West Bancorporation (NasdaqGS:WTBA) Q4 2025 Earnings call January 29, 2026 03:00 PM ET Company ParticipantsBrad Peters - Minnesota Group PresidentBrad Winterbottom - PresidentDave Nelson - CEOHarlee Olafson - Chief Risk OfficerJane Funk - CFOTodd Mather - Chief Credit OfficerConference Call ParticipantsNathan Race - Managing Director and Senior Research AnalystOperatorLadies and gentlemen, thank you for standing by. My name is Colby, and I'll be your conference operator today. At this time, I'd like to welc ...

Financial Data and Key Metrics Changes - The company reported net income of $4.9 million, a decrease of $16.9 million or 77.5% compared to the previous quarter [10] - Diluted earnings per share were $0.16, down from $0.72 linked quarter [10] - Net interest income increased by $1.45 million or 2.7% compared to the linked quarter [14] - The tax equivalent net interest margin decreased by one basis point to 2.94% [14] Business Line Data and Key Metrics Changes - Loans increased to $4.77 billion, a linked quarter increase of $163.4 million or 3.5% [10] - The increase in loans was driven by $82.6 million in commercial real estate loans, $49.3 million in commercial loans, and $49.1 million in construction loans [10] - Non-performing assets increased to approximately $2.7 million, representing 0.42% of total assets [9][11] Market Data and Key Metrics Changes - The company’s securities portfolio was $2.56 billion, a decrease of $174.2 million or 6.4% from the previous quarter [11] - Deposits increased by $329.6 million or 5% on a linked quarter basis [13] Company Strategy and Development Direction - The company is focused on repositioning its available-for-sale (AFS) securities portfolio to enhance future net interest income and provide balance sheet flexibility [3] - There is an ongoing interest in potential acquisitions and hiring due to market disruptions caused by larger banks [24] Management's Comments on Operating Environment and Future Outlook - The Texas economy is expected to grow at a faster pace than the overall U.S. growth rate [5] - Management anticipates a slight increase in net interest margin for the fourth quarter, driven by loan growth and securities restructuring [19][20] Other Important Information - The company issued $150 million of subordinated notes at a fixed to floating rate [4] - The allowance for credit losses increased to $48.5 million, while the allowance for loan losses as a percentage of total loans decreased to 0.95% [11] Q&A Session Summary Question: What is the expected net interest margin for the fourth quarter? - Management expects the net interest margin to be up slightly due to the impact of subordinated notes and loan growth [19][20] Question: Any updates on potential acquisitions or hiring? - Management is looking at a few institutions for potential acquisition and has made some new hires due to market disruptions [24] Question: How is the loan pipeline looking entering the fourth quarter? - The loan pipeline rebounded to $1.8 billion, indicating strong future loan production [32] Question: What is the pricing competition like in the market? - There is intense competition in both commercial real estate and C&I lending, but the company is maintaining a disciplined pricing approach [34] Question: What are the expectations for trust fee growth? - Management anticipates double-digit revenue growth in trust fees due to a strong team and new client acquisitions [42] Question: How many rate cuts are expected through year-end and into 2026? - Management anticipates at least two rate cuts next year, depending on inflation and employment conditions [44]