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(Mark One)
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x
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT of 1934
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For the fiscal year ended December 31, 2016
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or
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from __________ to __________
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WEST BANCORPORATION, INC.
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(Exact name of registrant as specified in its charter)
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IOWA
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42-1230603
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(State of incorporation or organization)
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(I.R.S. Employer Identification No.)
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1601 22
nd
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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Title of Class
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Name of Each Exchange on Which Registered
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Common Stock, No Par Value
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The Nasdaq Global Select Market
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Large accelerated filer
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o
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Accelerated filer
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x
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Non-accelerated filer
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o
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Smaller reporting company
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o
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FORM 10-K
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TABLE OF CONTENTS
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PART I
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ITEM 1.
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ITEM 1A.
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ITEM 1B.
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ITEM 2.
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ITEM 3.
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||
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ITEM 4.
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MINE SAFETY DISCLOSURES
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PART II
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ITEM 5.
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ITEM 6.
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ITEM 7.
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ITEM 7A.
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ITEM 8.
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ITEM 9.
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ITEM 9A.
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ITEM 9B.
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PART III
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ITEM 10.
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ITEM 11.
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ITEM 12.
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ITEM 13.
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ITEM 14.
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PRINCIPAL ACCOUNTANT FEES AND SERVICES
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PART IV
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ITEM 15.
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EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
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ITEM 16.
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l
|
Return on average assets:
|
1.27
|
%
|
l
|
Return on average equity:
|
14.35
|
%
|
l
|
Efficiency ratio:
|
46.03
|
%
|
l
|
Texas ratio:
|
0.56
|
%
|
•
|
West Bancorporation, Inc. received national recognition from investment bank and research firm Raymond James in the fourth annual Raymond James Community Bankers Cup. They identified America’s top 30 performing community banks with assets between $500 million and $10 billion. Raymond James ranked West Bancorporation, Inc. among the top 5 in the nation for 2015. The Raymond James Community Bankers Cup recognizes the top 10 percent of the 300 exchanged-traded community banks based on various profitability, operational efficiency, and balance sheet metrics. This is the third consecutive year we have made this list.
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•
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S&P Global Market Intelligence ranked West Bancorporation as the 33rd best-performing community bank in 2015 with assets between $1 billion and $10 billion. The rankings were based on various measures related to profitability, growth and asset quality.
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•
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West Bancorporation was ranked number 9 among the 166 publicly traded banks with assets between $1 billion and $5 billion in Bank Director Magazine's 2016 Bank Performance Scorecard. The rankings were based on five measures related to profitability, capitalization and asset quality. This is the fourth consecutive year we have made this list.
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•
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The Independent Community Bankers Association named West Bank to its annual listing of the most outstanding community bank performers across the nation. The Independent Community Bankers Association identified the top-performing community banks in its 2016 listing using year-end FDIC call report earnings data for 2015. In those rankings, the top 25 community banks with the best return on average assets (ROA) and return on average equity (ROE) ratios were identified. West Bank was ranked 22nd among Subchapter C corporation community banks with assets of more than $1 billion.
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•
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American Banker Magazine, the publication of the American Bankers Association, rated community banks by ROE in an article entitled "Which Small Bank has the Biggest ROE." West Bank came in at number 13 in America out of the 684 institutions that qualified for consideration. All public financial institutions across America with assets of less than $2 billion were eligible for the distinction. The most heavily weighted financial performance criterion was the 3-year ROE.
|
•
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A new ratio of minimum Common Equity Tier 1 Capital equal to 4.5 percent of risk-weighted assets;
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•
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An increase in the minimum required amount of Tier 1 Capital from 4 percent to 6 percent of risk-weighted assets;
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•
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A continuation of the current minimum required amount of Total Capital (Tier 1 plus Tier 2) at 8 percent of risk-weighted assets; and
|
•
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A minimum leverage ratio of Tier 1 Capital to total quarterly average assets equal to 4 percent in all circumstances.
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•
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A Common Equity Tier 1 Capital ratio to risk-weighted assets of 6.5 percent or more;
|
•
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A ratio of Tier 1 Capital to total risk-weighted assets of 8 percent or more;
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•
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A ratio of Total Capital to total risk-weighted assets of 10 percent or more; and
|
•
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A leverage ratio of Tier 1 Capital to total adjusted average quarterly assets of 5 percent or greater.
|
WEST BANCORPORATION, INC.
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|
Period Ending
|
|||||||||||
Index
|
12/31/2011
|
12/31/2012
|
12/31/2013
|
12/31/2014
|
12/31/2015
|
12/31/2016
|
||||||
West Bancorporation, Inc.
|
100.00
|
|
116.61
|
|
177.09
|
|
196.92
|
|
236.01
|
|
306.14
|
|
Nasdaq Composite
|
100.00
|
|
117.45
|
|
164.57
|
|
188.84
|
|
201.98
|
|
219.89
|
|
SNL Midwest Bank
|
100.00
|
|
120.36
|
|
164.78
|
|
179.14
|
|
181.86
|
|
242.99
|
|
West Bancorporation, Inc. and Subsidiary
|
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||||||||||
Selected Financial Data
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||||||||||
|
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As of and for the Years Ended December 31
|
||||||||||||||||||
(in thousands, except per share amounts)
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
Operating Results
|
|
|
|
|
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|
|
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|
||||||||||
Interest income
|
|
$
|
64,994
|
|
|
$
|
60,147
|
|
|
$
|
55,301
|
|
|
$
|
52,741
|
|
|
$
|
50,662
|
|
Interest expense
|
|
7,876
|
|
|
5,993
|
|
|
6,156
|
|
|
7,058
|
|
|
9,464
|
|
|||||
Net interest income
|
|
57,118
|
|
|
54,154
|
|
|
49,145
|
|
|
45,683
|
|
|
41,198
|
|
|||||
Provision for loan losses
|
|
1,000
|
|
|
850
|
|
|
750
|
|
|
(850
|
)
|
|
625
|
|
|||||
Net interest income after provision for loan losses
|
|
56,118
|
|
|
53,304
|
|
|
48,395
|
|
|
46,533
|
|
|
40,573
|
|
|||||
Noninterest income
|
|
7,982
|
|
|
8,203
|
|
|
10,296
|
|
|
8,494
|
|
|
10,869
|
|
|||||
Noninterest expense
|
|
31,148
|
|
|
30,068
|
|
|
32,002
|
|
|
30,816
|
|
|
28,667
|
|
|||||
Income before income taxes
|
|
32,952
|
|
|
31,439
|
|
|
26,689
|
|
|
24,211
|
|
|
22,775
|
|
|||||
Income taxes
|
|
9,936
|
|
|
9,697
|
|
|
6,649
|
|
|
7,320
|
|
|
6,764
|
|
|||||
Net income
|
|
$
|
23,016
|
|
|
$
|
21,742
|
|
|
$
|
20,040
|
|
|
$
|
16,891
|
|
|
$
|
16,011
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Dividends and Per Share Data
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash dividends
|
|
$
|
10,800
|
|
|
$
|
9,952
|
|
|
$
|
7,842
|
|
|
$
|
6,995
|
|
|
$
|
6,265
|
|
Cash dividends per common share
|
|
0.67
|
|
|
0.62
|
|
|
0.49
|
|
|
0.42
|
|
|
0.36
|
|
|||||
Basic earnings per common share
|
|
1.43
|
|
|
1.35
|
|
|
1.25
|
|
|
1.02
|
|
|
0.92
|
|
|||||
Diluted earnings per common share
|
|
1.42
|
|
|
1.35
|
|
|
1.25
|
|
|
1.02
|
|
|
0.92
|
|
|||||
Closing stock price per common share
|
|
24.70
|
|
|
19.75
|
|
|
17.02
|
|
|
15.82
|
|
|
10.78
|
|
|||||
Book value per common share
|
|
10.25
|
|
|
9.49
|
|
|
8.75
|
|
|
7.74
|
|
|
7.73
|
|
|||||
Average common shares outstanding
|
|
16,117
|
|
|
16,050
|
|
|
16,004
|
|
|
16,582
|
|
|
17,404
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Year End and Average Balances
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
|
$
|
1,854,204
|
|
|
$
|
1,748,396
|
|
|
$
|
1,615,566
|
|
|
$
|
1,442,111
|
|
|
$
|
1,447,901
|
|
Average assets
|
|
1,806,250
|
|
|
1,675,652
|
|
|
1,512,506
|
|
|
1,445,773
|
|
|
1,326,408
|
|
|||||
Investment securities
|
|
319,794
|
|
|
384,420
|
|
|
339,208
|
|
|
357,067
|
|
|
304,103
|
|
|||||
Loans
|
|
1,399,870
|
|
|
1,246,688
|
|
|
1,184,045
|
|
|
991,720
|
|
|
927,401
|
|
|||||
Allowance for loan losses
|
|
(16,112
|
)
|
|
(14,967
|
)
|
|
(13,607
|
)
|
|
(13,791
|
)
|
|
(15,529
|
)
|
|||||
Deposits
|
|
1,546,605
|
|
|
1,440,729
|
|
|
1,270,462
|
|
|
1,163,842
|
|
|
1,134,576
|
|
|||||
Long-term borrowings
|
|
125,410
|
|
|
127,175
|
|
|
129,916
|
|
|
131,653
|
|
|
114,235
|
|
|||||
Stockholders' equity
|
|
165,376
|
|
|
152,377
|
|
|
140,175
|
|
|
123,625
|
|
|
134,587
|
|
|||||
Average stockholders' equity
|
|
160,420
|
|
|
146,089
|
|
|
131,924
|
|
|
127,789
|
|
|
129,795
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Performance Ratios
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Average equity to average assets ratio
|
|
8.88
|
%
|
|
8.72
|
%
|
|
8.72
|
%
|
|
8.84
|
%
|
|
9.79
|
%
|
|||||
Return on average assets
|
|
1.27
|
%
|
|
1.30
|
%
|
|
1.32
|
%
|
|
1.17
|
%
|
|
1.21
|
%
|
|||||
Return on average equity
|
|
14.35
|
%
|
|
14.88
|
%
|
|
15.19
|
%
|
|
13.22
|
%
|
|
12.34
|
%
|
|||||
Efficiency ratio*
|
|
46.03
|
%
|
|
46.30
|
%
|
|
49.93
|
%
|
|
52.55
|
%
|
|
50.83
|
%
|
|||||
Texas ratio*
|
|
0.56
|
%
|
|
0.87
|
%
|
|
2.71
|
%
|
|
7.69
|
%
|
|
11.25
|
%
|
|||||
Net interest margin
|
|
3.49
|
%
|
|
3.59
|
%
|
|
3.59
|
%
|
|
3.48
|
%
|
|
3.42
|
%
|
|||||
Dividend payout ratio
|
|
46.92
|
%
|
|
45.77
|
%
|
|
39.13
|
%
|
|
41.41
|
%
|
|
39.13
|
%
|
|||||
Dividend yield
|
|
2.71
|
%
|
|
3.14
|
%
|
|
2.88
|
%
|
|
2.65
|
%
|
|
3.34
|
%
|
•
|
Average equity to average assets ratio - average equity divided by average assets.
|
•
|
Return on average assets - net income divided by average assets.
|
•
|
Return on average equity - net income divided by average equity.
|
•
|
Efficiency ratio - noninterest expense (excluding other real estate owned expense) divided by noninterest income (excluding net securities gains, net impairment losses and gains/losses on disposition of premises and equipment) plus tax-equivalent net interest income.
|
•
|
Texas ratio - total nonperforming assets divided by tangible common equity plus the allowance for loan losses.
|
•
|
Net interest margin - tax-equivalent net interest income divided by average interest-earning assets.
|
•
|
Dividend payout ratio - dividends paid to common stockholders divided by net income.
|
•
|
Dividend yield - dividends per share paid to common stockholders divided by closing year-end stock price.
|
•
|
ROA was
1.27 percent
compared to
1.30 percent
in
2015
.
|
•
|
ROE was
14.35 percent
compared to
14.88 percent
in
2015
.
|
•
|
Efficiency ratio was
46.03 percent
compared to
46.30 percent
in
2015
.
|
•
|
Texas ratio was
0.56 percent
compared to
0.87 percent
in
2015
.
|
•
|
The loan portfolio grew 12.3 percent during
2016
.
|
•
|
Deposits increased by 7.3 percent during
2016
.
|
|
Years ended December 31
|
|||||||||||||
Noninterest income:
|
2016
|
|
2015
|
|
Change
|
|
Change %
|
|||||||
Service charges on deposit accounts
|
$
|
2,461
|
|
|
$
|
2,609
|
|
|
$
|
(148
|
)
|
|
(5.67
|
)%
|
Debit card usage fees
|
1,825
|
|
|
1,830
|
|
|
(5
|
)
|
|
(0.27
|
)%
|
|||
Trust services
|
1,310
|
|
|
1,286
|
|
|
24
|
|
|
1.87
|
%
|
|||
Revenue from residential mortgage banking
|
151
|
|
|
163
|
|
|
(12
|
)
|
|
(7.36
|
)%
|
|||
Increase in cash value of bank-owned life insurance
|
647
|
|
|
727
|
|
|
(80
|
)
|
|
(11.00
|
)%
|
|||
Gain from bank-owned life insurance
|
443
|
|
|
—
|
|
|
443
|
|
|
N/A
|
|
|||
Gain (loss) on disposition of premises and equipment
|
(4
|
)
|
|
(6
|
)
|
|
2
|
|
|
(33.33
|
)%
|
|||
Realized investment securities gains, net
|
66
|
|
|
47
|
|
|
19
|
|
|
40.43
|
%
|
|||
Other income:
|
|
|
|
|
|
|
|
|
|
|
|
|||
Loan fees
|
110
|
|
|
120
|
|
|
(10
|
)
|
|
(8.33
|
)%
|
|||
Letter of credit fees
|
96
|
|
|
82
|
|
|
14
|
|
|
17.07
|
%
|
|||
Credit card fees
|
261
|
|
|
213
|
|
|
48
|
|
|
22.54
|
%
|
|||
Gain on sale of other assets
|
—
|
|
|
590
|
|
|
(590
|
)
|
|
(100.00
|
)%
|
|||
Discount on purchased income tax credits
|
94
|
|
|
58
|
|
|
36
|
|
|
62.07
|
%
|
|||
All other
|
522
|
|
|
484
|
|
|
38
|
|
|
7.85
|
%
|
|||
Total other income
|
1,083
|
|
|
1,547
|
|
|
(464
|
)
|
|
(29.99
|
)%
|
|||
Total noninterest income
|
$
|
7,982
|
|
|
$
|
8,203
|
|
|
$
|
(221
|
)
|
|
(2.69
|
)%
|
|
Years ended December 31
|
|||||||||||||
Noninterest expense:
|
2016
|
|
2015
|
|
Change
|
|
Change %
|
|
||||||
Salaries and employee benefits
|
$
|
16,731
|
|
|
$
|
16,065
|
|
|
$
|
666
|
|
|
4.15
|
%
|
Occupancy
|
4,033
|
|
|
4,105
|
|
|
(72
|
)
|
|
(1.75
|
)%
|
|||
Data processing
|
2,510
|
|
|
2,329
|
|
|
181
|
|
|
7.77
|
%
|
|||
FDIC insurance
|
937
|
|
|
839
|
|
|
98
|
|
|
11.68
|
%
|
|||
Other real estate owned
|
—
|
|
|
10
|
|
|
(10
|
)
|
|
(100.00
|
)%
|
|||
Professional fees
|
774
|
|
|
748
|
|
|
26
|
|
|
3.48
|
%
|
|||
Director fees
|
888
|
|
|
881
|
|
|
7
|
|
|
0.79
|
%
|
|||
Other expenses:
|
|
|
|
|
|
|
|
|
|
|
||||
Marketing
|
231
|
|
|
253
|
|
|
(22
|
)
|
|
(8.70
|
)%
|
|||
Business development
|
701
|
|
|
654
|
|
|
47
|
|
|
7.19
|
%
|
|||
Insurance expense
|
348
|
|
|
361
|
|
|
(13
|
)
|
|
(3.60
|
)%
|
|||
Investment advisory fees
|
442
|
|
|
517
|
|
|
(75
|
)
|
|
(14.51
|
)%
|
|||
Charitable contributions
|
180
|
|
|
360
|
|
|
(180
|
)
|
|
(50.00
|
)%
|
|||
Trust
|
415
|
|
|
396
|
|
|
19
|
|
|
4.80
|
%
|
|||
Consulting fees
|
302
|
|
|
260
|
|
|
42
|
|
|
16.15
|
%
|
|||
Postage and courier
|
321
|
|
|
326
|
|
|
(5
|
)
|
|
(1.53
|
)%
|
|||
Supplies
|
310
|
|
|
305
|
|
|
5
|
|
|
1.64
|
%
|
|||
Amortization of low income housing projects
|
418
|
|
|
228
|
|
|
190
|
|
|
83.33
|
%
|
|||
All other
|
1,607
|
|
|
1,431
|
|
|
176
|
|
|
12.30
|
%
|
|||
Total other
|
5,275
|
|
|
5,091
|
|
|
184
|
|
|
3.61
|
%
|
|||
Total noninterest expense
|
$
|
31,148
|
|
|
$
|
30,068
|
|
|
$
|
1,080
|
|
|
3.59
|
%
|
•
|
ROA was 1.30 percent compared to 1.32 percent in 2014.
|
•
|
ROE was 14.88 percent compared to 15.19 percent in 2014.
|
•
|
Efficiency ratio improved to 46.30 percent compared to 49.93 percent in 2014.
|
•
|
Texas ratio improved to 0.87 percent compared to 2.71 percent in 2014.
|
•
|
The loan portfolio grew 5.3 percent during 2015.
|
•
|
Deposits increased by 13.4 percent during 2015.
