West Bancorporation Inc (WTBA) 2025 Q2 法說會逐字稿

(audio in progress) During today's conference call, we may make projections or other forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 regarding future events or the future financial performance of the company. We caution that such statements are predictions and that actual results may differ materially. Please see the forward-looking statement disclosures in our 2025 second quarter earnings release for more information about risks and uncertainties, which may affect us. The information we will provide today is accurate as of June 30, 2025, and we undertake no duty to update the information.

（音訊進行中）在今天的電話會議中，我們可能會根據 1995 年《私人證券訴訟改革法案》的安全港條款的含義，對未來事件或公司未來財務業績做出預測或其他前瞻性陳述。我們提醒，這些聲明只是預測，實際結果可能會有重大差異。有關可能影響我們的風險和不確定性的更多信息，請參閱我們 2025 年第二季收益報告中的前瞻性聲明披露。我們今天提供的資訊截至 2025 年 6 月 30 日都是準確的，我們不承擔更新資訊的義務。

With that, I'll turn the call over to Dave Nelson for his remarks.

說完這些，我將把電話轉給戴夫尼爾森 (Dave Nelson) 聽取他的發言。

Thank you, Jane. Good afternoon, everyone. Thank you for joining us, and thank you for your interest in our company. West Banc had another solid quarter, which was significantly better than second quarter of last year. First half earnings this year are about 54% higher than last year's earnings. Our journey back to top performing metrics is continuing as forecasted.

謝謝你，簡。大家下午好。感謝您的加入，也感謝您對我們公司的關注。West Banc 本季業績表現穩健，明顯優於去年第二季。今年上半年的收益比去年同期高出約54%。正如預期的那樣，我們重返最佳績效指標的旅程仍在繼續。

Our focus has been on relationship building and deposit growth. We still have a fair amount of asset repricing to benefit from this year and also during 2026, which will continue to improve our margin and earnings. We are gaining new relationships in all our markets and continue to have very strong asset quality.

我們的重點是建立關係和增加存款。今年以及 2026 年，我們仍可從相當數量的資產重新定價中受益，這將繼續提高我們的利潤率和收益。我們在所有市場都建立了新的關係，並且繼續保持非常強勁的資產品質。

We have declared a $0.25 per share dividend payable August 20 to shareholders of record as of August 6. Our stock is currently providing a yield in excess of 5%. Those are the end of my prepared remarks, and I'll now turn the call over to our Chief Risk Officer, Mr. Harlee Olafson.

我們宣布向 8 月 6 日登記在冊的股東派發每股 0.25 美元的股息，派息日期為 8 月 20 日。我們的股票目前的收益率超過 5%。我的準備好的發言到此結束，現在我將把電話轉給我們的首席風險長 Harlee Olafson 先生。

Thank you, Dave. Credit quality continues to be very strong at West Banc. At quarter end, we had one small 30-day past due loan that is now current. We have a number of enviable zeros. We have zero other assets. We have zero other real estate. We have zero doubtful accounts. We have zero nonaccruals and we have zero substandard loans. Our watch list consists of four relationships, three are trucking related, all are well secured and current on their payments. The other watch list credit is a small nonprofit that struggles with funding.

謝謝你，戴夫。西岸銀行的信貸品質持續保持強勁。在季度末，我們有一筆小額 30 天逾期貸款，目前已償還。我們擁有許多令人羨慕的零。我們沒有其他資產。我們沒有其他房地產。我們沒有可疑帳戶。我們沒有未提列貸款，也沒有次級貸款。我們的觀察名單包括四個關係，其中三個與卡車運輸有關，所有關係都很安全並且按時付款。另一個被列入觀察名單的是一家陷入資金困境的小型非營利組織。

There has not been a lot of new developments in our markets. So our commercial real estate portfolio continues to improve from both a loan-to-value and a debt service coverage perspective. Office property in our Des Moines market, like in many larger communities, is in a distressed situation. We are aware of numerous properties that have significant vacancy problems.

