2014

West Bancorporation, Inc. Increases Quarterly Dividend 2nd Time In Past 12 Months; Earnings Per Share Up 17 Percent

WEST DES MOINES, Iowa, April 24, 2014 /PRNewswire/ -- West Bancorporation, Inc. (NASDAQ: WTBA), parent company of West Bank, is pleased to report that its Board of Directors increased the quarterly dividend to $0.12 per share.  It had been $0.11 per share for the past three quarters.  The dividend is payable on May 27, 2014, to shareholders of record on May 7, 2014.

"We are pleased to increase the dividend to our shareholders for the second time in the past 12 months.  Our board and management believe the earnings of the Company are at a level that is consistent and sustainable and at a level that will support growth as well as allow for this higher dividend," stated David Nelson, President and Chief Executive Officer of West Bancorporation, Inc.

For the first quarter of 2014, net income was $4.40 million, or $0.27 per diluted common share.  This compares to net income for the first quarter of 2013 of $3.95 million, or $0.23 per diluted common share.

"During the first quarter of 2014, the loan portfolio grew by $27 million.  Our loans are $82 million higher than a year ago," commented Nelson.  "Part of that growth came from our office in Rochester, Minnesota, which opened one year ago.  That office became profitable early in the first quarter of this year, just nine months after opening.  This is a testament to the people we hired and the potential in that market."

"A financial metric that analysts and investors look at is revenue growth.  The most significant revenue item for our Company is interest income.  For the first quarter of 2014, our interest income was 6.2 percent higher than the first quarter of last year," added Mr. Nelson.

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

The Company will discuss its first quarter 2014 results during a conference call scheduled for tomorrow afternoon, Friday, April 25, 2014, 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 May 8, 2014, at 877-344-7529, pass code: 10038837.

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, one full-service office in Coralville and an 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)














CONSOLIDATED BALANCE SHEETS


March 31, 2014


March 31, 2013

Assets







Cash and due from banks


$

58,565



$

34,634


Short-term investments


27,581



22,534


Investment securities


352,410



397,451


Loans held for sale


821



1,724


Loans


1,019,367



937,031


Allowance for loan losses


(13,283)



(15,632)


Loans, net


1,006,084



921,399


Bank-owned life insurance


26,530



25,890


Other real estate owned


5,020



8,232


Other assets


28,875



24,858


Total assets


$

1,505,886



$

1,436,722









Liabilities and Stockholders' Equity







Deposits:







Noninterest-bearing


$

348,339



$

316,898


Interest-bearing:







  Demand


272,946



158,055


  Savings


455,321



454,735


  Time of $100,000 or more


96,188



108,714


  Other time


63,226



75,053


Total deposits


1,236,020



1,113,455


Short-term borrowings


5,395



64,258


Long-term borrowings


131,501



114,884


Other liabilities


5,398



7,633


Stockholders' equity


127,572



136,492


Total liabilities and stockholders' equity


$

1,505,886



$

1,436,722


         

Financial Information (continued) (unaudited)







(in thousands)









Three Months Ended March 31,

CONSOLIDATED STATEMENTS OF INCOME


2014



2013


Interest income







Loans, including fees


$

11,330



$

10,908


Investment securities


2,006



1,601


Other


10



63


Total interest income


13,346



12,572


Interest expense







Deposits


622



879


Short-term borrowings


13



27


Long-term borrowings


903



842


Total interest expense


1,538



1,748


Net interest income


11,808



10,824


Provision for loan losses




150


Net interest income after provision for loan losses


11,808



10,674


Noninterest income







Service charges on deposit accounts


679



708


Debit card usage fees


410



393


Trust services


318



239


Gains and fees on sales of residential mortgages


226



511


Increase in cash value of bank-owned life insurance


154



160


Realized investment securities gains, net


506




Other income


260



210


Total noninterest income


2,553



2,221


Noninterest expense







Salaries and employee benefits


4,111



3,969


Occupancy


1,011



933


Data processing


522



483


FDIC insurance expense


181



189


Other real estate owned expense


286



16


Other expenses


1,891



1,656


Total noninterest expense


8,002



7,246


Income before income taxes


6,359



5,649


Income taxes


1,959



1,701


Net income


$

4,400



$

3,948


         

Financial Information (continued) (unaudited)
























PER COMMON SHARE


MARKET INFORMATION (1)



Net Income












Basic


Diluted


Dividends


High


Low

2014
















1st Quarter


$0.28


$0.27


$0.11


$15.98


$13.64

















2013
















4th Quarter


$0.27


$0.27


$0.11


$16.64


$13.34

3rd Quarter


0.27


0.27


0.11


14.50


11.74

2nd Quarter


0.25


0.25


0.10


12.27


10.10

1st Quarter


0.23


0.23


0.10


11.72


10.46


(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


2014


2013

Return on average equity


14.17

%


11.84

%

Return on average assets


1.23

%


1.12

%

Net interest margin


3.64

%


3.36

%

Efficiency ratio


53.76

%


53.87

%










As of March 31,



2014


2013

Texas ratio


6.99

%


11.03

%

Allowance for loan losses ratio


1.30

%


1.67

%

Tangible common equity ratio


8.47

%


9.50

%

 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) 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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