What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-07-24 compared with 2025-04-24 · 188 added, 120 removed, 783 unchanged (28% of the section changed)

3 unchanged sentences

Consolidated Balance Sheet

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

(in thousands, except share and per share data) June 30, 2025 December 31, 2024

Cash and due from banks $ 35,796 $ 28,750

Interest-bearing deposits 171,357 214,728

Interest-earning deposits with banks 212,450 214,728

Securities purchased under agreements to resell 96,955 —

Cash and cash equivalents 345,201 243,478

25 unchanged sentences

authorized 50,000,000 shares;

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

no shares issued and outstanding at June 30, 2025 and December 31, 2024

Common stock, no par value;

authorized 50,000,000 shares;

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

and 16,832,632 shares issued and outstanding at June 30, 2025

and December 31, 2024, 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) 2025 2024 2025 2024

3 unchanged sentences

Tax-exempt 742 808 1,485 1,618

Interest-bearing deposits 1,617 148

Deposits with banks 2,847 1,666 4,464 1,814

Securities purchased under agreements to resell 22 — 22 —

Total interest income 47,962 47,568 94,098 92,138

35 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) 2025 2024 2025 2024

5 unchanged sentences

Other comprehensive income (loss) on securities 447 ( 1,092 ) 10,159 ( 6,940 )

Unrealized gains on derivatives:

Unrealized gains (losses) on derivatives:

Unrealized holding gains (losses) arising during the period ( 1,021 ) 2,364 ( 3,335 ) 9,853

9 unchanged sentences

(in thousands, except share and per share data)

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Additional Other

1 unchanged sentence

Stock Shares Amount Capital Earnings Income (Loss) Total

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

— — — — 7,979 — 7,979

Other comprehensive loss, net of tax — — — — — ( 1,387 ) ( 1,387 )

Cash dividends declared, $ 0.25 per common share

— — — — ( 4,236 ) — ( 4,236 )

Stock-based compensation costs

— — — 701 — — 701

Issuance of common stock upon vesting of restricted stock units, net of shares withheld for payroll taxes — 17,505 — — — — —

Balance, June 30, 2025 $ — 16,940,785 $ 3,000 $ 35,773 $ 285,990 $ ( 83,833 ) $ 240,930

Three Months Ended June 30, 2024

Additional Other

Preferred Common Stock Paid-In Retained Comprehensive

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

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, 2025

Additional Other

Preferred Common Stock Paid-In Retained Comprehensive

Stock Shares Amount Capital Earnings Income (Loss) Total

Balance, December 31, 2024 $ — 16,832,632 $ 3,000 $ 35,619 $ 278,613 $ ( 89,357 ) $ 227,875

7 unchanged sentences

Issuance of common stock upon vesting of restricted stock units, net of shares withheld for payroll taxes — 108,153 — ( 1,132 ) — — ( 1,132 )

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

Three Months Ended March 31, 2024

Balance, June 30, 2025 $ — 16,940,785 $ 3,000 $ 35,773 $ 285,990 $ ( 83,833 ) $ 240,930

Six Months Ended June 30, 2024

Additional Other

10 unchanged sentences

— 107,538 — ( 1,087 ) — — ( 1,087 )

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

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

See Notes to Consolidated Financial Statements.

2 unchanged sentences

Consolidated Statements of Cash Flows

Three Months Ended March 31,

Six Months Ended June 30,

(in thousands) 2025 2024

8 unchanged sentences

Change in assets and liabilities:

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

Decrease in other assets 1,195 262

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

(Increase) decrease in accrued interest receivable 196 ( 558 )

(Increase) decrease in other assets 2,435 ( 792 )

Increase (decrease) in accrued expenses and other liabilities ( 652 ) 610

Net cash provided by operating activities 23,276 16,123

3 unchanged sentences

Proceeds from redemption of Federal Home Loan Bank stock 52 55,525

Net increase in loans ( 11,517 ) ( 52,567 )

Net (increase) decrease in loans 38,610 ( 71,159 )

Purchases of premises and equipment ( 2,256 ) ( 17,593 )

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

Net cash provided by (used in) investing activities 56,126 ( 62,058 )

Cash Flows from Financing Activities:

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

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

Net increase in deposits 34,397 207,143

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

Principal payments on long-term debt ( 2,500 ) ( 2,500 )

1 unchanged sentence

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

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

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

Net cash provided by financing activities 22,321 130,397

Net increase in cash and cash equivalents 101,723 84,462

Cash and Cash Equivalents:

15 unchanged sentences

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.

