SOURCE: West Bancorporation

West Bancorporation

January 29, 2010 08:00 ET

West Bancorporation, Inc. Announces Annual Meeting Date and Results for 4th Quarter and Year 2009

WEST DES MOINES, IA--(Marketwire - January 29, 2010) - West Bancorporation, Inc. (NASDAQ: WTBA) (the "Company"), parent company of West Bank, reports net income available to common shareholders of $2.2 million or $0.13 per share for the fourth quarter of 2009 compared to net income available to common shareholders of $2.1 million or $0.12 per share for the same quarter in 2008. "We are pleased to announce another quarterly profit given the current adverse economic conditions under which we and our customers are operating," said Chairman Jack Wahlig.

The results for the fourth quarter included a provision for loan losses of $3 million. During the fourth quarter, the Company also recognized additional impairment losses on investment securities of $95,000. "We have attempted to decrease the risk in our investment portfolio over the past two quarters by liquidating certain bonds. We believe impairment losses in the investment portfolio are largely behind us," said David Milligan, Chief Executive Officer.

During the fourth quarter, total nonperforming assets increased by $1.2 million to $52.9 million. The composition of nonperforming assets continued to track as expected with the following changes during the quarter: nonaccrual loans declined by $2.1 million, restructured loans declined by $4 million, and other real estate owned grew by $7.3 million. "We are making significant progress in working through our problem loans," added David Milligan. "We have resolved many difficult situations, even though our overall level of nonperforming assets has not changed significantly over the past three quarters. We are not certain the level of problem assets has peaked, but we are cautiously optimistic 2010 will be a better year."

Loans outstanding totaled $1.02 billion at December 31, 2009, down from $1.1 billion a year ago. "Demand for new loans by our customers is soft. Commercial real estate, new construction and land development have fallen off substantially. Related businesses and investors are feeling the pinch. Our customers are paying down debt where they can," stated Milligan. The allowance for loan losses as a percentage of loans outstanding as of December 31, 2009, was 1.87 percent. This is up from 1.40 percent at December 31, 2008. Management believes the allowance is adequate to absorb the losses inherent in the loan portfolio, although the adverse economic environment will continue to be a significant determinant of future loan losses.

West Bank's deposits totaled $1.25 billion at year end 2009 compared to $1.16 billion a year ago. Deposits associated with SmartyPig, the online savings program developed by Des Moines entrepreneurs, grew $179 million during 2009 and totaled $187 million at year end. SmartyPig's success in attracting deposits is outgrowing West Bank and in all likelihood SmartyPig deposits will transition to a much larger bank in 2010. West Bank has been planning for this transfer and has adequate liquidity to facilitate that transfer.

For the year 2009, the net loss for common shareholders was ($16.9) million compared to net income of $7.6 million for 2008. The common stock loss per share for 2009 was ($0.97) compared to earnings per common share of $0.44 in 2008. The net loss for 2009 included an after-tax charge for goodwill impairment that totaled $18.4 million.

At its quarterly meeting on January 27, 2010, the Board of Directors of the Company voted to forgo a quarterly dividend on its common stock. The Company will pay the United States Treasury $450,000 on February 15, 2010 as a quarterly preferred stock dividend.

The Board also set the record date for the Annual Meeting of Shareholders as March 1, 2010. The meeting will be held April 29, 2010.

The Company and West Bank continue to be well-capitalized under all regulatory measures. The following are the regulatory capital ratios as of December 31, 2009:

                                    Requirements to Be
                                     Well-Capitalized         Actual
                                    ------------------  ------------------
                                     Amount    Ratio     Amount    Ratio
                                    --------- --------  --------- --------

As of December 31, 2009:
  Total Capital (to Risk-Weighted
   Assets)
    Consolidated                          n/a      n/a  $ 171,994     14.5%
    West Bank                       $ 118,181     10.0%   166,571     14.1%

  Tier I Capital (to Risk-Weighted
   Assets)
    Consolidated                          n/a      n/a    157,098     13.2%
    West Bank                          70,908      6.0%   141,745     12.0%

  Tier I Capital (to Average Assets)
    Consolidated                          n/a      n/a    157,098      9.8%
    West Bank                          80,016      5.0%   141,745      8.9%

The Company will file its annual report on Form 10-K with the Securities and Exchange Commission in early March 2010. 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 2009 during a conference call scheduled for 2:00 p.m. central time today, Friday, January 29, 2010. The telephone number for the conference call is 800-860-2442. A recording of the call will be available until March 1, 2010, at 877-344-7529, pass code: 436689.

