West Bancorporation · NASDAQ:WTBA
West Bancorporation — Howe Barnes Hoefer & Arnett Annual Community Bank Conference 2007
53 slides from West Bancorporation's conference presentation, Aug 13, 2007
Slide 1: Howe Barnes Hoefer & Arnett Annual Community Bank Conference
Howe Barnes Hoefer & Arnett, Inc. Annual Community Bank Conference Community Bank Conference August 13, 2007
Slide 2: Presenters: Thomas E. Stanberry and Douglas R. Gulling
Thomas E. Stanberry Chairman of the Board, President & Chief Executive Officer Douglas R. Gulling Executive Vice President & Chief Financial Officer
Slide 3: Forward-looking Statements
Forward-looking Statements Certain market and demographic information provided herein was obtained from SNL Financial, Inc. and Demographics Now . Certain peer group information was obtained from the FDIC’s Uniform Bank Performance Report. West Bancorporation, Inc. did not prepare this information.
Slide 4: Table of Contents
Table of Contents Company and Market Structure Market Share Key Attributes & Financial Performance WB Capital Management Inc. Strategic Plan Summary & Discussion
Slide 5: Section I Company & Market Structure
Section I Company & Market Structure
Slide 6: West Bancorporation, Inc. and Wholly-owned Subsidiaries
West Bancorporation, Inc. and Wholly-owned Subsidiaries
Slide 7: Management and subsidiary leadership
Thomas E, stanberry Caiman atte toa, PrstetanaiiYEreorte omer wits Douglas Ruling Sharenk. Surber Brad L. interbotiom “Soot D. Elfes Bacto EVP Operations President ceo wre ‘West Banke ‘West Bank ‘we Capital Management Ine Jetfiey D. Lorenzen President ‘we Capital Management ine
Slide 8: Community bank and money manager
Community bank founded in 1893 Two Markets Des Moines Metro (7 locations) Iowa City/Coralville (3 locations) Money manager founded in 2003 Mid-west offices West Des Moines (headquarters) Coralville
Slide 9: Des Moines MSA
Des Moines MSA Des Moines is known for its outstanding quality of life. Four-time "All American City" Political, economic and cultural center of Iowa All the amenities of a large city - shopping, sports, attractions, and the arts Located in the heart of the Midwest at the junction of I-80 and I-35
Slide 10: Iowa City MSA
Iowa City MSA Iowa City has long served as a locus for culture and education. The economy is based upon a thriving commerce, a major university, and a number of national and international businesses. The University of Iowa offers more than 100 areas of study for its 29,000 students. The academic, ar
Slide 11: Iowa Growth Projections
Iowa Growth Projections 53,978 321,679 151,767 58,868 221,204 Households 0.19% 6.98% 1.28% 7.39% 8.31% Projected population change 2006-2011 1,051 Households per branch 30,467 44,159 38,320 40,366 48,876 Deposits per branch ($000) 143,086 14,351,696 5,977,858 2,260,468 10,410,612 Deposits ($000) No.
Slide 12: Because you play a decidedly different game...
ESe€se See® ESE Because you play a decidedly different game...
Slide 13: Deposit Market Share Summary - State of Iowa
Deposit Market Share Summary State of Iowa 1.62 875,332 Stark Bank Group, Ltd. 1.69 911,430 Northwest Financial Corp 1.75 943,876 Bank of America corporation 1.78 961,220 BNP Paribus Group 1.91 1,029,941 West Bancorporation, Inc 1.99 1,076,746 Hills Bancorporation 2.20 1,186,871 Principal Financial
Slide 14: Deposit Market Share Summary - Des Moines MSA
Deposit Market Share Summary Des Moines, IA - MSA 2.10 218,180 Iowa State Bank Holding Company 3.36 349,662 BNP Paribas Group 3.67 382,007 Stark Bank Group, Ltd. 3.91 406,565 Van Diest Investment Company 6.70 697,759 U.S. Bancorp 6.87 715,085 Bank of America Corporation 9.12 949,581 West Bancorporat
Slide 15: Deposit Market Share Summary - Iowa City MSA
Deposit Market Share Summary Iowa City, IA - MSA 1.74 39,351 Solon Financial, Inc. 1.84 41,496 Wells Fargo & Company 2.64 59,758 Lone Tree Service Company 2.89 65,324 Washington Bancorp 3.56 80,360 West Bancorporation, Inc 5.10 115,242 Central Bancshares, Inc 6.62 149,555 W.S.B., Inc. 9.98 225,561 U
Slide 16: Section III Key Attributes & Financial Performance
Section III Key Attributes & Financial Performance
