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West Bancorporation Inc – ‘ARS’ for 12/31/05

On: Tuesday, 3/7/06, at 11:18am ET · Effective: 3/7/06 · For: 12/31/05 · Accession #: 950137-6-2656 · File #: 0-49677

  As Of                Filer                Filing    For·On·As Docs:Size              Issuer               Agent

 3/07/06  West Bancorporation Inc           ARS        12/31/05    1:36K                                    Bowne Boc/FA

Annual Report to Security Holders
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: ARS         2005 Annual Report                                    20±    76K 

ARS 1st “Page” of 12 TOC ↑Top Previous Next ↓Bottom Just 1st
 
(GRAPHIC)                                                                       

                                              FINANCIAL SOLUTIONS THAT ADD VALUE

                                                      (WEST BANCORPORATION LOGO)

                                  West Bancorporation, Inc. | 2005 Annual Report

ARS 2nd “Page” of 12 TOC 1st Previous Next ↓Bottom Just 2nd
                                        WEST BANCORPORATION, INC. & SUBSIDIARIES

FINANCIAL HIGHLIGHTS            (dollars in thousands, except per share amounts)

                                                        [Enlarge/Download Table]

                                 2005         2004         2003        2002       2001   
                              ----------   ----------   ----------   --------   -------- 
                                                                                         
YEAR-END BALANCES                                                                        
   Assets                     $1,244,380   $1,148,435   $1,000,612   $886,116   $815,970 
   Investment securities         274,718      347,052      274,913    212,292    189,473 
   Loans                         867,504      725,845      599,355    488,453    493,399 
   Non-performing loans            4,912          860        1,793      1,899      1,274 
   Deposits                      944,893      865,932      705,074    613,099    571,730 
   Stockholders' equity          104,521       97,620       92,896     85,824     79,012 

AVERAGE BALANCES                                                                         
   Assets                      1,192,208    1,066,511      932,907    837,938    837,798 
   Investment securities         313,015      301,718      246,823    213,361    203,137 
   Loans                         785,164      645,875      531,033    482,013    495,825 
   Deposits                      862,376      764,741      608,544    568,625    547,247 
   Stockholders' equity          100,392       94,209       88,742     81,904     74,977 

RESULTS OF OPERATIONS                                                                    
   Net interest income            38,373       35,647       32,322     30,990     29,662 
   Provision for loan losses       1,775        1,200          850        910      1,063 
   Noninterest income             11,517       10,706        9,305      6,614      6,314 
   Noninterest expense            18,645       16,968       14,694     11,220     10,480 
   Income before taxes            29,470       28,185       26,083     25,474     24,433 
   Net income                     20,075       18,614       17,283     16,376     15,736 

PER COMMON SHARE(1)                                                                      
   Net income                       1.20         1.11         1.02       0.97       0.93 
   Dividend                        0.640        0.625        0.610      0.590      0.571 
   Book value                       6.26         5.84         5.51       5.09       4.69 
   Closing price                   18.70        17.61        16.46      14.46      11.24 

RATIOS                                                                                   
   Return on average equity        20.00%       19.76%       19.48%     19.99%     20.99%
   Return on average assets         1.68%        1.75%        1.85%      1.95%      1.88%
   Efficiency ratio                36.22%       35.78%       34.78%     29.19%     28.23%
   Net interest margin              3.62%        3.71%        3.77%      3.97%      3.81%
   Average equity as %                                                                   
      of average assets             8.42%        8.83%        9.51%      9.77%      8.95%
   Allowance for loan losses                                                             
      as % of average loans         0.97%        1.01%        1.13%      0.93%      0.86%
   Net charge-offs as %                                                                  
      of average loans              0.09%        0.10%        0.05%      0.14%      0.21%
   Non-performing loans                                                                  
      as % of loans                 0.57%        0.12%        0.30%      0.39%      0.26%

(1)  In July 2004, the Company's Board of Directors authorized a 5% common stock
dividend. Per share numbers in this report have been adjusted for that
stock dividend.                                                       

2                                                                               

ARS 3rd “Page” of 12 TOC 1st Previous Next ↓Bottom Just 3rd
Shareholders' Letter                                                            

DEAR SHAREHOLDERS:                                                              

2005 was another successful year for West Bancorporation, Inc. Net income for   
the Company was $20,075,000 or $1.20 per share, up 7.8 percent from $18,614,000 
or $1.11 per share in 2004. Return on average equity was 20 percent and return  
on average assets was 1.68 percent. The overall efficiency ratio was 36.22      
percent, while the efficiency ratio for our subsidiary West Bank was 32.19      
percent.                                                                        

We continue to believe that working in partnership with each of our four        
stakeholders is the key to our success. In 2005 we accomplished the following.  

OUR SHAREHOLDERS. We paid a cash dividend of $.64 per share for a dividend yield
of 3.42 percent based on the year end closing stock price of $18.70. The total  
return on an investment in our stock from January 1, 2005 through December 31,  
2005 was 10 percent compared to the total return of the SNL Midwest Bank Index  
of -3.6 percent. In 2005 we expanded the use of our new profitability and asset 
liability management system which will allow us to make better use of our       
income-producing assets for the benefit of our shareholders.                    

