E X P A N D I N G O U R C O M M U N I T Y
2019 Annual Report
2 0 1 9 F I N A N C I A L P E R F O R M A N C E
THOUSANDS
$ 2,200,000
2,000,000
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
THOUSANDS
$ 2,200,000
2,000,000
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
Total loans
Net income
Return on average equity
THOUSANDS
$ 30,000
28,000
26,000
24,000
22,000
20,000
18,000
16,000
18,00%
16,00%
14,00%
12,00%
10,00%
8,00%
6,00%
4.00%
2,00%
0.00%
2015
2016
2017
2018
2019
2015
2016
2017
2018
2019
2015
2016
2017
2018
2019
Total DEPOSITS
Earnings per share
Return on average assets
$ 2.00
1.80
1.60
1.40
1.20
1.00
0.80
0.60
0.40
0.20
1,40%
1,20%
1,00%
0,80%
0,60%
0.40%
0,20%
0.00%
2015
2016
2017
2018
2019
2015
2016
2017
2018
2019
2015
2016
2017
2018
2019
Dividends per share
$ 0.90
0.80
0.70
0.60
0.50
0.40
0.30
0.20
0.10
2015
2016
2017
2018
2019
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 9 A N N U A L R E P O R T
Dear Stockholders:
I begin this annual letter to you with great pride about the achievements of our company
which are the result of our employees’ dedication to help our customers and communities.
Although our vision is not about being a certain size by a certain time, during the past
seven years we have doubled the size of our loan portfolio and grown over $1 billion
in assets. Our vision is to achieve and sustain a position of envy and admiration.
We want to be the best, not the biggest.
We have been helping business owners grow their businesses for more than 125 years.
Small- and medium-sized businesses are the backbone of our economy and the key
drivers of community growth. We embrace our role as an advocate for our communities’
success. Community banking thrives in vibrant communities. During 2019, we set the course for the future of
West Bancorporation, Inc. with our strategic expansion in Minnesota. This initiative was designed to sustain the
rich traditions of the Company, while enhancing the future trajectory of shareholder returns.
West Bank remains a business-focused community bank. Our culture is based upon building strong relationships.
We compete with our flexibility and the expertise of our local management, board of directors and community
advisors. We have a solid team of experienced and dedicated employees and a committed and well-rounded board.
We have an enviable client base in economically strong communities. We are committed to empowering passionate
team members who make a difference in their workplace and community.
Six years ago we brought West Bank to Rochester, Minnesota, but not via a traditional acquisition. Existing strong
relationships with highly talented local bankers and community leaders allowed West Bank to enter the market
without paying a premium for an existing book of business. Today, we believe West Bank is the premier business bank
of choice in Rochester, Minnesota.
During March 2019, supported with the same advantage package we had when we expanded to Rochester,
we launched our start-up operations in St. Cloud, Mankato and Owatonna, Minnesota.
Despite the 2019 earnings drag of our investment in starting offices in three new markets, West Bank still achieved
an all-time record year for earnings. Our objective for our three new communities is to achieve a similar outcome
as we have experienced in Rochester. As of December 31, 2019, after nine months of operations for the new offices,
we achieved profitable operations with a positive run rate on our expansion. We expect that this will represent a
significant year over year earnings swing during 2020.
The successful execution of our business model is reflected in our consistently strong financial performance. Our
performance metrics continue to be among the best in our industry with a robust return on equity and exceptional
asset quality. We look to 2020 with great energy and excitement for our continued service to our customers and
communities. Thank you for your support.
It is fun to be part of something special and to look forward to the future with a smile.
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 9 A N N U A L R E P O R T
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2 0 1 9 H I G H L I G H T S
Growing profitability
• We reported annual net income of $28.7 million, the highest
annual net income ever recorded by our company.
•
Investment banking and research firm Raymond James
ranked West Bank at #19 in its list of top performing banks in
the nation, based on 2018 performance.
Enhancing our footprint
• On March 4, 2019, we announced a growth strategy in three new
Minnesota markets - Owatonna, Mankato and St. Cloud.
•
Several locations celebrated important anniversaries - our Waukee branch
celebrated 10 years of service, and both the South and Urbandale
branches celebrated 20 years of service.
• New state-of-the-art West Bank Video Teller Machines are now
available in Iowa at the main West Des Moines branch and in
Minnesota at the Owatonna, Mankato and St. Cloud branches.
Inspiring pride in the workplace
• For the 6th consecutive year, West Bank was named a Top
Workplace in Iowa by the Des Moines Register.
