wtba-20250424
0001166928false00011669282025-04-242025-04-24


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


Date of Report (Date of Earliest Event Reported): April 24, 2025


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

Iowa0-4967742-1230603
(State or other jurisdiction of incorporation)(Commission File Number)(I.R.S. Employer Identification No.)


3330 Westown Parkway, West Des Moines, Iowa 50266
(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code: 515-222-2300


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered or to be registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, no par valueWTBAThe Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o


Item 2.02 Results of Operations and Financial Condition.

On April 24, 2025, West Bancorporation, Inc. (the "Company") issued a press release announcing its first quarter earnings results for the period ended March 31, 2025, and the declaration of a quarterly dividend. A copy of the press release is attached hereto as Exhibit 99.1.

The information furnished in this item of this Form 8-K, and the related exhibit, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, except as may be expressly set forth by specific reference in such filing.

Item 7.01 Regulation FD Disclosure.

The Company hereby furnishes the Earnings Presentation attached hereto as Exhibit 99.2.

The information furnished in this item of this Form 8-K, and the related exhibit, shall not be deemed "filed" for purposes of Section 18 of the Exchange Act, or incorporated by reference in any filing under the Securities Act or the Exchange Act, except as may be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.
(d) Exhibits:
Exhibit NumberDescription
99.1
99.2
104Cover Page Interactive Data File (embedded within the Inline XBRL document)



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

West Bancorporation, Inc.
April 24, 2025By:/s/ Jane M. Funk
Name: Jane M. Funk
Title: Executive Vice President, Treasurer and Chief Financial Officer





Exhibit 99.1

wtbalogoedita06a01a01a01a22.jpg


Press Release
 
April 24, 2025
 
FOR IMMEDIATE RELEASE
For more information contact:
Jane Funk, Executive Vice President, Treasurer and Chief Financial Officer (515) 222-5766
 
WEST BANCORPORATION, INC. ANNOUNCES FIRST QUARTER 2025 FINANCIAL RESULTS AND DECLARES QUARTERLY DIVIDEND

West Des Moines, IA - West Bancorporation, Inc. (Nasdaq: WTBA; the “Company”), parent company of West Bank, today reported first quarter 2025 net income of $7.8 million, or $0.46 per diluted common share, compared to fourth quarter 2024 net income of $7.1 million, or $0.42 per diluted common share, and first quarter 2024 net income of $5.8 million, or $0.35 per diluted common share. On April 23, 2025, the Company’s Board of Directors declared a regular quarterly dividend of $0.25 per common share. The dividend is payable on May 21, 2025, to stockholders of record on May 7, 2025.

David Nelson, President and Chief Executive Officer of the Company, commented, “In the first quarter of 2025, we have continued to see improvements in net interest margin and efficiency ratio compared to 2024, resulting in a significant improvement in net income compared to the first quarter of 2024. We are pleased with our progress in our balance sheet repricing efforts. Loan growth was modest in the first quarter, as expected with the current economic uncertainty.”

David Nelson added, “One thing that remains the same is our best-in-class credit quality metrics. We had no loans past due greater than 90 days at March 31, 2025, and only one loan past due greater than 30 days with an insignificant balance of $181 thousand. We continue to identify high-quality opportunities for growing our core customer base in all of our markets.”

First Quarter 2025 Financial Highlights
Quarter Ended March 31, 2025Quarter Ended December 31, 2024Quarter Ended March 31, 2024
Net income (in thousands)$7,842$7,097$5,809
Return on average equity13.84 %12.24 %10.63 %
Return on average assets0.81 %0.68 %0.61 %
Efficiency ratio (a non-GAAP measure)56.37 %60.79 %62.04 %
Nonperforming assets to total assets0.00 %0.00 %0.01 %

First Quarter 2025 Compared to Fourth Quarter 2024 Overview

•Loans increased $11.6 million in the first quarter of 2025, primarily due to an increase in commercial loans and commercial real estate loans, partially offset by a decline in construction loans.

•No credit loss expense on loans was recorded in the first quarter of 2025, compared to credit loss expense on loans of $1.0 million recorded in the fourth quarter of 2024. The credit loss expense on loans in the fourth quarter of 2024 was due to an adjustment to qualitative factors in the commercial real estate loan segment.

•The allowance for credit losses to total loans was 1.01 percent at both March 31, 2025 and December 31, 2024. Nonaccrual loans at March 31, 2025 consisted of one loan with a balance of $181 thousand, compared to one loan with a balance of $133 thousand at December 31, 2024.




•Deposits decreased $33.1 million, or 1.0 percent, in the first quarter of 2025. Brokered deposits totaled $335.5 million at March 31, 2025, compared to $266.4 million at December 31, 2024, an increase of $69.1 million. Excluding brokered deposits, deposits decreased $102.2 million, or 3.3 percent, during the first quarter of 2025. The decline in deposits was due to normal cash flow fluctuations of our core depositors. As of March 31, 2025, estimated uninsured deposits, which exclude deposits in the IntraFi® reciprocal network, brokered deposits and public funds protected by state programs, accounted for approximately 28.0 percent of total deposits.

•Net interest margin, on a fully tax-equivalent basis (a non-GAAP measure), was 2.28 percent for the first quarter of 2025, compared to 1.98 percent for the fourth quarter of 2024. Net interest income for the first quarter of 2025 was $20.9 million, compared to $19.4 million for the fourth quarter of 2024. The increase in net interest margin and net interest income was primarily due to a decrease in deposit rates, driven by the Federal Reserve’s reductions of the federal funds target rate in the fourth quarter of 2024. The cost of deposits decreased 38 basis points in the first quarter of 2025, compared to the fourth quarter of 2024.