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, 2025 and December 31, 2024, net income, comprehensive income (loss) and changes in stockholders' equity for the three and six months ended June 30, 2025 and 2024, and cash flows for the six months ended June 30, 2025 and 2024.

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

5 unchanged sentences

Material estimates that are particularly susceptible to significant change in the near term are the fair value of financial instruments and the allowance for credit losses .

Cash and cash equivalents and cash flows:

For statement of cash flow purposes, the Company considers cash, due from banks, interest-earning deposits with banks and securities purchased under agreements to resell to be cash and cash equivalents.

Securities purchased under agreements to resell are short-term investments with maturities of 30 days.

Cash inflows and outflows from loans, deposits, federal funds purchased and short-term borrowings, and short-term FHLB advances are reported on a net basis.

The accompanying unaudited consolidated financial statements include the accounts of the Company, the Company's wholly-owned subsidiary West Bank and West Bank's special purpose subsidiaries.

11 unchanged sentences

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

West Bancorporation, Inc.

and Subsidiary

Notes to Consolidated Financial Statements

(dollars in thousands, except per share data)

Current accounting developments :

2 unchanged sentences

Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative .

The ASU incorporates certain SEC disclosure requirements into the FASB A ccounting Standards Codification TM.

The ASU incorporates certain SEC disclosure requirements into the FASB Accounting Standards Codification TM.

The amendments in the ASU are expected to clarify or improve disclosure presentation requirements of a variety of Codification Topics, allow users to more easily compare entities subject to the SEC’s existing disclosures with those entities that were not previously subject to the requirements, and align the requirements in the Codification with the SEC’s regulations.

2 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, 2025.

West Bancorporation, Inc.

and Subsidiary

Notes to Consolidated Financial Statements

(dollars in thousands, except per share data)

These amendments have not had an impact to the Company as of June 30, 2025.

In December 2023, the FASB issued ASU No.

22 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, 2025 and 2024 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, 2025 and 2024 are presented in the following table.

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

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

March 31, 2025

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, 2025 and December 31, 2024.

June 30, 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 $ 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.

Securities with a total amortized cost of approximately $ 556,286 and $ 572,491 as of June 30, 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 June 30, 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.

March 31, 2025

June 30, 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 months ended March 31, 2025 and 2024.

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, 2025 and December 31, 2024.

March 31, 2025

There were no sales of securities available for sale during the three and six months ended June 30, 2025 and 2024.

June 30, 2025

Less than 12 months 12 months or longer Total

22 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, 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.

As of June 30, 2025 and December 31, 2024, the Company did not have the intent to sell, nor was it more likely than not that it would be required to sell any of the securities in an unrealized loss position prior to recovery.

As of June 30, 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 $ 2,911 and $ 2,842 as of March 31, 2025 and December 31, 2024, respectively, and was excluded from the measurement of credit losses.

Interest receivable on securities was $ 2,761 and $ 2,842 as of June 30, 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 March 31, 2025 and December 31, 2024.

March 31, 2025 December 31, 2024

Loans consisted of the following segments as of June 30, 2025 and December 31, 2024.

June 30, 2025 December 31, 2024

Commercial $ 500,854 $ 514,232

7 unchanged sentences

$ 2,966,357 $ 3,004,860

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.

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

Three Months Ended March 31, 2025

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, 2025 and 2024.

Three Months Ended June 30, 2025

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

5 unchanged sentences

Ending balance $ 5,644 $ 4,098 $ 623 $ 241 $ 19,653 $ 280 $ 30,539

Six Months Ended June 30, 2025

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

Beginning balance $ 5,489 $ 4,354 $ 650 $ 200 $ 19,544 $ 195 $ 30,432

Charge-offs — — — — — — —

Recoveries 14 7 73 13 — — 107

Provision for credit loss expense (1)

141 ( 263 ) ( 100 ) 28 109 85 —

Ending balance $ 5,644 $ 4,098 $ 623 $ 241 $ 19,653 $ 280 $ 30,539

West Bancorporation, Inc.

