----

----

| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-----------------------------------------------------------------------------------------|

|   | or |
|--------|----|

| o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|------------------------------------------------------------------------------------------|

|   | Commission File Number:  0-49677 |
|--------|--------------------------------------------|

| IOWA                     | 42-1230603                           |
|--------------------------|--------------------------------------|
| (State of Incorporation) | (I.R.S. Employer Identification No.) |

| Large accelerated filer | o | Accelerated filer         | x |
|-------------------------|---|---------------------------|---|
| Non-accelerated filer   | o | Smaller reporting company | o |

----

WES

|     |                                                                                                     | Page Number |
|----------|----------------------------------------------------------------------------------------------------------|-------------|
|     |                                                                                                     |        |
| PART I.  | FINANCIAL INFORMATION                                                                                    |        |
|     |                                                                                                     |        |
| Item 1.  | Consolidated Financial Statements (Unaudited)                                                            | 3           |
|     |                                                                                                     |        |
|     | Consolidated Balance Sheets at March 31, 2010 and December 31, 2009                                      | 3           |
|     |                                                                                                     |        |
|     | Consolidated Statements of Operations for the three months ended March 31, 2010 and 2009                 | 4           |
|     |                                                                                                     |        |
|     | Consolidated Statements of Comprehensive Income for the three months ended March 31, 2010 and 2009       | 6           |
|     |                                                                                                     |        |
|     | Consolidated Statements of Stockholders’ Equity for the three months ended March 31, 2010 and 2009 | 7           |
|     |                                                                                                     |        |
|     | Consolidated Statements of Cash Flows for the three months ended March 31, 2010 and 2009                 | 8           |
|     |                                                                                                     |        |
|     | Notes to the Consolidated Financial Statements                                                           | 10          |
|     |                                                                                                     |        |
| Item 2.  | Management's Discussion and Analysis of Financial Condition and Results of Operations                    | 20          |
|     |                                                                                                     |        |
| Item 3.  | Quantitative and Qualitative Disclosures about Market Risk                                               | 33          |
|     |                                                                                                     |        |
| Item 4.  | Controls and Procedures                                                                                  | 33          |
|     |                                                                                                     |        |
| PART II. | OTHER INFORMATION                                                                                        |        |
|     |                                                                                                     |        |
| Item 1.  | Legal Proceedings                                                                                        | 33          |
|     |                                                                                                     |        |
| Item 1A. | Risk Factors                                                                                             | 33          |
|     |                                                                                                     |        |
| Item 6.  | Exhibits                                                                                                 | 33          |
|     |                                                                                                     |        |
|     | Signatures                                                                                               | 34          |
|     |                                                                                                     |        |
|     | Index to Exhibits                                                                                        | 35          |

----

Index

PART

Item

| West Bancorporation, Inc. and Subsidiary                                                                                                                                                                                                                  |   |           |      |   |              |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|-----------|--------|-------------------|--------|
| Consolidated Balance Sheets                                                                                                                                                                                                                               |   |           |      |   |              |   |
| (unaudited)                                                                                                                                                                                                                                               |   |           |      |   |              |   |
|                                                                                                                                                                                                                                                      |   |           |      |   |              |   |
| (in thousands, except per share data)                                                                                                                                                                                                                     |   | March 31, 2010 |      |   | December 31, 2009 |   |
| ASSETS                                                                                                                                                                                                                                                    |   |           |      |   |              |   |
| Cash and due from banks                                                                                                                                                                                                                                   |   | $              | 26,786    |   |              | $      | 27,923 |   |
| Federal funds sold and other short-term investments                                                                                                                                                                                                       |   |           | 269,625   |   |              |   | 103,572 |   |
| Cash and cash equivalents                                                                                                                                                                                                                                 |   |           | 296,411   |   |              |   | 131,495 |   |
| Securities available for sale                                                                                                                                                                                                                             |   |           | 320,660   |   |              |   | 340,478 |   |
| Federal Home Loan Bank stock, at cost                                                                                                                                                                                                                     |   |           | 10,191    |   |              |   | 10,791 |   |
| Loans held for sale                                                                                                                                                                                                                                       |   |           | 1,381     |   |              |   | 332 |   |
| Loans                                                                                                                                                                                                                                                     |   |           | 992,101   |   |              |   | 1,020,710 |   |
| Allowance for loan losses                                                                                                                                                                                                                                 |   |           | (20,273   | )      |              |   | (19,126 | ) |
| Loans, net                                                                                                                                                                                                                                                |   |           | 971,828   |   |              |   | 1,001,584 |   |
| Premises and equipment, net                                                                                                                                                                                                                               |   |           | 5,392     |   |              |   | 5,290 |   |
| Accrued interest receivable                                                                                                                                                                                                                               |   |           | 6,255     |   |              |   | 5,502 |   |
| Bank-owned life insurance                                                                                                                                                                                                                                 |   |           | 25,618    |   |              |   | 25,400 |   |
| Other real estate owned                                                                                                                                                                                                                                   |   |           | 26,974    |   |              |   | 25,350 |   |
| Deferred tax assets                                                                                                                                                                                                                                       |   |           | 11,929    |   |              |   | 12,823 |   |
| Other assets                                                                                                                                                                                                                                              |   |           | 14,686    |   |              |   | 16,009 |   |
| Total assets                                                                                                                                                                                                                                              |   | $              | 1,691,325 |   |              | $      | 1,575,054 |   |
|                                                                                                                                                                                                                                                      |   |           |      |   |              |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                                                                                                      |   |           |      |   |              |   |   |   |
| LIABILITIES                                                                                                                                                                                                                                               |   |           |      |   |              |   |   |   |
| Deposits:                                                                                                                                                                                                                                                 |   |           |      |   |              |   |   |   |
| Noninterest-bearing demand                                                                                                                                                                                                                                |   | $              | 220,019   |   |              | $      | 206,412 |   |
| Interest-bearing demand                                                                                                                                                                                                                                   |   |           | 162,790   |   |              |   | 162,305 |   |
| Savings                                                                                                                                                                                                                                                   |   |           | 576,090   |   |              |   | 442,137 |   |
| Time of $100,000 or more                                                                                                                                                                                                                                  |   |           | 275,298   |   |              |   | 271,145 |   |
| Other time                                                                                                                                                                                                                                                |   |           | 121,757   |   |              |   | 164,618 |   |
| Total deposits                                                                                                                                                                                                                                            |   |           | 1,355,954 |   |              |   | 1,246,617 |   |
|                                                                                                                                                                                                                                                      |   |           |      |   |              |   |   |   |
| Federal funds purchased and securities sold under agreements to repurchase                                                                                                                                                                                |   |           | 64,385    |   |              |   | 40,342 |   |
| Other short-term borrowings                                                                                                                                                                                                                               |   |           | 2,081     |   |              |   | 2,553 |   |
| Subordinated notes                                                                                                                                                                                                                                        |   |           | 20,619    |   |              |   | 20,619 |   |
| Federal Home Loan Bank advances                                                                                                                                                                                                                           |   |           | 105,000   |   |              |   | 125,000 |   |
| Accrued expenses and other liabilities                                                                                                                                                                                                                    |   |           | 6,312     |   |              |   | 6,864 |   |
| Total liabilities                                                                                                                                                                                                                                         |   |           | 1,554,351 |   |              |   | 1,441,995 |   |
|                                                                                                                                                                                                                                                      |   |           |      |   |              |   |   |   |
| STOCKHOLDERS' EQUITY                                                                                                                                                                                                                                      |   |           |      |   |              |   |   |   |
| Preferred stock, $0.01 par value, with a liquidation preference of $1,000     per share; authorized 50,000,000 shares; 36,000 shares issued and     outstanding at March 31, 2010 and December 31, 2009 |   |           | 34,143    |   |              |   | 34,024 |   |
| Common stock, no par value; authorized 50,000,000 shares; 17,403,882 shares     issued and outstanding at March 31, 2010 and December 31, 2009                                                                                   |   |           | 3,000     |   |              |   | 3,000 |   |
| Additional paid-in capital                                                                                                                                                                                                                                |   |           | 34,387    |   |              |   | 34,387 |   |
| Retained earnings                                                                                                                                                                                                                                         |   |           | 68,729    |   |              |   | 65,959 |   |
| Accumulated other comprehensive (loss)                                                                                                                                                                                                                    |   |           | (3,285    | )      |              |   | (4,311 | ) |
| Total stockholders' equity                                                                                                                                                                                                                                |   |           | 136,974   |   |              |   | 133,059 |   |
| Total liabilities and stockholders' equity                                                                                                                                                                                                                |   | $              | 1,691,325 |   |              | $      | 1,575,054 |   |

