WTBA - Earnings call transcript Q3 2024 | West Bancorporation, Inc.

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the West Bancorporation Third Quarter 2024 Earnings Conference Call. [Operator Instructions]. I would now like to hand today's call over to Jane Funk, CFO. Please go ahead.

Jane Funk

Thank you. Yes. the the West today, participants you joining Funk, like and and Jane for welcome to on us. is CFO Bancorporation, of I'd thank This the call Risk Nelson, Peters, Brad Group President. Harlee Dave President; Minnesota are today Winterbottom, Bank me Olafson, With Chief Officer; Brad and CEO;

I the reading call the disclosure statement. will begin with fair

future the within of the regarding safe today's we make or may of meaning During events Litigation projections or Act provisions financial the the of Private future conference call, other Securities Reform forward-looking performance statements company. the harbor XXXX of

provide We may caution for see release that differ XXXX the that the information. such over with results turn The Please accurate earnings and to which we is Dave and XXXX, quarter more statements XX, will us. as And information update undertake our are materially. in September information third actual no to predictions about forward-looking risks disclosure Nelson. it we statement will today that, I duty of uncertainties, may and affect

David Nelson

afternoon, Jane. will our in us joining for and some you, you from for everyone. interest Thank I details others. more comments and your have hear general you company. Thank Good

quarter strong, our some say expected. to is as not pleased I'm growth. demand but Loan had have we went modest

in Our have results gathering deposit deposit activities and are our we pipeline. sheet, balance showing a very strong

We benefit margin has our improving, will no stabilized. believe we Fed from further Credit problems. quality rate with very remains is and cuts. strong It

record Our November payable of and per quarterly November on Board share dividend to of Directors as shareholders of declared has $X.XX a XX. X

Chief Risk turn the now over Officer, like our Olafson. I'd to that, to With Mr. Harlee call

Harlee Olafson

Dave. you, Thank

we have estate values with but Starting a Our remain to new slight loan service from loan to real very overall limited seen quarter. shown previous commercial portfolio portfolio strong, have coverages remains due decline the decline. Debt the strong. projects,

X are multi-tenant multifamily the past properties. properties, and estate real We estate are downtown portfolio. significant and there office not commercial have real Our any largest warehouse dues commercial concentrations do in

to strong about C&I profits in and In portfolio represents extremely Our this reviewing that in XXXX. continues our operating XXXX $XXX in sector, year-to-date XXXX were and have moderated funded be and 'XX strong. balances million customers'

sheets to the end, only -- This portfolio loan deceased. strong continues property past service. owner a balance estate quarter is exhibit due adequate X we At debt with is where had residential real the I loan.

We and on property and loan the allowed the $XXX,XXX property, sale October listed is expect than is sold of the areas the the has closing for XX. the and payment full less $XXX,XXX over been have for as

strength in our the The loan our is uncommon of portfolio part of to economic due communities. strengths

All abilities. to engines grow have In repayment customers different balance with our strong sheets economic good we and communities allow strong locations that communities, have of records, thrive. and track our

reprice significant have do will decline. that we future, real the will In estate cause cash commercial and our customers' loans to flows

tested at end stress individual have payment questions. for not our higher and loans of do significant prepared I'm the At the the available We remarks, expected rates. see issues

our it over bank to President, Winterbottom. I now Brad turn

Brad Winterbottom

you, Thank Harlee.

portfolio was loan flat XX. the just quarter June billion. ended For second relatively $X ended our the were compared XX September over quarter when 'XX, of to Outstandings

our For X.X%, vertical grew X or driven portfolio of the primarily loan million loan months $XX construction first by commitments. 'XX,

months. in should occur million on $XX construction the that over projects over vertical slightly have with draws We XX anticipated unfunded commitments large next

-- customers that selective positive create with we pursuing. frankly, a opportunities, our relationships an lending and competitive we new highly obtaining we our remain in prospects Deposit and opportunities markets are remain in sales to X.X%. core and than We less those previous quite confident We years. maintain ability of deposit efforts the have are and we continue emphasis to in growth approximately in environment gathering be serve, experienced

Peters. With that, I'll turn to Brad that Mr. over

Bradley Peters

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

Our relationship-based . have new and our centers on in successful Minnesota strategy high-value Each C&I of be growing business regional winning to we focused relationships. are Minnesota. continues retail our on deposits, and

facilities client to high-quality and host built a events meetings. one-on-one We in prospect designed have

us unique advantage competitive fully Our Banc West the difference. a approach gives to show

interest I will be challenge. competition. from in for as new The set This opportunities in experienced a We've under relationship-based delay, our has our to had building new of created construction. rate the team occupy is first us environment continues the facility market anticipate apart our bankers we and slight Owatonna approach but our XXXX. a high-quality quarter The

the my turn call We -- back the end comments. Jane. of will to I over now those are

Jane Funk

Thanks, Brad.

