UNITED
      STATES


SECURITIES
      AND EXCHANGE COMMISSION


WASHINGTON,
      D.C. 20549





**FORM
      10-Q**





(Mark
      One)





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





For
      the
      quarterly period ended September 30, 2008





or





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


For
      the
      transition period from  to





Commission
      File Number 0-49677





WEST
      BANCORPORATION, INC.


(Exact
      Name of Registrant as Specified in its Charter)





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





1601
      22 nd Street,
      West Des Moines, Iowa 50266





Telephone
      Number (515) 222-2300





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





Yes x No  ̈





Indicate
      by check mark whether the registrant is a large accelerated filer, an
      accelerated filer, a non-accelerated filer, or a smaller reporting company.
      See
      definition of “large accelerated filer,” “accelerated filer” and “smaller
      reporting company” in Rule 12b-2 of the Exchange Act.





Large accelerated filer
             ̈
            Accelerated filer
            xNon-accelerated filer
             ̈
            Smaller reporting company
             ̈





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


Yes  ̈ No x





As
      of
      October 29, 2008, there were 17,403,882 shares of common stock, no par value
      outstanding.





PART
      I – FINANCIAL INFORMATION


Item
      1.
      Financial Statements





West
      Bancorporation, Inc. and Subsidiaries


Consolidated
      Balance Sheets


(unaudited)





September 30,
            
            December 31,2008
            
            2007(in
                thousands, except per share data)AssetsCash
                and due from banks
            
            $
            25,204
            
            $
            49,529Federal
                funds sold and other short-term investments
            
            
            87,188
            
            
            414Cash
                and cash equivalents
            
            
            112,392
            
            
            49,943Securities
                available for sale
            
            
            183,936
            
            
            231,427Federal
                Home Loan Bank stock, at cost
            
            
            7,810
            
            
            5,951Total
                securities
            
            
            191,746
            
            
            237,378Loans
                held for sale
            
            
            77
            
            
            1,858Loans
            
            
            1,093,402
            
            
            983,565Allowance
                for loan losses
            
            
            (16,484
            )
            
            (8,935
            )Loans,
                net
            
            
            1,076,918
            
            
            974,630Premises
                and equipment, net
            
            
            4,842
            
            
            5,181Accrued
                interest receivable
            
            
            7,326
            
            
            7,829Goodwill
            
            
            24,930
            
            
            24,930Other
                intangible assets
            
            
            1,588
            
            
            2,131Bank-owned
                life insurance
            
            
            25,037
            
            
            24,341Other
                assets
            
            
            18,889
            
            
            11,747Total
                assets
            
            $
            1,463,745
            
            $
            1,339,968Liabilities
                and Stockholders' EquityLiabilitiesDeposits:Non-interest
                bearing demand
            
            $
            187,606
            
            $
            196,698Interest-bearing
                demand
            
            
            120,642
            
            
            85,027Savings
            
            
            222,488
            
            
            243,405Time
                of $100,000 or more
            
            
            219,148
            
            
            160,936Other
                time
            
            
            368,889
            
            
            224,859Total
                deposits
            
            
            1,118,773
            
            
            910,925Federal
                funds purchased and securities sold under agreements to
                repurchase
            
            
            69,444
            
            
            166,930Other
                short-term borrowings
            
            
            1,427
            
            
            2,672Accrued
                expenses and other liabilities
            
            
            11,371
            
            
            14,216Subordinated
                notes
            
            
            20,619
            
            
            20,619Long-term
                borrowings
            
            
            127,250
            
            
            103,000Total
                liabilities
            
            
            1,348,884
            
            
            1,218,362Stockholders'
                EquityCommon
                stock, no par value; authorized 50,000,000 shares;
              17,403,882
                and 17,462,182 shares issued and outstanding at September 30, 2008
                and
                December 31, 2007, respectively
            
            
            3,000
            
            
            3,000Additional
                paid-in capital
            
            
            32,000
            
            
            32,000Retained
                earnings
            
            
            83,470
            
            
            87,084Accumulated
                other comprehensive loss
            
            
            (3,609
            )
            
            (478
            )Total
                stockholders' equity
            
            
            114,861
            
            
            121,606Total
                liabilities and stockholders' equity
            
            $
            1,463,745
            
            $
            1,339,968





See
      accompanying notes to consolidated financial statements.


2


West
      Bancorporation, Inc. and Subsidiaries


Consolidated
      Statements of Income


(unaudited)





Three Months Ended
            
            Nine Months EndedSeptember 30,
            
            September 30,(in
                thousands, except per share data)
            
            2008
            
            2007
            
            2008
            
            2007Interest
                income:Loans,
                including fees
            
            $
            15,986
            
            $
            17,730
            
            $
            47,676
            
            $
            52,766Securities:Government
                agencies and corporations
            
            
            667
            
            
            1,468
            
            
            2,188
            
            
            4,455States
                and political subdivisions
            
            
            1,083
            
            
            923
            
            
            2,993
            
            
            2,829Other
            
            
            413
            
            
            393
            
            
            1,250
            
            
            1,170Federal
                funds sold and other short-term investments
            
            
            36
            
            
            122
            
            
            271
            
            
            682Total
                interest income
            
            
            18,185
            
            
            20,636
            
            
            54,378
            
            
            61,902Interest
                expense:Demand
                deposits
            
            
            334
            
            
            584
            
            
            857
            
            
            1,361Savings
                deposits
            
            
            897
            
            
            1,761
            
            
            3,316
            
            
            5,317Time
                deposits
            
            
            4,173
            
            
            5,306
            
            
            11,741
            
            
            16,228Federal
                funds purchased and securities sold under agreements to
                repurchase
            
