UNITED
      STATES


SECURITIES
      AND EXCHANGE COMMISSION


WASHINGTON,
      D.C. 20549





**FORM
      10-Q**





(Mark
      One)





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





For
      the
      quarterly period ended September 30, 2007


or





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


For
      the
      transition period
      from to





Commission
      File Number 0-49677





WEST
      BANCORPORATION, INC.


(Exact
      Name of Registrant as Specified in its Charter)





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





1601
      22 nd Street,
      West Des Moines, Iowa 50266





Telephone
      Number (515) 222-2300





Indicate
      by check mark whether the registrant (1) has filed all reports required to
      be
      filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
      the
      preceding 12 months (or for such shorter period that the registrant was required
      to file such reports), and (2) has been subject to such filing requirements
      for
      the past 90 days.





Yes **x** No **o**





Indicate
      by check mark whether the registrant is a large accelerated filer, an
      accelerated filer, or a non-accelerated filer. See definition of “accelerated
      filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check
      one):





Large
      accelerated filer **o**   Accelerated
      filer **x**    Non-accelerated
      filer **o**





Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Exchange Act).




Yes **o** No **x**





As
      of
      November 2, 2007, there were 17,536,682 shares of common stock, no par value
      outstanding.





PART
      I – FINANCIAL INFORMATION


Item
      1.
      Financial Statements





West
      Bancorporation, Inc. and Subsidiaries


Consolidated
      Balance Sheets


(unaudited)





September
                30,
            
            December
                31,2007
            
            2006(in
                thousands, except per share data)AssetsCash
                and due from banks
            
            $
            28,857
            
            $
            35,063Federal
                funds sold and other short-term investments
            
            
            5,957
            
            
            615Cash
                and cash equivalents
            
            
            34,814
            
            
            35,678Securities
                available for sale
            
            
            242,260
            
            
            256,731Federal
                Home Loan Bank stock, at cost
            
            
            8,176
            
            
            4,847Total
                securities
            
            
            250,436
            
            
            261,578Loans
            
            
            943,393
            
            
            904,422Allowance
                for loan losses
            
            
            (8,905
            )
            
            (8,494
            )Loans,
                net
            
            
            934,488
            
            
            895,928Premises
                and equipment, net
            
            
            5,309
            
            
            5,375Accrued
                interest receivable
            
            
            9,378
            
            
            8,587Goodwill
            
            
            24,930
            
            
            24,930Other
                intangible assets
            
            
            2,345
            
            
            2,987Bank-owned
                life insurance
            
            
            23,617
            
            
            22,956Other
                assets
            
            
            11,911
            
            
            10,517Total
                assets
            
            $
            1,297,228
            
            $
            1,268,536Liabilities
                and Stockholders' EquityLiabilitiesDeposits:Non-interest
                bearing demand
            
            $
            177,991
            
            $
            203,964Interest-bearing
                demand
            
            
            69,365
            
            
            57,605Savings
            
            
            219,742
            
            
            234,240Time,
                in excess of $100,000
            
            
            172,463
            
            
            256,105Other
                time
            
            
            218,657
            
            
            173,420Total
                deposits
            
            
            858,218
            
            
            925,334Federal
                  funds purchased and securities sold under agreements to
                  repurchase
            
            
            131,072
            
            
            109,346Other
                short-term borrowings
            
            
            50,674
            
            
            1,929Accrued
                expenses and other liabilities
            
            
            13,350
            
            
            12,096Subordinated
                notes
            
            
            20,619
            
            
            20,619Long-term
                borrowings
            
            
            103,250
            
            
            85,400Total
                liabilities
            
            
            1,177,183
            
            
            1,154,724Stockholders'
                EquityCommon
                stock, no par value; authorized 50,000,000 shares; 17,536,682 shares
                issued and outstanding
            
            
            3,000
            
            
            3,000Additional
                paid-in capital
            
            
            32,000
            
            
            32,000Retained
                earnings
            
            
            86,498
            
            
            80,397Accumulated
                other comprehensive loss
            
            
            (1,453
            )
            
            (1,585
            )Total
                stockholders' equity
            
            
            120,045
            
            
            113,812Total
                liabilities and stockholders' equity
            
            $
            1,297,228
            
            $
            1,268,536





See
      accompanying notes to consolidated financial statements.


2




West
      Bancorporation, Inc. and Subsidiaries


Consolidated
      Statements of Income


(unaudited)





Three
                Months Ended
            
            Nine
                Months EndedSeptember
                30,
            
            September
                30,(in
                thousands, except per share data)
            
            2007
            
            2006
            
            2007
            
            2006Interest
                income:Loans,
                including fees
            
            $
            17,730
            
            $
            17,505
            
            $
            52,766
            
            $
            50,004Securities:Government
                agencies and corporations
            
            
            1,468
            
            
            1,523
            
            
            4,455
            
            
            4,541States
                and political subdivisions
            
            
            923
            
            
            1,044
            
            
            2,829
            
            
            3,116Other
            
            
            393
            
            
            396
            
            
            1,170
            
            
            1,122Federal
                funds sold and other short-term investments
            
            
            122
            
            
            288
            
            
            682
            
            
            633Total
                interest income
            
            
            20,636
            
            
            20,756
            
            
            61,902
            
            
            59,416Interest
                expense:Demand
                deposits
            
            
            584
            
            
            128
            
            
            1,361
            
            
            264Savings
                deposits
            
            
            1,761
            
            
            1,898
            
            
            5,317
            
            
            5,530Time
                deposits
            
            
            5,306
            
            
            6,927
            
            
            16,228
            
            
            17,916Federal
                funds purchased and securities sold under agreements to
                repurchase
            
            
            1,597
            
            
            855
            
            
            5,052
            
            
            2,613Other
                short-term borrowings
            
            
            144
            
            
            8
            
            
            215
            
            
            34Subordinated
                notes
            
            
            371
            
            
            371
            
            
            1,101
            
            
            1,101Long-term
                borrowings
            
            
            1,220
            
            
            847
            
            
            3,876
            
            
            2,856Total
                interest expense
            
            
            10,983
            
            
            11,034
            
            
            33,150
            
            
            30,314Net
                interest income
            
            
            9,653
            
            
            9,722
            
            
            28,752
            
            
            29,102Provision
                for loan losses
            
            
            500
            
            
            450
            
            
            1,150
            
            
            1,350Net
                interest income after provision for loan losses
            
            
            9,153
            
            
            9,272
            
            
            27,602
            
            
            27,752Noninterest
                income:Service
                charges on deposit accounts
            
            
            1,244
            
            
            1,371
            
            
            3,583
            
            
            3,492Trust
                services
            
            
            195
            
            
            208
            
            
            564
            
            
            571Investment
                advisory fees
            
            
            1,968
            
            
            2,003
            
            
            5,970
            
            
            6,364Increase
                in cash value of bank-owned life insurance
            
            
            226
            
            
            215
            
            
            661
            
            
            637Net
                realized gains (losses) from sales of securities available for
                sale
            
            
            11
            
            
            (3
            )
            
            2
            
            
            (147
            )Other
                income
            
            
            405
            
            
            356
            
            
            1,174
            
            
            1,074Total
                noninterest income
            
            
            4,049
            
            
            4,150
            
            
            11,954
            
            
            11,991Noninterest
                expense:Salaries
                and employee benefits
            
            
            3,354
            
            
            3,323
            
            
            10,325
            
            
            10,490Occupancy
            
            
            879
            
            
            826
            
            
            2,710
            
            
            2,548Data
                processing
            
            
            472
            
            
            448
            
            
            1,412
            
            
            1,433Other
                expenses
            
            
            1,431
            
            
            1,500
            
            
            4,051
            
            
            4,120Total
                noninterest expense
            
            
            6,136
            
            
            6,097
            
            
            18,498
            
            
            18,591Income
                before income taxes
            
            
            7,066
            
            
            7,325
            
            
            21,058
            
            
            21,152Income
                taxes
            
            
            2,119
            
            
            2,348
            
            
            6,540
            
            
            6,748Net
                income
            
            $
            4,947
            
            $
            4,977
            
            $
            14,518
            
            $
            14,404Earnings
                per share, basic
            
            $
            0.28
            
            $
            0.28
            
            $
            0.83
            
            $
            0.82Cash
                dividends per share
            
            $
            0.160
            
            $
            0.160
            
            $
            0.480
            
            $
            0.465





See
      accompanying notes to consolidated financial statements.


3





West
      Bancorporation, Inc. and Subsidiaries


Consolidated
      Statements of Stockholders' Equity


(unaudited)





Nine
                Months Ended
              September
                30,(in
                thousands, except per share data)
            
            2007
            
            2006Common
                stock:Beginning
                of year balance
            
            $
            3,000
            
            $
            3,000End
                of period balance
            
            
            3,000
            
            
            3,000Additional
                paid-in capital:Beginning
                of year balance
            
            
            32,000
            
            
            32,000End
                of period balance
            
            
            32,000
            
            
            32,000Retained
                earnings:Beginning
                of year balance
            
            
            80,397
            
            
            71,951Net
                income
            
            
            14,518
            
            
            14,404Dividends
                  on common stock; per share amounts 2007 - $0.48 and 2006 -
                  $0.465
            
            
            (8,417
            )
            
            (8,151
            )Purchase
                  of fractional shares resulting from stock dividend
            
            
            -
            
            
            (4
            )End
                of period balance
            
            
            86,498
            
            
            78,200Accumulated
                other comprehensive loss:Beginning
                of year balance
            
            
            (1,585
            )
            
            (2,430
            )Unrealized
                gains on securities, net of tax
            
            
            132
            
            
            236End
                of period balance
            
            
            (1,453
            )
            
            (2,194
            )Total
                stockholders' equity
            
            $
            120,045
            
            $
            111,006








West
      Bancorporation, Inc. and Subsidiaries


Consolidated
      Statements of Comprehensive Income


(unaudited)





Nine
                Months Ended
              September
                30,(in
                thousands)
            
            2007
            
            2006Net
                Income
            
            $
            14,518
            
            $
            14,404Other
                  comprehensive income, unrealized gains on securities, net of
                  reclassification adjustment, net of tax
            
            
            132
            
            
            236Comprehensive
                income
            
            $
            14,650
            
            $
            14,640




See
      accompanying notes to consolidated financial statements.


