Excellent
CUSTOMER SERVICE
is alive and well
[PHOTOS]
[WEST BANCORPORATION LOGO]
West Bancorporation, Inc. | 2004 Annual Report
WEST BANCORPORATION, INC. & SUBSIDIARIES
FINANCIAL HIGHLIGHTS (dollars in thousands, except per share)
2004 2003 2002 2001 2000
---- ---- ---- ---- ----
YEAR-END BALANCES
Assets $1,148,435 $1,000,612 $ 886,116 $ 815,970 $ 827,876
Investment securities 347,052 274,913 212,292 189,473 292,371
Loans 725,845 599,355 488,453 493,399 500,079
Non-performing loans 860 1,793 1,899 1,274 1,171
Deposits 865,932 705,074 613,099 571,730 547,283
Stockholders' equity 97,620 92,896 85,824 79,012 70,845
AVERAGE BALANCES
Assets 1,066,511 932,907 837,938 837,798 812,411
Investment securities 301,718 246,823 213,361 203,137 282,946
Loans 645,875 531,033 482,013 495,825 489,598
Deposits 764,741 608,544 568,625 547,247 513,296
Stockholders' equity 94,209 88,742 81,904 74,977 63,872
RESULTS OF OPERATIONS
Net interest income 35,647 32,322 30,990 29,662 27,560
Provision for loan losses 1,200 850 910 1,063 1,190
Noninterest income 10,706 9,305 6,614 6,314 5,678
Noninterest expense 16,968 14,694 11,220 10,480 9,596
Income before taxes 28,185 26,083 25,474 24,433 22,452
Net income 18,614 17,283 16,376 15,736 14,416
PER COMMON SHARE (1)
Net income 1.11 1.02 0.97 0.93 0.85
Dividend 0.625 0.610 0.590 0.571 0.552
Book value 5.84 5.51 5.09 4.69 4.20
Closing price 17.61 16.46 14.46 11.24 10.60
RATIOS
Return on average equity 19.76% 19.48% 19.99% 20.99% 22.57%
Return on average assets 1.75% 1.85% 1.95% 1.88% 1.77%
Efficiency ratio 35.78% 34.78% 29.19% 28.23% 27.98%
Net interest margin 3.71% 3.77% 3.97% 3.81% 3.62%
Average equity as %
of average assets 8.83% 9.51% 9.77% 8.95% 7.86%
Allowance for loan losses
as % of average loans 1.01% 1.13% 0.93% 0.86% 0.86%
Net charge-offs as %
of average loans 0.10% 0.05% 0.14% 0.21% 0.21%
Nonperforming loans
as % of loans 0.12% 0.30% 0.39% 0.26% 0.23%
2
Shareholders'
LETTER
DEAR SHAREHOLDERS:
I am pleased to report that 2004 was an exceptional year. Net income for the
Company was $18,614,000, or $1.11 per share, up from $17,283,000 or $1.02(1) per
share in 2003. Return on average equity was 19.76% and return on average assets
was 1.75%. The efficiency ratio was 35.78%. The efficiency ratio for our
subsidiary West Bank was 30.70%.
Our 2003 acquisitions of Hawkeye State Bank in Iowa City and VMF Capital
produced results in 2004 that exceeded our expectations. In the Iowa City market
we recruited additional business development and customer service personnel,
reviewed and improved the quality of the existing loan portfolio, developed
significant new business relationships and increased our community involvement.
At VMF Capital we increased assets under management through new business
development, had strong performance in all investment styles and increased our
profitability. The VMF Capital small cap equity investment style ranked among
the top investment returns in the nation for 2004 according to the November 15,
2004 issue of Pensions & Investments.
Our 2004 results came from working in partnership with each of our four
stakeholders. Highlights of our efforts to add value for these stakeholders
follow.