OUR EMPLOYEES. 2005 was noteworthy for the installation of systems to create and
manage checking and savings accounts for our clients in a manner that will allow
our employees to spend more time assisting our clients and less time managing   
paperwork. We completed the remodeling of our 22nd Street bank, which included  
the expansion of our employee break room, the creation of our conference center 
and new trust facilities, and updating the first floor client area. Our employee
mission continues to be to provide a quality work environment in which our      
employees can serve our clients in a fun, competitive and efficient manner.     

OUR CLIENTS. The entities profiled in this report, Lutheran Services in Iowa and
The Mansion typify the close relationships we have with our many clients. Client
surveys, conducted in 2005, reinforced the concept that close relationships and 
excellent service are expected by our clients. To improve our client service we 
implemented a mystery shopping program in all of our branch offices. We saw     
immediate results. As our mystery shopping results improved we experienced fewer
client problems and an increase in positive survey results from our clients.    

OUR COMMUNITY. In 2005, we continued our focus on funding charitable            
contributions and community service. Through the West Bancorporation Foundation,
we funded 56 charitable grants totaling $204,000. Several community projects    
were accomplished as our employees contributed approximately 7,500 hours to     
community service in our markets. As described on page six of our Annual Report,
these efforts were recognized by the United Way of Central Iowa with its 2005   
Impact Award. Receipt of the Impact Award was a proud moment for all of us.     

On December 30th, we completed the purchase of Investors Management Group, Ltd. 
(IMG). IMG is a registered investment advisor headquartered in West Des Moines. 
It currently manages approximately $3.8 billion for a variety of investors. In  
late 2006 IMG will combine with VMF Capital, our other registered investment    
advisor. The combined company will allow us to expand asset management solutions
for our clients and to make progress toward our vision of being the best        
financial solutions company in our markets. We describe this latest acquisition 
in more detail on page four of our Annual Report.                               

In 2006, we will focus on building client relationships and providing financial 
solutions through superior service and a collaborative approach from each of our
business lines. We will also focus on enhancing the work experience of our      
employees in a manner that will provide better solutions for our clients and    
increase our shareholder value. Our market share expansion in both community    
banking and the asset management business will continue as we deepen the        
relationships with our current clients.                                         

2006 will be a challenging year. We expect the increase in short-term interest  
rates to abate early in the year and the rate of inflation to remain relatively 
low. We also anticipate the level of foreign investment in the U.S. Treasury    
market will keep the yield curve flat or inverted throughout the year, which    
will reduce the largest driver of our net income - the net interest income from 
the bank. We have implemented steps to reduce expenses in all business lines.   
This expense reduction, when combined with the non-interest income from the bank
and our asset management companies, should produce positive results for us in   
2006.                                                                           

All of us at West Bank, VMF Capital and IMG look forward to delivering          
exceptional service and financial solutions to our clients, and providing the   
financial results that you, our shareholders, expect.                           

                 Very truly yours,

                       /s/ Thomas E. Stanberry
                                        ----------------------------------------
                   Thomas E. Stanberry
                             Chairman, President and Chief
                 Executive Officer

                                                                               3

ARS 4th “Page” of 12 TOC 1st Previous Next ↓Bottom Just 4th
Adding value to our relationships with our customers

"IMG HAS CONSISTENTLY DELIVERED SOLID PERFORMANCE"                              

  The acquisition of Investors Management Group (IMG) in 2005 has added an
important component to West Bancorporation's ability to offer customers a       
complete, one-stop financial solutions resource. The acquisition, which became  
final in December of 2005, complements the money management services currently  
offered by the West Bank trust department and through our wholly-owned          
subsidiary WB Capital Management Inc., doing business as VMF Capital.           

    "This transaction expands our comprehensive asset management solutions for
business and high net worth individual customers," explained Thomas E.          
Stanberry.                                                                      

 (GROUP PHOTO)

 (l to r) Tom Stanberry, West Bancorporation chairman, president and
CEO; Jeff Lorenzen, president and chief investment officer of IMG; and
Scott Eltjes, managing director and head of VMF Capital, gather at
 IMG's West Des Moines office.

   With assets under management of more than $3.8 billion, IMG's strength is
in managing fixed income assets. VMF Capital, which specializes in equity asset 
management, has an additional $800 million in assets under management. IMG      
currently has 26 employees in its West Des Moines Office. The company was       
purchased from Rockford, Illinois-based AMCORE Financial, Inc. AMCORE Chairman, 
President and CEO Kenneth E. Edge said, "IMG consistently has delivered solid   
fixed-income performance and will be a good fit for West Bancorporation.        
Headquartered in Iowa, West Bancorporation can better facilitate the expansion  
of Des Moines-based IMG's institutional investment business."                   

  Agreeing with that assessment, Stanberry further commented, "For over 20
years, IMG has been serving customers in the upper midwest, and we are pleased  
to bring its ownership back home to Iowa. We have great respect for IMG's       
business and team."                                                             

The acquisition fits nicely into the wealth management structure being
built by West Bancorporation. The West Bank trust department specializes in     
helping individuals and families maximize their financial resources through     
financial planning, asset management, trust administration and estate planning. 
VMF Capital specializes in portfolio management services for individual         
investors, retirement plans, corporations, foundations and endowments primarily 
through domestic equity and fixed income strategies.                            

