Financial Data and Key Metrics Changes - The company reported its best quarter in its 128-year history with a return on equity of 20% and an efficiency ratio under 40% [6][7] - The quarterly dividend was increased from $0.22 to $0.24 per share, with a payment date set for May 26 [7] - The provision for the first quarter was $500,000, down from $1 million in the same quarter last year and significantly lower than the $4 million in the fourth quarter of 2020 [30][31] - First-quarter net interest income was positively impacted by $2.842 million from PPP loans, contributing approximately $2.1 million after tax [29] Business Line Data and Key Metrics Changes - The company experienced a loan growth of approximately 2.5% in Eastern Iowa, excluding PPP loans [23] - The Texas ratio increased due to a specific customer issue, but overall credit health remains strong [14][19] - The watch list for loans increased to 5.1% of total loans, primarily due to one hotel group and one separate hotel being placed on the list [16] Market Data and Key Metrics Changes - The hotel sector has shown improvement, with average occupancy increasing from 30% in January to 42% in March [20] - The Minnesota expansion has seen loan outstandings grow to nearly $300 million, contributing to a total of over $0.5 billion in loan outstandings in Minnesota [26] Company Strategy and Development Direction - The company is focused on organic growth, having nearly tripled its size from $1.2 billion to $3.2 billion from 2011 to 2020 without acquisitions [44] - The management is open to M&A opportunities but emphasizes maintaining the purity of their business model [45] Management's Comments on Operating Environment and Future Outlook - The management expects loan growth to continue but acknowledges potential headwinds from aggressive interest rates and rising input costs for construction [41] - The outlook for the second quarter is expected to be strong but not as high as the record first quarter [34] Other Important Information - The company received three national accolades for top performance, ranking 21st in the Raymond James Community Cup and 10th in S&P Global's list of top community banks [10][11] Q&A Session Summary Question: Remaining unrealized fees from PPP loans - The company has about $770,000 of unearned fees from the first round and $2.88 million from the second round of PPP loans [38] Question: Cost of FHLB advances and repayment opportunities - The cost of Federal Home Loan Bank advances was approximately 2.6%, and the company plans to pay off $25 million in April and another $25 million in May [39] Question: Loan growth expectations for the rest of the year - The company is optimistic about loan growth but does not provide specific guidance, noting that construction advances of over $150 million should fund through the year [41] Question: M&A interest - The management is open to M&A but emphasizes their successful organic growth strategy [44][45] Question: Metrics for new market opportunities - The company focuses on hiring top local bankers with existing relationships to ensure successful market entry and profitability [51]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents West Bancorporation, Inc.'s unaudited consolidated financial statements and notes for Q1 2021 and prior periods [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Total assets slightly decreased from December 2020 to March 2021, driven by lower cash and deposits, partially offset by increased securities and net loans | Metric | March 31, 2021 (in thousands) | December 31, 2020 (in thousands) | Change (in thousands) | % Change | | :-------------------------- | :----------------------------- | :------------------------------- | :-------------------- | :------- | | Total assets | $3,172,906 | $3,185,744 | $(12,838) | -0.40% | | Cash and cash equivalents | $325,489 | $396,435 | $(70,946) | -17.90% | | Securities available for sale | $447,152 | $420,571 | $26,581 | 6.32% | | Loans, net | $2,273,991 | $2,251,139 | $22,852 | 1.01% | | Total deposits | $2,682,093 | $2,700,994 | $(18,901) | -0.70% | | Total liabilities | $2,938,377 | $2,962,049 | $(23,672) | -0.80% | | Total stockholders' equity | $234,529 | $223,695 | $10,834 | 4.84% | [Consolidated Statements of Income](index=7&type=section&id=Consolidated%20Statements%20of%20Income) Net income significantly increased in Q1 2021 versus Q1 2020, driven by higher net interest income and lower loan loss provision | Metric | Three Months Ended March 31, 2021 (in thousands) | Three Months Ended March 31, 2020 (in thousands) | Change (in thousands) | % Change | | :---------------------------------- | :--------------------------------------------- | :--------------------------------------------- | :-------------------- | :------- | | Total interest income | $26,310 | $25,220 | $1,090 | 4.32% | | Total interest expense | $3,189 | $6,756 | $(3,567) | -52.80% | | Net interest income | $23,121 | $18,464 | $4,657 | 25.22% | | Provision for loan losses | $500 | $1,000 | $(500) | -50.00% | | Total noninterest income | $2,465 | $2,520 | $(55) | -2.18% | | Total noninterest expense | $10,271 | $9,663 | $608 | 6.29% | | Income before income taxes | $14,815 | $10,321 | $4,494 | 43.54% | | Net income | $11,752 | $8,089 | $3,663 | 45.28% | | Basic earnings per common share | $0.71 | $0.49 | $0.22 | 44.90% | | Diluted earnings per common share | $0.70 | $0.49 | $0.21 | 42.86% | [Consolidated Statements of Comprehensive