•The efficiency ratio (a non-GAAP measure) was 56.37 percent for the first quarter of 2025, compared to 60.79 percent for the fourth quarter of 2024. The improvement in the efficiency ratio was primarily due to the increase in net interest income and decrease in noninterest expense, partially offset by a decrease in trust services income.
•The tangible common equity ratio was 5.97 percent as of March 31, 2025, compared to 5.68 percent as of December 31, 2024. The increase in the tangible common equity ratio was due to retained net income and the decrease in accumulated other comprehensive loss, which was the result of an increase in the market value of our available for sale securities portfolio.

•Income tax expense increased $2.8 million in the first quarter of 2025 compared to the fourth quarter of 2024. This was primarily due to recording an income tax benefit of $1.8 million in the fourth quarter of 2024 for an energy related investment tax credit associated with the construction of the Company’s new headquarters building.

First Quarter 2025 Compared to First Quarter 2024 Overview

•Loans increased $36.3 million at March 31, 2025, or 1.2 percent, compared to March 31, 2024. The increase is primarily due to the increase in commercial real estate loans, partially offset by decreases in commercial loans and construction loans.

•Deposits increased $259.5 million, or 8.5 percent, at March 31, 2025, compared to March 31, 2024. Included in deposits were brokered deposits totaling $335.5 million at March 31, 2025, compared to $396.4 million at March 31, 2024. Excluding brokered deposits, deposits increased $320.4 million, or 12.0 percent, as of March 31, 2025, compared to March 31, 2024. Deposit growth included a mix of public funds and commercial and consumer deposits and was used to reduce wholesale funding, build liquidity and fund loan growth.
•Borrowed funds decreased to $391.4 million at March 31, 2025, compared to $639.7 million at March 31, 2024. The decrease was primarily attributable to a decrease of $198.5 million in federal funds purchased and other short-term borrowings and a decrease of $45.0 million in Federal Home Loan Bank advances. The decrease in borrowed funds balances was due to the increase in deposits since March 31, 2024. The reduction in the Federal Home Loan Bank advances was due to the maturity of two advances with a total balance of $45.0 million. One of these advances, with a balance of $25.0 million, was hedged with a long-term interest rate swap, which matured and was not renewed.
•The efficiency ratio (a non-GAAP measure) was 56.37 percent for the first quarter of 2025, compared to 62.04 percent for the first quarter of 2024. The improvement in the efficiency ratio in the first quarter of 2025 compared to the first quarter of 2024 was primarily due to the increase in net interest income, partially offset by an increase in noninterest expense. Occupancy and equipment expense increased primarily due to the occupancy costs associated with the Company’s newly constructed headquarters.
•Net interest margin, on a fully tax-equivalent basis (a non-GAAP measure), was 2.28 percent for the first quarter of 2025, compared to 1.88 percent for the first quarter of 2024. Net interest income for the first quarter of 2025 was $20.9 million, compared to $16.8 million for the first quarter of 2024. The increase in net interest margin and net interest income was primarily due to the decrease in deposit rates. The cost of deposits decreased by 42 basis points in the first quarter of 2025 compared to the first quarter of 2024. Also contributing to the improvement was an increase in average deposit balances of $335.2 million, in comparing the same time periods, which resulted in the reduction of higher-cost borrowed funds and an increase in interest-bearing deposits with other financial institutions.




The Company filed its report on Form 10-Q with the Securities and Exchange Commission today. Please refer to that document for a more in-depth discussion of the Company’s financial results. The Form 10-Q is available on the Investor Relations section of West Bank’s website at www.westbankstrong.com.

The Company will discuss its results in a conference call scheduled for 2:00 p.m. Central Time on Thursday, April 24, 2025. The telephone number for the conference call is 800-715-9871. The conference ID for the conference call is 7846129. A recording of the call will be available until May 8, 2025, by dialing 800-770-2030. The conference ID for the replay call is 7846129, followed by the # key.

About West Bancorporation, Inc. (Nasdaq: WTBA)

West Bancorporation, Inc. is headquartered in West Des Moines, Iowa. Serving customers since 1893, West Bank, a wholly-owned subsidiary of West Bancorporation, Inc., is a community bank that focuses on lending, deposit services, and trust services for small- to medium-sized businesses and consumers. West Bank has six offices in the Des Moines, Iowa metropolitan area, one office in Coralville, Iowa, and four offices in Minnesota in the cities of Rochester, Owatonna, Mankato and St. Cloud.

Certain statements in this report, other than purely historical information, including estimates, projections, statements relating to the Company’s business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may appear throughout this report. These forward-looking statements are generally identified by the words “believes,” “expects,” “intends,” “anticipates,” “projects,” “future,” “confident,” “may,” “should,” “will,” “strategy,” “plan,” “opportunity,” “will be,” “will likely result,” “will continue” or similar references, or references to estimates, predictions or future events. Such forward-looking statements are based upon certain underlying assumptions, risks and uncertainties. Because of the possibility that the underlying assumptions are incorrect or do not materialize as expected in the future, actual results could differ materially from these forward-looking statements.  Risks and uncertainties that may affect future results include: interest rate risk, including the effects of changes in interest rates; fluctuations in the values of the securities held in our investment portfolio, including as a result of changes in interest rates; competitive pressures, including from non-bank competitors such as credit unions, “fintech” companies and digital asset service providers; pricing pressures on loans and deposits; our ability to successfully manage liquidity risk; changes in credit and other risks posed by the Company’s loan portfolio, including declines in commercial or residential real estate values or changes in the allowance for credit losses dictated by new market conditions, accounting standards or regulatory requirements; the concentration of large deposits from certain clients, including those who have balances above current FDIC insurance limits; the imposition of domestic or foreign tariffs or other governmental policies impacting the global supply chain and the value of products produced by our commercial borrowers; changes in local, national and international economic conditions, including the level and impact of inflation, and future monetary policies of the Federal Reserve in response thereto, and possible recession; the effects of recent developments and events in the financial services industry, including the large-scale deposit withdrawals over a short period of time that resulted in several bank failures; changes in legal and regulatory requirements, limitations and costs; changes in customers’ acceptance of the Company’s products and services; the occurrence of fraudulent activity, breaches or failures of our or our third-party partners’ information security controls or cyber-security related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools; unexpected outcomes of existing or new litigation involving the Company; the monetary, trade and other regulatory policies of the U.S. government; acts of war or terrorism, including the ongoing Israeli-Palestinian conflict and the Russian invasion of Ukraine, widespread disease or pandemics, or other adverse external events; risks related to climate change and the negative impact it may have on our customers and their businesses; changes to U.S. tax laws, regulations and guidance; potential changes in federal policy and at regulatory agencies as a result of the 2024 presidential election; new or revised accounting policies and practices, as may be adopted by state and federal regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission or the Public Company Accounting Oversight Board; talent and labor shortages and employee turnover; and any other risks described in the “Risk Factors” sections of reports filed by the Company with the Securities and Exchange Commission. The Company undertakes no obligation to revise or update such forward-looking statements to reflect current or future events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.



WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
(in thousands)
As of
CONDENSED BALANCE SHEETSMarch 31, 2025December 31, 2024September 30, 2024June 30, 2024March 31, 2024
Assets
Cash and due from banks$39,253 $28,750 $34,157 $27,994 $27,071 
Interest-bearing deposits171,357 214,728 123,646 121,825 120,946 
Securities available for sale, at fair value546,619 544,565 597,745 588,452 605,735 
Federal Home Loan Bank stock, at cost15,216 15,129 17,195 21,065 26,181 
Loans3,016,471 3,004,860 3,021,221 2,998,774 2,980,133 
Allowance for credit losses(30,526)(30,432)(29,419)(28,422)(28,373)
Loans, net2,985,945 2,974,428 2,991,802 2,970,352 2,951,760 
Premises and equipment, net110,270 109,985 106,771 101,965 95,880 
Bank-owned life insurance45,272 44,990 44,703 44,416 44,138 
Other assets72,737 82,416 72,547 89,046 90,981 
Total assets$3,986,669 $4,014,991 $3,988,566 $3,965,115 $3,962,692 
Liabilities and Stockholders’ Equity
Deposits$3,324,518 $3,357,596 $3,278,553 $3,180,922 $3,065,030 
Federal funds purchased and other short-term borrowings— — — 85,500 198,500 
Other borrowings391,445 392,629 438,814 439,998 441,183 
Other liabilities32,833 36,891 35,846 34,812 34,223 
Stockholders’ equity237,873 227,875 235,353 223,883 223,756 
Total liabilities and stockholders’ equity$3,986,669 $4,014,991 $3,988,566 $3,965,115 $3,962,692 
For the Quarter Ended
AVERAGE BALANCESMarch 31, 2025December 31, 2024September 30, 2024June 30, 2024March 31, 2024
Assets$3,944,789 $4,135,049 $3,973,824 $3,964,109 $3,812,199 
Loans3,016,119 3,007,558 2,991,272 2,994,492 2,949,672 
Deposits3,284,394 3,434,234 3,258,669 3,123,282 2,956,635 
Stockholders’ equity229,874 230,720 227,513 219,771 219,835 



WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
(in thousands)
As of
LOANSMarch 31, 2025December 31, 2024September 30, 2024June 30, 2024March 31, 2024
Commercial$531,267 $514,232 $512,884 $526,589 $544,293 
Real estate:
Construction, land and land development451,230 508,147 520,516 496,864 465,247 
1-4 family residential first mortgages86,292 87,858 89,749 92,230 108,065 
Home equity21,961 19,294 17,140 15,264 14,020 
Commercial1,909,330 1,861,195 1,870,132 1,856,301 1,839,580 
Consumer and other19,323 17,287 14,261 15,234 12,844 
3,019,403 3,008,013 3,024,682 3,002,482 2,984,049 
Net unamortized fees and costs(2,932)(3,153)(3,461)(3,708)(3,916)
Total loans$3,016,471 $3,004,860 $3,021,221 $2,998,774 $2,980,133 
Less: allowance for credit losses(30,526)(30,432)(29,419)(28,422)(28,373)
Net loans$2,985,945 $2,974,428 $2,991,802 $2,970,352 $2,951,760 
CREDIT QUALITY
Pass$3,011,231 $2,999,531 $3,016,493 $2,994,310 $2,983,618 
Watch7,991 8,349 7,956 7,651 142 
Substandard181 133 233 521 289 
Doubtful— — — — — 
     Total loans$3,019,403 $3,008,013 $3,024,682 $3,002,482 $2,984,049 
DEPOSITS
Noninterest-bearing demand$519,771 $541,053 $525,332 $530,441 $521,377 
Interest-bearing demand517,409 543,855 438,402 443,658 449,946 
Savings and money market - non-brokered1,490,189 1,517,510 1,481,840 1,483,264 1,315,698 
Money market - brokered143,423 126,381 123,780 97,259 119,840 
    Total nonmaturity deposits2,670,792 2,728,799 2,569,354 2,554,622 2,406,861 
Time - non-brokered461,655 488,760 407,109 353,269 381,646 
Time - brokered192,071 140,037 302,090 273,031 276,523 
    Total time deposits653,726 628,797 709,199 626,300 658,169 
    Total deposits$3,324,518 $3,357,596 $3,278,553 $3,180,922 $3,065,030 
BORROWINGS
Federal funds purchased and other short-term borrowings$— $— $— $85,500 $198,500 
Subordinated notes, net79,959 79,893 79,828 79,762 79,697 
Federal Home Loan Bank advances270,000 270,000 315,000 315,000 315,000 
Long-term debt41,486 42,736 43,986 45,236 46,486 
    Total borrowings$391,445 $392,629 $438,814 $525,498 $639,683 
STOCKHOLDERS’ EQUITY
Preferred stock$— $— $— $— $— 
Common stock3,000 3,000 3,000 3,000 3,000 
Additional paid-in capital35,072 35,619 34,960 34,322 33,685 
Retained earnings282,247 278,613 275,724 273,981 272,997 
Accumulated other comprehensive loss(82,446)(89,357)(78,331)(87,420)(85,926)
    Total stockholders’ equity$237,873 $227,875 $235,353 $223,883 $223,756 




WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
(in thousands)
For the Quarter Ended
CONSOLIDATED STATEMENTS OF INCOMEMarch 31, 2025December 31, 2024September 30, 2024June 30, 2024March 31, 2024
Interest income:
Loans, including fees$40,988 $41,822 $42,504 $41,700 $40,196 
Securities:
Taxable2,788 2,959 3,261 3,394 3,416 
Tax-exempt743 795 806 808 810 
Interest-bearing deposits1,617 3,740 2,041 1,666 148 
Total interest income46,136 49,316 48,612 47,568 44,570 
Interest expense:
Deposits21,423 25,706 26,076 23,943 21,559 
 Federal funds purchased and other short-term borrowings— — 115 1,950 2,183 
Subordinated notes1,105 1,106 1,112 1,105 1,108 
Federal Home Loan Bank advances2,235 2,522 2,748 2,718 2,325 
Long-term debt518 560 601 622 645 
Total interest expense25,281 29,894 30,652 30,338 27,820 
Net interest income20,855 19,422 17,960 17,230 16,750 
Credit loss expense— 1,000 — — — 
Net interest income after credit loss expense20,855 18,422 17,960 17,230 16,750 
Noninterest income:
Service charges on deposit accounts471 462 459 462 460 
Debit card usage fees446 471 500 490 458 
Trust services777 1,051 828 794 776 
 Increase in cash value of bank-owned life insurance282 287 287 278 274 
Realized securities losses, net— (1,172)— — — 
Other income267 331 285 322 331 
Total noninterest income2,243 1,430 2,359 2,346 2,299 
Noninterest expense:
Salaries and employee benefits7,004 7,107 6,823 7,169 6,489 
Occupancy and equipment1,963 2,095 1,926 1,852 1,447 
Data processing617 752 771 754 714 
Technology and software786 743 722 731 700 
FDIC insurance587 699 711 631 519 
Professional fees308 301 239 244 257 
Director fees206 170 223 236 199 
Other expenses1,592 1,532 1,477 1,577 1,543 
Total noninterest expense13,063 13,399 12,892 13,194 11,868 
Income before income taxes10,035 6,453 7,427 6,382 7,181 
Income taxes2,193 (644)1,475 1,190 1,372 
Net income$7,842 $7,097 $5,952 $5,192 $5,809 
Basic earnings per common share$0.47 $0.42 $0.35 $0.31 $0.35 
Diluted earnings per common share$0.46 $0.42 $0.35 $0.31 $0.35 







WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
As of and for the Quarter Ended
COMMON SHARE DATAMarch 31, 2025December 31, 2024September 30, 2024June 30, 2024March 31, 2024
Earnings per common share (basic)$0.47 $0.42 $0.35 $0.31 $0.35 
Earnings per common share (diluted)0.46 0.42 0.35 0.31 0.35 
Dividends per common share0.25 0.25 0.25 0.25 0.25 
Book value per common share(1)
14.06 13.54 13.98 13.30 13.31 
Closing stock price19.94 21.65 19.01 17.90 17.83 
Market price/book value(2)
141.82 %159.90 %135.98 %134.59 %133.96 %
Price earnings ratio(3)
10.46 12.96 13.65 14.36 12.77 
Annualized dividend yield(4)
5.02 %4.62 %5.26 %5.59 %5.61 %
REGULATORY CAPITAL RATIOS
Consolidated:
Total risk-based capital ratio12.18 %12.11 %11.95 %11.85 %11.78 %
Tier 1 risk-based capital ratio9.59 9.51 9.39 9.30 9.23 
Tier 1 leverage capital ratio8.36 7.93 8.15 8.08 8.36 
Common equity tier 1 ratio9.02 8.95 8.83 8.74 8.67 
West Bank:
Total risk-based capital ratio12.90 %12.86 %12.73 %12.66 %12.63 %
Tier 1 risk-based capital ratio11.99 11.96 11.86 11.79 11.76 
Tier 1 leverage capital ratio10.46 9.97 10.29 10.25 10.65 
Common equity tier 1 ratio11.99 11.96 11.86 11.79 11.76 
KEY PERFORMANCE RATIOS AND OTHER METRICS
Return on average assets(5)
0.81 %0.68 %0.60 %0.53 %0.61 %
Return on average equity(6)
13.84 12.24 10.41 9.50 10.63 
Net interest margin(7)(13)
2.28 1.98 1.91 1.86 1.88 
Yield on interest-earning assets(8)(13)
5.04 5.02 5.16 5.13 4.99 
Cost of interest-bearing liabilities3.25 3.57 3.84 3.83 3.70 
Efficiency ratio(9)(13)
56.37 60.79 63.28 67.14 62.04 
Nonperforming assets to total assets(10)
0.00 0.00 0.01 0.01 0.01 
ACL ratio(11)
1.01 1.01 0.97 0.95 0.95 
Loans/total assets75.66 74.84 75.75 75.63 75.20 
Loans/total deposits90.73 89.49 92.15 94.27 97.23 
Tangible common equity ratio(12)
5.97 5.68 5.90 5.65 5.65 

(1) Includes accumulated other comprehensive loss.
(2) Closing stock price divided by book value per common share.
(3) Closing stock price divided by annualized earnings per common share (basic).
(4) Annualized dividend divided by period end closing stock price.
(5) Annualized net income divided by average assets.
(6) Annualized net income divided by average stockholders’ equity.
(7) Annualized tax-equivalent net interest income divided by average interest-earning assets.
(8) Annualized tax-equivalent interest income on interest-earning assets divided by average interest-earning assets.
(9) Noninterest expense (excluding other real estate owned expense and write-down of premises) divided by noninterest income (excluding net securities gains/losses and gains/losses on disposition of premises and equipment) plus tax-equivalent net interest income.
(10) Total nonperforming assets divided by total assets.
(11) Allowance for credit losses on loans divided by total loans.    
(12) Common equity less intangible assets (none held) divided by tangible assets.
(13) A non-GAAP measure.






