Financial Performance - Net interest margin grew approximately 20 basis points year-over-year to 353% [1] - Loan growth was 22% higher year-over-year, but core growth is closer to 4% quarter-over-quarter on an annualized basis when excluding the most recent acquisition [2][3][4] Market Dynamics & Strategy - The company closed one of its largest partnerships, contributing to the increase in net interest margin [2] - Strong loan growth and good deposit management also contributed to the increase in net interest margin [2] - Agriculture customers showed strength, although growth includes a recent acquisition in Minnesota [2][3] - Clients are navigating political, geopolitical, and tax uncertainties to grow their businesses [4] - Inventory builds ahead of tariffs boosted growth during the quarter [5] - Client survey suggests clients are twice as optimistic as they were at this time last year, which should bode well for the back half of the year [7][8] - The company is optimistic that farmers will have a better year, partly due to provisions in the "big beautiful bill" [9][10] Cryptocurrency - The industry is trying to figure out how stable coins will change money movement in the US and globally [11] - Crypto is expected to be here for a long time, and the company needs to find ways to help clients acquire and custody those assets [11][12] - The company views cryptocurrency as another asset class that clients want exposure to and aims to help them manage that money [13]

Financial Data and Key Metrics Changes - West Bancorporation reported a net income of $8 million for Q2 2025, an increase from $7.8 million in Q1 2025 and $5.2 million in Q2 2024, indicating a year-over-year improvement of approximately 54% in first half earnings [4][19] - The loan portfolio yield improved to 5.59% in Q2 2025 from 5.52% in Q1 2025, reflecting the benefits of asset repricing [20] - Core deposit balances increased by approximately $195 million in Q2 2025, contributing to a reduction in brokered funding by about $127 million [18][19] Business Line Data and Key Metrics Changes - Loan outstandings decreased slightly to just under $3 billion, attributed to larger payoffs from asset sales and refinancing activities [11][12] - Deposit balances increased by over $67 million during the quarter, with a focus on attracting new depositors [12] Market Data and Key Metrics Changes - The commercial real estate portfolio is improving, with a loan-to-value ratio of 65% and a debt service coverage ratio of 1.35 times [9] - The office property market in Des Moines is facing challenges, with significant vacancy issues affecting the overall market [8] Company Strategy and Development Direction - The company is focused on relationship building and deposit growth, with an emphasis on maintaining strong asset quality [5][9] - There are ongoing efforts to attract high-value retail deposits and business banking opportunities, particularly in the Minnesota market [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the pipeline for loan growth, indicating a robust number of projects and opportunities despite some headwinds from payoffs [22] - The company anticipates margin improvement in the second half of the year due to continued asset repricing [23][24] Other Important Information - The company declared a dividend of $0.25 per share, payable on August 20, 2025, with a current stock yield exceeding 5% [5] Q&A Session Summary Question: Client sentiment and loan growth pipeline outlook - Management noted a robust pipeline with many projects and opportunities to maintain and grow the loan portfolio [22] Question: Margin trajectory in the second half of the year - Management sees potential for margin improvement due to asset repricing, regardless of Fed rate cuts [23][24] Question: Opportunities for hiring and expanding in northern markets - There are opportunities in the marketplace, especially due to M&A activity and larger banks abandoning regional centers [25] Question: Deposit growth opportunities in the second half of the year - The focus remains on growing deposit relationships alongside credit relationships [27] Question: Expense run rate for the second half of the year - The second quarter's expense run rate is expected to be a good indicator for the second half, with no significant items anticipated [28]

