UNITED
      STATES


SECURITIES
      AND EXCHANGE COMMISSION


WASHINGTON,
      D.C. 20549





**FORM
      10-Q**





(Mark
      One)





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




For
      the
      quarterly period ended March 31, 2007




or





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




For
      the
      transition period
      from to





Commission
      File Number 0-49677





WEST
      BANCORPORATION, INC.


(Exact
      name of registrant as specified in its charter)





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




1601
      22 nd Street,
      West Des Moines, Iowa 50266





Telephone
      Number (515) 222-2300





Indicate
      by check mark whether the registrant (1) has filed all reports required by
      Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
      12 months (or for such shorter period that the registrant was required to file
      such reports), and (2) has been subject to such filing requirements for the
      past
      90 days. Yes
x No
      o




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





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




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


Yes
o
      No x





As
      of May
      4, 2007, there were 17,536,682 shares of common stock, no par value
      outstanding.







PART
      I -
      FINANCIAL INFORMATION




Item
      1.
      Financial Statements


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


March
                31,
            
            December
                31,2007
            
            2006(in
                thousands, except per share data)AssetsCash
                and due from banks
            
            $
            30,931
            
            $
            35,063Federal
                funds sold and other short-term investments
            
            
            24,426
            
            
            615Cash
                and cash equivalents
            
            
            55,357
            
            
            35,678Securities
                available for sale
            
            
            253,875
            
            
            256,731Federal
                Home Loan Bank stock, at cost
            
            
            6,141
            
            
            4,847Total
                securities
            
            
            260,016
            
            
            261,578Loans
            
            
            946,745
            
            
            904,422Allowance
                for loan losses
            
            
            (8,743
            )
            
            (8,494
            )Loans,
                net
            
            
            938,002
            
            
            895,928Premises
                and equipment, net
            
            
            5,253
            
            
            5,375Accrued
                interest receivable
            
            
            9,676
            
            
            8,587Goodwill
            
            
            24,930
            
            
            24,930Other
                intangible assets
            
            
            2,773
            
            
            2,987Bank-owned
                life insurance
            
            
            23,172
            
            
            22,956Other
                assets
            
            
            10,918
            
            
            10,517Total
                assets
            
            $
            1,330,097
            
            $
            1,268,536Liabilities
                and Stockholders' EquityLiabilitiesDeposits:Noninterest-bearing
                demand
            
            $
            193,111
            
            $
            203,964Interest-bearing
                demand
            
            
            71,776
            
            
            57,605Savings
            
            
            209,070
            
            
            234,240Time,
                in excess of $100,000
            
            
            283,740
            
            
            256,105Other
                time
            
            
            166,317
            
            
            173,420Total
                deposits
            
            
            924,014
            
            
            925,334Federal
                funds purchased and securities sold underagreements
                to repurchase
            
            
            143,889
            
            
            109,346Other
                short-term borrowings
            
            
            29
            
            
            1,929Accrued
                expenses and other liabilities
            
            
            11,903
            
            
            12,096Subordinated
                notes
            
            
            20,619
            
            
            20,619Long-term
                borrowings
            
            
            113,750
            
            
            85,400Total
                liabilities
            
            
            1,214,204
            
            
            1,154,724Stockholders'
                EquityCommon
                stock, no par value; authorized 50,000,000 shares;17,536,682
                shares issued and outstanding
            
            
            3,000
            
            
            3,000Additional
                paid-in capital
            
            
            32,000
            
            
            32,000Retained
                earnings
            
            
            82,035
            
            
            80,397Accumulated
                other comprehensive loss
            
            
            (1,142
            )
            
            (1,585
            )Total
                stockholders' equity
            
            
            115,893
            
            
            113,812Total
                liabilities and stockholders' equity
            
            $
            1,330,097
            
            $
            1,268,536




See
      accompanying notes to consolidated financial statements.




2





West
          Bancorporation, Inc. and Subsidiaries
 Consolidated
          Statements of Income
 (unaudited)
  Three
                    Months Ended March 31,2007
                
                2006(in
                    thousands, except per share data)Interest
                    income:Loans,
                    including fees
                
                $
                17,104
                
                $
                15,463Securities:Government
                    agencies and corporations
                
                
                1,496
                
                
                1,496States
                    and political subdivisions
                
                
                970
                
                
                1,043Other
                
                
                389
                
                
                328Federal
                    funds sold and other short-term investments
                
                
                289
                
                
                126Total
                    interest income
                
                
                20,248
                
                
                18,456Interest
                    expense:Demand
                    deposits
                
                
                325
                
                
                59Savings
                    deposits
                
                
                1,715
                
                
                1,713Time
                    deposits
                
                
                5,532
                
                
                4,857Federal
                    funds purchased and securities sold underagreements
                    to repurchase
                
                
                1,675
                
                
                912Other
                    short-term borrowings
                
                
                8
                
                
                14Subordinated
                    notes
                
                
                363
                
                
                363Long-term
                    borrowings
                
                
                1,319
                
                
                995Total
                    interest expense
                
                
                10,937
                
                
                8,913Net
                    interest income
                
                
                9,311
                
                
                9,543Provision
                    for loan losses
                
                
                300
                
                
                450Net
                    interest income after provision for loan losses
                
                
                9,011
                
                
                9,093Noninterest
                    income:Service
                    charges on deposit accounts
                
                
                1,128
                
                
                1,004Trust
                    services
                
                
                181
                
                
                168Investment
                    advisory fees
                
                
                1,959
                
                
                2,249Increase
                    in cash value of bank-owned life insurance
                
                
                216
                
                
                209Net
                    realized gains (losses) from salesof
                    securities available for sale
                
                
                4
                
                
                (106
                )Other
                    income
                
                
                382
                
                
                357Total
                    noninterest income
                
                
                3,870
                
                
                3,881Noninterest
                    expense:Salaries
                    and employee benefits
                
                
                3,616
                
                
                3,675Occupancy
                
                
                934
                
                
                856Data
                    processing
                
                
                467
                
                
                479Other
                    expenses
                
                
                1,437
                
                
                1,302Total
                    noninterest expense
                
                
                6,454
                
                
                6,312Income
                    before income taxes
                
                
                6,427
                
                
                6,662Income
                    taxes
                
                
                1,983
                
                
                2,117Net
                    income
                
                $
                4,444
                
                $
                4,545Earnings
                    per share, basic
                
                $
                0.25
                
                $
                0.26Cash
                    dividends per share
                
                $
                0.160
                
                $
                0.152


See
      accompanying notes to consolidated financial statements.




