West Bancorporation, Inc. (Nasdaq: WTBA; the “Company”), parent
company of West Bank, today reported third quarter 2023 net income
of $5.9 million, or $0.35 per diluted common share, compared to
second quarter 2023 net income of $5.9 million, or $0.35 per
diluted common share, and third quarter 2022 net income of $11.6
million, or $0.69 per diluted common share. On October 25, 2023,
the Company’s Board of Directors declared a regular quarterly
dividend of $0.25 per common share. The dividend is payable on
November 22, 2023, to stockholders of record on November 8, 2023.
David Nelson, President and Chief Executive
Officer of the Company, commented, “West Bank and the banking
industry are healthy and strong. While West Bank’s earnings have
been negatively impacted by the unprecedented size and pace of the
Federal Reserve’s interest rate increases over the last 18 months,
we remain committed to delivering high quality services and
products, building strong relationships and delivering long-term
shareholder value.”
David Nelson added, “Our capital position is
strong and our credit quality continues to be pristine. West Bank
had no loans past due more than 30 days and only one nonaccrual
loan at the end of the third quarter. Our credit risk management
team remains focused on the economic uncertainties that are ahead
and the volatile interest rate environment.”
Third Quarter 2023 Financial Highlights |
|
|
|
Quarter EndedSeptember 30, 2023 |
|
Nine Months EndedSeptember 30, 2023 |
|
Net income (in thousands) |
$ |
5,906 |
|
|
$ |
19,612 |
|
|
Return on average equity |
|
10.89 |
% |
|
|
12.22 |
% |
|
Return on average assets |
|
0.64 |
% |
|
|
0.72 |
% |
|
Efficiency ratio (a non-GAAP
measure) |
|
60.83 |
% |
|
|
59.52 |
% |
|
Nonperforming assets to total
assets |
|
0.01 |
% |
|
|
0.01 |
% |
|
|
|
|
|
|
|
|
|
Third Quarter 2023 Compared to Second
Quarter 2023 Overview
- Loans increased $42.7 million in
the third quarter of 2023, or 6.1 percent annualized.
- A provision for credit losses of
$200 thousand was recorded in the third quarter of 2023, compared
to no provision in the second quarter of 2023. The provision in the
third quarter of 2023 was directly associated with loan
growth.
- The allowance for credit losses to
total loans was 0.99 percent at September 30, 2023, compared to
1.00 percent at June 30, 2023. Nonaccrual loans at September 30,
2023 consisted of one loan with a balance of $303 thousand, in
comparison to one loan with a balance of $309 thousand at June 30,
2023.
- Loan swap fees of $431 thousand
were recorded in the third quarter of 2023, compared to none in the
second quarter of 2023.
- Deposits decreased $80.8 million,
or 2.8 percent, in the third quarter of 2023. Brokered deposits
totaled $237.0 million at September 30, 2023, compared to $230.7
million at June 30, 2023, an increase of $6.3 million. Excluding
brokered deposits, deposits decreased $87.1 million, or 3.3
percent, during the third quarter of 2023. The decline in deposits
was primarily attributable to customers using their own liquidity
to fund business transactions, instead of incurring debt, and
customers seeking higher yielding investment options. As of
September 30, 2023, estimated uninsured deposits, which excludes
deposits in the IntraFi® reciprocal network, brokered deposits and
public funds protected by state programs, were approximately 28.0
percent of total deposits.
- Borrowed funds increased to $705.1
million at September 30, 2023, compared to $593.9 million at June
30, 2023. The increase included $77.4 million in federal funds
purchased and other short-term borrowings and $35.0 million in
Federal Home Loan Bank (FHLB) one-month rolling advances hedged
with long-term interest rate swaps.
- The efficiency ratio (a non-GAAP
measure) was 60.83 percent for the third quarter of 2023, compared
to 62.83 percent for the second quarter of 2023. The decrease in
the efficiency ratio was primarily due to the increase in
noninterest income and decrease in noninterest expense, partially
offset by the decrease in net interest income.
- Net interest margin, on a fully
tax-equivalent basis (a non-GAAP measure), was 1.91 percent for the
third quarter of 2023, compared to 2.02 percent for the second
quarter of 2023. Net interest income for the third quarter of 2023
was $16.6 million, compared to $17.3 million for the second quarter
of 2023. The rising cost of deposits and borrowed funds and the
change in mix of funding has increased interest expense faster than
the increase in interest income from loan repricing and loan
originations.
- The tangible common equity ratio
was 5.51 percent at September 30, 2023, compared to 5.90 percent at
June 30, 2023. The decline is attributable to the increase in
accumulated other comprehensive loss, primarily driven by the
negative effect that rising interest rates have had on the
unrealized market value adjustment of our available for sale
investment portfolio.
Third Quarter 2023 Compared to Third
Quarter 2022 Overview
- Loans increased $235.6 million at
September 30, 2023, or 9.0 percent, compared to September 30,
2022.
