What changed in this filing

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Item 1. Financial Statements

2024-07-25 compared with 2024-04-25 · 140 added, 90 removed, 835 unchanged (22% of the section changed)

3 unchanged sentences

Consolidated Balance Sheet

(in thousands, except share and per share data) March 31, 2024 December 31, 2023

(in thousands, except share and per share data) June 30, 2024 December 31, 2023

Cash and due from banks $ 27,994 $ 33,245

28 unchanged sentences

authorized 50,000,000 shares;

no shares issued and outstanding at March 31, 2024 and December 31, 2023

no shares issued and outstanding at June 30, 2024 and December 31, 2023

Common stock, no par value;

authorized 50,000,000 shares;

and 16,725,094 shares issued and outstanding at March 31, 2024

and 16,725,094 shares issued and outstanding at June 30, 2024

and December 31, 2023, respectively

8 unchanged sentences

Consolidated Statements of Income

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(in thousands, except per share data) 2024 2023 2024 2023

42 unchanged sentences

Consolidated Statements of Comprehensive Income (Loss)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(in thousands) 2024 2023 2024 2023

6 unchanged sentences

Unrealized gains on derivatives:

Unrealized holding gains (losses) arising during the period 7,489 ( 1,634 )

Unrealized holding gains arising during the period 2,364 8,102 9,853 6,468

reclassification adjustment for net gains realized in net income ( 2,898 ) ( 2,467 ) ( 5,813 ) ( 4,425 )

8 unchanged sentences

(in thousands, except share and per share data)

Three Months Ended March 31, 2024

Three Months Ended June 30, 2024

Additional Other

1 unchanged sentence

Stock Shares Amount Capital Earnings Income (Loss) Total

Balance, March 31, 2024 $ — 16,813,952 $ 3,000 $ 33,685 $ 272,997 $ ( 85,926 ) $ 223,756

— — — — 5,192 — 5,192

Other comprehensive loss, net of tax — — — — — ( 1,494 ) ( 1,494 )

Cash dividends declared, $ 0.25 per common share

— — — — ( 4,208 ) — ( 4,208 )

Stock-based compensation costs

— — — 637 — — 637

Issuance of common stock upon vesting of restricted stock units, net of shares withheld for payroll taxes — 18,680 — — — — —

Balance, June 30, 2024 $ — 16,832,632 $ 3,000 $ 34,322 $ 273,981 $ ( 87,420 ) $ 223,883

Three Months Ended June 30, 2023

Additional Other

Preferred Common Stock Paid-In Retained Comprehensive

Stock Shares Amount Capital Earnings Income (Loss) Total

Balance, March 31, 2023 $ — 16,712,257 $ 3,000 $ 31,797 $ 267,620 $ ( 85,425 ) $ 216,992

— — — — 5,862 — 5,862

Other comprehensive loss, net of tax — — — — — ( 2,392 ) ( 2,392 )

Cash dividends declared, $ 0.25 per common share

— — — — ( 4,181 ) — ( 4,181 )

Stock-based compensation costs

— — — 845 — — 845

Issuance of common stock upon vesting of restricted stock units, net of shares withheld for payroll taxes — 12,837 — — — — —

Balance, June 30, 2023 $ — 16,725,094 $ 3,000 $ 32,642 $ 269,301 $ ( 87,817 ) $ 217,126

See Notes to Consolidated Financial Statements.

