What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2026-02-26 compared with 2025-02-20 · 176 added, 191 removed, 1393 unchanged (21% of the section changed)

87 unchanged sentences

Cash and due from banks $ 25,171 $ 28,750

Interest-bearing deposits 214,728 32,112

Interest-earning deposits with banks 324,502 214,728

Securities purchased under agreements to resell 121,413 —

Cash and cash equivalents 471,086 243,478

16 unchanged sentences

Total deposits 3,468,470 3,357,596

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

Subordinated notes, net 80,156 79,893

28 unchanged sentences

Tax-exempt 2,901 3,219 3,517

Interest-bearing deposits 7,595 169 203

Deposits with banks 9,359 7,595 169

Securities purchased under agreements to resell 2,650 — —

Total interest income 192,225 190,066 160,305

7 unchanged sentences

Net interest income 88,981 71,362 69,031

Credit loss expense (benefit) 1,000 700 ( 2,500 )

Net interest income after credit loss expense (benefit) 70,362 68,331 94,240

Credit loss expense — 1,000 700

Net interest income after credit loss expense 88,981 70,362 68,331

Noninterest income:

Service charges on deposit accounts 1,941 1,843 1,859

Debit card usage fees 1,919 1,980 1,969

Debit card interchange income 1,894 1,919 1,980

Trust services 3,436 3,449 3,068

12 unchanged sentences

Professional fees 1,211 1,041 1,026

Director fees 828 892 814

Other expenses 6,938 6,957 8,137

21 unchanged sentences

Unrealized gains (losses) on derivatives:

Unrealized holding gains arising during the period 9,759 4,291 23,595

reclassification adjustment for net (gains) losses realized in net income ( 10,456 ) ( 10,249 ) 206

Income tax (expense) benefit 194 1,459 ( 5,976 )

Other comprehensive income (loss) on derivatives ( 503 ) ( 4,499 ) 17,825

Unrealized holding gains (losses) arising during the period ( 2,550 ) 9,759 4,291

reclassification adjustment for net gains realized in net income ( 5,206 ) ( 10,456 ) ( 10,249 )

Income tax benefit 1,923 194 1,459

Other comprehensive loss on derivatives ( 5,833 ) ( 503 ) ( 4,499 )

Total other comprehensive income (loss) 20,852 ( 5,834 ) 7,948

Comprehensive income (loss) $ 18,216 $ 32,085 $ ( 34,435 )

Comprehensive income $ 53,412 $ 18,216 $ 32,085

See Notes to Consolidated Financial Statements.

9 unchanged sentences

Balance, December 31, 2022 $ — 16,640,413 $ 3,000 $ 32,021 $ 267,562 $ ( 91,471 ) $ 211,112

Cumulative effect of change in accounting principle (1)

— — — — ( 3,626 ) — ( 3,626 )

Net income — — — — 24,137 — 24,137

Other comprehensive loss, net of tax — — — — — ( 80,834 ) ( 80,834 )

Other comprehensive income, net of tax — — — — — 7,948 7,948

Cash dividends declared, $ 1.00 per common share

4 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)

— — — — ( 3,626 ) — ( 3,626 )

Net income — — — — 24,050 — 24,050

Other comprehensive income, net of tax — — — — — 7,948 7,948

Other comprehensive loss, net of tax — — — — — ( 5,834 ) ( 5,834 )

Cash dividends declared, $ 1.00 per common share

5 unchanged sentences

Net income — — — — 32,560 — 32,560

Other comprehensive loss, net of tax — — — — — ( 5,834 ) ( 5,834 )

Other comprehensive income, net of tax — — — — — 20,852 20,852

Cash dividends declared, $ 1.00 per common share

19 unchanged sentences

operating activities:

Credit loss expense (benefit) 1,000 700 ( 2,500 )

Credit loss expense — 1,000 700

Net amortization and accretion 3,075 3,200 3,293

13 unchanged sentences

Proceeds from principal paydowns, maturities and calls of securities available for sale 41,198 56,361 42,370

Purchases of securities available for sale — — ( 120,077 )

Purchases of Federal Home Loan Bank stock ( 324 ) ( 57,683 ) ( 115,480 )

3 unchanged sentences

Purchases of premises and equipment ( 3,326 ) ( 26,136 ) ( 36,387 )

Net cash used in investing activities ( 27,341 ) ( 168,683 ) ( 357,831 )