- Deposits decreased $67.3 million at
September 30, 2023, compared to September 30, 2022. Included in
deposits were brokered deposits totaling $237.0 million at
September 30, 2023, compared to $258.1 million at September 30,
2022. Excluding brokered deposits, deposits decreased $46.2
million, or 1.8 percent as of September 30, 2023 compared to
September 30, 2022. The remaining decline in deposits was primarily
attributable to customers using their own liquidity to fund
business transactions, instead of incurring debt, and customers
seeking higher yielding investment options.
- Borrowed funds increased to $705.1
million at September 30, 2023, compared to $460.3 million at
September 30, 2022. The increase included $190.0 million in FHLB
one-month rolling advances hedged with long-term interest rate
swaps and $57.0 million in federal funds purchased and other
short-term borrowings.
- The efficiency ratio (a non-GAAP
measure) was 60.83 percent for the third quarter of 2023, compared
to 43.16 percent for the third quarter of 2022. Tax-equivalent net
interest income decreased in the third quarter of 2023 compared to
the third quarter of 2022, primarily due to the increased cost of
deposits and borrowed funds. Additionally, noninterest expense
increased and noninterest income decreased.
- Net interest margin, on a fully
tax-equivalent basis (a non-GAAP measure), was 1.91 percent for the
third quarter of 2023, compared to 2.78 percent for the third
quarter of 2022. Net interest income for the third quarter of 2023
was $16.6 million, compared to $23.0 million for the third quarter
of 2022. In 2022 and year-to-date in 2023, the rising cost of
deposits and borrowed funds and the change in mix of funding
increased interest expense faster than the increase in interest
income from loan repricing and loan originations.
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 results in a
conference call scheduled for 2:00 p.m. Central Time on Thursday,
October 26, 2023. The telephone number for the conference call is
888-300-4030. The access code for the conference call is 3218904. A
recording of the call will be available until November 10, 2023, by
dialing 800-770-2030.
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 small- to medium-sized businesses and consumers. West
Bank has six 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: interest rate risk, including the effects
of recent and potential additional rate increases by the Federal
Reserve; fluctuations in the values of the securities held in our
investment portfolio, including as a result of changes in interest
rates; competitive pressures, including from non-bank competitors
such as “fintech” companies and digital asset service providers;
pricing pressures on loans and deposits; our ability to
successfully manage liquidity risk; changes in credit and other
risks posed by the Company’s loan portfolio, including declines in
commercial or residential real estate values or changes in the
allowance for credit losses dictated by new market conditions,
accounting standards (including as a result of the implementation
of the current expected credit loss (CECL) accounting standard) or
regulatory requirements; the concentration of large deposits from
certain clients who have balances above current FDIC insurance
limits; changes in local, national and international economic
conditions, including rising rates of inflation and possible
recession; the effects of recent developments and events in the
financial services industry, including the large-scale deposit
withdrawals over a short period of time at Silicon Valley Bank,
Signature Bank and First Republic Bank that resulted in the failure
of those institutions; changes in legal and regulatory
