2014

West Bancorporation, Inc. Announces Increase In Quarterly Dividend; Results For First Half Of 2012

WEST DES MOINES, Iowa, July 27, 2012 /PRNewswire/ --  West Bancorporation, Inc. (NASDAQ: WTBA), parent company of West Bank, today reported that its Board of Directors declared a quarterly dividend of $0.10 per common share.  This amount represents a 25 percent increase over the previous quarterly dividend.  The dividend is payable on August 28, 2012, to shareholders of record on August 8, 2012. 

For the first half of 2012, net income available to common shareholders was $8.36 million, or $0.48 per common share.  Net income available to common shareholders for the first half of 2011 was $6.07 million, or $0.35 per common share.  The significant improvement in 2012 is mostly attributable to no longer having preferred stock dividends and accretion of discount which totaled $2.39 million in 2011.  The preferred stock was redeemed on June 29, 2011, so there were no such dividends and accretion of discount in 2012. 

For the second quarter of 2012, net income available to common shareholders was $4.38 million, or $0.25 per common share, compared to $2.11 million, or $0.12 per common share, for the second quarter of 2011.  Preferred stock dividends and accretion of discount totaled $1.82 million in the second quarter of last year. 

In commenting on the Company's results, David Nelson, President and Chief Executive Officer of West Bancorporation, Inc. said, "We are particularly pleased to report an increase in the quarterly dividend for our shareholders.  We are able to do this because of the strong capital position of the Company and the continued optimistic outlook for earnings.  There certainly continue to be challenges in the economy, but we believe the outlook for the foreseeable future supports a dividend increase." 

The loan portfolio totaled $858 million at the end of the second quarter. That is $9 million higher than the end of the first quarter of 2012 and $20 million higher than a year ago. Nelson added, "We would like to see stronger loan growth, but the uncertainty surrounding various aspects of the economy have many good customers waiting for more clarity before borrowing more money to expand their business or purchase assets."

As reported in previous quarters, credit quality continues to show improvement.  Total nonperforming assets declined 18.6 percent to $18.9 million as of June 30, 2012, compared to $23.2 million as of June 30, 2011.  As a result, there was no provision for loan losses in the second quarter and first half of 2012.  In the second quarter and first half of 2011, the provision for loan losses was $450,000 and $950,000, respectively.

Gains and fees from the sale of residential mortgages totaled $581,000 in the second quarter and $1,328,000 for the first half of 2012.  These numbers were significantly higher than the same periods in 2011. The low interest rate environment continues to result in higher volumes of mortgage activity. West Bank plans to expand its mortgage origination staff to capitalize on the opportunities in its local markets.

The Company's other real estate owned expense was higher in the second quarter than in recent quarters.  Most of that expense related to writing down the carrying value of certain properties owned through foreclosure.  Most of those properties consist of undeveloped land.  While there has been increased interest in certain of these properties from potential buyers, there has not been stabilization in the values.

The Company filed its quarterly report on Form 10-Q with the Securities and Exchange Commission this morning.  Please refer to that document for a more in-depth discussion of our results.  The Form 10-Q document is available on the Investor Relations section of West Bank's website at www.westbankiowa.com.

The Company will discuss its second quarter 2012 results during a conference call scheduled for this afternoon, Friday, July 27, 2012, at 2:00 p.m. Central Time.  The telephone number for the conference call is 877-317-6789.  A recording of the call will be available until August 6, 2012, at 877-344-7529, pass code: 10008423. 

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 eight full-service offices in the Des Moines metropolitan area, two full-service offices in Iowa City, and one full-service office in Coralville.

Certain statements in this press release, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives, and expected operating results, and the assumptions upon which those statements are based are "forward-looking statements" within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934.  Forward-looking statements may appear throughout this press release.  These forward-looking statements are generally identified by the words "believes," "expects," "intends," "should," "anticipates," "projects," "future," "may," "should," "will," "strategy," "plan," "opportunity," "will be," "will likely result," "will continue," or similar references, or references to estimates, predictions, or future events.  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 as expected 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, limitations, and costs; changes in customers' acceptance of the Company's products and services; and any other risks described in the "Risk Factors" sections of reports made by the Company to the Securities and Exchange Commission.  The Company undertakes no obligation to revise or update such forward-looking statements to reflect current or future 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


June 30, 2012


June 30, 2011

Assets





Cash and due from banks


$

36,555



$

37,944


Short-term investments


76,303



64,537


Securities


329,597



271,040


Loans held for sale


3,777



116


Loans


858,414



838,076


Allowance for loan losses


(15,373)



(17,790)


