<PAGE>
                                    FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

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

<TABLE>
<S>                                                       <C>
 FOR QUARTER ENDED                                        COMMISSION FILE NUMBER
September 30, 2005                                                0-49677
</TABLE>

                            WEST BANCORPORATION, INC.
             (Exact Name of Registrant as Specified in its Charter)

<TABLE>
<S>                                         <C>
          IOWA                                           42-1230603
(State of Incorporation)                    (I.R.S. Employer Identification No.)
</TABLE>

                  1601 22nd Street, West Des Moines, Iowa 50266

                         Telephone Number (515) 222-2300

Indicate by check mark whether the registrant (1) has filed all reports required
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
                                   -----    -----

Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act).

                               Yes   x   No
                                   -----    -----

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

                               Yes       No   x
                                   -----    -----

As of November 2, 2005, there were 16,701,843 shares of common stock, no par
value outstanding.


                                        1

<PAGE>

                         PART I - FINANCIAL INFORMATION
                          Item 1. Financial Statements

                   West Bancorporation, Inc. and Subsidiaries
                           Consolidated Balance Sheets
                                   (unaudited)

<TABLE>
<CAPTION>
                                                                              September 30,    December 31,
                                                                                  2005             2004
                                                                             --------------   --------------
<S>                                                                          <C>              <C>
Assets
Cash and due from banks                                                      $   36,352,953   $   18,686,360
Federal funds sold and other short-term investments                               6,550,686       11,193,099
                                                                             --------------   --------------
   Cash and cash equivalents                                                     42,903,639       29,879,459
                                                                             --------------   --------------
Securities available for sale                                                   288,301,484      281,110,020
Securities held to maturity (approximate market value of $60,141,000
   at December 31, 2004)                                                                 --       59,419,549
Federal Home Loan Bank stock, at cost                                             8,887,800        6,522,800
                                                                             --------------   --------------
   Total securities                                                             297,189,284      347,052,369
                                                                             --------------   --------------
Loans                                                                           830,131,517      725,845,003
   Allowance for loan losses                                                     (7,305,814)      (6,526,824)
                                                                             --------------   --------------
Loans, net                                                                      822,825,703      719,318,179
                                                                             --------------   --------------
Premises and equipment, net                                                       4,700,735        4,309,597
Accrued interest receivable                                                       7,740,989        6,505,047
Goodwill and other intangible assets                                             16,307,447       16,561,810
Bank-owned life insurance                                                        21,885,254       21,256,138
Other assets                                                                      6,858,308        3,551,911
                                                                             --------------   --------------
   Total assets                                                              $1,220,411,359   $1,148,434,510
                                                                             ==============   ==============

Liabilities and Stockholders' Equity
Liabilities
Deposits:
   Noninterest bearing demand                                                $  209,489,389   $  186,710,245
   Savings and interest bearing demand                                          306,115,707      422,560,048
   Time, in excess of $100,000                                                  284,164,042      193,716,248
   Other time                                                                    73,187,964       62,945,833
                                                                             --------------   --------------
   Total deposits                                                               872,957,102      865,932,374
Federal funds purchased and securities sold under agreements to repurchase       78,282,838       74,543,033
Other short-term borrowings                                                      70,862,268        4,668,451
Accrued expenses and other liabilities                                            4,518,657        3,777,903
Subordinated notes                                                               20,619,000       20,619,000
Federal Home Loan Bank advances and other long-term borrowings                   69,645,018       81,273,773
                                                                             --------------   --------------
   Total liabilities                                                          1,116,884,883    1,050,814,534
                                                                             --------------   --------------
Stockholders' Equity
Common stock, no par value; authorized 50,000,000 shares; 16,701,843
   shares issued and outstanding at September 30, 2005 and
   December 31, 2004, respectively                                                3,000,000        3,000,000
Additional paid-in capital                                                       32,000,000       32,000,000
Retained earnings                                                                69,338,133       62,565,046
Accumulated other comprehensive income (loss)                                      (811,657)          54,930
                                                                             --------------   --------------
   Total stockholders' equity                                                   103,526,476       97,619,976
                                                                             --------------   --------------
   Total liabilities and stockholders' equity                                $1,220,411,359   $1,148,434,510
                                                                             ==============   ==============
</TABLE>

See accompanying notes to consolidated financial statements.


                                        2

<PAGE>

                   West Bancorporation, Inc. and Subsidiaries
                        Consolidated Statements of Income
                                   (unaudited)

<TABLE>
<CAPTION>
                                                                   Three Months Ended          Nine Months Ended
                                                                     September 30,               September 30,
                                                               -------------------------   -------------------------
                                                                   2005          2004          2005          2004
                                                               -----------   -----------   -----------   -----------
<S>                                                            <C>           <C>           <C>           <C>
Interest income:
   Loans                                                       $12,980,293   $ 9,457,232   $35,796,213   $27,036,739
   Securities:
      U.S. Treasury, government agencies and corporations        1,708,489     1,674,276     5,366,040     4,391,663
      States and political subdivisions                          1,080,120       613,557     3,063,788     1,581,676
      Other                                                        337,051       643,703     1,363,056     2,083,609
   Federal funds sold and other short-term investments              45,675       183,265       304,712       550,411
                                                               -----------   -----------   -----------   -----------
         Total interest income                                  16,151,628    12,572,033    45,893,809    35,644,098
                                                               -----------   -----------   -----------   -----------
Interest expense:
   Demand deposits                                                  56,511        21,711       126,679        61,515
   Savings deposits                                              1,364,037       820,625     3,771,494     2,398,382
   Time deposits                                                 3,041,428     1,001,957     6,979,239     2,294,109
   Federal funds purchased and securities sold under
      agreements to repurchase                                     611,355       134,899     1,635,455       468,237
   Other short-term borrowings                                     462,218       265,040     1,211,395       347,271
   Subordinated notes                                              370,867       370,867     1,100,616     1,104,611
   Long-term borrowings                                            883,328       938,424     2,635,906     2,795,297
                                                               -----------   -----------   -----------   -----------
         Total interest expense                                  6,789,744     3,553,523    17,460,784     9,469,422
                                                               -----------   -----------   -----------   -----------
         Net interest income                                     9,361,884     9,018,510    28,433,025    26,174,676
Provision for loan losses                                          450,000       325,000     1,325,000       775,000
                                                               -----------   -----------   -----------   -----------
         Net interest income after provision for loan losses     8,911,884     8,693,510    27,108,025    25,399,676
                                                               -----------   -----------   -----------   -----------
Noninterest income:
   Service charges on deposit accounts                           1,214,142     1,339,223     3,500,949     3,759,792
   Trust services                                                  202,475       157,000       531,300       415,500
   Investment advisory fees                                        904,236       711,166     2,478,115     1,900,187
   Increase in cash value of bank-owned life insurance             212,621       213,072       629,117       658,037
   Net realized gains (losses) from sales of securities
      available for sale                                           158,377         1,975       201,565       244,981
   Other income                                                    340,732       334,959     1,226,266     1,042,483
                                                               -----------   -----------   -----------   -----------
         Total noninterest income                                3,032,583     2,757,395     8,567,312     8,020,980
                                                               -----------   -----------   -----------   -----------
Noninterest expense:
   Salaries and employee benefits                                2,579,400     2,408,132     7,743,658     7,297,535
   Occupancy                                                       624,168       494,033     1,817,057     1,499,206
   Data processing                                                 367,753       338,189     1,057,561     1,027,348
   Other expenses                                                1,083,010       918,084     3,241,875     2,880,750
                                                               -----------   -----------   -----------   -----------
         Total noninterest expense                               4,654,331     4,158,438    13,860,151    12,704,839
                                                               -----------   -----------   -----------   -----------
         Income before income taxes                              7,290,136     7,292,467    21,815,186    20,715,817
Income taxes                                                     2,327,432     2,485,641     7,025,214     7,093,924
                                                               -----------   -----------   -----------   -----------
         Net income                                            $ 4,962,704   $ 4,806,826   $14,789,972   $13,621,893
                                                               ===========   ===========   ===========   ===========
Earnings per share, basic                                      $      0.30   $      0.29   $      0.89   $      0.81
                                                               ===========   ===========   ===========   ===========
Cash dividends per share                                       $     0.160   $     0.160   $     0.480   $     0.464
                                                               ===========   ===========   ===========   ===========
</TABLE>

