EX-99.1 2 wtba-20241024exhibit991.htm EX-99.1 Document

Exhibit 99.1

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Press Release
 
October 24, 2024
 
FOR IMMEDIATE RELEASE
For more information contact:
Jane Funk, Executive Vice President, Treasurer and Chief Financial Officer (515) 222-5766
 
WEST BANCORPORATION, INC. ANNOUNCES THIRD QUARTER 2024 FINANCIAL RESULTS AND DECLARES QUARTERLY DIVIDEND

West Des Moines, IA - West Bancorporation, Inc. (Nasdaq: WTBA; the “Company”), parent company of West Bank, today reported third quarter 2024 net income of $6.0 million, or $0.35 per diluted common share, compared to second quarter 2024 net income of $5.2 million, or $0.31 per diluted common share, and third quarter 2023 net income of $5.9 million, or $0.35 per diluted common share. On October 23, 2024, the Company’s Board of Directors declared a regular quarterly dividend of $0.25 per common share. The dividend is payable on November 20, 2024, to stockholders of record on November 6, 2024.

David Nelson, President and Chief Executive Officer of the Company, commented, “Our third quarter results include moderate growth in loans and core deposits along with an increase in quarterly net interest income and net interest margin. Our credit quality remains pristine as a result of our disciplined loan growth and credit risk management practices. The ratio of nonperforming assets to total assets remains negligible at 0.01%.”

David Nelson added, “West Bank is focused on initiatives that will drive sustained core profitability. Those initiatives are centered around our culture of building strong relationships and providing exceptional personal service to drive growth in both commercial and consumer banking services.”

Third Quarter 2024 Financial Highlights
Quarter Ended September 30, 2024Nine Months Ended September 30, 2024
Net income (in thousands)$5,952$16,953
Return on average equity10.41 %10.18 %
Return on average assets0.60 %0.59 %
Efficiency ratio (a non-GAAP measure)63.28 %64.16 %
Nonperforming assets to total assets0.01 %0.01 %

Third Quarter 2024 Compared to Second Quarter 2024 Overview

•Loans increased $22.4 million in the third quarter of 2024, or 3.0 percent annualized. The increase is primarily due to the funding of previously committed construction loans.

•A provision for credit losses on loans of $1.0 million was recorded in the third quarter of 2024, compared to no provision in the second quarter of 2024. A negative provision for credit losses on unfunded commitments of $1.0 million was recorded in the third quarter of 2024, compared to no provision in the second quarter of 2024. The provision for loans in the third quarter of 2024 was primarily due to changes in the forecasted loss rates due to increases in forecasted unemployment rates. The negative provision for unfunded commitments was primarily due to the decline in unfunded commitments resulting primarily from the funding of construction loans.



•The allowance for credit losses to total loans was 0.97 percent and 0.95 percent at September 30, 2024 and June 30, 2024, respectively. Nonaccrual loans at September 30, 2024 consisted of two loans with a total balance of $233 thousand, compared to three loans with a balance of $521 thousand at June 30, 2024.

•Deposits increased $97.6 million, or 3.1 percent, in the third quarter of 2024. Brokered deposits totaled $425.9 million at September 30, 2024, compared to $370.3 million at June 30, 2024, an increase of $55.6 million. Excluding brokered deposits, deposits increased $42.0 million during the third quarter of 2024. As of September 30, 2024, estimated uninsured deposits, which exclude deposits in the IntraFi® reciprocal network, brokered deposits and public funds protected by state programs, accounted for approximately 27.8 percent of total deposits.

•Borrowed funds decreased to $438.8 million at September 30, 2024, compared to $525.5 million at June 30, 2024. The decrease was primarily due to the balance of federal funds purchased and other short-term borrowings decreasing to $0 as of September 30, 2024, from $85.5 million as of June 30, 2024 as a result of growth in deposits.

•The efficiency ratio (a non-GAAP measure) was 63.28 percent for the third quarter of 2024, compared to 67.14 percent for the second quarter of 2024. The improvement in the efficiency ratio was primarily due to the increase in net interest income. In the third quarter of 2024, the increase in interest income on loans outpaced the increase in interest expense on deposits and borrowed funds.
•Net interest margin, on a fully tax-equivalent basis (a non-GAAP measure), was 1.91 percent for the third quarter of 2024, compared to 1.86 percent for the second quarter of 2024. Net interest income for the third quarter of 2024 was $18.0 million, compared to $17.2 million for the second quarter of 2024.
•The tangible common equity ratio was 5.90 percent as of September 30, 2024, compared to 5.65 percent as of June 30, 2024. The increase in the tangible common equity ratio was driven by retained net income and the decrease in accumulated other comprehensive loss, which was primarily the result of the increase in the market value of our available for sale investment portfolio.