• West Bank employees and the West Bancorporation Foundation
continue to give back to our communities by supporting
more than 100 local nonprofits during the year.
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O u r M i s s i o n
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.
O u r V i s i o n
Our vision is to achieve and sustain a position
of industry envy and admiration.
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E X P A N D I N G O U R C O M M U N I T Y
For more than 125 years, West Bank has placed community at the center
of banking. From our humble beginnings in 1893, West Bank was among
the first in West Des Moines to issue loans to businesses and families
from our small office in Valley Junction. It didn’t take long for West Bank
to become known as a trusted financial advisor, business champion
and community supporter.
Continuing to Cultivate
In the years since, we’ve added many communities to our growing business family,
building more locations in West Des Moines, throughout the Des Moines metro area,
east to Coralville and north into Rochester, Minnesota. Through all the growth,
one thing has remained constant – our focus on the communities we serve.
In 2019, we added three more communities to our northern footprint – Mankato,
Owatonna and St. Cloud, Minnesota. Just like all our West Bank locations, we entered
each new market the same way we originally formed our first bank more than
125 years ago – by cultivating valuable relationships.
Fostering Connections to Community
Developing a sustainable business is very much about who you know – and
what they know about you. We’re proud that our expansion into Minnesota is
attributed to long-standing business relationships based upon mutual
respect and enduring connections.
Before returning to Iowa to join West Bank in 2010, Dave Nelson, current
West Bank Chief Executive Officer, and Harlee Olafson, West Bank
Chief Risk Officer, were both residents of Minnesota for more than 20 years,
having established life-long friendships and business connections.
As West Bank pioneered its first Minnesota location in 2013, Nelson and
Olafson relied on former banking colleagues and familiar business
networks to reconnect to the Rochester, Minnesota banking market.
Starting with a simple loan production office in a retail strip mall and
three employees, West Bank now occupies a beautiful, state-of-the-art
15,000 square-foot building in Rochester with six team members
and a growing portfolio of business.
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5
D E M O N S T R A T I N G C O M M I T M E N T
T H R O U G H C O M M U N I T Y B O A R D S
The single most contributing factor to our continued success in all our
locations is our people. We take considerable pride in keeping individuals –
both inside and outside of the bank – in the heart of our purpose. For this
reason, we invite business professionals we know and trust to help guide our
integration into new communities. We are unlike any other bank, which
means that relying on unique expertise is important to us.
To strive for similar successes as we’ve experienced in other West Bank locations,
the growing Minnesota leadership teams are tapping into their own longstanding
business relationships within the Mankato, Owatonna and St. Cloud communities.
We recognized long ago that no one understands a community as well as its own
members, so we invite them to the table to ensure we recognize, meet and exceed
the distinctive needs and expectations in each location.
To g et her w it h our c omm unit y boards,
we ’ re able to ste e r e ff ort s mo re eff ic ie n t ly,
Through community boards comprised of colleagues and contacts of local
West Bank leaders, we plan for strategic outreach with those who already know
and trust our business acumen and expertise. These boards serve as a beacon
to their communities, illuminating the power of existing relationships to
guide our success.
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MANKATO
OWATONNA
W E S T B A N K T E A M S + C O M M U N I T Y B O A R D S
ST. CLOUD
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ROCHESTER
C h a r i t a b l e G i v i n g
Year after year, West Bank expresses our dedication to community
banking through efforts to give back in every community we serve.
In partnership with local nonprofit organizations, our team members
and community groups, we are proud to support the communities that
have grown alongside us for more than 125 years.
In 2019:
• West Bancorporation Foundation supported more than 100 nonprofit
organizations through donations, volunteerism and sponsorships.
• West Bankers volunteered more than 6,000 hours of hands-on service
to local organizations.
• West Bancorporation Foundation gave more than $279,000 to nonprofit
organizations supporting our communities.
We value gi vi ng back to the c ommunitie s t hat hav e ke p t
We s t Bank growing for mor e th an 12 5 ye a r s.
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M a k i n g I n r o a d s t o t h e F u t u r e
With the birth of widespread Internet use taking place just two decades ago,
the face of banking has changed dramatically and rapidly. West Bank
prioritizes our customers’ needs and conveniences while continuously
evolving our solutions by adapting to emerging technologies. While
self-service digital channels and new convenient apps offer more hands-on
banking experiences, the integration of modern data and analytics keeps our
team better informed while streamlining processes for more efficient service.
