West Bancorporation, Inc. (Nasdaq: WTBA; the “Company”), parent
company of West Bank, today reported first quarter 2023 net income
of $7.8 million, or $0.47 per diluted common share, compared to
fourth quarter 2022 net income of $8.9 million, or $0.53 per
diluted common share, and first quarter 2022 net income of $13.2
million, or $0.78 per diluted common share. On April 26, 2023, the
Company’s Board of Directors declared a regular quarterly dividend
of $0.25 per common share. The dividend is payable on May 24, 2023,
to stockholders of record on May 10, 2023.
David Nelson, President and Chief Executive
Officer of the Company, commented, “The unprecedented size and pace
of the Federal Reserve short-term interest rate increases in 2022
and early 2023 and inverted yield curve have changed the dynamics
of our commercial based customers’ deposit pricing. Our deposit and
funding mix has changed as depositors react to significant
short-term rate competition and utilize accumulated cash for
business operations. The resulting increase in our cost of funds
has outpaced the repricing benefits in loans and investments,
leading to a decline in our net interest income and net interest
margin.”
David Nelson added, “Our credit quality
continues to be pristine and for the seventh consecutive quarter
end, we had no loans greater than 30 days past due. We remain
diligent in monitoring and managing our credit risk as we
anticipate an economic downturn ahead along with an uncertain and
volatile interest rate environment. Our capital position is strong
and we remain focused on delivering high quality services and
products through our successful relationship based business
model.”
First Quarter 2023 Financial
Highlights
|
|
Quarter Ended March 31, 2023 |
|
Net Income (in thousands) |
$ |
7,844 |
|
|
Return on Average Equity |
|
14.77 |
% |
|
Return on Average Assets |
|
0.88 |
% |
|
Efficiency ratio (a non-GAAP
measure) |
|
55.34 |
% |
|
Nonperforming assets to total
assets |
|
0.01 |
% |
First Quarter 2023 Compared to Fourth
Quarter 2022 Overview
- Loans increased $13.3 million in
the first quarter of 2023, or 2.0 percent annualized.
- No provision for credit losses was
recorded in either the first quarter of 2023 or the fourth quarter
of 2022.
- The allowance for credit losses to
total loans was 1.01 percent at March 31, 2023, compared to 0.93
percent at December 31, 2022. The increase in the allowance ratio
was due to the adoption of ASU 2016-13, which resulted in a $2.5
million increase to the allowance for credit losses. This adoption
also resulted in establishing an allowance for unfunded commitments
of $2.3 million which is included in other liabilities, a $3.6
million decrease to retained earnings and $1.2 million increase in
deferred tax assets.
- There were no loans greater than 30
days past due at March 31, 2023, which was the seventh consecutive
quarter in which no loans were greater than 30 days past due.
Nonaccrual loans at March 31, 2023, consisted of one loan with a
balance of $316 thousand.
- Deposits decreased $82.0 million in
the first quarter of 2023. Included in this decrease was a decrease
in brokered deposits of $38.5 million. Brokered deposits totaled
$234.2 million at March 31, 2023, compared to $272.7 million at
December 31, 2022.
- The efficiency ratio (a non-GAAP
measure) was 55.34 percent for the first quarter of 2023, compared
to 50.42 percent for the fourth quarter of 2022. The increase in
the efficiency ratio is primarily the result of the decline in tax
equivalent net interest income and an increase in compensation and
employee benefits.
- Net interest margin, on a fully
tax-equivalent basis (a non-GAAP measure), was 2.23 percent for the
first quarter of 2023, compared to 2.49 percent for the fourth
quarter of 2022. Net interest income for the first quarter of 2023
was $18.7 million, compared to $20.7 million for the fourth quarter
of 2022. The rising cost of deposits and borrowed funds and the
change in mix of liabilities has increased interest expense faster
than the increase in interest income from loan repricing and loan
originations.
- The tangible common equity ratio
was 5.99 percent at March 31, 2023, an increase of 15 basis points
compared to 5.84 percent at December 31, 2022, due to an increase
in the market value of the securities portfolio, which decreased
the accumulated other comprehensive loss.
First Quarter 2023 Compared to First
Quarter 2022 Overview
- Loans increased $270.8 million at
March 31, 2023, or 10.9 percent, compared to March 31, 2022.
