West Bancorporation (WTBA) 8-K West Bancorporation, Inc. Announces Additional Provision for Loan Losses for the First Quarter of 2008

Press Release

May 6, 2008

FOR IMMEDIATE RELEASE

For more information contact:

Doug Gulling, Executive Vice President and Chief Financial Officer (515) 222-2309

WEST BANCORPORATION, INC. ANNOUNCES ADDITIONAL PROVISION FOR LOAN LOSSES FOR THE FIRST QUARTER OF 2008

West Des Moines, IA - West Bancorporation, Inc. (NASDAQ: WTBA) (the “Company”), parent company of West Bank and WB Capital Management Inc. announced today that it is increasing its provision for loan losses for the 1^st quarter of 2008 by $5 million due to a recent event.

On April 25, 2008 Regency Homes, a West Des Moines, Iowa based homebuilder (“Regency”) announced that it was suspending business. West Bank does not have any loans directly to Regency, however it does have seven loans outstanding to individuals related to Regency and six loans outstanding to limited liability companies in which the aforementioned individuals and others are owners. These loans total approximately $22 million. Approximately $18 million of loans are secured by first mortgages and limited guarantees from the owners of the borrowers. Loans totaling approximately $4 million are unsecured.

None of these loans are in default and several of the loans are believed to have collateral values sufficient to cover the amounts owed to West Bank. Nevertheless, all of these loans are deemed to be impaired because of Regency’s financial difficulties. West Bank intends to continue to work to restructure the loans in a manner that could result in additional collateral and ultimately full payment.

As a result of Regency’s decision to cease operations, West Bank is increasing the first quarter provision to its allowance for loan losses by $5 million over what was previously communicated.

West Bancorporation, Inc. issued a press release on April 17, 2008 announcing its first quarter 2008 earnings. Due to the developments described above, the Company is adjusting its results for the first quarter of 2008.

As a result of the additional provision for loan losses of $5 million, net income of the Company for the first quarter was $1,374,000 or $0.08 per share compared to $4,444,000 or $0.25 per share for the first quarter of 2007. The return on average equity and return on average assets were 4.54 percent and 0.42 percent, respectively, compared to 15.86 percent and 1.38 percent, respectively, for the first quarter of 2007. The allowance for loan losses as a percent of total loans as adjusted was 1.42 percent as of March 31, 2008, compared to 0.91 percent at the end of 2007 and 0.92 percent as of March 31, 2007. Non-performing assets as a percentage of loans at March 31, 2008, was 1.33 percent compared to 0.61 percent at 2007 year end and 0.31 percent a year ago.

Because the Company and West Bank remain well-capitalized, no reduction in the quarterly dividend is currently anticipated.

The information contained in this report may contain forward-looking statements about the Company’s growth and acquisition strategies, new products and services, and future financial performance, including earnings and dividends per share, return on average assets, return on average equity, efficiency ratio, and capital ratio. Certain statements in this report constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements preceded by, followed by or that include the words “believes,” “expects,” “should,” or “anticipates,” or references to estimates or similar expressions. Such forward-looking statements are based upon certain underlying assumptions, risks and uncertainties. Because of the possibility of change in the underlying assumptions, actual results could differ materially from these forward-looking statements. Risks and uncertainties that may affect future results include: interest rate risk; competitive pressures; pricing pressures on loans and deposits; changes in credit and other risks posed by the Company’s loan and investment portfolios, including declines in commercial or residential real estate values or changes in the allowance for loan losses dictated by new market conditions or regulatory requirements; actions of bank and non-bank competitors; changes in local and national economic conditions; changes in regulatory requirements, including actions of the Securities and Exchange Commission and/or the Federal Reserve Board; and customers’ acceptance of the Company’s products and services. The Company undertakes no obligation to revise or update such forward-looking statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

WEST BANCORPORATION, INC. AND SUBSIDIARIES
Financial Information (unaudited)
(in thousands, except per share data)
					March 31,			March 31,
CONSOLIDATED STATEMENTS OF CONDITION					2008			2007
Assets
Cash and due from banks					$	50,357		$	30,931
Short-term investments						45,494			24,426
Securities						166,722			260,016
Loans held for sale						1,597			252
Loans						1,005,824			946,493
Allowance for loan losses						(14,260	)		(8,743	)
Loans, net						991,564			937,750
Goodwill and other intangible assets						26,885			27,703
Bank-owned life insurance						24,533			23,172
Other assets						25,789			25,847
Total assets					$	1,332,941		$	1,330,097
Liabilities and Stockholders' Equity
Deposits:
Noninterest-bearing					$	204,690		$	193,111
Interest-bearing
Demand						80,537			71,776
Savings						233,270			209,070
Time						365,354			450,057
Total deposits						883,851			924,014
Short-term borrowings						143,058			143,918
Long-term borrowings						173,369			134,369
Other liabilities						13,323			11,903
Stockholders' equity						119,340			115,893
Total liabilities and stockholders' equity					$	1,332,941		$	1,330,097
	PER COMMON SHARE				MARKET INFORMATION (1)
		Net Income		Dividends		High			Low
2008
1st quarter	$	0.08	$	0.160	$	14.43		$	11.71
2007
1st quarter	$	0.25	$	0.160	$	18.25		$	14.29
2nd quarter		0.29		0.160		16.36			14.17
3rd quarter		0.28		0.160		16.19			14.68
4th quarter		0.25		0.160		15.98			11.85
(1) The prices shown are the high and low sale prices for the Company's common stock, which trades on the NASDAQ
Global Market, under the symbol WTBA. The market quotations, reported by NASDAQ, do not include retail markup, markdown or commissions.

WEST BANCORPORATION, INC. AND SUBSIDIARIES
Financial Information (continued) (unaudited)
(in thousands, except per share data)
	Three months ended
	March 31,
CONSOLIDATED STATEMENTS OF INCOME	2008			2007
Interest income
Loans	$	16,377		$	17,104
Securities		2,326			2,855
Other		160			289
Total interest income		18,863			20,248
Interest expense
Deposits		5,972			7,572
Short-term borrowings		1,293			1,683
Long-term borrowings		1,722			1,682
Total interest expense		8,987			10,937
Net interest income		9,876			9,311
Provision for loan losses		5,600			300
Net interest income after provision for loan losses		4,276			9,011
Noninterest income
Service charges on deposit accounts		1,046			1,128
Trust services		194			181
Investment advisory fees		1,938			1,959
Increase in cash value of bank-owned life insurance		192			216
Net realized gains from sales of securities
available for sale		5			4
Other income		461			382
Total noninterest income		3,836			3,870
Noninterest expense
Salaries and employee benefits		3,731			3,616
Occupancy		900			934
Data processing		492			467
Other expense		1,546			1,437
Total noninterest expense		6,669			6,454
Income before income taxes		1,443			6,427
Income taxes		69			1,983
Net income	$	1,374		$	4,444
PERFORMANCE HIGHLIGHTS
Return on average equity		4.54	%		15.86	%
Return on average assets		0.42	%		1.38	%
Net interest margin		3.38	%		3.24	%
Efficiency ratio		47.10	%		47.53	%