West Bancorporation
Annual Report 2015

Plain-text annual report

2015 Annual Report Strength in numbers 2015 Annual Report © West Bancorporation, Inc. and Subsidiary Dear Stockholders: During 2015, West Bank experienced a record-setting year. Our net income was the highest for any annual period in the 122-year history of our company, and we believe we are positioned for 2016 to be even better. Why is that? Because of our team. For this year’s annual report, we are highlighting our long-time employees. It is simply not possible to achieve record results without excellent people. Let me share with you a portion of my year-end message to all team members: Congratulations and thank you for a record-setting 2015! We had a great year because of your hard work and the activities you did on purpose. Please take a moment to reflect on our achievements and how they make you feel. During 2015, we moved into our newly constructed eastern Iowa main office and started construction on our new Rochester main office. Our loan balances are at an all-time high, and our growing loan portfolio will make deposit gathering even more important during 2016. We’ll get deposits by building relationships and providing great service. We don’t need industry analysts such as Sandler O’Neill or Raymond James to tell us we’ve been one of the best banks in America for the past four years in a row to know we have something very special. However, it’s still an honor to receive recognition and know we’re part of a championship team. We’ve had a series of victories, but we certainly haven’t arrived at our destination yet. We’ll begin the new year with momentum and confidence. It’s fun to be part of something others envy and admire; thank you for giving me the opportunity to be part of it. And to you, our stockholders, I say thank you for letting us work for you. We enjoy what we do and appreciate your support and interest in our company. Sincerely, David. D. Nelson CEO and President, West Bancorporation, Inc.; Chairman and CEO, West Bank BREAKING RECORDS AND MAKING STRIDES After more than a century of serving our clients and communities, we are proud to announce that 2015 marked the most financially successful year in West Bank history. We had four record quarters for earnings, hit an all-time high stock price, moved into our newly constructed office in Coralville, broke ground on our new Rochester location and experienced steady growth in all three markets — Des Moines, Iowa City/Coralville and Rochester. We also received numerous awards from highly regarded financial organizations. Perhaps the most prestigious came from renowned national banking analysts Sandler O’Neill + Partners, L.P. and Raymond James & Associates. But the most meaningful came from West Bank team members themselves, who nominated us for The Des Moines Register’s Top Workplaces award. The following pages contain 57 individuals with at least 10 years’ experience with West Bank. Retaining high-quality team members is one of our core values, and it’s a value we’re pleased to uphold. Composed of hardworking individuals who conduct business with integrity and treat clients with respect, our team is the secret to our success and the reason we’re celebrating a record-breaking year. The truth is: Our customers don’t just bank with West Bank; they bank with West Bank bankers. The relationships they’ve built are founded on trust and loyalty — loyalty that has strengthened our business for more than 100 years. Kinsey Bodensteiner Sharon Elder Jason Jones Barb Burt Sara Gallagher 10 years 10 years 13 years 13 years 10 years Travis Tollari Kathy Vyrostek Zana Serdarevic Al Petersen Lynn Rowat Sue Ann Niehaus 12 years 11 years 13 years 12 years 12 years 14 years Mark Moore Jill Hansen Doug Gulling Claudia Miranda Edita Omic-VanPelt Marc Meyer 12 years 11 years 14 years 10 years 13 years 14 years Tom Cilek Emily Bieghler Gabe Olson Marie Roberts Brooke Newton Jason Nelson 11 years 10 years 10 years 12 years 13 years 14 years Steve Hall Dzevida Vodenicarevic Ruby Pleva Peggy Fleming Greg Dockum Ivanka Lastro 12 years 10 years 10 years 10 years 12 years 12 years W E S T B A N C O R P O R A T I O N , I N C . A N D S U B S I D I A R Y | 2 0 1 5 A N N U A L R E P O R T “Our long-term team members are the — Brad Winterbottom