WEST DES MOINES, Iowa, April 25, 2024 (GLOBE NEWSWIRE) -- West Bancorporation, Inc. (NASDAQ:WTBA, the "Company")), parent company of West Bank, today reported first quarter 2024 net income of $5.8 million, or $0.35 per diluted common share, compared to fourth quarter 2023 net income of $4.5 million, or $0.27 per diluted common share, and first quarter 2023 net income of $7.8 million, or $0.47 per diluted common share. On April 24, 2024, the Company's Board of Directors declared a regular quarterly dividend of $0.25 per common share. The dividend is payable on May 22, 2024, to stockholders of record on May 8, 2024. David Nelson, President and Chief Executive Officer of the Company, commented, "We have completed our move to our new headquarters building in West Des Moines. After being in the same leased space for over 50 years, our new building is an opportunity to consolidate our corporate operations under one roof, provide space for future growth and enhance business development opportunities. This construction project was years in the making and is a commitment to honor our 131 year history and support the future of our community." David Nelson added, "Like the rest of our industry, our Company continues to experience margin challenges in 2024. High short-term rates, an ongoing inverted yield curve and aggressive deposit competition continues to have a significant impact on our cost of funds and net interest margin. We have a clear understanding of our path forward to more normalized margins and earnings." First Quarter 2024 Financial Highlights   Quarter EndedMarch 31, 2024 Net income (in thousands) $5,809  Return on average equity 10.63 % Return on average assets 0.61 % Efficiency ratio (a non-GAAP measure) 62.04 % Nonperforming assets to total assets 0.01 %       First Quarter 2024 Compared to Fourth Quarter 2023 Overview Loans increased $52.6 million in the first quarter of 2024, or 7.2 percent annualized. The increase is primarily due to the funding of previously committed construction loans. No credit loss expense was recorded in the first quarter of 2024, compared to a credit loss expense of $500 thousand recorded in the fourth quarter of 2023. The $500 thousand credit loss expense recorded in the fourth quarter of 2023 was due to growth in loans and unfunded commitments. The allowance for credit losses to total loans was 0.95 percent at March 31, 2024, compared to 0.97 percent at December 31, 2023. Nonaccrual loans at March 31, 2024 consisted of one loan with a balance of $289 thousand, compared to one loan with a balance of $296 thousand at December 31, 2023. Deposits increased $91.3 million, or 3.1 percent, in the first quarter of 2024. Brokered deposits totaled $396.4 million at March 31, 2024, compared to $305.4 million at December 31, 2023, an increase of $91.0 million. Excluding brokered deposits, deposits increased $0.3 million during the first quarter of 2024. As of March 31, 2024, estimated uninsured deposits, which exclude deposits in the IntraFi® reciprocal network, brokered deposits and public funds protected by state programs, accounted for approximately 27.2 percent of total deposits. Borrowed funds increased to $639.7 million at March 31, 2024, compared to $592.6 million at December 31, 2023. The increase was primarily attributable to an increase of $48.2 million in federal funds purchased and other short-term borrowings. The efficiency ratio (a non-GAAP measure) was 62.04 percent for the first quarter of 2024, compared to 64.66 percent for the fourth quarter of 2023. The decrease in the efficiency ratio was primarily due to the increase in net interest income. Net interest margin, on a fully tax-equivalent basis (a non-GAAP measure), was 1.88 percent for the first quarter of 2024, compared to 1.87 percent for the fourth quarter of 2023. Net interest income for the first quarter of 2024 was $16.8 million, compared to $16.4 million for the fourth quarter of 2023. The tangible common equity ratio was 5.65 percent at March 31, 2024, compared to 5.88 percent at December 31, 2023. The decrease was attributable to the increase in accumulated other comprehensive loss, which was primarily driven by the effect of increasing long-term interest rates in the first quarter on the unrealized market value adjustment of our available for sale investment portfolio. While accumulated other comprehensive losses reduce tangible common equity, they have no impact on regulatory capital. First Quarter 2024 Compared to First Quarter 2023 Overview Loans increased $223.9 million at March 31, 2024, or 8.1 percent, compared to March 31, 2023. Deposits increased $266.6 million at March 31, 2024, compared to March 31, 2023. Included in deposits were brokered deposits totaling $396.4 million at March 31, 2024, compared to $234.2 million at March 31, 2023. Excluding brokered deposits, deposits increased $104.4 million, or 4.1 percent, as of March 31, 2024 compared to March 31, 2023. Borrowed funds increased to $639.7 million at March 31, 2024, compared to $580.2 million at March 31, 2023. The increase included increases of $75.0 million in FHLB one-month rolling advances hedged with long-term interest rate swaps, and $20.0 million in FHLB long-term advances, partially offset by a decrease of $30.5 million in federal funds purchased and other short-term borrowings. The efficiency ratio (a non-GAAP measure) was 62.04 percent for the first quarter of 2024, compared to 55.34 percent for the first quarter of 2023. The increase in the efficiency ratio in the first quarter of 2024 compared to the first quarter of 2023 was primarily due to the decreases in net interest income and noninterest income. Net interest margin, on a fully tax-equivalent basis (a non-GAAP measure), was 1.88 percent for the first quarter of 2024, compared to 2.23 percent for the first quarter of 2023. Net interest income for the first quarter of 2024 was $16.8 million, compared to $18.7 million for the first quarter of 2023. Through 2023 and the first quarter of 2024, the rising cost of deposits and borrowed funds and the change in mix of funding 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 25, 2024. The telephone number for the conference call is 800-715-9871. The conference ID for the conference call is 8178676. A recording of the call will be available until May 9, 2024, by dialing 800-770-2030. 