West Bancorporation, Inc. Announces Annual Meeting Date and Results for 4th Quarter and Year 2010

WEST DES MOINES, Iowa, Jan. 28, 2011 /PRNewswire/ -- West Bancorporation, Inc. (Nasdaq: WTBA) (the "Company"), parent company of West Bank, reports net income available to common shareholders of $2.9 million or $0.17 per share for the fourth quarter of 2010 compared to $2.2 million or $0.13 per share for the same quarter in 2009.

The fourth quarter results included a provision for loan losses of $650,000.  The Company also recognized additional write-downs on other real estate owned of $959,000 during the fourth quarter, based on updated appraisals on several commercial properties and continued weakness in the commercial real estate market.

For the year 2010, net income available to common shareholders was $11.1 million compared to a net loss of ($16.9) million for 2009.  Earnings per common share for 2010 were $0.64 compared to a loss per common share of ($0.97) in 2009.  The net loss for 2009 included a second quarter after-tax charge for goodwill impairment that totaled $18.4 million.

"We continue to be pleased with the progress being made and the direction in which we are headed," commented David Nelson, President and Chief Executive Officer.  "Our nonperforming assets have declined by 37 percent during 2010.  Although there could be bumps in that trend line, we believe the amount of nonperforming assets will continue to trend downward.  We have enhanced our infrastructure to enable our bankers to spend more time on business development while others focus on credit underwriting and compliance.  We are looking forward to 2011."

During the fourth quarter, total nonperforming assets declined $3.9 million to $33.5 million.  

Loans outstanding totaled $889 million at December 31, 2010, down from $1.02 billion a year ago.  "Loan payoffs exceeded the demand for new loans during 2010," stated Nelson.  "We may see that trend continue for another quarter or so, but we believe our total loans will be higher at the end of 2011.  We are actively seeking new business, both from existing customers and new customers."

The allowance for loan losses as a percentage of loans outstanding as of December 31, 2010, was 2.15 percent.  This is up from 1.87 percent at December 31, 2009.  Management believes the allowance is adequate to absorb the losses inherent in the loan portfolio, although the economic environment will continue to be a significant determinant of future loan losses.

West Bank's deposits totaled $972 million at year end 2010 compared to $1.25 billion a year ago.  Deposits associated with SmartyPig®, the online savings program developed by Des Moines entrepreneurs, totaled $187 million at the end of 2009.  As previously reported, those deposits were transferred to a larger bank in the third quarter of 2010, at West Bank's request.

At its quarterly meeting on January 26, 2011, the Company's Board of Directors voted to forgo a common stock quarterly dividend.  The Company paid a special common stock dividend of $0.05 per share in December 2010.  The Company anticipates resuming quarterly common stock dividends at some point in 2011.  The Company will pay the United States Treasury $450,000 on February 15, 2011 as a quarterly preferred stock dividend.

The Board also set the record date for the Annual Meeting of Shareholders as February 28, 2011.  The meeting will be held April 28, 2011.

The Company and West Bank continue to be well-capitalized under all regulatory measures.  West Bank's capital ratios also exceed the requirements of the memorandum of understanding with the Iowa Division of Banking.  The following are the regulatory capital ratios as of December 31, 2010.  Also shown are the average capital ratios for all banks in the United States with total assets between $1 billion and $3 billion as of September 30, 2010, the latest data available at this time.












Requirements for


Average of







Requirements to Be


West Bank


Peer



Actual


Well-Capitalized


Per Agreement (1)


Group

(in thousands)


Amount


Ratio


Amount


Ratio


Amount


Ratio


Ratio

As of December 31, 2010:















Total Capital (to Risk-Weighted Assets)















Consolidated


$

180,413



17.7

%


n/a      


n/a        


n/a      


n/a      


n/a        

West Bank


162,682



16.6

%


$

98,102



10.0

%


$

117,723



12.0

%


13.7

%
















Tier I Capital (to Risk-Weighted Assets)















Consolidated


167,612



16.5

%


n/a      


n/a        


n/a      


n/a      


n/a        

West Bank


150,335



15.3

%


58,861



6.0

%


n/a      


n/a      


12.4

%
















Tier I Capital (to Average Assets)















Consolidated


167,612



11.8

%


n/a      


n/a        


n/a      


n/a      


n/a        

West Bank


150,335



10.7

%


70,419



5.0

%


112,670



8.0

%


8.8

%




(1)  Per the memorandum of understanding with the Iowa Division of Banking and the FDIC.