strength of our company.” EVP West Bancorporation; President, West Bank 10plus years of service NEW LOCATIONS WITH FAMILIAR FACES Coralville, Iowa To better serve our growing Iowa City and Coralville client base, West Bank moved to a brand new facility in Coralville in January 2015. The state-of-the-art 10,300-square-foot building features three drive-up lanes, a 24-hour ATM and a full range of banking services. We hosted a ribbon-cutting ceremony with the Iowa City Area Chamber of Commerce, which was attended by a number of city council members and community business leaders. As part of our mission to “Build Strong Communities,” West Bank made a donation to the Iowa Children’s Museum, located in Coralville, which hosted fun activities for kids during our open house. Eastern Iowa Market President Lynn Rowat (now retired; Jim Conard is his successor) commented, “We were excited to celebrate the opening of our new eastern Iowa main office building. Our loans and deposits continue to grow, and we are well positioned to take advantage of the significant construction activity in our market.” Rochester, Minnesota Construction is underway for a brand new West Bank facility in Rochester, due for completion by fall 2016. Featuring a rooftop space for entertaining, the beautiful new structure was designed to be a point of pride for Rochester residents. Rochester Market President Mike Zinser said, “We believe our new, permanent location will help us continue expanding our market share. Our team members are well known in Rochester, and we think the business community finds our traditional, relationship-based approach refreshing.” Holly Hawxby 18 years Jennifer Way 16 years West Bank Chairman and CEO Dave Nelson is a former Rochester and southeastern Minnesota banking executive, and the local team boasts an average of 20 years’ experience per banker in the Rochester market. The 14-member community board is composed of high-profile business owners, professionals and other individuals who have played an integral part in shaping Rochester over the years. Gwen Steinmetz 17 years Veda Bergeson 16 years John McKinney 15 years Debbie Ingrao 15 years Sue Reinders 19 years Sheri Wauters 15 years Kevin Smith 15 years Bobbi Jo Kemble 15 years W E S T B A N C O R P O R A T I O N , I N C . A N D S U B S I D I A R Y | 2 0 1 5 A N N U A L R E P O R T “We have the best team. They are dedicated to providing a great level of service to our customers 100 percent of the time. That’s what makes it special.” — Harlee Olafson EVP and Chief Risk Officer, West Bancorporation; EVP and Chief Risk Officer, West Bank 15plus years of service TEAM EFFORT FOR TRUE SUCCESS 2015 Accomplishments This year was record-breaking in many tangible ways, but many of our accomplishments are more difficult to quantify. Take, for instance, the fact that West Bank has infrastructure in place to allow for expansion without adding significant expense, thus improving our efficiency ratio. This capacity for growth is coming into play sooner rather than later, as we are currently growing revenues in all three of our markets. We are well-capitalized and have substantial new business coming through the pipeline. But the truest form of measure comes from within, which is why we were so pleased to be named a Top Workplace by The Des Moines Register. Top Workplace Based entirely on feedback from West Bank team members, The Des Moines Register named our organization one of the best places to work in Iowa in 2015. We had 154 individuals take the survey — an impressive 90 percent response rate — and the result was West Bank earning a spot among 150 stellar companies selected for the Top Workplace award. This award was especially meaningful as it came from people who are especially meaningful to us — our team. Dawn Henss 21 years Donna Huffman 26 years Craig Krouch 24 years Sue Bryant 24 years Barry Cropp 22 years Han Wu 23 years Minda Hamann 21 years Richard Mockobee 27 years Brad Winterbottom 23 years Kellaney Coffman 22 years W E S T B A N C O R P O R A T I O N , I N C . A N D S U B S I D I A R Y | 2 0 1 5 A N N U A L R E P O R T Geoff Gade 22 years “When a person spends a significant portion of their life with one company, you know two things are true: that person believes in the company, and the company