OUR SHAREHOLDERS. In 2004 we paid a 5% stock dividend plus a cash dividend of
$.625 per share for an average dividend yield of 3.55% based on the year end
closing stock price of $17.61. This compares to our peers' average dividend
yield of approximately 1.80%.(2) The total return on an investment in our stock
from January 1, 2004 through December 31, 2004 was 11.2% compared to the total
return of the SNL Midwest Bank Index of 12.8%.
OUR EMPLOYEES. Our employees are our most important asset. Our mission is to
provide a quality work environment in which our employees can serve our clients.
In 2004 we made investments in technology at all locations and in the physical
facilities at many of our locations. We completed the office design we will use
for new offices. In order to promote employee ownership of the Company we
amended our 401(k) plan to become the Employee Savings and Stock Ownership Plan
which will allow our employees to voluntarily direct funds to be invested in
Company stock on a tax deferred basis. These improvements will continue in 2005
as we enhance the quality of the work environment for our employees so that it
becomes even more fun, competitive and efficient.
OUR CLIENTS. As profiled in our annual report, Leachman Lumber, Des Moines
Service Corporation and Iowa Cancer Treatment Center are typical of the close
relationships we have with our many clients. The bank's 2004 client survey told
us our clients expect convenient, excellent service and effective products that
are competitively priced. In 2004 we enhanced the quality and frequency of the
training our business development and customer service employees received to
increase their expertise and their awareness of our customers needs. In December
we opened a new office in Coralville to better serve the Coralville and North
Liberty areas of our eastern Iowa market. We continuously strive to meet our
mission of providing exceptional service as we solve our clients' financial
needs.
OUR COMMUNITY. Contributing to the communities where we work is the soul of our
company. In 2004 we continued our focus on buying local, funding charitable
contributions and community service. Our commitment to buying local, whenever
possible, helps create strong local economies where our businesses thrive and
our citizens are employed. Through The West Bancorporation Foundation and West
Bank we approved 29 charitable grants totaling $168,000. Several community
projects were accomplished as our employees contributed approximately 7,500
hours to community service.
David R. Milligan retired as Chairman and Chief Executive Officer of West Bank
on December 31, 2004 and will retire from the Company's board of directors at
the annual meeting on April 12, 2005. Dave Milligan joined West Bank in 1980.
During his tenure at the bank he was a trust officer, commercial loan officer,
general counsel, Chairman and Chief Executive Officer. He has agreed to remain
with us in a part time capacity working on special projects.
Our 2004 accomplishments continue to rank us among the top community banks in
the nation. We believe we can improve. Our 2005 focus will remain on building
long-term customer relationships and providing financial solutions. Our goal is
to have steady growth in all asset classes and business lines without resorting
to lower credit quality or excessive pricing. We plan to expand our statewide
market share at West Bank and VMF Capital while also expanding the depth of the
relationships with our existing clients.
We are prepared for 2005 to be a challenging year. Economic indications are that
the national and State of Iowa economies will continue to grow at a slow pace
through the end of 2005 with low to moderate inflation. We expect a steady
increase in short term interest rates to keep inflation in check and bring rates
back in line with the historical averages for a growing economy. At the same
time we anticipate an overall flattening of the yield curve throughout the year
as intermediate and long-term interest rates remain near their current levels.
The ongoing uncertainty that remains out of our control is the high level of
terrorist driven turmoil throughout the world.
All of us at West Bank and VMF Capital look forward to delivering exceptional
service and financial solutions to our clients, and providing the financial
results you, our shareholders, expect.
Very truly yours,
/s/ Thomas E. Stanberry
Thomas E. Stanberry
Chairman, President and Chief Executive Officer
(1) In July 2004, the Company's Board of Directors authorized a 5% common
stock dividend. Per share numbers in this report have been adjusted for
that stock dividend.
(2) According to data obtained from Howe Barnes Investments, Inc.