See accompanying notes to consolidated financial statements.


                                        3

<PAGE>

                   West Bancorporation, Inc. and Subsidiaries
                 Consolidated Statements of Stockholders' Equity
                                   (unaudited)

<TABLE>
<CAPTION>
                                                              Nine Months Ended
                                                                September 30,
                                                         --------------------------
                                                             2005           2004
                                                         ------------   -----------
<S>                                                      <C>            <C>
Common stock:
   Beginning of year balance                             $  3,000,000   $ 3,000,000
                                                         ------------   -----------
   End of period balance                                    3,000,000     3,000,000
                                                         ------------   -----------
Additional paid-in capital:
   Beginning of year balance                               32,000,000    32,000,000
                                                         ------------   -----------
   End of period balance                                   32,000,000    32,000,000
                                                         ------------   -----------
Retained earnings:
   Beginning of year balance                               62,565,046    56,796,771
   Net income                                              14,789,972    13,621,893
   Dividends on common stock                               (8,016,885)   (7,811,582)
   Purchase of fractional shares resulting from
      stock dividend                                               --        (2,090)
   Shares reacquired under the common stock
      repurchase plan                                              --    (2,360,235)
                                                         ------------   -----------
   End of period balance                                   69,338,133    60,244,757
                                                         ------------   -----------
Accumulated other comprehensive income (loss):
   Beginning of year balance                                   54,930     1,099,573
   Unrealized gains (losses) on securities, net of tax       (866,587)     (314,915)
                                                         ------------   -----------
   End of period balance                                     (811,657)      784,658
                                                         ------------   -----------
Total stockholders' equity                               $103,526,476   $96,029,415
                                                         ============   ===========
</TABLE>

                   West Bancorporation, Inc. and Subsidiaries
             Consolidated Statements of Comprehensive Income (Loss)
                                   (unaudited)

<TABLE>
<CAPTION>
                                                             Nine Months Ended
                                                               September 30,
                                                         --------------------------
                                                             2005           2004
                                                         -----------    -----------
<S>                                                      <C>            <C>
Net Income                                               $14,789,972    $13,621,893
Other comprehensive income (loss), unrealized gains
   (losses) on securities, net of reclassification
   adjustment, net of tax                                   (866,587)      (314,915)
                                                         -----------    -----------
Comprehensive income                                     $13,923,385    $13,306,978
                                                         ===========    ===========
</TABLE>

See accompanying notes to consolidated financial statements.


                                        4

<PAGE>

                   West Bancorporation, Inc. and Subsidiaries
                      Consolidated Statements of Cash Flows
                                   (unaudited)

<TABLE>
<CAPTION>
                                                                                       Nine Months Ended
                                                                                         September 30,
                                                                                 -----------------------------
                                                                                      2005            2004
                                                                                 -------------   -------------
<S>                                                                              <C>             <C>
Cash Flows from Operating Activities
   Net income                                                                    $  14,789,972   $  13,621,893
   Adjustments to reconcile net income to net cash provided by
   operating activities:
      Provision for loan losses                                                      1,325,000         775,000
      Net amortization and accretion                                                   824,609       1,508,164
      Loss on disposal of fixed assets                                                  22,857              --
      Net gains from sales of securities available for sale
         and loans held for sale                                                      (339,175)       (360,131)
      Proceeds from sales of loans held for sale                                    12,312,529       9,612,269
      Originations of loans held for sale                                          (12,179,419)     (9,537,119)
      Depreciation                                                                     390,785         255,794
      Deferred income taxes                                                           (172,532)        443,070
      Change in assets and liabilities:
         Increase in accrued interest receivable                                    (1,235,942)       (576,401)
         Increase in accrued expenses and other liabilities                            740,754      12,304,300
                                                                                 -------------   -------------
            Net cash provided by operating activities                               16,479,438      28,046,839
                                                                                 -------------   -------------
Cash Flows from Investing Activities
   Proceeds from sales, calls, and maturities of securities available for sale      72,458,156      80,351,815
   Purchases of securities available for sale                                      (41,647,438)   (163,774,781)
   Proceeds from maturities and calls of securities held to maturity                19,431,000      36,445,000
   Purchases of securities held to maturity                                                 --     (30,717,947)
   Acquisition of Federal Home Loan Bank stock                                     (14,198,400)     (9,520,300)
   Proceeds from redemption of Federal Home Loan Bank stock                         11,833,400       5,595,700
   Net increase in loans                                                          (104,828,024)    (78,967,479)
   Purchases of premises and equipment                                                (804,780)       (438,508)
   Change in other assets                                                           (3,240,637)       (428,739)
                                                                                 -------------   -------------
            Net cash (used) in investing activities                                (60,996,723)   (161,455,239)
                                                                                 -------------   -------------
Cash Flows from Financing Activities
   Net change in deposits                                                            7,024,728      88,071,342
   Net change in federal funds purchased and securities sold
      under agreements to repurchase                                                 3,739,805     (41,216,858)
   Net change in other short-term borrowings                                        65,693,817      85,847,217
   Proceeds from long-term borrowings                                                       --      10,619,000
   Principal payments on long-term borrowings                                      (10,900,000)    (13,900,000)
   Purchase of fractional shares resulting from stock dividend                              --          (2,090)
   Payment for shares reacquired under common stock
      repurchase plan                                                                       --      (2,360,235)
   Cash dividends                                                                   (8,016,885)     (7,811,582)
                                                                                 -------------   -------------
            Net cash provided by financing activities                               57,541,465     119,246,794
                                                                                 -------------   -------------
            Net increase (decrease) in cash and cash equivalents                    13,024,180     (14,161,606)
Cash and Cash Equivalents
   Beginning                                                                        29,879,459      82,073,799
                                                                                 -------------   -------------
   End                                                                           $  42,903,639   $  67,912,193
                                                                                 =============   =============
Supplemental Disclosures of Cash Flow Information
   Cash payments for:
      Interest                                                                   $  16,527,967   $   8,984,818
      Income taxes                                                                   7,224,763       6,050,000
</TABLE>

See accompanying notes to consolidated financial statements.


