Form 8-K - Current report

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): July 27, 2023

WEST BANCORPORATION, INC.

(Exact name of registrant as specified in its charter)


Iowa	0-49677	42-1230603
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

1601 22nd Street, West Des Moines, Iowa 50266

(Address of principal executive offices) (Zip Code)

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

Not Applicable

(Former name or former address, if changed since last report)

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 class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, no par value	WTBA	The 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 July 27, 2023, West Bancorporation, Inc. (the "Company") issued a press release announcing its second quarter earnings results for the period ended June 30, 2023, 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 exhibits, 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 exhibits, 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 Number						Description
99.1						Press Release of West Bancorporation, Inc. dated July 27, 2023
99.2						Second Quarter 2023 Earnings Presentation
104						Cover 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.


July 27, 2023	By:	/s/ Jane M. Funk
		Name: Jane M. Funk
		Title: Executive Vice President, Treasurer and Chief Financial Officer

Exhibit 99.1

Press Release

July 27, 2023

FOR IMMEDIATE RELEASE

For more information contact:

Jane Funk, Executive Vice President, Treasurer and Chief Financial Officer (515) 222-5766

WEST BANCORPORATION, INC. ANNOUNCES SECOND QUARTER 2023 FINANCIAL RESULTS AND DECLARES QUARTERLY DIVIDEND

West Des Moines, IA - West Bancorporation, Inc. (Nasdaq: WTBA; the “Company”), parent company of West Bank, today reported second quarter 2023 net income of $5.9 million, or $0.35 per diluted common share, compared to first quarter 2023 net income of $7.8 million, or $0.47 per diluted common share, and second quarter 2022 net income of $12.7 million, or $0.75 per diluted common share. On July 26, 2023, the Company’s Board of Directors declared a regular quarterly dividend of $0.25 per common share. The dividend is payable on August 23, 2023, to stockholders of record on August 9, 2023.

David Nelson, President and Chief Executive Officer of the Company, commented, “The unprecedented size and pace of the Federal Reserve’s interest rate increases in the last year and the resulting inverted yield curve have had a dramatic impact on our deposit base and cost of funds. Our deposit and funding mix has changed as depositors react to intense short-term rate competition and utilize accumulated cash for business operations. The resulting increase in our cost of funds has outpaced the repricing benefits in loans and investments, leading to a decline in our net interest income and net interest margin.”

David Nelson added, “Our credit quality continues to be pristine. We had one loan past due more than 30 days at the end of the second quarter. This is the first time in two years that we have had a loan more than 30 days past due at quarter-end. We have one loan on nonaccrual status and a total of $536 thousand in loans on our watch and classified loan list. We remain diligent in monitoring and managing our credit risk in light of future economic uncertainty and the volatile interest rate environment. Our capital position is strong and we remain focused on delivering high quality services and products through our successful relationship based business model.”

Second Quarter 2023 Financial Highlights


	Quarter Ended June 30, 2023		Six Months Ended June 30, 2023
Net income (in thousands)	$5,862		$13,706
Return on average equity	11.03	%	12.90	%
Return on average assets	0.64	%	0.76	%
Efficiency ratio (a non-GAAP measure)	62.83	%	58.91	%
Nonperforming assets to total assets	0.01	%	0.01	%

Second Quarter 2023 Compared to First Quarter 2023 Overview

•Loans increased $50.9 million in the second quarter of 2023, or 7.4 percent annualized.

•No provision for credit losses was recorded in either the second quarter of 2023 or the first quarter of 2023.

•The allowance for credit losses to total loans was 1.00 percent at June 30, 2023, compared to 1.01 percent at March 31, 2023.

•There was one loan with a balance of $229 thousand that was greater than 30 days past due at June 30, 2023. This loan is guaranteed by the SBA. For the seven consecutive quarter-ends prior to June 30, 2023, there were no loans greater than 30 days past due. Nonaccrual loans at June 30, 2023 consisted of one loan with a balance of $309 thousand.

•Commercial real estate loans totaling $52.6 million were upgraded and removed from the watch list during the second quarter of 2023. These loans related to one borrowing relationship that had been downgraded during the COVID-19 pandemic. The upgrade resulted from the borrowers’ ability to return to normal operations and financial performance for an extended period of time.

•Deposits increased $37.9 million in the second quarter of 2023. Brokered deposits totaled $230.7 million at June 30, 2023, compared to $234.2 million at March 31, 2023, a decrease of $3.5 million. Excluding brokered deposits, deposits increased $41.4 million, or 1.6 percent, during the second quarter of 2023. As of June 30, 2023, estimated uninsured deposits, which excludes deposits in the IntraFi® reciprocal network, brokered deposits and public funds protected by state programs, were approximately 27.5 percent of total deposits.