     IMG will enhance the wealth management structure already in place, focusing
on long-term relationships with insurance companies, foundations and endowments,
public agencies, institutional financial consultants, and high net worth        
individuals by managing portfolios primarily comprised of investment-grade      
fixed-income assets.                                                            

     "West Bancorporation's growth will continue to be driven by the addition of
products and services that add value to our customers," said Stanberry. "IMG    
fits perfectly into that profile."                                              

4                                                                               

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 (GROUP PHOTO)

(l to r) Tina Gordinier, VMF Capital; Carol Stone, West Bank trust
department; Deb Gay and Mike Buck, Luthern Services in Iowa.

"THEY'VE BEEN QUICK TO UNDERSTAND OUR NEEDS AND BRING US SOLUTIONS"             

   Lutheran Services in Iowa (LSI) is the state's largest private non-profit
provider of human services. LSI improves the lives of more than 40,000 Iowans   
every year with residential treatment, services to families, home health care,  
early childhood programs, adoption services, refugee resettlement, services for 
persons with disabilities, disaster response, and economic development community
programs. All this is accomplished with 750 employees in locations throughout   
Iowa.                                                                           

     LSI's ability to continue to provide these crucial services year-to-year is
dependent upon being good financial stewards. To that end, they have turned to  
the West Bank trust department and VMF Capital for asset management assistance. 

     "VMF Capital helps manage a portion of our investment portfolio," explained
Deb Gay, LSI's director of finance. "Our board establishes an investment policy 
which we share with VMF. In turn, VMF invests our assets according to the       
parameters of the policy for the best possible return."                         

 Deb says working with Scott Eltjes and Tina Gordinier at VMF has been a
pleasure. "We recently had some statement and reporting problems," she said.    
"Tina and Scott brought us technical solutions for the problems that have       
resulted in better, more precise, more understandable summaries for our board   
and investment committee to use."                                               

They even presented LSI's investment committee with suggestions for   
modifying and improving the organization's investment policy. "They've been     
quick to understand our needs and bring us solutions," she said.                

  The organization and VMF also work with Carol Stone in West Bank's trust
department, which maintains custody of the securities and provides reporting    
services. "We're glad they continue to place their confidence in us," commented 
Carol Stone who heads the West Bank trust department. "We look forward to       
working with them for many years to come."                                      

"THEY'RE VERY PROACTIVE IN ANTICIPATING OUR NEEDS"                              

     The Mansion is a fine furnishings and interior design firm that has a long,
successful track record. Originally opened in Iowa City in 1980 by Chuck        
Skaugstad, Jr., The Mansion has now expanded into the Des Moines market with a  
second location, owned and operated by Ted Irvine. Skaugstad describes the      
second location as the "same business under the same name" which runs as a      
partnership between Skaugstad and Irvine.                                       

     The expansion into the Des Moines market necessitated a new approach to the
company's banking requirements. Skaugstad credits the technology West Bank      
brought to them for making it easier for his company to do business in two      
markets.                                                                        

     "West Bank offered us the flexibility and structuring we needed to transact
business in both locations," he said. "They're very proactive in anticipating   
our needs and presenting us with solutions we may not have even realized        
existed."                                                                       

     Says Lynn Rowat, West Bank Eastern Iowa market president, "The Mansion is a
truly extraordinary place with which we have forged strong personal and business
relationships. If you build strong enough relationships, it really does make a  
difference."                                                                    

"We didn't shop around for a bank when we opened in Des Moines," said 
Irvine. "I knew West Bank was the bank. They've always had a strong reputation  
for local service and fair dealing with businesses like ours."                  

  Irvine works with West Bank vice-president John Humeston. Both Skaugstad
and Irvine had worked with West Bank President Brad Winterbottom for many years.
"We bank at West Bank because of the people," says Irvine. "We tap into the     
expertise of Humeston, Rowat and Winterbottom every chance we get."             

 "I've known Brad Winterbottom and Lynn Rowat for years and so has Ted,"
says Skaugstad. "They're personal friends and exceptional bankers... business   
partners in the best sense."                                                    

 (GROUP PHOTO)

(l to r) Chuck Skaugstad, Jr., owner of The Mansion of Iowa City; Lynn
Rowat, West Bank Eastern Iowa market president; Ted Irvine, owner of
 The Mansion of Des Moines; John Humeston, West Bank vice president,
 Des Moines. The four work together to keep The Mansion growing.

                                                                               5

ARS 6th “Page” of 12 TOC 1st Previous Next ↓Bottom Just 6th
Adding value to the communities we serve

"A GREAT UNITED WAY PARTNER AND SUPPORTER FOR MANY YEARS"                       

   The United Way of Central Iowa awarded West Bank its Impact Award for the
bank's outstanding results and effort in the employee fundraising campaign. The 
award was presented at the United Way's annual awards luncheon attended by more 
than 400 people representing more than 100 companies that support the United    
Way.                                                                            

"West Bank has been a great United Way partner and supporter for many 
years," said Tim Henkel, United Way of Central Iowa vice president of resource  
development. "The participation by their employees is among the highest in the  
community. The company and its employees also give freely of their time to reach
out to the community."                                                          

 (GROUP PHOTO)

Displaying the United Way Impact Award are (l to r) Brad Winterbottom,
 West Bank president; Marc Meyer, West Bank senior vice president; and
 Tom Stanberry, West Bancorporation chairman, president and CEO.

