Unassociated Document
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
Date
of Report (Date of Earliest Event Reported):
|
August
15, 2008
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West
Bancorporation, Inc.
__________________________________________
(Exact
name of registrant as specified in its charter)
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Iowa
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0-49677
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42-1230603
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|
______________________________
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______________________________
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______________________________
|
|
(State
or other jurisdiction
of
incorporation)
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(Commission
File
Number)
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(I.R.S.
Employer
Identification
No.)
|
|
1601
22nd Street, West Des Moines, Iowa
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50266
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|
______________________________
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______________________________
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(Address
of principal executive offices)
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(Zip
Code)
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Registrant’s
telephone number, including area code:
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515-222-2300
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Not
Applicable
______________________________________________
Former
name or former address, if changed since last report
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
[
]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[
]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[
]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act
(17 CFR 240.14d-2(b))
[
]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act
(17 CFR 240.13e-4(c))
Item
2.06 Material Impairments.
West
Bank, a wholly-owned subsidiary of West Bancorporation, Inc., determined on
August 15, 2008, that a material charge for impairment was required for two
of
its loans. A customer informed West Bank that he discovered over the last ten
days that one of his companies has apparently been the victim of a substantial
fraud and conversion of all of its assets. The alleged fraud was committed
by a
broker who was hired by the Bank’s customer to buy and sell inventory and
collect accounts receivable. Most, if not all, of the company’s converted assets
were pledged to West Bank. That broker and his company filed bankruptcy late
last week, which stayed pending requests for
information.
West
Bank
has two loans to the company totaling approximately $12.8 million. The loans
are
not totally impaired. However, the loans were secured on the basis of reported
inventory and accounts receivable that are now believed to have no value. The
owner of the company has also personally guaranteed the loans. West Bank’s
guarantor has indicated his willingness to pledge additional personal assets
to
secure his guarantee. West Bank is working with its customer to determine the
liquidation value of the additional assets. The Bank’s customer has not made a
determination of the recovery, if any, from the broker. Both the company and
its
owner are cooperating with West Bank.
As
of
today, management does not have sufficient information to make a good faith
determination of the estimated amount of the impairment. An additional
disclosure will be made when sufficient information becomes available. The
loans
have been placed on non-accrual status.
The
information contained in this report may contain forward-looking statements
about the Company’s growth and acquisition strategies, new products and
services, and future financial performance, including earnings and dividends
per
share, return on average assets, return on average equity, efficiency ratio
and
capital ratio. Certain statements in this report constitute “forward-looking
statements” within the meaning of the Private Securities Litigation Reform Act
of 1995, including statements preceded by, followed by or that include the
words
“believes,” “expects,” “should” or “anticipates,” or references to estimates or
similar expressions. Such forward-looking statements are based upon certain
underlying assumptions, risks and uncertainties. Because of the possibility
of
change in the underlying assumptions, actual results could differ materially
from these forward-looking statements. Risks and uncertainties that may affect
future results include: interest rate risk; competitive pressures; pricing
pressures on loans and deposits; changes in credit and other risks posed by
the
Company’s loan and investment portfolios, including declines in commercial or
residential real estate values or changes in the allowance for loan losses
dictated by new market conditions or regulatory requirements; actions of bank
and non-bank competitors; changes in local and national economic conditions;
changes in regulatory requirements, including actions of the Securities and
Exchange Commission and/or the Federal Reserve Board; and customers’ acceptance
of the Company’s products and services. The Company undertakes no obligation to
revise or update such forward-looking statements to reflect current events
or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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West
Bancorporation, Inc.
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August
19, 2008
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By:
Douglas R. Gulling
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_______________________________________________
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Name:
Douglas R. Gulling
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Title:
Executive Vice President and Chief Financial
Officer
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