            
            587
            
            
            1,597
            
            
            2,565
            
            
            5,052Other
                short-term borrowings
            
            
            4
            
            
            144
            
            
            38
            
            
            215Subordinated
                notes
            
            
            371
            
            
            371
            
            
            1,105
            
            
            1,101Long-term
                borrowings
            
            
            1,433
            
            
            1,220
            
            
            4,259
            
            
            3,876Total
                interest expense
            
            
            7,799
            
            
            10,983
            
            
            23,881
            
            
            33,150Net
                interest income
            
            
            10,386
            
            
            9,653
            
            
            30,497
            
            
            28,752Provision
                for loan losses
            
            
            7,000
            
            
            500
            
            
            13,600
            
            
            1,150Net
                interest income after provision for loan losses
            
            
            3,386
            
            
            9,153
            
            
            16,897
            
            
            27,602Noninterest
                income:Service
                charges on deposit accounts
            
            
            1,287
            
            
            1,244
            
            
            3,583
            
            
            3,583Trust
                services
            
            
            207
            
            
            195
            
            
            605
            
            
            564Investment
                advisory fees
            
            
            1,883
            
            
            1,968
            
            
            5,781
            
            
            5,970Increase
                in cash value of bank-owned life insurance
            
            
            248
            
            
            226
            
            
            697
            
            
            661Securities
                gains, net
            
            
            66
            
            
            11
            
            
            71
            
            
            2Investment
                securities impairment loss
            
            
            (1,725
            )
            
            -
            
            
            (1,725
            )
            
            -Other
                income
            
            
            605
            
            
            485
            
            
            1,772
            
            
            1,407Total
                noninterest income
            
            
            2,571
            
            
            4,129
            
            
            10,784
            
            
            12,187Noninterest
                expense:Salaries
                and employee benefits
            
            
            3,623
            
            
            3,354
            
            
            10,988
            
            
            10,325Occupancy
            
            
            901
            
            
            879
            
            
            2,700
            
            
            2,710Data
                processing
            
            
            563
            
            
            552
            
            
            1,761
            
            
            1,645Other
                expenses
            
            
            2,368
            
            
            1,431
            
            
            5,832
            
            
            4,051Total
                noninterest expense
            
            
            7,455
            
            
            6,216
            
            
            21,281
            
            
            18,731Income
                (loss) before income taxes
            
            
            (1,498
            )
            
            7,066
            
            
            6,400
            
            
            21,058Income
                taxes (benefits)
            
            
            (1,138
            )
            
            2,119
            
            
            872
            
            
            6,540Net
                income (loss)
            
            $
            (360
            )
            $
            4,947
            
            $
            5,528
            
            $
            14,518Earnings
                (loss) per share, basic
            
            $
            (0.02
            )
            $
            0.28
            
            $
            0.32
            
            $
            0.83Cash
                dividends per share
            
            $
            0.16
            
            $
            0.16
            
            $
            0.48
            
            $
            0.48





See
      accompanying notes to consolidated financial statements.


3





West
      Bancorporation, Inc. and Subsidiaries


Consolidated
      Statements of Stockholders' Equity


(unaudited)





Nine Months Ended
              September 30,(in
                thousands, except per share data)
            
            2008
            
            2007Common
                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
            
            
            87,084
            
            
            80,397Net
                income
            
            
            5,528
            
            
            14,518Dividends
                on common stock; per share amounts 2008 and 2007 - $0.48
            
            
            (8,354
            )
            
            (8,417
            )Shares
                reacquired under the common stock repurchase plan
            
            
            (788
            )
            
            -End
                of period balance
            
            
            83,470
            
            
            86,498Accumulated
                other comprehensive loss:Beginning
                of year balance
            
            
            (478
            )
            
            (1,585
            )Unrealized
                gains (losses) on securities, net of tax
            
            
            (3,131
            )
            
            132End
                of period balance
            
            
            (3,609
            )
            
            (1,453
            )Total
                stockholders' equity
            
            $
            114,861
            
            $
            120,045





West
      Bancorporation, Inc. and Subsidiaries


Consolidated
      Statements of Comprehensive Income


(unaudited)





Nine Months EndedSeptember 30,(in
                thousands)
            
            2008
            
            2007Net
                Income
            
            $
            5,528
            
            $
            14,518Other
                comprehensive income (loss), unrealized gains (losses) on securities,
                net
                of reclassification adjustment, net of tax
            
            
            (3,131
            )
            
            132Comprehensive
                income
            
            $
            2,397
            
            $
            14,650





See
      accompanying notes to consolidated financial statements.


4





West
      Bancorporation, Inc. and Subsidiaries


Consolidated
      Statements of Cash Flows


(unaudited)





Nine Months EndedSeptember 30,(in
                thousands)
            
            2008
            
            2007Cash
                Flows from Operating Activities:Net
                income
            
            $
            5,528
            
            $
            14,518Adjustments
                to reconcile net income to net cash provided by operating
                activities:Provision
                for loan losses
            
            
            13,600
            
            
            1,150Net
                amortization and accretion
            
            
            757
            
            
            1,120Loss
                on disposition of fixed assets
            
            
            23
            
            
            35Net
                gains from sales of securities available for sale
            
            
            (71
            )
            
            (2
            )Investment
                securities impairment loss
            
            
            1,725
            
            
            -Net
                gains from sales of loans held for sale
            
            
            (353
            )
            
            (87
            )Proceeds
                from sales of loans held for sale
            
            
            25,235
            
            
            8,944Originations
                of loans held for sale
            
            
            (23,101
            )
            
            (9,862
            )Increase
                in value of bank-owned life insurance
            
            
            (697
            )
            
            (661
            )Depreciation
            
            
            682
            
            
            691Deferred
                income taxes
            
            
            (2,758
            )
            
            64Change
                in assets and liabilities:Decrease
                (increase) in accrued interest receivable
            
            
            502
            
            
            (791
            )(Decrease)
                increase in accrued expenses and other liabilities
            
            
            (2,846
            )
            
            1,254Net
                cash provided by operating activities
            
            
            18,226
            
            
            16,373Cash
                Flows from Investing Activities:Proceeds
                from sales, calls, and maturities of securities available for
                sale
            
            
            111,954
            
            
            19,092Purchases
                of securities available for sale
            
            
            (71,376
            )
            
            (4,873
            )Acquisition
                of Federal Home Loan Bank stock
            
            
            (5,264
            )
            
            (5,430
            )Proceeds
                from redemption of Federal Home Loan Bank stock
            