Financial Data and Key Metrics Changes - The company reported an EPS of $0.83 and net income of $32 million, with a return on assets (ROA) of 1.32% and a pre-provision net revenue (PPNR) of 1.73% [8][19] - Net interest income increased by $3.3 million, or 3.9%, compared to the first quarter, with a net interest margin (NIM) expansion to 3.88%, up seven basis points [14][18] - Total assets exceeded $9.8 billion, driven by a 5% increase in loans [6][8] Business Line Data and Key Metrics Changes - Annualized loan growth was just over 5%, amounting to $98 million in Q2, primarily driven by commercial real estate balances, which increased by $58 million [9][10] - The mortgage and home equity businesses contributed a combined net growth of $26 million [10] - Customer deposit growth was $28 million, or 1.42% annualized, with non-interest bearing deposits representing 28% of total deposits [11][12] Market Data and Key Metrics Changes - The company maintained a stable allowance for credit losses at 1.24% of total loans, with non-performing assets (NPAs) remaining low [12][39] - The competitive landscape varies geographically, with the company maintaining significant market share in its core markets while being a disruptor in Ohio [64] Company Strategy and Development Direction - The company is focused on organic growth, with a clear path to reach $10 billion in total assets through loan growth and strategic initiatives [6][19] - There is an ongoing emphasis on improving asset quality and maintaining a solid deposit mix, with a disciplined approach to potential inorganic growth opportunities [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future loan growth, expecting to maintain a mid to high single-digit growth rate for the remainder of the year [25][50] - The company is actively monitoring the impact of economic changes and tariffs but has not seen significant adverse effects on growth [12][39] Other Important Information - The company added four new commercial bankers to enhance its commercial and industrial (C&I) lending efforts [10][53] - The tangible common equity (TCE) ratio increased by 18 basis points, positioning the company well for growth opportunities [18][19] Q&A Session Summary Question: What is the outlook for funding costs and loan growth? - Management indicated that successful deposit raising efforts could offset some pressure on margins, but growth might be slightly lower than the current NIM of 3.88% [23] Question: Can you clarify the potential upside in a higher for longer interest rate environment? - Management noted that benefits from repricing on loans and securities could yield a couple of basis points of upside, but it would not be significant [24] Question: What is the company's strategy regarding M&A? - Management confirmed that building long-term relationships is critical, and they are optimistic about participating in M&A as market uncertainty decreases [29] Question: How does the company view its credit quality and reserves? - Management aims to stabilize non-performing loans (NPLs) and maintain low charge-offs, with reserves currently at 1.24% of loans [39][42] Question: What is the expected impact of crossing the $10 billion asset threshold? - The Durbin hit is estimated between $6 million and $7 million annually, but the company has built infrastructure to manage this without significant additional expenses [43][56] Question: What are the primary drivers of loan growth in the second half of the year? - Management highlighted consistent growth across various business lines, particularly in commercial real estate and home equity, with a focus on maintaining strong pipelines [50][51]

Financial Data and Key Metrics Changes - Adjusted earnings per share increased by 8.2% quarter-over-quarter and 17.8% year-over-year [3] - Total loan balances rose by $10 million in Q2, with loan yields at 5.5%, up five basis points from Q1 [5][6] - Total deposits decreased by $60.9 million in Q2 but average total deposits increased by $35.4 million from the prior quarter [6] - Net interest income increased by $1.3 million or 2.4% from the prior quarter, with net interest margin rising to 3.51% from 3.44% [8][10] - Regulatory capital ratios remain above well-capitalized thresholds, with the TCE ratio increasing to 9.4% from 9.3% [10] Business Line Data and Key Metrics Changes - Commercial lending closed $248 million in new loan commitments, up from $183 million in Q1 and $218 million in Q2 2024 [18] - The commercial loan pipeline ended Q2 at $473 million, up from $460 million in the previous quarter [18] - Average interest rate for new commercial loans was 6.55%, down 28 basis points from the previous quarter [21] Market Data and Key Metrics Changes - Deposits decreased during the quarter but are up $100 million year-to-date compared to a decline of $82 million for the same period last year [21] - The deposit pipeline ended the quarter at $132 million, down from $165 million in Q1 [21] Company Strategy and Development Direction - The company is focused on improving net interest margin and controlling noninterest expense growth to drive higher profitability [3] - Strategic repositioning of the balance sheet included a pretax loss of $6.9 million on the sale of $91.6 million of securities [7] - The company remains open to considering new team lift-outs to enhance growth, particularly in construction lending [51][54] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued trends in profitability and risk management as the year progresses [3] - There is concern about the increase in nonperforming and substandard loans, but management believes it reflects a return to a more normalized credit environment [17] - The company expects loan growth to resume after the third quarter as construction loan payoff activity normalizes [20] Other Important