NON-GAAP FINANCIAL MEASURES

This report contains references to financial measures that are not defined in GAAP. Such non-GAAP financial measures include the Company’s presentation of net interest income and net interest margin on a fully taxable equivalent (FTE) basis and the presentation of the efficiency ratio on an adjusted and FTE basis, excluding certain income and expenses. Management believes these non-GAAP financial measures provide useful information to both management and investors to analyze and evaluate the Company’s financial performance. These measures are considered standard measures of comparison within the banking industry. Additionally, management believes providing measures on a FTE basis enhances the comparability of income arising from taxable and nontaxable sources. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in these measures and that different companies might calculate these measures differently. These non-GAAP disclosures should not be considered an alternative to the Company’s GAAP results. The following table reconciles the non-GAAP financial measures of net interest income and net interest margin on a fully taxable equivalent basis and efficiency ratio on an adjusted and FTE basis.

 (in thousands)For the Quarter Ended
March 31, 2025December 31, 2024September 30, 2024June 30, 2024March 31, 2024
Reconciliation of net interest income and net interest margin on a FTE basis to GAAP:
Net interest income (GAAP)$20,855 $19,422 $17,960 $17,230 $16,750 
Tax-equivalent adjustment (1)
66 16 29 55 82 
Net interest income on a FTE basis (non-GAAP)20,921 19,438 17,989 17,285 16,832 
Average interest-earning assets3,717,441 3,910,978 3,749,688 3,731,674 3,595,954 
Net interest margin on a FTE basis (non-GAAP)2.28 %1.98 %1.91 %1.86 %1.88 %
Reconciliation of efficiency ratio on an adjusted and FTE basis to GAAP:
Net interest income on a FTE basis (non-GAAP)$20,921 $19,438 $17,989 $17,285 $16,832 
Noninterest income2,243 1,430 2,359 2,346 2,299 
Adjustment for realized securities losses, net— 1,172 — — — 
Adjustment for losses on disposal of premises and equipment, net8 — 26 21 — 
Adjusted income23,172 22,040 20,374 19,652 19,131 
Noninterest expense13,063 13,399 12,892 13,194 11,868 
Efficiency ratio on an adjusted and FTE basis (non-GAAP) (2)
56.37 %60.79 %63.28 %67.14 %62.04 %
(1)    Computed on a tax-equivalent basis using a federal income tax rate of 21 percent, adjusted to reflect the effect of the nondeductible interest expense associated with owning tax-exempt securities and loans. Management believes the presentation of this non-GAAP measure provides supplemental useful information for proper understanding of the financial results, as it enhances the comparability of income arising from taxable and nontaxable sources.
(2)     The efficiency ratio expresses noninterest expense as a percent of fully taxable equivalent net interest income and noninterest income, excluding specific noninterest income and expenses. Management believes the presentation of this non-GAAP measure provides supplemental useful information for proper understanding of the Company's financial performance. It is a standard measure of comparison within the banking industry. A lower ratio is more desirable.


1 NASDAQ: WTBA Q1 2025 | Earnings Highlights

 
2 Certain statements in this presentation, other than purely historical information, including estimates, projections, statements relating to the Company’s business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act). Forward-looking statements may appear throughout this presentation. These forward-looking statements are generally identified by the words “believes,” “expects,” “intends,” “anticipates,” “projects,” “future,” “confident,” “may,” “should,” “will,” “strategy,” “plan,” “opportunity,” “will be,” “will likely result,” “will continue” or similar references, or references to estimates, predictions or future events. Such forward-looking statements are based upon certain underlying assumptions, risks and uncertainties. Because of the possibility that the underlying assumptions are incorrect or do not materialize as expected in the future, actual results could differ materially from these forward-looking statements. Risks and uncertainties that may affect future results include: interest rate risk, including the effects of changes in interest rates; fluctuations in the values of the securities held in our investment portfolio, including as a result of changes in interest rates; competitive pressures, including from non-bank competitors such as credit unions, “fintech” companies and digital asset service providers; pricing pressures on loans and deposits; our ability to successfully manage liquidity risk; changes in credit and other risks posed by the Company’s loan portfolio, including declines in commercial or residential real estate values or changes in the allowance for loan losses dictated by new market conditions, accounting standards or regulatory requirements; the concentration of large deposits from certain clients, including those who have balances above current FDIC insurance limits; changes in local, national and international economic conditions, including the level and impact of inflation, including future monetary policies of the Federal Reserve in response thereto, and possible recession; the effects of recent developments and events in the financial services industry, including the large-scale deposit withdrawals over a short period of time that resulted in several bank failures; changes in legal and regulatory requirements, limitations and costs; the imposition of domestic or foreign tariffs or other governmental policies impacting the global supply chain and the value of products produced by our commercial borrowers; changes in customers’ acceptance of the Company’s products and services; the occurrence of fraudulent activity, breaches or failures of our or our third-party partners' information security controls or cyber-security related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools; unexpected outcomes of existing or new litigation involving the Company; the monetary, trade and other regulatory policies of the U.S. government; acts of war or terrorism, including the ongoing Israeli-Palestinian conflict and the Russian invasion of Ukraine, widespread disease or pandemics, or other adverse external events; risks related to climate change and the negative impact it may have on our customers and their business; changes to U.S. tax laws, regulations and guidance; potential changes in federal policy and at regulatory agencies as a result of the 2024 presidential election; new or revised accounting policies and practices, as may be adopted by state and federal regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission or the Public Company Accounting Oversight Board; talent and labor shortages and employee turnover; and any other risks described in the “Risk Factors” sections of reports filed by the Company with the Securities and Exchange Commission. The Company undertakes no obligation to revise or update such forward-looking statements to reflect current or future events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Except as otherwise indicated, this presentation speaks as of the date hereof. The delivery of this presentation shall not, under any circumstances, create any implication that there has been no change in the affairs of West Bancorporation, Inc. after the date hereof. Certain of the information contained herein may be derived from information provided by industry sources. We believe that such information is accurate and that the sources from which it has been obtained are reliable. We cannot guarantee the accuracy of such information, however, and we have not independently verified such information. This presentation contains references to financial measures that are not defined in GAAP. Such non-GAAP financial measures include the Company’s presentation of net interest income and net interest margin on a fully taxable equivalent (FTE) basis and the presentation of the efficiency ratio on an adjusted and FTE basis, excluding certain income and expenses. Management believes these non-GAAP financial measures provide useful information to both management and investors to analyze and evaluate the Company’s financial performance. These measures are considered standard measures of comparison within the banking industry. Additionally, management believes providing measures on a FTE basis enhances the comparability of income arising from taxable and nontaxable sources. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in these measures and that different companies might calculate these measures differently. These non-GAAP disclosures should not be considered an alternative to the Company’s GAAP results. This presentation includes reconciliations of non-GAAP financial measures to comparable GAAP financial measures. Disclaimers

