ウエスト・バンコーポレーション（WTBA）2026年第3四半期決算説明会：利益は25％増加、貸出金は再び増加に転じる

重要なポイント

• 第3四半期の純利益は前年同期比25%増の1,160万ドルとなりました。2026年最初の9カ月間の純利益は前年同期比32%増の3,330万ドルに増加しました。
• 純利息収入は2025年第3四半期から390万ドル（17%）増加しました。純利ざやは前四半期比で8ベーシスポイント、前年同期比で41ベーシスポイント拡大しました。
• 貸出金残高は第2四半期から1.5%増加して約30億ドルとなり、5四半期ぶりの前四半期比増加を記録しました。
• 信用力は引き続き堅調で、30日を超える返済延滞債権、利息不計上貸出金（ノンアクルーアルローン）、所有動産・不動産（OREO）はいずれも発生していません。要監視先債権は総貸出金の0.6%でした。
• 経営陣は第4四半期の貸出パイプラインを堅調と評しており、判明している繰上返済予定額は第3四半期開始時の約9,000万ドルから約3,000万ドルに減少しました。
• 取締役会は1株あたり0.26ドルの四半期配当を承認しました。11月11日時点の株主に対し、11月25日に支払われます。

主要財務データ

事業および営業業績

リファイナンスや資産売却に伴う返済が続いたものの、貸出金残高は前四半期比で再び増加に転じました。経営陣によると、顧客は競合銀行に取引口座を移すのではなく、主に流動性を確保するために資産を売却しているとのことです。成長の一因は、既存顧客が資産基盤を拡大したことによるものです。

貸出パイプラインは同行の対象市場全体に広く分散していました。経営陣は、デモインでの2,500万ドル、アイオワシティでの2,300万ドル、ミネソタでの2,200万ドルなど、最近完了した大型取引を挙げました。

ミネソタ州での事業は、貸出金と預金の両方でわずかな成長を記録しました。同社はこの地域での進展について、関係重視の法人向けバンキング、規律ある顧客アプローチ、迅速な意思決定によるものとしています。

商業用不動産は引き続き想定通りのパフォーマンスを維持しました。要監視先債権は主に運輸分野に集中していましたが、経営陣はこれらについて十分な担保が確保されており、適切な構造で、予定通りの返済が行われていると述べました。

経営展望

経営陣は、第4四半期の貸出成長の機会が潜在的に「好調」になる可能性があると説明する一方で、保留中の取引や見込み顧客との関係はまだ変化する可能性があると注意を促しました。

今後12カ月間で約5億5,000万ドルの固定金利貸出が改定（リプライス）される予定です。これらの加重平均金利は約4.5%ですが、新規貸出の実行金利は6%台後半となっています。

同社は資産のリプライスが今後1年間の純利ざやを後押しすると見込んでいます。ただし、同行の預金ベータ（政策金利に対する預金金利の感応度）が比較的大きいため、追加の短期金利引き上げが行われた場合、利ざやの拡大速度が鈍化する可能性が高いとしています。

第4四半期の費用は2026年を通じて記録された水準と同程度にとどまる見込みです。経営陣は2027年および2028年に向けたテクノロジーやプロダクトへの支出拡大を検討していますが、具体的な金額は確定していません。

リスクと注目領域

市場が金利上昇を予期し始めて以降、預金獲得競争と価格圧力が増加しました。経営陣は、現在の金利サイクルにおける預金ベータが前回の利上げサイクルと同水準になると予想しており、これがさらなる利ざや拡大の制約要因になり得ると見ています。

貸出の伸びは引き続き、顧客による資産売却やセカンダリー市場でのリファイナンスの影響を受けやすい状況にあります。また、強固なパイプラインにもかかわらず、経済および政治の不透明感と金利変動により、新規の取引活動は比較的に穏やかな水準にとどまっています。

アナリスト質疑応答の要点

• 貸出の伸び：経営陣は、第3四半期開始時に判明していた約9,000万ドルの返済を吸収しつつ貸出を拡大できたと述べました。電話会議の時点で、年末までに予定されている既知の返済額は約3,000万ドルでした。
• マージン感応度：預金コストの上昇により純利ざやの改善速度は鈍化するものの、必ずしも悪化に転じるわけではないと予想されています。固定金利貸出のリプライスが一定の相殺効果をもたらす見込みです。
• 資産の質：要監視先の借り手は引き続き予定通りの返済を行っています。経営陣は借り手に改善計画を実行する時間を与えつつ、強固な担保ポジションを維持することに注力しています。
• 預金戦略：価格競争の再燃に伴い、預金の維持・拡大は貸出の拡大と同等に重要となっています。
• 費用の優先順位：テクノロジーおよびプロダクトへの投資は、2027年と2028年に同社の直近のペースを上回る費用増加をもたらす可能性が最も高い分野です。