According to Henkel, the awards were developed to recognize the most  
outstanding efforts of the nearly 1,000 companies that participate in the annual
United Way campaign. The panel of judges is made up of employees who coordinate 
their campaign efforts at their various companies and have won these awards in  
the past.                                                                       

Impact Award winners were chosen from a group of community peers from 
nearly 40 local firms for their creative and successful campaign practices.     

"This award recognizes the caring nature and community spirit of our  
employees," said Tom Stanberry. "I think one of the most important factors in   
our winning this award is the 7,500 hours of volunteer time our employees gave  
to the community and that's just in the greater Des Moines area."               

The West Bank branches in Iowa City and Coralville are also making    
significant contributions of both time and resources. "We're committed to       
helping United Way of Johnson County be successful and effective," said Lynn    
Rowat, West Bank Eastern Iowa market president. "We do this by providing        
significant corporate gifts and by providing a forum for our employees to learn 
more about the United Way agencies in Johnson County."                          

  Rowat has a long history of personal involvement with United Way, having
served as volunteer treasurer for the organization for more than nine years in  
the past. Iowa City and Coralville West Bank staff members also currently serve 
on several boards of various United Way of Johnson County organizations.        

"MORE COMMITTED THAN EVER TO GIVING BACK TO THE COMMUNITY"                      

    The West Bancorporation Foundation, Inc. is primarily focused on community
activities that further the well-being of children and young adults through     
initiatives that address issues of health, education, housing and the arts. We  
have had a very long, vested interest in maximizing the health and well-being of
the communities where we do business and the citizens who live there. We remain 
more committed than ever to giving back to the communities that have contributed
to our success. During 2005, the Foundation awarded grants to the following     
organizations:                                                                  

-    AIB College of Business Foundation                               

-    American Diabetes Association 2005 Walk                          

  -    American Red Cross Central Iowa & Grant Wood Chapters for Hurricane
Relief                                                      

-    Beacon of Life                                                   

-    Bernie Lorenz Recovery, Inc.                                     

-    Camp Courageous of Iowa                                          

-    Children and Families of Iowa                                    

-    Coralville Public Library                                        

-    Des Moines Art Center                                            

-    Des Moines Art Festival                                          

-    Des Moines Library Foundation                                    

-    Des Moines Metro Opera                                           

-    Des Moines Public School Library Support Group                   

-    Des Moines Symphony Muggles Making Music                         

-    Dollars for Scholars                                             

-    Domestic Violence Intervention Program                           

-    Dowling Catholic High School - Project Intercept                 

-    Eddie Davis Community Center, Inc.                               

-    Englert Theater                                                  

-    Freedom for Youth Ministries                                     

-    Friends of the Botanical Center                                  

-    Goodwill Industries of Central Iowa                              

-    Goodwill Industries of Southeast Iowa                            

-    Greater Des Moines Habitat for Humanity / Greater Des Moines     
Leadership Institute - Raise the Roof Project               

-    Hawthorne Hill                                                   

-    Hope Ministries                                                  

-    Housing Trust Fund of Johnson County                             

-    Iowa College Foundation Minority Scholarship                     

-    Iowa Senior Games                                                

-    Iowa Valley Habitat for Humanity                                 

-    Iowa Women's Foundation                                          

-    Iowa Youth Chorus                                                

-    Junior Achievement                                               

-    Junior Service League Holiday Home Tour                          

-    Link Associates                                                  

-    Mentor Holiday Parties                                           

-    Metro Arts Alliance                                              

-    Oakridge Neighborhood                                            

-    Old Brick                                                        

-    Old Capitol Museum Renovation                                    

-    Phenix Elementary School                                         

-    Prevent Blindness Iowa                                           

-    Safe Schools for All (GLBT)                                      

-    St. Joseph Emergency Family Shelter                              

-    Salisbury House Foundation                                       

-    Science Center of Iowa                                           

-    Tools for Schools                                                

-    United Way (Corporate Gift)                                      

-    Variety Club of Iowa                                             

-    Winefest 2005                                                    

-    WOI Radio Group                                                  

-    World Food Prize                                                 

-    Young Women's Resource Center                                    

-    Youth Homes of Mid-America                                       

6                                                                               

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DIRECTORS & EXECUTIVE OFFICERS

WEST BANCORPORATION BOARD OF DIRECTORS                                          

(GROUP PHOTO)                                                                   

JACK G. WAHLIG                                                                 1
President, Integrus Financial, L.C.                                             

STEVEN G. CHAPMAN                                                              2
Chairman, President & CEO, ITAGroup, Inc.                                       

THOMAS E. STANBERRY                                                            3
Chairman, President, & CEO                                                      

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

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

GEORGE D. MILLIGAN                                                             6
President, The Graham Group, Inc.                                               

CONNIE WIMER                                                                   7
Publisher, Business Publications                                                

ROBERT G. PULVER                                                               8
President & CEO, All State Industries, Inc.                                     