                                        5

<PAGE>

West Bancorporation, Inc.
Notes to Consolidated Financial Statements
(unaudited)

1. Basis of Presentation

The accompanying consolidated statements of income for the three and nine months
ended September 30, 2005 and 2004, the consolidated statements of stockholders'
equity, comprehensive income, and cash flows for the nine months ended September
30, 2005 and 2004, and the consolidated balance sheets as of September 30, 2005
and December 31, 2004 include the accounts and transactions of the Company and
its wholly-owned subsidiaries, West Bank and WB Capital Management Inc. d/b/a
VMF Capital. 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, 2005, the results
of operations for the three and nine months ended September 30, 2005 and 2004,
and cash flows for the nine months ended September 30, 2005 and 2004.

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 average number of
shares outstanding for the three months ended September 30, 2005 and 2004 was
16,701,843 and 16,701,890, respectively, and the average number of shares
outstanding for the nine months ended September 30, 2005 and 2004 was 16,701,843
and 16,781,235, respectively.

3. Transfer of Investment Securities Non-Cash Investing Activity

During the three months ended September 30, 2005, the Company transferred all
held to maturity investment securities to the available for sale category. The
net carrying amount of transferred securities was $39,848,000. The related
unrealized gains at the date of transfer were $413,000, and are included in
other comprehensive income. The decision to transfer all held to maturity
securities to the available for sale category was made to allow the entire
investment portfolio to be managed on a total return basis.

4. 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 recorded on the balance sheet. For additional information on
credit extension commitments see Note 13 of the Company's 2004 consolidated
financial statements. The Company's commitments as of September 30, 2005 and
December 31, 2004 are approximately as follows:

<TABLE>
<CAPTION>
                               September 30, 2005   December 31, 2004
                               ------------------   -----------------
<S>                            <C>                  <C>
Commitments to extend credit      $252,848,000         $188,495,000
Standby letters of credit           23,584,000           22,181,000
                                  ------------         ------------
                                  $276,432,000         $210,676,000
                                  ============         ============
</TABLE>


                                        6

<PAGE>

5. 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 segment is banking. 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, as the holding company's operation is similar to the
bank. The "Other" segment represents the Company's investment management
subsidiary and intercompany eliminations. Selected financial information on the
Company's segments is presented below for the three and nine months ended
September 30, 2005 and 2004 (dollars in thousands).

<TABLE>
<CAPTION>
                                                         Three months ended September 30,
                                      -----------------------------------------------------------------------
                                                2005 Segments                        2004 Segments
                                      ---------------------------------    ----------------------------------
                                      Banking     Other    Consolidated    Banking      Other    Consolidated
                                      -------     -----    ------------    -------      -----    ------------
<S>                                   <C>         <C>      <C>             <C>          <C>      <C>
Interest income                       $16,152     $ --        $16,152      $12,572      $ --        $12,572
Interest expense                        6,775       15          6,790        3,530        23          3,553
                                      -------     ----        -------      -------      ----        -------
Net interest income                     9,377      (15)         9,362        9,042       (23)         9,019
Provision for loan losses                 450       --            450          325        --            325
                                      -------     ----        -------      -------      ----        -------
Net interest income after provision
   for loan losses                      8,927      (15)         8,912        8,717       (23)         8,694
Noninterest income                      2,128      904          3,032        2,046       711          2,757
Noninterest expense                     3,983      671          4,654        3,555       603          4,158
                                      -------     ----        -------      -------      ----        -------
Income before income taxes              7,072      218          7,290        7,208        85          7,293
Income taxes                            2,237       90          2,327        2,456        30          2,486
                                      -------     ----        -------      -------      ----        -------
Net income                            $ 4,835     $128        $ 4,963      $ 4,752      $ 55        $ 4,807
                                      =======     ====        =======      =======      ====        =======
Depreciation and amortization         $   183     $ 41        $   224      $   129      $ 44        $   173
                                      =======     ====        =======      =======      ====        =======
</TABLE>

<TABLE>
<CAPTION>
                                                          Nine months ended September 30,
                                      -----------------------------------------------------------------------
                                                 2005 Segments                        2004 Segments
                                      ----------------------------------   ----------------------------------
                                        Banking     Other   Consolidated     Banking     Other   Consolidated
                                      ----------   ------   ------------   ----------   ------   ------------
<S>                                   <C>          <C>      <C>            <C>          <C>      <C>
Interest income                       $   45,894   $   --    $   45,894    $   35,644   $   --    $   35,644
Interest expense                          17,416       45        17,461         9,401       68         9,469
                                      ----------   ------    ----------    ----------   ------    ----------
Net interest income                       28,478      (45)       28,433        26,243      (68)       26,175
Provision for loan losses                  1,325       --         1,325           775       --           775
                                      ----------   ------    ----------    ----------   ------    ----------
Net interest income after provision
   for loan losses                        27,153      (45)       27,108        25,468      (68)       25,400
Noninterest income                         6,089    2,478         8,567         6,121    1,900         8,021
Noninterest expense                       11,892    1,968        13,860        10,826    1,879        12,705
                                      ----------   ------    ----------    ----------   ------    ----------
Income before income taxes                21,350      465        21,815        20,763      (47)       20,716
Income taxes                               6,834      191         7,025         7,109      (15)        7,094
                                      ----------   ------    ----------    ----------   ------    ----------
Net income                            $   14,516   $  274    $   14,790    $   13,654   $  (32)   $   13,622
                                      ==========   ======    ==========    ==========   ======    ==========
Depreciation and amortization         $      518   $  127    $      645    $      395   $  132    $      527
                                      ==========   ======    ==========    ==========   ======    ==========
Total assets                          $1,217,474   $2,937    $1,220,411    $1,185,165   $2,627    $1,187,792
                                      ==========   ======    ==========    ==========   ======    ==========
</TABLE>


                                        7

<PAGE>

6. 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.

7. 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. Subsequent Event

On October 24, 2005, the Company announced a definitive agreement to acquire
Investors Management Group (IMG), a wholly-owned subsidiary of AMCORE Financial,
Inc. The acquisition is subject to customary conditions, including approvals or
consents from a requisite percentage of IMG's clients, and is expected to close
late in the fourth quarter of 2005. The Company expects the acquisition to be
neutral to earnings in 2006.


                                        8

<PAGE>

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 information is based upon certain underlying
assumptions, risks and uncertainties. Because of the possibility of changes 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 the Federal Reserve Board, and
customer 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, 2005

OVERVIEW

The following discussion is provided for the consolidated operations of the
Company, which includes its wholly-owned banking subsidiary, West Bank ("Bank")
and its wholly-owned investment advisory subsidiary, WB Capital Management Inc.
d/b/a VMF Capital ("VMF Capital"). It focuses on the consolidated results of
operations for the three and nine months ended September 30, 2005, compared to
the same periods in 2004 and on the consolidated financial condition of the
Company and its subsidiaries at September 30, 2005, compared to December 31,
2004.