West Bancorporation, Inc.

and Subsidiary

Consolidated Statements of Stockholders' Equity

(in thousands, except share and per share data)

Six Months Ended June 30, 2024

Additional Other

Preferred Common Stock Paid-In Retained Comprehensive

Stock Shares Amount Capital Earnings Income (Loss) Total

Balance, December 31, 2023 $ — 16,725,094 $ 3,000 $ 34,197 $ 271,369 $ ( 83,523 ) $ 225,043

7 unchanged sentences

Issuance of common stock upon vesting of restricted stock units, net of shares withheld for payroll taxes — 107,538 — ( 1,087 ) — — ( 1,087 )

Balance, March 31, 2024 $ — 16,813,952 $ 3,000 $ 33,685 $ 272,997 $ ( 85,926 ) $ 223,756

Three Months Ended March 31, 2023

Balance, June 30, 2024 $ — 16,832,632 $ 3,000 $ 34,322 $ 273,981 $ ( 87,420 ) $ 223,883

Six Months Ended June 30, 2023

Additional Other

12 unchanged sentences

— 84,681 — ( 935 ) — — ( 935 )

Balance, March 31, 2023 $ — 16,712,257 $ 3,000 $ 31,797 $ 267,620 $ ( 85,425 ) $ 216,992

Balance, June 30, 2023 $ — 16,725,094 $ 3,000 $ 32,642 $ 269,301 $ ( 87,817 ) $ 217,126

(1) Cumulative effect adjustment pursuant to adoption of ASU 2016-13, Financial Instruments - Credit Losses (Topic 326):

5 unchanged sentences

Consolidated Statements of Cash Flows

Three Months Ended March 31,

Six Months Ended June 30,

(in thousands) 2024 2023

5 unchanged sentences

Increase in cash value of bank-owned life insurance ( 552 ) ( 507 )

Gain from bank-owned life insurance — ( 691 )

Depreciation 1,517 808

1 unchanged sentence

Change in assets and liabilities:

Increase in accrued interest receivable ( 1,689 ) ( 296 )

(Increase) decrease in other assets 262 ( 1,322 )

Decrease in accrued expenses and other liabilities ( 416 ) ( 6,054 )

(Increase) decrease in accrued interest receivable ( 558 ) 203

Increase in other assets ( 792 ) ( 947 )

Increase (decrease) in accrued expenses and other liabilities 610 ( 5,964 )

Net cash provided by operating activities 16,123 10,264

5 unchanged sentences

Purchases of premises and equipment ( 17,593 ) ( 15,000 )

Proceeds of principal and earnings from bank-owned life insurance — 2,458

Net cash used in investing activities ( 62,058 ) ( 59,600 )

1 unchanged sentence

Net increase (decrease) in deposits 207,143 ( 44,083 )

Net increase in federal funds purchased and other short-term borrowings 48,230 29,290

Net decrease in federal funds purchased and other short-term borrowings ( 64,770 ) ( 15,850 )

Net increase in Federal Home Loan Bank advances — 125,000

3 unchanged sentences

Net cash provided by financing activities 130,397 54,541

Net increase (decrease) in cash and cash equivalents 82,660 ( 4,059 )

Net increase in cash and cash equivalents 84,462 5,205

Cash and Cash Equivalents:

14 unchanged sentences

Certain information and footnote disclosures normally included in financial statements have been condensed or omitted pursuant to such rules and regulations.

Although management believes that the disclosures are adequate to make the information presented understandable, it is suggested that these interim consolidated financial statements be read in conjunction with the Company's Annual Report on Form 10-K, as amended, for the year ended December 31, 2023, filed with the SEC on February 23, 2024.

In the opinion of management, the accompanying consolidated financial statements of the Company contain all adjustments necessary to fairly present its financial position as of March 31, 2024 and December 31, 2023, and net income, comprehensive income (loss), changes in stockholders' equity and cash flows for the three months ended March 31, 2024 and 2023.

Although management believes that the disclosures are adequate to make the information presented understandable, it is suggested that these interim consolidated financial statements be read in conjunction with the Company's Annual Report on Form 10-K/A for the year ended December 31, 2023, filed with the SEC on February 23, 2024.

In the opinion of management, the accompanying consolidated financial statements of the Company contain all adjustments necessary to fairly present its financial position as of June 30, 2024 and December 31, 2023, net income, comprehensive income (loss) and changes in stockholders' equity for the three and six months ended June 30, 2024 and 2023, and cash flows for the six months ended June 30, 2024 and 2023.