|
|
Years ended December 31
|
|||||||||||||
Noninterest income:
|
2015
|
|
2014
|
|
Change
|
|
Change %
|
|||||||
Service charges on deposit accounts
|
$
|
2,609
|
|
|
$
|
2,790
|
|
|
$
|
(181
|
)
|
|
(6.49
|
)%
|
Debit card usage fees
|
1,830
|
|
|
1,764
|
|
|
66
|
|
|
3.74
|
%
|
|||
Trust services
|
1,286
|
|
|
1,327
|
|
|
(41
|
)
|
|
(3.09
|
)%
|
|||
Revenue from residential mortgage banking
|
163
|
|
|
1,394
|
|
|
(1,231
|
)
|
|
(88.31
|
)%
|
|||
Increase in cash value of bank-owned life insurance
|
727
|
|
|
731
|
|
|
(4
|
)
|
|
(0.55
|
)%
|
|||
Gain (loss) on disposition of premises and equipment
|
(6
|
)
|
|
1,069
|
|
|
(1,075
|
)
|
|
(100.56
|
)%
|
|||
Realized investment securities gains, net
|
47
|
|
|
223
|
|
|
(176
|
)
|
|
(78.92
|
)%
|
|||
Other income:
|
|
|
|
|
|
|
|
|||||||
Loan fees
|
120
|
|
|
98
|
|
|
22
|
|
|
22.45
|
%
|
|||
Letter of credit fees
|
82
|
|
|
127
|
|
|
(45
|
)
|
|
(35.43
|
)%
|
|||
Gain on sale of other assets
|
590
|
|
|
—
|
|
|
590
|
|
|
N/A
|
|
|||
All other
|
755
|
|
|
773
|
|
|
(18
|
)
|
|
(2.33
|
)%
|
|||
Total other income
|
1,547
|
|
|
998
|
|
|
549
|
|
|
55.01
|
%
|
|||
Total noninterest income
|
$
|
8,203
|
|
|
$
|
10,296
|
|
|
$
|
(2,093
|
)
|
|
(20.33
|
)%
|
|
Years ended December 31
|
|||||||||||||
Noninterest expense:
|
2015
|
|
2014
|
|
Change
|
|
Change %
|
|||||||
Salaries and employee benefits
|
$
|
16,065
|
|
|
$
|
16,086
|
|
|
$
|
(21
|
)
|
|
(0.13
|
)%
|
Occupancy
|
4,105
|
|
|
4,165
|
|
|
(60
|
)
|
|
(1.44
|
)%
|
|||
Data processing
|
2,329
|
|
|
2,241
|
|
|
88
|
|
|
3.93
|
%
|
|||
FDIC insurance
|
839
|
|
|
757
|
|
|
82
|
|
|
10.83
|
%
|
|||
Other real estate owned
|
10
|
|
|
1,865
|
|
|
(1,855
|
)
|
|
(99.46
|
)%
|
|||
Professional fees
|
748
|
|
|
944
|
|
|
(196
|
)
|
|
(20.76
|
)%
|
|||
Director fees
|
881
|
|
|
714
|
|
|
167
|
|
|
23.39
|
%
|
|||
Other expenses:
|
|
|
|
|
|
|
|
|||||||
Marketing
|
253
|
|
|
220
|
|
|
33
|
|
|
15.00
|
%
|
|||
Business development
|
654
|
|
|
702
|
|
|
(48
|
)
|
|
(6.84
|
)%
|
|||
Insurance
|
361
|
|
|
384
|
|
|
(23
|
)
|
|
(5.99
|
)%
|
|||
Investment advisory fees
|
517
|
|
|
366
|
|
|
151
|
|
|
41.26
|
%
|
|||
Charitable contributions
|
360
|
|
|
180
|
|
|
180
|
|
|
100.00
|
%
|
|||
Trust
|
396
|
|
|
344
|
|
|
52
|
|
|
15.12
|
%
|
|||
Consulting fees
|
260
|
|
|
337
|
|
|
(77
|
)
|
|
(22.85
|
)%
|
|||
Supplies
|
305
|
|
|
292
|
|
|
13
|
|
|
4.45
|
%
|
|||
Amortization of low income housing projects
|
228
|
|
|
188
|
|
|
40
|
|
|
21.28
|
%
|
|||
Miscellaneous losses
|
30
|
|
|
329
|
|
|
(299
|
)
|
|
(90.88
|
)%
|
|||
All other
|
1,727
|
|
|
1,888
|
|
|
(161
|
)
|
|
(8.53
|
)%
|
|||
Total other
|
5,091
|
|
|
5,230
|
|
|
(139
|
)
|
|
(2.66
|
)%
|
|||
Total noninterest expense
|
$
|
30,068
|
|
|
$
|
32,002
|
|
|
$
|
(1,934
|
)
|
|
(6.04
|
)%
|
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||||||||||||||
|
Average
Balance
|
|
Revenue/
Expense
|
|
Yield/
Rate
|
|
Average
Balance
|
|
Revenue/
Expense
|
|
Yield/
Rate
|
|
Average
Balance
|
|
Revenue/
Expense
|
|
Yield/
Rate
|
|||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Loans:
(1) (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial
|
$
|
354,790
|
|
|
$
|
14,854
|
|
|
4.19
|
%
|
|
$
|
331,306
|
|
|
$
|
13,813
|
|
|
4.17
|
%
|
|
$
|
276,201
|
|
|
$
|
11,662
|
|
|
4.22
|
%
|
Real estate
(3)
|
972,571
|
|
|
43,193
|
|
|
4.44
|
%
|
|
873,844
|
|
|
39,404
|
|
|
4.51
|
%
|
|
779,223
|
|
|
36,121
|
|
|
4.64
|
%
|
||||||
Consumer and other
|
8,795
|
|
|
348
|
|
|
3.95
|
%
|
|
8,304
|
|
|
325
|
|
|
3.91
|
%
|
|
9,811
|
|
|
393
|
|
|
4.01
|
%
|
||||||
Total loans
|
1,336,156
|
|
|
58,395
|
|
|
4.37
|
%
|
|
1,213,454
|
|
|
53,542
|
|
|
4.41
|
%
|
|
1,065,235
|
|
|
48,176
|
|
|
4.52
|
%
|
||||||
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Taxable
|
236,770
|
|
|
4,201
|
|
|
1.77
|
%
|
|
232,078
|
|
|
4,363
|
|
|
1.88
|
%
|
|
252,500
|
|
|
4,938
|
|
|
1.96
|
%
|
||||||
Tax-exempt
(3)
|
118,622
|
|
|
4,913
|
|
|
4.14
|
%
|
|
107,414
|
|
|
4,765
|
|
|
4.44
|
%
|
|
94,851
|
|
|
4,347
|
|
|
4.58
|
%
|
||||||
Total investment securities
|
355,392
|
|
|
9,114
|
|
|
2.56
|
%
|
|
339,492
|
|
|
9,128
|
|
|
2.69
|
%
|
|
347,351
|
|
|
9,285
|
|
|
2.67
|
%
|
||||||
Federal funds sold
|
20,064
|
|
|
108
|
|
|
0.54
|
%
|
|
30,113
|
|
|
81
|
|
|
0.27
|
%
|
|
17,007
|
|
|
45
|
|
|
0.26
|
%
|
||||||
Total interest-earning assets
(3)
|
1,711,612
|
|
|
67,617
|
|
|
3.95
|
%
|
|
1,583,059
|
|
|
62,751
|
|
|
3.96
|
%
|
|
1,429,593
|
|
|
57,506
|
|
|
4.02
|
%
|
||||||
Noninterest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash and due from banks
|
44,875
|
|
|
|
|
|
|
|
|
46,122
|
|
|
|
|
|
|
|
|
34,152
|
|
|
|
|
|
|
|
||||||
Premises and equipment, net
|
18,843
|
|
|
|
|
|
|
|
|
10,904
|
|
|
|
|
|
|
|
|
9,513
|
|
|
|
|
|
|
|
||||||
Other, less allowance for
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
loan losses
|
30,920
|
|
|
|
|
|
|
|
|
35,567
|
|
|
|
|
|
|
|
|
39,248
|
|
|
|
|
|
|
|
||||||
Total noninterest-earning assets
|
94,638
|
|
|
|
|
|
|
|
|
92,593
|
|
|
|
|
|
|
|
|
82,913
|
|
|
|
|
|
|
|
||||||
Total assets
|
$
|
1,806,250
|
|
|
|
|
|
|
|
|
$
|
1,675,652
|
|
|
|
|
|
|
|
|
$
|
1,512,506
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Savings, interest-bearing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
demand and money markets
|
$
|
917,774
|
|
|
2,610
|
|
|
0.28
|
%
|
|
$
|
825,771
|
|
|
1,341
|
|
|
0.16
|
%
|
|
$
|
736,002
|
|
|
1,222
|
|
|
0.17
|
%
|
|||
Time
|
110,407
|
|
|
781
|
|
|
0.71
|
%
|
|
128,899
|
|
|
844
|
|
|
0.65
|
%
|
|
150,378
|
|
|
1,204
|
|
|
0.80
|
%
|
||||||
Total deposits
|
1,028,181
|
|
|
3,391
|
|
|
0.33
|
%
|
|
954,670
|
|
|
2,185
|
|
|
0.23
|
%
|
|
886,380
|
|
|
2,426
|
|
|
0.27
|
%
|
||||||
Other borrowed funds
|
136,535
|
|
|
4,485
|
|
|
3.28
|
%
|
|
146,693
|
|
|
3,808
|
|
|
2.60
|
%
|
|
150,654
|
|
|
3,730
|
|
|
2.48
|
%
|
||||||
Total interest-bearing liabilities
|
1,164,716
|
|
|
7,876
|
|
|
0.68
|
%
|
|
1,101,363
|
|
|
5,993
|
|
|
0.54
|
%
|
|
1,037,034
|
|
|
6,156
|
|
|
0.59
|
%
|
||||||
Noninterest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Demand deposits
|
473,380
|
|
|
|
|
|
|
|
420,842
|
|
|
|
|
|
|
|
|
336,456
|
|
|
|
|
|
|
|
|||||||
Other liabilities
|
7,734
|
|
|
|
|
|
|
|
7,358
|
|
|
|
|
|
|
|
|
7,092
|
|
|
|
|
|
|
|
|||||||
Stockholders' equity
|
160,420
|
|
|
|
|
|
|
|
|
146,089
|
|
|
|
|
|
|
|
|
131,924
|
|
|
|
|
|
|
|
||||||
Total liabilities and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
stockholders' equity
|
$
|
1,806,250
|
|
|
|
|
|
|
|
|
$
|
1,675,652
|
|
|
|
|
|
|
|
|
$
|
1,512,506
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net interest income/net interest spread
(3)
|
|
$
|
59,741
|
|
|
3.27
|
%
|
|
|
|
$
|
56,758
|
|
|
3.42
|
%
|
|
|
|
|
$
|
51,350
|
|
|
3.43
|
%
|
||||||
Net interest margin
(3)
|
|
|
|
|
|
|
3.49
|
%
|
|
|
|
|
|
|
|
3.59
|
%
|
|
|
|
|
|
|
|
3.59
|
%
|
(1)
|
Average loan balances include nonaccrual loans. Interest income recognized on nonaccrual loans has been included.
|
(2)
|
Interest income on loans includes amortization of loan fees and costs and prepayment penalties collected, which are not material.
|
(3)
|
Tax-exempt income has been adjusted to a tax-equivalent basis using an incremental federal income tax rate of 35 percent and is adjusted to reflect the effect of the nondeductible interest expense associated with owning tax-exempt investment securities and loans.
|
|
2016 Compared to 2015
|
|
2015 Compared to 2014
|
||||||||||||||||||||
|
Volume
|
|
Rate
|
|
Total
|
|
Volume
|
|
Rate
|
|
Total
|
||||||||||||
Interest Income
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
$
|
983
|
|
|
$
|
58
|
|
|
$
|
1,041
|
|
|
$
|
2,299
|
|
|
$
|
(148
|
)
|
|
$
|
2,151
|
|
Real estate
(2)
|
4,393
|
|
|
(604
|
)
|
|
3,789
|
|
|
4,289
|
|
|
(1,006
|
)
|
|
3,283
|
|
||||||
Consumer and other
|
19
|
|
|
4
|
|
|
23
|
|
|
(59
|
)
|
|
(9
|
)
|
|
(68
|
)
|
||||||
Total loans (including fees)
|
5,395
|
|
|
(542
|
)
|
|
4,853
|
|
|
6,529
|
|
|
(1,163
|
)
|
|
5,366
|
|
||||||
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Taxable
|
87
|
|
|
(249
|
)
|
|
(162
|
)
|
|
(389
|
)
|
|
(186
|
)
|
|
(575
|
)
|
||||||
Tax-exempt
(2)
|
477
|
|
|
(329
|
)
|
|
148
|
|
|
561
|
|
|
(143
|
)
|
|
418
|
|
||||||
Total investment securities
|
564
|
|
|
(578
|
)
|
|
(14
|
)
|
|
172
|
|
|
(329
|
)
|
|
(157
|
)
|
||||||
Federal funds sold
|
(34
|
)
|
|
61
|
|
|
27
|
|
|
35
|
|
|
1
|
|
|
36
|
|
||||||
Total interest income
(2)
|
5,925
|
|
|
(1,059
|
)
|
|
4,866
|
|
|
6,736
|
|
|
(1,491
|
)
|
|
5,245
|
|
||||||
Interest Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Savings, interest-bearing
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
demand and money markets
|
164
|
|
|
1,105
|
|
|
1,269
|
|
|
146
|
|
|
(27
|
)
|
|
119
|
|
||||||
Time
|
(127
|
)
|
|
64
|
|
|
(63
|
)
|
|
(158
|
)
|
|
(202
|
)
|
|
(360
|
)
|
||||||
Total deposits
|
37
|
|
|
1,169
|
|
|
1,206
|
|
|
(12
|
)
|
|
(229
|
)
|
|
(241
|
)
|
||||||
Other borrowed funds
|
(278
|
)
|
|
955
|
|
|
677
|
|
|
(100
|
)
|
|
178
|
|
|
78
|
|
||||||
Total interest expense
|
(241
|
)
|
|
2,124
|
|
|
1,883
|
|
|
(112
|
)
|
|
(51
|
)
|
|
(163
|
)
|
||||||
Net interest income
(2)
|
$
|
6,166
|
|
|
$
|
(3,183
|
)
|
|
$
|
2,983
|
|
|
$
|
6,848
|
|
|
$
|
(1,440
|
)
|
|
$
|
5,408
|
|
(1)
|
Average balances of nonaccrual loans were included for computational purposes.
|
(2)
|
Tax-exempt income has been converted to a tax-equivalent basis using a federal income tax rate of 35 percent and is adjusted for the effect of the nondeductible interest expense associated with owning tax-exempt investment securities and loans.
|
|
As of December 31
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Securities available for sale, at fair value:
|
|
|
|
|
|
||||||
U.S. government agencies and corporations
|
$
|
2,593
|
|
|
$
|
2,692
|
|
|
$
|
12,820
|
|
State and political subdivisions
|
64,336
|
|
|
73,079
|
|
|
52,359
|
|
|||
Collateralized mortgage obligations
|
101,950
|
|
|
132,615
|
|
|
125,870
|
|
|||
Mortgage-backed securities
|
80,158
|
|
|
101,088
|
|
|
66,153
|
|
|||
Trust preferred securities
|
1,250
|
|
|
1,105
|
|
|
918
|
|
|||
Corporate notes and other investments
|
10,350
|
|
|
10,135
|
|
|
14,670
|
|
|||
Total securities available for sale
|
$
|
260,637
|
|
|
$
|
320,714
|
|
|
$
|
272,790
|
|
|
|
|
|
|
|
||||||
Securities held to maturity, at amortized cost:
|
|
|
|
|
|
||||||
State and political subdivisions
|
$
|
48,386
|
|
|
$
|
51,259
|
|
|
$
|
51,343
|
|
Investments as of December 31, 2016
|
|
Within one
year
|
|
After one year
but within five
years
|
|
After five years
but within ten
years
|
|
After ten years
|
|
Total
|
||||||||||
U.S. government agencies and corporations
|
|
$
|
2,593
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,593
|
|
State and political subdivisions
|
|
496
|
|
|
8,283
|
|
|
34,184
|
|
|
21,373
|
|
|
64,336
|
|
|||||
Collateralized mortgage obligations
|
|
—
|
|
|
1,091
|
|
|
4,893
|
|
|
95,966
|
|
|
101,950
|
|
|||||
Mortgage-backed securities
|
|
—
|
|
|
866
|
|
|
27,349
|
|
|
51,943
|
|
|
80,158
|
|
|||||
Trust preferred security
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,250
|
|
|
1,250
|
|
|||||
Corporate notes
|
|
3,012
|
|
|
3,527
|
|
|
3,811
|
|
|
—
|
|
|
10,350
|
|
|||||
Total
|
|
$
|
6,101
|
|
|
$
|
13,767
|
|
|
$
|
70,237
|
|
|
$
|
170,532
|
|
|
$
|
260,637
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average yield:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
U.S. government agencies and corporations
|
|
3.90
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
||||||
State and political subdivisions
(1)
|
|
5.52
|
%
|
|
4.10
|
%
|
|
3.87
|
%
|
|
4.58
|
%
|
|
|
||||||
Collateralized mortgage obligations
|
|
—
|
|
|
3.34
|
%
|
|
2.36
|
%
|
|
2.28
|
%
|
|
|
||||||
Mortgage-backed securities
|
|
—
|
|
|
3.80
|
%
|
|
2.34
|
%
|
|
2.08
|
%
|
|
|
||||||
Trust preferred security
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.28
|
%
|
|
|
||||||
Corporate notes
|
|
2.01
|
%
|
|
2.00
|
%
|
|
4.74
|
%
|
|
—
|
|
|
|
||||||
Total
|
|
3.09
|
%
|
|
3.48
|
%
|
|
3.22
|
%
|
|
2.52
|
%
|
|
|
(1)
|
Yields on tax-exempt obligations have been computed on a tax-equivalent basis using an incremental federal income tax rate of 35 percent and are adjusted to reflect the effect of the nondeductible interest expense associated with owning tax-exempt investment securities.
|
Investments as of December 31, 2016
|
|
Within one
year
|
|
After one year
but within five
years
|
|
After five years
but within ten
years
|
|
After ten years
|
|
Total
|
||||||||||
State and political subdivisions
|
|
$
|
—
|
|
|
$
|
486
|
|
|
$
|
19,370
|
|
|
$
|
28,530
|
|
|
$
|
48,386
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average yield:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
State and political subdivisions
(1)
|
|
—
|
|
|
3.01
|
%
|
|
3.68
|
%
|
|
4.48
|
%
|
|
|
(1)
|
Yields on tax-exempt obligations have been computed on a tax-equivalent basis using an incremental federal income tax rate of 35 percent and are adjusted to reflect the effect of the nondeductible interest expense associated with owning tax-exempt investment securities.