4





West
      Bancorporation, Inc. and Subsidiaries


Consolidated
      Statements of Cash Flows


(unaudited)





Nine
                Months Ended
              September
                30,(in
                thousands)
            
            2007
            
            2006Cash
                Flows from Operating Activities:Net
                income
            
            $
            14,518
            
            $
            14,404Adjustments
                  to reconcile net income to net cash provided by operating
                  activities:Provision
                for loan losses
            
            
            1,150
            
            
            1,350Net
                amortization and accretion
            
            
            1,120
            
            
            963Loss
                on disposition of fixed assets
            
            
            35
            
            
            11Net
                (gains) losses from sales of securities available for sale
            
            
            (2
            )
            
            147Net
                gains from sales of loans held for sale
            
            
            (87
            )
            
            (92
            )Proceeds
                from sales of loans held for sale
            
            
            8,944
            
            
            8,526Originations
                of loans held for sale
            
            
            (9,862
            )
            
            (8,734
            )Increase
                in value of bank-owned life insurance
            
            
            (661
            )
            
            (637
            )Depreciation
            
            
            691
            
            
            675Deferred
                income taxes
            
            
            64
            
            
            (98
            )Change
                in assets and liabilities:Increase
                in accrued interest receivable
            
            
            (791
            )
            
            (2,010
            )Increase
                in accrued expenses and other liabilities
            
            
            1,254
            
            
            2,475Net
                cash provided by operating activities
            
            
            16,373
            
            
            16,980Cash
                Flows from Investing Activities:Proceeds
                from sales, calls, and maturities of securities available for
                sale
            
            
            19,092
            
            
            22,122Purchases
                of securities available for sale
            
            
            (4,873
            )
            
            (20,548
            )Acquisition
                of Federal Home Loan Bank stock
            
            
            (5,430
            )
            
            (533
            )Proceeds
                from redemption of Federal Home Loan Bank stock
            
            
            2,100
            
            
            965Net
                increase in loans
            
            
            (39,019
            )
            
            (46,673
            )Proceeds
                from sales of premises and equipment
            
            
            29
            
            
            68Purchases
                of premises and equipment
            
            
            (689
            )
            
            (567
            )Change
                in other assets
            
            
            (1,235
            )
            
            (1,628
            )Net
                cash used in investing activities
            
            
            (30,025
            )
            
            (46,794
            )Cash
                Flows from Financing Activities:Net
                change in deposits
            
            
            (67,116
            )
            
            40,718Net
                change in federal funds purchased and securities sold under agreements
                to
                repurchase
            
            
            21,726
            
            
            2,121Net
                change in other short-term borrowings
            
            
            48,745
            
            
            (2,969
            )Proceeds
                from long-term borrowings
            
            
            30,000
            
            
            -Principal
                payments on long-term borrowings
            
            
            (12,150
            )
            
            (12,000
            )Purchase
                of fractional shares resulting from stock dividend
            
            
            -
            
            
            (4
            )Cash
                dividends
            
            
            (8,417
            )
            
            (8,151
            )Net
                cash provided by financing activities
            
            
            12,788
            
            
            19,715Net
                decrease in cash and cash equivalents
            
            
            (864
            )
            
            (10,099
            )Cash
                and Cash Equivalents:Beginning
            
            
            35,678
            
            
            40,665End
            
            $
            34,814
            
            $
            30,566Supplemental
                Disclosures of Cash Flow InformationCash
                payments for:Interest
            
            $
            32,877
            
            $
            28,579Income
                taxes
            
            
            6,336
            
            
            7,324





See
      accompanying notes to consolidated financial statements.





5




West
        Bancorporation, Inc.
 Notes
        to
        Consolidated Financial Statements
 (unaudited)
 (in
        thousands, except per share information)
 
 1.
        Basis
        of Presentation
 
 The
        accompanying consolidated statements of income for the three and nine months
        ended September 30, 2007 and 2006, the consolidated statements of stockholders’
equity, comprehensive income, and cash flows for the nine months ended September
        30, 2007 and 2006, and the consolidated balance sheets as of September 30,
        2007
        and December 31, 2006, include the accounts and transactions of the Company
        and
        its wholly-owned subsidiaries, West Bank and WB Capital Management Inc. All
        material intercompany balances and transactions have been eliminated in
        consolidation.
 
 The
        accompanying consolidated financial statements have been prepared by the
        Company
        pursuant to the rules and regulations of the Securities and Exchange Commission.
        Certain information and footnote disclosures normally included in financial
        statements prepared in accordance with generally accepted accounting principles
        have been condensed or omitted pursuant to such rules and regulations. Although
        management believes that the disclosures are adequate to make the information
        presented not misleading, it is suggested that these interim consolidated
        financial statements be read in conjunction with the Company's most recent
        audited financial statements and notes thereto. In the opinion of management,
        the accompanying consolidated financial statements contain all adjustments
        (consisting of only normal recurring accruals) necessary to present fairly
        the
        financial position as of September 30, 2007, the results of cash flows for
        the
        nine months ended September 30, 2007 and 2006, and the results of operations
        for
        the three and nine months ended September 30, 2007 and 2006.
 
 The
        results for these interim periods may not be indicative of results for the
        entire year or for any other period.
 
 2.
        Earnings Per Common Share
 
 Earnings
        per share represent income available to common shareholders divided by the
        weighted average number of shares outstanding during the period. The Company
        has
        no common equivalent shares that could cause dilution. The weighted average
        number of shares outstanding for the three months ended September 30, 2007
        and
        2006, was 17,536,682 and 17,536,765, respectively, and the weighted average
        number of shares outstanding for the nine months ended September 30, 2007
        and
        2006, was 17,536,682 and 17,536,878, respectively.
 
 3.
        Commitments
 
 In
        the
        normal course of business, the Company enters into commitments to extend
        credit
        such as loan commitments and standby letters of credit to meet the financing
        needs of its customers. These commitments expose the Company to varying degrees
        of credit and market risk and are subject to the same credit reviews as those
        loans recorded on the balance sheet. For additional information on credit
        extension commitments see Note 13 of the Company’s 2006 consolidated financial
        statements. The Company’s commitments as of the dates shown are approximately as
        follows:
 
 September 30, 2007
              
              December 31, 2006Commitments
                  to extend credit
              
              $
              313,007
              
              $
              262,717Standby
                  letters of credit
              
              
              21,906
              
              
              22,301$
              334,913
              
              $
              285,018
  6
 
 4.
        Segment Information
 
 An
        operating segment is generally defined as a component of a business for which
        discrete financial information is available and whose operating results are
        regularly reviewed by the chief operating decision-maker. The Company’s primary
        business segments are banking and investment advisory services. The banking
        segment generates revenue through interest and fees on loans, service charges
        on
        deposit accounts, interest on investment securities and fees for trust services.
        The banking segment includes West Bank and the Company, and related elimination
        entries between the two, as the holding company’s operation is similar to the
        bank. The investment advisory segment consists of WB Capital Management Inc.,
        and generates revenue by providing investment portfolio management services
        to
        individuals, retirement plans, corporations, foundations, endowments and
        public
        entities. Selected financial information on the Company’s segments is presented
        below for the three and nine months ended September 30, 2007 and
        2006.
 
 Three
                  months ended September 30,2007
                Segments
              
              2006
                SegmentsBanking
              
              Investment
                  Advisory
              
              Other
              
              Consolidated
              
              Banking
              
              Investment
                  Advisory
              
              Other
              
              ConsolidatedInterest
                  income
              
              $
              20,636
              
              $
              -
              
              $
              -
              
              $
              20,636
              
              $
              20,756
              
              $
              -
              
              $
              -
              
              $
              20,756Interest
                  expense
              
              
              10,983
              
              
              -
              
              
              -
              
              
              10,983
              
              
              11,026
              
              
              8
              
              
              -
              
              
              11,034Net
                  interest income
              
              
              9,653
              
              
              -
              
              
              -
              
              
              9,653
              
              
              9,730
              
              
              (8
              )
              
              -
              
              
              9,722Provision
                  for loan losses
              
              
              500
              
              
              -
              
              
              -
              
              
              500
              
              
              450
              
              
              -
              
              
              -
              
              
              450Net
                  interest income after provision for loan losses
              
              
              9,153
              
              
              -
              
              
              -
              
              
              9,153
              
              
              9,280
              
              
              (8
              )
              
              -
              
              
              9,272Noninterest
                  income
              
              
              2,080
              
              
              2,015
              
              
              (46
              )
              
              4,049
              
              
              2,148
              
              
              2,061
              
              
              (59
              )
              
              4,150Noninterest
                  expense
              
              
              4,487
              
              
              1,695
              
              
              (46
              )
              
              6,136
              
              
              4,278
              
              
              1,878
              
              
              (59
              )
              
              6,097Income
                  before income taxes
              
              
              6,746
              
              
              320
              
              
              -
              
              
              7,066
              
              
              7,150
              
              
              175
              
              
              -
              
              
              7,325Income
                  taxes
              
              
              1,985
              
              
              134
              
              
              -
              
              
              2,119
              
              
              2,275
              
              
              73
              
              
              -
              
              
              2,348Net
                  income
              
              $
              4,761
              
              $
              186
              
              $
              -
              
              $
              4,947
              
              $
              4,875
              
              $
              102
              
              $
              -
              
              $
              4,977Depreciation
                  and amortization
              
              $
              224
              
              $
              223
              
              $
              -
              
              $
              447
              
              $
              200
              
              $
              246
              
              $
              -
              
              $
              446
 
 Nine
                  months ended September 30,2007Segments
              
              2006
                SegmentsBanking
              
              Investment
                  Advisory
              
              Other
              
              Consolidated
              
              Banking
              
              Investment
                  Advisory
              
              Other
              
              ConsolidatedInterest
                  income
              
              $
              61,902
              
              $
              -
              
              $
              -
              
              $
              61,902
              
              $
              59,418
              
              $
              -
              
              $
              (2
              )
              $
              59,416Interest
                  expense
              