Net cash provided by (used in) investing activities 93,301 ( 27,341 ) ( 168,683 )

Cash Flows from Financing Activities:

Net increase (decrease) in deposits 383,817 93,371 ( 135,597 )

Net increase (decrease) in federal funds purchased and other short-term borrowings ( 150,270 ) ( 49,730 ) 197,120

Net increase in deposits 110,874 383,817 93,371

Net decrease in federal funds purchased and other short-term borrowings — ( 150,270 ) ( 49,730 )

Net increase (decrease) in Federal Home Loan Bank advances — ( 45,000 ) 160,000

Proceeds from issuance of subordinated debt, net of issuance costs — — 58,756

Principal payments on long-term debt ( 5,000 ) ( 5,000 ) ( 3,750 )

2 unchanged sentences

Net cash provided by financing activities 87,828 165,654 182,252

Net increase (decrease) in cash and cash equivalents 178,121 38,818 ( 166,286 )

Net increase in cash and cash equivalents 227,608 178,121 38,818

Cash and Cash Equivalents:

2 unchanged sentences

Supplemental Disclosure of Cash Flow Information:

Cash payments for:

Interest $ 116,996 $ 87,846 $ 28,868

Income taxes 1,480 5,720 10,630

Cash payments for interest $ 106,321 $ 116,996 $ 87,846

Income Taxes Paid:

US Federal 4,290 370 3,900

US State and Local

Iowa 440 630 1,230

Minnesota 820 480 590

See Notes to Consolidated Financial Statements.

17 unchanged sentences

Actual results could differ from those estimates.

Material estimates that are particularly susceptible to significant change in the near term are the allowance for credit losses.

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.

Consolidation policy :

7 unchanged sentences

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 who is the Company’s chief executive officer.

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 throughout these significant accounting policies.

8 unchanged sentences

Cash and cash equivalents and cash flows :

For statement of cash flow purposes, the Company considers cash, due from banks and interest-bearing deposits to be cash and cash equivalents.

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

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 FHLB advances with maturities less than 30 days are reported on a net basis.

Securities Available for Sale :

78 unchanged sentences

(dollars in thousands, except per share data)

The Company uses derivative financial instruments, which consist of interest rate swaps, to assist in its interest rate risk management.

The Company uses derivative financial instruments, which consist of interest rate swaps and interest rate collars, to assist in its interest rate risk management.

All derivatives are measured and reported at fair value on the Company’s consolidated balance sheet as other assets or other liabilities.

19 unchanged sentences

Certain grants of restricted stock units (RSUs) are subject to performance-based vesting and cliff vest based on those conditions.

Compensation expense is recognized over the service period to the extent restricted stock awards are expected to vest.

Compensation expense is recognized over the service period to the extent RSUs are expected to vest.

The fair value of RSUs granted under the Company’s incentive plans is equal to the fair market value of the underlying stock at the grant date, adjusted for dividends and required post vesting holding periods where applicable.

33 unchanged sentences

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 refined the scope for certain optional expedients and exceptions for contract modifications and hedge accounting to apply to derivative contracts and certain hedging relationships affected by the discounting transition.

The 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 extended the period of time preparers could utilize reference rate reform relief guidance in Topic 848, discussed above.

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

This update 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 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.

In October 2023, the FASB issued ASU No.

7 unchanged sentences

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

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 adopted this guidance effective December 31, 2024.

Refer to “Segment information” section of Note 1 for additional information regarding segments.

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 effective January 1, 2025 and will provide the required disclosures in the Company’s 2025 filings.

The Company adopted this guidance effective January 1, 2025.

Refer to Note 12 and the Consolidated Statements of Cash Flows for additional information.

In November 2024, the FASB issued ASU No.

10 unchanged sentences

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

In November 2025, the FASB issued ASU No.

2025-08, Financial Instruments-Credit Losses (Topic 326):

Purchased Loans .

The ASU expands the population of acquired financial assets accounted for using the “gross-up approach” when recording the initial allowance for credit losses through an adjustment to the initial amortized cost basis.

Acquired loans are deemed purchased seasoned loans and accounted for using the gross-up approach upon acquisition if criteria established by the new guidance are met.

This change aims to enhance comparability, consistency and better reflect the economics of acquiring financial assets.

This ASU is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods within those annual reporting periods.

Early adoption is permitted.

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

In November 2025, the FASB issued ASU No.

