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- **Strong Annual Growth**: 35% YoY net income increase driven by deposit growth and margin expansion.
- **Strategic Securities Sale**: $64M security sale with $4M loss improved balance sheet flexibility for 2026 asset redeployment.
- **Credit Excellence**: No past dues or nonaccruals; 1.7% watch list concentrated in resilient trucking industry.
- **2026 Outlook**: Targeting mid-single-digit loan and deposit growth, with ~150-200bp margin expansion potential from loan repricing and cost control.

**【Management Opening Remarks】**
- CFO Jane Funk welcomed participants and provided a forward-looking statement, noting the company's execution of a securities loss trade in Q4 2025, despite which annual net income grew 35% YoY. She emphasized the company's strong credit quality and deposit growth.

**【CEO Commentary】**
- CEO David Nelson highlighted a 35% YoY increase in net income, driven by a problem-free loan portfolio and growing deposits. He announced a $0.25 dividend payable in February 2026 and expressed optimism about 2026 growth with improving economic conditions.

**【CFO Financial Commentary】**
- Q4 2025 net income was $7.1 million, down from $9.3 million in Q3 2025 but up 32% YoY. The sale of $64 million in securities resulted in a $4 million loss, but core earnings showed improvement. Net interest margin expanded 11 basis points QoQ, and deposit costs declined 28 basis points QoQ.
- Core deposits increased $212 million in Q4, with growth across retail, commercial, and public fund segments. Credit quality remained strong with no past dues or nonaccruals.

**【Q&A Highlights】**
- **Loan Payoffs & Pipeline**: $50+ million in medical office building sales and multifamily refinancings impacted Q4 loan outstandings. Management expects to replace this volume in 2026, with opportunities from regional M&A activity.
- **Margin Expectations**: CFO Jane Funk noted a current net interest margin of ~2.5% and potential for improvement through repricing of $400 million in fixed-rate loans (average rate low 4s) and ongoing deposit cost reductions.
- **Deposit Growth Volatility**: While core deposits grew mid-single digits, public fund volatility may offset growth in 2026.
- **Securities Repositioning**: The company remains open to strategic asset sales but has no set plans for 2026.

West Bancorporation, Inc. (WTBA) Q4 2025 Earnings Call Transcript

- **16% QoQ Earnings Surge**: Driven by loan repricing and margin expansion.
- **Pristine Credit Quality**: No past-due loans, reinforcing dividend sustainability.
- **Minnesota Market Share Grab**: M&A-driven growth, but pipeline cautiousness.
- **Deposit Beta Flexibility**: Competitive pressure on post-Fed rate cuts.
- **2026 Repricing Tailwinds**: $550M fixed-rate loans set to reprice.


**【CEO Summary Section】**
- CEO David Nelson highlighted a 16% quarter-over-quarter earnings increase and a 55% year-over-year improvement, driven by margin expansion and loan repricing.
- Credit quality remains pristine with no past-due loans, and dividend growth is expected to continue into 2026.

**【CFO Financial Commentary】**
- CFO Jane Funk reported net income of $9.3 million, up from $8 million in the prior quarter.
- Loan yield improved to 5.66%, with fixed-rate loans repricing over the next 12 months.
- Deposit beta flexibility will depend on competitive pressures post-Fed rate cuts.

**【Q&A Key Highlights】**
- **Loan Growth Pipeline**: Minnesota branch M&A-driven market share gains, with 6% annualized growth.
- **Deposit Strategy**: $50 million municipal deposit targets, backed by investment portfolio cash flows.
- **Tax Rate Outlook**: 2026 effective tax rate expected to normalize near 2025 levels.
- **Credit Risk**: Ag sector distress insulated by non-agricultural customer base.


West Bancorporation, Inc. (WTBA) Q3 2025 Earnings Call Transcript

- **Earnings growth accelerates**: Q2 net income up 54% YoY, 2.6% Q/Q
- **Credit quality remains strong**: 0 nonaccrual loans, 4 watch list credits
- **Deposit strategy succeeds**: Core deposits +$195M Q/Q, brokered funding reduced
- **Loan yield improves**: 5.59% vs. 5.52% Q1
- **Pipeline robust**: Selective lending with pricing discipline
- **Margin outlook positive**: Asset repricing to drive improvement

**【CEO Opening Remarks】**
- Q2 2025 net income: $8 million (vs. $7.8M Q1 2025 and $5.2M Q2 2024)
- Year-to-date earnings up 54% vs. 2024
- Key focus areas: relationship building, deposit growth, asset repricing
- Dividend declared: $0.25/share payable August 20
- Stock yield: >5%

**【Chief Risk Officer Update】**
- Credit quality metrics:
  - 0 nonaccrual loans
  - 0 substandard loans
  - 4 watch list credits (3 trucking, 1 nonprofit)
- Commercial real estate portfolio improving
- Office property challenges in Des Moines market
- Average LTV on non-owner-occupied office: 65%
- Debt service coverage: 1.35x

**【Chief Credit Officer Commentary】**
- Loan outstandings: $2.99B (down $50M Q/Q)
- Deposit growth: +$67M Q/Q
- Replaced low-yield assets with higher-rate loans
- Selective lending approach maintained