            
            3,405
            
            
            2,100Net
                increase in loans
            
            
            (119,930
            )
            
            (39,019
            )Proceeds
                from sales of premises and equipment
            
            
            10
            
            
            29Purchases
                of premises and equipment
            
            
            (375
            )
            
            (689
            )Change
                in other assets
            
            
            1,574
            
            
            (1,235
            )Net
                cash used in investing activities
            
            
            (80,002
            )
            
            (30,025
            )Cash
                Flows from Financing Activities:Net
                change in deposits
            
            
            207,848
            
            
            (67,116
            )Net
                change in federal funds purchased and securities sold under agreements
                to
                repurchase
            
            
            (97,486
            )
            
            21,726Net
                change in other short-term borrowings
            
            
            (1,245
            )
            
            48,745Proceeds
                from long-term borrowings
            
            
            75,000
            
            
            30,000Principal
                payments on long-term borrowings
            
            
            (50,750
            )
            
            (12,150
            )Payment
                for shares reacquired under common stock repurchase plan
            
            
            (788
            )
            
            -Cash
                dividends
            
            
            (8,354
            )
            
            (8,417
            )Net
                cash provided by financing activities
            
            
            124,225
            
            
            12,788Net
                increase (decrease) in cash and cash equivalents
            
            
            62,449
            
            
            (864
            )Cash
                and Cash Equivalents:Beginning
            
            
            49,943
            
            
            35,678End
            
            $
            112,392
            
            $
            34,814Supplemental
                Disclosures of Cash Flow InformationCash
                payments for:Interest
            
            $
            24,351
            
            $
            32,877Income
                taxes
            
            
            3,751
            
            
            6,336





See
      accompanying notes to consolidated financial statements.


5




West
      Bancorporation, Inc.


Notes
      to
      Consolidated Financial Statements


(unaudited)


(in
      thousands, except per share information)





1.
      Basis
      of Presentation





The
      accompanying consolidated statements of income for the three and nine months
      ended September 30, 2008 and 2007, the consolidated statements of stockholders’
equity, comprehensive income, and cash flows for the nine months ended September
      30, 2008 and 2007, and the consolidated balance sheets as of September 30,
      2008
      and December 31, 2007, include the accounts of the Company, West Bank, West
      Bank’s wholly-owned subsidiary, WB Funding Corporation (which owns an interest
      in a partnership), and WB Capital Management Inc. All significant intercompany
      transactions and balances have been eliminated in consolidation. In accordance
      with Financial Accounting Standards Board (FASB) Interpretation No. 46, *Consolidation
      of Variable Interest Entities* , ** a
      subsidiary, West Bancorporation Capital Trust I (the Trust) is not consolidated
      with the Company. The results of the Trust are recorded on the books of the
      Company using the equity method of accounting.





The
      accompanying consolidated financial statements have been prepared by the Company
      pursuant to the rules and regulations of the Securities and Exchange Commission.
      Certain information and footnote disclosures normally included in financial
      statements prepared in accordance with generally accepted accounting principles
      have been condensed or omitted pursuant to such rules and regulations. Although
      management believes that the disclosures are adequate to make the information
      presented not misleading, it is suggested that these interim consolidated
      financial statements be read in conjunction with the Company's most recent
      audited financial statements and notes thereto. In the opinion of management,
      the accompanying consolidated financial statements contain all adjustments
      (consisting of only normal recurring accruals) necessary to present fairly
      the
      financial position as of September 30, 2008, the results of operations for
      the
      three and nine months ended September 30, 2008 and 2007, and the results of
      cash
      flows for the nine months ended September 30, 2008 and 2007.





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





Certain
      items in the financial statements as of September 30, 2007 were reclassified
      to
      be consistent with the classifications used in the September 30, 2008 financial
      statements. The reclassification has no effect on net income or stockholders’
equity.





2.
      Earnings per Common Share





Earnings
      per share represent income available to common shareholders divided by the
      weighted average number of shares outstanding during the period. The Company
      has
      no common equivalent shares that could cause dilution. The weighted average
      number of shares outstanding for the three and nine months ended September
      30,
      2008, was 17,403,882 and 17,405,603, respectively, and the weighted average
      number of shares outstanding for the three and nine months ended September
      30,
      2007 was 17,536,682.





3.
      Commitments





In
      the
      normal course of business, the Company enters into commitments to extend credit
      in the form of 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
      policies as are loans recorded on the balance sheet. For additional information
      on credit extension commitments and the characteristics of these obligations,
      see Note 13 of the Company’s 2007 consolidated financial statements (pages 53-55
      of Appendix to Proxy Statement). The Company’s commitments as of the dates shown
      are approximately as follows:





September 30, 2008
            
            December 31, 2007Commitments
                to extend credit
            
            $
            326,270
            
            $
            330,769Standby
                letters of credit
            
            
            17,193
            
            
            22,682$
            343,463
            
            $
            353,451





6




4.
      Other
      than Temporary Impairment on Securities





In
      September 2008, the Company recognized a $1,725 write-down of an investment
      in a
      senior unsecured note issued by Lehman Brothers Holdings, Inc. resulting in
      an
“other than temporary” impairment. The carrying value of the $2 million note was
      written down to $275.





