Regulatory Capital Requirements (Notes)

12 Months Ended

Dec. 31, 2011

Regulatory Capital Requirements [Abstract]

Regulatory Capital Requirements

Note 11. Regulatory Capital Requirements

The Company and West Bank are subject to various regulatory capital requirements administered by federal and state banking agencies.  Failure to meet minimum capital requirements can result in certain mandatory and possibly additional discretionary actions by regulators which, 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 Company and West Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices.  The Company's and West 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 Company and West Bank to maintain minimum amounts and ratios (set forth in the following table) of Total and Tier 1 Capital to Risk-Weighted Assets and of Tier 1 Capital to Average Assets.  Management believes the Company and West Bank met all capital adequacy requirements to which they were subject as of December 31, 2011.  Prompt corrective action provisions are not applicable to the Holding Company.

On April 28, 2010, West Bank entered into a memorandum of understanding (MOU) with the Iowa Division of Banking (IDOB) and the Federal Deposit Insurance Corporation (FDIC) that established certain requirements for West Bank's Total Capital to Risk-Weighted Assets ratio and its Tier 1 Capital to Average Assets ratio. Effective June 3, 2011, the MOU with the IDOB and the FDIC was terminated.

As of December 31, 2011, the most recent notification from regulatory agencies categorized West Bank as well-capitalized under the regulatory framework for prompt corrective action.  

The Company's and West Bank's capital amounts and ratios are presented in the following table.

	Actual				For Capital Adequacy Purposes				To Be Well-Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
As of December 31, 2011:
Total Capital (to Risk-Weighted Assets)
Consolidated	$	154,728	16.27	%	$	76,075	8.0	%	n/a		n/a
West Bank	138,508		15.09		73,433		8.0		$	91,791	10.0	%
Tier 1 Capital (to Risk-Weighted Assets)
Consolidated	142,781		15.01		38,037		4.0		n/a		n/a
West Bank	126,969		13.83		36,716		4.0		55,075		6.0
Tier 1 Capital (to Average Assets)
Consolidated	142,781		11.05		51,695		4.0		n/a		n/a
West Bank	126,969		9.95		51,046		4.0		63,808		5.0
As of December 31, 2010:
Total Capital (to Risk-Weighted Assets)
Consolidated	$	180,443	17.69	%	$	81,620	8.0	%	n/a		n/a
West Bank	162,713		16.54		78,684		8.0		$	98,355	10.0	%
Tier 1 Capital (to Risk-Weighted Assets)
Consolidated	167,612		16.43		40,810		4.0		n/a		n/a
West Bank	150,335		15.28		39,342		4.0		59,013		6.0
Tier 1 Capital (to Average Assets)
Consolidated	167,612		11.77		56,979		4.0		n/a		n/a
West Bank	150,335		10.67		56,333		4.0		70,416		5.0

Intangible assets are not included in capital or assets when calculating regulatory capital ratios. The Company's tangible common equity ratio at December 31, 2011, was 9.72 percent, up from 8.49 percent at December 31, 2010.  The tangible common equity ratio is computed by dividing total equity less preferred stock and intangible assets by total assets less intangible assets. As of December 31, 2011, the Company had no intangible assets.