x
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
42-1230603
|
|
(State
of Incorporation)
|
(I.R.S.
Employer Identification No.)
|
Large accelerated filer o | Accelerated filer x | Non-accelerated filer o |
West
Bancorporation, Inc. and Subsidiaries
|
|||||||
Consolidated
Balance Sheets
|
|||||||
(unaudited)
|
|||||||
June
30,
|
December
31,
|
||||||
2007
|
2006
|
||||||
(in
thousands, except per share data)
|
|||||||
Assets
|
|||||||
Cash
and due from banks
|
$
|
27,329
|
$
|
35,063
|
|||
Federal
funds sold and other short-term investments
|
9,555
|
615
|
|||||
Cash
and cash equivalents
|
36,884
|
35,678
|
|||||
Securities
available for sale
|
245,645
|
256,731
|
|||||
Federal
Home Loan Bank stock, at cost
|
7,731
|
4,847
|
|||||
Total
securities
|
253,376
|
261,578
|
|||||
Loans
|
937,257
|
904,422
|
|||||
Allowance
for loan losses
|
(8,779
|
)
|
(8,494
|
)
|
|||
Loans,
net
|
928,478
|
895,928
|
|||||
Premises
and equipment, net
|
5,212
|
5,375
|
|||||
Accrued
interest receivable
|
8,964
|
8,587
|
|||||
Goodwill
|
24,930
|
24,930
|
|||||
Other
intangible assets
|
2,559
|
2,987
|
|||||
Bank-owned
life insurance
|
23,391
|
22,956
|
|||||
Other
assets
|
10,940
|
10,517
|
|||||
Total
assets
|
$
|
1,294,734
|
$
|
1,268,536
|
|||
Liabilities
and Stockholders' Equity
|
|||||||
Liabilities
|
|||||||
Deposits:
|
|||||||
Noninterest-bearing
demand
|
$
|
187,575
|
$
|
203,964
|
|||
Interest-bearing
demand
|
69,401
|
57,605
|
|||||
Savings
|
216,376
|
234,240
|
|||||
Time,
in excess of $100,000
|
220,414
|
256,105
|
|||||
Other
time
|
163,938
|
173,420
|
|||||
Total
deposits
|
857,704
|
925,334
|
|||||
Federal
funds purchased and securities sold under agreements
to repurchase
|
144,060
|
109,346
|
|||||
Other
short-term borrowings
|
40,860
|
1,929
|
|||||
Accrued
expenses and other liabilities
|
11,637
|
12,096
|
|||||
Subordinated
notes
|
20,619
|
20,619
|
|||||
Long-term
borrowings
|
103,500
|
85,400
|
|||||
Total
liabilities
|
1,178,380
|
1,154,724
|
|||||
Stockholders'
Equity
|
|||||||
Common
stock, no par value; authorized 50,000,000 shares;
|
|||||||
17,536,682
shares issued and outstanding
|
3,000
|
3,000
|
|||||
Additional
paid-in capital
|
32,000
|
32,000
|
|||||
Retained
earnings
|
84,357
|
80,397
|
|||||
Accumulated
other comprehensive loss
|
(3,003
|
)
|
(1,585
|
)
|
|||
Total
stockholders' equity
|
116,354
|
113,812
|
|||||
Total
liabilities and stockholders' equity
|
$
|
1,294,734
|
$
|
1,268,536
|
West
Bancorporation, Inc. and Subsidiaries
|
|||||||||||||
Consolidated
Statements of Income
|
|||||||||||||
(unaudited)
|
|||||||||||||
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
||||||||||||
(in
thousands, except per share data)
|
2007
|
2006
|
2007
|
2006
|
|||||||||
Interest
income:
|
|||||||||||||
Loans,
including fees
|
$
|
17,932
|
$
|
17,036
|
$
|
35,036
|
$
|
32,499
|
|||||
Securities:
|
|||||||||||||
Government
agencies and corporations
|
1,491
|
1,522
|
2,987
|
3,018
|
|||||||||
States
and political subdivisions
|
936
|
1,029
|
1,906
|
2,072
|
|||||||||
Other
|
388
|
398
|
777
|
726
|
|||||||||
Federal
funds sold and other short-term investments
|
271
|
219
|
560
|
345
|
|||||||||
Total
interest income
|
21,018
|
20,204
|
41,266
|
38,660
|
|||||||||
Interest
expense:
|
|||||||||||||
Demand
deposits
|
452
|
77
|
777
|
136
|
|||||||||
Savings
deposits
|
1,841
|
1,919
|
3,556
|
3,632
|
|||||||||
Time
deposits
|
5,390
|
6,132
|
10,922
|
10,989
|
|||||||||
Federal
funds purchased and securities sold under
|
|||||||||||||
agreements
to repurchase
|
1,780
|
846
|
3,455
|
1,758
|
|||||||||
Other
short-term borrowings
|
63
|
12
|
71
|
26
|
|||||||||
Subordinated
notes
|
367
|
367
|
730
|
730
|
|||||||||
Long-term
borrowings
|
1,337
|
1,014
|
2,656
|
2,009
|
|||||||||
Total
interest expense
|
11,230
|
10,367
|
22,167
|
19,280
|
