[GRAPHIC]
Decidedly Different.
[WEST BANCORPORATION LOGO]
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2007 ANNUAL REPORT
1
West Bancorporation, Inc. & Subsidiaries
FINANCIAL HIGHLIGHTS (dollars in thousands, except per share amounts)
2007 2006 2005 2004 2003
--------------------------------------------------------------------------
YEAR-END BALANCES
Assets $1,339,968 $1,268,536 $1,244,380 $1,148,435 $1,000,612
Investment securities 237,378 261,578 274,719 347,052 274,913
Loans 985,423 904,422 867,504 725,845 599,355
Non-performing loans 5,877 650 4,912 860 1,793
Deposits 910,925 925,334 944,893 865,932 705,074
Stockholders' equity 121,606 113,812 104,521 97,620 92,896
AVERAGE BALANCES
Assets 1,309,119 1,298,410 1,192,208 1,066,511 932,907
Investment securities 252,477 270,484 313,015 301,718 246,823
Loans 945,669 918,992 785,164 645,875 531,033
Deposits 903,972 991,603 862,376 764,741 608,544
Stockholders' equity 116,683 107,345 100,392 94,209 88,742
RESULTS OF OPERATIONS
Net interest income 38,204 39,067 38,373 35,647 32,322
Provision for loan losses 2,350 1,725 1,775 1,200 850
Noninterest income 16,052 15,871 11,517 10,706 9,305
Noninterest expense 24,510 24,678 18,645 16,968 14,694
Income before income taxes 27,396 28,535 29,470 28,185 26,083
Net income 18,920 19,407 20,075 18,614 17,283
PER COMMON SHARE
Net income 1.08 1.11 1.14 1.06 0.98
Dividends 0.640 0.625 0.610 0.595 0.580
Book value 6.96 6.49 5.96 5.57 5.25
Closing price 13.04 17.78 17.81 16.77 15.67
RATIOS
Return on average equity 16.21% 18.08% 20.00% 19.76% 19.48%
Return on average assets 1.45% 1.49% 1.68% 1.75% 1.85%
Effciency ratio 43.91% 43.42% 36.22% 35.78% 34.78%
Net interest margin 3.28% 3.38% 3.62% 3.71% 3.77%
Average equity as %
of average assets 8.91% 8.27% 8.42% 8.83% 9.51%
Allowance for loan losses
as % of loans 0.91% 0.94% 0.88% 0.90% 1.00%
Net charge-offs as %
of average loans 0.20% 0.09% 0.09% 0.10% 0.05%
Non-performing loans
as % of loans 0.60% 0.07% 0.57% 0.12% 0.30%
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2
SHAREHOLDERS' LETTER
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Dear Shareholder:
At the end of 2006, we predicted that 2007 would be a challenging year for the
Company. We were correct.
Net income for the Company was $18,920,000 or $1.08 per share, down 2.51% from
$19,407,000 or $1.11 per share in 2006. Return on average equity was 16.21% and
return on average assets was 1.45%. The overall efficiency ratio was 43.91%,
while the efficiency ratio for our subsidiary, West Bank, was 34.04%.
Net interest income earned by West Bank continues to be the biggest driver of
the Company's net income. Net interest income was $38,204,000 in 2007 versus
$39,067,000 in 2006. As in 2006, the relatively flat yield curve and the
increase in competition in West Bank's core markets contributed to the decrease
in net interest income.
We continue to believe that we will be successful by meeting the financial needs
of our clients with practical financial solutions and by working in partnership
with each of our four stakeholders: clients, employees, stockholders and the
community.
In 2007, we paid a cash dividend of $.64 per share for an annualized dividend
yield of 4.91% based on the year-end closing stock price of $13.04. Total return
on an investment in our stock from January 1 through December 31, 2007, was
-23.51% compared to the total return of the SNL Midwest Bank Index of -22.06%
and the NASDAQ Americas' Community Bank Index of -25.02%. The Company's stock
performance was disappointing for us, but was similar to our peers. The
financial crisis caused by defaults in the sub-prime mortgage industry and
devaluations in the related structured investment vehicles affected the stock
performance of almost all financial services companies, including many, like the
Company, which did not participate in either sub-prime mortgage products or
structured investment vehicles.
