What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-04-24 compared with 2024-10-24 · 110 added, 180 removed, 793 unchanged (27% of the section changed)

3 unchanged sentences

Consolidated Balance Sheet

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

(in thousands, except share and per share data) March 31, 2025 December 31, 2024

Cash and due from banks $ 39,253 $ 28,750

18 unchanged sentences

Total deposits 3,324,518 3,357,596

Federal funds purchased and other short-term borrowings — 150,270

Subordinated notes, net 79,959 79,893

7 unchanged sentences

authorized 50,000,000 shares;

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

no shares issued and outstanding at March 31, 2025 and December 31, 2024

Common stock, no par value;

authorized 50,000,000 shares;

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

and 16,832,632 shares issued and outstanding at March 31, 2025

and December 31, 2024, respectively

8 unchanged sentences

Consolidated Statements of Income

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(in thousands, except per share data) 2025 2024

13 unchanged sentences

Net interest income 20,855 16,750

Credit loss expense — 200 — 200

Credit loss expense (benefit) — —

Net interest income after credit loss expense 20,855 16,750

4 unchanged sentences

Increase in cash value of bank-owned life insurance 282 274

Gain from bank-owned life insurance — — — 691

Loan swap fees — 431 — 431

Other income 267 331

19 unchanged sentences

Consolidated Statements of Comprehensive Income (Loss)

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(in thousands) 2025 2024

11 unchanged sentences

Total other comprehensive income (loss) 6,911 ( 2,403 )

Comprehensive income (loss) $ 15,041 $ ( 9,856 ) $ 22,145 $ 7,504

See Notes to Consolidated Financial Statements.

West Bancorporation, Inc.

and Subsidiary

Consolidated Statements of Stockholders' Equity

(in thousands, except share and per share data)

Three Months Ended September 30, 2024

Additional Other

Preferred Common Stock Paid-In Retained Comprehensive

Stock Shares Amount Capital Earnings Income (Loss) Total

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

— — — — 5,952 — 5,952

Other comprehensive income, net of tax — — — — — 9,089 9,089

Cash dividends declared, $ 0.25 per common share

— — — — ( 4,209 ) — ( 4,209 )

Stock-based compensation costs

— — — 638 — — 638

Balance, September 30, 2024 $ — 16,832,632 $ 3,000 $ 34,960 $ 275,724 $ ( 78,331 ) $ 235,353

Three Months Ended September 30, 2023

Additional Other

Preferred Common Stock Paid-In Retained Comprehensive

Stock Shares Amount Capital Earnings Income (Loss) Total

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

— — — — 5,906 — 5,906

Other comprehensive loss, net of tax — — — — — ( 15,762 ) ( 15,762 )

Cash dividends declared, $ 0.25 per common share

— — — — ( 4,182 ) — ( 4,182 )

Stock-based compensation costs

— — — 845 — — 845

Balance, September 30, 2023 $ — 16,725,094 $ 3,000 $ 33,487 $ 271,025 $ ( 103,579 ) $ 203,933

Comprehensive income $ 14,753 $ 3,406

See Notes to Consolidated Financial Statements.

3 unchanged sentences

(in thousands, except share and per share data)

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Additional Other

10 unchanged sentences

Issuance of common stock upon vesting of restricted stock units, net of shares withheld for payroll taxes — 90,648 — ( 1,132 ) — — ( 1,132 )

Balance, September 30, 2024 $ — 16,832,632 $ 3,000 $ 34,960 $ 275,724 $ ( 78,331 ) $ 235,353

Nine Months Ended September 30, 2023

Balance, March 31, 2025 $ — 16,923,280 $ 3,000 $ 35,072 $ 282,247 $ ( 82,446 ) $ 237,873

Three Months Ended March 31, 2024

Additional Other

2 unchanged sentences

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

Cumulative effect of change in accounting principle (1)

— — — — 5,809 — 5,809

— — — — 19,612 — 19,612

Other comprehensive loss, net of tax — — — — — ( 2,403 ) ( 2,403 )

5 unchanged sentences

— 88,858 — ( 1,087 ) — — ( 1,087 )

Balance, September 30, 2023 $ — 16,725,094 $ 3,000 $ 33,487 $ 271,025 $ ( 103,579 ) $ 203,933

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

Measurement of Credit Losses on Financial Instruments .