|||||||||
Net
interest income
|
9,788
|
9,837
|
19,099
|
19,380
|
|||||||||
Provision
for loan losses
|
350
|
450
|
650
|
900
|
|||||||||
Net
interest income after provision for loan losses
|
9,438
|
9,387
|
18,449
|
18,480
|
|||||||||
Noninterest
income:
|
|||||||||||||
Service
charges on deposit accounts
|
1,211
|
1,117
|
2,339
|
2,121
|
|||||||||
Trust
services
|
188
|
195
|
369
|
363
|
|||||||||
Investment
advisory fees
|
2,043
|
2,112
|
4,002
|
4,361
|
|||||||||
Increase
in cash value of bank-owned life insurance
|
219
|
213
|
435
|
422
|
|||||||||
Net
realized losses from sales of securities
|
|||||||||||||
available
for sale
|
(13
|
)
|
(38
|
)
|
(9
|
)
|
(144
|
)
|
|||||
Other
income
|
387
|
361
|
769
|
718
|
|||||||||
Total
noninterest income
|
4,035
|
3,960
|
7,905
|
7,841
|
|||||||||
Noninterest
expense:
|
|||||||||||||
Salaries
and employee benefits
|
3,355
|
3,492
|
6,971
|
7,167
|
|||||||||
Occupancy
|
897
|
866
|
1,831
|
1,722
|
|||||||||
Data
processing
|
473
|
506
|
940
|
985
|
|||||||||
Other
expenses
|
1,183
|
1,318
|
2,620
|
2,620
|
|||||||||
Total
noninterest expense
|
5,908
|
6,182
|
12,362
|
12,494
|
|||||||||
Income
before income taxes
|
7,565
|
7,165
|
13,992
|
13,827
|
|||||||||
Income
taxes
|
2,438
|
2,283
|
4,421
|
4,400
|
|||||||||
Net
income
|
$
|
5,127
|
$
|
4,882
|
$
|
9,571
|
$
|
9,427
|
|||||
Earnings
per share, basic
|
$
|
0.29
|
$
|
0.28
|
$
|
0.55
|
$
|
0.54
|
|||||
Cash
dividends per share
|
$
|
0.16
|
$
|
0.152
|
$
|
0.32
|
$
|
0.304
|
West
Bancorporation, Inc. and Subsidiaries
|
|||||||
Consolidated
Statements of Stockholders' Equity
|
|||||||
(unaudited)
|
|||||||
Six
Months Ended June 30,
|
|||||||
(in
thousands, except per share data)
|
2007
|
2006
|
|||||
Common
stock:
|
|||||||
Beginning
of year balance
|
$
|
3,000
|
$
|
3,000
|
|||
End
of period balance
|
3,000
|
3,000
|
|||||
Additional
paid-in capital:
|
|||||||
Beginning
of year balance
|
32,000
|
32,000
|
|||||
End
of period balance
|
32,000
|
32,000
|
|||||
Retained
earnings:
|
|||||||
Beginning
of year balance
|
80,397
|
71,951
|
|||||
Net
income
|
9,571
|
9,427
|
|||||
Dividends
on common stock; per share amounts
|
|||||||
2007
- $0.32 and 2006 - $.304
|
(5,611
|
)
|
(5,345
|
)
|
|||
End
of period balance
|
84,357
|
76,033
|
|||||
Accumulated
other comprehensive loss:
|
|||||||
Beginning
of year balance
|
(1,585
|
)
|
(2,430
|
)
|
|||
Unrealized
gains (losses) on securities, net of tax
|
(1,418
|
)
|
(1,923
|
)
|
|||
End
of period balance
|
(3,003
|
)
|
(4,353
|
)
|
|||
Total
stockholders' equity
|
$
|
116,354
|
$
|
106,680
|
West
Bancorporation, Inc. and Subsidiaries
|
|||||||
Consolidated
Statements of Comprehensive Income
|
|||||||
(unaudited)
|
|||||||
Six
Months Ended June 30,
|
|||||||
(in
thousands)
|
2007
|
2006
|
|||||
Net
income
|
$
|
9,571
|
$
|
9,427
|
|||
Other
comprehensive income (loss), unrealized gains
|
|||||||
(losses)
on securities, net of reclassification adjustment,
|
|||||||
net
of tax
|
(1,418
|
)
|
(1,923
|
)
|
|||
Comprehensive
income
|
$
|
8,153
|
$
|
7,504
|
West
Bancorporation, Inc. and Subsidiaries
|
|||||||
Consolidated
Statements of Cash Flows
|
|||||||
(unaudited)
|
|||||||
Six
Months Ended June 30,
|
|||||||
(in
thousands)
|
2007
|
2006
|
|||||
Cash
Flows from Operating Activities:
|
|||||||
Net
income
|
$
|
9,571
|
$
|
9,427
|
|||
Adjustments
to reconcile net income to net cash provided by
|
|||||||
operating
activities:
|
|||||||
Provision
for loan losses
|
650
|
900
|
|||||
Net
amortization and accretion
|
759
|
685
|
|||||
Loss
on disposition of fixed assets
|
28
|
9
|
|||||
Net
losses from sales of securities available for sale
|
9
|
144
|
|||||
Net
gains from sales of loans held for sale
|
(38
|
)
|
(63
|
)
|
|||
Proceeds
from sales of loans held for sale
|
4,205
|
4,673
|
|||||
Originations
