Q1 2025 West Bancorporation Inc Earnings Call
Yeah.
Operator: Thank you for standing by.
Kate: Thank you for standing by my name is Kate and I will be your conference operator today.
Kate: My name is Kate and I will be your conference operator today.
Kate: At this time I would like to welcome everyone to the West Bancorporation Inc First Queue 2025 Earnings Conference Call. All lines have been placed on mute to prevent any background noise.
At this time I would like to welcome everyone to the West Bancorporation, Inc. First Q 'twenty 25 earnings conference call.
Kate: All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you would like to ask a question. During this time simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question Press Star. One again. Thank you I would now like to turn the call.
Kate: After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad. If you would like to withdraw your question, press star 1 again. Thank you.
Jane Funk: I would now like to turn the call over to Jane Funk, CFO. Please go ahead. Thank you. Good afternoon, everybody. I'm Jane Funk, the CFO of West Bancorporation, and I'd like to welcome the participants on the call today and thank you for joining us.
Kate: All over to Jane Funk CFO. Please go ahead.
Kate: Thank you.
James <unk>: Good afternoon, everybody I'm, James <unk>, the CFO of West Bancorporation, and I'd like to welcome the participants on the call today and thank you for joining US with me today are Dave Nelson, Our CEO, Brad Winterbottom Bank, President Harley Olafson, Chief risk Officer, and Brad Peter's, Minnesota Group President.
Jane Funk: With me today are Dave Nelson, our CEO, Brad Winterbottom, Bank President, Harlee Olafson, Chief Risk Officer, and Brad Peters, Minnesota Group President.
Jane Funk: I'll now read the fair disclosure statement. During today's conference call, we may make projections or other forward looking statements within the meeting, excuse me, meeting 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.
Kate: I will now read the fair disclosure statement.
Kate: During today's conference call, we may make projections or other forward looking statements within the meeting.
Kate: Excuse me, 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 2025 first quarter earnings.
Jane Funk: Please see the forward looking statement disclosure in our 2025 first quarter earnings release for more information about risks and uncertainties which may affect us.
For more information about risks and uncertainties, which may affect us.
Jane Funk: The information we will provide today is accurate as of March 31, 2025, and we undertake no duty to update the information.
Kate: The information we will provide today is accurate as of March 31, 2025, and we undertake no duty to update the information with that I'll turn it over to Dave Nelson. Thank you Jane and good afternoon, everyone. Thank you for joining US we appreciate your interest in Westbay.
Dave Nelson: With that, I'll turn it over to Dave Nelson. Thank you, Jane, and good afternoon, everyone. Thank you for joining us. We appreciate your interest in West Bank, and we have good news to share. Our financial improvement is underway. Our margin is our main driver, and we are experiencing improvement. The first quarter earnings were 35% higher than first quarter last year. Our credit quality remains excellent with no problem loans. We had big core deposit growth last year. And this year, first quarter 2025, rather flat so far, both loan and deposit growth. However, our pipeline for both is good.
Kate: And we have good news to share.
Speaker Change: Actual improvement is underway.
Speaker Change: Margin is our main driver and we are experiencing improvement.
Speaker Change: First quarter earnings were 35% higher than the first quarter last year.
Speaker Change: Our credit quality remains excellent with no problem loans.
Speaker Change: Biggest core deposit growth last year, and this year first quarter 2025, rather flat so far both loan and deposit growth. However, our pipeline for both is good.
Dave Nelson: We declared a 25 cent per share dividend payable May 21st to shareholders of record as of May 7th. Those are the end of my prepared comments, other than thanking you again for joining us.
Speaker Change: We declared a <unk> 25 per share dividend payable may 21 to shareholders of record as of May seven.
Those are the end of my prepared comments other than thank you again for joining us with that I'd like to turn the call over to Harley Olafson.