See Note 1 for additional information.

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

See Notes to Consolidated Financial Statements.

2 unchanged sentences

Consolidated Statements of Cash Flows

Nine Months Ended September 30,

Three Months Ended March 31,

(in thousands) 2025 2024

2 unchanged sentences

Adjustments to reconcile net income to net cash provided by operating activities:

Credit loss expense — 200

Net amortization and accretion 771 797

1 unchanged sentence

Increase in cash value of bank-owned life insurance ( 282 ) ( 274 )

Gain from bank-owned life insurance — ( 691 )

Depreciation 1,104 525

2 unchanged sentences

Increase in accrued interest receivable ( 316 ) ( 1,689 )

(Increase) decrease in other assets 334 ( 1,936 )

Increase (decrease) in accrued expenses and other liabilities 4,129 ( 3,058 )

Decrease in other assets 1,195 262

Decrease in accrued expenses and other liabilities ( 2,242 ) ( 416 )

Net cash provided by operating activities 9,749 6,121

5 unchanged sentences

Purchases of premises and equipment ( 1,492 ) ( 10,328 )

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

Net cash used in investing activities ( 2,949 ) ( 56,424 )

1 unchanged sentence

Net increase (decrease) in deposits ( 33,078 ) 91,251

Net increase (decrease) in federal funds purchased and other short-term borrowings ( 150,270 ) 61,510

Net increase in Federal Home Loan Bank advances — 160,000

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

Principal payments on long-term debt ( 1,250 ) ( 1,250 )

1 unchanged sentence

Restricted stock units withheld for payroll taxes ( 1,132 ) ( 1,087 )

Net cash provided by financing activities 137,069 80,673

Net cash provided by (used in) financing activities ( 39,668 ) 132,963

Net increase (decrease) in cash and cash equivalents ( 32,868 ) 82,660

15 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/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 September 30, 2024 and December 31, 2023, net income, comprehensive income (loss) and changes in stockholders' equity for the three and nine months ended September 30, 2024 and 2023, and cash flows for the nine months ended September 30, 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 for the year ended December 31, 2024, filed with the SEC on February 20, 2025.

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, 2025 and December 31, 2024, and net income, comprehensive income (loss), changes in stockholders' equity and cash flows for the three months ended March 31, 2025 and 2024.

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

8 unchanged sentences

In accordance with GAAP, West Bancorporation Capital Trust I is recorded on the books of the Company using the equity method of accounting and is not consolidated.

As a community-oriented financial institution, substantially all of West Bank's operations involve the delivery of loan and deposit products to customers.

The chief operating decision maker makes operating decisions and assesses performance based on an ongoing review of the community banking activities, which constitutes the Company's only operating segment for financial reporting purposes.

The Company's single segment is managed on a consolidated basis by the chief operating decision maker, which is the Company's chief executive officer.

The accounting policies of this segment are the same as those described in the Company's annual report on Form 10-K, filed with the SEC on February 20, 2025.

Refer to Note 1 in the Company's annual report on Form 10-K for additional information.

The chief operating decision maker assesses performance of the segment and determines the allocation of resources based on consolidated net income, which is reported in the Consolidated Statements of Income.

Consolidated net income is used in deciding where to deploy capital and to monitor budget vs.

actual results.

It is also used in benchmarking performance measures to Company peers for compensation related analysis.

The measure of segment assets is reported on the Consolidated Balance Sheets as total consolidated assets.

Current accounting developments :

In March 2020, the FASB issued ASU No.