決算説明会文字起こし全文

決算説明会の完全なトランスクリプト

経営陣による説明

Operator

Hello, everyone. Thank you for joining us, and welcome to the West Bancorporation, Inc. Q3 Earnings Conference Call. [Operator Instructions] I will now hand the conference over to Jane Funk, CFO. Please go ahead.

Jane Funk

Thank you. Good afternoon, everybody. I'm Jane Funk, the CFO at West Bancorporation, Inc. and I'd like to welcome the participants on our call today, and thank you for joining us.

With me today are Dave Nelson, CEO; Harlee Olafson, Chief Risk Officer; Brad Winterbottom, our Bank President; and Brad Peters, our Minnesota Group President. I'll start by reading our fair disclosure statement.

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 disclosure in our 2026 third quarter earnings release for more information about risks and uncertainties, which may affect us. The information we provide today is accurate as of September 30, 2026, and we undertake no duty to update the information. And with that, I'll turn it over to Dave Nelson.

David Nelson

Thank you, Jane, and good afternoon, everyone. Thank you for joining us. We appreciate your interest in West Bank.

I have a few general comments, and then we'll turn the call over to others who will provide more details. West Bank had another strong quarter, and our earnings per share continues to increase as expected. Our Board of Directors approved a $0.26 per share quarterly dividend payable Wednesday, November 25 to shareholders of record as of Wednesday, November 11.

About the only thing that hasn't been enviable about West Bank this year has been our flat loan growth. We had good loan production, but our net loan growth was hampered by customers selling assets.

There are likely a couple more coming sometime next year, but it's likely to subside during 2027. We did have some loan growth this past quarter, and we have a solid loan pipeline that is favorable. West Bank does not have credit problems and has not had any for a very long time.

Our calling efforts, market disruption, and asset repricing will all continue to favorably impact our margin. All of our performance metrics are good and continue to strengthen. Those are my prepared comments. I'd now like to turn the call over to Mr. Harlee Olafson, our Chief Risk Officer.

Harlee Olafson

Thank you, Dave. Credit quality is very strong at West Bank. We have 0 past dues over 30 days, no other real estate, and no nonaccruals.

Our watch list is only 0.6% of total loans. The majority of our watch list credits are in the transportation business. All are well secured and properly structured. After going through a time when opportunities for new business seem quite limited, we have now seen an acceleration in new closed business and have a very robust pipeline.

We continue to maintain our underwriting standards, and they include strong balance sheets, strong global cash flow, and liquidity from our customers and prospects. Our diversified commercial real estate portfolio continues to perform as expected.

After all our prepared remarks, I'm available for questions. And I now turn it over to Brad Winterbottom, our Bank President.

Brad Winterbottom

Thanks, Harlee. For the quarter ended 9/30/26, our loan portfolio increased 1.5% when compared to the second quarter. We're right at $3 billion in outstandings.

This is the first quarter in the past 5 quarters that we've experienced an increase in outstandings from quarter-to-quarter.

We continue to experience notable payoffs as a result of secondary market refinancing and asset sales. We're not losing customers, but they're selling assets to gain liquidity. We were able to add to our loan portfolio during the quarter due to existing customers adding to their asset base with new and/or proven assets.

We still believe new activity is mild due to the economic and political issues we're facing. However, our pipeline going into the fourth quarter is very positive. As always, deposit gathering sales efforts continue to be an emphasis in the markets we serve, and they are extremely competitive. Those are my remarks. I'll turn it over to Brad Peters.

Bradley Peters

Thanks, Brad. Good afternoon, everyone. I'm going to provide you a brief update on our Minnesota banks. Our expansion into Minnesota began with our first full-service bank in Rochester opening 10 years ago.

We grew our presence in Minnesota early in 2019 by expanding into St. Cloud, Mankato, and Owatonna. Each regional center has strong vibrant markets with diverse businesses driving their respective economies.

