(GRAPHIC OF CRAYONS)
DECIDEDLY DIFFERENT.
(WEST BANCORPORATION LOGO)
2006 ANNUAL REPORT
(GRAPHIC OF BANANAS AND APPLE)
A DECIDEDLY DIFFERENT YEAR.
SHAREHOLDERS' LETTER
Dear Shareholder:
2006 was not a good year for your Company. A combination of factors produced a
drop in net income, from 2005 to 2006, for only the second time in the last 22
years. While we are not pleased with these results, we have taken steps to
minimize the impact of the factors we cannot control and to control those we
can.
Net income for the Company was $19,407,000 or $1.11* per share, down 3.33% from
$20,075,000 or $1.14* per share in 2005. Return on average equity was 18.08% and
return on average assets was 1.49%. The overall efficiency ratio was 43.42%,
while the efficiency ratio for our West Bank subsidiary was 33.15%.
The biggest driver of the Company's net income is the net interest income
produced by West Bank. Net interest income is the difference between the income
West Bank earns from loans and investments and the expense it pays on deposits
and borrowings. Net interest income was $39,067,000 in 2006 versus $38,373,000
in 2005. The low rate of growth in West Bank's net interest income was primarily
the result of the inverted yield curve and the increase in competition in the
Bank's core markets.
The inverted yield curve began to appear following the start of the Federal
Reserve's most recent quest to control inflation with an increase in the
targeted federal funds rate of .25% on June 30, 2004. Since then, the federal
funds rate has been increased 16 times, raising the rate from 1.25% to the
current rate of 5.25%. This rate is the benchmark for banks' prime rate, and
other lending and saving rates. At the same time short term rates were
increasing, the decline in the value of the dollar and a surplus of cash in
several developing countries combined to create an unprecedented amount of
foreign investment in U.S. Treasury securities, causing intermediate rates to
remain near all time low levels. We see no signs the Federal Reserve will
significantly reduce the federal funds rate in the near future nor do we see
any indication that the current level of foreign investment in the U.S. will
abate. To offset as much of the impact from the inverted yield curve as
possible, we will continue to grow the Bank's loan portfolio and reduce its
investment portfolio which will produce higher interest income. We will also
reduce the leverage in the Bank's balance sheet and pursue the lowest cost
funding from sources that are consistent with our core business practices.
Competition from banks increased in both the metropolitan Des Moines and Iowa
City-Coralville markets. New banks and branches of existing banks moved into
these two areas at a faster pace than in any other market in Iowa. Increased
competition in banking brings with it pressure on loan and deposit pricing, and
pressure to lower credit quality. The former is good for the consumer unless it
becomes excessive. The latter is never good.
* Adjusted for the effect of the 5% stock dividend paid August 14th, 2006.
Our long-term success will not come from resorting to lower credit quality or
excessive pricing to meet the increased competitions, but from continuing to
address the needs of our clients with solutions for their banking needs, and
working in partnership with each of our four stakeholders.
OUR SHAREHOLDERS. We paid a cash dividend of $.625 per share plus a 5% stock
dividend for an annual dividend yield of 3.52% based on the year-end closing
stock price of $17.78. The total return on an investment in our stock from
January 1, 2006, through December 31, 2006, was 3.3%, compared to the total
return of the SNL Midwest Bank Index of 15.6%.
OUR EMPLOYEES. In 2006, we installed an online electronic teller system in each
of our branches. This system allows our tellers to serve our clients better with
fewer errors, and immediately posts a client's transaction to the account. We
relocated our East branch from Hubbell Avenue to East 25th and Euclid. The new
branch is in a more convenient location, has expanded drive-up facilities and
has an updated, more efficient interior. Our employees and clients have given
us great reviews on the change. Through our Employee Savings and Stock Ownership
Plan, approximately 35% of our employees are also shareholders in the Company.
Our employee-owners are some of the greatest advocates for the success of the
Company.
In 2006 we celebrated, with sadness, the retirement of two long-time West Bank
employees. Dave Milligan and Joyce Chapman both retired after stellar careers at
West Bank. Dave began working at West Bank in 1980 and worked as a trust
officer, commercial banker, CEO of the Bank and, most recently, Vice Chairman
and General Counsel. We will miss his business insight and counsel. Joyce
started at the Bank in 1971. During her career she worked as auditor, cashier,
Executive Vice President for administration and Executive Director of the West
Bancorporation Foundation. Joyce never missed an opportunity to promote West
Bank and gave generously of her time for the betterment of the community. We
will miss her banking savvy and the spirit she brings to everything she does.
