Celebrating
West Bank Legends
2 0 2 1 A N N U A L R E P O R T
2021 FINANCIAL PERFORMANCE
Return on Average Equity
Return on Average Assets
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
1.60%
1.40%
1.20%
1.00%
0.80%
0.60%
0.40%
0.20%
0.00%
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
Net Income
Earnings Per Share
Dividends Per Share
THOUSANDS
$ 52,000
48,000
44,000
40,000
36,000
32,000
28,000
24,000
20,000
16,000
$ 3.50
3.00
2.50
2.00
1.50
1.00
0.50
$ 1.00
0.90
0.80
0.70
0.60
0.50
0.40
0.30
0.20
0.10
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
Total Loans
Total Deposits
THOUSANDS
$ 2,600,000
2,400,000
2,200,000
2,000,000
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
THOUSANDS
$ 3,200,000
3,000,000
2,800,000
2,600,000
2,400,000
2,200,000
2,000,000
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
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 2 1 A N N U A L R E P O R T
Dear Stockholders:
As I find myself reflecting upon this incredible and very unique year, I’m left to
consider - How does a business generate a fifty percent increase in earnings following
a record year and do so during a pandemic? The answer is simple, but not easy. It is
having the right players on our team. It is clarity of vision and strategy. It is our rich
history of community engagement and support. It is the consistency of what every
West Banker does every day on purpose.
We believe that the key to our success is to have the best team, decide what is most important, and then do our best
every day while we are having fun doing it. Although we do not set goals about being a certain size by a certain time,
we have essentially tripled the size of your Bank during the past 10 years.
128 years ago, our founders started the bank in a small, red brick building on a dirt road. Since that time, West Bank has
endured two World Wars, the Great Depression, many financial crises and now a worldwide pandemic. Those who came
before us successfully overcame their own set of significant challenges and so are we.
We are proud to honor three West Bank legends who retired in 2021. Their decades of service to West Bank has
been instrumental to our success and we are grateful for their influence and inspiration to many more West Bank
legends in the making.
The future of our Company is bright. We currently have four new bank building projects in various stages of planning
and development. These buildings represent our commitment to our customers, employees and communities as we
continue our pursuit of excellence for decades to come. Our strong financial foundation and incredible team of dedicated
West Bankers positions us well to face future challenges and to capitalize on opportunities.
We appreciate and sincerely thank you for your continued support and interest in our Company.
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 2 1 A N N U A L R E P O R T
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OUR VISION
Our vision is to achieve and sustain a position of industry envy and admiration.
OUR MISSION
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.
Richard Mockobee, Teller, Main Bank
2
2021 ACHIEVEMENTS
As a team and corporation, West Bank celebrated many great accomplishments and milestones throughout 2021.
One of 2021 Best Banks
in America
• West Bank was named a “Sm-All Star” by
Piper Sandler, investment bank and research firm.
• The selection was made from a field of 386
publicly traded banks and thrifts with criteria
including growth, profitability, credit quality
and capital strength.
• Out of 35 winners representing 10 percent of
the eligible pool across the country, West Bank
was the only Iowa bank to win and one of only
a few from the Midwest.
All-Time Record Earnings
Each quarter of 2021 reported record earnings
well above 2020 quarterly earnings.
Net income for 2021 was $49.6 million, or
$2.95 per diluted common share compared
to $32.7 million or $1.98 per diluted common
share in 2020.
We also experienced incredible loan growth
of 16 percent (excluding PPP loans) and
are proud of remarkable credit quality for
the banking industry.
West Bank Chairman & CEO Named to
American Bankers Association Board of Directors
• The American Bankers Association (ABA) is the
• After serving on the Iowa Bankers Association
banking industry’s National Trade Association
representing banks of all sizes across America.
• David Nelson was one of six bankers nationally to
join the ABA board for a three-year term.
Board of Directors for several years, David Nelson
began serving as an ABA board director in
October 2021.
3
3
Celebrating Legendary
Team Members
At the core of our mission, you will find the heart of West Bank: our people. Building strong
relationships, communities and reputations simply cannot happen without a great team.