•The efficiency ratio (a non-GAAP measure) was 62.83 percent for the second quarter of 2023, compared to 55.34 percent for the first quarter of 2023. The increase in the efficiency ratio is primarily the result of the decline in tax equivalent net interest income and an increase in salaries and employee benefits.

•Net interest margin, on a fully tax-equivalent basis (a non-GAAP measure), was 2.02 percent for the second quarter of 2023, compared to 2.23 percent for the first quarter of 2023. Net interest income for the second quarter of 2023 was $17.3 million, compared to $18.7 million for the first quarter of 2023. The rising cost of deposits and borrowed funds and the change in mix of funding has increased interest expense faster than the increase in interest income from loan repricing and loan originations.

•The tangible common equity ratio was 5.90 percent at June 30, 2023, compared to 5.99 percent at March 31, 2023.

Second Quarter 2023 Compared to Second Quarter 2022 Overview

•Loans increased $233.9 million at June 30, 2023, or 9.1 percent, compared to June 30, 2022.

•Deposits decreased $6.1 million at June 30, 2023, compared to June 30, 2022. Included in deposits were brokered deposits totaling $230.7 million at June 30, 2023, compared to $196.5 million at June 30, 2022. The decline in deposits was primarily attributable to customers using their own liquidity to fund business transactions, instead of incurring debt, and customers seeking higher yielding investment options.

•Borrowed funds increased to $593.9 million at June 30, 2023, compared to $388.8 million at June 30, 2022. The increase included $135.0 million in FHLB advances associated with long-term interest rate swaps and $51.1 million in federal funds purchased and other short-term borrowings.

•The efficiency ratio (a non-GAAP measure) was 62.83 percent for the second quarter of 2023, compared to 41.96 percent for the second quarter of 2022. Tax-equivalent net interest income decreased in the second quarter of 2023 compared to the second quarter of 2022, primarily due to the increased cost of deposits and borrowed funds. Additionally, salaries and employee benefits increased due to wage increases in response to market conditions and competition in retaining and recruiting talent and increases in full-time equivalent employees with growth in our commercial banking team and information technology department.

•Net interest margin, on a fully tax-equivalent basis (a non-GAAP measure), was 2.02 percent for the second quarter of 2023, compared to 2.93 percent for the second quarter of 2022. Net interest income for the second quarter of 2023 was $17.3 million, compared to $24.2 million for the second quarter of 2022. In 2022 and 2023, the rising cost of deposits and borrowed funds and the change in mix of funding has increased interest expense faster than the increase in interest income from loan repricing and loan originations.

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, July 27, 2023. The telephone number for the conference call is 833-470-1428. The access code for the conference call is 716035. A recording of the call will be available until August 10, 2023, by dialing 866-813-9403. The replay access code is 518749.

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 recent rate increases by the Federal Reserve; 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 “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 (including as a result of the implementation of the current expected credit loss (CECL) accounting standard) or regulatory requirements; the concentration of large deposits from certain clients who have balances above current FDIC insurance limits; changes in local, national and international economic conditions, including rising rates of inflation 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 at Silicon Valley Bank, Signature Bank and First Republic Bank that resulted in the failure of those institutions; changes in legal and regulatory requirements, limitations and costs including in response to the recent failures of Silicon Valley Bank, Signature Bank and First Republic Bank; changes in customers’ acceptance of the Company’s products and services; the occurrence of fraudulent activity, breaches or failures of our 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 Russian invasion of Ukraine, widespread disease or pandemics, such as the COVID-19 pandemic, 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; talent and labor shortages; the new 1 percent excise tax on stock buybacks by publicly traded companies; 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 SHEETS	June 30, 2023		March 31, 2023		December 31, 2022		September 30, 2022		June 30, 2022
Assets
Cash and due from banks	$	29,776	$	21,579	$	24,896	$	58,342	$	26,174
Interest-bearing deposits	1,968		901		1,643		1,049		766
Securities available for sale, at fair value	645,091		665,358		664,115		671,752		731,970

Federal Home Loan Bank stock, at cost	22,488		22,226		19,336		18,350		15,532
Loans	2,807,075		2,756,185		2,742,836		2,614,145		2,573,129
Allowance for credit losses	(27,938)		(27,941)		(25,473)		(25,418)		(25,434)
Loans, net	2,779,137		2,728,244		2,717,363		2,588,727		2,547,695
Premises and equipment, net	66,683		59,565		53,124		44,592		41,807
Bank-owned life insurance	43,328		44,830		44,573		44,318		44,072
Other assets	90,084		82,240		88,168		90,387		66,775
Total assets	$	3,678,555	$	3,624,943	$	3,613,218	$	3,517,517	$	3,474,791