              
              33,150
              
              
              -
              
              
              -
              
              
              33,150
              
              
              30,291
              
              
              25
              
              
              (2
              )
              
              30,314Net
                  interest income
              
              
              28,752
              
              
              -
              
              
              -
              
              
              28,752
              
              
              29,127
              
              
              (25
              )
              
              -
              
              
              29,102Provision
                  for loan losses
              
              
              1,150
              
              
              -
              
              
              -
              
              
              1,150
              
              
              1,350
              
              
              -
              
              
              -
              
              
              1,350Net
                  interest income after provision for loan losses
              
              
              27,602
              
              
              -
              
              
              -
              
              
              27,602
              
              
              27,777
              
              
              (25
              )
              
              -
              
              
              27,752Noninterest
                  income
              
              
              5,968
              
              
              6,140
              
              
              (154
              )
              
              11,954
              
              
              5,627
              
              
              6,527
              
              
              (163
              )
              
              11,991Noninterest
                  expense
              
              
              13,163
              
              
              5,489
              
              
              (154
              )
              
              18,498
              
              
              12,940
              
              
              5,814
              
              
              (163
              )
              
              18,591Income
                  before income taxes
              
              
              20,407
              
              
              651
              
              
              -
              
              
              21,058
              
              
              20,464
              
              
              688
              
              
              -
              
              
              21,152Income
                  taxes
              
              
              6,270
              
              
              270
              
              
              -
              
              
              6,540
              
              
              6,464
              
              
              284
              
              
              -
              
              
              6,748Net
                  income
              
              $
              14,137
              
              $
              381
              
              $
              -
              
              $
              14,518
              
              $
              14,000
              
              $
              404
              
              $
              -
              
              $
              14,404Depreciation
                  and amortization
              
              $
              645
              
              $
              688
              
              $
              -
              
              $
              1,333
              
              $
              595
              
              $
              743
              
              $
              -
              
              $
              1,338Goodwill
              
              $
              13,376
              
              $
              11,554
              
              $
              -
              
              $
              24,930
              
              $
              13,376
              
              $
              9,869
              
              $
              -
              
              $
              23,245Total
                  assets
              
              $
              1,282,997
              
              $
              14,338
              
              $
              (107
              )
              $
              1,297,228
              
              $
              1,268,060
              
              $
              14,241
              
              $
              (682
              )
              $
              1,281,619
  7
  5.
        Income
        Taxes
 
 The
        Company adopted the provisions of Financial Accounting Standards Board (FASB)
        Interpretation No. 48, *Accounting
        for Uncertainty in Income Taxes* ,
        effective January 1, 2007 *.* The
        Interpretation provides clarification on accounting for uncertainty in income
        taxes recognized in an enterprise’s financial statements in accordance with FASB
        Statement of Financial Accounting Standard (SFAS) No. 109, *Accounting
        for Income Taxes.* The
        Interpretation prescribes a recognition threshold and measurement attribute
        for
        the financial statement recognition and measurement of a tax position taken
        or
        expected to be taken in a tax return. As a result of the Company’s evaluation of
        the implementation of FIN 48, no significant income tax uncertainties were
        identified. Therefore, the Company recognized no adjustment for unrecognized
        income tax benefits during the nine months ended September 30, 2007. Corporate
        tax returns for the years 2004 through 2006 remain open to examination by
        Federal and Iowa taxing authorities.
 
 6.
        Impact
        of New Financial Accounting Standards
 
 In
        February 2007, The FASB issued SFAS No. 159, *The
        Fair Value Option for Financial Assets and Financial
        Liabilities.* SFAS No.
        159 is an amendment of SFAS No. 115, *Accounting
        for Certain Investments in Debt and Equity Securities.* SFAS No.
        159 generally permits the measurement of selected eligible financial instruments
        at fair value at specified election dates. The objective is to improve financial
        reporting by providing entities with the opportunity to mitigate volatility
        in
        reported earnings caused by measuring related assets and liabilities differently
        without having to apply complex hedge accounting provisions. This Statement
        is
        expected to expand the use of fair value measurement, which is consistent
        with
        the FASB’s long-term measurement objectives for accounting for financial
        instruments. This Statement is effective for the Company beginning January
        1,
        2008. The Company has evaluated this pronouncement and has concluded its
        operations are not applicable to the primary objective of the pronouncement.
        The
        Company’s independent registered public accounting firm concurred with that
        assessment.
 
 7.
        Use of
        Estimates in the Preparation of Financial Statements
 
 The
        preparation of financial statements in conformity with generally accepted
        accounting principles requires management to make estimates and assumptions
        that
        affect the reported amounts of assets and liabilities and disclosure of
        contingent assets and liabilities at the date of the financial statements
        and
        the reported amounts of revenues and expenses during the reported period.
        Actual
        results could differ from those estimates. Material estimates that are
        particularly susceptible to significant change in the near term are the
        allowance for loan losses and fair value of financial instruments.
 
 8.
        Critical Accounting Policies
 
 Management
        has identified its most critical accounting policy to be that related to
        the
        allowance for loan losses. The allowance for loan losses is established through
        a provision for loan losses charged to expense. Loans are charged against
        the
        allowance for loan losses when management believes that collectibility of
        the
        principal is unlikely. The Company has policies and procedures for evaluating
        the overall credit quality of its loan portfolio including timely identification
        of potential problem credits. On a quarterly basis, management reviews the
        appropriate level for the allowance for loan losses incorporating a variety
        of
        risk considerations, both quantitative and qualitative. Quantitative factors
        include the Company’s historical loss experience, delinquency and charge-off
        trends, collateral values, known information about individual loans and other
        factors. Qualitative factors include the general economic environment in
        the
        Company’s market area and the expected trend of those economic conditions. To
        the extent actual results differ from forecasts and management’s judgment, the
        allowance for loan losses may be greater or less than future
        charge-offs.
  8
 
 Item
        2.
        Management's Discussion and Analysis of Financial Condition and Results of
        Operations.
 
 "SAFE
        HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM
        ACT
 
 The
        information contained in this report may contain forward-looking statements
        about the Company’s growth and acquisition strategies, new products and
        services, and future financial performance, including earnings and dividends
        per
        share, return on average assets, return on average equity, efficiency ratio
        and
        capital ratio. Certain statements in this report constitute “forward-looking
        statements” within the meaning of the Private Securities Litigation Reform Act
        of 1995. Such forward-looking statements are based upon certain underlying
        assumptions, risks and uncertainties. Because of the possibility of change
        in
        the underlying assumptions, actual results could differ materially from these
        forward-looking statements. Risks and uncertainties that may affect future
        results include: interest rate risk, competitive pressures, pricing pressures
        on
        loans and deposits, actions of bank and non-bank competitors, changes in
        local
        and national economic conditions, changes in regulatory requirements, actions
        of
        the Securities and Exchange Commission and/or the Federal Reserve Board,
        and
        customers’ acceptance of the Company’s products and services. The Company
        undertakes no obligation to revise or update such forward-looking statements
        to
        reflect current events or circumstances after the date hereof or to reflect
        the
        occurrence of unanticipated events.
 
 THREE
        AND
        NINE MONTHS ENDED SEPTEMBER 30, 2007
 (dollars
        in thousands)
 
 OVERVIEW
 
 The
        following discussion describes the consolidated operations of the Company,
        including its wholly-owned subsidiaries West Bank and WB Capital Management
        Inc.
        (“WB Capital”). Consolidated results of operations for the three and nine months
        ended September 30, 2007, are compared to the results for the same periods
        in
        2006, and the consolidated financial condition of the Company at September
        30,
        2007, is compared to the December 31, 2006 position.
 
 Net
        income for the three months ended September 30, 2007, declined slightly to
        $4,947 compared to $4,977 for the same period in 2006. The decline resulted
        from
        the combination of slightly lower net interest income, an increase in provision
        for loan losses, lower service charge income and slightly higher noninterest
        expense. Offsetting these reductions in income before taxes was a lower
        effective income tax rate for the three months ended September 30, 2007 compared
        to the same period in 2006. The effective income tax rate for 2007 was lower
        than in the same period of 2006 as the result of recognizing a Federal tax
        credit,
 
 For
        the
        first nine months of 2007, net income increased to $14,518, or $0.83 per
        share,
        compared to $14,404, or $0.82 per share for the first nine months of 2006.
        The
        annualized return on average assets was 1.48 percent for both periods. The
        annualized return on average equity was 16.81 percent for the first nine
        months
        of 2007 compared to 18.16 percent for the first nine months of 2006. Net
        interest income for the first nine months of 2007 was $350 lower than the
        previous year primarily as a result of rates paid on deposits increasing
        faster
        than the yield on earning assets. Year-to-date provision for loan losses
        declined $200 compared to the prior year.
 
 Year-to-date
        noninterest income was slightly lower than last year as an increase in service
        charges and net realized gains from sales of securities were offset by a
        decline
        in revenue from investment advisory fees. Realized gains on the sale of
        investment securities totaled $2 in the first nine months of 2007 compared
        to
        realized losses of $147 during the first nine months of 2006.
 
 Year-to-date
        noninterest expense for the nine months ended September 30, 2007, was $93
        lower
        than the prior year. Reductions in salaries and benefits and gains from the
        sale
        of other real estate owned were partially offset by increased occupancy
        costs.
 