Providing exceptional care and reliable support can only be genuine coming from generous
and devoted individuals. We are both proud and humbled that in 2021, we celebrated three
West Bank legends who collectively dedicated more than 100 years to helping West Bank
fulfill its mission.
4
Over the course of almost 50 years with West Bank, Alice Jensen
has become a well-known face to customers, employees and
partners. When she was first hired in 1973 by former Executive
Vice President Joyce Chapman, now retired, West Bank had only
two locations in existence—Grand Avenue and the headquarters
on 22nd Street—both in West Des Moines.
“We had no computers - just typewriters, adding machines,
pens and papers,” Alice remembers. For payroll, Alice says
“Employees used timecards. Withholding taxes were
calculated manually for each employee, cash was ordered in
dollar amounts and included in each employee’s envelope—
down to the last penny. Envelopes were hand-delivered to
each employee with a signature required.”
Over the years, Alice worked in several departments throughout
the bank, including loan processing, consumer lending, auditing,
new accounts, trust, and payroll. Ultimately, Alice was named
Vice President and Corporate Secretary in 2000 and retired from
that position in 2021.
Alice continues to stay busy in retirement, volunteering and
enjoying a new bicycle, which she admits makes her family a
little nervous. “After the first two trips and two tumbles, I feel
I have a handle on it,” she laughs.
Alice’s retirement is well deserved, and she looks forward to
spending more time with her family; however, it’s bittersweet as
she leaves another family behind.
“West Bank has always been my second family. I’ve been
proud to tell people where I work and what an honor it’s been
to be an employee in a company that strives for each other’s
success. I will always treasure the years of working with so many
extraordinary people. I could not have wished for more from
colleagues who’ve become my good friends.”
Alice Jensen
VICE PRESIDENT &
CORPORATE SECRETARY
48 YEARS
5
5
Rod Weikert shares a quote he’s often heard from David Nelson,
Chairman and CEO of West Bank, as he reflects on his 40 years with
the company: “It’s fun to be part of something special.”
After four decades as a commercial banker, Rod credits his
longevity with West Bank in large part to the diversity of the people
and experiences that allowed him to cultivate a fulfilling career.
“The fun part of working at a bank is you get to work with a lot
of different people, customers and all their different businesses,”
Rod explains. “West Bank allowed me to evolve over time, find
a place within the institution, and figure out how to contribute.”
He also notes that the bank’s adaptability, strong culture and quality
management contributed to his, and the entire team’s, success.
“It’s essential for companies to have strong culture. At West Bank,
we work together instead of against each other.”
Rod admits that as commercial banker, he’d often get credit for
providing great customer service, but he believes the real credit
goes to the people working behind the scenes to produce a good
product. “It’s part of how we can grow relationships,” he says.
“It wasn’t uncommon for me to get a call from a customer who
needed an answer I didn’t immediately have. But I knew I could
make a phone call to a co-worker and get that answer.”
Rod Weikert
SENIOR VICE PRESIDENT,
COMMERCIAL BANKER
40 YEARS
Also celebrating milestone anniversaries in 2021:
25 YEARS
20 YEARS
Sue Reinders
1st Vice President
Assistant Branch Manager
Bobbi Jo Kemble
Vice President
Digital Banking Manager
Kevin Smith
Senior Vice President
Commercial Banker
Sue Bryant
2nd Vice President
Finance
Jason Nelson
Vice President
Security Officer
6
Before joining West Bank in 2001, Doug Gulling's professional
experience at other community banks planted a curiosity in him
about the source of West Bank's continual success.
“When we compared performance, we always wondered
how West Bank performed so much better than everyone else,”
he says. When he was hired at West Bank, he found his answers.
“It’s our business model and our people. When you have people
working for decades, they have to know what they’re doing and
do it well,” he says.
Doug fit right in. After another 20 years with West Bank,
he retired as CFO in 2021. Though he says he feels like a
lightweight compared to Alice and Rod, Doug dedicated two
decades to building a strong financial management team.