requirements, limitations and costs including in response to the
recent failures of Silicon Valley Bank, Signature Bank and First
Republic Bank; changes in customers’ acceptance of the Company’s
products and services; the occurrence of fraudulent activity,
breaches or failures of our information security controls or
cyber-security related incidents, including as a result of
sophisticated attacks using artificial intelligence and similar
tools; 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, including the
Israeli-Palestinian conflict and the Russian invasion of Ukraine,
widespread disease or pandemics, such as the COVID-19 pandemic, or
other adverse external events; risks related to climate change and
the negative impact it may have on our customers and their
businesses; changes to U.S. tax laws, regulations and guidance;
talent and labor shortages; the new 1 percent excise tax on stock
buybacks by publicly traded companies; 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) |
|
|
|
|
|
|
|
|
|
|
|
|
As of |
CONDENSED BALANCE SHEETS |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
Assets |
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
18,819 |
|
|
$ |
29,776 |
|
|
$ |
21,579 |
|
|
$ |
24,896 |
|
|
$ |
58,342 |
|
Interest-bearing deposits |
|
|
1,802 |
|
|
|
1,968 |
|
|
|
901 |
|
|
|
1,643 |
|
|
|
1,049 |
|
Securities available for sale,
at fair value |
|
|
609,365 |
|
|
|
645,091 |
|
|
|
665,358 |
|
|
|
664,115 |
|
|
|
671,752 |
|
Federal Home Loan Bank stock,
at cost |
|
|
26,691 |
|
|
|
22,488 |
|
|
|
22,226 |
|
|
|
19,336 |
|
|
|
18,350 |
|
Loans |
|
|
2,849,777 |
|
|
|
2,807,075 |
|
|
|
2,756,185 |
|
|
|
2,742,836 |
|
|
|
2,614,145 |
|
Allowance for credit losses |
|
|
(28,147 |
) |
|
|
(27,938 |
) |
|
|
(27,941 |
) |
|
|
(25,473 |
) |
|
|
(25,418 |
) |
Loans, net |
|
|
2,821,630 |
|
|
|
2,779,137 |
|
|
|
2,728,244 |
|
|
|
2,717,363 |
|
|
|
2,588,727 |
|
Premises and equipment,
net |
|
|
75,675 |
|
|
|
66,683 |
|
|
|
59,565 |
|
|
|
53,124 |
|
|
|
44,592 |
|
Bank-owned life insurance |
|
|
43,589 |
|
|
|
43,328 |
|
|
|
44,830 |
|
|
|
44,573 |
|
|
|
44,318 |
|
Other assets |
|
|
104,329 |
|
|
|
90,084 |
|
|
|
82,240 |
|
|
|
88,168 |
|
|
|
90,387 |
|
Total assets |
|
$ |
3,701,900 |
|
|
$ |
3,678,555 |
|
|
$ |
3,624,943 |
|
|
$ |
3,613,218 |
|
|
$ |
3,517,517 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
$ |
2,755,529 |
|
|
$ |
2,836,325 |
|
|
$ |
2,798,393 |
|
|
$ |
2,880,408 |
|
|
$ |
2,822,847 |
|
Federal funds purchased and
other short-term borrowings |
|
|
261,510 |
|
|
|
184,150 |
|
|
|
229,290 |
|
|
|
200,000 |
|
|
|
204,500 |
|
Other borrowings |
|
|
443,552 |
|
|
|
409,736 |
|
|
|
350,921 |
|
|
|
285,855 |
|
|
|
255,789 |
|
Other liabilities |
|
|
37,376 |
|
|
|
31,218 |
|
|
|
29,347 |
|
|
|
35,843 |
|
|
|
35,617 |
|
Stockholders’ equity |
|
|
203,933 |
|
|
|
217,126 |
|
|
|
216,992 |
|
|
|
211,112 |
|
|
|
198,764 |
|
Total liabilities and stockholders’ equity |
|
$ |
3,701,900 |
|
|
$ |
3,678,555 |
|
|
$ |
3,624,943 |
|
|
$ |
3,613,218 |
|
|
$ |
3,517,517 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
AVERAGE BALANCES |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
Assets |
|
$ |
3,679,541 |
|
|
$ |
3,645,651 |
|
|
$ |
3,617,458 |
|
|
$ |
3,511,717 |
|
|
$ |
3,475,894 |
|
Loans |
|
|
2,813,213 |
|
|
|
2,783,463 |
|
|
|
2,745,381 |
|
|
|
2,649,671 |
|
|
|
2,579,862 |
|
Deposits |
|
|
2,764,184 |
|
|
|
2,854,945 |
|
|
|
2,846,926 |
|
|
|
2,901,928 |
|
|
|
2,864,648 |
|
Stockholders’ equity |
|
|
215,230 |
|
|
|
213,177 |
|
|
|
215,391 |
|
|
|
199,947 |
|
|
|
219,065 |
|
WEST
BANCORPORATION, INC. AND SUBSIDIARY |
|
|
|
|
|
|
Financial Information
(unaudited) |
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
As of |
