Edgar Filing: WEST BANCORPORATION INC

(PHOTOS)

110 YEARS OF INNOVATIVE FINANCIAL SOLUTIONS

West Bancorporation, Inc. | 2003 Annual Report

(WEST BANCORPORATION LOGO)

(PHOTOS)

WEST BANCORPORATION, INC. & SUBSIDIARIES

FINANCIAL HIGHLIGHTS (dollars in thousands, except per share)

2003 2002 2001 2000 1999
------------ ------------ ------------ ------------ ------------

YEAR-END BALANCES
Assets $ 1,000,612 $ 886,116 $ 815,970 $ 827,876 $ 775,972
Loans 599,355 488,453 493,399 500,079 474,076
Non-performing loans 1,793 1,899 1,274 1,171 1,019
Deposits 705,074 613,099 571,730 547,283 541,962
Stockholders' equity 92,896 85,824 79,012 70,845 61,125

AVERAGE BALANCES
Assets 932,907 837,938 837,798 812,411 729,090
Loans 531,033 482,013 495,825 489,598 434,131
Deposits 608,544 568,625 547,247 513,296 497,291
Stockholders' equity 88,742 81,904 74,977 63,872 61,033

RESULTS OF OPERATIONS
Net interest income 32,322 30,990 29,662 27,560 28,372
Provision for loan losses 850 910 1,063 1,190 290
Noninterest income 9,305 6,614 6,314 5,678 4,852
Noninterest expense 14,694 11,220 10,480 9,596 9,515
Income before taxes 26,083 25,474 24,433 22,452 23,419
Net income 17,283 16,376 15,736 14,416 14,953

PER COMMON SHARE
Net income 1.08 1.02 0.98 0.90 0.93
Dividend 0.64 0.62 0.60 0.58 0.53
Book value 5.78 5.34 4.92 4.41 3.81
Closing price 17.28 15.18 11.80 11.13 13.19

RATIOS
Return on average equity 19.48% 19.99% 20.99% 22.57% 24.50%
Return on average assets 1.85% 1.95% 1.88% 1.77% 2.05%
Efficiency ratio 34.78% 29.19% 28.23% 27.98% 27.96%
Net interest margin 3.77% 3.97% 3.81% 3.62% 4.17%
Average equity as %
of average assets 9.51% 9.77% 8.95% 7.86% 8.37%
Allowance for loan losses
as % of average loans 1.13% 0.93% 0.86% 0.86% 0.93%
Net charge-offs as %
of average loans 0.05% 0.14% 0.21% 0.21% 0.03%
Nonperforming loans
as % of loans 0.30% 0.39% 0.26% 0.23% 0.21%

SHAREHOLDER'S
LETTER

Dear Shareholders:

In my first annual letter to you, I am pleased to report that 2003 was
another good year. Net income for the Company was $17,283,000 or $1.08 per
share, up from $16,376,000 or $1.02 per share in 2002. Return on average equity
was 19.48% and return on average assets was 1.85%. The efficiency ratio was
34.78%.

2003 was a notable year for the Company and West Bank. In July we completed
our first acquisition of a bank when we purchased the assets of Hawkeye State
Bank in Iowa City. This transaction brought us two offices in Iowa City, a
number of very talented employees and a new customer base in a vibrant growing
part of Iowa with a stable business climate. The banking market in Iowa City is
highly competitive which creates new challenges in our depository and lending
businesses but allows us to expand the best practices of West Bank outside the
Des Moines metropolitan market.

On October 1, our newly formed, wholly-owned subsidiary and registered
investment advisor, WB Capital Management Inc., completed the purchase of VMF
Capital which was an independently-owned, Iowa-based asset manager. VMF Capital
provides domestic equity and fixed income money management for individuals,
non-profits and business enterprises. This acquisition is another step in the
expansion of the financial solutions available to our customers by providing
professional management of their investment assets.