|
|
As of December 31
|
||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
Commercial
|
$
|
334,014
|
|
|
$
|
349,051
|
|
|
$
|
316,908
|
|
|
$
|
258,010
|
|
|
$
|
282,124
|
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Construction, land and land development
|
205,610
|
|
|
174,602
|
|
|
154,490
|
|
|
117,394
|
|
|
121,911
|
|
|||||
1-4 family residential first mortgages
|
47,184
|
|
|
51,370
|
|
|
53,497
|
|
|
50,349
|
|
|
49,280
|
|
|||||
Home equity
|
18,057
|
|
|
21,749
|
|
|
24,500
|
|
|
25,205
|
|
|
25,536
|
|
|||||
Commercial
|
788,000
|
|
|
644,176
|
|
|
625,938
|
|
|
532,139
|
|
|
441,857
|
|
|||||
Consumer and other loans
|
8,355
|
|
|
6,801
|
|
|
9,318
|
|
|
9,236
|
|
|
7,099
|
|
|||||
Total loans
|
1,401,220
|
|
|
1,247,749
|
|
|
1,184,651
|
|
|
992,333
|
|
|
927,807
|
|
|||||
Deferred loan fees, net
|
(1,350
|
)
|
|
(1,061
|
)
|
|
(606
|
)
|
|
(613
|
)
|
|
(406
|
)
|
|||||
Total loans, net of deferred fees
|
$
|
1,399,870
|
|
|
$
|
1,246,688
|
|
|
$
|
1,184,045
|
|
|
$
|
991,720
|
|
|
$
|
927,401
|
|
Loans as of December 31, 2016
|
|
Within one
year
|
|
After one but
within five
years
|
|
After five
years
|
|
Total
|
||||||||
Commercial
|
|
$
|
136,636
|
|
|
$
|
162,307
|
|
|
$
|
35,071
|
|
|
$
|
334,014
|
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|||||||
Construction, land and land development
|
|
130,800
|
|
|
21,526
|
|
|
53,284
|
|
|
205,610
|
|
||||
1-4 family residential first mortgages
|
|
6,556
|
|
|
36,314
|
|
|
4,314
|
|
|
47,184
|
|
||||
Home equity
|
|
5,664
|
|
|
12,337
|
|
|
56
|
|
|
18,057
|
|
||||
Commercial
|
|
54,773
|
|
|
453,379
|
|
|
279,848
|
|
|
788,000
|
|
||||
Consumer and other loans
|
|
2,711
|
|
|
5,623
|
|
|
21
|
|
|
8,355
|
|
||||
Total loans
|
|
$
|
337,140
|
|
|
$
|
691,486
|
|
|
$
|
372,594
|
|
|
$
|
1,401,220
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
After one but
within five
years
|
|
After five
years
|
|
|
|
|||||||
Loan maturities after one year with:
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Fixed rates
|
|
|
|
$
|
565,736
|
|
|
$
|
213,560
|
|
|
|
|
|||
Variable rates
|
|
|
|
125,750
|
|
|
159,034
|
|
|
|
|
|||||
|
|
|
|
$
|
691,486
|
|
|
$
|
372,594
|
|
|
|
|
|
Years Ended December 31
|
||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
Nonaccrual loans
|
$
|
1,022
|
|
|
$
|
1,381
|
|
|
$
|
1,561
|
|
|
$
|
2,398
|
|
|
$
|
6,400
|
|
Loans past due 90 days and still accruing interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Troubled debt restructured loans
(1)
|
—
|
|
|
80
|
|
|
376
|
|
|
517
|
|
|
856
|
|
|||||
Total nonperforming loans
|
1,022
|
|
|
1,461
|
|
|
1,937
|
|
|
2,915
|
|
|
7,256
|
|
|||||
Other real estate owned
|
—
|
|
|
—
|
|
|
2,235
|
|
|
5,800
|
|
|
8,304
|
|
|||||
Nonaccrual investment securities
|
—
|
|
|
—
|
|
|
—
|
|
|
1,850
|
|
|
1,334
|
|
|||||
Total nonperforming assets
|
$
|
1,022
|
|
|
$
|
1,461
|
|
|
$
|
4,172
|
|
|
$
|
10,565
|
|
|
$
|
16,894
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonperforming loans to total loans
|
0.07
|
%
|
|
0.12
|
%
|
|
0.16
|
%
|
|
0.29
|
%
|
|
0.78
|
%
|
|||||
Nonperforming assets to total assets
|
0.06
|
%
|
|
0.08
|
%
|
|
0.26
|
%
|
|
0.73
|
%
|
|
1.17
|
%
|
(1)
|
While TDR loans are commonly reported by the industry as nonperforming, those not classified in the nonaccrual category are accruing interest due to payment performance. TDR loans on nonaccrual status, if any, are included in the nonaccrual category.
|
|
Analysis of the Allowance for Loan Losses for the Years Ended December 31
|
||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
Balance at beginning of period
|
$
|
14,967
|
|
|
$
|
13,607
|
|
|
$
|
13,791
|
|
|
$
|
15,529
|
|
|
$
|
16,778
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial
|
125
|
|
|
408
|
|
|
836
|
|
|
742
|
|
|
402
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Construction, land and land development
|
141
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,508
|
|
|||||
1-4 family residential first mortgages
|
93
|
|
|
23
|
|
|
131
|
|
|
116
|
|
|
301
|
|
|||||
Home equity
|
—
|
|
|
2
|
|
|
138
|
|
|
119
|
|
|
343
|
|
|||||
Commercial
|
—
|
|
|
—
|
|
|
112
|
|
|
624
|
|
|
5
|
|
|||||
Consumer and other loans
|
47
|
|
|
6
|
|
|
—
|
|
|
33
|
|
|
25
|
|
|||||
Total charge-offs
|
406
|
|
|
439
|
|
|
1,217
|
|
|
1,634
|
|
|
2,584
|
|
|||||
Recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial
|
218
|
|
|
579
|
|
|
116
|
|
|
292
|
|
|
354
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Construction, land and land development
|
217
|
|
|
250
|
|
|
8
|
|
|
42
|
|
|
—
|
|
|||||
1-4 family residential first mortgages
|
59
|
|
|
7
|
|
|
45
|
|
|
150
|
|
|
98
|
|
|||||
Home equity
|
36
|
|
|
87
|
|
|
99
|
|
|
236
|
|
|
22
|
|
|||||
Commercial
|
13
|
|
|
12
|
|
|
11
|
|
|
2
|
|
|
206
|
|
|||||
Consumer and other loans
|
8
|
|
|
14
|
|
|
4
|
|
|
24
|
|
|
30
|
|
|||||
Total recoveries
|
551
|
|
|
949
|
|
|
283
|
|
|
746
|
|
|
710
|
|
|||||
Net charge-offs (recoveries)
|
(145
|
)
|
|
(510
|
)
|
|
934
|
|
|
888
|
|
|
1,874
|
|
|||||
Provision for loan losses charged to operations
|
1,000
|
|
|
850
|
|
|
750
|
|
|
(850
|
)
|
|
625
|
|
|||||
Balance at end of period
|
$
|
16,112
|
|
|
$
|
14,967
|
|
|
$
|
13,607
|
|
|
$
|
13,791
|
|
|
$
|
15,529
|
|
Average loans outstanding
|
$
|
1,336,156
|
|
|
$
|
1,213,429
|
|
|
$
|
1,063,528
|
|
|
$
|
949,775
|
|
|
$
|
854,860
|
|
Ratio of net charge-offs (recoveries) during the
|
|
|
|
|
|
|
|
|
|
||||||||||
period to average loans outstanding
|
(0.01
|
)%
|
|
(0.04
|
)%
|
|
0.09
|
%
|
|
0.09
|
%
|
|
0.22
|
%
|
|||||
Ratio of allowance for loan losses to
|
|
|
|
|
|
|
|
|
|
||||||||||
average loans outstanding
|
1.21
|
%
|
|
1.23
|
%
|
|
1.28
|
%
|
|
1.45
|
%
|
|
1.82
|
%
|
|||||
Ratio of allowance for loan losses to total
|
|
|
|
|
|
|
|
|
|
||||||||||
loans at the end of period
|
1.15
|
%
|
|
1.20
|
%
|
|
1.15
|
%
|
|
1.39
|
%
|
|
1.67
|
%
|
|
As of December 31
|
|||||||||||||||||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|||||||||||||||||||||||||
|
Amount
|
|
%*
|
|
Amount
|
|
%*
|
|
Amount
|
|
%*
|
|
Amount
|
|
%*
|
|
Amount
|
|
%*
|
|||||||||||||||
Balance at end of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
period applicable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
$
|
3,881
|
|
|
23.84
|
%
|
|
$
|
4,369
|
|
|
27.97
|
%
|
|
$
|
4,415
|
|
|
26.75
|
%
|
|
$
|
4,199
|
|
|
26.00
|
%
|
|
$
|
4,116
|
|
|
30.41
|
%
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Construction, land
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
and land development
|
2,639
|
|
|
14.67
|
%
|
|
2,338
|
|
|
13.99
|
%
|
|
2,151
|
|
|
13.04
|
%
|
|
3,032
|
|
|
11.83
|
%
|
|
4,616
|
|
|
13.14
|
%
|
|||||
1-4 family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
first mortgages
|
317
|
|
|
3.37
|
%
|
|
508
|
|
|
4.12
|
%
|
|
466
|
|
|
4.51
|
%
|
|
613
|
|
|
5.07
|
%
|
|
637
|
|
|
5.31
|
%
|
|||||
Home equity
|
478
|
|
|
1.29
|
%
|
|
481
|
|
|
1.74
|
%
|
|
534
|
|
|
2.07
|
%
|
|
403
|
|
|
2.54
|
%
|
|
568
|
|
|
2.75
|
%
|
|||||
Commercial
|
8,697
|
|
|
56.23
|
%
|
|
7,254
|
|
|
51.63
|
%
|
|
6,013
|
|
|
52.84
|
%
|
|
5,485
|
|
|
53.63
|
%
|
|
5,564
|
|
|
47.62
|
%
|
|||||
Consumer and other loans
|
100
|
|
|
0.60
|
%
|
|
17
|
|
|
0.55
|
%
|
|
28
|
|
|
0.79
|
%
|
|
59
|
|
|
0.93
|
%
|
|
28
|
|
|
0.77
|
%
|
|||||
|
$
|
16,112
|
|
|
100.00
|
%
|
|
$
|
14,967
|
|
|
100.00
|
%
|
|
$
|
13,607
|
|
|
100.00
|
%
|
|
$
|
13,791
|
|
|
100.00
|
%
|
|
$
|
15,529
|
|
|
100.00
|
%
|
3 months or less
|
$
|
15,633
|
|
Over 3 through 6 months
|
17,109
|
|
|
Over 6 through 12 months
|
13,228
|
|
|
Over 12 months
|
30,901
|
|
|
|
$
|
76,871
|
|
|
Years ended December 31
|
|||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||
|
Average
|
|
Average
|
|
Average
|
|
Average
|
|
Average
|
|
Average
|
|||||||||
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
|||||||||
Noninterest-bearing demand
|
$
|
473,380
|
|
|
—
|
|
|
$
|
420,842
|
|
|
—
|
|
|
$
|
336,456
|
|
|
—
|
|
Interest-bearing demand:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Reward Me checking
|
78,219
|
|
|
0.29
|
%
|
|
82,583
|
|
|
0.30
|
%
|
|
77,178
|
|
|
0.35
|
%
|
|||
Insured cash sweep
|
77,489
|
|
|
0.27
|
%
|
|
76,181
|
|
|
0.23
|
%
|
|
75,720
|
|
|
0.23
|
%
|
|||
Other interest-bearing demand
|
95,171
|
|
|
0.07
|
%
|
|
84,065
|
|
|
0.05
|
%
|
|
77,452
|
|
|
0.05
|
%
|
|||
Money market:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Insured cash sweep
|
143,869
|
|
|
0.32
|
%
|
|
130,339
|
|
|
0.23
|
%
|
|
141,912
|
|
|
0.24
|
%
|
|||
Other money market
|
435,996
|
|
|
0.37
|
%
|
|
376,226
|
|
|
0.14
|
%
|
|
290,212
|
|
|
0.13
|
%
|
|||
Savings
|
87,030
|
|
|
0.05
|
%
|
|
76,377
|
|
|
0.04
|
%
|
|
73,528
|
|
|
0.05
|
%
|
|||
Time deposits
|
110,407
|
|
|
0.71
|
%
|
|
128,899
|
|
|
0.65
|
%
|
|
150,378
|
|
|
0.80
|
%
|
|||
|
$
|
1,501,561
|
|
|
|
|
|
$
|
1,375,512
|
|
|
|
|
|
$
|
1,222,836
|
|
|
|
|
|
As of December 31
|
|||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
|||||||||
Federal funds purchased
|
$
|
9,690
|
|
|
0.47
|
%
|
|
$
|
2,760
|
|
|
0.12
|
%
|
|
$
|
2,975
|
|
|
0.12
|
%
|
Short-term borrowings
|
—
|
|
|
—
|
|
|
19,000
|
|
|
0.34
|
%
|
|
66,000
|
|
|
0.28
|
%
|
|||
Subordinated notes, net
|
20,398
|
|
|
4.11
|
%
|
|
20,385
|
|
|
3.72
|
%
|
|
20,372
|
|
|
3.39
|
%
|
|||
FHLB advances, net
|
99,886
|
|
|
3.56
|
%
|
|
98,385
|
|
|
3.35
|
%
|
|
96,888
|
|
|
2.90
|
%
|
|||
Long-term debt, net
|
5,126
|
|
|
2.48
|
%
|
|
8,405
|
|
|
2.15
|
%
|
|
12,656
|
|
|
2.08
|
%
|
|||
|
$
|
135,100
|
|
|
3.38
|
%
|
|
$
|
148,935
|
|
|
2.89
|
%
|
|
$
|
198,891
|
|
|
1.99
|
%
|
|
Years Ended December 31
|
|||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||
|
Average
Balance
|
|
Average
Rate
|
|
Average
Balance
|
|
Average
Rate
|
|
Average
Balance
|
|
Average
Rate
|
|||||||||
Federal funds purchased
|
$
|
2,013
|
|
|
0.25
|
%
|
|
$
|
4,915
|
|
|
0.18
|
%
|
|
$
|
6,013
|
|
|
0.18
|
%
|
Short-term borrowings
|
8,351
|
|
|
0.51
|
%
|
|
13,142
|
|
|
0.29
|
%
|
|
13,993
|
|
|
0.29
|
%
|
|||
Subordinated notes, net
|
20,391
|
|
|
3.57
|
%
|
|
20,378
|
|
|
3.42
|
%
|
|
20,365
|
|
|
3.65
|
%
|
|||
FHLB advances, net
|
99,114
|
|
|
3.60
|
%
|
|
97,615
|
|
|
2.89
|
%
|
|
96,113
|
|
|
2.73
|
%
|
|||
Long-term debt, net
|
6,666
|
|
|
2.17
|
%
|
|
10,643
|
|
|
2.18
|
%
|
|
14,170
|
|
|
2.09
|
%
|
|||
|
$
|
136,535
|
|
|
3.28
|
%
|
|
$
|
146,693
|
|
|
2.60
|
%
|
|
$
|
150,654
|
|
|
2.48
|
%
|
|
2016
|
|
|
|
2015
|
|
|
|
2014
|
|
|
||||||
Maximum amount outstanding at any
|
|
|
|
|
|
|
|
|
|
|
|
||||||
month-end during the year:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Federal funds purchased
|
$
|
11,840
|
|
|
|
|
$
|
16,530
|
|
|
|
|
$
|
26,240
|
|
|
|
Short-term borrowings
|
39,000
|
|
|
|
|
72,000
|
|
|
|
|
66,000
|
|
|
|
|||
Subordinated notes, net
|
20,398
|
|
|
|
|
20,385
|
|
|
|
|
20,372
|
|
|
|
|||
FHLB advances, net
|
99,886
|
|
|
|
|
98,385
|
|
|
|
|
96,888
|
|
|
|
|||
Long-term debt, net
|
8,405
|
|
|
|
|
12,656
|
|
|
|
|
15,935
|
|
|
|
|
|
|
Payments due by period
|
||||||||||||||||
|
Total
|
|
Less than
one year
|
|
One to
three years
|
|
Three to
five years
|
|
More than
five years
|
||||||||||
Time deposits
|
$
|
116,014
|
|
|
$
|
67,142
|
|
|
$
|
42,336
|
|
|
$
|
6,536
|
|
|
$
|
—
|
|
Federal funds purchased
|
9,690
|
|
|
9,690
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Subordinated notes
|
20,619
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20,619
|
|
|||||
FHLB advances
|
105,000
|
|
|
—
|
|
|
50,000
|
|
|
55,000
|
|
|
—
|
|
|||||
Long-term debt
|
5,129
|
|
|
3,312
|
|
|
1,629
|
|
|
153
|
|
|
35
|
|
|||||
Noncancelable operating lease commitments
|
13,404
|
|
|
