Requirements to Be
Well-Capitalized Actual
Amount Ratio Amount Ratio
--------- ----------- --------- -----------
As of September 30, 2009:
Total Capital (to
Risk-Weighted
Assets)
Consolidated n/a n/a $ 168,793 14.0 %
West Bank $ 119,973 10.0 % 164,435 13.7 %
Tier I Capital (to
Risk-Weighted Assets)
Consolidated n/a n/a 153,664 12.7 %
West Bank 71,984 6.0 % 139,381 11.6 %
Tier I Capital (to Average
Assets)
Consolidated n/a n/a 153,664 10.0 %
West Bank 76,665 5.0 % 139,381 9.1 %
The Company filed its third quarter Form 10-Q with the Securities and
Exchange Commission today. Please refer to it for a more in-depth analysis
of our results. It is available on the Investor Relations section of the
Company's website at www.westbankiowa.com.
The Company will discuss its results for the third quarter and first nine
months of 2009 during a conference call scheduled for 2:00 p.m. central
time today, Thursday, October 29, 2009. The telephone number for the
conference call is 800-860-2442. A recording of the call will be available
until November 13, 2009 at 877-344-7529, pass code: 426999.
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. WB Capital Management Inc., also a wholly owned
subsidiary of West Bancorporation, Inc., has an office in West Des Moines,
Iowa. It provides portfolio management services to retirement plans,
corporations, public funds, mutual funds, foundations, endowments, and high
net worth individuals.
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)
CONSOLIDATED
STATEMENTS OF September 30, September 30,
CONDITION 2009 2008
------------- -------------
Assets
Cash and due
from banks $ 28,631 $ 25,204
Short-term
investments 123,685 87,188
Securities 222,526 191,681
Loans held for
sale 1,152 77
Loans 1,062,333 1,093,402
Allowance for
loan losses (19,658) (16,484)
------------- -------------
Loans, net 1,042,675 1,076,918
Goodwill and
other
intangible
assets 309 13,915
Bank-owned life
insurance 25,186 25,037
Other real
estate owned 18,089 4,042
Other assets 37,358 40,179
------------- -------------
Total assets $ 1,499,611 $ 1,464,241
============= =============
Liabilities and
Stockholders'
Equity
Deposits:
Noninterest-
bearing $ 201,813 $ 187,727
Interest-
bearing
Demand 164,092 120,642
Savings 380,497 222,488
Time of
$100,000 or
more 206,167 219,148
Other Time 208,579 368,889
------------- -------------
Total deposits 1,161,148 1,118,894
Short-term
borrowings 50,304 70,871
Long-term
borrowings 145,619 147,869
Other
liabilities 10,162 11,746
Stockholders'
equity 132,378 114,861
------------- -------------
Total
liabilities
and
stockholders'
equity $ 1,499,611 $ 1,464,241
============= =============
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
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 Nine months ended
CONSOLIDATED STATEMENTS OF September 30, September 30,
OPERATIONS 2009 2008 2009 2008
--------- --------- --------- ---------
Interest income
Loans $ 14,914 $ 15,987 $ 45,038 $ 47,677
Securities 2,229 2,163 6,027 6,431
Other 73 36 384 271
--------- --------- --------- ---------
Total interest income 17,216 18,186 51,449 54,379
--------- --------- --------- ---------
Interest expense
Deposits 4,672 5,404 15,242 15,914
Short-term borrowings 65 591 240 2,603
Long-term borrowings 1,706 1,804 5,062 5,364
--------- --------- --------- ---------
Total interest expense 6,443 7,799 20,544 23,881
--------- --------- --------- ---------
Net interest income 10,773 10,387 30,905 30,498
Provision for loan losses 3,000 7,000 21,500 13,600
--------- --------- --------- ---------
Net interest income after
provision for loan losses 7,773 3,387 9,405 16,898
--------- --------- --------- ---------
Noninterest income
Service charges on deposit
accounts 1,078 1,287 3,120 3,583
Trust services 222 207 581 605
Gains and fees on sales of
residential mortgages 324 136 859 356
Increase in cash value of
bank-owned life insurance 199 248 562 697
Proceeds from bank-owned life
insurance - - 840 -
Other income 528 468 1,559 1,412
--------- --------- --------- ---------
Total noninterest income 2,351 2,346 7,521 6,653
--------- --------- --------- ---------
Investment securities gains
(losses), net
Total other-than-temporary
impairment losses (986) (1,725) (3,414) (1,725)
Portion of loss recognized in
other comprehensive income
(loss) before taxes 159 - 897 -
--------- --------- --------- ---------
Net impairment losses
recognized in earnings (827) (1,725) (2,517) (1,725)
Realized securities gains
(losses), net 507 66 1,960 71
--------- --------- --------- ---------
Investment securities gains
(losses), net (320) (1,659) (557) (1,654)
--------- --------- --------- ---------
Noninterest expense
Salaries and employee benefits 2,294 2,482 7,494 7,541
Occupancy 794 748 2,637 2,242
Data processing 455 426 1,312 1,357
FDIC insurance expense 531 209 2,267 394
Goodwill impairment - - 13,376 -
Other expense 1,834 1,406 5,120 4,135
--------- --------- --------- ---------
Total noninterest expense 5,908 5,271 32,206 15,669
--------- --------- --------- ---------
Income (loss) before income
taxes 3,896 (1,197) (15,837) 6,228
Income taxes (benefits) 906 (1,015) (8,021) 796
--------- --------- --------- ---------
Income (loss) from continuing
operations 2,990 (182) (7,816) 5,432
--------- --------- --------- ---------
Income (loss) from discontinued
operations before income taxes (1,048) (301) (10,394) 172
Income taxes (benefits) 37 (123) (777) 76
--------- --------- --------- ---------
Income (loss) from
discontinued operations (1,085) (178) (9,617) 96
--------- --------- --------- ---------
Preferred stock dividends and
accretion of discount (571) - (1,708) -
--------- --------- --------- ---------
Net income (loss) available
to common stockholders $ 1,334 $ (360) $ (19,141) $ 5,528
========= ========= ========= =========
Three months ended Nine months ended
September 30, September 30,
SUPPLEMENTAL INFORMATION 2009 2008 2009 2008
--------- --------- --------- ---------
Income (loss) from continuing
operations $ 2,990 $ (182) $ (7,816) $ 5,432
Preferred stock dividends and
accretion of discount (571) - (1,708) -
--------- --------- --------- ---------
Net income (loss) from
continuing operations
available
to common stockholders $ 2,419 $ (182) $ (9,524) $ 5,432
========= ========= ========= =========
PERFORMANCE HIGHLIGHTS
Return on average equity 5.74% -1.22% -16.01% 6.18%
Return on average assets 0.49% -0.10% -1.44% 0.55%
Net interest margin 3.11% 3.37% 2.86% 3.44%
Efficiency ratio 42.84% 39.71% 46.63% 40.55%
Contact Information: For more information contact: Doug Gulling Executive Vice President and Chief Financial Officer (515) 222-2309