Harlee Olafson: With that, I'd like to turn the call over to Harlee Olafson. Thank you, Dave. Credit quality remains strong at West Bank. At quarter-end, we had one past due over 30 days in the amount of $180,000. This loan was on non-accrual. Since quarter-end, that loan has been paid in full. So now we have no non-accruals, no OREO, and no adversely classified assets. Our commercial real estate portfolio continues to perform well. Office property is deteriorating. There is significant office property that is vacant or nearly vacant. We do not have any property that is currently not performing. But with the amount of vacant property, our customers, who have multiple tenants with pending lease expirations, will not be dealing from a position of strength.
Harley Olafson: Thank you Dave.
Speaker Change: Credit quality remains strong it was.
Speaker Change: At quarter end, we had one past due over 30 days and the amount of 100.
Speaker Change: At $80000. This loan was on nonaccrual.
Speaker Change: Since quarter end that loan has been paid in full so now we have no non accruals no or no adversely classified assets.
Speaker Change: Our commercial real estate portfolio continues to perform well.
Speaker Change: Office property is deteriorating there is significant office property that is vacant or nearly vehicles. We do not have any property that is currently not performing well.
Speaker Change: The amount of vacant property, our customers to have multiple tenants were extending lease exploration well not be dealing from a position of strength.
Harlee Olafson: Our C&I portfolio is seasoned and strong, we continue to receive year-end financial information on our customers and we do see less profitability than in previous years. Uncertainty in the direction of the economy does concern us and our customers. Prices for imported products and possible supply interruptions could cause production problems and earnings distress. The uncommon strength of our loan portfolio is due to doing business with customers, with proven management, good balance sheets, and strong and diverse payment abilities. That has not changed. Though we do face potential challenges in the economy, our commitment to our underwriting disciplines, and our conservative philosophy, we expect our credit portfolio to remain very strong.
Speaker Change: Our C&I portfolio is seasoned and strong we continue to receive year end financial information on our customers and we do see less profitability than in previous years.
Speaker Change: Uncertainty in the direction of the economy does concern us and our customers.
Speaker Change: Prices for imported products and possible supply interruptions could cause production problems in earnings distress.
Speaker Change: Yeah on the uncommon strength of our loan portfolio is due to doing business with customers with proven management, good balance sheets and strong and diverse payment abilities.
Speaker Change: It has not changed but we do face potential changes in the economy.
Speaker Change: Our commitment to our underwriting disciplines and our conservative philosophy, we expect our credit portfolio to remain very strong.
Harlee Olafson: Part of our strength also stems from the markets we serve. All communities have different strengths and are currently thriving.
Speaker Change: Part of our strength also stems from the markets. We serve all communities have different strengths and are currently thriving.
Harlee Olafson: We have a seasoned team of bankers that continue to prospect for comprehensive banking relationships and provide exceptional service to their customers to obtain even more wallet share.
Speaker Change: We have a seasoned team of bankers that continued prospect for comprehensive banking relationships and provide exceptional service to their customers to obtain even more wallet share.
Harlee Olafson: I am available for questions after our prepared remarks.
Speaker Change: I am available for questions. After our prepared remarks, I'll now turn it over to Brad Winterbottom, Our bank President.
Brad Winterbottom: I now turn it over to Brad Winterbottom, our bank president. Thank you. For the quarter ended March 31, 2025, our loan portfolio was relatively flat when compared to year end. Outstandings were just over three billion. Several events took place during the first quarter that impacted our portfolio size. We experienced approximately $100 million in payoffs from asset sale and refinance activities. The majority of those assets for price below the current rate environment. I'm pleased to report that the refinance activity was planned. We replaced those assets with quality new assets at better rates. These assets represent approximately 50% C&I business and 50% commercial real estate transactions.
Brad Winterbottom: Thank you.
Brad Winterbottom: For the for the quarter ended March 31, 25, our loan portfolio was relatively flat when compared to year end.
Brad Winterbottom: Outstandings were just over $3 billion.
Brad Winterbottom: Several events took place during the first quarter that impacted.
Brad Winterbottom: Our portfolio size, we experienced approximately $100 million in payoffs from asset sale and refinance activity.