----

Index

| West Bancorporation, Inc. and Subsidiary                                     |   |                         |   |   |   |   |
|------------------------------------------------------------------------------|--------|------------------------------|--------|--------|--------|--------|
| Consolidated Statements of Operations                                        |   |                         |   |   |   |   |
| (unaudited)                                                                  |   |                         |   |   |   |   |
|                                                                         |   | Three months ended March 31, |   |
| (in thousands, except per share data)                                        |   | 2010                         |   |   | 2009   |   |
| Interest income:                                                             |   |                         |   |   |   |   |
| Loans, including fees                                                        |   | $                            | 13,706 |   |   | $      | 15,022 |   |
| Securities:                                                                  |   |                         |   |   |   |   |   |   |
| U.S. Treasury, government agencies and corporations                          |   |                         | 745    |   |   |   | 612 |   |
| States and political subdivisions                                            |   |                         | 889    |   |   |   | 1,100 |   |
| Corporate notes and other investments                                        |   |                         | 342    |   |   |   | 125 |   |
| Federal funds sold and other short-term investments                          |   |                         | 147    |   |   |   | 103 |   |
| Total interest income                                                        |   |                         | 15,829 |   |   |   | 16,962 |   |
| Interest expense:                                                            |   |                         |   |   |   |   |   |   |
| Demand deposits                                                              |   |                         | 596    |   |   |   | 477 |   |
| Savings deposits                                                             |   |                         | 1,541  |   |   |   | 384 |   |
| Time deposits                                                                |   |                         | 1,903  |   |   |   | 4,404 |   |
| Federal funds purchased and securities sold under agreements to repurchase   |   |                         | 56     |   |   |   | 91 |   |
| Subordinated notes                                                           |   |                         | 363    |   |   |   | 363 |   |
| Long-term borrowings                                                         |   |                         | 1,236  |   |   |   | 1,306 |   |
| Total interest expense                                                       |   |                         | 5,695  |   |   |   | 7,025 |   |
| Net interest income                                                          |   |                         | 10,134 |   |   |   | 9,937 |   |
| Provision for loan losses                                                    |   |                         | 2,000  |   |   |   | 3,500 |   |
| Net interest income after provision for loan losses                          |   |                         | 8,134  |   |   |   | 6,437 |   |
| Noninterest income:                                                          |   |                         |   |   |   |   |   |   |
| Service charges on deposit accounts                                          |   |                         | 838    |   |   |   | 969 |   |
| Trust services                                                               |   |                         | 208    |   |   |   | 180 |   |
| Gains and fees on sales of residential mortgages                             |   |                         | 187    |   |   |   | 298 |   |
| Increase in cash value of bank-owned life insurance                          |   |                         | 218    |   |   |   | 182 |   |
| Gain from bank-owned life insurance                                          |   |                         | -      |   |   |   | 840 |   |
| Other income                                                                 |   |                         | 821    |   |   |   | 504 |   |
| Total noninterest income                                                     |   |                         | 2,272  |   |   |   | 2,973 |   |
| Investment securities gains (losses), net:                                   |   |                         |   |   |   |   |   |   |
| Total other-than-temporary impairment losses                                 |   |                         | -      |   |   |   | (1,415 | ) |
| Portion of loss recognized in other comprehensive income (loss) before taxes |   |                         | -      |   |   |   | - |   |
| Net impairment losses recognized in earnings                                 |   |                         | -      |   |   |   | (1,415 | ) |
| Realized securities gains, net                                               |   |                         | 46     |   |   |   | 1,453 |   |
| Investment securities gains, net                                             |   |                         | 46     |   |   |   | 38 |   |
| Noninterest expense:                                                         |   |                         |   |   |   |   |   |   |
| Salaries and employee benefits                                               |   |                         | 2,592  |   |   |   | 2,727 |   |
| Occupancy                                                                    |   |                         | 801    |   |   |   | 815 |   |
| Data processing                                                              |   |                         | 433    |   |   |   | 410 |   |
| FDIC insurance expense                                                       |   |                         | 562    |   |   |   | 453 |   |
| Other expenses                                                               |   |                         | 1,608  |   |   |   | 1,689 |   |
| Total noninterest expense                                                    |   |                         | 5,996  |   |   |   | 6,094 |   |
| Income before income taxes                                                   |   |                         | 4,456  |   |   |   | 3,354 |   |
| Income taxes                                                                 |   |                         | 1,117  |   |   |   | 417 |   |
| Income from continuing operations                                            |   |                         | 3,339  |   |   |   | 2,937 |   |

----

Index

| West Bancorporation, Inc. and Subsidiary                                 |   |                         |   |   |   |   |
|--------------------------------------------------------------------------|--------|------------------------------|--------|--------|--------|--------|
| Consolidated Statements of Operations (continued)                        |   |                         |   |   |   |   |
| (unaudited)                                                              |   |                         |   |   |   |   |
|                                                                     |   | Three months ended March 31, |   |
| (in thousands, except per share data)                                    |   | 2010                         |   |   | 2009   |   |
| Discontinued operations:                                                 |   |                         |   |   |   |   |
| Income from discontinued operations before income taxes                  |   |                         | -      |   |   |   | 7 |   |
| Income taxes                                                             |   |                         | -      |   |   |   | 3 |   |
| Income from discontinued operations                                      |   |                         | -      |   |   |   | 4 |   |
| Net income                                                               |   |                         | 3,339  |   |   |   | 2,941 |   |
| Preferred stock dividends and accretion of discount                      |   |                         | (569   | )      |   |   | (567 | ) |
| Net income available to common stockholders                              |   | $                            | 2,770  |   |   | $      | 2,374 |   |
|                                                                     |   |                         |   |   |   |   |   |   |
| Earnings per common share:                                               |   |                         |   |   |   |   |   |   |
| Basic and diluted earnings per common share from continuing operations   |   | $                            | 0.16   |   |   | $      | 0.14 |   |
| Basic and diluted earnings per common share from discontinued operations |   | $                            | -      |   |   | $      | - |   |
| Basic and diluted earnings per common share                              |   | $                            | 0.16   |   |   | $      | 0.14 |   |
| Cash dividends per common share                                          |   | $                            | -      |   |   | $      | 0.08 |   |

----

Index

| West Bancorporation, Inc. and Subsidiary                                                                                                       |   |                         |   |   |   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|--------|--------|--------|--------|
| Consolidated Statements of Comprehensive Income                                                                                                |   |                         |   |   |   |   |
| (unaudited)                                                                                                                                    |   |                         |   |   |   |   |
|                                                                                                                                           |   | Three months ended March 31, |   |
| (in thousands, except per share data)                                                                                                          |   | 2010                         |   |   | 2009   |   |
| Net income                                                                                                                                     |   | $                            | 3,339  |   |   | $      | 2,941 |   |
| Other comprehensive income:                                                                                                                    |   |                         |   |   |   |   |   |   |
| Securities for which a portion of an other-than-temporary impairment has been        recorded in earnings:  |   |                         |   |   |   |   |   |   |
| Unrealized holding gains arising during the period                                                                                             |   |                         | 19     |   |   |   | - |   |
| Loss recognized in earnings                                                                                                                    |   |                         | -      |   |   |   | - |   |
| Net unrealized gains on securities with other-than-temporary        impairment before tax benefit           |   |                         | 19     |   |   |   | - |   |
| Tax expense                                                                                                                                    |   |                         | (7     | )      |   |   | - |   |
| Net unrealized gains on securities with other-than-temporary     impairment, net of tax in other comprehensive income |   |                         | 12     |   |   |   | - |   |
| Other securities:                                                                                                                              |   |                         |   |   |   |   |   |   |
| Unrealized holding gains arising during the period                                                                                             |   |                         | 1,682  |   |   |   | 404 |   |
| Realized net (gains) recognized into net income                                                                                                |   |                         | (46    | )      |   |   | (1,453 | ) |
| Realized impairment losses reclassified into net income                                                                                        |   |                         | -      |   |   |   | 1,415 |   |
| Net unrealized gains on other securities before tax (expense) benefit                                                                          |   |                         | 1,636  |   |   |   | 366 |   |
|             Tax expense                                                            |   |                         | (622   | )      |   |   | (139 | ) |
| Net unrealized gains on other securities, net of tax in other     comprehensive income                                |   |                         | 1,014  |   |   |   | 227 |   |
|   Other comprehensive income                                                                                                              |   | $                            | 4,365  |   |   | $      | 3,168 |   |

----

Index

| West Bancorporation, Inc. and Subsidiary                                                                                                |   |           |   |   |        |   |   |                     |   |   |             |   |   |                                       |   |   |   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|-------------|--------|--------|--------------------------|--------|--------|------------------|--------|--------|--------------------------------------------|--------|--------|--------|--------|
| Consolidated Statements of Stockholders’ Equity                                                                                   |   |           |   |   |        |   |   |                     |   |   |             |   |   |                                       |   |   |   |   |
| (unaudited)                                                                                                                             |   |           |   |   |        |   |   |                     |   |   |             |   |   |                                       |   |   |   |   |
|                                                                                                                                    |   |           |   |   |        |   |   |                     |   |   |             |   |   |                                       |   |   |   |   |
| (in thousands, except per share data)                                                                                                   |   | PreferredStock |   |   | CommonStock |   |   | AdditionalPaid-InCapital |   |   | RetainedEarnings |   |   | AccumulatedOtherComprehensiveIncome (Loss) |   |   | Total  |   |
| Balance, January 1, 2009                                                                                                                |   | $              | 33,548 |   |        | $      | 3,000  |                     |   | $      | 34,452           |   |   | $                                          | 82,793 |   |   | $      | (3,730 | ) |   | $ | 150,063 |   |
| Net income                                                                                                                              |   |           | -      |   |        |   | -      |                     |   |   | -                |   |   |                                       | 2,941  |   |   |   | - |   |   |   | 2,941 |   |
| Other comprehensive income, unrealized gains on     securities, net of reclassification adjustment, net of tax |   |           | -      |   |        |   | -      |                     |   |   | -                |   |   |                                       | -      |   |   |   | 227 |   |   |   | 227 |   |
| Preferred stock discount accretion                                                                                                      |   |           | 117    |   |        |   | -      |                     |   |   | -                |   |   |                                       | (117   | )      |   |   | - |   |   |   | - |   |
| Preferred stock issuance costs                                                                                                          |   |           | -      |   |        |   | -      |                     |   |   | (63              | )      |   |                                       | -      |   |   |   | - |   |   |   | (63 | ) |
| Cash dividends declared, $0.08 per common share                                                                                         |   |           | -      |   |        |   | -      |                     |   |   | -                |   |   |                                       | (1,392 | )      |   |   | - |   |   |   | (1,392 | ) |
| Preferred stock dividends declared                                                                                                      |   |           | -      |   |        |   | -      |                     |   |   | -                |   |   |                                       | (450   | )      |   |   | - |   |   |   | (450 | ) |
| Balance, March 31, 2009                                                                                                                 |   | $              | 33,665 |   |        | $      | 3,000  |                     |   | $      | 34,389           |   |   | $                                          | 83,775 |   |   | $      | (3,503 | ) |   | $ | 151,326 |   |
|                                                                                                                                    |   |           |   |   |        |   |   |                     |   |   |             |   |   |                                       |   |   |   |   |   |   |   |   |   |   |
| Balance, January 1, 2010                                                                                                                |   | $              | 34,024 |   |        | $      | 3,000  |                     |   | $      | 34,387           |   |   | $                                          | 65,959 |   |   | $      | (4,311 | ) |   | $ | 133,059 |   |
| Net income                                                                                                                              |   |           | -      |   |        |   | -      |                     |   |   | -                |   |   |                                       | 3,339  |   |   |   | - |   |   |   | 3,339 |   |
| Other comprehensive income, unrealized gains on     securities, net of reclassification adjustment, net of tax |   |           | -      |   |        |   | -      |                     |   |   | -                |   |   |                                       | -      |   |   |   | 1,026 |   |   |   | 1,026 |   |
| Preferred stock discount accretion                                                                                                      |   |           | 119    |   |        |   | -      |                     |   |   | -                |   |   |                                       | (119   | )      |   |   | - |   |   |   | - |   |
| Preferred stock dividends declared                                                                                                      |   |           | -      |   |        |   | -      |                     |   |   | -                |   |   |                                       | (450   | )      |   |   | - |   |   |   | (450 | ) |
| Balance, March 31, 2010                                                                                                                 |   | $              | 34,143 |   |        | $      | 3,000  |                     |   | $      | 34,387           |   |   | $                                          | 68,729 |   |   | $      | (3,285 | ) |   | $ | 136,974 |   |

