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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 I E S • 2 0 2 2 A N N U A L R E P O R T
2022 FINANCIAL PERFORMANCE$ 2,800,0001,800,0001,600,0001,400,0001,200,0001,000,00020182019202020212022THOUSANDS2,000,0002,200,0002,400,0002,600,000Total Loans$ 52,00044,00036,00032,00028,00024,00020,00016,00020182019202020212022THOUSANDS48,00040,000Net Income25.00%20.00%15.00%10.00%5.00%0.00%20182019202020212022Return on Average Equity1.60%1.20%1.00%0.80%0.60%0.40%0.20%0.00%201820192020202120221.40%Return on Average Assets$ 3.502.001.501.000.50201820192020202120222.503.00Earnings Per Share$ 3,200,0001,800,0001,600,0001,400,0001,200,0001,000,00020182019202020212022THOUSANDS2,400,0002,600,000 2,200,000 2,000,000 2,800,000 3,000,000Total Deposits$ 1.201.000.800.600.400.2020182019202020212022Dividends Per Share Dear Stockholders:
Our company has had another strong year, our second best on record. We believe that
the key to our continuing success is not about being a certain size by a certain time. It is
instead about having the best team, clarity around what is most important, and being
purposeful about doing our best every day while having fun doing it. We do not set
specific growth goals. Our focus is on having the right players on our team, providing
a clear vision and strategy, supporting and engaging our communities, and consistency
of what every West Banker does every day on purpose.
In 2022, we completed construction of our new bank building in St. Cloud, Minnesota, and began construction of our
new corporate headquarters in West Des Moines, Iowa, and our new bank building in Mankato, Minnesota. These
buildings represent our commitment to our customers, employees and communities as we build on our successes and
invest in our future.
Our credit quality remains pristine, and we continue to see opportunities for high-quality loan growth, although at a slower
pace than in recent years. We remain diligent in monitoring and managing our credit quality as we expect economic
challenges due to the Federal Reserve’s efforts to reduce inflation through aggressive interest rate increases. Our bankers
are working hard every day to help our customers and communities navigate the uncertainties of the current economic
and unprecedented interest rate environment.
The pace of interest rate increases this year has put pressure on our net interest margin, as the increasing yield on the loan
portfolio is being offset by the increase in deposit and funding costs. Changes in liquidity and competitive deposit pricing,
resulting from volatility and uncertainty in the interest rate environment, has put upward pressure on our cost of funds.
Despite these challenges, our capital position remains strong. We will continue to use our successful relationship-based
business model to grow stockholder value. Our strong financial foundation and incredible team of dedicated West Bankers
positions us well to face today’s challenges and to capitalize on opportunities.
We appreciate and thank you for your continued support and interest in our Company.
Sincerely,
David D. Nelson
CEO and President, West Bancorporation, Inc.
Chair 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 I E S • 2 0 2 2 A N N U A L R E P O R T
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BUILDING UPON A HISTORY OF
OUR VISION
To achieve and sustain a position of industry envy and admiration.
OUR MISSION
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.
West Bank Board of Directors
Back left to right:
Sean McMurray, James Noyce, Bradley Peters, Brad Winterbottom, David Nelson, Harlee Olafson, Jane Funk,
Michael Gerdin, Patrick Donovan, Philip Jason Worth
Front left to right:
Steven Gaer, Lisa Elming, Steven Schuler, Rosemary Parson, Therese Vaughan, Douglas Gulling, George Milligan
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We are proud of the national recognition we continually receive for our financial performance.
Ranked No. 12 for 2021 among the top 23 performing
community banks by Raymond James. West Bank has
been selected eight out of the last nine years among
a field of 229 publicly traded community banks with
assets between $500 million and $10 billion.
Ranked No. 13 on the S&P Global's list of America's
top 50 performing banks with assets between $3 and
$10 billion for 2021. West Bank was the only Iowa
bank to make the list and one of the very few from the
Midwest to be recognized. Metrics used to rank banks
included return on tangible common equity, efficiency
ratio and operating revenue growth.
Recognized as one of the nation's top 200 banks
with assets between $2 and $10 billion by American
Banker based on three-year average return on equity
as of December 31, 2021. West Bank ranked 39th
overall and No. 1 of the 8 Iowa and Minnesota banks
on American Banker’s list.
Despite increasing pressure on net interest
margin in the second half of 2022, West Bank
is heading into a time of forecasted economic
uncertainty from a position of strength:
• Net income in 2022 was $46.4 million,
the second highest year in our history.
