West Bancorporation, Inc. (Nasdaq: WTBA; the “Company”), parent
company of West Bank, today reported that first quarter 2021 net
income was $11.8 million, or $0.70 per diluted common share,
compared to first quarter 2020 net income of $8.1 million, or $0.49
per diluted common share. On April 28, 2021, the Company’s Board of
Directors declared a regular quarterly dividend of $0.24 per common
share, an increase of $0.02 from the prior quarter and representing
a record high quarterly dividend for the Company. The dividend is
payable on May 26, 2021, to stockholders of record on May 12, 2021.
Dave Nelson, President and Chief Executive
Officer of the Company, commented, “One year ago, the onset of the
COVID-19 pandemic created significant economic uncertainty across
the world. The strength of West Bank’s capital, credit quality and
customer relationships provided a strong footing for navigating the
economic uncertainties and operational difficulties created by the
pandemic. One year later, West Bank continues to post record
results. Our commitment to our shareholders, customers and
communities has never been stronger. We continue to build our brand
in Minnesota and are excited to have begun construction of a
permanent branch office in Sartell, Minnesota.”
Dave Nelson also commented, “West Bank was
recently ranked 10th in the nation of best-performing large
community banks by S&P Global Market Intelligence. The ranking
includes public and privately owned community banks between $3
billion and $10 billion in assets in 2020 and is based on six
financial performance metrics. We are proud of the acknowledgment
our team has received.”
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, April 30, 2021. The telephone number for the
conference call is 888-339-0814. A recording of the call will be
available until May 14, 2021, by dialing 877-344-7529. The replay
passcode is 10150543.
About West Bancorporation, Inc. (Nasdaq:
WTBA)West Bancorporation, Inc. is headquartered in West
Des Moines, Iowa. Serving customers 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 seven offices in the Des Moines, Iowa metropolitan area,
one office in Coralville, Iowa, and four offices in Minnesota in
the cities of Rochester, Owatonna, Mankato and St. Cloud.
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,” “confident,” “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: the effects of the COVID-19 pandemic,
including its potential effects on the economic environment, our
customers and our operations, as well as any changes to federal,
state or local government laws, regulations or orders in connection
with the pandemic; 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, accounting standards (including as a result of the
future implementation of the current expected credit loss (CECL)
accounting standard) or regulatory requirements; actions of bank
and nonbank competitors; changes in local, national and
international economic conditions; changes in legal and 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; the monetary, trade and other regulatory policies of the
U.S. government; acts of war or terrorism, widespread disease or
pandemics, such as the COVID-19 pandemic, or other adverse external
events; developments and uncertainty related to the future use and
availability of some reference rates, such as the London Interbank
Offered Rate, as well as other alternative reference rates; changes
to U.S. tax laws, regulations and guidance; 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) |
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEETS |
|
March 31, 2021 |
|
March 31, 2020 |
Assets |
|
|
|
|
Cash and due from banks |
|
$ |
23,570 |
|
|
$ |
65,256 |
|
|
Federal funds sold |
|
301,919 |
|
|
1,141 |
|
|
Securities available for sale,
at fair value |
|
447,152 |
|
|
372,420 |
|
|
Federal Home Loan Bank stock,
at cost |
|
12,414 |
|
|
13,739 |
|
|
Loans |
|
2,303,999 |
|
|
1,994,432 |
|
|
Allowance for loan losses |
|
(30,008 |
) |
|
(18,332 |
) |
|
Loans, net |
|
2,273,991 |
|
|
1,976,100 |
|
|
Premises and equipment,
net |
|
29,308 |
|
|
29,129 |
|
|
Bank-owned life insurance |