LOANS |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
Commercial |
|
$ |
529,293 |
|
|
$ |
535,085 |
|
|
$ |
520,894 |
|
|
$ |
519,196 |
|
|
$ |
526,336 |
|
Real estate: |
|
|
|
|
|
|
|
|
|
|
Construction, land and land development |
|
|
399,253 |
|
|
|
351,461 |
|
|
|
336,739 |
|
|
|
363,014 |
|
|
|
341,549 |
|
1-4 family residential first mortgages |
|
|
89,713 |
|
|
|
80,998 |
|
|
|
75,223 |
|
|
|
75,211 |
|
|
|
69,991 |
|
Home equity |
|
|
12,429 |
|
|
|
12,625 |
|
|
|
9,726 |
|
|
|
10,322 |
|
|
|
10,271 |
|
Commercial |
|
|
1,812,816 |
|
|
|
1,820,718 |
|
|
|
1,810,158 |
|
|
|
1,771,940 |
|
|
|
1,661,907 |
|
Consumer and other |
|
|
10,123 |
|
|
|
10,289 |
|
|
|
7,381 |
|
|
|
7,292 |
|
|
|
7,884 |
|
|
|
|
2,853,627 |
|
|
|
2,811,176 |
|
|
|
2,760,121 |
|
|
|
2,746,975 |
|
|
|
2,617,938 |
|
Net unamortized fees and
costs |
|
|
(3,850 |
) |
|
|
(4,101 |
) |
|
|
(3,936 |
) |
|
|
(4,139 |
) |
|
|
(3,793 |
) |
Total loans |
|
$ |
2,849,777 |
|
|
$ |
2,807,075 |
|
|
$ |
2,756,185 |
|
|
$ |
2,742,836 |
|
|
$ |
2,614,145 |
|
Less allowance for credit
losses |
|
|
(28,147 |
) |
|
|
(27,938 |
) |
|
|
(27,941 |
) |
|
|
(25,473 |
) |
|
|
(25,418 |
) |
Net loans |
|
$ |
2,821,630 |
|
|
$ |
2,779,137 |
|
|
$ |
2,728,244 |
|
|
$ |
2,717,363 |
|
|
$ |
2,588,727 |
|
|
|
|
|
|
|
|
|
|
|
|
CREDIT QUALITY |
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
2,853,100 |
|
|
$ |
2,810,640 |
|
|
$ |
2,706,951 |
|
|
$ |
2,692,334 |
|
|
$ |
2,559,722 |
|
Watch |
|
|
184 |
|
|
|
187 |
|
|
|
52,766 |
|
|
|
54,231 |
|
|
|
57,789 |
|
Substandard |
|
|
343 |
|
|
|
349 |
|
|
|
404 |
|
|
|
410 |
|
|
|
427 |
|
Doubtful |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total loans |
|
$ |
2,853,627 |
|
|
$ |
2,811,176 |
|
|
$ |
2,760,121 |
|
|
$ |
2,746,975 |
|
|
$ |
2,617,938 |
|
|
|
|
|
|
|
|
|
|
|
|
DEPOSITS |
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand |
|
$ |
551,688 |
|
|
$ |
568,029 |
|
|
$ |
605,666 |
|
|
$ |
693,563 |
|
|
$ |
712,722 |
|
Interest-bearing demand |
|
|
417,802 |
|
|
|
459,030 |
|
|
|
486,656 |
|
|
|
536,226 |
|
|
|
469,257 |
|
Savings and money market -
non-brokered |
|
|
1,249,309 |
|
|
|
1,302,468 |
|
|
|
1,202,756 |
|
|
|
1,125,202 |
|
|
|
1,170,214 |
|
Money market - brokered |
|
|
99,282 |
|
|
|
114,142 |
|
|
|
92,524 |
|
|
|
112,752 |
|
|
|
82,480 |
|
Total nonmaturity deposits |
|
|
2,318,081 |
|
|
|
2,443,669 |
|
|
|
2,387,602 |
|
|
|
2,467,743 |
|
|
|
2,434,673 |
|
Time - non-brokered |
|
|
299,683 |
|
|
|
276,097 |
|
|
|
269,102 |
|
|
|
252,725 |
|
|
|
212,574 |
|
Time - brokered |
|
|
137,765 |
|
|
|
116,559 |
|
|
|
141,689 |
|
|
|
159,940 |
|
|
|
175,600 |
|
Total time deposits |
|
|
437,448 |
|
|
|
392,656 |
|
|
|
410,791 |
|
|
|
412,665 |
|
|
|
388,174 |
|
Total deposits |
|
$ |
2,755,529 |
|
|
$ |
2,836,325 |
|
|
$ |
2,798,393 |
|
|
$ |
2,880,408 |
|
|
$ |
2,822,847 |
|
|
|
|
|
|
|
|
|
|
|
|
BORROWINGS |
|
|
|
|
|
|
|
|
|
|
Federal funds purchased and other short-term borrowings |
|
$ |
261,510 |
|
|
$ |
184,150 |
|
|
$ |
229,290 |
|
|
$ |
200,000 |
|
|
$ |
204,500 |
|
Subordinated notes, net |
|
|
79,566 |
|
|
|
79,500 |
|
|
|
79,435 |
|
|
|
79,369 |
|
|
|
79,303 |
|
Federal Home Loan Bank
advances |
|
|
315,000 |
|
|
|
280,000 |
|
|
|
220,000 |
|
|
|
155,000 |
|
|
|
125,000 |
|
Long-term debt |
|
|
48,986 |
|
|
|
50,236 |
|
|
|
51,486 |
|
|
|
51,486 |
|
|
|
51,486 |
|
Total borrowings |
|
$ |
705,062 |
|
|
$ |
593,886 |
|
|
$ |
580,211 |
|
|
$ |
485,855 |
|
|
$ |
460,289 |
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
Preferred stock |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Common stock |
|
|
3,000 |
|
|
|
3,000 |
|
|
|
3,000 |
|
|
|
3,000 |
|
|
|
3,000 |
|
Additional paid-in
capital |
|
|
33,487 |
|
|
|
32,642 |
|
|
|
31,797 |
|