The results for these interim periods may not be indicative of results for the entire year or for any other period.

24 unchanged sentences

2022-06 defers the sunset date from December 31, 2022 to December 31, 2024.

The Company does not expect the updates within Topic 848 to have a material impact on our financial statements.

The Company does not expect the updates within Topic 848 to have a material impact on the Company's financial statements.

In March 2023, the FASB issued ASU No.

4 unchanged sentences

For public business entities, the amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years.

The ASU does not have a material impact on the Company's financial statements.

The implementation of this ASU did not have a material impact on the Company's financial statements.

West Bancorporation, Inc.

10 unchanged sentences

However, if by June 30, 2027, the SEC has not removed the related disclosure from its regulations, the amendments will be removed from the Codification and not become effective for any entity.

These amendments have not had an impact to the Company as of March 31, 2024.

These amendments have not had an impact to the Company as of June 30, 2024.

In November 2023, the FASB issued ASU No.

16 unchanged sentences

The incremental shares, to the extent they would have been dilutive, were included in the denominator of the diluted earnings per common share calculation.

The calculations of earnings per common share and diluted earnings per common share for the three months ended March 31, 2024 and 2023 are presented in the following table.

Three Months Ended March 31,

The calculations of earnings per common share and diluted earnings per common share for the three and six months ended June 30, 2024 and 2023 are presented in the following table.

Three Months Ended June 30, Six Months Ended June 30,

(in thousands, except per share data) 2024 2023 2024 2023

11 unchanged sentences

Securities Available for Sale

The following tables show the amortized cost, gross unrealized gains and losses, and fair value of securities available for sale, by security type as of March 31, 2024 and December 31, 2023.

March 31, 2024

The following tables show the amortized cost, gross unrealized gains and losses, and fair value of securities available for sale, by security type as of June 30, 2024 and December 31, 2023.

June 30, 2024

(Losses) Fair

20 unchanged sentences

(1) Collateralized mortgage obligations and mortgage-backed securities consist of residential and commercial mortgage pass-through securities and collateralized mortgage obligations guaranteed by FNMA, FHLMC, GNMA and SBA.

Securities with an amortized cost of approximately $ 442,363 and $ 447,074 as of March 31, 2024 and December 31, 2023, respectively, were pledged to secure access to Federal Home Loan Bank (FHLB) advances and Federal Reserve credit programs, for public fund deposits, and for other purposes as required or permitted by law or regulation.

The amortized cost and fair value of securities available for sale as of March 31, 2024, by contractual maturity, are shown below.

Securities with a total amortized cost of approximately $ 537,800 and $ 447,074 as of June 30, 2024 and December 31, 2023, respectively, were pledged to secure access to Federal Home Loan Bank (FHLB) advances and Federal Reserve credit programs, for public fund deposits, and for other purposes as required or permitted by law or regulation.

The amortized cost and fair value of securities available for sale as of June 30, 2024, by contractual maturity, are shown below.

Certain securities have call features that allow the issuer to call the securities prior to maturity.

1 unchanged sentence

Therefore, collateralized mortgage obligations and mortgage-backed securities are not included in the maturity categories within the following maturity summary.

March 31, 2024

June 30, 2024

Amortized Cost Fair Value

8 unchanged sentences

(dollars in thousands, except per share data)

There were no sales of securities available for sale during the three months ended March 31, 2024 and 2023.

The following tables show the fair value and gross unrealized losses, aggregated by investment type and length of time that individual securities have been in a continuous loss position, as of March 31, 2024 and December 31, 2023.

March 31, 2024

There were no sales of securities available for sale during the three and six months ended June 30, 2024 and 2023.

June 30, 2024

Less than 12 months 12 months or longer Total

23 unchanged sentences

If the Company intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis, then the security is written down to fair value through income.

As of March 31, 2024 and December 31, 2023, the Company did not have the intent to sell, nor was it more likely than not that we would be required to sell any of the securities in an unrealized loss position prior to recovery.