of loans held for sale
|
(4,592
|
)
|
(4,744
|
)
|
|||
Increase
in value of bank-owned life insurance
|
(435
|
)
|
(422
|
)
|
|||
Depreciation
|
458
|
450
|
|||||
Deferred
income taxes
|
(53
|
)
|
(294
|
)
|
|||
Change
in assets and liabilities:
|
|||||||
Increase
in accrued interest receivable
|
(377
|
)
|
(636
|
)
|
|||
Increase
(decrease) in accrued expenses and other liabilities
|
(459
|
)
|
914
|
||||
Net
cash provided by operating activities
|
9,726
|
11,043
|
|||||
Cash
Flows from Investing Activities:
|
|||||||
Proceeds
from sales, calls, and maturities of securities available for
sale
|
10,624
|
20,299
|
|||||
Purchases
of securities available for sale
|
(2,159
|
)
|
(18,273
|
)
|
|||
Acquisition
of Federal Home Loan Bank stock
|
(3,205
|
)
|
(533
|
)
|
|||
Proceeds
from redemption of Federal Home Loan Bank stock
|
320
|
431
|
|||||
Net
increase in loans
|
(32,926
|
)
|
(81,027
|
)
|
|||
Proceeds
from sale of premises and equipment
|
29
|
16
|
|||||
Purchases
of premises and equipment
|
(351
|
)
|
(279
|
)
|
|||
Change
in other assets
|
643
|
(1,244
|
)
|
||||
Net
cash used in investing activities
|
(27,025
|
)
|
(80,610
|
)
|
|||
Cash
Flows from Financing Activities:
|
|||||||
Net
change in deposits
|
(67,630
|
)
|
84,366
|
||||
Net
change in federal funds purchased and securities sold
|
|||||||
under
agreements to repurchase
|
34,714
|
17,926
|
|||||
Net
change in other short-term borrowings
|
38,932
|
(2,333
|
)
|
||||
Proceeds
from long-term borrowings
|
30,000
|
-
|
|||||
Principal
payments on long-term borrowings
|
(11,900
|
)
|
-
|
||||
Cash
dividends
|
(5,611
|
)
|
(5,345
|
)
|
|||
Net
cash provided by financing activities
|
18,505
|
94,614
|
|||||
Net
increase in cash and cash equivalents
|
1,206
|
25,047
|
|||||
Cash
and Cash Equivalents:
|
|||||||
Beginning
|
35,678
|
40,665
|
|||||
End
|
$
|
36,884
|
$
|
65,712
|
|||
Supplemental
Disclosures of Cash Flow Information
|
|||||||
Cash
payments for:
|
|||||||
Interest
|
$
|
22,799
|
$
|
18,306
|
|||
Income
taxes
|
3,989
|
4,722
|
June
30,
2007
|
December
31,
2006
|
||||||
Commitments
to extend credit
|
$
|
235,883
|
$
|
262,717
|
|||
Standby
letters of credit
|
20,880
|
22,301
|
|||||
$
|
256,763
|
$
|
285,018
|
|
|
Three
months ended June 30,
|
|
||||||||||||||||||||||
|
|
2007
Segments
|
|
2006
Segments
|
|
||||||||||||||||||||
|
|
|
|
Investment
|
|
|
|
|
|
|
|
Investment
|
|
|
|
|
|
||||||||
|
|
Banking
|
|
Advisory
|
|
Other
|
|
Consolidated
|
|
Banking
|
|
Advisory
|
|
Other
|
|
Consolidated
|
|||||||||
Interest
income
|
$
|
21,018
|
$
|
-
|
$
|
-
|
$
|
21,018
|
$
|
20,192
|
$
|
-
|
$
|
12
|
$
|
20,204
|
|||||||||
Interest
expense
|
11,230
|
-
|
-
|
11,230
|
10,359
|
(4
|
)
|
12
|
10,367
|
||||||||||||||||
Net
interest income
|
9,788
|
-
|
-
|
9,788
|
9,833
|
4
|
-
|
9,837
|
|||||||||||||||||
Provision
for loan losses
|
350
|
-
|
-
|
350
|
450
|
-
|
-
|
450
|
|||||||||||||||||
Net
interest income after
|
|||||||||||||||||||||||||
provision
for loan losses
|
9,438
|
-
|
-
|
9,438
|
9,383
|
4
|
-
|
9,387
|
|||||||||||||||||
Noninterest
income
|
1,977
|
2,112
|
(54
|
)
|
4,035
|
1,846
|
2,169
|
(55
|
)
|
3,960
|
|||||||||||||||
Noninterest
expense
|
4,130
|
1,832
|
(54
|
)
|
5,908
|
4,292
|
1,945
|
(55
|
)
|
6,182
|
|||||||||||||||
Income
before income taxes
|
7,285
|
280
|
-
|
7,565
|
6,937
|
228
|
-
|
7,165
|
|||||||||||||||||
Income
taxes
|
2,324
|
114
|
-
|
2,438
|
2,191
|
92
|
-
|
2,283
|
|||||||||||||||||
Net
income
|
$
|
4,961
|
$
|
166
|
$
|
-
|
$
|
5,127
|
$
|
4,746
|
$
|
136
|
$
|
-
|
$
|
4,882
|
|||||||||
Depreciation
and amortization
|
$
|
216
|
$
|
230
|
$
|
-
|
$
|
446
|
$
|
196
|
$
|
250
|
$
|
-
|
$
|
446
|
Six
months ended June 30,
|
|
||||||||||||||||||||||||
|
|
2007
Segments
|
|
2006
Segments
|
|
||||||||||||||||||||
|
|
|
|
Investment
|
|
|
|
|
|
|
|
Investment
|
|