OUR CLIENTS. We introduced new depository and treasury management products in
2006 to better manage the money of our clients. The relationships we have with
the clients profiled in this annual report, IMT Insurance Company,
LaMair-Mulock-Condon Insurance, the Coralville Marriott Hotel & Conference
Center, and the City of Coralville, Iowa, are typical of the close relationships
we have with our many clients. Each of these clients represents a business for
which we provide a variety of financial solutions, ranging from construction
financing to treasury management to asset management. These and the other
thousands of West Bank and WB Capital Management clients are the reasons we love
what we do.
OUR COMMUNITY. In 2006 the West Bancorporation Foundation funded 71 charitable
grants totaling $247,500. Several community projects were accomplished as our
employees contributed approximately 10,000 hours to community service in our
central and eastern Iowa markets.
We completed the merger of VMF Capital and Investors Management Group on October
1 into a single registered investment advisor named WB Capital Management Inc.
WB Capital has approximately $4.4 billion of assets under management. The merger
was a success due to a lot of hard work by many of our WB Capital employees. The
process took more people time than we estimated, which caused our business
development and client retention efforts to falter during the first three
quarters of the year. As a result, WB Capital under-performed financially
during 2006, which contributed to our overall drop in net income. With the
merger behind it, the WB Capital team increased new assets under management
during the fourth quarter and began working on new product offerings for 2007.
2006 was a challenging year for the company, and we believe 2007 will present
similar challenges. We will succeed by remaining true to our fundamental
business principles in banking and asset management. The credit quality of the
bank's loans remained good in 2006 as evidenced by our net charge-offs, past due
loans, and non-accrual loans compared to our peers. We intend to have the same
quality in the loans the bank makes in 2007. WB Capital has taken steps to
improve the performance of several of its investment styles and to introduce a
new product for investors in 2007. We remained expense-conscious in all business
lines in 2006, with an efficiency ratio which ranks us among the top 25 most
efficient bank holding companies in the country. Our 2007 success will be as a
low-cost provider of high-quality financial solutions to our bank and asset
management clients.
All of us at West Bank and WB 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
(PHOTO OF THOMAS E. STANBERRY)
(GRAPHIC OF BALLS)
Decidedly Different Partners.
CUSTOMER SUCCESS STORIES
(WBCAPITAL MANAGEMENT INC. LOGO)
IMT Insurance
WB Capital Rises to a Good Challenge
When IMT Insurance Company began working with WB Capital Management Inc. (then
known as Investors Management Group), the investment company knew little about
the insurance industry. "We might have been one of its first insurance company
customers. There's a big learning curve there because our business is different
than manufacturing or industrial firms," said Newell Hart, vice president,
secretary, and treasurer for IMT. "If there's a bad hail storm or tornado that
goes through the state on a Wednesday, by Monday we'd need quite a bit of cash."
Jeff Lorenzen, president and chief investment officer of WB Capital, has worked
with IMT since 1992. "IMT had the confidence to work with us as one of the
first insurance companies we served," Lorenzen says. Over the years, WB Capital
vastly increased its level of expertise in serving the insurance industry and
now, says Hart, the company is making recommendations to IMT. "We now have the
tools, expertise, and capacity to serve any size insurance company," says
Lorenzen.
Personalized service, locality, and team effort are qualities of WB Capital that
keep Richard Keith, president and CEO of IMT, a happy customer. "We like being
recognized as a good customer. And they listen well," Keith adds. Laurie Mardis,
fixed income portfolio manager for WB Capital, works with the company on a
day-to-day basis, and Keith says he appreciates her professionalism and
knowledge, but also her sense of humor. "They've always worked very well as a
team."
The companies have watched and helped each other grow, says Lorenzen. IMT was a
smaller insurance company when it began working with WB Capital, and WB Capital
had little insurance experience. But through the years, both companies have
expanded and learned a great deal from one another. "It's been a win-win
situation for both organizations," Lorenzen says.
(PHOTO)
From Back to Front: Richard Keith, CEO, IMT - Laurie Mardis, Senior Vice
President, WB Capital, Jeff Lorenzen, President & Chief Investment Officer, WB
Capital - Newell Hart, Vice President, IMT
(WEST BANK LOGO)
LMC Insurance
Shared Values, Adaptability Fosters
Strong Business Relationship
Greg LaMair says the success of LaMair-Mulock-Condon's (LMC's) business
relationship with West Bank has everything to do with adaptability. "As we've
grown, West Bank has grown, and has continued to adapt to our needs," says
LaMair, president of LMC. LaMair credits West Bank's local presence and
experienced, knowledgeable staff with keeping LMC a long-time, loyal customer.