 
3 1Q 2025 Financial Highlights (1) Presented on a fully taxable equivalent basis; see Appendix for “Non-GAAP Financial Measures.” $26.26 NASDAQ: WTBA March 31, 2025 Closing Price: $19.94 1Q 2025 Price Range: $19.71 to $23.06 Cash Dividend Per Share Declared On April 23, 2025: $0.25 (payable on May 21, 2025) Annualized Dividend Yield: 5.02% Efficiency Ratio1 56.37% ROA 0.81% NPAs/Assets 0.00% ROE 13.84% NIM1 2.28% Diluted EPS $0.46 Net Income $7.8 million

 
4 • West Bancorporation, Inc. (the “Company”) is a publicly traded, financial holding company (NASDAQ: WTBA) established in 1984. Its sole subsidiary is West Bank, founded in 1893. • West Bank is headquartered in West Des Moines, Iowa and has 11 branches and commercial banking offices serving the greater Des Moines, Iowa area; eastern Iowa, which includes Iowa City and Coralville, Iowa; and southern Minnesota, which includes Rochester, Owatonna, Mankato, and St. Cloud, Minnesota. • The Company is a reliable, dividend paying community bank focused on commercial banking with approximately $4.0 billion in assets. Our mission is to build strong relationships, build strong communities, and build upon our strong reputation to ensure our clients receive exceptional care, our communities receive outstanding support, and the loyalty of our employees and stockholders is rewarded. Company Profile and Mission • One of the Company's key competitive advantages is its client-centric approach to delivering strategic financial solutions to businesses and business owners, driven by the establishment of deep customer relationships and extensive experience in its markets. • First and foremost a community bank, West Bank has built a strong reputation for being responsive to local needs. West Bank employees place a high priority on community involvement, lending their time and talents to a long list of civic and community projects. Mission

 
5 Experienced Executive Leadership David D. Nelson Director/Chief Executive Officer/President Joined West Bank in 2010 Years in Banking: 42 Prior to joining the Company Mr. Nelson was the President of Southeast Minnesota Business Banking and President of Wells Fargo Bank Rochester in Rochester, Minnesota. Harlee N. Olafson Chief Risk Officer/Executive Vice President Joined West Bank in 2010 Years in Banking: 47 Prior to joining the Company Mr. Olafson was the President of Southwest Minnesota Business Banking and President of Wells Fargo Bank Mankato in Mankato, Minnesota. Bradley P. Peters Executive Vice President West Bank Minnesota Group President Joined West Bank in 2019 Years in Banking: 40 Prior to joining the Company Mr. Peters was the Executive Vice President of a $16 billion regional bank in Minnesota where he was responsible for new market expansion. Jane M. Funk Chief Financial Officer Executive Vice President/Treasurer Joined West Bank in 2014 Years in Banking & Public Accounting: 35 Ms. Funk has extensive experience in the community banking industry and public accounting. Brad L. Winterbottom Executive Vice President West Bank President Joined West Bank in 1992 Years in Banking: 45 Mr. Winterbottom has extensive experience in commercial lending and loan portfolio administration and knowledge of the Iowa business community. Todd A. Mather West Bank Chief Credit Officer Joined West Bank in 2019 Years in Banking: 29 Prior to joining West Bank, Mr. Mather spent 8 years at a $16 billion regional bank in Minnesota as a Senior Credit Director and Group Senior Credit Manager.

 
6 Conservative Organic Growth with Successful Lift-Out Strategies David Nelson joins West Bank as CEO. Entered the Rochester, Minnesota market by hiring experienced bankers who had existing strong relationships with local business owners and creating an advisory community board made up of local business owners and leaders. Successful and profitable establishment of market presence led to construction of permanent commercial banking office in 2016. Crossed $2 billion in total assets. Expanded into St. Cloud, Mankato, and Owatonna, Minnesota with the same lift- out strategy used in Rochester, Minnesota. Successful and profitable establishment of market presence led to construction of permanent commercial banking offices in each of these three markets during 2022-2025. Crossed $3 billion in total assets. Opened new corporate headquarters building in West Des Moines, Iowa in April 2024. After being in the same leased space for fifty years, the new building consolidates the organization's operations under one roof, and provides space for future growth and enhanced business development opportunities. 2010 2013 2018 2019 2020 2024

 
7 Company Highlights – Commitment to Excellence West Bancorporation is a high performing company in U.S. community banking, well-versed in providing commercial banking services, including loans and lines of credit and all types of deposit services, to small- and medium-sized businesses in its Iowa and Minnesota markets. Established • A 132 year presence in the Des Moines, Iowa metropolitan area and is West Des Moines' oldest business of any type. • Long track record of growth and stability coupled with attractive financial returns and dividend yield. • Simple and consistent business model with a conservative operating philosophy and expense management controls. Strategy • Disciplined organic growth strategy with a track record of successful lift-out strategies. • Business model highlighted by focus on risk management and consistent execution. • Superior talent with business expertise in building relationships. Community Service & Philanthropy • In 2024, our employees volunteered over 8,200 hours of community service. • In 2024, the West Bancorporation Foundation and West Bank provided over $450,000 in total philanthropic contributions to more than 160 organizations.