- Deposits decreased $292.9 million
at March 31, 2023, compared to March 31, 2022. Included in deposits
were brokered deposits totaling $234.2 million at March 31, 2023,
compared to $116.5 million at March 31, 2022. 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 for excess
deposits accumulated over the past couple of years. During the
second quarter of 2022, a large corporate customer completed a
significant business transaction that was funded by the customer’s
deposits held at West Bank, accounting for a significant portion of
the decrease in deposits.
- Borrowed funds increased to $580.2
million at March 31, 2023, compared to $197.0 million at March 31,
2022. The increase included $58.9 million in subordinated notes
that were issued in June 2022, $95.0 million in FHLB Advances
associated with long-term interest rate swaps and $229.3 million in
federal funds purchased and other short-term borrowings.
- The efficiency ratio (a non-GAAP
measure) was 55.34 percent for the first quarter of 2023, compared
to 40.14 percent for the first quarter of 2022. Tax-equivalent net
interest income decreased in the first quarter of 2023 compared to
the first quarter of 2022 due to the increased cost of deposits and
borrowed funds. Additionally, salaries and employee benefits
increased due to wage increases that have been higher than recent
historical averages in response to market conditions and
competition in retaining and recruiting talent and increases in
full-time equivalent employees with growth in our commercial
banking team and information technology department. Occupancy and
equipment expense increased primarily due to the increase in
depreciation expense related to the new building in St. Cloud,
Minnesota which opened in March 2022 and scheduled increases in
rent expense on existing leases.
- Net interest margin, on a fully
tax-equivalent basis (a non-GAAP measure), was 2.23 percent for the
first quarter of 2023, compared to 2.85 percent for the first
quarter of 2022. Net interest income for the first quarter of 2023
was $18.7 million, compared to $23.8 million for the first quarter
of 2022. In 2022 and 2023, the rising cost of deposits and borrowed
funds and the change in mix of liabilities has 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,
April 27, 2023. The telephone number for the conference call is
844-200-6205. The access code for the conference call is 950386. A
recording of the call will be available until May 11, 2023, by
dialing 845-709-8569. The replay access code is 943070.
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 rate increases by the Federal Reserve;
fluctuations in the values of the securities held in our investment
portfolio, including as a result of rising interest rates, which
has resulted in unrealized losses in our portfolio; 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 loan 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 and may withdraw
deposits to diversify their exposure; changes in local, national
and international economic conditions, including rising rates of