Third Quarter 2024 Compared to Third Quarter 2023 Overview

•Loans increased $171.4 million at September 30, 2024, or 6.0 percent, compared to September 30, 2023. The increase is primarily due to increases in commercial real estate loans and the funding of previously committed construction loans.
•Deposits increased to $3.3 billion at September 30, 2024, compared to $2.8 billion at September 30, 2023. Included in deposits were brokered deposits totaling $425.9 million at September 30, 2024, compared to $237.0 million at September 30, 2023. Brokered deposits were used to reduce short-term borrowed funds and to fund loan growth. Excluding brokered deposits, deposits increased $334.2 million, or 13.3 percent, as of September 30, 2024, compared to September 30, 2023. Deposit growth included a mix of public funds and commercial and consumer deposits.
•Borrowed funds decreased to $438.8 million at September 30, 2024, compared to $705.1 million at September 30, 2023. The decrease was primarily attributable to a decrease of $261.5 million in federal funds purchased and other short-term borrowings as a result of growth in deposits.
•The efficiency ratio (a non-GAAP measure) was 63.28 percent for the third quarter of 2024, compared to 60.83 percent for the third quarter of 2023. The increase in the efficiency ratio in the third quarter of 2024 compared to the third quarter of 2023 was primarily due to the increase in noninterest expense, partially offset by an increase in net interest income. Occupancy and equipment expense increased primarily due to the occupancy costs associated with the Company’s newly constructed headquarters.
•Net interest margin, on a fully tax-equivalent basis (a non-GAAP measure), was 1.91 percent for both the third quarter of 2024 and the third quarter of 2023. Net interest income for the third quarter of 2024 was $18.0 million, compared to $16.6 million for the third quarter of 2023.





The Company filed its report on Form 10-Q with the Securities and Exchange Commission today. Please refer to that document for a more in-depth discussion of the Company’s financial results. The Form 10-Q is available on the Investor Relations section of West Bank’s website at www.westbankstrong.com.

The Company will discuss its results in a conference call scheduled for 2:00 p.m. Central Time on Thursday, October 24, 2024. The telephone number for the conference call is 800-715-9871. The conference ID for the conference call is 7846129. A recording of the call will be available until November 7, 2024, by dialing 800-770-2030. The conference ID for the replay call is 7846129, followed by the # key.

About West Bancorporation, Inc. (Nasdaq: WTBA)

West Bancorporation, Inc. is headquartered in West Des Moines, Iowa. Serving customers since 1893, West Bank, a wholly-owned subsidiary of West Bancorporation, Inc., is a community bank that focuses on lending, deposit services, and trust services for small- to medium-sized businesses and consumers. West Bank has six offices in the Des Moines, Iowa metropolitan area, one office in Coralville, Iowa, and four offices in Minnesota in the cities of Rochester, Owatonna, Mankato and St. Cloud.

Certain statements in this report, other than purely historical information, including estimates, projections, statements relating to the Company’s business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may appear throughout this report. These forward-looking statements are generally identified by the words “believes,” “expects,” “intends,” “anticipates,” “projects,” “future,” “confident,” “may,” “should,” “will,” “strategy,” “plan,” “opportunity,” “will be,” “will likely result,” “will continue” or similar references, or references to estimates, predictions or future events. Such forward-looking statements are based upon certain underlying assumptions, risks and uncertainties. Because of the possibility that the underlying assumptions are incorrect or do not materialize as expected in the future, actual results could differ materially from these forward-looking statements.  Risks and uncertainties that may affect future results include: interest rate risk, including the effects of changes in interest rates; fluctuations in the values of the securities held in our investment portfolio, including as a result of changes in interest rates; competitive pressures, including from non-bank competitors such as credit unions, “fintech” companies and digital asset service providers; pricing pressures on loans and deposits; our ability to successfully manage liquidity risk; changes in credit and other risks posed by the Company’s loan portfolio, including declines in commercial or residential real estate values or changes in the allowance for credit losses dictated by new market conditions, accounting standards or regulatory requirements; the concentration of large deposits from certain clients, including those who have balances above current FDIC insurance limits; changes in local, national and international economic conditions, including the level and impact of inflation and possible recession; the effects of recent developments and events in the financial services industry, including the large-scale deposit withdrawals over a short period of time that resulted in recent bank failures; changes in legal and regulatory requirements, limitations and costs including in response to the recent bank failures; changes in customers’ acceptance of the Company’s products and services; the occurrence of fraudulent activity, breaches or failures of our or our third-party partners’ information security controls or cyber-security related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools; unexpected outcomes of existing or new litigation involving the Company; the monetary, trade and other regulatory policies of the U.S. government; acts of war or terrorism, including the ongoing Israeli-Palestinian conflict and the Russian invasion of Ukraine, widespread disease or pandemics, or other adverse external events; risks related to climate change and the negative impact it may have on our customers and their businesses; changes to U.S. tax laws, regulations and guidance; potential changes in federal policy and at regulatory agencies as a result of the upcoming 2024 presidential election; talent and labor shortages; and any other risks described in the “Risk Factors” sections of reports filed by the Company with the Securities and Exchange Commission. The Company undertakes no obligation to revise or update such forward-looking statements to reflect current or future events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.



WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
(in thousands)
As of
CONDENSED BALANCE SHEETSSeptember 30, 2024June 30, 2024March 31, 2024December 31, 2023September 30, 2023
Assets
Cash and due from banks$34,157 $27,994 $27,071 $33,245 $18,819 
Interest-bearing deposits123,646 121,825 120,946 32,112 1,802 
Securities available for sale, at fair value597,745 588,452 605,735 623,919 609,365 
Federal Home Loan Bank stock, at cost17,195 21,065 26,181 22,957 26,691 
Loans3,021,221 2,998,774 2,980,133 2,927,535 2,849,777 
Allowance for credit losses(29,419)(28,422)(28,373)(28,342)(28,147)
Loans, net2,991,802 2,970,352 2,951,760 2,899,193 2,821,630 
Premises and equipment, net106,771 101,965 95,880 86,399 75,675 
Bank-owned life insurance44,703 44,416 44,138 43,864 43,589 
Other assets72,547 89,046 90,981 84,069 104,329 
Total assets$3,988,566 $3,965,115 $3,962,692 $3,825,758 $3,701,900 
Liabilities and Stockholders’ Equity
Deposits$3,278,553 $3,180,922 $3,065,030 $2,973,779 $2,755,529 
Federal funds purchased and other short-term borrowings— 85,500 198,500 150,270 261,510 
Other borrowings438,814 439,998 441,183 442,367 443,552 
Other liabilities35,846 34,812 34,223 34,299 37,376 
Stockholders’ equity235,353 223,883 223,756 225,043 203,933 
Total liabilities and stockholders’ equity$3,988,566 $3,965,115 $3,962,692 $3,825,758 $3,701,900 
For the Quarter Ended
AVERAGE BALANCESSeptember 30, 2024June 30, 2024March 31, 2024December 31, 2023September 30, 2023
Assets$3,973,824 $3,964,109 $3,812,199 $3,706,497 $3,679,541 
Loans2,991,272 2,994,492 2,949,672 2,857,594 2,813,213 
Deposits3,258,669 3,123,282 2,956,635 2,878,676 2,764,184 
Stockholders’ equity227,513 219,771 219,835 201,920 215,230 



WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
(in thousands)
As of
LOANSSeptember 30, 2024June 30, 2024March 31, 2024December 31, 2023September 30, 2023
Commercial$512,884 $526,589 $544,293 $531,594 $529,293 
Real estate:
Construction, land and land development520,516 496,864 465,247 413,477 399,253 
1-4 family residential first mortgages89,749 92,230 108,065 106,688 89,713 
Home equity17,140 15,264 14,020 14,618 12,429 
Commercial1,870,132 1,856,301 1,839,580 1,854,510 1,812,816 
Consumer and other14,261 15,234 12,844 10,930 10,123 
3,024,682 3,002,482 2,984,049 2,931,817 2,853,627 
Net unamortized fees and costs(3,461)(3,708)(3,916)(4,282)(3,850)
Total loans$3,021,221 $2,998,774 $2,980,133 $2,927,535 $2,849,777 
Less: allowance for credit losses(29,419)(28,422)(28,373)(28,342)(28,147)
Net loans$2,991,802 $2,970,352 $2,951,760 $2,899,193 $2,821,630 
CREDIT QUALITY
Pass$3,016,493 $2,994,310 $2,983,618 $2,931,377 $2,853,100 
Watch7,956 7,651 142 144 184 
Substandard233 521 289 296 343 
Doubtful— — — — — 
     Total loans$3,024,682 $3,002,482 $2,984,049 $2,931,817 $2,853,627 
DEPOSITS
Noninterest-bearing demand$525,332 $530,441 $521,377 $548,726 $551,688 
Interest-bearing demand438,402 443,658 449,946 481,207 417,802 
Savings and money market - non-brokered1,481,840 1,483,264 1,315,698 1,315,741 1,249,309 
Money market - brokered123,780 97,259 119,840 124,335 99,282 
    Total nonmaturity deposits2,569,354 2,554,622 2,406,861 2,470,009 2,318,081 
Time - non-brokered407,109 353,269 381,646 322,694 299,683 
Time - brokered302,090 273,031 276,523 181,076 137,765 
    Total time deposits709,199 626,300 658,169 503,770 437,448 
    Total deposits$3,278,553 $3,180,922 $3,065,030 $2,973,779 $2,755,529 
BORROWINGS
Federal funds purchased and other short-term borrowings$— $85,500 $198,500 $150,270 $261,510 
Subordinated notes, net79,828 79,762 79,697 79,631 79,566 
Federal Home Loan Bank advances315,000 315,000 315,000 315,000 315,000 
Long-term debt43,986 45,236 46,486 47,736 48,986 
    Total borrowings$438,814 $525,498 $639,683 $592,637 $705,062 
STOCKHOLDERS’ EQUITY
Preferred stock$— $— $— $— $— 
Common stock3,000 3,000 3,000 3,000 3,000 
Additional paid-in capital34,960 34,322 33,685 34,197 33,487 
Retained earnings275,724 273,981 272,997 271,369 271,025 
Accumulated other comprehensive loss(78,331)(87,420)(85,926)(83,523)(103,579)
    Total stockholders’ equity$235,353 $223,883 $223,756 $225,043 $203,933 




WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
(in thousands)
For the Quarter Ended
CONSOLIDATED STATEMENTS OF INCOMESeptember 30, 2024June 30, 2024March 31, 2024December 31, 2023September 30, 2023
Interest income:
Loans, including fees$42,504 $41,700 $40,196 $38,208 $36,756 
Securities:
Taxable3,261 3,394 3,416 3,521 3,427 
Tax-exempt806 808 810 869 880 
Interest-bearing deposits2,041 1,666 148 85 29 
Total interest income48,612 47,568 44,570 42,683 41,092 
Interest expense:
Deposits26,076 23,943 21,559 20,024 17,156 
 Federal funds purchased and other short-term borrowings115 1,950 2,183 2,024 3,165 
Subordinated notes1,112 1,105 1,108 1,114 1,113 
Federal Home Loan Bank advances2,748 2,718 2,325 2,482 2,329 
Long-term debt601 622 645 678 695 
Total interest expense30,652 30,338 27,820 26,322 24,458 
Net interest income17,960 17,230 16,750 16,361 16,634 
Credit loss expense— — — 500 200 
Net interest income after credit loss expense17,960 17,230 16,750 15,861 16,434 
Noninterest income:
Service charges on deposit accounts459 462 460 476 463 
Debit card usage fees500 490 458 488 495 
Trust services828 794 776 782 831 
 Increase in cash value of bank-owned life insurance287 278 274 275 262 
Loan swap fees— — — — 431 
Realized securities losses, net— — — (431)— 
Other income285 322 331 308 340 
Total noninterest income2,359 2,346 2,299 1,898 2,822 
Noninterest expense:
Salaries and employee benefits6,823 7,169 6,489 6,468 6,696 
Occupancy and equipment1,926 1,852 1,447 1,499 1,359 
Data processing771 754 714 723 703 
Technology and software722 731 700 676 573 
FDIC insurance711 631 519 475 439 
Professional fees239 244 257 235 254 
Director fees223 236 199 240 196 
Other expenses1,477 1,577 1,543 1,845 1,685 
Total noninterest expense12,892 13,194 11,868 12,161 11,905 
Income before income taxes7,427 6,382 7,181 5,598 7,351 
Income taxes1,475 1,190 1,372 1,073 1,445 
Net income$5,952 $5,192 $5,809 $4,525 $5,906 
Basic earnings per common share$0.35 $0.31 $0.35 $0.27 $0.35 
Diluted earnings per common share$0.35 $0.31 $0.35 $0.27 $0.35 




WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
(in thousands)
For the Nine Months Ended
CONSOLIDATED STATEMENTS OF INCOMESeptember 30, 2024September 30, 2023
Interest income:
Loans, including fees$124,400 $104,715 
Securities:
Taxable10,071 10,175 
Tax-exempt2,424 2,648 
Interest-bearing deposits3,855 84
Total interest income140,750 117,622 
Interest expense:
Deposits71,578 46,772 
Federal funds purchased and other short-term borrowings4,248 7,508 
Subordinated notes3,325 3,328 
Federal Home Loan Bank advances7,791 5,212 
Long-term debt1,868 2,132 
Total interest expense88,810 64,952 
Net interest income51,940 52,670 
Credit loss expense— 200 
Net interest income after credit loss expense51,940 52,470 
Noninterest income:
Service charges on deposit accounts1,381 1,383 
Debit card usage fees1,448 1,492 
Trust services2,398 2,286 
Increase in cash value of bank-owned life insurance839 769 
Loan swap fees— 431 
Gain from bank-owned life insurance— 691 
Other income938 1,116 
Total noninterest income7,004 8,168 
Noninterest expense:
Salaries and employee benefits20,481 20,592 
Occupancy and equipment5,225 4,008 
Data processing2,239 2,067 
Technology and software2,153 1,665 
FDIC insurance1,861 1,275 
Professional fees740 791 
Director fees658 652 
Other expenses4,597 5,400 
Total noninterest expense37,954 36,450 
Income before income taxes20,990 24,188 
Income taxes4,037 4,576 
Net income$16,953 $19,612 
Basic earnings per common share$1.01 $1.17 
Diluted earnings per common share$1.00 $1.17 






WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
As of and for the Quarter EndedFor the Nine Months Ended
COMMON SHARE DATASeptember 30, 2024June 30, 2024March 31, 2024December 31, 2023September 30, 2023September 30, 2024September 30, 2023
Earnings per common share (basic)$0.35 $0.31 $0.35 $0.27 $0.35 $1.01 $1.17 
Earnings per common share (diluted)0.35 0.31 0.35 0.27 0.35 1.00 1.17 
Dividends per common share0.25 0.25 0.25 0.25 0.25 0.75 0.75 
Book value per common share(1)
13.98 13.30 13.31 13.46 12.19 
Closing stock price19.01 17.90 17.83 21.20 16.31 
Market price/book value(2)
135.98 %134.59 %133.96 %157.50 %133.80 %
Price earnings ratio(3)
13.65 14.36 12.77 19.79 11.75 
Annualized dividend yield(4)
5.26 %5.59 %5.61 %4.72 %6.13 %
REGULATORY CAPITAL RATIOS
Consolidated:
Total risk-based capital ratio11.95 %11.85 %11.78 %11.88 %11.96 %
Tier 1 risk-based capital ratio9.39 9.30 9.23 9.30 9.37 
Tier 1 leverage capital ratio8.15 8.08 8.36 8.50 8.58 
Common equity tier 1 ratio8.83 8.74 8.67 8.74 8.80 
West Bank:
Total risk-based capital ratio12.73 %12.66 %12.63 %12.76 %12.89 %
Tier 1 risk-based capital ratio11.86 11.79 11.76 11.89 12.01 
Tier 1 leverage capital ratio10.29 10.25 10.65 10.86 11.00 
Common equity tier 1 ratio11.86 11.79 11.76 11.89 12.01 
KEY PERFORMANCE RATIOS AND OTHER METRICS
Return on average assets(5)
0.60 %0.53 %0.61 %0.48 %0.64 %0.59 %0.72 %
Return on average equity(6)
10.41 9.50 10.63 8.89 10.89 10.18 12.22 
Net interest margin(7)(13)
1.91 1.86 1.88 1.87 1.91 1.88 2.05 
Yield on interest-earning assets(8)(13)
5.16 5.13 4.99 4.87 4.70 5.10 4.56 
Cost of interest-bearing liabilities3.84 3.83 3.70 3.60 3.38 3.79 3.09 
Efficiency ratio(9)(13)
63.28 67.14 62.04 64.66 60.83 64.16 59.52 
Nonperforming assets to total assets(10)
0.01 0.01 0.01 0.01 0.01 
ACL ratio(11)
0.97 0.95 0.95 0.97 0.99 
Loans/total assets75.75 75.63 75.20 76.52 76.98 
Loans/total deposits92.15 94.27 97.23 98.44 103.42 
Tangible common equity ratio(12)
5.90 5.65 5.65 5.88 5.51 