1,392
|
|
|
2,802
|
|
|
2,749
|
|
|
6,461
|
|
|||||
Purchase commitment
|
627
|
|
|
627
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
270,483
|
|
|
$
|
82,163
|
|
|
$
|
96,767
|
|
|
$
|
64,438
|
|
|
$
|
27,115
|
|
Scenario
|
% Change
|
|
300 basis points rising
|
0.90
|
%
|
200 basis points rising
|
0.62
|
%
|
100 basis points rising
|
0.33
|
%
|
Base
|
—
|
|
|
3 months
or less
|
|
Over 3
through 12
months
|
|
Over 1
through
5 years
|
|
Over
5 years
|
|
Total
|
||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Federal funds sold
|
$
|
35,893
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
35,893
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities available for sale
|
11,171
|
|
|
30,114
|
|
|
105,809
|
|
|
113,543
|
|
|
260,637
|
|
|||||
Securities held to maturity
|
—
|
|
|
—
|
|
|
486
|
|
|
47,900
|
|
|
48,386
|
|
|||||
Federal Home Loan Bank stock
|
10,771
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,771
|
|
|||||
Loans
|
321,431
|
|
|
192,751
|
|
|
760,900
|
|
|
124,788
|
|
|
1,399,870
|
|
|||||
Total interest-earning assets
|
379,266
|
|
|
222,865
|
|
|
867,195
|
|
|
286,231
|
|
|
1,755,557
|
|
|||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Savings, interest-bearing demand
|
|
|
|
|
|
|
|
|
|
||||||||||
and money markets
|
951,280
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
951,280
|
|
|||||
Time
|
23,485
|
|
|
43,344
|
|
|
49,185
|
|
|
—
|
|
|
116,014
|
|
|||||
Federal funds purchased
|
9,690
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,690
|
|
|||||
Long-term borrowings
|
72,057
|
|
|
84
|
|
|
53,234
|
|
|
35
|
|
|
125,410
|
|
|||||
Total interest-bearing liabilities
|
1,056,512
|
|
|
43,428
|
|
|
102,419
|
|
|
35
|
|
|
1,202,394
|
|
|||||
Interest sensitivity gap per period
|
$
|
(677,246
|
)
|
|
$
|
179,437
|
|
|
$
|
764,776
|
|
|
$
|
286,196
|
|
|
$
|
553,163
|
|
Cumulative interest sensitivity gap
|
$
|
(677,246
|
)
|
|
$
|
(497,809
|
)
|
|
$
|
266,967
|
|
|
$
|
553,163
|
|
|
$
|
553,163
|
|
Interest sensitivity gap ratio
|
0.36
|
|
|
5.13
|
|
|
8.47
|
|
|
8,178.03
|
|
|
1.46
|
|
|||||
Cumulative interest sensitivity gap ratio
|
0.36
|
|
|
0.55
|
|
|
1.22
|
|
|
1.46
|
|
|
1.46
|
|
West Bancorporation, Inc. and Subsidiary
Consolidated Statements of Income
Years Ended December 31, 2016, 2015 and 2014
|
||||||||||||
(dollars in thousands, except per share data)
|
|
2016
|
|
2015
|
|
2014
|
||||||
Interest income:
|
|
|
|
|
|
|
||||||
Loans, including fees
|
|
$
|
57,419
|
|
|
$
|
52,556
|
|
|
$
|
47,440
|
|
Investment securities:
|
|
|
|
|
|
|
|
|||||
Taxable
|
|
4,201
|
|
|
4,363
|
|
|
4,938
|
|
|||
Tax-exempt
|
|
3,266
|
|
|
3,147
|
|
|
2,878
|
|
|||
Federal funds sold
|
|
108
|
|
|
81
|
|
|
45
|
|
|||
Total interest income
|
|
64,994
|
|
|
60,147
|
|
|
55,301
|
|
|||
Interest expense:
|
|
|
|
|
|
|
|
|
||||
Deposits
|
|
3,391
|
|
|
2,185
|
|
|
2,426
|
|
|||
Federal funds purchased
|
|
5
|
|
|
9
|
|
|
11
|
|
|||
Short-term borrowings
|
|
42
|
|
|
37
|
|
|
40
|
|
|||
Subordinated notes
|
|
728
|
|
|
705
|
|
|
754
|
|
|||
Federal Home Loan Bank advances
|
|
3,565
|
|
|
2,825
|
|
|
2,628
|
|
|||
Long-term debt
|
|
145
|
|
|
232
|
|
|
297
|
|
|||
Total interest expense
|
|
7,876
|
|
|
5,993
|
|
|
6,156
|
|
|||
Net interest income
|
|
57,118
|
|
|
54,154
|
|
|
49,145
|
|
|||
Provision for loan losses
|
|
1,000
|
|
|
850
|
|
|
750
|
|
|||
Net interest income after provision for loan losses
|
|
56,118
|
|
|
53,304
|
|
|
48,395
|
|
|||
Noninterest income:
|
|
|
|
|
|
|
|
|
||||
Service charges on deposit accounts
|
|
2,461
|
|
|
2,609
|
|
|
2,790
|
|
|||
Debit card usage fees
|
|
1,825
|
|
|
1,830
|
|
|
1,764
|
|
|||
Trust services
|
|
1,310
|
|
|
1,286
|
|
|
1,327
|
|
|||
Revenue from residential mortgage banking
|
|
151
|
|
|
163
|
|
|
1,394
|
|
|||
Increase in cash value of bank-owned life insurance
|
|
647
|
|
|
727
|
|
|
731
|
|
|||
Gain from bank-owned life insurance
|
|
443
|
|
|
—
|
|
|
—
|
|
|||
Gain (loss) on disposition of premises and equipment
|
|
(4
|
)
|
|
(6
|
)
|
|
1,069
|
|
|||
Realized investment securities gains, net
|
|
66
|
|
|
47
|
|
|
223
|
|
|||
Other income
|
|
1,083
|
|
|
1,547
|
|
|
998
|
|
|||
Total noninterest income
|
|
7,982
|
|
|
8,203
|
|
|
10,296
|
|
|||
Noninterest expense:
|
|
|
|
|
|
|
|
|
||||
Salaries and employee benefits
|
|
16,731
|
|
|
16,065
|
|
|
16,086
|
|
|||
Occupancy
|
|
4,033
|
|
|
4,105
|
|
|
4,165
|
|
|||
Data processing
|
|
2,510
|
|
|
2,329
|
|
|
2,241
|
|
|||
FDIC insurance
|
|
937
|
|
|
839
|
|
|
757
|
|
|||
Other real estate owned
|
|
—
|
|
|
10
|
|
|
1,865
|
|
|||
Professional fees
|
|
774
|
|
|
748
|
|
|
944
|
|
|||
Director fees
|
|
888
|
|
|
881
|
|
|
714
|
|
|||
Other expenses
|
|
5,275
|
|
|
5,091
|
|
|
5,230
|
|
|||
Total noninterest expense
|
|
31,148
|
|
|
30,068
|
|
|
32,002
|
|
|||
Income before income taxes
|
|
32,952
|
|
|
31,439
|
|
|
26,689
|
|
|||
Income taxes
|
|
9,936
|
|
|
9,697
|
|
|
6,649
|
|
|||
Net income
|
|
$
|
23,016
|
|
|
$
|
21,742
|
|
|
$
|
20,040
|
|
|
|
|
|
|
|
|
||||||
Basic earnings per common share
|
|
$
|
1.43
|
|
|
$
|
1.35
|
|
|
$
|
1.25
|
|
Diluted earnings per common share
|
|
$
|
1.42
|
|
|
$
|
1.35
|
|
|
$
|
1.25
|
|
West Bancorporation, Inc. and Subsidiary
Consolidated Statements of Comprehensive Income
Years Ended December 31, 2016, 2015 and 2014
|
||||||||||||
(dollars in thousands)
|
|
2016
|
|
2015
|
|
2014
|
||||||
Net income
|
|
$
|
23,016
|
|
|
$
|
21,742
|
|
|
$
|
20,040
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
||||||
Unrealized gains on securities for which a portion of an other than temporary impairment has been recorded in earnings:
|
|
|
|
|
|
|
||||||
Unrealized holding gains arising during the period
|
|
—
|
|
|
—
|
|
|
1,828
|
|
|||
Less: reclassification adjustment for net loss realized in net income
|
|
—
|
|
|
—
|
|
|
493
|
|
|||
Income tax (expense)
|
|
—
|
|
|
—
|
|
|
(882
|
)
|
|||
Other comprehensive income on available for sale securities with other than temporary impairment
|
|
—
|
|
|
—
|
|
|
1,439
|
|
|||
Unrealized gains (losses) on securities without other than temporary impairment:
|
|
|
|
|
|
|
||||||
Unrealized holding gains (losses) arising during the period
|
|
(2,249
|
)
|
|
(33
|
)
|
|
8,201
|
|
|||
Less: reclassification adjustment for net (gains) realized in net income
|
|
(66
|
)
|
|
(47
|
)
|
|
(716
|
)
|
|||
Less: reclassification adjustment for amortization of net unrealized gains on securities transferred from available for sale to held to maturity, realized in interest income
|
|
(128
|
)
|
|
(39
|
)
|
|
(13
|
)
|
|||
Income tax (expense) benefit
|
|
929
|
|
|
45
|
|
|
(2,839
|
)
|
|||
Other comprehensive income (loss) on available for sale securities without other than temporary impairment
|
|
(1,514
|
)
|
|
(74
|
)
|
|
4,633
|
|
|||
Unrealized gains (losses) on derivatives:
|
|
|
|
|
|
|
||||||
Unrealized gains (losses) on derivatives arising during the period
|
|
882
|
|
|
(1,144
|
)
|
|
(3,759
|
)
|
|||
Less: reclassification adjustment for net loss on derivatives realized
in net income
|
|
464
|
|
|
89
|
|
|
83
|
|
|||
Less: reclassification adjustment for amortization of derivative termination costs, realized in interest expense
|
|
109
|
|
|
71
|
|
|
—
|
|
|||
Income tax (expense) benefit
|
|
(553
|
)
|
|
374
|
|
|
1,396
|
|
|||
Other comprehensive income (loss) on derivatives
|
|
902
|
|
|
(610
|
)
|
|
(2,280
|
)
|
|||
Total other comprehensive income (loss)
|
|
(612
|
)
|
|
(684
|
)
|
|
3,792
|
|
|||
Comprehensive income
|
|
$
|
22,404
|
|
|
$
|
21,058
|
|
|
$
|
23,832
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
Additional
|
|
|
|
Other
|
|
|
|||||||||||||
|
|
Preferred
|
|
Common Stock
|
|
Paid-in
|
|
Retained
|
|
Comprehensive
|
|
|
|||||||||||||||
(in thousands, except share and per share data)
|
|
Stock
|
|
Shares
|
|
Amount
|
|
Capital
|
|
Earnings
|
|
Income (Loss)
|
|
Total
|
|||||||||||||
Balance, December 31, 2013
|
|
$
|
—
|
|
|
15,976,204
|
|
|
$
|
3,000
|
|
|
$
|
18,411
|
|
|
$
|
105,752
|
|
|
$
|
(3,538
|
)
|
|
$
|
123,625
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20,040
|
|
|
—
|
|
|
20,040
|
|
||||||
Other comprehensive income, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,792
|
|
|
3,792
|
|
||||||
Cash dividends declared, $0.49 per common share
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,842
|
)
|
|
—
|
|
|
(7,842
|
)
|
||||||
Stock-based compensation costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
633
|
|
|
—
|
|
|
—
|
|
|
633
|
|
||||||
Issuance of common stock upon vesting of restricted stock units, net of shares withheld for payroll taxes
|
|
—
|
|
|
42,530
|
|
|
—
|
|
|
(189
|
)
|
|
—
|
|
|
—
|
|
|
(189
|
)
|
||||||
Excess tax benefits from vesting of restricted stock units
|
|
—
|
|
|
—
|
|
|
—
|
|
|
116
|
|
|
—
|
|
|
—
|
|
|
116
|
|
||||||
Balance, December 31, 2014
|
|
—
|
|
|
16,018,734
|
|
|
3,000
|
|
|
18,971
|
|
|
117,950
|
|
|
254
|
|
|
140,175
|
|
||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21,742
|
|
|
—
|
|
|
21,742
|
|
||||||
Other comprehensive loss, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(684
|
)
|
|
(684
|
)
|
||||||
Cash dividends declared, $0.62 per common share
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,952
|
)
|
|
—
|
|
|
(9,952
|
)
|
||||||
Stock-based compensation costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,166
|
|
|
—
|
|
|
—
|
|
|
1,166
|
|
||||||
Issuance of common stock upon vesting of restricted stock units, net of shares withheld for payroll taxes
|
|
—
|
|
|
45,701
|
|
|
—
|
|
|
(225
|
)
|
|
—
|
|
|
—
|
|
|
(225
|
)
|
||||||
Excess tax benefits from vesting of restricted stock units
|
|
—
|
|
|
—
|
|
|
—
|
|
|
155
|
|
|
—
|
|
|
—
|
|
|
155
|
|
||||||
Balance, December 31, 2015
|
|
—
|
|
|
16,064,435
|
|
|
3,000
|
|
|
20,067
|
|
|
129,740
|
|
|
(430
|
)
|
|
152,377
|
|
||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,016
|
|
|
—
|
|
|
23,016
|
|
||||||
Other comprehensive loss, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(612
|
)
|
|
(612
|
)
|
||||||
Cash dividends declared, $0.67 per common share
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,800
|
)
|
|
—
|
|
|
(10,800
|
)
|
||||||
Stock-based compensation costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,684
|
|
|
—
|
|
|
—
|
|
|
1,684
|
|
||||||
Issuance of common stock upon vesting of restricted stock units, net of shares withheld for payroll taxes
|
|
—
|
|
|
73,564
|
|
|
—
|
|
|
(394
|
)
|
|
—
|
|
|
—
|
|
|
(394
|
)
|
||||||
Excess tax benefits from vesting of restricted stock units
|
|
—
|
|
|
—
|
|
|
—
|
|
|
105
|
|
|
—
|
|
|
—
|
|
|
105
|
|
||||||
Balance, December 31, 2016
|
|
$
|
—
|
|
|
16,137,999
|
|
|
$
|
3,000
|
|
|
$
|
21,462
|
|
|
$
|
141,956
|
|
|
$
|
(1,042
|
)
|
|
$
|
165,376
|
|
West Bancorporation, Inc. and Subsidiary
Consolidated Statements of Cash Flows
Years Ended December 31, 2016, 2015 and 2014
|
||||||||||||
(dollars in thousands)
|
|
2016
|
|
2015
|
|
2014
|
||||||
Cash Flows from Operating Activities:
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
23,016
|
|
|
$
|
21,742
|
|
|
$
|
20,040
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
||||||
Provision for loan losses
|
|
1,000
|
|
|
850
|
|
|
750
|
|
|||
Net amortization and accretion
|
|
4,290
|
|
|
3,892
|
|
|
3,767
|
|
|||
(Gain) loss on disposition of premises and equipment
|
|
4
|
|
|
6
|
|
|
(1,069
|
)
|
|||
Investment securities gains, net
|
|
(66
|
)
|
|
(47
|
)
|
|
(223
|
)
|
|||
Stock-based compensation
|
|
1,684
|
|
|
1,166
|
|
|
633
|
|
|||
Gain on sale of loans held for sale
|
|
—
|
|
|
(14
|
)
|
|
(1,247
|
)
|
|||
Proceeds from sales of loans held for sale
|
|
—
|
|
|
840
|
|
|
63,314
|
|
|||