2020-04, Reference Rate Reform (Topic 848):

Facilitation of the Effects of Reference Rate Reform on Financial Reporting.

The amendments in this update provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting.

They provide optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met.

The amendments in this update were effective for all entities as of March 12, 2020 through December 31, 2022.

In January 2021, the FASB issued ASU No.

2021-01, Reference Rate Reform (Topic 848):

The amendments in this update refine the scope for certain optional expedients and exceptions for contract modifications and hedge accounting to apply to derivative contra cts and certain hedging relationships affected by the discounting transition.

T he amendments in this update were effective for all entities as of March 12, 2020 through December 31, 2022.

In December 2022, the FASB issued ASU No.

2022-06, Reference Rate Reform (Topic 848):

Deferral of the Sunset Date of Topic 848.

The amendment in this update extends the period of time preparers can utilize reference rate reform relief guidance in Topic 848, discussed above.

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 the Company's financial statements.

In March 2023, the FASB issued ASU No.

2023-02, Investments - Equity Method and Joint Ventures (Topic 323):

Accounting for Investments in Tax Credit Structures Using Proportional Amortization Method .

The ASU is intended to improve the accounting and disclosures for investments in tax credit structures.

It allows reporting entities to elect to adopt for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits.

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

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

West Bancorporation, Inc.

and Subsidiary

Notes to Consolidated Financial Statements

(dollars in thousands, except per share data)

In October 2023, the FASB issued ASU No.

6 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 September 30, 2024.

In November 2023, the FASB issued ASU No.

2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures .

The amendments in this ASU are intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses.

For public business entities, the amendments are effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024.

The Company is currently evaluating the impact of the ASU on the Company’s consolidated financial statements.

These amendments have not had an impact to the Company as of March 31, 2025.

West Bancorporation, Inc.

and Subsidiary

Notes to Consolidated Financial Statements

(dollars in thousands, except per share data)

In December 2023, the FASB issued ASU No.

4 unchanged sentences

For public business entities, the amendments are effective for fiscal years beginning after December 15, 2024.

The Company adopted this guidance effected January 1, 2025 and will provide the required disclosures in the Company's 2025 filings.

In November 2024, the FASB issued ASU No.

2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses .

The amendments in this ASU require public companies to disclose, in the notes to the financial statements, specified information about certain costs and expenses at each interim and annual reporting period.

Additionally, in January 2025, the FASB issued ASU No.

2025-01, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40):

Clarifying the Effective Date .

This ASU amends the effective date of ASU No.

2024-03 to clarify that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027.

Early adoption of ASU No.

2024-03 is permitted.

The Company is currently evaluating the impact of the ASU on the Company's consolidated financial statements.

4 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 and nine months ended September 30, 2024 and 2023 are presented in the following table.

Three Months Ended September 30, Nine Months Ended September 30,

The calculations of earnings per common share and diluted earnings per common share for the three months ended March 31, 2025 and 2024 are presented in the following table.

Three Months Ended March 31,

(in thousands, except per share data) 2025 2024

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 September 30, 2024 and December 31, 2023.

September 30, 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 March 31, 2025 and December 31, 2024.

March 31, 2025

(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 a total amortized cost of approximately $ 590,851 and $ 447,074 as of September 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 September 30, 2024, by contractual maturity, are shown below.

Securities with a total amortized cost of approximately $ 564,327 and $ 572,491 as of March 31, 2025 and December 31, 2024, 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, 2025, 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.

September 30, 2024

March 31, 2025

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 and nine months ended September 30, 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 September 30, 2024 and December 31, 2023.

September 30, 2024

There were no sales of securities available for sale during the three months ended March 31, 2025 and 2024.

