2014

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

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.



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http://www.westbankiowa.com

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