inflation; 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 and
Signature Bank that resulted in failure of those institutions;
changes in legal and regulatory requirements, limitations and costs
including in response to the recent failures of Silicon Valley Bank
and Signature Bank; 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, including 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; developments and uncertainty related to the future use
and availability of some reference rates, such as the expected
discontinuation of the London Interbank Offered Rate and the
development of other alternative reference rates; 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 |
|
March 31, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
|
June 30, 2022 |
|
March 31, 2022 |
Assets |
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
21,579 |
|
|
$ |
24,896 |
|
|
$ |
58,342 |
|
|
$ |
26,174 |
|
|
$ |
21,896 |
|
Interest-bearing deposits |
|
|
901 |
|
|
|
1,643 |
|
|
|
1,049 |
|
|
|
766 |
|
|
|
122,359 |
|
Securities available for sale,
at fair value |
|
|
665,358 |
|
|
|
664,115 |
|
|
|
671,752 |
|
|
|
731,970 |
|
|
|
797,912 |
|
Federal Home Loan Bank stock,
at cost |
|
|
22,226 |
|
|
|
19,336 |
|
|
|
18,350 |
|
|
|
15,532 |
|
|
|
10,269 |
|
Loans |
|
|
2,756,185 |
|
|
|
2,742,836 |
|
|
|
2,614,145 |
|
|
|
2,573,129 |
|
|
|
2,485,366 |
|
Allowance for credit losses |
|
|
(27,941 |
) |
|
|
(25,473 |
) |
|
|
(25,418 |
) |
|
|
(25,434 |
) |
|
|
(27,623 |
) |
Loans, net |
|
|
2,728,244 |
|
|
|
2,717,363 |
|
|
|
2,588,727 |
|
|
|
2,547,695 |
|
|
|
2,457,743 |
|
Premises and equipment,
net |
|
|
59,565 |
|
|
|
53,124 |
|
|
|
44,592 |
|
|
|
41,807 |
|
|
|
40,898 |
|
Bank-owned life insurance |
|
|
44,830 |
|
|
|
44,573 |
|
|
|
44,318 |
|
|
|
44,072 |
|
|
|
43,836 |
|
Other assets |
|
|
82,240 |
|
|
|
88,168 |
|
|
|
90,387 |
|
|
|
66,775 |
|
|
|
52,156 |
|
Total assets |
|
$ |
3,624,943 |
|
|
$ |
3,613,218 |
|
|
$ |
3,517,517 |
|
|
$ |
3,474,791 |
|
|
$ |
3,547,069 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
$ |
2,798,393 |
|
|
$ |
2,880,408 |
|
|
$ |
2,822,847 |
|
|
$ |
2,842,451 |
|
|
$ |
3,091,252 |
|
Federal funds purchased and
other short-term borrowings |
|
|
229,290 |
|
|
|
200,000 |
|
|
|
204,500 |
|
|
|
133,000 |
|
|
|
— |
|
Other borrowings |
|
|
350,921 |
|
|
|
285,855 |
|
|
|
255,789 |
|
|
|
255,751 |
|
|
|
196,954 |
|
Other liabilities |
|
|
29,347 |
|
|
|
35,843 |
|
|
|
35,617 |
|
|
|
27,400 |
|
|
|
22,383 |
|
Stockholders’ equity |
|
|
216,992 |
|
|
|
211,112 |
|
|
|
198,764 |
|
|
|
216,189 |
|
|
|
236,480 |
|
Total liabilities and stockholders’ equity |
|
$ |
3,624,943 |
|
|
$ |
3,613,218 |
|
|
$ |
3,517,517 |
|
|
$ |
3,474,791 |
|
|
$ |
3,547,069 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
AVERAGE BALANCES |
|
March 31, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
|
June 30, 2022 |
|
March 31, 2022 |
Assets |
|
$ |
3,617,458 |
|
|
$ |
3,511,717 |
|
|
$ |
3,475,894 |
|
|
$ |
3,503,686 |
|
|
$ |
3,544,564 |
|
Loans |
|
|
2,745,381 |
|
|
|
2,649,671 |
|
|
|
2,579,862 |
|
|
|
2,537,152 |
|
|
|
2,449,521 |
|
Deposits |