Income](index=8&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income significantly improved from a Q1 2020 loss to a Q1 2021 gain, mainly due to positive derivative shifts | Metric | Three Months Ended March 31, 2021 (in thousands) | Three Months Ended March 31, 2020 (in thousands) | Change (in thousands) | | :------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | :-------------------- | | Net income | $11,752 | $8,089 | $3,663 | | Other comprehensive income (loss) on securities | $(6,240) | $149 | $(6,389) | | Other comprehensive income (loss) on derivatives | $9,525 | $(15,688) | $25,213 | | Total other comprehensive income (loss) | $3,285 | $(15,539) | $18,824 | | Comprehensive income (loss) | $15,037 | $(7,450) | $22,487 | [Consolidated Statements of Stockholders' Equity](index=9&type=section&id=Consolidated%20Statements%20of%20Stockholders%27%20Equity) Stockholders' equity increased from December 2020 to March 2021, driven by net income and other comprehensive income, offset by dividends | Metric | December 31, 2020 (in thousands) | March 31, 2021 (in thousands) | Change (in thousands) | | :-------------------------- | :------------------------------- | :---------------------------- | :-------------------- | | Total stockholders' equity | $223,695 | $234,529 | $10,834 | | Net income | - | $11,752 | $11,752 | | Other comprehensive income, net of tax | - | $3,285 | $3,285 | | Cash dividends declared | - | $(3,623) | $(3,623) | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash and cash equivalents significantly decreased in Q1 2021, primarily due to net cash used in investing and financing activities | Metric | Three Months Ended March 31, 2021 (in thousands) | Three Months Ended March 31, 2020 (in thousands) | Change (in thousands) | | :------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | :-------------------- | | Net cash provided by operating activities | $15,049 | $10,412 | $4,637 | | Net cash used in investing activities | $(60,304) | $(28,136) | $(32,168) | | Net cash provided by (used in) financing activities | $(25,691) | $30,831 | $(56,522) | | Net increase (decrease) in cash and cash equivalents | $(70,946) | $13,107 | $(84,053) | | Ending cash and cash equivalents | $325,489 | $66,397 | $259,092 | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes provide essential context for financial statements, covering accounting policies, CECL adoption, and COVID-19 loan modification impacts - The Company plans to adopt **ASU No. 2016-13 (CECL)** for fiscal years beginning **after December 15, 2022**, as a smaller reporting company, and **does not plan to early adopt**[24](index=24&type=chunk) - COVID-19-related loan modifications totaled **$109,078 thousand** as of **March 31, 2021**, primarily deferring principal and/or interest payments, and were **not reported as Troubled Debt Restructurings (TDRs)** due to temporary suspension provisions[45](index=45&type=chunk)[47](index=47&type=chunk) - The Company terminated interest rate swaps with a total notional amount of **$50,000 thousand** in March 2021, resulting in pretax losses of **$3,600 thousand** reclassified from AOCI to noninterest income, and terminated forward-starting interest rate swaps with a notional amount of **$100,000 thousand**, yielding gains of **$3,781 thousand** recorded in noninterest income[81](index=81&type=chunk)[83](index=83&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the Company's Q1 2021 financial condition and results, highlighting COVID-19 impacts, key metrics, and detailed analysis ["Safe Harbor" Concerning Forward-Looking Statements](index=32&type=section&id=Safe%20Harbor%20Concerning%20Forward-Looking%20Statements) This section outlines forward-looking statements, noting that actual results may differ due to various risks, including COVID-19 and interest rate fluctuations - Forward-looking statements are subject to risks including the effects of the **COVID-19 pandemic**, **interest rate risk**, **competitive pressures**, **changes in credit quality**, **legal and regulatory requirements**, **cyber-attacks**, and other external events[112](index=112&type=chunk) [Critical Accounting Policies](index=32&type=section&id=Critical%20Accounting%20Policies) The Company's financial statements adhere to GAAP, with no significant changes in critical accounting policies or underlying assumptions since December 31, 2020 - **No significant changes** in critical accounting policies or the assumptions and judgments used in applying them since **December 31, 2020**[113](index=113&type=chunk) [Non-GAAP Financial Measures](index=33&type=section&id=Non-GAAP%20Financial%20Measures) This section reconciles non-GAAP financial measures like FTE net interest income, adjusted efficiency ratio, and ALLL excluding PPP loans to GAAP | Metric | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | Net interest income on an FTE basis (non-GAAP) | $23,350 | $18,642 | | Net interest margin on an FTE basis (non-GAAP) | 3.17% | 3.10% | | Efficiency ratio on an adjusted and FTE basis (non-GAAP) | 39.75% | 45.64% | | Metric | March 31, 2021 | December 31, 2020 | | :------------------------------------------ | :------------- | :---------------- | | Loans, net of PPP loans (non-GAAP) | $2,152,877 | $2,100,000 | | Allowance for loan losses ratio, excluding PPP loans (non-GAAP) | 1.39% | 1.40% | [Overview](index=34&type=section&id=Overview) The Company operates across Iowa and southern Minnesota, comparing Q1 2021 results to Q1 2020 and Q1 2021 