5.
      Impaired Loans and Allowance for Loan Losses





A
      loan is
      impaired when it is probable West Bank will be unable to collect all contractual
      principal and interest payments due in accordance with the terms of the loan
      agreement. Impaired loans are measured based on the present value of expected
      future cash flows discounted at the loan’s effective interest rate or at the
      fair value of the collateral if the loan is collateral dependent. The amount
      of
      the impairment is included in the allowance for loan losses. The following
      is a
      recap of impaired loans at September 30, 2008 and December 31,
      2007:





September 30, 2008
            
            December 31, 2007Impaired
                loans without an allowance
            
            $
            15,555
            
            $
            5,469Impaired
                loans with an allowance
            
            
            11,883
            
            
            -Total
                impaired loans
            
            $
            27,438
            
            $
            5,469Allowance
                for loan losses related to impaired loans
            
            $
            4,490
            
            $
            -





The
      following table reconciles the balance of non-accrual loans with impaired loans
      carried at fair value as of September 30, 2008:





Non-accrual
                loans
            
            $
            19,317Other
                impaired loans still accruing interest
            
            
            8,121Total
                impaired loans
            
            $
            27,438





Changes
      in the allowance for loan losses were as follows for the three and nine months
      ended September 30, 2008 and 2007:





Three months ended September 30,
            
            Nine months ended September 30,2008
            
            2007
            
            Change
            
            2008
            
            2007
            
            ChangeBalance
                at beginning of period
            
            $
            10,557
            
            $
            8,779
            
            $
            1,778
            
            $
            8,935
            
            $
            8,494
            
            $
            441Charge-offs
            
            
            (1,118
            )
            
            (390
            )
            
            (728
            )
            
            (6,239
            )
            
            (876
            )
            
            (5,363
            )Recoveries
            
            
            45
            
            
            16
            
            
            29
            
            
            188
            
            
            137
            
            
            51Net
                charge-offs
            
            
            (1,073
            )
            
            (374
            )
            
            (699
            )
            
            (6,051
            )
            
            (739
            )
            
            (5,312
            )Provision
                charged to operations
            
            
            7,000
            
            
            500
            
            
            6,500
            
            
            13,600
            
            
            1,150
            
            
            12,450Balance
                at end of period
            
            $
            16,484
            
            $
            8,905
            
            $
            7,579
            
            $
            16,484
            
            $
            8,905
            
            $
            7,579





6.
      Segment Information





An
      operating segment is generally defined as a component of a business for which
      discrete financial information is available and whose operating results are
      regularly reviewed by the chief operating decision-maker. The Company’s primary
      business segments are banking and investment advisory services. The banking
      segment generates revenue through interest and fees on loans, service charges
      on
      deposit accounts, interest on investment securities, and fees for trust
      services. The banking segment includes West Bank, the Company, and related
      elimination entries between the two, as the Company’s operation is similar to
      that of West Bank. The investment advisory segment generates revenue by
      providing investment portfolio management services to individuals, retirement
      plans, corporations, foundations, endowments, and public entities. The
      investment advisory segment consists of WB Capital Management Inc. The “Other”
column represents the elimination of intercompany balances. Selected financial
      information on the Company’s segments is presented below for the three and nine
      months ended September 30, 2008 and 2007.




7





Three months ended September 30,2008
            
            2007Segments
            
            SegmentsInvestment
            
            
            
            
            
            
            
            InvestmentBanking
            
            Advisory
            
            Other
            
            Consolidated
            
            Banking
            
            Advisory
            
            Other
            
            ConsolidatedInterest
                income
            
            $
            18,186
            
            $
            -
            
            $
            (1
            )
            $
            18,185
            
            $
            20,636
            
            $
            -
            
            $
            -
            
            $
            20,636Interest
                expense
            
            
            7,799
            
            
            1
            
            
            (1
            )
            
            7,799
            
            
            10,983
            
            
            -
            
            
            -
            
            
            10,983Net
                interest income
            
            
            10,387
            
            
            (1
            )
            
            -
            
            
            10,386
            
            
            9,653
            
            
            -
            
            
            -
            
            
            9,653Provision
                for loan losses
            
            
            7,000
            
            
            -
            
            
            -
            
            
            7,000
            
            
            500
            
            
            -
            
            
            -
            
            
            500Net
                interest income afterprovision
                for loan losses
            
            
            3,387
            
            
            (1
            )
            
            -
            
            
            3,386
            
            
            9,153
            
            
            -
            
            
            -
            
            
            9,153Noninterest
                income
            
            
            687
            
            
            1,933
            
            
            (49
            )
            
            2,571
            
            
            2,160
            
            
            2,015
            
            
            (46
            )
            
            4,129Noninterest
                expense
            
            
            5,271
            
            
            2,233
            
            
            (49
            )
            
            7,455
            
            
            4,567
            
            
            1,695
            
            
            (46
            )
            
            6,216Income
                (loss) beforeincome
                taxes
            
            
            (1,197
            )
            
            (301
            )
            
            -
            
            
            (1,498
            )
            
            6,746
            
            
            320
            
            
            -
            
            
            7,066Income
                taxes
            
            
            (1,015
            )
            
            (123
            )
            
            -
            
            
            (1,138
            )
            
            1,985
            
            
            134
            
            
            -
            
            
            2,119Net
                income (loss)
            
            $
            (182
            )
            $
            (178
            )
            $
            -
            
            $
            (360
            )
            $
            4,761
            
            $
            186
            
            $
            -
            
            $
            4,947Depreciation
                and amortization
            
            $
            231
            
            $
            177
            
            $
            -
            
            $
            408
            
            $
            224
            
            $
            223
            
            $
            -
            
            $
            447





Nine months ended September 30,2008
            
            2007Segments
            
            SegmentsInvestment
            
            
            
            
            
            
            
            InvestmentBanking
            
            Advisory
            
            Other
            
            Consolidated
            
            Banking
            
            Advisory
            
            Other
            
            ConsolidatedInterest
                income
            
            $
            54,379
            
            $
            -
            
            $
            (1
            )
            $
            54,378
            
            $
            61,902
            
            $
            -
            
            $
            -
            
            $
            61,902Interest
                expense
            
            
            23,881
            
            
            1
            
            
            (1
            )
            
            23,881
            
            
            33,150
            
            
            -
            
            
            -
            
            
            33,150Net
                interest income
            
            
            30,498
            
            
            (1
            )
            
            -
            
            
            30,497
            
            
            28,752
            
            
            -
            
            
            -
            
            
            28,752Provision
                for loan losses
            
            
            13,600
            
            
            -
            
            
            -
            
            
            13,600
            
            
            1,150
            
            
            -
            
            
            -
            
            
            1,150Net
                interest income afterprovision
                for loan losses
            
            
            16,898
            
            
            (1
            )
            
            -
            
            
            16,897
            
            
            27,602
            
            
            -
            
            
            -
            
            
            27,602Noninterest
                income
            
            
            4,999
            
            
            5,929
            
            
            (144
            )
            
