West Bancorporation, Inc. Declares Quarterly Dividend; Fourth Quarter Earnings Per Common Share Improves 23 Percent

West Bancorporation, Inc. Declares Quarterly Dividend; Fourth Quarter Earnings
                     Per Common Share Improves 23 Percent

PR Newswire

WEST DES MOINES, Iowa, Jan. 24, 2014

WEST DES MOINES, Iowa, Jan. 24, 2014 /PRNewswire/ -- West Bancorporation, Inc.
(NASDAQ: WTBA), parent company of West Bank, is pleased to report that its
Board of Directors declared a quarterly dividend of $0.11 per share. The
dividend is payable on February 25, 2014 to shareholders of record on February
5, 2014.

For the fourth quarter of 2013, net income was $4.3 million, or $0.27 per
diluted common share, compared to $3.9 million, or $0.22 per diluted common
share, for the fourth quarter of 2012. Net interest income for the fourth
quarter of 2013 was $1.3 million (13 percent) higher than the fourth quarter
of 2012. The improvement was due to a higher volume of earning assets (loans
and investments) and expansion of the net interest margin to 3.52 percent for
the quarter from 3.30 percent for the fourth quarter of last year. Gains and
fees collected from the sale of residential mortgages totaled $326,000 in the
fourth quarter of 2013, compared to $960,000 in the fourth quarter of 2012.
This year, the volume of loans originated declined due to a slowdown in
refinancing activity, so the mix of mortgage loan activity was more heavily
weighted to home-purchase loans. This typically results in lower margins than
loans attributable to refinancing. There was no provision for loan losses for
the fourth quarter of 2013, while the provision in the same period last year
was $325,000.

"Our credit quality has been improving for the past few years, but we made
significant improvement during the fourth quarter," said David Nelson,
President and Chief Executive Officer of West Bancorporation, Inc. "Total non
performing assets dropped $6.4 million to $10.6 million. This is the lowest
level of non performing assets since the second quarter of 2008. By any
measure used, we believe West Bank's credit quality is excellent. Loans
outstanding at the end of the year totaled $992.0 million. That represented
loan growth of $33.0 million during the fourth quarter."

For 2013, net income was $16.9 million or $1.02 per diluted common share. Net
income for 2012 was $16.0 million or $0.92 per diluted common share. Net
interest income improved by $4.5 million, or 11 percent year-over-year.
Improvement in credit quality resulted in a negative provision for loan losses
in 2013 of $850,000 compared to a provision for loan losses in 2012 of
$625,000. Noninterest income declined $2.5 million in 2013 due to lower gains
from the sale of secondary market loans, and a gain from bank-owned life
insurance in 2012 that was not repeated in 2013. During 2013, total loans
grew by $64 million, or 7 percent. This rate of growth is substantially in
excess of the general economy's growth rate.

"We are pleased with our 2013 results, which allow for a continued higher
level of quarterly dividend payments. We are looking forward to 2014," added
Nelson.

The Board also set the record date for the Annual Meeting of Shareholders as
February 20, 2014. The meeting will be held April 24, 2014.

The Company intends to file its annual report on Form 10-K with the Securities
and Exchange Commission on or around March 7, 2014. Please refer to that
document for a more in-depth discussion of our results. The Form 10-K
document will be available on the Investor Relations section of West Bank's
website at www.westbankstrong.com.

The Company will discuss its 2013 fourth quarter and year end results during a
conference call scheduled for this afternoon, Friday, January 24, 2014, 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 February 6,
2014, at 877-344-7529, pass code: 10038833.

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 full-service offices in the Des Moines
metropolitan area, two full-service offices in Iowa City, one full-service
office in Coralville and one full-service 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 BALANCE SHEETS               December31, 2013  December31, 2012
Assets
Cash and due from banks                   $    41,126        $    60,417
Short-term investments                    1,299              111,057
Investment securities                     357,067            304,103
Loans held for sale                       2,230              3,363
Loans                                     991,720            927,401
Allowance for loan losses                 (13,791)           (15,529)
Loans, net                                977,929            911,872
Bank-owned life insurance                 26,376             25,730
Other real estate owned                   5,800              8,304
Other assets                              30,577             23,329
Total assets                              $    1,442,404     $    1,448,175
Liabilities and Stockholders' Equity
Deposits:
Noninterest-bearing                       $    332,230       $    367,281
Interest-bearing:
 Demand                                 233,613            160,745
 Savings                                451,855            428,710
 Time of $100,000 or more               83,653             100,627
 Other time                             62,491             77,213
Total deposits                            1,163,842          1,134,576
Short-term borrowings                     16,622             55,596
Long-term borrowings                      131,946            114,509
Other liabilities                         6,369              8,907
Stockholders' equity                      123,625            134,587
Total liabilities and stockholders'       $    1,442,404     $    1,448,175
equity



Financial Information (continued) (unaudited)
(in thousands, except per share data)
                          Three Months Ended December  Year Ended December 31,
                          31,
CONSOLIDATED STATEMENTS   2013            2012         2013         2012
OF INCOME
Interest income
Loans, including fees     $   11,375      $   10,953   $  44,992    $   44,277
Investment securities     2,069           1,492        7,630        6,194
Other                     20              62           119          191
Total interest income     13,464          12,507       52,741       50,662
Interest expense
Deposits                  822             931          3,413        4,535
Short-term borrowings     13              25           89           114
Long-term borrowings      929             1,179        3,556        4,815
Total interest expense    1,764           2,135        7,058        9,464
Net interest income       11,700          10,372       45,683       41,198
Provision for loan        —               325          (850)        625
losses
Net interest income
after provision for loan
losses                    11,700          10,047       46,533       40,573
Noninterest income
Service charges on        733             773          2,923        3,009
deposit accounts
Debit card usage fees     436             393          1,787        1,586
Trust services            254             222          997          817
Gains and fees on sales   326             960          1,275        3,104
of residential mortgages
Increase in cash value
of bank-owned life
insurance                 154             166          646          737
Gain from bank-owned      —               —            —            841
life insurance
Investment securities     —               (24)         —            (203)
impairment losses
Realized investment       —               —            —            246
securities gains, net
Other income              232             209          875          857
Total noninterest income  2,135           2,699        8,503        10,994
Noninterest expense
Salaries and employee     3,795           3,639        15,757       14,532
benefits
Occupancy                 989             907          3,906        3,519
Data processing           515             488          2,030        2,070
FDIC insurance expense    186             156          733          672
Other real estate owned   221             263          1,359        1,491
expense
Other expenses            2,045           1,557        7,040        6,508
Total noninterest         7,751           7,010        30,825       28,792
expense
Income before income      6,084           5,736        24,211       22,775
taxes
Income taxes              1,802           1,837        7,320        6,764
Net income                $   4,282       $   3,899    $  16,891    $   16,011





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
4th Quarter  $       0.27       $   0.11   $   16.64    $  13.34
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 December  Year Ended December 31,
                          31,
SELECTED FINANCIAL        2013             2012        2013         2012
MEASURES
Return on average equity  13.85%           11.57%      13.22%       12.34%
Return on average assets  1.17%            1.14%       1.17%        1.21%
Net interest margin       3.52%            3.30%       3.48%        3.42%
Efficiency ratio          52.59%           50.39%      52.55%       50.83%
                                                       As of December 31,
                                                       2013         2012
Texas ratio                                            7.69%        11.25%
Allowance for loan                                     1.39%        1.67%
losses ratio
Tangible common equity                                 8.57%        9.29%
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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