It’s this type of team he says has paved the way for 128 years
of West Bank’s success.
“Dave Nelson often reminds us, the team with the best
players should win unless they have a bad coach,” Doug says.
“West Bank has the best players, we have a great coach,
and we plan to keep on winning.”
Doug is happy to retire while he can still travel with
his wife, Judy, and focus on the “three G’s—golf, gardening
and goofing off.”
Doug Gulling
EXECUTIVE VICE PRESIDENT &
CHIEF FINANCIAL OFFICER
20 YEARS
We’re so thankful for these three legendary West Bank team members, just as we’re grateful
for all those who retired from long careers with us before them and the many more who will
follow in their footsteps in the years to come. We continue to be proud that establishing long,
successful careers at West Bank is not the exception—it’s the norm.
7
Upholding
Legendary Service
Ensuring that our clients continue to receive exceptional care will always be a priority.
That means it’s essential to consistently analyze and find ways to improve systems,
services and technology. While 2020 proved that we could be nimble and responsive
in the face of unexpected challenges, the need for continual innovation to exceed our
customer’s expectations carried on into 2021.
8
Supportive Technology
Integrating technology to improve our services is important, but we ensure it is never
at the expense of a personalized experience. Over the course of 2021, we focused on
combining high-tech with high-touch personal services.
• New Drive-Up Video Tellers, which feature access to live support from West Bank
tellers, were installed at our Waukee, South and East locations.
• For enhanced debit card security, West Bank debit cardholders were enrolled in
debit card text fraud alerts. Text notifications of potential fraudulent transactions
are sent to cardholders who are able to immediately respond back whether
transactions are valid or not.
• West Bank’s ACH Fraud Detection System was updated, providing customers
with improved fraud detection support.
• We now offer “Soft Tokens”, a secure one-time password generated by a mobile
app for use each time customers log into eCorp Online Banking, eCorp Mobile, or
complete a transaction such as a wire or ACH.
Customer Support
We know that a big part of great customer service is listening and responding. That’s
why we take the time to proactively survey our customers to identify opportunities for
providing even better support. In June 2021, we distributed surveys to almost 10,000
customers for feedback on their West Bank experiences. Responses were instrumental
for guiding our service plans and upgrades for 2022 and beyond. As a result of the survey,
we are focusing on consistent communications for new and beneficial services while
streamlining account opening processes.
Paycheck Protection Program
While the bulk of the PPP loans were processed in 2020, totaling 925, the financial strain
caused by the COVID-19 pandemic continued the need for PPP support throughout 2021.
Over the course of the last two years, West Bank processed nearly 1,500 PPP loans.
We’ve provided community businesses with more than $300 million in PPP assistance,
nearly $273 million of those loans already forgiven.
Sarah Mitchell,
Customer Service Representative
Jeff DeVore,
Branch Manager
Gabe Olson,
Commercial Banker
9
Continuing
Legendary Support
As a community bank, we know we are only as strong as the communities we serve.
That’s why we place immense value on giving back.
Portfolio Manager Michele Sursely and
Rochester Market President Mike Zinser present grant
to Channel One Regional Food Bank
West Bankers Yunien Ramos, Nezira Mujkanovic
and Leslie Ramos lead the
West Des Moines Independence Day parade
Portfolio ManagerKelly Schaer and
Commercial Banker Minda Hamann deliver
CPR training kits to Liberty High School
In 2021, West Bancorporation Foundation and West Bank provided:
$1,049,000
in total philanthropic contributions
76
Grants awarded in 2021
$49,500
in grants to 8 local food pantries
Good Neighbors:
West Bank made a $350,000 contribution to the Historic West
Des Moines Pilot Housing Program. This program will assist
property owners within the Historic West Des Moines area, also
known as Valley Junction where West Bank was founded in 1893,
with residential property improvement projects.
Organizations awarded focus on
West Des Moines Chamber - Best of the West “Best Bank”
Human Services, Arts and Culture, and Education
and “Best Company That Gives Back to the Community” awards
Community Awards:
“We are proud to support such amazing organizations that are continually bettering our community.”
