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 wel ...

West Bancorporation (NasdaqGS:WTBA) Q4 2025 Earnings call January 29, 2026 03:00 PM ET Company ParticipantsBrad Peters - Minnesota Group PresidentBrad Winterbottom - Bank PresidentDave Nelson - CEOHarlee Olafson - Chief Risk OfficerJane Funk - CFOTodd Mather - Chief Credit OfficerConference Call ParticipantsNathan James 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 l ...

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 - Net income for Q4 2025 was $7.4 million, compared to $9.3 million in Q3 2025 and $7.1 million in Q4 2024, while net income for the full year 2025 was $32.6 million, up from $24.1 million in 2024, representing a 35% increase year-over-year [4][14] - The company executed a securities loss trade, realizing a pre-tax net loss of $4 million from the sale of $64 million in securities available for sale, which is expected to improve the balance sheet flexibility [4][14] - Net interest margin increased by 11 basis points from Q3 and 49 basis points from Q4 last year, while the cost of deposits declined by 28 basis points from Q3 and 64 basis points from Q4 last year [15] Business Line Data and Key Metrics Changes - Loan outstandings were slightly down at just under $3 billion due to larger payoffs from asset sales and refinancing activity, with a focus on replacing those assets with quality new assets at better interest rates [8][9] - Core deposit balances, excluding brokered funds, increased approximately $212 million in Q4 and $223 million for the year, with growth seen across retail, commercial, and public fund deposits [15] Market Data and Key Metrics Changes - The watch list for loans increased but remains low at 1.7% of total loans, with 70% of the watch list related to the trucking industry, which is currently facing challenges [6] - The company is experiencing strong credit quality with no past dues over 30 days, no nonaccruals, and no substandard loans [6] Company Strategy and Development Direction - The company is focused on maintaining strong customer relationships and is actively pursuing new business opportunities, particularly in the wake of recent M&A activity in the market [12][13] - The strategy includes targeting high-quality retail deposits and business banking opportunities, leveraging community relationships to grow the business [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, anticipating loan growth to pick up with economic expansion and a strong position for growth [4] - The outlook for deposits is uncertain due to potential volatility from public funds, but the company aims for continued mid-single-digit growth in loans and deposits [26] Other Important Information - The company declared a $0.25 dividend payable on February 25, 2026, to shareholders of record as of February 11, 2026 [4] Q&A Session Summary Question: Can you walk us through some of the loan growth dynamics in the quarter? - The company experienced elevated payoffs, including a specific customer selling medical office buildings for over $50 million, with expectations for continued activity in the first quarter [20][21] Question: Can you update us on the amount of loans repricing over the balance of this year? - Approximately $400 million in fixed-rate loans are set to reprice in 2026, with an expected yield pickup of around 1.5%-2% [24] Question: Are you expecting continued mid-single-digit growth in loans and deposits this year? - The outlook for deposits is uncertain due to public funds volatility, but growth in retail and commercial deposits is anticipated [26] Question: What is the potential for additional securities portfolio repositionings in 2026? - The company will continue to evaluate its liquidity and cash needs for potential repositionings, with no set goals for 2026 [28] Question: What is the starting point for the margin given the recent repositioning? - The current margin is around 2.5%, with expectations for improvement throughout the year [30]

West Bancorporation (NasdaqGS:WTBA) Q4 2025 Earnings call January 29, 2026 03:00 PM ET Speaker6Ladies 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 welcome you to the West Bancorporation, Inc., Q4 2025 earnings conference call. All lines have been placed on mute to prevent any background noise, and after the speaker's remarks, there will be a question-and-answer session. If you'd like to ask a question at that time, please p ...

