Exhibit
99
For Immediate
Release
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Contact: Katy
Mackay
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Office
515-222-2359
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Cell
515-991-8750
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LEADERSHIP
CHANGE AT WEST BANCORPORATION
Second
Quarter Losses Anticipated
West Des
Moines, IA - July 15, 2009 - The Board of Directors of West Bancorporation, Inc.
(NASDAQ:WTBA) accepted the resignation of Thomas E. Stanberry at its regularly
scheduled meeting on Wednesday, July 15, 2009. Stanberry served
as Chairman, President and Chief Executive Officer of West Bancorporation, Inc
and Chairman and CEO of West Bank, and Chairman of the Board of WB Capital
Management, Inc. The resignation is effective
immediately.
The Board
named Jack Wahlig, former national managing partner with McGladrey & Pullen,
as Chairman of the Corporation’s Board of Directors. Robert Pulver
was tapped as Vice-chairman of the Corporation’s Board of
Directors. All appointments are effective immediately.
“Our
collective focus is to return to profitability and increase shareholder
value. We are a well-capitalized, independent community
bank. We have a 116-year tradition of serving Iowans and our focus is
to remain a trusted financial partner,” stated Wahlig.
“This is
a pivotal time in banking,” said Wahlig. “We appreciate Tom’s
contributions to the bank and to the community.”
The Board
appointed David R. Milligan as interim Chief Executive Officer of West
Bancorporation and interim CEO and chairman of West Bank. Milligan
worked for West Bank for 26 years and served in many leadership
capacities. He retired as CEO and Chairman of West Bank in 2004, and
has continued to serve as a member of the board of directors of the
bank.
“Dave is
an experienced banker with tested leadership skills,” said
Wahlig. “He knows first hand our market, our customers, and our
culture.”
The
search for a new CEO will begin immediately. The Board anticipates a
new leader in place by the end of the year.
The Board
announced a preliminary loss of $5.3 million for the second quarter of 2009 and
that no dividend will be paid to common stock shareholders. This
anticipated loss is primarily the result of taking a provision for loan losses
of $15 million at West Bank. Net loans charged off during the second quarter
totaled $9.4 million.
“The
continued stress on the local and national economy has impacted some of our
commercial customers,” said Wahlig. “As a community bank we reflect
both the successes and struggles of our community.”
Market
volatility and below normal earnings have combined to cause the price of the
Company’s common stock to drop below its book value. The Company has
hired a third party valuation firm to assist management in determining whether
or not goodwill has been impaired, and if so to what extent. If it is
determined goodwill has been impaired, the loss for the second quarter will be
increased. As of June 30, 2009, the Company had goodwill totaling $25
million. However, any goodwill impairment is a non-cash charge and
would not impact regulatory capital.
While
these numbers are preliminary, West Bancorporation remains well capitalized with
over $1.5 billion dollars in assets and more than $145 million in
capital.
“We have
a strong tradition of creating value for our shareholders, customers, employees,
and community. Our team is focused on taking actions to increase
profitability,” said Wahlig.
The
Company will release its detailed earnings for the second quarter of 2009 and
file its second quarter Form 10-Q before the market opens on Thursday, July 30,
2009.