West Bank and Executive Director of the West Bancorporation Foundation
- Jill Hansen, Senior Vice President,
Treasury Management Administrator
Zana Serdarevic volunteering with Rebuilding Together
Tyler Miller, South Branch Manager,
presents grant to Food Bank of Iowa
Nezira Mujkanovic, Retail Banking Specialist,
volunteers at West Bank’s free Shred Day.
9
Building the Foundation
for Future Legends
Over the course of 128 years, West Bank has grown from one small Valley Junction office
in West Des Moines to 11 locations throughout Iowa and Minnesota. This expansion results
from a proven framework for success that includes hiring great people, incorporating
community board members who work and live in the areas we serve, and waiting to
purchase or build permanent locations until financially plausible. We’re proud to say that
we have four more buildings planned in the next few years that we’re confident will be
home to many West Bank legends to come.
1 2
Sartell, Minnesota
Located near St. Cloud, Sartell will soon
feature a new 15,000 square-foot West Bank
building to open in 2022. The state-of-the-art
building will reflect the architecture of the
building in Rochester, which opened in 2016.
The new Sartell building will be a point of pride
for the area with a modern structure, natural
stone, many windows for natural light and a
rooftop space for entertaining.
In addition to business banking, the new
building will offer full-service consumer
banking and trust services for business
customers and the community.
Mankato and Owatonna, Minnesota
West Bank also has plans to construct new bank buildings in Mankato and Owatonna in the next few years.
After leasing space in both locations since 2019, we look forward to establishing permanent roots to provide
many more years of exceptional community banking.
1 3
New West Bank Headquarters
After 50 years of being headquartered on 22nd Street in West Des Moines, West Bank announced in late 2021 plans to
build a new site to call home.
“As the oldest business of any type to be founded in West Des Moines, we believe it’s very important to remain
headquartered here,” says David Nelson, West Bank Chairman and CEO.
The new office building will be located merely one mile west of the current headquarters but offers more visibility from
Interstate 235. The addition of the modern facility, and the business it will bring to the area, will help to revitalize the
neighborhood, where smaller businesses have recently struggled.
“To further demonstrate our support for West Des Moines, we selected a site that is not only highly visible, but also in
need of reinvestment and redevelopment,” Nelson adds. “Redevelopment is both more difficult and more expensive, but
as community leaders, we think it’s important to support the community that has supported us for so long.”
The four-story, 62,000 square-foot building will be built on about 7.5 acres on Westown Parkway. The building will also
reflect new buildings planned for Minnesota with natural stone and glass, though it will be much larger to accommodate
nearly 100 employees and leaders headquartered there. It will also provide a rooftop terrace and other areas perfect for
hosting West Bank events, including a lower-level walk-out patio with a view of a new water feature. Construction will
begin in 2022 and is scheduled to be complete in 2024.
1 4
West Bancorporation
Leadership
1 5
A Legend Lost
Sadly, 2021 also marked the year we lost one of West Bank’s most
well-known legends, former Chairman and CEO David Miller. For
more than 40 years, Dave dedicated his talent and sharp business
acumen to the growth of West Bank and its team. He passed
peacefully on November 21 at the age of 89.
Dave was born and raised in Davenport, Iowa, graduating high
school in 1950 from St. Ambrose Academy. In 1954, he earned his
Business Administration degree from University of Iowa and
started his banking career at Davenport Bank and Trust. In 1961,
he joined West Bank, then known as West Des Moines State Bank,
as Vice President and rose quickly to become bank President in
1968 and ultimately Chairman of the Board and President in 1978.
He retired as Chairman and CEO in 2001.
David Miller, 1932-2021
An inspiring visionary and strong community advocate, Dave helped mold the culture of perpetual growth at West Bank,
always with a focus on local support and personalized service. His approach is best illustrated with a passage from his
shareholders letter published in the 1985 West Bank Annual Report, in which he said,
“…we have no intention of becoming a financial supermarket in an attempt to be all things to all people. We will continue
to provide the greater Des Moines metro area with the highest quality of personalized service consistent with sound
banking practice and to provide an institution that is customer responsive and community oriented.”