Net income for the three months ended September 30, 2005 increased 3.2 percent
to $4,963,000 compared to $4,807,000 for the same period in 2004. The increase
was primarily due to a 3.8 percent increase in net interest income, a 27.1
percent increase in investment advisory fees and higher gains from sales of
securities. These improvements were somewhat offset by an 11.9 percent increase
in noninterest expense.

For the first nine months of 2005, net income was $14,790,000, or $.89 per
share, which is an 8.6 percent increase over last year. Net income for the first
nine months of 2005 is higher than the previous year primarily due to higher net
interest income which increased $2,258,000 due to significant loan growth. The
provision for loan losses was $550,000 higher than the same period last year.
Noninterest income for the first nine months of 2005 increased by $546,000 while
noninterest expenses were $1,155,000 higher than in 2004.

The year-to-date net interest margin has declined 16 basis points from a year
ago. The decline is the result of the cost of short-term borrowings and jumbo
certificates of deposit rising more than the yields on the loan and investment
portfolios.

Year-to-date noninterest income was higher than last year due to investment
advisory fees earned by VMF Capital, increased trust fees and higher loan
related fees.

Year-to-date noninterest expense was 9.1 percent higher than a year ago due to
increases in compensation related expenses, occupancy costs and net other real
estate owned expenses.


                                        9

<PAGE>

RESULTS OF OPERATIONS

The following table shows selected financial results and measures for the three
and nine months ended September 30, 2005 compared with the same periods in 2004
(dollars in thousands).

<TABLE>
<CAPTION>
                                Three Months Ended September 30,                Nine Months Ended September 30,
                         ---------------------------------------------   ---------------------------------------------
                            2005         2004       Change    Change-%      2005         2004       Change    Change-%
                         ----------   ----------   --------   --------   ----------   ----------   --------   --------
<S>                      <C>          <C>          <C>        <C>        <C>          <C>          <C>        <C>
Net income               $    4,963   $    4,807   $    156      3.2%    $   14,790   $   13,622   $  1,168      8.6%
Average assets            1,189,373    1,066,044    123,329     11.6%     1,181,382    1,023,855    157,527     15.4%
Average stockholders'
   equity                   101,875       93,290      8,585      9.2%        99,628       93,506      6,122      6.5%

Return on assets               1.66%        1.79%    -0.13%                    1.67%        1.78%     -0.11%

Return on equity              19.33%       20.50%    -1.17%                   19.85%       19.46%      0.39%

Efficiency ratio              36.61%       34.38%     2.23%                   36.27%       36.49%     -0.22%

Dividend payout ratio         53.33%       55.17%    -1.84%                   53.93%       57.28%     -3.35%

Equity to assets ratio         8.57%        8.75%    -0.18%                    8.43%        9.13%     -0.70%
</TABLE>

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
securities gains) plus taxable equivalent net interest income.

Dividend payout ratio - dividends per share divided by net income per share.

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
average earning assets or interest bearing liabilities. Interest income and the
resulting net interest income are shown on a fully taxable basis.


                                       10

<PAGE>

Data for the three months ended September 30 (dollars in thousands):

<TABLE>
<CAPTION>
                                              Average Balance                    Interest Income/Expense           Yield/Rate
                                 ----------------------------------------  ----------------------------------  ------------------
                                    2005       2004     Change   Change-%    2005     2004   Change  Change-%  2005  2004  Change
                                 ----------  --------  --------  --------  -------  -------  ------  --------  ----  ----  ------
<S>                              <C>         <C>       <C>       <C>       <C>      <C>      <C>     <C>       <C>   <C>   <C>
Interest-earning assets:
Loans:
Commercial                       $  282,204  $262,528  $ 19,676     7.49%  $ 4,693  $ 3,499  $1,194    34.12%  6.60% 5.30%  1.30%
Real estate                         477,448   363,603   113,845    31.31%    7,886    5,559   2,327    41.86%  6.55% 6.08%  0.47%
Consumer                             10,907    11,933    (1,026)  -8.60%       221      216       5     2.31%  8.05% 7.21%  0.84%
Other                                22,359    18,778     3,581    19.07%      253      266     (13)   -4.89%  4.49% 5.63% -1.14%
                                 ----------  --------  --------   ------   -------  -------  ------   ------   ----  ----  -----
Total loans                         792,918   656,842   136,076    20.72%   13,053    9,540   3,513    36.82%  6.53% 5.78%  0.75%
                                 ----------  --------  --------   ------   -------  -------  ------   ------   ----  ----  -----
Investment securities:
Taxable                             203,444   245,860   (42,416)  -17.25%    2,134    2,418    (284)  -11.75%  4.20% 3.93%  0.27%
Tax-exempt                          106,075    61,111    44,964    73.58%    1,396      762     634    83.20%  5.27% 4.99%  0.28%
                                 ----------  --------  --------   ------   -------  -------  ------   ------   ----  ----  -----
Total investment securities         309,519   306,971     2,548     0.83%    3,530    3,180     350    11.01%  4.57% 4.14%  0.43%
                                 ----------  --------  --------   ------   -------  -------  ------   ------   ----  ----  -----
Federal funds sold and
   short-term investments             4,732    29,171   (24,439)  -83.78%       46      171    (125)  -73.10%  3.83% 2.34%  1.49%
                                 ----------  --------  --------   ------   -------  -------  ------   ------   ----  ----  -----
Total interest-earning assets    $1,107,169  $992,984  $114,185    11.50%   16,629   12,891   3,738    29.00%  5.96% 5.17%  0.79%
                                 ==========  ========  ========   ======   -------  -------  ------   ------   ----  ----  -----
Interest-bearing liabilities:
Deposits:
Checking with interest, savings
   and money markets             $  307,970  $372,708  $(64,738)  -17.37%    1,421      842     579    68.76%  1.83% 0.90%  0.93%
Time deposits                       366,023   207,069   158,954    76.76%    3,041    1,002   2,039   203.49%  3.30% 1.92%  1.38%
                                 ----------  --------  --------   ------   -------  -------  ------   ------   ----  ----  -----
Total deposits                      673,993   579,777    94,216    16.25%    4,462    1,844   2,618   141.97%  2.63% 1.27%  1.36%
                                 ----------  --------  --------   ------   -------  -------  ------   ------   ----  ----  -----
Other borrowed funds                213,808   213,289       519     0.24%    2,328    1,709     619    36.22%  4.32% 3.19%  1.13%
                                 ----------  --------  --------   ------   -------  -------  ------   ------   ----  ----  -----
Total interest-bearing
   liabilities                   $  887,801  $793,066  $ 94,735    11.95%    6,790    3,553   3,237    91.11%  3.03% 1.78%  1.25%
                                 ==========  ========  ========   ======   -------  -------  ------   ------   ----  ----  -----
Tax-equivalent net interest
   income                                                                  $ 9,839  $ 9,338  $  501     5.37%
                                                                           =======  =======  ======   ======
Net interest spread                                                                                            2.93% 3.39% -0.46%
                                                                                                               ====  ====  =====
Net interest margin                                                                                            3.53% 3.74% -0.21%
                                                                                                               ====  ====  =====
</TABLE>