2 unchanged sentences

(dollars in thousands, except per share data)

Three Months Ended March 31, 2024

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

(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, 2025 and December 31, 2024.

March 31, 2025

The following tables present a breakdown of the ACL by segment, disaggregated based on the evaluation method as of June 30, 2025 and December 31, 2024.

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

March 31, 2025

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, 2025 and December 31, 2024.

June 30, 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 $ 10,004 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.

Accrued interest on loans of $ 9,658 and $ 9,835 at June 30, 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

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

June 30, 2025 December 31, 2024 June 30, 2025 December 31, 2024 June 30, 2025 December 31, 2024

Commercial $ — $ — $ — $ — $ — $ —

7 unchanged sentences

Total $ — $ 133 $ — $ 133 $ — $ —

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.

There was $ 18 and $ 0 of interest income recognized on loans that were on nonaccrual for the six months ended June 30, 2025 and June 30, 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 March 31, 2025 and December 31, 2024.

March 31, 2025

The following tables provide an analysis of the delinquency status of the amortized cost of loans as of June 30, 2025 and December 31, 2024.

June 30, 2025

Past Due Total

26 unchanged sentences

Loan Restructurings Made to Borrowers Experiencing Financial Difficulty

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

As of June 30, 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.

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, 2025 and December 31, 2024.

Term Loans by Origination Year

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

As of June 30, 2025 2025 2024 2023 2022 2021 Prior Revolving Loans Total

Pass $ 64,450 $ 75,245 $ 65,562 $ 68,610 $ 30,395 $ 50,424 $ 142,014 $ 496,700

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, 2025 and December 31, 2024.

As of March 31, 2025

The following tables present 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 June 30, 2025 and December 31, 2024.

As of June 30, 2025

Primary Type of Collateral

Real Estate Equipment Other Total ACL Allocation

Commercial $ — $ 181 $ — $ 181 $ —

Total $ — $ — $ — $ — $ —

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

The Company's allowance for credit losses for unfunded commitments was $ 1,544 as of June 30, 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 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.

The Company uses interest rate swaps to manage its interest rate risk exposure on certain loans, borrowings and deposits due to interest rate movements.

The notional amounts of the interest rate swaps do not represent amounts exchanged by the counterparties, but rather, the notional amount is used to determine, along with other terms of the derivative, the amounts to be exchanged between the counterparties.

There was no provision for credit losses for off-balance-sheet credit exposures during the three and six months ended June 30, 2025 and 2024.

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

The Company uses interest rate derivatives to manage its interest rate risk exposure on certain loans, borrowings and deposits due to interest rate movements.

The notional amounts of the interest rate derivatives do not represent amounts exchanged by the counterparties, but rather, the notional amount is used to determine, along with other terms of the derivative, the amounts to be exchanged between the counterparties.

West Bancorporation, Inc.

2 unchanged sentences

(dollars in thousands, except per share data)

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 $ 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.

Interest Rate Derivatives Designated as a Cash Flow Hedge:

The Company had interest rate derivatives designated as cash flow hedges with total notional amounts of $ 495,000 and $ 420,000 at June 30, 2025 and December 31, 2024, respectively.

As of June 30, 2025, the Company had interest rate 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 June 30, 2025, the Company had interest rate 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 customer deposit accounts.

The Company had interest rate collars designated as cash flow hedges with total notional amounts of $ 75,000 and $ 0 as of June 30, 2025 and December 31, 2024, respectively.

The Company enters into interest rate collars, to mitigate interest rate risk on certain customer deposits.

The structure of the interest rate collars is such that the Company pays the counterparty an incremental amount if the index rate falls below the floor rate.

Conversely, the Company receives an incremental amount if the index rate rises above the cap rate.

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, 2025 and December 31, 2024.

March 31, 2025 December 31, 2024

The table below identifies the balance sheet category and fair values of the Company's derivative instruments as of June 30, 2025 and December 31, 2024.

June 30, 2025 December 31, 2024

Cash Flow Hedges:

Interest Rate Swaps :

Gross notional amount $ 420,000 $ 420,000

4 unchanged sentences

Weighted-average maturity in years 1.9 2.4

Interest Rate Collars :

Gross notional amount

Fair value in other assets — —

Fair value in other liabilities

Weighted-average maturity in years 3.1 0.0

Non-Hedging Derivatives:

2 unchanged sentences

Fair value in other liabilities ( 10,810 ) ( 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 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 )

West Bancorporation, Inc.