Information - Nonaccrual loans totaled just under $9.9 million, representing 0.21% of total loans, an increase from 0.09% in Q1 [12] - The company repurchased 193,700 shares at a total cost of $4.5 million during Q2, with 797,000 shares remaining available for repurchase [11] Q&A Session Summary Question: Projected earn back on loss trade and near-term margin impact - The projected earn back is approximately three years, with an estimated pickup of about $2.3 million pretax [25][26] Question: Future restructuring activity - Future restructuring activity will depend on market conditions and capital needs, with ongoing efforts to improve overall performance [27][28] Question: Update on buyback and strategic use of capital - The stock price was advantageous in Q2, and future buyback activity will depend on stock price and other needs [29][30] Question: Credit quality and downgrades - The increase in criticized loans reflects identified problem credits rather than aggressive credit reviews [35][36] Question: Opportunities for loan growth and borrower sentiment - The largest opportunities for loan growth are in commercial real estate, with some pause among borrowers due to tariff uncertainties [38][39] Question: Spot rate on deposits and NIM for June - The spot rate was 1.92% as of June 30, with a NIM of 3.58% [45][46] Question: Update on new teams and production ramp-up - The expansion of the construction team is on track, with expectations to grow balances by about $75 million [51][52] Question: Competitive environment and pricing pressures - The overall volume in the market has decreased, leading to increased competition, but the pipeline remains strong [62][63]

Financial Data and Key Metrics Changes - Earnings for Q4 2025 were $1.39 diluted, unchanged from Q3 but up $0.20 or about 17% year over year [6] - For the full fiscal year 2025, earnings increased to $5.18 from $4.42 in fiscal 2024, driven by stronger interest income and a 7% growth in earning assets [7] - Tangible book value per share increased by $5.19 or just above 14% over the last twelve months to $41.87 [7] - Net interest margin for the quarter was 3.46%, up from 3.39% in the previous quarter [7][23] Business Line Data and Key Metrics Changes - Gross loan balances increased by $76 million or 7.6% annualized during the quarter, and by $250 million or 6.5% compared to the previous year [8] - Noninterest income increased by 9.2% compared to the linked quarter, driven by an additional card network bonus [25] - Noninterest expense was up 2.3% compared to the linked quarter, primarily due to consulting expenses related to a new contract [27] Market Data and Key Metrics Changes - Deposit balances increased by $20 million or about 2% annualized compared to the linked quarter [8] - The agricultural sector is facing rising input costs and expenses, with many farmers drawing more heavily on credit lines [20][18] Company Strategy and Development Direction - The company plans to change its reported quarterly net interest margin calculation to reduce volatility [7] - There is optimism about achieving mid-single-digit loan growth for the upcoming year despite potential prepayment activity [22] - The company is exploring M&A opportunities, with a solid capital base and proven financial performance [31] Management's Comments on Operating Environment and Future Outlook - Management noted that credit quality has deteriorated somewhat but remains relatively strong [9] - There is a cautious outlook regarding the agricultural sector, with many farmers facing difficult margins and potential operational wind-downs [18][20] - The company is focused on driving continued growth and sustaining long-term value creation for shareholders [29] Other Important Information - The company recorded a provision for credit losses of $2.5 million, up from $932,000 in the previous quarter [29] - The allowance for credit losses totaled $51.6 million, representing 1.26% of gross loans [28] Q&A Session Summary Question: Loan growth momentum - Loan growth was steady throughout the quarter, with larger credits indicating plans to pay off in the near term, potentially increasing prepayment activity [35] Question: Margin expectations - The company is neutral to rate movements currently but expects natural net interest margin expansion from loan origination activity [37] Question: Funding growth expectations - The company does not expect growth to be heavily weighted towards CDs this year, given a strong funding position [45] Question: M&A environment - There has been an increase in M&A discussions, with optimism about potential opportunities [48]

