West Bancorporation, Inc. (NASDAQ:WTBA), parent company of West
Bank, is pleased to report that third 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 third
quarter of any year. This compares to third quarter 2016 net income
of $5.8 million, or $0.36 per diluted common share. On October 25,
2017, the Company’s Board of Directors declared a regular quarterly
dividend of $0.18 per common share. The dividend is payable on
November 22, 2017, to stockholders of record on November 8, 2017.
For the first nine months of 2017, net income
was $18.9 million, or $1.16 per diluted common share, up from $17.0
million, or $1.05 per diluted common share, for the first nine
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 13 consecutive
record quarters for each respective quarter. We are extremely
pleased with the Company’s year-to-date 2017 earnings success.
Management remains committed to achieving superior earnings and
creating value for our stockholders in an evolving economic and
regulatory environment.”
Brad Winterbottom, West Bank President, said,
“We continued to grow our community banking relationships in all of
our markets in the third quarter. Deposit balances increased $76.2
million, or 4.8 percent as of September 30, 2017, compared to June
30, 2017. Outstanding loan balances grew $21.5 million during the
same period of time. We believe West Bank’s risk management
practices and capital strength continue to position us well for
long-term growth.”
Eastern Iowa Market President, Jim Conard,
commented, “Loan growth in the Eastern Iowa market continued to be
strong in the third quarter of 2017, with total loan balances
increasing by over nine percent. This quarter was particularly
rewarding for our experienced commercial banking team as we saw a
number of our commercial real estate clients successfully complete
development projects and acquisitions. Also of note this quarter
was the Iowa City Area Development Corporation’s naming of a new
annual award recognizing leadership in economic development after
Tom Cilek, Senior Vice President and Commercial Lender at West
Bank. Tom has been a long time community leader and we congratulate
him on this special recognition.”
“Our momentum in Rochester is strong with loan
growth of more than four percent and deposit growth exceeding 14
percent in the third quarter of 2017,” said Mike Zinser, Rochester
Market President. “Since we opened our Rochester location in 2013,
nearly 100 businesses have moved their banking relationships to
West Bank, which is an endorsement of the way we do business. We
believe West Bank is very different from any other bank in
Rochester, and we are encouraged by the community’s enthusiasm for
how we do business.” Zinser concluded, “We have also had success
this year with our exclusive personal banking program, which is a
high service, concierge type banking model similar to our business
banking model. We are providing our customers with a complete and
unique banking experience that continues to drive our strong growth
of loyal customers.”
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, October 27, 2017. The telephone number for the
conference call is 888-339-0814. A recording of the call will be
available until November 10, 2017, by dialing 877-344-7529. The
replay passcode is 10098206.
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 |
|
September 30, 2017 |
|
September 30, 2016 |
Assets |
|
|
|
|
Cash and due from
banks |
|
$ |
33,560 |
|
|
$ |
44,526 |
|
Federal funds sold |
|
5,937 |
|
|
6,324 |
|
Investment securities
available for sale, at fair value |
|
418,374 |
|
|
278,411 |
|
Investment securities
held to maturity, at amortized cost |
|
45,597 |
|
|
48,405 |
|
Federal Home Loan Bank
stock, at cost |
|
12,256 |
|
|
12,467 |
|
Loans |
|
1,456,905 |
|
|
1,382,895 |
|
Allowance
for loan losses |
|
(16,358 |
) |
|
(15,958 |
) |
Loans,
net |
|
1,440,547 |
|
|
1,366,937 |
|
Premises and equipment,
net |
|
23,173 |
|
|
21,023 |
|
Bank-owned life
insurance |
|
33,451 |
|
|
32,956 |
|
Other assets |
|
17,453 |
|
|
13,781 |
|
Total assets |
|
$ |
2,030,348 |
|
|
$ |
1,824,830 |
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
Deposits: |
|
|
|
|
Noninterest-bearing |
|
$ |
384,625 |
|
|
$ |
483,434 |
|
Interest-bearing: |
|
|
|
|
Demand |
|
328,156 |
|
|
264,640 |
|
Savings |
|
776,921 |
|
|
637,044 |
|
Time of
$250 or more |
|
16,539 |
|
|
10,818 |
|
Other
time |
|