Liabilities and Stockholders’ Equity
Deposits	$	2,836,325	$	2,798,393	$	2,880,408	$	2,822,847	$	2,842,451
Federal funds purchased and other short-term borrowings	184,150		229,290		200,000		204,500		133,000
Other borrowings	409,736		350,921		285,855		255,789		255,751
Other liabilities	31,218		29,347		35,843		35,617		27,400
Stockholders’ equity	217,126		216,992		211,112		198,764		216,189
Total liabilities and stockholders’ equity	$	3,678,555	$	3,624,943	$	3,613,218	$	3,517,517	$	3,474,791

	For the Quarter Ended
AVERAGE BALANCES	June 30, 2023		March 31, 2023		December 31, 2022		September 30, 2022		June 30, 2022
Assets	$	3,645,651	$	3,617,458	$	3,511,717	$	3,475,894	$	3,503,686
Loans	2,783,463		2,745,381		2,649,671		2,579,862		2,537,152
Deposits	2,854,945		2,846,926		2,901,928		2,864,648		3,002,535
Stockholders’ equity	213,177		215,391		199,947		219,065		222,731


WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
(in thousands)
	As of
ANALYSIS OF LOAN PORTFOLIO	June 30, 2023		March 31, 2023		December 31, 2022		September 30, 2022		June 30, 2022
Loan mix:
Commercial	$	535,085	$	520,894	$	519,196	$	526,336	$	475,704
Real estate:
Construction, land and land development	351,461		336,739		363,015		341,549		390,137
1-4 family residential first mortgages	80,998		75,223		75,211		69,991		69,829
Home equity	12,625		9,726		10,322		10,271		8,564
Commercial	1,820,718		1,810,158		1,771,940		1,661,907		1,627,150
Consumer and other	10,289		7,381		7,291		7,884		5,912
	2,811,176		2,760,121		2,746,975		2,617,938		2,577,296
Net unamortized fees and costs	(4,101)		(3,936)		(4,139)		(3,793)		(4,167)
Total loans	$	2,807,075	$	2,756,185	$	2,742,836	$	2,614,145	$	2,573,129
Less allowance for credit losses	(27,938)		(27,941)		(25,473)		(25,418)		(25,434)
Net loans	$	2,779,137	$	2,728,244	$	2,717,363	$	2,588,727	$	2,547,695

CLASSIFIED LOANS
Watch	$	187	$	52,766	$	54,231	$	57,789	$	46,114
Substandard	349		404		410		427		434
Doubtful	—		—		—		—		—
Total	$	536	$	53,170	$	54,641	$	58,216	$	46,548

ANALYSIS OF DEPOSITS
Deposit mix:
Noninterest-bearing demand	$	568,029	$	605,666	$	693,563	$	712,722	$	690,335
Interest-bearing demand	459,030		486,656		536,226		469,257		472,919
Savings and money market - non-brokered	1,302,468		1,202,756		1,125,202		1,170,214		1,253,366
Money market - brokered	114,142		92,524		112,752		82,480		106,654
Total nonmaturity deposits	2,443,669		2,387,602		2,467,743		2,434,673		2,523,274
Time - non-brokered	276,097		269,102		252,725		212,574		229,354
Time - brokered	116,559		141,689		159,940		175,600		89,823
Total time deposits	392,656		410,791		412,665		388,174		319,177
Total deposits	$	2,836,325	$	2,798,393	$	2,880,408	$	2,822,847	$	2,842,451

ANALYSIS OF BORROWINGS
Borrowings mix:
Federal funds purchased and other short-term borrowings	$	184,150	$	229,290	$	200,000	$	204,500	$	133,000
Subordinated notes, net	79,500		79,435		79,369		79,303		79,265
Federal Home Loan Bank advances	280,000		220,000		155,000		125,000		125,000
Long-term debt	50,236		51,486		51,486		51,486		51,486
Total borrowings	$	593,886	$	580,211	$	485,855	$	460,289	$	388,751

STOCKHOLDERS’ EQUITY
Preferred stock	$	—	$	—	$	—	$	—	$	—
Common stock	3,000		3,000		3,000		3,000		3,000
Additional paid-in capital	32,642		31,797		32,021		31,152		30,283
Retained earnings	269,301		267,620		267,562		262,776		255,334
Accumulated other comprehensive loss	(87,817)		(85,425)		(91,471)		(98,164)		(72,428)
Total Stockholders’ Equity	$	217,126	$	216,992	$	211,112	$	198,764	$	216,189


WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
(in thousands)
	For the Quarter Ended
CONSOLIDATED STATEMENTS OF INCOME	June 30, 2023		March 31, 2023		December 31, 2022		September 30, 2022		June 30, 2022
Interest income:
Loans, including fees	$	35,011	$	32,948	$	30,859	$	28,102	$	24,848
Securities:
Taxable	3,432		3,316		3,398		3,147		3,090
Tax-exempt	883		885		887		890		892
Interest-bearing deposits	25		30		24		30		67
Total interest income	39,351		37,179		35,168		32,169		28,897
Interest expense:
Deposits	16,277		13,339		11,043		6,289		3,146
Federal funds purchased and other short-term borrowings	2,264		2,079		952		655		157
Subordinated notes	1,109		1,106		1,119		1,106		394
Federal Home Loan Bank advances	1,621		1,262		755		649		635
Long-term debt	739		698		630		466		326
Total interest expense	22,010		18,484		14,499		9,165		4,658
Net interest income	17,341		18,695		20,669		23,004		24,239
Credit loss expense (benefit)	—		—		—		—		(1,750)
Net interest income after credit loss expense (benefit)	17,341		18,695		20,669		23,004		25,989
Noninterest income:
Service charges on deposit accounts	458		462		476		553		585
Debit card usage fees	511		486		492		498		507
Trust services	749		706		678		780		622
Increase in cash value of bank-owned life insurance	250		257		255		246		236
Gain from bank-owned life insurance	—		691		—		—		—
Loan swap fees	—		—		—		835		—

Other income	421		355		364		364		328
Total noninterest income	2,389		2,957		2,265		3,276		2,278
Noninterest expense:
Salaries and employee benefits	7,029		6,867		6,552		6,578		6,410
Occupancy and equipment	1,322		1,327		1,270		1,315		1,242
Data processing	729		635		673		644		656
Technology and software	579		513		518		651		492
FDIC insurance	420		416		243		127		289
Professional fees	287		250		205		250		202
Director fees	251		205		215		209		222
Other expenses	1,857		1,858		1,989		1,684		1,753
Total noninterest expense	12,474		12,071		11,665		11,458		11,266
Income before income taxes	7,256		9,581		11,269		14,822		17,001
Income taxes	1,394		1,737		2,323		3,220		4,334
Net income	$	5,862	$	7,844	$	8,946	$	11,602	$	12,667

Basic earnings per common share	$	0.35	$	0.47	$	0.54	$	0.70	$	0.76
Diluted earnings per common share	$	0.35	$	0.47	$	0.53	$	0.69	$	0.75


WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
(in thousands)
	For the Six Months Ended
CONSOLIDATED STATEMENTS OF INCOME	June 30, 2023		June 30, 2022
Interest income:
Loans, including fees	$	67,959	$	48,134
Securities:
Taxable	6,748		5,979
Tax-exempt	1,768		1,750
Interest-bearing deposits	55		149
Total interest income	76,530		56,012
Interest expense:
Deposits	29,616		5,297
Federal funds purchased and other short-term borrowings	4,343		157
Subordinated notes	2,215		642
Federal Home Loan Bank advances	2,883		1,265
Long-term debt	1,437		584
Total interest expense	40,494		7,945
Net interest income	36,036		48,067
Credit loss expense (benefit)	—		(2,500)
Net interest income after credit loss expense (benefit)	36,036		50,567
Noninterest income:
Service charges on deposit accounts	920		1,165
Debit card usage fees	997		979
Trust services	1,455		1,251
Increase in cash value of bank-owned life insurance	507		463


Gain from bank-owned life insurance	691		—
Other income	776		809
Total noninterest income	5,346		4,667
Noninterest expense:
Salaries and employee benefits	13,896		12,708
Occupancy and equipment	2,649		2,328
Data processing	1,364		1,280
Technology and software	1,092		968
FDIC insurance	836		626
Professional fees	537		419
Director fees	456		390
Other expenses	3,715		3,209
Total noninterest expense	24,545		21,928
Income before income taxes	16,837		33,306
Income taxes	3,131		7,455
Net income	$	13,706	$	25,851

Basic earnings per common share	$	0.82	$	1.56
Diluted earnings per common share	$	0.82	$	1.54


WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)