            10,784
            
            
            6,201
            
            
            6,140
            
            
            (154
            )
            
            12,187Noninterest
                expense
            
            
            15,669
            
            
            5,756
            
            
            (144
            )
            
            21,281
            
            
            13,396
            
            
            5,489
            
            
            (154
            )
            
            18,731Income
                before income taxes
            
            
            6,228
            
            
            172
            
            
            -
            
            
            6,400
            
            
            20,407
            
            
            651
            
            
            -
            
            
            21,058Income
                taxes
            
            
            796
            
            
            76
            
            
            -
            
            
            872
            
            
            6,270
            
            
            270
            
            
            -
            
            
            6,540Net
                income
            
            $
            5,432
            
            $
            96
            
            $
            -
            
            $
            5,528
            
            $
            14,137
            
            $
            381
            
            $
            -
            
            $
            14,518Depreciation
                and amortization
            
            $
            699
            
            $
            526
            
            $
            -
            
            $
            1,225
            
            $
            645
            
            $
            688
            
            $
            -
            
            $
            1,333Goodwill
            
            $
            13,376
            
            $
            11,554
            
            $
            -
            
            $
            24,930
            
            $
            13,376
            
            $
            11,554
            
            $
            -
            
            $
            24,930Total
                assets
            
            $
            1,450,242
            
            $
            14,125
            
            $
            (622
            )
            $
            1,463,745
            
            $
            1,282,997
            
            $
            14,338
            
            $
            (107
            )
            $
            1,297,228





7.
      Fair
      Value Measurements





Effective
      January 1, 2008, the Company partially adopted Statement of Financial Accounting
      Standard (SFAS) No. 157, *Fair
      Value Measurements,* which
      requires disclosure for those assets and liabilities carried in the balance
      sheet on a fair value basis. The FASB has deferred the effective date of SFAS
      No. 157 until 2009 for nonfinancial assets and liabilities which are recognized
      at fair value on a nonrecurring basis. For the Company, this deferral applies
      to
      other real estate owned, goodwill, and intangible assets.





In
      October 2008 the FASB issued Staff Position (FSP) No. 157-3, *Determining
      the Fair Value of a Financial Asset in a Market that is not
      Active* ,
      which
      amended SFAS No. 157. The FSP clarifies how the fair value of a financial
      instrument is determined when the market for that financial asset is inactive.
      FSP No. 157-3 was adopted effective as of September 30, 2008.





Three
      categories of the Company’s balance sheet contain assets and liabilities that
      are recorded at fair value on a recurring basis. Those categories are: 1)
      securities available for sale, 2) other assets and 3) other liabilities. Within
      other assets and other liabilities, equity indexed certificate of deposit
      derivatives are recorded at fair value.




8





SFAS
      No.
      157 requires that assets and liabilities carried at fair value also be
      classified and disclosed according to the process for determining fair value.
      There are three levels of determining fair value.





Level
      1
      uses quoted market prices in active markets for identical assets or
      liabilities.





Level
      2
      uses observable market based inputs or unobservable inputs that are corroborated
      by market data.





Level
      3
      uses unobservable inputs that are not corroborated by market data.





The
      following table presents the balances of assets and liabilities measured at
      fair
      value on a recurring basis by level as of September 30, 2008:





Quoted Pricesin Active Markets
            
            Significant Other
            
            Significantfor Identical Assets
            
            Observable Inputs
            
            Unobservable InputsDescription
            
            Total
            
            (Level 1)
            
            (Level 2)
            
            (Level 3)Assets:Securities
                available for sale
            
            $
            183,936
            
            $
            -
            
            $
            181,314
            
            $
            2,622Equity
                indexed CD options
            
            
            3,495
            
            
            -
            
            
            -
            
            
            3,495Total
            
            $
            187,431
            
            $
            -
            
            $
            181,314
            
            $
            6,117Liabilities:Equity
                indexed CD options
            
            $
            3,495
            
            $
            -
            
            $
            -
            
            $
            3,495Total
            
            $
            3,495
            
            $
            -
            
            $
            -
            
            $
            3,495





The
      following table presents the changes in securities available for sale with
      significant unobservable inputs (Level 3) for the nine months ended September
      30, 2008:





Securities Availablefor SaleBeginning
                balance
            
            $
            -Transfers
                into level 3
            
            
            4,100Total
                gains or losses:Included
                in earnings
            
            
            -Included
                in other comprehensive income
            
            
            (1,478
            )Ending
                balance
            
            $
            2,622





The
      table
      above includes one pooled trust preferred security which was transferred to
      Level 3 during the three months ended September 30, 2008. Market pricing for
      this security varies widely from one pricing service to another based on a
      lack
      of trading so it was considered to no longer have readily observable market
      data. The fair value as of September 30, 2008, was determined by discounting
      the
      expected cash flows over the life of the security. The discount rate was
      determined by deriving a discount rate as of December 31, 2007, when the markets
      were considered more active for this type of security. To this estimated
      discount rate, additions were made for more illiquid markets and increased
      credit risk.





Certain
      assets are measured at fair value on a nonrecurring basis; that is, they are
      subject to fair value adjustments in certain circumstances (for example, when
      there is evidence of impairment). The following table presents the assets
      carried on the balance sheet by caption and by level with the SFAS No. 157
      valuation hierarchy as of September 30, 2008:




9





Quoted Pricesin Active Markets
            
            Significant Other
            
            Significantfor Identical Assets
            
            Observable Inputs
            
            Unobservable InputsDescription
            
            Total
            
            (Level 1)
            
            (Level 2)
            
            (Level 3)Assets:Loans
            
            $
            22,948
            
            $
            -
            
            $
            -
            
            $
            22,948Total
            
            $
            22,948
            
            $
            -
            
            $
            -
            
            $
            22,948





Loans
      in
      the table above consist of impaired loans held for investment less the portion
      of the allowance for loan losses related to these loans. Impaired loans are
      measured based on the present value of expected future cash flows discounted
      at
      the loan’s effective interest rate or at the fair value of the collateral if the
      loan is collateral dependent. Management uses original or updated appraised
      values and adjusts for trends observed in the market.





