West Bancorporation, Inc. Announces Results for 3rd Quarter and First Nine Months of 2009

WEST DES MOINES, IA, Oct 29 (MARKET WIRE) --
West Bancorporation, Inc. (NASDAQ: WTBA) (the "Company"), parent company
of West Bank and WB Capital Management Inc. ("WB Capital"), reports net
income available to common shareholders from continuing operations of
$2.4 million or $0.14 per share compared to a net loss available to
common shareholders from continuing operations of ($182,000) or ($0.01)
per share for the same quarter last year. The results of WB Capital, a
net loss of ($1.1 Million) or ($0.06) per share compared to a net loss of
($178,000) or ($0.01) per share for the same quarter last year, are
considered to be from discontinued operations since the Company entered
into an agreement on October 1, 2009 to sell this subsidiary.

Total net income available to common shareholders was $1.3 million for the
third quarter of 2009 compared to a net loss in the same quarter last year
of ($360,000). On a per common share basis, third quarter 2009 net income
was $0.08 compared to a net loss of ($0.02) for the third quarter of 2008.
"We are very pleased to announce the return to a quarterly profit given
the current adverse economic conditions affecting our customers," said
Chairman Jack Wahlig.

The results for the third quarter included a provision for loan losses of
$3 million and a further goodwill impairment charge for the Company's
investment in WB Capital of $1.5 million. The goodwill impairment charge
was made to reduce the book value of WB Capital to the approximate amount
the Company will recognize when the transaction closes, which is targeted
to be on or before December 31, 2009. During the third quarter, the
Company also recognized additional impairment losses on investment
securities of ($827,000) which were partially offset by gains from the
sale of investment securities of $507,000. "We are continuing to reduce
our exposure to trust preferred securities and decrease the risk in our
investment portfolio," said Doug Gulling, Executive Vice President and
Chief Financial Officer.

"During the third quarter, total nonperforming assets declined by $12.6
million to $51.8 million. In addition, we are experiencing expected
changes in the categories of nonperforming assets. Nonaccrual loans
decreased by $15.1 million, restructured loans increased by $4 million,
and other real estate owned grew by $12 million. These developments show
our progress in working through problem loans," commented David Milligan,
Chief Executive Officer. "There were a number of positive occurrences in
our third quarter financial results which are encouraging. However, we are
keenly aware that one quarter is not a trend. We remain focused on
improving all areas of our operations, particularly credit quality."

Total loans outstanding declined $53 million since June 30, 2009. "The
recession has caused the demand for financing to decline. We are seeing
fewer new quality loan requests. That, coupled with some significant
scheduled loan payoffs, resulted in the reduction in loans outstanding,"
stated Brad Winterbottom, West Bank's President.

The allowance for loan losses as a percentage of loans outstanding as of
September 30, 2009 was 1.85 percent. This is down from 2.12 percent at
June 30, 2009. This ratio declined because $7.1 million of loans were
charged off during the third quarter of 2009. Management believes the
allowance is adequate to absorb the losses inherent in the loan portfolio,
although the adverse economic environment will continue to be a
significant determinant of future loan losses. "The overall economy may
be bottoming out, but in our opinion we are not seeing an upward turn in
the local economy at this point in time," said Milligan.

West Bank's core deposits increased by $31 million during the third
quarter. Total deposits decreased by $16 million due to a decline in
non-core wholesale deposits. That reduction was a planned development.
Non-core deposits are purchased from entities with no other direct
relationship with West Bank.

For the first nine months of 2009, the net loss for common shareholders
was ($19.1) million compared to net income of $5.5 million for the first
nine months of 2008. The common stock loss per share for the first nine
months of 2009 was ($1.10) compared to earnings per common share of $0.32
for the first nine months of 2008.

At its quarterly meeting on October 21, 2009, the Board of Directors of
the Company voted to forgo a quarterly dividend on its common stock.