	As of and for the Quarter Ended															For the Six Months Ended
COMMON SHARE DATA	June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022			June 30, 2022			June 30, 2023			June 30, 2022
Earnings per common share (basic)	$	0.35		$	0.47		$	0.54		$	0.70		$	0.76		$	0.82		$	1.56
Earnings per common share (diluted)	0.35			0.47			0.53			0.69			0.75			0.82			1.54
Dividends per common share	0.25			0.25			0.25			0.25			0.25			0.50			0.50
Book value per common share(1)	12.98			12.98			12.69			11.94			12.99
Closing stock price	18.41			18.27			25.55			20.81			24.34
Market price/book value(2)	141.83		%	140.76		%	201.34		%	174.29		%	187.37		%
Price earnings ratio(3)	13.11			9.56			11.93			7.49			7.98
Annualized dividend yield(4)	5.43		%	5.47		%	3.91		%	4.81		%	4.11		%

REGULATORY CAPITAL RATIOS
Consolidated:
Total risk-based capital ratio	12.15		%	12.17		%	12.08		%	12.34		%	12.53		%
Tier 1 risk-based capital ratio	9.51			9.51			9.55			9.72			9.81
Tier 1 leverage capital ratio	8.60			8.60			8.81			8.85			8.59
Common equity tier 1 ratio	8.92			8.92			8.96			9.11			9.17
West Bank:
Total risk-based capital ratio	13.13		%	13.16		%	13.08		%	13.38		%	13.62		%
Tier 1 risk-based capital ratio	12.24			12.26			12.33			12.60			12.81
Tier 1 leverage capital ratio	11.08			11.10			11.37			11.47			11.22
Common equity tier 1 ratio	12.24			12.26			12.33			12.60			12.81

KEY PERFORMANCE RATIOS AND OTHER METRICS
Return on average assets(5)	0.64		%	0.88		%	1.01		%	1.32		%	1.45		%	0.76		%	1.48		%
Return on average equity(6)	11.03			14.77			17.75			21.01			22.81			12.90			21.83
Net interest margin(7)(13)	2.02			2.23			2.49			2.78			2.93			2.12			2.89
Yield on interest-earning assets(8)(13)	4.57			4.41			4.21			3.87			3.49			4.49			3.36
Cost of interest-bearing liabilities	3.10			2.76			2.24			1.45			0.73			2.94			0.63
Efficiency ratio(9)(13)	62.83			55.34			50.42			43.16			41.96			58.91			41.05
Nonperforming assets to total assets(10)	0.01			0.01			0.01			0.01			0.01
ACL ratio(11)	1.00			1.01			0.93			0.97			0.99
Loans/total assets	76.31			76.03			75.91			74.32			74.05
Loans/total deposits	98.97			98.49			95.22			92.61			90.53
Tangible common equity ratio(12)	5.90			5.99			5.84			5.65			6.22

(1) Includes accumulated other comprehensive income (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 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)	As of and for the Quarter Ended															For the Six Months Ended
	June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022			June 30, 2022			June 30, 2023			June 30, 2022
Reconciliation of net interest income and net interest margin on a FTE basis to GAAP:
Net interest income (GAAP)	$	17,341		$	18,695		$	20,669		$	23,004		$	24,239		$	36,036		$	48,067
Tax-equivalent adjustment (1)	122			161			197			270			326			283			655
Net interest income on a FTE basis (non-GAAP)	17,463			18,856			20,866			23,274			24,565			36,319			48,722
Average interest-earning assets	3,461,313			3,435,988			3,328,941			3,322,522			3,362,313			3,448,722			3,397,021
Net interest margin on a FTE basis (non-GAAP)	2.02		%	2.23		%	2.49		%	2.78		%	2.93		%	2.12		%	2.89		%

Reconciliation of efficiency ratio on an adjusted and FTE basis to GAAP:
Net interest income on a FTE basis (non-GAAP)	$	17,463		$	18,856		$	20,866		$	23,274		$	24,565		$	36,319		$	48,722
Noninterest income	2,389			2,957			2,265			3,276			2,278			5,346			4,667

Adjustment for losses on disposal of premises and equipment, net	2			—			2			—			9			2			27
Adjusted income	19,854			21,813			23,133			26,550			26,852			41,667			53,416
Noninterest expense	12,474			12,071			11,665			11,458			11,266			24,545			21,928
Efficiency ratio on an adjusted and FTE basis (non-GAAP) (2)	62.83		%	55.34		%	50.42		%	43.16		%	41.96		%	58.91		%	41.05		%