2025-09, Derivatives and Hedging (Topic 815):

Hedge Accounting Improvements .

The ASU enables entities to apply hedge accounting to a greater number of highly effective economic hedges in multiple areas.

The ASU expands the hedged risks permitted to be aggregated in a group of individual forecasted transactions, enabling entities to apply hedge accounting to potentially broader portfolios of forecasted transactions.

The ASU is effective for public business entities for annual reporting periods beginning after December 15, 2026, and interim periods within those annual reporting periods.

Early adoption is permitted.

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

In December 2025, the FASB issued ASU No.

2025-11, Interim Reporting (Topic 270):

Narrow-Scope Improvements .

The ASU clarifies the applicability of the interim reporting guidance, the types of interim reporting, and the form and content of interim financial statements in accordance with generally accepted accounting principles.

The amendments in this ASU are effective for public business entities for interim periods within annual periods beginning after December 15, 2027.

Early adoption is permitted.

The amendments can be applied either prospectively or retrospectively to any or all prior periods presented in the financial statements.

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

In December 2025, the FASB issued ASU No.

2025-12, Codification Improvements .

The amendments in this ASU update the FASB Accounting Standards Codification for a broad range of topics arising from technical corrections, unintended application of the Codification, clarifications, and other minor improvements.

The amendments in this ASU are effective for all entities for annual periods beginning after December 15, 2026, and interim periods within those annual periods.

Early adoption is permitted in both interim and annual periods in which financial statements have not yet been issued or made available for issuance.

An entity may elect to adopt the amendments on an issue-by-issue basis.

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

West Bancorporation, Inc.

41 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 $ 572,491 and $ 447,074 as of December 31, 2024 and 2023, respectively, were pledged to secure access to FHLB advances and Federal Reserve credit programs, for public fund deposits, and for other purposes as required or permitted by law or regulation.

Securities with a fair value of approximately $ 418,670 and $ 455,825 as of December 31, 2025 and 2024, respectively, were pledged as collateral for borrowings and 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 December 31, 2025, by contractual maturity, are shown below.

28 unchanged sentences

Mortgage-backed securities — — — 96,142 ( 17,216 ) 22 96,142 ( 17,216 )

Collateralized loan obligations 1,110 ( 1 ) 1 — — — 1,110 ( 1 )

Corporate notes — — — 13,052 ( 699 ) 8 13,052 ( 699 )

10 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 )

48 unchanged sentences

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 ( 20 ) — — — — — ( 20 )

3 unchanged sentences

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

(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.

Prior to the adoption of ASU No.

2016-13 on January 1, 2023, the Company calculated the allowance for loan losses using the incurred loss methodology.

The following table presents the activity in the allowance for loan losses by segment for the year ended December 31, 2022.

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

Charge-offs ( 55 ) ( 39 ) ( 40 ) — — — ( 134 )

Recoveries 36 2 2 5 — — 45

Provision for loan losses (1)

Provision for credit loss expense (1)

( 171 ) 391 264 44 ( 66 ) 38 500

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

(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 and/or improvement in the credit quality factors related to those portfolio segments

West Bancorporation, Inc.

33 unchanged sentences

The ACL is a valuation account estimated at each balance sheet date and deducted from the amortized cost basis of loans to present the net amount expected to be collected.

The Company estimates the ACL based on the underlying loans' amortized cost basis, which is the amount at which the loan is originated or acquired, adjusted for collection of cash and charge-offs, as well as applicable accretion or amortization of premiums, discounts, and net deferred fees or costs.

The Company estimates the ACL based on the underlying loans' amortized cost basis, which is the principal balance outstanding, adjusted by any partial charge-offs and net of deferred loan costs and fees.

The Company's estimate of the ACL reflects losses expected over the remaining contractual life of the assets.

8 unchanged sentences

Subsequent recoveries, if any, are credited to the ACL when received.

The Company measures expected credit losses of loans on a collective (pool) basis when the loans share similar risk characteristics and uses a cash flow-based model to estimate expected credit losses for each of these pools.

The Company measures expected credit losses of loans on a collective basis for pools of loans with similar risk characteristics and uses a cash flow-based model to estimate expected credit losses for each of these pools.

The Company's methodology for estimating the ACL considers available relevant information about the collectability of cash flows, including information about past events, current conditions, and reasonable and supportable forecasts.

