West Bancorporation Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>West Bancorporation Inc. filed its Q1 2024 10-Q report on April 25, 2024.</b>

AI Summary

WEST BANCORPORATION INC (WTBA) filed a Quarterly Report (10-Q) with the SEC on April 25, 2024. West Bancorporation Inc. filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of 2024. The company's fiscal year ends on December 31st. West Bancorporation Inc. is classified under SIC code 6022 (State Commercial Banks). The company's principal business address is in West Des Moines, Iowa.

Why It Matters

For investors and stakeholders tracking WEST BANCORPORATION INC, this filing contains several important signals. This filing provides investors with the latest financial performance and operational updates for West Bancorporation Inc. for the first quarter of 2024. As a commercial bank, the details within this 10-Q are crucial for understanding the company's asset quality, loan portfolio, and overall financial health in the current economic environment.

Risk Assessment

Risk Level: low — WEST BANCORPORATION INC shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain any immediate red flags or significant deviations from typical disclosures for a company of this nature.

Analyst Insight

Monitor future filings for trends in loan growth, net interest margin, and provision for credit losses to assess ongoing performance.

Key Numbers

• 2024-03-31 — Period of Report (Quarterly filing date)
• 2024-04-25 — Filing Date (Date the 10-Q was filed)
• 2024 Q1 — Reporting Quarter (Indicates the first quarter of 2024)
• 12/31 — Fiscal Year End (Indicates the company's fiscal year closes on December 31st)

Key Players & Entities

• WEST BANCORPORATION INC (company) — Filer name
• 2024-03-31 (date) — Period of report
• 2024-04-25 (date) — Filed as of date
• 6022 (industry_code) — Standard Industrial Classification
• IA (location) — State of incorporation
• 5152222309 (phone_number) — Business phone
• WEST DES MOINES (location) — Business address city
• 3330 WESTOWN PARKWAY (address) — Business address street

FAQ

Industry Context

West Bancorporation Inc. operates as a commercial bank, a sector heavily influenced by interest rate environments, regulatory policies, and economic growth.

Regulatory Implications

As a commercial bank, West Bancorporation Inc. is subject to regulations from federal and state banking authorities, including oversight from the Federal Reserve and state banking departments.

What Investors Should Do

1. Review the full 10-Q for detailed financial statements, including balance sheets, income statements, and cash flow statements.
2. Analyze management's discussion and analysis (MD&A) for insights into the company's strategy and outlook.
3. Compare key financial metrics to prior periods and industry peers to identify performance trends.

Key Dates

• 2024-03-31: Quarter End — End of the reporting period for the 10-Q filing.
• 2024-04-25: Filing Date — Date the 10-Q was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial filing for the first quarter of 2024, providing a baseline for comparison with subsequent reports.

Filing Documents

• wtba-20240331.htm (10-Q) — 2529KB
• wtba-20240331xex311.htm (EX-31.1) — 10KB
• wtba-20240331xex312.htm (EX-31.2) — 10KB
• wtba-20240331xex321.htm (EX-32.1) — 3KB
• wtba-20240331xex322.htm (EX-32.2) — 3KB
• 0001166928-24-000052.txt (&nbsp;) — 11917KB
• wtba-20240331.xsd (EX-101.SCH) — 39KB
• wtba-20240331_cal.xml (EX-101.CAL) — 92KB
• wtba-20240331_def.xml (EX-101.DEF) — 240KB
• wtba-20240331_lab.xml (EX-101.LAB) — 623KB
• wtba-20240331_pre.xml (EX-101.PRE) — 450KB
• wtba-20240331_htm.xml (XML) — 2906KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements 4 Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 4 Consolidated Statements of Income for the three months ended March 31, 2024 and 2023 5 Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2024 and 2023 6 Consolidated Statements of Stockholders' Equity for the three months ended March 31, 2024 and 2023 7 Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 8

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 9

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 30 "Safe Harbor" Concerning Forward-Looking Statements 30 Critical Accounting Policies 30 Non-GAAP Financial Measures 31 Overview 32 Results of Operations 34 Financial Condition 40

