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| 8-K - FORM 8-K - WEST BANCORPORATION INC | wtba20110128form8k.htm |
Exhibit 99
Press Release
January 28, 2011
FOR IMMEDIATE RELEASE
For more information contact:
Doug Gulling, Executive Vice President and Chief Financial Officer (515) 222-2309
WEST BANCORPORATION, INC. ANNOUNCES ANNUAL MEETING DATE AND RESULTS FOR 4TH QUARTER AND YEAR 2010
West Des Moines, IA - West Bancorporation, Inc. (NASDAQ: WTBA) (the “Company”), parent company of West Bank, reports net income available to common shareholders of $2.9 million or $0.17 per share for the fourth quarter of 2010 compared to $2.2 million or $0.13 per share for the same quarter in 2009.
The fourth quarter results included a provision for loan losses of $650,000. The Company also recognized additional write-downs on other real estate owned of $959,000 during the fourth quarter, based on updated appraisals on several commercial properties and continued weakness in the commercial real estate market.
For the year 2010, net income available to common shareholders was $11.1 million compared to a net loss of ($16.9) million for 2009. Earnings per common share for 2010 were $0.64 compared to a loss per common share of ($0.97) in 2009. The net loss for 2009 included a second quarter after-tax charge for goodwill impairment that totaled $18.4 million.
“We continue to be pleased with the progress being made and the direction in which we are headed,” commented David Nelson, President and Chief Executive Officer. “Our nonperforming assets have declined by 37 percent during 2010. Although there could be bumps in that trend line, we believe the amount of nonperforming assets will continue to trend downward. We have enhanced our infrastructure to enable our bankers to spend more time on business development while others focus on credit underwriting and compliance. We are looking forward to 2011.”
During the fourth quarter, total nonperforming assets declined $3.9 million to $33.5 million.
Loans outstanding totaled $889 million at December 31, 2010, down from $1.02 billion a year ago. “Loan payoffs exceeded the demand for new loans during 2010,” stated Nelson. “We may see that trend continue for another quarter or so, but we believe our total loans will be higher at the end of 2011. We are actively seeking new business, both from existing customers and new customers.”
The allowance for loan losses as a percentage of loans outstanding as of December 31, 2010, was 2.15 percent. This is up from 1.87 percent at December 31, 2009. Management believes the allowance is adequate to absorb the losses inherent in the loan portfolio, although the economic environment will continue to be a significant determinant of future loan losses.
West Bank's deposits totaled $972 million at year end 2010 compared to $1.25 billion a year ago. Deposits associated with SmartyPig®, the online savings program developed by Des Moines entrepreneurs, totaled $187 million at the end of 2009. As previously reported, those deposits were transferred to a larger bank in the third quarter of 2010, at West Bank's request.
At its quarterly meeting on January 26, 2011, the Company's Board of Directors voted to forgo a common stock quarterly dividend. The Company paid a special common stock dividend of $0.05 per share in December 2010. The Company anticipates resuming quarterly common stock dividends at some point in 2011. The Company will pay the United States Treasury $450,000 on February 15, 2011 as a quarterly preferred stock dividend.
The Board also set the record date for the Annual Meeting of Shareholders as February 28, 2011. The meeting will be held April 28, 2011.
The Company and West Bank continue to be well-capitalized under all regulatory measures. West Bank's capital ratios also exceed the requirements of the memorandum of understanding with the Iowa Division of Banking. The following are the regulatory capital ratios as of December 31, 2010. Also shown are the average capital ratios for all banks in the United States with total assets between $1 billion and $3 billion as of September 30, 2010, the latest data available at this time.
Requirements for | Average of | |||||||||||||||||||||||
Requirements to Be | West Bank | Peer | ||||||||||||||||||||||
Actual | Well-Capitalized | Per Agreement (1) | Group | |||||||||||||||||||||
(in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | Ratio | |||||||||||||||||
As of December 31, 2010: | ||||||||||||||||||||||||
Total Capital (to Risk-Weighted Assets) | ||||||||||||||||||||||||
Consolidated | $ | 180,413 | 17.7 | % | n/a | n/a | n/a | n/a | n/a | |||||||||||||||
West Bank | 162,682 | 16.6 | % | $ | 98,102 | 10.0 | % | $ | 117,723 | 12.0 | % | 13.7 | % | |||||||||||
Tier I Capital (to Risk-Weighted Assets) | ||||||||||||||||||||||||
Consolidated | 167,612 | 16.5 | % | n/a | n/a | n/a | n/a | n/a | ||||||||||||||||
West Bank | 150,335 | 15.3 | % | 58,861 | 6.0 | % | n/a | n/a | 12.4 | % | ||||||||||||||
Tier I Capital (to Average Assets) | ||||||||||||||||||||||||
Consolidated | 167,612 | 11.8 | % | n/a | n/a | n/a | n/a | n/a | ||||||||||||||||
West Bank | 150,335 | 10.7 | % | 70,419 | 5.0 | % | 112,670 | 8.0 | % | 8.8 | % | |||||||||||||
(1) Per the memorandum of understanding with the Iowa Division of Banking and the FDIC.