我們的市場沒有太多新的發展。因此，從貸款價值比和債務償還率的角度來看，我們的商業房地產投資組合都在持續改善。與許多較大的社區一樣，我們得梅因市場的辦公大樓物業處境艱困。我們知道許多房產有嚴重的空置問題。

Since there is more space available than there are tenants, it depresses the entire office market. A large percentage of our office property is owner-occupied. We have a handful of multi-tenant properties that we watch carefully. Currently, they are all performing well, but some have leases that will expire and their future health will depend on their -- keeping their tenants.

由於可用空間多於租戶數量，導致整個辦公市場低迷。我們的辦公物業很大一部分是自住的。我們擁有少量的多租戶房產，並對其進行了仔細的監控。目前，它們的經營狀況都很好，但有些公司的租約即將到期，它們未來的健康狀況將取決於他們是否能留住租戶。

Our average loan-to-value on nonowner-occupied office property is 65% and the debt service coverage is 1.35 times. Having strong customers with liquidity, strong global cash flows and varied income sources has served us well. With our commitment to our underwriting disciplines, we expect our credit portfolio to remain very strong. Our six markets are all thriving, and our team of experienced bankers continue to prospect for strong comprehensive relationships. At the end of all our prepared remarks, I'm available for any questions.

我們的非自住辦公物業的平均貸款價值比為 65%，債務償還率為 1.35 倍。擁有流動性強的客戶、強勁的全球現金流和多樣化的收入來源對我們很有幫助。憑藉我們對承保紀律的承諾，我們預計我們的信貸組合將保持強勁。我們的六個市場都蓬勃發展，我們經驗豐富的銀行家團隊繼續尋求建立牢固全面的關係。在我們所有準備好的演講結束時，我可以回答任何問題。

I will now turn it over to Todd Mather, our Chief Credit Officer and Business Banking Manager.

現在我將把發言權交給我們的首席信貸官兼商業銀行經理 Todd Mather。

Thank you, Harlee. For the quarter ended June 30, '25, our loan outstandings were down slightly at just under $3 billion. We experienced a few larger payoffs from asset sales and refinance activity. The majority of those assets were priced below current rate environment. We replaced those assets with quality new assets at better interest rates. Deposit gathering continues to be an emphasis, and we have been successful in attracting new depositors.

謝謝你，哈利。截至 2025 年 6 月 30 日的季度，我們的未償還貸款略有下降，略低於 30 億美元。我們從資產出售和再融資活動中獲得了一些較大的回報。其中大部分資產的定價低於目前利率環境。我們用利率較高的優質新資產取代了這些資產。吸收存款繼續成為我們的重點，我們已成功吸引新的存款人。

During the quarter, deposit balances increased just over $67 million. We remain selective in obtaining new loan opportunities, and those opportunities are less than in prior years. We are confident in our abilities to create and maintain positive relationships with our customers and prospects that we are pursuing in a highly competitive market.

本季度，存款餘額增加了 6,700 多萬美元。我們在獲得新的貸款機會時仍然很挑剔，而且這些機會比前幾年要少。我們有信心在競爭激烈的市場中與我們的客戶和潛在客戶建立並維持積極的關係。

I will now turn it over to Brad Peters, our Minnesota Group President.

現在我將把麥克風交給明尼蘇達集團總裁布拉德彼得斯。

Thanks, Todd. Good afternoon, everyone. I'm going to provide a brief update on our Minnesota banks. Our clients remain cautious with the economic uncertainty in the marketplace. Our bankers have been diligent in staying close to our clients, and we have increased our frequency of calls to our customer base. We continue to target deposit-rich business banking opportunities. We have a disciplined calling approach that has enabled our team to be successful in attracting new business. Our seasoned group of bankers and our business banking focus set us apart from our competition.

