Quarterlytics / Financial Services / Banks - Regional / West Bancorporation, Inc.

West Bancorporation, Inc.

wtba · NASDAQ Financial Services
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Ticker wtba
Exchange NASDAQ
Sector Financial Services
Industry Banks - Regional
Employees 180
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FY2017 Annual Report · West Bancorporation, Inc.
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2017 Annual Report

FINANCIAL PERFORMANCE

Return on average equity

Return on average assets

Net income

Earnings per share

Dividends per share

Total loans

Total deposits

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 7   A N N U A L   R E P O R T

Dear Stockholders:

Your company achieved another record year for the third consecutive year.  
Several factors contributed to our 2017 results: we experienced 100 percent  
retention of our key employees; our credit quality remains strong; the  
percentage growth in our loans and deposits exceeded the growth in our  
expenses — and that growth came in all three of our markets (central Iowa,  
eastern Iowa and Rochester, Minnesota). As I stated last year, we don’t  
believe this string of record performance will last forever, but it is fun while 
it lasts. 

Along with our strong performance, our dividends are at record levels, and our stock 
price hit an all-time high during December 2017.

This year’s record earnings were achieved in spite of having to recognize a one-time, noncash charge to  
write down the value of our deferred tax assets. This was necessary after the enactment of the new federal  
tax law in late December 2017. Many companies throughout the nation had to revalue their deferred tax  
assets and incur a charge. We believe the benefit of a lower effective income tax rate going forward will  
more than offset the deferred tax assets charge. 

We celebrate our 125th anniversary during 2018. We are the oldest business of any kind headquartered in  
West Des Moines, Iowa, and we are proud of this distinction. While we have expanded to markets beyond  
West Des Moines, we never forget our home.

We begin 2018 with momentum, a dose of caution and an abundance of confidence. Our West Bank team is  
strong. We plan to improve personal performance by providing greater clarity to activity expectations and  
skills development. We expect to outperform other banks by building relationships and providing great service.  

Our vision is not about being a certain size by a certain time. It is to achieve and sustain a position of industry  
envy and admiration. We believe our recognition by others as one of America’s top performing banks indicates  
we are achieving our vision. We remind ourselves frequently that vision is a journey, not a destination.

We believe 2018 will be better than 2017. We will continue to focus on relationship building, community  
leadership, enhancing our internal culture and all the activities that make West Bancorporation, Inc. special.

Thank you for your support.

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 7   A N N U A L   R E P O R T

 
 
Our mission 
is to build strong relationships, build strong 
communities and build upon our strong reputation 
to ensure our clients receive exceptional care, our 
communities receive outstanding support, and the 
loyalty of our employees and stockholders is rewarded.

2017 HIGHLIGHTS

West Bank experienced an outstanding 2017, with record-breaking performance,  
national recognition from esteemed institutions, updated services and more.  
Moving into 2018, we are well positioned to deliver superior service to our customers  
and exceptional results for our stockholders. 

High performance

•	Continued	performance	in	the	upper	quartile	of	our	peer	group

•	Success	in	the	Rochester	market	upon	opening	our	new	facility

•		Growth	in	our	deposits	and	loan	portfolio	while	maintaining	credit	 

quality at a high level

Modernized services and support

•	Website	and	online	banking	updates

•	Social	media	launch	

•	Streamlined	business	and	personal	checking	products	

Industry distinction and reputation

•		National	attention	from	investment	bank	and	research	firm	 

Raymond James & Associates 

•	Recognition	from	American	Banker	Magazine	and	Bank	Director	Magazine

Strong relationships and communities
•	Low	employee	turnover	rate

•	Proven	strong	relationships	evidenced	by	account	retention

•		Investment	in	our	communities	through	the	 

West Bancorporation Foundation, Inc. 

•	Employee	volunteerism

Our vision 
is to achieve and sustain a position  
of industry envy and admiration.

	
	
	
 
	
	
 
	
 
	
	
	
125 yEARS STRONG

Since	1893	—	the	same	year	the	City	of	West	Des	Moines	was	founded	—	West	Bank	has	built	a	reputation	for	

earning our customers’ trust, while continuing to be recognized as one of the best banks in America compared to  

our peers by industry experts.

