West Bancorporation, Inc. Reports First Quarter 2011 Results and Quarterly Dividend

WEST DES MOINES, Iowa, April 28, 2011 /PRNewswire/ -- West Bancorporation, Inc. (NASDAQ: WTBA), parent company of West Bank, today reported a 42.9 percent increase in 2011 first quarter net income available to common shareholders over first quarter 2010.  First quarter 2011 net income available to common shareholders was $3.96 million ($0.23 per share) compared to $2.77 million ($0.16 per share) in first quarter 2010.  First quarter 2011 results included a $637,000 gain on bank-owned life insurance due to the death a bank officer.  This added $637,000 or approximately $0.04 per common share to earnings.

"West Bank has made great progress during the last year.  I am very proud of our team," stated President and Chief Executive Officer Dave Nelson.  "Our return on average equity, return on average assets, and net interest margin are all up substantially.  Our first quarter 2011 provision for loan losses is 75 percent lower than in first quarter 2010.  This is very good news."  First quarter 2011 return on average equity was 12.48 percent up from 10.04 percent in first quarter 2010.  Return on average assets increased to 1.39 percent from 0.83 percent during first quarter 2010.  Net interest margin increased to 3.62 percent from 2.84 percent.  The provision for loan losses fell to $0.5 million from $2 million.  Nonperforming assets have fallen 55 percent from a year ago.  The allowance for loan losses stands at 2.11 percent of total loans outstanding.

On April 27, 2011, the Company's Board of Directors declared a quarterly common stock dividend of $0.05 per share.  "We are very pleased to pay our shareholders for their confidence in West Bancorporation," reported David Milligan, Chairman of the Board.  "We currently intend to continue regular quarterly dividends."  The dividend is payable on May 31, 2011, to shareholders of record on May 9, 2011.

"Our strong performance should also allow us to finalize our TARP repayment plans in the near future," said Nelson.  "We believe the retained earnings of the Company are sufficient to repay TARP in full.  However, we have applied for the Small Business Lending Fund and filed a shelf registration statement that would allow us to sell common and preferred stock in case we need to use one or both of these options."  Stockholders' equity increased 9.78 percent from March 31, 2010, to March 31, 2011.  The Company will pay the United States Treasury $450,000 on May 15, 2011, as a quarterly preferred stock dividend.

Total loans outstanding as of March 31, 2011, were $831 million compared to $992 million a year ago and $889 million at December 31, 2010.  "We are making new quality loans, but current loan demand is less than loan payoffs," reported West Bank President Brad Winterbottom.  "Our customers continue to deleverage.  Our expanding marketing and customer retention efforts are, however, being very well received in our core markets.  We expect our loan portfolio will grow during 2011 as the economy continues to improve and we attract new customers."

West Bank's deposits totaled $950 million at March 31, 2011, down from $972 million at year end 2010.  "Certificates of deposit are disfavored at current low interest rates," reported Winterbottom.  "The reduction in deposits from a year ago is also significantly related to the transfer of the SmartyPig® deposits that we accomplished in July 2010."

West Bancorporation and West Bank have strong capital positions.  West Bank's capital substantially exceeds all of the FDIC's well-capitalized standards.  For example, West Bank's total regulatory capital is $167,051,000, which is $75,362,000 above the amount needed to be considered well-capitalized.  West Bancorporation and West Bank also have better capital ratios than the average of their peer institutions.  The following table shows West Bank's regulatory capital dollar amounts and ratios as of March 31, 2011, and the average capital ratios for all US bank holding companies and banks with total assets between one and three billion dollars as of December 31, 2010, which is the latest data available.  












Average of







Requirements to Be


Peer



Actual


Well-Capitalized


Group

(in thousands)


Amount


Ratio


Amount


Ratio


Ratio

As of March 31, 2011:











Total Capital (to Risk-Weighted Assets)











West Bancorporation


$

184,042



19.3

%


n/a     


n/a        


14.4

%

West Bank


167,051



18.2

%


$

91,689



10.0

%


14.0

%












Tier I Capital (to Risk-Weighted Assets)











West Bancorporation


172,059



18.1

%


n/a     


n/a        


12.8

%

West Bank


155,515



17.0

%


55,013



6.0

%


12.7

%












Tier I Capital (to Average Assets)











West Bancorporation


172,059



13.0

%


n/a     


n/a        


9.0

%

West Bank


155,515



11.9

%


65,383



5.0

%


8.9

%




The Company filed its quarterly report on Form 10-Q with the Securities and Exchange Commission today.  Please refer to that document for a more in-depth discussion of our results.  This document is also available on the Investor Relations section of West Bank's website at www.westbankiowa.com.