(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 Q2 2023 | 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 recent rate increases by the Federal Reserve; 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 “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 (including as a result of the implementation of the current expected credit loss (CECL) accounting standard) or regulatory requirements; the concentration of large deposits from certain clients who have balances above current FDIC insurance limits; changes in local, national and international economic conditions, including rising rates of inflation 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 at Silicon Valley Bank, Signature Bank and First Republic Bank that resulted in the failure of those institutions; changes in legal and regulatory requirements, limitations and costs including in response to the recent failures of Silicon Valley Bank, Signature Bank and First Republic Bank; changes in customers’ acceptance of the Company’s products and services; the occurrence of fraudulent activity, breaches or failures of our 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 Russian invasion of Ukraine, widespread disease or pandemics, such as the COVID-19 pandemic, 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; talent and labor shortages; the new 1 percent excise tax on stock buybacks by publicly traded companies; 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 2Q 2023 Financial Highlights (1) Presented on a fully taxable equivalent basis; see Appendix for “Non-GAAP Financial Measures.” $26.26 NASDAQ: WTBA June 30, 2023 Closing Price: $18.41 2Q 2023 Price Range: $15.04 to $19.96 Cash Dividend Declared On July 26, 2023: $0.25 (payable on August 23, 2023) Annualized Dividend Yield: 5.43% Efficiency Ratio1 62.83% ROA 0.64% NPAs/Assets 0.01% ROE 11.03% NIM1 2.02% Diluted EPS $0.35 Net Income $5.9 million

4 • West Bancorporation, Inc. (the “Company”) is a publicly-traded financial holding company (NASDAQ: WTBA) established in 1984 whose 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; and Southern Minnesota, which includes Rochester, Owatonna, Mankato, and St. Cloud, Minnesota. • Reliable, dividend paying community bank with $3.7 billion in assets focused on commercial banking. 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, 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. • West Bank strives to be best at all things that are most important to someone running their own business. Mission

5 Experienced Executive Leadership David D. Nelson Director/Chief Executive Officer/President Joined West Bank in 2010 Years in Banking: 40 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: 45 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: 38 Prior to joining the Company Mr. Peters was the Executive Vice President of Bremer 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: 33 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: 43 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: 27 Prior to joining West Bank, Mr. Mather spent 8 years at Bremer 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. Constructed a bank office building in Rochester, Minnesota. Crossed $2 billion in total assets. Expanded into St. Cloud, Mankato, and Owatonna, Minnesota with the same lift- out strategy used in Rochester, Minnesota. Crossed $3 billion in total assets. Opened a newly constructed bank office building in St. Cloud Minnesota and began construction on a bank office building in Mankato, Minnesota. Began construction on new corporate headquarters in West Des Moines, Iowa. After being in the same leased space for fifty years, the new building is an opportunity to consolidate our corporate operations under one roof, and provide space for future growth and enhanced business development opportunities. 2010 2013 2016 2018 2019 2020 2022 2022

7 Company Highlights – Commitment to Excellence West Bancorporation is a strong 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 131 year presence in the Des Moines 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 conservative operating philosophy and expense management. Industry Recognition • Ranked by S & P Global as the #17 top performing large community bank in America in 2022 among banks with assets between $3 billion and $10 billion. • Ranked by Raymond James as the #13 top performing community bank in America in 2022 among publicly traded banks with assets between $500 million and $10 billion. We have received this award for 9 out of the last 10 years. • Ranked by American Banker as the #18 top performing community bank in America in 2022 among banks with assets between $2 billion and $10 billion. Asset Quality • Proven credit culture with a history of strong asset quality. • Classified watch list loan balance was 0.02% of the loan portfolio at June 30, 2023. • Nonperforming assets at June 30, 2023 totaled $309 thousand, or 0.01% of total assets.

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 Strategy Community Service & Philanthropy Risk Management • Strict credit risk management with robust processes and experienced credit personnel. • 31 high quality commercial bankers with an average of 22 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. We live where we lend. • 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. • In 2022, our employees volunteered over 7,000 hours of community service. • In 2022, the West Bancorporation Foundation and West Bank provided over $700,000 in total philanthropic contributions to more than 225 organizations. • Commercial real estate stress testing is completed quarterly. • No exposure to cryptocurrency companies or assets. • No commercial real estate office exposure in major metropolitan downtown areas outside of Iowa.

