• West Bancorporation, Inc. Announces Record Net Income for the Second Quarter of 2021, Declares Quarterly Dividend

    Источник: Nasdaq GlobeNewswire / 29 июл 2021 08:30:01   America/New_York

    WEST DES MOINES, Iowa, July 29, 2021 (GLOBE NEWSWIRE) -- West Bancorporation, Inc. (Nasdaq: WTBA; the “Company”), parent company of West Bank, today reported that second quarter 2021 net income was $13.2 million, or $0.79 per diluted common share, compared to second quarter 2020 net income of $8.0 million, or $0.48 per diluted common share. For the first six months of 2021, net income was $25.0 million, or $1.49 per diluted common share, compared to $16.1 million, or $0.97 per diluted common share, for the first six months of 2020. On July 28, 2021, the Company’s Board of Directors declared a regular quarterly dividend of $0.24 per common share. The dividend is payable on August 25, 2021, to stockholders of record on August 11, 2021.

    Dave Nelson, President and Chief Executive Officer of the Company, commented, “As the country and our communities continue to emerge from the economic uncertainties created by the COVID-19 pandemic, our bankers are dedicated to executing our strategic objectives, which include organic loan growth and superior credit quality resulting from disciplined underwriting. We are pleased to have loan growth (exclusive of Paycheck Protection Program (PPP) loan activity) of 6.0 percent for the first six months of 2021, and year over year loan growth of 12.6 percent (also exclusive of PPP loan activity). Our credit quality continues to improve as all remaining COVID-related loan modifications expired in the second quarter and those loans returned to normal payment status. This improvement in economic conditions and credit quality resulted in a negative provision for loan losses of $2.0 million in the second quarter compared to a provision for loan losses of $3.0 million in the second quarter last year.”

    Dave Nelson also commented, “We continue to build our brand in Minnesota. Construction of our permanent branch office in Sartell, Minnesota, a suburb of St. Cloud, is expected to be completed before the end of the year. We are also in the planning phase for the construction of a permanent branch office in Mankato, Minnesota.”

    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 the Company’s 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, July 30, 2021. The telephone number for the conference call is 888-339-0814. A recording of the call will be available until August 13, 2021, by dialing 877-344-7529. The replay passcode is 10150541.

    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 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 June 30, 2021 June 30, 2020
    Assets    
    Cash and due from banks $31,978    $54,175  
    Federal funds sold 238,845    62,494  
    Securities available for sale, at fair value 601,462    342,017  
    Federal Home Loan Bank stock, at cost 10,189    12,307  
    Loans 2,309,527    2,199,688  
    Allowance for loan losses (28,042)  (21,363) 
    Loans, net 2,281,485    2,178,325  
    Premises and equipment, net 30,753    28,655  
    Bank-owned life insurance 43,146    35,187  
    Other assets 30,902    27,163  
    Total assets $3,268,760    $2,740,323  
         
    Liabilities and Stockholders’ Equity    
    Deposits:    
    Noninterest-bearing demand $703,691    $590,487  
    Interest-bearing:    
    Demand 487,642    378,931  
    Savings 1,391,231    1,081,743  
    Time of $250 or more 46,660    61,456  
    Other time 196,065    143,092  
    Total deposits 2,825,289    2,255,709  
    Federal funds purchased 3,605    5,755  
    Other borrowings 165,744    223,181  
    Other liabilities 27,596    46,991  
    Stockholders’ equity 246,526    208,687  
    Total liabilities and stockholders’ equity $3,268,760    $2,740,323  


           
           
    WEST BANCORPORATION, INC. AND SUBSIDIARY      
    Financial Information (continued) (unaudited)        
    (in thousands)        
             