This $X Our quarter net million third -- loan recorded a the credit quarter forecasted of XXXX. increase for quarter identified of the million months in income due was of XXXX. Net provision $XX XXXX specifically second compared the of XXXX for portfolio. we and X quarter in the deterioration for not in first the $X We losses provision was period unemployment primarily was the million to third same $X.X of the of $X $XX million. rates in in was income $XX.X credit million the to compared result to million million for and

in unfunded We for is primarily decrease related the commitment The to million a the provision balances. the in losses $X unfunded also commitment to recorded unfunded due credit negative reduction commitments. liability

increases of margin XXXX. and now interest quarters interest basis net X quarter consecutive quarter have increased had in income of the to compared X points second net We this

including, depositors, net The rate September, basis the lower investments any of the opportunities XX repricing variables, of interest believe the mix highest reduction point not sectors, ongoing our to future sensitivity the rate and in on for of the deposits rates in multiple were in limited rate margin. benefit we impact flows cash deposit loans, and to, maturities. Fed able which is costing but we deposit With changes dependent will our

remaining activity, commercial the X.X% have earlier referenced is temporary core are on public and deposit and retail XXXX, focused we'll for questions. efforts our Those it Core in prepared relationships. increased of funds deposit the of Brad open a mix remarks, of half end that that related growth reflecting be funds, deposit Approximately to that is expect year-to-date. withdrawn balances we X% to

Operator

[Operator Instructions].

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

Andrew Liesch

want years, line loan in think like lumpy down growth drill growth could is some maybe still lower like there construction. been sounds is do mid-single-digit but coming from you prior see? that the are commentary. than It it's the short maybe Just weighted that to of down on mean fall pipeline more you I loan reasonable? that? guess any it also, I payoffs the Or towards

Brad Winterbottom

assets product payoffs some of anticipated get because some advances materialize and that will sold. have those do construction will primarily to We final

C&I that business, their fourth anticipated things that's close up. a large customer that think will We fill quarter. to I sold has have that back have But we and the in

So we're to at I going where about think . be year-end. we're

Andrew Liesch

it. Got

the the bps mean, where the here. margin, rates just Okay. point ago? you've brokerage on expansion once That's could helpful. And guess, those quarter curious do like maybe the at much how a sounds at opportunity I than see side. on reduced are going the were quarter? where look rate? X the fourth full some the I lot then markets I mean, rates maybe some And can We we Then a the you XX conversations so improvement how It the great so. to of basis like there's lower -- margin, here to accounts I'm money see do CDs, through in think flow on

Jane Funk

brokered bulk and we've lot of our seeing got is benefit our we're within like short a of within We've portfolio most on that Well, CD and of -- CD a large relatively X XX certainly certainly, CDs type lives. a volume more months side. the months, larger are

benefit least basis point rate core a we'll decline that repricing brokered and booked CDs at at So generally from see the XX benefit CDs they're at. seeing and in good current

we'll benefit So see there.

XX the cliff, The -- every money to the will any pretty basis move reaction accounts, probably we're aggressive were accounts, same be points. Future not testing but negative waters. maybe we basically that. cuts bank market seen the at be unlikely other able to the We've transactional to rate like with

Andrew Liesch

the all had. I've questions Got That it. covers

in everything in You've [indiscernible] information X-K. the the today covered your in

Operator

At remarks. for today's to now there Instructions] [Operator will questions. over hand I closing back presenters further current time, are the any no call

Jane Funk

Thank you, forward quarter. to look Thank and us joining results discussing next you. year-end . we our today, everybody, for

Operator

call. Thank joining. concludes you today's for This

may now You your disconnect lines.

West Bancorporation (WTBA) 24 Oct 242024 Q3 Earnings call transcript