3
Excellent customer service is
ALIVE AND WELL
Time and time again, excellent, one-on-one, personalized service is what our
customers mention when asked why they remain so loyal to West Bank. Service is
the business we're in and we will never forget it. West Bank's many long-term
relationships are the result of our purposeful focus on "ethically, aggressively
and professionally serving the existing and future needs of our clients." Our
mission statement specifically defines our first priority as being "the
recognized leader for providing financial solutions and community service in our
markets." If excellent customer service were not alive and well at West Bank, we
wouldn't have the long track record of successfully following through on those
promises. The stories on the following pages bear witness to the effect of
relentlessly placing our customers and their needs ahead of everything else.
There are hundreds more stories just like them. Listen as our clients and
community service partners reveal a recurring theme of unparalleled individual
attention and customer service.
[PHOTO]
Charlie Grask (center), president of Des Moines Service Corporation, says West
Bank gives him the support he needs to run his business efficiently.
Pictured with him are West Bank assistant trust officer, Jami Turner (right),
and Brad Winterbottom (left), West Bank president.
"THERE WILL ALWAYS BE INTELLIGENT, PROFESSIONAL DIALOGUE"
When Charlie Grask was ready to make a change in his banking relationship, he
called West Bank president Brad Winterbottom for advice. They met and twelve
hours later had worked out a deal that resulted in Charlie moving his business
accounts to West Bank. Charlie is the president of Des Moines Service
Corporation, which owns the local National Car Rental and Alamo Rent-A-Car
franchises. "The arrangement we worked out," said Charlie, "gives me the
flexibility I need to run my business." Charlie's father, Phil Grask, started
the business with the National Car Rental franchise in 1968. Charlie went to
work for the company when he was 16 years old as a car prep person. Throughout
his college years, he worked the counter renting cars. Following college,
Charlie rose through the management structure and when his father retired six
years ago, he became president. The company added the Alamo Rent-A-Car franchise
two years ago. They currently operate two locations in Des Moines, one at the
Des Moines International Airport and the other on the west side at 100th and
Hickman Road. In addition to maintaining business checking and loan accounts at
West Bank, Charlie says he uses VMF Capital to manage his company's 401(k) and
profit sharing plans, and West Bank's trust department acts as trustee. "So far,
West Bank has performed well on every service related issue we've had. I would
recommend West Bank to other businesses because they really want to work with
you," he said. "I feel there's a real line of communication with the people at
West Bank. They know what we do and how we like to do it. Issues can come up at
any time, but I feel with West Bank, there will always be intelligent,
professional dialogue."
4
"NOTHING TAKES THE PLACE OF PERSONALIZED SERVICE"
John Leachman, Sr., chairman and CEO of Des Moines-based Leachman Lumber
Company, places a lot of importance on personal relationships. As head of an
83-year-old family business that supplies lumber and building products primarily
to home builders and contractors, John says nothing takes the place of
personalized service. He's been banking with West Bank for more than 37 years
because of "the personal attention I get from them. They're absolutely the best
at that!" John's father and grandfather started Leachman Lumber in 1921. John
grew up in the lumber business and joined the company in 1957. With an inventory
that sometimes swells to more than $1.8 million, Leachman Lumber relies heavily
on West Bank as their financial partner. "We recently wanted to buy some of the
properties around us so we can expand," said John. "West Bank not only helped us
with financing, but was very encouraging of our expansion." John often
recommends West Bank to other businesses. "I tell them West Bank will take a
personal interest in their business and help it grow," he said. Even though
Leachman Lumber's president and COO, Jim Kahler, is not a Leachman family
member, the company remains a Leachman family enterprise. John's nephew, Mark,
Jr., is the purchasing agent; John's son, John, Jr. (Jack), is involved with
sales; and John's daughter, Jennifer, a CPA, is the company's chief financial
officer. Perhaps the most famous Leachman family member is Hollywood actress
Cloris Leachman, John's cousin. Her father, Berkley Leachman, worked in the
family business until his death. "Cloris was in Des Moines just a while back,"
said John. "She came out to the lumberyard and visited, gave hugs, and made
everybody feel special. She's a wonderful woman." Another personal relationship
John prizes!