9 $2,537 $2,580 $2,650 $2,745 $2,783 $2,756 $2,807 2Q22 3Q22 4Q22 1Q23 2Q23 1Q23 2Q23 Loans • Loans increased $50.9 million in Q2 2023. • Quarterly average loans increased $38.1 million compared to Q1 2023. • Commercial real estate loans are diversified among various sectors, including hotels, warehouses, medical, senior living, mixed use and office. • Commercial office lending makes up less than 7% of the total loan portfolio, with only 1.3% located in the Des Moines metropolitan downtown area. • Loan yields increased 17 bps in Q2 2023 compared to Q1 2023. • Rising market interest rates resulted in increasing rates on variable rate loans and higher interest rates on renewed and originated loans. • 29% of the loan portfolio are variable rate loans. Quarterly Highlights C & I, 19% CRE - NOO, 42% CRE - OO, 11% Multi Family, 12% 1-4 Family, 3% C & D, 12% Consumer and other, 1% Loan Mix as of 6/30/23 3.95% 4.34% 4.63% 4.88% 5.05% Loans ($ in millions) Average Balances Period End Loan Yield %

10 Deposits • Total deposits increased $37.9 million in Q2 2023. • Brokered deposits decreased $3.5 million in Q2 2023. • 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 27.5% of total deposits. • Deposit costs increased 39 bps in Q2 2023 compared to Q1 2023. • Deposit rates have increased in response to increases in short-term market rates, high short-term Treasury rates and significant deposit competition from financial institutions and brokerage firms. Quarterly Highlights $3,003 $2,865 $2,902 $2,847 $2,855 $2,798 $2,836 2Q22 3Q22 4Q22 1Q23 2Q23 1Q23 2Q23 Average Balances Deposit Rate % Period End Deposits ($ in millions) 0.55% 1.16% 1.99% 2.46% 2.85% Brokered Deposits, 8% Noninterest Bearing, 20% Interest Bearing Demand, 16% Savings and Money Market, 46% Time Deposits, 10% Deposit Mix as of 6/30/23

11 Funding and Liquidity Cost of liability funding ($ in thousands) Cash and cash equivalents $ 31,744 Unpledged securities 265,796 FHLB borrowing availability 548,803 Unsecured lines of credit availability 35,000 Federal Reserve discount window availability 3,144 Federal Reserve Bank Term Funding Program availability 99,039 Total as of 6/30/2023 $ 983,526 $3,254 $3,226 $3,271 $3,367 $3,393 $698 $717 $705 $651 $564 $2,304 $2,148 $2,196 $2,195 $2,291 $252 $361 $370 $521 $538 Average Noninterest-Bearing Deposit Average Interest Bearing Deposits Average Borrowings 2Q22 3Q22 4Q22 1Q23 2Q23 0.73% 1.45% 2.24% 2.76% 3.10% Overall Funding Costs Rise Sources of Liquidity West Bank also maintains master brokered deposit agreements with two brokerage firms and access to one-way buy options with the IntraFi® ICS and CDARS programs. ($ in thousands)

12 Credit Quality $0.4 $0.4 $0.4 $0.4 $0.3 2Q22 3Q22 4Q22 1Q23 2Q23 $0.3 $0.3 $0.3 $0.3 $0.3 2Q22 3Q22 4Q22 1Q23 2Q23 $25.4 $25.4 $25.5 $25.5 $27.9$2.4 2Q22 3Q22 4Q22 1Q23 2Q23 Net Charge-Offs (Recoveries) ($ in thousands) Substandard Loans ($ in millions) Nonaccrual Loans ($ in millions) Allowance for Credit Losses ($ in millions) 0.99% 0.97% 0.93% 1.01% 1.00% ACL/Loans % CECL Adoption Adjustment $439 $16 $(56) $(10) $3 2Q22 3Q22 4Q22 1Q23 2Q23

13 Net Interest Income (1) Presented on a fully taxable equivalent basis; see Appendix for “Non-GAAP Financial Measures.” Net interest income decreased $1.4 million in Q2 2023 compared to Q1 2023 • Loan interest income increased $2.2 million. • Deposit interest expense increased $2.9 million. • Borrowed funds interest expense increased $0.6 million. Net interest margin declined 21 bps in Q2 2023 • The changes in deposit and funding mix and rising rates had a negative impact on net interest margin that exceeded the benefits of higher loan and securities yields. • Fixed rate nature of loan portfolio results in lagging repricing compared to deposits. • Large balance client base is more sensitive to rising interest rates. • Estimated investment portfolio cash flows for the next 12 months is $54.6 million with a roll- off interest rate of 2.01%. $24.2 $23.0 $20.7 $18.7 $17.3 2Q22 3Q22 4Q22 1Q23 2Q23 Net Interest Income ($ in millions) 2.93% 2.78% 2.49% 2.23% 2.02% Net Interest margin %(1)