Brad Winterbottom: Majority of those assets for price below the current rate environment.
Brad Winterbottom: I am pleased to report that the refinance activity was planned.
Brad Winterbottom: We replaced those assets with quality new assets at better rates. These assets represent approximately 50% C&I business and 50% commercial real estate transactions.
Brad Winterbottom: Deposit gathering sales efforts continue to be an emphasis in the markets we serve. During the first quarter, deposits decreased slightly, primarily the result of ordinary cash flow fluctuations from our customers, not a loss of any relationship. We remain selective in obtaining new loan opportunities, and those opportunities are less than in previous years. We remain confident in our abilities to create and maintain positive relationships with our customers and prospects. that we're pursuing in a highly competitive market that we serve in all markets.
Brad Winterbottom: Deposit gathering sales efforts continue to be an emphasis in the markets. We serve during the first quarter deposits decreased slightly primarily as a result of ordinary cash flow fluctuations from our customers.
Not a loss of any relationships.
Brad Winterbottom: We remained selective and obtaining new loan opportunities and those opportunities are less than in previous years, we remain confident in our abilities to create and maintain positive relationships with our customers and prospects.
Brad Winterbottom: That we're pursuing in a highly competitive market that we serve in all markets.
Brad Winterbottom: At the end of my comments I'd like to now turn it over to Mr. Brad theaters.
Brad Peters: That's the end of my comments, I'd like to now turn it over to Mr. Brad Peters. Thanks, Brad. Good afternoon, everyone. I'm going to provide you a brief update on our Minnesota Bank. Our customers have been cautious with the economic uncertainty in the marketplace. We continue to work closely with our clients and have increased our calling efforts to our C&I base of customers. We do not have specific production goals for our bankers, but instead measure our bankers on the right activities that will drive results. Our focus is on C&I prospects with significant deposit balance. We have been successful in winning these opportunities.
Speaker Change: Thanks, Brad and good afternoon, everyone I'm going to provide you a brief update on our Minnesota banks.
Speaker Change: Our customers have been cautious with the economic uncertainty in the marketplace. We continue to work closely with our clients and have increased our calling efforts to our C&I base of base of customers.
Speaker Change: We do not have specific production goals for our bankers, but instead and measure our bankers on the right activities that will drive results. Our focus is on C&I prospects with significant deposit balances.
Speaker Change: We have been successful in winning these opportunities we are a seasoned group of bankers that have proven this strategy to be effective.
Brad Peters: We have a seasoned group of bankers that have proven this strategy to be effective. 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 high-earning individuals in our community. Our principal bankers provide superior service that sets us apart from the competition. Each of our Minnesota regional centers have seen significant retail deposit growth. All of our building construction projects are now complete. We designed each of our facilities with well-appointed entertainment areas that allow our teams to host client and prospect events and quality small group gatherings.
Speaker Change: We are also targeting high value retail deposits, our bankers have been successful in winning the retail deposits of our business owners in key executives.
Speaker Change: We are also attracting new deposits from our high earning individuals in our communities.
Speaker Change: Our principal bankers provides superior service that sets us apart from the competition.
Speaker Change: Each of our Minnesota regional centers have seen significant retail deposit growth.
Speaker Change: All of our building construction projects are now complete we designed each of our facilities with well appointed and entertainment areas that allow our teams to host client and prospect events and quality small group gatherings.
Brad Peters: These unique facilities align perfectly with our strategy of building business based on strong relationships. Our team has embraced this and have done an outstanding job of leveraging our buildings to grow our business.
Speaker Change: These unique facilities aligned perfectly with our strategy of building the business based on strong relationships. Our team has embraced this and have done an outstanding job of leveraging our buildings to grow our business.
Brad Peters: Those are the end of my comments.
Speaker Change: Those are the end of my comments I will now turn the call back over to Jane Thanks, Pat.
Jane Funk: I will now turn the call back over to Jane. Thanks, Brad. Just a few items on the financials and then we'll open it up for questions.