|
|
2,846,926 |
|
|
|
2,901,928 |
|
|
|
2,864,648 |
|
|
|
3,002,535 |
|
|
|
3,067,019 |
|
Stockholders’ equity |
|
|
215,391 |
|
|
|
199,947 |
|
|
|
219,065 |
|
|
|
222,731 |
|
|
|
255,130 |
|
WEST
BANCORPORATION, INC. AND SUBSIDIARY |
|
|
|
|
|
|
Financial Information
(unaudited) |
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
As of |
ANALYSIS OF LOAN PORTFOLIO |
|
March 31, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
|
June 30, 2022 |
|
March 31, 2022 |
Loan mix: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
$ |
520,894 |
|
|
$ |
519,196 |
|
|
$ |
526,336 |
|
|
$ |
475,704 |
|
|
$ |
466,874 |
|
Real estate: |
|
|
|
|
|
|
|
|
|
|
Construction, land and land development |
|
|
336,739 |
|
|
|
363,015 |
|
|
|
341,549 |
|
|
|
390,137 |
|
|
|
388,424 |
|
1-4 family residential first mortgages |
|
|
75,223 |
|
|
|
75,211 |
|
|
|
69,991 |
|
|
|
69,829 |
|
|
|
65,978 |
|
Home equity |
|
|
9,726 |
|
|
|
10,322 |
|
|
|
10,271 |
|
|
|
8,564 |
|
|
|
9,213 |
|
Commercial |
|
|
1,810,158 |
|
|
|
1,771,940 |
|
|
|
1,661,907 |
|
|
|
1,627,150 |
|
|
|
1,555,001 |
|
Consumer and other |
|
|
7,381 |
|
|
|
7,291 |
|
|
|
7,884 |
|
|
|
5,912 |
|
|
|
4,068 |
|
|
|
|
2,760,121 |
|
|
|
2,746,975 |
|
|
|
2,617,938 |
|
|
|
2,577,296 |
|
|
|
2,489,558 |
|
Net unamortized fees and costs |
|
|
(3,936 |
) |
|
|
(4,139 |
) |
|
|
(3,793 |
) |
|
|
(4,167 |
) |
|
|
(4,192 |
) |
Total loans |
|
$ |
2,756,185 |
|
|
$ |
2,742,836 |
|
|
$ |
2,614,145 |
|
|
$ |
2,573,129 |
|
|
$ |
2,485,366 |
|
Less allowance for credit losses |
|
|
(27,941 |
) |
|
|
(25,473 |
) |
|
|
(25,418 |
) |
|
|
(25,434 |
) |
|
|
(27,623 |
) |
Net
loans |
|
$ |
2,728,244 |
|
|
$ |
2,717,363 |
|
|
$ |
2,588,727 |
|
|
$ |
2,547,695 |
|
|
$ |
2,457,743 |
|
|
|
|
|
|
|
|
|
|
|
|
ANALYSIS OF DEPOSITS |
|
|
|
|
|
|
|
|
|
|
Deposit mix: |
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand |
|
$ |
605,666 |
|
|
$ |
693,563 |
|
|
$ |
712,722 |
|
|
$ |
690,335 |
|
|
$ |
710,697 |
|
Interest-bearing demand |
|
|
486,656 |
|
|
|
536,226 |
|
|
|
469,257 |
|
|
|
472,919 |
|
|
|
554,235 |
|
Savings and money market |
|
|
1,295,280 |
|
|
|
1,237,954 |
|
|
|
1,252,694 |
|
|
|
1,360,020 |
|
|
|
1,632,690 |
|
Time |
|
|
410,791 |
|
|
|
412,665 |
|
|
|
388,174 |
|
|
|
319,177 |
|
|
|
193,630 |
|
Total
deposits |
|
$ |
2,798,393 |
|
|
$ |
2,880,408 |
|
|
$ |
2,822,847 |
|
|
$ |
2,842,451 |
|
|
$ |
3,091,252 |
|
|
|
|
|
|
|
|
|
|
|
|
ANALYSIS OF BORROWINGS |
|
|
|
|
|
|
|
|
|
|
Borrowings mix: |
|
|
|
|
|
|
|
|
|
|
Federal funds purchased and other short-term borrowings |
|
$ |
229,290 |
|
|
$ |
200,000 |
|
|
$ |
204,500 |
|
|
$ |
133,000 |
|
|
$ |
— |
|
Subordinated notes, net |
|
|
79,435 |
|
|
|
79,369 |
|
|
|
79,303 |
|
|
|
79,265 |
|
|
|
20,468 |
|
Federal Home Loan Bank advances |
|
|
220,000 |
|
|
|
155,000 |
|
|
|
125,000 |
|
|
|
125,000 |
|
|
|
125,000 |
|
Long-term debt |
|
|
51,486 |
|
|
|
51,486 |
|
|
|
51,486 |
|
|
|
51,486 |
|
|
|
51,486 |
|
Total
borrowings |
|
$ |
580,211 |
|
|
$ |
485,855 |
|
|
$ |
460,289 |
|
|
$ |
388,751 |
|
|
$ |
196,954 |
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