 
8 Company Highlights – Commitment to Excellence West Bank is a commercially-focused financial institution operating in high quality markets in Iowa and Minnesota led by a deep and experienced management team with skills developed internally and with other large regional banking institutions. Credit Culture • Strict credit risk management with robust processes and experienced credit personnel. • 30 high quality commercial bankers with an average of 21 years of commercial banking experience. • Centralized committee structure that is agile and responsive to customer needs and an organizational structure that provides deep support of credit and administrative functions. • We are a local lender to local customers. Asset Quality & Risk Management • Proven credit culture with a history of strong asset quality. • Classified and watch list loan balance was 0.27% of the loan portfolio at March 31, 2025. • Nonperforming assets at March 31, 2025 totaled $181 thousand, or 0.00% of total assets. • Commercial real estate stress testing is completed quarterly. • Independent third party loan review is performed semi-annually.

 
9 1Q 2025 Income Statement Highlights (in thousands) For the Quarter Ended Q1 '24 Q4 '24 Q1 '25 Linked Quarter Comments Net interest income $ 16,750 $ 19,422 $ 20,855 Increases driven primarily by reduction in deposit interest rates and changes in funding mix.Net interest margin(1) 1.88 % 1.98 % 2.28 % Credit loss expense $ — $ 1,000 $ — Q4 2024 credit loss expense reflects changes in certain qualitative factors in that period. Noninterest income (excluding securities losses) 2,299 2,602 2,243 Trust fees included a large one-time fee in Q4 2024. Realized securities losses — (1,172) — $11.8 million of proceeds from investment security sales in Q4 2024 were used to fund loan growth, with an estimated earnback period of approximately 2 years. Noninterest expense 11,868 13,399 13,063 The comparison of Q1 2024 to Q4 2024 and Q1 2025 was primarily impacted by increases in salary and benefits due to incentive compensation related accruals and occupancy and equipment costs related to the new bank headquarters and Owatonna branch buildings.Efficiency ratio(1) 62.04 % 60.79 % 56.37 % Income tax expense $ 1,372 $ (644) $ 2,193 Income tax benefit of $1.8 million for an energy related investment tax credit associated with new headquarters building construction was recorded in Q4 2024. Net income 5,809 7,097 7,842 Return on average equity 10.63 % 12.24 % 13.84 % (1) Presented on a fully taxable equivalent basis; see Appendix for “Non-GAAP Financial Measures.”

 
10 Net Interest Income (1) Presented on a fully taxable equivalent basis; see Appendix for “Non-GAAP Financial Measures.” $16.8 $17.2 $18.0 $19.4 $20.9 1Q24 2Q24 3Q24 4Q24 1Q25 Net Interest Income ($ in millions) 1.88% 1.86% 1.91% 1.98% 2.28% Net interest margin %(1) Net interest income increased $1.5 million and net interest margin increased 30 bps in Q1 2025 compared to Q4 2024 • Interest income on loans decreased $0.8 million and interest income on interest-bearing cash deposits decreased $2.1 million. The decline in interest income on loans was due to the slight decrease in loan yields from Q4 2024 to Q1 2025 as a result of the decline in Prime & SOFR rates during Q4 2024. The decrease in interest income on interest-bearing cash deposits was due to the decline in average balances and decline in the federal funds rate during Q4 2024. • Deposit interest expense decreased $4.3 million, primarily due to a decline in deposit interest rates, driven by reductions in the federal funds rate during Q4 2024. The cost of interest-bearing deposits decreased 38 bps from Q4 2024 to Q1 2025. • Interest expense on borrowed funds decreased $0.3 million, due to the payoff of FHLB advances totaling $45.0 million in Q4 2024.

 
11 $2,950 $2,994 $2,991 $3,008 $3,016 $3,005 $3,016 1Q24 2Q24 3Q24 4Q24 1Q25 4Q24 1Q25 Loans • Loans increased $11.6 million in Q1 2025, primarily due to an increase in commercial real estate loans. • Quarterly average loans increased $8.6 million compared to Q4 2024. • Commercial real estate loans are well diversified among various industry sectors. • Commercial office lending makes up 5.4% of the total loan portfolio, with only 1.1% located in the Des Moines metropolitan downtown area. • Loan yields decreased 1 bp in Q1 2025 compared to Q4 2024 as the decreases in prime and SOFR rates lowered the yields on variable-rate loans. Yields on fixed-rate loans continue to increase, as loan originations and renewals are priced at higher prevailing market rates compared to roll-off rates. • 39% of the loan portfolio consists of variable-rate loans. Quarterly Highlights 5.49% 5.60% 5.65% 5.53% 5.52% Loans ($ in millions) Average Balances Period End Loan Yield %

 
12 Loan Mix C & I, 18% CRE - NOO, 37% CRE - OO, 13% Multi Family, 13% 1-4 Family, 3% C & D, 15% Consumer and other, 1% Loan Mix as of March 31, 2025 Total Construction and Development and Commercial Real Estate Loans at March 31, 2025 Sector Balance ($ in thousands) Multifamily $ 546,842 Medical 97,283 Warehouse & trucking terminals 286,573 Hotels 259,205 Mixed use 104,759 Office 161,595 Retail 246,975 Senior care/living 105,714 Residential 162,128 Land and land development 98,101 Other 291,385 Total $ 2,360,560

