West Bancorporation, Inc. Declares Quarterly Dividend; Announces Third Quarter Net Income Up 16 Percent

West Bancorporation, Inc. Declares Quarterly Dividend; Announces Third Quarter
                           Net Income Up 16 Percent

PR Newswire

WEST DES MOINES, Iowa, Oct. 25, 2013

WEST DES MOINES, Iowa, Oct. 25, 2013 /PRNewswire/ --West Bancorporation, Inc.
(NASDAQ: WTBA) (the "Company"), parent company of West Bank, is pleased to
report that at its meeting on October 23, 2013, the Board of Directors
declared a quarterly dividend of $0.11 per share. The dividend is payable on
November 26, 2013 to shareholders of record on November 6, 2013.

For the third quarter of 2013, net income increased by 16.3 percent to $4.36
million, or $0.27 per diluted common share, compared to $3.75 million, or
$0.22 per diluted common share, for the third quarter of 2012.

Net interest income for the third quarter of 2013 improved 13.3 percent over
the same period last year, primarily as a result of loan growth. Average
loans outstanding for the third quarter of 2013 increased by $118.0 million,
or 13.9 percent, when compared to the third quarter of 2012. Loans
outstanding at the end of the third quarter of 2013 attributable to our new
Rochester, Minnesota, office totaled $7.2 million. Because of overall
improvement in credit quality, the provision for loan losses for the third
quarter was a negative $1.0 million, which represented an increase in income
rather than an expense. For the third quarter last year, the provision for
loan losses was an expense of $300,000. Trust income was higher than last
year due to new accounts and an increase in the value of assets under
management. Conversely, higher mortgage interest rates caused gains and fees
from the sales of residential mortgages to decline due to a slight decrease in
volume and lower margins. Total noninterest expenses for the third quarter of
2013 were higher than the third quarter last year because of higher other real
estate owned expenses and an increase in the number of West Bank employees.

For the second year in a row, our Company was named a Sm-All Star by the
investment banking firm Sandler O'Neill + Partners ("SOP"). According to
financial criteria defined by SOP, we are one of the top 31 small cap
publicly-traded bank holding companies in the United States. For purposes of
this analysis, small cap companies are those with a market value between $25
million and $2.5 billion. "We are very pleased to be included in this group
again this year," commented David Nelson, president and chief executive
officer of the Company. "It feels good to have people who understand our
industry recognize our Company as one of the best banks in America."

For the first nine months of 2013, net income was $12.6 million, or $0.75 per
diluted common share, compared to $12.1 million, or $0.69 per diluted common
share for the same period in 2012, an increase of 4.1 percent.

The Company filed its quarterly report on Form 10-Q with the Securities and
Exchange Commission this morning. Please refer to that document for a more
in-depth discussion of our financial results. The Form 10-Q document is
available on the Investor Relations section of West Bank's website at
www.westbankstrong.com.

The Company will discuss its third quarter 2013 results during a conference
call scheduled for this afternoon, Friday, October 25, 2013, at 2:00 p.m.
Central Time. The telephone number for the conference call is (888)
317-6016. A recording of the call will be available until November 4, 2013,
at (877) 344-7529, passcode: 10022858.

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,
two offices in Iowa City, one office in Coralville and one office in
Rochester, Minnesota.

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," "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 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, except per share data)
CONSOLIDATED STATEMENTS OF CONDITION    September 30, 2013  September 30, 2012
Assets
Cash and due from banks                 $     62,592        $     37,707
Short-term investments                  29,400              4,120
Securities                              371,185             322,750
Loans held for sale                     421                 6,471
Loans                                   959,016             854,205
Allowance for loan losses               (14,741)            (15,637)
Loans, net                              944,275             838,568
Bank-owned life insurance               26,222              25,563
Other real estate owned                 6,276               8,894
Other assets                            30,742              23,893
Total assets                            $     1,471,113     $     1,267,966
Liabilities and Stockholders' Equity
Deposits:
Noninterest-bearing                     $     347,957       $     291,497
Interest-bearing:
Demand                                  164,993             151,686
Savings                                 495,550             316,931
Time of $100,000 or more                87,604              88,957
Other time                              69,688              79,855
Total deposits                          1,165,792           928,926
Short-term borrowings                   44,458              73,084
Long-term borrowings                    132,384             125,619
Other liabilities                       7,322               7,694
Stockholders' equity                    121,157             132,643
Total liabilities and stockholders'     $     1,471,113     $     1,267,966
equity





