2014

West Bancorporation, Inc. Declares Quarterly Dividend; Announces Third Quarter Net Income Up 16 Percent

WEST DES MOINES, Iowa, Oct. 25, 2013 /PRNewswire/ -- West Bancorporation, Inc. (NASDAQ: WTBA) (the "Company"), parent company of West Bank, is pleased to report that at its meeting on October 23, 2013, the Board of Directors declared a quarterly dividend of $0.11 per share.  The dividend is payable on November 26, 2013 to shareholders of record on November 6, 2013. 

For the third quarter of 2013, net income increased by 16.3 percent to $4.36 million, or $0.27 per diluted common share, compared to $3.75 million, or $0.22 per diluted common share, for the third quarter of 2012.

Net interest income for the third quarter of 2013 improved 13.3 percent over the same period last year, primarily as a result of loan growth.  Average loans outstanding for the third quarter of 2013 increased by $118.0 million, or 13.9 percent, when compared to the third quarter of 2012.  Loans outstanding at the end of the third quarter of 2013 attributable to our new Rochester, Minnesota, office totaled $7.2 million.  Because of overall improvement in credit quality, the provision for loan losses for the third quarter was a negative $1.0 million, which represented an increase in income rather than an expense.  For the third quarter last year, the provision for loan losses was an expense of $300,000.  Trust income was higher than last year due to new accounts and an increase in the value of assets under management.  Conversely, higher mortgage interest rates caused gains and fees from the sales of residential mortgages to decline due to a slight decrease in volume and lower margins.  Total noninterest expenses for the third quarter of 2013 were higher than the third quarter last year because of higher other real estate owned expenses and an increase in the number of West Bank employees.  

For the second year in a row, our Company was named a Sm-All Star by the investment banking firm Sandler O'Neill + Partners ("SOP").  According to financial criteria defined by SOP, we are one of the top 31 small cap publicly-traded bank holding companies in the United States.  For purposes of this analysis, small cap companies are those with a market value between $25 million and $2.5 billion.  "We are very pleased to be included in this group again this year," commented David Nelson, president and chief executive officer of the Company.  "It feels good to have people who understand our industry recognize our Company as one of the best banks in America."

For the first nine months of 2013, net income was $12.6 million, or $0.75 per diluted common share, compared to $12.1 million, or $0.69 per diluted common share for the same period in 2012, an increase of 4.1 percent. 

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 financial results.  The Form 10-Q document is available on the Investor Relations section of West Bank's website at www.westbankstrong.com.

The Company will discuss its third quarter 2013 results during a conference call scheduled for this afternoon, Friday, October 25, 2013, at 2:00 p.m. Central Time.  The telephone number for the conference call is (888) 317-6016.  A recording of the call will be available until November 4, 2013, at (877) 344-7529, passcode: 10022858. 

About West Bancorporation, Inc. (NASDAQ: WTBA)
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 offices in the Des Moines metropolitan area, two offices in Iowa City, one office in Coralville and one 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


September 30, 2013


September 30, 2012

Assets





Cash and due from banks


$

62,592



$

37,707


Short-term investments


29,400



4,120


Securities


371,185



322,750


Loans held for sale


421



6,471


Loans


959,016



854,205


Allowance for loan losses


(14,741)



(15,637)


Loans, net


944,275



838,568


Bank-owned life insurance


26,222



25,563


Other real estate owned


6,276



8,894


Other assets


30,742



23,893


Total assets


$

1,471,113



$

1,267,966







Liabilities and Stockholders' Equity





Deposits:





Noninterest-bearing


$

347,957



$

291,497


Interest-bearing:





Demand


164,993



151,686


Savings


495,550



316,931


Time of $100,000 or more


87,604



88,957


Other time


69,688



79,855


Total deposits


1,165,792



928,926


Short-term borrowings


44,458



73,084


Long-term borrowings


132,384



125,619


Other liabilities


7,322



7,694


Stockholders' equity


121,157



132,643


Total liabilities and stockholders' equity


$

1,471,113



$

1,267,966















 

 

Financial Information (continued) (unaudited)




(in thousands, except per share data)






Three months ended September 30,

Nine Months Ended September 30,

CONSOLIDATED INCOME STATEMENTS



2013


2012


2013


2012

Interest income









Loans, including fees


$

11,382



$

10,928



$

33,617



$

33,324


Securities


2,042



1,589



5,561



4,702


Other


20



36



99



129


Total interest income


13,444



12,553



39,277



38,155


Interest expense









Deposits


854



1,054



2,591



3,604


Short-term borrowings


23



23



76



89


Long-term borrowings


941



1,219



2,627



3,636


Total interest expense


1,818



2,296



5,294



7,329


Net interest income


11,626



10,257



33,983



30,826


Provision for loan losses


(1,000)



300



(850)



300


Net interest income after provision for loan









losses


12,626



9,957



34,833



30,526


Noninterest income









Service charges on deposit accounts


747



768



2,190



2,236


Debit card usage fees


527



403



1,351



1,193


Trust services


266



201



743



595


Gains and fees on sales of residential mortgages


212



816



949



2,144


Increase in cash value of bank-owned life









insurance


162



181



492



571


Gain from bank-owned life insurance








841


Investment securities impairment losses




(6)





(179)


Realized investment securities gains, net








246


Other income


216



185



643



648


Total noninterest income


2,130



2,548



6,368



8,295


Noninterest expense









Salaries and employee benefits


4,007



3,686



11,962



10,893


Occupancy


984



880



2,917



2,612


Data processing


532



576



1,515



1,582


FDIC insurance expense


182



183



547



516


Other real estate owned expense


1,137



240



1,138



1,228


Professional fees


286



276



922



855


Consulting fees


58



191



227



498


Other expenses


1,227



1,072



3,846



3,598


Total noninterest expense


8,413



7,104



23,074



21,782


Income before income taxes


6,343



5,401



18,127



17,039


Income taxes


1,980



1,649



5,518



4,927


Net income


$

4,363



$

3,752



$

12,609



$

12,112


 

 

 

Financial Information (continued) (unaudited)







(in thousands, except per share data)
















PER COMMON SHARE

MARKET INFORMATION (1)




Net Income









Basic and Diluted


Dividends


High


Low

2013









3rd Quarter


$

0.27



$

0.11



$

14.50



$

11.74

2nd Quarter


0.25



0.10



12.27



10.10

1st Quarter


0.23



0.10



11.72



10.46










2012









4th Quarter


$

0.22



$

0.10



$

12.29



$

9.75

3rd Quarter


0.22



0.10



12.35



9.38

2nd Quarter


0.25



0.08



10.22



9.02

1st Quarter


0.23



0.08



10.46



8.71





































(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 September 30,


Nine Months Ended September 30,

SELECTED FINANCIAL MEASURES


2013


2012


2013


2012

Return on average equity


14.41

%


11.36

%


13.02

%


12.61

%

Return on average assets


1.19

%


1.14

%


1.17

%


1.23

%

Net interest margin


3.49

%


3.45

%


3.45

%


3.46

%

Efficiency ratio


51.14

%


51.92

%


52.70

%


50.98

%
















As of September 30,







2013


2012

Texas ratio






12.46

%


12.99

%

Allowance for loan losses ratio






1.54

%


1.83

%

Tangible common equity ratio






8.24

%


10.46

%






















 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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