West Bancorporation Inc. Files Q2 2024 10-Q

TL;DR

WEST BANCORPORATION INC. FILED ITS 10-Q FOR Q2 2024. CHECK THE NUMBERS.

AI Summary

West Bancorporation Inc. reported its financial results for the period ending June 30, 2024. The company's filing covers the second quarter and the first six months of the year, detailing its financial performance and position. Specific financial figures and operational details for these periods are contained within the full report.

Why It Matters

This filing provides investors and analysts with a detailed look at West Bancorporation's financial health and operational performance for the second quarter of 2024, crucial for investment decisions.

Risk Assessment

Risk Level: low — This is a routine quarterly filing (10-Q) for a publicly traded company, which is standard financial reporting.

Key Numbers

• 20240630 — Period End Date (The report covers financial data up to this date.)
• 20240725 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• WEST BANCORPORATION INC (company) — Filer
• 20240630 (date) — Period of Report
• 20240725 (date) — Filing Date
• WEST DES MOINES (location) — Company Headquarters City
• IA (location) — Company Headquarters State

FAQ

Filing Documents

• wtba-20240630.htm (10-Q) — 2978KB
• wtba-20240630xex311.htm (EX-31.1) — 10KB
• wtba-20240630xex312.htm (EX-31.2) — 10KB
• wtba-20240630xex321.htm (EX-32.1) — 3KB
• wtba-20240630xex322.htm (EX-32.2) — 3KB
• 0001166928-24-000089.txt ( ) — 12753KB
• wtba-20240630.xsd (EX-101.SCH) — 39KB
• wtba-20240630_cal.xml (EX-101.CAL) — 104KB
• wtba-20240630_def.xml (EX-101.DEF) — 240KB
• wtba-20240630_lab.xml (EX-101.LAB) — 623KB
• wtba-20240630_pre.xml (EX-101.PRE) — 451KB
• wtba-20240630_htm.xml (XML) — 3080KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements 4 Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 4 Consolidated Statements of Income for the three and six months ended June 30, 2024 and 2023 5 Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2024 and 2023 6 Consolidated Statements of Stockholders' Equity for the three and six months ended June 30, 2024 and 2023 7 Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023 9

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 10

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 31 "Safe Harbor" Concerning Forward-Looking Statements 31 Critical Accounting Policies 31 Non-GAAP Financial Measures 32 Overview 33 Results of Operations 35 Financial Condition 44

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 48

Controls and Procedures

Item 4. Controls and Procedures 49

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 49

Risk Factors

Item 1A. Risk Factors 49

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 49

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 49

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 49

Other Information

Item 5. Other Information 49

Exhibits

Item 6. Exhibits 49

Signatures

Signatures 51 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) June 30, 2024 December 31, 2023 ASSETS Cash and due from banks $ 27,994 $ 33,245 Interest-bearing deposits 121,825 32,112 Cash and cash equivalents 149,819 65,357 Securities available for sale, at fair value 588,452 623,919 Federal Home Loan Bank stock, at cost 21,065 22,957 Loans 2,998,774 2,927,535 Allowance for credit losses ( 28,422 ) ( 28,342 ) Loans, net 2,970,352 2,899,193 Premises and equipment, net 101,965 86,399 Accrued interest receivable 14,139 13,581 Bank-owned life insurance 44,416 43,864 Deferred tax assets, net 33,477 34,303 Other assets 41,430 36,185 Total assets $ 3,965,115 $ 3,825,758 LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Deposits: Noninterest-bearing demand $ 530,441 $ 548,726 Interest-bearing demand 443,658 481,207 Savings and money market 1,580,523 1,440,076 Time 626,300 503,770 Total deposits 3,180,922 2,973,779 Federal funds purchased and other short-term borrowings 85,500 150,270 Subordinated notes, net 79,762 79,631 Federal Home Loan Bank advances 315,000 315,000 Long-term debt 45,236 47,736 Accrued expenses and other liabilities 34,812 34,299 Total liabilities 3,741,232 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 June 30, 2024 and December 31, 2023 — — Common stock, no par value; authorized 50,000,000 shares; 16,832,632 and 16,725,094 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively 3,000 3,000 Additional paid-in capital 34,322 34,197 Retained earnings 273,981 271,369 Accumulated other comprehensive loss ( 87,420 ) ( 83,523 ) Total stockholders' equity 223,883 225,043 Total liabilities and stockholders' equity $ 3,965,115 $ 3,825,758 See Notes to Consolidated Financia

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/A for the year ended December 31, 2023, filed with the SEC on February 23, 2024. In the opinion of management, the accompanying consolidated financial statements of the Company contain all adjustments necessary to fairly present its financial position as of June 30, 2024 and December 31, 2023, net income, comprehensive income (loss) and changes in stockholders' equity for the three and six months ended June 30, 2024 and 2023, and cash flows for the six months ended June 30, 2024 and 2023. The results for these interim periods may not be indicative of results for the entire year or for any other period. 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

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 June 30, 2024. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . The amendments in this ASU are intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Com

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 June 30, 2024 and December 31, 2023. June 30, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value Securities available for sale: Collateralized mortgage obligations (1) 292,388 — ( 58,941 ) 233,447 Mortgage-backed securities (1) 152,598 — ( 27,791 ) 124,807 Collateralized loan obligations 30,512 39 — 30,551 Corporate notes 13,750 — ( 1,907 ) 11,843 $ 719,434 $ 39 $ ( 131,021 ) $ 588,452 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 a total amortized cost of approximately $ 537,800 and $ 447,074 as of June 30, 2024 and December 31, 2023, respectively, were pledged to secure access to Federal Home Loan Bank (FHLB) advances and Federal Reserve credit programs, for public fund deposits, and for other purposes as required or permitted by law or regulation. The amortized cost and fair value of securities available for sale as of June 30, 2024, by contractual maturity, are shown below. Certain securities have call feat

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 and six months ended June 30, 2024 and 2023. The following tables show the fair value and gross unrealized losses, aggregated by investment type and length of time that individual securities have been in a continuous loss position, as of June 30, 2024 and December 31, 2023. June 30, 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 $ 5,220 $ ( 182 ) 11 $ 182,584 $ ( 42,200 ) 95 $ 187,804 $ ( 42,382 ) Collateralized mortgage obligations — — — 233,447 ( 58,941 ) 71 233,447 ( 58,941 ) Mortgage-backed securities — — — 124,807 ( 27,791 ) 27 124,807 ( 27,791 ) Corporate notes — — — 11,843 ( 1,907 ) 8 11,843 ( 1,907 ) $ 5,220 $ ( 182 ) 11 $ 552,681 $ ( 130,839 ) 201 $ 557,901 $ ( 131,021 ) 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 fai

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