In December, we created The West Bancorporation Foundation. The Foundation
is a non-profit charitable foundation that will be the vehicle we use to make
charitable contributions in the communities we serve. The initial funding for
the Foundation was the result of a tragic event that occurred at West Bank last
fall. On October 16, an officer of the bank died while attending a charitable
function at the main bank. The proceeds of the "bank owned life insurance"
related to our officer's death were deposited with the Foundation and will be
used for future contributions to causes that enhance the lives of children and
families.

Two people whose insight and direction helped make the Company and West
Bank what it is today will retire from the board of directors this year. David
L. Miller retired from the West Bank board of directors on January 1, 2004 and
will retire from the Company's board of directors at the annual meeting on April
15. Raymond G. Johnston, who retired from the West Bank board on May 14, 2003,
will also retire from the Company's board of directors at the annual meeting.

Ray Johnston joined West Bank in 1984 as senior vice president. He became
executive vice president in 1986 and remained in that position until 1996. Mr.
Johnston joined the West Bank and Company boards in 1986.

Dave Miller joined West Bank in 1961, becoming president in 1968 and
chairman in 1978. He began phasing into retirement when he retired as chairman
and chief executive officer of West Bank in 2001, and as chairman, president and
chief executive officer of the Company in early 2003. Dave Miller has been a
friend and mentor to me for the past twenty years. His advice and counsel have
been invaluable. Fortunately for the Company and me, he will continue to consult
with us into the future.

Even though our accomplishments rank us among the top performing community
banks in the nation we are not satisfied with our 2003 performance and believe
we can improve. We will continue our long-term focus on building customer
relationships and providing financial solutions despite the temptation to enter
into transactions for short-term gain. Our loan portfolio and deposit base will
have steady growth without resorting to lower credit quality or excessive
pricing. We intend to maintain high credit quality and short duration in our
bond portfolio. Each of these decisions position us for the improvement in the
economy we expect will occur in 2004.

Community banks will need ways to distinguish themselves from other
financial institutions to successfully compete in the marketplace and grow. In
2003, we began a strategic planning process that will guide us in future years
to ensure that we are delivering the financial solutions at the locations and
through the delivery methods our customers require.

We are excited about 2004. The economic recovery that is underway, while
slow and fragile, will benefit both our customers and us. We are well prepared
for the inevitable increase in interest rates likely to occur later in the year.
The ongoing uncertainty that must concern all of us is the level of
international unrest and the irrationality of the terrorist mind. Either of
these issues could make 2004 a challenging year.

Our employees continue to be our single most important asset. All of us
look forward to delivering exceptional service and financial solutions to our
customers, and providing the financial results you, our shareholders, expect.

Very truly yours,

/s/ THOMAS E. STANBERRY

Thomas E. Stanberry
Chairman, President and Chief Executive Officer

A CONTINUING TRADITION OF EXCELLENCE

West Bank has been an integral part of Central Iowa's development since
1893 and has built a proud tradition of local excellence in the communities it
serves. That tradition continues today even as West Bank aggressively expands
the menu of financial services it offers and continues to grow geographically.
Management never takes its eye off the expectations that have resulted from the
tradition of excellence and continues to sharpen and refine the very attributes
that have fueled the bank's consistent growth and profitability. As a result,
West Bank is now widely considered the definitive source of innovative financial
solutions by Iowa businesses and individuals alike. The stories of several of
these organizations and their relationships with West Bank are found on the
following pages. It is these stories, and hundreds of others just like them,
that have earned West Bank its reputation for 110 years of innovative financial
solutions.

(PHOTO)

(STROUD, WINTERBOTTOM AND DEGEN PHOTO)

Electrical Engineering & Equipment Company's president,
Jeff Stroud (center), shows off his new headquarters warehouse
facility to West Bank's president, Brad Winterbottom (left)
and West Bank vice president, Ron Degen (right).