The clients profiled in this annual report, Triton Homes, Johnson County
Historical Society, and The Iowa Clinic, represent the type of long-standing
relationships we have with our many clients. Our goal is to provide each client
with the necessary, practical and functional financial solutions ranging from
financing, to treasury management, to depository products to asset management.
In 2007, the West Bancorporation Foundation made 72 charitable grants totaling
$227,000. Several community projects were accomplished as our employees once
again contributed approximately 11,000 hours to community service in our central
and eastern Iowa markets.
The first full year following the merger of VMF Capital and Investors Management
Group into WB Capital Management Inc. proved to be a success. WB Capital ended
the year with approximately $4.5 billion of assets under management. Net income
increased to $568,000 from $265,000 in 2006 due to efficiencies gained from the
merger.
The primary reason we are successful is because of our employees. Their
dedication to our clients, our communities, and to their co-workers makes the
Company a special place to work and a special place for our clients. Several
outstanding employees were recognized for their efforts in 2007. We awarded the
David L. Miller Award to Ron Degen, a senior vice president in commercial
banking at West Bank, for his determination and success. This award goes to the
employee who demonstrates the determination and grit Dave Miller demonstrated
during his career. Marie Roberts received the Outstanding West Bank Employee
Award for her efforts as vice president and controller, and Rachel Cropp
received the Outstanding WB Capital Employee Award for her role as assistant
vice president/operations manager. Finally, Kevin Smith, a senior vice president
in commercial banking, received the Community Spirit Award for his contribution
to many community organizations.
2008 will be another challenging year for the Company, particularly at West
Bank. The credit quality of our loans declined in 2007 due to the downturn in
the home building business in both central and eastern Iowa. We are concerned
that the current slowdown in economic growth will also impact the commercial
real estate business in our markets with a similar impact on our loan portfolio.
We are taking the necessary steps to minimize the impact to the Company and will
maintain adequate reserves. We also expect the quality of new loans we make in
2008 will be in line with our traditional high standards.
To be successful, we will remain focused on our core businesses as a community
bank and an asset manager. To enhance our competitive advantage, we will be
introducing new products at West Bank in the first and second quarters and later
in the year at WB Capital. At all times, we will continue to be cost conscious
and strive to remain among the most efficient financial holding companies in the
country.
All of us at West Bank and WB Capital look forward to delivering exceptional
service and financial solutions to our clients, and providing competitive
financial results for our shareholders.
Very truly yours,
/s/ Thomas E. Stanberry
Thomas E. Stanberry
Chairman, President and
Chief Executive Officer
3
[GRAPHIC]
Decidedly Different Solutions.
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CUSTOMER SUCCESS STORIES
4
What Drives Innovation
Developing creative, value-driven, customer-friendly products and services for
those who desire decidedly different solutions.
Health Savings Accounts
West Bank is now offering Health Savings Accounts (HSAs) to employees of
businesses with high deductible health plans. HSA's allow employees to combine a
lower-cost high-deductible health insurance policy with separate tax-free
savings accounts to pay deductibles and additional qualified out-of-pocket
medical expenses. The money contributed to HSAs grows tax free over time, giving
employees a smart way to save for qualified medical expenses and follows the
employee if they change employers or when they retire.
Marc Meyer, West Bank senior vice president, said offering HSAs provides a great
way to introduce West Bank services to new households. "Offering this product as
a benefit to our commercial customers' employees helps attract a new set of
customers we may not have been able to reach previously," he explained. The
product is especially valuable for smaller employers who don't have the
advantage of belonging to a large health group. "It's a great benefit that
allows and encourages employees to manage their health costs themselves."
West Bank@Work
West Bank has partnered with several businesses to provide free and discounted
financial services for employees. West Bank@Work bundles existing West Bank
services to offer savings to a business' employees.
"Our intentions with West Bank@Work are to help solidify that commercial
relationship, and in turn be able to offer a company's employees a discounted
way to do their day-to-day banking," said Paige Sterling-Sitroneto, West Bank
vice president of treasury management.
