WEST BANCORPORATION, INC. 
By WEST DES MOINES, Iowa, Jan. 27, 2012 /PRNewswire/ -- West Bancorporation, Inc. (NASDAQ: WTBA), parent company of West Bank, today reported fourth quarter net income available to common shareholders of $3.7 million. This represents $0.21 per share. Net income available to common shareholders for the fourth quarter of 2010 was $2.9 million, or $0.17 per common share. Net income available to common shareholders for the entire year of 2011 was $12.9 million ($.74 per share) compared to $11.1 million ($.64 per share) for the same period in 2010, representing a 16.1 percent increase. The common stock of the Company registered a 23 percent increase in value during 2011.
On January 25, 2012, West Bancorporation's Board of Directors declared a quarterly dividend of $0.08 per share. The dividend is payable on February 28, 2012, to shareholders of record on February 6, 2012. This is an increase of $0.01 per share, or 14 percent, over the previous quarterly dividend.
The provision for loan losses for 2011 was $5.5 million less than 2010. The provision for loan losses for the fourth quarter of 2011 was actually a credit of $400,000. "It is somewhat uncommon to reduce the allowance for loan losses through a "negative" provision, but a combination of a significant loan recovery, improving net charge-off experience and a decline in the loans outstanding required that result," said Dave Nelson, President and CEO of West Bancorporation. Following growth during the second and third quarters, loans outstanding declined $27.7 million during fourth quarter 2011. This was attributable to the unexpected payoff of three large loans. "Our loan pipeline is improving and we believe over the long term West Bank is well positioned to grow its loan portfolio," reported Nelson.
Fourth quarter 2011 results included write-downs on the carrying value of other real estate owned of $898,000 on a pre-tax basis. This is lower than the write-down in the third quarter, but signifies the continued weakness in the real estate market, particularly for land and developed lots.
The Board also set the record date for the Annual Meeting of Shareholders as February 23, 2012. The meeting will be held April 26, 2012.
The Company intends to file its annual report on Form 10-K with the Securities and Exchange Commission around March 9, 2012. 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 2011 results during a conference call scheduled for today, Friday, January 27, 2012, 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 February 9, 2012, at 877-344-7529, pass code: 10008377.
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)
December 31, December 31,
CONSOLIDATED STATEMENTS OF CONDITION 2011 2010
------------------------------------ ------------- -------------
Assets
Cash and due from banks $35,772 $20,069
Short-term investments 51,332 67,885
Securities 294,497 267,537
Loans held for sale 4,089 4,452
Loans 838,959 888,649
Allowance for loan losses (16,778) (19,087)
------- -------
Loans, net 822,181 869,562
Bank-owned life insurance 25,724 25,395
Other real estate owned 10,967 19,193
Other assets 24,962 31,370
------ ------
Total assets $1,269,524 $1,305,463
========== ==========
Liabilities and Stockholders' Equity
Deposits:
Noninterest-bearing $268,887 $230,277
Interest-bearing:
Demand 158,141 142,031
Savings 343,312 313,850
Time of $100,000 or more 98,743 178,388
Other Time 88,290 107,526
------ -------
Total deposits 957,373 972,072
Short-term borrowings 55,841 55,009
Long-term borrowings 125,619 125,619
Other liabilities 7,240 7,327
Stockholders' equity 123,451 145,436
------- -------
Total liabilities and stockholders' equity $1,269,524 $1,305,463
========== ==========
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
4th quarter 0.21 0.07 10.39 7.92
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 December
31, Year ended December 31,
PERFORMANCE
HIGHLIGHTS 2011 2010 2011 2010
----------- ---- ---- ---- ----
Return on average
equity 12.08% 9.45% 11.27% 9.49%
Return on average
assets 1.14% 0.98% 1.18% 0.86%
Net interest margin 3.49% 3.46% 3.58% 3.04%
Efficiency ratio 51.59% 45.68% 49.27% 47.28%
WEST BANCORPORATION, INC. AND
SUBSIDIARY
Financial Information
(continued) (unaudited)
(in thousands, except per
share data)
Three months ended Year ended
December 31, December 31,
CONSOLIDATED STATEMENTS OF
OPERATIONS 2011 2010 2011 2010
-------------------------- ---- ---- ---- ----
Interest income
Loans $11,539 $12,699 $46,640 $53,215
Securities 1,439 1,652 6,445 7,387
Other 64 95 234 541
--- --- --- ---
Total interest income 13,042 14,446 53,319 61,143
------ ------ ------ ------
Interest expense
Deposits 1,598 2,170 6,941 13,217
Short-term borrowings 43 40 174 210
Long-term borrowings 1,214 1,210 4,802 5,596
----- ----- ----- -----
Total interest expense 2,855 3,420 11,917 19,023
----- ----- ------ ------
Net interest income 10,187 11,026 41,402 42,120
Provision for loan losses (400) 650 550 6,050
---- --- --- -----
Net interest income after
provision for loan losses 10,587 10,376 40,852 36,070
------ ------ ------ ------
Noninterest income
Service charges on deposit
accounts 825 836 3,244 3,361
Debit card usage fees 360 335 1,453 1,329
Service fee from SmartyPig,
LLC - - - 1,314
Trust services 191 202 792 818
Gains and fees on sales of
residential mortgages 640 489 1,454 1,533
Increase in cash value of
bank-owned life insurance 217 205 884 869
Gain from bank-owned life
insurance - 2 637 422
Other income 207 285 996 1,006
--- --- --- -----
Total noninterest income 2,440 2,354 9,460 10,652
----- ----- ----- ------
Investment securities gains
(losses), net
Total other than temporary
impairment losses (77) - (99) (305)
Portion of loss recognized in
other comprehensive income
(loss)
before taxes - - - -
--- --- --- ---
Net impairment losses
recognized in earnings (77) - (99) (305)
Realized securities gains
(losses), net - (13) - 40
--- --- --- ---
Investment securities gains
(losses), net (77) (13) (99) (265)
--- --- --- ----
Noninterest expense
Salaries and employee
benefits 3,596 2,816 13,194 10,996
Occupancy 864 804 3,342 3,207
Data processing 491 449 1,921 1,815
FDIC insurance expense 187 802 1,298 3,082
Other real estate owned
expense 953 1,059 2,883 1,716
Professional fees 122 255 878 959
Miscellaneous losses 302 122 455 1,330
Other expense 1,188 1,094 4,902 4,639
----- ----- ----- -----
Total noninterest expense 7,703 7,401 28,873 27,744
----- ----- ------ ------
Income before income taxes 5,247 5,316 21,340 18,713
Income taxes 1,515 1,816 6,072 5,330
----- ----- ----- -----
Net income 3,732 3,500 15,268 13,383
Preferred stock dividends and
accretion of discount - (571) (2,387) (2,284)
--- ---- ------ ------
Net income available to
common stockholders $3,732 $2,929 $12,881 $11,099
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SOURCE West Bancorporation, Inc.