72 unchanged sentences

These loans involve the anticipated potential for payment defaults or collateral inadequacies.

A loan on the Watch List is analyzed individually to categorize the loan to the appropriate credit risk category.

If it is determined that a loan on the Watch List no longer shares risk characteristics with the pooled loans, it will be individually evaluated for credit losses.

All loans are subject to the assessment of a credit quality indicator.

34 unchanged sentences

Credit quality indicators for all loans and the Company's risk rating process are dynamic and updated on a continuous basis.

Risk ratings are updated as circumstances that could affect the repayment of an individual loan are brought to management's attention through an established monitoring process.

Individual bankers initiate changes as appropriate for ratings 1 through 5, and changes for ratings 6 through 9 are initiated by management.

Risk ratings are updated as circumstances that could affect the repayment of an individual loan are brought to management's attention through an established internal credit monitoring process.

The likelihood of loss increases as the risk rating increases and is generally preceded by a loan appearing on the Watch List, which consists of all loans with a risk rating of 6 or worse.

Written action plans with firm target dates for resolution of identified problems are maintained and reviewed on a quarterly basis for all segments of loans included on the Watch List.

In addition to the Company’s internal credit monitoring practices and procedures, an outsourced independent credit review function is in place to further assess assigned internal risk classifications and monitor compliance with internal lending policies and procedures.

West Bancorporation, Inc.

2 unchanged sentences

(dollars in thousands, except per share data)

In all portfolio segments, the primary risks are that a borrower's income stream diminishes to the point that the borrower is not able to make scheduled principal and interest payments and any collateral securing the loan declines in value.

116 unchanged sentences

Real Estate Equipment Other Total ACL Allocation

1-4 family residential first mortgages $ 133 $ — $ — $ 133 $ —

Total $ — $ — $ — $ — $ —

4 unchanged sentences

Total $ 133 $ — $ — $ 133 $ —

West Bancorporation, Inc.

and Subsidiary

Notes to Consolidated Financial Statements

(dollars in thousands, except per share data)

The following table summarizes the average recorded investment and interest income recognized on impaired loans by segment for the year ended December 31, 2022.

December 31, 2022

Average Recorded Investment Interest Income Recognized

With no related allowance recorded:

Commercial $ — $ —

Construction, land and land development — —

1-4 family residential first mortgages 336 —

Home equity — —

Commercial — —

Consumer and other — —

With an allowance recorded:

Commercial — —

Construction, land and land development — —

1-4 family residential first mortgages — —

Home equity — —

Commercial 3,915 —

Consumer and other — —

Commercial — —

Construction, land and land development — —

1-4 family residential first mortgages 336 —

Home equity — —

Commercial 3,915 —

Consumer and other — —

Total impaired loans $ 4,251 $ —

Allowance for Credit Losses on Off-Balance Sheet Credit Exposures

1 unchanged sentence

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 using the same models for the Company’s other loan portfolio segments described above.

The Company's allowance for credit losses for unfunded commitments was $ 1,544 and $ 2,544 as of December 31, 2024 and 2023, respectively.

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

During the year ended December 31, 2024, the Company recorded a negative credit loss expense of $ 1,000 associated with off-balance sheet credit exposures compared to a credit loss expense of $ 200 for the year ended December 31, 2023.

During the year ended December 31, 2025, the Company recorded no credit loss expense associated with off-balance sheet credit exposures compared to a negative credit loss expense of $ 1,000 for the year ended December 31, 2024.

West Bancorporation, Inc.

13 unchanged sentences

Operating Leases

The Company leases real estate for four branch offices and office space for operations departments under various operating lease agreements.

The Company leases real estate for four branch offices.

The lease agreements have maturity dates ranging from September 2030 to September 2036, some of which include options to renew at the Company's discretion.

1 unchanged sentence

The weighted average remaining lives of the lease terms used in the measurement of the operating lease liability were 8.7 years and 9.6 years as of December 31, 2025 and 2024, respectively.

The discount rate used in determining the lease liability for each individual lease was the FHLB fixed advance rate which corresponded with the remaining lease term as of January 1, 2019 for leases that existed at adoption of this accounting standard and as of the lease commencement date for leases entered into subsequent to January 1, 2019.

For leases that have been extended subsequent to January 1, 2019, the discount rate used was the FHLB fixed rate advance rate which corresponded with the remaining lease term as of the lease extension date.