      Three Months Ended June 30, Six Months Ended June 30,
    CONSOLIDATED STATEMENTS OF INCOME 2021 2020 2021 2020
    Interest income        
    Loans, including fees $23,139    $22,332   $47,177    $44,643  
    Securities 2,607    2,313   4,810    4,993  
    Other 75    12   144    241  
    Total interest income 25,821    24,657   52,131    49,877  
    Interest expense        
    Deposits 1,995    2,351   3,872    7,397  
    Federal funds purchased 1    3   2    19  
    Other borrowings 975    1,556   2,286    3,250  
    Total interest expense 2,971    3,910   6,160    10,666  
    Net interest income 22,850    20,747   45,971    39,211  
    Provision for loan losses (2,000)  3,000   (1,500)  4,000  
    Net interest income after provision for loan losses 24,850    17,747   47,471    35,211  
    Noninterest income        
    Service charges on deposit accounts 578    531   1,160    1,134  
    Debit card usage fees 511    391   953    773  
    Trust services 691    461   1,343    924  
    Increase in cash value of bank-owned life insurance 240    136   460    294  
    Loan swap fees 42    3   42    589  
    Realized investment securities gains (losses), net 36    (69)  40    (75) 
    Other income 417    322   982    656  
    Total noninterest income 2,515    1,775   4,980    4,295  
    Noninterest expense        
    Salaries and employee benefits 5,672    5,318   11,280    10,602  
    Occupancy 1,199    1,217   2,427    2,430  
    Data processing 617    554   1,219    1,184  
    FDIC insurance 426    292   830    529  
    Other expenses 2,612    2,036   5,041    4,335  
    Total noninterest expense 10,526    9,417   20,797    19,080  
    Income before income taxes 16,839    10,105   31,654    20,426  
    Income taxes 3,600    2,136   6,663    4,368  
    Net income $13,239    $7,969   $24,991    $16,058  


       
       
    WEST BANCORPORATION, INC. AND SUBSIDIARY  
    Financial Information (continued) (unaudited)        
             
           
      PER COMMON SHARE MARKET INFORMATION (1)
      Net Income      
      Basic Diluted Dividends High Low
    2021          
    2nd Quarter $0.80   $0.79   $0.24   $29.90   $23.92  
    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 June 30, Six Months Ended June 30,
    SELECTED FINANCIAL MEASURES 2021 2020 2021 2020
    Return on average assets 1.65 % 1.19% 1.59 % 1.23%
    Return on average equity 22.20 % 15.68% 21.50 % 15.61%
    Net interest margin on a FTE basis (1) 2.99 % 3.27% 3.08 % 3.19%
    Efficiency ratio (1)(2) 41.11 % 41.33% 40.43 % 43.41%
             
        As of June 30,
          2021 2020
    Texas ratio(2)     5.31 % 0.17%
    Allowance for loan losses ratio     1.21 % 0.97%
    Allowance for loan losses ratio, excluding PPP loans (1)(3)      1.26 % 1.08%
    Tangible common equity ratio     7.54 % 7.62%

    (1) Non-GAAP financial measures - see reconciliation below
    (2) A lower ratio is more desirable
    (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 press release 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 June 30, Six Months Ended June 30,
      2021 2020 2021  2020
    Reconciliation of net interest income and net interest margin on a FTE basis to GAAP:        
    Net interest income (GAAP) $22,850   $20,747  $45,971   $39,211 
    Tax-equivalent adjustment (1) 270   194  499   372 
    Net interest income on a FTE basis (non-GAAP) 23,120   20,941  46,470   39,583 
    Average interest-earning assets 3,102,649   2,572,211  3,041,519   2,496,354 
    Net interest margin on a FTE basis (non-GAAP) 2.99 % 3.27% 3.08 % 3.19%
             
    Reconciliation of efficiency ratio on an adjusted and FTE basis to GAAP:        
    Net interest income on a FTE basis (non-GAAP) $23,120   $20,941  $46,470   $39,583 
    Noninterest income 2,515   1,775  4,980   4,295 
    Adjustment for realized securities (gains) losses, net (36)  69  (40)  75 
    Adjustment for losses on disposal of premises and equipment, net 5   —  29   2 
    Adjusted income 25,604   22,785  51,439   43,955 
    Noninterest expense 10,526   9,417  20,797   19,080 
    Efficiency ratio on an adjusted and FTE basis (non-GAAP) (2) 41.11 % 41.33% 40.43
    		% 43.41%
             
          As of June 30,
          2021  2020
    Reconciliation of allowance for loan losses ratio, excluding PPP loans:          
    Loans outstanding (GAAP)     $2,309,527   $2,199,688 
    Less: PPP loans     (84,573)  (223,435) 
    Loans, net of PPP loans (non-GAAP)     2,224,954   1,976,253 
    Allowance for loan losses     28,042   21,363 
    Allowance for loan losses ratio, excluding PPP loans (non-GAAP)       1.26 % 1.08%

    (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


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