Financial Data and Key Metrics Changes - In Q2 2025, Cullen Frost earned $155.3 million or $2.39 per share, compared to $143.8 million or $2.21 per share in the same quarter last year, representing a year-over-year increase of 8.8% in earnings [5] - Return on average assets was 1.22% and return on average common equity was 15.64%, compared to 1.18% and 17.08% in the same quarter last year [5] - Average deposits increased to $41.8 billion, up 3.1% from $40.5 billion in Q2 2024, while average loans grew to $21.1 billion, a 7.2% increase from $19.7 billion [6] Business Line Data and Key Metrics Changes - Consumer deposits grew by 3.7% year-over-year, with checking household growth at an industry-leading rate of 5.4% [9][10] - The commercial business saw average loan balances increase by $817 million or 4.9% year-over-year, with commercial real estate (CRE) balances growing by 6.8% and energy balances increasing by 22% [11] - The consumer real estate loan portfolio grew by $600 million year-over-year, representing a 22% growth rate [10] Market Data and Key Metrics Changes - The expansion efforts contributed to 37% of total loan growth and 44% of total deposit growth year-over-year [15] - The company opened its 200th location, indicating a significant expansion strategy in dynamic markets [6][7] - The overall credit quality remains strong, with non-performing assets declining to $64 million from $85 million at year-end [13] Company Strategy and Development Direction - The company continues to focus on organic growth through expansion in Texas, with no current plans for inorganic growth or M&A activity [84][88] - Management emphasizes a commitment to customer service and maintaining a strong capital base, prioritizing dividend protection [32][34] - The strategy is expected to yield earnings accretion in 2026, with a focus on long-term growth rather than immediate returns [41][44] Management's Comments on Operating Environment and Future Outlook - Management acknowledges increased competition in the lending market, particularly from smaller banks, but remains confident in their pricing strategy and customer relationships [30][113] - The company expects net interest income growth for the full year to be in the range of 6%-7%, despite anticipated Fed rate cuts [22][23] - There is optimism regarding deposit growth in the second half of the year, with expectations for seasonal trends to return [49][50] Other Important Information - The net interest margin improved to 3.67%, up 7 basis points from the previous quarter, driven by a shift towards higher-yielding loans and securities [17] - The investment portfolio averaged $20.4 billion during the quarter, with a taxable equivalent yield of 3.79% [19] - The company recorded a net unrealized loss on the available-for-sale portfolio of $1.42 billion, slightly up from $1.4 billion in the previous quarter [18] Q&A Session Summary Question: Loan growth and pricing competition - Management noted that competition has increased, particularly in commercial real estate, leading to price compression [30] Question: Capital growth and utilization - The focus remains on building capital and protecting dividends, with no immediate plans for stock repurchase [32][34] Question: Earnings growth and investment returns - Management expects to see benefits from investments in expansion starting in 2026, with a focus on long-term growth [41][44] Question: Deposit growth and trends - There is encouragement regarding the stabilization and potential growth of non-interest-bearing deposits in the second half of the year [49][50] Question: Non-interest income outlook - Management anticipates growth in non-interest income driven by increased customer volume and a healthier stock market [94][99]

Financial Data and Key Metrics Changes - The company reported an FFO beat of $0.02 per share, driven by higher NOI due to lower expenses and improved contributions from the hospitality business [21][22] - Same-store cash NOI exceeded expectations for the quarter, with a year-end occupancy rate of 93%, reflecting an increase of almost 400 basis points since the lows at the end of Q1 2024 [23][24] - The company achieved a FAD outperformance of $65 million, with nearly $20 million occurring in Q4 alone [22][41] Business Line Data and Key Metrics Changes - The hospitality business saw a solid fourth quarter of activity, contributing positively to overall performance [21] - Leasing activity was strong, with almost 800,000 sq ft of Manhattan office leasing in Q4, bringing the annual total to 2.6 million sq ft [22][24] - The company is on track to achieve its 2026 leasing goals, including a same-store occupancy objective of 94.8% by year-end [24] Market Data and Key Metrics Changes - Tax collections in New York City increased by 8.5% in 2025, primarily driven by growth in personal income [7] - The Big Five banks reported a year-over-year earnings increase of 6.7%, with investment banking revenues up 12.6% [9] - The company anticipates a significant increase in transaction volume for 2026, projecting it to exceed the $23 billion recorded in 2025 [10] Company Strategy and Development Direction - The company is focused on executing a $7 billion refinancing strategy and a $2.5 billion disposition plan, with various stages of financing already in progress [16][17] - There is a strong appetite for investment in New York City, with the company actively engaging with global investors to deploy capital [10][18] - The management emphasizes the importance of human capital, expecting to generate over $100 million in fee revenue from institutional investors [12] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the fiscal stability of New York City, despite potential budget deficits, citing a strong business economy [7][8] - The company views 2026 as a promising year for the commercial office sector, with expectations of occupancy gains and business growth [9][11] - Management highlighted the disconnect between the value of the company's assets and its share price, indicating optimism for future stock performance [12][51] Other Important Information - The company is launching fundraising for a new fund focused on senior credit lending, aiming to expand its fund business [19] - The management noted that the credit rating of New York City remains strong, reaffirmed by S&P, which is crucial for navigating near-term risks [8] Q&A Session Summary Question: How are tenants incorporating AI into their business plans? - Management noted that there have been no instances of tenants downsizing due to AI; rather, many are experiencing growth and increased demand for office space [27][28] Question: What areas of interest did overseas investors express during recent meetings? - Investors are looking to diversify their portfolios, with a strong interest in New York City real estate as a safe investment [31][32] Question: Can you provide details on the timing of rental revenue recognition from leases that have commenced? - Management indicated that the timing of revenue recognition is dependent on when tenants finish their space and move in, making it difficult to provide specific quarterly guidance [36][38] Question: What is the impact of asset sales on occupancy gains? - Management clarified that the occupancy objective is primarily driven by organic leasing rather than asset sales, although some lower-occupancy sales could have a nominal effect [70] Question: How does the board approach dividend decisions? - The board takes a holistic view of the company's long-term plans and does not base dividend decisions solely on short-term earnings fluctuations [48][50]