The discount rate used in determining the lease liability at lease commencement or extension is the FHLB fixed advance rate which corresponds with the remaining lease term.

For operating leases existing prior to January 1, 2019, the rate for the remaining lease term as of January 1, 2019, was used.

The weighted average discount rates used in the measurement of the operating lease liabilities were 4.07 percent and 4.06 percent as of December 31, 2025 and 2024, respectively.

30 unchanged sentences

In June 2022, the Company issued $ 60,000 of subordinated notes (the Notes).

The Notes initially bear interest at 5.25 percent per annum, with interest payable semi-annually for the first five years of the Notes.

Beginning in June 2027, the interest rate will be reset quarterly to a floating rate per annum that is expected to be three-month term SOFR plus 2.41 percent with payments due quarterly .

The Notes initially bear interest at 5.25 percent, with interest payable semi-annually for the first five years of the Notes.

Beginning in June 2027, the interest rate will be reset quarterly to a floating rate that is expected to be three-month term SOFR plus 2.41 percent with payments due quarterly .

The Company may redeem the Notes, in whole or in part, on or after June 15, 2027 at a price equal to 100 percent of the principal amount of the Notes being redeemed plus accrued and unpaid interest.

The Notes will mature on June 15, 2032 if they are not earlier redeemed.

Proceeds from this debt issuance were used to make a $ 58,650 capital injection into the Company’s subsidiary, West Bank to support organic growth.

The Notes were reported net of unamortized debt issuance costs of $ 363 and $ 612 as of December 31, 2025 and 2024, respectively.

4 unchanged sentences

Federal Home Loan Bank Advances and Other Borrowings

The Company had fixed-rate FHLB advances totaling $ 270,000 and $ 315,000 as of December 31, 2024 and 2023, respectively.

The Company had fixed-rate FHLB advances totaling $ 270,000 as of both December 31, 2025 and 2024.

As of December 31, 2025, all advances had maturities of one month and are part of a rolling funding program associated with long-term interest rate swaps related to the interest cash flows of the rolling advances.

The weighted average contractual rates on FHLB advances were 3.95 percent and 4.62 percent as of December 31, 2025 and December 31, 2024, respectively.

The weighted average effective rate for these advances, which includes adjustments for the interest rate swaps, when applicable, were 3.39 percent and 3.44 percent as of December 31, 2024 and 2023, respectively.

The weighted average effective rate for these advances, which includes adjustments for the interest rate swaps, when applicable, was 3.39 percent as of both December 31, 2025 and 2024.

See Note 11 for additional information on interest rate swaps hedging FHLB advances.

The Company had overnight and other short-term borrowings, including FHLB advances totaling $ 0 and $ 150,270 as of December 31, 2024 and 2023, respectively, which are included in federal funds purchased and other short-term borrowings.

The FHLB advances are collateralized by FHLB stock and real estate loans, as required by the FHLB’s collateral policy.

3 unchanged sentences

As of December 31, 2025, there were no amounts outstanding under these arrangements.

At December 31, 2024, West Bank also had approximately $ 116,840 of securities pledged for available borrowings at the Federal Reserve Bank discount window.

At December 31, 2025, West Bank also had $ 38,341 of securities pledged for available borrowings at the Federal Reserve Bank discount window.

There were no balances outstanding at the Federal Reserve Bank discount window at December 31, 2025.

1 unchanged sentence

In December 2021, the Company entered into a credit agreement with a commercial bank and borrowed $ 40,000 .

The borrowing was used to make a capital injection into the Company’s subsidiary, West Bank.

Interest under the term note is payable quarterly over five years.

5 unchanged sentences

In the event of default, the unaffiliated commercial bank may accelerate payment of the loan.

The outstanding balance was $ 31,250 and $ 36,250 as of December 31, 2024 and 2023, respectively.

The note is secured by 100 percent of West Bank’s stock.

West Bank’s special purpose subsidiary has a credit agreement for $ 11,486 .

Interest is payable monthly over the term of the agreement with an interest rate of one percent.

Monthly principal payments begin in January 2026 and the agreement matures in December 2048.

The outstanding balance was $ 11,486 as of December 31, 2024 and 2023.

The outstanding principal balance of the loan was $ 26,250 and $ 31,250 as of December 31, 2025 and 2024, respectively.

The loan is secured by 100 percent of West Bank’s stock.

Future required principal payments for long-term debt as of December 31, 2025 are shown in the table below.