3


West
        Bancorporation, Inc. and Subsidiaries
 Consolidated
        Statements of Stockholders' Equity
 (unaudited)
  Three
                  Months Ended March 31,2007
              
              2006(in
                  thousands, except per share data)Common
                  stock:Beginning
                  of year balance
              
              $
              3,000
              
              $
              3,000End
                  of period balance
              
              
              3,000
              
              
              3,000Additional
                  paid-in capital:Beginning
                  of year balance
              
              
              32,000
              
              
              32,000End
                  of period balance
              
              
              32,000
              
              
              32,000Retained
                  earnings:Beginning
                  of year balance
              
              
              80,397
              
              
              71,951Net
                  income
              
              
              4,444
              
              
              4,545Dividends
                  on common stock; per share amounts2007
                  - $0.16 and 2006 - $0.152
              
              
              (2,806
              )
              
              (2,672
              )End
                  of period balance
              
              
              82,035
              
              
              73,824Accumulated
                  other comprehensive loss:Beginning
                  of year balance
              
              
              (1,585
              )
              
              (2,430
              )Unrealized
                  gains (losses) on securities, net of tax
              
              
              443
              
              
              (351
              )End
                  of period balance
              
              
              (1,142
              )
              
              (2,781
              )Total
                  stockholders' equity
              
              $
              115,893
              
              $
              106,043
  West
          Bancorporation, Inc. and Subsidiaries Consolidated
            Statements of Comprehensive Loss (unaudited)
 Three
                  Months Ended March 31,2007
              
              2006(in
                  thousands)Net
                  income
              
              $
              4,444
              
              $
              4,545Other
                  comprehensive income (loss), unrealized gains(losses)
                  on securities, net of reclassification adjustment,net
                  of tax
              
              
              443
              
              
              (351
              )Comprehensive
                  income
              
              $
              4,887
              
              $
              4,194


See
      accompanying notes to consolidated financial statements.




4




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


Three
                Months Ended March 31,2007
            
            2006(in
                thousands)Cash
                Flows from Operating Activities:Net
                income
            
            $
            4,444
            
            $
            4,545Adjustments
                to reconcile net income to net cash provided byoperating
                activities:Provision
                for loan losses
            
            
            300
            
            
            450Net
                amortization and accretion
            
            
            384
            
            
            343Loss
                on disposition of fixed assets
            
            
            2
            
            
            1Net
                (gains) losses from sales of securities available for sale
            
            
            (4
            )
            
            106Net
                gains from sales of loans held for sale
            
            
            (13
            )
            
            (12
            )Proceeds
                from sales of loans held for sale
            
            
            1,269
            
            
            1,459Originations
                of loans held for sale
            
            
            (1,371
            )
            
            (1,632
            )Increase
                in value of bank-owned life insurance
            
            
            (216
            )
            
            (209
            )Depreciation
            
            
            226
            
            
            225Deferred
                income taxes
            
            
            (85
            )
            
            (156
            )Change
                in assets and liabilities:Increase
                in accrued interest receivable
            
            
            (1,089
            )
            
            (631
            )Increase
                (decrease) in accrued expenses and other liabilities
            
            
            (193
            )
            
            1,757Net
                cash provided by operating activites
            
            
            3,654
            
            
            6,246Cash
                Flows from Investing Activities:Proceeds
                from sales, calls, and maturities of securities available for
                sale
            
            
            4,551
            
            
            14,113Purchases
                of securities available for sale
            
            
            (1,142
            )
            
            (15,216
            )Acquisition
                of Federal Home Loan Bank stock
            
            
            (1,393
            )
            
            (432
            )Proceeds
                from redemption of Federal Home Loan Bank stock
            
            
            98
            
            
            432Net
                increase in loans
            
            
            (42,258
            )
            
            (61,957
            )Purchases
                of premises and equipment
            
            
            (106
            )
            
            (215
            )Change
                in other assets
            
            
            (592
            )
            
            (380
            )Net
                cash used in investing activities
            
            
            (40,842
            )
            
            (63,655
            )Cash
                Flows from Financing Activities:Net
                change in deposits
            
            
            (1,320
            )
            
            24,569Net
                change in federal funds purchased and securities sold
                underagreements
                to repurchase
            
            
            34,543
            
            
            28,691Net
                change in other short-term borrowings
            
            
            (1,900
            )
            
            (3,878
            )Proceeds
                from long-term borrowings
            
            
            30,000
            
            
            -Principal
                payments on long-term borrowings
            
            
            (1,650
            )
            
            -Cash
                dividends
            
            
            (2,806
            )
            
            (2,672
            )Net
                cash provided by financing activities
            
            
            56,867
            
            
            46,710Net
                increase (decrease) in cash and cash equivalents
            
            
            19,679
            
            
            (10,699
            )Cash
                and Cash Equivalents:Beginning
            
            
            35,678
            
            
            40,665End
            
            $
            55,357
            
            $
            29,966Supplemental
                Disclosures of Cash Flow InformationCash
                payments for:Interest
            
            $
            10,570
            
            $
            8,562Income
                taxes
            
            
            -
            
            
            122




See
      accompanying notes to consolidated financial statements.





5





West
      Bancorporation, Inc. and Subsidiaries


Notes
      to
      Consolidated Financial Statements (unaudited)


(in
      thousands, except per share information)





1.
      Basis
      of Presentation





The
      accompanying consolidated statements of income, stockholders’ equity,
      comprehensive income, and cash flows for the three months ended March 31, 2007
      and 2006, and the consolidated balance sheets as of March 31, 2007 and December
      31, 2006, include the accounts and transactions of the Company and its
      wholly-owned subsidiaries, West Bank and WB Capital Management Inc. All material
      intercompany balances and transactions have been eliminated in
      consolidation.





The
      accompanying consolidated financial statements have been prepared by the Company
      pursuant to the rules and regulations of the Securities and Exchange Commission.
      Certain information and footnote disclosures normally included in financial
      statements prepared in accordance with generally accepted accounting principles
      have been condensed or omitted pursuant to such rules and regulations. Although
      management believes that the disclosures are adequate to make the information
      presented not misleading, it is suggested that these interim consolidated
      financial statements be read in conjunction with the Company's most recent
      audited financial statements and notes thereto. In the opinion of management,
      the accompanying consolidated financial statements contain all adjustments
      (consisting of only normal recurring accruals) necessary to present fairly
      the
      financial position as of March 31, 2007, and the results of operations and
      cash
      flows for the three months ended March 31, 2007 and 2006.





The
      results for these interim periods may not be indicative of results for the
      entire year or for any other period.





