Stockholders' Equity and Earnings (Loss) per Common Share (Notes)

12 Months Ended

Dec. 31, 2011

Stockholders' Equity and Earnings (Loss) per Common Share [Abstract]

Stockholders' Equity and Earnings (Loss) per Common Share

Note 12. Stockholders' Equity and Earnings (Loss) per Common Share

Preferred stock:  On December 23, 2008, the shareholders of the Company approved a proposal to amend the Company's Restated Articles of Incorporation to authorize a class of 50 million shares of preferred stock.

On December 31, 2008, the Company issued 36,000 shares of perpetual cumulative senior preferred stock to the U.S. Department of the Treasury (Treasury) under the Capital Purchase Program (CPP).  The preferred stock had a par value of $0.01 per share and a liquidation preference of $1,000 per share, or $36,000.  Dividends were payable quarterly at the rate of five percent per annum.  The dividends were computed on the basis of a 360-day year consisting of twelve 30-day months.

On June 29, 2011, the Company redeemed all 36,000 of the outstanding preferred stock issued under the CPP with a payment to the Treasury of $36,220, consisting of $36,000 of principal and $220 of dividends. The preferred stock had a carrying value of $34,752 on the redemption date. Upon redemption, the remaining $1,248 preferred stock discount was recorded as a reduction to net income available to common stockholders.

Common stock:  On April 12, 2005, shareholders approved the West Bancorporation, Inc. Restricted Stock Compensation Plan.  The plan provides awards to be made until March 1, 2015, with a maximum of 300,000 shares purchased in the open market to be issued as awards, subject to certain restrictions. The Compensation Committee of the Company's Board of Directors administers the Plan.  As of December 31, 2011, no awards had been granted under this plan.

Common stock warrants:  In connection with the CPP described above, a common stock warrant exercisable for 474,100 shares of common stock was issued and was exercisable on or before December 31, 2018.  The warrant entitled the Treasury to purchase 474,100 shares of common stock at $11.39 per share.  The warrant was repurchased by the Company for $700 on August 31, 2011.

Earnings (loss) per common share:  The calculation of earnings (loss) per common share and diluted earnings (loss) per common share for the years ended December 31, 2011, 2010, and 2009, is presented below.  See Note 1, Organization and Nature of Business and Summary of Significant Accounting Policies, for a discussion on the calculation of earnings (loss) per common share.

	2011			2010			2009
Income (loss) from continuing operations	$	15,268		$	13,383		$	(5,051	)
Loss from discontinued operations	—			—			(9,566		)
Net income (loss)	15,268			13,383			(14,617		)
Preferred stock dividends	(895		)	(1,800		)	(1,800		)
Preferred stock discount accretion	(1,492		)	(484		)	(476		)
Net income (loss) available to common stockholders	$	12,881		$	11,099		$	(16,893	)
Weighted average common shares outstanding	17,404			17,404			17,404
Common stock warrant (1)	—			—			—
Diluted weighted average common shares outstanding	17,404			17,404			17,404
Basic earnings (loss) per common share from continuing operations	$	0.74		$	0.64		$	(0.42	)
Basic earnings (loss) per common share from discontinued operations	—			—			(0.55		)
Basic earnings (loss) per common share	$	0.74		$	0.64		$	(0.97	)
Diluted earnings (loss) per common share from continuing operations	$	0.74		$	0.64		$	(0.42	)
Diluted earnings (loss) per common share from discontinued operations	—			—			(0.55		)
Diluted earnings (loss) per common share	$	0.74		$	0.64		$	(0.97	)

(1) The average closing price of the Company's common stock for the years ended December 31, 2011, 2010, and 2009, was $8.31, $6.68, and $6.41, respectively.  These were less than the $11.39 exercise price of the common stock warrant to purchase 474,100 shares of common stock; therefore, the warrant was not dilutive.