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

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

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