SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549


                                    FORM 10-A
                                AMENDMENT NO. 1

                                GENERAL FORM FOR

                           REGISTRATION OF SECURITIES

 Pursuant to Section 12 (b) or 12 (g) of the Securities Exchange Act of 1934

                            WEST BANCORPORATION, INC.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)

           IOWA                                      42 - 1230603
---------------------------               ------------------------------------
  (State or other jurisdiction            (I.R.S. Employer Identification No.)
of incorporation or organization)

1601 22nd STREET, WEST DES MOINES, IOWA                     50266
-------------------------------------------------------------------------------
    (Address of principal executive offices)             (Zip Code)

                                 (515) 222-2300


               (Registrant's telephone number, including area code)

    Securities to be registered pursuant to Section 12 (b) of the Act: NONE

   Securities  to  be   registered   pursuant  to Section 12 (g) of the Act:

                           COMMON STOCK, NO PAR VALUE
                           --------------------------

                               (Title of Class)



                                       1






                               TABLE OF CONTENTS
                                                                        Page
                                                                        ----


ITEM 1.      BUSINESS ...............................................          3

ITEM 2.      FINANCIAL INFORMATION ..................................         13

ITEM 3.      PROPERTIES .............................................         29

ITEM 4.      SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
             MANAGEMENT .............................................         30

ITEM 5.      DIRECTORS AND EXECUTIVE OFFICERS .......................         31

ITEM 6.      EXECUTIVE COMPENSATION .................................         33

ITEM 7.      CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS .........         34

ITEM 8.      LEGAL PROCEEDINGS ......................................         34

ITEM 9.      MARKET PRICE OF AND DIVIDENDS ON THE COMPANY'S COMMON
             EQUITY AND RELATED SHAREHOLDER MATTERS .................         35

ITEM 10.     RECENT SALES OF UNREGISTERED SECURITIES ................         35

ITEM 11.     DESCRIPTION OF COMPANY'S SECURITIES TO BE REGISTERED ...         36

ITEM 12.     INDEMNIFICATION OF DIRECTORS AND OFFICERS ..............         36

ITEM 13.     FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA ............         37

ITEM 14.     CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
             ACCOUNTING AND FINANCIAL DISCLOSURE ....................         37

ITEM 15.     FINANCIAL STATEMENTS AND EXHIBITS ......................         37


                                       2



                            WEST BANCORPORATION, INC.

                         FORM 10 REGISTRATION STATEMENT

ITEM 1. BUSINESS

GENERAL

West  Bancorporation,  Inc.  (the  "Company")  is an Iowa  corporation  and bank
holding  company  registered  under the Bank  Holding  Company  Act of 1956,  as
amended.  The  Company  owns  100  percent  of the  stock of one  state  banking
subsidiary, as described below. All of the Company's operations are conducted in
the State of Iowa and primarily within the Des Moines,  Iowa metropolitan  area.
The Company does not engage in any material  business  activities apart from its
ownership of its banking  subsidiary.  The  principal  executive  offices of the
Company are  located at 1601 22nd  Street,  West Des Moines,  Iowa 50266 and its
telephone number is (515) 222-2300.

The Company was organized and incorporated on May 22, 1984 under the laws of the
State  of  Iowa  to  serve  as a  holding  company  for  its  principal  banking
subsidiary,  West Des Moines State Bank ("West  Bank" or the "Bank")  located in
West Des Moines, Iowa.

The principal  sources of Company  revenue are from West Bank:  (1) interest and
fees earned on loans made; (2) service charges on deposit accounts; (3) interest
on fixed income securities and (4) trust fees.

West Bank's lending  activities  consist primarily of short-term and medium-term
commercial and real estate loans,  business operating loans and lines of credit,
equipment  loans,  vehicle  loans,  personal  loans  and lines of  credit,  home
improvement   loans  and   conventional   and  secondary  market  mortgage  loan
origination.  West  Bank also  offers a  variety  of  demand,  savings  and time
deposits,  merchant credit card processing,  safe deposit boxes, wire transfers,
debit cards,  direct deposit of payroll and social security checks and automated
teller machine access, trust services and correspondent bank services.

BANKING SUBSIDIARY

West  Des  Moines  State  Bank,  West Des  Moines,  Iowa.  West  Bank is a state
chartered  commercial bank insured by the Federal Deposit Insurance  Corporation
("FDIC").  It was organized in 1893 as First Valley  Junction  Savings Bank. The
name was changed to West Des Moines State Bank in 1938. The bank became a wholly
owned  subsidiary  of  the  Company  in  1984  through  a bank  holding  company
organization  whereby the bank's  controlling  interest was  transferred to West
Bancorporation,  Inc. West Bank provides  full-service banking to businesses and
residents primarily in the Des Moines metropolitan area as well as correspondent
services  to banking  organizations  primarily  located in Iowa.  It  provides a
variety of  products  and  services  designed to meet the needs of the market it
serves. It has an experienced staff of bank officers who have spent the majority
of  their  banking   careers  with  West  Bank  and  local   financial   service
organizations  and who emphasize  long-term  customer  relationships.  West Bank
conducts business out of eight  full-service  offices all located within the Des
Moines metropolitan area.

As of December 31, 2001, West Bank had capital of $ 78,932,712 and 110 full-time
equivalent  employees.  Full-time  equivalents  represent the number of people a
business  would  employ if all of its  employees  were  employed  on a full-time
basis. It is calculated by dividing the total number of hours worked by all full
and part-time employees by the number of hours a full-time individual would work
for a given  period of time.  West Bank had net income of  $15,753,812  in 2001,
$14,422,235  in 2000 and  $15,001,489  in 1999.  Total assets as of December 31,
2001,  2000  and  1999  were   $815,970,242,   $827,876,370  and   $775,717,987,
respectively.

                                       3


BUSINESS STRATEGY AND OPERATIONS

The  Company  is a  bank  holding  company  serving  primarily  the  Des  Moines
metropolitan  area. The business  strategy is to emphasize  strong  personal and
business  relationships  to provide products and services that meet the needs of
its  customers.  The Company seeks to maintain a strong return on equity and net
income.  To  accomplish  these goals,  West Bank focuses on small to medium size
businesses that traditionally  wish to develop an exclusive  relationship with a
single bank. West Bank has the size to give the personal  attention  required by
business  owners,  in addition to the credit  expertise to help  businesses meet
their goals.  The Company  emphasizes  strong cost  controls  while  striving to
achieve return on equity and net income goals.

West Bank offers a full range of deposit  services that are typically  available
in most financial institutions,  including checking accounts,  savings accounts,
money  market  accounts  and time  certificates  of  deposit.  One major goal in
developing the Bank's product mix is to keep the product  offerings as simple as
possible,  both in terms of the number of products and the features and benefits
of the individual  services.  The transaction accounts and time certificates are
tailored to the  marketplace  at  competitive  rates.  In  addition,  retirement
accounts such as Individual Retirement Accounts are available.  The FDIC insures
all deposit accounts up to the maximum amount.  The Bank solicits these accounts
from small-to-medium  sized businesses and from individuals who live and/or work
within its market area. Occasionally,  one particular customer may have balances
in short-term  deposits  that  represent  approximately  20% of the Bank's total
deposits.   Those  funds  are   specifically   invested  in  short-term   liquid
investments.  The Company  does not believe that the loss of deposits of any one
customer  or of a few  customers  would  have an  adverse  effect on the  Bank's
operation or erode its core deposit base.

Loans are provided to creditworthy  borrowers  regardless of their race,  color,
national  origin,  religion,  sex, age, marital status,  disability,  receipt of
public  assistance  or any other basis  prohibited  by law. West Bank intends to
fulfill this  commitment  while  maintaining  prudent credit  standards.  In the
course of fulfilling this obligation to meet the credit needs of the marketplace
it  serves,  West  Bank  will  give  consideration  to each  credit  application
regardless of the fact that the applicant may reside in a low to moderate income
neighborhood,  and without regard to the  geographic  location of the residence,
property or business within the market area.

The Bank provides quality financial  products and services such as telephone and
internet banking and trust services that meet the banking needs of its customers
and its market place. The loan programs and acceptance of certain loans may vary
from time-to-time depending on the funds available and regulations governing the
banking industry.  West Bank offers all basic types of credit to its marketplace
including commercial,  real estate and consumer loans. The types of loans within
these categories are as follows:

Commercial  Loans.  Commercial  loans are  typically  made to sole  proprietors,
partnerships,  corporations and other business  entities such as  municipalities
and  individuals  where the loan is to be used primarily for business  purposes.
These loans are  typically  secured by assets  owned by the  borrower  and often
involve personal  guarantees  given by the owners of the business.  The types of
loans that West Bank offers include  financing  guaranteed  under Small Business
Administration  programs,  operating and working capital loans, loans to finance
equipment and other capital  purchases,  commercial real estate loans,  business
lines of credit, term loans, loans to professionals, and letters of credit.

                                       4



Consumer  Loans.   Consumer  loans  are  typically  available  to  finance  home
improvements and consumer purchases, such as automobiles, household furnishings,
boats and  education.  These loans are made on both a secured  and an  unsecured
basis. The types of loans that West Bank offers include  automobiles and trucks,
boats and recreational vehicles, personal loans and lines of credit, home equity
lines of credit, home improvement and rehabilitation loans, credit card services
and residential real estate loans.

Other types of credit programs,  such as loans to nonprofit organizations and to
public entities for community development, also are available.

West Bank offers trust services  typically found in a commercial bank with trust
powers, including the administration of estates, conservatorships,  personal and
corporate trusts and agency accounts.

West Bank earns  fees on a limited  basis from the  origination  of  residential
mortgages that are sold in the secondary  real estate market  without  retaining
the mortgage servicing rights.

West Bank offers traditional banking services,  such as safe deposit boxes, wire
transfers,  direct  deposit of payroll  and social  security  checks,  automated
teller machine access and automatic drafts (ACH) for various accounts.

West  Bank  offers  correspondent  bank  services  to  community  banks  located
primarily  in Iowa.  These  services  include  the buying and selling of federal
funds as well as purchases and sales of loan participations.

CREDIT MANAGEMENT

The Company strives to achieve sound credit risk management. In order to achieve
this,  the Company has  established  uniform  credit  policies and  underwriting
criteria for West Bank's loan portfolio. The Bank diversifies the types of loans
offered and is subject to regular  credit  examinations  by  regulators,  annual
external loan audits and an internal  annual review of large loans.  The Company
attempts to identify  potential  problem loans early,  charge off loans promptly
and maintain an adequate  allowance  for loan losses.  The Bank has  established
credit guidelines for the lending activities that include guidelines relating to
the more commonly requested loan types, as follows:

Commercial  Real Estate Loans - Commercial  real estate loans are normally based
on loan to  appraisal  value ratios of not more than 75 percent and secured by a
first  priority  lien  position.  Loans are  typically  subject to interest rate
adjustments no less  frequently than 5 years from  origination.  Fully amortized
monthly  repayment  terms normally do not exceed twenty years.  Projections  and
cash flows that show ability to service debt within the amortization  period are
required.  Property  and  casualty  insurance  is required to protect the Banks'
collateral  interests.  A major risk factor for commercial real estate loans, as
well as the other loan types described below is the geographic  concentration in
the  Des  Moines  metropolitan  area.  Loans  are  generally  guaranteed  by the
principal(s).

Commercial  Operating  Lines - These  loans are made to  businesses  with normal
terms up to twelve  months.  The credit needs are  generally  seasonal  with the
source of repayment  coming from the entity's normal  business cycle.  Cash flow
reviews are  completed to  establish  the ability to service the debt within the
terms of the loan. A first  priority lien on the general  assets of the business
normally  secures  these  types  of  loans.  Loan to value  limits  vary and are
dependent  upon  the  nature  and  type  of the  underlying  collateral  and the
financial  strength  of the  borrower.  Loans are  generally  guaranteed  by the
principal(s).



                                       5



Commercial Term Loans - These loans are made to businesses to finance  equipment
and other capital expenditures.  Terms are generally the lesser of five years or
the useful life of the asset. Term loans are normally secured by the asset being
financed  and are often  additionally  secured  with the  general  assets of the
business.  Loan to value is  generally  a maximum  of 75  percent of the cost or
value of the assets. Loans are normally guaranteed by the principal(s).

Construction  Loans - Construction  loans on commercial real estate are normally
based on a loan to appraisal value ratio of not more than 75 percent and secured
by a first  priority lien  position.  Loan payments are typically  interest only
during  the  term of the  construction  period.  The  interest  rate is  usually
variable,  based  on the  prime  rate.  Loans  are  normally  guaranteed  by the
principal(s).  Residential  construction  loans are  generally for a term not to
exceed one year,  based on a loan to appraisal  value ratio of not more than 80%
and secured by a first priority lien position. Interest is normally paid monthly
or quarterly based on a variable rate tied to prime.

Residential  First  Mortgage  Loans - Proceeds of these loans are used to buy or
refinance  the  purchase of  residential  real estate with the loan secured by a
first lien on the real estate. Most of the residential mortgage loans originated
by the Bank during the past year (including  servicing rights) have been sold in
the secondary  mortgage  market due to the higher interest rate risk inherent in
the 15 and 30 year fixed rate terms consumers prefer.  Loans that are originated
and not sold in the secondary  market  generally have higher  interest rates and
have rate adjustment  periods  normally no longer that seven years.  The maximum
amortization of first mortgage  residential  real estate loans is 30 years.  The
loan-to-value ratios do not exceed 80 percent. Property insurance is required on
all loans to protect the Banks' collateral position.

Home  Equity  Term  Loans - These  loans are  normally  for the  purpose of home
improvement or other consumer  purposes and are secured by a junior  mortgage on
residential real estate.  Loan-to-value ratios normally do not exceed 90 percent
of market value.

Home Equity  Lines of Credit - The Bank offers a home equity line of credit with
a maximum term of 60 months. These loans are secured by a junior mortgage on the
residential  real estate and normally do not exceed a loan-to-value  ratio of 90
percent with the interest adjusted quarterly.

Consumer  Loans -  Consumer  loans  are  normally  made to  consumers  under the
following guidelines:  automobiles - loans on new and used automobiles generally
will not  exceed 80 and 75  percent  of the  value,  respectively;  recreational
vehicles and boats - 75 percent of value;  mobile home loans have a maximum term
of 180 months with the  loan-to-value  ratio generally not exceeding 80 percent.
Each of these  loans is  secured  by a first  priority  lien on the  assets  and
requires  insurance  to protect  the Banks'  collateral  position.  The term for
unsecured loans generally does not exceed 24 months.

EMPLOYEES

At December 31, 2001, the Bank had a total of 110 full-time equivalent employees
and the Company had one employee.  Employees  are provided with a  comprehensive
program of benefits, including comprehensive medical and dental plans, long-term
disability coverage, and a profit sharing plan with a 401(k) feature. Management
considers its relations with employees to be satisfactory. Unions represent none
of the employees.



                                       6



MARKET AREA

The Company operates one commercial bank with eight locations throughout the Des
Moines, Iowa metropolitan area.

West  Bank's  main  location  is located in West Des  Moines,  Iowa,  one of the
fastest  growing   communities  in  Iowa.  The  population  of  the  Des  Moines
metropolitan area is approximately  456,000.  Des Moines is the capitol of Iowa.
Major employers are the State of Iowa, Principal Life Insurance Company, Pioneer
Hi-Bred International,  Inc., Central Iowa Hospital Corporation,  Mercy Hospital
Medical Center,  Hy-Vee Food Stores,  Inc., and the Des Moines School  District.
West Bank's  primary  business  includes  providing  business and retail banking
services and lending.

COMPETITION

The  geographic  market  area  served by West Bank is  highly  competitive  with
respect to both loans and  deposits.  The Bank competes  principally  with other
commercial  banks,  savings  and loans  associations,  credit  unions,  mortgage
companies,  finance  divisions of auto companies,  and other service  providers.
Some of these  competitors are local,  while others are statewide or nationwide.
The major commercial bank competitors include Bankers Trust Company, NA, a local
banking  organization;  regional  banks:  Union Planters Bank, NA and Commercial
Federal Bank; and several  nationwide  banks:  Wells Fargo Bank, Bank of America
and U.S. Bank, NA. Among the advantages such larger banks have are their ability
to finance  extensive  advertising  campaigns and to allocate  their  investment
assets to  geographic  regions of higher  yield and  demand.  Such  banks  offer
certain  services,  which are not offered directly by West Bank, but that may be
offered  through  correspondent  banking  institutions.   These  larger  banking
organizations  have much higher legal lending limits than West Bank and thus are
better able to finance large regional, national and global commercial customers.

In order to compete with the other  financial  institutions in its primary trade
area, West Bank uses, to the fullest extent  possible,  the flexibility  that is
accorded by its  independent  status.  This includes an emphasis on  specialized
services,  local  promotional  activity  and  personal  contacts  by the  Bank's
officers, directors and employees. In particular, the Bank competes for deposits
principally  by offering  depositors a variety of deposit  programs,  convenient
office  locations,  hours  and other  services.  West  Bank  competes  for loans
primarily by offering competitive interest rates,  experienced lending personnel
with local decision-making authority and quality products and services.

As of June 30, 2001, there were 28 other banks and savings and loan associations
within Polk County, Iowa, where the bank's offices are located. West Bank ranked
5th based on total deposits of all offices in Polk County. For the entire state,
West Bank ranks 7th in terms of deposit size.

The Bank also competes with the financial markets for funds. Yields on corporate
and  government  debt  securities  and  commercial  paper  affect the ability of
commercial banks to attract and hold deposits. Commercial banks also compete for
funds with money market instruments and similar  investment  vehicles offered by
competitors including brokerage firms, insurance companies,  credit card issuers
and  retailers  such as Sears.  Money  market  funds  offered by these  types of
organizations  have provided  substantial  competition for deposits.  This trend
will likely continue in the future.

The Company  anticipates bank competition will continue to change  significantly
over the next several  years as more banks,  including  the major  regionals and
nationals,  continue to  consolidate.  The larger  financial  institutions  will
continue to consolidate  their branch  systems by providing  incentives to their
customers to use electronic banking instead of brick and mortar branches. Credit
unions, because of their income tax advantage, will continue to show substantial
growth.



                                       7



SUPERVISION AND REGULATION

The following  discussion  generally  refers to certain statutes and regulations
affecting the banking  industry.  These  references  provide brief summaries and
therefore do not purport to be complete and are  qualified in their  entirety by
reference to those statutes and  regulations.  In addition,  due to the numerous
statutes and regulations that apply to and regulate the operation of the banking
industry, many are not referenced below.

The Company and West Bank are subject to extensive  federal and state regulation
and  supervision.  Regulation  and  supervision  of  financial  institutions  is
primarily  intended to protect  depositors and the FDIC rather than shareholders
of the  Company.  The laws and  regulations  affecting  banks  and bank  holding
companies have changed  significantly  over recent years,  particularly with the
passage of the Financial  Services  Modernization Act. There is reason to expect
that similar changes will continue in the future. Any change in applicable laws,
regulations or regulatory  policies may have a material  effect on the business,
operations  and  prospects of the Company.  The Company is unable to predict the
nature or the extent of the effects on its business and earnings that any fiscal
or monetary policies or new federal or state legislation may have in the future.

The Company

The Company is a bank holding  company by virtue of its  ownership of West Bank,
and is  registered  as such with the Board of Governors  of the Federal  Reserve
System (the "Federal  Reserve").  The Company is subject to regulation under the
Bank Holding  Company Act of 1956, as amended (the "BHCA"),  which  subjects the
Company and the Bank to  supervision  and  examination  by the Federal  Reserve.
Under the BHCA, the Company files with the Federal Reserve  quarterly and annual
reports of its operations and such additional information as the Federal Reserve
may require.

Source of Strength to the Bank.  The Federal  Reserve  takes the position that a
bank holding  company is required to serve as a source of financial  strength to
its  subsidiary  bank and may not conduct its operations in an unsafe or unsound
manner. In addition,  it is the Federal Reserve's  position that in serving as a
source of strength to its  subsidiary  bank, a bank holding  company  should use
available  resources to provide  adequate  capital funds to its subsidiary  bank
during  periods of financial  stress or  adversity.  It should also maintain the
financial   flexibility  and  capital  raising  capacity  to  obtain  additional
resources  for  providing  assistance  to its  subsidiary  bank.  A bank holding
company's  failure to meet its  obligations  to serve as a source of strength to
its subsidiary bank will generally be considered by the Federal Reserve to be an
unsafe and unsound  banking  practice or a  violation  of the Federal  Reserve's
regulations or both.

Federal Reserve Approval. Bank holding companies must obtain the approval of the
Federal Reserve before they: (1) acquire direct or indirect ownership or control
of any voting  stock of any bank if, after such  acquisition,  they would own or
control, directly or indirectly, more than 5 percent of the voting stock of such
bank; (2) merge or consolidate with another bank holding company; or (3) acquire
substantially all of the assets of any additional banks.

Non-Banking  Activities.  With certain exceptions,  the BHCA also prohibits bank
holding  companies  from  acquiring  direct or indirect  ownership or control of
voting stock in any company other than a bank or bank holding company unless the
Federal Reserve finds the company's business to be incidental to the business of
banking.  When making this determination,  the Federal Reserve in part considers
whether  allowing a bank  holding  company to engage in those  activities  would
offer advantages to the public that would outweigh  possible adverse effects.  A
bank holding  company may engage in permissible  non-banking  activities on a de
novo basis,  if the holding  company  meets  certain  criteria  and notifies the
Federal Reserve within ten (10) business days after the activity has commenced.



                                       8



Under the Financial Services  Modernization Act, eligible bank holding companies
may elect  (with the  approval of the  Federal  Reserve) to become a  "financial
holding company". Financial holding companies are permitted to engage in certain
financial  activities  through  affiliates  that had previously  been prohibited
activities  for  bank  holding  companies.  Such  financial  activities  include
securities and insurance  underwriting and merchant  banking.  At this time, the
Company has not elected to become a financial holding company, but may choose to
do so at some time in the future.

