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

28 Jan, 2011, 09:00 ET from West Bancorporation, Inc.

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.



RELATED LINKS

http://www.westbankiowa.com