2016 Annual Report
FINANCIAL PERFORMANCE
Return on average equity
Return on average assets
16.00%
15.00%
14.00%
13.00%
12.00%
11.00%
10.00%
1.35%
1.30%
1.25%
1.20%
1.15%
1.10%
1.05%
1.00%
2012
2013
2014
2015
2016
2012
2013
2014
2015
2016
Net income
Diluted earnings per share
Dividends per share
$24,000
$22,000
$20,000
s
d
n
a
s
u
o
h
T
$18,000
$16,000
$14,000
$12,000
$10,000
$1.60
$1.40
$1.20
$1.00
$0.80
$0.60
$0.40
$0.20
-
2012
2013
2014
2015
2016
2012
2013
2014
2015
2016
$0.80
$0.70
$0.60
$0.50
$0.40
$0.30
$0.20
$0.10
-
2012
2013
2014
2015
2016
Total loans
Total deposits
s
d
n
a
s
u
o
h
T
$1,500,000
$1,400,000
$1,300,000
$1,200,000
$1,100,000
$1,000,000
$900,000
$800,000
$700,000
s
d
n
a
s
u
o
h
T
$1,600,000
$1,500,000
$1,400,000
$1,300,000
$1,200,000
$1,100,000
$1,000,000
2012
2013
2014
2015
2016
2012
2013
2014
2015
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 6 A N N U A L R E P O R T
Dear Stockholders:
Your Company had another great year. In fact, 2016 was another record year -
the second consecutive record year, which includes a string of ten consecutive
record quarters (for each respective quarter). While we may not believe this string
of record performance will last forever, it is fun while it lasts. What you can
count on is every employee putting forth their best effort to achieve at a level
that is enviable in our industry. Based upon the most recent information available,
we continue to perform in the upper quartile of our peer group. Our vision is not
about being a certain size by a certain time. Our vision is to achieve and sustain
a position of industry envy and admiration.
Along with our record performance, our dividends are at record levels and our stock price hit a record high
during December 2016.
Late in 2016, our new Rochester, Minnesota, office opened. Together with our facility in eastern Iowa, which
opened during 2015, we now have new, efficient facilities to serve both of those markets. These stunning buildings
are in stark contrast to our early Valley Junction headquarters 123 years ago, all of which are pictured within this
annual report.
Our loan portfolio totaled approximately $1.4 billion at the end of 2016. This was an increase of 12.3 percent for
the year. Keeping pace, our deposits grew 7.3 percent to total approximately $1.5 billion at December 31, 2016. All
three markets (central Iowa, eastern Iowa and Rochester, Minnesota) contributed to our growth. This growth was
accomplished with only a 3.6 percent increase in operating expenses.
Over time, credit quality is arguably the most important measure of a financial institution. Our credit quality
remains at a high level by all measures. The credit quality measure we focus on is the Texas ratio. This ratio
divides total nonperforming assets by the sum of tangible common equity plus the allowance for loan losses.
The lower the value of this ratio, the better. Our ratio at December 31, 2016 was 0.56 percent. The average Texas
ratio for all bank holding companies in the United States with total assets between $1 billion and $3 billion as
of September 30, 2016 (latest number available) was 6.9 percent.
But by far, the most significant factor contributing to our success is our people. We have knowledgeable,
long-term employees. Our turnover is low. In fact, we had 100 percent retention of key personnel during 2016!
We look forward to 2017 with reserved confidence. Potential changes in Washington, D.C., that would be beneficial
to our Company include a lower corporate tax rate and reduced red tape. Time will tell if we experience actual
progress in these areas. Even absent these changes, we believe we are well positioned to continue delivery of
superior service to our customers, which should, in turn, result in positive performance for our stockholders.
Sincerely,
David D. Nelson
CEO and President, West Bancorporation, Inc.;
Chairman and CEO, 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 6 A N N U A L R E P O R T
FROM HUMBLE BEGINNINGS...
In 1893, Herman and Anna Raaz were among the first to issue loans to small
businesses and families in Valley Junction. As founders of First Valley Junction Savings
Bank, which later became known as West Des Moines State Bank and then West Bank,
Mr. and Mrs. Raaz gave the small railroad town the financial boost it needed to grow into
one of the original settlements in West Des Moines.
Anna Raaz was the first female banker in Iowa, serving as cashier for the entire 15 years the Raazes owned the bank.
Her aptitude for business earned her the respect of community leaders in Valley Junction and across the Midwest.
In addition to managing the bank, Herman Raaz was heavily involved in the community. He volunteered as
treasurer for the local school district, participated in a number of fraternal organizations and contributed to
several philanthropic efforts.
From humble beginnings in 1893, West Bank has built a strong foundation on our commitment to earning our
customers’ trust while earning recognition by our peers and industry experts as one of the best banks in America.
Most importantly, we continue to be a vital part of the community we proudly call home.