LMC has provided property and casualty insurance, employee benefits and risk
management services to businesses and individuals since 1865. For more than 15
years, LMC has used a variety of West Bank services to help the business grow,
from acquisition financing and stockholder loans when the company had a
transition in ownership, to everyday banking services.
LMC is one of West Bank's largest depository customers and uses several cash
management services. Paige Sterling-Sitroneto, first vice president of treasury
management, says LMC uses eCorp for treasury information reporting, online
transfers, online stop payments, domestic and foreign wire transfers, and direct
deposit of payroll. They also utilize various short, and long-term investment
solutions, and are new users of eDeposit for electronic deposits.
"LMC is easy to work with because of the good people on its staff,"
Sterling-Sitroneto says. "Once you train them on a product, they just run with
it."
Kevin Smith, senior vice president for West Bank, has worked with LMC for the
last six years making certain the company's needs are met. "He makes us feel
like he's always looking out for us and ensuring that we're taking advantage of
all the products they have available," says Mark Lyons, vice president of LMC.
But he says there are many other West Bank employees who support LMC. "Over the
years we have developed relationships with a number of West Bank employees. The
trait they share is a commitment to customer service. It's nice to know we are
always able to reach someone who can respond promptly to any immediate needs
that may arise."
A shared business philosophy has also helped LMC and West Bank build a mutual
respect over the years, says Lyons. "I believe people like to do business with
people like themselves," he says. "We focus on client service, integrity, team
environment, and providing top quality services. West Bank appears to have those
same goals." Kevin Smith says it's because of these common values that the
companies have referred business to one another. "We conduct
business-to-business meetings with them, connecting individuals here with
individuals there in the spirit of sharing business concepts. We help each other
in that respect," Smith says.
(PHOTO)
From Back to Front: Greg LaMair - President, LMC - Roger Hoyt - CEO, LMC
Mark Lyons - Vice President, LMC - Kevin Smith - Senior Vice President,
West Bank
Paige Sterling-Sitroneto - First Vice President of Treasury Management,
West Bank
(WEST BANK LOGO)
Coralville Marriott
HOTEL & CONFERENCE CENTER
Building Lasting Relationships
Coralville Mayor Jim Fausett says his association with Lynn Rowat, West Bank
Eastern Iowa market president, started long before the bank opened its
Coralville branch. "I've lived in Coralville a long time. I had previously known
Lynn and his family and had occasionally worked with him on other city events,"
Fausett says. But it was after West Bank opened branches in the Iowa
City/Coralville area that Fausett and Rowat established a significant business
partnership.
In August of 2006, the City of Coralville opened the new Coralville Marriott
Hotel and Conference Center. Developed by the City and managed by Marriott, the
hotel and conference center features 60,000 square feet of event space, 30,000
square feet of exhibit halls, and 286 guest rooms. Aside from the impressive
modern interior, the hotel and conference center also offers walking trails, an
indoor pool, 24-hour health club, and the unique Iowa Writers Library.
The City worked with West Bank, which partnered with 33 other banks to provide
$54 million in construction financing for the new hotel and conference center.
West Bank served as the lead bank, taking care of administrative functions such
as processing payments and paying contractors. The loan process involved
substantial efforts between West Bank, city council members, city
administrators, and the Coralville Hospitality Corporation.
"Lynn provided very valuable assistance in those meetings," Mayor Fausett
comments. "Any time you're dealing with financials, you have to have someone
involved who is willing to take a little bit of risk and willing to step up and
explain the process." Fausett goes on to explain that Rowat was confident in
advising on certain areas of the planning process. "My background is not in
financials, so we felt that he provided the expertise we needed," Fausett says.
West Bank has also been involved in many community events taking place both
before and after the hotel and conference center opened. "They've been very
supportive of everything, including promoting the hotel," says Jeff Peller,
general manager of the Coralville Marriott Hotel and Conference Center. "They
exhibited all of the architectural renderings in the bank for a few months
before the hotel opened so people could come see what it would look like.
They've also supported events held in the hotel since it opened," Peller adds.
Mayor Fausett believes that while West Bank has the same regimens other banks
must follow, West Bank works within its means to provide customer service that
goes above and beyond. "West Bank employees have gone out of their way to do
what they can to provide service within their rules and regulations," he says.
