West Bancorporation, Inc. Declares Quarterly Dividend; Net Income Available To Common Shareholders For First Nine Months Of 2012 Improves 32 Percent

WEST DES MOINES, Iowa, Oct. 26, 2012

For the first nine months of 2012, net income available to common shareholders was $12.11 million or $0.69 per diluted common share.  Net income available to common shareholders for the first nine months of 2011 was $9.15 million or $0.53 per diluted common share.  The most significant difference from last year was the payment of preferred stock dividends and accretion of discount totaling $2.39 million.  The preferred stock was redeemed on June 29, 2011, so there were no such preferred stock dividends or accretion of discount in 2012 or the third quarter of 2011. 

For the third quarter of 2012, net income available to common shareholders was $3.75 million, or $0.22 per diluted common share, compared to $3.08 million, or $0.18 per diluted common share, for the third quarter of 2011.  Gains and fees from the sale of residential mortgages totaled $816,000 in the third quarter of 2012, more than double the amount earned in the same period in 2011.  The low interest rate environment continues to result in higher volumes of mortgage activity. The provision for loan losses was $300,000 for the third quarter of 2012 while there was no such provision in the same period last year.  Other real estate owned expense was $240,000 this quarter, significantly lower than the $1,650,000 of expense in the third quarter of 2011. 

In commenting on the Company's results, David Nelson, President and Chief Executive Officer of West Bancorporation, Inc. said, "We are proud of our results this year.  While the low interest rate environment puts pressure on our net interest margin, it has contributed to a favorable environment for our customers to purchase or refinance a home.  We are also pleased to continue the higher level of quarterly dividend payments.  Also, as previously announced, our Company was named a 'Small Cap All-Star' by the investment banking firm Sandler O'Neill and Partners during the third quarter.  This was a list of the 25 top performing publicly traded community banks and thrifts in the country according to the criteria set by Sandler.  It is an honor to receive that type of recognition by people who understand the banking industry." 

The Company filed its quarterly report on Form 10-Q with the Securities and Exchange Commission this morning.  Please refer to that document for a more in-depth discussion of our results.  The Form 10-Q document is available on the Investor Relations section of West Bank's website at www.westbankiowa.com.

The Company will discuss its third quarter 2012 results during a conference call scheduled for this afternoon, Friday, October 26, 2012, at 2:00 p.m. Central Time.  The telephone number for the conference call is 877-317-6789.  A recording of the call will be available until November 12, 2012, at 877-344-7529, pass code: 10008360. 

West Bancorporation, Inc. is headquartered in West Des Moines, Iowa.  Serving Iowans 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 consumers and small- to medium-sized businesses.  West Bank has eight full-service offices in the Des Moines metropolitan area, two full-service offices in Iowa City, and one full-service office in Coralville.