----

Index

| West Bancorporation, Inc. and Subsidiary                                                   |   |                         |    |   |   |   |
|--------------------------------------------------------------------------------------------|--------|------------------------------|---------|--------|--------|--------|
| Consolidated Statements of Cash Flows                                                      |   |                         |    |   |   |   |
| (unaudited)                                                                                |   |                         |    |   |   |   |
|                                                                                       |   | Three months ended March 31, |    |
| (in thousands)                                                                             |   | 2010                         |    |   | 2009   |   |
| Cash Flows from Operating Activities:                                                      |   |                         |    |   |   |   |
| Net income                                                                                 |   | $                            | 3,339   |   |   | $      | 2,941 |   |
| Adjustments to reconcile net income to net cash provided by operating activities:          |   |                         |    |   |   |   |   |   |
| Provision for loan losses                                                                  |   |                         | 2,000   |   |   |   | 3,500 |   |
| Net amortization and accretion                                                             |   |                         | 235     |   |   |   | 134 |   |
| (Gain) loss on disposition of premises and equipment                                       |   |                         | (5      | )      |   |   | 1 |   |
| Securities gains, net                                                                      |   |                         | (46     | )      |   |   | (1,453 | ) |
| Investment securities impairment losses                                                    |   |                         | -       |   |   |   | 1,415 |   |
| Proceeds from sales of loans held for sale                                                 |   |                         | 10,463  |   |   |   | 19,762 |   |
| Originations of loans held for sale                                                        |   |                         | (11,512 | )      |   |   | (19,727 | ) |
| Gain from bank-owned life insurance                                                        |   |                         | -       |   |   |   | (840 | ) |
| Increase in value of bank-owned life insurance                                             |   |                         | (218    | )      |   |   | (182 | ) |
| Depreciation                                                                               |   |                         | 150     |   |   |   | 167 |   |
| Deferred income taxes                                                                      |   |                         | 265     |   |   |   | (1,373 | ) |
| Other                                                                                      |   |                         | -       |   |   |   | (4 | ) |
| Change in assets and liabilities:                                                          |   |                         |    |   |   |   |   |   |
| Increase in accrued interest receivable                                                    |   |                         | (753    | )      |   |   | (454 | ) |
| Decrease in other assets                                                                   |   |                         | 1,283   |   |   |   | 675 |   |
| (Decrease) increase in accrued expenses and other liabilities                              |   |                         | (552    | )      |   |   | 1,610 |   |
| Net cash provided by operating activities - continuing operations                          |   |                         | 4,649   |   |   |   | 6,172 |   |
| Net cash provided by operating activities - discontinued operations                        |   |                         | -       |   |   |   | 51 |   |
| Net cash provided by operating activities                                                  |   |                         | 4,649   |   |   |   | 6,223 |   |
| Cash Flows from Investing Activities:                                                      |   |                         |    |   |   |   |   |   |
| Proceeds from sales, calls, and maturities of securities available for sale                |   |                         | 71,416  |   |   |   | 65,971 |   |
| Purchases of securities available for sale                                                 |   |                         | (50,092 | )      |   |   | (59,802 | ) |
| Purchases of Federal Home Loan Bank stock                                                  |   |                         | (224    | )      |   |   | (804 | ) |
| Proceeds from redemption of Federal Home Loan Bank stock                                   |   |                         | 824     |   |   |   | - |   |
| Net decrease (increase) in loans                                                           |   |                         | 21,812  |   |   |   | (23,675 | ) |
| Net proceeds from the sale of other real estate owned                                      |   |                         | 4,320   |   |   |   | 2,161 |   |
| Proceeds from sales of premises and equipment                                              |   |                         | 5       |   |   |   | - |   |
| Purchases of premises and equipment                                                        |   |                         | (252    | )      |   |   | (543 | ) |
| Proceeds of principal and earnings from bank-owned life insurance                          |   |                         | -       |   |   |   | 1,493 |   |
| Net cash provided by (used in) investing activities - continuing operations                |   |                         | 47,809  |   |   |   | (15,199 | ) |
| Net cash provided by investing activities - discontinued operations                        |   |                         | -       |   |   |   | - |   |
| Net cash provided by (used in) investing activities                                        |   |                         | 47,809  |   |   |   | (15,199 | ) |
| Cash Flows from Financing Activities:                                                      |   |                         |    |   |   |   |   |   |
| Net increase in deposits                                                                   |   |                         | 109,337 |   |   |   | 39,091 |   |
| Net increase in federal funds purchased and securities sold under agreements to repurchase |   |                         | 24,043  |   |   |   | 16,967 |   |
| Net decrease in other short-term borrowings                                                |   |                         | (472    | )      |   |   | (195 | ) |
| Principal payments on long-term borrowings                                                 |   |                         | (20,000 | )      |   |   | - |   |
| Common stock cash dividends                                                                |   |                         | -       |   |   |   | (1,392 | ) |
| Preferred stock dividends paid                                                             |   |                         | (450    | )      |   |   | (225 | ) |
| Preferred stock issuance costs                                                             |   |                         | -       |   |   |   | (63 | ) |
| Net cash provided by financing activities - continuing operations                          |   |                         | 112,458 |   |   |   | 54,183 |   |
| Net cash provided by financing activities - discontinued operations                        |   |                         | -       |   |   |   | - |   |
| Net cash provided by financing activities                                                  |   |                         | 112,458 |   |   |   | 54,183 |   |

----

Index

| West Bancorporation, Inc. and Subsidiary                              |   |                         |    |   |   |   |
|-----------------------------------------------------------------------|--------|------------------------------|---------|--------|--------|--------|
| Consolidated Statements of Cash Flows (continued)                     |   |                         |    |   |   |   |
| (unaudited)                                                           |   |                         |    |   |   |   |
|                                                                  |   | Three months ended March 31, |    |
| (in thousands)                                                        |   | 2010                         |    |   | 2009   |   |
| Net increase in cash and cash equivalents                             |   |                         | 164,916 |   |   |   | 45,207 |   |
| Cash and Cash Equivalents:                                            |   |                         |    |   |   |   |   |   |
| Beginning                                                             |   |                         | 131,495 |   |   |   | 196,969 |   |
| Ending                                                                |   | $                            | 296,411 |   |   | $      | 242,176 |   |
|                                                                  |   |                         |    |   |   |   |   |   |
|                                                                  |   |                         |    |   |   |   |   |   |
| Supplemental Disclosures of Cash Flow Information                     |   |                         |    |   |   |   |   |   |
| Cash payments for:                                                    |   |                         |    |   |   |   |   |   |
| Interest                                                              |   | $                            | 5,831   |   |   | $      | 6,720 |   |
| Income taxes                                                          |   |                         | -       |   |   |   | 190 |   |
| Supplemental Disclosure of Noncash Investing and Financing Activities |   |                         |    |   |   |   |   |   |
| Transfer of loans to other real estate owned                          |   | $                            | 5,944   |   |   | $      | 1,069 |   |

----

Index

West

----

Index

|                                                    |   | Three Months Ended |   |
|---------------------------------------------------------|--------|--------------------|--------|
|                                                    |   | March 31, 2009     |   |
| Revenue from discontinued operations:                   |   |               |   |
| Interest income                                         |   | $                  | -      |   |
| Interest expense                                        |   |               | -      |   |
| Net interest income                                     |   |               | -      |   |
| Noninterest income                                      |   |               | 1,459  |   |
| Noninterest expense                                     |   |               | 1,452  |   |
| Income from discontinued operations before income taxes |   |               | 7      |   |
| Income taxes                                            |   |               | 3      |   |
| Income from discontinued operations                     |   | $                  | 4      |   |