financial condition to December 31, 2020 - The Company conducts business in **central Iowa** (greater Des Moines), **eastern Iowa** (Iowa City and Coralville), and **southern Minnesota** (Rochester, Owatonna, Mankato, St. Cloud)[119](index=119&type=chunk) [Impact of COVID-19](index=34&type=section&id=Impact%20of%20COVID-19) COVID-19 creates economic uncertainty, leading to a zero-interest rate policy, impacting deposit costs and loan yields, with significant loan modifications in affected industries - Federal Reserve returned to a **zero-interest rate policy** in **March 2020** due to **COVID-19**, impacting the Company's cost of deposits and loan yields[121](index=121&type=chunk)[122](index=122&type=chunk) - Exposure to hotel, restaurant, and movie theater industries totaled approximately **$252,660 thousand** (**11.0% of total loan portfolio**) as of **March 31, 2021**[123](index=123&type=chunk) - COVID-19-related loan modifications totaled **$109,078 thousand** as of **March 31, 2021**, primarily deferrals of principal and/or interest payments, with expirations ranging from April to June 2021[124](index=124&type=chunk) [Summary](index=34&type=section&id=Summary) Q1 2021 net income significantly increased to **$11,752 thousand** ($0.70 diluted EPS), driven by higher net interest income and lower loan loss provision, improving profitability ratios | Metric | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | Change | | :-------------------------- | :-------------------------------- | :-------------------------------- | :----- | | Net income | $11,752 | $8,089 | $3,663 | | Diluted EPS | $0.70 | $0.49 | $0.21 | | Return on average assets | 1.53% | 1.29% | 0.24% | | Return on average equity | 20.77% | 15.54% | 5.23% | - Net interest income increased by **$4,657 thousand**, primarily due to a **$3,169 thousand** decrease in interest expense on deposits[127](index=127&type=chunk) - Provision for loan losses decreased by **$500 thousand** (from **$1,000 thousand** in Q1 2020 to **$500 thousand** in Q1 2021)[128](index=128&type=chunk) - Total loans outstanding increased by **$23,424 thousand** (**1.0%**) during Q1 2021, with the allowance for loan losses at **1.39%** of outstanding loans, excluding PPP loans, as of **March 31, 2021**[130](index=130&type=chunk) - The Board of Directors declared a quarterly cash dividend of **$0.24 per common share**, a **$0.02 increase** from the prior quarter, representing a record high[133](index=133&type=chunk) [Results of Operations](index=36&type=section&id=Results%20of%20Operations) Q1 2021 results showed strong net income growth and improved profitability, driven by higher net interest income and lower loan loss provision, despite changes in noninterest items | Metric | March 31, 2021 | March 31, 2020 | Change | | :-------------------------- | :------------- | :------------- | :----- | | Net income | $11,752 | $8,089 | $3,663 | | Return on average assets | 1.53% | 1.29% | 0.24% | | Return on average equity | 20.77% | 15.54% | 5.23% | | Net interest margin (FTE) | 3.17% | 3.10% | 0.07% | | Efficiency ratio (adjusted, FTE) | 39.75% | 45.64% | -5.89% | | Texas ratio | 9.38% | 0.22% | 9.16% | [Net Interest Income](index=37&type=section&id=Net%20Interest%20Income) FTE net interest income increased by **$4,708 thousand** (**25.25%**) in Q1 2021, driven by lower deposit interest rates, offsetting declining loan yields, with net interest margin rising to **3.17%** | Metric | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | Change | | :------------------------------------ | :-------------------------------- | :-------------------------------- | :----- | | Net interest income (FTE) | $23,350 | $18,642 | $4,708 | | Net interest margin (FTE) | 3.17% | 3.10% | 0.07% | | Total interest-earning assets (average) | $2,979,710 | $2,420,497 | $559,213 | | Total interest-bearing liabilities (average) | $2,168,508 | $1,908,221 | $260,287 | - Interest expense on deposits decreased by **$3,169 thousand** (**62.80%**) due to lower offered rates following the Federal Reserve's rate reductions in **March 2020**[140](index=140&type=chunk)[147](index=147&type=chunk) - Interest income recognized on PPP loans was **$2,842 thousand** for Q1 2021, including **$2,046 thousand** of accelerated origination fees upon loan forgiveness, with management expecting loan interest income and yield to decline as PPP loan fees are recognized[145](index=145&type=chunk) [Provision for Loan Losses and the Related Allowance for Loan Losses](index=40&type=section&id=Provision%20for%20Loan%20Losses%20and%20the%20Related%20Allowance%20for%20Loan%20Losses) Provision for loan losses decreased by **50%** to **$500 thousand** in Q1 2021, with the allowance for loan losses at **$30,008 thousand** (**1.39%** excluding PPP loans), reflecting ongoing COVID-19 monitoring | Metric | Three Months Ended March 31, 2021 (in thousands) | Three Months Ended March 31, 2020 (in thousands) | Change (in thousands) | | :---------------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | :-------------------- | | Provision for loan losses charged to operations | $500 | $1,000 | $(500) | | Balance of allowance for loan losses at end of period | $30,008 | $18,332 | $11,676 | | Ratio of allowance for loan losses to total loans at end of period | 1.30% | 0.92% | 0.38% | | Ratio of allowance for loan losses to total loans at end of period, excluding PPP loans | 1.39% | 0.92% | 0.47% | - Nonaccrual loans increased by **$15,700 thousand** from **March 31, 