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," or "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 of change in the underlying assumptions, 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 and/or the Federal Reserve Board; 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 SUBSIDIARIES
Financial Information (unaudited)
(in thousands, except per share data)

                                            December 31,    December 31,
CONSOLIDATED STATEMENTS OF CONDITION            2009            2008
                                           --------------  --------------
Assets
Cash and due from banks                    $       27,923  $       23,712
Short-term investments                            103,572         173,257
Securities                                        351,269         189,558
Loans held for sale                                   332           1,018
Loans                                           1,020,710       1,100,735
  Allowance for loan losses                       (19,126)        (15,441)
                                           --------------  --------------
  Loans, net                                    1,001,584       1,085,294
Goodwill                                                -          13,376
Bank-owned life insurance                          25,400          25,277
Other real estate owned                            25,350           4,352
Other assets                                       39,624          38,432
                                           --------------  --------------
  Total assets                             $    1,575,054  $    1,554,276
                                           ==============  ==============

Liabilities and Stockholders' Equity
Deposits:
  Noninterest-bearing                      $      206,412  $      174,980
  Interest-bearing
    Demand                                        162,305          97,853
    Savings                                       442,137         238,058
    Time of $100,000 or more                      271,145         274,825
    Other Time                                    164,618         369,416
                                           --------------  --------------
  Total deposits                                1,246,617       1,155,132
Short-term borrowings                              42,895          93,356
Long-term borrowings                              145,619         145,619
Other liabilities                                   6,864          10,106
Stockholders' equity                              133,059         150,063
                                           --------------  --------------
  Total liabilities and stockholders'
   equity                                  $    1,575,054  $    1,554,276
                                           ==============  ==============

                  PER COMMON SHARE             MARKET INFORMATION (1)
             Net Income
               (Loss)        Dividends          High             Low
            -------------  --------------- --------------- ---------------
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

2008
1st quarter $        0.08  $          0.16 $         14.43 $         11.71
2nd quarter          0.26             0.16           13.48            8.63
3rd quarter         (0.02)            0.16           16.21            7.30
4th quarter          0.12             0.16           13.50            8.67

(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 SUBSIDIARIES
Financial Information (continued) (unaudited)
(in thousands, except per share data)


                           Three months ended            Year ended
CONSOLIDATED STATEMENTS       December 31,              December 31,
 OF OPERATIONS              2009         2008         2009         2008
                        -----------  -----------  -----------  -----------
Interest income
Loans                   $    14,271  $    15,848  $    59,309  $    63,525
Securities                    1,873        2,109        7,900        8,540
Other                           137          196          521          467
                        -----------  -----------  -----------  -----------
  Total interest income      16,281       18,153       67,730       72,532
                        -----------  -----------  -----------  -----------

Interest expense
Deposits                      4,306        5,607       19,548       21,521
Short-term borrowings            80          224          320        2,827
Long-term borrowings          1,706        1,719        6,768        7,083
                        -----------  -----------  -----------  -----------
  Total interest expense      6,092        7,550       26,636       31,431
                        -----------  -----------  -----------  -----------

Net interest income          10,189       10,603       41,094       41,101
Provision for loan
 losses                       3,000        3,000       24,500       16,600
                        -----------  -----------  -----------  -----------
Net interest income
 after provision for
 loan losses                  7,189        7,603       16,594       24,501
                        -----------  -----------  -----------  -----------