The Company and West Bank continue to be well-capitalized under all
regulatory measures. The following are the regulatory capital ratios as of
September 30, 2009:

Requirements to Be
Well-Capitalized Actual
Amount Ratio Amount Ratio
--------- ----------- --------- -----------

As of September 30, 2009:
Total Capital (to
Risk-Weighted
Assets)
Consolidated n/a n/a $ 168,793 14.0 %
West Bank $ 119,973 10.0 % 164,435 13.7 %

Tier I Capital (to
Risk-Weighted Assets)
Consolidated n/a n/a 153,664 12.7 %
West Bank 71,984 6.0 % 139,381 11.6 %

Tier I Capital (to Average
Assets)
Consolidated n/a n/a 153,664 10.0 %
West Bank 76,665 5.0 % 139,381 9.1 %

The Company filed its third quarter Form 10-Q with the Securities and
Exchange Commission today. Please refer to it for a more in-depth analysis
of our results. It is available on the Investor Relations section of the
Company's website at www.westbankiowa.com.

The Company will discuss its results for the third quarter and first nine
months of 2009 during a conference call scheduled for 2:00 p.m. central
time today, Thursday, October 29, 2009. The telephone number for the
conference call is 800-860-2442. A recording of the call will be available
until November 13, 2009 at 877-344-7529, pass code: 426999.

West Bancorporation, Inc. is headquartered in West Des Moines, Iowa.
Serving Iowans since 1893, West Bank, a wholly owned subsidiary of West
Bancorporation, Inc., is a community bank that focuses on lending, deposit
services, and trust services for consumers and small- to medium-sized
businesses. West Bank has two full-service offices in Iowa City, one
full-service office in Coralville, and eight full-service offices in the
greater Des Moines area. WB Capital Management Inc., also a wholly owned
subsidiary of West Bancorporation, Inc., has an office in West Des Moines,
Iowa. It provides portfolio management services to retirement plans,
corporations, public funds, mutual funds, foundations, endowments, and
high net worth individuals.

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 ratios. 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," "intends," "should," or "anticipates," or similar references
or references to estimates or predictions. 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; changes in the Treasury's Capital
Purchase Program; 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)

CONSOLIDATED
STATEMENTS OF September 30, September 30,
CONDITION 2009 2008
------------- -------------
Assets
Cash and due
from banks $ 28,631 $ 25,204
Short-term
investments 123,685 87,188
Securities 222,526 191,681
Loans held for
sale 1,152 77
Loans 1,062,333 1,093,402
Allowance for
loan losses (19,658) (16,484)
------------- -------------
Loans, net 1,042,675 1,076,918
Goodwill and
other
intangible
assets 309 13,915
Bank-owned life
insurance 25,186 25,037
Other real
estate owned 18,089 4,042
Other assets 37,358 40,179
------------- -------------
Total assets $ 1,499,611 $ 1,464,241
============= =============

Liabilities and
Stockholders'
Equity
Deposits:
Noninterest-
bearing $ 201,813 $ 187,727
Interest-
bearing
Demand 164,092 120,642
Savings 380,497 222,488
Time of
$100,000 or
more 206,167 219,148
Other Time 208,579 368,889
------------- -------------
Total deposits 1,161,148 1,118,894
Short-term
borrowings 50,304 70,871
Long-term
borrowings 145,619 147,869
Other
liabilities 10,162 11,746
Stockholders'
equity 132,378 114,861
------------- -------------
Total
liabilities
and
stockholders'
equity $ 1,499,611 $ 1,464,241
============= =============

PER COMMON SHARE MARKET INFORMATION (1)
Net Income
(Loss) Dividends High Low
------------- -------------- ------------- -------------
2009
1st quarter $ 0.14 $ 0.08 $ 12.40 $ 4.36
2nd quarter (1.32) 0.01 9.50 5.00
3rd quarter 0.08 - 6.38 4.61

2008
1st quarter $ 0.08 $ 0.16 $ 14.43 $ 11.71
2nd quarter 0.26 0.16 13.48 8.63
3rd quarter (0.02) 0.16 16.21 7.30
4th quarter 0.12 0.16 13.50 8.67