"It's been a fantastic partnership."
(PHOTO)
From Back to Front: Justin Hannah - Director of Marketing, Marriott
Lynn Rowat - Eastern Iowa Market President, West Bank
Kelly Hayworth - City Administrator, Coralville
Jim Fausett - Mayor, Coralville - Jeff Peller - General Manager, Marriott
Tom Cilek - Senior Vice President, West Bank
(GRAPHIC OF PENCILS & PEN)
Decidedly Different Leadership.
DIRECTORS & EXECUTIVE OFFICERS
(PHOTO OF DIRECTORS)
West Bancorporation Board of Directors
(1) Audit Committee
(2) Compensation Committee
(3) Nominating & Corporate Governance Committee
1 ROBERT G. PULVER (2, 3)
President & CEO, All State Industries, Inc.
2 THOMAS E. STANBERRY
Chairman, President & CEO
3 ORVILLE E. CROWLEY (2)
President, Linden Lane Farms
4 JACK G. WAHLIG (1, 3)
President, Integrus Financial, L.C.
5 FRANK W. BERLIN (2)
President, Frank W. Berlin & Associates
6 MICHAEL A. COPPOLA
President, Coppola Enterprises, Inc.
7 STEVEN G. CHAPMAN (3)
Chairman & CEO, ITAGroup, Inc.
8 CONNIE WIMER (1)
Publisher, Business Publications
9 GEORGE D. MILLIGAN (1, 2)
President, The Graham Group, Inc.
(PHOTO OF EXECUTIVE OFFICERS)
Executive Officers
1 BRAD L. WINTERBOTTOM
Executive Vice President
2 THOMAS E. STANBERRY
Chairman, President & CEO
3 SHAREN K. SURBER
Executive Vice President, West Bank
4 DOUGLAS R. GULLING
Executive Vice President & Chief Financial Officer
5 JOYCE A. CHAPMAN (Retired)
Executive Vice President, West Bank
6 SCOTT D. ELTJES
CEO, WB Capital Management Inc.
7 JEFFERY D. LORENZEN
President & Chief Investment Officer, WB Capital Management Inc.
(GRAPHIC OF COINS)
Decidedly Different Results.
FINANCIAL HIGHLIGHTS
West Bancorporation, Inc. & Subsidiaries
FINANCIAL HIGHLIGHTS (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
2006 2005 2004 2003 2002
---------- ---------- ---------- ---------- --------
YEAR-END BALANCES
Assets $1,268,536 $1,244,380 $1,148,435 $1,000,612 $886,116
Investment securities 261,578 274,719 347,052 274,913 212,292
Loans 904,422 867,504 725,845 599,355 488,453
Non-performing loans 650 4,912 860 1,793 1,899
Deposits 925,334 944,893 865,932 705,074 613,099
Stockholders' equity 113,812 104,521 97,620 92,896 85,824
AVERAGE BALANCES
Assets 1,298,410 1,192,208 1,066,511 932,907 837,938
Investment securities 270,484 313,015 301,718 246,823 213,361
Loans 918,992 785,164 645,875 531,033 482,013
Deposits 991,603 862,376 764,741 608,544 568,625
Stockholders' equity 107,345 100,392 94,209 88,742 81,904
RESULTS OF OPERATIONS
Net interest income 39,067 38,373 35,647 32,322 30,990
Provision for loan losses 1,725 1,775 1,200 850 910
Noninterest income 15,871 11,517 10,706 9,305 6,614
Noninterest expense 24,678 18,645 16,968 14,694 11,220
Income before taxes 28,535 29,470 28,185 26,083 25,474
Net income 19,407 20,075 18,614 17,283 16,376
PER COMMON SHARE (1)
Net income 1.11 1.14 1.06 0.98 0.92
Dividends 0.625 0.610 0.595 0.580 0.562
Book value 6.49 5.96 5.57 5.25 4.85
Closing price 17.78 17.81 16.77 15.67 13.77
RATIOS
Return on average equity 18.08% 20.00% 19.76% 19.48% 19.99%
Return on average assets 1.49% 1.68% 1.75% 1.85% 1.95%
Efficiency ratio 43.42% 36.22% 35.78% 34.78% 29.19%
Net interest margin 3.38% 3.62% 3.71% 3.77% 3.97%
Average equity as % of
average assets 8.27% 8.42% 8.83% 9.51% 9.77%
Allowance for loan losses
as % of loans 0.94% 0.88% 0.90% 1.00% 0.92%
Net charge-offs as % of
average loans 0.09% 0.09% 0.10% 0.05% 0.14%
Non-performing loans as %
of loans 0.07% 0.57% 0.12% 0.30% 0.39%
(1) In July 2006, 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.