2 unchanged sentences

(dollars in thousands, except per share data)

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.

Derivative contracts with swap counterparties are executed with a Credit Support Annex, which is a bilateral ratings-sensitive agreement that requires collateral postings at established credit threshold levels.

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, 2025 and 2024.

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

2025 2024 2025 2024

Pre-tax gain (loss) recognized in other comprehensive income $ ( 1,021 ) $ 2,364 $ ( 3,335 ) $ 9,853

Decrease in interest expense ( 1,412 ) ( 2,898 ) ( 2,816 ) ( 5,813 )

The Company estimates there will be approximately $ 5,583 reclassified from accumulated other comprehensive income (loss) to decrease interest expense through the 12 months ending June 30, 2026 related to cash flow hedges.

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

Derivative contracts are executed with a Credit Support Annex, which is a bilateral ratings-sensitive agreement that requires collateral postings at established credit threshold levels.

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

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.

As of June 30, 2025 and December 31, 2024, the Company pledged $ 270 and $ 30 , respectively, of collateral to the counterparties in the form of cash on deposit.

As of June 30, 2025 and December 31, 2024, the Company's counterparties pledged $ 13,760 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 March 31, 2025 and December 31, 2024.

March 31, 2025 December 31, 2024

Net deferred tax assets consisted of the following as of June 30, 2025 and December 31, 2024.

June 30, 2025 December 31, 2024

Deferred tax assets:

17 unchanged sentences

Net deferred tax assets $ 30,375 $ 33,202

The Company has recorded a valuation allowance against the tax effect of the state net operating loss carryforwards, as management believes it is more likely than not that these carryforwards will expire without being utilized.

The state net operating loss carryforwards expire in 2025 and thereafter.

West Bancorporation, Inc.

2 unchanged sentences

(dollars in thousands, except per share data)

The state net operating loss carryforwards expire in 2025 and thereafter.

On July 4, 2025, the President signed H.R.

1, the "One Big Beautiful Bill Act," into law.

The legislation includes several changes to federal tax law that generally allow for more favorable deductibility of certain business expenses beginning in 2025, including the restoration of immediate expensing of domestic R&D expenditures, reinstatement of 100 percent bonus depreciation, and more favorable rules for determining the limitation on business interest expense.

The Company is currently evaluating the impact on future periods.

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, 2025 and 2024.

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, 2025 and 2024.

Unrealized Unrealized Accumulated

3 unchanged sentences

Balance, December 31, 2024 $ ( 96,564 ) $ 7,207 $ ( 89,357 )

Other comprehensive income before reclassifications 9,718 ( 1,744 ) 7,974

Amounts reclassified from accumulated other comprehensive loss ( 6 ) ( 1,057 ) ( 1,063 )

Other comprehensive income (loss) before reclassifications 10,172 ( 2,514 ) 7,658

Amounts reclassified from accumulated other comprehensive income (loss) ( 13 ) ( 2,121 ) ( 2,134 )

Net current period other comprehensive income (loss) 10,159 ( 4,635 ) 5,524

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

Balance, June 30, 2025 $ ( 86,405 ) $ 2,572 $ ( 83,833 )

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

2 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 )

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, 2025 and December 31, 2024.

March 31, 2025 December 31, 2024

The Company's commitments consisted of the following amounts as of June 30, 2025 and December 31, 2024.

June 30, 2025 December 31, 2024

Commitments to fund real estate construction loans $ 158,552 $ 180,986

2 unchanged sentences

$ 704,535 $ 790,230

West Bank previously executed Mortgage Partnership Finance (MPF) Master Commitments (Commitments) with the FHLB of Des Moines to deliver residential mortgage loans and to guarantee the payment of any realized losses that exceed the FHLB's first loss account for mortgages delivered under the Commitments.

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 $ 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 $ 663 and $ 861 as of March 31, 2025 and December 31, 2024, respectively.

West Bancorporation, Inc.

2 unchanged sentences

(dollars in thousands, except per share data)

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 $ 15,751 and $ 17,032 at June 30, 2025 and December 31, 2024, respectively.