[PHOTO]
John Leachman, Sr. (right), chairman and CEO of Leachman Lumber Company, pauses
to pose with West Bank senior vice president, Roger Reed. (left)
[PHOTO]
Doctors Hamed (left) and Ferial Tewfik (middle) pose with West Bank Iowa City
market president, Lynn Rowat, outside their treatment center in Iowa City.
"A VERY CONSTRUCTIVE, VERY PROFESSIONAL RELATIONSHIP"
Doctors Hamed and Ferial Tewfik have dedicated their lives to treating
patients with cancer. The husband and wife physician team, originally from
Alexandria, Egypt, started their medical training in their native country, where
they became interested in a new technology called "Cobalt Radiation Therapy."
This interest resulted in an opportunity to travel overseas and they eventually
finished their medical training at the University of New York at Buffalo. "Fate"
is what Hamed says brought them to Iowa. They had a cousin living in Iowa City
and after a 1971 visit, they moved to Iowa City to practice medicine. Their
specialty is radiation oncology and in 1985 they opened the Iowa City Cancer
Treatment Center, specializing in cancer radiation treatment. The Tewfiks work
with a staff of eight, including a radiation physicist. They have a banking
relationship with West Bank in Iowa City, primarily, Hamed says, because "it's a
community-based bank interested in the local people doing business in the
community." He likes the "personal, one-on-one working relationship" he has with
West Bank, particularly with West Bank Iowa City market president, Lynn Rowat,
and West Bank second vice president, Maggie Kiewiet. "They're very knowledgeable
and they really understand our needs," Hamed said. The Tewfiks like the service
they receive from West Bank so much they not only have their business accounts
with us, but also their personal accounts. They even have a daughter living in
Virginia who has an account at West Bank. "So far our relationship with West
Bank has been very constructive, very professional," he concludes. "They take
care of our business with a minimum of hassle, a minimum of work. No problems.
No snags. And all it takes is a telephone call to get things done."
5
A good corporate
NEIGHBOR & FRIEND
FOUNDATION LAUNCHED
Always known for its generous giving to various charitable civic, and cultural
activities and causes in the communities we serve, West Bancorporation
established a charitable foundation to consider and award donations.
The West Bancorporation Foundation, Inc. was founded as a permanently funded
vehicle for providing assistance to various community needs. "It's our way of
formally setting aside money for the purpose of giving back to the community,"
explained Joyce Chapman, West Bank executive vice president, who serves as
executive director of the Foundation. "We have always given to deserving causes
and are known for our giving. But the foundation now provides a formal structure
through which we can set aside funds for accomplishing our charitable
activities."
Requests for donations from the foundation should be made to Joyce Chapman at
West Bank. "All requests will be reviewed on a regular basis by the foundation's
board of directors," she explained. "We will look at the nature of the effort
and whether or not it fits the stated purposes of the foundation."
"We're excited about establishing the foundation," she stated. "It allows us
to permanently set aside funds that will enable us to continue our support of
viable efforts that benefit the communities and their citizens."
BUY FRESH, BUY LOCAL
West Bank has become a sponsor of "Buy Fresh, Buy Local", a partnership with
Practical Farmers of Iowa and the Drake University Agricultural Law Center. The
"Buy Fresh, Buy Local" program encourages consumers to buy and enjoy fresh foods
from local producers. It also educates consumers about the economic, social and
product benefits of buying fresh, local foods. Buying locally supports local
farms and businesses in the central Iowa area and contributes to the overall
economic well-being of the state. The program through its website,
(www.practicalfarmers.org) links consumers and producers alike to a directory of
area farmers market locations and dates, as well as restaurants, grocery stores
and other businesses featuring fresh, locally grown food.
