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

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.



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