As of March 31, 2024 and December 31, 2023, the Company also determined that no individual securities in an unrealized loss position represented credit losses that would require an allowance for credit losses.

As of June 30, 2024 and December 31, 2023, the Company did not have the intent to sell, nor was it more likely than not that we would be required to sell any of the securities in an unrealized loss position prior to recovery.

As of June 30, 2024 and December 31, 2023, the Company also determined that no individual securities in an unrealized loss position represented credit losses that would require an allowance for credit losses.

The Company concluded that the unrealized losses were primarily attributable to increases in market interest rates since these securities were purchased and other market conditions.

Accrued interest receivable is not included in available-for-sale security balances and is presented in the "Accrued interest receivable" line of the Consolidated Balance Sheets.

Interest receivable on securities was $ 3,443 and $ 3,271 as of March 31, 2024 and December 31, 2023, respectively, and was excluded from the estimate of credit losses.

Interest receivable on securities was $ 3,117 and $ 3,271 as of June 30, 2024 and December 31, 2023, respectively, and was excluded from the estimate of credit losses.

West Bancorporation, Inc.

3 unchanged sentences

Loans and Allowance for Credit Losses

Loans consisted of the following segments as of March 31, 2024 and December 31, 2023.

March 31, 2024 December 31, 2023

Loans consisted of the following segments as of June 30, 2024 and December 31, 2023.

June 30, 2024 December 31, 2023

Commercial $ 526,589 $ 531,594

7 unchanged sentences

$ 2,998,774 $ 2,927,535

Real estate loans of approximately $ 1,460,000 and $ 1,420,000 were pledged as security for FHLB advances as of March 31, 2024 and December 31, 2023, respectively.

Real estate loans of approximately $ 1,440,000 and $ 1,420,000 were pledged as security for FHLB advances as of June 30, 2024 and December 31, 2023, respectively.

Loans are stated at the principal amounts outstanding, net of unamortized loan fees and costs, with interest income recognized on the interest method based upon the terms of the loan.

3 unchanged sentences

Allowance for Credit Losses for Loans

The following tables detail the changes in the allowance for credit losses (ACL) by loan segment for the three months ended March 31, 2024 and 2023.

Three Months Ended March 31, 2024

The following tables detail the changes in the allowance for credit losses (ACL) by loan segment for the three and six months ended June 30, 2024 and 2023.

Three Months Ended June 30, 2024

Commercial Construction and Land 1-4 Family Residential Home Equity Commercial Consumer and Other Total

5 unchanged sentences

Ending balance $ 5,106 $ 4,228 $ 643 $ 148 $ 18,143 $ 154 $ 28,422

Six Months Ended June 30, 2024

Commercial Construction and Land 1-4 Family Residential Home Equity Commercial Consumer and Other Total

Beginning balance $ 5,291 $ 3,668 $ 704 $ 142 $ 18,420 $ 117 $ 28,342

Charge-offs ( 4 ) — — — — — ( 4 )

Recoveries 35 7 40 2 — — 84

Provision for credit loss expense (1)

( 216 ) 553 ( 101 ) 4 ( 277 ) 37 —

Ending balance $ 5,106 $ 4,228 $ 643 $ 148 $ 18,143 $ 154 $ 28,422

West Bancorporation, Inc.

2 unchanged sentences

(dollars in thousands, except per share data)

Three Months Ended March 31, 2023

Three Months Ended June 30, 2023

Commercial Construction and Land 1-4 Family Residential Home Equity Commercial Consumer and Other Total

Beginning balance $ 5,497 $ 3,166 $ 466 $ 88 $ 18,645 $ 79 $ 27,941

Charge-offs ( 18 ) — — — — — ( 18 )

Recoveries 13 — — 2 — — 15

Provision for credit loss expense (1)