 WB
        Capital’s year-to-date net income was $381 for the nine months ended September
        30, 2007, slightly lower than the $404 reported for the same period in 2006.
        Revenues were lower than a year ago because of a decision to reduce the fees
        on
        the Vintage mutual funds and a lower level of assets under management in
        certain
        categories. Operating expenses at WB Capital were $325 lower during the first
        nine months of 2007 compared to the same 2006 period.
  9
 
 The
        Company has explored banking opportunities in areas of the country which
        are
        growing faster than our Iowa markets. The Board of Directors decided to
        investigate the greater Phoenix, Arizona metropolitan area. The Company will
        take a deliberate approach by first identifying an experienced leader in
        this
        market and then selecting locations.
 
 RESULTS
        OF OPERATIONS
 
 The
        following table shows selected financial results and measures for the three
        and
        nine months ended September 30, 2007, compared with the same periods in 2006:
 
 Three
                  Months Ended September 30,
              
              Nine
                  Months Ended September 30,2007
              
              2006
              
              Change
              
              Change-%
              
              2007
              
              2006
              
              Change
              
              Change-%Net
                  income
              
              $
              4,947
              
              $
              4,977
              
              $
              (30
              )
              
              -0.6
              %
              $
              14,518
              
              $
              14,404
              
              $
              114
              
              
              0.8
              %Average
                  assets
              
              
              1,295,973
              
              
              1,315,308
              
              
              (19,335
              )
              
              -1.5
              %
              
              1,308,022
              
              
              1,301,735
              
              
              6,287
              
              
              0.5
              %Average
                  stockholders' equity
              
              
              117,111
              
              
              107,893
              
              
              9,218
              
              
              8.5
              %
              
              115,451
              
              
              106,042
              
              
              9,409
              
              
              8.9
              %Return
                  on assets
              
              
              1.51
              %
              
              1.50
              %
              
              0.01
              %
              
              
              
              
              1.48
              %
              
              1.48
              %
              
              0.00
              %Return
                  on equity
              
              
              16.76
              %
              
              18.30
              %
              
              -1.54
              %
              
              
              
              
              16.81
              %
              
              18.16
              %
              
              -1.35
              %Efficiency
                  ratio
              
              
              43.60
              %
              
              42.60
              %
              
              1.00
              %
              
              
              
              
              44.17
              %
              
              43.70
              %
              
              0.47
              %Dividend
                  payout ratio
              
              
              57.07
              %
              
              56.38
              %
              
              0.69
              %
              
              
              
              
              57.98
              %
              
              56.59
              %
              
              1.39
              %Equity
                  to assets ratio
              
              
              9.04
              %
              
              8.20
              %
              
              0.84
              %
              
              
              
              
              8.83
              %
              
              8.15
              %
              
              0.68
              %
  Definitions
        of ratios:
 
 Return
        on
        assets – annualized net income divided by average assets.
 Return
        on
        equity – annualized net income divided by average stockholders’
equity.
 Efficiency
        ratio – noninterest expense divided by noninterest income (excluding net
        securities gains) plus taxable equivalent net interest income.
 Dividend
        payout ratio – dividends paid divided by net income.
 Equity
        to
        assets ratio – average equity divided by average assets.
 
 Net
        Interest Income
 
 The
        following tables show average balances and related interest income or interest
        expense, with the resulting average yield or rate by category of
        interest-earning assets or interest-bearing liabilities. Interest income
        and the
        resulting net interest income are shown on a fully taxable basis.
  10




Data
      for
      the three months ended September 30:





Average Balance
            
            Interest Income/Expense
            
            Yield/Rate2007
            
            2006
            
            Change
            
            Change-%
            
            2007
            
            2006
            
            Change
            
            Change-%
            
            2007
            
            2006
            
            ChangeInterest-earning
                assets:Loans:Commercial
            
            $
            355,937
            
            $
            356,155
            
            $
            (218
            )
            
            -0.06
            %
            $
            7,141
            
            $
            7,073
            
            $
            68
            
            
            0.96
            %
            
            7.96
            %
            
            7.88
            %
            
            0.08
            %Real
                estate
            
            
            570,807
            
            
            561,843
            
            
            8,964
            
            
            1.60
            %
            
            10,430
            
            
            10,249
            
            
            181
            
            
            1.77
            %
            
            7.25
            %
            
            7.24
            %
            
            0.01
            %Consumer
                and other
            
            
            13,864
            
            
            14,982
            
            
            (1,118
            )
            
            -7.46
            %
            
            243
            
            
            273
            
            
            (30
            )
            
            -10.99
            %
            
            6.95
            %
            
            7.23
            %
            
            -0.28
            %Total
                loans
            
            
            940,608
            
            
            932,980
            
            
            7,628
            
            
            0.82
            %
            
            17,814
            
            
            17,595
            
            
            219
            
            
            1.24
            %
            
            7.51
            %
            
            7.48
            %
            
            0.03
            %Investment
                securities:Taxable
            
            
            165,673
            
            
            171,401
            
            
            (5,728
            )
            
            -3.34
            %
            
            1,955
            
            
            2,008
            
            
            (53
            )
            
            -2.64
            %
            
            4.72
            %
            
            4.69
            %
            
            0.03
            %Tax-exempt
            
            
            84,987
            
            
            98,891
            
            
            (13,904
            )
            
            -14.06
            %
            
            1,129
            
            
            1,302
            
            
            (173
            )
            
            -13.29
            %
            
            5.31
            %
            
            5.26
            %
            
            0.05
            %Total
                investment securities
            
            
            250,660
            
            
            270,292
            
            
            (19,632
            )
            
            -7.26
            %
            
            3,084
            
            
            3,310
            
            
            (226
            )
            
            -6.83
            %
            
            4.92
            %
            
            4.90
            %
            
            0.02
            %Federal
                  funds sold and short-term investments
            
            
            9,436
            
            
            21,006
            
            
            (11,570
            )
            
            -55.08
            %
            
            122
            
            
            288
            
            
            (166
            )
            
            -57.64
            %
            
            5.16
            %
            
            5.43
            %
            
            -0.27
            %Total
                interest-earning assets
            
            $
            1,200,704
            
            $
            1,224,278
            
            $
            (23,574
            )
            
            -1.93
            %
            
            21,020
            
            
            21,193
            
            
            (173
            )
            
            -0.82
            %
            
            6.95
            %
            
            6.87
            %
            
            0.08
            %Interest-bearing
                liabilities:Deposits:Checking
                  with interest, savings and money markets
            
            $
            307,868
            
            $
            299,936
            
            $
            7,932
            
            
            2.64
            %
            
            2,345
            
            
            2,026
            
            
            319
            
            
            15.75
            %
            
            3.02
            %
            
            2.68
            %
            
            0.34
            %Time
                deposits
            
            
            413,175
            
            
            553,475
            
            
            (140,300
            )
            
            -25.35
            %
            
            5,306
            
            
            6,927
            
            
            (1,621
            )
            
            -23.40
            %
            
            5.10
            %
            
            4.96
            %
            
            0.14
            %Total
                deposits
            
            
            721,043
            
            
            853,411
            
            
            (132,368
            )
            
            -15.51
            %
            
            7,651
            
            
            8,953
            
            
            (1,302
            )
            
            -14.54
            %
            
            4.21
            %
            
            4.16
            %
            
            0.05
            %Other
                borrowed funds
            
            
            263,355
            
            
            160,559
            
            
            102,796
            
            
            64.02
            %
            
            3,332
            
            
            2,081
            
            
            1,251
            
            
            60.12
            %
            
            5.02
            %
            
            5.14
            %
            
            -0.12
            %Total
                interest-bearing liabilities
            
            $
            984,398
            
            $
            1,013,970
            
            $
            (29,572
            )
            
            -2.92
            %
            
            10,983
            
            
            11,034
            
            
            (51
            )
            
            -0.46
            %
            
            4.43
            %
            
            4.32
            %
            
            0.11
            %Tax-equivalent
                net interest income
            
            
            
            
            
            
            
            
            
            
            
            
            
            $
            10,037
            
            $
            10,159
            
            $
            (122
            )
            
            -1.20
            %Net
                interest spread
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            2.52
            %
            
            2.55
            %
            
            -0.03
            %Net
                interest margin
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            3.32
            %
            
            3.29
            %
            
            0.03
            %





Data
      for
      the nine months ended September 30:





Average Balance
            
            Interest Income/Expense
            
            Yield/Rate2007
            
            2006
            
            Change
            
            Change-%
            
            2007
            
            2006
            
            Change
            
            Change-%
            
            2007
            
            2006
            
            ChangeInterest-earning
                assets:Loans:Commercial
            
            $
            347,645
            
            $
            344,893
            
            $
            2,752
            
            
            0.80
            %
            $
            20,741
            
            $
            19,692
            
            $
            1,049
            
            
            5.33
            %
            
            7.98
            %
            
            7.63
            %
            
            0.35
            %Real
                estate
            
            
            576,368
            
            
            562,197
            
            
            14,171
            
            
            2.52
            %
            
            31,503
            
            
            29,826
            
            
            1,677
            
            
            5.62
            %
            
            7.31
            %
            
            7.09
            %
            
            0.22
            %Consumer
                and other
            
            
            14,283
            
            
            14,362
            
            
            (79
            )
            
            -0.55
            %
            
            779
            
            
            744
            
            
            35
            
            
            4.70
            %
            
            7.29
            %
            
            6.93
            %
            
            0.36
            %Total
                loans
            
            
            938,296
            
            
            921,452
            
            
            16,844
            
            
            1.83
            %
            
            53,023
            
            
            50,262
            
            
            2,761
            
            
            5.49
            %
            
            7.56
            %
            
            7.29
            %
            
            0.27
            %Investment
                securities:Taxable
            
            
            168,505
            
            
            172,872
            
            
            (4,367
            )
            