謝謝，托德。大家下午好。我將簡要介紹明尼蘇達州銀行的最新情況。我們的客戶對市場上的經濟不確定性保持謹慎。我們的銀行家一直勤勉地與客戶保持密切聯繫，我們也增加了打電話給客戶群的頻率。我們繼續瞄準存款豐富的商業銀行機會。我們擁有嚴謹的呼叫方式，這使我們的團隊能夠成功吸引新業務。我們經驗豐富的銀行家團隊和對商業銀行業務的關注使我們在競爭中脫穎而出。

We are also targeting high-value retail deposits. Our bankers have been successful in winning the retail deposits of our business owners and key executives. We are also attracting new deposits from higher-earning individuals in our communities. Each of our Minnesota regional centers have seen significant retail deposit growth. We do not have specific production goals for our bankers, but instead measure our bankers on the right activities that will drive results.

我們也瞄準了高價值零售存款。我們的銀行家成功贏得了企業主和主要高管的零售存款。我們也吸引了來自社區高收入者的新存款。我們每個明尼蘇達州區域中心的零售存款都顯著成長。我們沒有為銀行家設定具體的生產目標，而是根據能帶來成果的正確活動來衡量銀行家。

Measuring activities requires our local leaders to be actively engaged with their teams with consistent inspection of calling efforts. This method has proven to be successful as we expand our market share in our communities. All of our building construction projects are now complete. We designed each of our facilities with well-pointed entertainment areas that allow our teams to host client and prospect events in quality small group meetings.

衡量活動需要我們當地的領導人積極參與他們的團隊並持續檢查呼叫工作。隨著我們在社區中擴大市場份額，這種方法已被證明是成功的。我們所有的建築施工項目現已完工。我們為每個設施設計了完善的娛樂區，以便我們的團隊能夠以高品質的小組會議形式舉辦客戶和潛在客戶活動。

These unique facilities align perfectly with our strategy of building business based on strong relationships. Our team has embraced this and has done an outstanding job of leveraging our buildings to grow our business. Those are the end of my comments. I will now turn the call back over to Jane.

這些獨特的設施與我們基於牢固關係建立業務的策略完美契合。我們的團隊接受了這一點，並出色地利用我們的建築來發展我們的業務。我的評論到此結束。我現在將把電話轉回給簡。

Thanks, Brad. I'll just make a few financial related comments. As Todd mentioned, our loan balances decreased approximately $50 million in the second quarter as customers sold real estate assets or refinanced in the secondary market in the ordinary course of their businesses. We also saw a slight reduction in the utilization of commercial lines of credit.

謝謝，布拉德。我只想發表一些與財務相關的評論。正如托德所提到的，由於客戶在正常業務過程中出售房地產資產或在二級市場進行再融資，我們的貸款餘額在第二季度減少了約 5000 萬美元。我們也發現商業信用額度的使用率略有下降。

Core deposit balances increased approximately $195 million in the second quarter. An existing municipal customer raised funds through a bond offering for a construction project and those funds are expected to be withdrawn over the next couple of years as the construction project progresses. That was the primary reason for the large increase in core deposits.

第二季核心存款餘額增加約 1.95 億美元。現有的市政客戶透過發行債券為建設項目籌集資金，預計這些資金將在未來幾年內隨著建設項目的進展而被提取。這是核心存款大幅增加的主要原因。

Those deposits resulted in a reduction of brokered funding of approximately $127 million this quarter, along with an increase in our cash and short-term liquidity position. Net income was $8 million in the second quarter compared to $7.8 million in the first quarter of '25 and $5.2 million in the second quarter of 2024. Net income and net interest income continue to improve. As described earlier, credit quality remains very strong. So no provision for credit losses was recorded this quarter and there were no significant onetime items in noninterest income or noninterest expense in the second quarter.

這些存款導致本季經紀融資減少約 1.27 億美元，同時我們的現金和短期流動性狀況增加。第二季淨收入為 800 萬美元，而 2025 年第一季為 780 萬美元，2024 年第二季為 520 萬美元。淨收入和淨利息收入持續改善。如前所述，信貸品質仍然非常強勁。因此本季沒有記錄信貸損失準備金，第二季的非利息收入或非利息支出中也沒有重大的一次性項目。

The yield on the loan portfolio continues to improve as fixed rate assets reprice at higher yields. The second quarter loan yield was 5.59% compared to the first quarter's 5.52%. The improvement in loan yield in the second quarter was partially offset by a 4 basis point increase in the cost of deposits. We were fairly aggressive in lowering deposit rates last year when the Fed was lowering the federal funds rate. As the Fed has been holding rates since December, we do see some pockets of upward pricing pressure on deposits resulting in that slight increase in the second quarter.