ORVILLE E. CROWLEY                                                             9
President, Linden Lane Farms                                                    

EXECUTIVE OFFICERS                                                              

(GROUP PHOTO)                                                                   

THOMAS E. STANBERRY                                                            1
Chairman, President & CEO                                                       

JOYCE A. CHAPMAN                                                               2
Executive Vice President, West Bank                                             

SCOTT D. ELTJES                                                                3
Head of VMF Capital                                                             

SHAREN K. SURBER                                                               4
Executive Vice President, West Bank                                             

BRAD L. WINTERBOTTOM                                                           5
President, West Bank                                                            

DOUGLAS R. GULLING                                                             6
Chief Financial Officer                                                         

                                                                               7

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                                        WEST BANCORPORATION, INC. & SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS                             December 31, 2005 & 2004

                                                        [Enlarge/Download Table]

                                                             2005             2004      
                                                        --------------   -------------- 
                                                                                        
ASSETS                                                                                  
   Cash and due from banks                              $   39,424,270   $   18,686,360 
   Federal funds sold and other short-term investments       1,241,044       11,193,099 
                                                        --------------   -------------- 
      CASH AND CASH EQUIVALENTS                             40,665,314       29,879,459 

   Securities available for sale                           270,333,846      281,110,020 
   Securities held to maturity                                      --       59,419,549 
   Federal Home Loan Bank stock, at cost                     4,384,400        6,522,800 
   Loans                                                   867,504,620      725,845,003 
   Allowance for loan losses                                (7,615,188)      (6,526,824)
                                                        --------------   -------------- 
      LOANS, NET                                           859,889,432      719,318,179 
   Premises and equipment, net                               5,650,009        4,309,597 
   Accrued interest receivable                               7,861,647        6,505,047 
   Goodwill and other intangible assets                     27,116,287       16,561,810 
   Bank-owned life insurance                                22,099,259       21,256,138 
   Other assets                                              6,380,103        3,551,911 
                                                        --------------   -------------- 
                                                        $1,244,380,297   $1,148,434,510 
                                                        ==============   ============== 

LIABILITIES AND STOCKHOLDERS' EQUITY                                                    

LIABILITIES                                                                             

   Deposits:                                                                            
      Noninterest bearing demand                        $  207,492,888   $  186,710,245 
      Savings and interest bearing demand                  343,697,862      422,560,048 
      Time, in excess of $100,000                          269,057,298      193,716,248 
      Other time                                           124,645,285       62,945,833 
                                                        --------------   -------------- 
      TOTAL DEPOSITS                                       944,893,333      865,932,374 

   Federal funds purchased and securities sold                                          
      under agreements to repurchase                        84,748,150       74,543,033 
   Other short-term borrowings                               4,732,124        4,668,451 
   Long-term borrowings                                     99,187,766      101,892,773 
   Accrued expenses and other liabilities                    6,298,408        3,777,903 
                                                        --------------   -------------- 
      TOTAL LIABILITIES                                  1,139,859,781    1,050,814,534 
                                                        --------------   -------------- 

STOCKHOLDERS' EQUITY                                                                    
   Common stock, no par value; authorized                                               
      50,000,000 shares; 16,701,843 shares issued and                                   
      outstanding at December 31, 2005 and 2004              3,000,000        3,000,000 
   Additional paid-in capital                               32,000,000       32,000,000 
   Retained earnings                                        71,950,620       62,565,046 
   Accumulated other comprehensive income (loss)            (2,430,104)          54,930 
                                                        --------------   -------------- 
      TOTAL STOCKHOLDERS' EQUITY                           104,520,516       97,619,976 
                                                        --------------   -------------- 
                                                        $1,244,380,297   $1,148,434,510 
                                                        ==============   ============== 

8                                                                               

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                                        WEST BANCORPORATION, INC. & SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME(1)  Years Ended December 31, 2005, 2004 & 2003

                                                        [Enlarge/Download Table]

                                                               2005         2004         2003   
                                                           -----------  -----------  -----------
                                                                                                
INTEREST INCOME:                                                                                
   Loans                                                   $50,361,321  $37,168,986  $32,633,401
   Securities:                                                                                  
      U.S. Treasury, government agencies and corporations    6,902,778    6,408,522    4,727,838
      States and political subdivisions                      4,098,811    2,399,378    1,725,250
      Other                                                  1,699,978    2,673,791    3,111,436
   Federal funds sold and other short-term investments         411,866      947,993    1,263,190
                                                           -----------  -----------  -----------
      TOTAL INTEREST INCOME                                 63,474,754   49,598,670   43,461,115

INTEREST EXPENSE:                                                                               
   Demand and savings deposits                               5,482,295    3,681,439    3,084,033
   Time deposits                                            10,458,667    3,759,910    2,665,970
   Federal funds purchased and securities                                                       
      sold under agreements to repurchase                    2,484,291      857,050    1,503,051
   Other short-term borrowings                               1,682,784      444,120        8,564
   Long-term borrowings                                      4,993,772    5,209,148    3,877,773
                                                           -----------  -----------  -----------
      TOTAL INTEREST EXPENSE                                25,101,809   13,951,667   11,139,391
                                                           -----------  -----------  -----------