|
|
32,021 |
|
|
|
31,152 |
|
Retained earnings |
|
|
271,025 |
|
|
|
269,301 |
|
|
|
267,620 |
|
|
|
267,562 |
|
|
|
262,776 |
|
Accumulated other
comprehensive loss |
|
|
(103,579 |
) |
|
|
(87,817 |
) |
|
|
(85,425 |
) |
|
|
(91,471 |
) |
|
|
(98,164 |
) |
Total Stockholders’ Equity |
|
$ |
203,933 |
|
|
$ |
217,126 |
|
|
$ |
216,992 |
|
|
$ |
211,112 |
|
|
$ |
198,764 |
|
WEST
BANCORPORATION, INC. AND SUBSIDIARY |
|
|
|
|
|
|
|
|
Financial Information
(unaudited) |
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
CONSOLIDATED STATEMENTS OF INCOME |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
Interest income: |
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
|
$ |
36,756 |
|
|
$ |
35,011 |
|
|
$ |
32,948 |
|
|
$ |
30,859 |
|
|
$ |
28,102 |
|
Securities: |
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
3,427 |
|
|
|
3,432 |
|
|
|
3,316 |
|
|
|
3,398 |
|
|
|
3,147 |
|
Tax-exempt |
|
|
880 |
|
|
|
883 |
|
|
|
885 |
|
|
|
887 |
|
|
|
890 |
|
Interest-bearing deposits |
|
|
29 |
|
|
|
25 |
|
|
|
30 |
|
|
|
24 |
|
|
|
30 |
|
Total interest income |
|
|
41,092 |
|
|
|
39,351 |
|
|
|
37,179 |
|
|
|
35,168 |
|
|
|
32,169 |
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
17,156 |
|
|
|
16,277 |
|
|
|
13,339 |
|
|
|
11,043 |
|
|
|
6,289 |
|
Federal funds purchased and other short-term borrowings |
|
|
3,165 |
|
|
|
2,264 |
|
|
|
2,079 |
|
|
|
952 |
|
|
|
655 |
|
Subordinated notes |
|
|
1,113 |
|
|
|
1,109 |
|
|
|
1,106 |
|
|
|
1,119 |
|
|
|
1,106 |
|
Federal Home Loan Bank advances |
|
|
2,329 |
|
|
|
1,621 |
|
|
|
1,262 |
|
|
|
755 |
|
|
|
649 |
|
Long-term debt |
|
|
695 |
|
|
|
739 |
|
|
|
698 |
|
|
|
630 |
|
|
|
466 |
|
Total interest expense |
|
|
24,458 |
|
|
|
22,010 |
|
|
|
18,484 |
|
|
|
14,499 |
|
|
|
9,165 |
|
Net interest income |
|
|
16,634 |
|
|
|
17,341 |
|
|
|
18,695 |
|
|
|
20,669 |
|
|
|
23,004 |
|
Credit loss expense
(benefit) |
|
|
200 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net interest income after credit loss expense
(benefit) |
|
|
16,434 |
|
|
|
17,341 |
|
|
|
18,695 |
|
|
|
20,669 |
|
|
|
23,004 |
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
|
463 |
|
|
|
458 |
|
|
|
462 |
|
|
|
476 |
|
|
|
553 |
|
Debit card usage fees |
|
|
495 |
|
|
|
511 |
|
|
|
486 |
|
|
|
492 |
|
|
|
498 |
|
Trust services |
|
|
831 |
|
|
|
749 |
|
|
|
706 |
|
|
|
678 |
|
|
|
780 |
|
Increase in cash value of bank-owned life insurance |
|
|
262 |
|
|
|
250 |
|
|
|
257 |
|
|
|
255 |
|
|
|
246 |
|
Gain from bank-owned life insurance |
|
|
— |
|
|
|
— |
|
|
|
691 |
|
|
|
— |
|
|
|
— |
|
Loan swap fees |
|
|
431 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
835 |
|
Other income |
|
|
340 |
|
|
|
421 |
|
|
|
355 |
|
|
|
364 |
|
|
|
364 |
|
Total noninterest income |
|
|
2,822 |
|
|
|
2,389 |
|
|
|
2,957 |
|
|
|
2,265 |
|
|
|
3,276 |
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
6,696 |
|
|
|
7,029 |
|
|
|
6,867 |
|
|
|
6,552 |
|
|
|
6,578 |
|
Occupancy and equipment |
|
|
1,359 |
|
|
|
1,322 |
|
|
|
1,327 |
|
|
|
1,270 |
|
|
|
1,315 |
|
Data processing |
|
|
703 |
|
|
|
729 |
|
|
|
635 |
|
|
|
673 |
|
|
|
644 |
|
Technology and software |
|
|
573 |
|
|
|
579 |
|
|
|
513 |
|
|
|
518 |
|
|
|
651 |
|
FDIC insurance |
|
|
439 |
|
|
|
420 |
|
|
|
416 |
|
|
|
243 |
|
|
|
127 |
|
Professional fees |
|
|
254 |
|
|
|
287 |
|
|
|
250 |
|
|
|
205 |
|
|
|
250 |
|
Director fees |
|
|
196 |
|
|
|
251 |
|
|
|
205 |
|
|
|
215 |
|
|
|
209 |
|
Other expenses |
|
|
1,685 |
|
|
|
1,857 |
|
|
|
1,858 |
|
|
|
1,989 |
|
|
|
1,684 |
|
Total noninterest expense |
|
|
11,905 |
|
|
|
12,474 |
|
|
|
12,071 |
|
|
|
11,665 |
|
|
|
11,458 |
|
Income before income taxes |
|
|
7,351 |
|
|
|
7,256 |
|
|
|
9,581 |
|
|
|
11,269 |
|
|
|
14,822 |
|
Income taxes |