2020**, to **March 31, 2021**, due to the **COVID-19 pandemic**[151](index=151&type=chunk) - The Company **increased economic factors** within the **allowance for loan losses evaluation** in 2020 due to **COVID-19** and **maintained them in Q1 2021**[158](index=158&type=chunk) [Noninterest Income](index=42&type=section&id=Noninterest%20Income) Total noninterest income slightly decreased by **$55 thousand** (**2.18%**) in Q1 2021, mainly due to lower loan swap fees, partially offset by gains in trust services and other income | Noninterest Income Category | Three Months Ended March 31, 2021 (in thousands) | Three Months Ended March 31, 2020 (in thousands) | Change (in thousands) | % Change | | :------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | :-------------------- | :------- | | Service charges on deposit accounts | $582 | $603 | $(21) | -3.48% | | Debit card usage fees | $442 | $382 | $60 | 15.71% | | Trust services | $652 | $463 | $189 | 40.82% | | Increase in cash value of bank-owned life insurance | $220 | $158 | $62 | 39.24% | | Loan swap fees | $0 | $586 | $(586) | -100.00% | | Realized securities gains (losses), net | $4 | $(6) | $10 | 166.67% | | Other income | $565 | $334 | $231 | 69.16% | | Total noninterest income | $2,465 | $2,520 | $(55) | -2.18% | - The increase in other income was primarily due to **$181 thousand** in **net swap termination gains** recognized in **March 2021**[162](index=162&type=chunk) [Noninterest Expense](index=43&type=section&id=Noninterest%20Expense) Total noninterest expense increased by **$608 thousand** (**6.29%**) in Q1 2021, driven by higher salaries and FDIC insurance, partially offset by lower business development and a check fraud settlement | Noninterest Expense Category | Three Months Ended March 31, 2021 (in thousands) | Three Months Ended March 31, 2020 (in thousands) | Change (in thousands) | % Change | | :------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | :-------------------- | :------- | | Salaries and employee benefits | $5,608 | $5,284 | $324 | 6.13% | | Occupancy | $1,228 | $1,213 | $15 | 1.24% | | Data processing | $602 | $630 | $(28) | -4.44% | | FDIC insurance | $404 | $237 | $167 | 70.46% | | Professional fees | $283 | $239 | $44 | 18.41% | | Director fees | $191 | $234 | $(43) | -18.38% | | Other expenses | $1,955 | $1,826 | $129 | 7.06% | | Total noninterest expense | $10,271 | $9,663 | $608 | 6.29% | - Business development expense **decreased** due to limitations from **COVID-19 shutdowns** and **social distancing guidelines**[166](index=166&type=chunk) - Other expenses **increased** primarily due to the **settlement of a loss on a check fraud scheme**[166](index=166&type=chunk) [Income Tax Expense](index=43&type=section&id=Income%20Tax%20Expense) Income tax expense increased to **$3,063 thousand** in Q1 2021 from **$2,232 thousand** in Q1 2020, with effective tax rates of **20.7%** and **21.6%**, respectively, influenced by tax-exempt income and restricted stock units | Metric | Three Months Ended March 31, 2021 (in thousands) | Three Months Ended March 31, 2020 (in thousands) | Change (in thousands) | | :---------------- | :--------------------------------------------- | :--------------------------------------------- | :-------------------- | | Income tax expense | $3,063 | $2,232 | $831 | | Effective tax rate | 20.7% | 21.6% | -0.9% | - A **tax benefit** of **$199 thousand** was recorded in **Q1 2021** due to the increase in fair value of restricted stock, compared to a **$94 thousand tax expense** in **Q1 2020** due to a decrease in fair value[167](index=167&type=chunk) [Financial Condition](index=44&type=section&id=Financial%20Condition) Total assets slightly decreased to **$3.17 billion** as of March 31, 2021, influenced by lower deposits and cash, offset by increased securities and loans, with a rise in nonperforming assets - Total assets decreased to **$3,172,906 thousand** at **March 31, 2021**, from **$3,185,744 thousand** at **December 31, 2020**[168](index=168&type=chunk) [Securities](index=44&type=section&id=Securities) Securities available for sale increased by **$26,581 thousand** in Q1 2021, with purchases aimed at improving yield on excess liquidity, and government agency guaranteed securities comprising **54%** of the portfolio - Securities available for sale increased by **$26,581 thousand** in **Q1 2021**, with purchases aimed at **improving yield on excess liquidity**[169](index=169&type=chunk) - Approximately **54%** of the available for sale securities portfolio consisted of **government agency guaranteed collateralized mortgage obligations and mortgage-backed securities** as of **March 31, 2021**[169](index=169&type=chunk) [Loans and Nonperforming Assets](index=44&type=section&id=Loans%20and%20Nonperforming%20Assets) Loans outstanding increased by **$23,424 thousand** to **$2,303,999 thousand** as of March 31, 2021, driven by real estate loans, while nonperforming assets rose by **$8,610 thousand**, increasing the Texas ratio to **9.38%** | Metric | March 31, 2021 (in thousands) | December 31, 2020 (in thousands) | Change (in thousands) | | :------------------------------------ | :----------------------------- | :------------------------------- | :-------------------- | | Loans outstanding | $2,303,999 | $2,280,575 | $23,424 | | Commercial real estate loans increase | $41,781 | - | $41,781 | | 1-4 family residential first mortgage loans increase | $11,720 | - | $11,720 | | Commercial loans decline | $(37,276) | - | $(37,276) | | PPP loans outstanding | $151,122 | $180,757 | $(29,635) | | Nonperforming Asset Metric | March 31, 2021 | December 31, 2020 | Change | | :------------------------------------ | :------------- | :---------------- | :----- | | Total nonperforming assets | $24,804 | $16,194 | $8,610 | | Nonperforming loans to total loans | 1.08% | 0.71% | 0.37% | | Nonperforming assets to total assets | 0.78% | 0.51% | 0.27% | | Texas ratio | 9.38% | 6.40% | 2.98% | - Watch classification of loans increased to **$100,057 thousand** from **$26,715 thousand**, primarily due to **$69,386 thousand** in hotel, restaurant, and other commercial real estate loans from one borrowing group, with **$45,051 thousand** of these in **COVID-19-related modification status**[172](index=172&type=chunk) [Deposits](index=45&type=section&id=Deposits) Total deposits decreased by **$18,901 thousand** in Q1 2021, with declines across various account types, attributed to customer activity and corporate liquidity, with further decreases anticipated - Deposits **decreased** by **$18,901 thousand** during the first three months of 2021[178](index=178&type=chunk) - Noninterest-bearing demand accounts decreased by **$5,402 thousand**, and interest-bearing demand and savings accounts decreased by **$42,686 thousand**[178](index=178&type=chunk) [Borrowed Funds](index=45&type=section&id=Borrowed%20Funds) The Company had **$179,060 thousand** in overnight federal funds and short-term FHLB advances outstanding at March 31, 2021, planning to repay **$50,000 thousand** of FHLB advances due to excess liquidity - Outstanding overnight federal funds purchased and short-term FHLB advances totaled **$179,060 thousand** at **March 31, 2021**[179](index=179&type=chunk) - The Company plans to **repay $50,000 thousand** of **FHLB advances** in **April and May 2021** due to high deposit balances and **excess liquidity**[179](index=179&type=chunk) [Derivatives](index=45&type=section&id=Derivatives) Notional interest rate swap contracts decreased to **$255,000 thousand** at March 31, 2021, with derivative liabilities increasing by **$12,733 thousand** due to rising rates, and **$150,000 thousand** in swaps terminated for net gains - Notional amount of interest rate swap contracts decreased to **$255,000 thousand** at **March 31, 2021**, from **$305,000 thousand** at **December 31, 2020**[180](index=180&type=chunk) - Fair value of derivative liabilities **increased** by **$12,733 thousand** due to increases in **projected long-term market interest rates**[180](index=180&type=chunk) - The Company **terminated $150,000 thousand** in interest rate swaps in **March 2021**, including **$100,000 thousand** in **forward-starting swaps** and **$50,000 thousand** hedging **FHLB advances**, resulting in **net termination gains**[181](index=181&type=chunk) [Liquidity and Capital Resources](index=46&type=section&id=Liquidity%20and%20Capital%20Resources) The Company maintains strong liquidity with **$325,489 thousand** in liquid assets and significant borrowing capacity, with stockholders' equity increasing to **$234,529 thousand**, meeting all regulatory capital requirements - Liquid assets (cash and cash equivalents) were **$325,489 thousand** at **March 31, 2021**, down from **$396,435 thousand** at **December 31, 2020**[182](index=182&type=chunk) - Additional borrowing capacity included approximately **$462,000 thousand** from **FHLB**, **$31,000 thousand** from Federal Reserve discount window, and **$67,000 thousand** from **unsecured federal funds lines of credit**[183](index=183&type=chunk) - Total stockholders' equity increased to **$234,529 thousand** at **March 31, 2021**, from **$223,695 thousand** at **December 31, 2020**[184](index=184&type=chunk) - The Company and West Bank **met all regulatory capital adequacy requirements** as of **March 31, 2021**, including the **Basel III capital conservation buffer**[186](index=186&type=chunk)[189](index=189&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=48&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The Company's primary market risk is interest rate risk, managed via earnings simulation, with a **300 basis point** rate increase estimated to boost net interest income by **4.83%** (**$4,112 thousand**) over one year - Primary market risk is **interest rate risk**, managed via an **Asset Liability Committee** using **earnings simulation**[190](index=190&type=chunk)[192](index=192&type=chunk) | Scenario | % Change in Net Interest Income (1 year) | | :------------------- | :--------------------------------------- | | 300 basis points rising | 4.83% | | 200 basis points rising | 3.37% | | 100 basis points rising | 1.74% | | Base | — | - The estimated effect of a **300 basis point increase** in interest rates would be an increase of net interest income by approximately **4.83%**, or **$4,112 thousand**, in **2021**[194](index=194&type=chunk) [Item 4. Controls and Procedures](index=48&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of March 31, 2021, with no material changes in internal control over financial reporting during Q1 2021 - Disclosure controls and procedures were **effective** as of **March 31, 2021**[196](index=196&type=chunk) - **No material changes** in **internal control over financial reporting** occurred during **Q1 2021**[197](index=197&type=chunk) [PART II. OTHER INFORMATION](index=50&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=50&type=section&id=Item%201.