Among the many benefits offered through the program are free ATM/Debit cards, no
minimum balance monthly maintenance fees, and no annual fees for debit and ATM
banking done through Privilege Status or West Bank ATMs. "It's a benefit to the
employees of the company at no charge to the employer," Sterling-Sitroneto
added.
SmartyPig(R)
Everyone has a reason to save, but the number of people actually putting money
aside is dwindling as credit card use and debt balances skyrocket. West Bank has
partnered with SmartyPig to help people save for the things they want instead of
sinking deeper into debt. Co-founder Mike Ferrari describes SmartyPig as "a
simple, smart and fun way for consumers to save money for specific goals in
their life." Those interested in setting up an account need to log on to
www.smartypig.com and follow the steps to establish an account. Once a goal is
determined, a SmartyPig account is created. Users are then able to save money at
their own pace until their goal is reached. SmartyPig allows sensible savers to
invite their family and friends to help them reach their goals, pays a
competitive interest rate on the money they are saving and provides additional
incentives from top retailers who sell exactly what they are saving for when the
goal is reached. For more details or to open an account, visit
www.smartypig.com.
WB Capital Management AAllocation(sm) Program
Individual and institutional investors have a lot in common. Each seeks to
develop diversified portfolios based on risk tolerance, timelines, and market
fluctuations. Until now, balancing and rebalancing asset allocations in response
to daily market fluctuations was often the responsibility of the individual
investor.
WB Capital Management is here to help. Through the AAllocation Program,
investors with as little as $250,000 can enjoy portfolio management solutions
once reserved for large institutions. "What works for a large institution also
works for an individual," said Chris Cook, director and institutional consultant
for WB Capital Management Inc. "Every investor needs to be adequately
diversified. We're applying institutional thinking to all AAllocation account
holders regardless of size," he added.
5
What Defines Customer Service
Developing and strengthening everyday working relationships, contributing to the
communities we serve, and providing unique financial solutions.
Building on the "American Dream"
Providing stylish, affordable homes to first-time home buyers wasn't, at first,
a business concept Joel Goodman was sure a bank would want to stand behind. But
he knew he had a good idea, and he had established a good relationship with Ron
Degen, senior vice president at West Bank. So he took his business proposition
to him.
"I don't think residential construction financing was a big part of West Bank's
business at the time," Goodman explained. But Degen had helped him with his own
first home loan, so he knew Ron would lend a helpful ear to his proposal and
find a way to make it happen. And he did.
"Once we started doing projects and building, I knew West Bank would be a great
partner with Triton Homes," Goodman said. "It has become a successful
partnership."
According to Builder magazine, Triton Homes is the ninth fastest growing home
builder in the country in the last four years. "Our mission is to passionately
promote the dream of home ownership," said Goodman. "We make it possible for
people to own instead of rent."
By targeting working professionals in their twenties and thirties, Triton Homes
has found a niche group that appreciates the company's efforts to provide them
with affordable housing. The company succeeds by focusing on processes and price
points that favorably compete with what a young person might be paying for rent.
Degen believes Goodman's success stems from a strong work ethic and solid
character. "When I think of Joel, I think of integrity, honesty, a great team
leader, and a family man. He surrounds himself with good people. Triton Homes
has put a team together that just gets it done," Degen said. "West Bank tries to
give them that kind of service as well, and I think they value that from their
relationship with us."
It is also West Bank's personal approach that keeps Goodman a loyal West Bank
customer. "I've been a West Bank customer for close to twenty years. I got my
first checking account and home loan there, and I've continued to bank with West
Bank ever since. They try to invest in people as much as they do the business. I
think they embody service by trying to understand the customer's business and
help them become successful."
[PHOTO]
Ron Degen
West Bank Senior Vice President
6
[PHOTO]
Keith Kurth
West Bank Vice President
Providing Decidedly Different Solutions
After being presented with a great, yet unexpected opportunity, the Johnson
County Historical Society was scrambling. In an effort to develop the area
surrounding the new Coralville Marriott Hotel and Conference Center and generate
attractions for its guests, the city of Coralville was offering rent-free space
to the Historical Society in a nearby building. But the building was just a
shell of a structure and needed interior renovations, requiring a substantial
amount of money the Historical Society didn't have.
