WEST DES MOINES, Iowa, June 10, 2022 (GLOBE NEWSWIRE) — West Bancorporation, Inc. (WTBA; the “Company”), parent company of West Bank, today announced the pricing of its $60 million offering 5.25% fixed rate – to Floating Rate Subordinated Notes maturing in 2032 (the “Notes”). The notes will initially bear interest at 5.25% per annum, interest being payable semi-annually in arrears, from the date of issue, until June 15, 2027 excluded. Effective June 15, 2027, the interest rate on the Notes resets quarterly at a floating rate per annum equal to a benchmark rate which is expected to be the three-month SOFR (which is defined in the Notes) plus 241 basis points , with interest payable quarterly in arrears. The Company may redeem the Notes, in whole or in part, on or after June 15, 2027, at a price equal to 100% of the principal amount of the Notes redeemed plus accrued and unpaid interest. The Notes will mature on June 15, 2032 if not redeemed earlier.
The Company expects to close the transaction, subject to customary conditions, on or about June 14, 2022. The Company intends to use the net proceeds from the offering for general corporate purposes, including providing capital to support organic growth and to invest in the West Bank. as regulatory capital. The Notes are intended to qualify as Tier 2 capital for regulatory purposes.
Piper Sandler & Co. is acting as the sole underwriter of the offering.
This press release does not constitute an offer to sell or a solicitation of an offer to buy securities of the Company. There will be no sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. Any offer to sell or solicitation of an offer to buy securities of the Company will be made only pursuant to a prospectus supplement and a prospectus filed with the Securities and Exchange Commission (“SEC”). The Company has filed a registration statement (including a prospectus) (File No. 333-236740) and a preliminary prospectus supplement with the SEC for the offering to which this press release relates. Before making an investment decision, you should read the Prospectus and Preliminary Prospectus Supplement and other documents the Company has filed with the SEC for additional information about the Company and the Offering.
You can obtain these documents for free by visiting the SEC’s website at www.sec.gov. Alternatively, the Company or Piper Sandler & Co. will arrange to send you copies of the prospectus and the preliminary prospectus supplement upon request by contacting [email protected]
About West Bancorporation, Inc. (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 focused on lending, depository and trust services for small and medium-sized businesses and consumers. West Bank has six offices in the Des Moines, Iowa metropolitan area, one office in Coralville, Iowa, and four Minnesota offices in the cities of Rochester, Owatonna, Mankato, and St. Cloud.
Certain statements contained in this press release, other than purely historical information, including estimates, projections, statements relating to the Company’s business plans, objectives and expected results of operations, as well as assumptions on which such statements are based, are “forward-looking statements” within the meaning 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’, ‘likely to result’, ‘will continue’ or similar references, or references to estimates, forecasts or future events. These forward-looking statements are based on certain underlying assumptions, risks and uncertainties. Due to the possibility that underlying assumptions may be incorrect or may not materialize as expected in the future, actual results could differ materially from these forward-looking statements. Risks and uncertainties that could affect future results include: the effects of the COVID-19 pandemic, including its effects on the economic environment, our customers and our operations, including due to supply chain disruptions supply, as well as any changes to federal, state or local government laws, regulations or ordinances in connection with the pandemic; interest rate risk; competitive pressures, including from non-bank competitors such as fintech companies; pricing pressures on loans and deposits; changes in credit and other risks posed by the Company’s loan and investment portfolios, including declines in the value of commercial or residential real estate or changes in the allowance for loan losses dictated by news market conditions, accounting standards (including due to the future implementation of the current accounting standard on expected credit losses (CECL)) or regulatory requirements; changes in local, national and international economic conditions, including increases in inflation rates; changes in legal and regulatory requirements, limitations and costs; changes in customer acceptance of the Company’s products and services; cyber attacks; unexpected results of existing or new litigation involving the Company; monetary, trade and other regulatory policies of the US government, including recent and anticipated rate increases; acts of war or terrorism, including the Russian invasion of Ukraine, widespread disease or pandemics, such as the COVID-19 pandemic, or other adverse external events; developments and uncertainty relating to the future use and availability of certain benchmark rates, such as the London Interbank Offered Rate, as well as other alternative benchmark rates; changes in US tax laws, regulations and guidelines; liquidity risk due to excess liquidity in the Company’s banking subsidiary; talent and labor shortages; and any other risks described in the “Risk Factors” sections of the Company’s filings with the SEC. The Company undertakes no obligation to revise or update these forward-looking statements to reflect current or future events or circumstances after the date hereof or to reflect the occurrence of unforeseen events.
For more information contact:
Jane Funk, Executive Vice President, Treasurer and Chief Financial Officer (515) 222-5766