|
|
|
|
||||||||
|
|
Banking
|
|
Advisory
|
|
Other
|
|
Consolidated
|
|
Banking
|
|
Advisory
|
|
Other
|
|
Consolidated
|
|||||||||
Interest
income
|
$
|
41,266
|
$
|
-
|
$
|
-
|
$
|
41,266
|
$
|
38,662
|
$
|
-
|
$
|
(2
|
)
|
$
|
38,660
|
||||||||
Interest
expense
|
22,167
|
-
|
-
|
22,167
|
19,265
|
17
|
(2
|
)
|
19,280
|
||||||||||||||||
Net
interest income
|
19,099
|
-
|
-
|
19,099
|
19,397
|
(17
|
)
|
-
|
19,380
|
||||||||||||||||
Provision
for loan losses
|
650
|
-
|
-
|
650
|
900
|
-
|
-
|
900
|
|||||||||||||||||
Net
interest income after
|
|||||||||||||||||||||||||
provision
for loan losses
|
18,449
|
-
|
-
|
18,449
|
18,497
|
(17
|
)
|
-
|
18,480
|
||||||||||||||||
Noninterest
income
|
3,888
|
4,125
|
(108
|
)
|
7,905
|
3,479
|
4,466
|
(104
|
)
|
7,841
|
|||||||||||||||
Noninterest
expense
|
8,676
|
3,794
|
(108
|
)
|
12,362
|
8,662
|
3,936
|
(104
|
)
|
12,494
|
|||||||||||||||
Income
before income taxes
|
13,661
|
331
|
-
|
13,992
|
13,314
|
513
|
-
|
13,827
|
|||||||||||||||||
Income
taxes
|
4,285
|
136
|
-
|
4,421
|
4,189
|
211
|
-
|
4,400
|
|||||||||||||||||
Net
income
|
$
|
9,376
|
$
|
195
|
$
|
-
|
$
|
9,571
|
$
|
9,125
|
$
|
302
|
$
|
-
|
$
|
9,427
|
|||||||||
Depreciation
and amortization
|
$
|
421
|
$
|
465
|
$
|
-
|
$
|
886
|
$
|
395
|
$
|
497
|
$
|
-
|
$
|
892
|
|||||||||
Goodwill
|
$
|
13,376
|
$
|
11,554
|
$
|
-
|
$
|
24,930
|
$
|
13,376
|
$
|
9,869
|
$
|
-
|
$
|
23,245
|
|||||||||
Total
assets
|
$
|
1,280,432
|
$
|
14,654
|
$
|
(352
|
)
|
$
|
1,294,734
|
$
|
1,333,501
|
$
|
13,947
|
$
|
(193
|
)
|
$
|
1,347,255
|
|
Three
months ended June 30,
|
Six
months ended June 30,
|
|||||||||||||||||||||||
2007
|
2006
|
Change
|
Change-%
|
2007
|
2006
|
Change
|
Change-%
|
||||||||||||||||||
Net
income
|
$
|
5,127
|
$
|
4,882
|
$
|
245
|
5.0
|
%
|
$
|
9,571
|
$
|
9,427
|
$
|
144
|
1.5
|
%
|
|||||||||
Average
assets
|
1,323,901
|
1,317,852
|
6,049
|
0.5
|
%
|
1,314,146
|
1,294,836
|
19,310
|
1.5
|
%
|
|||||||||||||||
Average
stockholders'
|
|||||||||||||||||||||||||
equity
|
115,535
|
105,488
|
10,047
|
9.5
|
%
|
114,608
|
105,102
|
9,506
|
9.0
|
%
|
|||||||||||||||
Return
on assets
|
1.55
|
%
|
1.49
|
%
|
0.06
|
%
|
1.47
|
%
|
1.47
|
%
|
0.00
|
%
|
|||||||||||||
Return
on equity
|
17.80
|
%
|
18.56
|
%
|
-0.76
|
%
|
16.84
|
%
|
18.09
|
%
|
-1.25
|
%
|
|||||||||||||
Efficiency
ratio
|
41.54
|
%
|
43.35
|
%
|
-1.81
|
%
|
44.46
|
%
|
44.25
|
%
|
0.21
|
%
|
|||||||||||||
Dividend
payout ratio
|
54.72
|
%
|
54.74
|
%
|
-0.02
|
%
|
58.63
|
%
|
56.69
|
%
|
1.94
|
%
|
|||||||||||||
Equity
to assets ratio
|
8.73
|
%
|
8.00
|
%
|
0.73
|
%
|
8.72
|
%
|
8.12
|
%
|
0.60
|
%
|
Average
Balance
|
Interest
Income/Expense
|
Yield/Rate
|
||||||||||||||||||||||||||||||||
2007
|
2006
|
Change
|
Change-%
|
2007
|
2006
|
Change
|
Change-%
|
2007
|
2006
|
Change
|
||||||||||||||||||||||||
Interest-earning
assets:
|
||||||||||||||||||||||||||||||||||
Loans:
|
||||||||||||||||||||||||||||||||||
Commercial
|
$
|
348,949
|
$
|
353,339
|
$
|
(4,390
|
)
|
-1.24
|
%
|
$
|
6,961
|
$
|
6,767
|
$
|
194
|
2.87
|
%
|
8.00
|
%
|
7.68
|
%
|
0.32
|
%
|
|||||||||||
Real
estate
|
583,496
|
569,618
|
13,878
|
2.44
|
%
|
10,799
|
10,106
|
693
|
6.86
|
%
|
7.42
|
%
|
7.12
|
%
|
0.30
|
%
|
||||||||||||||||||
Consumer
and other
|
14,141
|
14,353
|
(212
|
)
|
-1.48
|
%
|
257
|
248
|
9
|
3.63
|
%
|
7.28
|
%
|
6.93
|
%
|
0.35
|
%
|
|||||||||||||||||
Total
loans
|
946,586
|
937,310
|
9,276
|
0.99
|
%
|
18,017
|
17,121
|
896
|
5.23
|
%
|
7.63
|
%
|
7.33
|
%
|
0.30
|
%
|
||||||||||||||||||
Investment
securities:
|
||||||||||||||||||||||||||||||||||
Taxable
|
169,612
|
174,075
|
(4,463
|
)
|
-2.56
|
%
|
1,975
|
2,008
|
(33
|
)
|
-1.64
|
%
|
4.66
|
%
|
4.61
|
%
|
0.05
|
%
|
||||||||||||||||
Tax-exempt
|
87,288
|
98,326
|
(11,038
|
)
|
-11.23
|
%
|
1,142
|
1,282
|
(140
|
)
|
-10.92
|
%