Loans, net


843,041



820,286


Bank-owned life insurance


25,386



25,284


Other real estate owned


9,241



14,693


Other assets


26,119



27,236


Total assets


$

1,350,019



$

1,261,136







Liabilities and Stockholders' Equity





Deposits:





Noninterest-bearing


$

280,398



$

236,859


Interest-bearing:





Demand


161,770



143,078


Savings


423,254



316,450


Time of $100,000 or more


77,239



169,554


Other time


84,473



95,992


Total deposits


1,027,134



961,933


Short-term borrowings


60,711



48,064


Long-term borrowings


125,619



125,619


Other liabilities


6,523



6,330


Stockholders' equity


130,032



119,190


Total liabilities and stockholders' equity


$

1,350,019



$

1,261,136

















Financial Information (continued) (unaudited)





(in thousands, except per share data)








Three months ended June 30,


Six months ended June 30,

CONSOLIDATED INCOME STATEMENTS

 

 

2012

2011


2012


2011

Interest income








Loans, including fees

$

11,206



$

11,634



$

22,396



$

23,427


Securities

1,639



1,696



3,113



3,414


Other

51



66



93



127


Total interest income

12,896



13,396



25,602



26,968


Interest expense








Deposits

1,271



1,743



2,550



3,608


Short-term borrowings

29



43



66



89


Long-term borrowings

1,205



1,197



2,417



2,381


Total interest expense

2,505



2,983



5,033



6,078


Net interest income

10,391



10,413



20,569



20,890


Provision for loan losses



450





950


Net interest income after

provision for loan losses

10,391



9,963



20,569



19,940


Noninterest income








Service charges on deposit accounts

738



805



1,468



1,555


Debit card usage fees

412



378



790



725


Trust services

190



207



394



426


Gains and fees on sales of residential mortgages

581



272



1,328



456


Increase in cash value of bank-owned life insurance

191



223



390



444


Gain from bank-owned life insurance

841





841



637


Investment securities impairment losses

(127)





(173)




Realized investment securities gains, net

279





246




Other income

241



231



463



544


Total noninterest

income

3,346



2,116



5,747



4,787


Noninterest expense








Salaries and employee benefits

3,571



3,170



7,207



6,225


Occupancy

875



821



1,732



1,637


Data processing

505



479



1,006



930


FDIC insurance expense

167



346



333



895


Other real estate owned expense

906



93



988



280


Professional fees

287



237



579



459


Other expense

1,502



1,230



2,833



2,426


Total noninterest

expense

7,813



6,376



14,678



12,852


Income before income

taxes

5,924



5,703



11,638



11,875


Income taxes

1,541



1,780



3,278



3,422


Net income

4,383



3,923



8,360



8,453


Preferred stock dividends and accretion of discount



(1,816)





(2,387)


Net income available

to common

stockholders

$

4,383



$

2,107



$

8,360



$

6,066



















PER COMMON SHARE


MARKET INFORMATION (1)



Net Income


Dividends


High


Low

2012









1st Quarter


$

0.23



$

0.08



$

10.46



$

8.71


2nd Quarter


0.25



0.08



10.22



9.02











2011









1st Quarter


$

0.23



$



$

8.00



$

6.75


2nd Quarter


0.12



0.05



8.89



6.94


3rd Quarter


0.18



0.05



10.00



7.31


4th Quarter


0.21



0.07



10.39



7.92


(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.














 

Three months ended June 30,


Six months ended June 30,

SELECTED FINANCIAL MEASURES


2012


2011


2012


2011

Return on average equity


13.69

%


10.36

%


13.26

%


11.40

%

Return on average assets


1.32

%


1.21

%


1.28

%


1.30

%

Net interest margin


3.44

%


3.58

%


3.47

%


3.60

%

Efficiency ratio


49.31

%


48.33

%


50.52

%


47.20

%
















As of June 30,







2012


2011

Texas ratio






13.00

%


16.94

%

Allowance for loan losses ratio






1.79

%


2.12

%

Tangible common equity ratio






9.63

%


9.45

%





















Definitions of ratios:

  • Return on average equity - annualized net income divided by average stockholders' equity.
  • Return on average assets - annualized net income divided by average assets.
  • Net interest margin - annualized tax-equivalent net interest income divided by average interest-earning assets.
  • Efficiency ratio - noninterest expense (excluding other real estate owned expense) divided by noninterest income (excluding net securities gains and net impairment losses) plus tax-equivalent net interest income.
  • Texas ratio - total nonperforming assets divided by tangible common equity plus the allowance for loan losses.
  • Allowance for loan losses ratio - allowance for loan losses divided by total loans.
  • Tangible common equity ratio - common equity less intangible assets divided by tangible assets.

SOURCE West Bancorporation, Inc.



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