West Bancorp., Inc. (NASDAQ:WTBA) Q4 2019 Earnings Conference Call - Final Transcript

Jan 24, 2020 • 11:00 am ET


West Bancorp., Inc. (NASDAQ:WTBA) Q4 2019 Earnings Conference Call - Final Transcript


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Brad L. Winterbottom

so I going to sound a little rough.

Fourth quarter, we had over $100 million of additions to our loan portfolio and it came really from all of our markets. Obviously, the biggest increase in the markets would be our three markets up in Minnesota that we added in March, as Dave said. But we had over $100 million in outstandings from September 30 to December 31, and then roughly about $220 million growth for the year. Those loans are really spread between C&I and real estate secured transactions.

As an example, our C&I outstandings at 12/31/18 was about $359 million; at the end of '19, it was about $431 million. Real estate secured transactions at the year-end '18 was $1.724 [Phonetic] billion versus year-end '19 of $1.943 [Phonetic] billion. We're gathering deposits. We are spending a little bit more money in technology to improve our deposit gathering. Our deposit gathering ability is up in our Minnesota markets that -- so we should do a better job of that in '20. And as I look at the pipeline today, we have robust activity, again, in all four markets. Things are perking very well.

With that, I'm going to turn it over to Harlee, and he's going to give us a little more insight as to asset quality.

Harlee N. Olafson

Thanks, Brad. I'm going to talk a little bit about the watchlists and credit trends, and then just some information on our -- we are -- just completed regulatory exam. But to start with, our watchlist is at a very low level. Even from our historical basis, we've had a low watchlist for a number of years, but it might be in the best position that it's been -- that I can remember. All credits within the watchlist are properly structured and performing on repayment. We have a very low level of non-accruals. We have zero credit loss potential within our non-accrual category, all are very well secured and performing.

From an overall portfolio perspective, we have a very seasoned portfolio that has continued to perform and grow. When we do our stress testing on that portfolio, we can see the total level of loan to value on the portfolio continues to decline on the commercial real estate side. And new credit that's being put within the portfolio is properly secured and backed up with strong individual guarantees.

We just had our regulatory exam with the FDIC. And in that exam, we did not have any risk rating changes within that exam that they have told us. So you can look at that along with our independent review of our loan files that we have continued to keep a very strong, consistent and accurate accounting of our credit and its risk ratings.

We go on to look at specific markets. Our eastern Iowa City market this last year had a tremendous year. And they increased their loan balances very -- by almost 25% over the year and also had a nice strong quarter.