Originations of loans held for sale
|
|
—
|
|
|
—
|
|
|
(60,663
|
)
|
|||
Write-down of other real estate owned
|
|
—
|
|
|
—
|
|
|
1,786
|
|
|||
Increase in cash value of bank-owned life insurance
|
|
(647
|
)
|
|
(727
|
)
|
|
(731
|
)
|
|||
Gain from bank-owned life insurance
|
|
(443
|
)
|
|
—
|
|
|
—
|
|
|||
Depreciation
|
|
1,046
|
|
|
921
|
|
|
853
|
|
|||
Deferred income taxes
|
|
89
|
|
|
82
|
|
|
535
|
|
|||
Excess tax benefits from vesting of restricted stock units
|
|
(105
|
)
|
|
(155
|
)
|
|
(116
|
)
|
|||
Change in assets and liabilities:
|
|
|
|
|
|
|
|
|||||
(Increase) in accrued interest receivable
|
|
(633
|
)
|
|
(263
|
)
|
|
(418
|
)
|
|||
(Increase) decrease in other assets
|
|
(89
|
)
|
|
2,945
|
|
|
(448
|
)
|
|||
Increase (decrease) in accrued expenses and other liabilities
|
|
1,047
|
|
|
(196
|
)
|
|
(476
|
)
|
|||
Net cash provided by operating activities
|
|
30,193
|
|
|
31,042
|
|
|
26,287
|
|
|||
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
|
|
||||
Proceeds from sales of securities available for sale
|
|
3,054
|
|
|
16,946
|
|
|
36,582
|
|
|||
Proceeds from maturities and calls of investment securities
|
|
58,358
|
|
|
49,665
|
|
|
56,450
|
|
|||
Purchases of securities available for sale
|
|
(3,500
|
)
|
|
(116,824
|
)
|
|
(67,770
|
)
|
|||
Purchases of Federal Home Loan Bank stock
|
|
(17,407
|
)
|
|
(19,986
|
)
|
|
(29,064
|
)
|
|||
Proceeds from redemption of Federal Home Loan Bank stock
|
|
19,083
|
|
|
22,614
|
|
|
25,840
|
|
|||
Net increase in loans
|
|
(153,037
|
)
|
|
(62,133
|
)
|
|
(193,585
|
)
|
|||
Proceeds from sales of other real estate owned
|
|
—
|
|
|
2,227
|
|
|
2,103
|
|
|||
Proceeds from sales of premises and equipment
|
|
—
|
|
|
—
|
|
|
3,013
|
|
|||
Purchases of premises and equipment
|
|
(12,802
|
)
|
|
(2,502
|
)
|
|
(5,298
|
)
|
|||
Purchase of bank-owned life insurance
|
|
—
|
|
|
—
|
|
|
(5,000
|
)
|
|||
Proceeds of principal and earnings from bank-owned life insurance
|
|
812
|
|
|
—
|
|
|
—
|
|
|||
Proceeds from settlement of other assets
|
|
—
|
|
|
3,593
|
|
|
—
|
|
|||
Net cash used in investing activities
|
|
(105,439
|
)
|
|
(106,400
|
)
|
|
(176,729
|
)
|
|||
Cash Flows from Financing Activities:
|
|
|
|
|
|
|
||||||
Net increase in deposits
|
|
105,876
|
|
|
170,267
|
|
|
106,620
|
|
|||
Net increase (decrease) in federal funds purchased
|
|
6,930
|
|
|
(215
|
)
|
|
(13,647
|
)
|
|||
Net increase (decrease) in short-term borrowings
|
|
(19,000
|
)
|
|
(47,000
|
)
|
|
66,000
|
|
|||
Principal payments on long-term debt
|
|
(3,286
|
)
|
|
(4,261
|
)
|
|
(3,260
|
)
|
|||
Interest rate swap termination costs paid
|
|
—
|
|
|
(541
|
)
|
|
—
|
|
|||
Common stock dividends paid
|
|
(10,800
|
)
|
|
(9,952
|
)
|
|
(7,842
|
)
|
|||
Restricted stock units withheld for payroll taxes
|
|
(394
|
)
|
|
(225
|
)
|
|
(189
|
)
|
|||
Excess tax benefits from vesting of restricted stock units
|
|
105
|
|
|
155
|
|
|
116
|
|
|||
Net cash provided by financing activities
|
|
79,431
|
|
|
108,228
|
|
|
147,798
|
|
|||
Net increase (decrease) in cash and cash equivalents
|
|
4,185
|
|
|
32,870
|
|
|
(2,644
|
)
|
|||
Cash and Cash Equivalents:
|
|
|
|
|
|
|
||||||
Beginning
|
|
72,651
|
|
|
39,781
|
|
|
42,425
|
|
|||
Ending
|
|
$
|
76,836
|
|
|
$
|
72,651
|
|
|
$
|
39,781
|
|
|
|
|
|
|
|
|
West Bancorporation, Inc. and Subsidiary
Consolidated Statements of Cash Flows (continued)
Years Ended December 31, 2016, 2015 and 2014
|
||||||||||||
(dollars in thousands)
|
|
2016
|
|
2015
|
|
2014
|
||||||
Supplemental Disclosure of Cash Flow Information:
|
|
|
|
|
|
|
||||||
Cash payments for:
|
|
|
|
|
|
|
||||||
Interest
|
|
$
|
7,940
|
|
|
$
|
6,069
|
|
|
$
|
6,166
|
|
Income taxes
|
|
7,870
|
|
|
6,700
|
|
|
7,045
|
|
|||
|
|
|
|
|
|
|
||||||
Supplemental Disclosure of Noncash Investing and Financing Activities:
|
|
|
|
|
|
|
||||||
Transfer of loans to other real estate owned
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
394
|
|
Transfer of investment securities available for sale to investment securities held to maturity
|
|
—
|
|
|
—
|
|
|
50,882
|
|
|||
Transfer of investment securities available for sale to other assets, sale not settled
|
|
—
|
|
|
—
|
|
|
3,593
|
|
(dollars and number of shares in thousands, except per share data)
|
2016
|
|
2015
|
|
2014
|
||||||
Net income
|
$
|
23,016
|
|
|
$
|
21,742
|
|
|
$
|
20,040
|
|
|
|
|
|
|
|
|
|
|
|||
Weighted average common shares outstanding
|
16,117
|
|
|
16,050
|
|
|
16,004
|
|
|||
Weighted average effect of restricted stock units outstanding
|
54
|
|
|
46
|
|
|
38
|
|
|||
Diluted weighted average common shares outstanding
|
16,171
|
|
|
16,096
|
|
|
16,042
|
|
|||
|
|
|
|
|
|
|
|
|
|||
Basic earnings per common share
|
$
|
1.43
|
|
|
$
|
1.35
|
|
|
$
|
1.25
|
|
Diluted earnings per common share
|
$
|
1.42
|
|
|
$
|
1.35
|
|
|
$
|
1.25
|
|
Number of anti-dilutive common stock equivalents excluded from diluted earnings per share computation
|
102
|
|
|
140
|
|
|
—
|
|
|
2016
|
||||||||||||||
|
Amortized
Cost
|
|
Gross Unrealized
Gains
|
|
Gross Unrealized
(Losses)
|
|
Fair
Value
|
||||||||
Securities available for sale:
|
|
|
|
|
|
|
|
||||||||
U.S. government agencies and corporations
|
$
|
2,524
|
|
|
$
|
69
|
|
|
$
|
—
|
|
|
$
|
2,593
|
|
State and political subdivisions
|
64,551
|
|
|
376
|
|
|
(591
|
)
|
|
64,336
|
|
||||
Collateralized mortgage obligations
(1)
|
103,038
|
|
|
255
|
|
|
(1,343
|
)
|
|
101,950
|
|
||||
Mortgage-backed securities
(1)
|
80,614
|
|
|
341
|
|
|
(797
|
)
|
|
80,158
|
|
||||
Trust preferred security
|
1,784
|
|
|
—
|
|
|
(534
|
)
|
|
1,250
|
|
||||
Corporate notes
|
10,326
|
|
|
25
|
|
|
(1
|
)
|
|
10,350
|
|
||||
|
$
|
262,837
|
|
|
$
|
1,066
|
|
|
$
|
(3,266
|
)
|
|
$
|
260,637
|
|
|
|
|
|
|
|
|
|
||||||||
Securities held to maturity:
|
|
|
|
|
|
|
|
||||||||
State and political subdivisions
|
$
|
48,386
|
|
|
$
|
70
|
|
|
$
|
(667
|
)
|
|
$
|
47,789
|
|
|
2015
|
||||||||||||||
|
Amortized
Cost
|
|
Gross Unrealized
Gains
|
|
Gross Unrealized
(Losses)
|
|
Fair
Value
|
||||||||
Securities available for sale:
|
|
|
|
|
|
|
|
||||||||
U.S. government agencies and corporations
|
$
|
2,551
|
|
|
$
|
141
|
|
|
$
|
—
|
|
|
$
|
2,692
|
|
State and political subdivisions
|
71,431
|
|
|
1,669
|
|
|
(21
|
)
|
|
73,079
|
|
||||
Collateralized mortgage obligations
(1)
|
133,414
|
|
|
491
|
|
|
(1,290
|
)
|
|
132,615
|
|
||||
Mortgage-backed securities
(1)
|
101,299
|
|
|
485
|
|
|
(696
|
)
|
|
101,088
|
|
||||
Trust preferred security
|
1,773
|
|
|
—
|
|
|
(668
|
)
|
|
1,105
|
|
||||
Corporate notes and equity securities
|
10,130
|
|
|
61
|
|
|
(56
|
)
|
|
10,135
|
|
||||
|
$
|
320,598
|
|
|
$
|
2,847
|
|
|
$
|
(2,731
|
)
|
|
$
|
320,714
|
|
|
|
|
|
|
|
|
|
||||||||
Securities held to maturity:
|
|
|
|
|
|
|
|
||||||||
State and political subdivisions
|
$
|
51,259
|
|
|
$
|
883
|
|
|
$
|
(224
|
)
|
|
$
|
51,918
|
|
|
2016
|
||||||
|
Amortized Cost
|
|
Fair Value
|
||||
Due in one year or less
|
$
|
6,027
|
|
|
$
|
6,101
|
|
Due after one year through five years
|
11,725
|
|
|
11,809
|
|
||
Due after five years through ten years
|
38,274
|
|
|
37,996
|
|
||
Due after ten years
|
23,159
|
|
|
22,623
|
|
||
|
79,185
|
|
|
78,529
|
|
||
Collateralized mortgage obligations and mortgage-backed securities
|
183,652
|
|
|
182,108
|
|
||
|
$
|
262,837
|
|
|
$
|
260,637
|
|
|
2016
|
||||||
|
Amortized Cost
|
|
Fair Value
|
||||
Due after one year through five years
|
$
|
486
|
|
|
$
|
474
|
|
Due after five years through ten years
|
19,370
|
|
|
19,110
|
|
||
Due after ten years
|
28,530
|
|
|
28,205
|
|
||
|
$
|
48,386
|
|
|
$
|
47,789
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Proceeds from sales
|
$
|
3,054
|
|
|
$
|
16,946
|
|
|
$
|
36,582
|
|
Gross gains on sales
|
66
|
|
|
54
|
|
|
1,050
|
|
|||
Gross losses on sales
|
—
|
|
|
7
|
|
|
827
|
|
|
|
2016
|
||||||||||||||||||||||
|
|
Less than 12 months
|
|
12 months or longer
|
|
Total
|
||||||||||||||||||
|
|
Fair
Value
|
|
Gross Unrealized
Losses
|
|
Fair
Value
|
|
Gross Unrealized
Losses
|
|
Fair
Value
|
|
Gross Unrealized
Losses
|
||||||||||||
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government agencies and corporations
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
State and political subdivisions
|
|
34,903
|
|
|
(591
|
)
|
|
—
|
|
|
—
|
|
|
34,903
|
|
|
(591
|
)
|
||||||
Collateralized mortgage obligations
|
|
75,771
|
|
|
(1,255
|
)
|
|
2,538
|
|
|
(88
|
)
|
|
78,309
|
|
|
(1,343
|
)
|
||||||
Mortgage-backed securities
|
|
60,221
|
|
|
(797
|
)
|
|
—
|
|
|
—
|
|
|
60,221
|
|
|
(797
|
)
|
||||||
Trust preferred security
|
|
—
|
|
|
—
|
|
|
1,250
|
|
|
(534
|
)
|
|
1,250
|
|
|
(534
|
)
|
||||||
Corporate notes
|
|
1,499
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
1,499
|
|
|
(1
|
)
|
||||||
|
|
$
|
172,394
|
|
|
$
|
(2,644
|
)
|
|
$
|
3,788
|
|
|
$
|
(622
|
)
|
|
$
|
176,182
|
|
|
$
|
(3,266
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
State and political subdivisions
|
|
$
|
32,976
|
|
|
$
|
(458
|
)
|
|
$
|
3,968
|
|
|
$
|
(209
|
)
|
|
$
|
36,944
|
|
|
$
|
(667
|
)
|
|
|
2015
|
||||||||||||||||||||||
|
|
Less than 12 months
|
|
12 months or longer
|
|
Total
|
||||||||||||||||||
|
|
Fair
Value
|
|
Gross Unrealized
Losses
|
|
Fair
Value
|
|
Gross Unrealized
Losses
|
|
Fair
Value
|
|
Gross Unrealized
Losses
|
||||||||||||
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government agencies and corporations
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
State and political subdivisions
|
|
321
|
|
|
(1
|
)
|
|
2,053
|
|
|
(20
|
)
|
|
2,374
|
|
|
(21
|
)
|
||||||
Collateralized mortgage obligations
|
|
53,043
|
|
|
(449
|
)
|
|
38,286
|
|
|
(841
|
)
|
|
91,329
|
|
|
(1,290
|
)
|
||||||
Mortgage-backed securities
|
|
67,662
|
|
|
(600
|
)
|
|
7,200
|
|
|
(96
|
)
|
|
74,862
|
|
|
(696
|
)
|
||||||
Trust preferred security
|
|
—
|
|
|
—
|
|
|
1,105
|
|
|
(668
|
)
|
|
1,105
|
|
|
(668
|
)
|
||||||
Corporate notes and equity securities
|
|
4,500
|
|
|
(56
|
)
|
|
—
|
|
|
—
|
|
|
4,500
|
|
|
(56
|
)
|
||||||
|
|
$
|
125,526
|
|
|
$
|
(1,106
|
)
|
|
$
|
48,644
|
|
|
$
|
(1,625
|
)
|
|
$
|
174,170
|
|
|
$
|
(2,731
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
State and political subdivisions
|
|
$
|
2,832
|
|
|
$
|
(42
|
)
|
|
$
|
7,341
|
|
|
$
|
(182
|
)
|
|
$
|
10,173
|
|
|
$
|
(224
|
)
|
|
2016
|
|
2015
|
||||
Commercial
|
$
|
334,014
|
|
|
$
|
349,051
|
|
Real estate:
|
|
|
|
|
|||
Construction, land and land development
|
205,610
|
|
|
174,602
|
|
||
1-4 family residential first mortgages
|
47,184
|
|
|
51,370
|
|
||
Home equity
|
18,057
|
|
|
21,749
|
|
||
Commercial
|
788,000
|
|
|
644,176
|
|
||
Consumer and other loans
|
8,355
|
|
|
6,801
|
|
||
|
1,401,220
|
|
|
1,247,749
|
|
||
Net unamortized fees and costs
|
(1,350
|
)
|
|
(1,061
|
)
|
||
|
$
|
1,399,870
|
|
|
$
|
1,246,688
|
|
|
2016
|
|
2015
|
||||
Balance, beginning of year
|
$
|
138,706
|
|
|
$
|
129,780
|
|
New loans
|
60,712
|
|
|
37,049
|
|
||
Repayments
|
(7,721
|
)
|
|
(28,123
|
)
|
||
Balance, end of year
|
$
|
191,697
|
|
|
$
|
138,706
|
|
|
2016
|
|
2015
|
||||
Troubled debt restructured loans
(1)
:
|
|
|
|
||||
Commercial
|
$
|
91
|
|
|
$
|
102
|
|
Real estate:
|
|
|
|
||||
Construction, land and land development
|
—
|
|
|
60
|
|
||
1-4 family residential first mortgages
|
—
|
|
|
86
|
|
||
Home equity
|
—
|
|
|
—
|
|
||
Commercial
|
335
|
|
|
445
|
|
||
Consumer and other loans
|
—
|
|
|
—
|
|
||
Total troubled debt restructured loans
|
$
|
426
|
|
|
$
|
693
|
|
(1)
|
There were
two
TDR loans as of
December 31, 2016
and
three
TDR loans as of
December 31, 2015
, with balances of
$426
and
$613
, respectively, included in the nonaccrual category.