Financial Data and Key Metrics Changes - The company reported a net income of $56.4 million for Q2 2025, an increase of $17 million or 43% from the previous year, with a return on assets of 1.23% and an efficiency ratio of 54% [4][5] - Year-to-date net income totaled $111.2 million, up $24.3 million or 28% from the first half of 2024, with earnings per share increasing by 30% to $1.92 [5] - The tangible common equity ratio stands at 8.92%, above the target level, providing optimal capital flexibility [5][18] Business Line Data and Key Metrics Changes - Commercial loan growth was strong, with $262 million for the quarter and $430 million year-to-date, reflecting over 10% annualized growth [8][19] - The consumer segment also contributed with $36 million in loan growth for the quarter, driven by residential mortgage and HELOC [9] - Total revenues in Q2 increased significantly, with net interest income rising by $2.7 million and non-interest income by $1.3 million [12] Market Data and Key Metrics Changes - The company experienced balanced loan growth across its portfolio, with a $298 million increase quarter-over-quarter, representing a 9.2% annualized growth [19] - The Midwest economies are expanding, contributing to the growth in client businesses and new relationships [8] Company Strategy and Development Direction - The company remains focused on commercial growth across its primary markets of Indiana, Michigan, and Ohio, with a strategy emphasizing organic growth before considering mergers and acquisitions [7][25] - The company has been selective in M&A, focusing on organic growth while monitoring potential acquisition opportunities [25][54] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about maintaining loan growth and increasing market share activities through the third quarter, despite competitive deposit dynamics [9][16] - The company anticipates modest margin compression in the latter half of the year due to rising deposit costs, but expects to continue growing net interest income [29][62] Other Important Information - The company repurchased $22.1 million worth of shares in the quarter, totaling $31.7 million year-to-date [5] - The total cost of deposits increased by seven basis points to 2.3%, reflecting competitive pressures in the market [16] Q&A Session Summary Question: Margin outlook and funding cost pressures - Management indicated that deposit costs have risen due to strong loan growth, leading to expectations of modest margin compression in the latter half of the year [29][62] Question: Loan growth sustainability - Management confirmed that the current loan growth is core and driven by direct client needs, with some pull-through from earlier in the year due to tariff considerations [30][31] Question: Wealth management fees and total fee income outlook - Management expects non-interest income to grow in the mid-single digits in the latter half of the year, with wealth management fees remaining a primary driver [38][39] Question: Technology upgrades benefits - Management highlighted improvements in internal technology that enhance operational efficiency and customer service, contributing to future growth [40][44] Question: Capital deployment strategy - The company plans to use a third of its earnings for balance sheet growth, a third for dividends, and the remaining third for other capital activities, including share repurchases and potential acquisitions [49][50] Question: Credit and provision outlook - Management indicated that the current provision level is appropriate for anticipated growth, with adjustments based on macroeconomic forecasts [85] Question: Fixed rate loan repricing - Management noted that approximately $200 million of fixed-rate loans will reprice in the back half of 2025, with expectations for similar levels in the following year [103][104]

Financial Data and Key Metrics Changes - The company reported a net income of $56.4 million for Q2 2025, an increase of $17 million or 43% from the previous year, with a return on assets of 1.23% and an efficiency ratio of 54% [4][5] - Year-to-date net income totaled $111.2 million, up $24.3 million or 28% from the first half of 2024, with earnings per share increasing to $1.92, a rise of $0.44 or 30% [5] - The tangible common equity ratio stands at 8.92%, above the target level, providing optimal capital flexibility [5][19] Business Line Data and Key Metrics Changes - Commercial loan growth was strong, with $262 million for the quarter, representing over 10% annualized growth, and $430 million year-to-date, at 9% annualized [7] - The consumer segment contributed $36 million in loan growth for the quarter, driven by residential mortgage, HELOC, and private banking relationships [8] - Total revenues in Q2 increased, with net interest income growing by $2.7 million and non-interest income by $1.3 million [12] Market Data and Key Metrics Changes - The commercial segment was the primary driver of deposit growth, contributing $347 million in total deposits for the quarter [9] - Non-maturity deposit balances increased by $108 million year-to-date, indicating a focus on low-cost deposit categories [11] - The total cost of deposits rose by seven basis points to 2.3%, reflecting competitive deposit dynamics [16] Company Strategy and Development Direction - The company maintains a commercially focused strategy across all business segments, primarily in Indiana, Michigan, and Ohio [6] - There is a strong emphasis on organic growth, with selective mergers and acquisitions considered