Control  Transactions.  The  Change in Bank  Control  Act of 1978,  as  amended,
requires  a person or group of persons  acquiring  "control"  of a bank  holding
company to  provide  the  Federal  Reserve  with at least 60 days prior  written
notice of the  proposed  acquisition.  Following  receipt  of this  notice,  the
Federal  Reserve  has 60  days to  issue  a  notice  disapproving  the  proposed
acquisition,  but the  Federal  Reserve  may extend  this time  period for up to
another 30 days. An acquisition may be completed  before the disapproval  period
expires  if the  Federal  Reserve  issues  written  notice of its  intent not to
disapprove the action. Under a rebuttable presumption established by the Federal
Reserve,  the  acquisition of 10 percent or more of a class of voting stock of a
bank holding company with a class of securities  registered  under Section 12 of
the  Securities  Exchange  Act  of  1934,  as  amended,   would  constitute  the
acquisition of control.  In addition,  any "company" would be required to obtain
the approval of the Federal  Reserve under the BHCA before  acquiring 25 percent
(or 5  percent  if the  "company"  is a bank  holding  company)  or  more of the
outstanding shares of the Company, or otherwise obtain control over the Company.

Affiliate  Transactions.  The Company and West Bank are deemed affiliates within
the meaning of the Federal Reserve Act, and transactions  between affiliates are
subject to certain restrictions.  Generally, the Federal Reserve Act: (1) limits
the extent to which the financial  institution or its subsidiaries may engage in
"covered transactions" with an affiliate; and (2) requires all transactions with
an  affiliate,   whether  or  not  "covered   transactions",   to  be  on  terms
substantially  the  same,  or at  least  as  favorable  to  the  institution  or
subsidiary, as those provided to a non-affiliate. The term "covered transaction"
includes the making of loans,  purchase of assets,  issuance of a guarantee  and
similar transactions.

State Law on  Acquisitions.  Iowa law permits  bank  holding  companies  to make
acquisitions  throughout  the  state.  However,  Iowa  currently  has a  deposit
concentration  limit of 15 percent on the amount of  deposits  in the state that
any one banking  organization  can control and continue to acquire banks or bank
deposits (by acquisitions),  which applies to all depository  institutions doing
business in Iowa.

Banking Subsidiaries

Applicable  federal  and  state  statutes  and  regulations  governing  a bank's
operations  relate,  among  other  matters,  to capital  adequacy  requirements,
required reserves against deposits,  investments,  loans,  legal lending limits,
certain interest rates payable, mergers and consolidations, borrowings, issuance
of securities, payment of dividends, establishment of branches and dealings with
affiliated persons.

West Bank is a state bank subject to primary federal  regulation and supervision
by the Federal Deposit Insurance  Corporation (the "FDIC") and the Iowa Division
of  Banking.  The  federal  laws that apply to the bank  regulate,  among  other
things,  the  scope of its  business,  its  investments,  its  reserves  against
deposits,  the timing of the  availability of deposited funds and the nature and
amount of and collateral for loans. The laws and regulations  governing the bank
generally have been promulgated to protect  depositors and the deposit insurance
fund of the FDIC and not to protect  stockholders of such  institutions or their
holding companies.

The FDIC has authority to prohibit banks under their  supervision  from engaging
in what it considers to be an unsafe and unsound  practice in  conducting  their
business.  The Federal  Deposit  Insurance  Corporation  Improvement Act of 1991
("FDICIA")   requires  federal  banking   regulators  to  adopt  regulations  or
guidelines in a number of areas to ensure bank safety and  soundness,  including
internal  controls,  credit  underwriting,  asset growth,  earnings,  management
compensation  and ratios of classified  assets to capital.  FDICIA also contains
provisions  which are  intended  to change  independent  auditing  requirements,
restrict the activities of state-chartered insured banks, amend various consumer
banking laws, limit the ability of  "undercapitalized  banks" to borrow from the
Federal  Reserve's  discount  window,  require  regulators  to perform  periodic
on-site bank examinations and set standards for real estate lending.



                                       9



Borrowing  Limitations.  West Bank is subject to  limitations  on the  aggregate
amount  of  loans  that  it can  make  to any one  borrower,  including  related
entities.  Subject  to  numerous  exceptions  based  on the  type of  loans  and
collateral,  applicable  statutes and  regulations  generally limit loans to one
borrower of 15 percent of total equity and reserves.  West Bank is in compliance
with applicable loans to one borrower requirements.

FDIC Insurance. Generally, customer deposit accounts in banks are insured by the
FDIC for up to a maximum  amount of $100,000.  The FDIC has adopted a risk-based
insurance assessment system under which depository institutions contribute funds
to the FDIC  insurance  fund  based on their risk  classification.  The FDIC may
terminate  the deposit  insurance of any insured  depository  institution  if it
determines after an  administrative  hearing that the institution has engaged or
is engaging in unsafe or unsound practices, is in an unsafe or unsound condition
to continue operations or has violated any applicable law.

Capital Adequacy  Requirements.  The Federal Reserve, the FDIC and the Office of
the Comptroller of the Currency  ("OCC")  (collectively,  the  "Agencies")  have
adopted  risk-based capital guidelines for banks and bank holding companies that
are  designed  to  make  regulatory  capital   requirements  more  sensitive  to
differences in risk profiles among banks and bank holding  companies and account
for off-balance  sheet items.  Failure to achieve and maintain  adequate capital
levels may give rise to  supervisory  action  through the  issuance of a capital
directive to ensure the maintenance of required capital levels.  West Bank is in
compliance with applicable regulatory capital level requirements.

The current guidelines require all federal regulated banks to maintain a minimum
risk-based  total capital ratio equal to 8 percent,  of which at least 4 percent
must be Tier 1 capital.  Tier 1 capital  includes common  shareholders'  equity,
qualifying  perpetual  preferred stock and minority interests in equity accounts
of consolidated  subsidiaries,  but excludes goodwill and most other intangibles
and the allowance for loan and lease losses.  Tier 2 capital includes the excess
of any  preferred  stock not included in Tier 1 capital,  mandatory  convertible
securities, hybrid capital instruments,  subordinated debt and intermediate term
preferred stock, 20 percent of unrealized gain of equity  securities and general
reserve for loan and lease  losses up to 1.25 percent of risk  weighted  assets.
West Bank has not  received  any  notice  indicating  that it will be subject to
higher capital requirements.

Under these  guidelines,  bank's assets are given risk weights of 0 percent,  20
percent,  50 percent or 100 percent.  Most loans are assigned to the 100 percent
risk  category,  except for first  mortgage  loans fully secured by  residential
property and, under certain circumstances,  residential construction loans (both
carry a 50 percent  rating).  Most investment  securities are assigned to the 20
percent  category,  except for municipal or state revenue bonds (which have a 50
percent  rating) and direct  obligations  of or  obligations  guaranteed  by the
United States  Treasury or United  States  Government  Agencies  (which have a 0
percent rating).

The Agencies have also  implemented a leverage  ratio,  which is equal to Tier 1
capital as a percentage of average total assets less intangibles,  to be used as
a  supplement  to the risk based  guidelines.  The  principal  objective  of the
leverage  ratio is to limit the maximum  degree to which a bank may leverage its
equity  capital  base.  The  minimum  required  leverage  ratio  for  top  rated
institutions  is 3 percent,  but most  institutions  are required to maintain an
additional  cushion  of at  least  100  to 200  basis  points.  Any  institution
operating  at or near the 3 percent  level is  expected  to be a strong  banking
organization  without any  supervisory,  financial or operational  weaknesses or
deficiencies.  Any institution  experiencing or anticipating  significant growth
would be  expected  to  maintain  capital  ratios,  including  tangible  capital
positions, well above the minimum levels.



                                       10



Prompt Corrective Action.  Regulations  adopted by the Agencies impose even more
stringent  capital  requirements.  The FDIC and other Agencies must take certain
"prompt corrective action" when a bank fails to meet capital  requirements.  The
regulations  establish and define five capital levels:  (1)  "well-capitalized",
(2)  "adequately  capitalized",   (3)  "undercapitalized",   (4)  "significantly
undercapitalized"  and (5) "critically  undercapitalized".  Increasingly  severe
restrictions  are imposed on the payment of dividends and management fees, asset
growth and other aspects of the operations of  institutions  that fall below the
category of being "adequately  capitalized".  Undercapitalized  institutions are
required to develop and implement  capital plans  acceptable to the  appropriate
federal  regulatory  agency.  Such  plans must  require  that any  company  that
controls the  undercapitalized  institution must provide certain guarantees that
the institution will comply with the plan until it is adequately capitalized. As
of the date of this Registration Statement, neither the Company or West Bank was
subject to any regulatory  order,  agreement or directive to meet and maintain a
specific  capital level for any capital  measure.  Furthermore,  as of that same
date, West Bank was categorized as "well  capitalized"  under regulatory  prompt
corrective action provisions.

Restrictions  on Dividends.  Dividends  paid to the Company by West Bank are the
major  source  of  Company  cash  flow.  Various  federal  and  state  statutory
provisions limit the amount of dividends  banking  subsidiaries are permitted to
pay to their holding  companies  without  regulatory  approval.  Federal Reserve
policy further limits the  circumstances  under which bank holding companies may
declare  dividends.  For example, a bank holding company should not continue its
existing  rate of cash  dividends  on its common  stock unless its net income is
sufficient  to fully fund each  dividend  and its  prospective  rate of earnings
retention appears  consistent with its capital needs,  asset quality and overall
financial condition.  In addition,  the Federal Reserve and the FDIC have issued
policy  statements  that provide that insured  banks and bank holding  companies
should generally pay dividends only out of current operating  earnings.  Federal
and state  banking  regulators  may also  restrict  the payment of  dividends by
order.

West Bank, as a state  chartered  bank,  is restricted  under Iowa law to paying
dividends  only out of its  undivided  profits.  Additionally,  the  payment  of
dividends  by West Bank is affected  by the  requirement  to  maintain  adequate
capital pursuant to applicable capital adequacy guidelines and regulations,  and
West Bank is  generally  prohibited  from  paying any  dividends  if,  following
payment thereof,  the bank would be  undercapitalized.  As of December 31, 2001,
approximately $ 25,000,000 was available to be paid as dividends by West Bank to
the Company without prior regulatory approval.

Reserves  Against   Deposits.   The  Federal  Reserve  requires  all  depository
institutions to maintain reserves against their transaction  accounts (primarily
checking  accounts) and  non-personal  time  deposits.  Generally  reserves of 3
percent must be maintained against total transaction  accounts of $42,800,000 or
less  (subject  to an  exemption  not in  excess  of  the  first  $5,500,000  of
transaction  accounts).  A reserve of  $1,119,000  plus 10 percent of amounts in
excess of $42,800,000 must be maintained in the event total transaction accounts
exceed  $42,800,000.  The balances  maintained to meet the reserve  requirements
imposed  by the  Federal  Reserve  may be used to satisfy  applicable  liquidity
requirements.  Because required reserves must be maintained in the form of vault
cash or a non-interest  bearing account at a Federal Reserve Bank, the effect of
this reserve requirement is to reduce the earning assets of West Bank.

Bank Offices.  Iowa law regulates the establishment of bank offices and thus may
affect the Company's future plans to establish  additional offices of West Bank.
Pursuant to amendments to Iowa law effective February 21, 2001, current Iowa law
permits a state bank to establish up to three (3) offices anywhere in the state.
Until July 1, 2004, in addition to the three  offices  which may be  established
anywhere  in the  state,  a bank may only  establish  a bank  office  inside the
boundaries of the county in which the  principal  place of business of the state
bank is located and those counties  contiguous to or cornering upon such county.
The number of offices a state bank may establish in a particular municipality or
urban complex may also be limited depending upon the population.  Effective July
1,  2004,  the  geographical  restrictions  on  bank  office  locations  will be
repealed.  Finally, until July 1, 2004, Iowa law restricts the ability of a bank
to establish a de novo office within the limits of a municipal corporation where
there is an already established state or national bank or bank office.

                                       11



Regulatory Developments

In 1999,  the  Financial  Services  Modernization  Act was  enacted  which:  (1)
repealed  historical  restrictions  on preventing  banks from  affiliating  with
securities  firms;  (2)  broadens the  activities  that may be conducted by bank
subsidiaries of holding  companies;  and (3) provides an enhanced  framework for
protecting  the privacy of  consumers'  information.  In addition,  bank holding
companies  may be owned,  controlled  or  acquired  by any  company  engaged  in
financially  related  activities,  as  long  as such  company  meets  regulatory
requirements.  To the extent that this  legislation  permits  banks to affiliate
with financial services  companies,  the banking industry may experience further
consolidation,  although the impact of this  legislation on the Company and West
Bank is unclear at this time.

Regulatory Enforcement Authority

The  enforcement  powers  available to federal and state banking  regulators are
substantial  and  include,  among  other  things,  the  ability to assess  civil
monetary penalties,  to issue cease-and-desist or removal orders and to initiate
injunctive  actions against  banking  organizations  and  institution-affiliated
parties,  as defined.  In general,  enforcement  actions must be  initiated  for
violations  of laws and  regulations  and  unsafe or  unsound  practices.  Other
actions, or inactions,  may provide the basis for enforcement action,  including
misleading or untimely reports filed with regulatory authorities. Applicable law
also  requires  public  disclosure on final  enforcement  actions by the federal
banking agencies.

National Monetary Policies

In addition to being affected by general economic  conditions,  the earnings and
growth  of West  Bank are  affected  by the  regulatory  authorities'  policies,
including the Federal Reserve.  An important  function of the Federal Reserve is
to regulate the money supply,  credit  conditions and interest rates.  Among the
instruments  used to implement  these  objectives are open market  operations in
U.S.  Government  securities,  changes  in  reserve  requirements  against  bank
deposits and the Federal Reserve  Discount Rate, which is the rate charged banks
borrowing from the Federal Reserve Bank.  These  instruments are used in varying
combinations to influence overall growth and distribution of credit, bank loans,
investments  and deposits,  and their use may also affect interest rates charged
on loans or paid on deposits.

The monetary  policies of the Federal  Reserve have had a material impact on the
operating  results of commercial  banks in the past and are expected to do so in
the future.  Also important in terms of effect on banks are controls on interest
rates paid by banks on  deposits  and types of  deposits  that may be offered by
banks. The Depository Institutions  Deregulation Committee,  created by Congress
in  1980,  phased  out  ceilings  on the  rate of  interest  that may be paid on
deposits by commercial banks and savings and loan associations,  with the result
that the differentials between the maximum rates banks and savings and loans can
pay on deposit  accounts have been  eliminated.  The effect of  deregulation  of
deposit  interest  rates has been to  increase  banks' cost of funds and to make
banks more sensitive to fluctuations in market rates.



                                       12


ITEM 2.  FINANCIAL INFORMATION

SELECTED FINANCIAL DATA

The following  financial  data of the Company for the five years ended  December
31, 2001 is derived from the Company's  historical audited financial  statements
and  related  footnotes.  The  information  set  forth  below  should be read in
conjunction  with  the  "Management's   Discussion  and  Analysis  of  Financial
Condition and Results of Operation" and the  consolidated  financial  statements
and related notes contained elsewhere in this Registration Statement.

(dollars in thousands, except per share amounts)


                                                               Years Ended December 31
----------------------------------------------------------------------------------------------------------
                                              2001         2000          1999         1998          1997
----------------------------------------------------------------------------------------------------------
                                                                                
Operating Results
-----------------
Interest income .....................    $    54,614  $    61,199    $   52,192 $     45,848    $   39,631
Interest expense ....................         24,952       33,639        23,820       20,844        16,681
                                     ---------------------------------------------------------------------
Net interest income .................         29,662       27,560        28,372       25,004        22,950
Provision for loan losses ...........          1,063        1,190           290          420           340
                                     ---------------------------------------------------------------------
Net interest income after provision
 for loan losses                              28,599       26,370        28,082       24,584        22,610
                                     ---------------------------------------------------------------------
Noninterest income ..................          6,314        5,678         4,852        4,502         3,915
Noninterest expense .................         10,480        9,596         9,515        8,802         8,314
                                     ---------------------------------------------------------------------
Income before income taxes ..........         24,433       22,452        23,419       20,284        18,211
Income taxes ........................          8,697        8,036         8,466        6,834         6,200
                                     ---------------------------------------------------------------------
Net income ..........................    $    15,736  $    14,416   $    14,953  $    13,450   $    12,011
                                     =====================================================================

Dividends and Per Share Data
----------------------------
Cash dividends ......................    $     9,636  $     9,315   $     8,566  $     7,923   $     7,495
Cash dividends per share ............           0.60         0.58          0.53         0.49          0.47
Basic earnings per share ............           0.98         0.90          0.93         0.84          0.75
                                     ---------------------------------------------------------------------
Average common shares outstanding ...     16,060,271   16,060,271    16,060,271   16,060,271    16,060,271
                                     =====================================================================
Year End Balances
-----------------
Total assets ........................    $   815,970  $   827,876   $   775,718  $   723,905   $   569,375
Net loans ...........................        489,158      495,884       470,036      392,838       359,029
Deposits ............................        571,730      547,283       541,962      485,604       403,107
Stockholders' equity ................         79,012       70,845        61,125       61,044        55,364
                                     =====================================================================
Equity to assets ratio ..............          9.68%        8.56%         7.88%        8.43%         9.72%
                                     =====================================================================

(dollars in thousands)

                                                                    Years Ended December 31
                                                -------------------------------------------------------------------
                                                     2001          2000          1999            1998        1997
                                                -------------------------------------------------------------------
                                                                                           

Net income....................................   $  15,736       $ 14,416       $ 14,953       $ 13,450    $ 12,011
Average assets................................     837,798        812,411        729,090        622,685     517,716
Average stockholders' equity .................      74,977         63,872         61,033         57,161      52,703
                                                 ==================================================================
Return on assets (net income divided
by average assets)                                    1.88%          1.77%          2.05%         2.16%        2.32%
Return on equity (net income divided
by average equity)                                   20.99%         22.57%         24.50%        23.53%       22.79%
Efficiency ratio (noninterest expense
divided by noninterest income plus taxable
equivalent net interest income)                      28.23%         27.98%         27.96%        28.73%       29.59%
Dividend payout ratio (dividends per share
divided by net income per share)                     61.22%         64.44%         56.99%        58.33%       62.67%
Equity to assets ratio(average equity
divided by average assets)                            8.95%          7.86%          8.37%         9.18%       10.18%
                                                 ===================================================================


                                       13


MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS

INTRODUCTION

The  following  discussion  is provided for the  consolidated  operations of the
Company,  which  includes its wholly owned banking  subsidiary,  West Des Moines
State Bank. The purpose of this  discussion is to focus on  significant  factors
affecting the Company's financial condition and results of operations.

FORWARD-LOOKING INFORMATION

This  Registration  Statement  contains  forward-looking  statements  about  the
Company,  its  business and its  prospects.  Forward-looking  statements  can be
identified by the fact that they do not relate strictly to historical or current
facts.  They often include use of the words "believe",  "expect",  "anticipate",
"intend",   "plan"  "estimate"  or  words  of  similar  meaning,  or  future  or
conditional  verbs  such  as  "will",  "would",   "should",  "could"  or  "may".
Forward-looking   statements,   by  their  nature,  are  subject  to  risks  and
uncertainties.  A number of  factors,  many of which are  beyond  the  Company's
control,   could  cause   actual   conditions,   events  or  results  to  differ
significantly from those described in the forward-looking statements. Such risks
and  uncertainties  with  respect to the Company  include  those  related to the
economic  environment,  particularly  in the areas in which the Company and West
Bank operates, competitive products and pricing, fiscal and monetary policies of
the U.S.  government,  changes in governmental  regulations  affecting financial
institutions,  including  regulatory fees and capital  requirements,  changes in
prevailing   interest  rates,   credit  risk   management  and   asset/liability
management,  the financial and securities  markets and the  availability  of and
costs associated with sources of liquidity.

RESULTS OF OPERATIONS - 2001 COMPARED TO 2000

Net Income

For the year  ended  December  31,  2001,  the  Company  recorded  net income of
$15,736,440, an increase of 9.16 percent from net income of $14,416,442 in 2000.
Higher net interest income combined with increased  noninterest income more than
offset an increase  in  noninterest  expense to result in  improved  net income.
Earnings per share were $.98 in 2001 compared to $.90 in 2000.

The Company's return on average assets (ROA) was 1.88 percent in 2001,  compared
to 1.77 percent in 2000.  The return on average  equity (ROE) was 20.99 percent,
compared to 22.57  percent for the prior year.  The  Company's ROE declined even
though net income was higher  because  the  Company's  average  equity grew at a
faster rate than net  income.  A component of equity  includes the market  value
adjustment  on  available  for sale  securities.  Because  interest  rates  were
declining throughout 2001, the market value of the available for sale securities
increased causing equity to increase also.

Net Interest Income

Net interest income  increased 7.63 percent to $29,661,830 for 2001 as favorable
interest rate  variances  offset smaller  unfavorable  volume  changes.  The net
interest spread,  which is the difference between the yield earned on assets and
the rate paid on liabilities, increased to 2.94 percent from 2.59 percent a year
earlier.  The average yield on earning assets decreased 102 basis points,  while
the average rate on interest bearing liabilities  declined 137 basis points. Net
interest  margin,  which is  tax-equivalent  net interest income as a percent of
average earning assets, was 3.81 percent in 2001 up from 3.62 percent in 2000.