Just a few items on the financials and then we'll open it up for questions.
Jane Funk: Our net income was $7.8 million for the first quarter compared to $7.1 million in the fourth quarter of 2024 and $5.8 million in the first quarter of 2024. Harlee and Brad just provided some good commentary on our loan portfolio. As they mentioned, overall growth in the portfolio was modest this quarter as expected and our credit quality remains very strong. As a result, there was no credit loss expense recorded in the first quarter. We've now had five consecutive quarters of increases in net interest income and net interest margin increased 30 basis points this quarter compared to the fourth quarter of 2024.
Speaker Change: Our net income was $7 8 million for the first quarter compared to $7 1 million in the fourth quarter of 2024, and $5 8 million in the first quarter of 2024.
Speaker Change: Harley and Brad just provided some good commentary on our loan portfolio as I mentioned overall growth in the portfolio was modest this quarter as expected and our credit quality remains very strong as a result, there was no credit loss expense recorded in the first quarter.
Speaker Change: We've now had five consecutive quarters of increases in net interest income and net interest margin increased 30 basis points this quarter compared to the fourth quarter of 2024.
Jane Funk: With the 100 basis point reduction in the Fed rates since September of last year, we have been able to lower deposit rates on our highest costing sectors, resulting in noticeable improvements to our cost of funds and our net interest margin. The cost of deposits decreased 38 basis points this quarter, compared with fourth quarter of 2024. And as Brad mentioned, we've been able to improve the yield on our fixed rate loan portfolio as cash flows roll over. The improvement in the yield of the fixed rate portfolio has helped offset the impact of last year's reductions in the prime rate on the variable rate portfolio.
Speaker Change: With the 100 basis point reduction in the federate since September of last year, we had the <unk>.
<unk> been able to lower deposit rates and our highest costing sectors, resulting in notable improvements to our cost of funds and our net interest margin the cost of deposits decreased 38 basis points this quarter compared with fourth quarter of 2024.
Speaker Change: As Brad mentioned, we've been able to improve the yield on our fixed rate loan portfolio as cash flows rollover the improvement in the yield of the fixed rate portfolio has helped to offset the impact of last year's reduction in the prime rate and the variable rate portfolio.
Jane Funk: The loan yield in Q1 2025 was 5.52%, compared to 5.53% in Q4 of 2024 and 5.49% of Q1 in 2024. There were no significant one-time items in non-interest income or non-interest expense this quarter. Occupancy expense in the first quarter reflects all new building costs as our last construction project was completed in January.
Speaker Change: Loan yields in Q1, $2025, 552% compared to 553% in Q4 of 2024 and 549% of Q1 in 2024.
Speaker Change: There were no significant onetime items and noninterest income or noninterest expense this quarter.
Speaker Change: Occupancy expense in the first quarter reflects only building cost as our last construction projects was completed in January and there are no other construction projects on the horizon.
Jane Funk: And there are no other construction projects on our horizon.
Jane Funk: Those are the end of our prepared remarks and now we would open it up for questions. At this time, I would like to remind everyone, in order to ask a question, press star then the number one on your telephone keypad. We will pause for just a moment to compile the Q&A roster.
Speaker Change: Those are the end of our prepared remarks, and now we will open it up for questions.
Speaker Change: At this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad, we will pause for just a moment to compile the Q&A roster.
Andrew Liesch: Your first question comes from the line of Andrew Liesch with Piper Samper. Please go ahead. Thank you, everyone. Good afternoon. Jane, just sticking with the margin here, obviously good improvement in the deposit cost side, but absent rate cuts, is there more, it'll be more challenging to bring deposit costs down. I would say in this environment, the deposit costs, we probably moved them as much as we think we can in light of the current environment, so they're probably pretty static until something else happens in the marketplace.
Speaker Change: Your first question comes from the line of Matt <unk> with Piper Sandler. Please go ahead.
Speaker Change: Thank you everyone. Good afternoon.