March 31, 2025

Less than 12 months 12 months or longer Total

19 unchanged sentences

Mortgage-backed securities 610 ( 3 ) 1 119,209 ( 26,170 ) 25 119,819 ( 26,173 )

Collateralized loan obligations — — — 37,536 ( 96 ) 6 37,536 ( 96 )

Corporate notes — — — 12,372 ( 1,378 ) 8 12,372 ( 1,378 )

1 unchanged sentence

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 September 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 September 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.

As of March 31, 2025 and December 31, 2024, 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, 2025 and December 31, 2024, 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 $ 3,291 and $ 3,271 as of September 30, 2024 and December 31, 2023, respectively, and was excluded from the estimate of credit losses.

Interest receivable on securities was $ 2,911 and $ 2,842 as of March 31, 2025 and December 31, 2024, respectively, and was excluded from the measurement of credit losses.

West Bancorporation, Inc.

3 unchanged sentences

Loans and Allowance for Credit Losses

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

September 30, 2024 December 31, 2023

Loans consisted of the following segments as of March 31, 2025 and December 31, 2024.

March 31, 2025 December 31, 2024

Commercial $ 531,267 $ 514,232

7 unchanged sentences

$ 3,016,471 $ 3,004,860

Real estate loans of approximately $ 1,460,000 and $ 1,420,000 were pledged as security for FHLB advances as of September 30, 2024 and December 31, 2023, respectively.

Real estate loans of approximately $ 1,490,000 and $ 1,470,000 were pledged as security for FHLB advances as of March 31, 2025 and December 31, 2024, 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 and nine months ended September 30, 2024 and 2023.

Three Months Ended September 30, 2024

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

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

Charge-offs ( 16 ) — — — — — ( 16 )

Recoveries 8 3 1 1 — — 13

Provision for credit loss expense (1)

183 66 2 25 723 1 1,000

Ending balance $ 5,281 $ 4,297 $ 646 $ 174 $ 18,866 $ 155 $ 29,419

Nine Months Ended September 30, 2024

The following tables detail the changes in the allowance for credit losses (ACL) by loan segment for the three months ended March 31, 2025 and 2024.

Three Months Ended March 31, 2025

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

9 unchanged sentences

(dollars in thousands, except per share data)

Three Months Ended September 30, 2023

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

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

Charge-offs — — — — — — —

Recoveries 8 — — 1 — — 9

Provision for credit loss expense (1)

( 221 ) 467 97 — ( 143 ) — 200

Ending balance $ 5,283 $ 3,751 $ 569 $ 111 $ 18,326 $ 107 $ 28,147

Nine Months Ended September 30, 2023

Three Months Ended March 31, 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

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

Charge-offs — — — — — — —

4 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 September 30, 2024 and December 31, 2023.

September 30, 2024

The following tables present a breakdown of the ACL by segment, disaggregated based on the evaluation method as of March 31, 2025 and December 31, 2024.

March 31, 2025

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 September 30, 2024 and December 31, 2023.

September 30, 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 March 31, 2025 and December 31, 2024.

March 31, 2025

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 $ 10,302 and $ 10,292 at September 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.

Accrued interest on loans of $ 10,004 and $ 9,835 at March 31, 2025 and December 31, 2024, respectively, was included in the "Accrued interest receivable" line of the Consolidated Balance Sheets and was excluded from the measurement of credit losses.

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

24 unchanged sentences

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

September 30, 2024 December 31, 2023 September 30, 2024 December 31, 2023 September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024 March 31, 2025 December 31, 2024 March 31, 2025 December 31, 2024

Commercial $ 181 $ — $ 181 $ — $ — $ —

7 unchanged sentences

Total $ 181 $ 133 $ 181 $ 133 $ — $ —

There was $ 91 and $ 0 of interest income recognized on loans that were on nonaccrual for the nine months ended September 30, 2024 and September 30, 2023, respectively.

There was $ 15 and $0 of interest income recognized on loans that were on nonaccrual for the three months ended March 31, 2025 and March 31, 2024, respectively.