Data for the nine months ended September 30 (dollars in thousands):

<TABLE>
<CAPTION>
                                              Average Balance                    Interest Income/Expense           Yield/Rate
                                 ----------------------------------------  -----------------------------------  ------------------
                                    2005       2004     Change   Change-%    2005     2004    Change  Change-%  2005  2004  Change
                                 ----------  --------  --------  --------  -------  -------  -------  --------  ----  ----  ------
<S>                              <C>         <C>       <C>       <C>       <C>      <C>      <C>      <C>       <C>   <C>   <C>
Interest-earning assets:
Loans:
Commercial                       $  273,130  $283,333  $(10,203)   -3.60%  $12,841  $11,270  $ 1,571    13.94%  6.29% 5.31%  0.98%
Real estate                         460,289   311,473   148,816    47.78%   21,821   14,409    7,412    51.44%  6.34% 6.18%  0.16%
Consumer                             10,812    14,642    (3,830)  -26.16%      617      778     (161)  -20.69%  7.63% 7.10%  0.53%
Other                                20,273    18,673     1,600     8.57%      735      842     (107)  -12.71%  4.85% 6.02% -1.17%
                                 ----------  --------  --------   ------   -------  -------  -------   ------   ----  ----   ----
Total loans                         764,504   628,121   136,383    21.71%   36,014   27,299    8,715    31.92%  6.30% 5.81%  0.49%
                                 ----------  --------  --------   ------   -------  -------  -------   ------   ----  ----   ----
Investment securities:
Taxable                             220,566   233,155   (12,589)   -5.40%    6,995    6,755      240     3.55%  4.23% 3.86%  0.37%
Tax-exempt                          102,506    53,400    49,106    91.96%    3,995    1,914    2,081   108.73%  5.20% 4.78%  0.42%
                                 ----------  --------  --------   ------   -------  -------  -------   ------   ----  ----   ----
Total investment securities         323,072   286,555    36,517    12.74%   10,990    8,669    2,321    26.77%  4.54% 4.03%  0.51%
                                 ----------  --------  --------   ------   -------  -------  -------   ------   ----  ----   ----
Federal funds sold and
   short-term investments            12,817    38,164   (25,347)  -66.42%      305      539     (234)  -43.41%  3.18% 1.89%  1.29%
                                 ----------  --------  --------   ------   -------  -------  -------   ------   ----  ----   ----
Total interest-earning assets    $1,100,393  $952,840  $147,553    15.49%   47,309   36,507   10,802    29.59%  5.75% 5.12%  0.63%
                                 ----------  --------  --------   ------   -------  -------  -------   ------   ----  ----   ----
Interest-bearing liabilities:
Deposits:
Checking with interest, savings
   and money markets             $  340,335  $385,256  $(44,921)  -11.66%  $ 3,898  $ 2,460    1,438    58.46%  1.53% 0.85%  0.68%
Time deposits                       320,894   167,823   153,071    91.21%    6,979    2,294    4,685   204.23%  2.91% 1.83%  1.08%
                                 ----------  --------  --------   ------   -------  -------  -------   ------   ----  ----   ----
Total deposits                      661,229   553,079   108,150    19.55%   10,877    4,754    6,123   128.80%  2.20% 1.15%  1.05%
                                 ----------  --------  --------   ------   -------  -------  -------   ------   ----  ----   ----
Other borrowed funds                222,509   201,875    20,634    10.22%    6,584    4,715    1,869    39.64%  3.96% 3.12%  0.84%
                                 ----------  --------  --------   ------   -------  -------  -------   ------   ----  ----   ----
Total interest-bearing
   liabilities                   $  883,738  $754,954  $128,784    17.06%   17,461    9,469    7,992    84.40%  2.64% 1.68%  0.96%
                                 ==========  ========  ========   ======   -------  -------  -------   ------   ----  ----   ----
Tax-equivalent net interest
   income                                                                  $29,848  $27,038  $ 2,810    10.39%
                                                                           =======  =======  =======   ======
Net interest spread                                                                                             3.11% 3.44% -0.33%
                                                                                                                ====  ====   ====
Net interest margin                                                                                             3.63% 3.79% -0.16%
                                                                                                                ====  ====   ====
</TABLE>


                                       11

<PAGE>

Fluctuations in net interest income can result from the combination of changes
in the volumes of asset and liability categories as well as changes in interest
rates. Net interest margin is a measure of the net return on interest-earning
assets and is computed by dividing annualized net tax-equivalent interest income
by the average of total interest-earning assets for the period. The net interest
margin for the third quarter was 3.53 percent, which was 21 basis points lower
than the same quarter last year and 9 basis points less than the second quarter
of 2005. The decline from the prior quarter was due to continued increases in
market rates on deposits and borrowings which have increased faster than the
yields on earning assets. The Company's tax-equivalent net interest income for
the nine months ended September 30, 2005 increased $2,810,000 compared to the
nine months ended September 30, 2004. The increase was primarily attributable to
a higher level of earning assets.

Taxable-equivalent interest income and fees on loans increased $8,715,000 in the
first nine months of 2005 compared to the same period in 2004, due to a higher
volume of outstanding loans. Average loans were $136.4 million higher than the
first nine months of last year. The average yield on loans increased to 6.30
percent for the first nine months of 2005, compared to 5.81 percent for the same
period in 2004. The yield on the Company's loan portfolio is affected by the
amount of non-accrual loans, the mix of the portfolio, the effects of
competition and the interest rate environment. The interest rate environment can
influence the volume of new loan originations and the mix of variable rate
versus fixed rate loans. At September 30, 2005, approximately 54 percent of the
Company's loan portfolio consisted of variable rate loans. Competition for loans
in the market areas served by the Company remains strong.

The average balance of investment securities was $36.5 million higher than last
year while the yield has increased 51 basis points. Most purchases of investment
securities during the first nine months of 2005 have been agency bonds and
tax-exempt municipal bonds with a maturity of five years or less. During the
third quarter the Federal Home Loan Bank of Des Moines significantly reduced the
amount of their quarterly dividend which lowered third quarter dividend income
on this investment by $69,000. The likelihood and amount of future FHLB
dividends is unknown at this time.

The average rate paid on deposits for the first nine months of 2005 increased to
2.20 percent from 1.15 percent for the same period last year. This increase was
primarily the result of responding to increases in market interest rates. During
the first nine months of 2005 the Federal Reserve raised short-term rates by 25
basis points five times. Compared to the first nine months of last year, the
average balance of certificates of deposit was up $153.0 million, while the
average balance of money market and savings accounts, which typically have lower
rates, were $21.8 million and $26.6 million lower, respectively.