Speaker Change: Yes James.
Speaker Change: Sticking with the margin here, obviously good improvement.
Speaker Change: Posit cost side, but absent rate cuts I mean is there more room there'll be.
Speaker Change: More challenging to bring bring deposit costs down at this point.
Speaker Change: I would say in this environment the deposit costs.
Speaker Change: We probably moved them as much as we think we can.
Speaker Change: And in light of the current environment. So.
Speaker Change: They are probably pretty static until something else happens in the marketplace.
Jane Funk: Got it. And then on the new loans that were added, I'm curious if you have the rate on what those were added at versus what's been rolling off, just to try to get a sense of that differential. Well, of the The $100 million or so that paid off in the first quarter, I would say 75% of those were probably started with a three or a four. Those all would have been replaced with started with a six in front of it. maybe even some with a few sevens.
Speaker Change: Got it.
Speaker Change: And then on the new loans that were added and then curious if you have the rate on what those were added at versus what what's been rolling off is to try to get a sense of that differential.
Speaker Change: Yeah.
Speaker Change: The $100 million or so that paid off in the first quarter I would say, 75% of those were probably started with a three or four.
Speaker Change: Those all would have been replaced with.
Speaker Change: Started with a six in front of it.
Speaker Change:
Speaker Change: Maybe even some with a few sevens.
Speaker Change: And so.
Jane Funk: So. And I would say that the current environment is probably in the high six range. Gotcha. That's helpful. The loan pipeline sounds like it's pretty good, and obviously $100 million is solid.
Speaker Change: And I would say that the current environment is probably in the in the high six range.
Speaker Change: Gotcha, that's helpful. The loan pipeline it sounds like it's pretty good.
Speaker Change: And obviously $100 million is solid.
Jane Funk: Is growth going to accelerate here in the second quarter or are you expecting other larger payments on the horizon? of nice transactions that we're looking at. So I would say we do have some planned payoffs, but I think the opportunities exceed the payoffs, to be honest. We'll see what happens. Right. There's a lot of people involved obviously.
Speaker Change: So growth accelerate here in the second quarter are you are you expecting other larger panel.
There is a handful of.
Speaker Change: Have a nice transactions that we're looking at so I would say.
Speaker Change: We do have some planned payoffs, but I think the opportunities exceed the payoffs to be honest with you and we'll see what happens.
Speaker Change: All involved.
Speaker Change: Mhm.
Jane Funk: Jane, just on the expenses, there were some elevated accruals in the fourth quarter. In the first quarter, was there anything keeping expenses a little bit lower? I'm just trying to get a sense of the run rate. No, I would expect that the first quarter performance will be, you know, pretty indicative of goals to go forward. There's not any significant items that we foresee at this point in time.
Speaker Change: James just on the expenses there were some elevated accruals in the fourth quarter and.
Speaker Change: In the first quarter was there anything keeping expenses a little bit lower just trying to get a sense of the run rate again to <unk>.
Speaker Change: No I would expect that.
Speaker Change: The first quarter performance will be pretty indicative of the go forward there.
Speaker Change: There is not any significant items that we foresee at this point in time.
Speaker Change: Gotcha, and then I noticed the tax rate was a little higher than I was expecting.
Jane Funk: And then I noticed the tax rate was a little higher than I was expecting, probably obviously improved, better rate to be modeling. Yeah, the so we've had we had a tax credit like a seven year new market tax credit that expired at the end of 24. So the accounting for that, you know, that goes away. So our tax rate will be a little bit higher this year than what it was last year.
Speaker Change: Better.
Speaker Change: Great to be modeling.
Speaker Change: Yes.
Speaker Change: We've had we had a tax credit like a seven year new market tax credit that expired at the end of 'twenty four.
Speaker Change: So the accounting for that.
Speaker Change: Goes away so our tax rate will be a little bit higher this year than what it was last year.
Speaker Change: Got it.