"THEY'RE REAL PEOPLE... VERY DOWN-TO-EARTH"

Jeff Stroud's rise to the top at Electrical Engineering & Equipment Company
has taken him through almost every job in the company. He started with the
electrical distribution firm more than 30 years ago working in the warehouse. He
later spent time at the city counter, inside sales, outside sales, sales
management, and vice-president in charge of sales. In 1995, he became president
of the company and in 1998 added the title of CEO. During his rise, the company,
known by many simply as "3E," has grown to $60 million a year in sales and 190
employees. 3E currently ranks in the top 80 electrical distribution companies in
the nation. Jeff credits his company's banking relationship with West Bank for
part of their success. "They're an unusual bank, in that they make it
surprisingly easy for us, even when it involves millions of dollars," he says.
In 2001, 3E moved into a new 100,000 square-foot office/warehouse building.
"West Bank was a big part of that move," explains Jeff. 3E has two facilities in
Des Moines and branch locations in Waterloo, Burlington, and Davenport. "As
we've grown, our comfort level with West Bank has gone straight up," says Jeff.
"They can compete with the big guys, but they're not intimidating. They're real
people... very down-to-earth."

"THEY MAKE EVERYTHING EASY AND FRIENDLY"

Tim Taylor and Mike McCreedy understand the difference a strong banking
relationship can make to a small business. McCreedy Taylor Construction
specializes in building new residential homes in the Iowa City/Johnson County
area. "A real trust has developed between our company and West Bank," says Tim
Taylor. "I'm not just an account number in their computer. I'm Tim Taylor, they
know me, and they make it easy for me to do business with them." In 1982, Tim, a
framing contractor, and Mike McCreedy, a trim carpenter, joined forces to form
McCreedy Taylor Construction. Their company uses West Bank for construction
loans, checking accounts, safe deposit box services, etc.. "If your business
needs money and you have a viable reason to borrow, West Bank is going to make
it easy for you to get the money." Tim points to the friendly, personal
attention he receives from the West Bank staff, particularly Lynn Rowat, Kelly
Larson and Maggie Kiewiet. "We've developed a good rapport," he explains. "It
all boils down to trust. They trust me and I trust them to do what's best for
me. They make everything easy and friendly." What does he appreciate most about
West Bank? "They have that down-home feeling and they always make you feel like
part of the team. I like that."

(TAYLOR AND ROWAT PHOTO)

Tim Taylor (left) of McCreedy Taylor Construction shares blueprints of a
current project with West Bank's Iowa City market president, Lynn Rowat.

(DEEGAN, AUGUSTINE AND MEARS PHOTO)

Dr. Jerry Deegan (left), president of Dowling Catholic High School,
with VMF Capital's Jon Augustine (middle) and Don Mears (right).

"THEY HELP US BE GOOD STEWARDS"

Dr. Jerry Deegan, president of Dowling Catholic High School in West Des
Moines, answers to a higher authority. "Our mission is to help kids get to
heaven," he says matter-of-factly, but adds that it involves building excellent
partnerships with parents to offer students a great education so they can grow
up to make a difference in the world. Each year, Dowling's 1,145 students
account for more than 20,000 hours of local community service as part of their
high school experience. Dr. Deegan wonders aloud how the community would be
different without this commitment. "We want to create great citizens who will
become great leaders. To do that, we have to be good stewards of our resources."
Dowling's goal is at the core of the school's relationship with West Bank and
VMF Capital, the company's investment advisory subsidiary. "We work with West
Bank and VMF Capital to help us be good stewards," explains Dr. Deegan. Dr.
Deegan describes Dowling as "a very unique community." There's a strong
connection between students, parents, alumni, and contributors. "It's a
constantly growing, changing, healthy community," says Dr. Deegan. "And
everything we do is focused on our mission." He says VMF Capital and West Bank
not only understand Dowling's mission, but they believe in it. "They're good
listeners, good focusers, and good communicators. They're good team members."