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 44

Controls and Procedures

Item 4. Controls and Procedures 45

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 45

Risk Factors

Item 1A. Risk Factors 45

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 45

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 45

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 45

Other Information

Item 5. Other Information 45

Exhibits

Item 6. Exhibits 45

Signatures

Signatures 47 3 Table of Contents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements West Bancorporation, Inc. and Subsidiary Consolidated Balance Sheet (unaudited) (in thousands, except share and per share data) March 31, 2024 December 31, 2023 ASSETS Cash and due from banks $ 27,071 $ 33,245 Interest-bearing deposits 120,946 32,112 Cash and cash equivalents 148,017 65,357 Securities available for sale, at fair value 605,735 623,919 Federal Home Loan Bank stock, at cost 26,181 22,957 Loans 2,980,133 2,927,535 Allowance for credit losses ( 28,373 ) ( 28,342 ) Loans, net 2,951,760 2,899,193 Premises and equipment, net 95,880 86,399 Accrued interest receivable 15,270 13,581 Bank-owned life insurance 44,138 43,864 Deferred tax assets, net 34,552 34,303 Other assets 41,159 36,185 Total assets $ 3,962,692 $ 3,825,758 LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Deposits: Noninterest-bearing demand $ 521,377 $ 548,726 Interest-bearing demand 449,946 481,207 Savings and money market 1,435,538 1,440,076 Time 658,169 503,770 Total deposits 3,065,030 2,973,779 Federal funds purchased and other short-term borrowings 198,500 150,270 Subordinated notes, net 79,697 79,631 Federal Home Loan Bank advances 315,000 315,000 Long-term debt 46,486 47,736 Accrued expenses and other liabilities 34,223 34,299 Total liabilities 3,738,936 3,600,715 COMMITMENTS AND CONTINGENCIES (NOTE 8) STOCKHOLDERS' EQUITY Preferred stock, $ 0.01 par value; authorized 50,000,000 shares; no shares issued and outstanding at March 31, 2024 and December 31, 2023 — — Common stock, no par value; authorized 50,000,000 shares; 16,813,952 and 16,725,094 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively 3,000 3,000 Additional paid-in capital 33,685 34,197 Retained earnings 272,997 271,369 Accumulated other comprehensive loss ( 85,926 ) ( 83,523 ) Total stockholders' equity 223,756 225,043 Total liabilities and stockholders' equity $ 3,962,692 $ 3,825,758 See Notes to Consolidated Finan

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (unaudited) (dollars in thousands, except per share data) 1. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared by West Bancorporation, Inc. (the Company) pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements have been condensed or omitted pursuant to such rules and regulations. Although management believes that the disclosures are adequate to make the information presented understandable, it is suggested that these interim consolidated financial statements be read in conjunction with the Company's Annual Report on Form 10-K, as amended, for the year ended December 31, 2023, filed with the SEC on February 23, 2024. In the opinion of management, the accompanying consolidated financial statements of the Company contain all adjustments necessary to fairly present its financial position as of March 31, 2024 and December 31, 2023, and net income, comprehensive income (loss), changes in stockholders' equity and cash flows for the three months ended March 31, 2024 and 2023. The results for these interim periods may not be indicative of results for the entire year or for any other period. The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (GAAP) established by the Financial Accounting Standards Board (FASB). References to GAAP issued by the FASB in these footnotes are to the FASB Accounting Standards Codification , sometimes referred to as the Codification or ASC. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses for the reporting per

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (unaudited) (dollars in thousands, except per share data) In October 2023, the FASB issued ASU No. 2023-06, Disclosure Improvements: 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 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. For entities subject to the SEC's existing disclosure requirements and for entities required to file or furnish financial statements with or to the SEC in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer, the effective date for each amendment will be the date on which the SEC removes that related disclosure from its rules. For all other entities, the amendments will be effective two years later. However, if by June 30, 2027, the SEC has not removed the related disclosure from its regulations, the amendments will be removed from the Codification and not become effective for any entity. These amendments have not had an impact to the Company as of March 31, 2024. 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 Co