Digital Banking Apps That Offer Convenience and Added Security
Mobile Wallet
West Bank debit cards can now be added to a mobile wallet – an alternative to
using physical debit cards. Mobile Wallets, like Apple Pay® and Google Pay™,
allow users to make purchases in stores or online without entering passcodes
or providing a signature. Mobile Wallets use encryption, a process of
encoding debit card information, so physical debit card numbers are not
shared with retailers when making purchases.
CardValet®
With more control on spending, better protection against fraud, and increased
authority over business spending, CardValet® offers customers better
management of debit card use. With the CardValet® app, users are able to:
Increase fraud protection through on-off switching, geographic
•
restrictions and real-time alerts.
• Control spending by setting spending limits or thresholds by
merchant type (e.g. gas, groceries or retailers).
• Monitor personal spending as well as overall company spending
in one location.
CardValet® is a registered trademark of Fiserv, Inc. or its affiliates.
Video Tellers Bring ATMs to Life
West Bank Video Teller Machines, now appearing in five branch locations,
look and operate like an ATM but offer access to a live teller through real-time
video during extended hours.
In addition to providing the standard ATM functions of withdrawing cash
and depositing cash and checks, Video Teller Machines also allow customers to
receive cash withdrawals in specific denominations (including exact change to
the penny), transfer funds between West Bank accounts, make loan payments
and ask banking questions. Drive-up and lobby West Bank Video Tellers are
available in Rochester, Minnesota and the main office in West Des Moines,
Iowa. Lobby-only Video Tellers, accessible during regular lobby hours, are
now available in St. Cloud, Owatonna and Mankato, Minnesota, with more
locations planned in the future.
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B O A R D O F D I R E C T O R S
Jim Noyce*
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
Patrick Donovan*
Retired
Steven Gaer*
R & R Realty Group;
Mayor, West Des Moines
Mike Gerdin*
Heartland Express, Inc.
Sean McMurray*
Businessolver, Inc.
David Milligan*
Retired,
West Bank Executive
George Milligan*
The Graham Group, Inc.
Bob Pulver*
All-State Industries, Inc.
Lou Ann Sandburg*
Retired
Steven Schuler*
Retired
Therese Vaughan*
Drake University
Jason Worth*
Gilcrest/Jewett
Lumber Company
* Director of West Bancorporation, Inc. and West Bank ** Director of West Bank
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C E N T R A L I O W A C O M M U N I T Y B O A R D
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
The Rasmussen
Group, Inc.
Austin Palmer
The Palmer Group
Victoria Veiock
Bing's
Mark Wackerbarth
Denman & Company
Nancy Williams
American Land and
Redevelopment, Corp.
Jeff Yurgae
Mueller-Yurgae
Associates, Inc.
E A S T E R N I O W A C O M M U N I T Y B O A R D
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
All six of our community boards are non-voting advisory boards with knowledge of the communities we serve.
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M A N K A T O C O M M U N I T Y B O A R D
Bryan Bode
Investor/Consultant
Mark Draper
River City Electric
Company
Mike Hennek
4.0 School Services, Inc.
Dr. Wynn Kearney
Retired Surgeon/Investor
Steve Kibble
Farmer/Investor
Bruce Kinsella
Retired Trust Officer
Non-Profit Consultant
Tim Lidstrom
Lidstrom Commercial
Realtors
David Pfeffer
Vintage Fine Homes, Inc.
Mark Phinney
C&N Sales Company
Shield Security Systems
Randy Westman
Westman Investments
Art Westphal
Bethany Lutheran
College
Andrew Willaert
Gislason & Hunter LLP
O W A T O N N A C O M M U N I T Y B O A R D
Joseph Effertz
Black Forest
Chad Hanson
Main Street Dental
Theresa James
James Brothers
Construction
Wayne James
James Brothers
Construction
Scott Mohs
Mohs Contracting
Mohs Homes
Mike Noble
Noble RV
Robert Randall
Transcend Engagement
Darren Roemhildt
Bridge Street
Chiropractic
Brandon Wayne
Ameriprise
All six of our community boards are non-voting advisory boards with knowledge of the communities we serve.
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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 9 A N N U A L R E P O R T
R O C H E s t e r C O M M U N I T Y B O A R D
Jason Boynton, CPA
Smith Schafer & Associates
Michael Busch
Paramark Corp.
Gus Chafoulias
Titan Ventures & Chafoulias
Companies, Inc.
Patrick Deutsch
Pace International
Bobbie Gostout, M.D.
Mayo Clinic &
Mayo Health Systems
Greg Groves
Universal Marine & RV, Inc.
