West Bancorporation reports earnings
West Bancorporation Inc., the parent company of West Des Moines State Bank, said its third-quarter net income rose 9.4 percent as recent acquisitions, including Hawkeye State Bank in Iowa City, began adding to profits.
Net income increased to $4.56 million, or 28 cents per share, from $4.17 million, or 26 cents, a year ago. Total assets rose 17.1 percent to $963.1 million from $822.3 million.
Under former investment banker Thomas Stanberry, who has been the company’s chairman and chief executive for two complete quarters, the amount of loans outstanding during the quarter jumped 20 percent to $580.1 million from $481.5 million a year ago, mostly because of the Hawkeye purchase. Total deposits rose $64 million to $635 million. Without Hawkeye, total deposits would have fallen by about $34.9 million because the bank said it wasn’t bidding as aggressively for certificates of deposit greater than $100,000.
The West Des Moines-based company said it issued $20 million in long-term debt on July 18 to finance the purchase of Hawkeye. It also said it had formed a new subsidiary, WB Capital Management Inc., which completed the company’s previously announced purchase of the assets of investment adviser VMF Capital LLC.
Shares of West Bancorp rose 35 cents to $18 the day after the earnings announcement. They have gained about 20 percent in the past year.