West Bancorporation (WTBA) 8-K West Bancorporation, Inc. Annual Stockholders’ Meeting

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2010 Shareholders’ MeetingApril 29, 2010

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*Includes BOLI proceeds, net of foundation contribution of $640,000

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Financial Review

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2009 Financial Results Impacted by
Three Items

•Goodwill impairment loss

•Unprecedented level of loan losses

•High level of nonperforming assets

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Goodwill Impairment

•$13.4 Million

•Had minimal impact on regulatory or
tangible capital

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2005	$687
2006	$846
2007	$1,909
2008	$10,094
2009	$20,815
1st Quarter 2010	$853

Unprecedented Loan Losses($ in 000’s)

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	90 days Past Due	Nonaccrual Loans	OREO	TDR’s	Investments	Total
2005	$767	$4,145	$497	-	-	$5,409
2006	$155	$495	$2,002	-	-	$2,652
2007	$408	$5,469	$155	-	-	$6,032
2008	$92	$21,367	$4,352	$7,376	$2,575	$35,762
2009	$1,150	$12,350	$25,350	$12,817	$1,282	$52,949
1Q10	$173	$11,450	$26,974	$16,554	$1,310	$56,461

Level of Nonperforming Assets ($ in 000’s)

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2009 Other Events

•Sale of WB Capital Management Inc.

•SmartyPig

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2010 First Quarter

•Some relief from loan losses

•SmartyPig service fee

•Nonperforming assets still too high

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	“Texas” Ratio	Nonaccrual & Past due (90 days) Loans as % of Total Loans	Net Charge-offs as % of Av Loans
Bankers Trust	27.46%	1.99%	0.92%
First American	34.34%	3.07%	1.53%
Hills Bank	7.79%	0.80%	0.69%
MidwestOne	33.69%	3.68%	0.85%
National Peer Group	34.15%	3.77%	1.51%
West Bank	25.54%	1.33%	1.89%

12/31/09 FDIC Call Reports.National Peer Group consists of all banks with total assets between $1 billion and $3 billion.
Texas Ratio is noncurrent loans and securities plus other real estate owned divided by tangible equity plus loan loss reserves.

Peer Perspective - Asset Quality

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	Total Risk Based Capital Ratio	Tier I Leverage Ratio	Net Income (Loss) $ in 000’s
Bankers Trust	12.64%	8.06%	$12,107
First American	10.90%	7.60%	$1,922
Hills Bank	12.87%	9.14%	$16,137
MidwestOne	12.94%	9.23%	$5,710
National Peer Group	12.56%	8.36%	N/A
West Bank	13.90%	8.86%	$(3,753)

12/31/09 FDIC Call Reports.National Peer Group consists of all banks with total assets between $1 billion and $3 billion.

Peer Perspective - Capital Ratios

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Going Forward

•Strong Core Earnings

•SmartyPig Service Fee

•Strong Capital Base

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	3.31.10 pro- forma*	3.31.10	12.31.09	12.31.08	Requirements to be well-capitalized
Risk-based capital as % of risk-weighted assets	14.4%	14.4%	13.9%	13.1%	10.0%
Tier I Capital as % of risk-weighted assets	12.3%	12.3%	11.8%	11.0%	8.0%
Tier I Capital as % of total assets	10.1%	8.8%	8.9%	9.4%	6.0%

*Without SmartyPig

West Bank’s Capital Ratios

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	3.31.10 pro - -forma*	3.31.10	12.31.09	12.31.08
Tangible common equity as % of total tangible assets	7.0%	6.1%	6.3%	6.7%
Tangible common equity ($000’s)	$102,596	$102,596	$98,763	$102,662
Total tangible assets ($000’s)	$1,459,926	$1,691,090	$1,574,782	$1,540,423

*Without SmartyPig

Consolidated Capital Measures

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West Bank

Year in Review

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How We Monitor Asset Quality

Commercial Banking Team

•15 bankers manage the bulk of the $1 Billion loan
portfolio.

–These 15 bankers have 305 years of combined experience

–Eight bankers have 20 years experience

–Three bankers have more than 30 years experience

•These bankers provide daily contact and relationship
monitoring.