----

Index

|                                      |   | March 31, 2010    |    |
|-------------------------------------------|--------|-------------------|---------|
|                                      |   | AmortizedCost     |    |   | GrossUnrealizedGains |   |   | GrossUnrealized(Losses) |   |   | FairValue |   |
| U.S. government agencies and corporations |   | $                 | 175,772 |   |   | $ | 224 |   |   | $ | (211 | ) |   | $ | 175,785 |   |
| State and political subdivisions          |   |              | 84,046  |   |   |   | 934 |   |   |   | (1,279 | ) |   |   | 83,701 |   |
| Mortgage-backed securities (1)            |   |              | 50,428  |   |   |   | 257 |   |   |   | (112 | ) |   |   | 50,573 |   |
| Trust preferred securities                |   |              | 6,929   |   |   |   | - |   |   |   | (4,730 | ) |   |   | 2,199 |   |
| Corporate notes and other investments     |   |              | 8,784   |   |   |   | 25 |   |   |   | (407 | ) |   |   | 8,402 |   |
|                                      |   | $                 | 325,959 |   |   | $ | 1,440 |   |   | $ | (6,739 | ) |   | $ | 320,660 |   |
|                                      |   |              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                      |   | December 31, 2009 |    |
|                                      |   | AmortizedCost     |    |   | GrossUnrealizedGains |   |   | GrossUnrealized(Losses) |   |   | FairValue |   |
| U.S. government agencies and corporations |   | $                 | 177,940 |   |   | $ | 190 |   |   | $ | (240 | ) |   | $ | 177,890 |   |
| State and political subdivisions          |   |              | 88,831  |   |   |   | 823 |   |   |   | (1,719 | ) |   |   | 87,935 |   |
| Mortgage-backed securities (1)            |   |              | 64,897  |   |   |   | 141 |   |   |   | (460 | ) |   |   | 64,578 |   |
| Trust preferred securities                |   |              | 6,926   |   |   |   | - |   |   |   | (4,859 | ) |   |   | 2,067 |   |
| Corporate notes and other investments     |   |              | 8,839   |   |   |   | 28 |   |   |   | (859 | ) |   |   | 8,008 |   |
|                                      |   | $                 | 347,433 |   |   | $ | 1,182 |   |   | $ | (8,137 | ) |   | $ | 340,478 |   |

| (1)   | All mortgage-backed securities consist of residential mortgage pass-through securities guaranteed by GNMA or issued by FNMA, and real estate mortgage investment conduits guaranteed by FHLMC or GNMA. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                   |   | March 31, 2010 |    |
|----------------------------------------|--------|----------------|---------|
|                                   |   | AmortizedCost  |    |   | FairValue |   |
| Due in one year or less                |   | $              | 24,516  |   |   | $ | 24,581 |   |
| Due after one year through five years  |   |           | 150,199 |   |   |   | 149,811 |   |
| Due after five years through ten years |   |           | 52,336  |   |   |   | 52,528 |   |
| Due after ten years                    |   |           | 48,480  |   |   |   | 43,167 |   |
|                                   |   |           | 275,531 |   |   |   | 270,087 |   |
| Mortgage-backed securities             |   |           | 50,428  |   |   |   | 50,573 |   |
|                                   |   | $              | 325,959 |   |   | $ | 320,660 |   |

----

Index

|                  |   | Three months ended March 31, |   |
|-----------------------|--------|------------------------------|--------|
|                  |   | 2010                         |   |   | 2009 |   |
| Proceeds from sales   |   | $                            | 15,450 |   |   | $ | 54,343 |   |
| Gross gains on sales  |   |                         | 46     |   |   |   | 1,453 |   |
| Gross losses on sales |   |                         | -      |   |   |   | - |   |

|                                      |   | March 31, 2010      |    |
|-------------------------------------------|--------|---------------------|---------|
|                                      |   | Less than 12 months |    |   | 12 months or longer |   |   | Total |   |
|                                      |   | FairValue           |    |   | GrossUnrealized(Losses) |   |   | FairValue |   |   | GrossUnrealized(Losses) |   |   | FairValue |   |   | GrossUnrealized(Losses) |   |
| U.S. government agencies and corporations |   | $                   | 89,808  |   |   | $ | (211 | ) |   | $ | - |   |   | $ | - |   |   | $ | 89,808 |   |   | $ | (211 | ) |
| State and political subdivisions          |   |                | 26,112  |   |   |   | (822 | ) |   |   | 9,436 |   |   |   | (457 | ) |   |   | 35,548 |   |   |   | (1,279 | ) |
| Mortgage-backed securities                |   |                | 39,405  |   |   |   | (112 | ) |   |   | - |   |   |   | - |   |   |   | 39,405 |   |   |   | (112 | ) |
| Trust preferred securities                |   |                | -       |   |   |   | - |   |   |   | 2,199 |   |   |   | (4,730 | ) |   |   | 2,199 |   |   |   | (4,730 | ) |
| Corporate notes and other investments     |   |                | -       |   |   |   | - |   |   |   | 3,580 |   |   |   | (407 | ) |   |   | 3,580 |   |   |   | (407 | ) |
|                                      |   | $                   | 155,325 |   |   | $ | (1,145 | ) |   | $ | 15,215 |   |   | $ | (5,594 | ) |   | $ | 170,540 |   |   | $ | (6,739 | ) |
|                                      |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                      |   | December 31, 2009   |    |
|                                      |   | Less than 12 months |    |   | 12 months or longer |   |   | Total |   |
|                                      |   | FairValue           |    |   | GrossUnrealized(Losses) |   |   | FairValue |   |   | GrossUnrealized(Losses) |   |   | FairValue |   |   | GrossUnrealized(Losses) |   |
| U.S. government agencies and corporations |   | $                   | 42,535  |   |   | $ | (240 | ) |   | $ | - |   |   | $ | - |   |   | $ | 42,535 |   |   | $ | (240 | ) |
| State and political subdivisions          |   |                | 31,433  |   |   |   | (1,159 | ) |   |   | 11,652 |   |   |   | (560 | ) |   |   | 43,085 |   |   |   | (1,719 | ) |
| Mortgage-backed securities                |   |                | 47,644  |   |   |   | (460 | ) |   |   | - |   |   |   | - |   |   |   | 47,644 |   |   |   | (460 | ) |
| Trust preferred securities                |   |                | -       |   |   |   | - |   |   |   | 2,067 |   |   |   | (4,859 | ) |   |   | 2,067 |   |   |   | (4,859 | ) |
| Corporate notes and other investments     |   |                | -       |   |   |   | - |   |   |   | 3,128 |   |   |   | (859 | ) |   |   | 3,128 |   |   |   | (859 | ) |
|                                      |   | $                   | 121,612 |   |   | $ | (1,859 | ) |   | $ | 16,847 |   |   | $ | (6,278 | ) |   | $ | 138,459 |   |   | $ | (8,137 | ) |

----

Index

|                                                                              |   | Three Months EndedMarch 31, 2010 |   |
|-----------------------------------------------------------------------------------|--------|----------------------------------|--------|
| Balance at beginning of period                                                    |   | $                                | 310    |   |
| Current period credit loss recognized in earnings                                 |   |                             | -      |   |
| Reductions for securities sold during the period                                  |   |                             | -      |   |
| Reductions for securities where there is an intent to sell or requirement to sell |   |                             | -      |   |
| Reductions for increases in cash flows expected to be collected                   |   |                             | -      |   |
| Balance as of March 31, 2010                                                      |   | $                                | 310    |   |

|                                                                                                                                                                                                                                               |   | March 31, 2010 |   |   | December 31, 2009 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|-------------------|--------|
| Accumulated other comprehensive (loss):                                                                                                                                                                                                            |   |           |   |   |              |   |
| Unrealized (losses) on available for sale securities for which a portion of     other-than-temporary impairment has been recorded in earnings, net     of tax of $1,306 and $1,313, respectively |   | $              | (2,130 | )      |              | $      | (2,142 | ) |
| Unrealized (losses) on available for sale securities which are not     other-than-temporarily impaired, net of tax of $708 and $1,330, respectively                                                                       |   |           | (1,155 | )      |              |   | (2,169 | ) |
|                                                                                                                                                                                                                                               |   | $              | (3,285 | )      |              | $      | (4,311 | ) |

|                                                |   | March 31, 2010 |   |   | December 31, 2009 |   |
|-----------------------------------------------------|--------|----------------|--------|--------|-------------------|--------|
| Impaired loans without an allowance                 |   | $              | 20,432 |   |              | $      | 16,809 |   |
| Impaired loans with an allowance                    |   |           | 22,674 |   |              |   | 24,745 |   |
| Total impaired loans                                |   | $              | 43,106 |   |              | $      | 41,554 |   |
| Allowance for loan losses related to impaired loans |   | $              | 4,782  |   |              | $      | 4,935 |   |

----

Index

|                                         |   | March 31, 2010 |   |   | December 31, 2009 |   |
|----------------------------------------------|--------|----------------|--------|--------|-------------------|--------|
| Nonaccrual loans                             |   | $              | 11,450 |   |              | $      | 12,350 |   |
| Restructured loans                           |   |           | 16,554 |   |              |   | 12,817 |   |
| Other impaired loans still accruing interest |   |           | 15,102 |   |              |   | 16,387 |   |
| Total impaired loans                         |   | $              | 43,106 |   |              | $      | 41,554 |   |

|                            |   | Three Months Ended March 31, |   |
|---------------------------------|--------|------------------------------|--------|
|                            |   | 2010                         |   |   | 2009 |   |
| Balance at beginning of period  |   | $                            | 19,126 |   |   | $ | 15,441 |   |
| Charge-offs                     |   |                         | (1,022 | ) |   |   | (1,187 | ) |
| Recoveries                      |   |                         | 169    |   |   |   | 261 |   |
| Net charge-offs                 |   |                         | (853   | ) |   |   | (926 | ) |
| Provision charged to operations |   |                         | 2,000  |   |   |   | 3,500 |   |
| Balance at end of period        |   | $                            | 20,273 |   |   | $ | 18,015 |   |

