Full Description

West Bancorporation Inc., incorporated on May 22, 1984, is a financial holding company. The Company owns 100% of the stock of one state chartered bank subsidiary, West Bank, and one registered investment advisory firm, WB Capital Management Inc. (WB Capital). The Company conducts its operations through its banking and investment advisory subsidiaries. West Bank focuses on providing services to small and medium-sized businesses and to individuals who live and/or work within its market areas. West Bank offers all types of credit to its customers, including commercial, real estate, and consumer loans. It also offers a range deposit services, including checking accounts, savings accounts, money market accounts, and time certificates of deposit.

Banking subsidiary

West Bank is a state-chartered commercial bank whose deposit accounts are insured by the Federal Deposit Insurance Corporation (FDIC). West Bank provides full-service banking to businesses and residents in the Des Moines and Iowa City metropolitan areas, as well as correspondent services to banking organizations primarily located in Iowa. It provides a range of products and services designed to meet the needs of the markets it serves. West Bank conducts business from eight full-service offices within the Des Moines metropolitan area and three full-service offices in the Iowa City metropolitan area. West Bank offers trust services including the administration of estates, conservatorships, personal and corporate trusts, and agency accounts. West Bank also offers correspondent bank services to other community banks. West Bank offers all types of credit to its marketplace, including commercial, real estate and consumer loans.

Investment advisory subsidiary

WB Capital is a registered investment advisor, regulated by the Securities and Exchange Commission, providing portfolio management services to individual investors, retirement plans, corporations, foundations, endowments, insurance companies, banks, political subdivisions, mutual funds, and other organizations. During the year ended December 31, 2008, WB Capital had approximately $4.3 billion in assets under management.

Credit Management

West Bank diversifies the types of loans offered and is subject to regular credit examinations by regulators, annual external loan audits, internal loan reviews, and an annual internal review of large loans. The commercial real estate loans are based on loan-to-appraisal value ratios of not more than 80% and are secured by a priority lien position.

Commercial operating loans are made to businesses with normal terms of up to twelve months. Commercial term loans are made to businesses to finance equipment and other capital expenditures. Terms are generally the lesser of seven years or the useful life of the asset. Term loans are normally secured by the asset being financed and are often additionally secured with the general assets of the business. Construction loans on commercial real estate are based on a loan-to-appraisal value ratio of not more than 80% and are secured by a priority lien position. Residential construction loans are generally for a term not to exceed one year based on a loan-to-appraisal value ratio of not more than 80%, and are secured by a priority lien position.

The proceeds of the residential mortgage loans are used to buy or refinance the purchase of residential real estate, with the loan secured by a lien on the real estate. The residential mortgage loans originated by West Bank are sold in the secondary mortgage market.

The home equity term loans are used for home improvement or other consumer purposes and are secured by a junior mortgage on residential real estate. The loan-to-value ratios normally do not exceed 90%. West Bank offers a home equity line of credit with a maximum term of 120 months. These loans are secured by a junior mortgage on residential real estate and normally do not exceed a loan-to-value ratio of 90%, with the interest adjusted quarterly.

Consumer loans are provided to the automobiles (loans on new and used automobiles generally not exceeding 80 and 75% of the value, respectively); recreational vehicles and boats (75% of the value); modular home loans having a maximum term of 180 months with the loan-to-value ratio not exceeding 80%. Each of these loans is secured by a priority lien on the assets and requires insurance to protect West Bank’s collateral position.

The Company competes with Bankers Trust Company, NA, First American Bank, Bank of the West, Bank of America, Regions Bank, U.S. Bank, NA, and Wells Fargo Bank.