Although it has been nearly 8 years since our recent expansion, we are still relatively new to the marketplace and continue to introduce West Bank to our communities. Our relationship-based model with a business banking focus has allowed us to grow while maintaining a small number of employees.

Our clients like the fact that they can count on West Bank to be responsive with quick decisions and a predictable, common-sense approach to banking. Our disciplined calling approach has driven results.

Our business banking focus and our seasoned team of bankers set us apart from the competition. We have also strategically invested in unique facilities, offering our teams the opportunity to entertain and engage in quality conversations with our clients and prospects.

This relationship-building strategy has been a key in growing our commercial banking business. We are also winning the personal banking of our business owners, key executives, and high-value retail prospects in our communities.

We continue to see our clients challenged with the uncertainty in the economy and interest rate volatility. Our bankers have been diligent in staying close with our clients and have increased calling activities to better manage relationships.

Despite those challenges, we continue to see slight growth in both deposits and loans. Those are the end of my comments. I will now turn the call back over to Jane.

Jane Funk

Thanks, Brad. Net income for -- was $11.6 million for the third quarter, and that compares to $9.3 million in the third quarter of 2025 and represents a 25% increase in net income. Year-to-date, our net income is $33.3 million, which is 32% higher than the first 9 months of 2025.

Net interest income continues to improve from improvement in our net interest margin. Net interest income increased $3.9 million or 17% compared to third quarter of last year, and our margin increased 8 basis points compared to the previous quarter and 41 basis points compared to the third quarter of last year.

Our cost of deposits increased 3 basis points compared to the previous quarter, but has declined 41 basis points compared to third quarter of last year. As described earlier, credit quality remains pristine and no provision for credit losses was recorded this quarter.

Noninterest expenses remained well controlled with a 3% increase from the third quarter of last year. And year-to-date, noninterest expenses are up just 2.7% compared to the first 9 months of 2025. Those are the end of our prepared remarks, so we will open it up for questions.

Operator

[Operator Instructions] Your first question comes from the line of Brendan Nosal with Hovde.

質疑応答

Brendan Nosal

Maybe starting off here on loan growth. As you folks noted, really strong quarter, probably one of the strongest you've had in several years.

Maybe just to start off, can you just talk about what changed during the quarter versus the past 12 months that allowed you to post more visible loan growth?

David Nelson

Well, entering into the third quarter, looking at our pipeline, which is, kind of, when we're talking to our bankers, we probably had known around $90 million in payoffs that were coming.

They were getting refinanced or being sold. All those things took place. Right now, we're sitting at about $30 million that we know that's going to pay off -- supposed to pay off between now and the end of the year. So I think that we've done a nice job covering up the payoffs production-wise, and we've added -- and obviously, we've added a few more nice big transactions. Existing customers just expanding their asset base.

Brendan Nosal

Okay. All right. That's helpful. And then, kind of, as we look forward from here, I mean, certainly it sounds like pipelines are still strong. And the known amount of payoffs is smaller than it was 90 days ago. I mean that tells me that growth should be pretty robust in the fourth quarter, but I'm, kind of, curious how you, kind of, see the pace as we wrap up the year.

David Nelson

I would say that robust is a good word. We're not telling you what we think because there's still a lot of things that could happen with some of these transactions or relationships that we're chasing, but it does look good for us.

Brendan Nosal

Okay. Okay. Great. Maybe circling to the net interest margin, nice margin expansion this quarter. Just, kind of, curious how the Fed has shifted to raising short-term rates again. Just talk about the near-term margin impact from the September rate hike and to the extent that we get additional rate hikes either later this year or early next year, what that would do to your margin?

Jane Funk

Yes. I think the rate hike certainly slowed down our margin improvement. We've got a fairly high beta deposit base. And so with each incremental increase, that will slow down our net interest margin improvement.

I mean we do still expect a lot of asset repricing over the next 12 months to help offset that. So we don't necessarily foresee a squeeze on margin, but just probably slowdown in that improvement.

Brendan Nosal

Okay. That's really helpful, Jane. Maybe moving over to asset quality. Any updated thoughts on the small amount of criticized assets that you still have on the balance sheet and, kind of, what resolution could look like in terms of ultimate outcome or timing?

Harlee Olafson

Sure. We have a few assets on our watch list. The ones that we have, our first approach is always to make sure that they are well secured.