----

Index

|                                      |   | March 31, 2010    |    |
|-------------------------------------------|--------|-------------------|---------|
| Description                               |   | Total             |    |   | Quoted Pricesin Active Marketsfor Identical Assets(Level 1) |   |   | Significant OtherObservable Inputs(Level 2) |   |   | SignificantUnobservableInputs (Level 3) |   |
| Assets:                                   |   |              |    |   |   |   |   |   |   |   |   |   |
| U.S. government agencies and corporations |   | $                 | 175,785 |   |   | $ | - |   |   | $ | 175,785 |   |   | $ | - |   |
| State and political subdivisions          |   |              | 83,701  |   |   |   | - |   |   |   | 83,701 |   |   |   | - |   |
| Mortgage-backed securities                |   |              | 50,573  |   |   |   | - |   |   |   | 50,573 |   |   |   | - |   |
| Trust preferred securities                |   |              | 2,199   |   |   |   | - |   |   |   | 1,044 |   |   |   | 1,155 |   |
| Corporate notes and other investments     |   |              | 8,402   |   |   |   | - |   |   |   | 8,402 |   |   |   | - |   |
| Total                                     |   | $                 | 320,660 |   |   | $ | - |   |   | $ | 319,505 |   |   | $ | 1,155 |   |
|                                      |   |              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                      |   |              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                      |   | December 31, 2009 |    |
| Description                               |   | Total             |    |   | Quoted Pricesin Active Marketsfor Identical Assets(Level 1) |   |   | Significant OtherObservable Inputs(Level 2) |   |   | SignificantUnobservableInputs (Level 3) |   |
| Assets:                                   |   |              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. government agencies and corporations |   | $                 | 177,890 |   |   | $ | - |   |   | $ | 177,890 |   |   | $ | - |   |
| State and political subdivisions          |   |              | 87,935  |   |   |   | - |   |   |   | 87,935 |   |   |   | - |   |
| Mortgage-backed securities                |   |              | 64,578  |   |   |   | - |   |   |   | 64,578 |   |   |   | - |   |
| Trust preferred securities                |   |              | 2,067   |   |   |   | - |   |   |   | 931 |   |   |   | 1,136 |   |
| Corporate notes and other investments     |   |              | 8,008   |   |   |   | - |   |   |   | 8,008 |   |   |   | - |   |
| Total                                     |   | $                 | 340,478 |   |   | $ | - |   |   | $ | 339,342 |   |   | $ | 1,136 |   |

|                                   |   | SecuritiesAvailable for Sale |   |
|----------------------------------------|--------|------------------------------|--------|
| Beginning balance                      |   | $                            | 1,136  |   |
| Transfer into level 3                  |   |                         | -      |   |
| Total gains or (losses):               |   |                         |   |   |
| Included in earnings                   |   |                         | -      |   |
| Included in other comprehensive income |   |                         | 19     |   |
| Principal payments                     |   |                         | -      |   |
| Ending balance                         |   | $                            | 1,155  |   |

----

Index

|                    |   | March 31, 2010    |   |
|-------------------------|--------|-------------------|--------|
| Description             |   | Total             |   |   | Quoted Prices in Active Markets for Identical Assets (Level 1) |   |   | Significant Other Observable Inputs (Level 2) |   |   | Significant Unobservable Inputs (Level 3) |   |
| Assets:                 |   |              |   |   |   |   |   |   |   |   |   |   |
| Loans                   |   | $                 | 17,892 |   |   | $ | - |   |   | $ | - |   |   | $ | 17,892 |   |
| Other real estate owned |   |              | 26,974 |   |   |   | - |   |   |   | - |   |   |   | 26,974 |   |
| Total                   |   | $                 | 44,866 |   |   | $ | - |   |   | $ | - |   |   | $ | 44,866 |   |
|                    |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                    |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                    |   | December 31, 2010 |   |
| Description             |   | Total             |   |   | Quoted Prices in Active Markets for Identical Assets (Level 1) |   |   | Significant Other Observable Inputs (Level 2) |   |   | Significant Unobservable Inputs (Level 3) |   |
| Assets:                 |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                   |   | $                 | 19,810 |   |   | $ | - |   |   | $ | - |   |   | $ | 19,810 |   |
| Other real estate owned |   |              | 25,350 |   |   |   | - |   |   |   | - |   |   |   | 25,350 |   |
| Total                   |   | $                 | 45,160 |   |   | $ | - |   |   | $ | - |   |   | $ | 45,160 |   |

----

Index

|                                                                                                    |   | March 31, 2010 |      |   | December 31, 2009     |   |
|---------------------------------------------------------------------------------------------------------|--------|----------------|-----------|--------|-----------------------|--------|
|                                                                                                    |   | CarryingAmount |      |   | ApproximateFair Value |   |   | CarryingAmount |   |   | ApproximateFair Value |   |
| Financial assets:                                                                                       |   |           |      |   |                  |   |   |   |   |   |   |   |
| Cash and due from banks                                                                                 |   | $              | 26,786    |   |                  | $      | 26,786 |   |   | $ | 27,923 |   |   | $ | 27,923 |   |
| Federal funds sold and other     short-term investments                        |   |           | 269,625   |   |                  |   | 269,625 |   |   |   | 103,572 |   |   |   | 103,572 |   |
| Securities available for sale                                                                           |   |           | 320,660   |   |                  |   | 320,660 |   |   |   | 340,478 |   |   |   | 340,478 |   |
| Federal Home Loan Bank stock                                                                            |   |           | 10,191    |   |                  |   | 10,191 |   |   |   | 10,791 |   |   |   | 10,791 |   |
| Loans held for sale                                                                                     |   |           | 1,381     |   |                  |   | 1,386 |   |   |   | 332 |   |   |   | 332 |   |
| Loans, net                                                                                              |   |           | 971,828   |   |                  |   | 974,561 |   |   |   | 1,001,584 |   |   |   | 1,006,217 |   |
| Accrued interest receivable                                                                             |   |           | 6,255     |   |                  |   | 6,255 |   |   |   | 5,502 |   |   |   | 5,502 |   |
| Financial liabilities:                                                                                  |   |           |      |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                                                |   |           | 1,355,954 |   |                  |   | 1,359,366 |   |   |   | 1,246,617 |   |   |   | 1,250,163 |   |
| Federal funds purchased and securities     sold under agreements to repurchase |   |           | 64,385    |   |                  |   | 64,385 |   |   |   | 40,342 |   |   |   | 40,342 |   |
| Other short-term borrowings                                                                             |   |           | 2,081     |   |                  |   | 2,081 |   |   |   | 2,553 |   |   |   | 2,553 |   |
| Accrued interest payable                                                                                |   |           | 1,620     |   |                  |   | 1,620 |   |   |   | 1,756 |   |   |   | 1,756 |   |
| Subordinated notes                                                                                      |   |           | 20,619    |   |                  |   | 14,362 |   |   |   | 20,619 |   |   |   | 14,387 |   |
| FHLB advances                                                                                           |   |           | 105,000   |   |                  |   | 104,147 |   |   |   | 125,000 |   |   |   | 122,177 |   |
| Off-balance-sheet financial instruments:                                                                |   |           |      |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Commitments to extend credit                                                                            |   |           | -         |   |                  |   | - |   |   |   | - |   |   |   | - |   |
| Standby letters of credit                                                                               |   |           | -         |   |                  |   | - |   |   |   | - |   |   |   | - |   |

----

Index

|                                                           |   | Three Months Ended March 31, |   |
|----------------------------------------------------------------|--------|------------------------------|--------|
|                                                           |   | 2010                         |   |   | 2009 |   |
| Income from continuing operations                              |   | $                            | 3,339  |   |   | $ | 2,937 |   |
| Income from discontinued operations                            |   |                         | -      |   |   |   | 4 |   |
| Net income                                                     |   |                         | 3,339  |   |   |   | 2,941 |   |
| Preferred stock dividends                                      |   |                         | (450   | ) |   |   | (450 | ) |
| Preferred stock discount accretion                             |   |                         | (119   | ) |   |   | (117 | ) |
| Net income available to common stockholders                    |   | $                            | 2,770  |   |   | $ | 2,374 |   |
|                                                           |   |                         |   |   |   |   |   |   |
| Weighted average common shares outstanding                     |   |                         | 17,404 |   |   |   | 17,404 |   |
| Common stock warrant*                                          |   |                         | -      |   |   |   | - |   |
| Diluted weighted average common shares outstanding             |   |                         | 17,404 |   |   |   | 17,404 |   |
|                                                           |   |                         |   |   |   |   |   |   |
| Basic earnings per common share from continuing operations     |   | $                            | 0.16   |   |   | $ | 0.14 |   |
| Basic earnings per common share from discontinued operations   |   | $                            | -      |   |   | $ | - |   |
| Basic earnings per common share                                |   | $                            | 0.16   |   |   | $ | 0.14 |   |
|                                                           |   |                         |   |   |   |   |   |   |
| Diluted earnings per common share from continuing operations   |   | $                            | 0.16   |   |   | $ | 0.14 |   |
| Diluted earnings per common share from discontinued operations |   | $                            | -      |   |   | $ | - |   |
| Diluted earnings per common share                              |   | $                            | 0.16   |   |   | $ | 0.14 |   |

|                                                   |   | March 31, 2010 |   |   | December 31, 2009 |   |
|--------------------------------------------------------|--------|----------------|--------|--------|-------------------|--------|
| Allowance for loan losses                              |   | $              | 7,704  |   |              | $      | 7,268 |   |
| Intangibles                                            |   |           | 2,454  |   |              |   | 2,517 |   |
| Net unrealized losses on securities available for sale |   |           | 2,014  |   |              |   | 2,643 |   |
| Equity security impairment                             |   |           | 144    |   |              |   | 144 |   |
| Alternative minimum tax credit and other credits       |   |           | 415    |   |              |   | 909 |   |
| State net operating loss carryforward                  |   |           | 318    |   |              |   | 296 |   |
| Capital loss carryforward                              |   |           | 3,298  |   |              |   | 3,269 |   |
| Other                                                  |   |           | (686   | )      |              |   | (514 | ) |
| Net deferred tax assets before valuation allowance     |   |           | 15,661 |   |              |   | 16,532 |   |
| Valuation allowance                                    |   |           | (3,732 | )      |              |   | (3,709 | ) |
| Net deferred tax assets                                |   | $              | 11,929 |   |              | $      | 12,823 |   |

----

Index

|                         |   | March 31, 2010 |    |   | December 31, 2009 |   |
|------------------------------|--------|----------------|---------|--------|-------------------|--------|
| Commitments to extend credit |   | $              | 195,102 |   |              | $      | 202,217 |   |
| Standby letters of credit    |   |           | 17,602  |   |              |   | 18,350 |   |
|                         |   | $              | 212,704 |   |              | $      | 220,567 |   |