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 September 30, 2024 and December 31, 2023.

September 30, 2024

The following tables provide an analysis of the delinquency status of the amortized cost of loans as of March 31, 2025 and December 31, 2024.

March 31, 2025

Past Due Total

26 unchanged sentences

Loan Restructurings Made to Borrowers Experiencing Financial Difficulty

As of September 30, 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 and nine months ended September 30, 2024 and 2023.

As of March 31, 2025 and December 31, 2024, 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.

54 unchanged sentences

Real estate loans include various types of loans for which the Company holds real property as collateral, and consist of loans on commercial properties and single and multifamily residences.

Real estate loans are typically structured to mature or reprice every five to ten years with payments based on amortization periods up to 30 years.

Real estate loans are typically structured to mature or reprice every five years with payments based on amortization periods up to 30 years.

The majority of construction loans are to contractors and developers for construction of commercial buildings or residential real estate.

8 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 September 30, 2024 and December 31, 2023.

Term Loans by Origination Year

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

As of March 31, 2025 2025 2024 2023 2022 2021 Prior Revolving Loans Total

Pass $ 62,260 $ 83,230 $ 77,619 $ 69,155 $ 32,564 $ 56,194 $ 142,073 $ 523,095

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 September 30, 2024 and December 31, 2023.

As of September 30, 2024

As of March 31, 2025

Primary Type of Collateral

Real Estate Equipment Other Total ACL Allocation

1-4 family residential first mortgages $ 233 $ — $ — $ 233 $ —

Commercial $ — $ 181 $ — $ 181 $ —

Total $ — $ 181 $ — $ 181 $ —

7 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 $ 1,544 and $ 2,544 as of September 30, 2024 and December 31, 2023, respectively.

The Company's allowance for credit losses for unfunded commitments was $ 1,544 as of March 31, 2025 and December 31, 2024.

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 was a negative provision for credit losses of $ 1,000 for off-balance-sheet credit exposures during the three and nine months ended September 30, 2024 and no provision for the three and nine months ended September 30, 2023.

There was no provision for credit losses for off-balance-sheet credit exposures during the three months ended March 31, 2025 and 2024.

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 $ 465,000 and $ 445,000 at September 30, 2024 and December 31, 2023, respectively.

As of September 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 total notional amount of $ 20,000 has a starting date in November 2024, replacing a maturing swap in the rolling funding program.

Also, as of September 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.

The Company had interest rate swaps designated as cash flow hedges with total notional amounts of $ 420,000 at both March 31, 2025 and December 31, 2024.

As of March 31, 2025, the Company had swaps with a total notional amount of $ 270,000 that hedge the interest payments of rolling one-month funding consisting of FHLB advances or brokered deposits.

Also, as of March 31, 2025, 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.

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 September 30, 2024 and December 31, 2023.

September 30, 2024 December 31, 2023

The table below identifies the balance sheet category and fair values of the Company's derivative instruments as of March 31, 2025 and December 31, 2024.

March 31, 2025 December 31, 2024

Cash Flow Hedges:

9 unchanged sentences

Fair value in other liabilities ( 12,318 ) ( 14,284 )

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 nine months ended September 30, 2024 and 2023.

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Pre-tax gain (loss) recognized in other comprehensive

income $ ( 8,218 ) $ 5,303 $ 1,635 $ 11,771

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, 2025 and 2024.

Three Months Ended March 31,

Pre-tax gain (loss) recognized in other comprehensive income $ ( 2,314 ) $ 7,489

Decrease in interest expense ( 1,404 ) ( 2,915 )

3 unchanged sentences

(dollars in thousands, except per share data)

The Company estimates there will be approximately $ 9,909 reclassified from accumulated other comprehensive income (loss) to decrease interest expense through the 12 months ending September 30, 2025 related to cash flow hedges.