And if they -- if we improve our security position, we generally give them some time to work a plan that they might have. Otherwise, if the plan doesn't go forward in an appropriate way, then we take further steps.

But our general plan with our watch list type credits is to show continual improvement with them from a perspective of safety to the bank. And they are all well secured and all have good plans.

David Nelson

Not only that, they have not missed payments -- scheduled payments. So that's -- so they're still making their payments, just the balance sheet is weakened.

Brendan Nosal

Yes. That's helpful. Last one for me before I step back here. Jane, I just noticed that the tax rate has been, kind of, creeping up over the past couple of quarters. Any thoughts as to what's a good run rate tax rate for us to use in our models?

Jane Funk

I would say probably this quarter's tax rate would be a good run rate.

Operator

Your next question comes from the line of Adam Kroll with Piper Sandler.

Adam Kroll

I'm on for Nate Race. Maybe starting out going back to the loan growth discussion. It sounds like pipelines are pretty strong, but I was curious if any one of your markets is really driving that growth?

David Nelson

I would say no. I would say it's -- we're getting -- Des Moines is about half or the Central Iowa is about half of our portfolio. And I would say our pipeline is, kind of, equally spread between all of our markets.

Harlee Olafson

The last closed transactions of the larger closed transactions, $25 million came from Des Moines, $23 million came from Iowa City, and $22 million came from the Minnesota market.

Adam Kroll

Got it. Okay. And Jane, I was wondering if you could update us on the fixed rate loan repricings that you have over maybe the next year or so?

Jane Funk

Yes. So over the next 12 months, we've got about $550 million in fixed rate loans that will reprice. And I think the weighted average rate is somewhere around 450-ish.

Adam Kroll

Okay. And going back to the margin discussion for maybe just slower expansion than if we would have not gotten a hike. I guess what are your, kind of, deposit beta assumptions if we were to get another hike or 2 through the cycle and maybe compare it to the last hiking cycle, if there's any chance for different performance there?

Jane Funk

Yes, it's probably pretty similar. When rates were going down, we were pretty aggressive and our down beta was pretty high also.

And so with rates now in the last 3, 4 months, everybody before that, we're kind of still expecting rates to go down. So with the reversal of the market, we're seeing a lot of pressure on deposit pricing. And so our betas are going up are going to be very similar to what they were last time.

Adam Kroll

Got it. I appreciate the color there. And one last one for me. You've managed expenses very well over the past few years.

So I'd be curious maybe an expense run rate expectation for the fourth quarter and just generally how you're thinking about balancing tech investments, potential hires and managing the expense growth rate in '27?

Jane Funk

Yes. I would expect fourth quarter to be similar to what we've been doing throughout this year. I think we're getting into some planning for 2027 and 2028.

And certainly, the tech area technology, some product stuff is where we'll be looking to see if and how much we want to increase spending there.

We know that there'll be some increase, but we haven't determined specifics yet, but we know that, that will be the area that's going to be most sensitive to increases that exceed, kind of, what we've had the last couple of years.

Operator

Your next question is from the line of Brendan Nosal with Hovde.

Brendan Nosal

Just wanted to circle back on a few things here. I think you folks said $550 million of fixed rate loans coming off at 4.5% over the next 12 months. Just, kind of, curious related to that, like where is new loan production coming on sheet at? Like what's like a blended average new loan yield?

David Nelson

High 6s.

Brendan Nosal

And then, kind of, on the other side of the sheet for, kind of, funding, can you just speak to the competitive environment for core deposits and perhaps more importantly, how that's changed since the Fed took rates higher in September?

Jane Funk

Yes. The competition has certainly heated back up quite a bit the last couple of months. So as soon as the market started responding to any indication of rate hikes, deposit competition and deposit pricing has been really intense.

So that's why we think our beta is going to be on the higher side and similar to what happened last time rates increased. So that's what we're focused on right now just as much as loans is sensitivity of deposits and both retaining and growing the deposit base.

Operator

[Operator Instructions] There are no more questions at this time, which will conclude our Q&A. I will now turn the call back to Jane Funk for closing remarks.

Jane Funk

Yes. We just want to thank everybody for joining us today, and thank you for your interest in West Bank, and we'll talk again next quarter. Thank you.

Operator

This concludes today's call. Thank you for attending. You may now disconnect.