After reporting record earnings, Dave concluded his letter giving credit to his team, a sentiment that has carried on long
since he retired:
“We all need to express our appreciation to the staff of West Bank, who,
by their abilities and attitude in the performance of their various responsibilities,
are the ones who make it all happen.”
David Miller is survived by his wife of 68 years, Joan Miller, 5 adult children, 12 grandchildren, 4 step-grandchildren,
13 great-grandchildren and numerous cherished nephews and nieces.
1 6
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
Jane Funk**
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
Brad Peters**
EVP,
West Bancorporation;
EVP and Minnesota
Group President of
West Bank
Douglas Gulling*
Bank Building
Construction Administrator,
West Bank
Patrick Donovan*
Retired
Lisa Elming*
Retired
Steven Gaer*
R & R Realty Group;
Retired Mayor,
West Des Moines
Mike Gerdin*
Heartland Express, Inc.
Sean McMurray*
Businessolver, Inc.
George Milligan*
The Graham Group, Inc.
Steven Schuler*
Retired
Therese Vaughan*
University of Iowa
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 2 1 A N N U A L R E P O R T
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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
Rhonda Burkhardt
The Underground
Company, LTD
Jerry Deegan
Retired
Darin Ferguson
Ferguson Commercial
Real Estate Services
Ryan Flynn, CPA
Flynn + Sweeney, LLC
Kevin Grimm
Wexford & James, LLC
Greg LaMair
Assured Partners LLC
Dave Moench
Realm Companies
Austin Palmer
The Palmer Group
Steve Schweizer
Denman & Company
Victoria Veiock
Bing's
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
Ravi Patel
Hawkeye Hotels
Luke Recker
Styker Instruments
Chuck Skaugstad
The Mansion
Town Square Developers
Leighton Smith
BerganKDV
Jerry Waddilove
Real Estate Developer
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 2 1 A N N U A L R E P O R T
M A N K A T O C O M M U N I T Y B O A R D
Bryan Bode
Investor/Developer/
Farmer
Mark Draper
River City Electric
Company
Dr. Wynn Kearney
Retired Surgeon/Investor
Steve Kibble
Siesta Hills
Bruce Kinsella
Philanthropic Consulting
Tim Lidstrom
Lidstrom Commercial
Realtors
David Pfeffer
Vintage Fine Homes, Inc.
Mark Phinney
C&N Sales Company
First Choice Security
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
Dale Buytaert
CliftonLarsonAllen LLP
Chad Hanson
Main Street
Dental Clinics
Theresa James
James Brothers
Construction
Wayne James
James Brothers
Construction
Scott Mohs
Mohs Contracting
Mohs Homes
Mike Noble
Investor/Retired
Pat Noble
National Online
Consignment and Rental
Darren Roemhildt
Bridges Chiropractic
Brandon Wayne
Wayne–Norrid–Wetmore
Wealth Management
All six 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 2 1 A N N U A L R E P O R T
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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
Jeff Brown
Jeff Brown Real Estate
Michael Busch
Paramark Corp.
Patrick Deutsch
Pace International
Bobbie Gostout, M.D.
Vice President Emeritus,
Mayo Clinic
Hal Henderson
HGA
Charlie Kuehn
Kuehn Motors
Dick Kuehn
Kuehn Motors
David Pederson
Dunlap & Seeger, P.A.
Peter Schuller
A.B. Systems, Inc.