 
13 Deposits • Total deposits decreased $33.1 million in Q1 2025. • Brokered deposits increased $69.1 million in Q1 2025. • Deposit costs decreased 38 bps in Q1 2025 compared to Q4 2024, due to reductions in deposit pricing driven by decreases in the federal funds rate and changes in deposit mix. • West Bank participates in the IntraFi® ICS and CDARS reciprocal deposit network which enables depositors to receive FDIC insurance coverage on deposits otherwise exceeding the maximum insurable amount. • Estimated uninsured deposits, excluding deposits in the IntraFi® reciprocal deposit network, brokered deposits and public funds protected by state programs, were approximately 28.0% of total deposits at the end of Q1. Quarterly Highlights $2,957 $3,123 $3,259 $3,434 $3,284 $3,358 $3,325 1Q24 2Q24 3Q24 4Q24 1Q25 4Q24 1Q25 Average Balances Deposit Cost % Period End Deposits ($ in millions) 3.57% 3.70% 3.80% 3.53% 3.15% Brokered Deposits, 10% Noninterest- Bearing, 16% Interest-Bearing Demand, 16% Savings and Money Market, 44% Time Deposits, 14% Deposit Mix as of March 31, 2025

 
14 Funding and Liquidity Cost of liability funding ($ in thousands) Cash and cash equivalents $ 210,610 Unpledged securities 87,317 FHLB borrowing availability 634,634 Unsecured lines of credit availability 75,000 Federal Reserve discount window availability 119,463 Total as of 3/31/2025 $ 1,127,024 $3,555 $3,703 $3,705 $3,862 $3,676 $530 $521 $529 $533 $522 $2,427 $2,602 $2,729 $2,901 $2,762 $598 $580 $447 $428 $392 Average Noninterest-Bearing Deposits Average Interest Bearing Deposits Average Borrowings 1Q24 2Q24 3Q24 4Q24 1Q25 3.70% 3.83% 3.84% 3.57% 3.25% Overall Funding Costs Sources of Liquidity West Bank also maintains master brokered deposit agreements with brokerage firms and access to one-way buy options through the IntraFi® deposit network. ($ in millions)

 
15 $3 1Q24 2Q24 3Q24 4Q24 1Q25 Credit Quality $0.3 $0.5 $0.2 $0.1 $0.2 1Q24 2Q24 3Q24 4Q24 1Q25 $0.3 $0.5 $0.2 $0.1 $0.2 1Q24 2Q24 3Q24 4Q24 1Q25 $28.3 $28.4 $29.4 $30.4 $30.5 1Q24 2Q24 3Q24 4Q24 1Q25 Net Charge-Offs (Recoveries) ($ in thousands) Substandard Loans ($ in millions) Nonaccrual Loans ($ in millions) Allowance for Credit Losses ($ in millions) 0.95% 0.95% 0.97% 1.01% 1.01% ACL/Loans % $(31) $(49) $(12) $(94)

 
16 8.7% 8.7% 8.8% 9.0% 9.0% 11.8% 11.8% 11.9% 12.0% 12.0% 1Q24 2Q24 3Q24 4Q24 1Q25 8.4% 8.1% 8.2% 7.9% 8.4% 10.7% 10.3% 10.3% 10.0% 10.5% 1Q24 2Q24 3Q24 4Q24 1Q25 9.2% 9.3% 9.4% 9.5% 9.6% 11.8% 11.8% 11.9% 12.0% 12.0% 1Q24 2Q24 3Q24 4Q24 1Q25 11.8% 11.9% 12.0% 12.1% 12.2%12.6% 12.7% 12.7% 12.9% 12.9% 1Q24 2Q24 3Q24 4Q24 1Q25 Regulatory Capital Ratios Note: Lines depict well-capitalized levels.Consolidated West Bank Total Risk-Based Capital Ratio Tier 1 Capital Ratio Common Equity Tier 1 Ratio Tier 1 Leverage Ratio 6.5% 10% 8% 5%

 
17Appendix Appendix Non-GAAP Financial Measures (in thousands) As of and for the Quarter Ended March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 Reconciliation of net interest income and net interest margin on a FTE basis to GAAP: Net interest income (GAAP) $ 20,855 $ 19,422 $ 17,960 $ 17,230 $ 16,750 Tax-equivalent adjustment (1) 66 16 29 55 82 Net interest income on a FTE basis (non-GAAP) 20,921 19,438 17,989 17,285 16,832 Average interest-earning assets 3,717,441 3,910,978 3,749,688 3,731,674 3,595,954 Net interest margin on a FTE basis (non-GAAP) 2.28 % 1.98 % 1.91 % 1.86 % 1.88 % Reconciliation of efficiency ratio on an adjusted and FTE basis to GAAP: Net interest income on a FTE basis (non-GAAP) $ 20,921 $ 19,438 $ 17,989 $ 17,285 $ 16,832 Noninterest income 2,243 1,430 2,359 2,346 2,299 Adjustment for realized securities losses, net — 1,172 — — — Adjustment for losses on disposal of premises and equipment, net 8 — 26 21 — Adjusted income 23,172 22,040 20,374 19,652 19,131 Noninterest expense 13,063 13,399 12,892 13,194 11,868 Efficiency ratio on an adjusted and FTE basis (non- GAAP) (2) 56.37 % 60.79 % 63.28 % 67.14 % 62.04 % (1) Computed on a tax-equivalent basis using a federal income tax rate of 21 percent, adjusted to reflect the effect of the nondeductible interest expense associated with owning tax-exempt securities and loans. Management believes the presentation of this non-GAAP measure provides supplemental useful information for proper understanding of the financial results, as it enhances the comparability of income arising from taxable and nontaxable sources. (2) The efficiency ratio expresses noninterest expense as a percent of fully taxable equivalent net interest income and noninterest income, excluding specific noninterest income and expenses. Management believes the presentation of this non-GAAP measure provides supplemental useful information for proper understanding of the Company's financial performance. It is a standard measure of comparison within the banking industry. A lower ratio is more desirable.