|
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||||||||||||||||
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
||||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
|
$
|
35
|
|
|
$
|
35
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction, land and land development
|
|
—
|
|
|
—
|
|
|
—
|
|
|
60
|
|
|
663
|
|
|
—
|
|
||||||
1-4 family residential first mortgages
|
|
108
|
|
|
108
|
|
|
—
|
|
|
352
|
|
|
360
|
|
|
—
|
|
||||||
Home equity
|
|
41
|
|
|
41
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Commercial
|
|
335
|
|
|
335
|
|
|
—
|
|
|
482
|
|
|
482
|
|
|
—
|
|
||||||
Consumer and other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
|
519
|
|
|
519
|
|
|
—
|
|
|
894
|
|
|
1,505
|
|
|
—
|
|
||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
|
91
|
|
|
91
|
|
|
91
|
|
|
142
|
|
|
142
|
|
|
142
|
|
||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction, land and land development
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
1-4 family residential first mortgages
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Home equity
|
|
276
|
|
|
276
|
|
|
276
|
|
|
270
|
|
|
270
|
|
|
270
|
|
||||||
Commercial
|
|
136
|
|
|
136
|
|
|
136
|
|
|
155
|
|
|
155
|
|
|
155
|
|
||||||
Consumer and other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
|
503
|
|
|
503
|
|
|
503
|
|
|
567
|
|
|
567
|
|
|
567
|
|
||||||
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
|
126
|
|
|
126
|
|
|
91
|
|
|
142
|
|
|
142
|
|
|
142
|
|
||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction, land and land development
|
|
—
|
|
|
—
|
|
|
—
|
|
|
60
|
|
|
663
|
|
|
—
|
|
||||||
1-4 family residential first mortgages
|
|
108
|
|
|
108
|
|
|
—
|
|
|
352
|
|
|
360
|
|
|
—
|
|
||||||
Home equity
|
|
317
|
|
|
317
|
|
|
276
|
|
|
270
|
|
|
270
|
|
|
270
|
|
||||||
Commercial
|
|
471
|
|
|
471
|
|
|
136
|
|
|
637
|
|
|
637
|
|
|
155
|
|
||||||
Consumer and other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total impaired loans
|
|
$
|
1,022
|
|
|
$
|
1,022
|
|
|
$
|
503
|
|
|
$
|
1,461
|
|
|
$
|
2,072
|
|
|
$
|
567
|
|
|
|
December 31, 2016
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||||||||||||
|
|
Average Recorded Investment
|
|
Interest Income Recognized
|
|
Average Recorded Investment
|
|
Interest Income Recognized
|
|
Average Recorded Investment
|
|
Interest Income Recognized
|
||||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
116
|
|
|
$
|
—
|
|
|
$
|
271
|
|
|
$
|
—
|
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction, land and
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
land development
|
|
8
|
|
|
—
|
|
|
259
|
|
|
10
|
|
|
397
|
|
|
15
|
|
||||||
1-4 family residential first mortgages
|
|
212
|
|
|
1
|
|
|
311
|
|
|
1
|
|
|
355
|
|
|
7
|
|
||||||
Home equity
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
||||||
Commercial
|
|
393
|
|
|
—
|
|
|
952
|
|
|
—
|
|
|
674
|
|
|
6
|
|
||||||
Consumer and other
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
|
619
|
|
|
1
|
|
|
1,640
|
|
|
11
|
|
|
1,704
|
|
|
28
|
|
||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
|
127
|
|
|
—
|
|
|
204
|
|
|
2
|
|
|
544
|
|
|
11
|
|
||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction, land and
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
land development
|
|
—
|
|
|
—
|
|
|
190
|
|
|
6
|
|
|
1,423
|
|
|
66
|
|
||||||
1-4 family residential first mortgages
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
144
|
|
|
—
|
|
||||||
Home equity
|
|
263
|
|
|
—
|
|
|
237
|
|
|
—
|
|
|
125
|
|
|
—
|
|
||||||
Commercial
|
|
145
|
|
|
—
|
|
|
164
|
|
|
—
|
|
|
54
|
|
|
—
|
|
||||||
Consumer and other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
|
535
|
|
|
—
|
|
|
795
|
|
|
8
|
|
|
2,290
|
|
|
77
|
|
||||||
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
|
130
|
|
|
—
|
|
|
320
|
|
|
2
|
|
|
815
|
|
|
11
|
|
||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction, land and
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
land development
|
|
8
|
|
|
—
|
|
|
449
|
|
|
16
|
|
|
1,820
|
|
|
81
|
|
||||||
1-4 family residential first mortgages
|
|
212
|
|
|
1
|
|
|
311
|
|
|
1
|
|
|
499
|
|
|
7
|
|
||||||
Home equity
|
|
266
|
|
|
—
|
|
|
237
|
|
|
—
|
|
|
132
|
|
|
—
|
|
||||||
Commercial
|
|
538
|
|
|
—
|
|
|
1,116
|
|
|
—
|
|
|
728
|
|
|
6
|
|
||||||
Consumer and other
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total impaired loans
|
|
$
|
1,154
|
|
|
$
|
1
|
|
|
$
|
2,435
|
|
|
$
|
19
|
|
|
$
|
3,994
|
|
|
$
|
105
|
|
|
|
December 31, 2016
|
||||||||||||||||||||||||||
|
|
30-59
Days Past
Due
|
|
60-89 Days Past Due
|
|
90 Days or More Past Due
|
|
Total
Past Due
|
|
Current
|
|
Nonaccrual Loans
|
|
Total Loans
|
||||||||||||||
Commercial
|
|
$
|
109
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
109
|
|
|
$
|
333,779
|
|
|
$
|
126
|
|
|
$
|
334,014
|
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction, land and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
land development
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
205,610
|
|
|
—
|
|
|
205,610
|
|
|||||||
1-4 family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
first mortgages
|
|
64
|
|
|
—
|
|
|
—
|
|
|
64
|
|
|
47,012
|
|
|
108
|
|
|
47,184
|
|
|||||||
Home equity
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17,740
|
|
|
317
|
|
|
18,057
|
|
|||||||
Commercial
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
787,529
|
|
|
471
|
|
|
788,000
|
|
|||||||
Consumer and other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,355
|
|
|
—
|
|
|
8,355
|
|
|||||||
Total
|
|
$
|
173
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
173
|
|
|
$
|
1,400,025
|
|
|
$
|
1,022
|
|
|
$
|
1,401,220
|
|
|
|
December 31, 2015
|
||||||||||||||||||||||||||
|
|
30-59
Days Past
Due
|
|
60-89 Days Past Due
|
|
90 Days or More Past Due
|
|
Total
Past Due
|
|
Current
|
|
Nonaccrual Loans
|
|
Total Loans
|
||||||||||||||
Commercial
|
|
$
|
1
|
|
|
$
|
38
|
|
|
$
|
—
|
|
|
$
|
39
|
|
|
$
|
348,870
|
|
|
$
|
142
|
|
|
$
|
349,051
|
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction, land and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
land development
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
174,602
|
|
|
—
|
|
|
174,602
|
|
|||||||
1-4 family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
first mortgages
|
|
317
|
|
|
—
|
|
|
—
|
|
|
317
|
|
|
50,721
|
|
|
332
|
|
|
51,370
|
|
|||||||
Home equity
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21,479
|
|
|
270
|
|
|
21,749
|
|
|||||||
Commercial
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
643,539
|
|
|
637
|
|
|
644,176
|
|
|||||||
Consumer and other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,801
|
|
|
—
|
|
|
6,801
|
|
|||||||
Total
|
|
$
|
318
|
|
|
$
|
38
|
|
|
$
|
—
|
|
|
$
|
356
|
|
|
$
|
1,246,012
|
|
|
$
|
1,381
|
|
|
$
|
1,247,749
|
|
|
|
December 31, 2016
|
||||||||||||||||||
|
|
Pass
|
|
Watch
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
Commercial
|
|
$
|
329,366
|
|
|
$
|
3,303
|
|
|
$
|
1,345
|
|
|
$
|
—
|
|
|
$
|
334,014
|
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction, land and land development
|
|
204,572
|
|
|
—
|
|
|
1,038
|
|
|
—
|
|
|
205,610
|
|
|||||
1-4 family residential first mortgages
|
|
46,278
|
|
|
798
|
|
|
108
|
|
|
—
|
|
|
47,184
|
|
|||||
Home equity
|
|
17,646
|
|
|
—
|
|
|
411
|
|
|
—
|
|
|
18,057
|
|
|||||
Commercial
|
|
769,010
|
|
|
18,392
|
|
|
598
|
|
|
—
|
|
|
788,000
|
|
|||||
Consumer and other
|
|
8,355
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,355
|
|
|||||
Total
|
|
$
|
1,375,227
|
|
|
$
|
22,493
|
|
|
$
|
3,500
|
|
|
$
|
—
|
|
|
$
|
1,401,220
|
|
|
|
December 31, 2015
|
||||||||||||||||||
|
|
Pass
|
|
Watch
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
Commercial
|
|
$
|
344,650
|
|
|
$
|
2,936
|
|
|
$
|
1,465
|
|
|
$
|
—
|
|
|
$
|
349,051
|
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction, land and land development
|
|
173,373
|
|
|
—
|
|
|
1,229
|
|
|
—
|
|
|
174,602
|
|
|||||
1-4 family residential first mortgages
|
|
50,375
|
|
|
517
|
|
|
478
|
|
|
—
|
|
|
51,370
|
|
|||||
Home equity
|
|
21,401
|
|
|
68
|
|
|
280
|
|
|
—
|
|
|
21,749
|
|
|||||
Commercial
|
|
619,608
|
|
|
22,977
|
|
|
1,591
|
|
|
—
|
|
|
644,176
|
|
|||||
Consumer and other
|
|
6,786
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
6,801
|
|
|||||
Total
|
|
$
|
1,216,193
|
|
|
$
|
26,498
|
|
|
$
|
5,058
|
|
|
$
|
—
|
|
|
$
|
1,247,749
|
|
|
2016
|
||||||||||||||||||||||||||
|
|
|
Real Estate
|
|
|
|
|
||||||||||||||||||||
|
Commercial
|
|
Construction and Land
|
|
1-4 Family Residential
|
|
Home Equity
|
|
Commercial
|
|
Consumer and Other
|
|
Total
|
||||||||||||||
Beginning balance
|
$
|
4,369
|
|
|
$
|
2,338
|
|
|
$
|
508
|
|
|
$
|
481
|
|
|
$
|
7,254
|
|
|
$
|
17
|
|
|
$
|
14,967
|
|
Charge-offs
|
(125
|
)
|
|
(141
|
)
|
|
(93
|
)
|
|
—
|
|
|
—
|
|
|
(47
|
)
|
|
(406
|
)
|
|||||||
Recoveries
|
218
|
|
|
217
|
|
|
59
|
|
|
36
|
|
|
13
|
|
|
8
|
|
|
551
|
|
|||||||
Provision
(1)
|
(581
|
)
|
|
225
|
|
|
(157
|
)
|
|
(39
|
)
|
|
1,430
|
|
|
122
|
|
|
1,000
|
|
|||||||
Ending balance
|
$
|
3,881
|
|
|
$
|
2,639
|
|
|
$
|
317
|
|
|
$
|
478
|
|
|
$
|
8,697
|
|
|
$
|
100
|
|
|
$
|
16,112
|
|
|
2015
|
||||||||||||||||||||||||||
|
|
|
Real Estate
|
|
|
|
|
||||||||||||||||||||
|
Commercial
|
|
Construction and Land
|
|
1-4 Family Residential
|
|
Home Equity
|
|
Commercial
|
|
Consumer and Other
|
|
Total
|
||||||||||||||
Beginning balance
|
$
|
4,415
|
|
|
$
|
2,151
|
|
|
$
|
466
|
|
|
$
|
534
|
|
|
$
|
6,013
|
|
|
$
|
28
|
|
|
$
|
13,607
|
|
Charge-offs
|
(408
|
)
|
|
—
|
|
|
(23
|
)
|
|
(2
|
)
|
|
—
|
|
|
(6
|
)
|
|
(439
|
)
|
|||||||
Recoveries
|
579
|
|
|
250
|
|
|
7
|
|
|
87
|
|
|
12
|
|
|
14
|
|
|
949
|
|
|||||||
Provision
(1)
|
(217
|
)
|
|
(63
|
)
|
|
58
|
|
|
(138
|
)
|
|
1,229
|
|
|
(19
|
)
|
|
850
|
|
|||||||
Ending balance
|
$
|
4,369
|
|
|
$
|
2,338
|
|
|
$
|
508
|
|
|
$
|
481
|
|
|
$
|
7,254
|
|
|
$
|
17
|
|
|
$
|
14,967
|
|
|
2014
|
||||||||||||||||||||||||||
|
|
|
Real Estate
|
|
|
|
|
||||||||||||||||||||
|
Commercial
|
|
Construction and Land
|
|
1-4 Family Residential
|
|
Home Equity
|
|
Commercial
|
|
Consumer and Other
|
|
Total
|
||||||||||||||
Beginning balance
|
$
|
4,199
|
|
|
$
|
3,032
|
|
|
$
|
613
|
|
|
$
|
403
|
|
|
$
|
5,485
|
|
|
$
|
59
|
|
|
$
|
13,791
|
|
Charge-offs
|
(836
|
)
|
|
—
|
|
|
(131
|
)
|
|
(138
|
)
|
|
(112
|
)
|
|
—
|
|
|
(1,217
|
)
|
|||||||
Recoveries
|
116
|
|
|
8
|
|
|
45
|
|
|
99
|
|
|
11
|
|
|
4
|
|
|
283
|
|
|||||||
Provision
(1)
|
936
|
|
|
(889
|
)
|
|
(61
|
)
|
|
170
|
|
|
629
|
|
|
(35
|
)
|
|
750
|
|
|||||||
Ending balance
|
$
|
4,415
|
|
|
$
|
2,151
|
|
|
$
|
466
|
|
|
$
|
534
|
|
|
$
|
6,013
|
|
|
$
|
28
|
|
|
$
|
13,607
|
|
(1)
|
The negative provisions for the various segments are either related to the decline in outstanding balances in each of those portfolio segments during the time periods disclosed and/or improvement in the credit quality factors related to those portfolio segments.
|
|
December 31, 2016
|
||||||||||||||||||||||||||
|
|
|
Real Estate
|
|
|
|
|
||||||||||||||||||||
|
Commercial
|
|
Construction and Land
|
|
1-4 Family Residential
|
|
Home Equity
|
|
Commercial
|
|
Consumer and Other
|
|
Total
|
||||||||||||||
Ending balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Individually evaluated for impairment
|
$
|
91
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
276
|
|
|
$
|
136
|
|
|
$
|
—
|
|
|
$
|
503
|
|
Collectively evaluated for impairment
|
3,790
|
|
|
2,639
|
|
|
317
|
|
|
202
|
|
|
8,561
|
|
|
100
|
|
|
15,609
|
|
|||||||
Total
|
$
|
3,881
|
|
|
$
|
2,639
|
|
|
$
|
317
|
|
|
$
|
478
|
|
|
$
|
8,697
|
|
|
$
|
100
|
|
|
$
|
16,112
|
|
|
December 31, 2015
|
||||||||||||||||||||||||||
|
|
|
Real Estate
|
|
|
|
|
||||||||||||||||||||
|
Commercial
|
|
Construction and Land
|
|
1-4 Family Residential
|
|
Home Equity
|
|
Commercial
|
|
Consumer and Other
|
|
Total
|
||||||||||||||
Ending balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Individually evaluated for impairment
|
$
|
142
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
270
|
|
|
$
|
155
|
|
|
$
|
—
|
|
|
$
|
567
|
|
Collectively evaluated for impairment
|
4,227
|
|
|
2,338
|
|
|
508
|
|
|
211
|
|
|
7,099
|
|
|
17
|
|
|
14,400
|
|
|||||||
Total
|
$
|
4,369
|
|
|
$
|
2,338
|
|
|
$
|
508
|
|
|
$
|
481
|
|
|
$
|
7,254
|
|
|
$
|
17
|
|
|
$
|
14,967
|
|
|
December 31, 2016
|
||||||||||||||||||||||||||
|
|
|
Real Estate
|
|
|
|
|
||||||||||||||||||||
|
Commercial
|
|
Construction and Land
|
|
1-4 Family Residential
|
|
Home Equity
|
|
Commercial
|
|
Consumer and Other
|
|
Total
|
||||||||||||||
Ending balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Individually evaluated for impairment
|
$
|
126
|
|
|
$
|
—
|
|
|
$
|
108
|
|
|
$
|
317
|
|
|
$
|
471
|
|
|
$
|
—
|
|
|
$
|
1,022
|
|
Collectively evaluated for impairment
|
333,888
|
|
|
205,610
|
|
|
47,076
|
|
|
17,740
|
|
|
787,529
|
|
|
8,355
|
|
|
1,400,198
|
|
|||||||
Total
|
$
|
334,014
|
|
|
$
|
205,610
|
|
|
$
|
47,184
|
|
|
$
|
18,057
|
|
|
$
|
788,000
|
|
|
$
|
8,355
|
|
|
$
|
1,401,220
|
|
|
December 31, 2015
|
||||||||||||||||||||||||||
|
|
|
Real Estate
|
|
|
|
|
||||||||||||||||||||
|
Commercial
|
|
Construction and Land
|
|
1-4 Family Residential
|
|
Home Equity
|
|
Commercial
|
|
Consumer and Other
|
|
Total
|
||||||||||||||
Ending balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Individually evaluated for impairment
|
$
|
142
|
|
|
$
|
60
|
|
|
$
|
352
|
|
|
$
|
270
|
|
|
$
|
637
|
|
|
$
|
—
|
|
|
$
|
1,461
|
|
Collectively evaluated for impairment
|
348,909
|
|
|
174,542
|
|
|
51,018
|
|
|
21,479
|
|
|
643,539
|
|
|
6,801
|
|
|
1,246,288
|
|
|||||||
Total
|
$
|
349,051
|
|
|
$
|
174,602
|
|
|
$
|
51,370
|
|
|
$
|
21,749
|
|
|
$
|
644,176
|
|
|
$
|
6,801
|
|
|
$
|
1,247,749
|
|
|
2016
|
|
2015
|
||||
Land
|
$
|
4,323
|
|
|
$
|
2,823
|
|
Buildings
|
14,344
|
|
|
5,305
|
|
||
Leasehold improvements
|
3,843
|
|
|
3,661
|
|
||
Furniture and equipment
|
7,637
|
|
|
5,793
|
|
||
|
30,147
|
|
|
17,582
|
|
||
Accumulated depreciation
|
6,833
|
|
|
6,020
|
|
||
|
$
|
23,314
|
|
|
$
|
11,562
|
|
2017
|
$
|
67,142
|
|
2018
|
30,911
|
|
|
2019
|
11,425
|
|
|
2020
|
3,617
|
|
|
2021
|
2,919
|
|
|
|
$
|
116,014
|
|
|
|
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||||||||||
Maturity
|
|
|
|
Interest
|
|
Effective
|
|
|
|
Interest
|
|
Effective
|
|
|
||||||
Date
|
|
Variable/Fixed
|
|
Rate
|
|
Rate
(1)
|
|
Balance
|
|
Rate
|
|
Rate
(1)
|
|
Balance
|
||||||
1/29/2018
|
|
Fixed
(2)
|
|
2.70%
|
|
2.70%
|
|
$
|
25,000
|
|
|
2.70
|
%
|
|
2.70
|
%
|
|
$
|
25,000
|
|
12/23/2019
|
|
Variable
|
|
1.28%
|
|
3.26%
|
|
25,000
|
|
|
0.86
|
%
|
|
2.83
|
%
|
|
25,000
|
|
||
6/22/2020
|
|
Variable
|
|
1.30%
|
|
3.45%
|
|
25,000
|
|
|
0.88
|
%
|
|
3.02
|
%
|
|
25,000
|
|
||
9/21/2020
|
|
Variable
|
|
1.30%
|
|
4.44%
|
|
30,000
|
|
|
0.88
|
%
|
|
4.44
|
%
|
|
30,000
|
|
||
|
|
|
|
|
|
|
|
105,000
|
|
|
|
|
|
|
105,000
|
|
||||
Discount for modification
|
|
|
|
|
|
(5,114
|
)
|
|
|
|
|
|
(6,615
|
)
|
||||||
Total FHLB advances, net of discount
|
|
|
|
$
|
99,886
|
|
|
|
|
|
|
$
|
98,385
|
|
(1)
|
The effective interest rate for the variable rate advances includes the effects of the discount fee amortization and interest rate swaps.
|
(2)
|
Callable quarterly.