The average balance of borrowings for the first nine months of 2005 was $20.6
million higher than a year ago. Average short-term borrowings, which consisted
primarily of federal funds purchased and borrowings from the Federal Home Loan
Bank of Des Moines (FHLB), increased by $31.3 million. Long-term borrowings
which include fixed-rate FHLB advances, subordinated notes and a note payable
related to the acquisition of VMF Capital in 2003 averaged $10.7 million less
than a year ago. The decline was due to a maturity of an FHLB advance in the
first quarter. The change in mix and market rate increases caused the overall
cost of borrowings to increase by 84 basis points compared to the prior year.


                                       12

<PAGE>

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, 2005 and 2004 as well as common
ratios related to the allowance for loan losses (dollars in thousands).

<TABLE>
<CAPTION>
                                               Three Months Ended                Nine Months Ended
                                                  September 30,                    September 30,
                                         ------------------------------   ------------------------------
                                           2005       2004      Change      2005       2004      Change
                                         --------   --------   --------   --------   --------   --------
<S>                                      <C>        <C>        <C>        <C>        <C>        <C>
Balance at beginning of period           $  7,080   $  6,032   $  1,048   $  6,527   $  5,976   $    551
Charge-offs                                  (284)      (260)       (24)      (671)      (728)        57
Recoveries                                     60         43         17        125        117          8
                                         --------   --------   --------   --------   --------   --------
Net charge-offs                              (224)      (217)        (7)      (546)      (611)        65
Provision charged to operations               450        325        125      1,325        775        550
                                         --------   --------   --------   --------   --------   --------
Balance at end of period                 $  7,306   $  6,140   $  1,166   $  7,306   $  6,140   $  1,166
                                         ========   ========   ========   ========   ========   ========

Average loans outstanding                $792,918   $656,842   $136,076   $764,504   $628,121   $136,383

Ratio of net charge-offs during the
   period to average loans outstanding       0.03%      0.03%                 0.07%      0.10%
Ratio of allowance for loan losses
   to average loans outstanding              0.92%      0.93%                 0.96%      0.98%
</TABLE>

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.

The adequacy of the allowance for loan losses is evaluated quarterly by
management and reviewed by the Bank's 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 which
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. 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 (dollars in thousands).


                                       13

<PAGE>

<TABLE>
<CAPTION>
                                                Three Months Ended September 30,
                                              -----------------------------------
                                               2005     2004    Change   Change-%
                                              ------   ------   ------   --------
<S>                                           <C>      <C>      <C>      <C>
Noninterest income:
   Service charges on deposit accounts        $1,214   $1,340   $(126)     -9.40%
   Trust services                                202      157      45      28.66%
   Investment advisory fees                      904      711     193      27.14%
   Increase in cash value of bank-owned
      life insurance                             213      213      --       0.00%
   Other:
      VISA/Mastercard income                      28       43     (15)    -34.88%
      Debit card usage fees                       45       44       1       2.27%
      ATM card usage fees                         22       24      (2)     -8.33%
      Gain on sale of residential mortgages       28       36      (8)    -22.22%
      Gain on sale of commercial loans            --       --      --       0.00%
      Other loan fees                              8       --       8     100.00%
      All other                                  209      187      22      11.76%
                                              ------   ------   -----    -------
      Total other                                340      334       6       1.80%
                                              ------   ------   -----    -------
   Gain on sale of securities                    159        2     157    7850.00%
                                              ------   ------   -----    -------
      Total noninterest income                $3,032   $2,757   $ 275       9.97%
                                              ======   ======   =====    =======
</TABLE>

<TABLE>
<CAPTION>
                                                Nine Months Ended September 30,
                                              -----------------------------------
                                               2005     2004    Change   Change-%
                                              ------   ------   ------   --------
<S>                                           <C>      <C>      <C>      <C>
Noninterest income:
   Service charges on deposit accounts        $3,501   $3,760   $(259)     -6.89%
   Trust services                                531      416     115      27.64%
   Investment advisory fees                    2,478    1,900     578      30.42%
   Increase in cash value of bank-owned
      life insurance                             629      658     (29)     -4.41%
   Other:

      VISA/Mastercard income                     104      131     (27)    -20.61%
      Debit card usage fees                      147      111      36      32.43%
      ATM card usage fees                         64       76     (12)    -15.79%
      Gain on sale of residential mortgages       87      115     (28)    -24.35%
      Gain on sale of commercial loans            51       --      51     100.00%
      Other loan fees                            170       --     170     100.00%
      All other                                  603      609      (6)     -0.99%
                                              ------   ------   -----     ------
      Total other                              1,226    1,042     184      17.66%
                                              ------   ------   -----     ------
   Gain on sale of securities                    202      245     (43)    -17.55%
                                              ------   ------   -----     ------
      Total noninterest income                $8,567   $8,021   $ 546       6.81%
                                              ======   ======   =====     ======
</TABLE>

Noninterest income results from the charges and fees collected by the Company
from its customers for various services performed and miscellaneous other income
and gains (or losses) from the sale of investment securities held in the
available for sale category. Service charges on deposit accounts declined for
two reasons: 1) higher interest rates resulted in a higher earnings credit on
commercial checking accounts which results in lower service charges; and 2)
return check charges have been declining in 2005 due to fewer customers
overdrawing their accounts. Investment advisory fees are fees earned by VMF
Capital. The increase in fees was due to sales efforts throughout the past year
which has resulted in total assets under management increasing from $725 million
at September 30, 2004 to $825 million at September 30, 2005. The decrease in
VISA/MasterCard income is due to a decline in the number of merchant customers
and lower sales activity at certain merchants. The increase in debit card usage
fees was the result of higher usage as customers continue to expand utilization
of this convenient payment method. The decline in the ATM card usage fees was
due to changes in behavior as non-customers seek to avoid surcharges when using
an ATM. Gains from sale of residential mortgages originated for sale in the
secondary market declined because of rising interest rates and increased pricing
competition. The gains from the sale of commercial loans resulted from the sale
of the SBA (Small Business Administration) guaranteed portion of commercial
loans in the first half of the year. Noninterest related loan fees included the
recognition of a fee for a loan commitment which was terminated by a customer in
the second quarter.


                                       14

<PAGE>

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 expense category that represent significant variances
are shown (dollars in thousands).