4 118 6 20 ( 176 ) 28 —

Ending balance $ 5,496 $ 3,284 $ 472 $ 110 $ 18,469 $ 107 $ 27,938

Six Months Ended June 30, 2023

Commercial Construction and Land 1-4 Family Residential Home Equity Commercial Consumer and Other Total

Beginning balance $ 4,804 $ 3,548 $ 357 $ 101 $ 16,575 $ 88 $ 25,473

Adoption of CECL 677 ( 234 ) 121 ( 8 ) 1,911 ( 9 ) 2,458

5 unchanged sentences

(1) The negative provisions for the various segments are related to the decline in outstanding balances in each of those portfolio segments during the time periods disclosed, improvement in qualitative risk factors related to those portfolio segments and/or changes in economic forecasts.

The following tables present a breakdown of the ACL by segment, disaggregated based on the evaluation method as of March 31, 2024 and December 31, 2023.

March 31, 2024

The following tables present a breakdown of the ACL by segment, disaggregated based on the evaluation method as of June 30, 2024 and December 31, 2023.

June 30, 2024

Commercial Construction and Land 1-4 Family Residential Home Equity Commercial Consumer and Other Total

13 unchanged sentences

(dollars in thousands, except per share data)

The following tables present the recorded investment in loans, exclusive of unamortized fees and costs, disaggregated based on the evaluation method by segment as of March 31, 2024 and December 31, 2023.

March 31, 2024

The following tables present the recorded investment in loans, exclusive of unamortized fees and costs, disaggregated based on the evaluation method by segment as of June 30, 2024 and December 31, 2023.

June 30, 2024

Commercial Construction and Land 1-4 Family Residential Home Equity Commercial Consumer and Other Total

15 unchanged sentences

Therefore, the Company has made a policy election to exclude accrued interest from the measurement of the ACL.

Accrued interest on loans of $ 11,709 and $ 10,292 at March 31, 2024 and December 31, 2023, respectively, was included in the "Accrued interest receivable" line of the Consolidated Balance Sheets and was excluded from the estimate of credit losses.

Accrued interest on loans of $ 10,948 and $ 10,292 at June 30, 2024 and December 31, 2023, respectively, was included in the "Accrued interest receivable" line of the Consolidated Balance Sheets and was excluded from the estimate of credit losses.

Expected credit losses are reflected in the ACL through a charge to credit loss expense.

22 unchanged sentences

Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured.

The following table presents the amortized cost basis of loans on nonaccrual status, loans on nonaccrual status with no ACL recorded, and loans past due 90 days or more and still accruing by loan segment.

Total Nonaccrual Nonaccrual with no Allowance for Credit Losses 90 Days or More Past Due and Accruing

March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023 June 30, 2024 December 31, 2023 June 30, 2024 December 31, 2023

Commercial $ — $ — $ — $ — $ — $ —

7 unchanged sentences

Total $ 521 $ 296 $ 521 $ 296 $ — $ —

There was no interest income recognized on loans that were on nonaccrual for the three months ended March 31, 2024 and March 31, 2023.

There was no interest income recognized on loans that were on nonaccrual for the six months ended June 30, 2024 and June 30, 2023.

West Bancorporation, Inc.

2 unchanged sentences

(dollars in thousands, except per share data)

The following tables provide an analysis of the delinquency status of the amortized cost of loans as of March 31, 2024 and December 31, 2023.

March 31, 2024

The following tables provide an analysis of the delinquency status of the amortized cost of loans as of June 30, 2024 and December 31, 2023.

June 30, 2024

Past Due Total

26 unchanged sentences

Loan Restructurings Made to Borrowers Experiencing Financial Difficulty

As of March 31, 2024 and December 31, 2023, the Company had no loan restructurings made to borrowers experiencing financial difficulty.

There were no loan restructurings made to borrowers experiencing financial difficulty for which there was a payment default within twelve months following the modification during the three months ended March 31, 2024 and 2023.

As of June 30, 2024 and December 31, 2023, the Company had no loan restructurings made to borrowers experiencing financial difficulty.