only when beneficial [26] - The company is focused on enhancing its technology infrastructure to improve operational efficiency and customer service [44][48] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about maintaining loan growth and increasing market share, supported by a strong pipeline [8][20] - The company anticipates modest margin compression in the latter half of the year due to rising deposit costs and competitive pressures [31][64] - The outlook for non-interest income is expected to grow in the mid-single digits for the second half of the year [42] Other Important Information - The company repurchased $22.1 million worth of shares in the quarter, totaling $31.7 million year-to-date [5] - The allowance for credit losses was $195.3 million, with a coverage ratio of 1.47, reflecting improvements in non-performing loans [15][19] Q&A Session Summary Question: Margin outlook and funding costs - Management noted that deposit costs have risen due to strong loan growth, leading to expectations of modest margin compression in the second half of the year [31][64] Question: Loan growth sustainability - Management views the current loan growth as core and driven by direct client needs, with some pull-through effects from earlier in the year [32][33] Question: Wealth management fees and total fee income outlook - Non-interest income is expected to grow in the mid-single digits, with wealth management fees remaining flat year-over-year [42][43] Question: Technology upgrades benefits - The company has implemented internal technology improvements to enhance efficiency and customer service, with positive early results [44][48] Question: Capital deployment strategy - The company plans to use a third of earnings for balance sheet growth, a third for dividends, and the remaining third for other capital activities, including share repurchases and potential acquisitions [53] Question: Credit and provision outlook - Management indicated that the current provision level is appropriate for anticipated growth, with adjustments made based on macroeconomic forecasts [86]

Financial Data and Key Metrics Changes - The company reported net income of $20 million for the second quarter, equating to $0.69 per share, while loan outstandings contracted by $31.9 million during the quarter [3] - Year-to-date commercial loan production was $507 million compared to $422 million in the prior year, but loan outstanding contracted by $25.4 million compared to growth of $117.6 million in the prior year [4] - Deposits decreased by $75.8 million during the quarter, primarily due to seasonal declines in public funds deposits and broker deposits, but excluding these declines, deposits increased by $77.5 million [4] - The net interest margin (NIM) reported was 3.2%, an increase of 11 basis points from the prior quarter, with core NIM at 3.24%, expanding by 12 basis points compared to the first quarter [6] Business Line Data and Key Metrics Changes - Noninterest income increased by $521,000 or 2.5% compared to the second quarter of 2024, driven by increases in investment management fees, gains on sale of SBA loans, and treasury management fees [7] - Noninterest expense increased by $1.6 million or 3.3% compared to the second quarter of 2024, primarily due to compensation costs, including annual merit increases and medical costs [7] Market Data and Key Metrics Changes - The company expects loan growth of approximately 1% to 3% for the full year and net interest income growth of 10% to 12% compared to 2024 [8] - The provision for credit loss guidance remains unchanged at $12 million to $14 million for 2025, with the provision being event-driven [8] Company Strategy and Development Direction - The company will continue to be active in share buybacks, viewing it as a good use of capital, while M&A is not an immediate strategic priority but remains an option for the future [17] - The company is focused on managing expenses prudently, with a revised expense growth forecast of 2% to 4% [15] Management Comments on Operating Environment and Future Outlook - Management noted that loan activity and origination remain strong, despite being impacted by significant payoff activity in the first half of the year [14] - The competitive environment for deposits is tough, with ongoing efforts to grow deposits through targeted campaigns [20] - For the third quarter, core NIM is expected to pull back slightly due to the repricing of sub debt issuance and higher cost public funds [21] Other Important Information - The company reported $7.8 million of net charge-offs predominantly related to one credit, which accounted for $7.3 million of the charge-offs, with credit quality remaining strong overall [5] Q&A Session Summary Question: Update on loan growth and expenses - Loan growth is expected to be 1% to 3%, with interest income growth of 10% to 12%, and expenses are projected to grow by 2% to 4% [12] Question: Changes in loan environment and competition - Loan activity is strong, but significant payoff activity has impacted growth; management anticipates a slowdown in prepayment activity in the second half of the year [14] Question: Strategy for capital deployment - The company will continue share buybacks and is open to M&A opportunities, particularly on the non-bank side [17] Question: Deposit competition outlook - The competitive environment for deposits is challenging, with ongoing efforts to grow deposits through targeted campaigns [20] Question: NIM trajectory outlook - Core NIM is expected to pull back slightly in the third quarter, with a flat to slightly up trend thereafter, assuming stable interest rates [21]