            -2.53
            %
            
            5,911
            
            
            5,929
            
            
            (18
            )
            
            -0.30
            %
            
            4.68
            %
            
            4.57
            %
            
            0.11
            %Tax-exempt
            
            
            87,716
            
            
            99,388
            
            
            (11,672
            )
            
            -11.74
            %
            
            3,460
            
            
            3,899
            
            
            (439
            )
            
            -11.26
            %
            
            5.26
            %
            
            5.23
            %
            
            0.03
            %Total
                investment securities
            
            
            256,221
            
            
            272,260
            
            
            (16,039
            )
            
            -5.89
            %
            
            9,371
            
            
            9,828
            
            
            (457
            )
            
            -4.65
            %
            
            4.88
            %
            
            4.81
            %
            
            0.07
            %Federal
                  funds sold and short-term investments
            
            
            17,394
            
            
            16,525
            
            
            869
            
            
            5.26
            %
            
            682
            
            
            633
            
            
            49
            
            
            7.74
            %
            
            5.24
            %
            
            5.12
            %
            
            0.12
            %Total
                interest-earning assets
            
            $
            1,211,911
            
            $
            1,210,237
            
            $
            1,674
            
            
            0.14
            %
            
            63,076
            
            
            60,723
            
            
            2,353
            
            
            3.87
            %
            
            6.96
            %
            
            6.71
            %
            
            0.25
            %Interest-bearing
                liabilities:Deposits:Checking
                  with interest, savings and money markets
            
            $
            301,168
            
            $
            309,274
            
            $
            (8,106
            )
            
            -2.62
            %
            
            6,678
            
            
            5,794
            
            
            884
            
            
            15.26
            %
            
            2.96
            %
            
            2.50
            %
            
            0.46
            %Time
                deposits
            
            
            426,217
            
            
            515,493
            
            
            (89,276
            )
            
            -17.32
            %
            
            16,228
            
            
            17,916
            
            
            (1,688
            )
            
            -9.42
            %
            
            5.09
            %
            
            4.65
            %
            
            0.44
            %Total
                deposits
            
            
            727,385
            
            
            824,767
            
            
            (97,382
            )
            
            -11.81
            %
            
            22,906
            
            
            23,710
            
            
            (804
            )
            
            -3.39
            %
            
            4.21
            %
            
            3.84
            %
            
            0.37
            %Other
                borrowed funds
            
            
            270,226
            
            
            174,581
            
            
            95,645
            
            
            54.79
            %
            
            10,244
            
            
            6,604
            
            
            3,640
            
            
            55.12
            %
            
            5.07
            %
            
            5.06
            %
            
            0.01
            %Total
                interest-bearing liabilities
            
            $
            997,611
            
            $
            999,348
            
            $
            (1,737
            )
            
            -0.17
            %
            
            33,150
            
            
            30,314
            
            
            2,836
            
            
            9.36
            %
            
            4.44
            %
            
            4.06
            %
            
            0.38
            %Tax-equivalent
                net interest income
            
            
            
            
            
            
            
            
            
            
            
            
            
            $
            29,926
            
            $
            30,409
            
            $
            (483
            )
            
            -1.59
            %Net
                interest spread
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            2.52
            %
            
            2.65
            %
            
            -0.13
            %Net
                interest margin
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            3.30
            %
            
            3.36
            %
            
            -0.06
            %





11





Fluctuations
      in net interest income can result from the combination of changes in the
      balances of asset and liability categories and changes in interest rates. Net
      interest margin is a measure of the net return on interest-earning assets and
      is
      computed by dividing annualized tax-equivalent net interest income by the
      average of total interest-earning assets for the period. The net interest margin
      for the third quarter of 2007 was 3.32 percent, a 3 basis point increase
      compared to the same quarter last year and a 1 basis point decline from the
      second quarter of 2007.





The
      Company’s tax-equivalent net interest income for the nine months ended September
      30, 2007, declined $483 compared to the nine months ended September 30, 2006.
      The net interest margin for the first nine months of 2007 declined to 3.30
      percent compared to 3.36 percent for the same period in 2006. The relatively
      flat yield curve, where short-term interest rates are not significantly lower
      than long-term rates, continued to negatively impact the net interest margin.
      In
      addition, the Federal Reserve reduced the federal funds rates by 50 basis points
      in late September 2007. This caused the first market change in prime rate since
      June 2006. West Bank’s prime interest rate was lowered accordingly.
      Approximately one half of the bank’s loan portfolio is priced on a variable
      basis using the prime rate benchmark. Interest rates paid on deposits generally
      decline more gradually.





Taxable-equivalent
      interest income and fees on loans increased $2.8 million in the first nine
      months of 2007 compared to the same period in 2006, due to the combination
      of a
      higher volume of outstanding loans and increasing yields. Average loans were
      $16.8 million higher than the first nine months of 2006 and the average yield
      on
      loans increased to 7.56 percent for the first nine months of 2007, compared
      to
      7.29 percent for the same period in 2006. The yield on the Company’s loan
      portfolio is affected by the mix of the portfolio, the effects of competition,
      the interest rate environment and the amount of non-accrual loans. The interest
      rate environment can influence the volume of new loan originations and the
      mix
      of variable rate versus fixed rate loans. Loan pricing in the Company’s market
      areas remains very competitive.





Through
      September 30, 2007, the average balance of investment securities was $16.0
      million lower than in the first nine months of 2006, while the yield increased
      7
      basis points. There have been minimal purchases of investment securities during
      the first nine months of 2007 as yields on short-term investments have
      approximated those of longer-term investment securities.





The
      average rate paid on deposits for the first nine months of 2007 increased to
      4.21 percent from 3.84 percent for the same period last year. This increase
      is
      primarily the result of an increase in market interest rates and the shift
      in
      funds from money market and savings accounts to a market rate interest-bearing
      checking account and certificates of deposits. Clients have made these transfers
      to maximize earnings. The reduction in average time deposits in the first nine
      months of 2007 compared to the same period in 2006 was primarily due to using
      fewer wholesale certificates of deposit as a source of funding loan
      growth.





The
      average rate paid on other borrowings increased only one basis point compared
      to
      the first nine months of 2006. The average balance of borrowings for the first
      nine months of 2007 was $95.6 million higher than a year ago and the mix of
      borrowings has changed significantly since last year. Overnight borrowings
      in
      the form of federal funds purchased from correspondent banks and securities
      sold
      under agreements to repurchase averaged $58.2 million more than in the first
      nine months of 2006. The average rate paid on those additional borrowings
      increased 46 basis points in 2007 compared to the first nine months of 2006.
      Average long-term borrowings increased $33.0 million, while the rates paid
      on
      those additional borrowings declined 34 basis points compared to
      2006.





12





Provision
      for Loan Losses and the Related Allowance for Loan Losses





The
      following table sets forth the activity in the Allowance for Loan Losses for
      the
      three and nine months ended September 30, 2007 and 2006, as well as common
      ratios related to the allowance for loan losses.





Three Months Ended September 30,
            
            Nine Months Ended September 30,2007
            
            2006
            
            Change
            
            2007
            
            2006
            
            ChangeBalance
                at beginning of period
            
            $
            8,779
            
            $
            8,440
            
            $
            339
            
            $
            8,494
            
            $
            7,615
            
            $
            879Charge-offs
            
            
            (390
            )
            
            (721
            )
            
            331
            
            
            (876
            )
            
            (821
            )
            
            (55
            )Recoveries
            
            
            16
            
            
            9
            
            
            7
            
            
            137
            
            
            34
            
            
            103Net
                charge-offs
            
            
            (374
            )
            
            (712
            )
            
            338
            
            
            (739
            )
            
            (787
            )
            
            48Provision
                charged to operations
            
            
            500
            
            
            450
            
            
            50
            
            
            1,150
            
            
            1,350
            
            
            (200
            )Balance
                at end of period
            
            $
            8,905
            
            $
            8,178
            
            $
            727
            
            $
            8,905
            
            $
            8,178
            
            $
            727Average
                loans outstanding
            
            $
            940,608
            
            $
            932,980
            
            $
            7,628
            
            $
            938,296
            
            $
            921,452
            
            $
            16,844Ratio
                  of net charge-offs during theperiod
                  to average loans outstanding
            
            
            0.04
            %
            
            0.08
            %
            
            
            
            
            0.08
            %
            
            0.09
            %Ratio
                  of allowance for loan lossesto
                  average loans outstanding
            
            
            0.95
            %
            
            0.88
            %
            
            
            
            
            0.95
            %
            
            0.89
            %





The
      provision for loan losses represents charges made to earnings to maintain an
      adequate allowance for loan losses. The allowance for loan losses is
      management’s best estimate of probable losses inherent in the loan portfolio as
      of the balance sheet date. Factors considered in establishing an appropriate
      allowance include: an assessment of the financial condition of the borrower;
      a
      realistic determination of value and adequacy of underlying collateral; the
      condition of the local economy and the condition of the specific industry of
      the
      borrower; an analysis of the levels and trends of loan categories; and a review
      of delinquent and classified loans.





Net
      charge-offs during the first nine months of 2007 were $48 lower than in the
      same
      period in 2006. The majority of the charge-offs were for 1-4 family real estate
      and commercial loans. One commercial loan accounted for $333 of the third
      quarter 2007 charge-offs. The net charge-off ratio for the nine months ended
      September 30, 2007, was 0.08 percent compared to 0.09 percent for the nine
      months ended September 30, 2006. Management considers this ratio to be good
      when
      compared to West Bank’s peers which had net charge-offs averaging 0.13 percent
      for the first half of 2007 according to the June 2007 Bank Holding Company
      Performance Report prepared by the Federal Reserve Board’s Division of Banking
      Supervision and Regulation. Significant efforts continue to be made to maximize
      recoveries.