2.
      Earnings per Common Share





Earnings
      per share represent income available to common shareholders divided by the
      weighted average number of shares outstanding during the period. The Company
      has
      no common equivalent shares that could cause dilution. The average number of
      shares outstanding for the three months ended March 31, 2007 and 2006 were
      17,536,682 and 17,536,935, respectively.





3.
      Commitments





In
      the
      normal course of business, the Company enters into commitments to extend credit
      such as loan commitments and standby letters of credit to meet the financing
      needs of its customers. These commitments expose the Company to varying degrees
      of credit and market risk and are subject to the same credit reviews as those
      recorded on the balance sheet. For additional information on credit extension
      commitments see Note 13 of the Company’s 2006 consolidated financial statements.
      The Company’s commitments as of March 31, 2007 and December 31, 2006 were
      approximately as follows:





March
                  31, 2007
              
              December
                  31, 2006Commitments
                  to extend credit
              
              $
              218,733
              
              $
              262,717Standby
                  letters of credit
              
              
              20,443
              
              
              22,301$
              239,176
              
              $
              285,018
   6


4.
      Segment Information





An
      operating segment is generally defined as a component of a business for which
      discrete financial information is available and whose operating results are
      regularly reviewed by the chief operating decisionmaker. The Company’s primary
      business segments are banking and investment advisory services. The banking
      segment generates revenue through interest and fees on loans, service charges
      on
      deposit accounts, interest on investment securities and fees for trust services.
      The banking segment includes West Bank and the Company and related elimination
      entries between the two, as the holding company’s operation is similar to that
      of the bank. The investment advisory segment consists of WB Capital Management
      Inc., and generates revenue by providing investment portfolio management
      services to individuals, retirement plans, corporations, foundations, endowments
      and public entities. The “Other” column represents the elimination of
      intercompany balances. Selected financial information on the Company’s segments
      is presented below for the quarters ended March 31, 2007 and 2006.


Three
                  months ended March 31, 2007SegmentsInvestmentBanking
              
              Advisory
              
              Other
              
              ConsolidatedInterest
                  income
              
              $
              20,248
              
              $
              -
              
              $
              -
              
              $
              20,248Interest
                  expense
              
              
              10,937
              
              
              -
              
              
              -
              
              
              10,937Net
                  interest income
              
              
              9,311
              
              
              -
              
              
              -
              
              
              9,311Provision
                  for loan losses
              
              
              300
              
              
              -
              
              
              -
              
              
              300Net
                  interest income after provision for loan losses
              
              
              9,011
              
              
              -
              
              
              -
              
              
              9,011Noninterest
                  income
              
              
              1,911
              
              
              2,013
              
              
              (54
              )
              
              3,870Noninterest
                  expense
              
              
              4,546
              
              
              1,962
              
              
              (54
              )
              
              6,454Income
                  before income taxes
              
              
              6,376
              
              
              51
              
              
              -
              
              
              6,427Income
                  taxes
              
              
              1,961
              
              
              22
              
              
              -
              
              
              1,983Net
                  income
              
              $
              4,415
              
              $
              29
              
              $
              -
              
              $
              4,444Depreciation
                  and amortization
              
              $
              205
              
              $
              235
              
              $
              -
              
              $
              440Goodwill
              
              $
              13,376
              
              $
              11,554
              
              $
              -
              
              $
              24,930Total
                  assets
              
              $
              1,315,364
              
              $
              15,420
              
              $
              (687
              )
              $
              1,330,097
   Three
                  months ended March 31, 2006SegmentsInvestmentBanking
              
              Advisory
              
              Other
              
              ConsolidatedInterest
                  income
              
              $
              18,470
              
              $
              -
              
              $
              (14
              )
              $
              18,456Interest
                  expense
              
              
              8,906
              
              
              21
              
              
              (14
              )
              
              8,913Net
                  interest income
              
              
              9,564
              
              
              (21
              )
              
              -
              
              
              9,543Provision
                  for loan losses
              
              
              450
              
              
              -
              
              
              -
              
              
              450Net
                  interest income after provision for loan losses
              
              
              9,114
              
              
              (21
              )
              
              -
              
              
              9,093Noninterest
                  income
              
              
              1,633
              
              
              2,297
              
              
              (49
              )
              
              3,881Noninterest
                  expense
              
              
              4,370
              
              
              1,991
              
              
              (49
              )
              
              6,312Income
                  before income taxes
              
              
              6,377
              
              
              285
              
              
              -
              
              
              6,662Income
                  taxes
              
              
              1,998
              
              
              119
              
              
              -
              
              
              2,117Net
                  income
              
              $
              4,379
              
              $
              166
              
              $
              -
              
              $
              4,545Depreciation
                  and amortization
              
              $
              199
              
              $
              247
              
              $
              -
              
              $
              446Goodwill
              
              $
              13,376
              
              $
              9,869
              
              $
              -
              
              $
              23,245Total
                  assets
              
              $
              1,283,797
              
              $
              14,220
              
              $
              (1,054
              )
              $
              1,296,963
   7


5.
      Income
      Taxes





The
      Company adopted the provisions of Financial Accounting Standards Board (FASB)
      Interpretation No. 48, *Accounting
      for Uncertainty in Income Taxes* ,
      effective January 1, 2007 *.* The
      Interpretation provides clarification on accounting for uncertainty in income
      taxes recognized in an enterprise’s financial statements in accordance with FASB
      Statement of Financial Accounting Standard (SFAS) No. 109, *Accounting
      for Income Taxes.* The
      Interpretation prescribes a recognition threshold and measurement attribute
      for
      the financial statement recognition and measurement of a tax position taken
      or
      expected to be taken in a tax return. As a result of the Company’s evaluation of
      the implementation of FIN 48, no significant income tax uncertainties were
      identified. Therefore, the Company recognized no adjustment for unrecognized
      income tax benefits during the three months ended March 31, 2007. Corporate
      tax
      returns for the years 2004 through 2006 remain open to examination by taxing
      authorities.





6.
      Impact
      of New Financial Accounting Standards





In
      February 2007, The FASB issued SFAS No. 159, *The
      Fair Value Option for Financial Assets and Financial
      Liabilities.* SFAS No.
      159 is an amendment of SFAS No. 115, *Accounting
      for Certain Investments in Debt and Equity Securities.* SFAS No.
      159 generally permits the measurement of selected eligible financial instruments
      at fair value at specified election dates. The objective is to improve financial
      reporting by providing entities with the opportunity to mitigate volatility
      in
      reported earnings caused by measuring related assets and liabilities differently
      without having to apply complex hedge accounting provisions. This Statement
      is
      expected to expand the use of fair value measurement, which is consistent with
      the FASB’s long-term measurement objectives for accounting for financial
      instruments. This Statement is effective for the Company beginning January
      1,
      2008. The Company has evaluated this pronouncement and has concluded its
      operations are not applicable to the primary objective of the pronouncement.
      The
      Company’s independent registered public accounting firm concurred with that
      assessment.