      NET INTEREST INCOME                                   38,372,945   35,647,003   32,321,724

PROVISION FOR LOAN LOSSES                                    1,775,000    1,200,000      850,000
                                                           -----------  -----------  -----------
      NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES   36,597,945   34,447,003   31,471,724
                                                           -----------  -----------  -----------
NONINTEREST INCOME:                                                                             
   Service charges on deposit accounts                       4,659,509    4,968,077    4,984,373
   Trust services                                              820,292      631,500      507,000
   Investment advisory fees                                  3,349,386    2,682,690      503,899
   Increase in cash value of bank-owned life insurance         843,122      869,423      666,785
   Proceeds from bank-owned life insurance                          --           --      821,254
   Net realized gains from securities available for sale       290,941      198,877      299,562
   Other income                                              1,553,693    1,355,342    1,522,348
                                                           -----------  -----------  -----------
      TOTAL NONINTEREST INCOME                              11,516,943   10,705,909    9,305,221
                                                           -----------  -----------  -----------
NONINTEREST EXPENSE:                                                                            
   Salaries and employee benefits                           10,307,508    9,680,139    7,700,608
   Occupancy                                                 2,497,104    2,056,755    1,582,660
   Data processing                                           1,428,509    1,360,724    1,130,131
   Charitable contributions                                    146,990      147,584    1,483,516
   Other expenses                                            4,264,663    3,722,923    2,797,331
                                                           -----------  -----------  -----------
      TOTAL NONINTEREST EXPENSE                             18,644,774   16,968,125   14,694,246
                                                           -----------  -----------  -----------

      INCOME BEFORE INCOME TAXES                            29,470,114   28,184,787   26,082,699

INCOME TAXES                                                 9,395,361    9,570,310    8,800,071
                                                           -----------  -----------  -----------
      NET INCOME                                           $20,074,753  $18,614,477  $17,282,628
                                                           ===========  ===========  ===========
EARNINGS PER SHARE:                                                                             
   Basic                                                   $      1.20  $      1.11  $      1.02
                                                           ===========  ===========  ===========

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                                        WEST BANCORPORATION, INC. & SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY(1)                              

                                      Years Ended December 31, 2005, 2004 & 2003

                                                        [Enlarge/Download Table]

                                                                                                        ACCUMULATED                
                                                                                                           OTHER          TOTAL    
                                           COMPREHENSIVE                   ADDITIONAL      RETAINED    COMPREHENSIVE  STOCKHOLDERS'
                                               INCOME     COMMON STOCK  PAID-IN CAPITAL    EARNINGS    INCOME (LOSS)      EQUITY   
                                           -------------  ------------  ---------------  ------------  -------------  -------------
                                                                                                                                   
BALANCE, DECEMBER 31, 2002                                 $3,000,000     $32,000,000    $ 49,792,716   $ 1,031,446   $ 85,824,162 
COMPREHENSIVE INCOME                                                                                                               
   Net income                               $17,282,628            --              --      17,282,628            --     17,282,628 
   Other comprehensive income,                                                                                                     
      unrealized gains on securities,                                                                                              
      net of reclassification adjustment,                                                                                          
      net of tax                                 68,127            --              --              --        68,127         68,127 
                                            -----------                                                                            
TOTAL COMPREHENSIVE INCOME                  $17,350,755                                                                            
                                            ===========                                                                            
Cash dividends declared, $0.610 per share                          --              --     (10,278,573)           --    (10,278,573)
                                                           ----------     -----------    ------------   -----------   ------------ 
BALANCE, DECEMBER 31, 2003                                  3,000,000      32,000,000      56,796,771     1,099,573     92,896,344 
COMPREHENSIVE INCOME                                                                                                               
   Net income                               $18,614,477            --              --      18,614,477            --     18,614,477 
   Other comprehensive loss,                                                                                                       
      unrealized (losses) on securities,                                                                                           
      net of reclassification adjustment,                                                                                          
      net of tax                             (1,044,643)           --              --              --    (1,044,643)    (1,044,643)
                                            -----------                                                                            
TOTAL COMPREHENSIVE INCOME                  $17,569,834                                                                            
                                            ===========                                                                            
Cash dividends declared, $0.625 per share                          --              --     (10,483,877)           --    (10,483,877)
Purchase of fractional shares                                                                                                      
   resulting from stock dividend                                   --              --          (2,090)           --         (2,090)
Shares reacquired under the                                                                                                        
   common stock repurchase plan                                    --              --      (2,360,235)           --     (2,360,235)
                                                           ----------     -----------    ------------   -----------   ------------ 
BALANCE, DECEMBER 31, 2004                                  3,000,000      32,000,000      62,565,046        54,930     97,619,976 
COMPREHENSIVE INCOME                                                                                                               
   Net income                               $20,074,753            --              --      20,074,753            --     20,074,753 
   Other comprehensive loss,                                                                                                       
      unrealized (losses) on securities,                                                                                           
      net of reclassification adjustment,                                                                                          
      net of tax                             (2,485,034)           --              --              --    (2,485,034)    (2,485,034)
                                            -----------                                                                            
TOTAL COMPREHENSIVE INCOME                  $17,589,719                                                                            
                                            ===========                                                                            
Cash dividends declared, $0.640 per share                          --              --     (10,689,179)           --    (10,689,179)
                                                           ----------     -----------    ------------   -----------   ------------ 
BALANCE, DECEMBER 31, 2005                                 $3,000,000     $32,000,000    $ 71,950,620   $(2,430,104)  $104,520,516 
                                                           ==========     ===========    ============   ===========   ============ 

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.                  