believes in that person.” — Doug Gulling EVP, Treasurer and Chief Financial Officer West Bancorporation; EVP and Chief Financial Officer, West Bank plus years of service 20 KUDOS FROM THOSE WHO KNOW Over the past several years, West Bank has earned national recognition by respected institutions and people who understand our industry. American Bankers Association We’ve placed 15th among 513 top performing mid-sized banks in the United States by the American Bankers Association, an organization that supports America’s hometown bankers as they perform their critical role as drivers of America’s economic growth and job creation. Kay Trager 43 years American Banker Magazine As a leading business management publication, American Banker Magazine tackles all issues relevant to banks and their competitive standing in the financial services marketplace. The magazine named West Bank one of the best performing banks in the United States and placed us as number 19 in the nation. Raymond James & Associates For the second year in a row, West Bank was named one of the top 30 banks in America by Raymond James & Associates, an investment banking and research firm. Each year, Raymond James & Associates analyzes publicly held community banks and recognizes those that have outstanding financial performance. ESTEEM FROM THOSE WHO LEAD Bank Director Magazine Bank Director Magazine, a resource that focuses on the strategic issues most fundamental to a bank’s CEO, senior leadership team, chairman and independent directors, placed West Bank 19th in the nation in its 2015 Bank Performance Scorecard, based on profitability, capital adequacy and asset quality metrics. According to Bank Director Magazine, the most profitable banks are those whose strategies are intentional, focused and differentiated. Sandler O’Neill + Partners, L.P. West Bank was named one of the top community banks in America for the fourth year in a row by Sandler O’Neill + Partners, L.P., a full-service investment banking firm and broker-dealer focused on the financial services sector. No other bank in the nation has received this honor four years running, and West Bank is the only bank from Iowa or Minnesota to make the list this year. Of the 435 comparable banks across America, only 34 were named as 2015 Sm-All Stars and of those 34 winners, only 14 banks — including West Bank — were winners last year. “It feels good to be recognized as a national leader by people who know and understand our industry,” said West Bank Chairman and CEO Dave Nelson. “Being named one of America’s best banks four years in a row demonstrates our commitment to being steady, reliable and intentional in our efforts. We believe this is the direct result of the work and dedication of all of our employees. It is truly a team effort.” The criteria used to determine the 2015 Sm-All Stars concentrates on growth, profitability, credit quality and capital strength. The intention of Sandler O’Neill’s Sm-All Stars is to identify top performing small-cap banks before they are discovered by the rest of the world. W E S T B A N C O R P O R A T I O N , I N C . A N D S U B S I D I A R Y | 2 0 1 5 A N N U A L R E P O R T 40plus years of service Alice Jensen 43 years Lynn Perkins 30 years Karen Brooks 33 years Mary Jordan 30 years Rod Weikert 34 years “It is fun to be part of something special.” — Dave Nelson CEO and President, West Bancorporation; Chairman and CEO, West Bank 30plus years of service Ryan Wedemeyer, 1974 - 2016 I N M E M O R I A M With a heavy heart, we at West Bank mourn the loss of our colleague and friend, Ryan Wedemeyer, who lost his battle with cancer January 31, 2016. “Ryan had a quiet strength about him,” said Brad Winterbottom, West Bank president. “I worked with him for more than 10 years, and what always struck me was his gracious leadership style. He had an innate sense of integrity, a desire to always ‘do the right thing.’ That’s something I’m always going to remember about him and something a lot of people here are going to miss about him. We’re all going to miss Ryan.” Ryan joined West Bank in 2005 with eight years of experience as a commercial lender for banks in Iowa and Minnesota. A graduate of the University of Northern Iowa, Ryan completed the Graduate School of Banking in Madison, Wisconsin, in 2008. In 2012, he was promoted to senior vice president and chosen to head a new West Bank Commercial and Industrial Lending Department. Active in the community, Ryan served on the boards of directors for the Broadlawns Medical Center Advocacy Circle and the West Bancorporation Foundation, Inc. In 2007, he served as the chair of the West Bancorporation/United Way of Central Iowa employee pledge campaign. He was a member of the Greater Des Moines Leadership Institute class of 2009/2010 and was recognized in 2011 as one of the Des Moines metro area’s “Forty Under 40.” Ryan’s leadership, integrity and positive spirit were invaluable to West Bank. Our warmest thoughts and sincerest condolences go out to Ryan’s wife, Jennifer, and children, Andrew, Lucas and Alena, who will always be part of the West Bank family. We had the privilege to work with Ryan Wedemeyer, and we take comfort in knowing that the positive impact he made on West Bank will continue to live on. “Ryan had a quiet strength about him.... He had an innate sense of integrity, a desire to always ‘do the right thing.’” — Brad Winterbottom EVP West Bancorporation; President, West Bank W E S T B A N C O R P O R A T I O N , I N C . A N D S U B S I D I A R Y | 2 0 1 5 A N N U A L R E P O R T BOARD OF DIRECTORS David Milligan* Chairman, West Bancorporation Dave Nelson* CEO and President, West Bancorporation; Chairman and CEO, West Bank Douglas Gulling** EVP, Treasurer and Chief Financial Officer, West Bancorporation; EVP and Chief Financial Officer, West Bank Brad Winterbottom** EVP, West Bancorporation; President, West Bank Harlee Olafson** EVP and Chief Risk Officer, West Bancorporation; EVP and Chief Risk Officer, West Bank Frank Berlin* Frank W. Berlin & Associates Thomas Carlstom* Retired, Iowa Clinic Joyce Chapman* Retired, West Bank Executive Steven Gaer* R & R Realty Group; Mayor, West Des Moines Mike Gerdin* Heartland Express, Inc. Kaye Lozier* Lozier Consulting Sean McMurray* AgSolver, Inc. George Milligan* The Graham Group, Inc. Jim Noyce* YMCA of Greater Des Moines Bob Pulver* All-State Industries, Inc. Lou Ann Sandburg* Retired Jason Worth* Gilcrest/Jewett Lumber Company * Director of West Bancorporation, Inc. and West Bank ** Director of West Bank W E S T B A N C O R P O R A T I O N , I N C . A N D S U B S I D I A R Y | 2 0 1 5 A N N U A L R E P O R T CENTRAL IOWA COMMUNITY BOARD* Chad Airhart Dallas County Recorder Jerry Deegan Dowling Catholic High School Darin Ferguson Ferguson Commercial Real Estate Services Ryan Flynn, CPA Flynn + Sweeney, LLC Kevin Grimm Wexford & James, LLC Greg LaMair LMC Insurance and Risk Service Gene Loffredo Loffredo Fresh Produce Co., Inc. Austin Palmer The Palmer Group Kirk Tyler Atlantic Bottling Company Victoria Veiock Wicker Works, LTD Mark Wackerbarth Denman & Company Nancy Williams AIB College of Business West Bank invests a great deal in relationships because we believe they’re the cornerstone of our success — it’s one of the reasons we form a community board wherever we do business. We turn to these leaders for their insight, perspective and collective wisdom. We know it’s impossible to be a community bank without local connections and support, so we’re grateful for their assistance in helping us achieve Jeff Yurgae Mueller-Yurgae our business, government and community relations goals. * All three of our community boards are non-voting advisory boards with knowledge of the communities we serve. W E S T B A N C O R P O R A T I O N , I N C . A N D S U B S I D I A R Y | 2 0 1 5 A N N U A L R E P O R T EASTERN IOWA COMMUNITY BOARD* Jill Armstrong Skogman Realty Kevin Digmann Hodge Construction Andy Meardon Lifetime Financial Group, LLC Mark Mysnyk Steindler Orthopedic Clinic, PLC Bill Nusser Hands Jewelers Chuck Skaugstad The Mansion ROCHESTER COMMUNITY BOARD* Gus Chafoulias Titan Development & Investments Patrick Deutsch Pace International Greg Groves Universal Marine & RV, Inc. Norb Harrington Retired Regional Banking President Hal Henderson HGA Architects and Engineers A. M. Sandy Keith Dunlap & Seeger, P.A. Charlie Kuehn Kuehn Motors Dick Kuehn Kuehn Motors James McPeak, Sr. Babcock Genetics, Inc. David Pederson Dunlap & Seeger, P.A. Joe Powers Powers Ventures Peter Schuller A.B. Systems, Inc. Ed Stanley Merit Building Enclosure Systems Tim Weir