Financial Information (continued) (unaudited)
(in thousands, except per share data)
                 Three months ended September 30, Nine Months Ended September
                                                  30,
CONSOLIDATED
INCOME
STATEMENTS
                 2013                  2012         2013            2012
Interest income
Loans,           $            11,382   $  10,928    $      33,617   $  33,324
including fees
Securities       2,042                 1,589        5,561           4,702
Other            20                    36           99              129
Total interest   13,444                12,553       39,277          38,155
income
Interest
expense
Deposits         854                   1,054        2,591           3,604
Short-term       23                    23           76              89
borrowings
Long-term        941                   1,219        2,627           3,636
borrowings
Total interest   1,818                 2,296        5,294           7,329
expense
Net interest     11,626                10,257       33,983          30,826
income
Provision for    (1,000)               300          (850)           300
loan losses
Net interest
income after
provision for
loan
losses           12,626                9,957        34,833          30,526
Noninterest
income
Service charges
on deposit       747                   768          2,190           2,236
accounts
Debit card       527                   403          1,351           1,193
usage fees
Trust services   266                   201          743             595
Gains and fees
on sales of      212                   816          949             2,144
residential
mortgages
Increase in
cash value of
bank-owned life
insurance        162                   181          492             571
Gain from
bank-owned life  —                     —            —               841
insurance
Investment
securities       —                     (6)          —               (179)
impairment
losses
Realized
investment       —                     —            —               246
securities
gains, net
Other income     216                   185          643             648
Total
noninterest      2,130                 2,548        6,368           8,295
income
Noninterest
expense
Salaries and
employee         4,007                 3,686        11,962          10,893
benefits
Occupancy        984                   880          2,917           2,612
Data processing  532                   576          1,515           1,582
FDIC insurance   182                   183          547             516
expense
Other real
estate owned     1,137                 240          1,138           1,228
expense
Professional     286                   276          922             855
fees
Consulting fees  58                    191          227             498
Other expenses   1,227                 1,072        3,846           3,598
Total
noninterest      8,413                 7,104        23,074          21,782
expense
Income before    6,343                 5,401        18,127          17,039
income taxes
Income taxes     1,980                 1,649        5,518           4,927
Net income       $            4,363    $  3,752     $      12,609   $  12,112







Financial Information (continued)
(unaudited)
(in thousands, except per share data)
                   PER COMMON SHARE                  MARKET INFORMATION (1)
                   Net Income
                   Basic and Diluted       Dividends  High           Low
2013
3rd Quarter        $              0.27     $   0.11   $      14.50   $  11.74
2nd Quarter        0.25                    0.10       12.27          10.10
1st Quarter        0.23                    0.10       11.72          10.46
2012
4th Quarter        $              0.22     $   0.10   $      12.29   $  9.75
3rd Quarter        0.22                    0.10       12.35          9.38
2nd Quarter        0.25                    0.08       10.22          9.02
1st Quarter        0.23                    0.08       10.46          8.71

(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,
SELECTED
FINANCIAL        2013                 2012         2013             2012
MEASURES
Return on        14.41         %      11.36    %   13.02       %    12.61   %
average equity
Return on        1.19          %      1.14     %   1.17        %    1.23    %
average assets
Net interest     3.49          %      3.45     %   3.45        %    3.46    %
margin
Efficiency       51.14         %      51.92    %   52.70       %    50.98   %
ratio
                                                   As of September 30,
                                                   2013             2012
Texas ratio                                        12.46       %    12.99   %
Allowance for
loan losses                                        1.54        %    1.83    %
ratio
Tangible common                                    8.24        %    10.46   %
equity ratio

Definitions of ratios:

  oReturn on average equity - annualized net income divided by average
    stockholders' equity.
  oReturn on average assets - annualized net income divided by average
    assets.
  oNet interest margin - annualized tax-equivalent net interest income
    divided by average interest-earning assets.
  oEfficiency ratio - noninterest expense (excluding other real estate owned
    expense) divided by noninterest income (excluding net securities gains and
    net impairment losses) plus tax-equivalent net interest income.
  oTexas ratio - total nonperforming assets divided by tangible common equity
    plus the allowance for loan losses.
  oAllowance for loan losses ratio - allowance for loan losses divided by
    total loans.
  oTangible common equity ratio - common equity less intangible assets
    divided by tangible assets.

SOURCE West Bancorporation, Inc.

Website: http://www.westbankiowa.com
Contact: Doug Gulling, Executive Vice President and Chief Financial Officer
(515) 222-2309
 
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