Slide 17: Key Attributes
Key Attributes Emphasis on small- and medium-sized businesses Relationship Based Experienced management Continuity and expertise of staff Strong financial performance
Slide 18: Loan Portfolio Composition – Real Estate
Loan Portfolio Composition – Real Estate
Slide 19: Loan Portfolio Composition – Commercial
Loan Portfolio Composition – Commercial
Slide 20: Non-Current Loans to Gross Loans
Non-Current Loans to Gross Loans
Slide 21: Net Charge-Offs to Average Loans
Net Charge-Offs to Average Loans
Slide 22: Loan Loss Reserve to Total Loans
Loan Loss Reserve to Total Loans
Slide 23: 4.00 3.0 Hy é 3.00 2.00 Deodld Deed Deo Deol Mart [—e—Bankers Trust Company,
450 4.00 3.0 Hy é 3.00 250 2.00 Deodld Deed Deo Deol Mart [—e—Bankers Trust Company, NA 297 3.49 300 2.81 26a [—a— Hills Bankand Trust Company 3.29 3.45 333 an a0 |—ae—Firct American Bank 3.03 3.13 3.40 38 313 —e—lowa Sixt Bank & Trust Company 321 3.15 306 288 22 [National Peer Group Average 373 372
Slide 24: Dec Dect Deo-06 Deeb Mar
9.00 an £100 Ze é 600+ 500 Dec Dect Deo-06 Deeb Mar [—e—Bankers Trust Gormany, NA 594 564 a 656 650 a Hil Bankand Trust Company oat 005 20 al 650 [a First Anercan Bank 5m 553 5 a3 71 =o lows Sie Bank Trust Company | 6.38 aad 025 18 692 [National Peer Grou Average 632 02 ar 759 118 eo Wost Bark 2 581
Slide 25: Average Yield on Real Estate Loans
Average Yield on Real Estate Loans
Slide 26: Average Yield on Commercial & Industrial Loans
Average Yield on Commercial & Industrial Loans
Slide 27: Average Rate Paid on Interest-Bearing Deposits
Average Rate Paid on Interest-Bearing Deposits
Slide 28: Average Yield on Total Investment Securities
Average Yield on Total Investment Securities
Slide 29: 30.00 EE EE
7.00 0.00 000 H é 000 30.00 EE EE 20.00 Deed Dec-Od Des Decl MrT [—e— Bankers Trust Company, NA 62.5 6132 19 487 6700 [=a His Bonkand Trust Company 5605 aa Sal 36.39 364i [—aeFist American Bank som 5454 1a 5031 S614 [—e—lows Sab Bank @ Trust Company| 60.18 300 ii 0633 6181 [=e Nstonal Peer Group Ave
Slide 30: 1.00 6.00 ee 6.00 = =a < ~ 2.00 0.00 Dec Dec-04 Dec-05 Dec-06
1.00 6.00 ee 6.00 400 = =a < ~ 2 2.00 0.00 Dec 03 Dec-04 Dec-05 Dec-06 Mar-07 |—e—Bankers Trust Company, NA 587 5.20 558 583 570 |e Hills Bank and Trust Company EEL] 3.50 551 45.50 585 |—ae—First American Bank Ant 436 412 502 529 |—e—lowa State Bank & Trust Company 304 325 345 3.45 3at |—*—National
Slide 31: a & ee r= ———__—++ —-
8.00 6.00 2 07 Se a & 200 ee r= ———__—++ —- 0.00 Deodld Deed Deo Deol Mart [—e—Bankers Trust Company, NA 3.43 3.59 37 404 4.06 [—a— Hills Bankand Trust Company 28 276 445 461 468 |—ae—Firct American Bank 37 3.30 359 a1 3.1 —e—lowa Sixt Bank & Trust Company 163 176 132 1a 200 [National Peer Group Ave
Slide 32: Personnel Expense as % of Average Assets
Personnel Expense as % of Average Assets
Slide 33: Occupancy Expense as % of Average Assets
Occupancy Expense as % of Average Assets
Slide 34: Other Operating Expenses as % of Average Assets
Other Operating Expenses as % of Average Assets
Slide 35: Net Income per Employee (pre-tax)
Net Income per Employee (pre-tax)
Slide 36: Deodld Deed Deo Deol Mart
250 200 = EB 10 é 100 os Deodld Deed Deo Deol Mart [—e—Bankers Trust Company, NA 0.98 1.03 087 0.82 07 [—a— Hills Bankand Trust Company 124 116 113 Tat Tt |—ae—Firct American Bank 0.985 1.04 Ant 112 0.98 —e—lowa Stat Bank & Trust Company 124 113 104 Tad 1a |e—Natonal Peer Group Average 1a 121 129 12
Slide 37: iia Deol Deed Deol Deo-06 Marl
5.00 20.00 = 2 1500 10.00 —" iia Deol Deed Deol Deo-06 Marl —o— Bankers Trust Company, NA 1424 1601 13.09 232 1098 [a His Bank and Trust Company 331 1218 RH Tat 184 a First American Bank 10.15 1111 1289 18 33 —o— Iowa State Bank &Trust Company | _ 1427 BA 1256 We ToT [i Natonal Peer Group Average 13
Slide 38: Consolidated Financial Results
Consolidated Financial Results 44.25% 44.46% 43.35% 41.54% Efficiency Ratio 3.39% 3.29% 3.35% 3.33% Net Interest Margin 1.47% 1.47% 1.49% 1.55% Return on Average Assets 18.09% 16.84% 18.56% 17.80% Return on Average Equity $9,427 $9,571 $4,882 $5,127 Net income ($000) 2006 2007 2006 2007 Three months
Slide 39: Section IV WB Capital Management Inc.