|
2017
|
$
|
3,312
|
|
2018
|
1,514
|
|
|
2019
|
115
|
|
|
2020
|
116
|
|
|
2021
|
37
|
|
|
Thereafter
|
35
|
|
|
|
5,129
|
|
|
Unamortized debt issuance costs
|
(3
|
)
|
|
Long-term debt, net
|
$
|
5,126
|
|
|
|
|
Notional
Amount
|
|
Fair Value
|
|
Balance Sheet
Category
|
|
Weighted
Average
Receive Rate
|
|
Weighted
Average Pay
Rate
|
|
Maturity
|
||||||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate swap
|
|
|
$
|
30,000
|
|
|
$
|
(496
|
)
|
|
Other Liabilities
|
|
1.30
|
%
|
|
2.52
|
%
|
|
9/21/2020
|
Interest rate swap
(1)
|
|
|
20,000
|
|
|
1,068
|
|
|
Other Assets
|
|
—
|
%
|
|
4.81
|
%
|
|
9/30/2026
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate swap
|
|
|
$
|
30,000
|
|
|
$
|
(774
|
)
|
|
Other Liabilities
|
|
0.88
|
%
|
|
2.52
|
%
|
|
9/21/2020
|
|
|
|
Effective Portion
|
|
Ineffective Portion
|
||||||||||||
|
|
|
Amount of
|
|
Reclassified from AOCI into
Income
|
|
Recognized in Income on
Derivatives
|
||||||||||
|
|
|
Pretax Gain (Loss)
|
|
|
||||||||||||
|
|
|
Recognized in
|
|
|
|
Amount of
|
|
|
|
Amount of
|
||||||
Interest Rate Swaps
|
|
|
OCI
|
|
Category
|
|
Gain (Loss)
|
|
Category
|
|
Gain (Loss)
|
||||||
2016
|
|
|
$
|
882
|
|
|
Interest Expense
|
|
$
|
(573
|
)
|
|
Other Income
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
2015
|
|
|
$
|
(1,144
|
)
|
|
Interest Expense
|
|
$
|
(160
|
)
|
|
Other Income
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
2014
|
|
|
$
|
(3,759
|
)
|
|
Interest Expense
|
|
$
|
(83
|
)
|
|
Other Income
|
|
$
|
—
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Current:
|
|
|
|
|
|
||||||
Federal
|
$
|
8,220
|
|
|
$
|
8,057
|
|
|
$
|
4,838
|
|
State
|
1,627
|
|
|
1,558
|
|
|
1,276
|
|
|||
Deferred:
|
|
|
|
|
|
|
|
||||
Federal
|
115
|
|
|
112
|
|
|
608
|
|
|||
State
|
(26
|
)
|
|
(30
|
)
|
|
(73
|
)
|
|||
Income taxes
|
$
|
9,936
|
|
|
$
|
9,697
|
|
|
$
|
6,649
|
|
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||
|
Amount
|
|
Percent
of Pretax
Income
|
|
Amount
|
|
Percent
of Pretax
Income
|
|
Amount
|
|
Percent
of Pretax
Income
|
|||||||||
Computed expected tax expense
|
$
|
11,533
|
|
|
35.0
|
%
|
|
$
|
11,004
|
|
|
35.0
|
%
|
|
$
|
9,341
|
|
|
35.0
|
%
|
State income tax expense, net of
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
federal income tax benefit
|
1,004
|
|
|
3.0
|
|
|
957
|
|
|
3.0
|
|
|
596
|
|
|
2.2
|
|
|||
Tax-exempt interest income
|
(1,823
|
)
|
|
(5.5
|
)
|
|
(1,786
|
)
|
|
(5.7
|
)
|
|
(1,525
|
)
|
|
(5.7
|
)
|
|||
Nondeductible interest expense to
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
own tax-exempt securities
|
58
|
|
|
0.2
|
|
|
43
|
|
|
0.1
|
|
|
42
|
|
|
0.2
|
|
|||
Tax-exempt increase in cash value of
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
life insurance and gains
|
(381
|
)
|
|
(1.2
|
)
|
|
(254
|
)
|
|
(0.8
|
)
|
|
(256
|
)
|
|
(1.0
|
)
|
|||
Utilization of capital loss carryforwards
|
—
|
|
|
—
|
|
|
(130
|
)
|
|
(0.4
|
)
|
|
(1,318
|
)
|
|
(4.9
|
)
|
|||
Federal income tax credits
|
(405
|
)
|
|
(1.2
|
)
|
|
(275
|
)
|
|
(0.9
|
)
|
|
(160
|
)
|
|
(0.6
|
)
|
|||
Other, net
|
(50
|
)
|
|
(0.1
|
)
|
|
138
|
|
|
0.5
|
|
|
(71
|
)
|
|
(0.3
|
)
|
|||
Income taxes
|
$
|
9,936
|
|
|
30.2
|
%
|
|
$
|
9,697
|
|
|
30.8
|
%
|
|
$
|
6,649
|
|
|
24.9
|
%
|
|
2016
|
|
2015
|
||||
Deferred tax assets:
|
|
|
|
||||
Allowance for loan losses
|
$
|
6,123
|
|
|
$
|
5,687
|
|
Net unrealized losses on securities available for sale
|
719
|
|
|
—
|
|
||
Net unrealized losses on interest rate swap
|
—
|
|
|
473
|
|
||
Intangibles
|
462
|
|
|
771
|
|
||
Accrued expenses
|
706
|
|
|
898
|
|
||
Restricted stock unit compensation
|
446
|
|
|
358
|
|
||
State net operating loss carryforward
|
1,271
|
|
|
1,183
|
|
||
Capital loss carryforward
|
—
|
|
|
355
|
|
||
Other
|
190
|
|
|
34
|
|
||
|
9,917
|
|
|
9,759
|
|
||
Deferred tax liabilities:
|
|
|
|
|
|
||
Net deferred loan fees and costs
|
321
|
|
|
350
|
|
||
Net unrealized gains on securities available for sale
|
—
|
|
|
210
|
|
||
Net unrealized gains on interest rate swap
|
80
|
|
|
—
|
|
||
Premises and equipment
|
1,027
|
|
|
674
|
|
||
Other
|
261
|
|
|
317
|
|
||
|
1,689
|
|
|
1,551
|
|
||
Net deferred tax assets before valuation allowance
|
8,228
|
|
|
8,208
|
|
||
Valuation allowance for deferred tax assets
|
(1,271
|
)
|
|
(1,538
|
)
|
||
Net deferred tax assets
|
$
|
6,957
|
|
|
$
|
6,670
|
|
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||
|
|
|
Weighted
|
|
|
|
Weighted
|
|
|
|
Weighted
|
|||||||||
|
|
|
Average
|
|
|
|
Average
|
|
|
|
Average
|
|||||||||
|
|
|
Grant Date
|
|
|
|
Grant Date
|
|
|
|
Grant Date
|
|||||||||
|
|
|
Fair Value
|
|
|
|
Fair Value
|
|
|
|
Fair Value
|
|||||||||
(actual amounts, not in thousands)
|
Shares
|
|
Per Share
|
|
Shares
|
|
Per Share
|
|
Shares
|
|
Per Share
|
|||||||||
Nonvested shares, beginning balance
|
261,833
|
|
|
$
|
16.67
|
|
|
179,699
|
|
|
$
|
13.39
|
|
|
130,337
|
|
|
$
|
10.50
|
|
Granted
|
141,000
|
|
|
18.44
|
|
|
139,500
|
|
|
19.59
|
|
|
104,750
|
|
|
15.30
|
|
|||
Vested
|
(95,565
|
)
|
|
16.74
|
|
|
(57,366
|
)
|
|
13.23
|
|
|
(55,388
|
)
|
|
10.20
|
|
|||
Forfeited
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Nonvested shares, ending balance
|
307,268
|
|
|
$
|
17.46
|
|
|
261,833
|
|
|
$
|
16.67
|
|
|
179,699
|
|
|
$
|
13.39
|
|
|
Noncredit-related
|
|
|
|
|
|
|
||||||||
|
Unrealized
|
|
Unrealized
|
|
Unrealized
|
|
Accumulated
|
||||||||
|
Gains (Losses)
|
|
Gains (Losses)
|
|
Gains
|
|
Other
|
||||||||
|
on Securities
|
|
on Securities
|
|
(Losses) on
|
|
Comprehensive
|
||||||||
|
with OTTI
|
|
without OTTI
|
|
Derivatives
|
|
Income (Loss)
|
||||||||
Balance, December 31, 2013
|
$
|
(1,439
|
)
|
|
$
|
(4,217
|
)
|
|
$
|
2,118
|
|
|
$
|
(3,538
|
)
|
Other comprehensive income (loss) before
|
|
|
|
|
|
|
|
||||||||
reclassifications
|
1,133
|
|
|
5,085
|
|
|
(2,331
|
)
|
|
3,887
|
|
||||
Amounts reclassified from accumulated other
|
|
|
|
|
|
|
|
||||||||
comprehensive income
|
306
|
|
|
(452
|
)
|
|
51
|
|
|
(95
|
)
|
||||
Current period, other comprehensive income (loss)
|
1,439
|
|
|
4,633
|
|
|
(2,280
|
)
|
|
3,792
|
|
||||
Balance, December 31, 2014
|
—
|
|
|
416
|
|
|
(162
|
)
|
|
254
|
|
||||
Other comprehensive (loss) before
|
|
|
|
|
|
|
|
||||||||
reclassifications
|
—
|
|
|
(21
|
)
|
|
(709
|
)
|
|
(730
|
)
|
||||
Amounts reclassified from accumulated other
|
|
|
|
|
|
|
|
||||||||
comprehensive income
|
—
|
|
|
(53
|
)
|
|
99
|
|
|
46
|
|
||||
Current period other comprehensive (loss)
|
—
|
|
|
(74
|
)
|
|
(610
|
)
|
|
(684
|
)
|
||||
Balance, December 31, 2015
|
—
|
|
|
342
|
|
|
(772
|
)
|
|
(430
|
)
|
||||
Other comprehensive income (loss) before
|
|
|
|
|
|
|
|
||||||||
reclassifications
|
—
|
|
|
(1,394
|
)
|
|
547
|
|
|
(847
|
)
|
||||
Amounts reclassified from accumulated other
|
|
|
|
|
|
|
|
||||||||
comprehensive income
|
—
|
|
|
(120
|
)
|
|
355
|
|
|
235
|
|
||||
Current period other comprehensive income (loss)
|
—
|
|
|
(1,514
|
)
|
|
902
|
|
|
(612
|
)
|
||||
Balance, December 31, 2016
|
$
|
—
|
|
|
$
|
(1,172
|
)
|
|
$
|
130
|
|
|
$
|
(1,042
|
)
|
|
|
Actual
|
|
For Capital
Adequacy Purposes With Capital Conservation Buffer
|
|
To Be Well-Capitalized
Under Prompt
Corrective
Action Provisions
|
|||||||||||||||
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
As of December 31, 2016:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total Capital (to Risk-Weighted Assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
|
$
|
202,530
|
|
|
11.87
|
%
|
|
$
|
147,108
|
|
|
8.625
|
%
|
|
N/A
|
|
|
N/A
|
|
|
West Bank
|
|
186,118
|
|
|
11.04
|
|
|
145,414
|
|
|
8.625
|
|
|
$
|
168,597
|
|
|
10.00
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Tier 1 Capital (to Risk-Weighted Assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Consolidated
|
|
186,418
|
|
|
10.93
|
|
|
112,996
|
|
|
6.625
|
|
|
N/A
|
|
|
N/A
|
|
|||
West Bank
|
|
170,006
|
|
|
10.08
|
|
|
111,695
|
|
|
6.625
|
|
|
134,877
|
|
|
8.00
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Common Equity Tier 1 Capital (to Risk-Weighted Assets)
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Consolidated
|
|
166,418
|
|
|
9.76
|
|
|
87,412
|
|
|
5.125
|
|
|
N/A
|
|
|
N/A
|
|
|||
West Bank
|
|
170,006
|
|
|
10.08
|
|
|
86,406
|
|
|
5.125
|
|
|
109,588
|
|
|
6.50
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Tier 1 Capital (to Average Assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Consolidated
|
|
186,418
|
|
|
10.14
|
|
|
73,530
|
|
|
4.00
|
|
|
N/A
|
|
|
N/A
|
|
|||
West Bank
|
|
170,006
|
|
|
9.34
|
|
|
72,807
|
|
|
4.00
|
|
|
91,009
|
|
|
5.00
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
As of December 31, 2015:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Total Capital (to Risk-Weighted Assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Consolidated
|
|
$
|
187,790
|
|
|
12.12
|
%
|
|
$
|
123,979
|
|
|
8.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
West Bank
|
|
174,450
|
|
|
11.32
|
|
|
123,279
|
|
|
8.00
|
|
|
$
|
154,099
|
|
|
10.00
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Tier 1 Capital (to Risk-Weighted Assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Consolidated
|
|
172,807
|
|
|
11.15
|
|
|
92,984
|
|
|
6.00
|
|
|
N/A
|
|
|
N/A
|
|
|||
West Bank
|
|
159,467
|
|
|
10.35
|
|
|
92,460
|
|
|
6.00
|
|
|
123,279
|
|
|
8.00
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Common Equity Tier 1 Capital (to Risk-Weighted Assets)
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Consolidated
|
|
152,807
|
|
|
9.86
|
|
|
69,738
|
|
|
4.50
|
|
|
N/A
|
|
|
N/A
|
|
|||
West Bank
|
|
159,467
|
|
|
10.35
|
|
|
69,345
|
|
|
4.50
|
|
|
100,164
|
|
|
6.50
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Tier 1 Capital (to Average Assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Consolidated
|
|
172,807
|
|
|
9.91
|
|
|
69,764
|
|
|
4.00
|
|
|
N/A
|
|
|
N/A
|
|
|||
West Bank
|
|
159,467
|
|
|
9.20
|
|
|
69,352
|
|
|
4.00
|
|
|
86,690
|
|
|
5.00
|
|
2017
|
$
|
1,392
|
|
2018
|
1,400
|
|
|
2019
|
1,402
|
|
|
2020
|
1,402
|
|
|
2021
|
1,347
|
|
|
Thereafter
|
6,461
|
|
|
|
$
|
13,404
|
|
|
2016
|
|
2015
|
||||
Commitments to extend credit
|
$
|
614,681
|
|
|
$
|
558,633
|
|
Standby letters of credit
|
5,487
|
|
|
8,720
|
|
||
|
$
|
620,168
|
|
|
$
|
567,353
|
|
|
|
2016
|
||||||||||||||
Description
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
||||||||
Investment securities available for sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government agencies and corporations
|
|
$
|
2,593
|
|
|
$
|
—
|
|
|
$
|
2,593
|
|
|
$
|
—
|
|
State and political subdivisions
|
|
64,336
|
|
|
—
|
|
|
64,336
|
|
|
—
|
|
||||
Collateralized mortgage obligations
|
|
101,950
|
|
|
—
|
|
|
101,950
|
|
|
—
|
|
||||
Mortgage-backed securities
|
|
80,158
|
|
|
—
|
|
|
80,158
|
|
|
—
|
|
||||
Trust preferred security
|
|
1,250
|
|
|
—
|
|
|
1,250
|
|
|
—
|
|
||||
Corporate notes
|
|
10,350
|
|
|
10,050
|
|
|
300
|
|
|
—
|
|
||||
Derivative instrument, interest rate swap
|
|
1,068
|
|
|
—
|
|
|
1,068
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Derivative instrument, interest rate swap
|
|
$
|
496
|
|
|
$
|
—
|
|
|
$
|
496
|
|
|
$
|
—
|
|
|
|
2015
|
||||||||||||||
Description
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
||||||||
Investment securities available for sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government agencies and corporations
|
|
$
|
2,692
|
|
|
$
|
—
|
|
|
$
|
2,692
|
|
|
$
|
—
|
|
State and political subdivisions
|
|
73,079
|
|
|
—
|
|
|
73,079
|
|
|
—
|
|
||||
Collateralized mortgage obligations
|
|
132,615
|
|
|
—
|
|
|
132,615
|
|
|
—
|
|
||||
Mortgage-backed securities
|
|
101,088
|
|
|
—
|
|
|
101,088
|
|
|
—
|
|
||||
Trust preferred security
|
|
1,105
|
|
|
—
|
|
|
1,105
|
|
|
—
|
|
||||
Corporate notes and equity securities
|
|
10,135
|
|
|
9,835
|
|
|
300
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Derivative instrument, interest rate swap
|
|
$
|
774
|
|
|
$
|
—
|
|
|
$
|
774
|
|
|
$
|
—
|
|
Investment securities available for sale:
|
|
|
|
|
2014
|
||
Beginning balance
|
|
|
|
|
$
|
1,850
|
|
Transfer into Level 3
|
|
|
|
|
—
|
|
|
Total gains or (losses):
|
|
|
|
|
|
||
Included in earnings
|
|
|
|
|
(493
|
)
|
|
Included in other comprehensive income
|
|
|
|
|
2,321
|
|
|
Sale of security
|
|
|
|
|
(3,593
|
)
|
|
Principal payments
|
|
|
|
|
(85
|
)
|
|
Ending balance
|
|
|
|
|
$
|
—
|
|
|
|
|
2016
|
|
2015
|
||||||||||||
|
Fair Value
Hierarchy Level
|
|
Carrying
Amount
|
|
Approximate
Fair Value
|
|
Carrying
Amount
|
|
Approximate
Fair Value
|
||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and due from banks
|
Level 1
|
|
$
|
40,943
|
|
|
$
|
40,943
|
|
|
$
|
57,329
|
|
|
$
|
57,329
|
|
Federal funds sold
|
Level 1
|
|
35,893
|
|
|
35,893
|
|
|
15,322
|
|
|
15,322
|
|
||||
Investment securities available for sale
|
See previous table
|
|
260,637
|
|
|
260,637
|
|
|
320,714
|
|
|
320,714
|
|
||||
Investment securities held to maturity
|
Level 2
|
|
48,386
|
|
|
47,789
|
|
|
51,259
|
|
|
51,918
|
|
||||
Federal Home Loan Bank stock
|
Level 1
|
|
10,771
|
|
|
10,771
|
|
|
12,447
|
|
|
12,447
|
|
||||
Loans, net
(1)
|
Level 2
|
|
1,383,758
|
|
|
1,382,569
|
|
|
1,231,721
|
|
|
1,235,336
|
|
||||
Accrued interest receivable
|
Level 1
|
|
5,321
|
|
|
5,321
|
|
|
4,688
|
|
|
4,688
|
|
||||
Interest rate swap
|
See previous table
|
|
1,068
|
|
|
1,068
|
|
|
—
|
|
|
—
|
|
||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deposits
|
Level 2
|
|
$
|
1,546,605
|
|
|
$
|
1,546,307
|
|
|
$
|
1,440,729
|
|
|
$
|
1,440,762
|
|
Federal funds purchased
|
Level 1
|
|
9,690
|
|
|
9,690
|
|
|
2,760
|
|
|
2,760
|
|
||||
Short-term borrowings
|
Level 1
|
|
—
|
|
|
—
|
|
|
19,000
|
|
|
19,000
|
|
||||
Subordinated notes, net
|
Level 2
|
|
20,398
|
|
|
12,703
|
|
|
20,385
|
|
|
11,674
|
|
||||
Federal Home Loan Bank advances, net
|
Level 2
|
|
99,886
|
|
|
99,959
|
|
|
98,385
|
|
|
98,812
|
|
||||
Long-term debt, net
|
Level 2
|
|
5,126
|
|
|
5,054
|
|
|
8,405
|
|
|
8,314
|
|
||||
Accrued interest payable
|
Level 1
|
|
280
|
|
|
280
|
|
|
343
|
|
|
343
|
|
||||
Interest rate swap
|
See previous table
|
|
496
|
|
|
496
|
|
|
774
|
|
|
774
|
|
||||
Off-balance-sheet financial instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commitments to extend credit
|
Level 3
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Standby letters of credit
|
Level 3
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
(1)
|
All loans are Level 2 except impaired loans of
$0
and
$98
as of
December 31, 2016
and
2015
, respectively, which are Level 3.
