West Bancorporation · NASDAQ:WTBA
West Bancorporation — Shareholder Meeting (April 2009)
31 slides from West Bancorporation's shareholder meeting presentation, Apr 17, 2009
Slide 1: 2009 Shareholders' Meeting
2009 Shareholders’ Meeting April 16, 2009
Slide 2: 2008 Year in Review
2008 Year in Review
Slide 3: 2008 Overview
2008 Overview Year of Conflicts Many positive aspects to year Doug will highlight 2008 financial picture Brad will review activities at West Bank in 2008 Doug will discuss WB Capital Management Extraordinary issues Iowa’s largest homebuilder fails Wholesale propane customer is defrauded Investment i
Slide 4: 2008 Financial Review
2008 Financial Review
Slide 5: West Bancorporation, Inc.
West Bancorporation, Inc. +606.4% $2,350 $16,600 Provision for loan losses +23.4% $121.6 mil $150.1 mil Stockholders' equity +26.8% $911 mil $1.155 bil Total deposits +15.9% $1.340 bil $1.553 bil Total assets -59.6% $18,920 $7,636 Net income % Change
Slide 6: West Bancorporation, Inc.
West Bancorporation, Inc. +6.4% 9.08% 9.66% Equity: Assets -17.9% 7.20% 5.91% Tangible common equity: Tangible assets -2.3% 44.23% 45.25% Efficiency +3.0% 3.28% 3.38% NIM -60.1% 16.21% 6.47% ROE -61.4% 1.45% 0.56% ROA % Change
Slide 7: West Bancorporation, Inc. Non-Recurring Items
West Bancorporation, Inc. Non-Recurring Items $317,000 •Community Bank Unit Investment Trust $1,800,000 •Lehman Brothers bond $2,622,000 preferred security) •ALESCO (a pooled trust Securities impairments: $3,300,000 •Customer impacted by fraud $4,675,000 •Large home builder Loan charge-offs:
Slide 8: WB Capital Management, Inc.
WB Capital Management, Inc. -6.6% $8,137 $7,596 Revenue +42.0% 3.00% 4.26% WB Cap net income as % of consolidated net income -42.8% $568 $325 Net income -3.8% $4.49 bil $4.32 bil Assets under management % Change
Slide 9: Loss on Lehman Brothers bond $458,000
Loss on Lehman Brothers bond $458,000 WB Capital Management, Inc. Non-Recurring Item
Slide 10: 2008 Bank Review
2008 Bank Review
Slide 11: 2008 West Bank Review
12% Loan Growth (year over year) 11% Loan Growth (average) Late 3Q and 4Q loan demand softened Underwriting criteria increased 27% Deposit Growth (year over year) 6% Deposit Growth (average) Reward Me Checking Small Commercial 3D (Coffee Campaign) CDARS SmartyPig 2008 West Bank Review
Slide 12: Retail Banking
Retail Banking Remodeled Merle Hay Branch February 09 grand opening New Waukee Branch March 09 grand opening Staffed retail, mortgage, small business New Personnel Scott Jarvis, Head of Retail Matt Klein, City Center Matt Petersen, Waukee Trisha Knepper, Urbandale Training Presentation Training Sale
Slide 13: Trust
Trust 4% Revenue Growth New Personnel Carol Stone, former head of Trust Department promoted to Chief Compliance Officer Jim Benda, Senior Trust Officer, hired to lead the department
Slide 14: Commercial Banking
Commercial Banking New Personnel Aldrich Cabildo, 1 st Vice President Steve Miller, 1 st Vice President Training Sales and Coaching Presentation Training Product Training Treasury Management Expanded and improved existing product line Positive Pay rollout 2009
Slide 15: Residential Mortgage
Residential Mortgage 333% Increase in Gross Fees Earned in 2008 345% Increase in Gross Fees Earned 1Q09 New Personnel Steve Federspiel, 2 nd Vice President Tim Bonert, 2 nd Vice President
Slide 16: Compliance and Credit Administration
Compliance Lost Georgann Mefferd to Cancer 22 year employee Financial Literacy, Hawthorne Hill Ministries, Neighborhood Finance Law Degree; Legal, credit and chief compliance officer. Promoted Carol Stone to Chief Compliance Officer Fmr Head of Trust Department Extensive background in financial comp
Slide 17: Bank Awards & Community Outreach
Bank Awards & Community Outreach 2009 Better Business Bureau Integrity Award Recipient 2008 Community Champion Award from the Greater Des Moines Partnership 2009 United Way Leader in Giving Award Employee Community Involvement 210 Employees contributed more than 10,000 community service hours And ho
Slide 18: 2008 WB Capital Management Review
2008 WB Capital Management Review
Slide 19: 2009 First Quarter Results and Dividend Declaration
2009 First Quarter Results and Dividend Declaration
Slide 20: Preliminary 2009 First Quarter Results
Preliminary 2009 First Quarter Results Earnings will be released on April 30 th Good core earnings with significant one-time gains and losses
Slide 21: Preliminary First Quarter Results
Preliminary First Quarter Results -37.5% $5,600 $3,500 Provision for loan losses +26.8% $119.3 mil $151.3 mil Stockholders' equity +35.1% $884 mil $1.194 bil Total deposits +20.9% $1.333 bil $1.612 bil Total assets +114.0% $1,374 $2,941 Net income % Change
Slide 22: Preliminary First Quarter Results
Preliminary First Quarter Results +4.6% 9.20% 9.62% Equity: Assets -18.5% 7.08% 5.77% Tangible common equity: Tangible assets -5.8% 47.45% 50.19% Efficiency -15.1% 3.38% 2.87% NIM +72.7% 4.54% 7.84% ROE +78.6% 0.42% 0.75% ROA % Change
Slide 23: Preliminary First Quarter Results: Non-Recurring Items
Preliminary First Quarter Results Non-Recurring Items $1,453,000 Gains from the sale of investment securities $840,000 Bank-owned life insurance death benefit $35,000 • Community Bank Unit Investment Trust $500,000 • Single-issue trust preferred security $880,000 • Single-issue trust preferred secur
Slide 24: 2009 First Quarter Dividend
2009 First Quarter Dividend Declared a $0.01 per share dividend Record date: April 27 th Payment date: May 13 th Objective is to increase tangible common equity through retained earnings as quickly as possible
Slide 25: 2009 and Beyond
2009 and Beyond
Slide 26: Business Plan through 2010: Focus on Asset Quality Improvement
Loans Adverse Assets Resolution Stricter underwriting standards Reduce out-of-market lending Improve compliance process Investments Gradually eliminate all corporate investments Remain invested in High-grade municipal bonds, Mortgage-backed securities of government agency Direct government agency de
Slide 27: Business Plan through 2010
Continue with steady but more focused growth in market share Shift primary emphasis from new customer development to expanding existing customers’ relationships Greater deposit growth than loan growth Remain a traditional community bank, serving the needs of the customer Capital Requirements Use of
Slide 28: WB Capital Strategic Assessment
WB Capital Strategic Assessment Under-performed our investment expectations Reviewing all options Change investment strategies Market to different clients Merge into trust department Have not actively attempted to sell but will consider meaningful unsolicited offers Business Plan through 2010
Slide 29: Future of the Company
Future of the Company Continue as a traditional community bank Stay on the offense Enhance Customer Service Introduce new products Remain rate-competitive but price loans for risk Commence strategic review of West Bank in May Stay true to our core values
Slide 30: Question and Answer
Question and Answer
Slide 31: 2009 Shareholders' Meeting
2009 Shareholders’ Meeting April 16, 2009
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