|
5.23
|
%
|
5.21
|
%
|
0.02
|
%
|
||||||||||||||||
Total
investment securities
|
256,900
|
272,401
|
(15,501
|
)
|
-5.69
|
%
|
3,117
|
3,290
|
(173
|
)
|
-5.26
|
%
|
4.85
|
%
|
4.83
|
%
|
0.02
|
%
|
||||||||||||||||
Federal
funds sold and
|
||||||||||||||||||||||||||||||||||
short-term
investments
|
20,472
|
17,228
|
3,244
|
18.83
|
%
|
271
|
219
|
52
|
23.74
|
%
|
5.30
|
%
|
5.10
|
%
|
0.20
|
%
|
||||||||||||||||||
Total
interest-earning assets
|
$
|
1,223,958
|
$
|
1,226,939
|
$
|
(2,981
|
)
|
-0.24
|
%
|
21,405
|
20,630
|
775
|
3.76
|
%
|
7.01
|
%
|
6.74
|
%
|
0.27
|
%
|
||||||||||||||
Interest-bearing
liabilities:
|
||||||||||||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||||||||||||
Checking
with interest, savings and money markets
|
$
|
306,375
|
$
|
311,362
|
$
|
(4,987
|
)
|
-1.60
|
%
|
2,293
|
1,996
|
297
|
14.88
|
%
|
3.00
|
%
|
2.57
|
%
|
0.43
|
%
|
||||||||||||||
Time
deposits
|
424,504
|
530,675
|
(106,171
|
)
|
-20.01
|
%
|
5,390
|
6,132
|
(742
|
)
|
-12.10
|
%
|
5.09
|
%
|
4.64
|
%
|
0.45
|
%
|
||||||||||||||||
Total
deposits
|
730,879
|
842,037
|
(111,158
|
)
|
-13.20
|
%
|
7,683
|
8,128
|
(445
|
)
|
-5.47
|
%
|
4.22
|
%
|
3.87
|
%
|
0.35
|
%
|
||||||||||||||||
Other
borrowed funds
|
279,809
|
174,862
|
104,947
|
60.02
|
%
|
3,547
|
2,239
|
1,308
|
58.42
|
%
|
5.09
|
%
|
5.14
|
%
|
-0.05
|
%
|
||||||||||||||||||
Total
interest-bearing liabilities
|
$
|
1,010,688
|
$
|
1,016,899
|
$
|
(6,211
|
)
|
-0.61
|
%
|
11,230
|
10,367
|
863
|
8.32
|
%
|
4.46
|
%
|
4.09
|
%
|
0.37
|
%
|
||||||||||||||
Tax-equivalent
net interest income
|
$
|
10,175
|
$
|
10,263
|
$
|
(88
|
)
|
-0.86
|
%
|
|||||||||||||||||||||||||
Net
interest spread
|
2.55
|
%
|
2.65
|
%
|
-0.10
|
%
|
||||||||||||||||||||||||||||
Net
interest margin
|
3.33
|
%
|
3.35
|
%
|
-0.02
|
%
|
|
|
Average
Balance
|
Interest
Income/Expense
|
Yield/Rate
|
||||||||||||||||||||||||||||||
2007
|
2006
|
Change
|
Change-%
|
2007
|
2006
|
Change
|
Change-%
|
2007
|
2006
|
Change
|
||||||||||||||||||||||||
Interest-earning
assets:
|
||||||||||||||||||||||||||||||||||
Loans:
|
||||||||||||||||||||||||||||||||||
Commercial
|
$
|
343,431
|
$
|
339,169
|
$
|
4,262
|
1.26
|
%
|
$
|
13,601
|
$
|
12,619
|
$
|
982
|
7.78
|
%
|
7.99
|
%
|
7.50
|
%
|
0.49
|
%
|
||||||||||||
Real
estate
|
579,195
|
562,376
|
16,819
|
2.99
|
%
|
21,072
|
19,576
|
1,496
|
7.64
|
%
|
7.34
|
%
|
7.02
|
%
|
0.32
|
%
|
||||||||||||||||||
Consumer
and other
|
14,496
|
14,047
|
449
|
3.20
|
%
|
536
|
471
|
65
|
13.80
|
%
|
7.46
|
%
|
6.77
|
%
|
0.69
|
%
|
||||||||||||||||||
Total
loans
|
937,122
|
915,592
|
21,530
|
2.35
|
%
|
35,209
|
32,666
|
2,543
|
7.78
|
%
|
7.58
|
%
|
7.19
|
%
|
0.39
|
%
|
||||||||||||||||||
Investment
securities:
|
||||||||||||||||||||||||||||||||||
Taxable
|
169,945
|
173,620
|
(3,675
|
)
|
-2.12
|
%
|
3,956
|
3,921
|
35
|
0.89
|
%
|
4.66
|
%
|
4.52
|
%
|
0.14
|
%
|
|||||||||||||||||
Tax-exempt
|
89,102
|
99,640
|
(10,538
|
)
|
-10.58
|
%
|
2,331
|
2,597
|
(266
|
)
|
-10.24
|
%
|
5.23
|
%
|
5.21
|
%
|
0.02
|
%
|
||||||||||||||||
Total
investment securities
|
259,047
|
273,260
|
(14,213
|
)
|
-5.20
|
%
|
6,287
|
6,518
|
(231
|
)
|
-3.54
|
%
|
4.85
|
%
|
4.77
|
%
|
0.08
|
%
|
||||||||||||||||
Federal
funds sold and
|
||||||||||||||||||||||||||||||||||
short-term
investments
|
21,439
|
14,248
|
7,191
|
50.47
|
%
|
560
|
345
|
215
|
62.32
|
%
|
5.26
|
%
|
4.88
|
%
|
0.38
|
%
|
||||||||||||||||||
Total
interest-earning assets
|
$
|
1,217,608
|
$
|
1,203,100
|
$
|
14,508
|
1.21
|
%
|
42,056
|
39,529
|
2,527
|
6.39
|
%
|
6.96
|
%
|
6.63
|
%
|
0.33
|
%
|
|||||||||||||||
Interest-bearing
liabilities:
|
||||||||||||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||||||||||||
Checking
with interest, savings
|
||||||||||||||||||||||||||||||||||
and
money markets
|
$
|
297,762
|
$
|
314,021
|
$
|