The Company estimates there will be approximately $ 5,645 reclassified from accumulated other comprehensive income (loss) to decrease interest expense through the 12 months ending March 31, 2026 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 September 30, 2024 and December 31, 2023, the Company pledged $ 300 and $ 0 , respectively, of collateral to the counterparties in the form of cash on deposit.

As of September 30, 2024 and December 31, 2023, the Company's counterparties pledged $ 12,290 and $ 22,340 , respectively, of collateral to the Company in the form of cash on deposit.

As of March 31, 2025 and December 31, 2024, the Company pledged $ 0 and $ 30 , respectively, of collateral to the counterparties in the form of cash on deposit.

As of March 31, 2025 and December 31, 2024, the Company's counterparties pledged $ 17,730 and $ 24,160 , 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 September 30, 2024 and December 31, 2023.

September 30, 2024 December 31, 2023

Net deferred tax assets consisted of the following as of March 31, 2025 and December 31, 2024.

March 31, 2025 December 31, 2024

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 nine months ended September 30, 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 three months ended March 31, 2025 and 2024.

Unrealized Unrealized Accumulated

6 unchanged sentences

Net current period other comprehensive income (loss) 9,712 ( 2,801 ) 6,911

Balance, September 30, 2024 $ ( 80,877 ) $ 2,546 $ ( 78,331 )

Balance, March 31, 2025 $ ( 86,852 ) $ 4,406 $ ( 82,446 )

Balance, December 31, 2023 $ ( 91,233 ) $ 7,710 $ ( 83,523 )

Other comprehensive income (loss) before reclassifications ( 5,842 ) 5,640 ( 202 )

Amounts reclassified from accumulated other comprehensive income ( 20 ) ( 5,526 ) ( 5,546 )

Amounts reclassified from accumulated other comprehensive income (loss) ( 6 ) ( 2,195 ) ( 2,201 )

Net current period other comprehensive income (loss) ( 5,848 ) 3,445 ( 2,403 )

Balance, September 30, 2023 $ ( 119,141 ) $ 15,562 $ ( 103,579 )

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

Commitments and Contingencies

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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 September 30, 2024 and December 31, 2023.

September 30, 2024 December 31, 2023

The Company's commitments consisted of the following amounts as of March 31, 2025 and December 31, 2024.

March 31, 2025 December 31, 2024

Commitments to fund real estate construction loans $ 144,343 $ 180,986

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 $ 18,045 and $ 20,159 at September 30, 2024 and December 31, 2023, respectively.

The outstanding balance of mortgage loans sold under the MPF Program was $ 16,391 and $ 17,032 at March 31, 2025 and December 31, 2024, respectively.

Contractual commitments :

The Company had remaining commitments to invest in qualified affordable housing projects totaling $ 1,253 and $ 1,649 as of September 30, 2024 and December 31, 2023, respectively.

The Company had remaining commitments to invest in qualified affordable housing projects totaling $ 663 and $ 861 as of March 31, 2025 and December 31, 2024, 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 nine months ended September 30, 2024.

There were no transfers between levels of the fair value hierarchy during the three months ended March 31, 2025.

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 September 30, 2024 and December 31, 2023.

September 30, 2024

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, 2025 and December 31, 2024.

March 31, 2025

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 September 30, 2024 and December 31, 2023, there were no individually evaluated loans with a fair value adjustment.

As of both March 31, 2025 and December 31, 2024, 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 September 30, 2024 and December 31, 2023.

September 30, 2024

The following table presents the carrying amounts and approximate fair values of financial assets and liabilities as of March 31, 2025 and December 31, 2024.

March 31, 2025

Carrying Amount Approximate Fair Value Level 1 Level 2 Level 3

30 unchanged sentences

Deposits $ 3,357,596 $ 3,357,219 $ — $ 3,357,219 $ —

Federal funds purchased and other short-term borrowings 150,270 150,270 150,270 — —

Subordinated notes, net 79,893 68,522 — 68,522 —

7 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