West Bancorporation, Inc. Announces Increase of 16.1% in 2011 Net Income Available to Common Shareholders and Increase in Quarterly Dividend

Jan 27, 2012, 08:30 ET from West Bancorporation, Inc.

WEST DES MOINES, Iowa, Jan. 27, 2012 /PRNewswire/ -- West Bancorporation, Inc. (NASDAQ: WTBA), parent company of West Bank, today reported fourth quarter net income available to common shareholders of $3.7 million.  This represents $0.21 per share.  Net income available to common shareholders for the fourth quarter of 2010 was $2.9 million, or $0.17 per common share.  Net income available to common shareholders for the entire year of 2011 was $12.9 million ($.74 per share) compared to $11.1 million ($.64 per share) for the same period in 2010, representing a 16.1 percent increase.  The common stock of the Company registered a 23 percent increase in value during 2011.  

On January 25, 2012, West Bancorporation's Board of Directors declared a quarterly dividend of $0.08 per share.  The dividend is payable on February 28, 2012, to shareholders of record on February 6, 2012.  This is an increase of $0.01 per share, or 14 percent, over the previous quarterly dividend.  

The provision for loan losses for 2011 was $5.5 million less than 2010.  The provision for loan losses for the fourth quarter of 2011 was actually a credit of $400,000.  "It is somewhat uncommon to reduce the allowance for loan losses through a "negative" provision, but a combination of a significant loan recovery, improving net charge-off experience and a decline in the loans outstanding required that result," said Dave Nelson, President and CEO of West Bancorporation.  Following growth during the second and third quarters, loans outstanding declined $27.7 million during fourth quarter 2011.  This was attributable to the unexpected payoff of three large loans.  "Our loan pipeline is improving and we believe over the long term West Bank is well positioned to grow its loan portfolio," reported Nelson.  

Fourth quarter 2011 results included write-downs on the carrying value of other real estate owned of $898,000 on a pre-tax basis.  This is lower than the write-down in the third quarter, but signifies the continued weakness in the real estate market, particularly for land and developed lots.

The Board also set the record date for the Annual Meeting of Shareholders as February 23, 2012. The meeting will be held April 26, 2012.

The Company intends to file its annual report on Form 10-K with the Securities and Exchange Commission around March 9, 2012.  Please refer to that document for a more in-depth discussion of our results.  The Form 10-K document will be available on the Investor Relations section of West Bank's website at www.westbankiowa.com.

The Company will discuss its fourth quarter 2011 results during a conference call scheduled for today, Friday, January 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 February 9, 2012, at 877-344-7529, pass code: 10008377.  

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

December 31, 2011

December 31, 2010

Assets

Cash and due from banks

$

35,772

$

20,069

Short-term investments

51,332

67,885

Securities

294,497

267,537

Loans held for sale

4,089

4,452

Loans

838,959

888,649

Allowance for loan losses

(16,778)

(19,087)

Loans, net

822,181

869,562

Bank-owned life insurance

25,724

25,395

Other real estate owned

10,967

19,193

Other assets

24,962

31,370

Total assets

$

1,269,524

$

1,305,463

Liabilities and Stockholders' Equity

Deposits:

Noninterest-bearing

$

268,887

$

230,277

Interest-bearing:

Demand

158,141

142,031

Savings

343,312

313,850

Time of $100,000 or more

98,743

178,388

Other Time

88,290

107,526

Total deposits

957,373

972,072

Short-term borrowings

55,841

55,009

Long-term borrowings

125,619

125,619

Other liabilities

7,240

7,327

Stockholders' equity

123,451

145,436

Total liabilities and stockholders' equity

$

1,269,524

$

1,305,463

PER COMMON SHARE

MARKET INFORMATION (1)

Net Income

Dividends

High

Low

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

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

(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 December 31,

Year ended December 31,

PERFORMANCE HIGHLIGHTS

2011

2010

2011

2010

Return on average equity

12.08

%

9.45

%

11.27

%

9.49

%

Return on average assets

1.14

%

0.98

%

1.18

%

0.86

%

Net interest margin

3.49

%

3.46

%

3.58

%

3.04

%

Efficiency ratio

51.59

%

45.68

%

49.27

%

47.28

%

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

2011

2010

2011

2010

Interest income

Loans

$

11,539

$

12,699

$

46,640

$

53,215

Securities

1,439

1,652

6,445

7,387

Other

64

95

234

541

Total interest income

13,042

14,446

53,319

61,143

Interest expense

Deposits

1,598

2,170

6,941

13,217

Short-term borrowings

43

40

174

210

Long-term borrowings

1,214

1,210

4,802

5,596

Total interest expense

2,855

3,420

11,917

19,023

Net interest income

10,187

11,026

41,402

42,120

Provision for loan losses

(400)

650

550

6,050

Net interest income after provision for loan losses

10,587

10,376

40,852

36,070

Noninterest income

Service charges on deposit accounts

825

836

3,244

3,361

Debit card usage fees

360

335

1,453

1,329

Service fee from SmartyPig, LLC

1,314

Trust services

191

202

792

818

Gains and fees on sales of residential mortgages

640

489

1,454

1,533

Increase in cash value of bank-owned life insurance

217

205

884

869

Gain from bank-owned life insurance

2

637

422

Other income

207

285

996

1,006

Total noninterest income

2,440

2,354

9,460

10,652

Investment securities gains (losses), net

Total other than temporary impairment losses

(77)

(99)

(305)

Portion of loss recognized in other comprehensive income (loss)

before taxes

Net impairment losses recognized in earnings

(77)

(99)

(305)

Realized securities gains (losses), net

(13)

40

Investment securities gains (losses), net

(77)

(13)

(99)

(265)

Noninterest expense

Salaries and employee benefits

3,596

2,816

13,194

10,996

Occupancy

864

804

3,342

3,207

Data processing

491

449

1,921

1,815

FDIC insurance expense

187

802

1,298

3,082

Other real estate owned expense

953

1,059

2,883

1,716

Professional fees

122

255

878

959

Miscellaneous losses

302

122

455

1,330

Other expense

1,188

1,094

4,902

4,639

Total noninterest expense

7,703

7,401

28,873

27,744

Income before income taxes

5,247

5,316

21,340

18,713

Income taxes

1,515

1,816

6,072

5,330

Net income

3,732

3,500

15,268

13,383

Preferred stock dividends and accretion of discount

(571)

(2,387)

(2,284)

Net income available to common stockholders

$

3,732

$

2,929

$

12,881

$

11,099

SOURCE West Bancorporation, Inc.



RELATED LINKS

http://www.westbankiowa.com