Hal Henderson
HGA, Architect and
Developer
Charlie Kuehn
Kuehn Motors
Dick Kuehn
Kuehn Motors
David Pederson
Dunlap & Seeger, P.A.
Joe Powers
PowersVentures
Peter Schuller
A.B. Systems, Inc.
Ed Stanley
Merit Building
Enclosure Systems
Tim Weir
Olmsted Medical Center
All six of our community boards are non-voting advisory boards with knowledge of the communities we serve.
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S T . C L O U D C O M M U N I T Y B O A R D
David Berdan
J-Berd Mechanical
Byron Bjorklund
Short Stop Restaurants
Steve Feneis
Granite City Real Estate
Jason Ferche
Ferche Excavating
Marc Sanderson
Wilkie Sanderson
Dr. Kevin Smith
Regional Diagnostic
Radiology
Eric Stack
Millerbernd
Manufacturing
Tim Torborg
Torborg Builders, LLC
Heidi Weikert
S.T. Cotter
Turbine Services
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 where 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 six of our community boards are non-voting advisory boards with knowledge of the communities we serve.
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F I N A N C I A L H I G H L I G H T S
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
As of and for the years ended December 31, 2019, 2018, and 2017
(dollars in thousands, except per share data)
2019
2018
2017
$ 66,430
$ 62,058
$ 60,057
600
8,318
38,406
35,742
28,690
(250)
7,752
34,992
35,068
28,508
-
8,648
32,267
36,438
23,070
$ 0.83
$ 0.78
$ 0.71
1.75
1.74
25.63
12.93
$2,473,691
411,069
1,941,663
538
-
2,014,756
211,820
1.20%
14.34%
0.23%
50.96%
47.33%
3.24%
2.95%
0.89%
0.00%
0.03%
8.56%
1.75
1.74
19.09
11.72
$2,296,568
465,795
1,721,830
1,928
-
1,894,529
191,023
1.31%
15.68%
0.93%
48.33%
44.53%
4.09%
3.06%
0.97%
0.03%
0.11%
8.32%
1.42
1.41
25.15
10.98
$2,114,377
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%
(1) A lower ratio is better.
(2) As presented, this is a non-GAAP measure – see “Non-GAAP Financial Measures” for additional details.
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C O N S O L I D A T E D B A L A N C E S H E E T S
Assets
Cash and due from banks
Federal funds sold
Cash and cash equivalents
Investment securities available for sale, at fair value
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, 2019 and 2018
Common stock, no par value; authorized 50,000,000 shares; 16,379,752
and 16,295,494 shares issued and outstanding at December 31, 2019
and 2018, respectively
Additional paid-in capital
Retained earnings
Accumulated other comprehensive loss
Total stockholders’ equity
Total liabilities and stockholders’ equity
December 31, 2019 and 2018
(dollars in thousands, except per share data)
2019
2018
$ 37,808
$ 46,369
15,482
53,290
398,578
12,491
1,941,663
(17,235)
1,924,428
29,680
7,134
34,893
5,361
7,836
1,105
47,474
453,758
12,037
1,721,830
(16,689)
1,705,141
21,491
7,631
34,249
6,518
8,269
$2,473,691
$2,296,568
$ 380,079
$ 400,530
346,307
996,836
81,871
209,663
336,089
950,501
55,745
151,664
2,014,756
1,894,529
2,660
20,438
179,365
22,925
21,727
19,985
20,425
137,878
27,040
5,688
2,261,871
2,105,545
-
-
3,000
27,260
184,821
(3,261)
211,820
3,000
25,128
169,709
(6,814)
191,023
$2,473,691
$2,296,568
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C O N S O L I D A T E D S T A T E M E N T S O F I N C O M E
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 (losses), net
Other income
Total noninterest income
Noninterest expense
Salaries and employee benefits
Occupancy
Data processing
FDIC insurance
Professional fees
Director fees
Write-down of premises
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
Years ended December 31, 2019, 2018, and 2017
(dollars in thousands, except per share data)
2019
$85,512
2018
2017
$71,189
$63,242
10,031
2,022
1,110
98,675
25,214
241
1,023
5,130
637
32,245
66,430
600
65,830
2,492
1,644
2,026
644
-
(87)
1,599
8,318
21,790
5,355
2,735
404
814
993
-
6,315
38,406
35,742
7,052
8,124
4,993
487
84,793
17,064
188
1,076
3,650
757
22,735
62,058
(250)
62,308
2,541
1,681
1,921
631
-
(263)
1,241
7,752
18,791
4,996
2,682
685
840
1,014
333
5,651
34,992
35,068
6,560
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
$28,690
$28,508
$23,070
$ 1.75
$ 1.74
$ 1.75
$ 1.74
$ 1.42
$ 1.41
(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.
