West Bancorporation (NASDAQ: WTBA), parent company of WestBank, a minority owner of the social banking website SmartyPig, posted net income of $2.0 million or $0.12 earnings per share during the second quarter, an improvement from a $22.8 million loss or $1.32 per share loss from the second quarter of 2009.
For the first half of 2010, the company netted $4.8 million compared to a $20.5 million loss for the first six months of 2009. The company saw earnings per share of $0.28 for the first half of 2010 compared to a $1.18 loss per share during the first half of 2009.
“We are pleased to report another profitable quarter. Asset quality appears to be stabilizing and the net interest margin is improving,” said President and Chief Executive Officer Dave Nelson. “Results show continued momentum in the company’s core business. We are not at the level of profitability we desire, but it is nice to have solid results in these economic times.”
West Bank saw a decline of $80.6 million during the second quarter which was largely due to a decision to tier interest rates from SmartyPig. The action was aimed at discouraging rate shoppers from using SmartyPig. SmartyPig recently entered into an agreement to use BBVA Compass as its preferred banking partner beginning in August, replacing West Bank. West Bancorporation will keep its minority ownership interest in SmartyPig.
According to a release from the company, “At its quarterly meeting on July 28, 2010, the Board of Directors of the Company voted to forgo a quarterly dividend on its common stock. The Company will pay its quarterly preferred stock dividend of $450,000 to the Treasury Department on August 16, 2010.”