|
42,906 |
|
|
35,051 |
|
|
Other assets |
|
41,646 |
|
|
26,773 |
|
|
Total assets |
|
$ |
3,172,906 |
|
|
$ |
2,519,609 |
|
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
Deposits: |
|
|
|
|
Noninterest-bearing demand |
|
$ |
691,329 |
|
|
$ |
408,144 |
|
|
Interest-bearing: |
|
|
|
|
Demand |
|
466,913 |
|
|
357,313 |
|
|
Savings |
|
1,318,536 |
|
|
1,025,749 |
|
|
Time of $250 or more |
|
45,844 |
|
|
71,789 |
|
|
Other time |
|
159,471 |
|
|
157,130 |
|
|
Total deposits |
|
2,682,093 |
|
|
2,020,125 |
|
|
Federal funds purchased |
|
4,060 |
|
|
32,340 |
|
|
Other borrowings |
|
216,374 |
|
|
222,958 |
|
|
Other liabilities |
|
35,850 |
|
|
43,493 |
|
|
Stockholders’ equity |
|
234,529 |
|
|
200,693 |
|
|
Total liabilities and stockholders’ equity |
|
$ |
3,172,906 |
|
|
$ |
2,519,609 |
|
|
WEST
BANCORPORATION, INC. AND SUBSIDIARY |
|
|
|
Financial Information
(continued) (unaudited) |
|
|
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
CONSOLIDATED STATEMENTS OF INCOME |
|
2021 |
|
2020 |
Interest income |
|
|
|
|
Loans, including fees |
|
$ |
24,038 |
|
|
$ |
22,311 |
|
|
Securities |
|
2,203 |
|
|
2,680 |
|
|
Other |
|
69 |
|
|
229 |
|
|
Total interest income |
|
26,310 |
|
|
25,220 |
|
|
Interest
expense |
|
|
|
|
Deposits |
|
1,877 |
|
|
5,046 |
|
|
Federal funds purchased |
|
1 |
|
|
16 |
|
|
Other borrowings |
|
1,311 |
|
|
1,694 |
|
|
Total interest expense |
|
3,189 |
|
|
6,756 |
|
|
Net interest income |
|
23,121 |
|
|
18,464 |
|
|
Provision for loan losses |
|
500 |
|
|
1,000 |
|
|
Net interest income after provision for loan
losses |
|
22,621 |
|
|
17,464 |
|
|
Noninterest
income |
|
|
|
|
Service charges on deposit
accounts |
|
582 |
|
|
603 |
|
|
Debit card usage fees |
|
442 |
|
|
382 |
|
|
Trust services |
|
652 |
|
|
463 |
|
|
Increase in cash value of
bank-owned life insurance |
|
220 |
|
|
158 |
|
|
Loan swap fees |
|
— |
|
|
586 |
|
|
Realized investment securities
gains (losses), net |
|
4 |
|
|
(6 |
) |
|
Other income |
|
565 |
|
|
334 |
|
|
Total noninterest income |
|
2,465 |
|
|
2,520 |
|
|
Noninterest
expense |
|
|
|
|
Salaries and employee
benefits |
|
5,608 |
|
|
5,284 |
|
|
Occupancy |
|
1,228 |
|
|
1,213 |
|
|
Data processing |
|
602 |
|
|
630 |
|
|
FDIC insurance |
|
404 |
|
|
237 |
|
|
Other expenses |
|
2,429 |
|
|
2,299 |
|
|
Total noninterest expense |
|
10,271 |
|
|
9,663 |
|
|
Income before income taxes |
|
14,815 |
|
|
10,321 |
|
|
Income taxes |
|
3,063 |
|
|
2,232 |
|
|
Net income |
|
$ |
11,752 |
|
|
$ |
8,089 |
|
|
WEST
BANCORPORATION, INC. AND SUBSIDIARY |
|
|
Financial
Information (continued) (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER COMMON SHARE |
|
MARKET INFORMATION (1) |
|
|
Net Income |
|
|
|
|
|
|
|
|
Basic |
|
Diluted |
|
Dividends |
|
High |
|
Low |
2021 |
|
|
|
|
|
|
|
|
|
|
1st Quarter |
|
$ |
0.71 |
|
|
$ |
0.70 |
|
|
$ |
0.22 |
|
|
$ |
26.78 |
|
|
$ |
18.86 |
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
4th Quarter |
|
$ |
0.52 |
|
|
$ |
0.52 |
|
|
$ |
0.21 |
|
|
$ |
21.79 |
|
|
$ |
15.53 |
|
3rd Quarter |
|
0.49 |
|
|
0.49 |
|
|
0.21 |
|
|
17.99 |
|
|
15.50 |
|
2nd Quarter |
|
0.48 |
|
|
0.48 |
|
|
0.21 |
|
|
20.67 |
|
|
14.50 |
|
1st Quarter |
|
0.49 |
|
|
0.49 |
|
|
0.21 |
|
|
25.68 |
|
|
13.74 |
|
(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 March 31, |
SELECTED FINANCIAL MEASURES |
|
2021 |
|
2020 |
Return on average assets |
|
1.53 |
% |
|
1.29 |
% |
Return on average equity |
|
20.77 |
% |
|
15.54 |
% |
Net interest margin (2) |
|
3.17 |
% |
|
3.10 |
% |
Efficiency ratio (1)(2) |
|
39.75 |
% |
|
45.64 |
% |
|
|
|
|
|
|
|
As of March 31, |
|
|
2021 |
|
2020 |
Texas ratio(1) |
|
9.38 |
% |
|
0.22 |
% |
Allowance for loan losses
ratio |
|
1.30 |
% |
|
0.92 |
% |
Allowance for loan
losses ratio, excluding PPP loans (2)(3) |
1.39 |
% |
|
0.92 |
% |
Tangible common equity
ratio |
|
7.39 |
% |
|
7.97 |
% |
(1) A lower ratio is more desirable(2) Non-GAAP
financial measures - see reconciliation below(3) Paycheck
Protection Program (PPP)
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/losses 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.
