West Bancorporation, Inc. Announces Record Second Quarter Net Income, Declares Quarterly Dividend

WEST DES MOINES, Iowa, July 27, 2017 (GLOBE NEWSWIRE) -- West Bancorporation, Inc. (NASDAQ:WTBA), parent company of West Bank, is pleased to report that second quarter 2017 net income was $6.4 million, or $0.39 per diluted common share.  This is the highest net income ever recorded by the Company for the second quarter of any year.  This compares to second quarter 2016 net income of $5.5 million, or $0.34 per diluted common share.  On July 26, 2017, the Company's Board of Directors declared a regular quarterly dividend of $0.18 per common share.  The dividend is payable on August 23, 2017, to stockholders of record on August 9, 2017.

For the first six months of 2017, net income was $12.5 million, or $0.76 per diluted common share, up from $11.2 million, or $0.69 per diluted common share, for the first six months of 2016.

"West Bancorporation, Inc. has again delivered record results," commented Dave Nelson, President and Chief Executive Officer of the Company.  "We have now had twelve consecutive record quarters for each respective quarter.  We remain confident in our ability to create value for our stockholders in an evolving environment through profitable operations and strategic, organic growth."

Brad Winterbottom, West Bank President, said, "We have delivered solid performance in the second quarter and continue to manage the business for the long term.  Our business model has driven consistent growth over the past several years.  While we experienced some loan payoffs during the second quarter, we believe our pipeline remains healthy.  We are leveraging our capabilities and markets to drive more business development while executing prudent risk management."

Eastern Iowa Market President, Jim Conard, commented, "We are pleased to announce that we have hired Lanett Siefers as Retail Banking Manager in our Coralville office.  Lanett has over 30 years of retail banking experience in our market and already has established relationships with many of our customers and business prospects.  Lanett's experience, professionalism and leadership will be a great complement to our retail banking team."

"Our momentum continued through the second quarter, with total loans outstanding in the Rochester office exceeding $121 million at June 30, 2017, which is an increase of 8.5 percent since December 31, 2016," said Mike Zinser, Rochester Market President.  "In addition to strong loan growth in business banking, our personal banking team is ramping up well ahead of our expectations.  This has contributed to growing our deposit base to over $35 million.   West Bank's strategy in Rochester was purposely designed with the expectation that loan growth would outpace deposit growth.  This approach has had a very positive impact on the Rochester community, as loans to local Rochester businesses have allowed those businesses to grow and prosper."  Zinser concluded, "Our city deserves a strong community bank, and we are proud of our continued investment in the Rochester area."

The Company filed its 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 financial results.  The Form 10-Q is available on the Investor Relations section of West Bank's website at www.westbankstrong.com.

The Company will discuss its financial results on a conference call scheduled for 10:00 a.m. Central Time tomorrow, Friday, July 28, 2017. The telephone number for the conference call is 888-339-0814.  A recording of the call will be available until August 11, 2017, by dialing 877-344-7529.  The replay passcode is 10098204.

About West Bancorporation, Inc. (NASDAQ:WTBA)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 offices in the Des Moines metropolitan area, one office in Iowa City, Iowa, one office in Coralville, Iowa and one office in Rochester, Minnesota.

Certain statements in this report, other than purely historical information, including estimates, projections, statements relating to the Company's 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, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  Forward-looking statements may appear throughout this report.  These forward-looking statements are generally identified by the words "believes," "expects," "intends," "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 nonbank competitors; changes in local, national and international economic conditions; changes in regulatory requirements, limitations and costs; changes in customers' acceptance of the Company's products and services; cyber-attacks; unexpected outcomes of existing or new litigation involving the Company; and any other risks described in the "Risk Factors" sections of other reports filed by the Company with 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)        
         
CONSOLIDATED BALANCE SHEETS   June 30, 2017   June 30, 2016
Assets        
Cash and due from banks   $ 42,617     $ 42,688  
Federal funds sold   4,169     5,456  
Investment securities available for sale, at fair value   322,597     291,939  
Investment securities held to maturity, at amortized cost   46,317     48,963  
Federal Home Loan Bank stock, at cost   11,081     12,439  
Loans   1,435,379     1,380,841  
Allowance for loan losses   (16,486 )   (15,829 )
Loans, net   1,418,893     1,365,012  
Premises and equipment, net   23,072     18,719  
Bank-owned life insurance   33,284     32,797  
Other assets   15,557     13,672  
Total assets   $ 1,917,587     $ 1,831,685  
         