•
In 2022, loans increased by $286.6 million
to $2.7 billion, while credit quality remains
outstanding. As of December 31, 2022, our
nonperforming loans as a percentage of
total loans was 0.01% and there were no
loans greater than 30-days past due.
• Return on average equity remains
strong at 20.71%.
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BUILDING
Since greeting our first customers more than 129 years
ago in the heart of West Des Moines’ Valley Junction,
West Bank has continued to steadily build a business of
stability and strength one employee and one building at
a time. Over the years, we have expanded from a single
storefront community bank to 11 locations throughout Iowa
and Minnesota — and the future continues to look bright.
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Ground-Breaking Revitalization
On June 22, 2022, a crowd of city and industry officials,
West Bankers and our construction teams gathered
to celebrate the groundbreaking of the new West Bank
headquarters. Construction of the 72,000-square-foot
building began and is scheduled to be completed in 2024.
The new headquarters, located at 3330 Westown Parkway
in West Des Moines, is just one mile from the 22nd Street
headquarters of the past 50 years. Clearly visible and
offering easy access from the bustling thoroughfare of
Interstate 235, our new location was strategically chosen
to support the revitalization of the Valley West Mall
area that has experienced an economic decline over
the past decade.
“As the oldest business of any type to be founded in
West Des Moines, we believe it’s very important to remain
headquartered here,” said David Nelson, West Bank
Chair and CEO. “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.
As community leaders, we think it’s important to support
the community that has supported us for so long.”
Topping Off with Spirit
After Iowa weather caused the first cancelation, a
rescheduled celebration took place on November 21, 2022,
to mark a milestone in the headquarters' construction.
Following a tradition dated back to 700 A.D., West Bank
held a “Topping Off” ceremony to thank the construction
crew for their hard work and dedication to the progression
of the building’s foundational structure. The final beam,
placed horizontally at the top of the building structure,
was adorned by an Ironworkers traditional evergreen tree
and an American flag, symbolizing the safe completion of
a significant task. A West Bank flag was also placed on the
beam, along with a banner including the signatures of
West Bank employees and board members.
The Future View
The new, four-story West Bank headquarters is being built
upon 7.5 acres of land and will feature a wraparound rooftop
terrace along with other areas for hosting bank events.
A lower-level walk-out patio will provide visitors and
employees with a view of a beautiful water feature.
The expansion of available office space will comfortably
support current employees, numbering almost 100, while
also providing room for growth well into the future.
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St. Cloud Opens New Office
On March 21, 2022, West Bank opened
a newly constructed, state-of-the-art
St. Cloud Team (Left to right)
Curt Gainsforth, Vice President/Business Banking Officer
Matt Laubach, St Cloud Market President
Jessica Riley, Principal Banker
Lisa Koster, 1st Vice President/Portfolio Manager
Elizabeth Statsick, 1st Vice President/Senior Credit Analyst
Melissa Muehlbauer, 2nd Vice President/Principal Banker
Todd Mather, Senior Vice President/Chief Credit Officer
Aaron Meester, Vice President/Business Banking Officer
building in St. Cloud, Minnesota.
Following Rochester, St. Cloud is the
second permanent West Bank location
in Minnesota. The 15,000-square-foot,
two-story building includes an interior
lounge area and a rooftop terrace
for entertaining.
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Mankato Prepares to Open in 2023
Mankato Groundbreaking (Left to right)
Following closely on the heels of St. Cloud,
West Bank is planning for the completion
of construction and the opening of a new
permanent location in Mankato, Minnesota.
West Bank has provided community
banking services in Mankato since 2019
and looks forward to expanding into a new
15,000-square-foot building in 2023.
Peter Schuller, Chairman, A.B. Systems, Inc.
Ruth Schammel, 1st Vice President/Portfolio Manager
Bradley Peters, Executive Vice President/Minnesota Group President
Jeff Osborne, Senior Vice President/Commercial Banker
Erik Hagedorn, Vice President/Business Banking Officer
Julie Sabin, Principal Banker
Tom Lentz, Mankato Market President
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BUILDING THE FUTURE Our team of West Bankers
is always at the heart of
everything we do. As a
community bank, our focus
remains on ensuring our
values are lived out through
continual learning, quality
customer service, and
growth as individuals and
professionals.
We’re proud of the recognition
our team members receive
for their loyalty and dedication
to providing outstanding
banking experiences.