The Company will discuss its first quarter 2011 results during a conference call scheduled for 2:00 p.m. Central Time, Friday, April 29, 2011.  The telephone number for the conference call is 877-317-6789.  A recording of the call will be available until May 16, 2011, at 877-344-7529, pass code: 447162.  

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.

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 the Treasury's Capital Purchase Program; changes in customers' acceptance of the Company's products and services; and any other risks described in the "Risk Factors" sections of reports made by the Company to 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, 2011


March 31, 2010

Assets





Cash and due from banks


$

28,664



$

26,786


Short-term investments


105,466



269,625


Securities


272,295



330,851


Loans held for sale


1,041



1,381


Loans


830,578



992,101


Allowance for loan losses


(17,510)



(20,273)


Loans, net


813,068



971,828


Bank-owned life insurance


25,616



25,618


Other real estate owned


16,149



26,974


Other assets


29,288



38,262


Total assets


$

1,291,587



$

1,691,325







Liabilities and Stockholders' Equity





Deposits:





Noninterest-bearing


$

236,172



$

220,019


Interest-bearing:





Demand


146,420



162,790


Savings


316,113



576,090


Time of $100,000 or more


150,918



275,298


Other Time


100,451



121,757


Total deposits


950,074



1,355,954


Short-term borrowings


58,474



66,466


Long-term borrowings


125,619



125,619


Other liabilities


7,051



6,312


Stockholders' equity


150,369



136,974


Total liabilities and stockholders' equity


$

1,291,587



$

1,691,325













PER COMMON SHARE


MARKET INFORMATION (1)



Net Income


Dividends


High


Low

2011









1st quarter


$

0.23



$

-



$

8.00



$

6.75











2010









1st quarter


$

0.16



$

-



$

6.64



$

4.80


2nd quarter


0.12



-



9.04



6.32


3rd quarter


0.19



-



7.28



5.51


4th quarter


0.17



0.05



8.19



6.13



(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,

PERFORMANCE HIGHLIGHTS


2011


2010

Return on average equity


12.48

%


10.04

%

Return on average assets


1.39

%


0.83

%

Net interest margin


3.62

%


2.84

%

Efficiency ratio


47.50

%


46.05

%



WEST BANCORPORATION, INC. AND SUBSIDIARY

Financial Information (continued) (unaudited)

(in thousands, except per share data)



Three months ended March 31,

CONSOLIDATED STATEMENTS OF OPERATIONS


2011


2010

Interest income





Loans


$

11,793



$

13,706


Securities


1,718



1,976


Other


61



147


Total interest income


13,572



15,829


Interest expense





Deposits


1,865



4,040


Short-term borrowings


46



56


Long-term borrowings


1,184



1,599


Total interest expense


3,095



5,695


Net interest income


10,477



10,134


Provision for loan losses


500



2,000


Net interest income after provision for loan losses


9,977



8,134


Noninterest income





Service charges on deposit accounts


750



838


Debit card usage fees


347



308


Service fee from SmartyPig, LLC


-



267


Trust services


219



208


Gains and fees on sales of residential mortgages


184



187


Increase in cash value of bank-owned life insurance


221



218


Gain from bank-owned life insurance


637



-


Other income


313



246


Total noninterest income


2,671



2,272


Investment securities gains (losses), net





Total other than temporary impairment losses


-



-


Portion of loss recognized in other comprehensive income (loss) before taxes


-



-


Net impairment losses recognized in earnings


-



-


Realized securities gains, net


-



46


Investment securities gains (losses), net


-



46


Noninterest expense





Salaries and employee benefits


3,055



2,592


Occupancy


816



801


Data processing


451



433


FDIC insurance expense


549



562


Other real estate owned expense


187



110


Professional fees


222



248


Miscellaneous losses


24



67


Other expense


1,172



1,183


Total noninterest expense


6,476



5,996


Income before income taxes


6,172



4,456


Income taxes


1,642



1,117


Net income


4,530



3,339


Preferred stock dividends and accretion of discount


(571)



(569)


Net income available to common stockholders


$

3,959



$

2,770





SOURCE West Bancorporation, Inc.



RELATED LINKS
http://www.westbankiowa.com

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