West Ban Corp. has a market cap of $109.7 million; its shares were traded at around $6.33 with a P/E ratio of 11.5 and P/S ratio of 1.5.
Highlight of Business Operations:Total net income was $3,941 for the three months ended September 30, 2010, compared to net income of $1,905 for the three months ended September 30, 2009. Total basic and diluted earnings per common share were $0.19 and $0.08, respectively, for the same periods. The Company's annualized return on average equity and return on average assets for the three months ended September 30, 2010, were 10.89 and 1.03 percent, respectively, compared to 5.74 and 0.49 percent, respectively, for the three months ended September 30, 2009.
Results of continuing operations for the three months ended September 30, 2010, were $951 higher than the same period last year, primarily due to a $1,000 decline in provision for loan losses. Third quarter 2010 results also included $253 of services fees from SmartyPig, LLC and a $420 gain from bank-owned life insurance due to the death of a retired employee. Offsetting these improvements was a $519 increase in salaries and employee benefits and a $304 increase in FDIC insurance expense.
For the first nine months of 2010, net income was $9,883, compared to a net loss of $(17,433) for the first nine months of 2009. Basic and diluted earnings (loss) per common share were $0.47 and $(1.10), respectively. The annualized return on average equity and return on average assets for the nine months ended September 30, 2010, were 9.50 and 0.82 percent, respectively, compared to (16.01) and (1.44) percent, respectively, for the nine months ended September 30, 2009.
The difference between the year-to-date net income in 2010 and the 2009 net loss was due in substantial part to the the $16,100 reduction in provision for loan losses, the 2009 goodwill impairment of $13,376, and the 2009 $(9,617) loss from discontinued operations due to the decision to sell WB Capital. Year-to-date 2010 income includes $1,314 of service fees from SmartyPig, LLC. This fee was discontinued in the third quarter after the previously announced transfer of SmartyPig® savings deposits to Compass Bank occurred on July 30, 2010. The discontinuance of this fee should not materially impact net income, because it was designed to reimburse West Bank for the difference between the interest expense on the SmartyPig® savings accounts and the interest income earned by investing those funds on a short-term basis. This service fee was not in place during 2009.
The allowance for loan losses as a percentage of loans outstanding as of September 30, 2010, was 2.06 percent compared to 1.87 percent as of December 31, 2009. During the first nine months of 2010, total loans outstanding declined $94,245. Total nonperforming assets declined by $15,550, with declines in all categories.
Read the The complete Report