions] [Operator

to now the turn That Q&A over back remarks. Funk conference session. does for Jane closing I conclude will our

Jane Funk

for you. call on just us to we you again to and joining we to Again, look thank today, want forward next quarter. Thank everybody talking our

Operator

today's concludes This conference call.

disconnect. may You now

West Bancorporation (WTBA) 25 Apr 242024 Q1 Earnings call transcript