Financial Data and Key Metrics Changes - Net income for Q2 2025 was $135 million, an increase of $23 million or 21% compared to $111 million in Q2 2024 [9] - Earnings per diluted common share rose to $1.42, up 21% from $1.17 in the same period last year [9] - Annualized return on average assets was 1.41% and return on average tangible common equity was 13.44%, compared to 1.17% and 12.34% respectively in Q2 2024 [10] - Net interest margin increased to 3.18% from 2.94% in Q2 2024 [10][17] - Noninterest income was $43 million for Q2 2025, compared to $46 million in Q2 2024 [17] Business Line Data and Key Metrics Changes - Total loans were $22.1 billion at the end of Q2 2025, a decrease of $123 million from $22.3 billion a year earlier [11] - Core commercial loans, excluding mortgage warehouse loans, increased by $73 million or 2.4% annualized [11] - Deposits decreased to $27.4 billion, down $459 million or 1.6% from $27.9 billion in Q2 2024 [12] Market Data and Key Metrics Changes - Nonperforming assets totaled $110 million, representing 33 basis points of quarterly average interest-earning assets, compared to $89 million or 25 basis points in Q2 2024 [12] - The allowance for credit losses on loans was $346 million, which is 3.47 times the amount of nonperforming assets [13] Company Strategy and Development Direction - The company announced a definitive agreement to merge with American Bank Holding Company, enhancing its presence in South Texas and Central Texas [7][9] - The focus remains on building core customer relationships, maintaining asset quality, and investing in technology [15] - The company is open to further mergers and acquisitions, indicating a strategy of growth through consolidation [13][61] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about loan growth in the second half of the year, citing improved monthly production numbers [11] - The company anticipates continued positive trends in net interest margin and net interest income [39][45] - Management noted that the Texas business environment remains favorable, contributing to the company's growth strategy [14] Other Important Information - The efficiency ratio improved to 44.8% from 51.8% in Q2 2024 [18] - The company expects noninterest expense for Q3 2025 to be in the range of $141 million to $144 million [18] Q&A Session Summary Question: Update on loan growth expectations - Management indicated that loan growth has started better than previous quarters, with a pipeline looking good for low single-digit growth for the rest of the year [27][31] Question: Margin momentum and factors affecting it - Management discussed that net interest margin continues to grow, with expectations of reaching 3.35% in six months under stable interest rates [35][39] Question: NII accretion from the acquisition - The acquisition of American Bank is expected to bring an annual NII of approximately $85 million to $90 million, with additional benefits from fair value adjustments [58] Question: Quality of American Bank's loans and deposits - Management expressed confidence in the quality of American Bank's loans and deposits, indicating minimal expected runoff post-acquisition [66][73] Question: Future M&A activity - Management confirmed that they remain active in pursuing additional M&A opportunities even with the pending acquisition [97] Question: Regulatory pressures and deal timelines - Management noted a hopeful return to quicker deal closures, estimating a timeline of three to four months for future acquisitions [102]

Financial Performance - Net income for Q2 2025 was $210 million, an increase of $32 million compared to Q1 2025 and Q2 2024[8] - Net interest income increased by $26 million to $632 million[8, 24] - Earnings per share (EPS) increased by $053 to $309[8] - Return on average tangible common equity (ROTCE) was 1326%[8] Balance Sheet - Loans held in portfolio grew by $931 million or 25%[8, 10] - Total deposits increased by $14 billion or 21%[10] - Tangible book value per share increased by $339 to $7541[8, 10] - Total assets reached $76065 million[8] Credit Quality - Non-performing loans (NPLs) decreased by $2 million to $312 million[8, 10] - NPL ratio improved to 082% compared to 084% in Q1 2025[8, 10] - Net charge-off (NCO) ratio was 045% compared to 053% in Q1 2025[8, 10] Capital Actions - The company repurchased $1120 million in common stock at an average price of $9854 per share[10, 44] - A new common stock repurchase program of up to $500 million was announced[10, 44]