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

Oct 28, 2011, 08:30 ET from West Bancorporation, Inc.

WEST DES MOINES, Iowa, Oct. 28, 2011 /PRNewswire/ -- West Bancorporation, Inc. (NASDAQ: WTBA), parent company of West Bank, today reported third quarter net income of $3.1 million.  This represents net income available to common shareholders of $0.18 per share.  Net income available to common shareholders for the third quarter of last year was $3.4 million, or $0.19 per common share.  Net income available to common shareholders for the first three quarters of 2011 was $9.1 million ($0.53 per share) compared to $8.2 million ($0.47 per share) for the same period in 2010.

On October 26, 2011, West Bancorporation's Board of Directors declared a quarterly dividend of $0.07 per share.  The dividend is payable on November 29, 2011, to shareholders of record on November 7, 2011.  This is an increase of $0.02 per share, or 40 percent, over the prior quarter 2011 dividend.  "We are pleased to reward our shareholders with this increased dividend especially because it is based on our increasing earnings and financial strength," said Dave Nelson, President and CEO of West Bancorporation.

The most significant reason for improved 2011 earnings has been the decline in West Bank's provision for loan losses.  The lower loan loss provision is due to improved quality in West Bank's loan portfolio.  "We are achieving our first management priority," stated Nelson.  The third quarter 2011 provision was $0 compared to $2 million during third quarter 2010.  Year to date 2011, the total provision for loan losses was $0.95 million compared to $5.4 million during the same period in 2010.

Third quarter 2011 results included write-downs on the carrying value of other real estate owned of approximately $1.7 million on a pre-tax basis.  "We follow accepted best practices of updating appraisals on other real estate owned.  We know the longer we hold real estate in this economic climate, the more susceptible we are to declines in value," stated Nelson.  "The write-downs were on land and developed lots, which we believe is the weakest segment of our real estate market.  We are looking for buyers, and they are looking for bargains." On an after-tax basis, the write-downs lowered third quarter earnings by approximately six cents per share.  

Loans outstanding increased $28.5 million during third quarter 2011.  "In the present economy, it is encouraging to see any increase in loans," added Nelson.  "We are working hard to grow the loan portfolio and expect further success during the fourth quarter."  Total loans as of September 30, 2011, were $867 million compared to $926 million one year earlier.

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 third quarter 2011 results during a conference call scheduled for today, Friday, October 28, 2011, at 2:00 p.m. Central Time.  The telephone number for the conference call is 877-317-6789.  A recording of the call will be available until November 14, 2011, at 877-344-7529, pass code: 447164.  

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 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

September 30, 2011

September 30, 2010

Assets

Cash and due from banks

$

44,851

$

32,979

Short-term investments

7,922

55,608

Securities

258,428

269,835

Loans held for sale

3,416

3,167

Loans

866,615

926,465

Allowance for loan losses

(17,476)

(19,085)

Loans, net

849,139

907,380

Bank-owned life insurance

25,506

25,190

Other real estate owned

12,402

19,740

Other assets

24,935

35,252

Total assets

$

1,226,599

$

1,349,151

Liabilities and Stockholders' Equity

Deposits:

Noninterest-bearing

$

258,024

$

234,120

Interest-bearing:

Demand

149,910

160,155

Savings

290,109

259,104

Time of $100,000 or more

126,733

268,531

Other Time

93,763

112,292

Total deposits

918,539

1,034,202

Short-term borrowings

54,648

37,178

Long-term borrowings

125,619

125,619

Other liabilities

6,657

6,971

Stockholders' equity

121,136

145,181

Total liabilities and stockholders' equity

$

1,226,599

$

1,349,151

PER COMMON SHARE

MARKET INFORMATION (1)

Net Income

Dividends

High

Low

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

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 September 30,

Nine months ended September 30,

PERFORMANCE HIGHLIGHTS

2011

2010

2011

2010

Return on average equity

10.12

%

10.89

%

11.03

%

9.50

%

Return on average assets

0.97

%

1.03

%

1.19

%

0.82

%

Net interest margin

3.64

%

3.14

%

3.61

%

2.92

%

Efficiency ratio

51.17

%

45.86

%

48.51

%

47.82

%

WEST BANCORPORATION, INC. AND SUBSIDIARY

Financial Information (continued) (unaudited)

(in thousands, except per share data)

Three months ended

Nine months ended

September 30,

September 30,

CONSOLIDATED STATEMENTS OF OPERATIONS

2011

2010

2011

2010

Interest income

Loans

$

11,674

$

13,285

$

35,101

$

40,516

Securities

1,592

1,783

5,006

5,735

Other

43

116

170

446

Total interest income

13,309

15,184

40,277

46,697

Interest expense

Deposits

1,735

3,034

5,343

11,047

Short-term borrowings

42

52

131

170

Long-term borrowings

1,207

1,401

3,588

4,386

Total interest expense

2,984

4,487

9,062

15,603

Net interest income

10,325

10,697

31,215

31,094

Provision for loan losses

2,000

950

5,400

Net interest income after provision for loan losses

10,325

8,697

30,265

25,694

Noninterest income

Service charges on deposit accounts

864

867

2,419

2,525

Debit card usage fees

368

338

1,093

994

Service fee from SmartyPig, LLC

253

1,314

Trust services

175

210

601

616

Gains and fees on sales of residential mortgages

358

571

814

1,044

Increase in cash value of bank-owned life insurance

223

220

667

664

Gain from bank-owned life insurance

420

637

420

Other income

245

228

789

721

Total noninterest income

2,233

3,107

7,020

8,298

Investment securities gains (losses), net

Total other than temporary impairment losses

(22)

(117)

(22)

(305)

Portion of loss recognized in other comprehensive income (loss)

before taxes

Net impairment losses recognized in earnings

(22)

(117)

(22)

(305)

Realized securities gains, net

16

53

Investment securities gains (losses), net

(22)

(101)

(22)

(252)

Noninterest expense

Salaries and employee benefits

3,373

2,813

9,598

8,180

Occupancy

841

806

2,478

2,403

Data processing

500

464

1,430

1,366

FDIC insurance expense

216

835

1,111

2,280

Other real estate owned expense

1,650

(3)

1,930

657

Professional fees

297

230

756

704

Miscellaneous losses

102

220

153

1,208

Other expense

1,339

1,216

3,714

3,545

Total noninterest expense

8,318

6,581

21,170

20,343

Income before income taxes

4,218

5,122

16,093

13,397

Income taxes

1,135

1,181

4,557

3,514

Net income

3,083

3,941

11,536

9,883

Preferred stock dividends and accretion of discount

(572)

(2,387)

(1,713)

Net income available to common stockholders

$

3,083

$

3,369

$

9,149

$

8,170

SOURCE West Bancorporation, Inc.



RELATED LINKS

http://www.westbankiowa.com