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 changes in interest rates; 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 credit losses dictated by new market conditions, accounting standards or regulatory requirements; the concentration of large deposits from certain clients who have balances above current FDIC insurance limits; changes in local, national and international economic conditions, including high rates of inflation and possible recession; the effects of recent developments and events in the financial services industry, including the large-scale deposit withdrawals over a short period of time that resulted in recent bank failures; changes in legal and regulatory requirements, limitations and costs including in response to the recent bank failures; changes in customers' acceptance of the Company's products and services; the occurrence of fraudulent activity, breaches or failures of our or our third-party partners' information security controls or cyber-security related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools; 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 ongoing Israeli-Palestinian conflict and the Russian invasion of Ukraine, widespread disease or pandemics, or other adverse external events; risks related to climate change and the negative impact it may have on our customers and their businesses; changes to U.S. tax laws, regulations and guidance; potential changes in federal policy and at regulatory agencies as a result of the upcoming 2024 presidential election; talent and labor shortages; the 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. For more information contact:Jane Funk, Executive Vice President, Treasurer and Chief Financial Officer (515) 222-5766 WEST BANCORPORATION, INC. AND SUBSIDIARY             Financial Information (unaudited)                     (in thousands)                         As of CONDENSED BALANCE SHEETS   March 31, 2024   December 31, 2023   September 30, 2023   June 30, 2023   March 31, 2023 Assets                     Cash and due from banks   $ 27,071     $ 33,245     $ 18,819     $ 29,776     $ 21,579   Interest-bearing deposits     120,946       32,112       1,802       1,968       901   Securities available for sale, at fair value     605,735       623,919       609,365       645,091       665,358   Federal Home Loan Bank stock, at cost     26,181       22,957       26,691       22,488       22,226   Loans     2,980,133       2,927,535       2,849,777       2,807,075       2,756,185   Allowance for credit losses     (28,373 )     (28,342 )     (28,147 )     (27,938 )     (27,941 ) Loans, net     2,951,760       2,899,193       2,821,630       2,779,137       2,728,244   Premises and equipment, net     95,880       86,399       75,675       66,683       59,565   Bank-owned life insurance     44,138       43,864       43,589       43,328       44,830   Other assets     90,981       84,069       104,329       90,084       82,240   Total assets   $ 3,962,692     $ 3,825,758     $ 3,701,900     $ 3,678,555     $ 3,624,943                         Liabilities and Stockholders' Equity                     Deposits   $ 3,065,030     $ 2,973,779     $ 2,755,529     $ 2,836,325     $ 2,798,393   Federal funds purchased and other short-term borrowings     198,500       150,270       261,510       184,150       229,290   Other borrowings     441,183       442,367       443,552       409,736       350,921   Other liabilities     34,223       34,299       37,376       31,218       29,347   Stockholders' equity     223,756       225,043       203,933       217,126       216,992   Total liabilities and stockholders' equity   $ 3,962,692     $ 3,825,758     $ 3,701,900     $ 3,678,555     $ 3,624,943                             For the Quarter Ended AVERAGE BALANCES   March 31, 2024   December 31, 2023   September 30, 2023   June 30, 2023   March 31, 2023 Assets   $ 3,812,199     $ 3,706,497     $ 3,679,541     $ 3,645,651     $ 3,617,458   Loans     2,949,672       2,857,594       2,813,213       2,783,463       2,745,381   Deposits     2,931,222       2,878,676       2,764,184       2,854,945       2,846,926   Stockholders' equity     219,835       201,920       215,230       213,177       215,391                                             WEST BANCORPORATION, INC. AND SUBSIDIARY             Financial Information (unaudited)                     (in thousands)                         As of LOANS   March 31, 2024   December 31, 2023   September 30, 2023   June 30, 2023   March 31, 2023 Commercial   $ 544,293     $ 531,594     $ 529,293     $ 535,085     $ 520,894   Real estate:                     Construction, land and land development     465,247       413,477       399,253       351,461       336,739   1-4 family residential first mortgages     108,065       106,688       89,713       80,998       75,223   Home equity     14,020       14,618       12,429       12,625       9,726   Commercial     1,839,580       1,854,510       1,812,816       1,820,718       1,810,158   Consumer and other     12,844       10,930       10,123       10,289       7,381         2,984,049       2,931,817       2,853,627       2,811,176       2,760,121   Net unamortized fees and costs     (3,916 )     (4,282 )     (3,850 )     (4,101 )     (3,936 ) Total loans   $ 2,980,133     $ 2,927,535     $ 2,849,777     $ 2,807,075     $ 2,756,185   Less allowance for credit losses     (28,373 )     (28,342 )     (28,147 )     (27,938 )     (27,941 ) Net loans   $ 2,951,760     $ 2,899,193     $ 2,821,630     $ 2,779,137     $ 2,728,244                         CREDIT QUALITY                     Pass   $ 2,983,618     $ 2,931,377     $ 2,853,100     $ 2,810,640     $ 2,706,951   Watch     142       144       184       187       52,766   Substandard     289       296