|
|
1,445 |
|
|
|
1,394 |
|
|
|
1,737 |
|
|
|
2,323 |
|
|
|
3,220 |
|
Net income |
|
$ |
5,906 |
|
|
$ |
5,862 |
|
|
$ |
7,844 |
|
|
$ |
8,946 |
|
|
$ |
11,602 |
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common
share |
|
$ |
0.35 |
|
|
$ |
0.35 |
|
|
$ |
0.47 |
|
|
$ |
0.54 |
|
|
$ |
0.70 |
|
Diluted earnings per common
share |
|
$ |
0.35 |
|
|
$ |
0.35 |
|
|
$ |
0.47 |
|
|
$ |
0.53 |
|
|
$ |
0.69 |
|
WEST
BANCORPORATION, INC. AND SUBSIDIARY |
|
|
Financial Information
(unaudited) |
|
|
|
|
(in thousands) |
|
|
|
|
|
|
For the Nine Months Ended |
CONSOLIDATED STATEMENTS OF INCOME |
|
September 30, 2023 |
|
September 30, 2022 |
Interest income: |
|
|
|
|
Loans, including fees |
|
$ |
104,715 |
|
|
$ |
76,236 |
|
Securities: |
|
|
|
|
Taxable |
|
|
10,175 |
|
|
|
9,126 |
|
Tax-exempt |
|
|
2,648 |
|
|
|
2,640 |
|
Interest-bearing deposits |
|
|
84 |
|
|
|
179 |
|
Total interest income |
|
|
117,622 |
|
|
|
88,181 |
|
Interest expense: |
|
|
|
|
Deposits |
|
|
46,772 |
|
|
|
11,586 |
|
Federal funds purchased and other short-term borrowings |
|
|
7,508 |
|
|
|
812 |
|
Subordinated notes |
|
|
3,328 |
|
|
|
1,748 |
|
Federal Home Loan Bank advances |
|
|
5,212 |
|
|
|
1,914 |
|
Long-term debt |
|
|
2,132 |
|
|
|
1,050 |
|
Total interest expense |
|
|
64,952 |
|
|
|
17,110 |
|
Net interest income |
|
|
52,670 |
|
|
|
71,071 |
|
Credit loss expense
(benefit) |
|
|
200 |
|
|
|
(2,500 |
) |
Net interest income after credit loss expense
(benefit) |
|
|
52,470 |
|
|
|
73,571 |
|
Noninterest income: |
|
|
|
|
Service charges on deposit accounts |
|
|
1,383 |
|
|
|
1,718 |
|
Debit card usage fees |
|
|
1,492 |
|
|
|
1,477 |
|
Trust services |
|
|
2,286 |
|
|
|
2,031 |
|
Increase in cash value of bank-owned life insurance |
|
|
769 |
|
|
|
709 |
|
Loan swap fees |
|
|
431 |
|
|
|
835 |
|
Gain from bank-owned life insurance |
|
|
691 |
|
|
|
— |
|
Other income |
|
|
1,116 |
|
|
|
1,173 |
|
Total noninterest income |
|
|
8,168 |
|
|
|
7,943 |
|
Noninterest expense: |
|
|
|
|
Salaries and employee benefits |
|
|
20,592 |
|
|
|
19,286 |
|
Occupancy and equipment |
|
|
4,008 |
|
|
|
3,643 |
|
Data processing |
|
|
2,067 |
|
|
|
1,924 |
|
Technology and software |
|
|
1,665 |
|
|
|
1,619 |
|
FDIC insurance |
|
|
1,275 |
|
|
|
753 |
|
Professional fees |
|
|
791 |
|
|
|
669 |
|
Director fees |
|
|
652 |
|
|
|
599 |
|
Other expenses |
|
|
5,400 |
|
|
|
4,893 |
|
Total noninterest expense |
|
|
36,450 |
|
|
|
33,386 |
|
Income before income taxes |
|
|
24,188 |
|
|
|
48,128 |
|
Income taxes |
|
|
4,576 |
|
|
|
10,675 |
|
Net income |
|
$ |
19,612 |
|
|
$ |
37,453 |
|
|
|
|
|
|
Basic earnings per common
share |
|
$ |
1.17 |
|
|
$ |
2.25 |
|
Diluted earnings per common
share |
|
$ |
1.17 |
|
|
$ |
2.23 |
|
WEST
BANCORPORATION, INC. AND SUBSIDIARY |
|
|
|
|
|
|
Financial Information
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the Quarter Ended |
|
For the Nine Months Ended |
COMMON SHARE DATA |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
|
September 30, 2023 |
|
September 30, 2022 |
Earnings per common share (basic) |
|
$ |
0.35 |
|
|
$ |
0.35 |
|
|
$ |
0.47 |
|
|
$ |
0.54 |
|
|
$ |
0.70 |
|
|
$ |
1.17 |
|
|
$ |
2.25 |
|
Earnings per common share
(diluted) |
|
|
0.35 |
|
|
|
0.35 |
|
|
|
0.47 |
|
|
|
0.53 |
|
|
|
0.69 |
|
|
|
1.17 |
|
|
|
2.23 |
|
Dividends per common
share |
|
|
0.25 |
|
|
|
0.25 |
|
|
|
0.25 |
|
|
|
0.25 |
|
|
|
0.25 |
|
|
|
0.75 |
|
|
|
0.75 |
|
Book value per common
share(1) |
|
|
12.19 |
|
|
|
12.98 |
|
|
|
12.98 |
|
|
|
12.69 |
|
|
|
11.94 |
|
|
|
|
|
Closing stock price |
|
|
16.31 |
|
|
|
18.41 |
|
|
|
18.27 |
|
|
|
25.55 |
|
|
|
20.81 |
|
|
|
|
|
Market price/book
value(2) |
|
|
133.80 |
% |
|
|
141.83 |
% |
|
|
140.76 |
% |
|
|
201.34 |
% |
|
|
174.29 |
