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West Bancorporation Declares Dividend

January 29, 2014

West Bancorporation, Inc. , parent company of West Bank , reported that its Board of Directors declared a quarterly dividend of $0.11 per share. In a release on Jan. 24 , the Company said that the dividend is payable on Feb. 25 , to shareholders of record on Feb. 5 . For the fourth quarter of 2013, net income was $4.3 million , or $0.27 per diluted common share, compared to $3.9 million , or $0.22 per diluted common share, for the fourth quarter of 2012. Net interest income for the fourth quarter of 2013 was $1.3 million (13 percent) higher than the fourth quarter of 2012. The improvement was due to a higher volume of earning assets (loans and investments) and expansion of the net interest margin to 3.52 percent for the quarter from 3.30 percent for the fourth quarter of last year. Gains and fees collected from the sale of residential mortgages totaled $326,000 in the fourth quarter of 2013, compared to $960,000 in the fourth quarter of 2012. This year, the volume of loans originated declined due to a slowdown in refinancing activity, so the mix of mortgage loan activity was more heavily weighted to home-purchase loans. This typically results in lower margins than loans attributable to refinancing. There was no provision for loan losses for the fourth quarter of 2013, while the provision in the same period last year was $325,000 . "Our credit quality has been improving for the past few years, but we made significant improvement during the fourth quarter," said David Nelson , President and Chief Executive Officer of West Bancorporation, Inc. "Total non performing assets dropped $6.4 million to $10.6 million . This is the lowest level of non performing assets since the second quarter of 2008. By any measure used, we believe West Bank's credit quality is excellent. Loans outstanding at the end of the year totaled $992.0 million . That represented loan growth of $33.0 million during the fourth quarter." For 2013, net income was $16.9 million or $1.02 per diluted common share. Net income for 2012 was $16.0 million or $0.92 per diluted common share. Net interest income improved by $4.5 million , or 11 percent year-over-year. Improvement in credit quality resulted in a negative provision for loan losses in 2013 of $850,000 compared to a provision for loan losses in 2012 of $625,000 . Noninterest income declined $2.5 million in 2013 due to lower gains from the sale of secondary market loans, and a gain from bank-owned life insurance in 2012 that was not repeated in 2013. During 2013, total loans grew by $64 million , or 7 percent. This rate of growth is substantially in excess of the general economy's growth rate. "We are pleased with our 2013 results, which allow for a continued higher level of quarterly dividend payments. We are looking forward to 2014," said Nelson. The Board also set the record date for the Annual Meeting of Shareholders as Feb. 20 . The meeting will be held April 24 . The Company intends to file its annual report on Form 10-K with the Securities and Exchange Commission on or around March 7 . Please refer to that document for a more in-depth discussion of our results. The Form 10-K document will be available on the Investor Relations section of West Bank's website at westbankstrong.com . ((Comments on this story may be sent to newsdesk@closeupmedia.com ))


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