Thereafter 9,674

West Bancorporation, Inc.

2 unchanged sentences

(dollars in thousands, except per share data)

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.

Interest Rate Swaps Designated as Cash Flow Hedges :

The Company had interest rate swaps designated as cash flow hedges with total notional amounts of $ 420,000 and $ 445,000 at December 31, 2024 and 2023, respectively.

As of December 31, 2024, the Company had swaps with a total notional amount of $ 270,000 that hedge the interest payments of rolling fixed-rate one-month funding consisting of FHLB advances or brokered deposits.

Also, as of December 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 $ 110,000 that hedge the interest payments of certain deposit accounts.

At the inception of each hedge transaction, the Company represented that the underlying principal balance would remain outstanding throughout the hedge transaction, making it probable that sufficient interest payments would exist through the maturity date of the swaps.

The cash flow hedges were determined to be fully effective during the remaining terms of the swaps.

Therefore, the aggregate fair value of the swaps is recorded in other assets or other liabilities with changes in market value recorded in OCI, net of deferred taxes.

The Company has entered into various interest rate swap and interest rate collar agreements 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.

Interest Rate Derivatives Designated as Cash Flow Hedges :

The Company had interest rate derivatives designated as cash flow hedges with total notional amounts of $ 380,000 and $ 420,000 at December 31, 2025 and 2024, respectively.

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

Also, as of December 31, 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 $ 70,000 that hedge the interest payments of certain deposit accounts.

The Company had interest rate collars designated as cash flow hedges with total notional amounts of $ 100,000 and $ 0 as of December 31, 2025 and 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 rises above the cap rate.

The cash flow hedges were determined to be fully effective during the remaining terms of the derivatives.

Therefore, the aggregate fair value of the derivatives is recorded in other assets or other liabilities with changes in market value recorded in OCI, net of deferred taxes.

See Note 18 for additional fair value information and disclosures.

9 unchanged sentences

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

West Bancorporation, Inc.

and Subsidiary

Notes to Consolidated Financial Statements

(dollars in thousands, except per share data)

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

1 unchanged sentence

Cash Flow Hedges:

Interest Rate Swaps :

Gross notional amount

$ 380,000 $ 420,000

Fair value in other assets

Fair value in other liabilities

( 1,040 ) ( 270 )

Weighted-average floating rate received

3.98 % 4.84 %

Weighted-average fixed rate paid

3.45 % 3.30 %

Weighted-average maturity in years

Interest Rate Collars :

Gross notional amount

$ 100,000 $ —

Fair value in other assets

Fair value in other liabilities

Weighted-average maturity in years

Non-Hedging Derivatives:

Gross notional amount

$ 279,980 $ 287,235

Fair value in other assets

Fair value in other liabilities

West Bancorporation, Inc.

and Subsidiary

Notes to Consolidated Financial Statements

(dollars in thousands, except per share data)

( 9,796 ) ( 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 years ended December 31, 2025, 2024 and 2023.

2025 2024 2023

Pre-tax gain recognized in other comprehensive income $ 9,759 $ 4,291 $ 23,595

Increase (decrease) in interest expense ( 10,456 ) ( 10,249 ) 206

Pre-tax gain (loss) recognized in other comprehensive income $ ( 2,550 ) $ 9,759 $ 4,291

Decrease in interest expense ( 5,206 ) ( 10,456 ) ( 10,249 )

The Company estimates there will be approximately $ 2,028 reclassified from accumulated other comprehensive income to reduce interest expense through December 31, 2026 related to cash flow hedges.

The Company will continue to assess the effectiveness of hedges on a quarterly basis.

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 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.

23 unchanged sentences

Income Amount Percent

Computed expected tax expense $ 5,763 21.0 % $ 6,255 21.0 % $ 12,473 21.0 %

Income taxes at statutory federal tax rate $ 8,698 21.0 % $ 5,763 21.0 % $ 6,255 21.0 %

State income tax expense, net of

federal income tax benefit 1,588 3.8 1,267 4.6 1,395 4.7

Low income housing credits ( 660 ) ( 1.6 ) ( 740 ) ( 2.7 ) ( 730 ) ( 2.4 )

New markets tax credit — — ( 768 ) ( 2.8 ) ( 768 ) ( 2.6 )