(1) Includes accumulated other comprehensive loss.
(2) Closing stock price divided by book value per common share.
(3) Closing stock price divided by annualized earnings per common share (basic).
(4) Annualized dividend divided by period end closing stock price.
(5) Annualized net income divided by average assets.
(6) Annualized net income divided by average stockholders’ equity.
(7) Annualized tax-equivalent net interest income divided by average interest-earning assets.
(8) Annualized tax-equivalent interest income on interest-earning assets divided by average interest-earning assets.
(9) Noninterest expense (excluding other real estate owned expense and write-down of premises) divided by noninterest income (excluding net securities gains/losses and gains/losses on disposition of premises and equipment) plus tax-equivalent net interest income.
(10) Total nonperforming assets divided by total assets.
(11) Allowance for credit losses on loans divided by total loans.    
(12) Common equity less intangible assets (none held) divided by tangible assets.
(13) A non-GAAP measure.






NON-GAAP FINANCIAL MEASURES

This report contains references to financial measures that are not defined in GAAP. Such non-GAAP financial measures include the Company’s presentation of net interest income and net interest margin on a fully taxable equivalent (FTE) basis and the presentation of the efficiency ratio on an adjusted and FTE basis, excluding certain income and expenses. Management believes these non-GAAP financial measures provide useful information to both management and investors to analyze and evaluate the Company’s financial performance. These measures are considered standard measures of comparison within the banking industry. Additionally, management believes providing measures on a FTE basis enhances the comparability of income arising from taxable and nontaxable sources. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in these measures and that different companies might calculate these measures differently. These non-GAAP disclosures should not be considered an alternative to the Company’s GAAP results. The following table reconciles the non-GAAP financial measures of net interest income and net interest margin on a fully taxable equivalent basis and efficiency ratio on an adjusted and FTE basis.

 (in thousands)For the Quarter EndedFor the Nine Months Ended
September 30, 2024June 30, 2024March 31, 2024December 31, 2023September 30, 2023September 30, 2024September 30, 2023
Reconciliation of net interest income and net interest margin on a FTE basis to GAAP:
Net interest income (GAAP)$17,960 $17,230 $16,750 $16,361 $16,634 $51,940 $52,670 
Tax-equivalent adjustment (1)
29 55 82 95 113 166 396 
Net interest income on a FTE basis (non-GAAP)17,989 17,285 16,832 16,456 16,747 52,106 53,066 
Average interest-earning assets3,749,688 3,731,674 3,595,954 3,487,799 3,478,053 3,692,647 3,458,606 
Net interest margin on a FTE basis (non-GAAP)1.91 %1.86 %1.88 %1.87 %1.91 %1.88 %2.05 %
Reconciliation of efficiency ratio on an adjusted and FTE basis to GAAP:
Net interest income on a FTE basis (non-GAAP)$17,989 $17,285 $16,832 $16,456 $16,747 $52,106 $53,066 
Noninterest income2,359 2,346 2,299 1,898 2,822 7,004 8,168 
Adjustment for realized securities losses, net— — — 431 — — — 
Adjustment for losses on disposal of premises and equipment, net26 21 — 24 3 47 5 
Adjusted income20,374 19,652 19,131 18,809 19,572 59,157 61,239 
Noninterest expense12,892 13,194 11,868 12,161 11,905 37,954 36,450 
Efficiency ratio on an adjusted and FTE basis (non-GAAP) (2)
63.28 %67.14 %62.04 %64.66 %60.83 %64.16 %59.52 %
(1)    Computed on a tax-equivalent basis using a federal income tax rate of 21 percent, adjusted to reflect the effect of the nondeductible interest expense associated with owning tax-exempt securities and loans. Management believes the presentation of this non-GAAP measure provides supplemental useful information for proper understanding of the financial results, as it enhances the comparability of income arising from taxable and nontaxable sources.
(2)     The efficiency ratio expresses noninterest expense as a percent of fully taxable equivalent net interest income and noninterest income, excluding specific noninterest income and expenses. Management believes the presentation of this non-GAAP measure provides supplemental useful information for proper understanding of the Company's financial performance. It is a standard measure of comparison within the banking industry. A lower ratio is more desirable.