Exhibit 99.1
Press Release
April 28, 2003
FOR IMMEDIATE RELEASE For more information contact:
Doug Gulling, Chief Financial Officer (515) 222-2309
WEST BANCORPORATION, INC. ANNOUNCES RESULTS FOR 1st QUARTER OF 2003
West Des Moines, IA - West Bancorporation, Inc. (WTBA), parent company of West
Des Moines State Bank (West Bank), reports net income for the first quarter of
2003 of $4,051,000, which was a 6.1% increase over the same period last year.
Earnings per share were $.25 this year compared to $.24 last year. Total capital
as a percentage of total assets was 10.2% as of March 31, 2003, indicating the
Company continues to be well capitalized.
For the first quarter of 2003, the return on average equity was 19.01%, the
return on average assets was 1.89% and the efficiency ratio was 30.57%. These
ratios continue to rank as some of the best in the country.
Net income exceeded last year primarily because of the increase in net interest
income and additional noninterest income.
Net interest income increased due to an increase in balances in investment
securities, federal funds sold and other short-term investments. The funds for
these investments came from an increase in deposits, primarily money market
deposits. It is believed that customers continue to view short-term bank
accounts as a safe haven from the stock market.
Noninterest income is higher than last year due to the purchase of bank owned
life insurance (BOLI), surcharge fees from non-bank customers using our
automated teller machines and gains from the sale of investment securities. The
Bank invested in BOLI during the first quarter of this year to help offset the
cost of employee benefits. Funds invested in BOLI grow based on an attractive
tax-free yield.
Loans as of March 31, 2003 totaled $483,747,000, up slightly from a year ago.
The composition of the loan portfolio is not significantly different than last
year. There has been improvement in credit quality as evidenced by a decline in
nonaccrual loans from $1,634,000 as of March 31, 2002 to $785,000 at March 31,
2003. In that same time frame, other real estate owned, which represents real
estate obtained through foreclosure, has declined from $952,000 to $488,000. The
allowance for loan losses as a percentage of total loans is .95 percent as of
March 31, 2003. This compares to .90 percent a year ago.
Stockholders' equity as of March 31, 2003 was $87,323,000 compared to
$80,068,000 on March 31, 2002, an increase of $7,255,000, which is after the
payout of $10,118,000 in dividends to shareholders over the past 12 months.
West Bancorporation, Inc. is headquartered in West Des Moines, Iowa and through
its subsidiary, West Bank, has been serving the greater metropolitan Des Moines
area for 110 years. West Bank focuses on lending and deposit services for
consumers and small to medium sized businesses and is a leader in Small Business
Administration (SBA) lending. The Bank has eight full-service offices and a
growing network of ATM's.
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WEST BANCORPORATION, INC. AND SUBSIDIARY, WEST DES MOINES STATE BANK
Financial Information
March 31,
CONSOLIDATED STATEMENTS OF CONDITION -------------------------------
(unaudited) 2003 2002
- --------------------------------------------------------------------------------
Assets
Cash and due from banks ...................... $ 25,834,054 $ 28,637,117
Short-term investments ....................... 102,595,635 105,229,250
Securities ................................... 226,465,450 194,356,380
Loans ........................................ 483,746,800 481,933,463
Allowance for loan losses ................ (4,615,248) (4,339,811)
-------------------------------
Loans, net ................................... 479,131,552 477,593,652
Other assets ................................. 19,000,709 8,567,882
-------------------------------
Total assets ............................. $ 853,027,400 $ 814,384,281
===============================
Liabilities and Stockholders' Equity
Deposits:
Noninterest-bearing ...................... $ 136,528,631 $ 144,721,596
Interest-bearing
Demand ............................... 36,327,561 30,817,408
Savings .............................. 285,084,907 245,834,714
Time ................................. 104,935,900 141,759,490
-------------------------------
Total deposits ............................... 562,876,999 563,133,208
Short-term borrowings ........................ 146,337,828 115,126,136
Long-term borrowings ......................... 51,600,000 51,600,000
Other liabilities ............................ 4,889,384 4,457,294
Stockholders'equity .......................... 87,323,189 80,067,643
-------------------------------
Total liabilities and stockholders' equity $ 853,027,400 $ 814,384,281
===============================
PER COMMON SHARE MARKET INFORMATION*
Net Income Dividends High Low
- ---------------------------------------------------------------------
2003
- --------------------
1st quarter ........ $ 0.25 $ 0.16 $17.54 $14.35
2002
- --------------------
1st quarter ........ $ 0.24 $ 0.15 $14.00 $11.50
2nd quarter ........ 0.25 0.15 18.00 13.15
3rd quarter ........ 0.26 0.16 16.50 14.38
4th quarter ........ 0.27 0.16 15.63 14.40
* The prices shown are the high and low sale prices for the Company's common
stock, which trades on the NASDAQ National Market, under the symbol WTBA.
The market quotations, reported by NASDAQ, do not include retail markup,
markdown or commissions.
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WEST BANCORPORATION, INC. AND SUBSIDIARY, WEST DES MOINES STATE BANK
Financial Information (continued)
Three months ended
March 31,
---------------------------
PERFORMANCE HIGHLIGHTS (unaudited) 2003 2002
- -----------------------------------------------------------------------------------
Return on average equity ............................ 19.01% 19.48%
Return on average assets ............................ 1.89% 1.88%
Net interest margin ................................. 3.79% 3.93%
Efficiency ratio .................................... 30.57% 30.30%
CONSOLIDATED STATEMENTS OF OPERATION (unaudited)
- ----------------------------------------------------------------------------------
Interest income
Loans ............................................... $ 7,701,836 $ 8,253,270
Securities .......................................... 2,232,279 2,273,966
Other ............................................... 439,493 502,671
--------------------------
Total interest income ........................... 10,373,608 11,029,907
--------------------------
Interest expense
Deposits ............................................ 1,610,018 2,377,010
Short-term borrowings ............................... 397,732 544,084
Long-term borrowings ................................ 708,040 687,754
--------------------------
Total interest expense .......................... 2,715,790 3,608,848
--------------------------
Net interest income ................................. 7,657,818 7,421,059
Provision for loan losses ........................... 200,000 230,000
--------------------------
Net interest income after provision for loan losses . 7,457,818 7,191,059
--------------------------
Noninterest income
Service charges on deposit accounts ................. 1,056,193 1,003,620
Trust services ...................................... 132,000 157,977
Net realized gains from sales of securities available
for sale .......................................... 99,740 --
Other income ........................................ 416,489 324,220
-------------------------
Total noninterest income ........................ 1,704,422 1,485,817
-------------------------
Noninterest expense
Salaries and employee benefits ...................... 1,719,277 1,584,484
Occupancy expense ................................... 370,249 318,534
Data processing expense ............................. 243,285 264,823
Other expense ....................................... 573,294 606,393
--------------------------
Total noninterest expense ....................... 2,906,105 2,774,234
--------------------------
Income before income taxes .......................... 6,256,135 5,902,642
Income taxes ........................................ 2,205,570 2,083,341
--------------------------
Net income .......................................... $ 4,050,565 $ 3,819,301
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