West Bancorporation, Inc.
and Subsidiary,
West Des Moines State Bank
Nasdaq trading symbol: WTBA
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Safe Harbor Statement
This presentation contains forward-looking statements about the Company, its
business and its prospects. Forward-looking statements can be identified by
the fact that they do not relate strictly to historical or current facts.
They often include the use of the words "believe", "expect", "anticipate",
"intend", "plan", "estimate" or words of similar meaning, or future or
conditional verbs such as "will", "would", "should", "could", or "may".
Forward-looking statements by their nature, are subject to risks and
uncertainties. A number of factors, many of which are beyond the Company's
control, could cause actual conditions, events or results to differ
significantly from those described in the forward-looking statements. Such
risks and uncertainties with respect to the Company include those related to
the economic environment, particularly in the areas in which the Company and
West Bank operates, competitive products and pricing, fiscal and monetary
policies of the U. S. Government, changes in governmental regulations
affecting financial institutions, including regulatory fees and capital
requirements, changes in prevailing interest rates, credit risk management
and asset/liability management, the financial and securities markets and the
availability of and costs associated with sources of liquidity.
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West Bancorporation, Inc.
o One-bank holding company with West Des Moines State Bank (West Bank) as its
banking subsidiary
o Full-service community bank
Main Office
West Des Moines, IA
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Milestones
o 1893: Founded as First Valley Junction Savings Bank
o 1938: Valley Junction becomes West Des Moines. Bank follows suit becoming
West Des Moines State Bank
o 1984: West Bancorporation, Inc. Holding Company is formed
o 2002: Stock listed on Nasdaq
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Full-Service
Community Bank
o $825 million bank
o Headquartered in West Des Moines, IA
o 8 banking centers and a network of ATMs
- Banking Centers
- Remote ATMs
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Metropolitan Des Moines
o Population: 461,425 Households: 180,541
o Des Moines MSA median household income: $45,573
o Unemployment Rate: 1.8%
Greater Des Moines Partnership - 2001 Statistics
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o 17% Metropolitan Growth 1990-2001. 5% State Growth for the same period
o Major industries include insurance, government (state capital), education,
medical centers, manufacturing, financial services, trade and service.
o Over 90 percent of adults age 25 and older in the Des Moines MSA hold a
high school diploma. Over 25% have a 4-year college degree
Greater Des Moines Partnership - 2001 Statistics
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o Sits on the Crossroads of America's two major Interstates, I-35 and I-80
o 2000 Population: 46,403
46% Population growth
1990 - 2000
o 12th year in a row to lead the state in residential construction growth.
o Diversified economic base
o Employment numbers have increased steadily with officials now believing as
many people work in our city during the day as sleep here at night.
2001 City of West Des Moines
Comprehensive Annual Financial Report
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Top Performing Bank
o 3rd Most Efficient BHC Among the Top 500
The American Banker - 2001
o #1 ROA and ROE Among the Top 10 High Performance C Corps
Iowa Banking Magazine - 2002
o Best Bank for Small Business
Des Moines Business Record - 2001
o Best Bank in Des Moines
City View Magazine - 2002
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Deposit Market Share
SNL Financial - 06-30-01
Institution Type Branches Deposits Market
- --------------------------------------------------------------------------------
Wells Fargo ............... Bank 13 2,270,671 36.6
Bankers Trust ............. Bank 10 881,725 11.8
U.S. Bank ................. Bank 21 748,370 10.0
Principal Bank ............ Thrift 1* 705,697 9.5
West Bank ................. Bank 8 531,105 7.1
Comm'l Fed ................ Thrift 11 323,288 4.3
Comm State ................ Bank 9 303,096 4.0
Bank of America ........... Bank 7 285,887 3.8
* Internet bank
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Keys to Success
People
o Longevity & Experience
Average West Bank Officer:
- Brings 20 years in experience in banking, and has
- 15 years employment with the company
o Generalists - Cross training
- Low number of employees
114 FTE
- Full service to our customers
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Keys to Success
Low Overhead
o Cost-Conscious Culture
