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