TOOLS FOR SCHOOLS
[GRAPHIC]
The first annual West Bank "Tools For Schools" supply drive was held at ten
West Bank locations in Des Moines and Iowa City in September. Designed to
benefit middle and grade schools in Des Moines, West Des Moines, Urbandale and
Iowa City school districts, more than $14,000 in cash and school supplies was
collected to help replenish basic school supplies used in these districts during
the school year.
"Tools For Schools" was established by West Bancorporation Inc., in
response to this year's state and federal educational funding cuts. The effort
was coordinated through school district representatives, who helped establish
needs and facilitated the distribution of supplies to the schools. The "Tools
For Schools" effort marks the first time four different area school districts
have teamed up for such a campaign.
[PHOTO]
West Bancorporation chairman, president and CEO, Tom Stanberry, and West Bank
executive vice president, Joyce Chapman, are joined by area school children to
help celebrate the success of the first annual West Bank "Tools For Schools"
supply drive campaign. The West Bancorporation Foundation kicked off the
campaign with a $5,000 cash donation.
6
DIRECTORS & EXECUTIVE OFFICERS
WEST BANCORPORATION BOARD OF
DIRECTORS
FRANK W. BERLIN 1 [PHOTO]
President, Frank W. Berlin & Associates
ORVILLE E. CROWLEY 2
President, Linden Lane Farms
DAVID R. MILLIGAN 3
Executive Vice President
JACK G. WAHLIG 4
President, Integrus Financial, L.C.
CONNIE WIMER 5
Publisher, Business Publications
ROBERT G. PULVER 6
President & CEO, All State Industries, Inc.
THOMAS E. STANBERRY 7
Chairman, President, & CEO
STEVEN G. CHAPMAN 8
President & CEO, ITAGroup, Inc
MICHAEL A. COPPOLA 9
President, Coppola Enterprises, Inc.
West Bancorporation directors gathered for this photo in the new board room,
currently under construction.
WEST BANK EXECUTIVE OFFICERS
THOMAS E. STANBERRY 1 [PHOTO]
Vice Chairman
DAVID R. MILLIGAN 2
Chairman & Chief Executive Officer
BRAD L. WINTERBOTTOM 3
President
JOYCE A. CHAPMAN 4
Executive Vice President
SHAREN K. SURBER 5
Executive Vice President
DOUGLAS R. GULLING 6
Chief Financial Officer
WEST BANCORPORATION, INC. & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS December 31, 2004 & 2003
ASSETS 2004 2003
------ ---- ----
Cash and due from banks $ 18,686,360 $ 27,786,795
Federal funds sold and other short-term investments 11,193,099 54,287,004
CASH AND CASH EQUIVALENTS 29,879,459 82,073,799
Securities available for sale 281,110,020 178,308,941
Securities held to maturity 59,419,549 91,406,205
Federal Home Loan Bank stock, at cost 6,522,800 5,197,600
Loans 725,845,003 599,355,407
Allowance for loan losses (6,526,824) (5,975,587)
LOANS, NET 719,318,179 593,379,820
Premises and equipment, net 4,309,597 3,683,020
Accrued interest receivable 6,505,047 5,878,880
Goodwill and other intangible assets 16,561,810 16,900,487
Bank-owned life insurance 21,256,138 20,386,714
Other assets 3,551,911 3,396,145
$ 1,148,434,510 $ 1,000,611,611
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
LIABILITIES
-----------
Deposits:
Noninterest bearing demand $ 186,710,245 $ 172,070,832
Savings and interest bearing demand 422,560,048 403,060,980
Time, in excess of $100,000 193,716,248 63,463,030
Other time 62,945,833 66,479,171
TOTAL DEPOSITS 865,932,374 705,074,013
Federal funds purchased and securities sold
under agreements to repurchase 74,543,033 85,442,675
Other short-term borrowings 4,668,451 9,141,973
Long-term borrowings 101,892,773 106,024,315
Accrued expenses and other liabilities 3,777,903 2,032,291
TOTAL LIABILITIES 1,050,814,534 907,715,267
STOCKHOLDERS' EQUITY
--------------------
Common stock, no par value; authorized
50,000,000 shares; 16,701,843 & 16,863,285 shares issued
and outstanding at December 31, 2004 and 2003, respectively 3,000,000 3,000,000
Additional paid-in capital 32,000,000 32,000,000