(16,259
|
)
|
-5.18
|
%
|
4,333
|
3,768
|
565
|
14.99
|
%
|
2.93
|
%
|
2.42
|
%
|
0.51
|
%
|
||||||||||||||
Time
deposits
|
432,846
|
496,187
|
(63,341
|
)
|
-12.77
|
%
|
10,922
|
10,989
|
(67
|
)
|
-0.61
|
%
|
5.09
|
%
|
4.47
|
%
|
0.62
|
%
|
||||||||||||||||
Total
deposits
|
730,608
|
810,208
|
(79,600
|
)
|
-9.82
|
%
|
15,255
|
14,757
|
498
|
3.37
|
%
|
4.21
|
%
|
3.67
|
%
|
0.54
|
%
|
|||||||||||||||||
Other
borrowed funds
|
273,719
|
181,707
|
92,012
|
50.64
|
%
|
6,912
|
4,523
|
2,389
|
52.82
|
%
|
5.09
|
%
|
5.02
|
%
|
0.07
|
%
|
||||||||||||||||||
Total
interest-bearing liabilities
|
$
|
1,004,327
|
$
|
991,915
|
$
|
12,412
|
1.25
|
%
|
22,167
|
19,280
|
2,887
|
14.97
|
%
|
4.45
|
%
|
3.92
|
%
|
0.53
|
%
|
|||||||||||||||
Tax-equivalent
net interest income
|
$
|
19,889
|
$
|
20,249
|
$
|
(360
|
)
|
-1.78
|
%
|
|||||||||||||||||||||||||
Net
interest spread
|
2.51
|
%
|
2.71
|
%
|
-0.20
|
%
|
||||||||||||||||||||||||||||
Net
interest margin
|
3.29
|
%
|
3.39
|
%
|
-0.10
|
%
|
Three
months ended June 30,
|
Six
months ended June 30,
|
||||||||||||||||||
2007
|
2006
|
Change
|
2007
|
2006
|
Change
|
||||||||||||||
Balance
at beginning of period
|
$
|
8,743
|
$
|
8,049
|
$
|
694
|
$
|
8,494
|
$
|
7,615
|
$
|
879
|
|||||||
Charge-offs
|
(331
|
)
|
(66
|
)
|
(265
|
)
|
(486
|
)
|
(100
|
)
|
(386
|
)
|
|||||||
Recoveries
|
17
|
7
|
10
|
121
|
25
|
96
|
|||||||||||||
Net
charge-offs
|
(314
|
)
|
(59
|
)
|
(255
|
)
|
(365
|
)
|
(75
|
)
|
(290
|
)
|
|||||||
Provision
charged to operations
|
350
|
450
|
(100
|
)
|
650
|
900
|
(250
|
)
|
|||||||||||
Balance
at end of period
|
$
|
8,779
|
$
|
8,440
|
$
|
339
|
$
|
8,779
|
$
|
8,440
|
$
|
339
|
|||||||
Average
loans outstanding
|
$
|
946,586
|
$
|
937,310
|
$
|
937,122
|
$
|
915,592
|
|||||||||||
Ratio
of net charge-offs during the
|
|||||||||||||||||||
period
to average loans outstanding
|
0.03
|
%
|
0.01
|
%
|
0.04
|
%
|
0.01
|
%
|
|||||||||||
Ratio
of allowance for loan losses
|
|||||||||||||||||||
to
average loans outstanding
|
0.93
|
%
|
0.90
|
%
|
0.94
|
%
|
0.92
|
%
|
Three
months ended June 30,
|
|||||||||||||
Noninterest
income
|
2007
|
2006
|
Change
|
Change-%
|
|||||||||
Service
charges on deposit accounts
|
$
|
1,211
|
$
|
1,117
|
$
|
94
|
8.4
|
%
|
|||||
Trust
services
|
188
|
195
|
(7
|
)
|
-3.6
|
%
|
|||||||
Investment
advisory fees
|
2,043
|
2,112
|
(69
|
)
|
-3.3
|
%
|
|||||||
Increase
in cash value of bank-owned
|
|||||||||||||
life
insurance
|
219
|
213
|
6
|
2.8
|
%
|
||||||||
Net
realized losses from
|
|||||||||||||
sales
of securities
|
(13
|
)
|
(38
|
)
|
25
|
-65.8
|
%
|
||||||
Other:
|
|||||||||||||
Debit
card usage fees
|
87
|
58
|
29
|
50.0
|
%
|
||||||||
Check
printing fees
|
31
|
36
|
(5
|
)
|
-13.9
|
%
|
|||||||
Visa/MasterCard
income
|
53
|
40
|
13
|
32.5
|
%
|
||||||||
Gain
on sale of commercial loans
|
-
|
34
|
(34
|
)
|
-100.0
|
%
|
|||||||
Gain
on sale of residential mortgages
|
25
|
17
|
8
|
47.1
|
%
|
||||||||
All
other
|
191
|
176
|
15
|
8.5
|
%
|
||||||||
Total
other
|
387
|
361
|
26
|
7.2
|
%
|
||||||||
Total
noninterest income
|
$
|
4,035
|
$
|
3,960
|
$
|
75
|
1.9
|
%
|
Six
months ended June 30,
|
|||||||||||||
Noninterest
income
|
2007
|
2006
|
Change
|
Change-%
|
|||||||||
Service
charges on deposit accounts
|
$
|
2,339
|
$
|
2,121
|
$
|
218
|
10.3
|
%
|
|||||
Trust
services
|
369
|
363
|
6
|
1.7
|
%
|
||||||||
Investment
advisory fees
|
4,002
|
4,361
|
(359
|
)
|
-8.2
|
%
|
|||||||
Increase
in cash value of bank-owned
|
|||||||||||||
life
insurance
|
435
|
422
|
13
|
3.1
|
%
|
||||||||
Net
realized losses from
|
|||||||||||||
sales
of securities
|
(9
|
)
|
(144
|
)
|
135
|
-93.8
|
%
|
||||||
Other:
|
|||||||||||||
Debit
card usage fees
|
169
|
112
|
57
|
50.9
|
%
|
||||||||
Check
printing fees
|
67
|
83
|
(16
|
)
|
-19.3
|
%
|
|||||||
Visa/MasterCard
income
|