%20Legal%20Proceedings) Neither the Company nor West Bank is involved in any material pending legal proceedings beyond routine litigation - **No material pending legal proceedings** against the Company or West Bank, other than ordinary routine litigation[199](index=199&type=chunk) [Item 1A. Risk Factors](index=50&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors previously disclosed in the Company's Form 10-K filed on March 1, 2021 - **No material changes** in **risk factors** since the **Form 10-K** filed on **March 1, 2021**[200](index=200&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=50&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or use of proceeds to report [Item 3. Defaults Upon Senior Securities](index=50&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities to report [Item 4. Mine Safety Disclosures](index=50&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the Company [Item 5. Other Information](index=50&type=section&id=Item%205.%20Other%20Information) No other information to report under this item [Item 6. Exhibits](index=50&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed, including Sarbanes-Oxley Act certifications and Inline XBRL documents - Exhibits include **certifications of CEO and CFO** under **Sections 302 and 906 of the Sarbanes-Oxley Act**, and **Inline XBRL documents**[205](index=205&type=chunk) [Signatures](index=51&type=section&id=Signatures) The report is duly signed by West Bancorporation, Inc.'s CEO, President, CFO, and Chief Accounting Officer

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Commission file number: 0-49677 FORM 10-K WEST BANCORPORATION, INC. (Exact name of registrant as specified in its charter) Iowa 42-1230603 (Mark One) (State of incorporation or organization) (I.R.S. Employer Identification No.) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT of 1934 For the fiscal year ended December 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ...

West Bancorporation, Inc. (NASDAQ:WTBA) Q4 2020 Earnings Conference Call January 29, 2021 11:00 AM ET Company Participants Doug Gulling - CFO Dave Nelson - CEO Harlee Olafson - Chief Risk Officer Brad Winterbottom - Bank President Jane Funk - Controller and Chief Accounting Officer Conference Call Participants Brendan Nosal - Piper Sandler Operator Good day and welcome to the West Bancorporation Quarterly Earnings Call. All participants will be in listen-only mode. [Operator Instructions] After today’s pres ...

Financial Data and Key Metrics Changes - The company reported a record quarter and is on track for another record year despite setting aside a significantly higher provision this year [7] - The Board of Directors declared a dividend of $0.21 per share, maintaining the highest level paid [8] Business Line Data and Key Metrics Changes - Excluding PPP, loan growth was up approximately 4.5% for the first nine months of the year [12] - The company anticipates an additional $100 million in construction loans to be advanced over the next year [14] Market Data and Key Metrics Changes - The total watch list, including watch credits and non-accrual credits, totals $47 million, which is less than 2% of total loans, indicating historically low levels [16] - The hotel portfolio's occupancy rates improved from nearly zero in April and May to 57% in August, but fell back to 50% in September [19] Company Strategy and Development Direction - The company is expanding into Minnesota, with construction underway for a new facility in Sartell, Minnesota [9] - The company is focusing on maintaining strong credit quality and monitoring the financial health of borrowers [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to replace anticipated payoffs in the loan portfolio, expecting to maintain a growth rate of at least 4.5% by year-end [30] - The company is cautious about future margin pressures due to lower yields on reinvested loans [34] Other Important Information - Business DDA accounts have increased by 50% year-over-year, reflecting a conservative approach by customers amid economic uncertainty [22] - The company has seen strong performance in the Rochester market, driven by the recovery of Mayo Clinic's operations [24] Q&A Session Summary Question: What is the outlook for net loan growth over the next couple of quarters? - Management expects to maintain a growth rate of at least 4.5% by year-end, with a pipeline to replace anticipated payoffs [30] Question: How does the margin outlook look given the lower deposit costs? - Management indicated limited room for further lowering deposit costs, with future margins likely impacted by reinvestment at lower yields [34] Question: Can you provide more detail on the credit that may see some loss? - The credit is a large non-profit with adequate collateral, but there is potential for a small loss depending on future developments [36] Question: What is the status of the $16 million movie theater credit? - The theaters have reopened with limited operations, and the business has injected significant liquidity to support operations [38] Question: What is the current status of deferrals? - The company expects deferrals to decrease significantly, with most remaining deferrals related to hotel properties [40] Question: How adequate is the current allowance for potential issues? - Management believes the allowance is adequate as of the end of September, with future provisions likely similar to previous quarters [44]

[PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents West Bancorporation's unaudited consolidated financial statements for Q3 and YTD 2020, detailing financial position, performance, and cash flows [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$2.78 billion** by September 30, 2020, driven by loan growth and a rise in deposits Consolidated Balance Sheet Highlights (in millions) | Account | Sep 30, 2020 | Dec 31, 2019 | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **$2,775.9** | **$2,473.7** | **$302.2** | | Loans, net | $2,222.0 | $1,924.4 | $297.6 | | Investment securities available for sale | $374.4 | $398.6 | ($24.2) | | **Total Liabilities** | **$2,560.6** | **$2,261.9** | **$298.7** | | Total deposits | $2,296.8 | $2,014.8 | $282.0 | | **Total Stockholders' Equity** | **$215.3** | **$211.8** | **$3.5** | [Consolidated Statements of Income](index=7&type=section&id=Consolidated%20Statements%20of%20Income) Net income increased in Q3 and YTD 2020, driven by higher net interest income despite increased loan loss provisions Income Statement Highlights (in millions, except per share data) | Metric | Q3 2020 | Q3 2019 | YTD 2020 | YTD 2019 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $21.1 | $17.1 | $60.3 | $49.0 | | Provision for Loan Losses | $4.0 | $0.3 | $8.0 | $0.3 | | **Net Income** | **$8.1** | **$7.5** | **$24.2** | **$21.1** | | Diluted EPS | $0.49 | $0.46 | $1.46 | $1.28 | [Consolidated Statements of Comprehensive Income](index=8&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income rose in Q3 2020 but declined year-to-date, primarily due to unrealized derivative losses Comprehensive Income (in millions) | Metric | Q3 2020 | Q3 2019 | YTD 2020 | YTD 2019 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $8.1 | $7.5 | $24.2 | $21.1 | | Total other comprehensive income (loss) | $1.4 | ($2.7) | ($11.3) | $0.8 | | **Comprehensive Income** | **$9.5** | **$4.9** | **$12.9** | **$21.9** | [Consolidated Statements of Stockholders' Equity](index=9&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) Total stockholders' equity increased, driven by net income offset by comprehensive loss and cash dividends - Key changes in stockholders' equity for the nine months ended Sep 30, 2020, include **net income of $24.2 million**, offset by **other comprehensive loss of $11.3 million** and **cash dividends of $10.4 million**[19](index=19&type=chunk) - Cash dividends declared were **$0.63 per common share** for the nine months ended Sep 30, 2020, compared to **$0.62** for the same period in 2019[19](index=19&type=chunk) [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities provided **$31.1 million**, with investing activities using **$283.4 million**, leading to a net increase in cash Cash Flow Summary (Nine Months Ended Sep 30, in millions) | Activity | 2020 | 2019 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $31.1 | $27.3 | | Net Cash from Investing Activities | ($283.4) | ($59.2) | | Net Cash from Financing Activities | $264.9 | $113.7 | | **Net Increase in Cash** | **$12.6** | **$81.8** | [Notes to Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section details the Company's accounting policies, financial data disclosures, and COVID-19 pandemic impacts - The Company has elected to delay the adoption of **ASU No. 2016-13 (CECL model)** until fiscal years beginning after December 15, 2022[27](index=27&type=chunk) - The Company is evaluating the impact of **reference rate reform (Topic 848)**, with optional guidance effective through December 31, 2022[30](index=30&type=chunk) - The **COVID-19 pandemic** is a significant uncertainty that could materially and adversely impact financial estimates, especially expected credit losses on loans[112](index=112&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance and condition, focusing on COVID-19 impacts, net interest income, loan loss provisions, and loan growth [Significant Developments - Impact of COVID-19](index=40&type=section&id=Significant%20Developments%20-%20Impact%20of%20COVID-19) The company details COVID-19's significant impact, its response including PPP loans and payment deferrals, and stressed industry exposures - Originated **$224.5 million** in Paycheck Protection Program (PPP) loans as a participating lender[124](index=124&type=chunk)[129](index=129&type=chunk) - As of September 30, 2020, approximately **$434.4 million (19.3%)** of loans were in payment deferral status under COVID-19 related modifications[129](index=129&type=chunk) - Loan exposure to stressed industries (hotel, retail, restaurant, movie theater) was approximately **$331.7 million**, or **14.8%** of the total loan portfolio, at September 30, 2020[130](index=130&type=chunk) [Summary of Financial Performance](index=43&type=section&id=Summary) Net income increased in Q3 and YTD 2020, driven by net interest income despite higher loan loss provisions and strong loan growth Quarterly Performance Highlights (in millions, except per share data) | Metric | Q3 2020 | Q3 2019 | | :--- | :--- | :--- | | Net Income | $8.1 | $7.5 | | Diluted EPS | $0.49 | $0.46 | | ROA (annualized) | 1.16% | 1.22% | | ROE (annualized) | 15.20% | 14.76% | - The Board of Directors declared a quarterly cash dividend of **$0.21 per common share**, maintaining the previous level due to economic uncertainty[129](index=129&type=chunk)[144](index=144&type=chunk) - The allowance for loan losses to total loans ratio increased to **1.13%** at Sep 30, 2020, from **0.89%** at Dec 31, 2019, with the ratio at **1.26%** excluding PPP