As we approach our 125th anniversary, we’re grateful for the strong relationships we’ve built with individuals, 

families and businesses who value our dedication to community banking. We’ve worked hard to develop 

customized banking solutions for customers, giving them the resources and freedom they need to prosper in  

the thriving communities we serve. 

With	branches	in	Des	Moines,	Coralville,	Iowa	City,	Waukee	and	Urbandale,	Iowa,	and	Rochester,	Minnesota,	

we’re extremely proud of the work we do — both at the bank and in the community. Our loan portfolio is growing, 

and we have strong credit quality. But by far, the biggest measurement of our success is our people, who are 

dedicated to making meaningful contributions to the places we live and work. 

We’ve achieved a lot in 125 years of banking, but some things have not changed: our commitment to treating 

every customer with dignity and respect, and our never-ending pursuit of improving the places we proudly call 

home. Together, we are 125 years strong.

OuR FOuNDERS

Nearly 125 years ago, Herman and Anna Raaz began issuing loans to families and small businesses in the now-historic 
Valley Junction. Originally named First Valley Junction Savings Bank, West Bank gave the little railroad town the 
financial boost it needed to grow into one of the original settlements in West Des Moines.

Born	in	1858	in	Elmira,	New	York,	Herman	Raaz	left	home	when	he	was	20	years	old	to	pursue	new	opportunities	in	
the burgeoning Midwest. Over the course of several years, he worked as a cigar maker in Jefferson, Iowa, clothing store 
manager	in	Rockwell	City	and	Centerville	and	banker	in	Rippey.	

In	1883,	he	married	Anna	Craig,	the	daughter	of	Scottish	immigrants	who	worked	an	unbroken	plot	of	Mitchellville	
prairie into highly productive and valuable farmland. No stranger to hard work, the new Mrs. Raaz proved to be an 
exceptional partner both at home and in business.

The two moved to Valley Junction and founded what is now known as West Bank in 1893.

Mrs. Raaz’s aptitude for banking gained her an impressive and respected reputation across the Midwest. As the first 
female banker in Iowa, she was renowned for recognizing the faces and signatures of virtually every businessman and 
employee	in	Valley	Junction.	Legend	has	it	she	never	cashed	a	check	that	was	not	genuine	during	her	15	years	as	cashier.	

In addition to managing the bank, Mr. Raaz was also very involved in other aspects of life in the small town. He helped 
organize the local independent school district, of which he served as treasurer for 14 years, was involved in several 
fraternal organizations and was well recognized for his philanthropic work. 

The story of how Mr. and Mrs. Raaz enriched their community has become ingrained in the West Bank identity, and  
we continue to conduct business according to the values they established 125 years ago. 

wEST bANk HISTORy 
AT A GLANCE

1968

1893

Herman and 
Anna Raaz 
establish First 
Valley Junction 
Savings Bank.

David Miller 
becomes 
president.

1960

The bank moves to  
125	Grand	Avenue	
in West Des Moines.

1983

David Miller and 
local investors 
purchase the bank.

1938

First Valley 
Junction Savings 
Bank is renamed 
West Des Moines 
State Bank.

1961

David Miller  
joins the bank.

1972

The bank moves  
to 22nd Street in 
West Des Moines, 
its current 
headquarters.

2015

West Bank 
opens a beautiful 
new location in 
Coralville.

1993

2002

West Des Moines 
and West Des Moines 
State Bank celebrate 
their centennials.

West Bancorporation, Inc. 
stock is listed 
on Nasdaq.

2016

West Bank builds  
a new, state-of- 
the-art facility in 
Rochester, MN.

1984

West Bancorporation, 
Inc. is formed.

2003

2014

West Des Moines 
State Bank is renamed 
West Bank.

CEO	Dave	Nelson	and	
CFO	Doug	Gulling	 
ring the Nasdaq 
closing bell.

West Bancorporation 
Foundation, Inc.  
is formed.