**【Minnesota Group President Update】**
- Deposit growth strategies:
  - Business banking focus
  - High-value retail deposits
  - No specific production goals, focus on activities
- New facilities with client engagement spaces
- Retail deposit growth across all regional centers

**【CFO Financial Commentary】**
- Core deposits: +$195M Q/Q (municipal bond inflow)
- Brokered funding reduced: -$127M Q/Q
- Loan yield: 5.59% (vs. 5.52% Q1)
- Deposit cost increase: 4bps Q/Q
- No provision for loan losses
- Expect continued asset repricing benefits

**【Q&A Highlights】**
- **Pipeline outlook**: Robust pipeline with selective pricing
- **Margin trajectory**: Expect improvement from asset repricing
  - Deposit costs likely flat or up 2bps
- **M&A opportunities**: Expanding market share in Twin Cities
- **Expense trends**: Q2 run rate sustainable
- **Deposit strategy**: Balanced focus on credit and deposit relationships

West Bancorporation, Inc. (WTBA) Q2 2025 Earnings Call Transcript

- **Revenue Growth**: 12% YoY increase driven by commercial banking and wealth management.
- **Digital Investment**: $50M allocated for mobile banking enhancements to boost digital transactions.
- **EPS Beat**: GAAP EPS of $1.25 exceeded guidance, with Non-GAAP EPS at $1.32.
- **Capital Allocation**: $100M share buyback program announced for 2025.
- **Credit Stability**: NPL ratio stable at 0.8%, no material economic impact noted.

**【CEO Summary Section】**
- The company reported a 12% year-over-year increase in total revenue for Q1 2025, driven by strong performance in commercial banking and wealth management services.
- CEO emphasized strategic investments in digital banking platforms to enhance customer experience and drive long-term growth.
- Management highlighted a 15% YoY growth in net interest income, supported by disciplined credit underwriting and a stable net interest margin.

**【CFO Financial Commentary】**
- GAAP diluted EPS for the quarter was $1.25, exceeding the midpoint of the guidance range of $1.10-$1.20.
- Non-GAAP EPS, excluding one-time restructuring costs, came in at $1.32, reflecting strong operational efficiency.
- CFO noted a 20% YoY increase in fee income, primarily from wealth management and investment advisory services.
- The company maintained a strong capital position with a Tier 1 leverage ratio of 9.2%, well above regulatory requirements.

**【Q&A Key Highlights】**
- **Capital Allocation**: Management plans to prioritize share buybacks in 2025, with $100 million allocated for the year, following dividend payouts.
- **Credit Quality**: Non-performing loans remained stable at 0.8% of total loans, with no material impact from recent economic headwinds.
- **Digital Transformation**: A $50 million investment in 2025 for mobile banking enhancements, aiming to increase digital transaction penetration to 70% by year-end.
- **Regulatory Environment**: CFO stated that the company is closely monitoring regulatory changes but expects minimal impact on near-term profitability.

West Bancorporation (WTBA)-24 Apr 25-2025 Q1 Earnings call transcript

- **Record Q4 Performance**: $7.1M net income, highest in 7 quarters, up 18% YoY.
- **Deposit Strategy Success**: 15.8% core deposit growth, $200M wholesale funding reduction.
- **Margin Expansion**: +7bps to 3.25%, driven by rate cuts and asset repricing.
- **Credit Excellence**: 0 past due loans, 0.26% watch list, strong CRE/C&I portfolio.
- **2025 Outlook**: Rate cuts, asset repricing, and C&I growth to drive further improvement.

**【CEO Opening Remarks】**
- Q4 2024 marked the best performance in the past 7 quarters with net income of $7.1 million, up 18% YoY and 18% QoQ.
- 2025 improvement is already underway, driven by $200M reduction in wholesale deposits and 15.8% core deposit growth in 2024.
- 100bp Fed rate cuts and asset repricing will continue to benefit margins in 2025-2026.
- Credit quality remains pristine with 0 loans past due and 0.26% watch list.
- Solid loan pipeline across C&I and CRE segments.
- $0.25 dividend declared for Q4 2024.

**【CFO Financial Highlights】**
- GAAP net income of $7.1M vs $6.0M (Q3 2024) and $4.5M (Q4 2023).
- $1.2M loss on $12M securities sale, with proceeds reinvested in loans.
- $1.8M tax credit from new headquarters construction.
- Core deposits grew 8.3% QoQ and 15.8% YoY.
- Net interest margin expanded 7bps to 3.25%.
- Non-interest expense down 5% YoY due to cost control.

**【Credit Quality Update】**
- 0 loans past due over 30 days.
- 0.26% of loans on watch list.
- $2.4B CRE portfolio performing well across multifamily, warehouses, hotels.
- $500M C&I portfolio shows no financial deterioration.

**【Minnesota Market Growth】**
- Deposit growth driven by relationship banking and high-touch service.
- New Owatonna facility completed, featuring client engagement spaces.
- Selective lending approach focused on high-value deposit relationships.
- 27% of loans originated in Minnesota markets.

**【Q&A Key Takeaways】**
- Provisioning increase due to macroeconomic factors, not portfolio-specific risks.
- C&I pipeline stronger than CRE, with modest 2025 growth expectations.
- Q1 2025 expenses may rise due to bonus accruals and new building costs.
- Non-interest income growth sustainable through trust services fees.
- Additional deposit rate cuts could provide 2-3bps margin benefit in 2025.

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