8.
      Current Accounting Developments





In
      March
      2008, the FASB issued SFAS No. 161, *Disclosures
      about Derivative Instruments and Hedging Activities.* SFAS
      No.
      161 requires enhanced disclosures about how and why an entity uses derivative
      instruments; how derivative instruments are accounted for under SFAS No. 133
      and
      its related interpretations; and how derivative instruments and related hedged
      items affect an entity’s financial position, results of operations, and cash
      flows. This Statement is effective for the Company beginning on January 1,
      2009.
      Earlier application is permitted, but is not required. The Company does not
      expect the adoption of this Statement to have a material impact on its financial
      position or results of operations as the Company has limited derivative
      instrument activity.





In
      April
      2008, the FASB issued FSP No. FAS 142-3, *Determination
      of the Useful Life of Intangible Assets* . ** This
      FSP
      is an amendment of SFAS No. 142, *Goodwill
      and Other Intangible Assets* . ** FSP
      No.
      FAS 142-3 amends the factors that should be considered in developing renewal
      or
      extension assumptions used to determine the useful life of a recognized
      intangible asset. The objective of the FSP is to improve the consistency between
      the useful life of a recognized intangible asset and the period of expected
      cash
      flows. This FSP is effective for the Company beginning January 1, 2009. The
      Company does not expect the adoption of this Statement will have a material
      impact on its financial position or results of operations.





In
      September 2008, the FASB issued FSP No. FAS 133-1 and Financial Interpretation
      (FIN) No. 45-4, *Disclosures
      about Credit Derivatives and Certain Guarantees* ,
      an
      amendment of SFAS No. 133, *Accounting
      for Derivative Instruments and Hedging Activities* ,
      and FIN
      No. 45, *Guarantor’s
      Accounting and Disclosure Requirements for Guarantees, Including Indirect
      Guarantees of Indebtedness of Others* .
      The
      amendment of SFAS No. 133 will require disclosure of information about credit
      derivatives to enable users of financial statements to assess their potential
      effect on a Company’s financial position, financial performance, and cash flows.
      The amendment of FIN No. 45 will require disclosure of the current status of
      the
      payment/performance risk of a guarantee. This FSP is effective for the Company
      beginning January 1, 2009. The Company does not expect the adoption of this
      Statement will have a material impact on its financial position or results
      of
      operations due to its minimal use of derivative instruments and having no
      guarantees of the indebtedness of other entities.





9.
      Use of
      Estimates in the Preparation of Financial Statements





The
      consolidated financial statements have been prepared in conformity with
      generally accepted accounting principles. In preparing the financial statements,
      management is required 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 for 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 (including
      the determination of the value of impaired loans), fair value of financial
      instruments, and the goodwill impairment assessment.




10





10.
      Critical Accounting Policies





Management
      has identified its most critical accounting policies to be those related to
      fair
      value of available for sale investment securities and the allowance for loan
      losses.





Securities
      available for sale are reported at fair value, with unrealized gains and losses
      reported as a separate component of accumulated other comprehensive income,
      net
      of deferred income taxes. Declines in fair value of individual securities,
      below
      their amortized cost, are evaluated by management to determine whether the
      decline is temporary or “other than temporary.” Declines in fair value of
      available for sale securities below their cost that are deemed “other than
      temporary” are reflected in earnings as impairment losses. In estimating “other
      than temporary” impairment losses, management considers a number of factors
      including (1) the length of time and extent to which the fair value has been
      less than cost, (2) the financial condition and near-term prospects of the
      issuer, and (3) the intent and ability of the Company to retain its investment
      in the issuer for a period of time sufficient to allow for any anticipated
      recovery in fair value.





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 collectability 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.





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 ratios. Certain statements in this report constitute “forward-looking
      statements” within the meaning of the Private Securities Litigation Reform Act
      of 1995, including statements preceded by, followed by or that include the
      words
“believes,” “expects,” “should,” or “anticipates,” or references to estimates or
      similar expressions. Such forward-looking statements are based upon certain
      underlying assumptions, risks and uncertainties. Because of the possibility
      of
      change in the underlying assumptions, actual results could differ materially
      from these forward-looking statements. Risks and uncertainties that may affect
      future results include: interest rate risk; competitive pressures; pricing
      pressures on loans and deposits; changes in credit and other risks posed by
      the
      Company’s loan and investment portfolios, including declines in commercial or
      residential real estate values or changes in the allowance for loan losses
      dictated by new market conditions or regulatory requirements; actions of bank
      and non-bank competitors; changes in local and national economic conditions;
      changes in regulatory requirements, including actions of the Securities and
      Exchange Commission and/or the Federal Reserve Board; 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.




11





THREE
      AND
      NINE MONTHS ENDED SEPTEMBER 30, 2008


(dollars
      in thousands, except per share amounts)





OVERVIEW





The
      following discussion describes the consolidated operations of the Company,
      including its wholly-owned subsidiaries West Bank and WB Capital Management
      Inc.
      (“WB Capital”) and West Bank’s wholly-owned subsidiary, WB Funding Corporation.
      Consolidated results of operations for the three and nine months ended September
      30, 2008, are compared to the results for the same periods in 2007, and the
      consolidated financial condition of the Company at September 30, 2008, is
      compared to the December 31, 2007, position.





The
      Company reported a net loss of $360 for the three months ended September 30,
      2008, compared to net income of $4,947 for the same period in 2007. Earnings
      per
      share were -$0.02 and $0.28, respectively, for the same periods. The Company’s
      annualized return on average equity and return on average assets for the three
      months ended September 30, 2008 were -1.22 percent and -0.10 percent,
      respectively, compared to 16.76 percent and 1.51 percent, respectively, for
      the
      three months ended September 30, 2007.