"We found out we could have the space in February and would need to move in by
September," said Shaner Magalhaes, executive director of the Johnson County
Historical Society. Knowing that raising the money would be nearly impossible in
such a short time, the Historical Society's board of directors came up with an
idea. They would seek a loan to fund the renovations up front. The Historical
Society would then conduct the fundraising necessary to repay the debt.
Dell Richard, then president of the Historical Society's board of directors,
said West Bank's commitment to the community prompted his contact. He approached
the bank with the board of directors' plan and said he was very well received.
Knowing the Historical Society's desire to keep borrowing costs to a minimum,
West Bank presented a decidedly different solution for financing the
renovations. Combining the loan and fundraising needs of the Historical Society,
The West Bancorporation Foundation awarded a grant to cover the interest on the
low-interest loan made by the bank. By developing a unique financial solution
that worked for all parties, the loan from West Bank, and contribution from The
West Bancorporation Foundation, contributed to improving the city for residents
and visitors alike.
"West Bank recognized the opportunity for the Johnson County Historical Society
as an added attraction for Coralville and that it wasn't going to happen unless
somebody stepped up financially," said Magalhaes. West Bank worked in
partnership with three other local banks to provide the immediate funding the
Historical Society needed for building renovations.
"We want to help support and expand that area of renovation in Coralville. West
Bank's participation in financing projects in this area of Coralville and the
renovations for the Historical Society underscores our overall commitment to
community on many levels," said Keith Kurth, West Bank vice president for
Eastern Iowa. "By combining the loan and fundraising needs of the Historical
Society, we are supporting educational outreach for our citizens as well as
attractions that appeal to area visitors."
Facilitating A Healthier Community
After almost 15 years of providing state-of-the-art medical care and doubling
both the number of physicians and specialty areas they provided, The Iowa Clinic
was beginning to feel the squeeze. With more than 125 practicing physicians and
healthcare providers covering 33 medical specialties, they felt the need to
expand their facilities.
The Clinic developed an aggressive plan to nearly double the size of their West
Lakes building in West Des Moines. The project, scheduled for completion in
October 2008, will make health care more convenient for more than 400,000
patients seen annually in their offices by consolidating entire departments and
housing them in the new facility. Some departments are currently divided between
separate Mercy Medical Center and Iowa Methodist Medical Center campuses.
Steven Herwig, D.O., MBA and chair of The Iowa Clinic's board of directors, said
the expansion will be most advantageous to patients who will enjoy the
convenience and time-saving benefit of more services under one roof. "A patient
can have an x-ray and come immediately up to my office and have the images
available," Dr. Herwig explained.
Two new hospitals planned for the area also put the clinic in a prime spot. "We
couldn't be in a better location with the new hospitals going up on either side
of us," he said.
Construction financing for the new facility was provided by West Bank. David
Zielke, chief financial officer for The Iowa Clinic, described the bidding
process for the construction financing as very competitive. But he cited West
Bank's local ties, competitive rates, and flexible terms as factors that made
them the most attractive choice.
Dr. Herwig explained further that West Bank's reputation as a quality financial
institution made them a good fit for the kind of partner the Clinic was seeking.
"We know what West Bank means to the community. Not only did they compete
aggressively, but we knew what kind of partner we were going to get," he said.
"We're a part of the Des Moines community, so we prefer to do business with
those who are local to the community as well."
Ryan Wedemeyer, West Bank vice president, said that while West Bank has
conducted business in the past with The Iowa Clinic, this project is the most
significant to date. "From West Bank's perspective, this is a great opportunity
for us to be involved in a sizeable project for West Des Moines and the
community we serve."
[PHOTO]
Ryan Wedemeyer
West Bank Vice President
7
[GRAPHIC]
Decidedly Different Polish.
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EMPLOYEE CAREER DEVELOPMENT
8
What Denotes Employee Pride, Passion, & Professionalism
Curious, ambitious, excellence-driven individuals always sharpening their skills
for bringing unique financial solutions to their customers and their community.
Helping Brighten Employees' Futures
Always eager to encourage improvement, the Company created the educational
assistance program to provide financial support to West Bank and WB Capital
Management Inc. employees with the desire to pursue additional education.