Jane Funk: And then, last on credit here, is there anything you can point to with uh, concerns over tariffs or, or immigration policy that, that you're watching specifically or that your borrowers are talking about. Your credit metrics are excellent, but just curious if there's anything that you're seeing that you want to highlight that's concerning. I don't have anything on immigration policy, but tariffs... We have some manufacturers that in their product what they provide in their total product. They have mixes of components. that are coming from offshore. And there's some concern there that that cost will increase and or the supply of it may.
Speaker Change: Then last on credit here.
Speaker Change: Is there anything you can point to.
Speaker Change: <unk>.
Speaker Change: Concerns or.
Speaker Change: Tariffs or or immigration policy that but youre watching specifically are that your borrowers are talking about.
Speaker Change: Your credit metrics.
Speaker Change: But just curious if theres anything that youre seeing that you'd want to highlight.
Speaker Change: Concerning.
Speaker Change: I don't have anything on immigration policy.
Speaker Change: Sure.
Speaker Change: We have some manufacturers that.
Speaker Change: In their product.
Speaker Change: What they provide is that our total product mixes.
Speaker Change: Components.
Speaker Change: Are coming from.
Speaker Change: Offshore.
Speaker Change: The concern there is some concern there.
That costs will increase and or the supplier.
Speaker Change: <unk>.
Speaker Change: Be hindered better more flow as easily as it has in the past.
Jane Funk: be hindered that it won't flow as easily as it has in the past. Again, I like to always say that the customers that we have been doing business with are seasoned and have developed good balance sheets, so typically can weather through those type of things, but they are concerning.
Speaker Change: Again.
Speaker Change: I always say that the custom.
Speaker Change: Customers that we have been doing business with our season.
Speaker Change: Have developed good balance sheets, so typically can.
Speaker Change: Whether through those type of things, but they are conserving.
Jane Funk: Got it.
Speaker Change: Got it.
Speaker Change: That that covers the questions I'll step back thank you.
Andrew Liesch: That covers the questions. I'll step back. Thank you. Thanks, Sander.
Andrew: Thanks, Andrew.
Paul DeShelby: Your next question comes from the line of Paul DeShelby South, please go ahead. I have a question for Mr. Nelson relative to the letters to stockholders. In the first paragraph, you reference the significant strides to the return to excellence by concentrating on what we can control. Is that a reference to the duration risk that we take? And then in the second paragraph, you refer to being bankers and not lenders. Would you have any color on that? Well, sure. And thank you for the question.
Speaker Change: Your next question comes from the line of Paul Sheldon itself. Please go ahead.
Speaker Change: I have a question from Mr. Nelson relative to the letters to stockholders in the first paragraph.
Speaker Change: You referenced.
Speaker Change: Significant strides to return to excellence by concentrating on what we can control is that a reference to the duration risk that we take.
Speaker Change: And then in the second paragraph.
Speaker Change: You referred to being bankers and not lenders would you have any color on that.
Speaker Change: Sure. Thank you for the question.
Dave Nelson: The differentiation between bankers and lenders is kind of a way of highlighting that we don't really like to be called lenders because that's just part of what we do. work both sides of the balance sheet for both loans, deposits, and a multitude of other services. And so, we... We talked about comprehensive recommendations, meaning that it's not just about making a loan, but it's about We're building a relationship and providing more services than just lending. And in terms of focusing on what we control and control. Really, in my mind, what I was talking about there is what we do on purpose every day despite economic conditions or the weather or competitors.
Speaker Change: The differentiation between bankers and lenders is kind of a.
Speaker Change: A way of highlighting that.
Speaker Change: Don't really like to.
Speaker Change: Because lenders because thats just part of what we do.
Speaker Change: Work, both sides of the balance sheet for both loans deposits and a multitude of other services.
Speaker Change: So we.
Speaker Change: We talk about comprehensive recommendations, meaning.
Speaker Change: It's not just about making a loan but it's about building a relationship.
Speaker Change: Providing more services and just Lindsay.
Speaker Change: And in terms of focusing on what we control and control.