Loan Growth/Loan Quality

At December 31, 2001, total loans declined  approximately $6.7 million,  or 1.35
percent to $493,506,930  from  $500,247,969 a year earlier.  Growth came in real
estate construction,  land and land development,  up $17.7 million.  Real estate
mortgages on 1-4 family  residences  declined $10.4 million and commercial loans
were down $7.9 million. The decline in real estate loans was attributable to the
lower interest rates during the year. Many borrowers refinanced their mortgages.
The  Bank  sold  some of those  mortgages  because  of the  interest  rate  risk
associated  with  keeping  those lower  fixed-rate,  long-term  mortgages in the
portfolio.  The  lower  rate  environment  is  also a  reason  commercial  loans
declined.  Some competing financial  institutions were willing to offer interest
rates at levels  lower  than West Bank  believed  was  prudent.  In some  cases,
borrowers  chose to refinance with another  institution.  Loan quality  remained
good with  nonperforming  loans at December 31, 2001 totaling  $1,274,000 or .26
percent of total  loans.  This  compares to  $1,171,000  or .23 percent of total
loans at December 31, 2000.  Nonperforming  loans  include  loans on  nonaccrual
status,  loans that have been  renegotiated  to below market  interest  rates or
terms, and loans past due 90 days or more.

                                       14


The  allowance  for loan losses,  which totaled  $4,239,990,  represented  232.8
percent of  nonaccrual  loans and loans past due more than 90 days at the end of
2001,  compared to 258.2 percent for 2000. The provision for loan losses totaled
$1,062,500 for 2001,  down slightly from  $1,190,000 for 2000. The Company's net
charge-offs as a percent of average loans were .21 percent for 2001, the same as
2000. Net  charge-offs  for 2001 were slightly  lower than 2000 and  represented
more, but  individually  smaller loans.  One large commercial loan accounted for
the majority of the charge-offs in 2000.

The allowance for loan losses  represents a reserve available to absorb probable
loan losses within the loan  portfolio as of December 31, 2001. The allowance is
based on  management's  judgment after  considering  various factors such as the
current and anticipated economic  environment,  historical loan loss experience,
and evaluation of individual loans.

Management  considered  the  allowance  for loan  losses at  December  31,  2001
sufficient to absorb probable loan losses within the portfolio.

Efficiency Ratio

The Company utilizes the efficiency ratio to measure productivity. This ratio is
computed  by  dividing  noninterest  expense  by the sum of  tax-equivalent  net
interest income plus  noninterest  income  (excluding  gains and losses from the
sale of  securities).  For the year  ended  December  31,  2001,  the  Company's
efficiency  ratio was 28.23 percent,  virtually  unchanged from the prior year's
ratio of 27.98 percent.  This ratio for both years is significantly  better than
any peer group average, which is generally around 60%.

Noninterest Income

Noninterest income (excluding securities  transactions) for 2001 was $6,314,056,
an 11.20 percent increase over 2000.

Service  charges on deposit  accounts  were 9.19  percent  higher than the prior
year. Improvement was due to an increase in fees.

Fees for trust  services  increased  $42,438 or 8.68 percent in 2001 compared to
2000.  This  increase  in income was due to an  increase  in the number of trust
accounts and a slight increase in the amount of assets under management.

Other income increased 19.76 percent to $1,318,640 for 2001, primarily due to an
increase in fees from the sale of real  estate  loans with  servicing  released,
exchange fees and safe deposit box rental income.

Noninterest Expense

Total  noninterest  expense  increased  9.21 percent to $10,479,907 in 2001 from
$9,595,998 in 2000.

Salaries  and  employee  benefits  expense  increased  .32  percent  in  2001 to
$6,044,441 from $6,025,351 in 2000. The number of full time equivalent employees
increased by one from 2000 to 2001.

Occupancy  expense for the year 2001 was  $1,225,553,  an increase of $72,108 or
6.25 percent over 2000. This increase is primarily  attributable to depreciation
on leasehold  improvements and other operating costs associated with maintaining
the branch locations, such as utilities, repairs and property taxes.

Data  processing  expense  increased  15.2%  primarily due to the outsourcing in
mid-year of certain item processing functions.

Other  expenses were $661,694 or 42.55  percent  higher in 2001 than 2000.  This
increase  is  due  to an  increase  in  Trust  Department  expenses  ($172,000),
advertising ($95,000) and audits and examinations  ($51,000).  In addition, 2000
expense  reflected  a  one-time  reduction  in  expense  of  $183,000  due to an
adjustment to accrued expense due to an amendment to an employment contract.

Income Taxes

The Company records a provision for income taxes currently payable, along with a
provision for those taxes payable in the future.  Such deferred taxes arise from
differences  in the timing of certain  items for financial  statement  reporting
compared to income tax reporting. The effective income tax rate differs from the
federal  statutory income tax rate primarily due to tax-exempt  interest income,
disallowed  interest,  meals and entertainment  expenses and state income taxes.
The  effective  rate of income tax expense as a percent of income  before income
taxes was 35.6 percent for 2001, compared to 35.8 percent for 2000.

                                       15


RESULTS OF OPERATIONS - 2000 COMPARED TO 1999

Net Income

For the year  ended  December  31,  2000,  the  Company  recorded  net income of
$14,416,442,  a decline of 3.59 percent from net income of  $14,953,366 in 1999.
Lower net interest  income and an increase in the provision for loan losses were
the  primary   reasons  for  the  reduction.   Net  interest   income   declined
approximately  $800,000 as the cost of interest-bearing  liabilities rose faster
than the yield on interest-earning  assets. Due to higher loan charge-offs,  the
provision for loan losses was $900,000 higher.  Earnings per share were $ .90 in
2000 compared to $.93 in 1999.

The Company's return on average assets (ROA) was 1.77 percent in 2000,  compared
to 2.05 percent in 1999.  The return on average  equity (ROE) was 22.57 percent,
compared to 24.50 percent for the prior year.

Net Interest Income

Net interest  income  declined 2.86 percent to $27,560,114 for 2000 as favorable
volume  variances were offset by unfavorable  changes in interest rates. The net
interest spread  declined to 2.59 percent from 3.24 percent a year earlier.  The
average yield on earning  assets  increased 35 basis  points,  while the average
rate on interest bearing  liabilities  increased 100 basis points.  Net interest
margin was 3.62 percent in 2000 compared to 4.17 percent in 1999.

Loan Growth/Loan Quality

At December 31, 2000, total loans had grown  approximately $26 million,  or 5.46
percent to  $500,247,969  from  $474,331,161 a year earlier.  Most of the growth
came in three areas: commercial up $6.2 million; real estate construction,  land
and land development up $6.1 million and commercial real estate loans were $13.2
million higher.  Loan quality remained good with nonperforming loans at December
31, 2000,  totaling  $1,171,000 or .23 percent of total loans.  This compares to
$1,019,000  or .21 percent of total loans at December  31,  1999.  Nonperforming
loans include loans on nonaccrual  status,  loans that have been renegotiated to
below market interest rates or terms, and loans past due 90 days or more.

The allowance  for loan losses,  which totaled  $4,194,498,  represented  258.20
percent of  nonaccrual  loans and loans past due more than 90 days at the end of
2000,  compared to 296.5 percent for 1999. The provision for loan losses totaled
$1,190,000 for 2000, up from $290,000 for 1999. The Company's net charge-offs as
a percent of average loans were .21 percent for 2000 compared to .03 percent for
1999. The increase in net  charge-offs  for 2000 is attributable to one specific
commercial loan.

The allowance for loan losses  represents a reserve available to absorb probable
loan losses within the loan  portfolio as of December 31, 2000. The allowance is
based on  management's  judgment after  considering  various factors such as the
current and anticipated economic  environment,  historical loan loss experience,
and evaluation of individual loans.

Management  considered  the  allowance  for loan  losses at  December  31,  2000
sufficient to absorb probable loan losses within the portfolio.

Efficiency Ratio

For the year ended December 31, 2000, the Company's  efficiency  ratio was 27.98
percent,  virtually unchanged from the prior year's ratio of 27.96 percent. This
ratio for both years is significantly better than any peer group averages.

Noninterest Income

Noninterest income (excluding securities  transactions) for 2000 was $5,677,392,
a 17.02 percent increase over 1999.

Service  charges on deposit  accounts were 26.04  percent  higher than the prior
year. Improvement was due to an increase in fees.

Fees for trust  services  declined  $108,473 or 18.15 percent from 1999 to 2000.
This drop in income was due to the decline in market  values of trust assets and
some account attrition.

Other income  increased 8.93 percent to $1,101,092 for 2000. The following areas
showed increased income:  wire transfer fees, letter of credit fees and exchange
fees.

                                       16


Noninterest Expense

Total  noninterest  expense  increased  .85 percent to  $9,595,998  in 2000 from
$9,514,940 in 1999.

Salaries  and  employee  benefits  expense  increased  6.99  percent  in 2000 to
$6,025,351  from  $5,631,895 in 1999.  Most of the increase is  attributable  to
annual salary increases for employees and officers.

Occupancy  expense for the year 2000 was  $1,153,445,  an increase of $82,399 or
7.69 percent over 1999. This increase is primarily attributable to the Urbandale
branch that was opened in mid-1999.

Other  expenses were  $362,124,  or 18.89 percent lower in 2000 than 1999.  This
decline is due to an  adjustment  to accrued  expense due to an  amendment to an
employment  contract  ($183,000),  lower advertising  expense  ($53,000),  lower
supplies  expense  ($40,000) and a reduction in business  development and public
relations expense ($40,000).

Income Taxes

The effective income tax rate for 2000 was 35.8 percent compared to 36.1 percent
for 1999.


DISTRIBUTION OF ASSETS,  LIABILITIES AND STOCKHOLDERS'  EQUITY;  INTEREST RATES;
AND INTEREST DIFFERENTIAL

                                       17


Average Balances and an Analysis of Average Rates Earned and Paid.

The  following  tables show average  balances  and  interest  income or interest
expense, with the resulting average yield or rate by category of average earning
assets or interest bearing liability.

(dollars in thousands)


                                                    2001                            2000                           1999
                                     --------------------------------  ----------------------------  --------------------------
                                         Average    Revenue/ Yield/    Average   Revenue/ Yield/     Average   Revenue/  Yield/
                                         Balance    Expense   Rate     Balance   Expense   Rate      Balance   Expense    Rate
                                     ------------------------------------------------------------------------------------------
                                                                                             
Assets
------
Interest-earning assets:
Loans: (2) (3)
Commercial ........................     $ 252,921  $ 19,891  7.86%    $ 240,842  $22,221   9.23%     $214,227   $17,859  8.34%
Real estate .......................       204,557    16,557  8.09%      210,468   17,503   8.32%      186,915    15,639  8.37%
Consumer...........................        20,697     1,915  9.25%       21,461    2,034   9.48%       20,539     1,931  9.40%
Other (1)..........................        17,650     1,328  7.53%       16,827    1,215   7.22%       12,450       967  7.77%
                                       ---------------------------------------------------------------------------------------
Total loans .......................       495,825    39,691  8.01%      489,598   42,973   8.78%      434,131    36,396  8.38%
                                       ----------------------------  ---------------------------------------------------------

Investment securities:
Taxable .............................     177,217    10,608  5.99%      260,233   16,970   6.52%      237,457    14,837  6.25%
Tax-exempt (1).......................      25,920     1,771  6.83%       22,713    1,501   6.61%       21,236     1,438  6.77%
                                       ----------------------------  ---------------------------------------------------------
Total investment securities .........     203,137    12,379  6.09%      282,946   18,471   6.53%      258,693    16,275  6.29%
                                       ----------------------------  ---------------------------------------------------------

Interest bearing deposits ...........         488        23  4.71%          633       39   6.16%          650        35  5.38%
Federal funds sold ..................     101,937     3,381  3.32%        6,012      391   6.50%        3,473       177  5.10%
                                       ----------------------------  ----------------------------------------------------------
Total interest-earning assets (1)....     801,387  $ 55,474  6.92%      779,189  $61,874   7.94%      696,947   $52,883  7.59%
                                       -----------==========-------  ------------================--------------================
Noninterest-earning assets:
Cash and due from banks..............      31,438                        21,850                        23,802
Premises and equipment, net..........       1,066                         1,061                         1,035
Other, less allowance for loan losses       3,907                        10,311                         7,306
                                       ----------                    ----------                     ---------
Total noninterest-earning assets....       36,411                        33,222                        32,143
                                       ----------                    -----------                    ---------
Total assets........................    $ 837,798                     $ 812,411                      $729,090
                                       ==========                    ===========                    =========

1    Tax-exempt  income has been  adjusted  to a  tax-equivalent  basis using an
     incremental  rate of 35% and is  adjusted  to  reflect  the  effect  of the
     nondeductible interest expense of owning tax-exempt investments.
2    Average  loan  balances  include  nonaccrual  loans.   Interest  income  on
     nonaccrual  loans has been  excluded
3    Interest income on loans includes  amortization of loan fees,  which is not
     material.



                                       18


(dollars in thousands)

                                                2001                            2000                            1999
                                    ------------------------------------------------------------------------------------------
                                     Average   Revenue/ Yield/     Average     Revenue/ Yield/     Average     Revenue/ Yield/
                                     Balance   Expense   Rate      Balance     Expense   Rate      Balance     Expense   Rate
                                    ------------------------------------------------------------------------------------------
                                                                                             
Liabilites and Stockholders' Equity
-----------------------------------
Interest-bearing liabilities:
Deposits:
Savings, checking with interest, and
money markets.......................  $253,293  $ 7,069   2.79%     $210,965   $  8,177    3.88%    $218,602    $  6,922  3.17%
Time deposits ......................   162,223    9,008   5.55%      186,135     11,177    6.00%     161,699       8,540  5.28%
                                     -------------------------     ----------------------------    ---------------------------
Total deposits ....................... 415,516   16,077   3.87%      397,100     19,354    4.87%     380,301      15,462  4.07%
Other borrowed funds ................  210,876    8,875   4.21%      231,506     14,285    6.17%     166,912       8,358  5.01%
                                     -----------------------------------------------------------------------------------------

Total interest-bearing liabilities ..  626,392   24,952   3.98%      628,606     33,639    5.35%     547,213      23,820  4.35%
                                     --------------------======---------------------------======-------------------------======
Noninterest-bearing liabilities:
Demand deposits .....................  131,731                       116,196                         116,990
Other liabilities ...................    4,698                         3,737                           3,854
Stockholders' equity ................   74,977                        63,872                          61,033
                                      --------                      --------                       ---------
Total Liabilities and Stockholders'
Equity..............................  $837,798                      $812,411                        $729,090
                                      ========                      ========                       =========

Net interest income (1) ............           $ 30,522                        $ 28,235                         $ 29,063
                                               ========                         ========                        ========
Margin Analysis
---------------
Interest income/yield on interest-
earnings asset(1)..................           $ 55,474    6.92%                $ 61,874    7.94%                $ 52,883  7.59%
Interest expense/rate on interest-
bearing liabilities ...............             24,952    3.98%                  33,639    5.35%                  23,820  4.35%
                                               ----------------                -----------------                 --------------
Net interest income/net interest
spread (1) ........................           $ 30,522    2.94%                $ 28,235    2.59%                $ 29,063  3.24%
                                               ===============                 =================                ===============
Net interest margin (1) ...........
                                                          3.81%                            3.62%                          4.17%
                                                          ====                             =====                          =====

1  Tax-exempt  income  has been  adjusted  to a  tax-equivalent  basis  using an
incremental  rate  of  35%  and  is  adjusted  to  reflect  the  effect  of  the
nondeductible interest expense of owning tax-exempt investments.

                                       19



Net Interest Income

The  Company's  largest  component  contributing  to net income is net  interest
income,  which is the difference between interest earned on earning assets which
are  primarily  loans and  investments  and  interest  paid on interest  bearing
liabilities  which are  primarily  deposits  and  borrowings.  The volume of and
yields earned on earning assets and the volume of and the rates paid on interest
bearing liabilities determine net interest income.  Interest earned and interest
paid is also affected by general economic  conditions,  particularly  changes in
market interest rates,  and by government  policies and the action of regulatory
authorities.  Net interest  income divided by average earning assets is referred
to as net  interest  margin.  For the years ending  December 31, 2001,  2000 and
1999, the Company's net interest margin was 3.81 percent,  3.62 percent and 4.17
percent, respectively.

Analysis of Changes in Interest Differential

The following  table sets forth,  on a  tax-equivalent  basis,  a summary of the
changes in net interest income due to changes in asset and liability volumes and
due to changes in interest rates.

                         VOLUME AND YIELD/RATE VARIANCE
                  (in thousands and on a tax equivalent basis)


                                       2001 Compared to 2000             2000 Compared to 1999
                                     ------------------------------------------------------------
                                     Volume     Rate      Total         Volume      Rate    Total
                                     ------------------------------------------------------------
                                                                       
Interest Income
---------------
Loans:
Commercial .....................    $ 1,199    $(3,529)   $(2,330)     $ 2,346    $ 2,016  $ 4,362
Real estate ....................       (485)      (461)      (946)       1,958        (94)   1,864
Consumer .......................        (71)       (48)      (119)          87         16      103
Other ..........................         61         53        114          309        (62)     247
                                    ---------------------------------------------------------------

Total loans (including fees) ...        704     (3,985)    (3,281)       4,700      1,876    6,576
                                    --------------------------------------------------------------
Investment securities:
Taxable ........................     (5,060)    (1,303)    (6,363)       1,467        667    2,134
Tax-exempt .....................        217         53        270           96        (33)      63
                                    --------------------------------------------------------------
Total investment securities ....     (4,843)    (1,250)    (6,093)       1,563        634    2,197
                                    --------------------------------------------------------------
Interest bearing deposits ......         (8)        (8)       (16)          (1)         5        4
Federal funds sold .............      3,085        (95)     2,990          155         59      214
                                    --------------------------------------------------------------
Total interest income ..........     (1,062)    (5,338)    (6,400)       6,417      2,574    8,991
                                    --------------------------------------------------------------
Interest Expense
----------------
Deposits:
Savings, checking with interest,
and money markets ..............      2,802     (3,910)    (1,108)        (232)     1,487    1,255
Time deposits ..................     (1,368)      (801)    (2,169)       1,383      1,254    2,637
                                    --------------------------------------------------------------
Total deposits .................      1,434     (4,711)    (3,277)       1,151      2,741    3,892
Other borrowed funds ...........     (1,184)    (4,226)    (5,410)       3,704      2,223    5,927
                                    --------------------------------------------------------------
Total interest expense .........        250     (8,937)    (8,687)       4,855      4,964    9,819
                                     -------------------------------------------------------------
Net interest income ............    $(1,312)   $ 3,599    $ 2,287      $ 1,562    $(2,390) $  (828)
                                    ==============================================================

1    The change in interest that is due to both volume and rate changes has been
     allocated  to the  change  due to  volume  and  the  change  due to rate in
     proportion to the absolute value of the change in each.

2    Balances of nonaccrual loans have been included for computational purposes

3    Tax-exempt  income has been  converted  to a  tax-equivalent  basis using a
     federal income tax rate of 35% adjusted for the effect of the nondeductible
     interest expense associated with owning tax-exempt investments.



                                       20


INVESTMENT PORTFOLIO

The  investments   below  are  presented  at  carrying  value  and  reported  by
contractual maturity. Expected maturities may differ from contractual maturities
because  borrowers  may have the  right to call or  prepay  obligations  with or
without prepayment penalties.

                                                                         After one     After five
                                                                         year but      years but
                                                           Within one   within five    within ten    After ten
                                                             year          years          years         years     Total
                                                         ----------------------------------------------------------------
                                                                                                 
U.S. Treasury ........................................   $    1,998    $      --      $    --      $     --      $  1,998
U.S. government agencies and corporations ............       18,231        106,638        6,533         2,002     133,404
States of the United States and political
 subdivisions                                                 6,564         15,701        3,265         8,963      34,493
Corporate notes and other investments ................          734         11,839         --           3,876      16,449
                                                         ----------------------------------------------------------------
Total ................................................   $   27,527    $   134,178    $   9,798    $   14,841    $186,344
                                                         ================================================================

Weighted average yield:
U.S. Treasury ........................................        6.71%            --           --            --
U.S. government agencies and corporations ............        4.80%          4.59%        5.22%         6.45%
States of the United States and political
 subdivisions                                                 6.23%          6.44%        6.30%         7.88%
Corporate notes and other investments ................        5.23%          4.94%          --          8.17%
                                                         ---------------------------------------------------
Total ................................................        5.29%          4.84%        5.58%         7.76%
                                                         ====================================================


1    Yields on tax-exempt  obligations  have been  computed on a  tax-equivalent
     basis using an incremental  tax rate of 35% and are adjusted to reflect the
     effect  of  the   nondeductible   interest  expense  of  owning  tax-exempt
     investments.


Investments in States of the United States and political  subdivisions represent
purchases of municipal bonds located in the state of Iowa.

Investments  in corporate  notes and other  investments  include  corporate debt
obligations  of  companies  located  and doing  business  throughout  the United
States. The debt obligations were all within the credit ratings acceptable under
West Bank's investment policy.

As of December  31,  2001,  the Company  did not have  securities  from a single
issuer, except for the United States government or its agencies,  which exceeded
10 percent of consolidated stockholders' equity.

LOAN PORTFOLIO

Types of Loans

The following  table sets forth the  composition of the Company's loan portfolio
for the past five years ending December 31, 2001 (dollars in thousands).

                                                        As of December 31
                                               -------------------------------------------------
                                                2001       2000      1999      1998       1997
                                               -------------------------------------------------
                                                                       
Commercial.................................... $226,183 $ 234,089 $ 227,887 $ 162,763  $ 149,995
Real Estate
     Construction, land and land development..   33,954    16,250    10,121    12,007      8,877
     1-4 family residential...................   71,628    81,983    79,581    77,682     76,239
     Commercial...............................  138,409   138,705   125,518   105,515     99,985
Consumer and other loans......................   23,333    29,221    31,224    39,012     27,836
                                               -------------------------------------------------
Total loans...................................  493,507   500,248   474,331   396,979    362,932
Deferred loan fees, net.......................      108       169       255       269        220
                                               -------------------------------------------------
 Total loans, net of deferred fees............ $493,399 $ 500,079 $ 474,076 $ 396,710  $ 362,712
                                               ==================================================


                                       21


The Company's loan portfolio primarily consists of commercial loans,  commercial
real estate, real estate  construction,  land and land development,  residential
real estate,  and consumer loans.  As of December 31, 2001,  gross loans totaled
approximately  $494  million,  which  equals  approximately  86 percent of total
deposits  and 60 percent of total  assets.  As of December  31,  2001,  the vast
majority of the loans were originated  directly by West Bank to borrowers within
the Bank's principal market area. There were no foreign loans outstanding during
the years presented.