10                                                                              

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                                        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 314 common        
stockholders of record on December 31, 2005, and an estimated 800 additional    
beneficial holders whose stock was held in street name by brokerage houses.     

MARKET AND DIVIDEND INFORMATION (1)(2)                                          

                                                                [Download Table]

                  HIGH      LOW    DIVIDENDS
                 ------   ------   ---------
                                            
2005                                        
   1st quarter   $19.25   $15.93     $0.160 
   2nd quarter    19.09    15.34      0.160 
   3rd quarter    20.02    17.25      0.160 
   4th quarter    19.95    17.50      0.160 

2004                                        
   1st quarter   $17.14   $15.40     $0.152 
   2nd quarter    17.14    13.93      0.152 
   3rd quarter    17.54    14.76      0.160 
   4th quarter    18.15    16.21      0.160 

(1)  In July 2004, the Company's Board of Directors authorized a 5% common stock
dividend. Per-share numbers in this report have been adjusted for that
stock dividend.                                                       

(2)  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                                            

Illinois Stock Transfer Company                                                 
209 West Jackson Boulevard, Suite 903                                           
Chicago, Illinois 60606-6905                                                    
800-757-5755                                                                    
www.illinoisstocktransfer.com                                                   

GENERAL COUNSEL                                                                 

Ahlers & Cooney P.C.                                                            
100 Court Avenue                                                                
Suite 600                                                                       
Des Moines, Iowa 50309                                                          

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM                                   

McGladrey & Pullen, LLP                                                         
400 Locust Street                                                               
Suite 640                                                                       
Des Moines, Iowa 50309                                                          

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM                         

The Board of Directors of West Bancorporation, Inc.:                            

We have audited, in accordance with the standards of the Public Company         
Accounting Oversight Board (United States), the consolidated balance sheets of  
West Bancorporation, Inc. and subsidiaries as of December 31, 2005, and 2004,   
and the related consolidated statements of income, stockholders' equity, and    
cash flows (not presented herein) for each of the three years in the period     
ended December 31, 2005 and in our report dated February 7, 2006, 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                                                                
February 7, 2006                                                                

                                                                              11

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WEST BANCORPORATION, INC. AND SUBSIDIARIES' BOARDS OF DIRECTORS                 

JON K. AUGUSTINE (3)                                                            
Managing Director, WB Capital Management Inc.                                   

FRANK W. BERLIN (1,2,7,8)                                                       
President, Frank W. Berlin & Associates                                         

THOMAS A. CARLSTROM (2)                                                         
Neurosurgeon                                                                    

JOYCE A. CHAPMAN (2,3,4)                                                        
Executive Vice President, West Bank                                             
Vice President, West Bancorporation, Inc.                                       

STEVEN G. CHAPMAN (1,2,8)                                                       
Chairman, President & CEO, ITAGroup, Inc.                                       

CHRISTOPHER C. COOK (3)                                                         
Managing Director, WB Capital Management Inc.                                   

MICHAEL A. COPPOLA (1,2,6,8)                                                    
President, Coppola Enterprises, Inc.                                            

ORVILLE E. CROWLEY (1,5,7)                                                      
President, Linden Lane Farms                                                    

CRAIG P. DAMOS (2)                                                              
Senior Vice President & Vertical Growth Officer,                                
The Weitz Company                                                               

SCOTT D. ELTJES (3,4)                                                           
Managing Director and                                                           
Head of WB Capital Management Inc.                                              

KAREN J. GREEN (3)                                                              
Managing Director, WB Capital Management Inc.                                   

DOUGLAS R. GULLING (2,3,4)                                                      
Executive Vice President & Chief Financial Officer,                             
West Bancorporation, Inc.                                                       
Chief Financial Officer, West Bank Treasurer, WB                                
Capital Management Inc. Treasurer, Investors                                    
Management Group, Ltd.                                                          

HARLAN D. HOCKENBERG (5)                                                        
Attorney, Sullivan & Ward, P.C.                                                 

PAUL R. KNAPP (5)                                                               
Vice President, Knapp Properties, Inc.                                          

JEFFREY D. LORENZEN (4)                                                         
President & Chief Investment Officer,                                           
Investors Management Group, Ltd.                                                

KAYE R. LOZIER (2)                                                              
Director of Development, Greater Des Moines Community Foundation                

EUGENE T. MEYER (2)                                                             
Director, Division of Criminal Investigation, State of Iowa                     
Mayor of West Des Moines                                                        

DAVID R. MILLIGAN (2)                                                           
Vice Chairman, West Bank                                                        

GEORGE D. MILLIGAN (1,2,8)                                                      
President, The Graham Group, Inc.                                               

AMY MITCHELL (4)                                                                
Vice President & Secretary, Investors Management Group, Ltd.                    

THOMAS E. MYERS (3)                                                             
Managing Director, WB Capital Management Inc.                                   

ROBERT G. PULVER (1,2,7,8)                                                      
President & CEO, All State Industries, Inc.                                     