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R E P O R T O F I N D E P E N D E N T R E G I S T E R E D P U B L I C A C C O U N T I N G F I R M
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, 2019 and 2018, 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, 2019; and in our report, dated February 26, 2020, 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 | February 26, 2020
N O N - G A A P F I N A N C I A L M E A S U R E S
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.
As of and for the years ended December 31, 2019, 2018, and 2017
(dollars in thousands, except per share data)
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
Adjustment for realized investment securities (gains) losses, net
Adjustment for losses on disposal of premises and equipment, net
Adjustment for gain on sale of premises
Adjusted income
Noninterest expense
Adjustment for write-down of premises
Adjusted expense
Efficiency ratio on an adjusted FTE basis (non-GAAP) (2)
2019
2018
2017
$ 66,430
$ 62,058
$ 60,057
834
$ 67,264
$ 2,277,461
2.95%
1,528
$ 63,586
$ 2,075,372
3.06%
2,677
$ 62,734
$ 1,863,791
3.37%
$ 67,264
$ 63,586
$ 62,734
8,318
87
-
(307)
$ 75,362
$ 38,406
-
$ 38,406
50.96%
7,752
263
109
-
$ 71,710
$ 34,992
(333)
$ 34,659
48.33%
8,648
(326)
25
-
$ 71,081
$ 32,267
-
$ 32,267
45.39%
(1) Computed on a tax-equivalent basis using a federal income tax rate of 21 percent in 2019 and 2018, and 35 percent in 2017, adjusted to reflect the effect of
nondeductible interest expense associated with owning tax-exempt securities and loans. 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 arising from taxable
and nontaxable sources.
(2) The 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 performance. It is a standard measure of comparison within the banking industry.
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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 9 A N N U A L R E P O R T
F O R M 1 0 - 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.
S T O C K I N F O R M A T I O N
West Bancorporation’s common stock is traded on the Nasdaq Global Select Market, and quotations are furnished by the Nasdaq System.
We had 170 common stockholders of record on December 31, 2019, and an estimated 3,000 additional beneficial holders whose stock was held in
street name by brokerages or fiduciaries.
Market and dividend information (1)
High
Low
Close
Dividends
2019
4th Quarter
3rd Quarter
2nd Quarter
1st Quarter
Total
2018
4th Quarter
3rd Quarter
2nd Quarter
1st Quarter
Total
$ 25.93
$ 21.01
$ 25.63
22.47
22.32
23.74
19.63
20.14
19.02
21.74
21.22
20.68
$ 23.88
$ 18.06
$ 19.09
26.51
26.95
26.85
23.10
22.65
23.65
23.50
25.15
25.60
$ 0.21
0.21
0.21
0.20
$0.83
$ 0.20
0.20
0.20
0.18
$ 0.78
(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.
T R A N S F E R A G E N T A N D R E G I S T R A R
American Stock Transfer & Trust Company, LLC
6201 15th Avenue, Brooklyn, New York 11219
800-937-5449 | www.amstock.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 9 A N N U A L R E P O R T
1 9
F O R W A R D - L O O K I N G S T A T E M E N T S
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, accounting standards 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; the monetary, trade and other regulatory policies of the U.S. government; acts of war or terrorism or other adverse external
events and any other risks described in the “Risk Factors” sections of 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.
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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 9 A N N U A L R E P O R T
2019 Annual Report
© 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
Locations
IOWA
MINNESOTA
Main Bank
1601 22nd St.
West Des Moines
Coralville
401 10th Ave.
Coralville
Mankato
122 North Broad St.
Mankato
Owatonna
345 Florence Ave., Suite 101
Owatonna
East
2440 East Euclid Ave.
Des Moines
Rochester
2188 Superior Dr. NW
Rochester
St. Cloud
622 Roosevelt Rd., Suite 150
St. Cloud
Grand
125 Grand Ave.
West Des Moines
South
3920 SW 9th St.
Des Moines
Waukee
955 East Hickman Rd.
Waukee
Drive-Up Express
City Center
809 6th Ave.
Des Moines
North
3839 Merle Hay Rd.
Des Moines
Urbandale
3255 99th St.
Urbandale
ONLINE
westbankstrong.com
@westbankstrong
2019 Annual Report
© 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