A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms.

65 unchanged sentences

(dollars in thousands, except per share data)

The following tables present the amortized cost basis of loans by loan segment, credit quality indicator and origination year, and the current period gross write-off by loan segment and origination year, based on the analysis performed as of March 31, 2024 and December 31, 2023.

Term Loans by Origination Year

As of March 31, 2024 2024 2023 2022 2021 2020 Prior Revolving Loans Total

As of June 30, 2024 2024 2023 2022 2021 2020 Prior Revolving Loans Total

Pass $ 49,128 $ 124,757 $ 92,495 $ 40,106 $ 24,500 $ 45,130 $ 143,413 $ 519,529

92 unchanged sentences

The ACL may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the loan.

The following table presents the amortized cost basis of collateral dependent loans, by primary collateral type, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans.

As of March 31, 2024

As of June 30, 2024

Primary Type of Collateral

10 unchanged sentences

The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life.

The Company's allowance for credit losses for unfunded commitments was $ 2,544 as of March 31, 2024 and December 31, 2023.

The Company's allowance for credit losses for unfunded commitments was $ 2,544 as of June 30, 2024 and December 31, 2023.

The allowance for credit losses for off-balance-sheet credit exposures is presented in the "Accrued expenses and other liabilities" line of the Consolidated Balance Sheets.

Changes in the allowance for credit losses for off-balance-sheet credit exposures is reflected in the "Credit loss expense" line of the Consolidated Statements of Income.

There were no changes to the allowance for credit losses for off-balance-sheet credit exposures during the three months ended March 31, 2024 and March 31, 2023.

There were no changes to the allowance for credit losses for off-balance-sheet credit exposures during the three and six months ended June 30, 2024 and 2023.

The Company has entered into various interest rate swap agreements as part of its interest rate risk management strategy.

6 unchanged sentences

Interest Rate Swaps Designated as a Cash Flow Hedge:

The Company had interest rate swaps designated as cash flow hedges with total notional amounts of $ 515,000 and $ 445,000 at March 31, 2024 and December 31, 2023, respectively.

As of March 31, 2024, the Company had swaps with a total notional amount of $ 315,000 that hedge the interest payments of rolling one-month funding consisting of FHLB advances or brokered deposits.

One of these swaps with a total notional amount of $ 20,000 is a forward-starting swap with a starting date in August 2024.

Also as of March 31, 2024, the Company had swaps with a total notional amount of $ 40,000 that effectively convert variable-rate long-term debt to fixed-rate debt and swaps with a total notional amount of $ 160,000 that hedge the interest payments of certain deposit accounts.

Two swaps with a total notional amount of $ 50,000 are forward-starting swaps with a starting date in July 2024 and will replace $ 50,000 of the swaps hedging interest payments on deposit accounts upon maturity.

The Company had interest rate swaps designated as cash flow hedges with total notional amounts of $ 515,000 and $ 445,000 at June 30, 2024 and December 31, 2023, respectively.

As of June 30, 2024, the Company had swaps with a total notional amount of $ 295,000 that hedge the interest payments of rolling one-month funding consisting of FHLB advances or brokered deposits.

An additional forward starting swap with a notional amount of $ 20,000 has a starting date in August 2024, replacing a maturing swap.

Also as of June 30, 2024, the Company had swaps with a total notional amount of $ 40,000 that effectively convert variable-rate long-term debt to fixed-rate debt and swaps with a total notional amount of $ 110,000 that hedge the interest payments of certain deposit accounts.

Two additional forward starting swaps with a total notional amount of $ 50,000 have a starting date in July 2024 and will replace $ 50,000 of maturing swaps hedging interest payments on deposit accounts.

Derivatives Not Designated as Accounting Hedges:

7 unchanged sentences

The customer accommodations and any offsetting swaps are treated as non-hedging derivative instruments which do not qualify for hedge accounting.

The table below identifies the balance sheet category and fair values of the Company's derivative instruments as of March 31, 2024 and December 31, 2023.