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Loan approval process

Most bankers have modest loan authority requiring
most approvals & renewals to be approved at a
committee level. Thereafter:

1.Independent Review of the facts is conducted by
the CreditDepartment

2.A Risk Rating is assigned by Banker

3.Loan Committee and Credit Department
confirm/amend the risk rating before the loan is
booked

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During the life of the loan

The banker monitors the credit, adjusting risk ratings as real time
information is received

Other Independent Reviews

•Risk Auditor - looks for compliance and documentation issues

•Loan Auditor - confirms documentation and insures loan is made
within approvals granted

•Loan Review - performs an independent analysis on high-dollar
loans and provides an annual review of the credit

–Findings are discussed during internal and Board Loan Committee
meetings

If loan deteriorates, it moves to a category that requires heightened
scrutiny and review, and is monitored monthly by the Adverse
Asset Committee

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	90 days Past Due	Nonaccrual Loans	OREO	TDR’s
2005	$767	$4,145	$497	-
2006	$155	$495	$2,002	-
2007	$408	$5,469	$155	-
2008	$92	$21,367	$4,352	$7,376
2009	$1,150	$12,350	$25,350	$12,817
1Q10	$173	$11,450	$26,974	$16,554

Nonperforming Assets

When a loan becomes
stressed it is
reported

•When it reaches 90-day
delinquency

•The loan could remain in
past due for an additional
30 days provided

–Pending event

–Demand/Deadline has
not expired.

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	90 days Past Due	Nonaccrual Loans	OREO	TDR’s
2005	$767	$4,145	$497	-
2006	$155	$495	$2,002	-
2007	$408	$5,469	$155	-
2008	$92	$21,367	$4,352	$7,376
2009	$1,150	$12,350	$25,350	$12,817
1Q10	$173	$11,450	$26,974	$16,554

As past due loans move
to non-accrual:

•Accrued interest is generally
reversed to avoid
overstatement of income.

•Legal procedures are
commenced

–9 to15 month process when
secured by real-estate

–At 3.31.10:65% of non
accruals are real estate
secured.

Nonperforming Assets

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	90 days Past Due	Nonaccrual Loans	OREO	TDR’s
2005	$767	$4,145	$497	-
2006	$155	$495	$2,002	-
2007	$408	$5,469	$155	-
2008	$92	$21,367	$4,352	$7,376
2009	$1,150	$12,350	$25,350	$12,817
1Q10	$173	$11,450	$26,974	$16,554

When the bank takes
possession of the
asset, it is moved to
OREO:

•Independent valuation of the
asset is obtained

•Market the asset for sale

•Monitor the value of the
asset

Nonperforming Assets

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	90 days Past Due	Nonaccrual Loans	OREO	TDR’s
2005	$767	$4,145	$497	-
2006	$155	$495	$2,002	-
2007	$408	$5,469	$155	-
2008	$92	$21,367	$4,352	$7,376
2009	$1,150	$12,350	$25,350	$12,817
1Q10	$173	$11,450	$26,974	$16,554

A loan is classified TDR

•When it is re-negotiated,

•The borrower gets more-
favorable terms than
customary

The loan may stay in this
category until proven
payment performance is
exhibited

Nonperforming Assets

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Trends in nonperforming assets

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	90 days Past Due	Nonaccrual Loans	OREO	TDR’s
2005	$767	$4,145	$497	-
2006	$155	$495	$2,002	-
2007	$408	$5,469	$155	-
2008	$92	$21,367	$4,352	$7,376
2009	$1,150	$12,350	$25,350	$12,817
1Q10	$173	$11,450	$26,974	$16,554

Non-accruals are moving in the right direction

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	90 days Past Due	Nonaccrual Loans	OREO	TDR’s
2005	$767	$4,145	$497	-
2006	$155	$495	$2,002	-
2007	$408	$5,469	$155	-
2008	$92	$21,367	$4,352	$7,376
2009	$1,150	$12,350	$25,350	$12,817
1Q10	$173	$11,450	$26,974	$16,554

While OREO is increasing, we control the
assets and are aggressively marketing them

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	90 days Past Due	Nonaccrual Loans	OREO	TDR’s
2005	$767	$4,145	$497	-
2006	$155	$495	$2,002	-
2007	$408	$5,469	$155	-
2008	$92	$21,367	$4,352	$7,376
2009	$1,150	$12,350	$25,350	$12,817
1Q10	$173	$11,450	$26,974	$16,554