7.
      Use of
      Estimates in the Preparation of Financial Statements





The
      preparation of financial statements in conformity with generally accepted
      accounting principles requires management to make estimates and assumptions
      that
      affect the reported amounts of assets and liabilities and disclosure of
      contingent assets and liabilities at the date of the financial statements and
      the reported amounts of revenues and expenses during the reported period. Actual
      results could differ from those estimates. Material estimates that are
      particularly susceptible to significant change in the near term are the
      allowance for loan losses and fair value of financial instruments.





8.
      Critical Accounting Policies





Management
      has identified its most critical accounting policy to be that related to the
      allowance for loan losses. The allowance for loan losses is established through
      a provision for loan losses charged to expense. Loans are charged against the
      allowance for loan losses when management believes that collectibility of the
      principal is unlikely. The Company has policies and procedures for evaluating
      the overall credit quality of its loan portfolio, including timely
      identification of potential problem credits. On a quarterly basis, management
      reviews the appropriate level for the allowance for loan losses incorporating
      a
      variety of risk considerations, both quantitative and qualitative. Quantitative
      factors include the Company’s historical loss experience, delinquency and
      charge-off trends, collateral values, known information about individual loans
      and other factors. Qualitative factors include the general economic environment
      in the Company’s market areas and the expected trend of those economic
      conditions. To the extent actual results differ from forecasts and management’s
      judgment, the allowance for loan losses may be greater or less than future
      charge-offs.





8


Item
      2.
      Management's Discussion and Analysis of Financial Condition and Results of
      Operations.





"SAFE
      HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM
      ACT





The
      information contained in this report may contain forward-looking statements
      about the Company’s growth and acquisition strategies, new products and
      services, and future financial performance, including earnings and dividends
      per
      share, return on average assets, return on average equity, efficiency ratio
      and
      capital ratio. Certain statements in this report constitute “forward-looking
      statements” within the meaning of the Private Securities Litigation Reform Act
      of 1995. Such forward-looking statements are based upon certain underlying
      assumptions, risks and uncertainties. Because of the possibility of change
      in
      the underlying assumptions, actual results could differ materially from these
      forward-looking statements. Risks and uncertainties that may affect future
      results include: interest rate risk, competitive pressures, pricing pressures
      on
      loans and deposits, actions of bank and non-bank competitors, changes in local
      and national economic conditions, changes in regulatory requirements, actions
      of
      the Securities and Exchange Commission and/or the Federal Reserve Board, and
      customers’ acceptance of the Company’s products and services. The Company
      undertakes no obligation to revise or update such forward-looking statements
      to
      reflect current events or circumstances after the date hereof or to reflect
      the
      occurrence of unanticipated events.





THREE
      MONTHS ENDED MARCH 31, 2007


(dollars
      in thousands)





OVERVIEW





The
      following discussion is provided for the consolidated operations of the Company,
      which include its wholly-owned banking subsidiary, West Bank (“Bank”) and its
      wholly-owned investment advisory subsidiary, WB Capital Management Inc (“WB
      Capital”). It focuses on the consolidated results of operations for the three
      months ended March 31, 2007, compared to the same period in 2006, and on the
      consolidated financial condition of the Company and its subsidiaries at March
      31, 2007 and December 31, 2006.





Net
      income for the three months ended March 31, 2007 declined 2.2 percent to $4,444
      compared to $4,545 for the same period in 2006. The decline was due to the
      combination of a reduction in net interest income of $232, or 2.4 percent,
      , an
      $11, or 0.3 percent, decline in noninterest income and a $142, or 2.3 percent,
      increase in noninterest expense. These reductions were somewhat offset by a
      $150
      decrease in the provision for loan losses.





The
      Company’s return on average assets was 1.38 percent compared to 1.45 percent for
      the first quarter of 2006. The return on average equity was 15.86 percent
      compared to 17.60 percent for the prior year.





Net
      income of the banking segment of the Company increased by a modest $36 despite
      continued pressure on the net interest margin. Net income from the investment
      advisory segment totaled $29 for the first quarter of 2007, compared to $166
      for
      the first quarter of 2006. The decline in net income of WB Capital was due
      to
      reduced revenues from investment advisory fees. See the discussion on page 13
      for additional information.





The
      year-to-date net interest margin has declined 18 basis points from a year ago,
      as the inverted yield curve continued to cause the cost of funds (deposits
      and
      borrowings) to increase faster than the yield on earning assets (loans and
      investments). While the volume of interest-earning assets and liabilities moved
      in tandem the rate paid on interest-bearing liabilities increased 29 basis
      points more than the yield on earning assets.





Year-to-date
      noninterest income was $11 lower than last year, as a reduction in investment
      advisory fees more than offset increases in service charges on deposit accounts
      and gains on sales of investment securities. Noninterest income for the first
      quarter of 2006 included net losses on securities sales of $106, while 2007
      included net gains of $4.




9





Year-to-date
      noninterest expense was $142 higher than a year ago, primarily due to increases
      in occupancy, business development and professional fees.





RESULTS
      OF OPERATIONS





The
      following table shows selected financial results and measures for the three
      months ended March 31, 2007, compared with the same period in
      2006.


Three
                    months ended March 31,2007
                
                2006
                
                Change
                
                Change-%Net
                    income
                
                $
                4,444
                
                $
                4,545
                
                $
                (101
                )
                
                -2.2
                %Average
                    assets
                
                
                1,304,283
                
                
                1,271,564
                
                
                32,719
                
                
                2.6
                %Average
                    stockholders' equity
                
                
                113,670
                
                
                104,711
                
                
                8,959
                
                
                8.6
                %Return
                    on assets
                
                
                1.38
                %
                
                1.45
                %
                
                -0.07
                %Return
                    on equity
                
                
                15.86
                %
                
                17.60
                %
                
                -1.74
                %Efficiency
                    ratio
                
                
                47.53
                %
                
                45.17
                %
                
                2.36
                %Dividend
                    payout ratio
                
                
                63.14
                %
                
                58.79
                %
                
                4.35
                %Equity
                    to assets ratio
                
                
                8.72
                %
                
                8.23
                %
                
                0.49
                %


Definition
      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 paid divided by net income.




