WEST BANCORPORATION, INC. 
By WEST DES MOINES, Iowa, Jan. 25, 2013 /PRNewswire/ -- West Bancorporation, Inc. (NASDAQ: WTBA), parent company of West Bank, is pleased to report that its Board of Directors declared a quarterly dividend of $0.10 per share. The dividend is payable on February 26, 2013, to shareholders of record on February 6, 2013.
For 2012, net income available to common stockholders was $16.0 million, or $0.92 per diluted common share. This compares to net income available to common stockholders for 2011 of $12.9 million, or $0.74 per diluted common share. The most significant difference from last year was the payment in 2011 of preferred stock dividends and accretion of discount totaling $2.39 million. The absence of preferred stock dividends and accretion in 2012 is due to the redemption of the preferred stock on June 29, 2011.
For the fourth quarter of 2012, net income available to common stockholders was $3.9 million, or $0.22 per diluted common share, compared to $3.7 million, or $0.21 per diluted common share, for the fourth quarter of 2011. Gains and fees from the sale of residential mortgages totaled $960,000 in the fourth quarter of 2012, compared to $640,000 in the fourth quarter of 2011. The low interest rate environment continues to result in higher volumes of mortgage activity. The provision for loan losses was $325,000 for the fourth quarter of 2012, while the provision in the same period last year was a negative $400,000. Other real estate owned expense was $263,000 this quarter, significantly lower than the $953,000 of expense in the fourth quarter of 2011.
"The real story for the fourth quarter of 2012 was the amount of new business West Bank was able to attract," said David Nelson, President and Chief Executive Officer of West Bancorporation, Inc., commenting on the Company's results. "Loans outstanding at the end of the year totaled $927 million. That is up from $854 million at the end of the third quarter and $839 million at the end of 2011. In addition, customer deposits increased by 19 percent in 2012. We had a strong pipeline of new business throughout the year and were able to close on much of that business in the fourth quarter. We are proud of our results this year and pleased to continue the higher level of quarterly dividend payments. We look forward to 2013."
The Board also set the record date for the Annual Meeting of Stockholders as February 21, 2013. The meeting will be held April 25, 2013.
The Company intends to file its annual report on Form 10-K with the Securities and Exchange Commission around March 7, 2013. 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 2012 results during a conference call scheduled for this afternoon, Friday, January 25, 2013, at 2:00 p.m. Central Time. The telephone number for the conference call is 877-317-6016. A recording of the call will be available until February 6, 2013, at 877-344-7529, pass code: 10022768.
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, and one full-service office in Coralville.
Cautionary Note Regarding Forward-Looking Statements
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 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, except per share data)
CONSOLIDATED December 31, December 31,
STATEMENTS OF 2012 2011
CONDITION
-------------- ------------- -------------
Assets
Cash and due from
banks $60,417 $35,772
Short-term
investments 111,057 51,332
Securities 304,103 294,497
Loans held for
sale 3,363 4,089
Loans 927,401 838,959
Allowance for
loan losses (15,529) (16,778)
------- -------
Loans, net 911,872 822,181
Bank-owned life
insurance 25,730 25,724
Other real estate
owned 8,304 10,967
Other assets 22,585 24,962
------ ------
Total assets $1,447,431 $1,269,524
========== ==========
Liabilities and
Stockholders'
Equity
Deposits:
Noninterest-
bearing $367,281 $268,887
Interest-bearing:
Demand 160,745 158,141
Savings 428,710 343,312
Time of $100,000
or more 100,627 98,743
Other time 77,213 88,290
------ ------
Total deposits 1,134,576 957,373
Short-term
borrowings 55,596 55,841
Long-term
borrowings 114,509 125,619
Other liabilities 8,163 7,240
Stockholders'
equity 134,587 123,451
------- -------
Total liabilities
and
stockholders'
equity $1,447,431 $1,269,524
========== ==========
Financial Information (continued) (unaudited)
(in thousands, except per share data)
Three months ended December
31, Year ended December 31,
CONSOLIDATED INCOME
STATEMENTS 2012 2011 2012 2011
------------------- ---- ---- ---- ----
Interest income
Loans, including fees $10,953 $11,539 $44,277 $46,640
Securities 1,492 1,439 6,194 6,445
Other 62 64 191 234
--- --- --- ---
Total interest income 12,507 13,042 50,662 53,319
------ ------ ------ ------
Interest expense
Deposits 931 1,598 4,535 6,941
Short-term borrowings 25 43 114 174
Long-term borrowings 1,179 1,214 4,815 4,802
----- ----- ----- -----
Total interest expense 2,135 2,855 9,464 11,917
----- ----- ----- ------
Net interest income 10,372 10,187 41,198 41,402
Provision for loan losses 325 (400) 625 550
--- ---- --- ---
Net interest income after
provision for loan losses
10,047 10,587 40,573 40,852
Noninterest income
Service charges on deposit
accounts 773 825 3,009 3,244
Debit card usage fees 393 360 1,586 1,453
Trust services 222 191 817 792
Gains and fees on sales of
residential mortgages 960 640 3,104 1,454
Increase in cash value of
bank-owned life
insurance 166 217 737 884
Gain from bank-owned life
insurance - - 841 637
Investment securities
impairment losses (24) (77) (203) (99)
Realized investment
securities gains, net - - 246 -
Other income 209 207 857 996
--- --- --- ---
Total noninterest income 2,699 2,363 10,994 9,361
----- ----- ------ -----
Noninterest expense
Salaries and employee
benefits 3,639 3,596 14,532 13,194
Occupancy 907 864 3,519 3,342
Data processing 488 491 2,070 1,921
FDIC insurance expense 156 187 672 1,298
Other real estate owned
expense 263 953 1,491 2,883
Professional fees 209 122 1,064 878
Consulting fees 84 84 582 282
Other expense 1,264 1,406 4,862 5,075
----- ----- ----- -----
Total noninterest expense 7,010 7,703 28,792 28,873
----- ----- ------ ------
Income before income taxes 5,736 5,247 22,775 21,340
Income taxes 1,837 1,515 6,764 6,072
----- ----- ----- -----
Net income 3,899 3,732 16,011 15,268
Preferred stock dividends
and accretion of discount - - - (2,387)
--- --- --- ------
Net income available to
common stockholders $3,899 $3,732 $16,011 $12,881
====== ====== ======= =======
PER COMMON SHARE MARKET INFORMATION (1)
---------------- ---------------------
Net Income
Basic and
Diluted Dividends High Low
---------- --------- ---- ---
2012
1st
Quarter $0.23 $0.08 $10.46 $8.71
2nd
Quarter 0.25 0.08 10.22 9.02
3rd
Quarter 0.22 0.10 12.35 9.38
4th
Quarter 0.22 0.10 12.29 9.75
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
(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 Year ended December
31, 31,
SELECTED FINANCIAL MEASURES 2012 2011 2012 2011
--------------------------- ---- ---- ---- ----
Return on average equity 11.57% 12.08% 12.34 11.27%
Return on average assets 1.14% 1.14% 1.21 1.18%
Net interest margin 3.30% 3.49% 3.42 3.58%
Efficiency ratio 50.39% 51.59% 50.83 49.27%
As of December 31,
2012 2011
---- ----
Texas ratio 11.25% 16.33%
Allowance for loan losses ratio 1.67% 2.00%
Tangible common equity ratio 9.30% 9.72%
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 and net impairment losses) 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.
