EX-99.1 2 wtba-20250424exhibit991.htm EX-99.1 Document

Exhibit 99.1

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Press Release
 
April 24, 2025
 
FOR IMMEDIATE RELEASE
For more information contact:
Jane Funk, Executive Vice President, Treasurer and Chief Financial Officer (515) 222-5766
 
WEST BANCORPORATION, INC. ANNOUNCES FIRST QUARTER 2025 FINANCIAL RESULTS AND DECLARES QUARTERLY DIVIDEND

West Des Moines, IA - West Bancorporation, Inc. (Nasdaq: WTBA; the “Company”), parent company of West Bank, today reported first quarter 2025 net income of $7.8 million, or $0.46 per diluted common share, compared to fourth quarter 2024 net income of $7.1 million, or $0.42 per diluted common share, and first quarter 2024 net income of $5.8 million, or $0.35 per diluted common share. On April 23, 2025, the Company’s Board of Directors declared a regular quarterly dividend of $0.25 per common share. The dividend is payable on May 21, 2025, to stockholders of record on May 7, 2025.

David Nelson, President and Chief Executive Officer of the Company, commented, “In the first quarter of 2025, we have continued to see improvements in net interest margin and efficiency ratio compared to 2024, resulting in a significant improvement in net income compared to the first quarter of 2024. We are pleased with our progress in our balance sheet repricing efforts. Loan growth was modest in the first quarter, as expected with the current economic uncertainty.”

David Nelson added, “One thing that remains the same is our best-in-class credit quality metrics. We had no loans past due greater than 90 days at March 31, 2025, and only one loan past due greater than 30 days with an insignificant balance of $181 thousand. We continue to identify high-quality opportunities for growing our core customer base in all of our markets.”

First Quarter 2025 Financial Highlights
Quarter Ended March 31, 2025Quarter Ended December 31, 2024Quarter Ended March 31, 2024
Net income (in thousands)$7,842$7,097$5,809
Return on average equity13.84 %12.24 %10.63 %
Return on average assets0.81 %0.68 %0.61 %
Efficiency ratio (a non-GAAP measure)56.37 %60.79 %62.04 %
Nonperforming assets to total assets0.00 %0.00 %0.01 %

First Quarter 2025 Compared to Fourth Quarter 2024 Overview

•Loans increased $11.6 million in the first quarter of 2025, primarily due to an increase in commercial loans and commercial real estate loans, partially offset by a decline in construction loans.

•No credit loss expense on loans was recorded in the first quarter of 2025, compared to credit loss expense on loans of $1.0 million recorded in the fourth quarter of 2024. The credit loss expense on loans in the fourth quarter of 2024 was due to an adjustment to qualitative factors in the commercial real estate loan segment.

•The allowance for credit losses to total loans was 1.01 percent at both March 31, 2025 and December 31, 2024. Nonaccrual loans at March 31, 2025 consisted of one loan with a balance of $181 thousand, compared to one loan with a balance of $133 thousand at December 31, 2024.




•Deposits decreased $33.1 million, or 1.0 percent, in the first quarter of 2025. Brokered deposits totaled $335.5 million at March 31, 2025, compared to $266.4 million at December 31, 2024, an increase of $69.1 million. Excluding brokered deposits, deposits decreased $102.2 million, or 3.3 percent, during the first quarter of 2025. The decline in deposits was due to normal cash flow fluctuations of our core depositors. As of March 31, 2025, estimated uninsured deposits, which exclude deposits in the IntraFi® reciprocal network, brokered deposits and public funds protected by state programs, accounted for approximately 28.0 percent of total deposits.

•Net interest margin, on a fully tax-equivalent basis (a non-GAAP measure), was 2.28 percent for the first quarter of 2025, compared to 1.98 percent for the fourth quarter of 2024. Net interest income for the first quarter of 2025 was $20.9 million, compared to $19.4 million for the fourth quarter of 2024. The increase in net interest margin and net interest income was primarily due to a decrease in deposit rates, driven by the Federal Reserve’s reductions of the federal funds target rate in the fourth quarter of 2024. The cost of deposits decreased 38 basis points in the first quarter of 2025, compared to the fourth quarter of 2024.