% |
|
|
|
|
Price earnings ratio(3) |
|
|
11.75 |
|
|
|
13.11 |
|
|
|
9.56 |
|
|
|
11.93 |
|
|
|
7.49 |
|
|
|
|
|
Annualized dividend
yield(4) |
|
|
6.13 |
% |
|
|
5.43 |
% |
|
|
5.47 |
% |
|
|
3.91 |
% |
|
|
4.81 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REGULATORY CAPITAL RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total risk-based capital
ratio |
|
|
11.96 |
% |
|
|
12.15 |
% |
|
|
12.17 |
% |
|
|
12.08 |
% |
|
|
12.34 |
% |
|
|
|
|
Tier 1 risk-based capital
ratio |
|
|
9.37 |
|
|
|
9.51 |
|
|
|
9.51 |
|
|
|
9.55 |
|
|
|
9.72 |
|
|
|
|
|
Tier 1 leverage capital
ratio |
|
|
8.58 |
|
|
|
8.60 |
|
|
|
8.60 |
|
|
|
8.81 |
|
|
|
8.85 |
|
|
|
|
|
Common equity tier 1
ratio |
|
|
8.80 |
|
|
|
8.92 |
|
|
|
8.92 |
|
|
|
8.96 |
|
|
|
9.11 |
|
|
|
|
|
West
Bank: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total risk-based capital
ratio |
|
|
12.89 |
% |
|
|
13.13 |
% |
|
|
13.16 |
% |
|
|
13.08 |
% |
|
|
13.38 |
% |
|
|
|
|
Tier 1 risk-based capital
ratio |
|
|
12.01 |
|
|
|
12.24 |
|
|
|
12.26 |
|
|
|
12.33 |
|
|
|
12.60 |
|
|
|
|
|
Tier 1 leverage capital
ratio |
|
|
11.00 |
|
|
|
11.08 |
|
|
|
11.10 |
|
|
|
11.37 |
|
|
|
11.47 |
|
|
|
|
|
Common equity tier 1
ratio |
|
|
12.01 |
|
|
|
12.24 |
|
|
|
12.26 |
|
|
|
12.33 |
|
|
|
12.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KEY PERFORMANCE RATIOS AND OTHER METRICS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets(5) |
|
|
0.64 |
% |
|
|
0.64 |
% |
|
|
0.88 |
% |
|
|
1.01 |
% |
|
|
1.32 |
% |
|
|
0.72 |
% |
|
|
1.43 |
% |
Return on average
equity(6) |
|
|
10.89 |
|
|
|
11.03 |
|
|
|
14.77 |
|
|
|
17.75 |
|
|
|
21.01 |
|
|
|
12.22 |
|
|
|
21.57 |
|
Net interest
margin(7)(13) |
|
|
1.91 |
|
|
|
2.02 |
|
|
|
2.23 |
|
|
|
2.49 |
|
|
|
2.78 |
|
|
|
2.05 |
|
|
|
2.85 |
|
Yield on interest-earning
assets(8)(13) |
|
|
4.70 |
|
|
|
4.57 |
|
|
|
4.41 |
|
|
|
4.21 |
|
|
|
3.87 |
|
|
|
4.56 |
|
|
|
3.53 |
|
Cost of interest-bearing
liabilities |
|
|
3.38 |
|
|
|
3.10 |
|
|
|
2.76 |
|
|
|
2.24 |
|
|
|
1.45 |
|
|
|
3.09 |
|
|
|
0.90 |
|
Efficiency ratio(9)(13) |
|
|
60.83 |
|
|
|
62.83 |
|
|
|
55.34 |
|
|
|
50.42 |
|
|
|
43.16 |
|
|
|
59.52 |
|
|
|
41.75 |
|
Nonperforming assets to total
assets(10) |
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
|
|
ACL ratio(11) |
|
|
0.99 |
|
|
|
1.00 |
|
|
|
1.01 |
|
|
|
0.93 |
|
|
|
0.97 |
|
|
|
|
|
Loans/total assets |
|
|
76.98 |
|
|
|
76.31 |
|
|
|
76.03 |
|
|
|
75.91 |
|
|
|
74.32 |
|
|
|
|
|
Loans/total deposits |
|
|
103.42 |
|
|
|
98.97 |
|
|
|
98.49 |
|
|
|
95.22 |
|
|
|
92.61 |
|
|
|
|
|
Tangible common equity
ratio(12) |
|
|
5.51 |
|
|
|
5.90 |
|
|
|
5.99 |
|
|
|
5.84 |
|
|
|
5.65 |
|
|
|
|
|
(1) Includes accumulated other comprehensive
income (loss).(2) Closing stock price divided by book value per
common share. (3) Closing stock price divided by annualized
earnings per common share (basic).(4) Annualized dividend divided
by period end closing stock price.(5) Annualized net income divided
by average assets. (6) Annualized net income divided by average
stockholders’ equity.(7) Annualized tax-equivalent net interest
income divided by average interest-earning assets.(8) Annualized
tax-equivalent interest income on interest-earning assets divided
by average interest-earning assets.(9) Noninterest expense
(excluding other real estate owned expense and write-down of
premises) divided by noninterest income (excluding net securities
gains/losses and gains/losses on disposition of premises and
equipment) plus tax-equivalent net interest income. (10) Total
nonperforming assets divided by total assets. (11) Allowance for
credit losses divided by total loans.(12) Common equity less
intangible assets (none held) divided by tangible assets. (13) A
non-GAAP measure.