Equity
      to
      assets ratio - average equity divided by average assets.





Net
      Interest Income





The
      following table shows average balances and related interest income or interest
      expense, with the resulting average yield or rate by category of
      interest-earning assets or interest-bearing liabilities. Interest income and
      the
      resulting net interest income are shown on a fully taxable basis.





10


Data
      for
      the three months ended March 31.


Average
                  Balance
              
              Interest
                  Income/Expense
              
              Yield/Rate2007
              
              2006
              
              Change
              
              Change-%
              
              2007
              
              2006
              
              Change
              
              Change-%
              
              2007
              
              2006
              
              ChangeInterest-earning
                  assets:Loans:Commercial
              
              $
              337,851
              
              $
              324,842
              
              $
              13,009
              
              
              4.00
              %
              $
              6,640
              
              $
              5,852
              
              $
              788
              
              
              13.47
              %
              
              7.97
              %
              
              7.31
              %
              
              0.66
              %Real
                  estate
              
              
              574,846
              
              
              555,053
              
              
              19,793
              
              
              3.57
              %
              
              10,273
              
              
              9,471
              
              
              802
              
              
              8.47
              %
              
              7.25
              %
              
              6.92
              %
              
              0.33
              %Consumer
                  and other
              
              
              14,855
              
              
              13,738
              
              
              1,117
              
              
              8.13
              %
              
              280
              
              
              223
              
              
              57
              
              
              25.56
              %
              
              7.64
              %
              
              6.59
              %
              
              1.05
              %Total
                  Loans
              
              
              927,552
              
              
              893,633
              
              
              33,919
              
              
              3.80
              %
              
              17,193
              
              
              15,546
              
              
              1,647
              
              
              10.59
              %
              
              7.52
              %
              
              7.06
              %
              
              0.46
              %Investment
                  securities:Taxable
              
              
              170,281
              
              
              173,161
              
              
              (2,880
              )
              
              -1.66
              %
              
              1,981
              
              
              1,913
              
              
              68
              
              
              3.55
              %
              
              4.65
              %
              
              4.42
              %
              
              0.23
              %Tax-exempt
              
              
              90,937
              
              
              100,969
              
              
              (10,032
              )
              
              -9.94
              %
              
              1,189
              
              
              1,315
              
              
              (126
              )
              
              -9.58
              %
              
              5.23
              %
              
              5.21
              %
              
              0.02
              %Total
                  investment securities
              
              
              261,218
              
              
              274,130
              
              
              (12,912
              )
              
              -4.71
              %
              
              3,170
              
              
              3,228
              
              
              (58
              )
              
              -1.80
              %
              
              4.85
              %
              
              4.71
              %
              
              0.14
              %Federal
                  funds sold andshort-term
                  investments
              
              
              22,417
              
              
              11,234
              
              
              11,183
              
              
              99.55
              %
              
              289
              
              
              126
              
              
              163
              
              
              129.37
              %
              
              5.22
              %
              
              4.55
              %
              
              0.67
              %Total
                  interest-earning assets
              
              $
              1,211,187
              
              $
              1,178,997
              
              $
              32,190
              
              
              2.73
              %
              $
              20,652
              
              $
              18,900
              
              $
              1,752
              
              
              9.27
              %
              
              6.90
              %
              
              6.49
              %
              
              0.41
              %Interest-bearing
                  liabilities:Deposits:Checking
                  with interest, savingsand
                  money markets
              
              $
              289,054
              
              $
              316,709
              
              $
              (27,655
              )
              
              -8.73
              %
              $
              2,040
              
              $
              1,772
              
              $
              268
              
              
              15.12
              %
              
              2.86
              %
              
              2.27
              %
              
              0.59
              %Time
                  deposits
              
              
              441,281
              
              
              461,316
              
              
              (20,035
              )
              
              -4.34
              %
              
              5,532
              
              
              4,857
              
              
              675
              
              
              13.90
              %
              
              5.08
              %
              
              4.27
              %
              
              0.81
              %Total
                  deposits
              
              
              730,335
              
              
              778,025
              
              
              (47,690
              )
              
              -6.13
              %
              
              7,572
              
              
              6,629
              
              
              943
              
              
              14.23
              %
              
              4.20
              %
              
              3.46
              %
              
              0.75
              %Other
                  borrowed funds
              
              
              267,561
              
              
              188,628
              
              
              78,933
              
              
              41.85
              %
              
              3,365
              
              
              2,284
              
              
              1,081
              
              
              47.33
              %
              
              5.10
              %
              
              4.91
              %
              
              0.19
              %Total
                  interest-bearing liabilities
              
              $
              997,896
              
              $
              966,653
              
              $
              31,243
              
              
              3.23
              %
              
              10,937
              
              
              8,913
              
              
              2,024
              
              
              22.71
              %
              
              4.44
              %
              
              3.74
              %
              
              0.70
              %Tax-equivalent
                  net interest income
              
              
              
              
              
              
              
              
              
              
              
              
              
              $
              9,715
              
              $
              9,987
              
              $
              (272
              )
              
              -2.72
              %Net
                  interest spread
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              2.46
              %
              
              2.75
              %
              
              -0.29
              %Net
                  interest margin
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              3.24
              %
              
              3.42
              %
              
              -0.18
              %


Fluctuations
      in net interest income can result from the combination of changes in the volumes
      of asset and liability categories and changes in interest rates. Net interest
      margin is a measure of the net return on interest-earning assets, and is
      computed by dividing annualized tax-equivalent net interest income by the
      average of total interest-earning assets for the period. Despite a $32.2 million
      increase in average earning assets in the first quarter of 2007, the net
      interest margin for the quarter declined to 3.24 percent, which was 18 basis
      points lower than the same quarter last year. In the first quarter of 2007,
      the
      inverted yield curve, where short-term interest rates are higher than
      longer-term interest rates, continued to negatively impact the net interest
      margin. The Company's tax-equivalent net interest income for the quarter ended
      March 31, 2007, declined $272 compared to the three months ended March 31,
      2006.





Taxable-equivalent
      interest income and fees on loans increased $1.6 million in the first quarter
      of
      2007 compared to the same period in 2006, due to the combination of a higher
      volume of outstanding loans and increasing rates. Average loans were $33.9
      million higher than the first quarter of last year and the average yield on
      loans increased to 7.52 percent for the first quarter of 2007, compared to
      7.06
      percent in the first quarter of 2006. The yield on the Company's loan portfolio
      is affected by the mix of the portfolio, the effects of competition, the
      interest rate environment and the amount of non-accrual loans. The interest
      rate
      environment can influence the volume of new loan originations and the mix of
      variable rate versus fixed-rate loans. Pricing among lenders in the market
      areas
      served by the Company remains very competitive.