Liabilities and Stockholders' Equity        
Deposits:        
Noninterest-bearing   $ 386,246     $ 458,197  
Interest-bearing:        
Demand   339,821     264,241  
Savings   690,341     677,497  
Time of $250 or more   13,102     12,870  
Other time   145,565     97,457  
Total deposits   1,575,075     1,510,262  
Short-term borrowings   15,160     27,240  
Long-term borrowings   146,506     126,302  
Other liabilities   5,960     6,902  
Stockholders' equity   174,886     160,979  
Total liabilities and stockholders' equity   $ 1,917,587     $ 1,831,685  
                 

WEST BANCORPORATION, INC. AND SUBSIDIARY            
Financial Information (continued) (unaudited)                
(in thousands)                
                 
    Three Months Ended June 30,   Six Months Ended June 30,
CONSOLIDATED STATEMENTS OF INCOME   2017   2016   2017   2016
Interest income                
Loans, including fees   $ 16,042     $ 14,303     $ 31,011     $ 27,769  
Investment securities   2,054     1,895     3,859     3,933  
Other   70     11     87     31  
Total interest income   18,166     16,209     34,957     31,733  
Interest expense                
Deposits   1,781     824     2,976     1,529  
Short-term borrowings   23     18     69     34  
Long-term borrowings   1,269     1,094     2,430     2,198  
Total interest expense   3,073     1,936     5,475     3,761  
Net interest income   15,093     14,273     29,482     27,972  
Provision for loan losses       500         700  
Net interest income after provision for loan losses   15,093     13,773     29,482     27,272  
Noninterest income                
Service charges on deposit accounts   631     619     1,231     1,215  
Debit card usage fees   458     475     898     922  
Trust services   436     294     828     591  
Increase in cash value of bank-owned life insurance   163     164     317     332  
Gain from bank-owned life insurance           307     443  
Realized investment securities gains, net   229     60     226     60  
Other income   399     291     669     570  
Total noninterest income   2,316     1,903     4,476     4,133  
Noninterest expense                
Salaries and employee benefits   4,449     4,234     8,786     8,490  
Occupancy   1,131     983     2,228     1,934  
Data processing   708     627     1,396     1,206  
FDIC insurance   150     224     363     442  
Other expenses   1,734     1,751     3,442     3,546  
Total noninterest expense   8,172     7,819     16,215     15,618  
Income before income taxes   9,237     7,857     17,743     15,787  
Income taxes   2,872     2,381     5,272     4,615  
Net income   $ 6,365     $ 5,476     $ 12,471     $ 11,172  
                                 

WEST BANCORPORATION, INC. AND SUBSIDIARY    
Financial Information (continued) (unaudited)                
             
    PER COMMON SHARE   MARKET INFORMATION (1)
    Net Income            
    Basic   Diluted   Dividends   High   Low
2017                    
2nd Quarter   $ 0.39   $ 0.39   $ 0.18   $ 24.60   $ 21.40
1st Quarter     0.38     0.37     0.17     24.90     20.60
                     
2016                    
4th Quarter   $0.37   $0.37   $0.17   $25.05   $18.75
3rd Quarter     0.36     0.36     0.17     20.52     17.65
2nd Quarter     0.34     0.34     0.17     19.65     17.33
1st Quarter     0.35     0.35     0.16     19.58     16.04

(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 June 30,     Six Months Ended June 30,  
SELECTED FINANCIAL MEASURES   2017     2016     2017     2016  
Return on average assets   1.33 %     1.22%     1.34 %     1.27%  
Return on average equity   14.86 %     13.90%     14.83 %     14.33%  
Net interest margin   3.44 %     3.52%     3.46 %     3.52%  
Efficiency ratio*   45.93 %     46.62%     46.38 %     46.76%  
                 
        As of June 30,  
            2017     2016  
Texas ratio*           0.43 %     0.60%  
Allowance for loan losses ratio           1.15 %     1.15%  
Tangible common equity ratio           9.12 %     8.79%  

* A lower ratio is more desirable.

Definitions of ratios:

  • Return on average assets - annualized net income divided by average assets.
  • Return on average equity - annualized net income divided by average stockholders' equity.
  • Net interest margin - annualized tax-equivalent net interest income divided by average interest-earning assets.
  • Efficiency ratio - noninterest expense (excluding other real estate owned expense) divided by noninterest income (excluding net securities gains and gains/losses on disposition of premises and equipment) plus tax-equivalent net interest income.
  • Texas ratio - total nonperforming assets divided by tangible common equity plus the allowance for loan losses.
  • Allowance for loan losses ratio - allowance for loan losses divided by total loans.
  • Tangible common equity ratio - common equity less intangible assets (none held) divided by tangible assets.
For more information contact: Doug Gulling, Executive Vice President and Chief Financial Officer (515) 222-2309

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