Contractual commitments :

The Company had remaining commitments to invest in qualified affordable housing projects totaling $ 1,488 and $ 861 as of June 30, 2025 and December 31, 2024, respectively.

Concentrations of credit risk :

14 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, 2025.

There were no transfers between levels of the fair value hierarchy during the six months ended June 30, 2025.

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

14 unchanged sentences

Derivative instruments:

The Company's derivative instruments consist of interest rate swaps accounted for as cash flow hedges, as well as interest rate swaps which are accounted for as non-hedging derivatives.

The Company's derivative instruments consist of interest rate swaps and interest rate collars accounted for as cash flow hedges, as well as interest rate swaps, which are accounted for as non-hedging derivatives.

The Company's derivative positions are classified within Level 2 of the fair value hierarchy and are valued using models generally accepted in the financial services industry and that use actively quoted or observable market input values from external market data providers and/or non-binding broker-dealer quotations.

1 unchanged sentence

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, 2025 and December 31, 2024.

March 31, 2025

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, 2025 and December 31, 2024.

June 30, 2025

Total Level 1 Level 2 Level 3

6 unchanged sentences

Corporate notes 12,524 — 12,524 —

Derivative instruments, interest rate swaps 18,749 — 18,749 —

Derivative instruments 15,481 — 15,481 —

Financial liabilities:

Derivative instruments, interest rate swaps $ 12,839 $ — $ 12,839 $ —

Derivative instruments $ 12,004 $ — $ 12,004 $ —

December 31, 2024

7 unchanged sentences

Corporate notes 12,372 — 12,372 —

Derivative instruments, interest rate swaps 24,181 — 24,181 —

Derivative instruments 24,181 — 24,181 —

Financial liabilities:

Derivative instruments, interest rate swaps $ 14,554 $ — $ 14,554 $ —

Derivative instruments $ 14,554 $ — $ 14,554 $ —

Certain assets are measured at fair value on a nonrecurring basis.

That is, they are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment).

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 June 30, 2025 and December 31, 2024, there were no individually evaluated loans with a fair value adjustment.

West Bancorporation, Inc.

2 unchanged sentences

(dollars in thousands, except per share data)

Certain assets are measured at fair value on a nonrecurring basis.

That is, they are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment).

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 March 31, 2025 and December 31, 2024.

March 31, 2025

The following table presents the carrying amounts and approximate fair values of financial assets and liabilities as of June 30, 2025 and December 31, 2024.

June 30, 2025

Carrying Amount Approximate Fair Value Level 1 Level 2 Level 3

1 unchanged sentence

Cash and due from banks $ 35,796 $ 35,796 $ 35,796 $ — $ —

Interest-bearing deposits 171,357 171,357 171,357 — —

Interest-earning deposits with banks 212,450 212,450 212,450 — —

Securities purchased under agreements to resell 96,955 96,955 — 96,955

Securities available for sale 536,709 536,709 — 536,709 —

2 unchanged sentences

Accrued interest receivable 12,629 12,629 12,629 — —

Interest rate swaps 18,749 18,749 — 18,749 —

Derivative instruments 15,481 15,481 — 15,481 —

Financial liabilities:

4 unchanged sentences

Accrued interest payable 7,696 7,696 7,696 — —

Interest rate swaps 12,839 12,839 — 12,839 —

Derivative instruments 12,004 12,004 — 12,004 —

West Bancorporation, Inc.

6 unchanged sentences

Cash and due from banks $ 28,750 $ 28,750 $ 28,750 $ — $ —

Interest-bearing deposits 214,728 214,728 214,728 — —

Interest-earning deposits with banks 214,728 214,728 214,728 — —

Securities available for sale 544,565 544,565 — 544,565 —

2 unchanged sentences

Accrued interest receivable 12,825 12,825 12,825 — —

Interest rate swaps 24,181 24,181 — 24,181 —

Derivative instruments 24,181 24,181 — 24,181 —

Financial liabilities:

4 unchanged sentences

Accrued interest payable 8,396 8,396 8,396 — —

Interest rate swaps 14,554 14,554 — 14,554 —

Derivative instruments 14,554 14,554 — 14,554 —

West Bancorporation, Inc.

2 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