隨著固定利率資產以更高的收益率重新定價，貸款組合的收益率持續提高。第二季貸款收益率為 5.59%，而第一季為 5.52%。第二季貸款收益率的改善被存款成本增加 4 個基點的部分抵銷。去年，當聯準會降低聯邦基金利率時，我們也相當積極地降低了存款利率。由於聯準會自去年12月以來維持利率不變，我們確實看到一些存款價格上漲的壓力，導致第二季存款略有增加。

Those are the completion of our remarks, and now we'll open it up for questions.

我們的發言到此結束，現在開始提問。

(Operator Instructions)

（操作員指示）

Nathan Race, Piper Sandler.

內森·雷斯，派珀·桑德勒。

Hi everyone, good afternoon, thanks for taking the questions. Question just maybe first on how you guys are seeing the client sentiment these days and just how the pipeline is looking ahead into the back half of the year from a loan growth perspective and appreciate payoffs are still somewhat of a headwind, but just any thoughts on how you see loan growth trending in the back half of the year and kind of what you're hearing and seeing from commercial clients these days?

大家好，下午好，感謝大家回答問題。首先要問的是，你們最近如何看待客戶情緒，從貸款成長的角度來看，下半年的貸款管道如何，而且升值回報仍然有一定的阻力，但是您如何看待下半年的貸款成長趨勢，以及您最近從商業客戶那裡聽到和看到的情況？

Well, I'll take that. This is Harlee Olafson. The pipeline is pretty robust right now. There's a number of projects within the pipeline. We're holding a little bit strong on our pricing thought process, not taking on underpriced assets at this time, but I do believe that we will have many good opportunities this year to maintain and grow our loan portfolio.

好吧，我接受。這是 Harlee Olafson。目前管道非常健全。目前有許多項目正在籌備中。我們對定價思維過程保持謹慎，目前不會接受低估的資產，但我相信今年我們將有很多好機會來維持和增加我們的貸款組合。

Okay. Great. Then maybe a question for Jane. Just curious how you're thinking about the margin trajectory in the back half of this year. Obviously, you had deposit costs tick up in the quarter. So just curious how you're thinking about the margin trajectory if the Fed remains on pause. And then maybe if we got one or two cuts as well in the back half of the year.

好的。偉大的。那也許可以問簡一個問題。只是好奇您如何看待今年下半年的利潤率走勢。顯然，本季您的存款成本有所上升。所以我很好奇，如果聯準會繼續暫停升息，您如何看待利潤率走勢。也許我們在今年下半年也會進行一兩次削減。

Yes, we do see opportunity for some improvement in the margin in the second half of the year. We still have a lot of opportunity for asset repricing in the loan portfolio. So that will continue. And we would expect that whether the Fed cuts rates or not.

是的，我們確實看到了下半年利潤率改善的機會。我們在貸款組合中仍有許多資產重新定價的機會。這種情況將會持續下去。無論聯準會是否降息，我們都會期待這一點。

So the asset repricing, we believe, will be there as we're projecting. And then the deposit side, we -- like I said, we're seeing pressure on deposits in certain pockets. So I would expect maybe deposit costs to be relatively kind of flat, maybe tick up a couple of basis points. I don't know that we'll be able to lower much until the Fed does some sort of move.

因此，我們相信資產重新定價將會如我們預測的那樣出現。然後是存款方面，就像我說的，我們看到某些領域的存款面臨壓力。因此我預期存款成本可能會相對平穩，也許會上升幾個基點。我不知道在聯準會採取某種行動之前我們是否能夠大幅降低利率。

Okay. Great. And there's been some notable M&A-related disruption here northern markets and around the Twin Cities and South of there. So just curious kind of what the upside is to maybe hire some additional producers in those markets, open other offices or just kind of maybe what the opportunity set looks like with the existing teams in those geographies?