Item

----

Index

----

Index

|                                         |   | Three Months Ended March 31, |      |
|----------------------------------------------|--------|------------------------------|-----------|
|                                         |   | 2010                         |      |   | 2009 |   |   | Change |   |   | Change % |   |
| Income from continuing operations            |   | $                            | 3,339     |   |   | $ | 2,937 |   |   | $ | 402 |   |   |   | 13.7 | % |
| Income from discontinued operations          |   |                         | -         |   |   |   | 4 |   |   |   | (4 | ) |   |   | -100.0 | % |
| Net income                                   |   | $                            | 3,339     |   |   | $ | 2,941 |   |   | $ | 398 |   |   |   | 13.5 | % |
|                                         |   |                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average assets                               |   | $                            | 1,636,430 |   |   | $ | 1,582,010 |   |   | $ | 54,420 |   |   |   | 3.4 | % |
| Average stockholders' equity                 |   |                         | 134,854   |   |   |   | 152,138 |   |   |   | (17,284 | ) |   |   | -11.4 | % |
|                                         |   |                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Return on average assets                     |   |                         | 0.83      | % |   |   | 0.75 | % |   |   | 0.08 | % |   |   |   |   |
|                                         |   |                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Return on average equity                     |   |                         | 10.04     | % |   |   | 7.84 | % |   |   | 2.20 | % |   |   |   |   |
|                                         |   |                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Efficiency ratio                             |   |                         | 46.05     | % |   |   | 45.03 | % |   |   | 1.02 | % |   |   |   |   |
|                                         |   |                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividend payout ratio                        |   | NM                           |      |   |   | 47.34 | % |   | NM |   |   |   |   |   |
|                                         |   |                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average equity to average assets ratio       |   |                         | 8.24      | % |   |   | 9.62 | % |   |   | -1.38 | % |   |   |   |   |
|                                         |   |                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity to assets ratio - end of period       |   |                         | 8.10      | % |   |   | 9.38 | % |   |   | -1.28 | % |   |   |   |   |
|                                         |   |                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tangible common equity ratio - end of period |   |                         | 6.07      | % |   |   | 6.50 | % |   |   | -0.43 | % |   |   |   |   |

|   | Return on average assets – annualized net income divided by average assets. |
|--------|-----------------------------------------------------------------------------------|

|   | Return on average equity – annualized net income divided by average stockholders’ equity. |
|--------|-------------------------------------------------------------------------------------------------------|

|   | Efficiency ratio – noninterest expense (excluding discontinued operations) divided by noninterest income (excluding securities gains and net impairment losses and discontinued operations) plus taxable equivalent net interest income. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Dividend payout ratio – dividends paid divided by net income. |
|--------|---------------------------------------------------------------------|

|   | Equity to assets ratio – equity divided by assets. |
|--------|----------------------------------------------------------|

|   | Tangible common equity ratio – common equity less intangible assets divided by tangible assets. |
|--------|-------------------------------------------------------------------------------------------------------|

|   | NM – not meaningful. |
|--------|----------------------------|

----

Index

|                                                                           |   | Average Balance |      |   | Interest Income/Expense |   |      | Yield/Rate |   |
|--------------------------------------------------------------------------------|--------|-----------------|-----------|--------|-------------------------|--------|-----------|------------|--------|
|                                                                           |   | 2010            |      |   | 2009                    |   |      | Change     |   |   | Change-% |   |   | 2010 |   |   | 2009 |   |   | Change |   |   | Change-% |   |   | 2010 |   |   | 2009 |   |   | Change |   |
| Interest-earning assets:                                                       |   |            |      |   |                    |   |      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans:                                                                         |   |            |      |   |                    |   |      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                                     |   | $               | 350,876   |   |                    | $      | 396,806   |       |   | $ | (45,930 | ) |   |   | -11.57 | % |   | $ | 4,283 |   |   | $ | 4,751 |   |   | $ | (468 | ) |   |   | -9.85 | % |   |   | 4.95 | % |   |   | 4.86 | % |   |   | 0.09 | % |
| Real estate                                                                    |   |            | 643,943   |   |                    |   | 707,597   |       |   |   | (63,654 | ) |   |   | -9.00 | % |   |   | 9,495 |   |   |   | 10,252 |   |   |   | (757 | ) |   |   | -7.38 | % |   |   | 5.98 | % |   |   | 5.88 | % |   |   | 0.10 | % |
| Consumer and other                                                             |   |            | 10,406    |   |                    |   | 11,734    |       |   |   | (1,328 | ) |   |   | -11.32 | % |   |   | 131 |   |   |   | 184 |   |   |   | (53 | ) |   |   | -28.80 | % |   |   | 5.11 | % |   |   | 6.34 | % |   |   | -1.23 | % |
| Total loans                                                                    |   |            | 1,005,225 |   |                    |   | 1,116,137 |       |   |   | (110,912 | ) |   |   | -9.94 | % |   |   | 13,909 |   |   |   | 15,187 |   |   |   | (1,278 | ) |   |   | -8.42 | % |   |   | 5.61 | % |   |   | 5.52 | % |   |   | 0.09 | % |
|                                                                           |   |            |      |   |                    |   |      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment securities:                                                         |   |            |      |   |                    |   |      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                                        |   |            | 252,041   |   |                    |   | 86,438    |       |   |   | 165,603 |   |   |   | 191.59 | % |   |   | 1,110 |   |   |   | 831 |   |   |   | 279 |   |   |   | 33.57 | % |   |   | 1.76 | % |   |   | 3.85 | % |   |   | -2.09 | % |
| Tax-exempt                                                                     |   |            | 82,467    |   |                    |   | 95,163    |       |   |   | (12,696 | ) |   |   | -13.34 | % |   |   | 1,277 |   |   |   | 1,464 |   |   |   | (187 | ) |   |   | -12.77 | % |   |   | 6.19 | % |   |   | 6.16 | % |   |   | 0.03 | % |
| Total investment securities                                                    |   |            | 334,508   |   |                    |   | 181,601   |       |   |   | 152,907 |   |   |   | 84.20 | % |   |   | 2,387 |   |   |   | 2,295 |   |   |   | 92 |   |   |   | 4.01 | % |   |   | 2.85 | % |   |   | 5.06 | % |   |   | -2.21 | % |
|                                                                           |   |            |      |   |                    |   |      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal funds sold and     short-term investments     |   |            | 197,216   |   |                    |   | 193,884   |       |   |   | 3,332 |   |   |   | 1.72 | % |   |   | 147 |   |   |   | 103 |   |   |   | 44 |   |   |   | 42.72 | % |   |   | 0.30 | % |   |   | 0.22 | % |   |   | 0.08 | % |
| Total interest-earning assets                                                  |   | $               | 1,536,949 |   |                    | $      | 1,491,622 |       |   | $ | 45,327 |   |   |   | 3.04 | % |   |   | 16,443 |   |   |   | 17,585 |   |   |   | (1,142 | ) |   |   | -6.49 | % |   |   | 4.34 | % |   |   | 4.78 | % |   |   | -0.44 | % |
|                                                                           |   |            |      |   |                    |   |      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                                  |   |            |      |   |                    |   |      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits:                                                                      |   |            |      |   |                    |   |      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Checking with interest, savings     and money markets |   | $               | 666,939   |   |                    | $      | 341,464   |       |   | $ | 325,475 |   |   |   | 95.32 | % |   |   | 2,137 |   |   |   | 861 |   |   |   | 1,276 |   |   |   | 148.20 | % |   |   | 1.30 | % |   |   | 1.02 | % |   |   | 0.28 | % |
| Time deposits                                                                  |   |            | 419,872   |   |                    |   | 653,899   |       |   |   | (234,027 | ) |   |   | -35.79 | % |   |   | 1,903 |   |   |   | 4,404 |   |   |   | (2,501 | ) |   |   | -56.79 | % |   |   | 1.84 | % |   |   | 2.73 | % |   |   | -0.89 | % |
| Total deposits                                                                 |   |            | 1,086,811 |   |                    |   | 995,363   |       |   |   | 91,448 |   |   |   | 9.19 | % |   |   | 4,040 |   |   |   | 5,265 |   |   |   | (1,225 | ) |   |   | -23.27 | % |   |   | 1.51 | % |   |   | 2.15 | % |   |   | -0.64 | % |
| Other borrowed funds                                                           |   |            | 197,099   |   |                    |   | 242,264   |       |   |   | (45,165 | ) |   |   | -18.64 | % |   |   | 1,655 |   |   |   | 1,760 |   |   |   | (105 | ) |   |   | -5.97 | % |   |   | 3.41 | % |   |   | 2.95 | % |   |   | 0.46 | % |
| Total interest-bearing liabilities                                             |   | $               | 1,283,910 |   |                    | $      | 1,237,627 |       |   | $ | 46,283 |   |   |   | 3.74 | % |   |   | 5,695 |   |   |   | 7,025 |   |   |   | (1,330 | ) |   |   | -18.93 | % |   |   | 1.80 | % |   |   | 2.30 | % |   |   | -0.50 | % |
|                                                                           |   |            |      |   |                    |   |      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tax-equivalent net interest income                                             |   |            |      |   |                    |   |      |       |   |   |   |   |   |   | $ | 10,748 |   |   | $ | 10,560 |   |   | $ | 188 |   |   |   | 1.78 | % |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest spread                                                            |   |            |      |   |                    |   |      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 2.54 | % |   |   | 2.48 | % |   |   | 0.06 | % |
| Net interest margin                                                            |   |            |      |   |                    |   |      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 2.84 | % |   |   | 2.87 | % |   |   | -0.03 | % |