"A GOOD CORPORATE NEIGHBOR AND FRIEND"

When the community calls, West Bank answers. Just ask Gloria Gray,
executive director of Children and Families of Iowa. Her organization works to
improve the well-being of children and support the healthy development of
families through safe, stable and nurturing environments. "West Bank has helped
us carry out our mission," she says. "We need the caring support of the
community and West Bank has been a good partner." Dave Milligan, West Bank
chairman and CEO, is a member of the foundation's board of directors and West
Bank vice president, Lou Anderson, is heavily involved in many of the
organization's fund raising activities. Children and Families of Iowa also has a
banking relationship with West Bank. "We like the concept of banking with a
local bank," Gloria says. "They're just great, down-to-earth people we enjoy
working with." She is convinced that West Bank truly believes in CFI's mission.
"They understand what being our partner is all about and they work well with us.
They obviously believe in giving back to the community and that makes them a
good corporate neighbor and friend."

"WEST BANK'S VOLUNTEERS ARE AMAZING"

West Bank's relationship with Valley Junction goes back 110 years to the
day the bank first opened its doors in the small railroad community on the
western edge of Des Moines. In 1938, Valley Junction became West Des Moines and
today, West Bank continues to be an active participant in the development of one
of Iowa's fastest growing cities, by supporting the Historic Valley Junction
Foundation and its activities. Vicki Davis, executive director of the
foundation, points to West Bank's financial support as well as its volunteer
efforts for the annual Valley Arts Festival. "Kathy McNamara leads the volunteer
efforts of several of her fellow West Bank co-workers," explains Vicki. "West
Bank's volunteers are amazing, offering services that would never be expected
and rarely requested." In 2003, West Bank expanded its support of the Historic
Valley Junction Foundation's activities to include the Valley Junction Arts
Market as well as the Valley Junction Arts Festival. "West Bank provides the
stability needed to continue these festivals," says Vicki. "They're a true
partner and their financial support, as well as their volunteer efforts, are
very much appreciated and will ensure our continued success."

"THEY BELIEVE IN GIVING BACK TO THE COMMUNITY."

(PHOTO)

(MILLIGAN, ANDERSON AND GRAY PHOTO)

West Bank chairman & CEO, Dave Milligan (left), West Bank vice president,
Lou Anderson, and Gloria Gray, executive director of Children & Families of
Iowa, lend a helping hand to children being served by the agency.

(DAVIS AND MCNAMARA PHOTO)

Vicki Davis (left), executive director of the Historic Valley Junction
Foundation, works closely with West Bank's Kathy McNamara (right) and a host
of other West Bank volunteers to make the foundation's events a success.

WEST BANCORPORATION
BOARD OF DIRECTORS

ORVILLE E. CROWLEY 1
President, Linden Lane Farms

RAYMOND G. JOHNSTON 2
Vice Chairman

ROBERT G. PULVER 3
President & CEO, All State Industries, Inc.

FRANK W. BERLIN 4
President, Frank W. Berlin & Associates

MICHAEL A. COPPOLA 5
President, Coppola Enterprises, Inc.

CONNIE WIMER 6
Publisher, Business Publications

DAVID R. MILLIGAN 7
Executive Vice President

JACK G. WAHLIG 8
President, Integrus Financial, L.C.

STEVEN G. CHAPMAN 9
President & CEO, ITAGroup, Inc.

