West Bancorporation Sees Strong Q1 2026 Performance
West Bancorporation, Inc. has released its first quarter 2026 earnings conference call transcript, showcasing a strong performance in the sector. The company's Chief Executive Officer, Dave Nelson, welcomed participants on the call and thanked them for joining.
Nelson expressed his enthusiasm for the company's strong quarter, noting that as COVID-era five-year duration assets reprice, the company's margin is expected to continue improving. He also highlighted growth in deposits, with several attractive credit opportunities in the pipeline.
"We had a very strong quarter and look forward to continued earnings growth," Nelson stated. "Our loan balances have been flat, but we have had growth in our deposits. When loan demand increases, we will definitely find it." He emphasized that the company's credit quality remains pristine, with no loans past due 30 days at quarter end.
The Chief Risk Officer, Mr. Harlee Olafson, provided additional details on the company's credit quality, stating that the watch list is down 20% from year-end and stands at a very low 1.4% of total loans. The vast majority of the watch list is related to the trucking industry, which continues to face challenges due to low freight rates, excess capacity, and high diesel prices.
Olafson noted that the company's commercial real estate portfolio continues to perform exceptionally well, with diversified types of properties and locations. Stress tests have shown lower loan-to-values and good cash flow on a majority of credits, demonstrating the strong foundation of the credit quality.
The Bank President, Brad Winterbottom, provided an update on the company's loan portfolio, stating that it was flat compared to year-end 2025 at $3 billion in outstandings. Notable loan payoffs were experienced due to secondary market refinancing and asset sales, but these payoffs were backfilled with new opportunities at better interest rates.
Winterbottom emphasized that the company continues to experience loan restructurings adding real estate as collateral and construction projects moving to permanent financing, leading to a change in loan mix. He assured that the trend will continue into the second quarter but noted that the company is not losing customers.
The CEO also highlighted the company's commitment to technology investments to better serve its customers and create operational efficiencies. A quarterly dividend of $0.25 was declared by the board of directors, with a payment date set for May 20th.