The Company will file its annual report on Form 10-K with the Securities and Exchange Commission in early March 2011. Please refer to it for a more in-depth analysis of our results. It will be available on the Investor Relations section of the Company's website at www.westbankiowa.com when it is filed.
The Company will discuss its results for the fourth quarter and year 2010 during a conference call scheduled for 2:00 p.m. Central Time today, Friday, January 28, 2011. The telephone number for the conference call is 877-317-6789. A recording of the call will be available until February 14, 2011, at 877-344-7529, pass code: 447161.
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 two full-service offices in Iowa City, one full-service office in Coralville, and eight full-service offices in the greater Des Moines area.
The information contained in this report may contain forward-looking statements about the Company's growth and acquisition strategies, new products and services, and future financial performance, including earnings and dividends per share, return on average assets, return on average equity, efficiency ratio, and capital ratios. Certain statements in this report constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements preceded by, followed by, or that include the words “believes,” “expects,” “intends,” “should,” “anticipates,” or similar references or references to estimates or predictions. 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 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, including actions of the Securities and Exchange Commission, the United States Department of the Treasury, the Federal Deposit Insurance Corporation, the Federal Reserve Board, and/or the Iowa Division of Banking; changes in the Treasury's Capital Purchase Program; and customers' acceptance of the Company's products and services. The Company undertakes no obligation to revise or update such forward-looking statements to reflect current 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 | December 31, 2010 | December 31, 2009 | ||||||
Assets | ||||||||
Cash and due from banks | $ | 20,069 | $ | 27,923 | ||||
Short-term investments | 67,885 | 103,572 | ||||||
Securities | 267,537 | 351,269 | ||||||
Loans held for sale | 4,452 | 332 | ||||||
Loans | 888,649 | 1,020,710 | ||||||
Allowance for loan losses | (19,087 | ) | (19,126 | ) | ||||
Loans, net | 869,562 | 1,001,584 | ||||||
Bank-owned life insurance | 25,395 | 25,400 | ||||||
Other real estate owned | 19,193 | 25,350 | ||||||
Other assets | 31,370 | 39,624 | ||||||
Total assets | $ | 1,305,463 | $ | 1,575,054 | ||||
Liabilities and Stockholders' Equity | ||||||||
Deposits: | ||||||||
Noninterest-bearing | $ | 230,277 | $ | 206,412 | ||||
Interest-bearing: | ||||||||
Demand | 142,031 | 162,305 | ||||||
Savings | 313,850 | 442,137 | ||||||
Time of $100,000 or more | 178,388 | 271,145 | ||||||
Other Time | 107,526 | 164,618 | ||||||
Total deposits | 972,072 | 1,246,617 | ||||||
Short-term borrowings | 55,009 | 42,895 | ||||||
Long-term borrowings | 125,619 | 145,619 | ||||||
Other liabilities | 7,327 | 6,864 | ||||||
Stockholders' equity | 145,436 | 133,059 | ||||||
Total liabilities and stockholders' equity | $ | 1,305,463 | $ | 1,575,054 | ||||
PER COMMON SHARE | MARKET INFORMATION (1) | |||||||||||||||
Net Income (Loss) | Dividends | High | Low | |||||||||||||
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 | ||||||||||||
2009 | ||||||||||||||||
1st quarter | $ | 0.14 | $ | 0.08 | $ | 12.40 | $ | 4.36 | ||||||||
2nd quarter | (1.32 | ) | 0.01 | 9.50 | 5.00 | |||||||||||
3rd quarter | 0.08 | — | 6.38 | 4.61 | ||||||||||||
4th quarter | 0.13 | — | 5.50 | 4.28 | ||||||||||||
(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.