The
      average balance of investment securities was $12.9 million lower than last
      year,
      while the yield has increased 14 basis points. There have been minimal purchases
      of investment securities during the first quarter of 2007 as yields on
      short-term investments have approximated those of longer-term investment
      securities and are generally lower than the marginal cost of funds.




11





The
      average rate on deposits increased to 4.20 percent from 3.46 percent for the
      first quarter of last year. This increase is primarily the result of an increase
      in market interest rates and the shift in funds from money market and savings
      accounts to a new market rate interest-bearing checking account and certificates
      of deposits. Clients have made these transfers to maximize their earnings.
      The
      reduction in time deposits in the first quarter of 2007 compared to the same
      time period in 2006 was due to the Bank utilizing fewer wholesale certificates
      of deposit as a source of funding loan growth.





The
      average balance of borrowings for the first quarter of 2007 was $78.9 million
      higher than a year ago and the mix of borrowings has changed significantly
      since
      last year. Overnight borrowings in the form of Federal funds purchased from
      correspondent banks averaged $30.0 million more than the first quarter of last
      year. Because these funds are short-term, the amount that is not needed for
      funding loans is invested overnight and earns only slightly more than the rate
      the Bank is paying. Average securities sold under agreements to repurchase
      increased $17.4 million compared to the prior year. Average long-term borrowings
      increased $33.5 million, with lower rates paid on those additional borrowings
      resulting in a 29 basis point decline in the rate compared to 2006.





Provision
      for Loan Losses





The
      following table sets forth the activity in the Allowance for Loan Losses for
      the
      three months ended March 31, 2007 and 2006, as well as common ratios related
      to
      the allowance for loan losses.


Three
                    months ended March 31,2007
                
                2006
                
                ChangeBalance
                    at beginning of period
                
                $
                8,494
                
                $
                7,615
                
                $
                879Charge-offs
                
                
                (155
                )
                
                (34
                )
                
                (121
                )Recoveries
                
                
                104
                
                
                18
                
                
                86Net
                    charge-offs
                
                
                (51
                )
                
                (16
                )
                
                (35
                )Provision
                    charged to operations
                
                
                300
                
                
                450
                
                
                (150
                )Balance
                    at end of period
                
                $
                8,743
                
                $
                8,049
                
                $
                694Average
                    loans outstanding
                
                $
                927,552
                
                $
                893,633Ratio
                    of net charge-offs during theperiod
                    to average loans outstanding
                
                
                0.01
                %
                
                0.00
                %Ratio
                    of allowance for loan lossesto
                    average loans outstanding
                
                
                0.94
                %
                
                0.90
                %


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 that
      suggest special monitoring is warranted.




12





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
      examination. See also the discussion of non-performing assets later in this
      report.





Noninterest
      Income





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


Three
                    months ended March 31,2007
                
                2006
                
                Change
                
                Change-%Noninterest
                    incomeService
                    charges on deposit accounts
                
                $
                1,128
                
                $
                1,004
                
                $
                124
                
                
                12.4
                %Trust
                    services
                
                
                181
                
                
                168
                
                
                13
                
                
                7.7
                %Investment
                    advisory fees
                
                
                1,959
                
                
                2,249
                
                
                (290
                )
                
                -12.9
                %Increase
                    in cash value of bank-ownedlife
                    insurance
                
                
                216
                
                
                209
                
                
                7
                
                
                3.3
                %Net
                    realized gains (losses) from salesof
                    securities
                
                
                4
                
                
                (106
                )
                
                110
                
                
                103.8
                %Other
                    income:Debit
                    card usage fees
                
                
                82
                
                
                54
                
                
                28
                
                
                51.9
                %Check
                    printing fees
                
                
                36
                
                
                47
                
                
                (11
                )
                
                -23.4
                %Visa/MasterCard
                    income
                
                
                54
                
                
                35
                
                
                19
                
                
                54.3
                %All
                    other
                
                
                210
                
                
                221
                
                
                (11
                )
                
                -5.0
                %Total
                    other
                
                
                382
                
                
                357
                
                
                25
                
                
                7.0
                %Total
                    noninterest income
                
                $
                3,870
                
                $
                3,881
                
                $
                (11
                )
                
                -0.3
                %





Service
      charges on deposit accounts increased primarily because of implementing pricing
      changes for return check charges in the third quarter of 2006. Offsetting this
      increase were slight declines in service charges collected on commercial and
      consumer accounts.





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





The
      Company recognized losses from the sale of investment securities in the first
      quarter of 2006 as lower yielding investments were sold with the proceeds being
      reinvested at higher yields. Debit card usage fees continued to increase as
      a
      result of higher usage of this convenient payment method. Check printing income
      declined as customers continue increasing their utilization of electronic
      payment methods, thus reducing the frequency of ordering checks. Revenue from
      Visa/MasterCard increased as a result of the fees earned on an additional volume
      of cards issued, along with a rate increase in July 2006 on lower performing
      merchants.





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.




13





Three
                    months ended March 31,2007
                
                2006
                
                Change
                
                Change-%Noninterest
                    expense:Salaries
                    and employee benefits
                
                $
                3,616
                
                $
                3,675
                
                $
                (59
                )
                
                -1.6
                %Occupancy
                
                
                934
                
                
                856
                
                
                78
                
                
                9.1
                %Data
                    processing
                
                
                467
                
                
                479
                
                
                (12
                )
                
                -2.5
                %Other
                    expenses:Insurance
                
                
                73
                
                
                64
                
                
                9
                
                
                14.1
                %Training
                
                
                25
                
                
                16
                
                
                9
                
                
                56.3
                %Marketing
                
                
                104
                
                
                98
                
                
                6
                
                
                6.1
                %Business
                    development
                
                
                106
                
                
                80
                
                
                26
                
                
                32.5
                %Professional
                    fees
                
                
                205
                
                
                164
                
                
                41
                
                
                25.0
                %Consulting
                    fees
                
                
                55
                
                
                58
                
                
                (3
                )
                
                -5.2
                %Other
                    real estate owned expense
                
                
                19
                
                
                (7
                )
                
                26
                
                
                -371.4
                %Intangible
                    amortization
                
                
                214
                
                
                221
                
                
                (7
                )
                
                -3.2
                %All
                    other
                
                
                636
                
                
                608
                
                
                28
                
                
                4.6
                %Total
                    other
                
                
                1,437
                
                
                1,302
                
                
                135
                
                
                10.4
                %Total
                    noninterest expense
                
                $
                6,454
                
                $
                6,312
                
                $
                142
                
                
                2.2
                %





The
      slight decline in salaries and benefits resulted from fewer employees at WB
      Capital and lower estimates for certain compensation related
      accruals.