While TDR is increasing:

•We are earning
interest

•Payments are
being made

–90% are current
to less than 30
days past due

•Continued
performance
removes them
from TDR

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	90 days Past Due	Nonaccrual Loans	OREO	TDR’s
2005	$767	$4,145	$497	-
2006	$155	$495	$2,002	-
2007	$408	$5,469	$155	-
2008	$92	$21,367	$4,352	$7,376
2009	$1,150	$12,350	$25,350	$12,817
1Q10	$173	$11,450	$26,974	$16,554

Since April 1, 2010

14 separate assets,
totaling $4.9M have
been:

•Sold and closed

•Sold and in process,

•Or are in significant
negotiations to sell
within the next three
months

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	March 31, 2010	Dec 31, 2009
Construction, land development and other land	$13,916	$ 8,596
1-4 family residential properties	$3,784	$ 3,918
Commercial Properties	$9,274	$ 12,836
Total OREO	$ 26,974	$ 25,350

OREO by Category

Land Development

•Minimal Expenses

•Hard to market

1- 4 Family

•Costly to hold

•Lively showings, sales in
process

Commercial

•Four assets, two
currently in sales
process

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Additions to Asset Quality
Assurance Team

•Legal

–Staffed with three lawyers and two associates

•Loan Review

New hires added support and control over asset
quality issues and compliance improvements

–Risk Auditor

–Loan Auditor

–Loan Review

–Three Loan Support Staff

•Compliance

–Added two full time employees

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Net Charge-Offs by Quarter

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West Bank	12.31.07	12.31.08	03.31.09	06.30.09	09.30.09	12.31.09	03.31.10
Past Due 30+ days	$4,762	$31,022	$41,973	$57,078	$30,082	$13,993	$29,697
Total Loans	$985,400	$1,101,700	$1,123,400	$1,122,500	$1,063,500	$1,018,800	$991,500
Past due Ratio	.48%	2.82%	3.74%	5.08%	2.83%	1.37%	3.00%

Past Due Loan Summary ($000’s)

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Line of Business Report

Commercial Banking

•Soft Economy

•Loans declined 7.3% in 2009

•Loans declined another 3% in
1Q10

•Treasury Management Products

–Continued growth in our remote
deposit capture product

–Expanded e-services suite for
large-to mid-clients seeking
fraud protection services

–Outsourced check recovery
service and international wires

Retail Banking

Deposit Growth (net of SmartyPig)

•Up by $24M (8.5%) at year end

•1Q10 increased by $8.5M (2.6%)

Facilities

–Opened a branch in Waukee

–Remodeled Merle Hay, City
Center and Main Teller Station

–Look for new branch
construction at Grand in 2010

Products

–Simplified retail product line

–Introduced a suite of e-services

–Introduced the Rate Riser CD

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3.31.10	3.31.09	2009	2008	2007
$187M	$298M	$1,114M	$544M	$161M

Line of Business Report

Residential Mortgage

Headed by James Glaser, SVP

•Stable work force

•Expanding sales effort in 2010

Gain and fees on sales of
residential Mortgages

Trust Services

Headed by James Benda, STO

•Stable work force

While results are flat

•Managed Accounts, the most
profitable segment of the business,
experienced significant gains.
Assets grew from $75M in 2008 to
$85.7M in 2009

•Non-Managed Accounts.While the
sale of WB Capital Management
impacted non-managed accounts,
profit was marginal in this segment
of the business.

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Bank Awards & Community Outreach

Recipient

•2009 Better Business Bureau
Integrity Award

•2009 United Way Leader in
Giving Award

Shred it Day

•3rd Annual Event held
May 16, 2009

•4th Annual Event scheduled
for May 22, 2010

Employee Community Service

•174 Employees contributed
nearly 8,700 community
service hours last year

Employee Board Service

•In 2009, the company’s
employees held 87 non profit
board seats in Central and
Eastern Iowa.

West Bancorporation
Foundation

•$242,000 in grants were
awarded in 2009

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2010 Shareholders’ MeetingApril 29, 2010