Preferred stock |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Common stock |
|
|
3,000 |
|
|
|
3,000 |
|
|
|
3,000 |
|
|
|
3,000 |
|
|
|
3,000 |
|
Additional paid-in
capital |
|
|
31,797 |
|
|
|
32,021 |
|
|
|
31,152 |
|
|
|
30,283 |
|
|
|
29,421 |
|
Retained earnings |
|
|
267,620 |
|
|
|
267,562 |
|
|
|
262,776 |
|
|
|
255,334 |
|
|
|
246,827 |
|
Accumulated other
comprehensive loss |
|
|
(85,425 |
) |
|
|
(91,471 |
) |
|
|
(98,164 |
) |
|
|
(72,428 |
) |
|
|
(42,768 |
) |
Total Stockholders’
Equity |
|
$ |
216,992 |
|
|
$ |
211,112 |
|
|
$ |
198,764 |
|
|
$ |
216,189 |
|
|
$ |
236,480 |
|
WEST
BANCORPORATION, INC. AND SUBSIDIARY |
|
|
|
|
|
|
|
|
Financial Information
(unaudited) |
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
CONSOLIDATED STATEMENTS OF INCOME |
|
March 31, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
|
June 30, 2022 |
|
March 31, 2022 |
Interest income: |
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
|
$ |
32,948 |
|
$ |
30,859 |
|
$ |
28,102 |
|
$ |
24,848 |
|
|
$ |
23,286 |
|
Securities: |
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
3,316 |
|
|
3,398 |
|
|
3,147 |
|
|
3,090 |
|
|
|
2,889 |
|
Tax-exempt |
|
|
885 |
|
|
887 |
|
|
890 |
|
|
892 |
|
|
|
858 |
|
Interest-bearing deposits |
|
|
30 |
|
|
24 |
|
|
30 |
|
|
67 |
|
|
|
82 |
|
Total interest income |
|
|
37,179 |
|
|
35,168 |
|
|
32,169 |
|
|
28,897 |
|
|
|
27,115 |
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
13,339 |
|
|
11,043 |
|
|
6,289 |
|
|
3,146 |
|
|
|
2,151 |
|
Federal funds purchased and other short-term borrowings |
|
|
2,079 |
|
|
952 |
|
|
655 |
|
|
157 |
|
|
|
— |
|
Subordinated notes |
|
|
1,106 |
|
|
1,119 |
|
|
1,106 |
|
|
394 |
|
|
|
248 |
|
Federal Home Loan Bank advances |
|
|
1,262 |
|
|
755 |
|
|
649 |
|
|
635 |
|
|
|
630 |
|
Long-term debt |
|
|
698 |
|
|
630 |
|
|
466 |
|
|
326 |
|
|
|
258 |
|
Total interest expense |
|
|
18,484 |
|
|
14,499 |
|
|
9,165 |
|
|
4,658 |
|
|
|
3,287 |
|
Net interest income |
|
|
18,695 |
|
|
20,669 |
|
|
23,004 |
|
|
24,239 |
|
|
|
23,828 |
|
Credit loss expense
(benefit) |
|
|
— |
|
|
— |
|
|
— |
|
|
(1,750 |
) |
|
|
(750 |
) |
Net interest income after credit loss expense
(benefit) |
|
|
18,695 |
|
|
20,669 |
|
|
23,004 |
|
|
25,989 |
|
|
|
24,578 |
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
|
462 |
|
|
476 |
|
|
553 |
|
|
585 |
|
|
|
580 |
|
Debit card usage fees |
|
|
486 |
|
|
492 |
|
|
498 |
|
|
507 |
|
|
|
472 |
|
Trust services |
|
|
706 |
|
|
678 |
|
|
780 |
|
|
622 |
|
|
|
629 |
|
Increase in cash value of bank-owned life insurance |
|
|
257 |
|
|
255 |
|
|
246 |
|
|
236 |
|
|
|
227 |
|
Gain from bank-owned life insurance |
|
|
691 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
Loan swap fees |
|
|
— |
|
|
— |
|
|
835 |
|
|
— |
|
|
|
— |
|
Other income |
|
|
355 |
|
|
364 |
|
|
364 |
|
|
328 |
|
|
|
481 |
|
Total noninterest income |
|
|
2,957 |
|
|
2,265 |
|
|
3,276 |
|
|
2,278 |
|
|
|
2,389 |
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
6,867 |
|
|
6,552 |
|
|
6,578 |
|
|
6,410 |
|
|
|
6,298 |
|