Retained earnings 62,565,046 56,796,771
Accumulated other comprehensive income 54,930 1,099,573
TOTAL STOCKHOLDERS' EQUITY 97,619,976 92,896,344
$ 1,148,434,510 $ 1,000,611,611
8
WEST BANCORPORATION, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (1)(2)
Years Ended December 31, 2004, 2003 & 2002
INTEREST INCOME: 2004 2003 2002
---- ---- ----
Loans $37,168,986 $32,633,401 $33,035,194
Securities:
U.S. Treasury, government agencies and corporations 6,408,522 4,727,838 6,764,475
States and political subdivisions 2,399,378 1,725,250 1,625,568
Other 2,673,791 3,111,436 1,404,173
Federal funds sold and other short-term investments 947,993 1,263,190 1,810,348
TOTAL INTEREST INCOME 49,598,670 43,461,115 44,639,758
INTEREST EXPENSE:
Demand and savings deposits 3,681,439 3,084,033 3,755,205
Time deposits 3,759,910 2,665,970 5,084,437
Federal funds purchased and securities
sold under agreements to repurchase 857,050 1,503,051 1,929,097
Other short-term borrowings 444,120 8,564 29,622
Long-term borrowings 5,209,148 3,877,773 2,851,210
TOTAL INTEREST EXPENSE 13,951,667 11,139,391 13,649,571
NET INTEREST INCOME 35,647,003 32,321,724 30,990,187
PROVISION FOR LOAN LOSSES 1,200,000 850,000 910,000
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 34,447,003 31,471,724 30,080,187
NONINTEREST INCOME:
Service charges on deposit accounts 4,968,077 4,984,373 4,705,261
Trust services 631,500 507,000 569,634
Investment advisory fees 2,682,690 503,899 --
Increase in cash value of bank-owned life insurance 869,423 666,785 --
Proceeds from bank-owned life insurance -- 821,254 --
Net realized gains from securities available for sale 198,877 299,562 115,939
Other income 1,355,342 1,522,348 1,223,368
TOTAL NONINTEREST INCOME 10,705,909 9,305,221 6,614,202
NONINTEREST EXPENSES:
Salaries and employee benefits 9,680,139 7,700,608 6,408,438
Occupancy 2,056,755 1,582,660 1,310,971
Data processing 1,360,724 1,130,131 1,006,272
Charitable contributions 147,584 1,483,516 106,552
Other expenses 3,722,923 2,797,331 2,388,294
TOTAL NONINTEREST EXPENSE 16,968,125 14,694,246 11,220,527
INCOME BEFORE INCOME TAXES 28,184,787 26,082,699 25,473,862
INCOME TAXES 9,570,310 8,800,071 9,098,059
NET INCOME $18,614,477 $17,282,628 $16,375,803
EARNINGS PER SHARE:
Basic $ 1.11 $ 1.02 $ 0.97
9
WEST BANCORPORATION, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (1)
Years Ended December 31, 2004, 2003 & 2002
COMMON STOCK 2004 2003 2002
---- ---- ----
Beginning of year balance $ 3,000,000 $ 3,000,000 $ 3,000,000
End of year balance 3,000,000 3,000,000 3,000,000
ADDITIONAL PAID-IN CAPITAL
Beginning of year balance 32,000,000 32,000,000 32,000,000
End of year balance 32,000,000 32,000,000 32,000,000
RETAINED EARNINGS
Beginning of year balance 56,796,771 49,792,716 43,374,281
Net income 18,614,477 17,282,628 16,375,803
Dividends on common stock; per share
amounts 2004 $0.625, 2003 $0.610, 2002 $0.590 (10,483,877) (10,278,573) (9,957,368)
Purchase of fractional shares resulting
from stock dividend (2,090) -- --
Shares reacquired under the common
stock repurchase plan (2,360,235) -- --
End of year balance 62,565,046 56,796,771 49,792,716
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Beginning of year balance 1,099,573 1,031,446 637,980
Unrealized gains (losses) on securities, net of tax (1,044,643) 68,127 393,466
End of year balance 54,930 1,099,573 1,031,446
TOTAL STOCKHOLDERS' EQUITY $ 97,619,976 $ 92,896,344 $ 85,824,162
CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME Years Ended December 31, 2004, 2003 & 2002
2004 2003 2002
---- ---- ----
NET INCOME $ 18,614,477 $ 17,282,628 $ 16,375,803
OTHER COMPREHENSIVE INCOME (LOSS),
Unrealized gains (losses) on securities, net of tax (1,044,643) 68,127 393,466
COMPREHENSIVE INCOME $ 17,569,834 $ 17,350,755 $ 16,769,269
FORM 10-K
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 website 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.