|
Statements of Income
|
||||||||||||
Years Ended December 31, 2016, 2015 and 2014
|
||||||||||||
|
|
2016
|
|
2015
|
|
2014
|
||||||
Operating income:
|
|
|
|
|
|
|
||||||
Equity in net income of West Bank
|
|
$
|
23,544
|
|
|
$
|
22,546
|
|
|
$
|
19,773
|
|
Equity in net income of West Bancorporation Capital Trust I
|
|
23
|
|
|
21
|
|
|
21
|
|
|||
Gain on disposition of premises
|
|
—
|
|
|
—
|
|
|
1,627
|
|
|||
Realized investment securities loss
|
|
—
|
|
|
—
|
|
|
(493
|
)
|
|||
Intercompany rental income
|
|
503
|
|
|
207
|
|
|
126
|
|
|||
Other rental income
|
|
50
|
|
|
43
|
|
|
—
|
|
|||
Total operating income
|
|
24,120
|
|
|
22,817
|
|
|
21,054
|
|
|||
Operating expenses:
|
|
|
|
|
|
|
||||||
Interest on subordinated notes
|
|
728
|
|
|
705
|
|
|
753
|
|
|||
Interest on long-term debt
|
|
145
|
|
|
232
|
|
|
297
|
|
|||
Occupancy
|
|
280
|
|
|
170
|
|
|
78
|
|
|||
Other real estate owned
|
|
—
|
|
|
10
|
|
|
1,725
|
|
|||
Other expenses
|
|
443
|
|
|
486
|
|
|
604
|
|
|||
Total operating expenses
|
|
1,596
|
|
|
1,603
|
|
|
3,457
|
|
|||
Income before income taxes
|
|
22,524
|
|
|
21,214
|
|
|
17,597
|
|
|||
Income tax benefits
|
|
(492
|
)
|
|
(528
|
)
|
|
(2,443
|
)
|
|||
Net income
|
|
$
|
23,016
|
|
|
$
|
21,742
|
|
|
$
|
20,040
|
|
Statements of Cash Flows
|
||||||||||||
Years Ended December 31, 2016, 2015 and 2014
|
||||||||||||
|
|
2016
|
|
2015
|
|
2014
|
||||||
Cash Flows from Operating Activities:
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
23,016
|
|
|
$
|
21,742
|
|
|
$
|
20,040
|
|
Adjustments to reconcile net income to net cash provided by
|
|
|
|
|
|
|
|
|
||||
operating activities:
|
|
|
|
|
|
|
|
|
||||
Equity in net income of West Bank
|
|
(23,544
|
)
|
|
(22,546
|
)
|
|
(19,773
|
)
|
|||
Equity in net income of West Bancorporation Capital Trust I
|
|
(23
|
)
|
|
(21
|
)
|
|
(21
|
)
|
|||
Dividends received from West Bank
|
|
14,400
|
|
|
13,900
|
|
|
12,700
|
|
|||
Dividends received from West Bancorporation Capital Trust I
|
|
23
|
|
|
21
|
|
|
21
|
|
|||
Realized investment securities loss
|
|
—
|
|
|
—
|
|
|
493
|
|
|||
Amortization
|
|
20
|
|
|
23
|
|
|
26
|
|
|||
Depreciation
|
|
244
|
|
|
139
|
|
|
39
|
|
|||
Gain on disposition of premises
|
|
—
|
|
|
—
|
|
|
(1,627
|
)
|
|||
Write-down of other real estate owned
|
|
—
|
|
|
—
|
|
|
1,681
|
|
|||
Loss on sale of other real estate owned
|
|
—
|
|
|
8
|
|
|
10
|
|
|||
Deferred income tax (benefits)
|
|
97
|
|
|
99
|
|
|
362
|
|
|||
Change in assets and liabilities:
|
|
|
|
|
|
|
||||||
(Increase) decrease in other assets
|
|
(79
|
)
|
|
1,428
|
|
|
(1,248
|
)
|
|||
Increase (decrease) in accrued expenses and other liabilities
|
|
641
|
|
|
(31
|
)
|
|
(32
|
)
|
|||
Net cash provided by operating activities
|
|
14,795
|
|
|
14,762
|
|
|
12,671
|
|
|||
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
|
|
|
|||
Proceeds from paydown on securities available for sale
|
|
—
|
|
|
—
|
|
|
85
|
|
|||
Proceeds from sales of premises
|
|
—
|
|
|
—
|
|
|
3,000
|
|
|||
Purchases of premises
|
|
(10,539
|
)
|
|
(1,386
|
)
|
|
(4,097
|
)
|
|||
Proceeds from sales of other real estate owned
|
|
—
|
|
|
2,227
|
|
|
1,530
|
|
|||
Proceeds from settlement of other assets
|
|
—
|
|
|
3,593
|
|
|
—
|
|
|||
Net cash provided by (used in) investing activities
|
|
(10,539
|
)
|
|
4,434
|
|
|
518
|
|
|||
Cash Flows from Financing Activities:
|
|
|
|
|
|
|
|
|
|
|||
Principal payments on long-term debt
|
|
(3,286
|
)
|
|
(4,261
|
)
|
|
(3,260
|
)
|
|||
Common stock cash dividends
|
|
(10,800
|
)
|
|
(9,952
|
)
|
|
(7,842
|
)
|
|||
Net cash used in financing activities
|
|
(14,086
|
)
|
|
(14,213
|
)
|
|
(11,102
|
)
|
|||
Net increase (decrease) in cash
|
|
(9,830
|
)
|
|
4,983
|
|
|
2,087
|
|
|||
Cash:
|
|
|
|
|
|
|
|
|||||
Beginning
|
|
13,775
|
|
|
8,792
|
|
|
6,705
|
|
|||
Ending
|
|
$
|
3,945
|
|
|
$
|
13,775
|
|
|
$
|
8,792
|
|
|
|
|
|
|
|
|
||||||
Supplemental Disclosure of Noncash Investing and Financing Activities:
|
|
|
|
|
|
|
||||||
Transfer of securities available for sale to other assets, sale not settled
|
|
—
|
|
|
—
|
|
|
3,593
|
|
|
|
2016
|
||||||||||||||
Three months ended
|
|
March 31
|
|
June 30
|
|
September 30
|
|
December 31
|
||||||||
Interest income
|
|
$
|
15,524
|
|
|
$
|
16,209
|
|
|
$
|
16,696
|
|
|
$
|
16,565
|
|
Interest expense
|
|
1,825
|
|
|
1,936
|
|
|
1,975
|
|
|
2,140
|
|
||||
Net interest income
|
|
13,699
|
|
|
14,273
|
|
|
14,721
|
|
|
14,425
|
|
||||
Provision for loan losses
|
|
200
|
|
|
500
|
|
|
200
|
|
|
100
|
|
||||
Net interest income after provision for loan losses
|
|
13,499
|
|
|
13,773
|
|
|
14,521
|
|
|
14,325
|
|
||||
Noninterest income
|
|
2,230
|
|
|
1,903
|
|
|
1,919
|
|
|
1,930
|
|
||||
Noninterest expense
|
|
7,799
|
|
|
7,819
|
|
|
7,993
|
|
|
7,537
|
|
||||
Income before income taxes
|
|
7,930
|
|
|
7,857
|
|
|
8,447
|
|
|
8,718
|
|
||||
Income taxes
|
|
2,234
|
|
|
2,381
|
|
|
2,634
|
|
|
2,687
|
|
||||
Net income
|
|
$
|
5,696
|
|
|
$
|
5,476
|
|
|
$
|
5,813
|
|
|
$
|
6,031
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per common share
|
|
$
|
0.35
|
|
|
$
|
0.34
|
|
|
$
|
0.36
|
|
|
$
|
0.37
|
|
Diluted earnings per common share
|
|
$
|
0.35
|
|
|
$
|
0.34
|
|
|
$
|
0.36
|
|
|
$
|
0.37
|
|
|
|
2015
|
||||||||||||||
Three months ended
|
|
March 31
|
|
June 30
|
|
September 30
|
|
December 31
|
||||||||
Interest income
|
|
$
|
14,521
|
|
|
$
|
14,819
|
|
|
$
|
15,147
|
|
|
$
|
15,660
|
|
Interest expense
|
|
1,558
|
|
|
1,465
|
|
|
1,441
|
|
|
1,529
|
|
||||
Net interest income
|
|
12,963
|
|
|
13,354
|
|
|
13,706
|
|
|
14,131
|
|
||||
Provision for loan losses
|
|
—
|
|
|
200
|
|
|
200
|
|
|
450
|
|
||||
Net interest income after provision for loan losses
|
|
12,963
|
|
|
13,154
|
|
|
13,506
|
|
|
13,681
|
|
||||
Noninterest income
|
|
1,860
|
|
|
1,922
|
|
|
1,935
|
|
|
2,486
|
|
||||
Noninterest expense
|
|
7,446
|
|
|
7,443
|
|
|
7,549
|
|
|
7,630
|
|
||||
Income before income taxes
|
|
7,377
|
|
|
7,633
|
|
|
7,892
|
|
|
8,537
|
|
||||
Income taxes
|
|
2,274
|
|
|
2,361
|
|
|
2,466
|
|
|
2,596
|
|
||||
Net income
|
|
$
|
5,103
|
|
|
$
|
5,272
|
|
|
$
|
5,426
|
|
|
$
|
5,941
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per common share
|
|
$
|
0.32
|
|
|
$
|
0.33
|
|
|
$
|
0.34
|
|
|
$
|
0.37
|
|
Diluted earnings per common share
|
|
$
|
0.32
|
|
|
$
|
0.33
|
|
|
$
|
0.34
|
|
|
$
|
0.37
|
|
|
|
Number of shares to be
|
|
Weighted-average
|
|
Number of shares remaining available
|
|||
|
|
issued upon exercise of
|
|
exercise price of
|
|
for future issuance under equity
|
|||
|
|
outstanding options,
|
|
outstanding options,
|
|
compensation plans (excluding shares
|
|||
|
|
warrants and rights
|
|
warrants and rights
|
|
reflected in column (a))
|
|||
Plan Category
|
|
(a)
|
|
(b)
|
|
(c)
|
|||
Equity compensation plans
|
|
|
|
|
|
|
|||
approved by stockholders
|
|
307,268
|
|
|
—
|
|
|
318,023
|
|
Equity compensation plans not
|
|
|
|
|
|
|
|||
approved by stockholders
|
|
—
|
|
|
—
|
|
|
—
|
|
Total
|
|
307,268
|
|
|
—
|
|
|
318,023
|
|
(a)
|
1. Financial Statements
|
3.1
|
Restatement of the Restated Articles of Incorporation of West Bancorporation, Inc.
|
3.2
|
Bylaws of the Company as amended through October 17, 2007 (
incorporated herein by reference to Exhibit 4.1 filed with the Form S-3 on January 30, 2009
)
|
10.1
|
Lease for Main Bank Facility (
incorporated herein by reference to Exhibit 10.1 filed with the Form 10-12G on March 11, 2002
)
|
10.2
|
Supplemental Agreement to Lease for Main Bank Facility (
incorporated herein by reference to Exhibit 10.2 filed with the Form 10-12G on March 11, 2002
)
|
10.3
|
Short-Term Lease related to Main Bank Facility (
incorporated herein by reference to Exhibit 10.3 filed with the Form 10-12G on March 11, 2002
)
|
10.4
|
Assignment (
incorporated herein by reference to Exhibit 10.4 filed with the Form 10-12G on March 11, 2002
)
|
10.5
|
Lease Modification Agreement No. 1 for Main Bank Facility (
incorporated herein by reference to Exhibit 10.5 filed with the Form 10-12G on March 11, 2002
)
|
10.6
|
Memorandum of Real Estate Contract (
incorporated herein by reference to Exhibit 10.6 filed with the Form 10-12G on March 11, 2002
)
|
10.7
|
Affidavit (
incorporated herein by reference to Exhibit 10.7 filed with the Form 10-12G on March 11, 2002
)
|
10.8
|
Addendum to Lease for Main Bank Facility (
incorporated herein by reference to Exhibit 10.8 filed with the Form 10-12G on March 11, 2002
)
|
10.9
|
Amendment to Lease Agreement (
incorporated herein by reference to Exhibit 10.16 filed with the Form 10-K on March 3, 2005
)
|
10.10
|
2007 Amendment to Lease Agreement (
incorporated herein by reference to Exhibit 10.22 filed with the Form 10-Q on May 4, 2007
)
|
10.11*
|
West Bancorporation, Inc. 2012 Equity Incentive Plan
(incorporated herein by reference to Exhibit A of the definitive proxy statement on Schedule 14A filed on March 7, 2012)
|
10.12*
|
Form of Restricted Stock Unit Award Agreement under the West Bancorporation, Inc. 2012 Equity Incentive Plan
(incorporated herein by reference to Exhibit 10.1 filed with the Form 10-Q on April 26, 2012)
|
10.13*
|
Employment Agreement dated July 23, 2012, between West Bancorporation, Inc. and David D. Nelson
(incorporated herein by reference to Exhibit 10.1 filed with the Form 8-K on July 25, 2012)
|
10.14*
|
Employment Agreement dated July 23, 2012, between West Bancorporation, Inc. and Brad L. Winterbottom
(incorporated herein by reference to Exhibit 10.2 filed with the Form 8-K on July 25, 2012)
|
10.15*
|
Employment Agreement dated July 23, 2012, between West Bancorporation, Inc. and Harlee N. Olafson
(incorporated herein by reference to Exhibit 10.3 filed with the Form 8-K on July 25, 2012)
|
10.16*
|
Employment Agreement dated July 23, 2012, between West Bancorporation, Inc. and Douglas R. Gulling
(incorporated herein by reference to Exhibit 10.4 filed with the Form 8-K on July 25, 2012)
|
10.17*
|
West Bancorporation, Inc. Deferred Compensation Plan
(incorporated herein by reference to Exhibit 10.1 filed with the Form 8-K on October 29, 2012)
|
10.18*
|
The Employee Savings and Stock Ownership Plan, as amended
(incorporated herein by reference to Exhibit 10.20 filed with the Form 10-K on March 6, 2014)
|
21
|
Subsidiaries
|
23
|
Consent of Independent Registered Public Accounting Firm
|
March 1, 2017
|
By:
|
/s/ David D. Nelson
|
|
|
David D. Nelson
|
|
|
Chief Executive Officer and President
|
March 1, 2017
|
By:
|
/s/ David D. Nelson
|
|
|
David D. Nelson
|
|
|
Chief Executive Officer, Director and President
|
|
|
(Principal Executive Officer and Director)
|
|
|
|
|
|
|
March 1, 2017
|
By:
|
/s/ Douglas R. Gulling
|
|
|
Douglas R. Gulling
|
|
|
Executive Vice President, Treasurer and Chief Financial Officer
|
|
|
(Principal Financial Officer)
|
|
|
|
|
|
|
March 1, 2017
|
By:
|
/s/ Marie I. Roberts
|
|
|
Marie I. Roberts
|
|
|
Senior Vice President, Controller and Chief Accounting Officer
|
|
|
(Principal Accounting Officer)
|
|
|
|
BOARD OF DIRECTORS
|
|
|
|
|
|
March 1, 2017
|
By:
|
/s/ David R. Milligan
|
|
|
David R. Milligan
|
|
|
Chairman of the Board
|
|
|
|
|
|
|
March 1, 2017
|
By:
|
/s/ Frank W. Berlin
|
|
|
Frank W. Berlin
|
|
|
|
|
|
|
March 1, 2017
|
By:
|
/s/ Joyce A. Chapman
|
|
|
Joyce A. Chapman
|
March 1, 2017
|
By:
|
/s/ Steven K. Gaer
|
|
|
Steven K. Gaer
|
|
|
|
|
|
|
March 1, 2017
|
By:
|
/s/ Michael J. Gerdin
|
|
|
Michael J. Gerdin
|
|
|
|
|
|
|
March 1, 2017
|
By:
|
/s/ Kaye R. Lozier
|
|
|
Kaye R. Lozier
|
|
|
|
|
|
|
March 1, 2017
|
By:
|
/s/ Sean P. McMurray
|
|
|
Sean P. McMurray
|
|
|
|
|
|
|
March 1, 2017
|
By:
|
/s/ George D. Milligan
|
|
|
George D. Milligan
|
|
|
|
|
|
|
March 1, 2017
|
By:
|
/s/ James W. Noyce
|
|
|
James W. Noyce
|
|
|
|
|
|
|
March 1, 2017
|
By:
|
/s/ Robert G. Pulver
|
|
|
Robert G. Pulver
|
|
|
|
|
|
|
March 1, 2017
|
By:
|
/s/ Lou Ann Sandburg
|
|
|
Lou Ann Sandburg
|
|
|
|
|
|
|
March 1, 2017
|
By:
|
/s/ Philip Jason Worth
|
|
|
Philip Jason Worth
|
(1)
|
The distinctive designation of the series.
|
(2)
|
The dividend rate, if any, of the series, the conditions and dates upon which any dividends shall be payable, the relation which the dividends payable on the series shall bear to the dividends payable on
|
(3)
|
Whether the shares of the series shall be subject to redemption by the corporation and whether such redemption is at the option of the corporation, the holder of shares of the series or any other person, and, if made subject to redemption, the times, prices and other terms and conditions of the redemption.
|
(4)
|
The rights of the holders of the shares of the series upon the dissolution of, or upon the distribution of assets of, the corporation, and the amount payable on the shares of the series in the event of voluntary or involuntary liquidation of the corporation.
|
(5)
|
The terms and amount of any sinking fund provided for the purchase or redemption of the shares of the series.
|
(6)
|
Whether or not the shares of the series shall be convertible into or exchangeable for shares of any other classes or of any other series of any class or classes of stock of the corporation and, if provision be made for conversion or exchange, the times, prices, rates, adjustments, and other terms and conditions of the conversion or exchange.
|
(7)
|
The extent, if any, to which the holders of the shares of the series shall be entitled to vote with respect to the election of directors or otherwise.
|
Name
|
Operating Name
|
Ownership %
|
State of Incorporation
|
|
|
|
|
West Bank
|
West Bank
|
100%
|
Iowa
|
|
|
|
|
West Bancorporation Capital Trust I
|
West Bancorporation Capital Trust I
|
100%
|
Delaware
|
/s/ RSM US LLP
|
|
Des Moines, Iowa
|
March 1, 2017
|
1.
|
I have reviewed this annual report on Form 10-K of West Bancorporation, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ David D. Nelson
|
|
David D. Nelson
|
|
Chief Executive Officer and President
|
|
1.
|
I have reviewed this annual report on Form 10-K of West Bancorporation, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ Douglas R. Gulling
|
|
Douglas R. Gulling
|
|
Executive Vice President, Treasurer and Chief Financial Officer
|
/s/ David D. Nelson
|
|
David D. Nelson
|
|
Chief Executive Officer and President
|
|
/s/ Douglas R. Gulling
|
|
Douglas R. Gulling
|
|
Executive Vice President, Treasurer and Chief Financial Officer
|