Unassociated Document
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Date
of Report (Date of Earliest Event Reported):
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May
6, 2008
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West
Bancorporation, Inc.
(Exact
name of registrant as specified in its charter)
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Iowa
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0-49677
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42-1230603
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(State
or other jurisdiction
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(Commission
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(I.R.S.
Employer
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of
incorporation)
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File
Number)
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Identification
No.)
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1601
22nd Street, West Des Moines, Iowa
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50266
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(Address
of principal executive offices)
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(Zip
Code)
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Registrant’s
telephone number, including area code:
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515-222-2300
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Not
Applicable
______________________________________________
Former
name or former address, if changed since last report
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
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Written
communications pursuant to Rule 425 under the Securities Act (17
CFR
230.425)
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR
240.14d-2(b))
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o
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR
240.13e-4(c))
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Item
2.02 Results of Operations and Financial Condition.
On
May 6,
2008, West Bancorporation, Inc. issued a press release updating its April 17,
2008, press release announcing earnings for the first quarter ended March 31,
2008. The May 6, 2008, press release reduced the announced earnings from
$4,468,000 to $1,374,000 due to an increase in the allowance for loan losses
determined by events after April 17, 2008.
Item
2.06 Material Impairments.
On
April
25, 2008, Iowa’s largest homebuilder and developer laid off its entire staff and
suspended business. West Bank, the Company’s wholly-owned bank subsidiary, does
not have any loans to the developer. However, West Bank does have approximately
$22 million in loans to closely related entities and individuals. Approximately
$18 million of the loans are secured by first real estate mortgages, limited
guarantees from parties related to the developer, and limited guarantees from
parties not related to the developer. Approximately $4 million of the loans
are
unsecured. The loans are not in default, and West Bank is working on
arrangements to obtain further security. Nevertheless, as a result of the
developer’s decision to cease operations, West Bank determined on May 5, 2008,
to increase the allowance for loan losses by $5 million. The charge will be
taken as of March 31, 2008, as required by generally accepted accounting
principles. West Bank cannot now estimate the amount of the impairment charge,
if any, that will result in future cash expenditures.
On
April
17, 2008, the Company issued a press release concerning its first quarter 2008
financial results. The subsequent adverse events described above will negatively
affect the announced results. After the $5 million increase in the provision
for
loan losses, net income for the 2008 first quarter was $1,374,000 or $0.08
per
share, compared to $4,444,000 or $0.25 per share for the first quarter of 2007.
The return on average equity and return on average assets were 4.54 and 0.42
percent, respectively, compared to 15.86 and 1.38 percent, respectively, for
the
first quarter of 2007. The allowance for loan losses was 1.42 percent of total
loans as of March 31, 2008, compared to 0.91 percent at the end of 2007 and
0.92
percent as of March 31, 2007. Additional details will be included in the
Company’s next quarterly report on Form 10-Q, which will be filed on or before
May 12, 2008.
A
copy of
the press release relating to the foregoing is attached hereto as Exhibit 99.1.
Item
9.01 Financial Statements and Exhibits.
Exhibit
99.1: Press Release of West Bancorporation, Inc. dated May 6, 2008.
The
information contained in this report may contain forward-looking statements
about the Company’s growth and acquisition strategies, new products and
services, and future financial performance, including earnings and dividends
per
share, return on average assets, return on average equity, efficiency ratio,
and
capital ratio. Certain statements in this report constitute “forward-looking
statements” within the meaning of the Private Securities Litigation Reform Act
of 1995, including statements preceded by, followed by or that include the
words
“believes,” “expects,” “should,” or “anticipates,” or references to estimates or
similar expressions. Such forward-looking statements are based upon certain
underlying assumptions, risks and uncertainties. Because of the possibility
of
change in the underlying assumptions, actual results could differ materially
from these forward-looking statements. Risks and uncertainties that may affect
future results include: interest rate risk; competitive pressures; pricing
pressures on loans and deposits; changes in credit and other risks posed by
the
Company’s loan and investment portfolios, including declines in commercial or
residential real estate values or changes in the allowance for loan losses
dictated by new market conditions or regulatory requirements; actions of bank
and non-bank competitors; changes in local and national economic conditions;
changes in regulatory requirements, including actions of the Securities and
Exchange Commission and/or the Federal Reserve Board; and customers’ acceptance
of the Company’s products and services. The Company undertakes no obligation to
revise or update such forward-looking statements to reflect current events
or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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West
Bancorporation, Inc.
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May
6, 2008
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By:
Douglas R. Gulling
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Name:
Douglas R. Gulling
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Title:
Executive Vice President and Chief Financial
Officer
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Exhibit
Index
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Exhibit
No.
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Description
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99.1
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Press
Release of West Bancorporation, Inc. dated May 6,
2008
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