Requirements to Be Well-Capitalized Actual ------------------ ------------------ Amount Ratio Amount Ratio --------- -------- --------- -------- As of December 31, 2009: Total Capital (to Risk-Weighted Assets) Consolidated n/a n/a $ 171,994 14.5% West Bank $ 118,181 10.0% 166,571 14.1% Tier I Capital (to Risk-Weighted Assets) Consolidated n/a n/a 157,098 13.2% West Bank 70,908 6.0% 141,745 12.0% Tier I Capital (to Average Assets) Consolidated n/a n/a 157,098 9.8% West Bank 80,016 5.0% 141,745 8.9%The Company will file its annual report on Form 10-K with the Securities and Exchange Commission in early March 2010. Please refer to it for a more in-depth analysis of our results. It will be available on the Investor Relations section of the Company's website at www.westbankiowa.com when it is filed. The Company will discuss its results for the fourth quarter and year 2009 during a conference call scheduled for 2:00 p.m. central time today, Friday, January 29, 2010. The telephone number for the conference call is 800-860-2442. A recording of the call will be available until March 1, 2010, at 877-344-7529, pass code: 436689. 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 two full-service offices in Iowa City, one full-service office in Coralville, and eight full-service offices in the greater Des Moines area. The information contained in this report may contain forward-looking statements about the Company's growth and acquisition strategies, new products and services, and future financial performance, including earnings and dividends per share, return on average assets, return on average equity, efficiency ratio and capital ratios. Certain statements in this report constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements preceded by, followed by or that include the words "believes," "expects," "intends," "should," or "anticipates," or similar references or references to estimates or predictions. Such forward-looking statements are based upon certain underlying assumptions, risks and uncertainties. Because of the possibility of change in the underlying assumptions, 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, including actions of the Securities and Exchange Commission and/or the Federal Reserve Board; changes in the Treasury's Capital Purchase Program; and customers' acceptance of the Company's products and services. The Company undertakes no obligation to revise or update such forward-looking statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
WEST BANCORPORATION, INC. AND SUBSIDIARIES Financial Information (unaudited) (in thousands, except per share data) December 31, December 31, CONSOLIDATED STATEMENTS OF CONDITION 2009 2008 -------------- -------------- Assets Cash and due from banks $ 27,923 $ 23,712 Short-term investments 103,572 173,257 Securities 351,269 189,558 Loans held for sale 332 1,018 Loans 1,020,710 1,100,735 Allowance for loan losses (19,126) (15,441) -------------- -------------- Loans, net 1,001,584 1,085,294 Goodwill - 13,376 Bank-owned life insurance 25,400 25,277 Other real estate owned 25,350 4,352 Other assets 39,624 38,432 -------------- -------------- Total assets $ 1,575,054 $ 1,554,276 ============== ============== Liabilities and Stockholders' Equity Deposits: Noninterest-bearing $ 206,412 $ 174,980 Interest-bearing Demand 162,305 97,853 Savings 442,137 238,058 Time of $100,000 or more 271,145 274,825 Other Time 164,618 369,416 -------------- -------------- Total deposits 1,246,617 1,155,132 Short-term borrowings 42,895 93,356 Long-term borrowings 145,619 145,619 Other liabilities 6,864 10,106 Stockholders' equity 133,059 150,063 -------------- -------------- Total liabilities and stockholders' equity $ 1,575,054 $ 1,554,276 ============== ============== PER COMMON SHARE MARKET INFORMATION (1) Net Income (Loss) Dividends High Low ------------- --------------- --------------- --------------- 2009 1st quarter $ 0.14 $ 0.08 $ 12.40 $ 4.36 2nd quarter (1.32) 0.01 9.50 5.00 3rd quarter 0.08 - 6.38 4.61 4th quarter 0.13 - 5.50 4.28 2008 1st quarter $ 0.08 $ 0.16 $ 14.43 $ 11.71 2nd quarter 0.26 0.16 13.48 8.63 3rd quarter (0.02) 0.16 16.21 7.30 4th quarter 0.12 0.16 13.50 8.67 (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. WEST BANCORPORATION, INC. AND SUBSIDIARIES Financial Information (continued) (unaudited) (in thousands, except per share data) Three months ended Year ended CONSOLIDATED STATEMENTS December 31, December 31, OF OPERATIONS 2009 2008 2009 2008 ----------- ----------- ----------- ----------- Interest income Loans $ 14,271 $ 15,848 $ 59,309 $ 63,525 Securities 1,873 2,109 7,900 8,540 Other 137 196 521 467 ----------- ----------- ----------- ----------- Total interest income 16,281 18,153 67,730 72,532 ----------- ----------- ----------- ----------- Interest expense Deposits 4,306 5,607 19,548 21,521 Short-term borrowings 80 224 320 2,827 Long-term borrowings 1,706 1,719 6,768 7,083 ----------- ----------- ----------- ----------- Total interest expense 6,092 7,550 26,636 31,431 ----------- ----------- ----------- ----------- Net interest income 10,189 10,603 41,094 41,101 Provision for loan losses 3,000 3,000 24,500 16,600 ----------- ----------- ----------- ----------- Net interest income after provision for loan losses 7,189 7,603 16,594 24,501 ----------- ----------- ----------- ----------- Noninterest income Service charges on deposit accounts 901 1,249 4,021 4,832 Trust services 205 184 786 789 Gains and fees on sales of residential mortgages 255 188 1,114 544 Increase in cash value of bank-owned life insurance 214 239 776 936 Proceeds from bank-owned life insurance - - 840 - Other income 536 454 2,095 1,866 ----------- ----------- ----------- ----------- Total noninterest income 2,111 2,314 9,632 8,967 ----------- ----------- ----------- ----------- Investment securities gains (losses), net Total other-than-temporary impairment losses (30) (3,014) (3,444) (4,739) Portion of loss recognized in other comprehensive income (loss) before taxes (65) - 832 - ----------- ----------- ----------- ----------- Net impairment losses recognized in earnings (95) (3,014) (2,612) (4,739) Realized securities gains (losses), net (76) 2 1,884 73 ----------- ----------- ----------- ----------- Investment securities gains (losses), net (171) (3,012) (728) (4,666) ----------- ----------- ----------- ----------- Noninterest expense Salaries and employee benefits 2,444 1,716 9,938 9,257 Occupancy 814 750 3,451 2,992 Data processing 449 391 1,761 1,748 FDIC insurance expense 469 212 2,736 606 Goodwill impairment - - 13,376 - Other expense 1,523 1,367 6,643 5,502 ----------- ----------- ----------- ----------- Total noninterest expense 5,699 4,436 37,905 20,105 ----------- ----------- ----------- ----------- Income (loss) before income taxes 3,430 2,469 (12,407) 8,697 Income taxes (benefits) 665 590 (7,356) 1,386 ----------- ----------- ----------- ----------- Income (loss) from continuing operations 2,765 1,879 (5,051) 7,311 ----------- ----------- ----------- ----------- Income (loss) from discontinued operations before income taxes 132 391 (10,262) 563 Income taxes (benefits) 81 162 (696) 238 ----------- ----------- ----------- ----------- Income (loss) from discontinued operations 51 229 (9,566) 325 ----------- ----------- ----------- ----------- Net income (loss) 2,816 2,108 (14,617) 7,636 Preferred stock dividends and accretion of discount (568) - (2,276) - ----------- ----------- ----------- ----------- Net income (loss) available to common stockholders $ 2,248 $ 2,108 $ (16,893) $ 7,636 =========== =========== =========== =========== WEST BANCORPORATION, INC. AND SUBSIDIARIES Financial Information (continued) (unaudited) (in thousands, except per share data) Three months ended Year ended SUPPLEMENTAL December 31, December 31, INFORMATION 2009 2008 2009 2008 ----------- ----------- ----------- ----------- Income (loss) from continuing operations $ 2,765 $ 1,879 $ (5,051) $ 7,311 Preferred stock dividends and accretion of discount (568) - (2,276) - ----------- ----------- ----------- ----------- Net income (loss) from continuing operations available to common stockholders $ 2,197 $ 1,879 $ (7,327) $ 7,311 =========== =========== =========== =========== PERFORMANCE HIGHLIGHTS ----------- ----------- ----------- ----------- Return on average equity 8.22% 7.37% -10.21% 6.47% Return on average assets 0.70% 0.57% -0.90% 0.56% Net interest margin 2.85% 3.24% 2.86% 3.38% Efficiency ratio 44.02% 32.84% 45.99% 38.56%
Contact Information: For more information contact: Doug Gulling Executive Vice President and Chief Financial Officer (515) 222-2309