AI Analysis | Feedback

Here are a few analogies for West Bancorp (WTBA):

• A community-focused version of a larger regional bank like U.S. Bank, serving individuals and small businesses in Iowa and Minnesota.

• Like a local branch of Chase or Bank of America, but operating as an independent regional bank across parts of Iowa and Minnesota.

AI Analysis | Feedback

• Deposit Products: The company offers various accounts for holding funds, including checking, savings, money market accounts, and certificates of deposit.
• Loan Products: West Bank provides a range of lending options, categorized into commercial, construction, consumer, and residential mortgages.
  • Commercial Loans: Loans for businesses, including commercial real estate, construction and land development, lines of credit, and term loans.
  • Consumer & Residential Loans: Loans for individuals, covering personal expenditures, 1-4 family residential mortgages, and home equity.
• Trust Services: Administration of estates, conservatorships, personal trusts, and agency accounts for managing assets.
• Digital Banking Services: Convenience services enabling banking transactions and account management via internet and mobile platforms.
• Treasury Management Services: Specialized financial services for businesses, such as cash management, ACH transactions, remote deposit, and fraud protection.
• Payment & Card Services: Provides merchant credit card processing and corporate credit cards for businesses.

AI Analysis | Feedback

West Bancorp (WTBA) primarily serves a diverse customer base rather than a few major corporate clients. Based on the company description, its customer base can be categorized as follows:

• Individuals: This category includes customers who utilize services such as checking, savings, and money market accounts, consumer loans, 1-4 family residential mortgages, home equity loans, and personal trust services.
• Small- to Medium-Sized Businesses: This category encompasses businesses that use West Bancorp for commercial real estate loans, construction and land development loans, commercial lines of credit, commercial term loans, treasury management services (including cash management, client-generated automated clearing house transactions, remote deposit, and fraud protection), merchant credit card processing, and corporate credit cards.

AI Analysis | Feedback

null

AI Analysis | Feedback

David D. Nelson, Director, Chief Executive Officer and President; Chairman of the Board and Chief Executive Officer of West Bank

Mr. Nelson was appointed CEO in April 2010 and has over 30 years of experience in commercial banking. He previously served as President, Southeast Minnesota Business Banking and President, Wells Fargo Bank Rochester. He has a strong background in customer relationship building, credit, and leadership development. Mr. Nelson has increased his ownership in West Bancorp through stock purchases and directly held approximately 253,090 shares as of February 2025.

Jane M. Funk, Principal Accounting Officer and Treasurer; Executive Vice President and Chief Financial Officer of the Company and West Bank

Ms. Funk joined West Bank in 2014 and brings over 20 years of combined experience in the financial services industry and public accounting. She is a Certified Public Accountant (CPA) and is a member of the Iowa Society of Certified Public Accountants and the American Institute of Certified Public Accountants.

Brad L. Winterbottom, Executive Vice President; President of West Bank

Mr. Winterbottom joined West Bank in 1992, and has served as a Director of West Bank since 2000. He joined the West Bancorporation Board in 2009.

Harlee N. Olafson, Executive Vice President and Chief Risk Officer of the Company and West Bank; Chief Operating Officer of West Bank

Mr. Olafson has served as Chief Risk Officer and Executive Vice President of the Company and West Bank since 2010. He possesses over 30 years of experience in commercial banking.

Bradley P. Peters, Executive Vice President of the Company and West Bank; Minnesota Group President of West Bank

Mr. Peters joined West Bank in 2019 and has over 30 years of experience in commercial banking. He also serves on the Minnesota State University College of Business Advisory Council.

AI Analysis | Feedback

Key Risks to West Bancorp (WTBA)

1. Credit Risk: West Bancorp, through its subsidiary West Bank, is significantly exposed to credit risks within its loan portfolio, particularly commercial real estate loans, construction and land development loans, and other commercial loans. These loans are subject to market fluctuations and potential economic downturns in its operating regions of Iowa and Minnesota. A deterioration in economic conditions or specific market segments could lead to increased loan defaults and losses, directly impacting the company's financial performance.
2. Interest Rate Risk: As a financial institution, West Bancorp's profitability is highly sensitive to changes in interest rates. Fluctuations in interest rates, influenced by the Federal Reserve's monetary policies, can negatively impact the company's net interest income and overall financial condition by affecting the spread between the interest earned on assets (loans) and the interest paid on liabilities (deposits and borrowings).
3. Regulatory and Compliance Risk: West Bancorp operates within a heavily regulated banking industry, subject to extensive federal and state laws and regulations. Changes in these regulatory requirements, increased supervisory expectations, or non-compliance can lead to higher operational costs, fines, penalties, and restrictions on business activities, diverting resources and impacting profitability. Regulatory burden is a significant concern for community banks, potentially affecting their ability to compete and serve their communities.

AI Analysis | Feedback

Emerging threats for West Bancorp (WTBA) include:

• The rise of digital-only banks (neobanks) which operate with lower overheads and can offer more competitive rates and streamlined mobile-first experiences, potentially siphoning away deposit customers and consumer loan business.

• Specialized financial technology (fintech) lenders that leverage technology to offer faster, more convenient, and often more tailored loan products (e.g., commercial lines of credit, commercial term loans, consumer loans) to small- to medium-sized businesses and individuals, thereby challenging West Bancorp's traditional lending services.

AI Analysis | Feedback

Addressable Markets for West Bancorp's Main Products and Services

• Commercial Banking (Iowa): The market size for the Commercial Banking industry in Iowa is projected to be $16.7 billion in 2026. Iowa banks provided approximately $92 billion in loans in 2025. Total deposits in Iowa banks were $110.8 billion in 2025, with total assets exceeding $132 billion at year-end 2025.
• Commercial Banking (Minnesota): The market size for the Commercial Banking industry in Minnesota is projected to be $37.0 billion in 2026. In 2024, deposits in Minnesota banks amounted to $311 billion.
• Commercial Real Estate Loans (U.S.): Total commercial real estate (CRE) mortgage borrowing and lending in the U.S. was estimated at $498 billion in 2024. Preliminary figures indicate that total commercial mortgage originations in the U.S. climbed 40% in 2025 from 2024 levels. The global commercial lending market size was valued at USD 10,923.28 billion in 2025 and is projected to reach USD 28,369.38 billion by 2034. North America's commercial lending growth is projected to reach USD 2,892.50 billion by 2025.
• Residential Mortgages and Home Equity Loans (U.S.): The U.S. Home Mortgage Market is projected to reach a valuation of approximately $204.5 billion in 2024 and $571.6 billion by 2033. Total single-family mortgage origination volume in the U.S. is expected to increase to $2.2 trillion in 2026 from $2.0 trillion in 2025. As of April 2023, total mortgage debt, including home equity loans, accounted for $12.33 trillion of total U.S. consumer debt.
• Residential Mortgages (Minnesota): New home loans booked in Minnesota totaled $16.4 billion in 2024.
• Consumer Loans (U.S.): The global consumer credit market size was valued at USD 13.05 billion in 2024 and is expected to grow to USD 18.80 billion by 2033. The U.S. personal loan market, a segment of consumer loans, is estimated to gain USD 148.64 billion in 2026. As of April 2023, non-mortgage consumer debt in the U.S. totaled $4.66 trillion.
• Trust Services (U.S.): The Trust and Corporate Services market in the U.S. is estimated at US$2.2 billion in 2024. The global trust and corporate service market was valued at US$13.86 billion in 2024 and is projected to exceed US$20.05 billion by 2033.

AI Analysis | Feedback

1. Expansion in the Midwest, particularly Minnesota, through relationship-based banking: West Bancorp is strategically expanding its presence in Minnesota, focusing on relationship-based banking to generate new business opportunities, including both loan and deposit growth.

2. Net Interest Margin (NIM) expansion driven by the repricing of fixed-rate loans: The company anticipates an expanding net interest margin as fixed-rate loans reprice into higher yields. Approximately $550 million in fixed-rate loans were expected to reprice within 12 months as of October 2025, and nearly $400 million of the fixed-rate portfolio is projected to reprice in 2026, with an expected yield pickup of 1.5% to 2%. Future Federal Reserve rate cuts are also expected to be favorable to the net interest margin.

3. Growth in core deposits through targeted business and high-value retail customer acquisition: West Bancorp is actively focusing on attracting new core commercial and retail deposits through targeted calling plans, specifically seeking deposit-rich business banking opportunities and high-value retail deposits. This growth in core deposits is crucial for funding loan growth and managing the cost of funds.

4. Strategic balance sheet management, including asset redeployment: The company is capitalizing on strategic balance sheet management to achieve further gains. This includes the repositioning of securities, such as the sale of $64 million in securities in Q4 2025, with proceeds intended for redeployment into higher-earning assets or repayment of high-cost funding, thereby enhancing future margins.

AI Analysis | Feedback

Share Repurchases

• West Bancorporation has not reported significant share repurchase programs or substantial dollar amounts of common stock repurchased in its recent SEC filings for the period of 2021-2025.

Share Issuance

• The number of common shares issued and outstanding has slightly increased over the last few years, primarily due to shares issued through the Company's Equity Incentive Plans as restricted stock units vest. For example, an Executive Vice President received an equity award of 15,000 shares of common stock as restricted stock units on February 23, 2026.
• The number of shares outstanding for West Bancorporation increased from 16.54 million in 2021 to 16.93 million in 2025.

Capital Expenditures

• West Bancorp significantly invested in its physical infrastructure during this period. The net value of premises and equipment increased from approximately $86.4 million at December 31, 2023, to $109.9 million at December 31, 2024.
• A major focus of capital expenditures was the relocation to a new corporate headquarters in West Des Moines, Iowa, which the company moved into in April 2024.
• The company also completed the construction of permanent offices in St. Cloud and Mankato, Minnesota, and anticipated the completion of a permanent office in Owatonna, Minnesota, in 2024.