Occupancy and equipment |
|
|
1,327 |
|
|
1,270 |
|
|
1,315 |
|
|
1,242 |
|
|
|
1,086 |
|
Data processing |
|
|
635 |
|
|
673 |
|
|
644 |
|
|
656 |
|
|
|
624 |
|
Technology and software |
|
|
513 |
|
|
518 |
|
|
651 |
|
|
492 |
|
|
|
476 |
|
FDIC insurance |
|
|
416 |
|
|
243 |
|
|
127 |
|
|
289 |
|
|
|
337 |
|
Professional fees |
|
|
250 |
|
|
205 |
|
|
250 |
|
|
202 |
|
|
|
217 |
|
Director fees |
|
|
205 |
|
|
215 |
|
|
209 |
|
|
222 |
|
|
|
168 |
|
Other expenses |
|
|
1,858 |
|
|
1,989 |
|
|
1,684 |
|
|
1,753 |
|
|
|
1,456 |
|
Total noninterest expense |
|
|
12,071 |
|
|
11,665 |
|
|
11,458 |
|
|
11,266 |
|
|
|
10,662 |
|
Income before income taxes |
|
|
9,581 |
|
|
11,269 |
|
|
14,822 |
|
|
17,001 |
|
|
|
16,305 |
|
Income taxes |
|
|
1,737 |
|
|
2,323 |
|
|
3,220 |
|
|
4,334 |
|
|
|
3,121 |
|
Net income |
|
$ |
7,844 |
|
$ |
8,946 |
|
$ |
11,602 |
|
$ |
12,667 |
|
|
$ |
13,184 |
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common
share |
|
$ |
0.47 |
|
$ |
0.54 |
|
$ |
0.70 |
|
$ |
0.76 |
|
|
$ |
0.80 |
|
Diluted earnings per common
share |
|
$ |
0.47 |
|
$ |
0.53 |
|
$ |
0.69 |
|
$ |
0.75 |
|
|
$ |
0.78 |
|
WEST
BANCORPORATION, INC. AND SUBSIDIARY |
|
|
Financial Information
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the Quarter Ended |
COMMON SHARE DATA |
|
March 31, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
|
June 30, 2022 |
|
March 31, 2022 |
Earnings per common share (basic) |
|
$ |
0.47 |
|
|
$ |
0.54 |
|
|
$ |
0.70 |
|
|
$ |
0.76 |
|
|
$ |
0.80 |
|
Earnings per common share
(diluted) |
|
|
0.47 |
|
|
|
0.53 |
|
|
|
0.69 |
|
|
|
0.75 |
|
|
|
0.78 |
|
Dividends per common
share |
|
|
0.25 |
|
|
|
0.25 |
|
|
|
0.25 |
|
|
|
0.25 |
|
|
|
0.25 |
|
Book value per common
share(1) |
|
|
12.98 |
|
|
|
12.69 |
|
|
|
11.94 |
|
|
|
12.99 |
|
|
|
14.22 |
|
Closing stock price |
|
|
18.27 |
|
|
|
25.55 |
|
|
|
20.81 |
|
|
|
24.34 |
|
|
|
27.21 |
|
Market price/book
value(2) |
|
|
140.76 |
% |
|
|
201.34 |
% |
|
|
174.29 |
% |
|
|
187.37 |
% |
|
|
191.35 |
% |
Price earnings ratio(3) |
|
|
9.56 |
|
|
|
11.93 |
|
|
|
7.49 |
|
|
|
7.98 |
|
|
|
8.39 |
|
Annualized dividend
yield(4) |
|
|
5.47 |
% |
|
|
3.91 |
% |
|
|
4.81 |
% |
|
|
4.11 |
% |
|
|
3.68 |
% |
|
|
|
|
|
|
|
|
|
|
|
REGULATORY CAPITAL RATIOS |
|
|
|
|
|
|
|
|
|
|
Consolidated: |
|
|
|
|
|
|
|
|
|
|
Total risk-based capital
ratio |
|
|
12.17 |
% |
|
|
12.08 |
% |
|
|
12.34 |
% |
|
|
12.53 |
% |
|
|
10.72 |
% |
Tier 1 risk-based capital
ratio |
|
|
9.51 |
|
|
|
9.55 |
|
|
|
9.72 |
|
|
|
9.81 |
|
|
|
9.81 |
|
Tier 1 leverage capital
ratio |
|
|
8.60 |
|
|
|
8.81 |
|
|
|
8.85 |
|
|
|
8.59 |
|
|
|
8.39 |
|
Common equity tier 1
ratio |
|
|
8.92 |
|
|
|
8.96 |
|
|
|
9.11 |
|
|
|
9.17 |
|
|
|
9.16 |
|
West
Bank: |
|
|
|
|
|
|
|
|
|
|
Total risk-based capital
ratio |
|
|
13.16 |
% |
|
|
13.08 |
% |
|
|
13.38 |
% |
|
|
13.62 |
% |
|
|
11.88 |
% |
Tier 1 risk-based capital
ratio |
|
|
12.26 |
|
|
|
12.33 |
|
|
|
12.60 |
|
|
|
12.81 |
|
|
|
10.98 |
|
Tier 1 leverage capital
ratio |
|
|
11.10 |
|
|
|
11.37 |
|
|
|
11.47 |
|
|
|
11.22 |
|
|
|
9.39 |
|
Common equity tier 1
ratio |
|