10
WEST BANCORPORATION, INC. & SUBSIDIARIES
STOCK INFORMATION
West Bancorporation, Inc. common stock is traded on the Nasdaq National Market
and quotations are furnished by the Nasdaq System. There were 332 common
stockholders of record on December 31, 2004, and an estimated 850 additional
beneficial holders whose stock was held in street name by brokerage houses.
MARKET AND DIVIDEND INFORMATION (1)(3)
2004 HIGH LOW DIVIDENDS
1st quarter $17.14 $15.40 $0.152
2nd quarter 17.14 13.93 0.152
3rd quarter 17.54 14.76 0.160
4th quarter 18.15 16.21 0.160
2003
1st quarter $16.70 $13.67 $0.152
2nd quarter 18.68 15.02 0.152
3rd quarter 17.92 15.77 0.152
4th quarter 17.66 16.24 0.152
(1) In July 2004, the Company's Board of Directors authorized a 5% common
stock dividend. Per share numbers in this report have been adjusted for
that stock dividend.
(2) Minor reclassifications were made to certain 2003 and 2002 categories
to conform to the 2004 presentation.
(3) 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 AND 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, Iowa 50309 Des Moines, Iowa 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, 2004, and 2003,
and the related consolidated statements of income, stockholders' equity,
comprehensive income and cash flows (not presented herein) for each of the three
years in the period ended December 31, 2004 and in our report dated March 3,
2005, 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.
/s/ McGladrey & Pullen, LLP
Des Moines, Iowa
March 3, 2005
11
WEST BANCORPORATION, INC. AND SUBSIDIARIES' BOARDS OF DIRECTORS
JON K. AUGUSTINE (3) DAVID R. MILLIGAN (1,2,3)
Managing Director, WB Capital Management Inc. Chairman & CEO, West Bank
Executive Vice President, West Bancorporation, Inc.
FRANK W. BERLIN (1,2,6,7)
President, Frank W. Berlin & Associates GEORGE D. MILLIGAN (2)
President, The Graham Group, Inc.
THOMAS A. CARLSTROM (2)
Neurosurgeon THOMAS E. MYERS (3)
Executive Vice President & Managing Director,
JOYCE A. CHAPMAN (2,3) WB Capital Management Inc.
Executive Vice President, West Bank
Vice President, West Bancorporation, Inc. ROBERT G. PULVER (1,2,6,7)
President & CEO, All State Industries, Inc.
STEVEN G. CHAPMAN (1,2,7) KEVIN J. SMITH (3)
President & CEO, ITAGroup, Inc. Senior Vice President, West Bank
CHRISTOPHER C. COOK (3) THOMAS E. STANBERRY (1,2,3)
Managing Director, WB Capital Management Inc. Chairman, President, & CEO, West Bancorporation, Inc.
Vice Chairman, West Bank
MICHAEL A. COPPOLA (1,2,5) Chairman, WB Capital Management Inc.