Sara Larson and Gabe Olson both recently graduated from Iowa Banker’s
Association (IBA) Leaders in Advocacy, a 10-month program focused on building
a base of leaders educated on banking industry issues and communicating
effectively with legislators and regulators. In addition to creating an advocacy
plan for their respective banks, program participants attended monthly meetings
and visits to the state Capitol, and joined the IBA for its annual Capitol Hill Visit
in Washington D.C.
Jon Hummel was named the 2022 Leaders of Tomorrow “Up and Coming Banker
of the Year” in July at the Community Bankers of Iowa's annual conference in
Okoboji, Iowa. Recipients of the award were chosen for exemplifying the best in
the future of independent community banking.
Alice Jensen (retired 2021) was honored by the IBA for more than 50 years of
service at West Bank. Jensen received the award during the September IBA
Annual Convention in Des Moines. She was one of 24 individuals recognized for
reaching the impressive 50-year milestone. Upon recognizing award recipients,
IBA President and CEO John Sorensen said, “Each year, it’s amazing to hear these
bankers’ stories of dedication to their communities and the many relationships
they formed throughout their 50-plus years of service. We’re honored to be able
to celebrate the exemplary commitment and experience of Alice Jensen.”
Sara Larson
Vice President,
Central Iowa Retail Manager
John Sorensen
President and CEO,
Iowa Bankers Association
Gabe Olson
Vice President, Commercial Banker
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STRONG VALUES
Rosemary Parson, senior vice
president of policy administration and
community relations at EquiTrust Life
Insurance Company, joined the
West Bancorporation, Inc. and
West Bank Boards of Directors in 2022.
Parson is an accomplished leader and
was inducted to the Iowa Insurance
Hall of Fame in 2021. She served on
the State of Iowa's Technical and
Commercialization (innovation)
Committee and several boards,
including Children and Families of Iowa,
the Des Moines Community
Foundation, Pyramid Theatre and the
YMCA of Greater Des Moines.
Parson currently serves as a trustee of
the Des Moines Art Center and actively
mentors young-adult students in the
areas of financial literacy, banking,
education and character.
Rosemary Parson
West Bancorporation and West Bank
Boards of Directors
West Bank
Milestone
Anniversaries
50 YEARS
Kay Trager
Vice President, Deposit Operations
30 YEARS
Brad Winterbottom
President
Han Wu
Senior Vice President, IT
25 YEARS
Holly Hawxby
Loan Processor, Loan Operations
20 YEARS
SueAnn Niehaus
Vice President, Trust Operations
Jon Hummel
Vice President, Commercial Banker
Alice Jensen
West Bank Legend
Brooke Newton
Vice President, Trust Officer
Zana Serdarevic
Second Vice President,
Treasury Management Administration
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STRONG VALUES
Good Neighbors:
West Bank made a $350,000 contribution to the Historic West Des Moines Pilot Housing Program,
which launched in June 2022. The program assists property owners with residential property
improvement projects within the Historic West Des Moines area, also known as Valley Junction,
where West Bank was founded in 1893.
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In 2022, West Bancorporation Foundation and West Bank
supported more than 225 community organizations.
$735,000+ Support for Community
Nonprofit Organizations
$125,000+ Toward organizations focused
on health and wellness
7,000+
Hours volunteered by THE
West Bank team to support
community services
“West Bank has always been deeply committed to supporting the communities we serve.
We’re proud to continually invest in the organizations that help keep our communities healthy and strong.”
West Bank and Executive Director of the West Bancorporation Foundation
– Jill Hansen, Senior Vice President,
Being a community bank means caring about supporting
strong communities.
West Bank proudly invests in the health and community
services that help strengthen the neighborhoods, businesses
and individuals we serve.
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BUILDING
ON QUALITY
Ian Fitzsimmons
Assistant Branch Manager
As one of the top-performing community
banks in the nation, we’re always looking to
combine innovation and technology to
advance West Bank products and services.
Debit Card Management
In 2022, we introduced a new card management tool
to allow increased control, convenience and safety
for debit card users. Manage My Cards, a West Bank
mobile app integration, provides in-depth information
about card transactions, including a map pinpointing
transaction locations. Manage My Cards also offers
card users increased control through the ability to limit
transactions by locations, merchant type, transaction
type and spending limits.
Online Account Opening Solution
Rolled out February 1, 2022, the Online Account
Opening solution offers new and existing customers
convenience at their fingertips. Through the West Bank
website and mobile app, customers may open certain
checking, savings and money market accounts online.
This new solution makes opening certain accounts
a convenience from anywhere customers have
internet access.