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 | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Interest income | ||||||||||||||||
Loans | $ | 12,699 | $ | 14,271 | $ | 53,215 | $ | 59,309 | ||||||||
Securities | 1,652 | 1,873 | 7,387 | 7,900 | ||||||||||||
Other | 95 | 137 | 541 | 521 | ||||||||||||
Total interest income | 14,446 | 16,281 | 61,143 | 67,730 | ||||||||||||
Interest expense | ||||||||||||||||
Deposits | 2,170 | 4,306 | 13,217 | 19,548 | ||||||||||||
Short-term borrowings | 40 | 80 | 210 | 320 | ||||||||||||
Long-term borrowings | 1,210 | 1,706 | 5,596 | 6,768 | ||||||||||||
Total interest expense | 3,420 | 6,092 | 19,023 | 26,636 | ||||||||||||
Net interest income | 11,026 | 10,189 | 42,120 | 41,094 | ||||||||||||
Provision for loan losses | 650 | 3,000 | 6,050 | 24,500 | ||||||||||||
Net interest income after provision for loan losses | 10,376 | 7,189 | 36,070 | 16,594 | ||||||||||||
Noninterest income | ||||||||||||||||
Service charges on deposit accounts | 836 | 901 | 3,361 | 4,021 | ||||||||||||
Debit card usage fees | 335 | 298 | 1,329 | 1,123 | ||||||||||||
Service fee from SmartyPig, LLC | — | — | 1,314 | — | ||||||||||||
Trust services | 202 | 205 | 818 | 786 | ||||||||||||
Gains and fees on sales of residential mortgages | 489 | 255 | 1,533 | 1,114 | ||||||||||||
Increase in cash value of bank-owned life insurance | 205 | 214 | 869 | 776 | ||||||||||||
Gain from bank-owned life insurance | 2 | — | 422 | 840 | ||||||||||||
Other income | 285 | 238 | 1,006 | 972 | ||||||||||||
Total noninterest income | 2,354 | 2,111 | 10,652 | 9,632 | ||||||||||||
Investment securities gains (losses), net | ||||||||||||||||
Total other than temporary impairment losses | — | (30 | ) | (305 | ) | (3,444 | ) | |||||||||
Portion of loss recognized in other comprehensive | ||||||||||||||||
income (loss) before taxes | — | (65 | ) | — | 832 | |||||||||||
Net impairment losses recognized in earnings | — | (95 | ) | (305 | ) | (2,612 | ) | |||||||||
Realized securities gains, net | (13 | ) | (76 | ) | 40 | 1,884 | ||||||||||
Investment securities (losses), net | (13 | ) | (171 | ) | (265 | ) | (728 | ) | ||||||||
Noninterest expense | ||||||||||||||||
Salaries and employee benefits | 2,816 | 2,444 | 10,996 | 9,938 | ||||||||||||
Occupancy | 804 | 814 | 3,207 | 3,451 | ||||||||||||
Data processing | 449 | 449 | 1,815 | 1,761 | ||||||||||||
FDIC insurance expense | 802 | 469 | 3,082 | 2,736 | ||||||||||||
Other real estate owned expense | 1,059 | 153 | 1,716 | 368 | ||||||||||||
Professional fees | 255 | 160 | 959 | 964 | ||||||||||||
Miscellaneous losses | 122 | 11 | 1,330 | 70 | ||||||||||||
Goodwill impairment | — | — | — | 13,376 | ||||||||||||
Other expense | 1,094 | 1,199 | 4,639 | 5,241 | ||||||||||||
Total noninterest expense | 7,401 | 5,699 | 27,744 | 37,905 | ||||||||||||
WEST BANCORPORATION, INC. AND SUBSIDIARY | ||||||||||||||||
Financial Information (continued) (unaudited) | ||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||
Three months ended | Year ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Income (loss) before income taxes | $ | 5,316 | $ | 3,430 | $ | 18,713 | $ | (12,407 | ) | |||||||
Income taxes (benefits) | 1,816 | 665 | 5,330 | (7,356 | ) | |||||||||||
Income (loss) from continuing operations | 3,500 | 2,765 | 13,383 | (5,051 | ) | |||||||||||
Income (loss) from discontinued operations before income taxes | — | 132 | — | (10,262 | ) | |||||||||||
Income taxes (benefits) | — | 81 | — | (696 | ) | |||||||||||
Income (loss) from discontinued operations | — | 51 | — | (9,566 | ) | |||||||||||
Net income (loss) | 3,500 | 2,816 | 13,383 | (14,617 | ) | |||||||||||
Preferred stock dividends and accretion of discount | (571 | ) | (568 | ) | (2,284 | ) | (2,276 | ) | ||||||||
Net income (loss) available to common stockholders | $ | 2,929 | $ | 2,248 | $ | 11,099 | $ | (16,893 | ) | |||||||
SUPPLEMENTAL INFORMATION | ||||||||||||||||
Income (loss) from continuing operations | $ | 3,500 | $ | 2,765 | $ | 13,383 | $ | (5,051 | ) | |||||||
Preferred stock dividends and accretion of discount | (571 | ) | (568 | ) | (2,284 | ) | (2,276 | ) | ||||||||
Net income (loss) from continuing operations | ||||||||||||||||
available to common stockholders | $ | 2,929 | $ | 2,197 | $ | 11,099 | $ | (7,327 | ) | |||||||
PERFORMANCE HIGHLIGHTS | ||||||||||||||||
Return on average equity | 9.45 | % | 8.22 | % | 9.49 | % | (10.21 | )% | ||||||||
Return on average assets | 0.98 | % | 0.70 | % | 0.86 | % | (0.90 | )% | ||||||||
Net interest margin | 3.46 | % | 2.85 | % | 3.04 | % | 2.86 | % | ||||||||
Efficiency ratio | 53.31 | % | 44.02 | % | 50.40 | % | 45.99 | % | ||||||||