Financial Data and Key Metrics Changes - West Bancorporation Inc. reported a 16% earnings increase over the prior quarter and a 55% increase compared to the third quarter of the previous year [4] - Net income for the third quarter was $9.3 million, up from $8 million in the second quarter and $6 million in the same quarter last year [12] - The net interest margin improved by nine basis points compared to the previous quarter [12] - Loan yield increased to 5.66% from 5.59% in the second quarter and 5.52% in the first quarter of the year [12] Business Line Data and Key Metrics Changes - Loan outstandings were slightly up at just over $3 billion, with a few larger payoffs from asset sales and refinance activity [8] - Core deposit balances decreased by approximately $82 million in the third quarter, primarily due to normal cash flow fluctuations in core public fund deposits [12] Market Data and Key Metrics Changes - The Minnesota banking segment is experiencing a slowdown among manufacturing clients due to economic uncertainty, but there are new business opportunities arising from M&A activity in the market [9][10] - The company is focusing on deposit-rich business banking opportunities and has successfully attracted new deposits from high-earning individuals [10] Company Strategy and Development Direction - The company is committed to maintaining strong credit quality and has a disciplined approach to loan opportunities, focusing on quality over quantity [6][8] - West Bancorporation aims to leverage its facilities for client engagement and relationship building, which is a key part of its growth strategy [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining a strong credit quality and expects the margin to benefit from future Fed rate cuts and loan renewal repricing [4][6] - The company anticipates continued loan yield improvement due to fixed-rate assets repricing into higher yields [12] Other Important Information - A quarterly dividend of $0.25 per share was declared, payable on November 19, 2025 [5] Q&A Session Summary Question: Update on loan growth pipeline and market share in Minnesota - The pipeline is good but not as robust as in the past due to a more selective approach to credit [18][19] Question: Can mid-single digit growth be funded through deposit gathering? - The objective is to manage cash flows from the investment portfolio and deposit gathering, with some potential need for short-term wholesale funding [22] Question: Update on margin tailwinds and deposit beta assumptions - There are still repricing opportunities in the loan portfolio, but deposit betas may not be as aggressive as in the past due to competitive pressures [23][25] Question: Thoughts on future tax rate - The forward tax rate is expected to be similar to the first half of the year, with the third quarter being an anomaly [27] Question: Capital management and deployment priorities - There are no specific plans, but the focus is on good loan opportunities and organic growth [29] Question: Impact of agricultural distress on the company - The company is somewhat insulated from direct agricultural impacts, as most customers are not specific ag manufacturers [33] Question: Assessment of Minnesota growth venture - The Minnesota growth venture has exceeded expectations and contributes significantly to the company's bottom line [35]

Core Insights - United Community Banks reported a 14% year-over-year increase in operating earnings per share for fiscal Q2 2025, reaching $0.66, driven by improvements in net interest margin and credit quality [14][20][21] - The net interest margin increased to 3.50%, up 14 basis points from the previous quarter, indicating effective management of deposit costs and a favorable loan mix [3][25] - Loan growth was reported at an annualized rate of 4.2%, with strong pipelines anticipated for fiscal Q3 2025, excluding the impact of the American National acquisition [3][21][24] Financial Performance - Net charge-offs were 18 basis points for the quarter, improving to 8 basis points when excluding Navitas, reflecting strong credit quality [4][21][27] - The efficiency ratio improved to 54.8%, a 22 basis point enhancement compared to the previous year, indicating better cost management [5][21] - Deposit growth, excluding mergers and public fund outflows, was 1.2% annualized, totaling $64 million for fiscal Q2 2025 [5][22] Capital Management - The CET1 ratio stood at 13.3%, maintaining a strong capital position above peer averages, which supports future growth and strategic flexibility [6][24][16] - The tangible common equity (TCE) ratio improved by 27 basis points, with all regulatory capital ratios stable and above peers [7][24] - Share repurchases totaled 507,000 shares for $14 million, with $86 million remaining in authorization for future buybacks [7][25][42] Strategic Initiatives - The company completed the acquisition of American National Bank, enhancing its footprint in South Florida and integrating new systems and branding [21][22] - Management is focused on recruiting high-quality lenders, particularly in the Alabama market, to support growth initiatives [15][36] - The company plans to opportunistically engage in share buybacks at lower price levels, while maintaining a cautious approach to M&A, targeting small high-performing institutions [11][42][48] Outlook - Management anticipates approximately five basis points of additional margin expansion in fiscal Q3 2025, driven by further reductions in deposit costs [16][39] - The loan growth pipeline is described as larger than the previous quarter, positioning the bank for increased activity in the second half of the year [11][21] - Discussions regarding potential securities portfolio restructuring are ongoing, as capital levels exceed targeted requirements [17][48]