----

Index

----

Index

|                                                                                                 |   | Three Months Ended March 31, |      |
|------------------------------------------------------------------------------------------------------|--------|------------------------------|-----------|
|                                                                                                 |   | 2010                         |      |   | 2009 |   |   | Change |   |
| Balance at beginning of period                                                                       |   | $                            | 19,126    |   |   | $ | 15,441 |   |   | $ | 3,685 |   |
| Charge-offs                                                                                          |   |                         | (1,022    | ) |   |   | (1,187 | ) |   |   | 165 |   |
| Recoveries                                                                                           |   |                         | 169       |   |   |   | 261 |   |   |   | (92 | ) |
| Net charge-offs                                                                                      |   |                         | (853      | ) |   |   | (926 | ) |   |   | 73 |   |
| Provision charged to operations                                                                      |   |                         | 2,000     |   |   |   | 3,500 |   |   |   | (1,500 | ) |
| Balance at end of period                                                                             |   | $                            | 20,273    |   |   | $ | 18,015 |   |   | $ | 2,258 |   |
|                                                                                                 |   |                         |      |   |   |   |   |   |   |   |   |   |
| Average loans outstanding                                                                            |   | $                            | 1,005,225 |   |   | $ | 1,116,137 |   |   |   |   |   |
|                                                                                                 |   |                         |      |   |   |   |   |   |   |   |   |   |
| Ratio of net charge-offs during the     period to average loans outstanding |   |                         | 0.08      | % |   |   | 0.08 | % |   |   |   |   |
| Ratio of allowance for loan losses     to average loans outstanding         |   |                         | 2.02      | % |   |   | 1.61 | % |   |   |   |   |

|                                                |   | Three Months Ended March 31, |   |
|-----------------------------------------------------|--------|------------------------------|--------|
| Noninterest income:                                 |   | 2010                         |   |   | 2009 |   |   | Change |   |   | Change % |   |
| Service charges on deposit accounts                 |   | $                            | 838    |   |   | $ | 969 |   |   | $ | (131 | ) |   |   | -13.5 | % |
| Trust services                                      |   |                         | 208    |   |   |   | 180 |   |   |   | 28 |   |   |   | 15.6 | % |
| Gains and fees on sales of residential mortgages    |   |                         | 187    |   |   |   | 298 |   |   |   | (111 | ) |   |   | -37.2 | % |
| Increase in cash value of bank-owned life insurance |   |                         | 218    |   |   |   | 182 |   |   |   | 36 |   |   |   | 19.8 | % |
| Gain from bank-owned life insurance                 |   |                         | -      |   |   |   | 840 |   |   |   | (840 | ) |   |   | -100.0 | % |
| Other:                                              |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Debit card usage fees                               |   |                         | 308    |   |   |   | 248 |   |   |   | 60 |   |   |   | 24.2 | % |
| Service fee from SmartyPig, LLC                     |   |                         | 267    |   |   |   | - |   |   |   | 267 |   |   |   | N/A |   |
| All other                                           |   |                         | 246    |   |   |   | 256 |   |   |   | (10 | ) |   |   | -3.9 | % |
| Total other                                         |   |                         | 821    |   |   |   | 504 |   |   |   | 317 |   |   |   | 62.9 | % |
| Total noninterest income                            |   | $                            | 2,272  |   |   | $ | 2,973 |   |   | $ | (701 | ) |   |   | -23.6 | % |

----

Index

|                            |   | Three months ended March 31, |   |
|---------------------------------|--------|------------------------------|--------|
| Noninterest expense:            |   | 2010                         |   |   | 2009 |   |   | Change |   |   | Change % |   |
| Salaries and employee benefits  |   | $                            | 2,592  |   |   | $ | 2,727 |   |   | $ | (135 | ) |   |   | -5.0 | % |
| Occupancy                       |   |                         | 801    |   |   |   | 815 |   |   |   | (14 | ) |   |   | -1.7 | % |
| Data processing                 |   |                         | 433    |   |   |   | 410 |   |   |   | 23 |   |   |   | 5.6 | % |
| FDIC insurance expense          |   |                         | 562    |   |   |   | 453 |   |   |   | 109 |   |   |   | 24.1 | % |
| Other:                          |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Marketing                       |   |                         | 97     |   |   |   | 163 |   |   |   | (66 | ) |   |   | -40.5 | % |
| Professional fees               |   |                         | 248    |   |   |   | 262 |   |   |   | (14 | ) |   |   | -5.3 | % |
| Consulting fees                 |   |                         | 76     |   |   |   | 57 |   |   |   | 19 |   |   |   | 33.3 | % |
| Director fees                   |   |                         | 84     |   |   |   | 59 |   |   |   | 25 |   |   |   | 42.4 | % |
| Insurance expense               |   |                         | 99     |   |   |   | 66 |   |   |   | 33 |   |   |   | 50.0 | % |
| Bank service charges and fees   |   |                         | 153    |   |   |   | 73 |   |   |   | 80 |   |   |   | 109.6 | % |
| Other real estate owned expense |   |                         | 110    |   |   |   | 35 |   |   |   | 75 |   |   |   | 214.3 | % |
| Charitable contributions        |   |                         | 38     |   |   |   | 200 |   |   |   | (162 | ) |   |   | -81.0 | % |
| All other                       |   |                         | 703    |   |   |   | 774 |   |   |   | (71 | ) |   |   | -9.2 | % |
| Total other                     |   |                         | 1,608  |   |   |   | 1,689 |   |   |   | (81 | ) |   |   | -4.8 | % |
| Total noninterest expense       |   | $                            | 5,996  |   |   | $ | 6,094 |   |   | $ | (98 | ) |   |   | -1.6 | % |

----

Index

----

Index

| Commercial loans:                                 |   |           |    |   |              |   |   |   |    |   |    |   |
|---------------------------------------------------|--------|----------------|---------|--------|-------------------|--------|--------|--------|---------|--------|---------|--------|
|                                              |   | March 31, 2010 |    |   | December 31, 2009 |   |
|                                              |   |  $        |    |   |              | %      |   |   |  $ |   |    |   | % |   |
| Finance and insurance                             |   | $              | 85,569  |   |              |   | 25     | %      |    | $      | 88,960  |   |   |   | 25 | % |
| Real estate and rental/leasing                    |   |           | 40,932  |   |              |   | 12     | %      |    |   | 42,747  |   |   |   | 12 | % |
| Manufacturing                                     |   |           | 36,076  |   |              |   | 11     | %      |    |   | 41,112  |   |   |   | 12 | % |
| Publishing, broadcasting and information services |   |           | 28,823  |   |              |   | 8      | %      |    |   | 28,987  |   |   |   | 8 | % |
| Construction                                      |   |           | 6,932   |   |              |   | 2      | %      |    |   | 5,019   |   |   |   | 1 | % |
| Wholesale trade                                   |   |           | 10,367  |   |              |   | 3      | %      |    |   | 10,946  |   |   |   | 3 | % |
| Building trades                                   |   |           | 20,544  |   |              |   | 6      | %      |    |   | 20,121  |   |   |   | 6 | % |
| Transportation and warehousing                    |   |           | 11,842  |   |              |   | 3      | %      |    |   | 12,367  |   |   |   | 3 | % |
| Retail                                            |   |           | 10,569  |   |              |   | 3      | %      |    |   | 10,125  |   |   |   | 3 | % |
| Arts, entertainment and recreation                |   |           | 13,233  |   |              |   | 4      | %      |    |   | 11,091  |   |   |   | 3 | % |
| Other                                             |   |           | 81,044  |   |              |   | 23     | %      |    |   | 85,545  |   |   |   | 24 | % |
|                                              |   | $              | 345,931 |   |              |   | 100    | %      |    | $      | 357,020 |   |   |   | 100 | % |

----

Index

|                               |   | March 31, 2010 |    |   | December 31, 2009 |   |
|------------------------------------|--------|----------------|---------|--------|-------------------|--------|
|                               |   |  $        |    |   |              | %      |   |   |  $ |   |   |   | % |   |
| Land development:                  |   |           |    |   |              |   |   |   |   |   |   |   |   |   |
| 1-4 family                         |   | $              | 17,051  |   |              |   | 12 | % |   | $ | 17,486 |   |   |   | 12 | % |
| Other construction and development |   |           | 14,894  |   |              |   | 11 | % |   |   | 19,596 |   |   |   | 13 | % |
| Construction:                      |   |           |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| 1-4 family:                        |   |           |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Owner occupied                     |   |           | 9,597   |   |              |   | 7 | % |   |   | 4,325 |   |   |   | 3 | % |
| Nonowner occupied                  |   |           | 13,477  |   |              |   | 10 | % |   |   | 20,466 |   |   |   | 14 | % |
| Multifamily                        |   |           | 4,356   |   |              |   | 3 | % |   |   | 8,899 |   |   |   | 6 | % |
| Industrial, commercial and other   |   |           | 80,135  |   |              |   | 57 | % |   |   | 77,733 |   |   |   | 52 | % |
|                               |   | $              | 139,510 |   |              |   | 100 | % |   | $ | 148,505 |   |   |   | 100 | % |

|                    |   | March 31, 2010 |    |   | December 31, 2009 |   |
|-------------------------|--------|----------------|---------|--------|-------------------|--------|
|                    |   |  $        |    |   |              | %      |   |   |  $ |   |   |   | % |   |
| Owner occupied          |   | $              | 203,090 |   |              |   | 50 | % |   | $ | 203,432 |   |   |   | 49 | % |
| Nonowner occupied:      |   |           |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Medical/retirement      |   |           | 51,591  |   |              |   | 13 | % |   |   | 51,731 |   |   |   | 13 | % |
| Retail                  |   |           | 45,186  |   |              |   | 11 | % |   |   | 47,225 |   |   |   | 12 | % |
| Multifamily             |   |           | 34,246  |   |              |   | 8 | % |   |   | 34,321 |   |   |   | 8 | % |
| Office                  |   |           | 34,415  |   |              |   | 8 | % |   |   | 38,424 |   |   |   | 9 | % |
| Warehouse               |   |           | 14,945  |   |              |   | 4 | % |   |   | 15,123 |   |   |   | 4 | % |
| Hotel                   |   |           | 8,541   |   |              |   | 2 | % |   |   | 8,440 |   |   |   | 2 | % |
| Other                   |   |           | 14,340  |   |              |   | 4 | % |   |   | 13,743 |   |   |   | 3 | % |
| Total nonowner occupied |   |           | 203,264 |   |              |   | 50 | % |   |   | 209,007 |   |   |   | 51 | % |
|                    |   | $              | 406,354 |   |              |   | 100 | % |   | $ | 412,439 |   |   |   | 100 | % |

|                                               |   | March 31, 2010 |   |   | December 31, 2009 |   |   | Change |   |
|----------------------------------------------------|--------|----------------|--------|--------|-------------------|--------|--------|--------|--------|
| Nonaccrual loans                                   |   | $              | 11,450 |   |              | $      | 12,350 |   |   | $ | (900 | ) |
| Loans past due 90 days and still accruing interest |   |           | 173    |   |              |   | 1,150  |   |   |   | (977 | ) |
| Restructured loans*                                |   |           | 16,554 |   |              |   | 12,817 |   |   |   | 3,737 |   |
| Total nonperforming loans                          |   |           | 28,177 |   |              |   | 26,317 |   |   |   | 1,860 |   |
| Other real estate owned                            |   |           | 26,974 |   |              |   | 25,350 |   |   |   | 1,624 |   |
| Nonaccrual investment securities                   |   |           | 1,310  |   |              |   | 1,282  |   |   |   | 28 |   |
| Total nonperforming assets                         |   | $              | 56,461 |   |              | $      | 52,949 |   |   | $ | 3,512 |   |
|                                               |   |           |   |   |              |   |   |   |   |   |   |   |
| Nonperforming loans to total loans                 |   |           | 2.84   | %      |              |   | 2.58   | %      |   |   | 0.26 | % |
| Nonperforming assets to total assets               |   |           | 3.34   | %      |              |   | 3.36   | %      |   |   | -0.02 | % |