Section IV WB Capital Management Inc.
Slide 40: Overview
Overview WB Capital Management Inc. formed in October 2003 as a registered investment advisor Acquired assets of VMF Capital, LLC on October 1, 2003 Acquired assets of Investor’s Management Group on December 21, 2005
Slide 41: Assets under management as of June 30, 2007
Assets under management as of June 30, 2007 was approximately $4.4 billion Provides portfolio management services to individuals, retirement plans, corporations, governmental entities,foundations and endowments Minimum investment is $250,000 per account
Slide 42: Investment Strategies
Investment Strategies Investment decisions are driven by the opportunity to increase returns while managing portfolio risk. Fixed Income The investment process emphasizes three central tenets: Capital preservation Risk-aware portfolio construction A focus on our long-term view of the economy and fin
Slide 43: Investment Performance Equity Composites
Investment Performance Equity Composites* 9.87% 13.31% 15.93% 21.87% 6.23% 4.93% -2.34% Russell 1000 Value 7.62% 11.87% 15.60% 19.67% 9.06% 8.10% -1.51% Large Cap Value 13.37% 14.17% 15.15% 18.51% 11.98% 5.84% -2.18% S&P 400 Mid Cap Index 11.86% 16.39% 17.16% 20.83% 9.90% 5.30% -2.25% Russell Mid Ca
Slide 44: Investment Performance Fixed Composites
Investment Performance Fixed Composites* 5.06% 3.97% 3.62% 4.53% 0.51% -0.34% -0.26% ML 2-17 Muni 4.75% 3.63% 3.27% 4.50% 0.66% -0.25% -0.29% Core Municipal 6.01% 4.48% 3.98% 6.12% 0.98% -0.52% -0.29% Lehman Aggregate 6.09% 4.48% 4.40% 6.26% 1.06% -0.51% -0.33% Core Fixed Income n/a 3.19% 3.15% 5.34
Slide 45: Contributing in a decidedly different way.
Contributing in a decidedly different way.
Slide 46: West Bancorporation vision
West Bancorporation will be the best financial solutions company in our markets.
Slide 47: West Bank vision statement
West Banik witl be the recognized leader for providing financial solutions and community service in our markets. We wil build tong- term customer relationships and focus personalized solutions on: + Small to medium-sized businesses * Associations, non-profit and governmental organizations * Wealth m
Slide 48: West Bancorporation mission and values
West Bancorporation wit seve the best intests of ts Coplelees cattle ad sarod Fy weg paiip with or cers to provide sperarfnancseiten. We wl A ey Met eae emieede oe + Pace our client fist + Demonstrate community leadership * Conduct ourselves wit integrity ad respect * Provide a high quality work env
Slide 49: Strategic Initiatives - West Bank
Strategic Initiatives West Bank Shift growth plans in new markets from acquisition to de novo Select markets with 15% per annum projected growth and high households per branch Create new bank as hub and add branches in successive years Expand presence in Iowa Markets Additional central and eastern I
Slide 50: Strategic Initiatives - WB Capital Management Inc.
Strategic Initiatives WB Capital Management Inc. Focus on institutional money management with wealth management capabilities Provide consistent investment performance by exceeding benchmarks over a rolling three-year period Expand annual organic growth of assets under management with new sales and s
Slide 51: A decidedly different door to the American dream.
© @@ © @ & ‘A decidedly different door to the American dream.
Slide 52: Summary
Summary Future is bright at West Bancorporation West Bank Consistently outperforms peer banks Growth opportunities in current markets Expansion into new markets WB Capital Management Inc. Consistent investment performance Sales-, service- and compliance–driven culture Strong growth opportunities
Slide 53: If you're looking for customer service of a decidedly different hue...
4 {| LL IF you're looking for customer service of a decidedly different hue...
West Bancorporation — Howe Barnes Hoefer & Arnett Annual Community Bank Conference 2007 on 6ix