"We feel that if employees have the ambition and commitment to work toward a
degree or an advanced degree, it's something that needs to be encouraged," said
Jill Hansen, West Bank vice president and chief people officer. "Balancing their
time between work and school is pretty impressive, and I think employees who
take the initiative to do that deserve the support of their employer," she
added.
Since its inception in 2004, 22 employees have participated or are currently
participating in the Company's educational assistance program receiving or
pursuing associate, bachelors or masters degrees. Here are two examples of
employees who have benefited from the educational assistance program and have
shown great determination in their quest for self-improvement.
Adisa Alibasic
Adisa Alibasic has been a West Bank employee for five years working as a teller
and was recently promoted to personal banker. Through West Bank's educational
assistance program, Adisa works part time towards her associate's degree in
marketing at Des Moines Area Community College while being employed full time at
West Bank.
"The education I received at DMACC has helped me advance both in my personal and
business life. I've been able to work full time while attending school without
the concern of student loans. The educational assistance program has made it
really easy for me to go to school," Adisa said.
West Bank was also able to help Adisa with her internship requirement by
providing her with an assignment in the marketing department last year. "It was
a win-win opportunity when Adisa applied for the program," said Katy Mackay,
senior vice president of marketing. "Her branch banking experience and knowledge
of the company enabled her to hit the ground running. In turn, the internship
program provided Adisa with an opportunity to apply her academic knowledge and
skills to marketing, research, training, and planning experiences." Adisa will
graduate in May and intends to go on to earn her bachelor's degree.
John Osier
As a fixed income analyst for WB Capital Management Inc., John Osier felt
pursuing his MBA degree was the next logical step for his chosen career. "Most
members of our fixed income team have their MBAs. After I completed my CFA two
years ago, I felt it was a natural progression," he said.
With the help of West Bancorporation's educational assistance program, Osier is
enrolled in the University of Iowa MBA for Professionals and Managers program.
He said the support he's received from his employer has made pursuing an
advanced degree happen much sooner and quicker than if he'd had no financial
help.
"This is a great benefit and something that really encourages employees to get
more education," he added. "It allows people to expand and help themselves
professionally, but at the same time, makes them better employees and more
successful overall." John expects to graduate in the fall of 2010.
Staying Connected to Our Community
West Bank and WB Capital Management Inc. have always encouraged employees to
stay involved in their communities. Volunteer hours continue to increase
annually as new employees show the same commitment to service as veteran
employees. According to Brad Winterbottom, West Bank president, employees logged
approximately 11,000 hours of community service in 2007 alone. "The numbers show
that new people who are joining West Bank and WB Capital Management Inc. are
picking up the torch where some of our great volunteers who have retired left
off," Winterbottom said.
Han Wu, West Bank vice president, said Variety - the Children's Charity is
always popular with employees. "I recruit West Bank and WB Capital employees to
help raise funds for Iowa's children in need through the annual telethon. We've
been sorting and processing pledges for 14 years. Not only do you get to
volunteer, but you get to see the behind-the-scenes production of the telethon.
We make it a fun event for our volunteers. It's a rewarding experience." Han
added.
9
[GRAPHIC]
Decidedly Different Leadership.
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DIRECTORS & EXECUTIVE OFFICERS
10
West Bancorporation Board of Directors
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(1) Audit Committee (2) Compensation Committee
(3) Nominating & Corporate Governance Committee
[INDIVIDUAL PHOTOS]
Frank W. Berlin (2, 3)
President, Frank W. Berlin & Associates
Board member since 1995
Wendy L. Carlson (1)
CFO & General Counsel,
American Equity Investment Life Holding Co.
Board member since 2007
Orville E. Crowley (2)
President, Linden Lane Farms
Board member since 1984
George D. Milligan (1, 2)
President, The Graham Group, Inc.
Board member since 2005
Robert G. Pulver (2, 3)
President & CEO, All-State Industries, Inc.
Board member since 1984
Thomas E. Stanberry
Chairman, President & CEO
Board member since 2003
Jack G. Wahlig (1)
President, Integrus Financial, L.C.