Ed Stanley
Merit Building
Enclosure Systems
Tim Weir
Olmsted Medical Center
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 Companies
Byron Bjorklund
Short Stop Restaurants
Jeff Drown
Lyon Contracting
Steve Feneis
Granite City Real Estate
Jason Ferche
Ferche Companies
Marc Sanderson
Wilkie Sanderson
Dr. Kevin Smith
Regional Diagnostic
Radiology
Eric Stack
Millerbernd
Manufacturing
Tim Torborg
Torborg Builders
Heidi Weikert
S.T. Cotter
Turbine Services
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 2 1 A N N U A L R E P O R T
West Bancorporation
Financials
2 1
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, 2021, 2020, and 2019
(dollars in thousands, except per share data)
2021
2020
2019
$ 95,059
$ 82,833
$ 66,430
(1,500)
9,729
43,380
62,908
49,607
12,000
9,602
39,054
41,381
32,712
600
8,318
38,406
35,742
28,690
$ 0.94
$ 0.84
$ 0.83
3.00
2.95
31.07
15.73
$3,500,201
768,787
2,456,196
8,948
-
3,016,005
260,328
1.52%
20.33%
3.10%
40.91%
31.33%
3.03%
3.05%
1.15%
0.02%
0.36%
7.44%
1.99
1.98
19.30
13.58
1.75
1.74
25.63
12.93
$3,185,744
$ 2,473,691
432,294
2,280,575
16,194
-
2,700,994
223,695
1.19%
15.49%
6.40%
41.96%
42.23%
4.35%
3.20%
1.29%
0.01%
0.71%
7.02%
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) 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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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 2 1 A N N U A L R E P O R T
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
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, 2021 and 2020
Common stock, no par value; authorized 50,000,000 shares; 16,554,846
and 16,469,272 shares issued and outstanding at December 31, 2021
and 2020, respectively
Additional paid-in capital
Retained earnings
Accumulated other comprehensive loss
Total stockholders’ equity
Total liabilities and stockholders’ equity
December 31, 2021 and 2020
(dollars in thousands, except per share data)
2021
2020
$ 17,555
$ 77,693
175,270
192,825
758,822
9,965
2,456,196
(28,364)
2,427,832
34,568
8,890
43,609
10,819
12,871
318,742
396,435
420,571
11,723
2,280,575
(29,436)
2,251,139
29,077
11,231
42,686
11,289
11,593
$ 3,500,201
$ 3,185,744
$ 720,136
$ 696,731
548,242
1,550,636
53,019
143,972
3,016,005
2,880
20,465
125,000
51,521
24,002
553,881
1,274,254
46,907
129,221
2,700,994
5,375
20,452
175,000
21,558
38,670
3,239,873
2,962,049
-
-
3,000
30,183
237,782
(10,637)
260,328
3,000
28,823
203,718
(11,846)
223,695
$ 3,500,201
$ 3,185,744
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 2 1 A N N U A L R E P O R T
2 3
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
Loan swap fees
Realized securities gains (losses), 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
Net income
Earnings per common share:
Basic earnings per common share
Diluted earnings per common share
Years ended December 31, 2021, 2020, and 2019
(dollars in thousands, except per share data)
2021
2020
2019
$ 95,585
$ 90,668
$ 85,512
8,542
2,861
292
7,818
1,443
304
107,280
100,233
10,031
2,022
1,110
98,675
7,948
5
1,008
2,944
316
12,221
95,059
(1,500)
96,559
2,352
1,948
2,671
923
66
51
1,718
9,729
23,226
5,162
2,465
1,818
946
765
8,998
43,380
62,908
13,301
11,256
25,214
23
1,016
4,705
400
17,400
82,833
12,000
70,833
2,360
1,632
2,078
593
1,572
77
1,290
9,602
21,591
4,879
2,331
1,210
927
868
7,248
39,054
41,381
8,669
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
4,895
2,566
404
814
993
6,944
38,406
35,742
7,052
$ 49,607
$ 32,712
$ 28,690
$ 3.00
$ 2.95
$ 1.99
$ 1.98
$ 1.75
$ 1.74
2 4
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 2 1 A N N U A L R E P O R T
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, 2021 and 2020, 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, 2021; and in our report, dated February 23, 2022, 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 23, 2022
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, 2021, 2020, and 2019
(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:
2021
2020
2019
$ 95,059
$ 82,833
$ 66,430
1,202
$ 96,261
$ 3,152,138
3.05%
707
834
$ 83,540
$ 67,264
$ 2,614,342
$ 2,277,461
3.20%
2.95%
Net interest income on an FTE basis (non-GAAP)
$ 96,261
$ 83,540
$ 67,264
Noninterest income
Adjustment for realized 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
Efficiency ratio on an adjusted FTE basis (non-GAAP) (2)
9,729
(51)
84
-
9,602
(77)
9
-
8,318
87
-
(307)
$ 106,023
$ 43,380
40.91%
$ 93,074
$ 75,362
$ 39,054
$ 38,406
41.96%
50.96%
(1) Computed on a tax-equivalent basis using a federal income tax rate of 21 percent, adjusted to reflect the effect of the 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.