The
      net
      loss for the three months ended September 30, 2008, was caused in substantial
      part by a $7,000 provision for loan losses, recognition of a $1,725 investment
      security impairment loss on a Lehman Brothers Holdings, Inc. unsecured note,
      and
      the decision at WB Capital to purchase a defaulted Lehman Brothers Holdings,
      Inc. bond from the WB Capital Liquid Assets Fund, a money market mutual fund,
      to
      prevent the fund from “breaking the buck,” which resulted in recognizing a loss
      of $443 related to this item. The provision for loan losses was $6,500 higher
      than in the three months ended September 30, 2007, and included a provision
      of
      $4,000 against two loans to a customer that had been the victim of a substantial
      fraud and conversion of all of its assets. That remains the best estimate of
      West Bank’s loss at this time, but the final loss may be different depending on
      the ultimate proceeds from liquidation of assets turned over by the borrower
      and
      guarantor. Offsetting these negative items were a $733 increase in net interest
      income and a $167 increase in noninterest income, exclusive of the impairment
      loss, compared to the three months ended September 30, 2007. Without the three
      unusual items noted above, net income for the quarter would have been
      approximately $3,440.





For
      the
      first nine months of 2008, net income declined to $5,528 compared to $14,518
      for
      the first nine months of 2007. Earnings per share were $0.32 and $0.83 per
      share, respectively. The annualized return on average assets was 0.55 percent
      for the first nine months of 2008 compared to 1.48 percent for the first nine
      months of 2007. The annualized return on average equity was 6.18 percent for
      the
      first nine months of 2008 compared to 16.81 percent for the first nine months
      of
      2007.





The
      decline in year-to-date net income compared to prior year was primarily due
      to
      the $12,450 increase in provision for loan losses and the previously mentioned
      $1,725 investment security impairment. Partially offsetting these items was
      a
      $1,745 increase in net interest income as the net interest margin improved
      by 14
      basis points to 3.44 percent.





Year-to-date
      noninterest income, excluding the impairment loss, was slightly higher than
      last
      year as increases in debit card usage fees and gain on sale of residential
      mortgages into the secondary market exceeded a decline in revenue from
      investment advisory fees. Realized gains on the sale of investment securities
      totaled $71 in the first nine months of 2008 compared to realized gains of
      $2
      during the first nine months of 2007.





Year-to-date
      noninterest expense for the nine months ended September 30, 2008, was $2,550
      higher than the prior year. The increase included higher salaries and benefits,
      the impact of writing down the value of a foreclosed real estate property
      compared to gains on the sale of foreclosed real estate in the prior year,
      increases in professional fees and marketing expenses, the re-establishment
      of
      the FDIC assessment, and the previously mentioned loss recognized at WB
      Capital.





WB
      Capital’s year-to-date net income was $96 for the nine months ended September
      30, 2008, compared to $381 for the same period in 2007. Revenues were lower
      than
      a year ago because of reduced asset under management levels. Operating expenses
      were $267 higher during the first nine months of 2008 compared to the same
      2007
      period due to the support provided to the Liquid Assets Fund described
      above.





The
      Company and its subsidiaries do not own any Federal Home Loan Mortgage
      Corporation or Federal National Mortgage Association preferred
      stock.




12




RESULTS
      OF OPERATIONS





The
      following table shows selected financial results and measures for the three
      and
      nine months ended September 30, 2008, compared with the same periods in 2007:





Three Months Ended September 30,
            
            Nine Months Ended September 30,2008
            
            2007
            
            Change
            
            Change-%
            
            2008
            
            2007
            
            Change
            
            Change-%Net
                income (loss)
            
            $
            (360
            )
            $
            4,947
            
            $
            (5,307
            )
            
            -107.3
            %
            $
            5,528
            
            $
            14,518
            
            $
            (8,990
            )
            
            -61.9
            %Average
                assets
            
            
            1,388,016
            
            
            1,295,973
            
            
            92,043
            
            
            7.1
            %
            
            1,337,978
            
            
            1,308,022
            
            
            29,956
            
            
            2.3
            %Average
                stockholders'equity
            
            
            117,727
            
            
            117,111
            
            
            616
            
            
            0.5
            %
            
            119,532
            
            
            115,451
            
            
            4,081
            
            
            3.5
            %Return
                on assets
            
            
            -0.10
            %
            
            1.51
            %
            
            -1.61
            %
            
            
            
            
            0.55
            %
            
            1.48
            %
            
            -0.93
            %Return
                on equity
            
            
            -1.22
            %
            
            16.76
            %
            
            -17.98
            %
            
            
            
            
            6.18
            %
            
            16.81
            %
            
            -10.63
            %Efficiency
                ratio
            
            
            49.18
            %
            
            43.92
            %
            
            5.26
            %
            
            
            
            
            47.90
            %
            
            44.48
            %
            
            3.42
            %Dividend
                payout ratio
            
            
            NM
            
            
            57.07
            %
            
            NM
            
            
            
            
            
            148.82
            %
            
            57.98
            %
            
            90.84
            %Equity
                to assets ratio
            
            
            8.48
            %
            
            9.04
            %
            
            -0.56
            %
            
            
            
            
            8.93
            %
            
            8.83
            %
            
            0.10
            %NM
                -
                Not meaningful





Definitions
      of ratios:





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


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


Efficiency
      ratio – noninterest expense divided by noninterest income (excluding securities
      gains) plus taxable equivalent net interest income.


Dividend
      payout ratio – dividends paid divided by net income.