•The efficiency ratio (a non-GAAP measure) was 56.37 percent for the first quarter of 2025, compared to 60.79 percent for the fourth quarter of 2024. The improvement in the efficiency ratio was primarily due to the increase in net interest income and decrease in noninterest expense, partially offset by a decrease in trust services income.
•The tangible common equity ratio was 5.97 percent as of March 31, 2025, compared to 5.68 percent as of December 31, 2024. The increase in the tangible common equity ratio was due to retained net income and the decrease in accumulated other comprehensive loss, which was the result of an increase in the market value of our available for sale securities portfolio.

•Income tax expense increased $2.8 million in the first quarter of 2025 compared to the fourth quarter of 2024. This was primarily due to recording an income tax benefit of $1.8 million in the fourth quarter of 2024 for an energy related investment tax credit associated with the construction of the Company’s new headquarters building.

First Quarter 2025 Compared to First Quarter 2024 Overview

•Loans increased $36.3 million at March 31, 2025, or 1.2 percent, compared to March 31, 2024. The increase is primarily due to the increase in commercial real estate loans, partially offset by decreases in commercial loans and construction loans.

•Deposits increased $259.5 million, or 8.5 percent, at March 31, 2025, compared to March 31, 2024. Included in deposits were brokered deposits totaling $335.5 million at March 31, 2025, compared to $396.4 million at March 31, 2024. Excluding brokered deposits, deposits increased $320.4 million, or 12.0 percent, as of March 31, 2025, compared to March 31, 2024. Deposit growth included a mix of public funds and commercial and consumer deposits and was used to reduce wholesale funding, build liquidity and fund loan growth.
•Borrowed funds decreased to $391.4 million at March 31, 2025, compared to $639.7 million at March 31, 2024. The decrease was primarily attributable to a decrease of $198.5 million in federal funds purchased and other short-term borrowings and a decrease of $45.0 million in Federal Home Loan Bank advances. The decrease in borrowed funds balances was due to the increase in deposits since March 31, 2024. The reduction in the Federal Home Loan Bank advances was due to the maturity of two advances with a total balance of $45.0 million. One of these advances, with a balance of $25.0 million, was hedged with a long-term interest rate swap, which matured and was not renewed.
•The efficiency ratio (a non-GAAP measure) was 56.37 percent for the first quarter of 2025, compared to 62.04 percent for the first quarter of 2024. The improvement in the efficiency ratio in the first quarter of 2025 compared to the first quarter of 2024 was primarily due to the increase in net interest income, partially offset by an increase in noninterest expense. 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 2.28 percent for the first quarter of 2025, compared to 1.88 percent for the first quarter of 2024. Net interest income for the first quarter of 2025 was $20.9 million, compared to $16.8 million for the first quarter of 2024. The increase in net interest margin and net interest income was primarily due to the decrease in deposit rates. The cost of deposits decreased by 42 basis points in the first quarter of 2025 compared to the first quarter of 2024. Also contributing to the improvement was an increase in average deposit balances of $335.2 million, in comparing the same time periods, which resulted in the reduction of higher-cost borrowed funds and an increase in interest-bearing deposits with other financial institutions.