West Bank  
purchases two 
Hawkeye State Bank 
branches	in	Iowa	City.

west bank branch openings

1960  Grand branch — West Des Moines

1999  Urbandale branch — Urbandale

1972  Main bank — West Des Moines

2003  Iowa City branch — Iowa City

1979  City Center branch — Des Moines

2009  Waukee branch — Waukee

1990  East branch — Des Moines

2015  Coralville branch — Coralville

1993  South branch — Des Moines

2016  Rochester branch — Rochester

1998  North branch — Des Moines 

OPPORTuNITy AND GROwTH

For West Bank, the second half of the 20th century was ushered in by David Miller, who joined the bank in 1961 
and was named president in 1968. Mr. Miller was more than the brains of the operation — he was the heart and 
soul, the one who defined our culture as welcoming, fair and down-to-earth. He always credited his employees 
with the bank’s success, noting their dedication and friendliness. 

Under	Mr.	Miller’s	leadership,	the	bank	saw	a	33	percent	increase	in	assets	and	50	percent	increase	in	loans	
within a few years. He pushed for a new facility that could accommodate our rapid success. Built in 1972 on 
22nd Street in West Des Moines, the landmark building — which is still the West Bank headquarters — features 
a shining exterior of anodized bronzed aluminum. True to the 1970s, the original interior was decorated with 
electric blue and magenta office furniture, thick gold carpeting, silver columns and smoked glass.

Mr. Miller and local investors purchased the bank in 1983, and formed West Bancorporation, Inc. in 1984. Over 
the	next	several	years,	West	Bank	opened	multiple	branches	in	Des	Moines	and	Urbandale.	We	rang	in	the	new	
millennium with a state-of-the-art website and online banking capabilities. West Bancorporation, Inc. stock was 
listed on Nasdaq shortly thereafter. 

The West Bancorporation Foundation, Inc. was founded in 2003 and has awarded more than $3 million to 
nonprofits to date. We rolled out our Mobile Banking app in 2014 to accommodate our clients’ growing needs. 
That	same	year,	CEO	Dave	Nelson	and	CFO	Doug	Gulling	rang	the	Nasdaq	closing	bell.	We	recently	opened	
beautiful	new	facilities	in	Coralville,	Iowa,	and	Rochester,	Minnesota,	to	better	serve	our	clients.	

In 1960, West Bank had $3.4 million in assets and employed five people. By 1977, it had $62.9 million in assets, 
and by 1986, it employed 85 people. We currently have $2.1 billion in assets and employ more than 170 people 
at 11 branches. A lot has changed for West Bank over the years, but our dedication to our clients, employees and 
investors will always remain the same. 

Reprinted with permission of the Business Record

125 yEARS AND bEyOND

West	Bank	is	still	going	strong,	with	locations	now	in	the	Des	Moines	metro	area,	Iowa	City	and	Coralville,	Iowa,	and	
Rochester, Minnesota. We continue performing in the upper quartile of our peer group, and growing our loan portfolio 
and deposits while maintaining credit quality at a high level. Our employees place a high priority on community 
involvement, giving their time and talents to a long list of civic and neighborhood projects.

We also enjoy national recognition from esteemed institutions such as investment bank and research firm  
Raymond James & Associates, as well as respected publications that include American Banker Magazine and  
Bank Director Magazine. 

But our greatest source of pride has been cultivating long-lasting relationships with the people we serve. We’re excited 
for what the future holds, and we’re poised to meet the needs of our customers well into the future. Together, we are  
125 years strong.

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*
Businessolver, Inc.

George Milligan*
The Graham Group, Inc.

Jim Noyce*
Retired

bob Pulver*
All-State Industries, Inc.

Lou Ann Sandburg*
Retired 

Steven T. Schuler*
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 7   A N N U A L   R E P O R T

CENTRAL IOwA COMMuNITy bOARD*

Jerry Deegan
Retired

Darin Ferguson
Ferguson Commercial 
Real Estate Services

Ryan Flynn, CPA
Flynn + Sweeney, LLC

kevin Grimm
Wexford & James, LLC

Greg LaMair
LMC Insurance and 
Risk Management

Gene Loffredo
Loffredo Fresh 
Produce Co., Inc.

Dave Moench
Electrical Engineering & 
Equipment Company

Austin Palmer
The Palmer Group

Victoria Veiock
Wicker Works, LTD

Mark wackerbarth
Denman & Company

Nancy williams
American Land and  
Redevelopment, Corp.

Jeff yurgae
Mueller-Yurgae  
Associates, Inc.

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 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 7   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

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.

