Attached files
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| 8-K - 8-K - WEST BANCORPORATION INC | wtba-20111028form8xk.htm |
Exhibit 99
Press Release
October 28, 2011
FOR IMMEDIATE RELEASE
For more information contact:
Doug Gulling, Executive Vice President and Chief Financial Officer (515) 222-2309
WEST BANCORPORATION, INC. REPORTS THIRD QUARTER 2011 RESULTS AND QUARTERLY DIVIDEND
West Des Moines, IA - 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 | |||||||