THOMAS E. STANBERRY 10
Chairman, President, & CEO

DAVID L. MILLER
Chairman Emeritus
Not Pictured

(WEST BANCORPORATION BOARD OF DIRECTORS PHOTO)

WEST BANCORPORATION &
WEST BANK EXECUTIVE OFFICERS

SHAREN K. SURBER 1

BRAD L. WINTERBOTTOM 2

THOMAS E. STANBERRY 3

DAVID R. MILLIGAN 4

DOUGLAS R. GULLING 5

JOYCE A. CHAPMAN 6

(WEST BANCORPORATION & WEST BANK EXECUTIVE OFFICERS PHOTO)

WEST BANCORPORATION, INC. & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS December 31, 2003 & 2002

ASSETS 2003 2002
-------------- --------------

Cash and due from banks $ 27,786,795 $ 23,022,298
Federal funds sold and other short-term investments 54,287,004 158,191,770
CASH AND CASH EQUIVALENTS 82,073,799 181,214,068

Securities available for sale 178,308,941 70,862,435
Securities held to maturity 91,406,205 138,299,566
Federal Home Loan Bank stock, at cost 5,197,600 3,129,700
Loans, net of allowance for loan losses 593,379,820 483,959,328
Premises and equipment, net 3,683,020 1,394,649
Accrued interest receivable 5,878,880 5,204,203
Goodwill and other intangible assets 16,900,487 47,730
Bank-owned life insurance 20,386,714 --
Other assets 3,396,145 2,004,384

$1,000,611,611 $ 886,116,063

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
Deposits:
Noninterest bearing demand $ 172,070,832 $ 145,208,492
Savings and interest bearing demand 403,060,980 338,775,544
Time, in excess of $100,000 63,463,030 88,592,994
Other time 66,479,171 40,521,470
TOTAL DEPOSITS $ 705,074,013 $ 613,098,500

Federal funds purchased and securities sold
under agreements to repurchase 85,442,675 127,418,671
Other short-term borrowings 9,141,973 5,096,872
Accrued expenses and other liabilities 2,032,291 3,077,858
Trust preferred securities 20,000,000 --
Long-term borrowings 86,024,315 51,600,000
TOTAL LIABILITIES 907,715,267 800,291,901

STOCKHOLDERS' EQUITY
Common stock, no par value; authorized
50,000,000 shares; shares issued and
outstanding:
2003 and 2002 16,060,271 3,000,000 3,000,000
Additional paid-in capital 32,000,000 32,000,000
Retained earnings 56,796,771 49,792,716
Accumulated other comprehensive income 1,099,573 1,031,446
TOTAL STOCKHOLDERS' EQUITY 92,896,344 85,824,162

$1,000,611,611 $ 886,116,063

WEST BANCORPORATION, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME Years Ended December 31, 2003, 2002 & 2001

2003 2002 2001
------------ ------------ ------------

INTEREST INCOME:
Loans $ 32,633,401 $ 33,035,194 $ 39,322,663
Securities:
U.S. Treasury, government agencies and corporations 4,727,838 6,764,475 9,945,440
States and political subdivisions 1,725,250 1,625,568 1,570,671
Other 3,111,436 1,404,173 394,246
Federal funds sold and other short-term investments 1,263,190 1,810,348 3,381,198
TOTAL INTEREST INCOME 43,461,115 44,639,758 54,614,218
INTEREST EXPENSE:
Demand and savings deposits 3,084,033 3,755,205 7,069,318
Time deposits 2,665,970 5,084,437 9,007,791
Federal funds purchased and securities
sold under agreements to repurchase 1,503,051 1,929,097 5,971,626
Other short-term borrowings 8,564 29,622 90,122
Trust preferred securities 649,280 -- --
Long-term borrowings 3,228,493 2,851,210 2,813,531
TOTAL INTEREST EXPENSE 11,139,391 13,649,571 24,952,388