Board member since 2001
Connie Wimer (1, 3)
Chairman, Business Publications Corporation
Board member since 1985
Executive Officers
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[INDIVIDUAL PHOTOS]
Thomas E. Stanberry
Chairman, President &
Chief Executive Officer
Brad L. Winterbottom
Executive Vice President
President, West Bank
Douglas R. Gulling
Executive Vice President &
Chief Financial Officer
Sharen K. Surber
Executive Vice President,
West Bank
Scott D. Eltjes
Chief Executive Officer,
WB Capital Management Inc.
Jeffrey D. Lorenzen
President & Chief Investment Officer,
WB Capital Management Inc.
11
West Bancorporation, Inc. & Subsidiaries
CONSOLIDATED BALANCE SHEETS (dollars in thousands, except per share amounts)
DECEMBER 31
----------------------------
ASSETS 2007 2006
-------------------------------------------------------------------------------------------------
Cash and due from banks $ 49,529 $ 35,063
Federal funds sold and other short-term investments 414 615
----------- -----------
Cash and cash equivalents 49,943 35,678
Securities available for sale 231,427 256,731
Federal Home Loan Bank stock, at cost 5,951 4,847
Loans 985,423 904,422
Allowance for loan losses (8,935) (8,494)
----------- -----------
Loans, net 976,488 895,928
Premises and equipment, net 5,181 5,375
Accrued interest receivable 7,829 8,587
Goodwill and other intangible assets 27,061 27,917
Bank-owned life insurance 24,341 22,956
Other assets 11,747 10,517
----------- -----------
Total assets $ 1,339,968 $ 1,268,536
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
-------------------------------------------------------------------------------------------------
Liabilities
------------------------------------------------------------------
Deposits:
Noninterest-bearing demand $ 196,698 $ 203,964
Interest-bearing demand 85,027 57,605
Savings 243,405 234,240
Time, in excess of $100 160,936 256,105
Other time 224,859 173,420
----------- -----------
Total deposits 910,925 925,334
Federal funds purchased and securities
sold under agreements to repurchase 166,930 109,346
Other short-term borrowings 2,672 1,929
Long-term borrowings 123,619 106,019
Accrued expenses and other liabilities 14,216 12,096
----------- -----------
Total liabilities 1,218,362 1,154,724
----------- -----------
Stockholders' Equity
------------------------------------------------------------------
Common stock, no par value; authorized 50,000,000 shares;
17,462,182 and 17,536,682 shares issued and outstanding at
December 31, 2007 and 2006, respectively 3,000 3,000
Additional paid-in capital 32,000 32,000
Retained earnings 87,084 80,397
Accumulated other comprehensive loss (478) (1,585)
----------- -----------
Total stockholders' equity 121,606 113,812
----------- -----------
Total liabilities and stockholders' equity $ 1,339,968 $ 1,268,536
=========== ===========
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12
West Bancorporation, Inc. & Subsidiaries
CONSOLIDATED STATEMENTS
OF INCOME (dollars in thousands, except per share amounts)
YEARS ENDED DECEMBER 31,
-------------------------------
Interest Income: 2007 2006 2005
-------------------------------
Loans $70,155 $67,176 $50,361
Securities:
Government agencies and corporations 5,834 6,046 6,903
States and political subdivisions 3,742 4,117 4,099
Other 1,544 1,494 1,700
Federal funds sold and other short-term investments 752 903 412
------- ------- -------
Total interest income 82,027 79,736 63,475
Interest Expense:
Demand deposits 1,830 464 184
Savings deposits 7,118 7,448 5,298
Time deposits 21,203 23,557 10,459
Federal funds purchased and securities
sold under agreements to repurchase 6,769 4,002 2,484
Other short-term borrowings 345 46 1,683
Long-term borrowings 6,558 5,152 4,994
------- ------- -------
Total interest expense 43,823 40,669 25,102
------- ------- -------
Net interest income 38,204 39,067 38,373
Provision for Loan Losses 2,350 1,725 1,775
------- ------- -------
Net interest income after provision for loan losses 35,854 37,342 36,598
------- ------- -------
Noninterest Income:
Service charges on deposit accounts 4,794 4,821 4,660
Trust services 758 767 820
Investment advisory fees 7,920 8,040 3,349
Increase in cash value of bank-owned life insurance 890 857 843
Net realized gains (losses) from securities available for sale 5 (171) 291
Other income 1,685 1,557 1,554