The
      allowance for loan losses represented 915 percent of non-accrual loans and
      loans
      past due more than 90 days at September 30, 2007, compared to 1,307 percent
      at
      December 31, 2006. The ratio has declined due to the increase in non-accrual
      loans.





The
      adequacy of the allowance for loan losses is evaluated quarterly by management
      and reviewed by the West Bank Board of Directors. This evaluation focuses on
      specific loan reviews, changes in the type and volume of the loan portfolio
      given the current and forecasted economic conditions, and historical loss
      experience. Any one of the following conditions may result in the review of
      a
      specific loan: concern about whether the customer’s cash flow or net worth is
      sufficient to repay the loan; delinquency status; criticism of the loan in
      a
      regulatory examination; the suspension of interest accrual; or other reasons,
      including when the loan has other special or unusual characteristics that
      suggest special monitoring is warranted.





While
      management uses available information to recognize losses on loans, further
      reduction in the carrying amounts of loans may be necessary based on changes
      in
      local economic conditions. In addition, regulatory agencies, as an integral
      part
      of their examination process, periodically review the estimated losses on loans.
      Such agencies may require the Company to recognize additional losses based
      on
      their judgment about information available to them at the time of their
      examinations.




13





There
      has
      been a significant amount of publicity in the national media regarding sub-prime
      single-family mortgages and increases in foreclosure rates. West Bank has not
      and does not originate sub-prime single-family mortgages. In addition, West
      Bank
      does not directly invest in sub-prime mortgages in its investment portfolio
      and
      the amount, if any, of sub-prime mortgages securing mortgage backed securities
      owned by West Bank is not a material amount of the investment portfolio. While
      the foreclosure rate in Iowa has been increasing, the Company does not expect
      this to have a material impact on its operations. For several years, the
      majority of mortgage loans originated by West Bank have been sold in the
      secondary market and not retained on the Company’s books. West Bank has owned a
      portfolio of single-family loans for several years that may from time to time
      result in foreclosures, but the number of foreclosures is not expected to be
      material.





West
      Bank
      does have a significant portion of its loan portfolio in construction and
      commercial real estate loans. The slowdown in the real estate market has
      resulted in fewer new loans in these categories. West Bank believes these loans
      are adequately secured but it is difficult to predict the consequences from
      any
      further downturn in the real estate market. See also the discussion of
      nonperforming assets later in this report.





Noninterest
      Income





The
      following table shows the variance from the prior year in the noninterest income
      categories shown in the Consolidated Statements of Income. In addition, accounts
      within the “Other income” category that represent significant variances are
      shown.





Three Months Ended September 30,2007
            
            2006
            
            Change
            
            Change-%Noninterest
                income:Service
                charges on deposit accounts
            
            $
            1,244
            
            $
            1,371
            
            $
            (127
            )
            
            -9.26
            %Trust
                services
            
            
            195
            
            
            208
            
            
            (13
            )
            
            -6.25
            %Investment
                advisory fees
            
            
            1,968
            
            
            2,003
            
            
            (35
            )
            
            -1.75
            %Increase
                  in cash value of bank-ownedlife
                  insurance
            
            
            226
            
            
            215
            
            
            11
            
            
            5.12
            %Net
                  realized gains (losses) fromsales
                  of securities
            
            
            11
            
            
            (3
            )
            
            14
            
            
            466.67
            %Other:Debit
                card usage fees
            
            
            89
            
            
            55
            
            
            34
            
            
            61.82
            %Check
                printing fees
            
            
            32
            
            
            33
            
            
            (1
            )
            
            -3.03
            %Visa/Mastercard
                income
            
            
            45
            
            
            46
            
            
            (1
            )
            
            -2.17
            %Gain
                on sale of residential mortgages
            
            
            49
            
            
            28
            
            
            21
            
            
            75.00
            %Other
                loan fees
            
            
            8
            
            
            10
            
            
            (2
            )
            
            -20.00
            %All
                other
            
            
            182
            
            
            184
            
            
            (2
            )
            
            -1.09
            %Total
                other
            
            
            405
            
            
            356
            
            
            49
            
            
            13.76
            %Total
                noninterest income
            
            $
            4,049
            
            $
            4,150
            
            $
            (101
            )
            
            -2.43
            %





14





Nine Months Ended September 30,2007
            
            2006
            
            Change
            
            Change-%Noninterest
                income:Service
                charges on deposit accounts
            
            $
            3,583
            
            $
            3,492
            
            $
            91
            
            
            2.61
            %Trust
                services
            
            
            564
            
            
            571
            
            
            (7
            )
            
            -1.23
            %Investment
                advisory fees
            
            
            5,970
            
            
            6,364
            
            
            (394
            )
            
            -6.19
            %Increase
                  in cash value of bank-ownedlife
                  insurance
            
            
            661
            
            
            637
            
            
            24
            
            
            3.77
            %Net
                  realized gains (losses) fromsales
                  of securities
            
            
            2
            
            
            (147
            )
            
            149
            
            
            101.36
            %Other:Debit
                card usage fees
            
            
            258
            
            
            167
            
            
            91
            
            
            54.49
            %Check
                printing fees
            
            
            99
            
            
            116
            
            
            (17
            )
            
            -14.66
            %Visa/Mastercard
                income
            
            
            152
            
            
            121
            
            
            31
            
            
            25.62
            %Gain
                on sale of residential mortgages
            
            
            87
            
            
            57
            
            
            30
            
            
            52.63
            %Other
                loan fees
            
            
            18
            
            
            55
            
            
            (37
            )
            
            -67.27
            %All
                other
            
            
            560
            
            
            558
            
            
            2
            
            
            0.36
            %Total
                other
            
            
            1,174
            
            
            1,074
            
            
            100
            
            
            9.31
            %Total
                noninterest income
            
            $
            11,954
            
            $
            11,991
            
            $
            (37
            )
            
            -0.31
            %





Year-to-date
      service charges on deposit accounts increased primarily because of implementing
      pricing changes for return check charges in the third quarter of 2006. However,
      return check charges have declined in the third quarter of 2007 compared to
      the
      same quarter of last year, as some customers are more closely monitoring their
      account balances.





Investment
      advisory fees are fees earned by WB Capital. The decline in investment advisory
      fees in 2007 compared to 2006 was due to a reduction in certain fee schedules
      and a lower level of assets under management in certain categories.





The
      Company recognized losses from the sale of investment securities in the first
      nine months of 2006 as lower yielding investments were sold with the proceeds
      being reinvested at higher yields. Through September 30, 2007, debit card usage
      fees continued to increase as a result of higher usage of this convenient
      payment method. Meanwhile, check printing income declined as customers continue
      to increase utilization of all forms of electronic payments, thus reducing
      the
      frequency of ordering checks. Year-to-date revenue from Visa/MasterCard
      increased as a result of the fees earned on an additional volume of cards
      issued, along with a rate increase in July 2006 on lower performing merchants.
      The volume of originations of residential mortgages sold into the secondary
      market has begun to increase because one staff member has been assigned
      full-time to this line of business since May 2007 As a result, the average
      income per residential loan increased approximately 22 basis points in the
      first
      nine months of 2007 compared to the prior year. Year-to-date other loan fees
      are
      lower than in 2006 as the prior year included a one-time fee for the origination
      of a loan on behalf of an insurance company.





15





Noninterest
      Expense





The
      following table shows the variance from the prior year in the noninterest
      expense categories shown in the Consolidated Statements of Income. In addition,
      accounts within the “Other expenses” category that represent significant
      variances are shown.





Three
                Months Ended September 30,2007
            
            2006
            
            Change
            
            Change-%Noninterest
                expense:Salaries
                and employee benefits
            
            $
            3,354
            
            $
            3,323
            
            $
            31
            
            
            0.93
            %Occupancy
            
            
            879
            
            
            826
            
            
            53
            
            
            6.42
            %Data
                processing
            
            
            472
            
            
            448
            
            
            24
            
            
            5.36
            %Other:Insurance
            
            
            72
            
            
            64
            
            
            8
            
            
            12.50
            %Marketing
            
            
            86
            
            
            164
            
            
            (78
            )
            
            -47.56
            %Business
                development
            
            
            77
            
            
            75
            
            
            2
            
            
            2.67
            %Professional
                fees
            
            
            169
            
            
            257
            
            
            (88
            )
            
            -34.24
            %Director
                fees
            
            
            69
            
            
            37
            
            
            32
            
            
            86.49
            %Recruitment
                fees
            
            
            77
            
            
            18
            
            
            59
            
            
            327.78
            %Loss
                on disposal of fixed assets
            
            
            7
            
            
            -
            
            
            7
            
            
            N/AOther
                real estate owned expense
            
            
            (22
            )
            
            2
            
            
            (24
            )
            
            -1200.00
            %Intangible
                amortization
            
            
            214
            
            
            221
            
            
            (7
            )
            
            -3.17
            %All
                other
            
            
            682
            
            
            662
            
            
            20
            
            
            3.02
            %Total
                other
            
            
            1,431
            
            
            1,500
            
            
            (69
            )
            
            -4.60
            %Total
                noninterest expense
            
            $
            6,136
            
            $
            6,097
            
            $
            39
            
            
            0.64
            %





Nine
                Months Ended September 30,2007
            
            2006
            
            Change
            
            Change-%Noninterest
                expense:Salaries
                and employee benefits
            
            $
            10,325
            
            $
            10,490
            
            $
            (165
            )
            
            -1.57
            %Occupancy
            
            
            2,710
            
            
            2,548
            
            
            162
            
            
            6.36
            %Data
                processing
            
            
            1,412
            
            
            1,433
            
            
            (21
            )
            
            -1.47
            %Other:Insurance
            
            
            211
            
            
            185
            
            
            26
            
            
            14.05
            %Marketing
            
            
            344
            
            
            370
            
            
            (26
            )
            
            -7.03
            %Business
                development
            
            
            275
            
            
            236
            
            
            39
            
            
            16.53
            %Professional
                fees
            
            
            526
            
            
            596
            
            
            (70
            )
            
            -11.74
            %Director
                fees
            
            
            188
            
            
            112
            
            
            76
            
            
            67.86
            %Recruitment
                fees
            
            
            77
            
            
            37
            
            
            40
            
            
            108.11
            %Loss
                on disposal of fixed assets
            
            
            50
            
            
            -
            
            
            50
            
            
            N/AOther
                real estate owned expense
            
            
            (266
            )
            
            (5
            )
            
            (261
            )
            
            5220.00
            %Intangible
                amortization
            
            
            642
            
            
            663
            
            
            (21
            )
            
            -3.17
            %All
                other
            
            
            2,004
            
            
            1,926
            
            
            78
            
            
            4.05
            %Total
                other
            
            
            4,051
            
            
            4,120
            
            
            (69
            )
            
            -1.67
            %Total
                noninterest expense
            
            $
            18,498
            
            $
            18,591
            
            $
            (93
            )
            
            -0.50
            %


16





The
      decline in year-to-date salaries and benefits resulted from a reduction in
      full-time equivalent employees due to certain positions that were eliminated
      and
      other positions experiencing turnover, and a reduction in certain benefit
      expenses. Several business development staff members were hired prior to the
      end
      of September 2007.