President, Coppola Enterprises, Inc.
JACK G. WAHLIG (1,2,5)
ORVILLE E. CROWLEY (1,4,6) President, Integrus Financial, L.C.
President, Linden Lane Farms
CONNIE WIMER (1,2,5,6)
SCOTT D. ELTJES (3) Publisher, Business Publications
Managing Director, WB Capital Management Inc.
BRAD L. WINTERBOTTOM (2,3)
KAREN J. GREEN (3) President, West Bank
Managing Director, WB Capital Management Inc.
DOUGLAS R. GULLING (3)
Executive Vice President & Chief Financial Officer,
West Bancorporation, Inc.
Chief Financial Officer, West Bank
Treasurer, WB Capital Management Inc.
HARLAN D. HOCKENBERG (4)
Attorney, Sullivan & Ward, P.C.
PAUL R. KNAPP (4)
Vice President, Knapp Properties, Inc.
(1) Director of West Bancorporation, Inc.
(2) Director of West Bank
(3) Director of WB Capital Management Inc.
(4) Director Emeritus of West Bank
(5) Audit Committee
(6) Compensation Committee
(7) Nominating & Corporate Governance Committee
WEST BANK OFFICERS
SHAREN K. SURBER RODNEY S. WEIKERT PAM K. KELLER GEORGANN R. MEFFERD
Executive Vice President Senior Vice President - Real Estate Vice President Vice President & Compliance Officer
LYNN E. ROWAT LOUIS H. ANDERSON J. CRAIG KROUCH ALLEN R. PETERSEN
Market President - Iowa City Vice President Vice President Vice President
TOM CILEK MICHELE A. BELDEN KEITH A. KURTH MARIE I. ROBERTS
Senior Vice President Vice President Vice President Vice President & Controller
RONALD H. DEGEN RUSSELL W. BREAZEALE CATHERINE L. MACKAY JOHN J. STONE
Senior Vice President Vice President Vice President - Marketing Vice President
MARC J. MEYER JOHN HUMESTON JOHN F. MCKINNEY III KAY A. TRAGER
Senior Vice President Vice President Vice President & Assistant Vice President
Counsel
ROGER L. REED ALICE A. JENSEN DANIEL L. MCNACE
Senior Vice President Vice President & Secretary, West Bank Vice President
Secretary, West Bancorporation
& WB Capital Management Inc.
WEST BANK LOCATIONS
DES MOINES MARKET
Main Bank
1601 22nd o West Des Moines
Grand
125 Grand Ave o West Des Moines
Urbandale
3255 99th St o Urbandale
North
3839 Merle Hay Rd o Des Moines
City Center
809 6th Ave o Des Moines
Skywalk
501 Locust #214 o Des Moines
East
2742 Hubbell o Des Moines
South
SW 9th & Watrous o Des Moines
EASTERN IOWA MARKET
Downtown
229 S. Dubuque Street o Iowa City
East
1910 Lower Muscatine Road o Iowa City
Coralville
1150 5th Street o Coralville
CUSTOMER SERVICE
Des Moines: 515.222.2360
Iowa City/Coralville: 319.351.4121
24 Hour Telephone Banking:
515.222.0314 / toll free 1.866.815.7858
VMF CAPITAL
1370 NW 114th St | 118 Third Ave SE
Suite 202 | Suite 700
Clive, IA 50325 | Cedar Rapids, IA 52401
Phone: 1.800.343.7084
WEST BANCORPORATION
1601 22nd Street
Suite 209
West Des Moines, IA 50266
Phone: 515.222.2300
WWW.WESTBANKIOWA.COM
Member FDIC [FEDERAL HOUSING LENDER LOGO]
We want you to know: Investment products provided by VMF Capital
ARE NOT | MAY LOSE | ARE NOT BANK
FDIC INSURED | VALUE | GUARANTEED
Accounts offered through VMF Capital, a non-bank affiliate of West
Bancorporation.