Olmsted Medical Center * All three of our community boards are non-voting advisory boards with knowledge of the communities we serve. W E S T B A N C O R P O R A T I O N , I N C . A N D S U B S I D I A R Y | 2 0 1 5 A N N U A L R E P O R T 2015 Financial Reports W E S T B A N C O R P O R A T I O N , I N C . A N D S U B S I D I A R Y | 2 0 1 5 A N N U A L R E P O R T FINANCIAL HIGHLIGHTS (dollars in thousands, except per share data) Year-End Balances Assets Investment securities Loans Nonperforming loans Other real estate owned Deposits Stockholders' equity Average Balances Assets Investment securities Loans Deposits Stockholders' equity Results of Operations Net interest income Provision for loan losses Noninterest income Noninterest expense Income before income taxes Net income Net income available to common stockholders Per Common Share Cash dividends Basic earnings Diluted earnings Closing stock price Book value Ratios Return on average equity Return on average assets Texas ratio* Efficiency ratio* Dividend payout ratio Dividend yield Net interest margin Average equity to average assets Allowance for loan losses as % of loans Net charge-offs (recoveries) as % of average loans Nonperforming loans as % of loans Tangible common equity to tangible assets *A lower ratio is better. 2015 2014 2013 2012 2011 $ 1,748,640 384,420 1,246,688 1,461 - 1,440,729 152,377 $ 1,615,833 339,208 1,184,045 1,937 2,235 1,270,462 140,175 $ 1,442,404 357,067 991,720 2,915 5,800 1,163,842 123,625 $ 1,448,175 304,103 927,401 7,256 8,304 1,134,576 134,587 $ 1,269,524 294,497 838,959 10,693 10,967 957,373 123,451 $ 1,675,652 339,492 1,213,429 1,375,512 146,089 $ 1,512,506 347,351 1,063,528 1,222,836 131,924 $ 1,445,773 369,088 949,775 1,131,264 127,789 $ 1,326,408 317,615 854,860 995,694 129,795 $ 1,295,313 266,031 849,115 961,488 135,520 $ 54,154 850 8,203 30,068 31,439 21,742 21,742 $ 0.62 1.35 1.35 19.75 9.49 14.88% 1.30% 0.87% 46.30% 45.77% 3.14% 3.59% 8.72% 1.20% (0.04)% 0.12% 8.71% $ 49,145 750 10,296 32,002 26,689 20,040 20,040 $ 45,683 (850) 8,494 30,816 24,211 16,891 16,891 $ 41,198 625 10,869 28,667 22,775 16,011 16,011 $ 41,402 550 9,349 28,861 21,340 15,268 12,881 $ 0.49 1.25 1.25 17.02 8.75 $ 0.42 1.02 1.02 15.82 7.74 $ 0.36 0.92 0.92 10.78 7.73 $ 0.17 0.74 0.74 9.58 7.09 15.19% 1.32% 2.71% 49.93% 39.13% 2.88% 3.59% 8.72% 1.15% 0.09% 0.16% 8.68% 13.22% 1.17% 7.69% 52.55% 41.41% 2.65% 3.48% 8.84% 1.39% 0.09% 0.29% 8.57% 12.34% 1.21% 11.25% 50.83% 39.13% 3.34% 3.42% 9.79% 1.67% 0.22% 0.78% 9.29% 11.27% 1.18% 16.33% 49.27% 22.97% 1.77% 3.58% 10.46% 2.00% 0.34% 1.27% 9.72% W E S T B A N C O R P O R A T I O N , I N C . A N D S U B S I D I A R Y | 2 0 1 5 A N N U A L R E P O R T CONSOLIDATED BALANCE SHEETS (dollars in thousands) Assets Cash and due from banks Federal funds sold Cash and cash equivalents Investment securities available for sale, at fair value Investment securities held to maturity, at amortized cost (fair value of $51,918 and $51,501 at December 31, 2015 and 2014, respectively) Federal Home Loan Bank stock, at cost Loans Allowance for loan losses Loans, net Premises and equipment, net Accrued interest receivable Bank-owned life insurance Deferred tax assets, net Other assets Total assets Liabilities and Stockholders' Equity Liabilities Deposits Noninterest-bearing demand Interest-bearing demand Savings Time of $250,000 or more Other time Total deposits Federal funds purchased Short-term borrowings Subordinated notes Federal Home Loan Bank advances, net of discount Long-term debt Accrued expenses and other liabilities Total liabilities Stockholders' Equity Preferred stock, $0.01 par value; authorized 50,000,000 shares; no shares issued and outstanding at December 31, 2015 and 2014 Common stock, no par value; authorized 50,000,000 shares; 16,064,435 and 16,018,734 shares issued and outstanding at December 31, 2015 and 2014, respectively Additional paid-in capital Retained earnings Accumulated other comprehensive income (loss) Total stockholders' equity Total liabilities and stockholders' equity December 31, 2015 2014 $ 57,329 15,322 72,651 320,714 $ 27,936 11,845 39,781 272,790 51,259 12,447 1,246,688 (14,967) 1,231,721 11,562 4,688 32,834 6,670 4,094 1,748,640 $ 51,343 15,075 1,184,045 (13,607) 1,170,438 9,988 4,425 32,107 6,333 13,553 1,615,833 $ $ 486,707 267,824 570,391 14,749 101,058 1,440,729 2,760 19,000 20,619 98,385 8,415 6,355 1,596,263 $ 362,827 241,722 527,277 18,985 119,651 1,270,462 2,975 66,000 20,619 96,888 12,676 6,038 1,475,658 - - 3,000 20,067 129,740 (430) 152,377 1,748,640 $ 3,000 18,971 117,950 254 140,175 1,615,833 $ W E S T B A N C O R P O R A T I O N , I N C . A N D S U B S I D I A R Y | 2 0 1 5 A N N U A L R E P O R T CONSOLIDATED STATEMENTS OF INCOME (dollars in thousands, except per share data) Interest Income Loans, including fees Investment securities: Taxable Tax-exempt Federal funds sold Total interest income Interest Expense Deposits Federal funds purchased Short-term borrowings Subordinated notes Federal Home Loan Bank advances Long-term debt Total interest expense Net interest income Provision for Loan Losses Net interest income after provision for loan losses Noninterest Income Service charges on deposit accounts Debit card usage fees Trust services Revenue from residential mortgage banking Increase in cash value of bank-owned life insurance Gain (loss) on disposition of premises and equipment Realized investment securities gains, net Other income Total noninterest income Noninterest Expense Salaries and employee benefits Occupancy Data processing FDIC insurance expense Other real estate owned expense Professional fees Directors fees Miscellaneous losses Other expenses Total noninterest expense Income before income taxes Income Taxes Net income Basic earnings per common share Diluted earnings per common share Years Ended December 31 2014 2013 2015 $ 52,556 $ 47,440 $ 44,992 4,363 3,147 81 60,147 2,185 9 37 705 2,825 232 5,993 54,154 850 53,304 2,609 1,830 1,286 163 727 (6) 47 1,547 8,203 16,065 4,105 2,329 839 10 748 881 30 5,061 30,068 31,439 4,938 2,878 45 55,301 2,426 11 40 754 2,628 297 6,156 49,145 750 48,395 2,790 1,764 1,327 1,394 731 1,069 223 998 10,296 16,086 4,165 2,241 757 1,865 944 714 329 4,901 32,002 26,689 5,173 2,457 119 52,741 3,413 85 4 711 2,657 188 7,058 45,683 (850) 46,533 2,923 1,787 997 1,275 646 (9) - 875 8,494 15,757 3,906 2,030 733 1,359 1,200 584 736 4,511 30,816 24,211 9,697 21,742 $ 6,649 20,040 $ 7,320 16,891 $ $ $ 1.35 1.35 $ $ 1.25 1.25 $ $ 1.02 1.02 W E S T B A N C O R P O R A T I O N , I N C . A N D S U B S I D I A R Y | 2 0 1 5 A N N U A L R E P O R T CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (dollars in thousands, except per share data) Years Ended December 31, 2015, 2014 and 2013 Balance, December 31, 2012 Net Income Other comprehensive loss, net of tax Cash dividends declared, $0.42 per common share Repurchase and cancellation of common stock Stock-based compensation costs Issuance of common stock upon vesting of restricted stock units, net of shares withheld for payroll taxes Excess tax benefits from vesting of restricted stock units Balance, December 31, 2013 Net Income Other comprehensive income, net of tax Cash dividends declared, $0.49 per common share Stock-based compensation costs Issuance of common stock upon vesting of restricted stock units, net of shares withheld for payroll taxes Excess tax benefits from vesting of restricted stock units Balance, December 31, 2014 Net Income Other comprehensive loss, net of tax Cash dividends declared, $0.62 per common share Stock-based compensation costs Issuance of common stock upon vesting of restricted stock units, net of shares withheld for payroll taxes Excess tax benefits from vesting of restricted stock units Balance, December 31, 2015 $ - - - - - - - - - - - - - - - - - - - - - - Preferred Stock Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) $ 3,000 - - - - - $ 33,805 - - - (15,774) 378 $ 95,856 16,891 - (6,995) - - $ 1,926 - (5,464) - - - Total $ 134,587 16,891 (5,464) (6,995) (15,774) 378 - - 3,000 - - - - - - 3,000 - - - - - - (14) - - (14) 16 18,411 - - - 633 (189) 116 18,971 - - - 1,166 (225) 155 - 105,752 20,040 - (7,842) - - - 117,950 21,742 - (9,952) - - - - (3,538) - 3,792 - - - - 254 - (684) - - - - 16 123,625 20,040 3,792 (7,842) 633 (189) 116 140,175 21,742 (684) (9,952) 1,166 (225) 155 $ - $ 3,000 $ 20,067 $ 129,740 $ (430) $ 152,377 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM The Board of Directors and Stockholders 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 subsidiary as of December 31, 2015 and 