14 $11,266 $11,458 $11,665 $12,071 $12,474 $6,410 $6,578 $6,552 $6,867 $7,029 $1,242 $1,315 $1,270 $1,327 $1,322 $1,148 $1,295 $1,191 $1,148 $1,308 $2,466 $2,270 $2,652 $2,729 $2,815 Other Data Processing, Software and Technology Occupancy and Equipment Compensation and Benefits 2Q22 3Q22 4Q22 1Q23 2Q23 Noninterest Income & Expense (1) Presented on a fully taxable equivalent basis; see Appendix for “Non-GAAP Financial Measures.” A lower ratio is more desirable. $2,278 $3,276 $2,265 $2,957 $2,389 2Q22 3Q22 4Q22 1Q23 2Q23 Noninterest Income ($ in thousands) Noninterest Income • Q1 2023 included a gain on bank owned life insurance totaling $691 thousand. • Q3 2022 included loan swap fees totaling $835 thousand. Noninterest Expense • Increase in efficiency ratio primarily due to a decrease in net interest income, driven by higher cost of deposits and borrowed funds. • Wage increases have been higher than recent historical averages in response to market conditions and competition in retaining and recruiting talent. • Full time equivalents have increased with growth in our commercial banking team and information technology department. • Occupancy and equipment has increased because of depreciation expense related to the new building in St. Cloud, Minnesota. 41.96% 43.16% 50.42% 55.34% 62.83% Efficiency Ratio%(1) Noninterest Expense ($ in thousands)

15 9.2% 9.1% 9.0% 8.9% 8.9% 12.8% 12.6% 12.3% 12.3% 12.2% 2Q22 3Q22 4Q22 1Q23 2Q23 8.6% 8.9% 8.8% 8.6% 8.6% 11.2% 11.5% 11.4% 11.1% 11.1% 2Q22 3Q22 4Q22 1Q23 2Q23 9.8% 9.7% 9.6% 9.5% 9.5% 12.8% 12.6% 12.3% 12.3% 12.2% 2Q22 3Q22 4Q22 1Q23 2Q23 12.5% 12.3% 12.1% 12.2% 12.2% 13.6% 13.4% 13.1% 13.2% 13.1% 2Q22 3Q22 4Q22 1Q23 2Q23 Regulatory Capital Ratios Note: Lines depict well capitalized levels.Company 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%

16Appendix Appendix Non-GAAP Financial Measures (in thousands) As of and for the Quarter Ended June 30, 2023 March 31, 2023 December 31, 2022 September 30, 2022 June 30, 2022 Reconciliation of net interest income and net interest margin on a FTE basis to GAAP: Net interest Income (GAAP) $ 17,341 $ 18,695 $ 20,669 $ 23,004 $ 24,239 Tax-equivalent adjustment (1) 122 161 197 270 326 Net interest income on a FTE basis (non-GAAP) 17,463 18,856 20,866 23,274 24,565 Average interest-earning assets 3,461,313 3,435,988 3,328,941 3,322,522 3,362,313 Net interest margin on a FTE basis (non-GAAP) 2.02 % 2.23 % 2.49 % 2.78 % 2.93 % Reconciliation of efficiency ratio on an adjusted and FTE basis to GAAP: Net interest income on a FTE basis (non-GAAP) $ 17,463 $ 18,856 $ 20,866 $ 23,274 $ 24,565 Noninterest income 2,389 2,957 2,265 3,276 2,278 Adjustment for losses on disposal of premises and equipment, net 2 — 2 — 9 Adjusted income 19,854 21,813 23,133 26,550 26,852 Noninterest expense 12,474 12,071 11,665 11,458 11,266 Efficiency ratio on an adjusted and FTE basis (non- GAAP) (2) 62.83 % 55.34 % 50.42 % 43.16 % 41.96 % (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.

17 Third Quarter 2022 Earnings Highlights October 27, 2022 Appendix West Bancorporation, Inc. Board of Directors Back L to R: Douglas Gulling, Sean McMurray, Patrick Donovan and Philip Jason Worth Front L to R: Steven Gaer, Lisa Elming, George Milligan, Rosemary Parson, David Nelson, James Noyce (Chair), Therese Vaughan and Steven Schuler

Cover	Jul. 27, 2023
Cover [Abstract]
Document Type	8-K
Document Period End Date	Jul. 27, 2023
Entity Registrant Name	WEST BANCORPORATION, INC.
Entity Incorporation, State or Country Code	IA
Entity File Number	0-49677
Entity Tax Identification Number	42-1230603
Entity Address, Address Line One	1601 22nd Street
Entity Address, City or Town	West Des Moines
Entity Address, State or Province	IA
Entity Address, Postal Zip Code	50266
City Area Code	515-
Local Phone Number	222-2300
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common stock, no par value
Trading Symbol	WTBA
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Entity Central Index Key	0001166928
Amendment Flag	false