The Company will file its annual report on Form 10-K with the Securities and Exchange Commission in early March 2011.  Please refer to it for a more in-depth analysis of our results.  It will be available on the Investor Relations section of the Company's website at www.westbankiowa.com when it is filed.

The Company will discuss its results for the fourth quarter and year 2010 during a conference call scheduled for 2:00 p.m. Central Time today, Friday, January 28, 2011.  The telephone number for the conference call is 877-317-6789.  A recording of the call will be available until February 14, 2011, at 877-344-7529, pass code: 447161.

West Bancorporation, Inc. is headquartered in West Des Moines, Iowa.  Serving Iowans since 1893, West Bank, a wholly-owned subsidiary of West Bancorporation, Inc., is a community bank that focuses on lending, deposit services, and trust services for consumers and small- to medium-sized businesses.  West Bank has two full-service offices in Iowa City, one full-service office in Coralville, and eight full-service offices in the greater Des Moines area.

The information contained in this report may contain forward-looking statements about the Company's growth and acquisition strategies, new products and services, and future financial performance, including earnings and dividends per share, return on average assets, return on average equity, efficiency ratio, and capital ratios.  Certain statements in this report constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements preceded by, followed by, or that include the words "believes," "expects," "intends," "should," "anticipates," or similar references or references to estimates or predictions.  Such forward-looking statements are based upon certain underlying assumptions, risks, and uncertainties.  Because of the possibility that the underlying assumptions are incorrect or do not materialize in the future, actual results could differ materially from these forward-looking statements.  Risks and uncertainties that may affect future results include: interest rate risk; competitive pressures; pricing pressures on loans and deposits; changes in credit and other risks posed by the Company's loan and investment portfolios, including declines in commercial or residential real estate values or changes in the allowance for loan losses dictated by new market conditions or regulatory requirements; actions of bank and non-bank competitors; changes in local and national economic conditions; changes in regulatory requirements, including actions of the Securities and Exchange Commission, the United States Department of the Treasury, the Federal Deposit Insurance Corporation, the Federal Reserve Board, and/or the Iowa Division of Banking; changes in the Treasury's Capital Purchase Program; and customers' acceptance of the Company's products and services.  The Company undertakes no obligation to revise or update such forward-looking statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.


WEST BANCORPORATION, INC. AND SUBSIDIARY





Financial Information (unaudited)





(in thousands, except per share data)










CONSOLIDATED STATEMENTS OF CONDITION


December 31, 2010


December 31, 2009

Assets





Cash and due from banks


$

20,069



$

27,923


Short-term investments


67,885



103,572


Securities


267,537



351,269


Loans held for sale


4,452



332


Loans


888,649



1,020,710


Allowance for loan losses


(19,087)



(19,126)


Loans, net


869,562



1,001,584


Bank-owned life insurance


25,395



25,400


Other real estate owned


19,193



25,350


Other assets


31,370



39,624


Total assets


$

1,305,463



$

1,575,054







Liabilities and Stockholders' Equity





Deposits:





Noninterest-bearing


$

230,277



$

206,412


Interest-bearing:





Demand


142,031



162,305


Savings


313,850



442,137


Time of $100,000 or more


178,388



271,145


Other Time


107,526



164,618


Total deposits


972,072



1,246,617


Short-term borrowings


55,009



42,895


Long-term borrowings


125,619



145,619


Other liabilities


7,327



6,864


Stockholders' equity


145,436



133,059


Total liabilities and stockholders' equity


$

1,305,463



$

1,575,054













PER COMMON SHARE


MARKET INFORMATION (1)



Net Income (Loss)


Dividends


High


Low

2010









1st quarter


$

0.16



$



$

6.64



$

4.80


2nd quarter


0.12





9.04



6.32


3rd quarter


0.19





7.28



5.51


4th quarter


0.17



0.05



8.19



6.13











2009









1st quarter


$

0.14



$

0.08



$

12.40



$

4.36


2nd quarter


(1.32)



0.01



9.50



5.00


3rd quarter


0.08





6.38



4.61


4th quarter


0.13





5.50



4.28





(1)  The prices shown are the high and low sale prices for the Company's common stock, which trades on the Nasdaq Global Select Market, under the symbol WTBA.  The market quotations, reported by Nasdaq, do not include retail markup, markdown, or commissions.  