Commercial  loans consist  primarily of loans to businesses for various purposes
including revolving lines to finance current operations,  inventory and accounts
receivable;  capital  expenditure  loans to finance  equipment  and other  fixed
assets; and letters of credit. These loans generally have short maturities, have
either  adjustable  or fixed rates and are  unsecured  or secured by  inventory,
accounts receivable, equipment and/or real estate.

Real estate loans include  various types of loans for which West Bank holds real
property as collateral and consist of loans primarily on commercial  properties,
and single and multi-family  residences.  Real estate loans typically have fixed
rates for up to seven years with the bank's loan policy  having a maximum  fixed
maturity  of up to 25 years.  The  majority  of  construction  loan volume is to
contractors to construct  commercial  buildings and generally have maturities of
up to 12 months.  West Bank  originates  residential  real estate  loans for its
portfolio and for sale in the secondary market for a fee.

Consumer loans include loans extended to individuals  for household,  family and
other  personal  expenditures  not secured by real estate.  The majority of West
Bank's  consumer  lending is for  vehicles,  consolidation  of  personal  debts,
household appliances and improvements.

The interest  rates charged on loans vary with the degree of risk, the amount of
the loan and the maturity of the loan.  Competitive  pressures,  market interest
rates, the availability of funds and government regulation further influence the
rate charged on a loan.

West Bank  follows a loan policy that has been  approved by the Bank's  Board of
Directors and is administered by West Bank's management. This policy establishes
lending limits, review criteria and other guidelines such as loan administration
and  allowance  for loan  losses.  Loans are  approved  by the  Bank's  Board of
Directors and/or  designated  officers in accordance with respective  guidelines
and  underwriting  policies of the bank.  Loans to one  borrower  are limited by
applicable  state banking laws.  Credit limits  generally  vary according to the
type of loan and the individual loan officer's experience.

Maturities of Loans

The  contractual  maturities of the Company's loan portfolio are as shown below.
Actual  maturities may differ from  contractual  maturities  because  individual
borrowers  may have  the  right  to  prepay  loans  with or  without  prepayment
penalties.

Loans as of December 31, 2001 (dollars in thousands)


                                                        After one but
                                             Within one  within five  After five
                                                year        years        years     Total
                                             ---------------------------------------------
                                                                      
Commercial..................................  $140,833  $ 56,976      $ 28,374    $226,183
Real Estate
     Construction, land and land development    15,773    17,848           333      33,954
     1-4 family residential.................     8,539    44,077        19,012      71,628
     Commercial.............................    10,433    80,284        47,692     138,409
Consumer and other loans....................    13,376     9,835           122      23,333
                                             ---------------------------------------------
Total Loans.................................  $188,954  $209,020      $ 95,533    $493,507
                                             =============================================


                                                      After one but
                                                      within five    After five
                                                          years         years
                                                       ------------------------
Loan maturities after one year with:
Fixed rates........................................... $ 180,411      $ 92,042
Variable rates........................................    28,609         3,491
                                                      -------------------------
                                                       $ 209,020      $ 95,533
                                                      =========================

                                       22


Risk Elements

The   following   table  sets  forth   information   concerning   the  Company's
non-performing  assets for the past five years ending December 31, 2001 (dollars
in thousands).

                                                   Years Ended December 31
                                     -------------------------------------------
                                      2001     2000     1999    1998      1997
                                     -------------------------------------------
Nonaccrual loans ....................$  878  $  705   $  582   $1,914    $2,182
Other real estate owned ............. 1,089   1,363    2,194    2,237     2,493
                                      ------------------------------------------

Total non-performing assets .........$1,967  $2,068   $ 2,776  $4,151    $4,675
                                     ===========================================
Non-performing assets to total loans  0.40%   0.41%     0.59%   1.05%     1.29%
Non-performing assets to total assets 0.24%   0.25%     0.36%   0.57%     0.82%
Loans past due 90 days and still
     accruing interest ............. $  396  $  466   $  437   $  537    $  410
                                     ===========================================

The accrual of interest on past-due and other impaired loans is  discontinued at
90 days or when,  in the opinion of  management,  the  borrower may be unable to
make payments as they become due. When the interest accrual is discontinued, all
unpaid accrued interest is reversed.  Interest income is subsequently recognized
only to the extent cash payments are received.  Interest  income on restructured
loans is  recognized  pursuant to the terms of the new loan  agreement.  For the
periods  shown,  there  were no  restructured  loans.  Interest  income on other
impaired  loans is  monitored  and based upon the terms of the  underlying  loan
agreement.  However,  the recorded net investment in impaired  loans,  including
accrued interest,  is limited to the present value of the expected cash flows of
the impaired loan or the observable fair market value of the loan's collateral.

Outstanding loans of approximately  $2,426,000 were placed on non-accrual status
during 2001 with total  nonaccrual  loans  equaling  $878,000 as of December 31,
2001.  The average  balance of  nonaccrual  loans during 2001 was  approximately
$696,000. The total amount of loans on nonaccrual status as of December 31, 2000
was $705,000.  Loans are placed on a nonaccrual status when there is doubt as to
the borrower's ability to make scheduled principal and interest payments. A loan
may be removed  from  nonaccrual  status when  payments  have  resumed and it is
reasonable to expect continued payment performance. For the years ended December
31, 2001, 2000 and 1999,  interest income,  which would have been recorded under
the original terms of such loans, was an immaterial amount. Additional potential
problem  loans and leases that are not  included in the amounts  reported  above
totaled $1,484,000 as of December 31, 2001.

SUMMARY OF THE ALLOWANCE FOR LOAN LOSSES

The provision for loan losses represents charges made to earnings to maintain an
adequate   allowance  for  loan  losses.   The  allowance  for  loan  losses  is
management's  best estimate of probable losses inherent in the loan portfolio as
of the balance sheet date.  Factors  considered in  establishing  an appropriate
allowance include: an assessment of the financial  condition of the borrower;  a
realistic  determination  of value and adequacy of  underlying  collateral;  the
condition of the local economy and the condition of the specific industry of the
borrower; an analysis of the levels and trends of loan categories;  and a review
of delinquent and classified loans.

The adequacy of allowance  for loan losses is evaluated  quarterly by management
and the Bank's Board of  Directors.  This  evaluation  focuses on specific  loan
reviews,  changes in the type and volume of the loan portfolio given the current
and forecasted  economic  conditions and historical loss experience.  Any one of
the following  conditions may result in the review of a specific  loan:  concern
about whether the customer's  cash flow or net worth are sufficient to repay the
loan;   delinquent  status;  the  loan  has  been  criticized  in  a  regulatory
examination;  the  accrual of  interest  has been  suspended;  or other  reasons
including  when the loan has other  special  or  unusual  characteristics  which
suggest special monitoring is warranted.

While  management  uses  available  information  to  recognize  losses on loans,
further  reduction  in the carrying  amounts of loans may be necessary  based on
changes in local economic conditions.  In addition,  regulatory agencies,  as an
integral part of their examination  process,  periodically  review the estimated
losses on loans.  Such agencies may require the Company to recognize  additional
losses based on their judgment about  information  available to them at the time
of their examination.

                                       23


Change in the Allowance for Loan Losses

The Company's policy is to charge-off loans when, in management's  opinion,  the
loan is deemed  uncollectable,  although  concerted efforts are made to maximize
future recoveries.  The following table sets forth information regarding changes
in the  Company's  allowance  for loan  losses  for the most  recent  five years
(dollars in thousands):


                                                  Analysis of the Allowance for Loan Losses for the Years
                                                                     Ended December 31
                                                   -----------------------------------------------------
                                                      2001       2000         1999      1998      1997
                                                   ----------------------------------------------------
                                                                                 
Balance at beginning of period....................  $ 4,194    $ 4,040      $ 3,872   $ 3,683   $ 3,479
Charge-offs:
Commercial........................................      926      1,027          108       288       224
Real Estate
      Construction, land and land development.....        -          -            -         -         -
      1-4 family residential......................        -          2           31         -         -
      Commercial..................................        -          -            -         -         -
Consumer and other loans..........................      157        147           61       173       270
                                                   ----------------------------------------------------
                                                      1,083      1,176          200       461       494
                                                   ----------------------------------------------------
Recoveries:
Commercial........................................       40         85           64       182       317
Real Estate
      Construction, land and land development.....        -          -            -         -         -
      1-4 family residential......................        -          -            -         -         -
      Commercial..................................        -          -            -         -         -
Consumer and other loans .........................       26         55           14        48        41
                                                   ----------------------------------------------------
                                                         66        140           78       230       358
                                                   ----------------------------------------------------
Net charge-offs (recoveries)......................    1,017      1,036          122       231       136
Additions charged to operations...................    1,063      1,190          290       420       340
                                                   ----------------------------------------------------
Balance at end of period ......................... $  4,240    $ 4,194      $ 4,040   $ 3,872   $ 3,683
                                                   ====================================================

Average loans outstanding......................... $495,825   $489,598     $434,131 $ 371,322  $346,827
                                                  =====================================================

Ratio of net charge-offs during the period to
average loans outstanding ........................    0.21%      0.21%        0.03%     0.06%     0.04%
                                                  =====================================================

Ratio of allowance for loan losses to average
loans outstanding ................................    0.86%      0.86%        0.93%     1.04%     1.06%
                                                  =====================================================

As the previous table indicates,  the additional loan provision each year is the
most significant change in the reserve level for the five-year period presented.
Net  charge-offs as a percent of average loans  outstanding  for 1999,  1998 and
1997 were .03 percent, .06 percent and .04 percent  respectively,  which is very
low when compared to peer group  averages.  In the year 2000,  the charge-off of
one  specific  commercial  loan caused an increase in this ratio to .21 percent.
The charge-off ratio in 2001 was also .21 percent,  but was caused by loans with
individually  smaller loan balances.  The charge-off  ratio for 2001 and 2000 is
comparable to the Bank's peer group.  It is felt that the increase in the number
of loans  charged  off in 2001 is  attributable  to the slow down in the economy
experienced during the year.

Factors that are  considered  when  determining  the  adequacy of the  allowance
include loan  concentrations,  loan growth,  the economic outlook and historical
losses. The Company's  concentration  risks include geographic  concentration in
central Iowa. The local economy is comprised primarily of service industries and
state and county governments.  Due to a general slowing in the economy,  and the
resulting slow down in state revenues,  lay-offs are anticipated in the State of
Iowa workforce.  This action is not expected to have a significant impact on the
Bank.

                                       24


Breakdown of Allowance for Loan Losses by Category

The following table sets forth information  concerning the Company's  allocation
of the allowance for loan losses (dollars in thousands):


                                                     2001            2000             1999            1998          1997
                                                  Amount   % *  Amount    % *    Amount   % *     Amount % *    Amount   % *
                                                   -------------------------------------------------------------------------

                                                                                        
Balance at end of period applicable to:

Commercial .....................................  $2,315  45.83% $2,154   46.79% $2,056  48.04% $1,632  41.00% $1,652  41.32%
Real Estate
     Construction, land and land developmment        286   6.88%    141    3.25%     85   2.13%    119   3.02%     72   2.45%
     1-4 family residential ....................     130  14.51%    134   16.39%    178  16.78%    158  19.57%    137  21.01%
     Commercial ................................     856  28.05%    980   27.73%    863  26.46%    768  26.58%  1,116  27.55%
Consumer and other loans .......................     653   4.73%    785    5.84%    858   6.58%  1,195   9.83%    705   7.67%
                                                 ----------------------------------------------------------------------------
                                                  $4,240 100.00% $4,194  100.00% $4,040 100.00% $3,872 100.00% $3,682 100.00%
                                                 ============================================================================

* Percent of loans in each category to total loans.


DEPOSITS

Type of Deposits

The Company's primary source of funds is customer deposits. The Company attempts
to attract  non-interest-bearing  deposits, which are a low cost funding source.
In addition, West Bank offers a variety of interest-bearing accounts designed to
attract   both   short-term   and    longer-term    deposits   from   customers.
Interest-bearing  accounts earn interest at rates established by Bank management
based on  competitive  market  factors and the Company's  need for funds.  While
nearly 57 percent of the Bank's certificates of deposit mature in the next year,
it is anticipated that a majority of these  certificates  will be renewed.  Rate
sensitive certificates of deposits in excess of $100,000 are subject to somewhat
higher  volatility with regard to renewal volume as the Bank adjusts rates based
upon funding needs. In the event a substantial  volume of  certificates  are not
renewed,  the Company has sufficient  liquid assets and borrowing  lines to fund
significant  runoff.  A  sustained  reduction  in  deposit  volume  would have a
significant negative impact on the Company's operation and liquidity.

The following  table sets forth the average  balances for each major category of
deposits and the weighted  average  interest  rate paid for deposits  during the
years ended December 31, 2001, 2000 and 1999 (dollars in thousands).

                                                 Average Deposits by Type
--------------------------------------------------------------------------------------
                                       2001                2000              1999
--------------------------------------------------------------------------------------
                                      Amount   Rate    Amount   Rate     Amount   Rate
                                     -------   -----  --------  -----  --------   -----
                                                                
Noninterest bearing demand
 deposits ........................   $131,731    --   $116,196    --   $116,990    --
Interest bearing demand deposits..     28,752  0.77%    27,966  1.05%    26,035   0.97%
Money market deposits ............    161,815  3.20%   133,301  4.65%   146,777   3.71%
Savings deposits .................     62,726  1.32%    49,698  3.36%    45,790   2.64%
Time certificates ................    162,223  5.55%   186,135  6.00%   161,699   5.28%
                                     --------         --------         --------
                                     $547,247         $513,296         $497,291
                                     ========         ========         ========


                                       25


Certificates of Deposit

The  following  table  shows  the  amounts  and  remaining  maturities  of  time
certificates  of deposit  that had  balances of $100,000 or more at December 31,
2001, 2000 and 1999 (in thousands).

                                  As of December 31
                           ------------------------------
                             2001       2000       1999
                           ------------------------------
3 months or less .......   $ 31,253   $ 59,003   $ 34,467
Over 3 through 6 months      10,956     30,815     12,733
Over 6 through 12 months      7,673     17,167     14,253
Over 12 months .........     52,997     42,831     67,921
                           ------------------------------
                           $102,879   $149,816   $129,374
                           ==============================

BORROWED FUNDS

The following table summarizes the outstanding amount of and the average rate on
borrowed funds as of December 31, 2001, 2000 and 1999.


                                                                 As of December 31
                                                 ---------------------------------------------------
                                                      2001             2000          1999
                                                 ---------------------------------------------------
                                                 Balance   Rate    Balance    Rate    Balance  Rate
                                                ----------------------------------------------------
                                                                       
Long-term borrowings                             $ 48,000   5.57% $ 48,000    5.57%  $ 33,000  5.17%
Federal funds purchased and securities sold
under                                             107,832   1.51%   54,117    6.39%   131,803  4.97%
Short-term borrowings                               6,000   1.41%    3,612    6.45%     4,843  5.34%
                                                ------------------------------------- --------------
                                                 $161,832   2.71% $205,729    6.20%  $169,646  5.09%
                                                ====================================================

Long-term borrowings consisted entirely of Federal Home Loan Bank advances.  The
short-term  borrowings  as of the end of each  year are  Treasury,  Tax and Loan
option notes.  Average  balances for  short-term  borrowings for the years shown
below also  include an  occassional  borrowing  from the  Federal  Reserve  Bank
discount window and overnight borrowings from the Federal Home Loan Bank.

The following  table sets forth the average amount of, the average rate paid and
maximum  outstanding  balance on borrowed funds for the years ended December 31,
2001, 2000 and 1999.


                                                          Years Ended December 31
                                            ------------------------------------------------------
                                                 2001                2000                1999
                                            ------------------------------------------------------
                                            Average Average    Average  Average    Average Average
                                            Balance  Rate      Balance   Rate      Balance   Rate
                                           -------------------------------------------------------
                                                                      
Long-term borrowings ..................    $ 50,466  5.58%   $ 45,978  5.60%     $ 36,619   5.25%
Federal funds purchased and securities
sold under agreements to repurchase....     157,800  3.78%     181,771  6.32%      123,599   4.96%
Short-term borrowings .................       2,610  3.45%       3,757  6.02%        6,694   4.60%
                                           -------------------------------------------------------
                                           $210,876  4.21%   $231,506  6.17%     $166,912   5.01%
                                          ========================================================


                                                   2001      2000       1999
                                                ------------------------------
Maximum amount outstanding during the year:
Long-term borrowings .......................    $ 58,000   $ 53,000   $ 38,000
Federal funds purchased and securities sold
under agreements to repurchase..............     176,103    211,201    148,040
Short-term borrowings ......................       6,000     25,000     55,000
                                                 =======   ========   ========

                                       26


LIQUIDITY AND CAPITAL RESOURCES

The  objective  of  liquidity  management  is  to  ensure  the  availability  of
sufficient  cash flows to meet all  financial  commitments  and to capitalize on
opportunities for profitable business expansion.  The Company's principal source
of funds is deposits including demand, money market, savings and certificates of
deposits. Other sources include principal repayments on loans, proceeds from the
maturity and sale of investment securities, federal funds purchased,  repurchase
agreements,  advances  from the  Federal  Home Loan Bank and funds  provided  by
operations.  Liquid  assets  of cash on hand,  balances  due from  other  banks,
federal funds sold, money market mutual funds and  interest-bearing  deposits in
financial  institutions  increased from  $26,510,756 in 2000 to  $128,450,240 in
2001. The Company had additional  borrowing  capacity available from the Federal
Home Loan Bank ("FHLB") of  approximately  $16 million at December 31, 2001. The
Company has  additional  eligible  collateral  that could be pledged to the FHLB
that would result in a borrowing capacity of an additional $70,000,000. Net cash
from operating activities contributed  $19,070,231,  $14,813,909 and $14,887,552
to liquidity for the years 2001, 2000 and 1999,  respectively.  These cash flows
from operations are expected to continue in the foreseeable future.

The  combination  of high levels of potentially  liquid assets,  cash flows from
operations and additional  borrowing  capacity provided strong liquidity for the
Company at December 31, 2001.

The Company's total  stockholders'  equity  increased to $79,012,261 at December
31,  2001,  from  $70,845,344  at  December  31,  2000.  At December  31,  2001,
stockholders' equity was 9.68 percent of total assets,  compared to 8.56 percent
at December 31, 2000.  Total equity  increased  due to retention of earnings and
from  appreciation in West Bank's  available for sale investment  portfolio.  No
material  capital  expenditures or material  changes in the capital resource mix
are anticipated at this time. The capital levels of the Company currently exceed
applicable regulatory guidelines as of December 31, 2001.

INTEREST RATE RISK

Interest  rate risk refers to the exposure of earnings and capital  arising from
changes in interest rates.  Management's objectives are to control interest rate
risk and to ensure  predictable  and consistent  growth of earnings and capital.
Interest rate risk  management  focuses on  fluctuations  in net interest income
identified through computer  simulations used to evaluate  volatility,  interest
rate, net interest spread, and volume  assumptions.  This risk is quantified and
compared against tolerance levels.

The Company uses an in-house  computer software  simulation  modeling program to
measure its exposure to potential  interest  rate changes.  For various  assumed
hypothetical  changes in market  interest  rates,  this  analysis  measures  the
estimated change in net interest income.

Another  measure of  interest  rate  sensitivity  is the gap  ratio.  This ratio
indicates the amount of interest-earning  assets repricing within a given period
in comparison to the amount of interest-bearing liabilities repricing within the
same period of time. A gap ratio of 1.0 indicates a matched  position,  in which
case the effect on net interest  income due to interest rate  movements  will be
minimal.  A gap ratio of less than 1.0  indicates  that  more  liabilities  than
assets  reprice  within the time period and a ratio greater 1.0  indicates  that
more assets reprice than liabilities.

The  simulation  model  process  provides a dynamic  assessment of interest rate
sensitivity,  whereas a static interest rate gap table is compiled as of a point
in time. The model simulations  differ from a traditional gap analysis because a
traditional gap analysis does not reflect the multiple  effects of interest rate
movement on the entire range of assets and  liabilities,  and ignores the future
impact of new business strategies.

                                       27


QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company's  market risk is comprised  primarily of interest rate risk arising
from its core banking  activities of lending and deposit  taking.  Interest rate
risk is the risk that changes in market interest rates may adversely  affect the
Company's  net  interest  income.  Management  continually  develops and applies
strategies to mitigate this risk. Management does not believe that the Company's
primary  market risk  exposure and how that exposure was managed in 2001 changed
compared to 2000.

The following table presents the estimated change in net interest income for the
coming twelve months under  several  scenarios of assumed  interest rate changes
for the rate shock levels shown:

Scenario ...............     % Change
--------                     --------
200 basis points rising         3.1%
100 basis points rising         1.5%
Base ...................        0.0%
100 basis points falling       -4.7%
200 basis points falling       -7.3%

As shown above,  at December 31, 2001, the estimated  effect of an immediate 200
basis point increase in interest rates would increase the Company's net interest
income by 3.1 percent or approximately $900,000 in 2002. The estimated effect of
an immediate 200 basis point  decrease in rates would decrease the Company's net
interest income by 7.3 percent or approximately $2,200,000. Because the majority
of  liabilities  subject to interest rate movements in the short term are of the
type that  generally  lag interest  rate  movements  in the market,  they do not
change in the same magnitude in the short term as the change in market rates.