NET INTEREST INCOME 32,321,724 30,990,187 29,661,830

PROVISION FOR LOAN LOSSES 850,000 910,000 1,062,500
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 31,471,724 30,080,187 28,599,330
NONINTEREST INCOME:
Service charges on deposit accounts 4,811,335 4,527,170 4,463,921
Trust services 507,000 569,634 531,495
Investment advisory fees 503,899 -- --
Increase in cash value of bank-owned life insurance 666,785 -- --
Proceeds from bank-owned life insurance 821,254 -- --
Net realized gains from securities available for sale 299,562 115,939 --
Other income 1,695,386 1,401,459 1,318,640
TOTAL NONINTEREST INCOME 9,305,221 6,614,202 6,314,056
NONINTEREST EXPENSES:
Salaries and employee benefits 7,700,608 6,408,438 5,981,699
Occupancy 1,582,660 1,310,971 1,225,553
Data processing 1,130,131 1,006,272 993,274
Charitable contributions 1,483,516 106,552 117,648
Other expenses 2,797,331 2,388,294 2,161,733
TOTAL NONINTEREST EXPENSE 14,694,246 11,220,527 10,479,907

INCOME BEFORE INCOME TAXES 26,082,699 25,473,862 24,433,479

INCOME TAXES 8,800,071 9,098,059 8,697,039
NET INCOME $ 17,282,628 $ 16,375,803 $ 15,736,440
EARNINGS PER SHARE:
Basic $ 1.08 $ 1.02 $ 0.98

WEST BANCORPORATION, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
STOCKHOLDERS' EQUITY Years Ended December 31, 2003, 2002 & 2001

2003 2002 2001
------------ ------------ ------------

COMMON STOCK
Beginning of year balance $ 3,000,000 $ 3,000,000 $ 3,000,000
End of year balance 3,000,000 3,000,000 3,000,000

ADDITIONAL PAID-IN CAPITAL
Beginning of year balance 32,000,000 32,000,000 32,000,000
End of year balance 32,000,000 32,000,000 32,000,000

RETAINED EARNINGS
Beginning of year balance 49,792,716 43,374,281 37,274,004
Net income 17,282,628 16,375,803 15,736,440
Dividends on common stock; per share
amounts 2003 $0.64, 2002 $0.62, 2001 $0.60 (10,278,573) (9,957,368) (9,636,163)
End of year balance 56,796,771 49,792,716 43,374,281

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Beginning of year balance 1,031,446 637,980 (1,428,660)
Unrealized gain on securities, net of tax 68,127 393,466 2,066,640
End of year balance 1,099,573 1,031,446 637,980

TOTAL STOCKHOLDERS' EQUITY $ 92,896,344 $ 85,824,162 $ 79,012,261

CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME Years Ended December 31, 2003, 2002 & 2001

2003 2002 2001
------------ ------------ ------------

NET INCOME $ 17,282,628 $ 16,375,803 $ 15,736,440

OTHER COMPREHENSIVE INCOME,
Unrealized gains on securities, net of tax 68,127 393,466 2,066,640

COMPREHENSIVE INCOME $ 17,350,755 $ 16,769,269 $ 17,803,080

FORM 10-K

A copy of the Company's annual report to the Securities and Exchange
Commission on Form 10-K will be mailed when available without charge to
shareholders upon written request to the Chief Financial Officer. The
annual report will also be available on the Securities and Exchange
Commission's website at
http://www.sec.gov/edgar/searchedgar/webusers.htm and through a link on
the Company's investor relations web page at www.westbankiowa.com.

WEST BANCORPORATION, INC. & SUBSIDIARIES

STOCK INFORMATION

West Bancorporation, Inc. common stock is traded on the Nasdaq National
Market and quotations are furnished by the Nasdaq System. There were
337 common stockholders of record on December 31, 2003, and an
estimated 600 additional beneficial holders whose stock was held in
street name by brokerage houses.

MARKET AND DIVIDEND INFORMATION

2003 HIGH LOW DIVIDENDS
---- --------- --------- ---------

1st quarter $ 17.54 $ 14.35 $ 0.16
2nd quarter 19.61 15.77 0.16
3rd quarter 18.82 16.56 0.16
4th quarter 18.54 17.05 0.16

$ 0.64
2002
----

1st quarter $ 14.00 $ 11.50 $ 0.15
2nd quarter 18.00 13.15 0.15
3rd quarter 16.50 14.38 0.16
4th quarter 15.63 14.40 0.16

$ 0.62

The prices shown are the high and low sale prices for the Company's
common stock. The market quotations, reported by Nasdaq, do not include
retail markup, markdown or commissions.