|
12.26 |
|
|
|
12.33 |
|
|
|
12.60 |
|
|
|
12.81 |
|
|
|
10.98 |
|
|
|
|
|
|
|
|
|
|
|
|
KEY PERFORMANCE RATIOS AND OTHER METRICS |
|
|
|
|
|
|
|
|
|
|
Return on average assets(5) |
|
|
0.88 |
% |
|
|
1.01 |
% |
|
|
1.32 |
% |
|
|
1.45 |
% |
|
|
1.51 |
% |
Return on average
equity(6) |
|
|
14.77 |
|
|
|
17.75 |
|
|
|
21.01 |
|
|
|
22.81 |
|
|
|
20.96 |
|
Net interest
margin(7)(13) |
|
|
2.23 |
|
|
|
2.49 |
|
|
|
2.78 |
|
|
|
2.93 |
|
|
|
2.85 |
|
Yield on interest-earning
assets(8)(13) |
|
|
4.41 |
|
|
|
4.21 |
|
|
|
3.87 |
|
|
|
3.49 |
|
|
|
3.24 |
|
Cost of interest-bearing
liabilities |
|
|
2.76 |
|
|
|
2.24 |
|
|
|
1.45 |
|
|
|
0.73 |
|
|
|
0.52 |
|
Efficiency ratio(9)(13) |
|
|
55.34 |
|
|
|
50.42 |
|
|
|
43.16 |
|
|
|
41.96 |
|
|
|
40.14 |
|
Non-performing assets to total
assets(10) |
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.25 |
|
ACL ratio(11) |
|
|
1.01 |
|
|
|
0.93 |
|
|
|
0.97 |
|
|
|
0.99 |
|
|
|
1.11 |
|
Loans/total assets |
|
|
76.03 |
|
|
|
75.91 |
|
|
|
74.32 |
|
|
|
74.05 |
|
|
|
70.07 |
|
Loans/total deposits |
|
|
98.49 |
|
|
|
95.22 |
|
|
|
92.61 |
|
|
|
90.53 |
|
|
|
80.40 |
|
Tangible common equity
ratio(12) |
|
|
5.99 |
|
|
|
5.84 |
|
|
|
5.65 |
|
|
|
6.22 |
|
|
|
6.67 |
|
(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 |
|
|
March 31, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
|
June 30, 2022 |
|
March 31, 2022 |
Reconciliation of net interest income and net interest
margin on a FTE basis to GAAP: |
|
|
|
|
|
|
|
|
|
|
Net interest income
(GAAP) |
|
$ |
18,695 |
|
|
$ |
20,669 |
|
|
$ |
23,004 |
|
|
$ |
24,239 |
|
|
$ |
23,828 |
|
Tax-equivalent adjustment
(1) |
|
|
161 |
|
|
|
197 |
|
|
|
270 |
|
|
|
326 |
|
|
|
329 |
|
Net interest income on a FTE basis (non-GAAP) |
|
|
18,856 |
|
|
|
20,866 |
|
|
|
23,274 |
|
|
|
24,565 |
|
|
|
24,157 |
|
Average interest-earning
assets |
|
|
3,435,988 |
|
|
|
3,328,941 |
|
|
|
3,322,522 |
|
|
|
3,362,313 |
|
|
|
3,432,114 |
|
Net interest margin on a FTE
basis (non-GAAP) |
|
|
2.23 |
% |
|
|
2.49 |
% |
|
|
2.78 |
% |
|
|
2.93 |
% |
|
|
2.85 |
% |
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
efficiency ratio on an adjusted and FTE basis to
GAAP: |
|
|
|
|
|
|
|
|
|
|
Net interest income on a FTE
basis (non-GAAP) |
|
$ |
18,856 |
|
|
$ |
20,866 |
|
|
$ |
23,274 |
|
|
$ |
24,565 |
|
|
$ |
24,157 |
|
Noninterest income |
|
|
2,957 |
|
|
|
2,265 |
|
|
|
3,276 |
|
|
|
2,278 |
|
|
|
2,389 |
|
Adjustment for losses on disposal of premises and equipment,
net |
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
9 |
|
|
|
18 |
|
Adjusted income |
|
|
21,813 |
|
|
|
23,133 |
|
|
|
26,550 |
|
|
|
26,852 |
|
|
|
26,564 |
|
Noninterest expense |
|
|
12,071 |
|
|
|
11,665 |
|
|
|
11,458 |
|
|
|
11,266 |
|
|
|
10,662 |
|
Efficiency ratio on an
adjusted and FTE basis (non-GAAP) (2) |
|
|
55.34 |
% |
|
|
50.42 |
% |
|
|
43.16 |
% |
|
|
41.96 |
% |
|
|
40.14 |
% |
(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)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
West Bancorporation (NASDAQ:WTBA)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024