SL Green Realty (NYSE:SLG) Q4 2025 Earnings call January 29, 2026 02:00 PM ET Company ParticipantsAlexander Goldfarb - Mnaging DirectorAnthony Paolone - Executive DirectorBrendan Lynch - DirectorCaitlin Burrows - VPHarrison Sitomer - Chief Investment OfficerJohn P. Kim - Mnaging DirectorMarc Holliday - Chairman and CEOMatt J. DiLiberto - CFOMike Lewis - Cyber Security Group ManagerNicholas Yulico - Mnaging DirectorRonald Kamdem - Mnaging DirectorSteve M. Durels - EVP and Director of Leasing and Real Propert ...

Financial Data and Key Metrics Changes - In Q2 2025, Cullen/Frost earned $155.3 million or $2.39 per share, compared to $143.8 million or $2.21 per share in the same quarter last year, representing a year-over-year increase of 8.5% in earnings per share [5] - Return on average assets was 1.22% and return on average common equity was 15.64%, compared to 1.18% and 17.08% in the same quarter last year [5] - Average deposits increased to $41.8 billion, up 3.1% from $40.5 billion in Q2 2024, while average loans grew to $21.1 billion, a 7.2% increase from $19.7 billion [6] Business Line Data and Key Metrics Changes - Consumer deposits grew by 3.7% year-over-year, with checking household growth at an industry-leading rate of 5.4% [9][10] - The commercial business saw average loan balances increase by $817 million or 4.9% year-over-year, with commercial real estate (CRE) balances growing by 6.8% and energy balances increasing by 22% [11] - The consumer real estate loan portfolio grew by $600 million year-over-year, representing a 22% growth rate [10] Market Data and Key Metrics Changes - Expansion efforts contributed to 37% of total loan growth and 44% of total deposit growth year-over-year [15] - The expansion now represents 9.6% of company loans and 6.6% of company deposits [9] - New commercial relationships increased by 9% over the first quarter, with 1,060 new relationships recorded in Q2 [12] Company Strategy and Development Direction - The company continues to focus on organic growth through expansion in Texas, having opened its 200th location [6][7] - Management emphasizes a durable and scalable growth strategy, with plans to continue identifying new locations for expansion [9] - The company is not currently interested in pursuing M&A opportunities, preferring to focus on organic growth and customer service [86][87] Management's Comments on Operating Environment and Future Outlook - Management expects net interest income growth for the full year to fall in the range of 6%-7%, with net interest margin improvement of about 12-15 basis points [22][23] - The company anticipates that the rate of growth in expenses will decrease over time as investments in technology and expansion begin to pay off [43] - Management is optimistic about the economic outlook and expects to see benefits from expansion efforts in 2026 [41][45] Other Important Information - The net unrealized loss on the available-for-sale portfolio at the end of the quarter was $1.42 billion, slightly up from $1.4 billion in the previous quarter [18] - Non-interest income is expected to grow in the range of 3.5%-4.5%, an increase from prior guidance [23] Q&A Session Summary Question: What are the current trends in loan pricing and competition? - Management noted that competition has increased, particularly in commercial real estate, leading to price compression [30][31] Question: How is the company approaching capital growth and utilization? - The focus remains on building capital, with a priority on protecting dividends, and no immediate plans for stock repurchase [32][34] Question: When can shareholders expect to see benefits from recent investments? - Management expects accretion from expansion efforts to begin in 2026, with a gradual increase over time [41][45] Question: What is the outlook for deposit growth? - Management is optimistic about deposit growth in the second half of the year, with expectations for non-interest-bearing deposits to stabilize [49][50] Question: How does the company view M&A opportunities? - The company is not interested in pursuing M&A, focusing instead on organic growth strategies [86][87]