Speaker Change: Early in my mind, when I was talking about there is what we do on purpose every day, despite economic conditions or the weather or competitors.
Dave Nelson: It's what's under our control about getting out and talking to people and being of assistance and learning all we can about our customers business and looking for ways to be a further assistant.
Speaker Change: It splits under our control about getting out and talking to people being of assistance and learning all we can about our customers' business and looking for ways to be of further assistance.
Jane Funk: Thank you for going to the next question. Again, if you would like to ask a question, press star 1 on your telephone keypad.
Speaker Change: For going to the next question again, if you would like to ask a question press Star one on your telephone Keypad. Your next question comes from the line of Marie Roberts with stockholder. Please go ahead.
Maria Roberts: Your next question comes from the line of Maria Roberts, Swiss Tech Hold. Please go ahead.
Maria Roberts: Hi, guys. I have a question related to the heading at the top of one of your charts in your attachment to the press release. It says successful lift out strategy and normally a lift out strategy would be outsourcing of a business function or part of your business. What do you mean by that language?
Marie Roberts: Hi, guys I have a question related to heading at the top of one of your charts.
Marie Roberts: Your attachment to the press release.
Marie Roberts: It says successful lift out strategy and normally lift out strategy with the outsourcing of a business function are part of your business. What do you mean by that language.
Brad Peters: This is Brad Peters from the Minnesota markets. The lift-out strategy is referencing our success in lifting out key people from other financial institutions to become West Bancorp. So we were successful in our Minnesota locations at doing that.
Brad Peterson: This is Brad Peterson from.
Brad Peterson: From the Minnesota markets the lift out strategy is referencing our success in lifting out.
Brad Peterson: Key people from other financial institutions to become west bankers. So we were successful.
Brad Peterson: Minnesota locations are doing that.
Brad Peters: Okay, thank you.
Speaker Change: Okay. Thank you and then I have one other question.
Brad Peters: And then I have one other question. How do you actually manage to hold on to your core deposit certificate of deposit numbers when your rates are so low compared to other places in the market? I just don't understand anybody leaving their money to earn like 1% or something less than that. Seems like a silly personal strategy. We have the ability to, you know, a lot of our core deposit base is commercial based. And so we will do a rate, you know, based on relationship. So we're not doing advertised, you know, retail specials like you see other institutions.
How do you actually managed to hold onto your core deposit certificate of deposit numbers. When your rates are so so low.
Speaker Change: Compared to other places in the market.
Speaker Change: I, just don't understand anybody, leaving their money, Sir Mike one person or something less than that.
Speaker Change: It seems like a silly personnel strategy.
Speaker Change: We have the ability to laugh.
Speaker Change: Our core deposit base of commercial based and so we will do.
Speaker Change: Right.
Speaker Change: Based on our relationship.
Speaker Change: So we're not doing advertised.
Speaker Change: In our retail specials like you see other institutions that were certainly.
Brad Peters: But we're certainly have pricing strategies similar to those other institutions. So you're saying I could negotiate with you? You could call your banker and talk about rates. Okay, okay.
Speaker Change: Half pricing strategy similar to those other institutions.
Speaker Change: So so you are saying I couldnt negotiate with you.
Speaker Change: Yeah.
Speaker Change: You can call your banker and.
Speaker Change: Talk about rate.
Speaker Change: Okay. Thank you.
Maria Roberts: Thank you.
Speaker Change: Okay.
Jane Funk: I will now turn the call back to Jane Funk for closing remarks. All right, well, again, we want to thank everybody for joining us today, and we look forward to talking again next quarter. Thank you.
Speaker Change: I will now turn the call back to James Wang for closing remarks.
James Wang: Alright, well again, we want to thank everybody for joining us today, and we look forward to talking again next quarter. Thank you.
Operator: Ladies and gentlemen, that concludes today's call. You can disconnect. Thank you and have a great day.
Speaker Change: Ladies and gentlemen that concludes today's call you can disconnect and have a great day.
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