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 7   A N N U A L   R E P O R T

FINANCIAL HIGHLIGHTS 
As of and for the years ended December 31, 2017, 2016 and 2015 
(dollars in thousands, except per share data)

Results of operations
  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 (1)
  Efficiency ratio (1) (2)

  Dividend payout ratio

  Dividend yield
  Net interest margin (2)

  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

2017

2016

2015

$     60,057

$     57,118

$     54,154

-

8,648

32,267

36,438

23,070

1,000

7,982

31,148

32,952

23,016

850

8,203

30,068

31,439

21,742

$         0.71

$         0.67

$        0.62

1.42

1.41

25.15

10.98

1.43

1.42

24.70

10.25

$2,114,377

$1,854,204

498,920

1,510,500

622

-

1,810,813

178,098

1.18%

13.29%

0.32%

45.39%

49.84%

2.82%

3.37%

1.09%

0.02%

0.04%

8.42%

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%

1.35

1.35

19.75

9.49

$1,748,396

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)  A lower ratio is better.
(2)  As presented, this is a non-GAAP measure – see “Non-GAAP Financial Measures” for additional details.

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 7   A N N U A L   R E P O R T

CONSOLIDATED bALANCE SHEETS  
December 31, 2017 and 2016 
(dollars in thousands, except per share data)

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  
   $45,890 and $47,789 at December 31, 2017 and 2016, 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 or more

     Other time

       Total deposits
  Federal funds purchased

  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, 2017 and 2016

   Common stock, no par value; authorized 50,000,000 shares; 16,215,672  
   and 16,137,999 shares issued and outstanding at December 31, 2017  
   and 2016, respectively
  Additional paid-in capital

  Retained earnings

  Accumulated other comprehensive loss

     Total stockholders’ equity

     Total liabilities and stockholders’ equity

    2017

        2016

$     34,952

$     40,943

12,997

47,949

444,219

45,527

9,174

1,510,500 

 (16,430)

1,494,070

23,022

7,344

33,618

4,645

4,809

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

$2,114,377

$ 1,854,204

$   395,888

$   479,311

395,052

850,216

16,965

152,692

282,592

668,688

10,446

105,568

1,810,813

1,546,605

545

20,412

76,382

22,917

5,210

9,690

20,398

99,886

5,126

7,123

1,936,279

1,688,828

-

-

3,000

23,463

153,527

(1,892)

178,098

3,000
21,462

141,956

(1,042)

165,376

$2,114,377

$ 1,854,204

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 7   A N N U A L   R E P O R T

CONSOLIDATED STATEMENTS OF INCOME 
Years ended December 31, 2017, 2016 and 2015 
(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

  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

  Increase in cash value of bank-owned life insurance

  Gain from bank-owned life insurance

  Realized investment securities gains, net

  Other income

        Total noninterest income

Noninterest expense
  Salaries and employee benefits

  Occupancy

  Data processing

  FDIC insurance

  Professional fees

  Director fees

  Other expenses

        Total noninterest expense

        Income before income taxes

  Income taxes (1)

        Net income

Earnings per common share:
  Basic earnings per common share

  Diluted earnings per common share

     2017

              2016

             2015

$63,242

$57,419

$52,556

5,501

3,960

331

73,034

7,622

99

901

3,836

519

12,977

60,057

-

60,057

2,632

1,754

1,705

652

307

326

1,272

8,648

17,633

4,406

2,677

677

1,075

950

4,849

32,267

36,438

13,368

$23,070

$    1.42

$    1.41

4,201

3,266

108

64,994

3,391

47

728

3,565

145

7,876

57,118

1,000

56,118

2,461

1,825

1,310

647

443

66

1,230

7,982

16,731

4,033

2,510

937

774

888

5,275

31,148

32,952

9,936

4,363

3,147

81

60,147

2,185

46

705

2,825

232

5,993

54,154

850

53,304

2,609

1,830

1,286

727

-

47

1,704

8,203

16,065

4,105

2,329

839

748

881

5,101

30,068

31,439

9,697

$23,016

$21,742

$    1.43

$    1.42

$   1.35

$   1.35

(1)  Income tax expense for the year ended December 31, 2017 included a one-time increase of $2,340 due to the revaluation of net deferred  

tax assets related to the enactment of federal tax legislation on December 22, 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 7   A N N U A L   R E P O R T

REPORT OF INDEPENDENT REGISTERED PubLIC ACCOuNTING FIRM

To the Stockholders and 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 subsidiary as of December 31, 2017 and 2016, and the related consolidated statements of income, comprehensive
income (not presented herein), stockholders’ equity (not presented herein) and cash flows (not presented herein) for each of the three years in the period 
ended December 31, 2017; and in our report, dated March 1, 2018, we expressed an unqualified opinion on those consolidated financial statements.