o Average Efficiency Ratio of 28.7% exceeds peer group average of 59%
1996 - 2001
o Ranked 3rd most efficient U.S. bank holding company among the largest 500
by American Banker
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Keys to Success
o Affluent customer base
o Superior reputation as a small business bank
o Superior asset quality
- Low delinquency and charge-off ratios
o Rapid response to loan requests
o High loan to deposit ratio
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Net Charge-offs,
Allowance as % of Loans
Year 1993 1994 1995 1996 1997 1998 1999 2000 2001
--------------------------------------------------------------------
Allow as % of Loans 0.79% 0.90% 0.98% 1.05% 1.01% 0.98% 0.82% 0.84% 0.86%
Net C/O's - West Bank 0.09% 0.15% 0.04% 0.09% 0.04% 0.06% 0.03% 0.21% 0.21%
Net C/O's - Peer Group 0.24% 0.16% 0.17% 0.19% 0.24% 0.21% 0.19% 0.23% 0.27%
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Assets, Loans,
Deposits - as of December 31st (in millions)
1980 1985 1990 1993 1994 1995 1996 1997 1998 1999 2000 2001
----------------------------------------------------------------------------------------------------------------------
Assets . $ 99.764 $188.820 $289.58 $375.961 $417.368 $470.792 $479.440 $569.625 $724.332 $775.972 $827.876 $815.970
Loans .. $ 58.942 $ 97.453 $182.23 $250.794 $303.950 $326.847 $328.358 $359.249 $393.107 $490.271 $495.884 $489.158
Deposits $ 89.098 $164.780 $236.44 $303.194 $320.505 $341.665 $349.487 $403.107 $485.603 $541.962 $547.283 $571.730
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Loan Mix
as of 12/31/01
Loan type Commercial Construction 1-4 Family Comml RE Consumer, Other
- -----------------------------------------------------------------------------------
Balance (000's) $ 226,183 $ 33,954 $ 71,628 $ 138,144 $ 23,333
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Deposit Mix
as of 12/31/01
Deposit type DDA NOW Savings Money Market Time
- ----------------------------------------------------------------------------
Balance (000's) $ 144,512 $ 31,570 $ 70,448 $ 179,352 $ 145,918
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Capital Ratios at 12/31/01
Tier 1 Leverage Tier 1 RBC Total RBC
------------------------------------------
Company Actual ...... 9.3% 12.9% 13.6%
Well Capitalized .... 5.0% 6.0% 10.0%
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Net Income ($000's)
Year 1980 1985 1990 1993 1994 1995 1996 1997 1998 1999 2000 2001
- ------------------------------------------------------------------------------------------------------------------------------------
Net Income (000's) .... $ 1,633 $ 3,410 $ 6,321 $ 9,233 $ 9,669 $10,577 $11,219 $12,011 $13,450 $14,953 $14,416 $15,736
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Return on Average Equity
Year 1980 1985 1990 1993 1994 1995 1996 1997 1998 1999 2000 2001
- ---------------------------------------------------------------------------------------------------------------------------
ROE ....... 23.03% 26.16% 21.38% 23.73% 23.15% 23.69% 23.00% 22.79% 23.53% 24.50% 22.57% 20.99%
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Return on Average Assets
Year 1980 1985 1990 1993 1994 1995 1996 1997 1998 1999 2000 2001
- --------------------------------------------------------------------------------------------------------------------------
ROA ......... 1.90% 1.99% 2.39% 2.66% 2.46% 2.48% 2.43% 2.32% 2.16% 2.05% 1.77% 1.88%
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EPS, Dividends Per Share
Year 1993 1994 1995 1996 1997 1998 1999 2000 2001
- --------------------------------------------------------------------------------
EPS ..... $0.57 $0.60 $0.66 $0.69 $0.75 $0.84 $0.93 $0.90 $0.98
Div/Share $0.37 $0.43 $0.45 $0.45 $0.47 $0.49 $0.53 $0.58 $0.60
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Annual Dividends Per Share
The dividend pay out has been approximately 60% of net income
Year 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
- -----------------------------------------------------------------------------------------------------------------------------
Div/Share ... $0.0278 $0.1111 $0.2222 $0.2222 $0.3111 $0.3667 $0.4333 $0.4444 $0.4489 $0.4667 $0.4933 $0.5333 $0.580 $0.6000
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Fundamentals as of
June 5, 2002
o 52 week: high - $18.00; low - $9.75
o Closing price - $16.14
o PE ratio - 16.5
o EPS - $0.98 (2001)
o Current dividend yield - 3.7%
o Total shares outstanding - 16,060,271
o Market capitalization - $259,213,000
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Goals
o ROE - 20%+
o Efficiency Ratio - < 30%
o Loan to deposit ratio in excess of 85%
o Dividends - increase annually
o Substantially increase number of off-premise ATM's
o Double number of locations over next 3 years
- acquisitions
- de novo
- new branches
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