West Bancorporation Inc., parent company of West Bank, reported fourth-quarter net income of $4.3 million, up from $3.9 million in the fourth quarter of 2012, the company reported today. Interest income increased 13 percent to $1.3 million from a year earlier as a result of higher earnings on loans and investments.
Net interest margin grew to 3.52 percent in the fourth quarter from 3.3 percent in the year-ago period. There was no provision for loan losses in the fourth quarter.
"Total nonperforming assets dropped $6.4 million to $10.6 million. This is the lowest level of nonperforming assets since the second quarter of 2008," West Bancorporation President and CEO David Nelson said in a release. For 2013, net income was $16.9 million or $1.02 per share. Net income for 2012 was $16 million or 92 cents per share. Net interest income improved by $4.5 million, or 11 percent, year-over-year.
Improvement in credit quality resulted in a negative provision for loan losses in 2013 of $850,000 compared with a provision for loan losses in 2012 of $625,000.
During 2013, total loans grew by $64 million, or 7 percent. This rate of growth is substantially in excess of the general economy's growth rate.
The West Bancorporation board also announced it will pay a quarterly dividend of 11 cents a share on Feb. 25 to shareholders of record on Feb. 5.