loans[141](index=141&type=chunk) [Results of Operations](index=46&type=section&id=Results%20of%20Operations) Operating results show significant net interest income growth, higher loan loss provisions, increased noninterest income, and modest expense growth Key Performance Ratios | Ratio | Nine Months 2020 | Nine Months 2019 | | :--- | :--- | :--- | | Return on average assets | 1.21% | 1.20% | | Return on average equity | 15.47% | 14.25% | | Net interest margin (FTE) | 3.19% | 2.95% | | Efficiency ratio (FTE) | 42.68% | 51.74% | [Financial Condition](index=56&type=section&id=Financial%20Condition) Total assets grew to **$2.78 billion**, driven by loan and deposit increases, while nonperforming assets rose due to COVID-19 impacts - Total assets increased by **$302.2 million** to **$2.78 billion** in the first nine months of 2020[179](index=179&type=chunk) - Nonaccrual loans increased by **$17.2 million** to **$17.8 million** as of September 30, 2020, from **$0.5 million** at year-end 2019, due to downgrades of two COVID-19 affected borrowers[183](index=183&type=chunk)[186](index=186&type=chunk) - The **Texas ratio** increased to **7.38%** as of September 30, 2020, from **0.23%** at December 31, 2019[183](index=183&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=62&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Disclosure for market risk is not required for smaller reporting companies - Disclosure is not required for smaller reporting companies[200](index=200&type=chunk) [Controls and Procedures](index=62&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective, with no material changes to internal control over financial reporting - The CEO and CFO concluded that **disclosure controls and procedures were effective** as of the end of the reporting period[201](index=201&type=chunk) - No material changes in **internal control over financial reporting** occurred during the quarter ended September 30, 2020[202](index=202&type=chunk) [PART II. OTHER INFORMATION](index=62&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=62&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in any material legal proceedings beyond ordinary routine litigation - The Company is not involved in any **material legal proceedings** outside of ordinary routine litigation[204](index=204&type=chunk) [Risk Factors](index=62&type=section&id=Item%201A.%20Risk%20Factors) Updated risk factors highlight significant uncertainties and adverse impacts from the COVID-19 pandemic, including credit quality and PPP risks - The **COVID-19 pandemic** has had an adverse impact on the economy, with its duration and extent remaining highly uncertain[205](index=205&type=chunk) - As a PPP lender, the company faces **litigation risks** regarding loan processing and the risk that the **SBA may not fully fund loan guarantees** if deficiencies are found[211](index=211&type=chunk)[213](index=213&type=chunk) - The pandemic has increased business risks, including potential declines in demand, increased loan delinquencies, reduced net interest margin, and potential loss of key employees[208](index=208&type=chunk)[216](index=216&type=chunk)[210](index=210&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=63&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities occurred during the reporting period - None[214](index=214&type=chunk) [Defaults Upon Senior Securities](index=63&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities occurred during the reporting period - None[215](index=215&type=chunk) [Mine Safety Disclosures](index=63&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[216](index=216&type=chunk) [Other Information](index=65&type=section&id=Item%205.%20Other%20Information) No other information is reported for this period - None[217](index=217&type=chunk) [Exhibits](index=66&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed, including CEO and CFO certifications and XBRL interactive data files - Exhibits filed include **certifications from the CEO and CFO** (31.1, 31.2, 32.1, 32.2) and **XBRL data files** (101 series)[218](index=218&type=chunk)

West Bancorporation, Inc. (NASDAQ:WTBA) Q2 2020 Earnings Conference Call July 24, 2020 11:00 AM ET Company Participants Douglas Gulling - EVP, Treasurer & CFO David Nelson - CEO, President & Director Harlee Olafson - EVP & Chief Risk Officer Conference Call Participants Brendan Nosal - Piper Sandler & Co. Operator Good morning, and welcome to West Bancorp quarterly earnings call. [Operator Instructions]. I'd like to turn the conference over to Mr. Doug Gulling, Chief Financial Officer. Please go ahead. Doug ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 0-49677 WEST BANCORPORATION, INC. (Exact Name of Registrant as Specified in its Charter) Iowa 42-1230603 (Stat ...

West Bancorporation, Inc. (NASDAQ:WTBA) Q1 2020 Earnings Conference Call April 24, 2020 11:00 AM ET Company Participants Dave Nelson - President and Chief Executive Officer Doug Gulling - Executive Vice President and Chief Financial Officer Harlee Olafson - Executive Vice President and Chief Risk Officer Brad Winterbottom - Executive Vice President Conference Call Participants Andrew Liesch - Piper Sandler Kevin McLaughlin - McLaughlin Investments Operator Good day. And welcome to the West Bancorp Quarter ...

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) IOWA 42-1230603 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 0-49677 WEST BANCORPORATION, INC. (Exact Name of Registrant as Specified in its Charter) (Sta ...