Exhibit 99.1
Press Release
April 19, 2004
FOR IMMEDIATE RELEASE
For more information contact:
Doug Gulling, Chief Financial Officer (515) 222-2309
WEST BANCORPORATION, INC. ANNOUNCES RESULTS FOR 1st QUARTER OF 2004
West Des Moines, IA - West Bancorporation, Inc. (WTBA), parent company of West
Bank and WB Capital Management Inc., d/b/a VMF Capital, reports net income for
the first quarter of 2004 of $4,262,000, which was a 5.2% increase over the same
period last year. Earnings per share were $.27 this year compared to $.25 last
year. Total capital as a percentage of total assets was 9.8% as of March 31,
2004.
For the first quarter of 2004, the return on average equity was 18.25% and the
return on average assets was 1.74%.
Net income exceeded last year primarily because of the increase in earning
assets as a result of the acquisition of the Iowa City offices which occurred in
July of 2003. The net interest margin for the first quarter of 2004 increased
slightly to 3.87% from 3.82% last year.
Noninterest income was higher than last year due to investment advisory fees of
$567,000 and increases in the cash value of bank owned life insurance (BOLI).
Investment advisory fees were earned by VMF Capital. The increase in the cash
value of BOLI was higher in 2004 because BOLI was first purchased in the middle
of the first quarter of 2003 and an additional amount was purchased in the third
quarter of 2003. In the first quarter of 2003 there were gains from the sale of
investment securities of $99,740, while there were no such gains in the first
quarter of 2004.
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Noninterest expense was 48% higher than a year ago. Generally, the increase is
due to approximately 40 more employees than a year ago, two additional banking
office locations and two VMF Capital locations that were not a part of the
Company last year at this time.
Loans as of March 31, 2004 totaled $601,810,000, compared to $483,747,000 a year
ago. Loans attributable to the Iowa City market totaled approximately
$60,000,000. Nonaccrual loans amounted to $2,400,000, up from $785,000 last
year and $1,668,000 at the end of 2003. The allowance for loan losses as a
percentage of total loans was .99 percent as of March 31, 2004. This compares to
..95 percent a year ago.
WB Capital Management Inc., the Company's investment advisory subsidiary (doing
business as VMF Capital) completed its second quarter of operation since its
acquisition on October 1, 2003. Assets under management have grown to
approximately $725 million as of March 31, 2004, up from $462 million at
December 31, 2003. For the first quarter of 2004, VMF Capital recorded a net
loss of $53,000, compared to a net loss of $82,000 in the fourth quarter of
2003. It is expected that the full year results for 2004 will be near breakeven.
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 and the Iowa City area since July of 2003. West Bank focuses
on lending and deposit services for consumers and small to medium sized
businesses. VMF Capital, with offices in Cedar Rapids and Clive, Iowa, provides
portfolio management services to individuals, retirement plans, corporations,
foundations and endowments.
The information contained in this Press Release 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 ratio. Certain statements in this news release constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such forward-looking information is 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: competitive pressures, pricing pressures on
loans and deposits, actions of bank and non-bank competitors, changes in local
and national economic conditions, changes in regulatory requirements, actions of
the Securities and Exchange Commission and/or the Federal Reserve Board, and
customer's acceptance of the Company's products and services. The Company
undertakes no obligation to revise or update such statements to reflect current
events or circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
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WEST BANCORPORATION, INC. AND SUBSIDIARY, WEST BANK
Financial Information
(unaudited)
<Table>
<Caption>
MARCH 31, MARCH 31,
CONSOLIDATED STATEMENTS OF CONDITION 2004 2003
- --------------------------------------------------------------------------------------------
ASSETS
Cash and due from banks $ 25,298,601 $ 25,834,054
Short-term investments 34,566,347 102,595,635
Securities 267,581,336 226,465,450
Loans 601,809,968 483,746,800
Allowance for loan losses (5,955,308) (4,615,248)
---------------------------------
Loans, net 595,854,660 479,131,552
Other assets 49,121,119 19,000,709
---------------------------------
TOTAL ASSETS $ 972,422,063 $ 853,027,400
=================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest-bearing $ 170,934,228 $ 136,528,631
Interest-bearing
Demand 41,301,246 36,327,561
Savings 324,953,455 285,084,907
Time 135,966,942 104,935,900
---------------------------------
Total deposits 673,155,871 562,876,999
Short-term borrowings 98,364,604 146,337,828
Long-term borrowings 102,664,168 51,600,000
Other liabilities 3,299,120 4,889,384
Stockholders' equity 94,938,300 87,323,189
---------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 972,422,063 $ 853,027,400
=================================
</Table>
<Table>
<Caption>
PER COMMON SHARE MARKET INFORMATION*
Net Income Dividends High Low
- --------------------------------------------------------------------------------------------
2004
1st quarter $ 0.27 $ 0.16 $ 18.00 $ 16.17
2003
1st quarter 0.25 0.16 17.54 14.35
2nd quarter 0.26 0.16 19.61 15.77
3rd quarter 0.28 0.16 18.82 16.56
4th quarter 0.28 0.16 18.54 17.05
</Table>
*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.
--more-
WEST BANCORPORATION, INC. AND SUBSIDIARY, WEST BANK
Financial Information (continued)
(unaudited)
<Table>
<Caption>
Three months ended
MARCH 31,
CONSOLIDATED STATEMENTS OF OPERATION 2004 2003
- -------------------------------------------------------------------------------------------------
INTEREST INCOME
Loans $ 8,747,150 $ 7,701,836
Securities 2,498,254 2,232,279
Other 187,747 439,493
---------------------------------
Total interest income 11,433,151 10,373,608
---------------------------------
INTEREST EXPENSE
Deposits 1,343,506 1,610,018
Short-term borrowings 220,632 397,732
Long-term borrowings 1,296,160 708,040
---------------------------------
Total interest expense 2,860,298 2,715,790
---------------------------------
NET INTEREST INCOME 8,572,853 7,657,818
Provision for loan losses 225,000 200,000
---------------------------------
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 8,347,853 7,457,818
---------------------------------
NONINTEREST INCOME
Service charges on deposit accounts 1,101,527 1,056,193
Trust services 126,000 132,000
Investment advisory fees 566,825 -
Increase in cash value of bank-owned life insurance 223,226 64,646
Net realized gains (losses) from sales of
securities held for sale - 99,740
Other income 418,548 351,843
---------------------------------
Total noninterest income 2,436,126 1,704,422
---------------------------------
NONINTEREST EXPENSE
Salaries and employee benefits 2,463,671 1,704,291
Occupancy 511,063 370,249
Data processing 337,011 243,285
Other expense 983,782 588,280
---------------------------------
Total noninterest expense 4,295,527 2,906,105
---------------------------------
Income before income taxes 6,488,452 6,256,135
Income taxes 2,226,485 2,205,570
---------------------------------
NET INCOME $ 4,261,967 $ 4,050,565
=================================
PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------------------------
Return on average equity 18.25% 19.01%
Return on average assets 1.74% 1.89%
Net interest margin 3.87% 3.82%
Efficiency ratio 39.66% 30.57%
</Table>