2014

West Bancorporation, Inc. Declares Quarterly Dividend; Net Income Available To Common Stockholders For 2012 Improves 24 Percent; Loans Grow 11 Percent And Deposits Increase 19 Percent In 2012

WEST DES MOINES, Iowa, Jan. 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 share.  The dividend is payable on February 26, 2013, to shareholders of record on February 6, 2013. 

For 2012, net income available to common stockholders was $16.0 million, or $0.92 per diluted common share.  This compares to net income available to common stockholders for 2011 of $12.9 million, or $0.74 per diluted common share.  The most significant difference from last year was the payment in 2011 of preferred stock dividends and accretion of discount totaling $2.39 million.  The absence of preferred stock dividends and accretion in 2012 is due to the redemption of the preferred stock on June 29, 2011.

For the fourth quarter of 2012, net income available to common stockholders was $3.9 million, or $0.22 per diluted common share, compared to $3.7 million, or $0.21 per diluted common share, for the fourth quarter of 2011.  Gains and fees from the sale of residential mortgages totaled $960,000 in the fourth quarter of 2012, compared to $640,000 in the fourth quarter of 2011.  The low interest rate environment continues to result in higher volumes of mortgage activity. The provision for loan losses was $325,000 for the fourth quarter of 2012, while the provision in the same period last year was a negative $400,000.  Other real estate owned expense was $263,000 this quarter, significantly lower than the $953,000 of expense in the fourth quarter of 2011. 

"The real story for the fourth quarter of 2012 was the amount of new business West Bank was able to attract," said David Nelson, President and Chief Executive Officer of West Bancorporation, Inc., commenting on the Company's results. "Loans outstanding at the end of the year totaled $927 million.  That is up from $854 million at the end of the third quarter and $839 million at the end of 2011.   In addition, customer deposits increased by 19 percent in 2012.  We had a strong pipeline of new business throughout the year and were able to close on much of that business in the fourth quarter.  We are proud of our results this year and pleased to continue the higher level of quarterly dividend payments.  We look forward to 2013." 

The Board also set the record date for the Annual Meeting of Stockholders as February 21, 2013.  The meeting will be held April 25, 2013.

The Company intends to file its annual report on Form 10-K with the Securities and Exchange Commission around March 7, 2013.  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 2012 results during a conference call scheduled for this afternoon, Friday, January 25, 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 February 6, 2013, at 877-344-7529, pass code: 10022768. 

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 full-service offices in the Des Moines metropolitan area, two full-service offices in Iowa City, and one full-service office in Coralville.

Cautionary Note Regarding Forward-Looking Statements
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 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


December 31, 2012


December 31, 2011

Assets





Cash and due from banks


$

60,417


$

35,772

Short-term investments


111,057


51,332

Securities


304,103


294,497

Loans held for sale


3,363


4,089

Loans


927,401


838,959

Allowance for loan losses


(15,529)


(16,778)

Loans, net


911,872


822,181

Bank-owned life insurance


25,730


25,724

Other real estate owned


8,304


10,967

Other assets


22,585


24,962

Total assets


$

1,447,431


$

1,269,524






Liabilities and Stockholders' Equity





Deposits:





Noninterest-bearing


$

367,281


$

268,887

Interest-bearing:





Demand


160,745


158,141

Savings


428,710


343,312

Time of $100,000 or more


100,627


98,743

Other time


77,213


88,290

Total deposits


1,134,576


957,373

Short-term borrowings


55,596


55,841

Long-term borrowings


114,509


125,619

Other liabilities


8,163


7,240

Stockholders' equity


134,587


123,451

Total liabilities and stockholders' equity


$

1,447,431


$

1,269,524

 

 

Financial Information (continued) (unaudited)

(in thousands, except per share data)




Three months ended December 31,


Year ended December 31,

CONSOLIDATED INCOME STATEMENTS


2012


2011


2012


2011

Interest income









Loans, including fees


$

10,953


$

11,539


$

44,277


$

46,640

Securities


1,492


1,439


6,194


6,445

Other


62


64


191


234

Total interest income


12,507


13,042


50,662


53,319

Interest expense









Deposits


931


1,598


4,535


6,941

Short-term borrowings


25


43


114


174

Long-term borrowings


1,179


1,214


4,815


4,802

Total interest expense


2,135


2,855


9,464


11,917

Net interest income


10,372


10,187


41,198


41,402

Provision for loan losses


325


(400)


625


550

Net interest income after provision for loan losses


10,047


10,587


40,573


40,852

Noninterest income









Service charges on deposit accounts


773


825


3,009


3,244

Debit card usage fees


393


360


1,586


1,453

Trust services


222


191


817


792

Gains and fees on sales of residential mortgages


960


640


3,104


1,454

Increase in cash value of bank-owned life insurance


166


217


737


884

Gain from bank-owned life insurance




841


637

Investment securities impairment losses


(24)


(77)


(203)


(99)

Realized investment securities gains, net




246


Other income


209


207


857


996

Total noninterest income


2,699


2,363


10,994


9,361

Noninterest expense









Salaries and employee benefits


3,639


3,596


14,532


13,194

Occupancy


907


864


3,519


3,342

Data processing


488


491


2,070


1,921

FDIC insurance expense


156


187


672


1,298

Other real estate owned expense


263


953


1,491


2,883

Professional fees


209


122


1,064


878

Consulting fees


84


84


582


282

Other expense


1,264


1,406


4,862


5,075

Total noninterest expense


7,010


7,703


28,792


28,873

Income before income taxes


5,736


5,247


22,775


21,340

Income taxes


1,837


1,515


6,764


6,072

Net income


3,899


3,732


16,011


15,268

Preferred stock dividends and accretion of discount





(2,387)

Net income available to common stockholders


$

3,899


$

3,732


$

16,011


$

12,881

 

 

 



PER COMMON SHARE


MARKET INFORMATION (1)



Net Income









Basic and Diluted


Dividends


High


Low

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











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























(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,

SELECTED FINANCIAL MEASURES


2012


2011


2012


2011

Return on average equity


11.57%


12.08%


12.34


11.27%

Return on average assets


1.14%


1.14%


1.21


1.18%

Net interest margin


3.30%


3.49%


3.42


3.58%

Efficiency ratio


50.39%


51.59%


50.83


49.27%
















As of December 31,







2012


2011

Texas ratio






11.25%


16.33%

Allowance for loan losses ratio






1.67%


2.00%

Tangible common equity ratio






9.30%


9.72%

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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