(1) The prices shown are the high and low sale prices for the Company's
common stock, which trades on the NASDAQ Global Select 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 Nine months ended
CONSOLIDATED STATEMENTS OF September 30, September 30,
OPERATIONS 2009 2008 2009 2008
--------- --------- --------- ---------
Interest income
Loans $ 14,914 $ 15,987 $ 45,038 $ 47,677
Securities 2,229 2,163 6,027 6,431
Other 73 36 384 271
--------- --------- --------- ---------
Total interest income 17,216 18,186 51,449 54,379
--------- --------- --------- ---------

Interest expense
Deposits 4,672 5,404 15,242 15,914
Short-term borrowings 65 591 240 2,603
Long-term borrowings 1,706 1,804 5,062 5,364
--------- --------- --------- ---------
Total interest expense 6,443 7,799 20,544 23,881
--------- --------- --------- ---------

Net interest income 10,773 10,387 30,905 30,498
Provision for loan losses 3,000 7,000 21,500 13,600
--------- --------- --------- ---------
Net interest income after
provision for loan losses 7,773 3,387 9,405 16,898
--------- --------- --------- ---------

Noninterest income
Service charges on deposit
accounts 1,078 1,287 3,120 3,583
Trust services 222 207 581 605
Gains and fees on sales of
residential mortgages 324 136 859 356
Increase in cash value of
bank-owned life insurance 199 248 562 697
Proceeds from bank-owned life
insurance - - 840 -
Other income 528 468 1,559 1,412
--------- --------- --------- ---------
Total noninterest income 2,351 2,346 7,521 6,653
--------- --------- --------- ---------

Investment securities gains
(losses), net
Total other-than-temporary
impairment losses (986) (1,725) (3,414) (1,725)
Portion of loss recognized in
other comprehensive income
(loss) before taxes 159 - 897 -
--------- --------- --------- ---------
Net impairment losses
recognized in earnings (827) (1,725) (2,517) (1,725)
Realized securities gains
(losses), net 507 66 1,960 71
--------- --------- --------- ---------
Investment securities gains
(losses), net (320) (1,659) (557) (1,654)
--------- --------- --------- ---------

Noninterest expense
Salaries and employee benefits 2,294 2,482 7,494 7,541
Occupancy 794 748 2,637 2,242
Data processing 455 426 1,312 1,357
FDIC insurance expense 531 209 2,267 394
Goodwill impairment - - 13,376 -
Other expense 1,834 1,406 5,120 4,135
--------- --------- --------- ---------
Total noninterest expense 5,908 5,271 32,206 15,669
--------- --------- --------- ---------

Income (loss) before income
taxes 3,896 (1,197) (15,837) 6,228
Income taxes (benefits) 906 (1,015) (8,021) 796
--------- --------- --------- ---------
Income (loss) from continuing
operations 2,990 (182) (7,816) 5,432
--------- --------- --------- ---------

Income (loss) from discontinued
operations before income taxes (1,048) (301) (10,394) 172
Income taxes (benefits) 37 (123) (777) 76
--------- --------- --------- ---------
Income (loss) from
discontinued operations (1,085) (178) (9,617) 96
--------- --------- --------- ---------
Preferred stock dividends and
accretion of discount (571) - (1,708) -
--------- --------- --------- ---------
Net income (loss) available
to common stockholders $ 1,334 $ (360) $ (19,141) $ 5,528
========= ========= ========= =========

Three months ended Nine months ended
September 30, September 30,
SUPPLEMENTAL INFORMATION 2009 2008 2009 2008
--------- --------- --------- ---------
Income (loss) from continuing
operations $ 2,990 $ (182) $ (7,816) $ 5,432
Preferred stock dividends and
accretion of discount (571) - (1,708) -
--------- --------- --------- ---------
Net income (loss) from
continuing operations
available
to common stockholders $ 2,419 $ (182) $ (9,524) $ 5,432
========= ========= ========= =========

PERFORMANCE HIGHLIGHTS
Return on average equity 5.74% -1.22% -16.01% 6.18%
Return on average assets 0.49% -0.10% -1.44% 0.55%
Net interest margin 3.11% 3.37% 2.86% 3.44%
Efficiency ratio 42.84% 39.71% 46.63% 40.55%

For more information contact:
Doug Gulling
Executive Vice President and Chief Financial Officer
(515) 222-2309

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