Energy-related investment tax credit ( 614 ) ( 1.5 ) ( 1,842 ) ( 6.7 ) — —

Nontaxable or Nondeductible Items

Tax-exempt interest income ( 1,175 ) ( 2.8 ) ( 1,404 ) ( 5.1 ) ( 1,445 ) ( 4.9 )

4 unchanged sentences

Stock compensation ( 72 ) ( 0.2 ) ( 2 ) — 5 —

Enactment of state tax reform — — — — 649 1.1

Federal income tax credits ( 3,350 ) ( 12.2 ) ( 1,498 ) ( 5.0 ) ( 1,468 ) ( 2.5 )

Other, net 373 0.9 94 0.3 244 0.8

2 unchanged sentences

The Company accounted for the investment tax credit using the flow-through method, recognizing the full benefit in 2024.

In 2022, the Company recorded a one-time increase in state income tax expense related to the June 2022 enactment of changes in the Iowa bank franchise tax rates.

This legislation reduces the Iowa bank franchise tax rate applied to apportioned income for 2023 and future years.

This future reduction in the state tax rate required the Company to reduce net deferred tax assets by $ 671 and in turn caused a one-time increase in 2022 tax expense.

The effective tax rate for 2022 was 21.9 percent.

Excluding this one-time state tax expense, the effective tax rate for 2022 would have been 20.8 percent.

In 2025, the Company recorded an additional tax benefit of $ 614 due to a change in estimate of the 2024 energy-related investment tax credit.

West Bancorporation, Inc.

2 unchanged sentences

(dollars in thousands, except per share data)

On July 4, 2025, the One Big Beautiful Bill Act (the Act) was enacted into law.

The Act introduces significant changes to U.S.

federal income tax provisions, including:

• Permanent reinstatement of 100 percent bonus depreciation for qualifying property placed in service after January 19, 2025.

• Immediate expensing of domestic research and experimental expenditures, effective for tax years beginning after December 31, 2024.

• IRC Section 139L provided for a 25 percent exclusion of gross interest income on eligible loans.

For the tax year December 31, 2025, no eligible loans were identified.

• Under ASC 740, the effects of new tax legislation are recognized in the period that includes the enactment date.

Accordingly, the Company included the recognized impact of these legislative changes as of the enactment date.

These provisions did not have a material impact on the consolidated financial statements.

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

20 unchanged sentences

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

Iowa net operating loss carryforwards of $ 502 expired in 2024 and the remainder will expire thereafter.

No Iowa net operating loss carryforwards expired in 2025 .

Iowa net operating losses incurred on or before 2022 have a 20-year carryforward period.

Iowa net operating losses incurred in or after 2023 do not expire.

West Bancorporation, Inc.

and Subsidiary

Notes to Consolidated Financial Statements

(dollars in thousands, except per share data)

Stock Compensation Plans

10 unchanged sentences

As of December 31, 2025, 515,311 shares of the Company’s common stock remained available for future awards under the 2021 Plan.

West Bancorporation, Inc.

and Subsidiary

Notes to Consolidated Financial Statements

(dollars in thousands, except per share data)

Under the 2021 Plan, the Company may grant RSU awards, as determined by the Compensation Committee, that vest upon the completion of future service requirements or specified performance criteria.

22 unchanged sentences

The tax benefit related to vesting of RSUs totaled $ 85 and $ 2 for the years ended December 31, 2025 and 2024, respectively.

The tax expense related to vesting of RSUs totaled $ 5 for the year ended December 31, 2023.

The tax expense related to the vesting of RSUs totaled $ 5 for the year ended December 31, 2023.

As of December 31, 2025, there was $ 3,473 of unrecognized compensation cost related to nonvested RSUs, and the weighted average period over which these remaining costs are expected to be recognized was approximately 1.4 years.

West Bancorporation, Inc.

and Subsidiary

Notes to Consolidated Financial Statements

(dollars in thousands, except per share data)

401(k) Retirement Plan and Employee Stock Ownership Plan

1 unchanged sentence

Matching and discretionary contributions are determined annually by the Board.

The Company matched 100 percent of the first six percent of employee deferrals and made an annual discretionary contribution of two percent of eligible employee compensation for the years ended December 31, 2024 and 2023, and four percent of eligible employee compensation for the year ended December 31, 2022.

The Company matched 100 percent of the first six percent of employee deferrals and made an annual discretionary contribution of four percent of eligible employee compensation for the year ended December 31, 2025, and two percent of eligible employee compensation for the years ended December 31, 2024 and 2023.