In our opinion, the information set forth in the accompanying condensed 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, 2018

NON-GAAP FINANCIAL MEASuRES
As of and for the years ended December 31, 2017, 2016 and 2015 
(dollars in thousands)

Non-GAAP financial measures include the Company’s presentation of net interest margin on a fully taxable equivalent (FTE) 
basis and the presentation of the efficiency ratio on an FTE basis, excluding certain noninterest income and expenses. The  
following table reconciles the non-GAAP financial measures to GAAP. 

Reconciliation of net interest income and net 
interest margin on an FTE basis to GAAP:
  Net interest income (GAAP)

  Tax-equivalent adjustment (1)

  Net interest income on an FTE basis (non-GAAP)

  Average interest-earning assets

  Net interest margin on an FTE basis (non-GAAP)

Reconciliation of efficiency ratio on an  
FTE basis to GAAP:
  Net interest income on an FTE basis (non-GAAP)

  Noninterest income

  Less: realized investment securities gains, net

  Plus: losses on disposal of premises and equipment, net

      Adjusted income

  Noninterest expense

  Less: Other real estate owned expenses

      Adjusted expense

2017

2016

2015

$      60,057

$     57,118

$       54,154

2,677

$      62,734

$ 1,863,791

3.37%

2,623

$     59,741

$ 1,711,612

3.49%

2,604

$      56,758

$ 1,583,059

3.59%

$      62,734

$     59,741

$      56,758

8,648

(326)

25

$      71,081

$      32,267

-

7,982

(66)

4

$     67,661

$     31,148

-

8,203

(47)

6

$      64,920

$      30,068

(10)

$      32,267

$     31,148

$      30,058

  Efficiency ratio on an adjusted FTE basis (non-GAAP) (2)

45.39%

46.03%

46.30%

(1)  Computed on a tax-equivalent basis using an incremental federal income tax rate of 35 percent, adjusted to reflect the effect of the nondeductible interest 

expense associated with owning tax-exempt securities and loans.

(2)  Efficiency ratio expresses noninterest expense as a percent of fully taxable equivalent net interest income and noninterest income, excluding specific noninterest 
income and expenses. Management believes the presentation of this non-GAAP measure provides supplemental useful information for proper understanding of 
the financial results, as it enhances the comparability of income and expenses from taxable and nontaxable sources.

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, under  
Investor Relations — SEC Filings — Documents. A copy of the annual report can also be obtained upon request to Alice Jensen at  
515-222-2300 or ajensen@westbankstrong.com.

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 7   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 185 common stockholders of record on December 31, 2017, and an estimated 2,600 additional  
beneficial holders whose stock was held in street name by brokerages or fiduciaries.

Market and dividend information (1)

High

Low

Close

Dividends

2017
  4th Quarter
  3rd Quarter
  2nd Quarter

  1st Quarter

     Total

2016
  4th Quarter
  3rd Quarter
  2nd Quarter
  1st Quarter
     Total

$ 28.00
24.75
24.60

24.90

$ 23.40
20.90
21.40

20.60

$ 25.15
24.40
23.65

22.95

$  25.05
20.52
19.65
19.58

$  18.75
17.65
17.33
16.04

$  24.70
19.60
18.59
18.23

$ 0.18
0.18
0.18

0.17

$ 0.71

$  0.17
0.17
0.17
0.16
$  0.67

(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.

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 legal and 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 7   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

SOuTHEASTERN MINNESOTA

Rochester Branch
2188 Superior Dr. NW
Rochester

EASTERN  IOwA

Coralville Branch
401 10th Ave.
Coralville

Iowa City Branch
1910 Lower Muscatine Rd.
Iowa City

ONLINE

westbankstrong.com

          @westbankstrong

2017 Annual Report

© West Bancorporation, Inc. and Subsidiary