Computations of the prospective  effects of hypothetical  interest rates changes
are  based  on  numerous  assumptions.  Actual  values  may  differ  from  those
projections set forth above.  Further,  the  computations do not contemplate any
actions  the  Company may  undertake  in response to changes in interest  rates.
Current interest rates on certain liabilities are at a level that does not allow
for significant re-pricing should market interest rates decline considerably.

The  following  table sets forth the estimated  maturity or  re-pricing  and the
resulting interest sensitivity gap, of the Company's interest-earning assets and
interest-bearing  liabilities  and the cumulative  interest  sensitivity  gap at
December 31, 2001. The expected  maturities are presented on a contractual basis
or if more relevant based on projected call dates.  Actual maturities may differ
from  contractual   maturities  because  of  prepayment  assumptions  and  early
withdrawal of deposits.

                                              Three      Over 3     Over 1
                                              Months  Through 12   Through      Over
                                            or Less     Months     5 Years    5 Years      Total
                                           ---------  ---------- ----------   --------    ------
                                                                        
Interest earning assets:
   Loans ...............................    $ 218,076   $ 42,517  $ 173,249   $ 59,557  $ 493,399
   Investment securities:
     Available for sale ...............         2,004      8,227     16,463      6,266     32,960
     Held to maturity .................         1,705     15,591    117,716     18,372    153,384
   Federal funds sold ..................       36,489         --         --         --     36,489
   Other short-term investments ........       57,500         --         --         --     57,500
   Federal Home Loan Bank stock ........           --         --         --      3,130      3,130
                                            -----------------------------------------------------
     Total interest earning assets ....       315,774     66,335    307,428     87,325    776,862
                                            -----------------------------------------------------
Interest-bearing liabilities
   Interest-bearing deposits:
      Savings, money market and
        interest-bearing demand .......       281,300         --         --         --    281,300
      Time .............................       39,483     43,105     63,329         --    145,917
   Federal funds purchased and
     securities sold under agreement to
     repurchase .......................       107,832         --         --         --    107,832
   Other short-term borrowings .........        6,000         --         --         --      6,000
   Long-term borrowings ................           --         --         --     48,000     48,000
                                           ------------------------------------------------------
     Total interest-bearing liabilities      434,615      43,105     63,329     48,000    589,049
                                           ------------------------------------------------------
Interest sensitivity gap per period ...... $(118,841)   $  23,230 $ 244,099 $  39,325   $ 187,813
                                           ======================================================
Cumulative interest sensitivity gap ...... $(118,841)   $ (95,611)$ 148,488 $ 187,813   $ 187,813
                                           ======================================================
Interest sensitivity gap ratio ...........      0.73         1.54      4.85      1.82        1.32
                                           ======================================================
Cumulative interest sensitivity gap ratio       0.73         0.80      1.27      1.32        1.32
                                           ======================================================


                                       28


Investments  with  maturities  over 5 years  include the market values of equity
securities of $3,130,000.

As of December  31, 2001,  the  Company's  cumulative  gap ratios for assets and
liabilities  re-pricing within three months and within one year were .72 and .80
respectively,  meaning  that the  Company is  liability  sensitive,  or in other
words,  more  interest-bearing  liabilities  will be subject to repricing within
those time frames than  interest-earning  assets.  However,  the majority of the
interest-bearing  liabilities  subject to repricing within these time frames are
savings,  money  market and  interest-bearing  demand  deposits.  These types of
deposits  generally  do not  reprice as quickly  or with the same  magnitude  as
non-deposit  money market  instruments.  The effect of this relationship is that
interest expense does not rise as quickly in times of increasing market interest
rates.

EFFECTS OF NEW STATEMENTS OF FINANCIAL ACCOUNTING STANDARDS

In July 2001,  the Financial  Accounting  Standards  Board  ("FASB")  issued two
statements, Statement 141, Business Combinations and Statement 142, Goodwill and
Other  Intangible  Assets.  Statement  141  eliminates  the  pooling  method for
accounting for business  combinations  and requires that intangible  assets that
meet  certain  criteria be reported  separately  from  goodwill.  Statement  142
eliminates  the  amortization  of  goodwill  and  other   intangibles  that  are
determined to have an indefinite  life. It also requires,  at a minimum,  annual
impairment tests for goodwill and other intangible assets that are determined to
have an  indefinite  life,  and  requires the  carrying  value of goodwill  that
exceeds its implied fair value to be recognized as an impairment loss.

The  provisions  of  FASB  Statement  141  apply  to all  business  combinations
initiated  after June 30, 2001, and all business  combinations  accounted for by
the purchase method for which the date of acquisition is July 1, 2001, or later.
The  provisions  of FASB  Statement  142 are required to be  implemented  by the
Company in the first  quarter of its 2002  fiscal  year.  The  Company  does not
expect  the  adoption  of these  Statements  to have a  material  effect  on the
Company.

The FASB  has  also  issued  Statement  143,  Accounting  for  Asset  Retirement
Obligations  and Statement  144,  Accounting  for the  Impairment or Disposal of
Long-Lived Assets relating to long-lived assets. The Company does not expect the
adoption of these Statements to have an effect on the Company.

INFLATION

The primary  impact of inflation on the Company's  operation is increased  asset
yields, deposit costs and operating overhead. Unlike most industries,  virtually
all of the assets and  liabilities  of a financial  institution  are monetary in
nature. As a result,  interest rates generally have a more significant impact on
a  financial   institution's   performance  than  they  would  on  non-financial
companies. Although interest rates do not necessarily move in the same direction
or to the  same  extent  as the  prices  of goods  and  services,  increases  in
inflation  generally have resulted in increased  interest rates.  The effects of
inflation  can magnify  the growth of assets and if  significant,  require  that
equity capital increase at a faster rate than would be otherwise necessary.

ITEM 3.  PROPERTIES

The  Company's  office is housed in the main office of West Bank located at 1601
22nd  Street in West Des  Moines,  Iowa.  The space is leased  and  consists  of
approximately  300 square  feet with  annual  rent of $5,000.  West  Bank's main
office is also  located in the leased  facility  at 1601 22nd Street in West Des
Moines. The Bank rents 13,786 square feet and pays annual rent of $303,946 for a
full-service banking location that includes drive-in facilities and an automated
teller machine. The bank also leases buildings and space for six other locations
located within the Des Moines  metropolitan area. These offices are full-service
banking  locations  while five of these offices have drive in facilities and all
six locations  have  automated  teller  machines.  Lease  payments for these six
offices totaled $357,645 for the year ended December 31, 2001. The Bank owns one
other full-service banking location in Des Moines. This location also includes a
drive-in facility and an automatic teller machine.

                                       29


ITEM 4.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

DIRECTORS AND NAMED EXECUTIVE OFFICERS

The  following  table sets forth the shares of common  stock of the Company (the
"Common Stock")  beneficially  owned as of December 31, 2001 by each director of
the  Company  and each  executive  officer of the  Company or West Bank for whom
disclosure is required (the "named executive  officer") and by all directors and
executive officers (including the named executive officers) as a group.

                                    Shares Beneficially       Percent of Total
Name                                   Owned (1) (2)         Shares Outstanding
---------------------------         ----------------------   ------------------

Frank W. Berlin                              32,500                   *
Steven G. Chapman                            15,000                   *
Michael A. Coppola                           22,500                   *
Orville E. Crowley (3)                      120,870                   *
Raymond G. Johnston (4)                      29,542                   *
David L. Miller (5)                         662,430                   4.12%
David R. Milligan                            24,500                   *
Robert G. Pulver                             66,076                   *
Jack G. Wahlig                                    -                   -
Connie Wimer                                 28,800                   *
Joyce A. Chapman                            112,616                   *
Sharen K. Surber (6)                         39,650                   *
Brad L. Winterbottom                          7,614                   *
Executive officers and directors
    as a group (14 persons)               1,163,098                   7.24%

* Indicates less than 1% ownership of outstanding shares.

Notes:
(1)      Shares  "beneficially  owned"  include  shares  owned by or for,  among
         others,  the spouse and/or minor  children of the named  individual and
         any other relative who has the same home as such individual, as well as
         other shares with respect to which the named  individual  has or shares
         voting or investment power.  Beneficial  ownership may be disclaimed as
         to certain of the shares.

(2)      Except as  otherwise  indicated  in the  following  notes,  each  named
         individual  owns his or her shares  directly,  or indirectly  through a
         self-directed  IRA or the Company's  profit  sharing plan, and has sole
         investment and voting power with respect to such shares.

(3)      Mr. Crowley disclaims any beneficial  ownership of 270,000 shares held
         in his spouse's name.

(4)      Mr. Johnston disclaims any beneficial  ownership of 11,700 shares held
         in his spouse's name.

(5)      Mr. Miller  disclaims any beneficial  ownership of 103,500 shares held
         in his spouse's name.

(6)      Includes 900 shares held in trust for Mrs. Surber's  granddaughter for
         which she is the trustee.


                                       30


OTHER BENEFICIAL OWNERS

The following  table sets forth certain  information on each person who is known
to the Company to be the beneficial owner as of December 31, 2001 of more than 5
percent of the Common Stock.

                             Shares Beneficially              Percent of Total
Name and Address                   Owned                      Shares Outstanding
------------------         --------------------------         ------------------
The Jay Newlin Trust               945,082                           5.88%
6165 NW 86th St. #114
Johnston, IA  50131

ITEM 5.  DIRECTORS AND EXECUTIVE OFFICERS

The  following  table sets forth  summary  information  about the  directors and
executive officers of the Company and certain executive officers of West Bank.

Name                       Age         Position with Company or West Bank
-------------------------------------------------------------------------------

Frank W. Berlin             56        Director of Company and Bank

Steven G. Chapman           50        Director of Company and Bank
Michael A. Coppola          45        Director of Company and Bank
Orville E. Crowley          75        Director of Company and Bank
Raymond G. Johnston         73        Director of Company and Bank; Vice
                                        Chairman of Bank
David L. Miller             69        Director  and Chief  Executive Officer
                                        of  Company; Director and Vice Chairman
                                        of Bank
David R. Milligan           54        Director and Executive Vice President
                                        of Company; Director,  Chairman and
                                        Chief Executive Officer of Bank
Robert G. Pulver            54        Director of Company and Bank
Jack G. Wahlig              69        Director of Company and Bank
Connie Wimer                69        Director of Company and Bank
Joyce A. Chapman            57        Vice President and Treasurer of Company;
                                        Director and Executive Vice President
                                        of Bank
Sharen K. Surber            57        Executive Vice President of Bank
Brad L. Winterbottm         45        Director & President of Bank
Douglas R. Gulling          48        Chief Financial Officer of Company and
                                       Bank

The  Board  of  Directors  of the  Company  currently  consists  of 10  members.
Directors  are elected at each  annual  meeting of  shareholders  to hold office
until the next annual  meeting of  shareholders  after their  election and until
their  successor  shall be  elected  and shall  qualify or until  their  earlier
resignation, removal from office, death or incapacitation.  The shareholders may
at any time remove any director,  with or without cause, by majority vote of the
outstanding  shares and elect a successor  to fill the  vacancy.  The  executive
officers of the Company are elected on an annual basis by the Board of Directors
of the Company.  An  executive  officer may be removed by the Board of Directors
whenever  in its  judgment  the best  interest  of the  Company  will be  served
thereby.

The  principal  occupation  or business  and  experience  of the  directors  and
executive  officers of the Company and certain  executive  officers of West Bank
for the past five years are set forth below:

FRANK W. BERLIN is  president  of Frank W.  Berlin &  Associates,  an  insurance
broker.  Mr.  Berlin has served as a director  of the Company and the Bank since
1995.

STEVEN G. CHAPMAN is president and chief executive officer of ITA Group, Inc., a
performance  marketing  group  headquartered  in West Des Moines,  Iowa.  He has
served as a director of the Company since 1994 and the Bank since 1993.

MICHAEL A. COPPOLA is president of Coppola Enterprises,  Inc. a fully integrated
real estate  development and management  company.  He has been a director of the
Company and the Bank since 1996.

ORVILLE E. CROWLEY is president and chief operating officer of Linden Lane Farms
Company, a family farm corporation  involved in growing row crops in Madison and
Warren  counties in Iowa.  Mr.  Crowley has been a director of the Company since
1984 and the Bank since 1981.

                                       31


RAYMOND G.  JOHNSTON is vice  chairman of the Board of Directors of the Bank and
has been a director of the Company  and the Bank since 1986.  Mr.  Johnston is a
retired executive vice president of the Bank.

DAVID L.  MILLER is  chairman,  president  and chief  executive  officer  of the
Company.  He retired as chief  executive  officer of the Bank as of December 31,
2001 and currently  serves as vice  chairman of the Bank.  Mr. Miller has been a
director of the Company  since 1984 and the Bank since 1962.  He joined the Bank
in 1961.

DAVID R.  MILLIGAN is executive  vice  president of the Company.  He was elected
chairman  and chief  executive  officer of the Bank  effective  January 1, 2002.
Prior to that he was executive vice  president and general  counsel of the Bank.
Mr.  Milligan  has been a director of the Company  since 2002 and the Bank since
2000. He started with the Bank in 1980.

ROBERT G. PULVER is president of All State Industries, Inc. an industrial rubber
products manufacturer.  He has been a director of the Company since 1984 and the
Bank since 1981.

JACK G. WAHLIG is president of Integrus Financial,  L.C. He is a retired partner
from the certified  public  accounting firm McGladrey & Pullen,  LLP. Mr. Wahlig
has been a director of the Company since 2001 and the Bank since 1997.

CONNIE WIMER is owner/publisher of Business Publications Corporation and retired
November 1, 2001 as president of Iowa Title Company.  She has been a director of
the Company and the Bank since 1985.

JOYCE A. CHAPMAN is vice president and treasurer of the Company. She was elected
executive vice  president-administration  of the Bank in 2001. Prior to that she
was senior vice  president-administration.  Mrs.  Chapman has been a director of
the Bank  since 1975 and served as a  director  of the  Company  from 1984 until
February  2002.  She has been with the Bank since 1971,  serving in a variety of
capacities, including cashier.

SHAREN K. SURBER was elected executive vice  president-operations of the Bank in
2001. Prior to that she served as senior vice president-operations. She has been
with the Bank for 29  years.  Ms.  Surber's  experience  with the Bank  includes
serving as cashier and human resource director.

BRAD L .  WINTERBOTTOM  is president of the Bank and has served as a director of
the Bank since 2000.  Mr.  Winterbottom  has been  president  since 2000. He was
executive vice president - credit from 1998 to 2000. Prior to that he was senior
vice president - credit of the Bank. He joined the Bank in 1992.

DOUGLAS R.  GULLING  joined  the  Company in  November  2001 as chief  financial
officer and was elected chief  financial  officer of the Bank in February  2002.
From 1996 until 2001,  Mr. Gulling served as senior vice president and corporate
controller of Brenton Bank in Des Moines, Iowa.

                                       32


ITEM 6.  EXECUTIVE COMPENSATION

SUMMARY COMPENSATION TABLE

The  following  table sets forth all  compensation  paid to the named  executive
officers for services rendered in the fiscal years ended December 31, 2001, 2000
and  1999.  All  compensation  was  paid by the Bank for  services  rendered  as
executive officers of the Bank. No compensation was paid by the Company to these
named executive officers. Bonus amounts are shown in the year paid.


Name
and Current                                       Base              All Other
Position                                    Year Salary    Bonus Compensation(1)
--------                                    ---- -------  ------ ---------------
David L. Miller, Chairman, President and    2001 $126,000 $623,020   $16,496
Chief Executive Officer of the Company      2000 $124,500 $771,690   $15,300
and Vice Chairman of the Bank               1999 $120,000 $689,700   $16,566

Brad L. Winterbottom, President of the      2001 $157,500 $ 23,150   $15,884
Bank                                        2000 $139,837 $  7,797   $12,995
                                            1999 $120,000 $ 11,800   $12,113

David R. Milligan, Executive Vice President 2001 $142,000 $ 22,840   $14,462
of the Company and Chairman and Chief       2000 $122,327 $  6,447   $11,476
Executive Officer of the Bank               1999 $105,000 $ 10,200   $10,734

Sharen K. Surber, Executive Vice President  2001 $ 98,000 $ 11,960   $10,061
of the Bank                                 2000 $ 91,819 $  1,836   $ 8,640
                                            1999 $ 84,000 $  6,360   $ 8,641

Joyce A. Chapman, Executive Vice            2001 $ 96,000 $ 11,920   $ 9,844
President of the Bank                       2000 $ 89,744 $  1,795   $ 8,439
                                            1999 $ 82,000 $  6,280   $ 8,427

(1)      Consists  entirely  of  contributions  made  on  behalf  of  the  named
         executive  officer to the Company's  401(k) Profit  Sharing Plan except
         for the following amounts for 2001, 2000 and 1999, respectively,  which
         represent  premiums  on group term life  insurance  coverage:  Miller -
         $486,  $471 and $566;  Winterbottom - $130,  $109 and $113;  Milligan -
         $254, $199 and $234;  Surber - $253, $217 and $241; and Chapman - $237,
         $206 and $227.

EMPLOYMENT CONTRACTS

The above named executives,  with the exception of Mr. Miller, have entered into
employment  contracts  with  the  Bank.  The  provisions  are  similar  for each
executive,  except for salary  which is shown in the table  above,  and call for
compensation  in the event of a change in control  of up to one  year's  salary,
compensation  in  certain  cases  of  termination  by  the  Company  and  by the
executive,  and an agreement by the executive not to compete against the Company
during the term of the executive's employment and for a period of one year after
termination of the agreement,  except for termination by the Company.  The above
executives may receive  annual  bonuses as  recommended  by the chief  executive
officer and approved by the Bank's Board of Directors.

Mr. Miller's  compensation  arrangement is covered under a consulting  agreement
discussed under Item 7 below.

COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION

The  Company did not have a  compensation  committee  during the last  completed
fiscal year. All compensation,  except for a minor amount, was paid by the Bank.
The Bank did have a compensation committee consisting of Directors Connie Wimer,
Robert G.  Pulver,  Orville  E.  Crowley  and Harlan D.  Hockenberg.  All of the
members of the  compensation  committee of the Bank were outside  directors  and
there were no compensation committee interlocks.

EMPLOYEE BENEFIT PLANS

401(k) Profit Sharing Plan. The Company  sponsors a profit sharing plan covering
substantially  all of its employees.  The plan was  originally  established as a
profit  sharing  plan  effective  January 1, 1965.  It was amended to add 401(k)
provisions as of April 15, 2000. The plan allows for employee contributions that
are employer  matched up to certain levels  determined each year by the Board of
Directors.  The plan provides for  contributions  by the Company as the Board of
Directors determines annually.

                                       33


DIRECTOR COMPENSATION

Directors of the Company were not paid a fee during 2001. It is anticipated that
Company  directors will be paid a fee during 2002. The specific  amount is under
consideration.  Regular  meetings of the Board of  Directors  are held once each
quarter during the year.

Directors of the Company also serve as directors of West Bank and received  fees
during 2001 of $350 for each meeting  attended  (ten  meetings  scheduled)  plus
$2,400 per year, $400 for loan committee  meeting(s) attended and $300 for other
committee meetings.

ITEM 7.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

Certain  directors and executive  officers of the Company  and/or the businesses
with which they are associated have had transactions  with West Bank,  including
loans and deposits. All such loans and deposits were made in the ordinary course
of  business  on  substantially  the same terms  (including  interest  rates and
collateral)  as those  prevailing at the same time for  comparable  transactions
with  unaffiliated  persons,  and did not  involve  more than the normal risk of
collectability  or other  unfavorable  features.  As of December 31,  2001,  the
aggregate  outstanding  amount  of all loans to  directors  of the  Company  and
executive  officers of the Company and West Bank was approximately  $15,287,000.
None of these loans are on  nonaccrual  status,  are past due,  restructured  or
potential problem loans.

The Bank leases two branch  facilities  from a company  that is 33 1/3% owned by
Mr. Coppola,  a director of the Company and the Bank. Mr. Coppola also serves as
president of the lessor.  Annual lease  payments on those two branch  facilities
total $148,912. One lease expires in 2004. The other lease expires in 2018. Both
leases  contain  options to renew for up to 25  additional  years.  Terms of the
leases were consummated prior to Mr. Coppola being named a director in 1996.

Mr.  Miller has entered into a consulting  agreement  with West Des Moines State
Bank whereby,  in exchange for advisory  services,  he receives  compensation of
$100,000 per year. In addition,  under the agreement,  Mr. Miller is entitled to
certain  other  benefits  including  club  memberships,  a company car every two
years, not to exceed a cost of $30,000, trust services provided by the Bank, and
legal and  accounting  services up to a cost of $10,000  annually.  The combined
value of these benefits is less than $50,000 annually.  The agreement  continues
until the death of Mr. Miller unless  terminated by the Bank for material breach
by Mr. Miller or in the event he was convicted of a felony, or by Mr. Miller for
material  breach by the Bank. For the year 2002,  the consulting  agreement also
calls for Mr.  Miller to receive  compensation  equal to 2% of the net income of
the Bank. In prior years, Mr. Miller was an employee with an employment contract
that  provided  for a bonus  that was based on a  percentage  of the  Bank's net
income.

ITEM 8.  LEGAL PROCEEDINGS

West Bank from time to time is a party to various legal  actions  arising in the
normal course of business.  The Company  believes that there is no threatened or
pending  proceeding  against  the  Company or West Bank,  which,  if  determined
adversely,  would have a material  adverse  effect on the  business or financial
position of the Company or West Bank.