2014, and the related consolidated statements of income, comprehensive income (not presented herein), stockholders’ equity, and cash flows (not presented herein) for each of the three years in the period ended December 31, 2015, and in our report dated March 3, 2016, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated financial statements is fairly stated, in all material respects, in relation to the consolidated financial statements from which it has been derived. Des Moines, Iowa | March 3, 2016 W E S T B A N C O R P O R A T I O N , I N C . A N D S U B S I D I A R Y | 2 0 1 5 A N N U A L R E P O R T STOCK INFORMATION West Bancorporation’s common stock is traded on the Nasdaq Global Select Market and quotations are furnished by the Nasdaq System. We had 198 common stockholders of record on December 31, 2015, and an estimated 1,500 additional nonobjecting beneficial holders whose stock was held in street name by brokerage houses. Market and Dividend Information (1) 2015 2014 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter Total 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter Total High $ 21.09 20.99 20.46 19.94 Low $ 17.74 17.67 17.98 16.00 Close $ 19.75 18.75 19.84 19.89 $ 17.05 15.68 16.45 15.98 $ 14.00 14.01 13.53 13.64 $ 17.02 14.13 15.23 15.19 Dividends $ 0.16 0.16 0.16 0.14 0.62 0.14 0.12 0.12 0.11 0.49 $ $ $ (1) The prices shown are the high, low, and closing sale prices for the Company’s common stock. The market quotations, reported by Nasdaq, do not include retail markup, markdown or commissions. FORM 10-K A copy of the Company’s annual report to the Securities and Exchange Commission on Form 10-K will be available on the Securities and Exchange Commission’s website at www.sec.gov and through a link on the Company’s website, www.westbankstrong.com, at Investor Relations, SEC Filings. A copy of the annual report can also be obtained upon request to Alice Jensen at 515-222-2300 or ajensen@westbankstrong.com. TRANSFER AGENT/DIVIDEND PAYING AGENT American Stock Transfer & Trust Company, LLC 6201 15th Avenue, Brooklyn, New York 11219 718-921-8200 | www.amstock.com FORWARD-LOOKING STATEMENTS Certain statements in this report, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may appear throughout this report. These forward-looking statements are generally identified by the words “believes,” “expects,” “intends,” “anticipates,” “projects,” “future,” “may,” “should,” “will,” “strategy,” “plan,” “opportu- nity,” “will be,” “will likely result,” “will continue,” or similar references, or references to estimates, predictions or future events. Such forward-looking statements are based upon certain underlying assumptions, risks and uncertainties. Because of the possibility that the underlying assumptions are incorrect or do not materialize as expected in the future, actual results could differ materially from these forward-looking statements. Risks and un- certainties 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 nonbank competitors; changes in local and national economic conditions; changes in regulatory requirements, limitations and costs; changes in customers’ acceptance of the Company’s products and services; cyber-attacks; and any other risks described in sections of this and other reports made by the Company. The Company undertakes no obligation to revise or update such forward-looking statements to reflect current or future events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. W E S T B A N C O R P O R A T I O N , I N C . A N D S U B S I D I A R Y | 2 0 1 5 A N N U A L R E P O R T Branch Locations CENTRAL IOWA Main Bank 1601 22nd St. West Des Moines Grand Branch 125 Grand Ave. West Des Moines EASTERN IOWA Coralville Branch 401 10th Ave. Coralville Iowa City Branch 1910 Lower Muscatine Rd. Iowa City City Center Branch 809 6th Ave. Des Moines North Branch 3839 Merle Hay Rd. Des Moines Urbandale Branch 3255 99th St. Urbandale East Branch 2440 E Euclid Ave. Des Moines South Branch 3920 SW 9th St. Des Moines Waukee Branch 955 E Hickman Rd. Waukee SOUTHEASTERN MINNESOTA Rochester Branch 3147 Superior Dr. NW Ste. 100 Rochester 2015 Annual Report © West Bancorporation, Inc. and Subsidiary 2015 Annual Report © West Bancorporation, Inc. and Subsidiary 

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