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, April 24, 2025. 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 May 8, 2025, 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; the imposition of domestic or foreign tariffs or other governmental policies impacting the global supply chain and the value of products produced by our commercial borrowers; changes in local, national and international economic conditions, including the level and impact of inflation, and future monetary policies of the Federal Reserve in response thereto, 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 several bank failures; changes in legal and regulatory requirements, limitations and costs; 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 2024 presidential election; new or revised accounting policies and practices, as may be adopted by state and federal regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission or the Public Company Accounting Oversight Board; talent and labor shortages and employee turnover; 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 SHEETSMarch 31, 2025December 31, 2024September 30, 2024June 30, 2024March 31, 2024
Assets
Cash and due from banks$39,253 $28,750 $34,157 $27,994 $27,071 
Interest-bearing deposits171,357 214,728 123,646 121,825 120,946 
Securities available for sale, at fair value546,619 544,565 597,745 588,452 605,735 
Federal Home Loan Bank stock, at cost15,216 15,129 17,195 21,065 26,181 
Loans3,016,471 3,004,860 3,021,221 2,998,774 2,980,133 
Allowance for credit losses(30,526)(30,432)(29,419)(28,422)(28,373)
Loans, net2,985,945 2,974,428 2,991,802 2,970,352 2,951,760 
Premises and equipment, net110,270 109,985 106,771 101,965 95,880 
Bank-owned life insurance45,272 44,990 44,703 44,416 44,138 
Other assets72,737 82,416 72,547 89,046 90,981 
Total assets$3,986,669 $4,014,991 $3,988,566 $3,965,115 $3,962,692 
Liabilities and Stockholders’ Equity
Deposits$3,324,518 $3,357,596 $3,278,553 $3,180,922 $3,065,030 
Federal funds purchased and other short-term borrowings— — — 85,500 198,500 
Other borrowings391,445 392,629 438,814 439,998 441,183 
Other liabilities32,833 36,891 35,846 34,812 34,223 
Stockholders’ equity237,873 227,875 235,353 223,883 223,756 
Total liabilities and stockholders’ equity$3,986,669 $4,014,991 $3,988,566 $3,965,115 $3,962,692 
For the Quarter Ended
AVERAGE BALANCESMarch 31, 2025December 31, 2024September 30, 2024June 30, 2024March 31, 2024
Assets$3,944,789 $4,135,049 $3,973,824 $3,964,109 $3,812,199 
Loans3,016,119 3,007,558 2,991,272 2,994,492 2,949,672 
Deposits3,284,394 3,434,234 3,258,669 3,123,282 2,956,635 
Stockholders’ equity229,874 230,720 227,513 219,771 219,835 



WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
(in thousands)
As of
LOANSMarch 31, 2025December 31, 2024September 30, 2024June 30, 2024March 31, 2024
Commercial$531,267 $514,232 $512,884 $526,589 $544,293 
Real estate:
Construction, land and land development451,230 508,147 520,516 496,864 465,247 
1-4 family residential first mortgages86,292 87,858 89,749 92,230 108,065 
Home equity21,961 19,294 17,140 15,264 14,020 
Commercial1,909,330 1,861,195 1,870,132 1,856,301 1,839,580 
Consumer and other19,323 17,287 14,261 15,234 12,844 
3,019,403 3,008,013 3,024,682 3,002,482 2,984,049 
Net unamortized fees and costs(2,932)(3,153)(3,461)(3,708)(3,916)
Total loans$3,016,471 $3,004,860 $3,021,221 $2,998,774 $2,980,133 
Less: allowance for credit losses(30,526)(30,432)(29,419)(28,422)(28,373)
Net loans$2,985,945 $2,974,428 $2,991,802 $2,970,352 $2,951,760 
CREDIT QUALITY
Pass$3,011,231 $2,999,531 $3,016,493 $2,994,310 $2,983,618 
Watch7,991 8,349 7,956 7,651 142 
Substandard181 133 233 521 289 
Doubtful— — — — — 
     Total loans$3,019,403 $3,008,013 $3,024,682 $3,002,482 $2,984,049 
DEPOSITS
Noninterest-bearing demand$519,771 $541,053 $525,332 $530,441 $521,377 
Interest-bearing demand517,409 543,855 438,402 443,658 449,946 
Savings and money market - non-brokered1,490,189 1,517,510 1,481,840 1,483,264 1,315,698 
Money market - brokered143,423 126,381 123,780 97,259 119,840 
    Total nonmaturity deposits2,670,792 2,728,799 2,569,354 2,554,622 2,406,861 
Time - non-brokered461,655 488,760 407,109 353,269 381,646 
Time - brokered192,071 140,037 302,090 273,031 276,523 
    Total time deposits653,726 628,797 709,199 626,300 658,169 
    Total deposits$3,324,518 $3,357,596 $3,278,553 $3,180,922 $3,065,030 
BORROWINGS
Federal funds purchased and other short-term borrowings$— $— $— $85,500 $198,500 
Subordinated notes, net79,959 79,893 79,828 79,762 79,697 
Federal Home Loan Bank advances270,000 270,000 315,000 315,000 315,000 
Long-term debt41,486 42,736 43,986 45,236 46,486 
    Total borrowings$391,445 $392,629 $438,814 $525,498 $639,683 
STOCKHOLDERS’ EQUITY
Preferred stock$— $— $— $— $— 
Common stock3,000 3,000 3,000 3,000 3,000 
Additional paid-in capital35,072 35,619 34,960 34,322 33,685 
Retained earnings282,247 278,613 275,724 273,981 272,997 
Accumulated other comprehensive loss(82,446)(89,357)(78,331)(87,420)(85,926)
    Total stockholders’ equity$237,873 $227,875 $235,353 $223,883 $223,756 




WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
(in thousands)
For the Quarter Ended
CONSOLIDATED STATEMENTS OF INCOMEMarch 31, 2025December 31, 2024September 30, 2024June 30, 2024March 31, 2024
Interest income:
Loans, including fees$40,988 $41,822 $42,504 $41,700 $40,196 
Securities:
Taxable2,788 2,959 3,261 3,394 3,416 
Tax-exempt743 795 806 808 810 
Interest-bearing deposits1,617 3,740 2,041 1,666 148 
Total interest income46,136 49,316 48,612 47,568 44,570 
Interest expense:
Deposits21,423 25,706 26,076 23,943 21,559 
 Federal funds purchased and other short-term borrowings— — 115 1,950 2,183 
Subordinated notes1,105 1,106 1,112 1,105 1,108 
Federal Home Loan Bank advances2,235 2,522 2,748 2,718 2,325 
Long-term debt518 560 601 622 645 
Total interest expense25,281 29,894 30,652 30,338 27,820 
Net interest income20,855 19,422 17,960 17,230 16,750 
Credit loss expense— 1,000 — — — 
Net interest income after credit loss expense20,855 18,422 17,960 17,230 16,750 
Noninterest income:
Service charges on deposit accounts471 462 459 462 460 
Debit card usage fees446 471 500 490 458 
Trust services777 1,051 828 794 776 
 Increase in cash value of bank-owned life insurance282 287 287 278 274 
Realized securities losses, net— (1,172)— — — 
Other income267 331 285 322 331 
Total noninterest income2,243 1,430 2,359 2,346 2,299 
Noninterest expense:
Salaries and employee benefits7,004 7,107 6,823 7,169 6,489 
Occupancy and equipment1,963 2,095 1,926 1,852 1,447 
Data processing617 752 771 754 714 
Technology and software786 743 722 731 700 
FDIC insurance587 699 711 631 519 
Professional fees308 301 239 244 257 
Director fees206 170 223 236 199 
Other expenses1,592 1,532 1,477 1,577 1,543 
Total noninterest expense13,063 13,399 12,892 13,194 11,868 
Income before income taxes10,035 6,453 7,427 6,382 7,181 
Income taxes2,193 (644)1,475 1,190 1,372 
Net income$7,842 $7,097 $5,952 $5,192 $5,809 
Basic earnings per common share$0.47 $0.42 $0.35 $0.31 $0.35 
Diluted earnings per common share$0.46 $0.42 $0.35 $0.31 $0.35 







WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
As of and for the Quarter Ended
COMMON SHARE DATAMarch 31, 2025December 31, 2024September 30, 2024June 30, 2024March 31, 2024
Earnings per common share (basic)$0.47 $0.42 $0.35 $0.31 $0.35 
Earnings per common share (diluted)0.46 0.42 0.35 0.31 0.35 
Dividends per common share0.25 0.25 0.25 0.25 0.25 
Book value per common share(1)
14.06 13.54 13.98 13.30 13.31 
Closing stock price19.94 21.65 19.01 17.90 17.83 
Market price/book value(2)
141.82 %159.90 %135.98 %134.59 %133.96 %
Price earnings ratio(3)
10.46 12.96 13.65 14.36 12.77 
Annualized dividend yield(4)
5.02 %4.62 %5.26 %5.59 %5.61 %
REGULATORY CAPITAL RATIOS
Consolidated:
Total risk-based capital ratio12.18 %12.11 %11.95 %11.85 %11.78 %
Tier 1 risk-based capital ratio9.59 9.51 9.39 9.30 9.23 
Tier 1 leverage capital ratio8.36 7.93 8.15 8.08 8.36 
Common equity tier 1 ratio9.02 8.95 8.83 8.74 8.67 
West Bank:
Total risk-based capital ratio12.90 %12.86 %12.73 %12.66 %12.63 %
Tier 1 risk-based capital ratio11.99 11.96 11.86 11.79 11.76 
Tier 1 leverage capital ratio10.46 9.97 10.29 10.25 10.65 
Common equity tier 1 ratio11.99 11.96 11.86 11.79 11.76 
KEY PERFORMANCE RATIOS AND OTHER METRICS
Return on average assets(5)
0.81 %0.68 %0.60 %0.53 %0.61 %
Return on average equity(6)
13.84 12.24 10.41 9.50 10.63 
Net interest margin(7)(13)
2.28 1.98 1.91 1.86 1.88 
Yield on interest-earning assets(8)(13)
5.04 5.02 5.16 5.13 4.99 
Cost of interest-bearing liabilities3.25 3.57 3.84 3.83 3.70 
Efficiency ratio(9)(13)
56.37 60.79 63.28 67.14 62.04 
Nonperforming assets to total assets(10)
0.00 0.00 0.01 0.01 0.01 
ACL ratio(11)
1.01 1.01 0.97 0.95 0.95 
Loans/total assets75.66 74.84 75.75 75.63 75.20 
Loans/total deposits90.73 89.49 92.15 94.27 97.23 
Tangible common equity ratio(12)
5.97 5.68 5.90 5.65 5.65 

(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 Ended
March 31, 2025December 31, 2024September 30, 2024June 30, 2024March 31, 2024
Reconciliation of net interest income and net interest margin on a FTE basis to GAAP:
Net interest income (GAAP)$20,855 $19,422 $17,960 $17,230 $16,750 
Tax-equivalent adjustment (1)
66 16 29 55 82 
Net interest income on a FTE basis (non-GAAP)20,921 19,438 17,989 17,285 16,832 
Average interest-earning assets3,717,441 3,910,978 3,749,688 3,731,674 3,595,954 
Net interest margin on a FTE basis (non-GAAP)2.28 %1.98 %1.91 %1.86 %1.88 %
Reconciliation of efficiency ratio on an adjusted and FTE basis to GAAP:
Net interest income on a FTE basis (non-GAAP)$20,921 $19,438 $17,989 $17,285 $16,832 
Noninterest income2,243 1,430 2,359 2,346 2,299 
Adjustment for realized securities losses, net— 1,172 — — — 
Adjustment for losses on disposal of premises and equipment, net8 — 26 21 — 
Adjusted income23,172 22,040 20,374 19,652 19,131 
Noninterest expense13,063 13,399 12,892 13,194 11,868 
Efficiency ratio on an adjusted and FTE basis (non-GAAP) (2)
56.37 %60.79 %63.28 %67.14 %62.04 %
(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.