好的。偉大的。北部市場以及雙城地區和南部地區出現了一些與併購相關的顯著混亂。所以我只是好奇，在這些市場僱用一些額外的製作人、開設其他辦事處有什麼好處，或者只是想知道這些地區現有團隊的機會是什麼樣的？

Yes, Nate, this is Brad Peters from Minnesota. There are opportunities in the marketplace. I think we have capacity in the markets that we serve to be able to take advantage of that. We already have to a certain degree, but I see continued opportunities in the future with, as you said, the M&A that's taken place and also the ongoing, I guess, opportunities by larger banks that have kind of abandoned the regional centers where we are located.

是的，內特，我是來自明尼蘇達州的布拉德彼得斯。市場上存在著機會。我認為我們在所服務的市場中有能力利用這一點。我們已經在某種程度上實現了這一點，但正如你所說，我認為未來仍有機會，包括已經發生的併購，以及那些已經放棄我們所在的區域中心的大型銀行持續提供的機會。

Okay. Great. That's good to hear. And then just going back to the balance sheet growth trajectory, Jane. I appreciate your comments that you had that municipal deposit flow in the quarter that helped drive the deposits up in the quarter, but it still seems like you guys had pretty strong deposit growth, notwithstanding that inflows. So just curious how you're thinking about deposit growth opportunities in the back half of the year as well based on kind of the pipeline to add clients?

好的。偉大的。聽到這個消息真好。然後回到資產負債表成長軌跡，簡。我很欣賞您的評論，即本季度的市政存款流有助於推動本季度存款的增長，但儘管有流入，但您的存款增長似乎仍然相當強勁。所以我很好奇，您如何看待下半年的存款成長機會，以及基於增加客戶的管道？

Yes. I mean I think that, that's -- our pipeline is just as focused on deposit relationships as it is credit relationships. So we continue to look for those strong customers in our regions, in our locations that can provide us to help build our strong balance sheet. So certainly, the focus is on growing deposits just as much as it is on the credit pipeline, and that's what our bankers are working every day on.

是的。我的意思是，我認為，我們的管道既關注存款關係，也關注信貸關係。因此，我們繼續在我們所在地區、我們所在位置尋找那些能夠幫助我們建立強大資產負債表的強大客戶。因此，當然，重點是增加存款，就像重點是增加信貸管道一樣，這也是我們的銀行家每天都在努力的事情。

Okay. Great. And then is this run rate that we saw in 2Q for expenses, a pretty good figure to use in the back half of this year? Or do you guys think some just general inflationary pressures that may drive it up slightly?

好的。偉大的。那麼，我們在第二季看到的這個費用運行率，對於今年下半年來說是一個相當不錯的數字嗎？或者你們認為一些一般的通膨壓力可能會略微推高價格？

I would say the second quarter is probably a good indicator. I don't see any significant items happening in the second half of the year.

我想說第二季可能是一個很好的指標。我認為下半年不會發生任何重大事件。

Okay, great. I appreciate all the color.

好的，太好了。我欣賞所有的色彩。

(Operator Instructions) It seems that we have no further questions for today. I would like to turn the conference back over to Jane Funk for any closing remarks.

（操作員指示）看來我們今天沒有其他問題了。我想將會議交還給 Jane Funk 做結束語。

All right. Thank you. We just want to thank everyone for joining us today. We appreciate your interest in West Banc, and have a good day. Thank you.

好的。謝謝。我們只想感謝大家今天的加入。感謝您對 West Banc 的關注，祝您有愉快的一天。謝謝。

Ladies and gentlemen, this concludes today's conference call. We thank you for your participation. You may now disconnect. Have a pleasant day, everyone.

女士們、先生們，今天的電話會議到此結束。我們感謝您的參與。您現在可以斷開連線。祝大家有個愉快的一天。