...TO WEST BANK STRONG
As the oldest remaining business of any type founded in what is now West Des Moines, we
celebrated our centennial in 1993 — the same year as West Des Moines — and listed our stock
on Nasdaq during 2002.
We now have eight locations in Central Iowa, two in Eastern Iowa and one in Rochester, Minnesota.
We opened a beautiful new Coralville facility in 2015 to better serve our growing Iowa City and Coralville
client base. This state-of-the-art building features three drive-up lanes, a 24-hour ATM and a full range
of banking services. Our new Rochester facility, built in 2016, features a spacious and natural light-filled
lobby, an interactive drive-up ATM and a rooftop terrace for entertaining. The stunning new structure
was designed to be a point of pride for Rochester residents.
Over the years, we’ve enjoyed receiving national recognition from esteemed institutions such as the
American Bankers Association, Raymond James & Associates and Sandler O’Neill + Partners; as well
as respected publications that include American Banker Magazine and Bank Director Magazine.
But our greatest point of pride has always been serving our loyal customers. Together with our dedicated
staff and supportive community, we are West Bank Strong.
West Bank Teams
Rochester team from left to right: Vice President Mike Schletty, Vice President Don Paulson, CEO Dave Nelson,
Market President Mike Zinser, 1st Vice President Michele Sursely and 2nd Vice President Natalie Jones
Coralville team from left to right: Portfolio Manager Kelly Schaer, Senior Vice President Tom Cilek,
1st Vice President Minda Hamann, Commercial Lender Joe Vens and Market President Jim Conard
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
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*
Retired
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 6 A N N U A L R E P O R T
CENTRAL IOWA COMMUNITY BOARD*
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
American Land and
Redevelopment, Corp.
Jeff Yurgae
Mueller-Yurgae
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 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 6 A N N U A L R E P O R T
EASTERN IOWA COMMUNITY BOARD*
Jesse Allen
Allen Homes, Inc.
Rodney Anderson
Pancheros Mexican Grill
Jill Armstrong
Skogman Realty
David Barker
Barker Apartments
Kevin Digmann
Hodge Construction
Andy Meardon
In Memorium 1960-2016
Mark Mysnyk
Steindler Orthopedic
Clinic, PLC
Ravi Patel
Hawkeye Hotels
Luke Recker
Stryker Instruments
Chuck Skaugstad
The Mansion
Leighton Smith
BerganKDV
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
Charlie Kuehn
Kuehn Motors
Dick Kuehn
Kuehn Motors
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 6 A N N U A L R E P O R T
FINANCIAL HIGHLIGHTS
Years ended December 31, 2016, 2015 and 2014
(dollars in thousands, except per share data)
Results of operation
Net interest income
Provision for loan losses
Noninterest income
Noninterest expense
Income before income taxes
Net income
Per common share
Cash dividends
Basic earnings
Diluted earnings
Closing stock price
Book value
Year-end balances
Assets
Investment securities
Loans
Nonperforming loans
Other real estate owned
Deposits
Stockholders’ equity
Ratios
Return on average assets
Return on average equity
Texas ratio*
Efficiency ratio*
Dividend payout ratio
Dividend yield
Net interest margin
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.
2016
2015
2014
$ 57,118
$ 54,154
$ 49,145
1,000
7,982
31,148
32,952
23,016
850
8,203
30,068
31,439
21,742
750
10,296
32,002
26,689
20,040
$ 0.67
$ 0.62
$ 0.49
1.43
1.42
24.70
10.25
1.35
1.35
19.75
9.49
$1,854,204
$1,748,396
319,794
1,399,870
1,022
-
1,546,605
165,376
1.27%
14.35%
0.56%
46.03%
46.92%
2.71%
3.49%
1.15%
(0.01)%
0.07%
8.92%
384,420
1,246,688
1,461
-
1,440,729
152,377
1.30%
14.88%
0.87%
46.30%
45.77%
3.14%
3.59%
1.20%
(0.04)%
0.12%
8.71%
1.25
1.25
17.02
8.75
$1,615,566
339,208
1,184,045
1,937
2,235
1,270,462
140,175
1.32%
15.19%
2.71%
49.93%
39.13%
2.88%
3.59%
1.15%
0.09%
0.16%
8.68%
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 6 A N N U A L R E P O R T
CONSOLIDATED BALANCE SHEETS
December 31, 2016 and 2015
(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
$47,789 and $51,918 at December 31, 2016 and 2015, 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, net
Federal Home Loan Bank advances, net
Long-term debt, net
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, 2016 and 2015
Common stock, no par value; authorized 50,000,000 shares; 16,137,999
and 16,064,435 shares issued and outstanding at December 31, 2016
and 2015, respectively
Additional paid-in capital
Retained earnings
Accumulated other comprehensive (loss)
Total stockholders’ equity
Total liabilities and stockholders’ equity
2016
2015
$ 40,943
$ 57,329
35,893
76,836
260,637
48,386
10,771
1,399,870
(16,112)