KEVIN J. SMITH (3)                                                              
Senior Vice President, West Bank                                                

THOMAS E. STANBERRY (1,2,3,4)                                                   
Chairman, President, & CEO, West Bancorporation, Inc.                           
Chairman & CEO, West Bank                                                       
Chairman, WB Capital Management Inc.                                            
Chairman, Investors Management Group, Ltd.                                      

JACK G. WAHLIG (1,2,6)                                                          
President, Integrus Financial, L.C.                                             
Vice Chairman, West Bancorporation                                              

RODNEY S. WEIKERT (4)                                                           
Senior Vice President, West Bank                                                

CONNIE WIMER (1,2,6)                                                            
Publisher, Business Publications                                                

BRAD L. WINTERBOTTOM (2,3,4)                                                    
President, West Bank                                                            
Vice President, West Bancorporation                                             

----------                                                                      
(1)  Director of West Bancorporation, Inc.                                      

(2)  Director of West Bank                                                      

(3)  Director of WB Capital Management Inc.                                     

(4)  Director of Investors Management Group, Ltd.                               

(5)  Director Emeritus of West Bank                                             

(6)  Audit Committee                                                            

(7)  Compensation Committee                                                     

(8)  Nominating & Corporate Governance Committee                                

WEST BANK OFFICERS                                                              

EXECUTIVE OFFICERS                                                              
SHAREN K. SURBER                                                                
LYNN E. ROWAT                                                                   

SENIOR VICE PRESIDENTS                                                          
THOMAS J. CILEK                                                                 
RONALD H. DEGEN                                                                 
CATHERINE L. MACKAY                                                             
MARC J. MEYER                                                                   

SENIOR TRUST OFFICER                                                            
CAROL T. STONE                                                                  

VICE PRESIDENTS                                                                 
MICHELE A. BELDEN                                                               
WILLIAM S. BOWLES                                                               
RUSSELL W. BREAZEALE                                                            
GREGORY L. DOCKUM                                                               
JOHN R. HUMESTON                                                                
ALICE A. JENSEN                                                                 
PAM K. KELLER                                                                   
J. CRAIG KROUCH                                                                 
KEITH A. KURTH                                                                  
JOHN F. MCKINNEY III                                                            
DANIEL L. MCNACE                                                                
GEORGANN R. MEFFERD                                                             
ALLEN R. PETERSEN                                                               
JOHN A. POLEY                                                                   
MARIE I. ROBERTS                                                                
JOHN J. STONE                                                                   
KAY A. TRAGER                                                                   
RYAN D. WEDEMEYER                                                               

WEST BANK LOCATIONS                                                             

DES MOINES MARKET                                                               
Main Bank                                                                       
1601 22nd - West Des Moines                                                     

Grand                                                                           
125 Grand Ave - West Des Moines                                                 

Urbandale                                                                       
3255 99th St - Urbandale                                                        

North                                                                           
3839 Merle Hay Rd - Des Moines                                                  

City Center                                                                     
809 6th Ave - Des Moines                                                        

Skywalk                                                                         
501 Locust #214 - Des Moines                                                    

East                                                                            
2742 Hubbell - Des Moines                                                       

South                                                                           
SW 9th & Watrous - Des Moines                                                   

EASTERN IOWA MARKET                                                             
Downtown                                                                        
229 S. Dubuque Street - Iowa City                                               

East                                                                            
1910 Lower Muscatine Road - Iowa City                                           

Coralville                                                                      
1150 5th Street - Coralville                                                    

CUSTOMER SERVICE                                                                
Des Moines: 515.222.2360                                                        
Iowa City/Coralville: 319.351.4121                                              
24 Hour Telephone Banking:                                                      
515.222.0314 / toll free 866.815.7858                                           

VMF CAPITAL                                                                     
1415 28th Street                                                                
Suite 200                                                                       
West Des Moines, IA 50266                                                       

118 Third Ave SE                                                                
Suite 700                                                                       
Cedar Rapids, IA 52401                                                          

Phone: 800.343.7084                                                             

INVESTORS MANAGEMENT GROUP                                                      

1415 28th Street                                                                
Suite 200                                                                       
West Des Moines, IA 50266                                                       
Phone: 800.798.1819                                                             

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 & Investors Management Group

   ARE NOT     MAY LOSE   ARE NOT BANK
FDIC INSURED     VALUE     GUARANTEED 

Accounts offered through VMF Capital & Investors Management 
Group, non-bank affiliates of West Bancorporation.

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Dates Referenced Herein and Documents Incorporated by Reference

		Referenced-On Page
This ‘ARS’ Filing	Date	First	Last	Other Filings

Filed on / Effective on:	3/7/06			DEF 14A
	2/7/06	11
For Period End:	12/31/05	3	11	10-K, 11-K
	1/1/05	3
	12/31/04	8	11	10-K, 11-K, 5, ARS
	12/31/02	10		10-K, DEF 14A
				List all Filings

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Filing Submission 0000950137-06-002656 – Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

West Bancorporation Inc – ‘ARS’ for 12/31/05

On: Tuesday, 3/7/06, at 11:18am ET · Effective: 3/7/06 · For: 12/31/05 · Accession #: 950137-6-2656 · File #: 0-49677

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Dates Referenced Herein and Documents Incorporated by Reference

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