<TABLE>
<CAPTION>
                                      Three Months Ended September 30,
                                    -----------------------------------
                                     2005     2004    Change   Change-%
                                    ------   ------   ------   --------
<S>                                 <C>      <C>      <C>      <C>
Noninterest expense:
   Salaries and employee benefits   $2,580   $2,408    $172       7.14%
   Occupancy                           624      494     130      26.32%
   Data processing                     367      338      29       8.58%
   Other:
      Insurance                         40       36       4      11.11%
      Supplies                          60       65      (5)     -7.69%
      Marketing                        114       82      32      39.02%
      Postage and courier               96      100      (4)     -4.00%
      Consulting fees                   90       30      60     200.00%
      OREO expense                      16      (71)     87     122.54%
      All other                        667      676      (9)     -1.33%
                                    ------   ------    ----     ------
      Total other                    1,083      918     165      17.97%
                                    ------   ------    ----     ------
      Total noninterest expense     $4,654   $4,158    $496      11.93%
                                    ======   ======    ====     ======
</TABLE>

<TABLE>
<CAPTION>
                                       Nine Months Ended September 30,
                                    -------------------------------------
                                      2005      2004    Change   Change-%
                                    -------   -------   ------   --------
<S>                                 <C>       <C>       <C>      <C>
Noninterest expense:
   Salaries and employee benefits   $ 7,744   $ 7,298   $  446      6.11%
   Occupancy                          1,817     1,499      318     21.21%
   Data processing                    1,057     1,027       30      2.92%
   Other:
      Insurance                         118        87       31     35.63%
      Supplies                          239       196       43     21.94%
      Marketing                         279       275        4      1.45%
      Postage and courier               298       276       22      7.97%
      Consulting fees                   199        56      143    255.36%
      OREO expense                       22      (172)     194    112.79%
      All other                       2,087     2,163      (76)    -3.51%
                                    -------   -------   ------    ------
      Total other                     3,242     2,881      361     12.53%
                                    -------   -------   ------    ------
      Total noninterest expense     $13,860   $12,705   $1,155      9.09%
                                    =======   =======   ======    ======
</TABLE>

The increase in salaries and benefits was the result of staff additions, annual
compensation adjustments and certain benefit costs, primarily medical insurance.
Occupancy expenses were higher this year due to one additional location
(Coralville, Iowa) and increased depreciation expense related to furniture and
equipment upgrades throughout the Company. Insurance expense is higher because
the Company's director's and officer's policy renewed in the third quarter of
2004 at premiums that were significantly higher. Supplies are higher because
additional brochures were printed in the first quarter of 2005 as a result of
product and pricing changes. Postage expense is higher because many of those
brochures were mailed to clients. Marketing expenses on a year-to-date basis are
virtually the same as in the prior year. Third quarter 2005 marketing expenses
increased due to an upgrade of the website and branding work. The increase in
consulting fees is due to a change in the contract with the Company's former
chairman from that of an employment agreement to a consulting agreement and the
hiring of an outside consultant to help with the implementation of software
programs to assist with asset-liability management and profitability
measurement. The net expense for other real estate owned increased from the
prior year as 2004 included gains from the sale of several other real estate
properties.


                                       15

<PAGE>

Income Tax Expense

The Company incurred income tax expense of $7,025,000 for the nine months ended
September 30, 2005 compared to $7,094,000 for the nine months ended September
30, 2004. The effective income tax rate as a percent of income before taxes for
the three and nine months ended September 30, 2005 was 31.9 percent and 32.2
percent, compared to 34.1 percent and 34.2 percent, respectively, for the same
periods last year. The effective income tax rate is lower in 2005 because of a
significantly higher level of income that is exempt from Federal income taxes.
The average balance of tax-exempt municipal securities has nearly doubled
compared to the prior year.

FINANCIAL CONDITION

Total assets as of September 30, 2005 were $1.2 billion, a slight increase from
$1.1 billion at December 31, 2004. The increase is primarily due to increased
loan volumes. The loan growth was funded by an increase in short-term borrowings
and a decrease in the investment securities portfolio.

Investment Securities

Investment securities available for sale increased $7.2 million from December
31, 2004 to $288.3 million. During the three months ended September 30, 2005 all
held to maturity securities were reclassified to the available for sale
category. This decision was made so the entire portfolio could be managed on a
total return basis.

Loans and Non-performing Assets

Loans outstanding increased $104.3 million from December 31, 2004 to September
30, 2005. The increase was primarily attributable to growth in commercial real
estate, construction and commercial loans.

The following table sets forth the amount of non-performing loans and assets
carried by the Company and common ratio measurements of those items (dollars in
thousands).

<TABLE>
<CAPTION>
                                        September 30, 2005   December 31, 2004   Change
                                        ------------------   -----------------   ------
<S>                                     <C>                  <C>                 <C>
Non-accrual loans                            $  697              $  785          $  (88)
Loans past due 90 days and still
   accruing interest                            524                  75             449
                                             ------              ------          ------
Total non-performing loans                    1,221                 860             361
Other real estate owned                       1,840                 175           1,665
                                             ------              ------          ------
Total non-performing assets                  $3,061              $1,035          $2,026
                                             ======              ======          ======

Non-performing assets to total loans           0.37%               0.14%           0.23%

Non-performing assets to total assets          0.25%               0.09%           0.16%
</TABLE>

At September 30, 2005, non-accrual loans consist of eight loan relationships.
Over half of the amount in this category was collateralized by 1 - 4 family real
estate. In the opinion of management, loans past due 90 days and still accruing
interest are adequately collateralized to cover any unpaid interest. Included in
this category was one commercial real estate loan totaling approximately
$450,000 that is fully collateralized by a first mortgage on the property.

The increase in total non-performing assets primarily relates to one project. In
the first quarter of 2005, a commercial real estate loan totaling approximately
$2,200,000 was placed on non-accrual status. During the second quarter of 2005,
a partial charge-off of $300,000 was recorded against this loan. The Bank
obtained the deed to this property during the third quarter of 2005 in lieu of
foreclosure. An additional charge-off of approximately $155,000 was recorded in
the third quarter when the property was transferred to other real estate owned.
The Bank estimated the net realizable value of the property to be $1,750,000,
which was the carrying value at September 30, 2005.


                                       16

<PAGE>

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 as of September 30, 2005 were $873 million compared with $866
million as of December 31, 2004. While total deposits did not change
significantly, there was a change in the mix of deposits. Money market accounts,
which are liquid accounts and therefore pay relatively lower interest rates,
declined approximately $104 million. Offsetting this decline was an increase in
time certificates of deposit in excess of $100,000 category. That category
increased approximately $90 million and primarily consisted of public unit
deposits. Public unit deposits are generally obtained through a bidding process.
Other changes included the super saver category decreasing approximately $4
million and non-interest bearing demand accounts rising approximately $23
million. The shift in the deposit mix was movements between categories in an
attempt by customers to maximize the interest rate earned on those funds. It is
expected that this trend will continue.

Borrowings

The balance of federal funds purchased and securities sold under agreement to
repurchase was $78.3 million at September 30, 2005, up from $74.5 million at
December 31, 2004. Other short-term borrowings, consisting of Treasury, Tax and
Loan option notes, short-term FHLB borrowings and a note payable related to the
acquisition of VMF Capital, increased $66.2 million since December 31, 2004 with
virtually all of this increase attributable to short-term FHLB borrowings.
Long-term borrowings consisted of fixed rate FHLB advance, subordinated notes
and a note payable related to the acquisition of VMF Capital. Advances totaling
$10.9 million were paid off at maturity during the first quarter of 2005.