Occupancy
      expenses were higher in 2007 due to the relocation of one of the Des Moines
      metropolitan branches to a rented facility in a higher traffic location during
      the third quarter of 2006 and additional space rented for certain operational
      departments of the Bank. The Company continues to market excess space available
      in the facility in which WB Capital is located.





Training
      expense has increased as an emphasis has been placed on assisting employees
      with
      their technical skills, and employees are taking advantage of the Company’s
      tuition assistance plan. Marketing and business development related costs
      increased due to continued efforts to increase and expand current and new
      customer relationships. Professional fees increased due to higher legal fees
      associated with corporate governance, loan portfolio and general business
      issues. Other real estate owned expense increased due to real estate taxes
      on
      farmland acquired through an in-substance foreclosure in the third quarter
      of
      2006 and the write-down of one property to its estimated net realizable
      value.





Income
      Tax Expense





The
      Company incurred income tax expense of $1,983 for the three months ended March
      31, 2007, compared with $2,117 for the three months ended March 31, 2006. The
      effective income tax rate as a percent of income before taxes for the three
      months ended March 31, 2007 and 2006, was 30.9 percent and 31.8 percent,
      respectively.





The
      Company adopted the provisions of Financial Accounting Standards Board (FASB)
      Interpretation No. 48, *Accounting
      for Uncertainty in Income Taxes* ,
      effective January 1, 2007 *.* The
      Interpretation provides clarification on accounting for uncertainty in income
      taxes recognized in an enterprise’s financial statements in accordance with FASB
      Statement of Financial Accounting Standard (SFAS) No. 109, *Accounting
      for Income Taxes.* The
      Interpretation prescribes a recognition threshold and measurement attribute
      for
      the financial statement recognition and measurement of a tax position taken
      or
      expected to be taken in a tax return. As a result of the Company’s evaluation of
      the implementation of FIN 48, no significant income tax uncertainties were
      identified. Therefore, the Company recognized no adjustment for unrecognized
      income tax benefits during the three months ended March 31, 2007.





14





FINANCIAL
      CONDITION





Total
      assets as of March 31, 2007, were $1.33 billion, a slight increase from $1.27
      billion at December 31, 2006. The increase was primarily the result of an
      increase in loan volume.





Investment
      Securities





Investment
      securities available for sale declined $2.9 million from December 31, 2006
      to
      $253.9 million at March 31, 2007. During the first quarter of 2007, $3.8 million
      of securities were sold in an effort to shorten the duration of the
      portfolio.





Loans
      and
      Non-performing Assets





Loans
      outstanding increased $42.3 million from December 31, 2006 to March 31, 2007.
      Commercial loans were up $18.1 million, construction loans increased $19.2
      million and commercial real estate loans increased $6.2 million. It is expected
      that loan demand in the commercial, construction and commercial real estate
      categories will remain strong for the next couple of quarters. While Iowa’s
      economic indicators remain strong, it is difficult to foresee beyond two or
      three quarters.





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).


March
                  31, 2007
              
              December
                  31, 2006
              
              ChangeNon-accrual
                  loans
              
              $
              590
              
              $
              495
              
              $
              95Loans
                  past due 90 days and stillaccruing
                  interest
              
              
              371
              
              
              155
              
              
              216Total
                  non-performing loans
              
              
              961
              
              
              650
              
              
              311Other
                  real estate owned
              
              
              1,974
              
              
              2,002
              
              
              (28
              )Total
                  non-performing assets
              
              $
              2,935
              
              $
              2,652
              
              $
              283Non-performing
                  assets to total loans
              
              
              0.31
              %
              
              0.29
              %
              
              0.02
              %Non-performing
                  assets to total assets
              
              
              0.22
              %
              
              0.21
              %
              
              0.01
              %





The
      balance of loans in non-accrual status was $590, and consisted of loans to
      five
      different borrowers. Other real estate owned included farmland with an estimated
      net realizable value of $1.6 million and several other properties. A sheriff’s
      auction of the farmland is scheduled for May 2007 and one property with a net
      realizable value of $213 was sold in April.





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





Deposits





Total
      deposits as of March 31, 2007 were virtually the same as at December 31, 2006.
      While total deposits did not change, there was a change in the mix of deposits.
      Interest-bearing demand increased $14.2 million as the Bank’s new high-yield
      interest-bearing checking account continued to attract new customers and retain
      current customers. Money market accounts, which are liquid accounts and
      therefore pay relatively lower interest rates, declined approximately $23.1
      million. A portion of those funds moved into the time certificates of deposit
      in
      excess of $100,000 category as customers attempted to maximize the interest
      earned on those funds. It is expected that this trend will continue. Time
      deposits increased a total of $20.5 million.




15





Borrowings





The
      balance of Federal funds purchased and securities sold under agreements to
      repurchase was $143.9 million at March 31, 2007, up from $109.3 million at
      December 31, 2006. Most of this increase relates to Federal funds purchased.
      Federal funds purchased are funds sold to West Bank by approximately 25 banks
      throughout Iowa. This is a correspondent bank service provided by West Bank.
      The
      balance of Federal funds purchased from correspondent banks will fluctuate
      depending upon the loan demand and investment strategies of those banks. The
      balance of other short-term borrowings consisted of Treasury, Tax and Loan
      option notes. Long-term borrowings increased $28.4 million as the result of
      a
      January 2007 10-year Federal Home Loan Bank (“FHLB”) advance of $30 million,
      which has a rate of 4.32 percent. The advance is callable after three
      years.





Liquidity
      and Capital Resources





The
      objective of liquidity management is to ensure the availability of sufficient
      cash flows to meet all corporate financial commitments and to capitalize on
      opportunities for profitable business expansion. The Company’s principal sources
      of funds are 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 funds management policy. The Company had
      liquid assets (cash and cash equivalents) of $55,357 as of March 31, 2007,
      compared with $35,678 as of December 31, 2006. Securities available for sale
      may
      be sold prior to maturity to meet liquidity needs, to respond to market changes
      or to adjust the Company’s interest rate risk position. The Bank had additional
      borrowing capacity available from the FHLB of approximately $43 million at
      March
      31, 2007 and the Company has a $2.5 million unsecured line of credit through
      a
      large regional correspondent bank. In addition, the Bank has $95 million in
      borrowing capacity available through unsecured Federal funds lines of credit
      with correspondent banks. The Bank was not utilizing any of those lines of
      credit at March 31, 2007. The combination of high levels of potentially liquid
      assets, cash flows from operations and additional borrowing capacity provided
      strong liquidity for the Company at March 31, 2007.