----

Index

|                                           |   | Nonaccrual |   |   | Loans Past Due 90 Days and Still Accruing Interest |   |   | Restructured |   |   | Total Nonperforming Loans |   |   | Other Real Estate Owned (OREO) |   |   | Nonaccrual lnvestment Securities |   |   | Total Nonperforming Assets |   |
|------------------------------------------------|--------|------------|--------|--------|----------------------------------------------------|--------|--------|--------------|--------|--------|---------------------------|--------|--------|--------------------------------|--------|--------|----------------------------------|--------|--------|----------------------------|--------|
| Balance at beginning of period                 |   | $          | 12,350 |   |                                               | $      | 1,150  |         |   | $      | 12,817                    |   |   | $                              | 26,317 |   |                             | $      | 25,350 |                       |   | $ | 1,282 |   |   | $ | 52,949 |   |
| Increase in fair market value                  |   |       |   |   |                                               |   |   |         |   |   |                      |   |   |                           |   |   |                             |   |   |                       |   |   | 28 |   |   |   | 28 |   |
| Additions                                      |   |       | 2,699  |   |                                               |   | 175    |         |   |   | 3,846                     |   |   |                           | 6,720  |   |                             |   | 4,784  |                       |   |   | - |   |   |   | 11,504 |   |
| Transfers:                                     |   |       |   |   |                                               |   |   |         |   |   |                      |   |   |                           |   |   |                             |   |   |                       |   |   |   |   |   |   |   |   |
|     Past due to nonaccrual |   |       | 1,150  |   |                                               |   | (1,150 | )            |   |   |                      |   |   |                           | -      |   |                             |   |   |                       |   |   |   |   |   |   | - |   |
|     Nonaccrual to OREO     |   |       | (1,160 | )      |                                               |   |   |         |   |   |                      |   |   |                           | (1,160 | )      |                             |   | 1,160  |                       |   |   |   |   |   |   | - |   |
| Upgrade in classification                      |   |       | (300   | )      |                                               |   | -      |         |   |   | -                         |   |   |                           | (300   | )      |                             |   | -      |                       |   |   | - |   |   |   | (300 | ) |
| Sales                                          |   |       | -      |   |                                               |   | -      |         |   |   | -                         |   |   |                           | -      |   |                             |   | (4,320 | )                          |   |   | - |   |   |   | (4,320 | ) |
| Charge-offs                                    |   |       | (862   | )      |                                               |   | (2     | )            |   |   | -                         |   |   |                           | (864   | )      |                             |   | -      |                       |   |   | - |   |   |   | (864 | ) |
| Payments                                       |   |       | (2,427 | )      |                                               |   | -      |         |   |   | (109                      | )      |   |                           | (2,536 | )      |                             |   | -      |                       |   |   | - |   |   |   | (2,536 | ) |
| Balance at end of period                       |   | $          | 11,450 |   |                                               | $      | 173    |         |   | $      | 16,554                    |   |   | $                              | 28,177 |   |                             | $      | 26,974 |                       |   | $ | 1,310 |   |   | $ | 56,461 |   |

|                                           |   | March 31, 2010 |   |   | December 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 |   |
|                                           |   | $              | 26,974 |   |              | $      | 25,350 |   |

----

Index

----

Index

|                                     |   | Actual |    |   | For CapitalAdequacy Purposes |   |   | To Be Well-Capitalized UnderPrompt CorrectiveAction Provisions |   |
|------------------------------------------|--------|--------|---------|--------|------------------------------|--------|--------|----------------------------------------------------------------|--------|
|                                     |   | Amount |    |   | Ratio                        |   |   | Amount                                                         |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
| As of March 31, 2010:                    |   |   |    |   |                         |   |   |                                                           |   |   |   |   |   |   |   |   |   |   |
| Total Capital (to Risk-Weighted Assets)  |   |   |    |   |                         |   |   |                                                           |   |   |   |   |   |   |   |   |   |   |
| Consolidated                             |   | $      | 172,947 |   |                         |   | 14.8   | %                                                              |   | $ | 93,624 |   |   |   | 8.0 | % |   |   | n/a |   |   |   | n/a |   |
| West Bank                                |   |   | 168,255 |   |                         |   | 14.4   |                                                           |   |   | 93,164 |   |   |   | 8.0 |   |   | $ | 116,456 |   |   |   | 10.0 | % |
|                                     |   |   |    |   |                         |   |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier I Capital (to Risk-Weighted Assets) |   |   |    |   |                         |   |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                             |   |   | 158,137 |   |                         |   | 13.5   |                                                           |   |   | 46,812 |   |   |   | 4.0 |   |   |   | n/a |   |   |   | n/a |   |
| West Bank                                |   |   | 143,516 |   |                         |   | 12.3   |                                                           |   |   | 46,582 |   |   |   | 4.0 |   |   |   | 69,873 |   |   |   | 6.0 |   |
|                                     |   |   |    |   |                         |   |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier I Capital (to Average Assets)       |   |   |    |   |                         |   |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                             |   |   | 158,137 |   |                         |   | 9.7    |                                                           |   |   | 65,372 |   |   |   | 4.0 |   |   |   | n/a |   |   |   | n/a |   |
| West Bank                                |   |   | 143,516 |   |                         |   | 8.8    |                                                           |   |   | 65,437 |   |   |   | 4.0 |   |   |   | 81,796 |   |   |   | 5.0 |   |
|                                     |   |   |    |   |                         |   |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As of December 31, 2009:                 |   |   |    |   |                         |   |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Capital (to Risk-Weighted Assets)  |   |   |    |   |                         |   |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                             |   | $      | 172,217 |   |                         |   | 14.3   | %                                                              |   | $ | 96,441 |   |   |   | 8.0 | % |   |   | n/a |   |   |   | n/a |   |
| West Bank                                |   |   | 166,795 |   |                         |   | 13.9   |                                                           |   |   | 95,991 |   |   |   | 8.0 |   |   | $ | 119,989 |   |   |   | 10.0 | % |
|                                     |   |   |    |   |                         |   |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier I Capital (to Risk-Weighted Assets) |   |   |    |   |                         |   |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                             |   |   | 157,098 |   |                         |   | 13.0   |                                                           |   |   | 48,220 |   |   |   | 4.0 |   |   |   | n/a |   |   |   | n/a |   |
| West Bank                                |   |   | 141,745 |   |                         |   | 11.8   |                                                           |   |   | 47,995 |   |   |   | 4.0 |   |   |   | 71,993 |   |   |   | 6.0 |   |
|                                     |   |   |    |   |                         |   |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier I Capital (to Average Assets)       |   |   |    |   |                         |   |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                             |   |   | 157,098 |   |                         |   | 9.8    |                                                           |   |   | 64,180 |   |   |   | 4.0 |   |   |   | n/a |   |   |   | n/a |   |
| West Bank                                |   |   | 141,745 |   |                         |   | 8.9    |                                                           |   |   | 64,013 |   |   |   | 4.0 |   |   |   | 80,016 |   |   |   | 5.0 |   |

----

Index

Item

Item

Part

Item

Item

Item

| Exhibits | Description                                                                                                                                       |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------|
| 12       | Computation of Ratios of Earnings (Loss) to Fixed Charges and Preferred Dividends                                                                 |
| 31.1     | Certification of Chief Executive Officer under Section 302 of the Sarbanes-Oxley Act of 2002                                                      |
| 31.2     | Certification of Chief Financial Officer under Section 302 of the Sarbanes-Oxley Act of 2002                                                      |
| 32.1     | Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
| 32.2     | Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |

----

Index

SIGN

| West Bancorporation, Inc. |   |                                                 |
|---------------------------|--------|------------------------------------------------------|
| (Registrant)              |   |                                                 |
|                      |   |                                                 |
|                      |   |                                                 |
| April 29, 2010            |   | By: /s/ David D. Nelson                              |
| Date                      |   | David D. Nelson                                      |
|                      |   | Chief Executive Officer and President                |
|                      |   |                                                 |
| April 29, 2010            |   | By: /s/ Douglas R. Gulling                           |
| Date                      |   | Douglas R. Gulling                                   |
|                      |   | Executive Vice President and Chief Financial Officer |
|                      |   | (Principal Accounting Officer)                       |
|                      |   |                                                 |

----

Index

EX

| Exhibit No. | Description                                                                                                                                       | Page Number |
|-------------|---------------------------------------------------------------------------------------------------------------------------------------------------|-------------|
| 12          | Ratios of Earnings (Loss) to Fixed Charges and Preferred Dividends                                                                                | 36          |
| 31.1        | Certification of Chief Executive Officer under Section 302 of the Sarbanes-Oxley Act of 2002                                                      | 37          |
| 31.2        | Certification of Chief Financial Officer under Section 302 of the Sarbanes-Oxley Act of 2002                                                      | 38          |
| 32.1        | Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | 39          |
| 32.2        | Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | 40          |

----