------- ------- -------
Total noninterest income 16,052 15,871 11,517
------- ------- -------
Noninterest Expense:
Salaries and employee benefits 13,560 13,937 10,308
Occupancy 3,579 3,433 2,497
Data processing 1,912 1,920 1,428
Other expenses 5,459 5,388 4,412
------- ------- -------
Total noninterest expense 24,510 24,678 18,645
------- ------- -------
Income before income taxes 27,396 28,535 29,470
Income Taxes 8,476 9,128 9,395
------- ------- -------
Net income $18,920 $19,407 $20,075
======= ======= =======
Earnings per Share:
Basic $ 1.08 $ 1.11 $ 1.14
======= ======= =======
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13
West Bancorporation, Inc. & Subsidiaries
CONSOLIDATED STATEMENTS OF
STOCKHOLDERS' EQUITY (dollars in thousands, except per share amounts)
Accumulated
Other
Additional Comprehensive
Comprehensive Common Paid-in Retained Income
Years Ended December 31, 2007, 2006, & 2005 Income Stock Capital Earnings (Loss) Total
------------------------------------------------------------------------------------------------------------------------------------
Balance, December 31, 2004 $ 3,000 $ 32,000 $ 62,565 $ 55 $ 97,620
Comprehensive Income
Net income $ 20,075 -- -- 20,075 -- 20,075
Other comprehensive loss,
unrealized (losses) on securities,
net of reclassification adjustment,
net of tax (2,485) -- -- -- (2,485) (2,485)
---------
Total Comprehensive Income $ 17,590
=========
Cash dividends declared,
$0.610 per share -- -- (10,689) -- (10,689)
--------- --------- --------- --------- ---------
Balance, December 31, 2005 3,000 32,000 71,951 (2,430) 104,521
Comprehensive Income
Net income $ 19,407 -- -- 19,407 -- 19,407
Other comprehensive income,
unrealized gains on securities,
net of reclassification adjustment,
net of tax 845 -- -- -- 845 845
---------
Total Comprehensive Income $ 20,252
=========
Cash dividends declared,
$0.625 per share -- -- (10,956) -- (10,956)
Purchase of fractional shares resulting
from stock dividend -- -- (5) -- (5)
--------- --------- --------- --------- ---------
Balance, December 31, 2006 3,000 32,000 80,397 (1,585) 113,812
Comprehensive Income
Net income $ 18,920 -- -- 18,920 -- 18,920
Other comprehensive income,
unrealized gains on securities,
net of reclassification adjustment,
net of tax 1,107 -- -- -- 1,107 1,107
---------
Total Comprehensive Income $ 20,027
=========
Shares reacquired under the
common stock repurchase plan -- -- (974) -- (974)
Cash dividends declared,
$0.640 per share -- -- (11,224) -- (11,224)
Other -- -- (35) -- (35)
--------- --------- --------- --------- ---------
Balance, December 31, 2007 $ 3,000 $ 32,000 $ 87,084 $ (478) $ 121,606
========= ========= ========= ========= =========
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FORM 10-K
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A copy of the Company's annual report to the Securities and Exchange Commission
on Form 10-K will be mailed when available without charge to shareholders upon
written request to the Chief Financial Officer. The annual report will also be
available on the Securities and Exchange Commission's Web site at
http://www.sec.gov/edgar/searchedgar/webusers.htm and through a link on the
Company's investor relations web page at www.westbankiowa.com.
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West Bancorporation, Inc. & Subsidiaries
STOCK INFORMATION
West Bancorporation, Inc. common stock is traded on the NASDAQ Global Market and
quotations are furnished by the NASDAQ System. There were 282 common
stockholders of record on December 31, 2007, and an estimated 1,000 additional
beneficial holders whose stock was held in street name by brokerage houses.
Market and Dividend Information (1)
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2007 High Low Dividends
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1st quarter $18.25 $14.29 $0.160
2nd quarter 16.36 14.17 0.160
3rd quarter 16.19 14.68 0.160
4th quarter 15.98 11.85 0.160
2006
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1st quarter $18.95 $16.67 $0.152
2nd quarter 19.98 15.24 0.152
3rd quarter 18.10 15.61 0.160
4th quarter 19.02 16.69 0.160
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(1) The prices shown are the high and low sale prices for the Company's common
stock. The market quotations, reported by NASDAQ, do not include retail
markup, markdown or commissions.