NASDAQ SYMBOL: WTBA WALL STREET JOURNAL AND OTHER NEWSPAPERS: WestBcp

TRANSFER AGENT/DIVIDEND PAYING AGENT MARKET MAKERS GENERAL COUNSEL AUDITOR
------------------------------------ ------------- --------------- -------

Illinois Stock Transfer Company Citigroup Global Markets Ahlers & Cooney P.C. McGladrey & Pullen, LLP
209 West Jackson Boulevard, Suite 903 Goldman, Sachs & Co. 100 Court Avenue 400 Locust Street
Chicago, Illinois 60606-6905 Hill, Thompson, Magid & Co. Suite 600 Suite 640
800-757-5755 Howe Barnes Investments, Inc. Des Moines, Iowa 50309 Des Moines, Iowa 50309
www.illinoisstocktransfer.com Keefe, Bruyette & Woods, Inc.
Knight Equity Markets, L.P.
Sandler O'Neill & Partners
Schwab Capital Markets
Wachovia Securities

INDEPENDENT AUDITOR'S REPORT

The Board of Directors of West Bancorporation, Inc.:

We have audited, in accordance with auditing standards generally
accepted in the United States of America, the consolidated balance
sheets of West Bancorporation, Inc. and subsidiaries as of December 31,
2003, and 2002, and the related consolidated statements of income,
stockholders' equity, comprehensive income and cash flows (not
presented herein) for each of the three years in the period ended
December 31, 2003 and in our report dated January 9, 2004, we expressed
an unqualified opinion on those consolidated financial statements.

In our opinion, the information set forth in the accompanying condensed
consolidated financial statements appearing in this report is fairly
presented, in all material respects, in relation to the consolidated
financial statements from which it has been derived.

/s/ MCGLADREY & PULLEN, LLP

Des Moines, Iowa
January 9, 2004

WEST BANCORPORATION, INC. AND SUBSIDIARIES' BOARDS OF DIRECTORS

JON K. AUGUSTINE (3) DAVID L. MILLER (1,2)
Managing Director, WB Capital Management Inc. Chairman Emeritus, West Bancorporation, Inc.
Vice Chairman, West Bank
FRANK W. BERLIN (1,2,6,7)
President, Frank W. Berlin & Associates DAVID R. MILLIGAN (1,2,3)
Chairman & CEO, West Bank
THOMAS A. CARLSTROM (2) Executive Vice President, West Bancorporation, Inc.
Neurosurgeon
GEORGE D. MILLIGAN (2)
JOYCE A. CHAPMAN (2,3) President, The Graham Group
Executive Vice President, West Bank
Vice President & Treasurer, West Bancorporation, Inc. THOMAS E. MYERS (3)
Executive Vice President & Managing Director,
STEVEN G. CHAPMAN (1,2,7) WB Capital Management Inc.
President & CEO, ITAGroup, Inc.
ROBERT G. PULVER (1,2,6,7)
CHRISTOPHER C. COOK (3) President & CEO, All State Industries, Inc.
Managing Director, WB Capital Management Inc.
KEVIN J. SMITH (3)
MICHAEL A. COPPOLA (1,2,5) Senior Vice President, West Bank
President, Coppola Enterprises, Inc.
THOMAS E. STANBERRY (1,2,3)
ORVILLE E. CROWLEY (1,4,6) Chairman, President, & CEO, West Bancorporation, Inc.
President, Linden Lane Farms Vice Chairman, West Bank
Chairman, WB Capital Management Inc.
SCOTT D. ELTJES (3)
Executive Vice President & Managing Director, JACK G. WAHLIG (1,2,5)
WB Capital Management Inc. President, Integrus Financial, L.C.