March 31, 2024 December 31, 2023

The table below identifies the balance sheet category and fair values of the Company's derivative instruments as of June 30, 2024 and December 31, 2023.

June 30, 2024 December 31, 2023

Cash Flow Hedges:

9 unchanged sentences

Fair value in other liabilities ( 15,515 ) ( 14,114 )

The following table identifies the pre-tax gains or losses recognized on the Company's derivative instruments designated as cash flow hedges for the three months ended March 31, 2024 and 2023.

Three Months Ended March 31,

Pre-tax gain (loss) recognized in other comprehensive

income (loss) $ 7,489 $ ( 1,634 )

The following table identifies the pre-tax gains or losses recognized on the Company's derivative instruments designated as cash flow hedges for the three and six months ended June 30, 2024 and 2023.

Three Months Ended June 30, Six Months Ended June 30,

2024 2023 2024 2023

Pre-tax gain recognized in other comprehensive

income $ 2,364 $ 8,102 $ 9,853 $ 6,468

Decrease in interest expense ( 2,898 ) ( 2,467 ) ( 5,813 ) ( 4,425 )

3 unchanged sentences

(dollars in thousands, except per share data)

The Company estimates there will be approximately $ 11,514 reclassified from accumulated other comprehensive income (loss) to decrease interest expense through the 12 months ending March 31, 2025 related to cash flow hedges.

The Company estimates there will be approximately $ 11,529 reclassified from accumulated other comprehensive income (loss) to decrease interest expense through the 12 months ending June 30, 2025 related to cash flow hedges.

The Company is exposed to credit risk in the event of nonperformance by interest rate swap counterparties, which is minimized by collateral-pledging provisions in the agreements.

1 unchanged sentence

These agreements protect the interests of the Company and its counterparties should either party suffer a credit rating deterioration.

As of both March 31, 2024 and December 31, 2023, the Company pledged $ 0 of collateral to the counterparties in the form of cash on deposit.

As of March 31, 2024 and December 31, 2023, the Company's counterparties pledged $ 29,820 and $ 22,340 , respectively, of collateral to the Company in the form of cash on deposit.

The interest rate swap product with the borrower is cross-collateralized with the underlying loan and therefore there is no pledged cash collateral under swap contracts with customers.

Net deferred tax assets consisted of the following as of March 31, 2024 and December 31, 2023.

March 31, 2024 December 31, 2023

As of both June 30, 2024 and December 31, 2023, the Company pledged $ 0 of collateral to the counterparties in the form of cash on deposit.

As of June 30, 2024 and December 31, 2023, the Company's counterparties pledged $ 29,470 and $ 22,340 , respectively, of collateral to the Company in the form of cash on deposit.

The interest rate swap product with the borrower is cross-collateralized with the underlying loan collateral and therefore there is no pledged cash collateral under swap contracts with customers.

Net deferred tax assets consisted of the following as of June 30, 2024 and December 31, 2023.

June 30, 2024 December 31, 2023

Deferred tax assets:

24 unchanged sentences

Accumulated Other Comprehensive Income (Loss)

The following table summarizes the changes in the balances of each component of accumulated other comprehensive income (loss), net of tax, for the three months ended March 31, 2024 and 2023.

The following table summarizes the changes in the balances of each component of accumulated other comprehensive income (loss), net of tax, for the six months ended June 30, 2024 and 2023.