NON-GAAP FINANCIAL MEASURES
This report contains references to financial
measures that are not defined in GAAP. Such non-GAAP financial
measures include the Company’s presentation of net interest income
and net interest margin on a fully taxable equivalent (FTE) basis
and the presentation of the efficiency ratio on an adjusted and FTE
basis, excluding certain income and expenses. Management believes
these non-GAAP financial measures provide useful information to
both management and investors to analyze and evaluate the Company’s
financial performance. These measures are considered standard
measures of comparison within the banking industry. Additionally,
management believes providing measures on a FTE basis enhances the
comparability of income arising from taxable and nontaxable
sources. Limitations associated with non-GAAP financial measures
include the risks that persons might disagree as to the
appropriateness of items included in these measures and that
different companies might calculate these measures differently.
These non-GAAP disclosures should not be considered an alternative
to the Company’s GAAP results. The following table reconciles the
non-GAAP financial measures of net interest income and net interest
margin on a fully taxable equivalent basis and efficiency ratio on
an adjusted and FTE basis.
(in thousands) |
|
As of and for the Quarter Ended |
|
For the Nine Months Ended |
|
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
|
September 30, 2023 |
|
September 30, 2022 |
Reconciliation of net interest income and net interest
margin on a FTE basis to GAAP: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (GAAP) |
|
$ |
16,634 |
|
|
$ |
17,341 |
|
|
$ |
18,695 |
|
|
$ |
20,669 |
|
|
$ |
23,004 |
|
|
$ |
52,670 |
|
|
$ |
71,071 |
|
Tax-equivalent adjustment
(1) |
|
|
113 |
|
|
|
122 |
|
|
|
161 |
|
|
|
197 |
|
|
|
270 |
|
|
|
396 |
|
|
|
925 |
|
Net interest income on a FTE basis (non-GAAP) |
|
|
16,747 |
|
|
|
17,463 |
|
|
|
18,856 |
|
|
|
20,866 |
|
|
|
23,274 |
|
|
|
53,066 |
|
|
|
71,996 |
|
Average interest-earning
assets |
|
|
3,478,053 |
|
|
|
3,461,313 |
|
|
|
3,435,988 |
|
|
|
3,328,941 |
|
|
|
3,322,522 |
|
|
|
3,458,606 |
|
|
|
3,371,915 |
|
Net interest margin on a FTE
basis (non-GAAP) |
|
|
1.91 |
% |
|
|
2.02 |
% |
|
|
2.23 |
% |
|
|
2.49 |
% |
|
|
2.78 |
% |
|
|
2.05 |
% |
|
|
2.85 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
efficiency ratio on an adjusted and FTE basis to
GAAP: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income on a FTE
basis (non-GAAP) |
|
$ |
16,747 |
|
|
$ |
17,463 |
|
|
$ |
18,856 |
|
|
$ |
20,866 |
|
|
$ |
23,274 |
|
|
$ |
53,066 |
|
|
$ |
71,996 |
|
Noninterest income |
|
|
2,822 |
|
|
|
2,389 |
|
|
|
2,957 |
|
|
|
2,265 |
|
|
|
3,276 |
|
|
|
8,168 |
|
|
|
7,943 |
|
Adjustment for losses on disposal of premises and equipment,
net |
|
|
3 |
|
|
|
2 |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
5 |
|
|
|
27 |
|
Adjusted income |
|
|
19,572 |
|
|
|
19,854 |
|
|
|
21,813 |
|
|
|
23,133 |
|
|
|
26,550 |
|
|
|
61,239 |
|
|
|
79,966 |
|
Noninterest expense |
|
|
11,905 |
|
|
|
12,474 |
|
|
|
12,071 |
|
|
|
11,665 |
|
|
|
11,458 |
|
|
|
36,450 |
|
|
|
33,386 |
|
Efficiency ratio on an
adjusted and FTE basis (non-GAAP) (2) |
|
|
60.83 |
% |
|
|
62.83 |
% |
|
|
55.34 |
% |
|
|
50.42 |
% |
|
|
43.16 |
% |
|
|
59.52 |
% |
|
|
41.75 |
% |
(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. A
lower ratio is more desirable.
For more information contact:Jane Funk,
Executive Vice President, Treasurer and Chief Financial Officer
(515) 222-5766
West Bancorporation (NASDAQ:WTBA)
過去 株価チャート
から 4 2024 まで 5 2024
West Bancorporation (NASDAQ:WTBA)
過去 株価チャート
から 5 2023 まで 5 2024