WEST BANCORPORATION, INC. AND SUBSIDIARY









Financial Information (continued) (unaudited)









(in thousands, except per share data)











Three months ended


Year ended



December 31,


December 31,

CONSOLIDATED STATEMENTS OF OPERATIONS


2010


2009


2010


2009

Interest income









Loans


$

12,699



$

14,271



$

53,215



$

59,309


Securities


1,652



1,873



7,387



7,900


Other


95



137



541



521


Total interest income


14,446



16,281



61,143



67,730


Interest expense









Deposits


2,170



4,306



13,217



19,548


Short-term borrowings


40



80



210



320


Long-term borrowings


1,210



1,706



5,596



6,768


Total interest expense


3,420



6,092



19,023



26,636


Net interest income


11,026



10,189



42,120



41,094


Provision for loan losses


650



3,000



6,050



24,500


Net interest income after provision for loan losses


10,376



7,189



36,070



16,594


Noninterest income









Service charges on deposit accounts


836



901



3,361



4,021


Debit card usage fees


335



298



1,329



1,123


Service fee from SmartyPig, LLC






1,314




Trust services


202



205



818



786


Gains and fees on sales of residential mortgages


489



255



1,533



1,114


Increase in cash value of bank-owned life insurance


205



214



869



776


Gain from bank-owned life insurance


2





422



840


Other income


285



238



1,006



972


Total noninterest income


2,354



2,111



10,652



9,632


Investment securities gains (losses), net









Total other than temporary impairment losses




(30)



(305)



(3,444)


Portion of loss recognized in other comprehensive









income (loss) before taxes




(65)





832


Net impairment losses recognized in earnings




(95)



(305)



(2,612)


Realized securities gains, net


(13)



(76)



40



1,884


Investment securities (losses), net


(13)



(171)



(265)



(728)


Noninterest expense









Salaries and employee benefits


2,816



2,444



10,996



9,938


Occupancy


804



814



3,207



3,451


Data processing


449



449



1,815



1,761


FDIC insurance expense


802



469



3,082



2,736


Other real estate owned expense


1,059



153



1,716



368


Professional fees


255



160



959



964


Miscellaneous losses


122



11



1,330



70


Goodwill impairment








13,376


Other expense


1,094



1,199



4,639



5,241


Total noninterest expense


7,401



5,699



27,744



37,905






WEST BANCORPORATION, INC. AND SUBSIDIARY









Financial Information (continued) (unaudited)









(in thousands, except per share data)











Three months ended


Year ended



December 31,


December 31,



2010


2009


2010


2009

Income (loss) before income taxes


$

5,316



$

3,430



$

18,713



$

(12,407)


Income taxes (benefits)


1,816



665



5,330



(7,356)


Income (loss) from continuing operations


3,500



2,765



13,383



(5,051)











Income (loss) from discontinued operations before income taxes




132





(10,262)


Income taxes (benefits)




81





(696)


Income (loss) from discontinued operations




51





(9,566)


Net income (loss)


3,500



2,816



13,383



(14,617)


Preferred stock dividends and accretion of discount


(571)



(568)



(2,284)



(2,276)


Net income (loss) available to common stockholders


$

2,929



$

2,248



$

11,099



$

(16,893)




















SUPPLEMENTAL INFORMATION









Income (loss) from continuing operations


$

3,500



$

2,765



$

13,383



$

(5,051)


Preferred stock dividends and accretion of discount


(571)



(568)



(2,284)



(2,276)


Net income (loss) from continuing operations









available to common stockholders


$

2,929



$

2,197



$

11,099



$

(7,327)




















PERFORMANCE HIGHLIGHTS









Return on average equity


9.45

%


8.22

%


9.49

%


(10.21)

%

Return on average assets


0.98

%


0.70

%


0.86

%


(0.90)

%

Net interest margin


3.46

%


2.85

%


3.04

%


2.86

%

Efficiency ratio


53.31

%


44.02

%


50.40

%


45.99

%




SOURCE West Bancorporation, Inc.



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http://www.westbankiowa.com

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