KAREN J. GREEN (3) CONNIE WIMER (1,2,5,6)
Managing Director, WB Capital Management Inc. Publisher, Business Publications

DOUGLAS R. GULLING (3) BRAD L. WINTERBOTTOM (2,3)
Chief Financial Officer, West Bancorporation, Inc. President, West Bank
& West Bank; Treasurer, WB Capital Management Inc.
----------
HARLAN D. HOCKENBERG (4)
Attorney, Sullivan & Ward, P.C. (1) Director of West Bancorporation, Inc.
(2) Director of West Bank
RAYMOND G. JOHNSTON (1) (3) Director of WB Capital Management Inc.
Vice Chairman, West Bancorporation, Inc. (4) Director Emeritus of West Bank
(5) Audit Committee
PAUL R. KNAPP (4) (6) Compensation Committee
Vice President, Knapp Properties, Inc. (7) Nominating & Corporate Governance Committee

WEST BANK OFFICERS

SHAREN K. SURBER JILL R. FERGUSON GEORGANN R. MEFFERD JEFFERY C. WISECUP
Executive Vice President Vice President Vice President & Trust Officer
Compliance Officer
LYNN E. ROWAT DALE L. HILTON GEOFFREY J. GADE
Market President - Iowa City Vice President MARC J. MEYER First Vice President
Vice President
RODNEY S. WEIKERT ALICE A. JENSEN PAM K. KELLER
Senior Vice President - Real Estate Vice President & Secretary, ALLEN R. PETERSEN First Vice President
West Bank Vice President
Secretary, West Bancorporation
& WB Capital Management Inc.
LOUIS H. ANDERSON JOHN F. MCKINNEY III
Vice President J. CRAIG KROUCH ROGER L. REED First Vice President &
Vice President Vice President Assistant Counsel
MICHELE A. BELDEN
Vice President KEITH A. KURTH JOHN J. STONE KENT C. MERICLE
Vice President Vice President First Vice President
RUSSELL W. BREAZEALE
Vice President CATHERINE L. MACKAY KAY A. TRAGER JOHN A. POLEY
Vice President - Marketing Vice President First Vice President
RONALD H. DEGEN
Vice President DANIEL L. MCNACE MARIE I. ROBERTS HAN WU
Vice President Controller First Vice President

WEST BANK LOCATIONS

DES MOINES MARKET

Main Bank
1601 22nd o West Des Moines

Grand
125 Grand Ave o West Des Moines

Urbandale
3255 99th St o Urbandale

North
3839 Merle Hay Rd o Des Moines

City Center
809 6th Ave o Des Moines

Skywalk
501 Locust #214 o Des Moines

East
2742 Hubbell o Des Moines

South
SW 9th & Watrous o Des Moines

IOWA CITY MARKET

Downtown
229 S. Dubuque Street o Iowa City

East
1910 Lower Muscatine Road o Iowa City

CUSTOMER SERVICE

Des Moines: 515.222.2360
Iowa City: 319.351.4121
24 Hour Telephone Banking:
515.222.0314 / toll free 1.866.815.7858

VMF CAPITAL

1370 NW 114th St 118 Third Ave SE
Suite 202 Suite 700
Clive, IA 50325 Cedar Rapids, IA 52401

Phone: 1.800.343.7084

WEST BANCORPORATION

1601 22nd Street
Suite 209
West Des Moines, IA 50266

Phone: 515.222.2300

www.westbankiowa.com

Member FDIC (EQUAL HOUSING LENDER LOGO)

We want you to know: Investment products provided by VMF Capital

ARE NOT MAY LOSE ARE NOT BANK
FDIC INSURED VALUE GUARANTEED

Accounts offered through VMF Capital, a non-bank affiliate of West
Bancorporation.