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West Bancorporation, Inc. (Nasdaq: WTBA; the “Company”), parent company of West Bank, today reported that third quarter 2019 net income was $7.5 million, or $0.46 per diluted common share, which is the highest quarterly net income ever recorded by the Company. This is compared to third quarter 2018 net income of $7.1 million, or $0.43 per diluted common share. For the first nine months of 2019, net income was $21.1 million, or $1.28 per diluted common share, compared to $21.3 million, or $1.30 per diluted common share, for the first nine months of 2018. On October 23, 2019, the Company’s Board of Directors declared a regular quarterly dividend of $0.21 per common share. The dividend is payable on November 20, 2019, to stockholders of record on November 6, 2019. Also, at its meeting, the Company’s Board of Directors appointed Patrick J. Donovan to the Company’s board. For more information about Mr. Donovan, refer to the Company’s 8-K.
In March 2019, the Company announced that, through its subsidiary, West Bank, it was initiating a growth strategy in three new Minnesota markets and has since opened full service branch offices in Owatonna, Mankato and St. Cloud, Minnesota. The financial results of 2019 have been impacted by compensation, professional fees and occupancy and equipment costs related to the Company’s new growth strategy, which totaled approximately $1.9 million on a pretax basis for the first nine months of 2019. We estimate the pretax benefit from loans and deposits in these markets to be approximately $0.5 million through September 30, 2019.
“We continue to execute on our strategic priorities and are pleased to report an all-time record quarter for net income,” commented Dave Nelson, President and Chief Executive Officer of the Company. “We have successfully opened three new full service branch offices in Minnesota and are encouraged by the new business activity in those new markets. We have assembled teams of experienced bankers that are building relationships with local business owners and business leaders. West Bank remains committed to our community focused business banking model with local leadership. We believe we are uniquely positioned to seize opportunities in all of our markets with the seasoned business banking teams we bring to the table. We are confident that this expansion sets us on a path for building shareholder value.”
Dave Nelson also commented, “In addition to the costs associated with our Minnesota expansion, we are experiencing pressure on our net interest margin due to the continued inversion of the U.S. Treasury yield curve and a highly competitive market for loans and deposits. Despite these challenges, we continue to benefit from our ability to manage credit quality and our disciplined approach to expense management. West Bank’s loan balances have increased by 14.7 percent as of September 30, 2019 compared to September 30, 2018.”
“In September, West Bank was named a “Top Workplace in Iowa” by the Des Moines Register for the sixth consecutive year,” said Dave Nelson. “This award is based solely on employee feedback. We look forward to sharing this culture with our new Minnesota communities as we believe it gives us a competitive advantage in attracting bankers and business relationships.”
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 our financial results. The Form 10-Q is available here.
For more information contact:
Doug Gulling, Executive Vice President, Treasurer and Chief Financial Officer (515) 222-2309