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 2 1 A N N U A L R E P O R T
2 5
F O R M 1 0 - K
A copy of the Company’s annual report on Form 10-K filed with the Securities and Exchange Commission 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 Melissa Gillespie, mgillespie@westbankstrong.com, 515-222-2370.
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 160 common stockholders of record on December 31, 2021, and an estimated 3,600 additional beneficial holders whose stock was held in
street name by brokerages or fiduciaries.
Market and dividend information (1)
High
Low
Close
Dividends
2021
4th Quarter
3rd Quarter
2nd Quarter
1st Quarter
Total
2020
4th Quarter
3rd Quarter
2nd Quarter
1st Quarter
Total
$ 34.50
$ 29.30
$ 31.07
31.98
29.90
26.78
26.26
23.92
18.86
30.03
27.75
24.09
$ 21.79
$ 15.53
$ 19.30
17.99
20.67
25.68
15.50
14.50
13.74
15.84
17.49
16.35
$ 0.24
0.24
0.24
0.22
$0.94
$ 0.21
0.21
0.21
0.21
$0.84
(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
2 6
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 2 1 A N N U A L R E P O R T
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,” “confident,” “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: the effects of the COVID-19 pandemic, including its effects on the economic environment, our customers and our
operations, including due to supply chain disruptions, as well as any changes to federal, state or local government laws, regulations or
orders in connection with the pandemic; interest rate risk, including anticipated rate increases; competitive pressures, including from
non-bank competitors such as “fintech” companies; 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 (including as a result of the future implementation of the current
expected credit loss (CECL) accounting standard) or regulatory requirements; changes in local, national and international economic
conditions, including rising rates of inflation; 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, including anticipated rate increases; acts of war or
terrorism, widespread disease or pandemics, such as the COVID-19 pandemic, or other adverse external events; developments and
uncertainty related to the future use and availability of some reference rates, such as the London Interbank Offered Rate, as well as other
alternative reference rates; changes to U.S. tax laws, regulations and guidance; liquidity risk due to excess liquidity at the Company’s bank
subsidiary; talent and labor shortages and high rates of employee turnover; 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.
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 2 1 A N N U A L R E P O R T
2 7
The first West Bank Legends,
Founders Anna and Herman Raaz
As we celebrate so many West Bank Legends in this report,
we'd be remiss not to acknowledge the two visionary legends
who started it all. We're thankful for their entrepreneurial spirit,
passion for helping the community that also supported them,
and their belief in the strength of a dedicated team.
2 0 2 1 A N N U A L R E P O R T
© West Bancorporation, Inc. and Subsidiary
2 0 2 1 A N N U A L R E P O R T
Locations
IOWA
Main Bank
1601 22nd St.
West Des Moines
Coralville
401 10th Ave.
Coralville
South
3920 SW 9th St.
Des Moines
Waukee
955 East Hickman Rd.
Waukee
East
2440 East Euclid Ave.
Des Moines
City Center
809 6th Ave.
Des Moines
Grand
125 Grand Ave.
West Des Moines
MINNESOTA
Mankato
122 North Broad St.
Mankato
Owatonna
345 Florence Ave., Suite 101
Owatonna
Rochester
2188 Superior Dr. NW
Rochester
St. Cloud
622 Roosevelt Rd., Suite 150
St. Cloud
ONLINE
westbankstrong.com
@westbankstrong
© West Bancorporation, Inc. and Subsidiary