West Bancorporation, Inc. & Subsidiaries
CONSOLIDATED BALANCE SHEETS (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
DECEMBER 31
-----------------------
2006 2005
---------- ----------
ASSETS
Cash and due from banks $ 35,063 $ 39,424
Federal funds sold and other
short-term investments 615 1,241
---------- ----------
CASH AND CASH EQUIVALENTS 35,678 40,665
Securities available for sale 256,731 270,334
Federal Home Loan Bank stock, at cost 4,847 4,385
Loans 904,422 867,504
Allowance for loan losses (8,494) (7,615)
---------- ----------
LOANS, NET 895,928 859,889
Premises and equipment, net 5,375 5,650
Accrued interest receivable 8,587 7,862
Goodwill and other intangible assets 27,917 27,116
Bank-owned life insurance 22,956 22,099
Other assets 10,517 6,380
---------- ----------
TOTAL ASSETS $1,268,536 $1,244,380
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits:
Noninterest-bearing demand $ 203,964 $ 207,493
Interest-bearing demand 57,605 48,630
Savings 234,240 295,068
Time, in excess of $100 256,105 269,057
Other time 173,420 124,645
---------- ----------
TOTAL DEPOSITS 925,334 944,893
Federal funds purchased and securities
sold under agreements to repurchase 109,346 84,748
Other short-term borrowings 1,929 4,732
Long-term borrowings 106,019 99,188
Accrued expenses and other liabilities 12,096 6,298
---------- ----------
TOTAL LIABILITIES 1,154,724 1,139,859
---------- ----------
STOCKHOLDERS' EQUITY
Common stock, no par value; authorized
50,000,000 shares;
17,536,682 and 17,536,935 shares
issued and outstanding at December
31, 2006 and 2005, respectively 3,000 3,000
Additional paid-in capital 32,000 32,000
Retained earnings 80,397 71,951
Accumulated other comprehensive income
(loss) (1,585) (2,430)
---------- ----------
TOTAL STOCKHOLDERS' EQUITY 113,812 104,521
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $1,268,536 $1,244,380
========== ==========
West Bancorporation, Inc. & Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
YEARS ENDED DECEMBER 31,
---------------------------
2006 2005 2004
------- ------- -------
INTEREST INCOME:
Loans $67,176 $50,361 $37,169
Securities:
U.S. Treasury, government agencies and corporations 6,046 6,903 6,409
States and political subdivisions 4,117 4,099 2,399
Other 1,494 1,700 2,674
Federal funds sold and other short-term investments 903 412 948
------- ------- -------
TOTAL INTEREST INCOME 79,736 63,475 49,599
INTEREST EXPENSE:
Demand deposits 464 184 86
Savings deposits 7,448 5,298 3,596
Time deposits 23,557 10,459 3,760
Federal funds purchased and securities sold under agreements
to repurchase 4,002 2,484 857
Other short-term borrowings 46 1,683 444
Long-term borrowings 5,152 4,994 5,209
------- ------- -------
TOTAL INTEREST EXPENSE 40,669 25,102 13,952
------- ------- -------
NET INTEREST INCOME 39,067 38,373 35,647
PROVISION FOR LOAN LOSSES 1,725 1,775 1,200
------- ------- -------
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 37,342 36,598 34,447
------- ------- -------
NONINTEREST INCOME:
Service charges on deposit accounts 4,821 4,660 4,968
Trust services 767 820 632
Investment advisory fees 8,040 3,349 2,683
Increase in cash value of bank-owned life insurance 857 843 869
Net realized gains (losses) from securities available for sale (171) 291 199
Other income 1,557 1,554 1,355
------- ------- -------
TOTAL NONINTEREST INCOME 15,871 11,517 10,706
------- ------- -------
NONINTEREST EXPENSE:
Salaries and employee benefits 13,937 10,308 9,680
Occupancy 3,433 2,497 2,057
Data processing 1,920 1,428 1,361
Other expenses 5,388 4,412 3,870
------- ------- -------
TOTAL NONINTEREST EXPENSE 24,678 18,645 16,968
------- ------- -------
INCOME BEFORE INCOME TAXES 28,535 29,470 28,185
INCOME TAXES 9,128 9,395 9,571
------- ------- -------
NET INCOME $19,407 $20,075 $18,614
======= ======= =======
EARNINGS PER SHARE:
Basic $ 1.11 $ 1.14 $ 1.06
======= ======= =======
West Bancorporation, Inc. & Subsidiaries
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY(1)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Accumulated
Other
Comprehensive Additional Retained Comprehensive
Years Ended December 31, 2006, 2005, & 2004 Income Common Stock Paid-in Capital Earnings Income (Loss) Total
------------------------------------------- ------------- ------------ --------------- -------- ------------- --------
BALANCE, DECEMBER 31, 2003 $3,000 $32,000 $ 56,797 $ 1,099 $ 92,896
COMPREHENSIVE INCOME
Net income $18,614 -- -- 18,614 -- 18,614
Other comprehensive loss,
unrealized (losses) on securities,
net of reclassification adjustment,
net of tax (1,044) -- -- -- (1,044) (1,044)
-------
TOTAL COMPREHENSIVE INCOME $17,570
=======
Cash dividends declared,
$0.595 per share -- -- (10,484) -- (10,484)
Purchase of fractional shares resulting
from stock dividend -- -- (2) -- (2)
Shares reacquired under the common
stock repurchase plan -- -- (2,360) -- (2,360)
------ ------- -------- ------- --------
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
====== ======= ======== ======= ========
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 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.