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LEADERSHIP
B O A R D O F D I R E C T O R S
James Noyce*
Chair,
West Bancorporation
David Nelson*
CEO and President,
West Bancorporation;
Chair 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
Bradley 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*
Recoop Disaster
Insurance
Michael Gerdin*
Heartland Express, Inc.
Sean McMurray*
Businessolver, Inc.
George Milligan*
The Graham Group, Inc.
Rosemary Parson*
EquiTrust Life
Insurance Company
Steven Schuler*
Retired
Therese Vaughan*
University of Iowa
Philip Jason Worth*
Gilcrest/Jewett
Lumber Company
* Director of West Bancorporation, Inc. and West Bank ** Director of West Bank
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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 I E S • 2 0 2 2 A N N U A L R E P O R T
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
Investor/Consultant
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 Corporation
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.
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 I E S • 2 0 2 2 A N N U A L R E P O R T
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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
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
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
Mark Freerksen
Freerksen Trucking Inc.
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.
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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 I E S • 2 0 2 2 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
Jeff Brown, Jr.
North Rock Real Estate
Michael Busch
Paramark Corp.
Patrick Deutsch
Pace International
Bobbie Gostout, M.D.
Vice President Emeritus,
Mayo Clinic
Hal Henderson
HGA
Dick Kuehn
Kuehn Motors
Brian Leary
Pharmaceutical
Specialties, Inc.
David Pederson
Dunlap & Seeger, P.A.
Peter Schuller
A.B. Systems, Inc.
Ed Stanley
Merit Building
Enclosure Systems
Chris Terry
BuildCore, Inc.
Natalie Victoria
Victoria’s
Restaurant and
The Tap House
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
Custom Catering
by Short Stop
Jeff Drown
Lyon Contracting
Steve Feneis
GC Real Estate Partners
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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FINANCIALS
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, 2022, 2021, and 2020
(dollars in thousands, except per share data)
2022
2021
2020
$ 91,740
$ 95,059
$ 82,833
(2,500)
10,208
45,051
59,397
46,399
(1,500)
9,729
43,380
62,908
49,607
12,000
9,602
39,054
41,381
32,712
$ 1.00
$ 0.94
$ 0.84
2.79
2.76
25.55
12.69
$3,613,218
683,451
2,742,836
322
-
2,880,408
211,112
1.32%
20.71%
0.14%
43.70%
35.82%
3.91%
2.76%
0.93%
(0.02%)
0.01%
5.84%
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
$3,185,744
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%
(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 I E S • 2 0 2 2 A N N U A L R E P O R T
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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
Interest-bearing deposits
Cash and cash equivalents
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
Total deposits
Federal funds purchased and other short-term borrowings
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, 2022 and 2021
Common stock, no par value; authorized 50,000,000 shares; 16,640,413
and 16,554,846 shares issued and outstanding at December 31, 2022
and 2021, respectively
Additional paid-in capital
Retained earnings
Accumulated other comprehensive loss
Total stockholders’ equity
Total liabilities and stockholders’ equity
December 31, 2022 and 2021
(dollars in thousands, except per share data)
2022
2021
$ 24,896
$ 17,555
1,643
26,539
664,115
19,336
2,742,836
(25,473)
2,717,363
53,124
11,988
44,573
36,609
39,571
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
$ 3,613,218
$ 3,500,201
$ 693,563
$ 720,136
536,226
1,237,954
412,665
2,880,408
200,000
79,369
155,000
51,486
35,843
548,242
1,550,636
196,991
3,016,005
2,880
20,465
125,000
51,521
24,002
3,402,106
3,239,873
-
-
3,000
32,021
267,562
(91,471)
211,112
3,000
30,183
237,782
(10,637)
260,328
$ 3,613,218
$ 3,500,201
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Interest income
Loans, including fees
Securities:
Taxable
Tax-exempt
Interest-bearing deposits
Total interest income
Interest expense
Deposits
Federal funds purchased and other short-term borrowings
Subordinated notes
Federal Home Loan Bank advances
Long-term debt
Total interest expense
Net interest income
Provision for loan losses
Net interest income after provision for loan losses
Noninterest income
Service charges on deposit accounts
Debit card usage fees
Trust services
Increase in cash value of bank-owned life insurance
Loan swap fees
Realized securities gains, net
Other income
Total noninterest income
Noninterest expense
Salaries and employee benefits
Occupancy
Data processing
Subscriptions and service contracts