145,025 |
|
|
95,720 |
|
Total
deposits |
|
1,651,266 |
|
|
1,491,656 |
|
Short-term
borrowings |
|
48,925 |
|
|
35,420 |
|
Long-term
borrowings |
|
145,608 |
|
|
125,856 |
|
Other liabilities |
|
6,462 |
|
|
7,034 |
|
Stockholders’
equity |
|
178,087 |
|
|
164,864 |
|
Total liabilities and stockholders’ equity |
|
$ |
2,030,348 |
|
|
$ |
1,824,830 |
|
|
|
|
|
|
|
|
|
|
|
WEST BANCORPORATION, INC. AND SUBSIDIARY |
Financial
Information (continued) (unaudited) |
(in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
CONSOLIDATED STATEMENTS OF INCOME |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Interest
income |
|
|
|
|
|
|
|
|
Loans, including
fees |
|
$ |
15,854 |
|
|
$ |
14,898 |
|
|
$ |
46,865 |
|
|
$ |
42,667 |
|
Investment
securities |
|
2,570 |
|
|
1,771 |
|
|
6,429 |
|
|
5,704 |
|
Other |
|
136 |
|
|
27 |
|
|
223 |
|
|
58 |
|
Total interest income |
|
18,560 |
|
|
16,696 |
|
|
53,517 |
|
|
48,429 |
|
Interest
expense |
|
|
|
|
|
|
|
|
Deposits |
|
2,108 |
|
|
872 |
|
|
5,084 |
|
|
2,401 |
|
Short-term
borrowings |
|
13 |
|
|
9 |
|
|
82 |
|
|
43 |
|
Long-term
borrowings |
|
1,408 |
|
|
1,094 |
|
|
3,838 |
|
|
3,292 |
|
Total interest expense |
|
3,529 |
|
|
1,975 |
|
|
9,004 |
|
|
5,736 |
|
Net interest income |
|
15,031 |
|
|
14,721 |
|
|
44,513 |
|
|
42,693 |
|
Provision for loan
losses |
|
— |
|
|
200 |
|
|
— |
|
|
900 |
|
Net interest income after provision for loan
losses |
|
15,031 |
|
|
14,521 |
|
|
44,513 |
|
|
41,793 |
|
Noninterest
income |
|
|
|
|
|
|
|
|
Service charges on
deposit accounts |
|
715 |
|
|
632 |
|
|
1,946 |
|
|
1,847 |
|
Debit card usage
fees |
|
435 |
|
|
450 |
|
|
1,333 |
|
|
1,372 |
|
Trust services |
|
436 |
|
|
355 |
|
|
1,264 |
|
|
946 |
|
Increase in cash value
of bank-owned life insurance |
|
167 |
|
|
160 |
|
|
484 |
|
|
492 |
|
Gain from bank-owned
life insurance |
|
— |
|
|
— |
|
|
307 |
|
|
443 |
|
Realized investment
securities gains, net |
|
197 |
|
|
— |
|
|
423 |
|
|
60 |
|
Other income |
|
314 |
|
|
322 |
|
|
983 |
|
|
892 |
|
Total noninterest income |
|
2,264 |
|
|
1,919 |
|
|
6,740 |
|
|
6,052 |
|
Noninterest
expense |
|
|
|
|
|
|
|
|
Salaries and employee
benefits |
|
4,430 |
|
|
4,154 |
|
|
13,216 |
|
|
12,644 |
|
Occupancy |
|
1,087 |
|
|
1,038 |
|
|
3,315 |
|
|
2,972 |
|
Data processing |
|
635 |
|
|
643 |
|
|
2,031 |
|
|
1,849 |
|
FDIC insurance |
|
151 |
|
|
272 |
|
|
514 |
|
|
714 |
|
Other expenses |
|
1,717 |
|
|
1,886 |
|
|
5,159 |
|
|
5,432 |
|
Total noninterest expense |
|
8,020 |
|
|
7,993 |
|
|
24,235 |
|
|
23,611 |
|
Income before income taxes |
|
9,275 |
|
|
8,447 |
|
|
27,018 |
|
|
24,234 |
|
Income taxes |
|
2,870 |
|
|
2,634 |
|
|
8,142 |
|
|
7,249 |
|
Net income |
|
$ |
6,405 |
|
|
$ |
5,813 |
|
|
$ |
18,876 |
|
|
$ |
16,985 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEST BANCORPORATION, INC. AND SUBSIDIARY |
Financial
Information (continued) (unaudited) |
|
|
|
|
|
|
|
|
|
PER COMMON SHARE |
|
MARKET INFORMATION (1) |
|
|
Net Income |
|
|
|
|
|
|
|
|
Basic |
|
Diluted |
|
Dividends |
|
High |
|
Low |
2017 |
|
|
|
|
|
|
|
|
|
|
3rd Quarter |
|
$ |
0.40 |
|
$ |
0.39 |
|
$ |
0.18 |
|
$ |
24.75 |
|
$ |
20.90 |
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 September 30, |
|
Nine Months Ended September 30, |
SELECTED FINANCIAL MEASURES |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Return on average
assets |
|
1.29 |
% |
|
1.26 |
% |
|
1.32 |
% |
|
1.26 |
% |
Return on average
equity |
|
14.41 |
% |
|
14.20 |
% |
|
14.69 |
% |
|
14.29 |
% |
Net interest
margin |
|
3.31 |
% |
|
3.50 |
% |
|
3.41 |
% |
|
3.51 |
% |
Efficiency ratio* |
|
45.10 |
% |
|
46.25 |
% |
|
45.95 |
% |
|
46.59 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
As of September 30, |
|
|
|
|
|
|
2017 |
|
2016 |
Texas ratio* |
|
|
|
|
|
0.27 |
% |
|
0.55 |
% |
Allowance for loan
losses ratio |
|
|
|
|
|
1.12 |
% |
|
1.15 |
% |
Tangible common equity
ratio |
|
|
|
|
|
8.77 |
% |
|
9.03 |
% |
* 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(1) - annualized tax-equivalent net interest
income divided by average interest-earning assets.
- Efficiency ratio(1) - 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.
(1) Non-GAAP measures - see reconciliation in
the West Bancorporation, Inc. September 30, 2017 Form 10-Q.
For more information contact:Doug Gulling,
Executive Vice President and Chief Financial Officer (515)
222-2309
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