Year-to-date
      occupancy expenses were higher in 2007 due to the relocation of one of the
      Des
      Moines metropolitan branches to a rented facility in a higher traffic location
      during the third quarter of 2006 and additional space rented for certain West
      Bank operational departments. The Company continues to market excess space
      available in the facility in which WB Capital is located in West Des Moines.
      There were savings realized by relocating the Cedar Rapids office of WB Capital
      to the Coralville bank office during the second quarter of 2007.





Marketing
      expenses in 2007 have been lower than during the first nine months of 2006
      due
      to the timing of several initiatives which are in process. Business development
      costs during the same time period increased due to continued efforts to increase
      and expand current and new customer relationships.





Year-to-date
      insurance expense increased as the Company’s director’s and officer’s policy
      renewed in the third quarter of 2007 at a premium which was significantly higher
      than at the renewal date three years ago. Professional fees declined in the
      first nine months of 2007 due to lower legal fees and 2006 expense included
      acquisition costs of Investors Management Group. Legal fees in 2006 were higher
      because of one non-accrual loan and the cost of defending a lawsuit which was
      dismissed in the fourth quarter of 2006.





Director
      fees increased for the nine months ended September 30, 2007, compared to the
      same period in 2006 as the result of an increase in quarterly retainer and
      meeting fees. In the current tight job market, recruitment fees were paid to
      executive search firms in the third quarter of 2007 related to the hiring of
      several business development personnel. The loss on disposal of fixed assets
      in
      2007 is primarily related to relocating the Cedar Rapids office of WB Capital.
      Other real estate owned expense has declined as a result of selling several
      other real estate properties at gains. One sale of farmland in eastern Iowa
      resulted in a gain of $272, of which $22 was recorded in the third quarter
      of
      2007.





Income
      Tax Expense





The
      Company incurred income tax expense of $6.5 million for the nine months ended
      September 30, 2007, compared to $6.7 million for the nine months ended September
      30, 2006. The effective income tax rate as a percent of income before taxes
      for
      the nine months ended September 30, 2007 and 2006, were 31.1 and 31.9 percent,
      respectively. The lower effective rate in 2007 is primarily due to West Bank
      investing in a qualified community development entity which qualified for a
      Federal New Market Tax credit. The reduction in tax expense for the third
      quarter of 2007 for this credit was $163 and an additional $54 will be
      recognized in the fourth quarter.





The
      Company adopted the provisions of Financial Accounting Standards Board (FASB)
      Interpretation No. 48, *Accounting
      for Uncertainty in Income Taxes* ,
      effective January 1, 2007 *.* The
      Interpretation provides clarification on accounting for uncertainty in income
      taxes recognized in an enterprise’s financial statements in accordance with FASB
      Statement of Financial Accounting Standard (SFAS) No. 109, *Accounting
      for Income Taxes.* The
      Interpretation prescribes a recognition threshold and measurement attribute
      for
      the financial statement recognition and measurement of a tax position taken
      or
      expected to be taken in a tax return. As a result of the Company’s evaluation of
      the implementation of FIN 48, no significant income tax uncertainties were
      identified. Therefore, the Company recognized no adjustment for unrecognized
      income tax benefits during the nine months ended September 30,
      2007.




17





FINANCIAL
      CONDITION





Total
      assets approximated $1.3 billion as of September 30, 2007, and December 31,
      2006. The 2.3 percent increase was primarily due to increased loan
      volumes.





Investment
      Securities





Investment
      securities available for sale declined approximately $14.5 million from December
      31, 2006, to $242.3 million. The decline was primarily the result of maturities
      within the portfolio. On a quarterly basis, the investment securities portfolio
      is reviewed for other-than-temporary impairment. As of September 30, 2007,
      existing unrealized losses are considered to be temporary in nature due to
      market interest rate fluctuations and accordingly, no impairment adjustment
      has
      been recorded.





Loans
      and
      Non-performing Assets





Loans
      outstanding increased approximately $39 million from December 31, 2006, to
      September 30, 2007. The increase was primarily attributable to growth in
      commercial and commercial real estate construction loans. Offsetting these
      increases was a decline of approximately $12 million in residential construction
      loans as that market has softened. West Bank has new loans in process which
      should result in similar loan growth in the fourth quarter of 2007.





The
      following table sets forth the amount of non-performing loans and assets held
      by
      the Company and common ratio measurements of those items.





September 30, 2007
            
            December 31, 2006
            
            ChangeNon-accrual
                loans
            
            $
            880
            
            $
            495
            
            $
            385Loans
                past due 90 days and still accruing interest
            
            
            93
            
            
            155
            
            
            (62
            )Total
                non-performing loans
            
            
            973
            
            
            650
            
            
            323Other
                real estate owned
            
            
            325
            
            
            2,002
            
            
            (1,677
            )Total
                non-performing assets
            
            $
            1,298
            
            $
            2,652
            
            $
            (1,354
            )Non-performing
                loans to total loans
            
            
            0.10
            %
            
            0.07
            %
            
            0.03
            %Non-performing
                assets to total loans
            
            
            0.14
            %
            
            0.29
            %
            
            -0.15
            %Non-performing
                assets to total assets
            
            
            0.10
            %
            
            0.21
            %
            
            -0.11
            %





Total
      non-performing assets have declined 51 percent since the end of 2006. The
      balance of loans in non-accrual status grew to $880 at September 30, 2007,
      from
      $605 at June 30, 2007, and consisted of loans to nine different borrowers.
      One
      loan accounted for $333 of the increase in non-accrual loans from the balance
      of
      $495 at December 31, 2006. Other real estate owned declined significantly since
      December 31, 2006, as a result of selling farmland in the second quarter of
      2007
      which had a carrying value of $1.6 million.





Reference
      is also made to the information and discussion earlier in this report under
      the
      heading “Provision for Loan Losses and the Related Allowance for Loan
      Losses.”





Deposits





Total
      deposits were $858 million as of September 30, 2007, a decline of 7.3 percent
      compared to December 31, 2006 balances. The savings category of deposits which
      includes money market accounts, which are liquid accounts and therefore pay
      relatively lower interest rates, declined approximately $14.5 million compared
      to the end of the prior year. A portion of those funds moved into the time
      certificates of deposit category as customers attempted to increase interest
      earned on those funds. Other time deposits increased $45.2 million in 2007
      primarily due to an increase in the level of brokered certificates of deposit.
      Time deposits in excess of $100,000 declined $83.6 million in 2007 as West
      Bank
      reduced its reliance on public unit deposit funding and increased its borrowings
      as described below.


18


Borrowings





The
      balance of federal funds purchased and securities sold under agreement to
      repurchase was $131.1 million at September 30, 2007, up from $109.3 million
      at
      December 31, 2006. The increase was primarily in federal funds purchased, which
      includes funds sold to West Bank by approximately 25 banks throughout Iowa
      as
      part of the correspondent bank services provided by West Bank. The balance
      of
      federal funds purchased from correspondent banks throughout Iowa will fluctuate
      depending upon the loan demand and investment strategy of those banks. The
      amount of funds sold to West Bank by these banks is at a higher level than
      has
      been the case at this time of year in prior years. West Bank also purchases
      federal funds from regional and national correspondent banks as necessary for
      short-term liquidity needs. The balance of other short-term borrowings consisted
      of a $50 million one-week advance from the Federal Home Loan Bank of Des Moines
      (“FHLB”) and Treasury, Tax and Loan option notes. The rate on the FHLB advance
      was approximately 66 basis points lower than the rate charged by regional and
      national correspondent banks at that date. Long-term borrowings increased $17.9
      million compared to December 31, 2006, as the result of debt repayments which
      were offset by a January 2007 10-year FHLB advance of $30 million, which has
      a
      rate of 4.32 percent. The FHLB advance is callable after three
      years.





Liquidity
      and Capital Resources





The
      objective of liquidity management is to ensure the availability of sufficient
      cash flows to meet all corporate financial commitments and to capitalize on
      opportunities for profitable business expansion. The Company’s principal source
      of funds is deposits, which include demand, money market, savings and
      certificates of deposit. Other sources include principal repayments on loans,
      proceeds from the maturity and sale of investment securities, federal funds
      purchased, repurchase agreements, advances from the FHLB, and funds provided
      by
      operations. Liquidity management is conducted on both a daily and a long-term
      basis. Investments in liquid assets are adjusted based on expected loan demand,
      projected loan maturities and payments, expected deposit flows, and the
      objectives set by the Company’s asset-liability management policy. The Company
      had liquid assets (cash and cash equivalents) of $34.8 million as of September
      30, 2007, compared with $35.7 million as of December 31, 2006. Securities
      available for sale may be sold prior to maturity to meet liquidity needs, to
      respond to market changes, or to adjust the Company’s interest rate risk
      position. West Bank had additional borrowing capacity available from the FHLB
      of
      approximately $56.8 million at September 30, 2007, and the Company has a $2.5
      million unsecured line of credit through a large regional correspondent bank.
      In
      addition, West Bank has $95 million available through unsecured federal funds
      lines of credit with correspondent banks. West Bank had borrowed $18.2 million
      on those lines of credit at September 30, 2007. The combination of high levels
      of potentially liquid assets, cash flows from operations and additional
      borrowing capacity provided strong liquidity for the Company at September 30,
      2007.