                                       34


ITEM 9. MARKET PRICE OF AND DIVIDENDS ON THE COMPANY'S COMMON EQUITY AND RELATED
        SHAREHOLDER MATTERS

NATURE OF TRADING MARKET

At December 31, 2001, the Company had  approximately 420 shareholders of record.
The Common Stock is trading on the Over the Counter  Bulletin Board market under
the symbol "WTBA". Howe, Barnes Investments,  Inc., Herzog, Heine, Geduld, Inc.,
Keefe, Bruyette & Woods, Inc., and Monroe Securities,  Inc. make a market in the
Common  Stock.  The Common  Stock is traded  although  not  considered  actively
traded. It is the intent of the Company to list the Common Stock with the NASDAQ
National Market.  No assurance can be given that listing with NASDAQ's  National
Market will produce increased activity for the Common Stock.  During 2001, there
were 57 transfers known to the Company. These transfers were believed to involve
a total of 582,000 shares. To the Company's knowledge, during 2001, sales prices
ranged from $9.75 to $13.00 per share.  Such prices are inter-dealer  prices and
the Company has no knowledge of any retail  mark-ups,  markdowns or commissions.
The last trade known to the Company  occurred on February 28, 2002 at a price of
$12.45 per share. These prices are not necessarily indicative of the fair market
value of the Common Stock, nor is the Company necessarily aware of all transfers
or the price of those  transfers.  Common Stock of  3,954,258  shares is held by
CEDE,  Inc., the street name for the Depository Trust  Corporation.  The Company
believes the number of shareholders for CEDE held shares is approximately 400.

As of the date of this  Registration  Statement:  (1) there were no  outstanding
options or warrants to purchase any Common Stock or any  outstanding  securities
of the Company convertible into Common Stock; (2) Rule 144 promulgated under the
Securities Act of 1933, as amended (the "Securities  Act"), is not available for
resale  of any  Common  Stock  as the  Company  has  not  satisfied  the  public
information  requirements of that regulation;  (3) the Company has not agreed to
register any shares of Common Stock for resale under the Securities Act; and (4)
there are no  shares  of Common  Stock  that are  being,  or have been  publicly
proposed to be, publicly offered by the Company.

DIVIDEND HISTORY

The Company initiated the payment of cash dividends to its shareholders in 1988.
Through 2001, the amount of dividends paid has increased  every year except 1991
when the dividend  amount  remained the same as 1990.  During 2001,  the Company
paid a cash  dividend of $.60 per share  compared to cash  dividends  of $.58 in
2000 and $.53 in 1999. Dividend declarations are evaluated and determined by the
Board of Directors on a quarterly  basis.  Quarterly  dividends  paid during the
last two years were as follows:

           2001                                              2000
------------------------------                  --------------------------------
1st Quarter    $0.15 per share                  1st Quarter      $0.14 per share
2nd Quarter     0.15 per share                  2nd Quarter       0.14 per share
3rd Quarter     0.15 per share                  3rd Quarter       0.15 per share
4th Quarter     0.15 per share                  4th Quarter       0.15 per share

During  2002,  the Company has  continued  its  practice of  quarterly  dividend
payments with a dividend of $.15 per share paid on January 28, 2002.

The Company  intends to  continue  its policy of paying  cash  dividends  on its
Common Stock in amounts not less than those paid in recent periods.  The ability
of the Company to continue to pay such dividends will depend  primarily upon the
earnings of West Bank and its ability to pay  dividends  to the  Company.  It is
anticipated  that West Bank will continue to pay dividends on a regular basis in
the future.

The ability of West Bank to pay dividends is governed by various statutes.  West
Bank, as a state bank, is restricted  under Iowa to from paying  dividends  only
out of undivided  profits.  These statutes provide that no bank shall declare or
pay any  dividends  in an amount  greater than its  retained  earnings,  without
approval  from  governing  regulatory  bodies.  In  addition,   applicable  bank
regulatory authorities have the power to require any bank to suspend the payment
of  any  and  all  dividends  until  the  bank  shall  have  complied  with  all
requirements that may have been imposed by such authorities.

ITEM 10.  RECENT SALES OF UNREGISTERED SECURITIES

The  Company has not  engaged in any sales of its Common  Stock  during the past
three years.

                                       35


ITEM 11. DESCRIPTION OF COMPANY'S SECURITIES TO BE REGISTERED

GENERAL

The Company's  authorized  capital stock consists of 50,000,000 shares of Common
Stock, No Par Value,  which constitutes the class of securities being registered
pursuant to this  Registration  Statement.  As of December 31, 2001,  16,060,271
shares of such Common Stock were issued and  outstanding.  There is no preferred
or other  capital  stock  authorized.  Each  share of Common  Stock has the same
relative  rights as, and is identical in all other respects to, each other share
of Common Stock. The shares of Common Stock are non-assessable  when issued upon
payment  of the full  consideration  therefor  as  established  by the  Board of
Directors.

VOTING RIGHTS

Each share of common stock is entitled to one vote upon each matter submitted to
a vote of the  shareholders,  including the election of  directors.  There is no
right to  cumulative  voting in the  election  of  directors.  A majority of the
shares  entitled  to vote at any  meeting,  represented  in  person or by proxy,
constitutes  a quorum  for  conducting  business.  The  affirmative  vote of the
majority of the shares  represented  at any meeting at which a quorum is present
shall be the act of the shareholders,  unless a greater vote is required by law.
Shareholders are entitled to vote by proxy, provided that a proxy shall be valid
only if given in writing and for the meeting specified therein.

CLASSIFICATION OF BOARD OF DIRECTORS

The Board of Directors of the Company  currently  consists of ten (10)  members.
Each  member is elected at the annual  shareholders'  meeting to serve until the
next annual  meeting of  shareholders  and until a successor is duly elected and
qualified.

DIVIDEND RIGHTS

The Company  may pay  dividends  as  declared  from time to time by the Board of
Directors in its sole discretion out of funds legally  available for the payment
of dividends.  The holders of Common Stock will be entitled to receive and share
equally in all such dividends as may be declared by the Board of Directors.  The
ability of the Company to pay  dividends  will depend on the amount of dividends
paid to it by West  Bank.  The  dividend  restrictions  imposed  on West Bank by
statute and regulation may effectively limit the amount of dividends the Company
can pay. See Item 5 of this  Registration  Statement.  In  addition,  under Iowa
corporate law, the Board of Directors is barred from making any dividend payment
if, after giving effect to such payment, the Company is either unable to pay its
debts as they become due in the usual course of business, or the Company's total
assets would be less than the sum of its total liabilities.

NO PREEMPTIVE RIGHTS

The shareholders do not have any preemptive rights to acquire unissued shares of
Common Stock upon a decision by the Board of Directors to issue such shares.

ITEM 12.  INDEMNIFICATION OF DIRECTORS AND OFFICERS

The  Articles of  Incorporation  limit the  liability  of the  directors  to the
fullest  extent  permitted  by Iowa law.  As so limited,  no  director  shall be
personally liable to the Company or the  shareholders,  for monetary damages for
breach of fiduciary  duty as a director,  except to the extent of any  liability
arising from: (1) any breach of the  director's  duty of loyalty to the Company;
(2) any  acts or  omissions  not in good  faith  or  which  involve  intentional
misconduct or a knowing violation of the law; (3) any transaction from which the
director  derives an  improper  personal  benefit;  or (4) for any  distribution
(i.e.,  a  dividend  or  repurchase  of stock) in  violation  of the  applicable
provision of the Iowa Business Corporation Act.

                                       36


The Bylaws of the Company  authorize  the Company to  indemnify  its  directors,
officers,  employees  and  agents,  and any person who is or was  serving at the
request of the  Company as a  director,  officer,  employee  or agent of another
corporation,  partnership,  joint venture,  trust or enterprise,  to the fullest
extent  permitted  by the Iowa  Business  Corporation  Act (except to the extent
limited by any  federal  banking  laws or  regulations);  provided:  (1) no such
indemnified  person shall be  indemnified  with  respect to any action,  suit or
proceeding  in which such  indemnified  person is finally  adjudged to have been
negligent in the performance of his or her duties or to have committed an act or
failed to perform a duty for which there is common law or  statutory  liability;
and (2) no such  indemnified  person shall be entitled to  indemnification  with
respect to any settlement of any action,  suit or proceeding unless the Board of
Directors of the Company, by majority vote of the directors who were not parties
to such  action,  suit or  proceeding,  shall have first  approved  the proposed
settlement. Under the Iowa Business Corporation act, a corporation may indemnify
a director,  officer, employee or agent if the person acted in good faith and if
the person  reasonably  believed:  (1) in the case of  conduct  in the  person's
official  capacity with the  corporation,  that the person's  conduct was in the
corporation's  best  interest;  or (2) in all  other  cases,  that the  person's
conduct  was at least not opposed to the  corporation's  best  interest.  To the
extent  that  the   indemnification   provisions   of  the  Bylaws  may  provide
indemnification to directors,  officers, employees and agents of the Company for
liabilities arising under the Securities Act, the Company has been informed that
in the opinion of the Securities and Exchange Commission such indemnification is
against  public  policy as  expressed  in the  Securities  Act and is  therefore
unenforceable.  The Bylaws  authorize  the  Company  to  purchase  and  maintain
insurance  on  behalf  of  persons  entitled  to  indemnification.  The  Company
currently has such  insurance in force with a liability  limit of $2,000,000 per
policy period.

ITEM 13.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The consolidated  financial statements listed under Item 15 are filed as part of
this Registration Statement.

ITEM 14.  CHANGES IN AND  DISAGREEMENTS  WITH  ACCOUNTANTS ON ACCOUNTING AND
          FINANCIAL DISCLOSURE

None.

ITEM 15.  FINANCIAL STATEMENTS AND EXHIBITS

The following consolidated financial statements of the Company are filed as part
of this Registration Statement:

1.   Independent Auditors' Report dated January 14, 2002.

2.   Consolidated Balance Sheets at December 31, 2001 and 2000.

3.   Consolidated  Statements of Income for Years Ended December 31, 2001,  2000
     and 1999.

4.   Consolidated  Statements of  Stockholders'  Equity for Years Ended December
     31, 2001, 2000 and 1999.

5.   Consolidated  Statements  of Cash Flows for Years Ended  December 31, 2001,
     2000 and 1999.

6.   Notes to Consolidated Financial Statements.

The Exhibits filed as a part of this Registration Statement are described in the
Exhibit  Index  immediately  following  the  consolidated  financial  statements
included herein.
                                    SIGNATURE

Pursuant to the  requirements  of Section 12 of the  Securities  Exchange Act of
1934, as amended, the Registrant has fully caused this Registration statement to
be signed on its behalf by the undersigned, thereunto duly authorized.

Dated this 10th day of April, 2002

                                           WEST BANCORPORATION, INC.

                                           By:  /s/ David L. Miller
                                           ------------------------------------
                                           David L. Miller, Chairman, President
                                           and Chief Executive Officer

                                       37


                                  EXHIBIT INDEX

EXHIBIT
NUMBER

3.1      Restated Articles of Incorporation of the Company *
3.2      Bylaws of the Company *
10.1     Lease *
10.2     Supplemental *
10.3     Short-Term Lease *
10.4     Assignment *
10.5     Lease Modification Agreement No. 1 *
10.6     Memorandum of Real Estate Contract *
10.7     Affidavit *
10.8     Addendum to Lease *
10.9     Data Processing Contract *
10.10    Employment Contract *
10.11    Consulting Contract *
21       Subsidiaries of the Company *

*    Incorporated herein by reference to the related exhibit filed with the Form
     10 on March 11, 2002.

                                       38



                           WEST BANCORPORATION, INC.

                                 AND SUBSIDIARY

                          CONSOLIDATED FINANCIAL REPORT

                                DECEMBER 31, 2001



                                       F-1




                                    Contents

--------------------------------------------------------------------------------

INDEPENDENT AUDITOR'S REPORT ON THE
   FINANCIAL STATEMENTS ............................................         F-3
--------------------------------------------------------------------------------

FINANCIAL STATEMENTS
   Consolidated  balance sheets ...................................          F-4
   Consolidated  statements of income .............................          F-5
   Consolidated statements  of  stockholders'  equity .............          F-6
   Consolidated  statements of cash flows .........................    F-7 - F-8
   Notes to consolidated financial statements .....................   F-9 - F-24

--------------------------------------------------------------------------------



                                       F-2




                          INDEPENDENT AUDITOR'S REPORT

To the Board of Directors
West Bancorporation, Inc.
West Des Moines, Iowa

We  have  audited  the   accompanying   consolidated   balance  sheets  of  West
Bancorporation,  Inc. and subsidiary,  as of December 31, 2001 and 2000, and the
related consolidated statements of income,  stockholders' equity, and cash flows
for each of the  three  years in the  period  ended  December  31,  2001.  These
financial  statements are the  responsibility of the Company's  management.  Our
responsibility  is to express an opinion on these financial  statements based on
our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the  United  States of  America.  Those  standards  require  that we plan and
perform the audit to obtain  reasonable  assurance  about  whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial  statement  presentation.   We  believe  that  our  audits  provide  a
reasonable basis for our opinion.

In our opinion, the consolidated  financial statements referred to above present
fairly, in all material respects, the financial position of West Bancorporation,
Inc. and subsidiary,  as of December 31, 2001 and 2000, and the results of their
operations  and their cash flows for each of the three years in the period ended
December 31, 2001, in conformity with accounting  principles  generally accepted
in the United States of America.


/s/ McGladrey & Pullen, LLP
---------------------------
Des Moines, Iowa
January 14, 2002


                                       F-3



WEST BANCORPORATION, INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS
December 31, 2001 and 2000


ASSETS                                                             2001             2000
-------------------------------------------------------------------------------------------
                                                                           
Cash and due from banks ...................................   $  34,461,369   $  23,561,887
Federal funds sold and other short term investments .......      93,988,871       2,948,869
                                                              -----------------------------
         Cash and cash equivalents ..........................   128,450,240      26,510,756

Securities available for sale (Notes 2, 6, and 7) .........      32,959,504     209,302,671
Securities held to maturity (Notes 2, 6, and 7) ...........     153,383,948      71,936,556
Federal Home Loan Bank stock, at cost (Note 7) ............       3,129,700      11,131,900
Loans, net of allowance for loan losses (Notes 3, 6, and 7)     489,158,452     495,884,454
Premises and equipment, net (Note 4) ......................       1,147,150       1,059,640
Accrued interest receivable ...............................       5,102,592       8,261,808
Other assets (Note 8) .....................................       2,638,656       3,788,585
                                                              -----------------------------

                                                              $ 815,970,242   $ 827,876,370
                                                              =============================

LIABILITIES AND STOCKHOLDERS' EQUITY
-------------------------------------------------------------------------------------------
LIABILITIES
  Deposits:
    Noninterest bearing demand (Note 2) ...................   $ 144,512,495   $ 122,575,073
    Savings and interest bearing demand ...................     281,300,243     224,628,017
    Time, in excess of $100,000 (Note 5) ..................     102,879,173     149,815,596
    Other time (Note 5) ...................................      43,038,379      50,264,425
                                                               ----------------------------
         Total deposits ...................................     571,730,290     547,283,111

  Federal funds purchased and securities sold under
   agreements to repurchase ................................    107,831,935     154,117,095
  Other short-term borrowings (Notes 2 and 6) ..............      6,000,000       3,612,061
  Accrued expenses and other liabilities ...................      3,395,756       4,018,759
  Long-term borrowings (Note 2, 3, and 7) ..................     48,000,000      48,000,000
                                                               -----------------------------
         Total liabilities .................................    736,957,981     757,031,026
                                                               -----------------------------

COMMITMENTS AND CONTINGENCIES (Note 10)

STOCKHOLDERS' EQUITY
  Common stock, no par value; authorized 25,000,000 shares;
   shares issued and outstanding:  2001 and 2000, 16,060,27       3,000,000       3,000,000
  Additional paid-in capital ..............................      32,000,000      32,000,000
  Retained earnings .......................................      43,374,281      37,274,004
  Accumulated other comprehensive income (loss) ...........         637,980      (1,428,660)
                                                              -----------------------------
         Total stockholders' equity .......................      79,012,261      70,845,344
                                                              -----------------------------

                                                              $ 815,970,242   $ 827,876,370
                                                              =============================


See Notes to Consolidated Financial Statements.


                                       F-4



WEST BANCORPORATION, INC. AND SUBSIDIARY

CONSOLIDATED  STATEMENTS OF INCOME
Years Ended December 31, 2001,  2000 and 1999


                                                             2001          2000          1999
--------------------------------------------------------------------------------------------------
                                                                             
Interest income:
  Loans ................................................   $39,322,663   $42,671,003   $36,119,554
  Securities:
    U.S. Treasury, government agencies, and corporations     9,945,440    15,646,947    14,046,519
    States and political subdivisions ..................     1,570,671     1,407,993     1,171,769
    Other ..............................................       394,246     1,081,589       677,588
  Federal funds sold and other short term investments ..     3,381,198       391,314       176,805
                                                           ---------------------------------------
         Total interest income .........................    54,614,218    61,198,846    52,192,235
                                                           ---------------------------------------

Interest expense:
  Demand and savings deposits ..........................     7,069,318     8,177,360     6,922,467
  Time deposits ........................................     9,007,791    11,176,598     8,540,481
  Federal funds purchased and securities sold under
   agreements to repurchase ............................     5,971,626    11,550,858     6,320,603
  Other short-term borrowings ..........................        90,122       159,520       113,975
  Long-term borrowings .................................     2,813,531     2,574,396     1,922,601
                                                           ---------------------------------------
         Total interest expense ........................    24,952,388    33,638,732    23,820,127
                                                           ---------------------------------------

         Net interest income ...........................    29,661,830    27,560,114    28,372,108

Provision for loan losses ..............................     1,062,500     1,190,000        290,00
                                                           ---------------------------------------

         Net interest income after provision for
          loan losses ..................................    28,599,330    26,370,114    28,082,108
                                                           ---------------------------------------

Noninterest income:
  Service charges on deposit accounts ..................     4,463,921     4,088,052     3,243,449
  Trust services .......................................       531,495       489,057       597,530
  Other income .........................................     1,318,640     1,101,092     1,010,821
                                                           ---------------------------------------
         Total noninterest income ......................     6,314,056     5,678,201     4,851,800
                                                           ---------------------------------------

Noninterest expenses:

  Salaries and employee benefits .......................     6,044,441     6,025,351     5,631,895
  Occupancy expenses ...................................     1,225,553     1,153,445     1,071,046
  Data processing expenses .............................       993,274       862,257       894,929
  Other expenses .......................................     2,216,639     1,554,945     1,917,070
                                                           ---------------------------------------
         Total noninterest expenses ....................    10,479,907     9,595,998     9,514,940
                                                           ---------------------------------------

         Income before income taxes ....................    24,433,479    22,452,317    23,418,968

Income taxes (Note 8) ..................................     8,697,039     8,035,875     8,465,602
                                                           ---------------------------------------
         Net income ....................................   $15,736,440   $14,416,442   $14,953,366
                                                           =======================================
Basic earnings per share ...............................   $      0.98   $      0.90   $      0.93
                                                           =======================================

See Notes to Consolidated Financial Statements.