The
      Company’s total stockholders’ equity increased to $115.9 million at March 31,
      2007, from $113.8 million at December 31, 2006. Total equity increased due
      to
      retention of earnings net of a dividend payment. Total shareholders' equity
      was
      8.71 percent of total assets as of March 31, 2007 and 8.97 percent on December
      31, 2006. No material capital expenditures or material changes in the capital
      resource mix are anticipated at this time.





Quantitative
      measures established by regulation to ensure capital adequacy require the
      Company and the Bank to maintain minimum amounts and ratios (set forth in the
      following table) of total and Tier 1 capital to risk-weighted assets and of
      Tier
      1 capital to average assets. Management believes the capital levels of the
      Company and the Bank met all capital adequacy requirements to which they were
      subject at March 31, 2007.


Regulatoryrequirements
                  to be:
              
              Actual
                  RegulatoryAdequately
              
              Well-
              
              Capital
                  Ratios as of:Capitalized
              
              Capitalized
              
              March
                  31, 2007
              
              December
                  31, 2006Total
                  risk-based capitalas
                  % of risk-weighted assets:Consolidated
              
              
              8.0
              %
              
              n/a
              
              
              11.0
              %
              
              11.2
              %West
                  Bank
              
              
              8.0
              %
              
              10.0
              %
              
              11.5
              %
              
              11.8
              %Tier
                  1 capital as % of risk-weighted assets:Consolidated
              
              
              4.0
              %
              
              n/a
              
              
              10.1
              %
              
              10.4
              %West
                  Bank
              
              
              4.0
              %
              
              6.0
              %
              
              8.8
              %
              
              9.0
              %Tier
                  1 capital as % average assetsConsolidated
              
              
              4.0
              %
              
              n/a
              
              
              8.6
              %
              
              8.5
              %West
                  Bank
              
              
              4.0
              %
              
              5.0
              %
              
              7.4
              %
              
              7.3
              %






16




On
      April
      18, 2007, the Company’s Board of Directors authorized $5 million to be used for
      the buy-back of Company common stock over the next 12 months. No shares have
      been purchased under a similar authorization in effect for the past 12
      months.





Market
      Risk Management





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





Item
      3.
      Quantitative and Qualitative Disclosures about Market Risk.





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





Item
      4.
      Controls and Procedures





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





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





Part
      II -
      OTHER INFORMATION





Item
      1.
      Legal Proceedings





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





Item
      1A.
      Risk Factors





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





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





During
      the first quarter of 2007, there were no purchases of the Company’s common
      shares under the $5 million stock buy-back plan approved by the Board of
      Directors on April 19, 2006. This resolution expired on April 18, 2007. On
      April
      18, 2007, the Company’s Board of Directors authorized $5 million to be available
      for the buy-back of company stock over the next 12 months.




17





Item
      6.
      Exhibits





The
      following exhibits are filed as part of this report:


Exhibits3.1
              Restated
                  Articles of Incorporation of the Company(1)3.2
              By-laws
                  of the Company(1)10.1
              Lease
                  for Main Bank Facility(1)10.2
              Supplemental
                  Agreement to Lease for Main Bank Facility(1)10.3
              Short-term
                  Lease related to Main Bank facility(1)10.4
              Assignment(1)10.5
              Lease
                  Modification Agreement No. 1 for Main Bank Facility(1)10.6
              Memorandum
                  of Real Estate Contract(1)10.7
              Affidavit(1)10.8
              Addendum
                  to Lease for Main Bank Facility(1)10.9
              Data
                  Processing Contract(1)10.10
              Employment
                  Contract(1)10.11
              No
                  document10.12
              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(8)10.19
              West
                  Bancorporation, Inc. Restricted Stock Compensation Plan(7)10.20
              Employment
                  Agreement between Investors Management Group and Jeff Lorenzen(9)10.21
              Assignment
                  and Assumption of Lease and Consent to Assignment(10)10.22
              2007
                  Amendment to Lease Agreement31.1
              Certification
                  of Chief Executive Officer under Section 302 of the Sarbanes-Oxley
                  Act of
                  200231.2
              Certification
                  of Chief Financial Officer under Section 302 of the Sarbanes-Oxley
                  Act of
                  200232.1
              Certification
                  of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350,
                  as Adopted
                  Pursuant to Section 906 of the Sarbanes-Oxley Act of
                  200232.2
              Certification
                  of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350,
                  as Adopted
                  Pursuant to Section 906 of the Sarbanes-Oxley Act of
                  2002





(1)  Incorporated herein by reference to the related exhibit filed with the Form
      10
      on March 11, 2002.




(2)  Incorporated herein by reference to the related exhibit filed with the Form
      10-K
      on March 26, 2003.




(3)  Incorporated herein by reference to the related exhibit filed with the Form
      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 definitive proxy statement 14A which
      was
      filed on March 10, 2005.




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




(9)  Incorporated herein by reference to the related exhibit filed with the Form
      8-K
      on February 22, 2006.




(10)  Incorporated herein by reference to the related exhibit filed with the Form
      10-K
      on March 8, 2006.




18


SIGNATURES





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




West
                Bancorporation, Inc.
              (Registrant)May 4, 2007
              Dated
            By:
            /s/ Thomas E. StanberryThomas
              E. StanberryChairman, President and Chief Executive
              Officer


May 4, 2007
              Dated
            By:
            /s/ Douglas R. GullingDouglas
              R. GullingExecutive
                Vice President and Chief Financial Officer
              (Principal
                Accounting Officer)





19


EXHIBIT
      INDEX





The
      following exhibits are filed herewith:





Exhibit
                No.
            
            Description10.22
            
            2007
                Amendment to Lease Agreement31.1
            
            Certification
                of Chief Executive Officer under Section 302 of the Sarbanes-Oxley
                Act of
                200231.2
            
            Certification
                of Chief Financial Officer under Section 302 of the Sarbanes-Oxley
                Act of
                200232.1
            
            Certification
                of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as
                Adopted
                Pursuant to Section 906 of the Sarbanes-Oxley Act of
                200232.2
            
            Certification
                of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as
                Adopted
                Pursuant to Section 906 of the Sarbanes-Oxley Act of
                2002