Total matching and discretionary contribution expense for the years ended December 31, 2025, 2024 and 2023, totaled $ 1,652 , $ 1,273 and $ 1,207 , respectively.

2 unchanged sentences

Dividends on shares held in the plan may be reinvested in Company common stock or paid in cash to the participants, at the election of the participants.

West Bancorporation, Inc.

and Subsidiary

Notes to Consolidated Financial Statements

(dollars in thousands, except per share data)

Accumulated Other Comprehensive Income (Loss)

5 unchanged sentences

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

Other comprehensive income (loss) before reclassifications ( 98,637 ) 17,739 ( 80,898 )

Other comprehensive income before reclassifications 12,158 3,221 15,379

Amounts reclassified from accumulated other

2 unchanged sentences

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

Other comprehensive income before reclassifications 12,158 3,221 15,379

Other comprehensive income (loss) before reclassifications ( 6,167 ) 7,373 1,206

Amounts reclassified from accumulated other

comprehensive income 836 ( 7,876 ) ( 7,040 )

Net current period other comprehensive income (loss) 12,447 ( 4,499 ) 7,948

Net current period other comprehensive loss ( 5,331 ) ( 503 ) ( 5,834 )

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

2 unchanged sentences

comprehensive income 2,908 ( 3,911 ) ( 1,003 )

Net current period other comprehensive loss ( 5,331 ) ( 503 ) ( 5,834 )

Net current period other comprehensive income (loss) 26,685 ( 5,833 ) 20,852

Balance, December 31, 2025 $ ( 69,879 ) $ 1,374 $ ( 68,505 )

117 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 nonbinding broker-dealer quotations.

14 unchanged sentences

Corporate notes 13,051 — 13,051 —

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

Derivative instruments 12,785 — 12,785 —

Financial liabilities:

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

Derivative instruments $ 10,916 $ — $ 10,916 $ —

Description Total Level 1 Level 2 Level 3

6 unchanged sentences

Corporate notes 12,372 — 12,372 —

Derivative instruments, interest rate swaps 25,427 — 25,427 —

Derivative instruments 24,181 — 24,181 —

Financial liabilities:

Derivative instruments, interest rate swaps $ 15,102 $ — $ 15,102 $ —

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

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

17 unchanged sentences

Cash and due from banks $ 25,171 $ 25,171 $ 25,171 $ — $ —

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

Interest-bearing deposits with banks 324,502 324,502 324,502 — —

Securities purchased under agreements to resell 121,413 121,413 — 121,413 —

Securities available for sale 468,447 468,447 — 468,447 —

2 unchanged sentences

Accrued interest receivable 11,982 11,982 11,982 —

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

Derivative instruments 12,785 12,785 — 12,785 —

Financial liabilities:

Deposits $ 3,468,470 $ 3,468,215 $ — $ 3,468,215 $ —

Federal funds purchased and other short-term borrowings — — — — —

Subordinated notes, net 80,156 74,660 — 74,660 —

2 unchanged sentences

Accrued interest payable 5,319 5,319 5,319 —

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

Derivative instruments 10,916 10,916 — 10,916 —

December 31, 2024

3 unchanged sentences

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

Interest-bearing deposits 32,112 32,112 32,112 — —

Interest-bearing 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 25,427 25,427 — 25,427 —

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

Financial liabilities:

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 —

2 unchanged sentences

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

Interest rate swaps 15,102 15,102 — 15,102 —

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

West Bancorporation, Inc.

60 unchanged sentences

Net cash provided by operating activities 23,940 20,844 19,738

Cash Flows from Investing Activities:

Capital contribution to West Bank — — ( 58,650 )

Net cash used in investing activities — — ( 58,650 )

Cash Flows from Financing Activities:

Proceeds from long-term debt — — 58,756

Principal payments on long-term debt ( 5,000 ) ( 5,000 ) ( 3,750 )

Common stock cash dividends ( 16,914 ) ( 16,806 ) ( 16,704 )

Net cash provided by (used in) financing activities ( 21,806 ) ( 20,454 ) 42,137

Net cash used in financing activities ( 21,914 ) ( 21,806 ) ( 20,454 )

Net increase (decrease) in cash 2,026 ( 962 ) ( 716 )

6 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-K

Item 8. Financial Statements and Supplementary Data