107
|
75
|
32
|
42.7
|
%
|
||||||||
Gain
on sale of commercial loans
|
-
|
34
|
(34
|
)
|
-100.0
|
%
|
|||||||
Gain
on sale of residential mortgages
|
38
|
29
|
9
|
31.0
|
%
|
||||||||
All
other
|
388
|
385
|
3
|
0.8
|
%
|
||||||||
Total
other
|
769
|
718
|
51
|
7.1
|
%
|
||||||||
Total
noninterest income
|
$
|
7,905
|
$
|
7,841
|
$
|
64
|
0.8
|
%
|
Three
months ended June 30,
|
|||||||||||||
Noninterest
expense:
|
2007
|
2006
|
Change
|
Change-%
|
|||||||||
Salaries
and employee benefits
|
$
|
3,355
|
$
|
3,492
|
$
|
(137
|
)
|
-3.9
|
%
|
||||
Occupancy
|
897
|
866
|
31
|
3.6
|
%
|
||||||||
Data
processing
|
473
|
506
|
(33
|
)
|
-6.5
|
%
|
|||||||
Other:
|
|||||||||||||
Insurance
|
66
|
57
|
9
|
15.8
|
%
|
||||||||
Supplies
|
126
|
125
|
1
|
0.8
|
%
|
||||||||
Marketing
|
154
|
108
|
46
|
42.6
|
%
|
||||||||
Business
development
|
92
|
81
|
11
|
13.6
|
%
|
||||||||
Professional
fees
|
152
|
175
|
(23
|
)
|
-13.1
|
%
|
|||||||
Other
real estate owned expense
|
(263
|
)
|
-
|
(263
|
)
|
n/a
|
|||||||
Intangible
amortization
|
214
|
221
|
(7
|
)
|
-3.2
|
%
|
|||||||
All
other
|
642
|
551
|
91
|
16.5
|
%
|
||||||||
Total
other
|
1,183
|
1,318
|
(135
|
)
|
-10.2
|
%
|
|||||||
Total
noninterest expense
|
$
|
5,908
|
$
|
6,182
|
$
|
(274
|
)
|
-4.4
|
%
|
Six
months ended June 30,
|
|||||||||||||
Noninterest
expense:
|
2007
|
2006
|
Change
|
Change-%
|
|||||||||
Salaries
and employee benefits
|
$
|
6,971
|
$
|
7,167
|
$
|
(196
|
)
|
-2.7
|
%
|
||||
Occupancy
|
1,831
|
1,722
|
109
|
6.3
|
%
|
||||||||
Data
processing
|
940
|
985
|
(45
|
)
|
-4.6
|
%
|
|||||||
Other:
|
|||||||||||||
Insurance
|
139
|
121
|
18
|
14.9
|
%
|
||||||||
Supplies
|
151
|
141
|
10
|
7.1
|
%
|
||||||||
Marketing
|
258
|
206
|
52
|
25.2
|
%
|
||||||||
Business
development
|
198
|
161
|
37
|
23.0
|
%
|
||||||||
Professional
fees
|
357
|
339
|
18
|
5.3
|
%
|
||||||||
Other
real estate owned expense
|
(244
|
)
|
(7
|
)
|
(237
|
)
|
3385.7
|
%
|
|||||
Intangible
amortization
|
428
|
442
|
(14
|
)
|
-3.2
|
%
|
|||||||
All
other
|
1,333
|
1,217
|
116
|
9.5
|
%
|
||||||||
Total
other
|
2,620
|
2,620
|
-
|
0.0
|
%
|
||||||||
Total
noninterest expense
|
$
|
12,362
|
$
|
12,494
|
$
|
(132
|
)
|
-1.1
|
%
|
June
30, 2007
|
December
31, 2006
|
Change
|
||||||||
Non-accrual
loans
|
$
|
605
|
$
|
495
|
$
|
110
|
||||
Loans
past due 90 days and still
|
||||||||||
accruing
interest
|
31
|
155
|
(124
|
)
|
||||||
Total
non-performing loans
|
636
|
650
|
(14
|
)
|
||||||
Other
real estate owned
|
154
|
2,002
|
(1,848
|
)
|
||||||
Total
non-performing assets
|
$
|
790
|
$
|
2,652
|
$
|
(1,862
|
)
|
|||
Non-performing
loans to total loans
|
0.07
|
%
|
0.07
|
%
|
0.00
|
%
|
||||
Non-performing
assets to total loans
|
0.08
|
%
|
0.29
|
%
|
-0.21
|
%
|
||||
Non-performing
assets to total assets
|
0.06
|
%
|
0.21
|
%
|
-0.15
|
%
|
Regulatory
requirements to be:
|
Actual
Regulatory Capital Ratios as of:
|
||||||||||||
Adequately
Capitalized
|
Well
- Capitalized
|
June
30, 2007
|
December
31, 2006
|
||||||||||
Total
risk-based capital
|
|||||||||||||
as
% of risk-weighted assets
|
|||||||||||||
Consolidated
|
8.0
|
%
|
n/a
|
11.3
|
%
|
11.2
|
%
|
||||||
West
Bank
|
8.0
|
%
|
10.0
|
%
|
10.9
|
%
|
11.8
|
%
|
|||||
Tier
1 capital as % of risk-weighted assets:
|
|||||||||||||
Consolidated
|
4.0
|
%
|
n/a
|
10.5
|
%
|
10.4
|
%
|
||||||
West
Bank
|
4.0
|
%
|
6.0
|
%
|
9.1
|
%
|
9.0
|
%
|
|||||
Tier
1 capital as % average assets
|
|||||||||||||
Consolidated
|
4.0
|
%
|
n/a
|
8.6
|
%
|
8.5
|
%
|
||||||
West
Bank
|
4.0
|
%
|
5.0
|
%
|
7.5
|
%
|
7.3
|
%
|
Vote
|
|||||||
For
|
Withheld
|
||||||
Frank
W. Berlin
|
16,397,538
|
80,236
|
|||||
Wendy
L. Carlson
|
16,397,213
|
80,561
|
|||||
Steven
G. Chapman
|
16,394,870
|
82,904
|
|||||
Michael
A. Coppola
|
15,350,466
|
1,127,308
|
|||||
Orville
E. Crowley
|
16,397,538