Financial Data and Key Metrics Changes - The company reported a Funds From Operations (FFO) beat of $0.02 per share, driven by higher Net Operating Income (NOI) due to lower expenses, net of reimbursements [19] - The same-store cash NOI was better than expected for the quarter, with a year-end occupancy rate of 93%, reflecting an increase of almost 400 basis points since the lows at the end of Q1 2024 [21][22] - The company exceeded initial guidance for Funds Available for Distribution (FAD) by $65 million, with nearly $20 million of that occurring in Q4 alone [20] Business Line Data and Key Metrics Changes - The hospitality business saw a solid fourth quarter of activity, contributing positively to overall performance [19] - The leasing team closed out almost 800,000 sq ft of Manhattan office leasing in Q4, bringing the annual total to 2.6 million sq ft [20] - The company is on track to achieve a same-store occupancy objective of 94.8% by the end of 2026, with 142,000 sq ft signed in January and a pipeline of over 1 million sq ft [22] Market Data and Key Metrics Changes - Tax collections in New York City were up 8.5% in 2025, largely due to growth in personal income, indicating a strong business economy [6] - The Big Five banks reported a 6.7% year-over-year increase in profits, with investment banking revenues up 12.6% [8] - The company anticipates transaction volume for 2026 to exceed last year's $23 billion, facilitated by a $7 billion refinance plan and a $2.5 billion disposition plan [9] Company Strategy and Development Direction - The company is focused on executing a $7 billion financing strategy, with significant refinancings planned for key properties [14] - There is a strong emphasis on capitalizing on the tightening senior borrowing market for quality assets and sponsors [14] - The company aims to enhance its asset management business, launching a new fund focused on senior credit lending in 2026 [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fiscal stability of New York City, despite potential budget deficits, citing a strong business economy and tax revenue growth [6][7] - The company believes 2026 is shaping up to be a stellar year for the commercial office sector, with strong fundamentals and continued leasing activity [7][8] - Management noted that the appetite for investment in New York remains strong, with significant interest from global investors [9][31] Other Important Information - The company is experiencing a resurgence in interest from international investors, particularly in New York City real estate, which is viewed as a safe investment [30] - The company has a diverse group of assets for sale, including stabilized office, development sites, and retail, with a high degree of confidence in executing its disposition plan [42][43] Q&A Session Summary Question: How are tenants incorporating AI into their business? - Management noted that there have been no instances of tenants downsizing due to AI; rather, many are experiencing growth and increased demand for office space [25] Question: What areas of interest did overseas investors express during meetings in Asia? - Investors are looking to deploy capital in New York City, viewing it as a safe investment with potential for double-digit returns [29] Question: What is the timing for recognizing additional rental revenue from leases that have commenced? - Management indicated that the recognition of revenue is dependent on when tenants finish their space and move in, making it difficult to provide a specific timeline [34] Question: How does the FAD outperformance impact views on the dividend? - Management clarified that FAD and dividend are unrelated topics, and the dividend policy will be determined based on a holistic view of the company's financial health [39][44] Question: What is the expected impact of asset sales on occupancy gains? - Management stated that the occupancy objective is nominally affected by asset sales, and they are confident in achieving their target without relying heavily on the disposition plan [66]