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 293 common
stockholders of record on December 31, 2006, and an estimated 940 additional
beneficial holders whose stock was held in street name by brokerage houses.
MARKET AND DIVIDEND INFORMATION (1)(2)
HIGH LOW DIVIDENDS
------ ------ ---------
2006
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
2005
1st quarter $18.33 $15.17 $0.152
2nd quarter 18.18 14.61 0.152
3rd quarter 19.07 16.43 0.152
4th quarter 19.00 16.67 0.152
(1) In July 2006, 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) 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, 2006, and 2005,
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, 2006 and in our report dated March 7, 2007, 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 7, 2007
WEST BANK BOARD OF DIRECTORS
Frank W. Berlin
President, Frank W. Berlin & Associates
Joyce A. Chapman
Executive Vice President, West Bank - Retired
Steven G. Chapman
Chairman & CEO, ITAGroup Inc.
Michael A. Coppola
President, Coppola Enterprises, Inc.
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
Eugene T. Meyer
Commissioner of the Iowa Department of
Public Safety, State of Iowa (1)
David R. Milligan
Vice Chairman, West Bank - Retired
George D. Milligan
President, The Graham Group, Inc.
Robert G. Pulver
President & CEO,
All State Industries, Inc.
Thomas E. Stanberry
Chairman & CEO, West Bank
Jack G. Wahlig
President, Integrus Financial, L.C.
Thomas A. Carlstrom
Neurosurgeon
Connie Wimer
Publisher, Business Publications
Brad L. Winterbottom
President, West Bank
DIRECTORS EMERITUS
Orville Crowley
President, Linden Lane Farms
Harlan Hockenberg
Attorney, Coppola, McConville, Coppola,
Hockenberg & Scalise, P.C.
Paul Knapp
Vice President, Knapp Properties, Inc.
(1) Resigned effective February 1, 2007
WB CAPITAL MANAGEMENT INC. BOARD OF DIRECTORS
Scott D. Eltjes
CEO
Douglas R. Gulling
Treasurer
Jeffrey D. Lorenzen
President & Chief Investment Officer
Thomas E. Stanberry
Chairman
Brad L. Winterbottom
AFFILIATE LOCATIONS
(WEST BANK LOGO)
DES MOINES MARKET
Main Bank
1601 22nd Street - West Des Moines
Grand
125 Grand Avenue - West Des Moines
Urbandale
3255 99th Street - Urbandale
North
3839 Merle Hay Road - Des Moines
City Center
809 6th Avenue - Des Moines
East
2440 East Euclid - Des Moines
South
SW 9th & Watrous - Des Moines
EASTERN IOWA MARKET
Downtown
229 S. Dubuque Street - Iowa City
East
1910 Lower Muscatine Road - Iowa City
Coralville
1150 5th Street - Coralville
(WB CAPITAL LOGO)
1415 28th Street
Suite 200
West Des Moines, IA 50266
118 Third Avenue
Suite 700
Cedar Rapids, IA 52401
Phone: 800.343.7084
(WEST BANCORPORATION LOGO)
1601 22nd Street
Suite 209
West Des Moines, IA 50266
Phone: 515.222.2300