The
      Company’s total stockholders’ equity increased to $120.0 million at September
      30, 2007, from $113.8 million at December 31, 2006. Total equity increased
      due
      to earnings, less dividend payments equal to approximately 58 percent of
      year-to-date earnings, and a reduction in accumulated other comprehensive loss
      due to improvements in market values of investment securities held for sale.
      Total stockholders' equity was 9.25 and 8.97 percent of total assets as of
      September 30, 2007, and December 31, 2006, respectively. No material capital
      expenditures or material changes in the capital resource mix are anticipated
      at
      this time.





Quantitative
      measures established by regulation to ensure capital adequacy require the
      Company and West Bank to maintain minimum amounts and ratios (set forth in
      the
      following table) of total and Tier 1 capital to risk-weighted assets and of
      Tier
      1 capital to average assets. Management believes the capital levels of the
      Company and West Bank met all capital adequacy requirements to which they were
      subject at September 30, 2007.


19





Regulatoryrequirements
                to be:
            
            Actual
                RegulatoryAdequately
            
            Well-
            
            Capital
                Ratios as of:Capitalized
            
            Capitalized
            
            September 30, 2007
            
            December 31, 2006Total
                risk-based capital as % of risk-weighted assets:Consolidated
            
            
            8.0
            %
            
            n/a
            
            
            11.5
            %
            
            11.2
            %West
                Bank
            
            
            8.0
            %
            
            10.0
            %
            
            11.0
            %
            
            11.8
            %Tier
                1 capital as % of risk-weighted assets:Consolidated
            
            
            4.0
            %
            
            n/a
            
            
            10.6
            %
            
            10.4
            %West
                Bank
            
            
            4.0
            %
            
            6.0
            %
            
            9.3
            %
            
            9.0
            %Tier
                1 capital as % average assets:Consolidated
            
            
            4.0
            %
            
            n/a
            
            
            9.0
            %
            
            8.5
            %West
                Bank
            
            
            4.0
            %
            
            5.0
            %
            
            7.8
            %
            
            7.3
            %





On
      April
      18, 2007, the Company’s Board of Directors authorized $5 million to be used
      during the following 12 months for the buy-back of Company common stock. No
      repurchases took place during the nine months ended September 30, 2007, under
      the current or previous authorizations.





Market
      Risk Management





Market
      risk is the risk of earnings volatility that results from adverse changes in
      interest rates and market prices. The Company's market risk is primarily
      interest rate risk arising from its core banking activities of lending and
      deposit taking. Interest rate risk is the risk that changes in market interest
      rates may adversely affect the Company's net interest income. Management
      continually develops and implements strategies to mitigate this risk. The
      analysis of the Company’s interest rate risk was presented in the Form 10-K
      filed with the Securities and Exchange Commission on March 9, 2007 and is
      incorporated herein by reference. The Company has not experienced any material
      changes to its market risk position since December 31, 2006. Management does
      not
      believe the Company's primary market risk exposures and how those exposures
      were
      managed in the first nine months of 2007 changed when compared to
      2006.





Item
      3.
      Quantitative and Qualitative Disclosures about Market Risk.





The
      information appearing above under the heading “Market Risk Management” is
      incorporated herein by reference.





Item
      4.
      Controls and Procedures





a. Evaluation
      of disclosure controls and procedures. As of the end of the period covered
      by
      this report, an evaluation of the effectiveness of the Company’s disclosure
      controls and procedures (as defined in Exchange Act Rule 240.13a-15(f)) as
      of
      the end of the period covered by this report was performed under the supervision
      and with the participation of the Company’s Chief Executive Officer and Chief
      Financial Officer. Based on that evaluation, the Chief Executive Officer and
      the
      Chief Financial Officer have concluded that the Company’s current disclosure
      controls and procedures are effective to ensure that information required to
      be
      disclosed by the Company in the reports that it files or submits under the
      Exchange Act is recorded, processed, summarized and reported, within the time
      periods specified in the Securities and Exchange Commission’s rules and
      forms.





b. Changes
      in internal controls over financial reporting. There were no changes in the
      Company's internal control over financial reporting that occurred during the
      period covered by this report that have materially affected, or are reasonably
      likely to materially affect, the Company’s internal control over financial
      reporting.





20


Part
      II – OTHER INFORMATION





Item
      1.
      Legal Proceedings





The
      Company and its subsidiaries from time to time are party to various legal
      actions arising in the normal course of business. Management believes, as of
      the
      date of this Form 10-Q, that there is no threatened or pending proceeding
      against the Company or its subsidiaries which, if determined adversely, would
      have a material adverse effect on the business or financial position of the
      Company or its subsidiaries.





Item
      1A.
      Risk Factors





Management
      of the Company does not believe there have been any material changes in the
      risk
      factors that were disclosed in the Form 10-K filed with the Securities and
      Exchange Commission on March 9, 2007.





Item
      2.
      Unregistered Sales of Equity Securities and Use of Proceeds





During
      the first nine months of 2007, there were no purchases of the Company’s common
      shares under the $5 million stock buy-back plan approved by the Board of
      Directors on April 18, 2007, or the previous stock buy-back plan approved in
      April 2006.


21





Item
      6.
      Exhibits





The
      following exhibits are filed as part of this report:




Exhibits3.1
            
            Restated
                Articles of Incorporation of the Company(1)3.2
            
            By-laws
                of the Company(1)10.1
            
            Lease
                for Main Bank Facility(1)10.2
            
            Supplemental
                Agreement to Lease for Main Bank Facility(1)10.3
            
            Short-term
                Lease related to Main Bank Facility(1)10.4
            
            Assignment(1)10.5
            
            Lease
                Modification Agreement No. 1 for Main Bank Facility(1)10.6
            
            Memorandum
                of Real Estate Contract(1)10.7
            
            Affidavit(1)10.8
            
            Addendum
                to Lease for Main Bank Facility(1)10.9
            
            Data
                Processing Contract(1)10.10
            
            Employment
                Contract(1)10.11
            
            Intentionally
                omitted10.12
            
            Data
                Processing Contract Amendment(2)10.13
            
            Intentionally
                omitted10.14
            
            Intentionally
                omitted10.15
            
            The
                Employee Savings and Stock Ownership Plan, as
                amended(3)10.16
            
            Amendment
                to Lease Agreement(4)10.17
            
            Employment
                Agreement with Scott Eltjes(4)10.18
            
            Consulting
                Agreement with David L. Miller(6)10.19
            
            West
                Bancorporation, Inc. Restricted Stock Compensation
                Plan(5)10.20
            
            Employment
                Agreement between Investors Management Group Ltd. and Jeff
                Lorenzen(7)10.21
            
            Assignment
                and Assumption of Lease and Consent to Assignment(8)10.22
            
            2007
                Amendment to Lease Agreement (9)31.1
            
            Certification
                of Chief Executive Officer under Section 302 of the Sarbanes-Oxley
                Act of
                200231.2
            
            Certification
                of Chief Financial Officer under Section 302 of the Sarbanes-Oxley
                Act of
                200232.1
            
            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
                200232.2
            
            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




(1)
              
              Incorporated
                  herein by reference to the related exhibit filed with the Form
                  10 on March
                  11, 2002.(2)
              
              Incorporated
                  herein by reference to the related exhibit filed with the Form
                  10-K on
                  March 26, 2003.(3)
              
              Incorporated
                  herein by reference to the related exhibit filed with the Form
                  S-8 on
                  October 29, 2004.(4)
              
              Incorporated
                  herein by reference to the related exhibit filed with the Form
                  10-K on
                  March 3, 2005.(5)
              
              Incorporated
                  herein by reference to the definitive proxy statement 14A filed
                  on March
                  10, 2005.(6)
              
              Incorporated
                  herein by reference to the related exhibit filed with the Form
                  10-Q on May
                  6, 2005.(7)
              
              Incorporated
                  herein by reference to the related exhibit filed with the Form
                  8-K on
                  February 22, 2006.(8)
              
              Incorporated
                  herein by reference to the related exhibit filed with the Form
                  10-K on
                  March 8, 2006.(9)
              
              Incorporated
                  herein by reference to the related exhibit filed with the Form
                  10-Q on May
                  4, 2007.




22




SIGNATURES





Pursuant
      to the requirements of the Securities Exchange Act of 1934, the registrant
      has
      duly caused this report to be signed on its behalf by the undersigned, thereunto
      duly authorized.




West
      Bancorporation, Inc.


(Registrant)




November
                  2, 2007
              
              By:
              /s/
                  Thomas E. StanberryDate
              
              Thomas
                  E. StanberryChairman, President and Chief Executive OfficerNovember 2, 2007
              
              By:
              /s/ Douglas R. GullingDate
              
              Douglas R. GullingExecutive Vice President and Chief Financial Officer(Principal Accounting Officer)




23


EXHIBIT
      INDEX





The
      following exhibits are filed herewith:





Exhibit No.
            
            Description31.1
            
            Certification
                of Chief Executive Officer under Section 302 of the Sarbanes-Oxley
                Act of
                200231.2
            
            Certification
                of Chief Financial Officer under Section 302 of the Sarbanes-Oxley
                Act of
                200232.1
            
            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
                200232.2
            
            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




24