NASDAQ SYMBOL: WTBA WALL STREET JOURNAL & OTHER NEWSPAPERS: WestBcp
Transfer Agent/Dividend Paying Agent General Counsel Independent Registered Public Accounting Firm
------------------------------------ --------------- ---------------------------------------------
Illinois Stock Transfer Company Ahlers & Cooney, P.C. McGladrey & Pullen, LLP
209 West Jackson Boulevard, Suite 903 100 Court Avenue 400 Locust Street
Chicago, Illinois 60606-6905 Suite 600 Suite 640
800-757-5755 Des Moines, IA 50309 Des Moines, IA 50309
www.illinoisstocktransfer.com
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The Board of Directors of West Bancorporation, Inc.:
We have audited, in accordance with the standards of the Public Company
Accounting Oversight Board (United States), the consolidated balance sheets of
West Bancorporation, Inc. and subsidiaries as of December 31, 2007, and 2006,
and the related consolidated statements of income, stockholders' equity, and
cash flows (not presented herein) for each of the three years in the period
ended December 31, 2007 and in our report dated March 5, 2008, we expressed an
unqualified opinion on those consolidated financial statements.
In our opinion, the information set forth in the accompanying condensed
consolidated financial statements appearing in this report is fairly presented,
in all material respects, in relation to the consolidated financial statements
from which it has been derived.
Des Moines, Iowa /s/ McGladrey & Pullen, LLP
March 5, 2008
15
WEST BANK BOARD OF DIRECTORS
Frank W. Berlin
President, Frank W. Berlin & Associates
Thomas A. Carlstrom
Neurosurgeon
Joyce A. Chapman
Executive Vice President, West Bank - Retired
Craig P. Damos
President & CEO, The Weitz Company
Douglas R. Gulling
Chief Financial Officer, West Bank
Kaye R. Lozier
Director of Development,
Greater Des Moines Community Foundation
David R. Milligan
Attorney, Ahlers & Cooney, PC
George D. Milligan
President, The Graham Group, Inc.
Robert G. Pulver
President & CEO,
All-State Industries, Inc.
Thomas E. Stanberry
Chairman & Chief Executive Officer, West Bank
Jack G. Wahlig
President, Integrus Financial, L.C.
Connie Wimer
Chairman,
Business Publications Corporation
Brad L. Winterbottom
President, West Bank
DIRECTORS EMERITUS
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Orville Crowley
President, Linden Lane Farms
Harlan Hockenberg
Attorney, Coppola, McConville, Coppola, Hockenberg & Scalise, P.C.
Paul Knapp
Vice President, Knapp Properties, Inc.
WB CAPITAL MANAGEMENT INC. BOARD OF DIRECTORS
Scott D. Eltjes
Chief Executive Officer
Douglas R. Gulling
Treasurer
Jeffrey D. Lorenzen
President & Chief Investment Officer
Thomas E. Stanberry
Chairman
Brad L. Winterbottom
AFFILIATE LOCATIONS
[WESTBANK LOGO]
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Des Moines Market
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Main Bank
1601 22nd Street o West Des Moines
Grand
125 Grand Avenue o West Des Moines
Urbandale
3255 99th Street o Urbandale
North
3839 Merle Hay Road o Des Moines
City Center
809 6th Avenue o Des Moines
East
2440 East Euclid o Des Moines
South
SW 9th & Watrous o Des Moines
Eastern Iowa Market
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Downtown
229 S. Dubuque Street o Iowa City
East
1910 Lower Muscatine Road o Iowa City
Coralville
1150 5th Street o Coralville
[WB CAPITAL LOGO]
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1415 28th Street
Suite 200
West Des Moines, IA 50266
1150 5th Street
Coralville, IA 52241
Phone: 800.343.7084
[WEST BANCORPORATION LOGO]
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1601 22nd Street
West Des Moines, IA 50266
Phone: 515.222.2300
[GRAPHIC]
Member FDIC EQUAL HOUSING
LENDER
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