                                       F-5



WEST BANCORPORATION, INC. AND SUBSIDIARY

CONSOLIDATED  STATEMENTS OF STOCKHOLDERS'  EQUITY
Years Ended December 31, 2001, 2000 and 1999


                                                                                                        Accumulated
                                                                               Additional                   Other         Total
                                                Comprehensive      Common        Paid-In      Retained  Comprehensive  Stockholders'
                                                   Income           Stock        Capital      Earnings   Income (Loss)    Equity
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                    
Balance, December 31, 1998 .....................                $  3,000,000  $ 22,000,000  $ 35,785,385  $    258,341 $ 61,043,726
  Comprehensive income:
    Net income .................................  $ 14,953,366            --            --    14,953,366         --      14,953,366
    Other comprehensive income, unrealized
      gains on securities, net of reclassifica-
      tion adjustment, net of tax (Note 2) .....    (6,305,922)           --            --            --   (6,305,922)   (6,305,922)
                                                  ------------
         Total comprehensive income ............  $  8,647,444
                                                  ============
Cash dividends ($.53 per share) ..............                            --            --    (8,566,232)          --    (8,566,232)
  Transfer of retained earnings to additional
    paid-in capital                                                       --    10,000,000   (10,000,000)          --            --
                                                                 -------------------------------------------------------------------
Balance, December 31, 1999 .....................                   3,000,000    32,000,000    32,172,519    (6,047,581)  61,124,938
  Comprehensive income:
    Net income .................................  $ 14,416,442            --            --    14,416,442         --      14,416,442
    Other comprehensive income, unrealized
      gains on securities, net of reclassifica-
      tion adjustment, net of tax (Note 2) ......    4,618,921            --            --            --    4,618,921     4,618,921
                                                  ------------
         Total comprehensive income ............  $ 19,035,363
                                                  ============
  Cash dividends ($.58 per share) ...............                         --            --    (9,314,957)           --   (9,314,957)
                                                                 -------------------------------------------------------------------
Balance, December 31, 2000 .....................                   3,000,000    32,000,000    37,274,004    (1,428,660)  70,845,344
  Comprehensive income:
    Net income .................................  $ 15,736,440            --            --    15,736,440           --    15,736,440
    Other comprehensive income, unrealized
    gains on securities, net of reclassifica-
    tion adjustment, net of tax (Note 2) .......     2,066,640            --            --            --     2,066,640    2,066,640
                                                  ------------
         Total comprehensive income ............  $ 17,803,080
                                                  ============
  Cash dividends ($.60 per share) ...............                         --            --    (9,636,163)           --   (9,636,163)
                                                                --------------------------------------------------------------------
Balance, December 31, 2001 .....................                $  3,000,000  $ 32,000,000 $  43,374,281   $   637,980 $ 79,012,261
                                                                ====================================================================

See Notes to Consolidated Financial Statements


                                       F-6



WEST BANCORPORATION, INC. AND SUBSIDIARY

CONSOLIDATED  STATEMENTS OF CASH FLOWS
Years Ended  December 31, 2001,  2000 and 1999

                                                                            2001             2000            1999
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              
CASH FLOWS FROM OPERATING ACTIVITIES
  Net income ......................................................   $  15,736,440    $  14,416,442    $  14,953,366
  Adjustments to reconcile net income to net cash provided
    by operating activities:
    Provision for loan losses .......................................     1,062,500        1,190,000          290,000
    Amortization and accretion ......................................        99,592           78,838           79,982
    (Gain) on sale of securities ....................................            --             (809)              --
    Proceeds from sales of loans held for sale ......................     9,724,283          959,950               --
    Originations of loans held for sale .............................   (10,018,283)      (1,037,950)              --
    Depreciation ....................................................       153,429          131,937          124,355
    Deferred income taxes ...........................................      (145,943)         (91,453)        (103,597)
    Change in assets and liabilities:
      Decrease (increase) in accrued interest receivable ............     3,159,216       (1,867,281)        (494,234)
      Increase (decrease) in accrued expenses and other liabilities .      (623,003)       1,034,235           37,680
                                                                      -----------------------------------------------
         Net cash provided by operating activities ..................    19,148,231       14,813,909       14,887,552
                                                                      -----------------------------------------------

CASH FLOWS FROM INVESTING ACTIVITIES
  Proceeds from sales, calls, and maturities of securities
   available for sale ..............................................    171,795,782        2,017,078       33,288,965
  Purchase of securities available for sale ........................             --               --      (24,024,418)
  Proceeds from maturities and calls of securities held to maturity      76,955,000       12,793,190       24,144,405
  Purchases of securities held to maturity .........................    (151,012,328)     (40,498,096)    (26,688,183)
  Proceeds from redemption (purchase) of Federal
   Home Loan Bank stock ............................................      8,002,200        1,330,900       (7,711,400)
  Net decrease (increase) in loans .................................      5,957,502      (26,960,913)     (77,487,986)
  Purchases of bank premises and equipment .........................       (240,939)        (104,268)        (202,601)
  Change in other assets ...........................................        420,241          719,632          491,419
                                                                      -----------------------------------------------
         Net cash provided by (used in) investing activities .......    111,877,458      (50,702,477)     (78,189,799)
                                                                      -----------------------------------------------

CASH FLOWS FROM FINANCING ACTIVITIES
  Net increase in deposits ........................................      24,447,179        5,320,874       56,384,699
  Net change in federal funds purchased and securities
   sold under agreements to repurchase .............................    (46,285,160)      22,314,181       (2,457,865)
  Net change in other short-term borrowings ........................      2,387,939       (1,231,313)       2,764,419
  Proceeds from long-term borrowings ...............................     10,000,000       20,000,000        5,000,000
  Principal payments on long-term borrowings .......................    (10,000,000)      (5,000,000)     (10,000,000)
  Cash dividends ...................................................     (9,636,163)      (9,314,957)      (8,566,232)
                                                                      -----------------------------------------------
         Net cash provided by (used in) financing activities .......    (29,086,205)      32,088,785       43,125,021
                                                                      -----------------------------------------------

         Net increase (decrease) in cash and cash equivalents ......    101,939,484       (3,799,783)     (20,177,226)

CASH AND CASH EQUIVALENTS
  Beginning ........................................................     26,510,756       30,310,539       50,487,765
                                                                      -----------------------------------------------
  Ending ...........................................................  $ 128,450,240    $  26,510,756    $  30,310,539
                                                                      ===============================================

                                   (Continued)


                                       F-7



WEST BANCORPORATION, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
Years Ended December 31, 2001, 2000 and 1999


                                         2001          2000         1999
--------------------------------------------------------------------------------
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
  INFORMATION
Cash payments for:
Interest ...........................  $26,416,080  $32,293,098   $22,046,599
Income taxes .......................    8,393,795    8,635,910     8,698,001

See Notes to Consolidated Financial Statements.


                                       F-8



WEST BANCORPORATION, INC. AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
--------------------------------------------------------------------------------


Note  1.  Organization  and  Nature  of  Business  and  Summary  of  Significant
          Accounting Policies

Organization  and nature of business:  West  Bancorporation,  Inc.  (the Holding
Company),  is a holding  company which has a wholly-owned  subsidiary,  West Des
Moines State Bank, (the Bank)  (referred to  collectively  as the Company).  The
Bank is state  chartered and has its main office in West Des Moines,  Iowa,  and
seven branches located in the Des Moines metropolitan area.

Significant accounting policies:

   Accounting estimates and assumptions:  The consolidated  financial statements
   have  been  prepared  in  conformity  with  accounting  principles  generally
   accepted  in the  United  States  of  America.  In  preparing  the  financial
   statements,  management is required to make  estimates and  assumptions  that
   affect  the  reported  amounts  of assets and  liabilities  and the  reported
   amounts of revenue and expense for the reporting period. Actual results could
   differ  from  those  estimates.  A  material  estimate  that is  particularly
   susceptible to significant  change in the near term is the allowance for loan
   losses.

   Consolidation  policy:  The  consolidated  financial  statements  include the
   accounts of the Holding  Company and the Bank. All  significant  intercompany
   transactions and balances have been eliminated in consolidation.

   Other  comprehensive   income:  The  Financial   Accounting  Standards  Board
   (FASB)Statement No. 130 requires unrealized gains and losses on the Company's
   securities available for sale to be included in comprehensive income.

   Cash and cash  equivalents:  For the  statement  of cash flow  purposes,  the
   Company  considers  cash due from  banks,  federal  funds sold and short term
   investments,  including  money  market  mutual  funds,  to be cash  and  cash
   equivalents.

   Securities:  Securities  available for sale are reported at fair value,  with
   unrealized  gains and losses reported as a separate  component of accumulated
   other comprehensive income, net of deferred income taxes.  Available for sale
   securities  may be sold for  general  liquidity  needs,  response  to  market
   interest rate  fluctuations,  implementation  of  asset-liability  management
   strategies,  funding increased loan demand,  changes in securities prepayment
   risk,  or other  similar  factors.  Realized  gains  and  losses on sales are
   computed on a specific identification basis.

   Securities held to maturity are carried at amortized cost and consist of debt
   securities  for which the Company has the positive  intent and the ability to
   hold to  maturity.  Securities  held to maturity  are stated at cost,  net of
   premium amortization and discount accretion.

   Declines in the fair value of  individual  securities,  classified  as either
   held to maturity or available for sale below their  amortized  cost, that are
   determined to be other than temporary result in write-downs of the individual
   securities  to their fair value with the  resulting  write-downs  included in
   current earnings as realized losses.


                                       F-9



   Loans held for sale: Loans held for sale are those loans held with the intent
   to sell in the foreseeable future. They are carried at the lower of aggregate
   cost or market value. Sales are made without recourse and any gain or loss is
   recognized at the settlement date.

   Loans: Loans are stated at the principal amounts  outstanding  reduced by the
   allowance  for loan losses,  unearned  discount,  and unearned loan fees with
   interest   income   recognized  on  the  interest  method  based  upon  those
   outstanding loan balances.

   A loan is impaired when it is probable the Bank will be unable to collect all
   contractual  principal and interest payments due in accordance with the terms
   of the loan agreement. Impaired loans are measured based on the present value
   of expected  future cash flows  discounted at the loan's  effective  interest
   rate or, as a practical  expedient,  at the loan's observable market price or
   the fair value of the  collateral  if the loan is collateral  dependent.  The
   amount of impairment,  if any, and any subsequent changes are included in the
   allowance for loan losses.

   Loan  origination  fees and  direct  origination  costs are  capitalized  and
   recognized as an adjustment of the yield of the related loan.

   Allowance  for loan  losses:  The  allowance  for loan losses is  established
   through a  provision  for loan losses  charged to expense.  Loans are charged
   against  the  allowance  for  loan  losses  when  management   believes  that
   collectability of the principal is unlikely.  The allowance is an amount that
   management  believes will be adequate to absorb  estimated losses on existing
   loans,  based on an evaluation of the  collectability of loans and prior loss
   experience.  This  evaluation also takes into  consideration  such factors as
   changes in the nature and  volume of the loan  portfolio,  overall  portfolio
   quality,  review of specific problem loans,  and current economic  conditions
   that may affect the borrower's ability to pay. While management uses the best
   information  available  to make its  evaluation,  future  adjustments  to the
   allowance  may be  necessary  if there are  significant  changes in  economic
   conditions.  In addition,  regulatory agencies,  as an integral part of their
   examination  process,  periodically  review  the  Bank's  allowance  for loan
   losses,  and may require the Bank to make additions to the allowance based on
   their  judgment  about  information  available  to them at the  time of their
   examinations.

   Bank premises and  equipment:  Bank premises and equipment are stated at cost
   less accumulated  depreciation.  Depreciation is computed using straight-line
   and accelerated methods over the estimated useful lives of the assets.

   Trust assets:  Assets held by the Bank in fiduciary or agency  capacities are
   not included in the consolidated financial statements.

   Income taxes:  The Company files a  consolidated  federal  income tax return.
   Income tax expense is generally  allocated as if the Holding Company and Bank
   file separate income tax returns.  Deferred taxes are provided on a liability
   method whereby  deferred tax assets are  recognized for deductible  temporary
   differences and operating loss and tax credit  carryforwards and deferred tax
   liabilities  are  recognized  for taxable  temporary  differences.  Temporary
   differences  are the  changes  between  the  reported  amounts  of assets and
   liabilities  and their tax  bases.  Deferred  tax  assets  are  reduced  by a
   valuation  allowance,  when, in the opinion of management,  it is more likely
   than not that some  portion  or all of the  defined  tax  assets  will not be
   realized.


                                       F-10



   Earnings per share:  Earnings per share represents income available to common
   shareholders  divided by the weighted  average  number of shares  outstanding
   during the period.

   Presented below is the numerator and denominator used in the computations for
   earnings per common  share for the years ended  December 31: (The Company has
   no common equivalent shares that could cause dilution.)

                                              2001         2000        1999
                                           -------------------------------------

    Numerator, income available to common
     stockholders                          $15,736,440  $14,416,442 $14,953,366
                                           =====================================

    Denominator, weighted-average
     shares outstanding                     16,060,271   16,060,271  16,060,271
                                           =====================================

    Basic earnings per common share        $      0.98  $      0.90 $      0.93
                                           =====================================

   Reclassifications: Certain items in prior year financial statements have been
   reclassified to conform to the current year's presentation, with no effect on
   net income or stockholders' equity.

New  accounting  pronouncements:  In July  2001,  FASB  issued  two  statements,
Statement  141,  Business  Combinations  and Statement  142,  Goodwill and Other
Intangible  Assets.  Statement 141  eliminates the pooling method for accounting
for business  combinations and requires that intangible assets that meet certain
criteria be reported  separately  from  goodwill.  Statement 142  eliminates the
amortization  of goodwill and other  intangibles  that are determined to have an
indefinite  life. It also requires,  at a minimum,  annual  impairment tests for
goodwill and other  intangible  assets that are determined to have an indefinite
life, and requires the carrying value of goodwill which exceeds its implied fair
value to be recognized as an impairment loss.

The  provisions  of  FASB  Statement  141  apply  to all  business  combinations
initiated  after June 30, 2001, and all business  combinations  accounted for by
the purchase method for which the date of acquisition is July 1, 2001, or later.
The  provisions  of FASB  Statement  142 are required to be  implemented  by the
Company in the first  quarter of its 2002  fiscal  year.  The  Company  does not
expect  the  adoption  of these  Statements  to have a  material  effect  on the
Company.

The FASB  has  also  issued  Statement  143,  Accounting  for  Asset  Retirement
Obligations  and Statement  144,  Accounting  for the  Impairment or Disposal of
Long-Lived Assets relating to long-lived assets. The Company does not expect the
adoption of these Statements to have an effect on the Company.


                                       F-11



Securities available for sale are as follows as of December 31, 2001 and 2000:

                                                                   2001
                                      -------------------------------------------------------------
                                                         Gross           Gross
                                        Amortized      Unrealized      Unrealized          Fair
                                          Cost            Gains          Losses            Value
                                      -------------------------------------------------------------
                                                                          
U.S. Government agencies
  and corporations .................  $ 28,990,703   $    885,504    $         --      $ 29,876,207
State and political subdivisions ...     2,872,963        143,996              --         3,016,959
Mortgage-backed securities ........         66,839            --             (501)           66,338
                                      -------------------------------------------------------------
                                      $ 31,930,505   $   1,029,500    $      (501)     $ 32,959,504
                                      =============================================================

                                                                    2000
                                      -------------------------------------------------------------
                                                           Gross          Gross
                                        Amortized       Unrealized     Unrealized          Fair
                                           Cost            Gains          Losses           Value
                                      -------------------------------------------------------------

U.S. Government agencies
  and corporations .................   $210,729,564   $    152,547    $(2,462,863)     $208,419,248
State and political subdivisions ...        735,000          6,628             --           741,628
Mortgage-backed securities .........        117,400             --           (605)          116,795
Other ..............................         25,000             --             --            25,000
                                       ------------------------------------------------------------
                                       $211,606,964   $    159,175    $(2,463,468)     $209,302,671
                                       ============================================================

Securities held to maturity are as follows as of December 31, 2001 and 2000:

                                                                    2001
                                       ------------------------------------------------------------
                                                           Gross          Gross
                                            Amortized    Unrealized     Unrealized        Fair
                                              Cost         Gains          Losses          Value
                                       ------------------------------------------------------------
                                                                          
U.S. Treasury ......................   $  1,997,952   $     35,798    $        --      $  2,033,750
U.S. Government agencies
  and corporations .................    103,459,901        645,401       (182,819)      103,922,483
State and political subdivisions ...     31,475,879        403,924       (160,839)       31,718,964
Corporate notes and other
  investments ......................     16,450,216         51,205       (284,756)       16,216,665
                                       ------------------------------------------------------------
                                       $153,383,948   $  1,136,328    $  (628,414)     $153,891,862
                                       ============================================================

                                                                  2000
                                       ------------------------------------------------------------
                                                           Gross
                                         Amortized      Unrealized      Unrealized           Fair
                                             Cost          Gains           Losses            Value
                                       ------------------------------------------------------------

U.S. Treasury ......................   $  1,991,757   $     28,243    $        --      $  2,020,000
U.S. Government agencies
  and corporations .................     46,140,719        172,140        (73,125)       46,239,734
State and political subdivisions ...     23,804,080        101,485       (141,161)       23,764,404
                                       ------------------------------------------------------------
                                       $ 71,936,556   $    301,868    $  (214,286)     $ 72,024,138
                                       ============================================================


                                       F-12



The  amortized  cost  and  fair  value of  securities  available  for sale as of
December 31, 2001 and 2000, by contractual maturity are shown below:


                                                     2001                         2000
                                         ---------------------------------------------------------
                                           Amortized        Fair         Amortized       Fair
                                             Cost          Value           Cost         Value
                                         ---------------------------------------------------------
                                                                         
  Due in one year or less .............. $ 10,000,000   $ 10,230,243   $         --   $         --
  Due after one year through five years    15,792,542     16,462,813    150,086,394    149,138,632
  Due after five years through ten years    2,000,000      2,002,976     45,495,570     44,626,320
  Due after ten years ..................    4,137,963      4,263,472     16,025,000     15,537,719
                                         ---------------------------------------------------------
                                         $ 31,930,505   $ 32,959,504   $211,606,964   $209,302,671
                                         =========================================================


The amortized cost and fair value of securities  held to maturity as of December
31, 2001 and 2000, by contractual maturity are shown below:

                                                 2001                                  2000
                                         ---------------------------   ---------------------------
                                          Amortized         Fair          Amortized           Fair
                                            Cost            Value           Cost             Value
                                         ---------------------------------------------------------
                                                                         
  Due in one year or less .............. $ 17,296,404   $ 17,355,675   $  7,245,431   $  7,237,041
  Due after one year through five years   117,716,291    118,170,854     55,527,696     55,728,791
  Due after five years through ten years    7,794,542      7,825,903      5,130,944      5,024,850
  Due after ten years ..................   10,576,711     10,539,430      4,032,485      4,033,456
                                         ---------------------------------------------------------
                                         $153,383,948   $153,891,862   $ 71,936,556   $ 72,024,138
                                         =========================================================


For the years ended  December 31, 2001,  2000 and 1999,  proceeds  from sales of
securities  available for sale amounted to $0, $1,103,015 and $0,  respectively.
Security  gains of $0, $809 and $0, were  realized for the years ended  December
31, 2001, 2000 and 1999, respectively.

Securities with a carrying amount amortized costs of approximately  $105,453,000
and $217,633,500 as of December 31, 2001 and 2000, respectively, were pledged as
collateral  on the treasury tax and loan option  notes,  repurchase  agreements,
federal funds purchased,  FHLB notes payable, and for other purposes as required
or permitted by law or regulation.

The  components of other  comprehensive  income,  unrealized  gains  (losses) on
securities, net of tax for the years ended December 31, 2001, 2000 and 1999, are
as follows:


                                                                    2001            2000            1999
                                                               --------------------------------------------
                                                                                     
  Unrealized holding gains (losses) arising during the period  $  3,333,292    $  7,483,461    $(10,215,594)

  Less reclassification adjustment for (gains) realized in net
     income ..................................................           --            (809)             --
                                                               --------------------------------------------
        Other comprehensive income, net unrealized
          gains (losses) before tax benefit (expense) ......      3,333,292       7,482,652     (10,215,594)

  Tax benefit (expense) ....................................     (1,266,652)     (2,863,731)      3,909,672
                                                               --------------------------------------------
  Other comprehensive income, net unrealized
          gains (losses) on securities, net of tax ..........  $  2,066,640    $  4,618,921    $ (6,305,922)

                                                               ============================================

                                       F-13


Loans are as follows, as of December 31, 2001 and 2000:

                                                 2001                2000
                                            --------------------------------

Commercial                                  $ 226,182,538       $234,088,689
Real estate:
  Construction, land, and land development     33,954,098         16,249,532
  1 - 4 family residential                     71,628,342         81,982,902
  Commercial                                  138,408,758        138,705,353
Consumer and other loans                       23,333,194         29,221,493
                                            --------------------------------
                                              493,506,930        500,247,969
                                            --------------------------------

Allowance for loan losses                       4,239,990          4,194,498
Unearned discount and loan fees                   108,488            169,017
                                            --------------------------------
                                                4,348,478          4,363,515
                                            --------------------------------

                                            $ 489,158,452       $495,884,454
                                            ================================

The loan portfolio includes approximately $305,571,000 and $324,525,000 of fixed
rate  loans and  $187,936,000  and  $175,723,000  of  variable  rate loans as of
December 31, 2001 and 2000, respectively.

Loans of  approximately  $583,000 and  $1,437,000  as of December 2001 and 2000,
respectively,  were  pledged as  collateral  on the treasury tax and loan option
notes and for other purposes as required or permitted by regulation.

Changes in the  allowance  for loan  losses  were as follows for the years ended
December 31, 2001, 2000, and 1999:

                                     2001          2000          1999
                                -----------------------------------------

Balance, at beginning of year    $ 4,194,498   $ 4,040,450   $ 3,871,707
Provision for loan losses          1,062,500     1,190,000       290,000
Recoveries                            66,316       140,307        78,596
Charge-offs                       (1,083,324)   (1,176,259)     (199,853)
                                -----------------------------------------
Balance, at end of year          $ 4,239,990   $ 4,194,498   $ 4,040,450
                                =========================================

Impaired loans (nonaccrual loans) were approximately $878,000 and $705,000 as of
December 31, 2001 and 2000,  respectively.  The total  allowance for loan losses
related to these loans was approximately  $87,800 and $70,500 as of December 31,
2001 and 2000,  respectively.  The average recorded investment in impaired loans
during 2001 and 2000 was  approximately  $696,000  and  $380,000,  respectively.
Interest income on impaired loans was insignificant during 2001 and 2000.

                                       F-14


The  Company  has  had,  and may be  expected  to have  in the  future,  banking
transactions  in the  ordinary  course of  business  with  directors,  executive
officers,  their immediate families,  and affiliated companies in which they are
principal  stockholders  (commonly referred to as related parties), all of which
have been, in the opinion of management,  on the same terms,  including interest
rates  and  collateral,   as  those   prevailing  at  the  time  for  comparable
transactions with unrelated parties.

Loan  transactions  with  related  parties  were as follows  for the years ended
December 31, 2001 and 2000:

                                            2001                2000
                                        ---------------------------------

Balance, beginning of year               $ 32,840,527        $31,754,723
New loans                                   2,900,184         10,572,962
Repayments                                 (6,788,548)        (9,487,158)
Reductions due to director retirements    (13,664,735)                 -
                                        ---------------------------------
Balance, end of year                     $ 15,287,428        $32,840,527
                                        =================================


Note 4.  Bank Premises and Equipment

Bank premises and equipment are as follows as of December 31, 2001 and 2000:

                                          2001               2000
                                      -----------------------------

Land                                  $   56,000         $   56,000
Building                                 195,793            195,793
Equipment                              2,482,919          2,241,981
Leasehold improvements                   832,129            832,129
                                      -----------------------------
                                       3,566,841          3,325,903
Accumulated depreciation               2,419,691          2,266,263
                                      -----------------------------
                                      $1,147,150         $1,059,640
                                      =============================

Note 5.  Deposits

At December 31, 2001, the approximate  scheduled maturities of time deposits are
as follows:

2002                                      $ 82,485,779
2003                                        47,494,561
2004                                        15,460,623
2005                                           277,838
2006 and thereafter                            198,751
                                           -----------
                                          $145,917,552
                                          ============

Note 6.  Short-Term Borrowings

Short-term borrowings as of December 31, 2001 and 2000, and the related interest
expense for the years 2001, 2000, and 1999 consisted of Treasury,  Tax, and Loan
option notes.

The notes are collateralized by certain loans and investment securities.