|
80,236
|
|||||
George
D. Milligan
|
16,367,747
|
110,027
|
|||||
Robert
G. Pulver
|
16,393,548
|
84,226
|
|||||
Thomas
E. Stanberry
|
16,398,325
|
79,449
|
|||||
Jack
G. Wahlig
|
16,352,304
|
125,470
|
|||||
Connie
Wimer
|
16,343,371
|
134,403
|
Exhibits | ||
3.1
|
Restated
Articles of Incorporation of the Company(1)
|
|
3.2
|
By-laws
of the Company(1)
|
|
10.1
|
Lease
for Main Bank Facility(1)
|
|
10.2
|
Supplemental
Agreement to Lease for Main Bank Facility(1)
|
|
10.3
|
Short-term
Lease related to Main Bank Facility(1)
|
|
10.4
|
Assignment(1)
|
|
10.5
|
Lease
Modification Agreement No. 1 for Main Bank Facility(1)
|
|
10.6
|
Memorandum
of Real Estate Contract(1)
|
|
10.7
|
Affidavit(1)
|
|
10.8
|
Addendum
to Lease for Main Bank Facility(1)
|
|
10.9
|
Data
Processing Contract(1)
|
|
10.10
|
Employment
Contract(1)
|
|
10.11
|
Intentionally
omitted
|
|
10.12
|
Data
Processing Contract Amendment(2)
|
|
10.13
|
Intentionally
omitted
|
|
10.14
|
Intentionally
omitted
|
|
10.15
|
The
Employee Savings and Stock Ownership Plan, as
amended(3)
|
|
10.16
|
Amendment
to Lease Agreement(4)
|
|
10.17
|
Employment
Agreement with Scott Eltjes(4)
|
|
10.18
|
Consulting
Agreement with David L. Miller(6)
|
|
10.19
|
West
Bancorporation, Inc. Restricted Stock Compensation
Plan(5)
|
|
10.20
|
Employment
Agreement between Investors Management Group Ltd. and Jeff
Lorenzen(7)
|
|
10.21
|
Assignment
and Assumption of Lease and Consent to Assignment(8)
|
|
10.22
|
2007
Amendment to Lease Agreement(9)
|
|
31.1
|
Certification
of Chief Executive Officer under Section 302 of the Sarbanes-Oxley
Act of
2002
|
|
31.2
|
Certification
of Chief Financial Officer under Section 302 of the Sarbanes-Oxley
Act of
2002
|
|
Certification
of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350,
as Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|
||
32.2
|
Certification
of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350,
as Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|
(1)
|
Incorporated
herein by reference to the related exhibit filed with the Form
10 on March
11, 2002.
|
|
(2)
|
Incorporated
herein by reference to the related exhibit filed with the Form
10-K on
March 26, 2003.
|
|
(3)
|
Incorporated
herein by reference to the related exhibit filed with the Form
S-8 on
October 29, 2004.
|
|
(4)
|
Incorporated
herein by reference to the related exhibit filed with the Form
10-K on
March 3, 2005.
|
|
(5)
|
Incorporated
herein by reference to the definitive proxy statement 14A filed
on March
10, 2005.
|
|
(6)
|
Incorporated
herein by reference to the related exhibit filed with the Form
10-Q on May
6, 2005.
|
|
(7)
|
Incorporated
herein by reference to the related exhibit filed with the Form
8-K on
February 22, 2006.
|
|
Incorporated
herein by reference to the related exhibit filed with the Form
10-K on
March 8, 2006.
|
||
(9)
|
Incorporated
herein by reference to the related exhibit filed with the Form
10-Q on May
4, 2007.
|
West
Bancorporation, Inc.
|
||
(Registrant)
|
||
August 3, 2007 | By: | /s/ Thomas E. Stanberry |
Dated |
Thomas
E. Stanberry
|
|
Chairman,
President and Chief Executive
Officer
|
August 3, 2007 | By: | /s/ Douglas R. Gulling |
Dated |
Douglas
R. Gulling
|
|
Executive
Vice President and Chief Financial Officer
(Principal
Accounting Officer)
|
Exhibit
No.
|
Description
|
|
31.1
|
Certification
of Chief Executive Officer under Section 302 of the Sarbanes-Oxley
Act of
2002
|
|
31.2
|
Certification
of Chief Financial Officer under Section 302 of the Sarbanes-Oxley
Act of
2002
|
|
Certification
of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350,
as Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|
||
32.2
|
Certification
of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350,
as Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|