Noninterest income
Service charges on
 deposit accounts               901        1,249        4,021        4,832
Trust services                  205          184          786          789
Gains and fees on sales
 of residential
 mortgages                      255          188        1,114          544
Increase in cash value
 of bank-owned life
 insurance                      214          239          776          936
Proceeds from
 bank-owned life
 insurance                        -            -          840            -
Other income                    536          454        2,095        1,866
                        -----------  -----------  -----------  -----------
  Total noninterest
   income                     2,111        2,314        9,632        8,967
                        -----------  -----------  -----------  -----------

Investment securities
 gains (losses), net
Total
 other-than-temporary
 impairment losses              (30)      (3,014)      (3,444)      (4,739)
Portion of loss
 recognized in other
 comprehensive income
 (loss) before taxes            (65)           -          832            -
                        -----------  -----------  -----------  -----------
Net impairment losses
 recognized in earnings         (95)      (3,014)      (2,612)      (4,739)
Realized securities
 gains (losses), net            (76)           2        1,884           73
                        -----------  -----------  -----------  -----------
  Investment securities
   gains (losses), net         (171)      (3,012)        (728)      (4,666)
                        -----------  -----------  -----------  -----------

Noninterest expense
Salaries and employee
 benefits                     2,444        1,716        9,938        9,257
Occupancy                       814          750        3,451        2,992
Data processing                 449          391        1,761        1,748
FDIC insurance expense          469          212        2,736          606
Goodwill impairment               -            -       13,376            -
Other expense                 1,523        1,367        6,643        5,502
                        -----------  -----------  -----------  -----------
  Total noninterest
   expense                    5,699        4,436       37,905       20,105
                        -----------  -----------  -----------  -----------

Income (loss) before
 income taxes                 3,430        2,469      (12,407)       8,697
Income taxes (benefits)         665          590       (7,356)       1,386
                        -----------  -----------  -----------  -----------
  Income (loss) from
   continuing operations      2,765        1,879       (5,051)       7,311
                        -----------  -----------  -----------  -----------

Income (loss) from
 discontinued
 operations before
 income taxes                   132          391      (10,262)         563
Income taxes (benefits)          81          162         (696)         238
                        -----------  -----------  -----------  -----------
  Income (loss) from
   discontinued
   operations                    51          229       (9,566)         325
                        -----------  -----------  -----------  -----------
  Net income (loss)           2,816        2,108      (14,617)       7,636
Preferred stock
 dividends and
 accretion of discount         (568)           -       (2,276)           -
                        -----------  -----------  -----------  -----------
  Net income (loss)
   available to common
   stockholders         $     2,248  $     2,108  $   (16,893) $     7,636
                        ===========  ===========  ===========  ===========




WEST BANCORPORATION, INC. AND SUBSIDIARIES
Financial Information (continued) (unaudited)
(in thousands, except per share data)

                           Three months ended            Year ended
SUPPLEMENTAL                  December 31,              December 31,
 INFORMATION                2009         2008         2009         2008
                        -----------  -----------  -----------  -----------
Income (loss) from
 continuing operations  $     2,765  $     1,879  $    (5,051) $     7,311
Preferred stock
 dividends and
 accretion of discount         (568)           -       (2,276)           -
                        -----------  -----------  -----------  -----------
  Net income (loss) from
   continuing operations
   available to common
   stockholders         $     2,197  $     1,879  $    (7,327) $     7,311
                        ===========  ===========  ===========  ===========


PERFORMANCE HIGHLIGHTS
                        -----------  -----------  -----------  -----------
Return on average
 equity                        8.22%        7.37%      -10.21%        6.47%
Return on average
 assets                        0.70%        0.57%       -0.90%        0.56%
Net interest margin            2.85%        3.24%        2.86%        3.38%
Efficiency ratio              44.02%       32.84%       45.99%       38.56%

Contact Information

  • For more information contact:
    Doug Gulling
    Executive Vice President and Chief Financial Officer
    (515) 222-2309