1,383,758
23,314
5,321
33,111
6,957
5,113
15,322
72,651
320,714
51,259
12,447
1,246,688
(14,967)
1,231,721
11,562
4,688
32,834
6,670
3,850
$1,854,204
$1,748,396
$ 479,311
$ 486,707
282,592
668,688
10,446
105,568
267,824
570,391
14,749
101,058
1,546,605
1,440,729
9,690
-
20,398
99,886
5,126
7,123
2,760
19,000
20,385
98,385
8,405
6,355
1,688,828
1,596,019
-
-
3,000
21,462
141,956
(1,042)
165,376
$1,854,204
3,000
20,067
129,740
(430)
152,377
$1,748,396
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 6 A N N U A L R E P O R T
CONSOLIDATED STATEMENTS OF INCOME
Years ended December 31, 2016, 2015 and 2014
(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 from 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
Other real estate owned
Professional fees
Director fees
Other expenses
Total noninterest expense
Income before income taxes
Income taxes
Net income
Earnings per common share:
Basic
Diluted
2016
2015
2014
$57,419
$52,556
$47,440
4,201
3,266
108
64,994
3,391
5
42
728
3,565
145
7,876
57,118
1,000
56,118
2,461
1,825
1,310
151
647
443
(4)
66
1,083
7,982
16,731
4,033
2,510
937
-
774
888
5,275
31,148
32,952
9,936
$23,016
$ 1.43
$ 1.42
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
5,091
30,068
31,439
9,697
$21,742
$ 1.35
$ 1.35
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
5,230
32,002
26,689
6,649
$20,040
$ 1.25
$ 1.25
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 6 A N N U A L R E P O R T
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
Years ended December 31, 2016, 2015 and 2014
(in thousands, except per share data)
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
Net income
Other comprehensive loss, net of tax
Cash dividends declared, $0.67 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, 2016
Preferred
stock
Common
stock
Additional
paid-in capital
Retained
earnings
Accumulated
other
comprehensive
income (loss)
Total
$ -
$3,000
$18,411
$105,752
$(3,538)
$123,625
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
633
(189)
116
20,040
-
(7,842)
-
-
-
3,000
18,971
117,950
-
-
-
-
-
-
-
-
-
1,166
(225)
155
21,742
-
(9,952)
-
-
-
-
3,792
-
-
-
-
254
-
(684)
-
-
-
-
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
-
-
-
-
-
-
-
-
-
23,016
-
(10,800)
1,684
(394)
105
-
-
-
-
(612)
-
-
-
-
23,016
(612)
(10,800)
1,684
(394)
105
$ -
$3,000
$21,462
$141,956
$(1,042)
$165,376
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To 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, 2016 and 2015, 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, 2016, and in our report dated March 1, 2017, 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 1, 2017
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 6 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 194 common stockholders of record on December 31, 2016, and an estimated 2,400 additional
beneficial holders whose stock was held in street name by brokerages or fiduciaries.
Market and dividend information (1)
High
Low
Close
Dividends
2016
4th Quarter
3rd Quarter
2nd Quarter
1st Quarter
Total
2015
4th Quarter
3rd Quarter
2nd Quarter
1st Quarter
Total
$ 25.05
20.52
19.65
19.58
$ 18.75
17.65
17.33
16.04
$ 24.70
19.60
18.59
18.23
$ 21.09
20.99
20.46
19.94
$ 17.74
17.67
17.98
16.00
$ 19.75
18.75
19.84
19.89
$ 0.17
0.17
0.17
0.16
$ 0.67
$ 0.16
0.16
0.16
0.14
$ 0.62
(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, 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 the Company’s 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,” “opportunity,” “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 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 nonbank
competitors; changes in local, national and international economic conditions; changes in regulatory requirements, limitations and costs; changes in customers’
acceptance of the Company’s products and services; cyber-attacks; unexpected outcomes of existing or new litigation involving the Company; and any other risks
described in the “Risk Factors” sections of other reports filed by the Company with the Securities and Exchange Commission. 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 6 A N N U A L R E P O R T
Branch Locations
CENTRAL IOWA
Main Bank
1601 22nd St.
West Des Moines
City Center Branch
Drive-up only express
809 6th Ave.
Des Moines
North Branch
Drive-up only express
3839 Merle Hay Rd.
Des Moines
Urbandale Branch
Drive-up only express
3255 99th St.
Urbandale
Grand Branch
125 Grand Ave.
West Des Moines
East Branch
2440 E Euclid Ave.
Des Moines
South Branch
3920 SW 9th St.
Des Moines
Waukee Branch
955 E Hickman Rd.
Waukee
EASTERN IOWA
Coralville Branch
401 10th Ave.
Coralville
Iowa City Branch
1910 Lower Muscatine Rd.
Iowa City
SOUTHEASTERN MINNESOTA
Rochester Branch
2188 Superior Dr. NW
Rochester
2016 Annual Report
© West Bancorporation, Inc. and Subsidiary