Unrealized Unrealized Accumulated

6 unchanged sentences

Net current period other comprehensive income (loss) ( 6,940 ) 3,043 ( 3,897 )

Balance, March 31, 2024 $ ( 97,081 ) $ 11,155 $ ( 85,926 )

Balance, June 30, 2024 $ ( 98,173 ) $ 10,753 $ ( 87,420 )

Balance, December 31, 2022 $ ( 103,680 ) $ 12,209 $ ( 91,471 )

Other comprehensive income (loss) before reclassifications 8,762 ( 1,233 ) 7,529

Other comprehensive income before reclassifications 2,124 4,881 7,005

Amounts reclassified from accumulated other comprehensive income (loss) ( 13 ) ( 3,338 ) ( 3,351 )

Net current period other comprehensive income (loss) 8,756 ( 2,710 ) 6,046

Balance, March 31, 2023 $ ( 94,924 ) $ 9,499 $ ( 85,425 )

Net current period other comprehensive income 2,111 1,543 3,654

Balance, June 30, 2023 $ ( 101,569 ) $ 13,752 $ ( 87,817 )

Commitments and Contingencies

5 unchanged sentences

The Company uses the same credit policies in making commitments and conditional obligations that it uses for on-balance-sheet instruments.

The Company's commitments consisted of the following amounts as of March 31, 2024 and December 31, 2023.

March 31, 2024 December 31, 2023

The Company's commitments consisted of the following amounts as of June 30, 2024 and December 31, 2023.

June 30, 2024 December 31, 2023

Commitments to fund real estate construction loans $ 283,382 $ 385,846

4 unchanged sentences

West Bank receives credit enhancement fees from the FHLB for providing this guarantee and continuing to assist with managing the credit risk of the MPF Program residential mortgage loans.

The outstanding balance of mortgage loans sold under the MPF Program was $ 19,373 and $ 20,159 at March 31, 2024 and December 31, 2023, respectively.

The outstanding balance of mortgage loans sold under the MPF Program was $ 18,597 and $ 20,159 at June 30, 2024 and December 31, 2023, respectively.

Contractual commitments :

The Company had remaining commitments to invest in qualified affordable housing projects totaling $ 1,525 and $ 1,649 as of March 31, 2024 and December 31, 2023, respectively.

The Company had remaining commitments to invest in qualified affordable housing projects totaling $ 1,468 and $ 1,649 as of June 30, 2024 and December 31, 2023, respectively.

West Bancorporation, Inc.

18 unchanged sentences

The Company's policy is to recognize transfers between levels at the end of each reporting period, if applicable.

There were no transfers between levels of the fair value hierarchy during the three months ended March 31, 2024.

There were no transfers between levels of the fair value hierarchy during the six months ended June 30, 2024.

The following is a description of valuation methodologies used for financial assets and liabilities recorded at fair value on a recurring basis.

18 unchanged sentences

These models’ key assumptions include the contractual terms of the respective contract along with significant observable inputs, including interest rates, yield curves, nonperformance risk and volatility.

The following tables present the balances of financial assets and liabilities measured at fair value on a recurring basis by level as of March 31, 2024 and December 31, 2023.

March 31, 2024

The following tables present the balances of financial assets and liabilities measured at fair value on a recurring basis by level as of June 30, 2024 and December 31, 2023.

June 30, 2024

Total Level 1 Level 2 Level 3

28 unchanged sentences

Individually evaluated loans that are deemed to have impairment are classified within Level 3 of the fair value hierarchy and are recorded at fair value, which is based on the value of the collateral securing these loans.

As of both March 31, 2024 and December 31, 2023, there were no individually evaluated loans with a fair value adjustment.

As of both June 30, 2024 and December 31, 2023, there were no individually evaluated loans with a fair value adjustment.

In determining the estimated net realizable value of the underlying collateral of individually evaluated loans, the Company primarily uses third-party appraisals or broker opinions which may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach.

3 unchanged sentences

GAAP requires disclosure of the fair value of financial assets and financial liabilities, including those that are not measured and reported at fair value on a recurring or nonrecurring basis .

The following table presents the carrying amounts and approximate fair values of financial assets and liabilities as of March 31, 2024 and December 31, 2023.

March 31, 2024

The following table presents the carrying amounts and approximate fair values of financial assets and liabilities as of June 30, 2024 and December 31, 2023.

June 30, 2024

Carrying Amount Approximate Fair Value Level 1 Level 2 Level 3

41 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements