West Bancorporation, Inc. operates as the financial holding company for West Bank that provides community banking and trust services to individuals and small- to medium-sized businesses in the United States. It accepts various deposit products, including checking, savings, and money market accounts, as well as time certificates of deposit. The company also provides loan products comprising commercial real estate loans, construction and land development loans, commercial lines of credit, and commercial term loans; consumer loans, including loans extended to individuals for household, family, and other personal expenditures not secured by real estate; and 1-4 family residential mortgages and home equity loans. In addition, it offers trust services, including the administration of estates, conservatorships, personal trusts, and agency accounts. Further, the company provides internet and mobile banking services; treasury management services comprising cash management, client-generated automated clearing house transaction, remote deposit, and fraud protection services; and merchant credit card processing services and corporate credit cards. It has seven offices in the Des Moines area; one office in Coralville and Iowa; and one office each in Rochester, Owatonna, Mankato, and St. Cloud, Minnesota. West Bancorporation, Inc. was founded in 1893 and is headquartered in West Des Moines, Iowa.
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Here are 1-3 brief analogies for West Bancorp (WTBA):
- U.S. Bank, but for Iowa and Minnesota.
- Wells Fargo's community banking, scaled for Iowa and Minnesota.
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Here are the major services provided by West Bancorp (WTBA):
- Deposit Accounts: Services for individuals and businesses to securely save and manage their money, including checking, savings, money market, and certificate of deposit accounts.
- Commercial & Real Estate Loans: Financing solutions for businesses, including commercial real estate, construction, and commercial and industrial loans.
- Residential Mortgage Loans: Loans provided to individuals for the purchase or refinancing of homes.
- Consumer Loans: Personal financing options for individuals, such as auto loans, personal loans, and home equity lines of credit.
- Treasury Management: Services designed for businesses to optimize cash flow, manage payments, and enhance financial operations.
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West Bancorp (WTBA) is a bank holding company that operates primarily through its subsidiary, West Bank. As a financial institution, it does not typically have "major customers" in the way a manufacturing or retail company might, where a few large buyers represent a significant portion of revenue. Instead, West Bancorp provides a broad range of financial services to a diverse base of individual and business customers.
The company primarily serves the following categories of customers:
- Individual Consumers: This category includes individuals who use West Bancorp for their personal banking needs. Services offered include checking accounts, savings accounts, money market accounts, certificates of deposit, residential mortgages, home equity loans, personal loans, and auto loans.
- Small to Medium-Sized Businesses (SMEs): West Bancorp serves a variety of businesses, from small enterprises to larger middle-market companies. These customers utilize the bank for commercial loans, lines of credit, business checking and savings accounts, treasury management services, and other specialized business banking solutions.
- Commercial Real Estate Developers and Investors: A significant portion of West Bancorp's lending activity involves commercial real estate. This customer category includes developers and investors seeking financing for the acquisition, development, construction, and refinancing of commercial properties across various sectors such as multi-family, office, retail, and industrial.
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David D. Nelson, President and CEO
Mr. Nelson is the Chief Executive Officer and President of West Bancorp, Inc., and also serves as Chairman, Director, and Chief Executive Officer of West Bank. He joined the Company in April 2010 and brings over 30 years of experience in commercial banking, with a strong background in customer relationship building, credit, and leadership development.
Jane M. Funk, Executive Vice President, Treasurer and Chief Financial Officer
Ms. Funk is the Executive Vice President, Treasurer, and Chief Financial Officer of West Bancorp, Inc., and Director, Executive Vice President, and Chief Financial Officer of West Bank. She joined West Bank in 2014, bringing over 20 years of combined experience in the financial services industry and public accounting. Ms. Funk is a CPA and was previously with the public accounting firm RSM US LLP for over 18 years, and also worked for two other financial institutions prior to joining West Bank.
Brad L. Winterbottom, Executive Vice President
Mr. Winterbottom serves as Executive Vice President of West Bancorp, Inc. and President of West Bank. He joined the West Bancorporation Board in 2009 and has been a Director of West Bank since 2000. Mr. Winterbottom originally joined West Bank in 1992.
Harlee N. Olafson, Executive Vice President and Chief Risk Officer
Mr. Olafson is the Chief Risk Officer and Executive Vice President of West Bancorp, Inc., and has served as a Director, Chief Risk Officer, and Executive Vice President of West Bank since 2010. He possesses over 30 years of experience in commercial banking.
Brad P. Peters, Executive Vice President
Mr. Peters is an Executive Vice President of West Bancorp, Inc., and Executive Vice President and Minnesota Group President of West Bank. He joined West Bank in 2019, bringing more than 30 years of experience in commercial banking.
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West Bancorp (WTBA) faces several key risks, primarily stemming from its nature as a regional bank operating within a dynamic financial landscape. The most significant risks include:
1. Economic Conditions and Net Interest Margin Compression
West Bancorp has directly experienced the impact of macroeconomic uncertainty and an inverted yield curve, which led to a significantly compressed net interest margin in 2024, causing earnings to fall short of financial performance standards. Such adverse economic conditions can directly affect the bank's profitability and financial health.
2. Competitive Pressures
The banking sector in West Bancorp's market areas is highly competitive, encompassing other commercial banks, credit unions, mortgage companies, and financial technology (FinTech) companies. These competitive and pricing pressures on both loans and deposits can impact the company's ability to grow and maintain profitability.
3. Changes in Regulatory Requirements
As a financial institution, West Bancorp is subject to extensive regulation. Changes in local and national regulatory requirements, as well as actions by bodies such as the Securities and Exchange Commission (SEC) and the Federal Reserve Board, can significantly affect the company's operations, compliance costs, and business strategies.
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West Bancorp, as a traditional regional bank, faces several clear emerging threats primarily stemming from the accelerating pace of digital transformation in financial services:
Fintech Disruption: The rise of financial technology (fintech) companies and neobanks (digital-only banks) presents a significant threat. These agile competitors often offer superior digital user experiences, potentially lower fees, faster lending processes, and innovative services tailored to specific customer segments. Companies like Chime, SoFi, Ally Bank, and various online lenders can attract customers with attractive deposit rates, streamlined loan applications, and user-friendly mobile apps, potentially eroding West Bancorp's market share in deposits, consumer lending, and even small business banking without needing a physical presence in West Bancorp's operating markets.
Non-Bank Payment Solutions: The increasing adoption of payment applications and platforms (e.g., PayPal, Venmo, Cash App, Zelle) that facilitate transactions outside of traditional bank accounts poses a threat to the centrality of checking accounts and traditional banking relationships. While West Bancorp may integrate with some of these platforms, the broader trend can reduce the frequency of direct interaction and reliance on traditional bank services for payments, diminishing the bank's role as the primary financial hub for its customers.
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West Bancorp (symbol: WTBA) operates as a bank holding company, with its primary subsidiary, West Bank, offering full-service banking to businesses and consumers in Iowa and Minnesota. Its main products and services encompass general banking activities, loans (including residential mortgages and commercial lending), and trust services, which fall under wealth management. The addressable markets for these services in the U.S. are substantial.
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Community Banking (General Banking Services): The assets controlled by community banks in the U.S. totaled approximately $3.2 trillion as of December 2022.
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Residential Mortgages: The residential mortgage debt outstanding in the U.S. amounted to $11.92 trillion as of the fourth quarter of 2022.
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Commercial Lending: The global commercial lending market was valued at $14.15 trillion in 2023. With the U.S. holding approximately 75% of the commercial lending market share, the addressable market in the U.S. for commercial lending is estimated to be around $10.61 trillion in 2023.
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Wealth Management: The North American wealth management market, a significant portion of which is the U.S. market, accounted for $937.45 billion in 2023.
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West Bancorp (WTBA) is expected to drive future revenue growth over the next 2-3 years through several key strategies and market conditions:
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Net Interest Margin (NIM) Expansion: The company anticipates continued improvement in its net interest margin, which has been a primary driver of financial performance. This is expected to be fueled by the repricing of approximately $550 million in fixed-rate loans over the next 12 months at higher yields, as well as the anticipated favorable impact of future Federal Reserve rate cuts through 2026.
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Strategic Loan Growth: West Bancorp aims for sustained loan growth, supported by a "good" loan pipeline. Management has indicated plans to fund this expansion through ongoing deposit gathering efforts and cash flows from its securities portfolio. Loan balances increased by $43 million in the third quarter of 2025.
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Focused Deposit Gathering: The company is actively targeting "deposit-rich business banking opportunities" and "high-value retail deposits." This disciplined approach to attracting new business and maintaining a strong deposit base is crucial for efficiently funding loan growth and optimizing the cost of funds.
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Capitalizing on Competitor M&A Activity: West Bancorp is strategically leveraging new business opportunities arising from recent merger and acquisition activities among competitors in its markets, particularly in Minnesota. This allows the company to attract new customers and expand its market share.
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Share Issuance
- The number of common shares outstanding has generally increased over the last five years, from 16.45 million in 2020 to approximately 16.94 million as of November 2025.
- This represents a net increase of approximately 0.49 million shares outstanding over the 2020-2025 period.
Capital Expenditures
- West Bancorp completed the construction and moved into a new headquarters building in West Des Moines, Iowa in April 2024, a project that was several years in the making.
- The company opened new permanent locations in Mankato, Minnesota in November 2023, and in St. Cloud, Minnesota in March 2022.
- The net value of premises and equipment increased from $86.4 million in 2023 to $110.0 million in 2024, indicating substantial capital investments in property and infrastructure.