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, 2022, 2021, and 2020
(dollars in thousands, except per share data)
2022
2021
2020
$ 107,095
$ 95,585
$ 90,668
12,524
3,527
203
123,349
22,629
1,764
2,867
2,669
1,680
31,609
91,740
(2,500)
94,240
2,194
1,969
2,709
964
835
-
1,537
10,208
25,838
4,913
2,597
2,137
996
874
814
6,882
45,051
59,397
12,998
8,542
2,861
292
7,818
1,443
304
107,280
100,233
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
11,256
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
23,226
21,591
5,162
2,465
1,777
1,818
946
765
7,221
38,406
43,380
35,742
62,908
7,052
13,301
4,879
2,331
1,333
1,210
927
868
5,915
39,054
41,381
8,669
$ 46,399
$ 49,607
$ 32,712
$ 2.79
$ 2.76
$ 3.00
$ 2.95
$ 1.99
$ 1.98
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 I E S • 2 0 2 2 A N N U A L R E P O R T
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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 its subsidiary as of December 31, 2022 and 2021, 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, 2022; and in our report, dated February 22, 2023, 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 22, 2023
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, 2022, 2021, and 2020
(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:
2022
2021
2020
$ 91,740
$ 95,059
$ 82,833
1,122
$ 92,862
$ 3,361,091
2.76%
1,202
707
$ 96,261
$ 83,540
$ 3,152,138
$ 2,614,342
3.05%
3.20%
Net interest income on an FTE basis (non-GAAP)
$ 92,862
$ 96,261
$ 83,540
Noninterest income
Adjustment for realized securities gains, net
Adjustment for losses on disposal of premises and equipment, net
Adjusted income
Noninterest expense
Efficiency ratio on an adjusted FTE basis (non-GAAP) (2)
10,208
-
29
9,729
(51)
84
9,602
(77)
9
$ 103,099
$ 45,051
43.70%
$ 106,023
$ 93,074
$ 43,380
$ 39,054
40.91%
41.96%
(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 Company's financial performance. It is a standard measure of comparison within the banking industry. A lower ratio is more desirable.
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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, Corporate Secretary,
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 154 common stockholders of record on December 31, 2022, and an estimated 5,300 additional beneficial holders whose stock was held in
street name by brokerages or fiduciaries.
Market and dividend information (1)
High
Low
Close
Dividends
2022
4th Quarter
3rd Quarter
2nd Quarter
1st Quarter
Total
2021
4th Quarter
3rd Quarter
2nd Quarter
1st Quarter
Total
$ 25.62
$ 20.50
$ 25.55
26.26
27.51
32.60
20.39
22.88
27.07
20.81
24.34
27.21
$ 34.50
$ 29.30
$ 31.07
31.98
29.90
26.78
26.26
23.92
18.86
30.03
27.75
24.09
$ 0.25
0.25
0.25
0.25
$1.00
$ 0.24
0.24
0.24
0.22
$0.94
(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.astfinancial.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 I E S • 2 0 2 2 A N N U A L R E P O R T
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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: interest rate risk, including the effects of
recent rate increases by the Federal Reserve; fluctuations in the values of the securities held in our investment portfolio, including as a result of
rising interest rates, which has resulted in unrealized losses in our portfolio; competitive pressures, including from non-bank competitors such
as “fintech” companies and digital asset service providers; pricing pressures on loans and deposits; our ability to successfully manage liquidity
risk; changes in credit and other risks posed by the Company’s loan portfolio, 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 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; acts of war or terrorism, including the Russian invasion of Ukraine, widespread disease
or pandemics, such as the COVID-19 pandemic, or other adverse external events; risks related to climate change and the negative impact it may
have on our customers and their businesses; developments and uncertainty related to the future use and availability of some reference rates, such
as the expected discontinuation of the London Interbank Offered Rate and the development of other alternative reference rates; changes to U.S.
tax laws, regulations and guidance; talent and labor shortages; the new 1% excise tax on stock buybacks by publicly traded companies; 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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Locations
IOWA
Main Bank
1601 22nd St.
South
3920 SW 9th St.
West Des Moines
Des Moines
MINNESOTA
Mankato
122 North Broad St.
Mankato
Coralville
401 10th Ave.
Coralville
Waukee
955 East Hickman Rd.
Waukee
Owatonna
345 Florence Ave., Ste. 101
Owatonna
East
2440 East Euclid Ave.
Des Moines
City Center
809 6th Ave.
Des Moines
Grand
125 Grand Ave.
West Des Moines
Rochester
2188 Superior Dr. NW
Rochester
St. Cloud
1800 Bellin Dr.
St. Cloud
ONLINE westbankstrong.com
@westbankstrong
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