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (unaudited) (dollars in thousands, except per share data) 3. Securities Available for Sale The following tables show the amortized cost, gross unrealized gains and losses, and fair value of securities available for sale, by security type as of March 31, 2024 and December 31, 2023. March 31, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value Securities available for sale: Collateralized mortgage obligations (1) 298,786 — ( 58,724 ) 240,062 Mortgage-backed securities (1) 155,222 — ( 27,386 ) 127,836 Collateralized loan obligations 36,721 24 — 36,745 Corporate notes 13,750 — ( 2,011 ) 11,739 $ 735,280 $ 28 $ ( 129,573 ) $ 605,735 December 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value Securities available for sale: Collateralized mortgage obligations (1) 305,200 — ( 55,267 ) 249,933 Mortgage-backed securities (1) 157,711 — ( 25,873 ) 131,838 Collateralized loan obligations 37,632 — ( 96 ) 37,536 Corporate notes 13,750 — ( 2,143 ) 11,607 $ 745,706 $ 19 $ ( 121,806 ) $ 623,919 (1) Collateralized mortgage obligations and mortgage-backed securities consist of residential and commercial mortgage pass-through securities and collateralized mortgage obligations guaranteed by FNMA, FHLMC, GNMA and SBA. Securities with an amortized cost of approximately $ 442,363 and $ 447,074 as of March 31, 2024 and December 31, 2023, respectively, were pledged to secure access to Federal Home Loan Bank (FHLB) advances and Federal Reserve credit programs, for public fund deposits, and for other purposes as required or permitted by law or regulation. The amortized cost and fair value of securities available for sale as of March 31, 2024, by contractual maturity, are shown below. Certain securities have call featu

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (unaudited) (dollars in thousands, except per share data) There were no sales of securities available for sale during the three months ended March 31, 2024 and 2023. The following tables show the fair value and gross unrealized losses, aggregated by investment type and length of time that individual securities have been in a continuous loss position, as of March 31, 2024 and December 31, 2023. March 31, 2024 Less than 12 months 12 months or longer Total Fair Value Gross Unrealized (Losses) No. of Securities Fair Value Gross Unrealized (Losses) No. of Securities Fair Value Gross Unrealized (Losses) Securities available for sale: subdivisions $ 4,059 $ ( 58 ) 10 $ 184,004 $ ( 41,394 ) 95 $ 188,063 $ ( 41,452 ) Collateralized mortgage obligations — — — 240,062 ( 58,724 ) 72 240,062 ( 58,724 ) Mortgage-backed securities — — — 127,836 ( 27,386 ) 27 127,836 ( 27,386 ) Corporate notes — — — 11,739 ( 2,011 ) 8 11,739 ( 2,011 ) $ 4,059 $ ( 58 ) 10 $ 563,641 $ ( 129,515 ) 202 $ 567,700 $ ( 129,573 ) December 31, 2023 Less than 12 months 12 months or longer Total Fair Value Gross Unrealized (Losses) No. of Securities Fair Value Gross Unrealized (Losses) No. of Securities Fair Value Gross Unrealized (Losses) Securities available for sale: subdivisions $ 3,353 $ ( 89 ) 5 $ 184,522 $ ( 38,338 ) 92 $ 187,875 $ ( 38,427 ) Collateralized mortgage obligations — — — 249,933 ( 55,267 ) 72 249,933 ( 55,267 ) Mortgage-backed securities — — — 131,838 ( 25,873 ) 27 131,838 ( 25,873 ) Collateralized loan obligations — — — 37,536 ( 96 ) 6 37,536 ( 96 ) Corporate notes — — — 11,607 ( 2,143 ) 8 11,607 ( 2,143 ) $ 3,353 $ ( 89 ) 5 $ 615,436 $ ( 121,717 ) 205 $ 618,789 $ ( 121,806 ) 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

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (unaudited) (dollars in thousands, except per share data) 4. Loans and Allowance for Credit Losses Loans consisted of the following segments as of March 31, 2024 and December 31, 2023. March 31, 2024 December 31, 2023 Commercial $ 544,293 $ 531,594 Real estate: Construction, land and land development 465,247 413,477 1-4 family residential first mortgages 108,065 106,688 Home equity 14,020 14,618 Commercial 1,839,580 1,854,510 Consumer and other 12,844 10,930 2,984,049 2,931,817 Net unamortized fees and costs ( 3,916 ) ( 4,282 ) $ 2,980,133 $ 2,927,535 Real estate loans of approximately $ 1,460,000 and $ 1,420,000 were pledged as security for FHLB advances as of March 31, 2024 and December 31, 2023, respectively. 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. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. Loans are reported by the portfolio segments identified above and are analyzed by management on this basis. All loan policies identified below apply to all segments of the loan portfolio. Allowance for Credit Losses for Loans The following tables detail the changes in the allowance for credit losses (ACL) by loan segment for the three months ended March 31, 2024 and 2023. Three Months Ended March 31, 2024 Real Estate 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 — — — — — — — Recoveries 26 3 1 1 — — 31 Provision for credit loss expense (1) 9 374 123 ( 3 ) ( 529 ) 26 — Ending balance $ 5,326 $ 4,045 $ 828 $ 14

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