- Allowance for loan losses ratio,
excluding PPP loans - allowance for loan losses divided by total
loans minus the amount of PPP loans.
- Tangible common equity ratio -
common equity less intangible assets (none held) divided by
tangible assets.
WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (continued) (unaudited) (dollars in
thousands)
NON-GAAP FINANCIAL MEASURES
This report contains references to financial
measures that are not defined in generally accepted accounting
principles (GAAP). The following table reconciles the non-GAAP
financial measures of net interest income and net interest margin
on a fully taxable equivalent (FTE) basis, efficiency ratio on an
adjusted and FTE basis, loans, net of PPP loans and allowance for
loan losses ratio, excluding PPP loans, to their most directly
comparable measures under GAAP.
|
|
Three Months Ended March 31, |
|
|
2021 |
|
|
2020 |
Reconciliation of net interest income and net interest
margin on an FTE basis to GAAP: |
|
|
|
|
Net interest income (GAAP) |
|
$ |
23,121 |
|
|
|
$ |
18,464 |
|
Tax-equivalent adjustment
(1) |
|
229 |
|
|
|
178 |
|
Net interest income on an FTE basis (non-GAAP) |
|
23,350 |
|
|
|
18,642 |
|
Average interest-earning
assets |
|
2,979,710 |
|
|
|
2,420,497 |
|
Net interest margin on an FTE
basis (non-GAAP) |
|
3.17 |
|
% |
|
3.10 |
% |
|
|
|
|
|
Reconciliation of efficiency ratio on an adjusted and FTE
basis to GAAP: |
|
|
|
|
Net interest income on an FTE
basis (non-GAAP) |
|
$ |
23,350 |
|
|
|
$ |
18,642 |
|
Noninterest income |
|
2,465 |
|
|
|
2,520 |
|
Adjustment for realized securities (gains) losses, net |
|
(4 |
) |
|
|
6 |
|
Adjustment for losses on disposal of premises and equipment,
net |
|
24 |
|
|
|
2 |
|
Adjusted income |
|
25,835 |
|
|
|
21,170 |
|
Noninterest expense |
|
10,271 |
|
|
|
9,663 |
|
Efficiency ratio on an adjusted and FTE basis (non-GAAP) (2) |
|
39.75 |
|
% |
|
45.64 |
% |
|
|
|
|
|
|
|
As of March 31, |
|
|
2021 |
|
|
2020 |
Reconciliation of allowance for loan losses ratio,
excluding PPP loans: |
|
|
|
Loans outstanding (GAAP) |
|
$ |
2,303,999 |
|
|
|
$ |
1,994,432 |
|
Less: PPP loans |
|
(151,122 |
) |
|
|
— |
|
Loans, net of PPP loans
(non-GAAP) |
|
2,152,877 |
|
|
|
1,994,432 |
|
Allowance for loan losses |
|
30,008 |
|
|
|
18,332 |
|
Allowance for loan
losses ratio, excluding PPP loans (non-GAAP) |
1.39 |
|
% |
|
0.92 |
% |
(1) Computed on a tax-equivalent basis using a
federal income tax rate of 21 percent, adjusted to reflect the
effect of the nondeductible interest expense associated with owning
tax-exempt securities and loans. Management believes the
presentation of this non-GAAP measure provides supplemental useful
information for proper understanding of the financial results, as
it enhances the comparability of income arising from taxable and
nontaxable sources. (2) The efficiency ratio expresses noninterest
expense as a percent of fully taxable equivalent net interest
income and noninterest income, excluding specific noninterest
income and expenses. Management believes the presentation of this
non-GAAP measure provides supplemental useful information for
proper understanding of the Company’s financial performance. It is
a standard measure of comparison within the banking industry.
For more information contact:Doug Gulling,
Executive Vice President, Treasurer and Chief Financial Officer
(515) 222-2309
West Bancorporation (NASDAQ:WTBA)
Historical Stock Chart
From Mar 2024 to Apr 2024
West Bancorporation (NASDAQ:WTBA)
Historical Stock Chart
From Apr 2023 to Apr 2024