Liquidity and Capital Resources

The objective of liquidity management is to ensure the availability of
sufficient cash flows to meet the requirements of depositors and borrowers, all
corporate financial commitments and to capitalize on opportunities for
profitable business expansion. The Company's principal source of funds is
deposits including 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 Federal Home Loan Bank 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 $42.9 million as of September
30, 2005, compared with $29.9 million as of December 31, 2004. 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. The Company had additional borrowing capacity available from the FHLB
of approximately $33.7 million at September 30, 2005 and has a $5 million
unsecured line of credit through a large regional correspondent bank. In
addition, the Bank has $100 million available through unsecured federal funds
lines of credit with correspondent banks. The Bank was utilizing $30 million of
those lines of credit at September 30, 2005. Management believes the combination
of high levels of potentially liquid assets, positive cash flows from operations
and additional borrowing capacity provided strong liquidity for the Company at
September 30, 2005 to meet the needs of borrowers and depositors.

The Company's total stockholders' equity increased to $103.5 million at
September 30, 2005, from $97.6 million at December 31, 2004. Total stockholders'
equity was 8.5 percent of total assets as of September 30, 2005 and December 31,
2004. The Bank is currently undergoing various remodeling projects and is
implementing platform banking. The total estimated cost for both projects is $.4
million.

In April 2005, the Company's Board of Directors authorized the buy-back of the
Company's common stock for a period of twelve months, in an amount not to exceed
$5 million. No repurchases have taken place under this authorization.


                                       17

<PAGE>

The table below shows the various measures of regulatory capital and related
ratios (dollars in thousands).

Regulatory capital:

<TABLE>
<CAPTION>
                                                               September 30, 2005   December 31, 2004
                                                               ------------------   -----------------
<S>                                                            <C>                  <C>
Total shareholders' equity                                          $103,526            $ 97,620
Plus: net unrealized losses on available for sale securities             812                  --
Less: net unrealized gains on available for sale securities               --                 (55)
Less: intangible assets                                              (16,308)            (16,562)
Plus: subordinated notes                                              20,000              20,000
                                                                    --------            --------
Tier 1 capital                                                       108,030             101,003
Plus: allowance for loan losses                                        7,306               6,527
                                                                    --------            --------
Total risk-based capital                                            $115,336            $107,530
                                                                    ========            ========
</TABLE>

<TABLE>
<CAPTION>
                                                      Regulatory
                                                 requirements to be:                 Actual Regulatory
                                              -------------------------            Capital Ratios as of:
                                               Adequately      Well-      --------------------------------------
                                              Capitalized   Capitalized   September 30, 2005   December 31, 2004
                                              -----------   -----------   ------------------   -----------------
<S>                                           <C>           <C>           <C>                  <C>
Total risk-based capital
   as % of risk-weighted assets                   8.0%         10.0%             12.0%               12.3%
Tier 1 capital as % of risk-weighted assets       4.0%          6.0%             11.3%               11.6%
Tier 1 capital as % average assets                4.0%          5.0%              9.2%                8.6%
</TABLE>

Risk-based capital guidelines require the classification of assets and some
off-balance sheet items in terms of credit-risk exposure and the measuring of
capital as a percentage of the risk adjusted asset totals. Management believes,
and data in the above table show that, as of September 30, 2005 and December 31,
2004, the Company met all capital adequacy requirements to which it is subject.
As of those same dates, West Bank was "well capitalized" under regulatory prompt
corrective action provisions.

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 3, 2005 and is
incorporated herein by reference. The Company has not experienced any material
changes to its market risk position since December 31, 2004. Management does not
believe the Company's primary market risk exposures and how those exposures were
managed in the first nine months of 2005 changed when compared to 2004.

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 was performed under the supervision and
with the participation of the Company's Chief Executive Officer and Chief
Financial Officer of the effectiveness of the Company's disclosure controls and
procedures (as defined in Exchange Act Rule 240.13a-15(e)) as of the end of the
period covered by this report. 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.


                                       18

<PAGE>

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 has materially affected, or is reasonably
likely to materially affect, the Company's internal control over financial
reporting.

                           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, West Bank or VMF Capital, which, if determined adversely,
would have a material adverse effect on the business or financial position of
the Company, West Bank or VMF Capital.

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

There were no purchases during the nine months ended September 30, 2005 of the
Company's common shares under the $5 million stock buy-back plan approved by the
Board of Directors on April 13, 2005 or the previous stock buy-back plan
approved in April of 2004.

Item 6. Exhibits

(a) The following exhibits are filed as part of this report:

<TABLE>
<CAPTION>
Exhibits
--------
<S>        <C>
3.1        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)
10.12      Data Processing Contract Amendment(2)
10.13      Purchase and Assumption Agreement between West Des Moines State Bank
           and Hawkeye State Bank(3)
10.14      Employment Agreement effective March 1, 2003, which was consummated
           in the first quarter of 2004(4)
10.15      The Employee Savings and Stock Ownership Plan, as amended(5)
10.16      Amendment to Lease Agreement(6)
10.17      Employment Agreement(6)
10.18      Consulting Agreement(7)
31.1       Certification of Chief Executive Officer under Section 302 of the
           Sarbanes Oxley Act of 2002
31.2       Certification of Chief Financial Officer under Section 302 of the
           Sarbanes Oxley Act of 2002
32.1       Certification of Chief Executive Officer under Section 906 of the
           Sarbanes-Oxley Act of 2002
32.2       Certification of Chief Financial Officer under Section 906 of the
           Sarbanes-Oxley Act of 2002
</TABLE>

(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
     10-Q on May 15, 2003.

(4)  Incorporated herein by reference to the related exhibit filed with the Form
     10-K on February 26, 2004.

(5)  Incorporated herein by reference to the related exhibit filed with the Form
     S-8 on October 29, 2004.

(6)  Incorporated herein by reference to the related exhibit filed with the Form
     10-K on March 3, 2005.

(7)  Incorporated herein by reference to the related exhibit filed with the Form
     10-Q on May 6, 2005.


                                       19

<PAGE>

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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 3, 2005                        By: /s/ Thomas E. Stanberry
Dated                                       ------------------------------------
                                            Thomas E. Stanberry
                                            Chairman, President and Chief
                                            Executive Officer


November 3, 2005                        By: /s/ Douglas R. Gulling
Dated                                       ------------------------------------
                                            Douglas R. Gulling
                                            Executive Vice President and Chief
                                            Financial Officer (Principal
                                            Accounting Officer)


                                       20

<PAGE>

                                  EXHIBIT INDEX

The following exhibits are filed herewith:

<TABLE>
<CAPTION>
Exhibit No.   Description
-----------   -----------
<S>           <C>
31.1          Certification of Chief Executive Officer under Section 302 of the
              Sarbanes Oxley Act of 2002

31.2          Certification of Chief Financial Officer under Section 302 of the
              Sarbanes Oxley Act of 2002

32.1          Certification of Chief Executive Officer under Section 906 of the
              Sarbanes-Oxley Act of 2002

32.2          Certification of Chief Financial Officer under Section 906 of the
              Sarbanes-Oxley Act of 2002
</TABLE>


                                       21