West Bancorporation, Inc. Declares Quarterly Dividend; Announces First Quarter Results

Apr 25, 2013, 08:30 ET from West Bancorporation, Inc.

WEST DES MOINES, Iowa, April 25, 2013 /PRNewswire/ -- West Bancorporation, Inc. (NASDAQ: WTBA), parent company of West Bank, is pleased to report that its Board of Directors declared a quarterly dividend of $0.10 per common share.  The dividend is payable on May 28, 2013, to shareholders of record on May 8, 2013. 

For the first quarter of 2013, net income was $3.95 million, or $0.23 per basic and diluted common share.  This compares to net income for the first quarter of 2012 of $3.98 million, which was also $0.23 per basic and diluted common share.

"During the first quarter of 2013, the loan portfolio grew by $9.6 million.  As of March 31, 2013, our loans were $88 million, or 10 percent, higher than a year ago," stated David Nelson, President and Chief Executive Officer of West Bancorporation, Inc.  "We also added $93 million to the investment securities portfolio during the quarter, which should enhance earnings going forward.  But the most exciting news for our Company is the opening of a loan production office in Rochester, Minnesota.  We have hired three experienced bankers in that market and have attracted a respected community advisory board to help enhance the opportunities for growth in this location.  My contacts and knowledge of that area from living there for 15 years prior to joining West Bank should also help generate business.  The Rochester loan production office officially opened on March 18, 2013."

Because of continued growth in mortgage banking, West Bank added a sales manager to provide leadership in this area.  We continue to work toward our goal of having a mortgage originator in each banking location.

The new Grand Avenue branch building officially opened on March 28.  We believe that it is a significant improvement from the previous structure and has been very well received by the surrounding neighborhood.

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 quarterly results.  The Form 10-Q is available on the Investor Relations section of West Bank's website at www.WestBankStrong.com.  Our website address became www.WestBankStrong.com effective on April 15, 2013.  The change reflects our expansion beyond the state of Iowa and signifies our opinion that we operate from a position of strength.

The Company will discuss its first quarter 2013 results during a conference call scheduled for tomorrow afternoon, Friday, April 26, 2013, at 2:00 p.m. Central Time.  The telephone number for the conference call is 877-317-6016.  A recording of the call will be available until May 6, 2013, at 877-344-7529, pass code: 10022849. 

About West Bancorporation, Inc. 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, one full-service office in Coralville and a loan production office in Rochester, Minnesota.

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," "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 filed by the Company with 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

March 31, 2013

March 31, 2012

Assets

Cash and due from banks

$

34,634

$

32,803

Short-term investments

22,534

75,703

Securities

397,451

317,663

Loans held for sale

1,724

901

Loans

937,031

849,041

Allowance for loan losses

(15,632)

(16,651)

Loans, net

921,399

832,390

Bank-owned life insurance

25,890

25,923

Other real estate owned

8,232

9,963

Other assets

24,858

25,858

Total assets

$

1,436,722

$

1,321,204

Liabilities and Stockholders' Equity

Deposits:

Noninterest-bearing

$

316,898

$

272,018

Interest-bearing:

Demand

158,055

163,553

Savings

454,735

374,530

Time of $100,000 or more

108,714

73,756

Other time

75,053

85,173

Total deposits

1,113,455

969,030

Short-term borrowings

64,258

93,496

Long-term borrowings

114,884

125,619

Other liabilities

7,633

6,790

Stockholders' equity

136,492

126,269

Total liabilities and stockholders' equity

$

1,436,722

$

1,321,204

Financial Information (continued) (unaudited)

(in thousands, except per share data)

Three Months Ended March 31,

CONSOLIDATED INCOME STATEMENTS

2013

2012

Interest income

Loans, including fees

$

10,908

$

11,190

Securities

1,601

1,474

Other

63

42

Total interest income

12,572

12,706

Interest expense

Deposits

879

1,279

Short-term borrowings

27

37

Long-term borrowings

842

1,212

Total interest expense

1,748

2,528

Net interest income

10,824

10,178

Provision for loan losses

150

Net interest income after provision for loan losses

10,674

10,178

Noninterest income

Service charges on deposit accounts

708

730

Debit card usage fees

393

378

Trust services

239

204

Gains and fees on sales of residential mortgages

511

747

Increase in cash value of bank-owned life insurance

160

199

Investment securities impairment losses

(46)

Realized investment securities gains, net

(33)

Other income

210

222

Total noninterest income

2,221

2,401

Noninterest expense

Salaries and employee benefits

3,969

3,636

Occupancy

933

857

Data processing

483

501

FDIC insurance expense

189

166

Other real estate owned expense

16

82

Professional fees

303

292

Consulting fees

57

186

Other expense

1,296

1,145

Total noninterest expense

7,246

6,865

Income before income taxes

5,649

5,714

Income taxes

1,701

1,737

Net income

$

3,948

$

3,977

PER COMMON SHARE

MARKET INFORMATION (1)

Net Income

Basic and Diluted

Dividends

High

Low

2013

1st Quarter

$

0.23

$

0.10

$

11.72

$

10.46

2012

1st Quarter

$

0.23

$

0.08

$

10.46

$

8.71

2nd Quarter

0.25

0.08

10.22

9.02

3rd Quarter

0.22

0.10

12.35

9.38

4th Quarter

0.22

0.10

12.29

9.75

 

(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 March 31,

SELECTED FINANCIAL MEASURES

2013

2012

Return on average equity

11.84

%

12.82

%

Return on average assets

1.12

%

1.23

%

Net interest margin

3.36

%

3.50

%

Efficiency ratio

53.87

%

51.82

%

As of March 31,

2013

2012

Texas ratio

11.03

%

15.28

%

Allowance for loan losses ratio

1.67

%

1.96

%

Tangible common equity ratio

9.50

%

9.56

%

 

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.



RELATED LINKS

http://www.westbankiowa.com