Note 7.  Long-Term Borrowings

At December 31, 2001, long-term borrowings consist of the following Federal Home
Loan Bank (FHLB) advances:

                        Interest                 Next Call     Call
        Amount            Rate      Maturity       Date      Frequency
--------------------------------------------------------------------------------

          $ 10,000,000    5.24%    01/28/2008   01/26/2002   Quarterly
            10,000,000    5.39     03/31/2008   04/02/2002   Quarterly
             3,000,000    5.63     03/31/2008   03/31/2003   Quarterly
             5,000,000    4.99     09/11/2008   09/11/2002   Quarterly
            20,000,000    5.96     03/10/2010   03/12/2002   Quarterly
          ------------
          $ 48,000,000
          ============

                                       F-15


The advances are collateralized by FHLB stock,  investment securities,  and real
estate loans as required by the FHLB's collateral policy.

At  December  31,  2001,  the Bank had  arrangements  to borrow  $60  million in
unsecured  federal  funds  lines of  credit  at  correspondent  banks  which are
available  under the  correspondent  bank's normal terms.  These lines expire at
various times through  December 2002.  There were no amounts  outstanding  under
these arrangements at December 31, 2001.

Note 8. Income Taxes

The  components of income tax expense are as follow for the years ended December
31, 2001, 2000 and 1999:

                  2001              2000               1999
              -------------------------------------------------

Current:
Federal       $ 7,603,709        $ 7,002,528        $ 7,390,099
State           1,239,273          1,124,800          1,179,100
Deferred         (145,943)           (91,453)          (103,597)
              --------------------------------------------------
              $ 8,697,039        $ 8,035,875        $ 8,465,602
              ==================================================

Total income tax expense  differed from the amounts  computed by applying the U.
S. Federal  income tax rates of 35% to income  before income taxes s a result of
the following:

                                              Years Ended December 31,
                             ------------------------------------------------------------
                                    2001                2000                 1999
                             ------------------------------------------------------------
                                        Percent             Percent              Percent
                                       of Pretax           of Pretax            of Pretax
                               Amount   Income      Amount   Income    Amount    Income
                             ------------------------------------------------------------
                                                          
Computed "expected" tax
  expense .................. $8,551,719  35.0%   $7,858,310  35.0%  $8,196,639    35.0%
State income tax, net of
  federal income tax benefit    796,055   3.3%      731,120   3.3%     766,415     3.3%
Tax-exempt interest income     (784,765) (3.2)%    (715,874) (3.2)%   (602,248)   (2.6)%
Non-deductible interest
  expense to own
  tax-exempt securities         121,249   0.5%      148,557   0.7%      80,626     0.4%
Other, net ...............       12,781   0.0%       13,762   0.0%      24,170     0.1%
                             ----------------------------------------------------------
                             $8,697,039  35.6%   $8,035,875  35.8%  $8,465,602    36.2%
                             ==========================================================


                                       F-16


Note 8.  Income Taxes

Net deferred tax assets  consist of  approximately  the following as of December
31, 2001 and 2000.
                                                           2001        2000
                                                       -----------------------

  Deferred tax assets:
   Allowance for loan losses                            $1,611,000 $ 1,594,000
   Net unrealized loss on securities available for sale          -     875,630
   State net operating loss carryforward                    56,900      77,200
   Other                                                   140,000     119,000
                                                        ----------------------
                                                         1,807,900   2,665,830
                                                        ----------------------

  Deferred income tax liabilities:
   Deferred loan fees                                      368,000     419,000
  Net unrealized gain on securities available for sale     391,019           -
  Other                                                    158,058     215,000
                                                       -----------------------
                                                           917,077     634,000
                                                       -----------------------

  Net deferred tax asset before valuation allowance        890,823   2,031,830
  Valuation allowance for deferred tax asset               (56,900)    (77,200)
                                                       -----------------------

         Net deferred tax asset                          $ 833,923  $1,954,630
                                                       =======================

The net  deferred  tax asset is included on the  consolidated  Balance  Sheet in
other assets.

The Company has approximately $949,000 of operating loss carryforwards available
to the Holding  Company to offset future state taxable  income.  The Company has
recorded a valuation  allowance  against  the tax effect of those net  operating
loss  carryforwards as management  believes it is more likely than not that such
carryforwards  will expire  without being  utilized.  The state  operating  loss
carryforwards expire as follows:

Year expiring:
2002                                                     $ 277,000
2003                                                       217,000
2004                                                       209,000
2005                                                        84,000
2006 and thereafter                                        162,000
                                                         ---------
                                                         $ 949,000
                                                         =========

Note 9.  Regulatory Capital Requirements

The  Company  and Bank are subject to various  regulatory  capital  requirements
administered  by federal and state  banking  agencies.  Failure to meet  minimum
capital  requirements  can initiate  certain  mandatory and possibly  additional
discretionary  actions by regulators  that, if  undertaken,  could have a direct
material  effect  on the  Company's  consolidated  financial  statements.  Under
capital  adequacy  guidelines  and  regulatory  framework for prompt  corrective
action, the Bank must meet specific capital guidelines that involve quantitative
measures of the Bank's assets, liabilities,  and certain off-balance-sheet items
as calculated under regulatory  accounting  practices.  The Company's and Bank's
capital amounts and classification are also subject to qualitative  judgments by
the regulators about components, risk weightings, and other factors.

Quantitative  measures  established  by  regulation to ensure  capital  adequacy
require  the Bank to  maintain  minimum  amounts  and  ratios  (set forth in the
following table) of total and Tier I capital to risk-weighted assets and of Tier
I capital to average  assets.  Management  believes as of December 31, 2001, the
Company  and Bank  met all  capital  adequacy  requirements  to  which  they are
subject.

As of December 31, 2001, the most recent  notification from regulatory  agencies
categorized  the Bank as well  capitalized  under the  regulatory  framework for
prompt corrective  action. To be categorized as well capitalized,  the Bank must
maintain minimum total risk-based, Tier I risk-based, and Tier I leverage ratios
as set forth in the  following  table.  There are no  conditions or events since
that  notification  that  management  believes  have  changed the  institution's
category.

                                       F-17



The Holding Company's capital amounts and ratios are as follows:


                                                                          To Be Well
                                                                       Capitalized Under
                                                    For Capital        Prompt Corrective
                                  Actual          Adequacy Purposes    Action Provisions
                          ---------------------------------------------------------------
                             Amount     Ratio       Amount    Ratio     Amount     Ratio
                          ---------------------------------------------------------------
                                                                   
As of December 31, 2001:
  Total Capital (to Risk-
   Weighted Assets)          $ 82,534,000   13.6%   $ 48,737,000  8.0%  $ 60,921,000  10.0%
  Tier I Capital (to Risk-
   Weighted Assets)            78,294,000   12.9      24,368,000  4.0     36,552,000   6.0
  Tier I Capital (to
   Average Assets)             78,294,000    9.3     33,795,000   4.0     42,244,000   5.0

As of December 31, 2000:
  Total Capital (to Risk-
   Weighted Assets)          $ 76,351,000   13.6%   $ 44,942,000  8.0%  $ 56,177,000  10.0%
  Tier I Capital (to Risk-
   Weighted Assets)            72,157,000   12.8      22,471,000  4.0     33,706,000   6.0
  Tier I Capital (to
   Average Assets)             72,157,000    8.6      33,434,000  4.0     41,792,000   5.0


The Bank is restricted  as to the amount of dividends  which may be paid without
prior regulatory  approval.  The Bank may not pay dividends that would result in
its capital levels being reduced below the minimum  requirements shown above. As
of  December  31,  2001,  the Bank had  approximately  $25  million of  retained
earnings available for dividends.

Note 10. Commitments and Contingencies and Related-Party Leases

The Company  leases real estate  under  several  noncancelable  operating  lease
agreements.  Rent expense was approximately $666,000,  $670,000 and $619,000 for
the years ended December 31, 2001, 2000, and 1999, respectively.

The Company leases certain real estate from a director of the Company.  Terms of
the noncancelable  operating leases were consummated prior to the director being
named  by  the  Company  in  1996.   Rent  expense  to  the  related  party  was
approximately $149,000,  $155,000, and $137,000 for the years ended December 31,
2001, 2000, and 1999, respectively.

The approximate total minimum rental commitments as of December 31, 2001, are as
follows:

                              Related Party         Total
                              -----------------------------

2002                          $ 149,000          $ 463,000
2003                            149,000            344,000
2004                            122,000            318,000
2005                             55,000            236,000
2006                             55,000            221,000
Thereafter                      649,000          2,011,000
                              -----------------------------
                              $1,179,000        $ 3,593,000
                              =============================

Required reserve  balances:  The Bank is required to maintain an average reserve
balance  with  the  Federal  Reserve  Bank.   Required   reserve  balances  were
approximately   $698,000  and  $655,000  as  of  December  31,  2001  and  2000,
respectively.

Financial  instruments  with  off-balance-sheet  risk:  The  Company is party to
financial  instruments  with  off-balance-sheet  risk in the  normal  course  of
business  to  meet  the  financing  needs  of  its  customers.  These  financial
instruments  include commitments to extend credit and standby letters of credit.
These instruments involve, to varying degrees, elements of credit risk in excess
of the amount recognized in the consolidated balance sheets.


                                       F-18


The  Company's  exposure  to credit loss in the event of  nonperformance  by the
other party to the financial  instrument  for  commitments  to extend credit and
standby  letters of credit is  represented  by the  contractual  amount of those
instruments. The Company uses the same credit policies in making commitments and
conditional  obligations  as  they  do for on  balance  sheet  instruments.  The
Company's  commitments  as of December 31, 2001 and 2000, are  approximately  as
follows:

                                                  2001              2000
                                            --------------------------------

Commitments to extend credit                $ 131,302,000       $113,176,000
Standby letters of credit                       8,172,000         10,188,000
                                            --------------------------------
                                            $ 139,474,000       $123,364,000
                                            ================================

Commitments  to extend  credit are  agreements  to lend to a customer as long as
there is no violation of any condition  established in the contract.  Since many
of the  commitments  are expected to expire  without being drawn upon, the total
commitment amounts do not necessarily  represent future cash  requirements.  The
Company evaluates each customer's  creditworthiness on a case-by-case basis. The
amount of collateral  obtained is based on management's credit evaluation of the
party.  Collateral  held varies,  but may include  accounts  receivable,  crops,
livestock,  inventory,  property and  equipment,  residential  real estate,  and
income-producing commercial properties.

Standby letters of credit are conditional  commitments  issued by the Company to
guarantee the performance of a customer to a third party.  Those  guarantees are
primarily  issued to support  public and  private  borrowing  arrangements.  The
credit risk  involved in issuing  letters of credit is  essentially  the same as
that involved in extending loan facilities to customers.  Collateral held varies
as  specified  above  and is  required  in  instances  which the  Company  deems
necessary.

Concentrations  of  credit  risk:  Substantially  all  of the  Company's  loans,
commitments to extend credit, and standby letters of credit have been granted to
customers  in the  Company's  market  area (a 50-mile  radius of the greater Des
Moines,  Iowa,  metropolitan  area).  Securities  issued by state and  political
subdivisions  involve  governmental  entities  within  the  state of  Iowa.  The
concentrations  of  credit  by type  of  loan  are  set  forth  in  Note 3.  The
distribution of commitments to extend credit  approximates  the  distribution of
loans  outstanding.   Standby  letters  of  credit  were  granted  primarily  to
commercial borrowers.

Contingencies:  In the normal  course of  business,  the  Company is involved in
various legal proceedings. In the opinion of management, any liability resulting
from  such  proceedings  would  not  have  a  material  adverse  effect  on  the
consolidated financial statements.

Note 11. Profit Sharing Plan

The Company  sponsors a profit  sharing plan covering  substantially  all of its
employees. The plan provides for contributions the Board of Directors determines
annually.  Profit sharing  expense for the years ended December 31, 2001,  2000,
and 1999, was approximately $224,000, $220,000, and $278,000, respectively.

During 2000,  the Company added a 401(k)  feature to this plan.  The plan allows
eligible employees to defer a portion of their  compensation  ranging from 1% to
12%. The Company is required to match a portion of the employees'  contribution.
The Company's match is 100% of the first 2% of employee  deferral and 50% of the
next 2% of employee deferral.  Expense for the years ended December 31, 2001 and
2000 was approximately $98,000 and $70,000, respectively.

                                       F-19


Note 12. Estimated Fair Values of Financial Instruments

FASB No. 107,  Disclosures About Fair Value of Financial  Instruments,  requires
disclosure of fair value information about financial instruments, whether or not
recognized in the balance  sheet,  for which it is  practicable to estimate that
value.  In cases where quoted market prices are not  available,  fair values are
based on estimates  using present  value or other  valuation  techniques.  Those
techniques are  significantly  affected by the assumptions  used,  including the
discount  rate and estimates of future cash flows.  In that regard,  the derived
fair value  estimates  cannot be  substantiated  by  comparison  to  independent
markets and, in many cases,  are not necessarily  indicative of the amounts that
the Company could realize in a current  market  exchange.  SFAS No. 107 excludes
all nonfinancial instruments from its disclosure requirements.  Accordingly, the
aggregate fair value amounts  presented do not represent the underlying value of
the Company.

The following methods and assumptions were used by the Company in estimating the
fair value of its financial instruments:

   Cash and due from banks: The carrying amount approximates fair value.

   Federal  funds sold and other short term  investments:  The  carrying  amount
   approximates fair value.

   Securities:  Fair values for  securities  are based on quoted market  prices,
   where available.  If quoted market prices are not available,  fair values are
   based on quoted market prices of comparable financial instruments.

   Federal  Home Loan  Bank  stock:  The fair  value of this  untraded  stock is
   estimated at its carrying value and redemption price of $100 per share.

   Loans: Fair values of loans are estimated using discounted cash flow analyses
   based on interest rates  currently being offered for loans with similar terms
   to borrowers with similar credit quality.

   Deposits:  The  carrying  amounts  for demand  and  savings  deposits,  which
   represents the amount payable on demand, approximates their fair values. Fair
   values for fixed-rate and variable-rate certificates of deposit are estimated
   using  discounted  cash flow analyses based on interest rates currently being
   offered on certificates with similar terms.

   Accrued  interest  receivable  and  payable:  The fair values of both accrued
   interest receivable and payable approximate their carrying amounts.

   Federal funds  purchased and securities  sold under  agreements to repurchase
   and other  borrowings:  The carrying  amount of federal  funds  purchased and
   securities sold under  agreements to repurchase and certain other  borrowings
   approximate  their  fair  values.  Fair  values of FHLB term  borrowings  are
   estimated  using  discounted  cash  flow  analysis  based on  interest  rates
   currently being offered with similar terms.

   Commitments to extend credit and standby  letters of credit:  The approximate
   fair values of commitments and standby letters of credit are considered equal
   to their notional values,  based on the fees currently  charged to enter into
   similar agreements, taking into account the remaining terms of the agreements
   and credit worthiness of the counterparties.

                                       F-20


   The  approximate  carrying  amounts  and fair  values  are as  follows  as of
December 31, 2001 and 2000:

                                                       2001                          2000
                                             -----------------------------------------------------------
                                             Carrying       Approximate     Carrying     Approximate
                                              Amount         Fair Value      Amount       Fair Value
                                             -----------------------------------------------------------
                                                                             
Financial assets:
  Cash and due from banks ................   $ 34,461,000   $ 34,461,000   $ 23,562,000   $ 23,562,000
  Federal funds sold and other short-
    term investments .....................     93,989,000     93,989,000      2,949,000      2,949,000
  Securities available for sale ..........     32,960,000     32,960,000    209,303,000    209,303,000
  Securities held to maturity ............    153,384,000    153,892,000     71,937,000     72,024,000
  Federal Home Loan Bank stock ...........      3,130,000      3,130,000     11,132,000     11,132,000
  Loans, net .............................    489,158,000    494,200,000    495,884,000    493,178,000
  Accrued interest receivable ............      5,103,000      5,103,000      8,262,000      8,262,000
Financial liabilities:
  Deposits ...............................    571,730,000    574,220,000    547,283,000    547,277,000
  Federal funds purchased and
    securities sold under agreements
    to repurchase ........................    107,832,000    107,832,000    154,117,000    154,117,000
  Other short-term borrowings ............      6,000,000      6,000,000      3,612,000      3,612,000
  Accrued interest payable ...............      1,660,000      1,660,000      3,139,000      3,139,000
  Long-term borrowings ...................     48,000,000     47,181,000     48,000,000     49,198,000
Off-balance-sheet financial instruments:
  Commitments to extend credit ...........             --             --             --             --
  Standby letters of credit ..............             --             --             --             --


Note 13. West  Bancorporation  Inc.  (Parent Company Only)  Condensed  Financial
         Statements

                   STATEMENTS OF FINANCIAL CONDITION
                       December 31, 2001 and 2000

                                                      2001          2000
                                                 --------------------------
ASSETS

Cash                                             $    70,177   $     93,787
Investment in West Des Moines State Bank          78,932,712     70,748,422
Other assets                                           9,372          3,135
                                                 --------------------------
       Total assets                              $79,012,261    $70,845,344
                                                 ===========================
LIABILITIES AND EQUITY

LIABILITIES                                      $        -    $         -
                                                 --------------------------
EQUITY
  Common stock                                     3,000,000      3,000,000
  Additional paid-in capital                      32,000,000     32,000,000
  Retained earnings                               43,374,281     37,274,004
  Accumulated other comprehensive income (loss)      637,980     (1,428,660)
                                                 --------------------------

        Total equity                              79,012,261     70,845,344
                                                 --------------------------

        Total liabilities and equity             $79,012,261    $70,845,344
                                                 ==========================




                                       F-21




                              STATEMENTS OF INCOME
                    Years Ended December 31, 2001, 2000, 1999

                                           2001        2000        1999
                                      --------------------------------------
Operating income:
  Equity in net income of subsidiary  $ 15,753,812  $14,422,235  $15,001,489
  Interest income                            1,806        2,792        3,992
                                      --------------------------------------
                                        15,755,618   14,425,027   15,005,481
                                      --------------------------------------

Operating expenses:
  Salaries and employee benefits            15,537            -            -
  Other                                     12,997       11,710       77,456
                                      --------------------------------------
                                            28,534       11,710       77,456
                                      --------------------------------------
        Income before income taxes      15,727,084   14,413,317   14,928,025

Provision for income taxes                  (9,356)      (3,125)     (25,341)
                                      --------------------------------------

        Net income                    $ 15,736,440  $14,416,442  $14,953,366
                                      ======================================



                                       F-22



                  STATEMENTS OF CASH FLOWS
         Years Ended December 31, 2001, 2000 and 1999

                                                       2001           2000        1999
                                                  ----------------------------------------
                                                                    
CASH FLOWS FROM OPERATING ACTIVITIES
 Net income ....................................  $ 15,736,440   $ 14,416,442 $ 14,953,366
 Adjustments to reconcile net income to net cash
  provided by operating activities:
 Equity in net income of West Des Moines
  State Bank ....................................  (15,753,812)   (14,422,235) (15,001,489)
 Dividends received from West Des Moines
  State Bank ....................................    9,636,163      9,314,957    8,566,232
 Changes in other assets ........................       (6,238)        22,572       30,303
                                                   ---------------------------------------
         Net cash provided by
          operating activities ..................    9,612,553      9,331,736    8,548,412
                                                   ---------------------------------------

CASH FLOW FROM INVESTING ACTIVITIES
 Net decrease in loans ..........................           --             --       44,000
                                                   ---------------------------------------


CASH FLOWS FROM FINANCING ACTIVITIES
 Dividends paid .................................    (9,636,163)   (9,314.957)  (8,566,232)
                                                   ---------------------------------------

      Net increase (decrease) in cash ...........       (23,610)       16,779       26,180

CASH
 Beginning ......................................        93,787        77,008       50,828
                                                   ---------------------------------------
 Ending .........................................  $     70,177  $     93,787 $     77,008
                                                   =======================================



                                       F-23



Note 14. Selected Quarterly Financial Data (Unaudited)

                                                                    2001
                                                 ------------------------------------------------
Quarter ended ................................   March 31     June 30   September 30  December 31
                                                 ------------------------------------------------
                                                    (In thousands, except per share data)
                                                                            
Interest income ..............................   $15,016      $14,060      $13,428       $12,110
Interest expense .............................     8,126        6,753        5,749         4,324
                                                 -----------------------------------------------
Net interest income ..........................     6,890        7,307        7,679         7,786
Provision for loan losses ....................       193          270          300           300
                                                 -----------------------------------------------
Net interest income after provision for
loan losses ..................................     6,697        7,037        7,379         7,486
Noninterest income ...........................     1,377        1,640        1,615         1,682
Noninterest expense ..........................     2,644        2,665        2,714         2,457
                                                 -----------------------------------------------
Income before income taxes ...................     5,430        6,012        6,280         6,711
Income taxes .................................     1,933        2,142        2,233         2,389
                                                 -----------------------------------------------
Net income ...................................   $ 3,497      $ 3,870      $ 4,047       $ 4,322
                                                 ===============================================
Net income per common share - basic ..........   $  0.22      $  0.24      $  0.25       $  0.27
                                                 ===============================================

                                                                    2000
                                                 -----------------------------------------------
Quarter ended .................................  March 31     June 30   September 30 December 31
                                                 -----------------------------------------------
                                                    (In thousands, except per share data)

Interest income ...............................  $14,467      $15,212      $15,659       $15,861
Interest expense ..............................    7,295        8,245        9,018         9,081
                                                 -----------------------------------------------
Net interest income ...........................    7,172        6,967        6,641         6,780
Provision for loan losses .....................       85           90           90           925
                                                 -----------------------------------------------
Net interest income after provision for-
loan losses ...................................    7,087        6,877        6,551         5,855
Noninterest income ............................    1,234        1,507        1,428         1,509
Noninterest expense ...........................    2,570        2,444        2,445         2,137
                                                  ----------------------------------------------
Income before income taxes ....................    5,751        5,940        5,534         5,227
Income taxes ..................................    2,068        2,137        1,972         1,859
                                                 -----------------------------------------------
Net income ....................................  $ 3,683      $ 3,803      $ 3,562       $ 3,368
                                                 ===============================================

Net income per common share - basic ...........  $  0.23      $  0.24      $  0.22       $  0.21
                                                 ===============================================



                                       F-24