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





Net
      Interest Income





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




13




Data
      for
      the three months ended September 30:





Average
                Balance
            
            Interest
                Income/Expense
            
            Yield/Rate2008
            
            2007
            
            Change
            
            Change-%
            
            2008
            
            2007
            
            Change
            
            Change-%
            
            2008
            
            2007
            
            ChangeInterest-earning
                assets:Loans:Commercial
            
            $
            416,689
            
            $
            355,937
            
            $
            60,752
            
            
            17.07
            %
            $
            5,841
            
            $
            7,141
            
            $
            (1,300
            )
            
            -18.20
            %
            
            5.58
            %
            
            7.96
            %
            
            -2.38
            %Real
                estate
            
            
            663,213
            
            
            570,807
            
            
            92,406
            
            
            16.19
            %
            
            10,046
            
            
            10,430
            
            
            (384
            )
            
            -3.68
            %
            
            6.03
            %
            
            7.25
            %
            
            -1.22
            %Consumer
                and other
            
            
            14,391
            
            
            13,864
            
            
            527
            
            
            3.80
            %
            
            217
            
            
            243
            
            
            (26
            )
            
            -10.70
            %
            
            6.00
            %
            
            6.95
            %
            
            -0.95
            %Total
                loans
            
            
            1,094,293
            
            
            940,608
            
            
            153,685
            
            
            16.34
            %
            
            16,104
            
            
            17,814
            
            
            (1,710
            )
            
            -9.60
            %
            
            5.85
            %
            
            7.51
            %
            
            -1.66
            %Investment
                securities:Taxable
            
            
            91,712
            
            
            165,673
            
            
            (73,961
            )
            
            -44.64
            %
            
            1,174
            
            
            1,955
            
            
            (781
            )
            
            -39.95
            %
            
            5.12
            %
            
            4.72
            %
            
            0.40
            %Tax-exempt
            
            
            96,733
            
            
            84,987
            
            
            11,746
            
            
            13.82
            %
            
            1,415
            
            
            1,129
            
            
            286
            
            
            25.33
            %
            
            5.85
            %
            
            5.31
            %
            
            0.54
            %Total
                investment securities
            
            
            188,445
            
            
            250,660
            
            
            (62,215
            )
            
            -24.82
            %
            
            2,589
            
            
            3,084
            
            
            (495
            )
            
            -16.05
            %
            
            5.50
            %
            
            4.92
            %
            
            0.58
            %Federal
                funds sold and short-term investments
            
            
            7,154
            
            
            9,436
            
            
            (2,282
            )
            
            -24.18
            %
            
            36
            
            
            122
            
            
            (86
            )
            
            -70.49
            %
            
            2.00
            %
            
            5.16
            %
            
            -3.16
            %Total
                interest-earning assets
            
            $
            1,289,892
            
            $
            1,200,704
            
            $
            89,188
            
            
            7.43
            %
            
            18,729
            
            
            21,020
            
            
            (2,291
            )
            
            -10.90
            %
            
            5.78
            %
            
            6.95
            %
            
            -1.17
            %Interest-bearing
                liabilities:Deposits:Checking
                with interest, savings and money markets
            
            $
            325,101
            
            $
            307,868
            
            $
            17,233
            
            
            5.60
            %
            
            1,231
            
            
            2,345
            
            
            (1,114
            )
            
            -47.51
            %
            
            1.51
            %
            
            3.02
            %
            
            -1.51
            %Time
                deposits
            
            
            476,489
            
            
            413,175
            
            
            63,314
            
            
            15.32
            %
            
            4,173
            
            
            5,306
            
            
            (1,133
            )
            
            -21.35
            %
            
            3.48
            %
            
            5.10
            %
            
            -1.62
            %Total
                deposits
            
            
            801,590
            
            
            721,043
            
            
            80,547
            
            
            11.17
            %
            
            5,404
            
            
            7,651
            
            
            (2,247
            )
            
            -29.37
            %
            
            2.68
            %
            
            4.21
            %
            
            -1.53
            %Other
                borrowed funds
            
            
            272,084
            
            
            263,355
            
            
            8,729
            
            
            3.31
            %
            
            2,395
            
            
            3,332
            
            
            (937
            )
            
            -28.12
            %
            
            3.50
            %
            
            5.02
            %
            
            -1.52
            %Total
                interest-bearing liabilities
            
            $
            1,073,674
            
            $
            984,398
            
            $
            89,276
            
            
            9.07
            %
            
            7,799
            
            
            10,983
            
            
            (3,184
            )
            
            -28.99
            %
            
            2.89
            %
            
            4.43
            %
            
            -1.54
            %Tax-equivalent
                net interest income
            
            
            
            
            
            
            
            
            
            
            
            
            
            $
            10,930
            
            $
            10,037
            
            $
            893
            
            
            8.90
            %Net
                interest spread
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            2.89
            %
            
            2.52
            %
            
            0.37
            %Net
                interest margin
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            3.37
            %
            
            3.32
            %
            
            0.05
            %





Data
      for
      the nine months ended September 30:





Average
                Balance
            
            Interest
                Income/Expense
            
            Yield/Rate2008
            
            2007
            
            Change
            
            Change-%
            
            2008
            
            2007
            
            Change
            
            Change-%
            
            2008
            
            2007
            
            ChangeInterest-earning
                assets:Loans:Commercial
            
            $
            381,777
            
            $
            347,645
            
            $
            34,132
            
            
            9.82
            %
            $
            16,889
            
            $
            20,741
            
            $
            (3,852
            )
            
            -18.57
            %
            
            5.91
            %
            
            7.98
            %
            
            -2.07
            %Real
                estate
            
            
            643,849
            
            
            576,368
            
            
            67,481
            
            
            11.71
            %
            
            30,458
            
            
            31,503
            
            
            (1,045
            )
            
            -3.32
            %
            
            6.32
            %
            
            7.31
            %
            
            -0.99
            %Consumer
                and other
            
            
            14,206
            
            
            14,283
            
            
            (77
            )
            
            -0.54
            %
            
            672
            
            
            779
            
            
            (107
            )
            
            -13.74
            %
            
            6.32
            %
            
            7.29
            %
            
            -0.97
            %Total
                loans
            
            
            1,039,832
            
            
            938,296
            
            
            101,536
            
            
            10.82
            %
            
            48,019
            
            
            53,023
            
            
            (5,004
            )
            
            -9.44
            %
            
            6.17
            %
            
            7.56
            %
            
            -1.39
            %Investment
                securities:Taxable
            
            
            98,430
            
            
            168,505
            
            
            (70,075
            )
            
            -41.59
            %
            
            3,720
            
            
            5,911
            
            
            (2,191
            )
            
            -37.07
            %
            
            5.04
            %
            
            4.68
            %
            
            0.36
            %Tax-exempt
            
            
            90,136
            
            
            87,716
            
            
            2,420
            
            
            2.76
            %
            
            3,857
            
            
            3,460
            
            
            397
            
            
            11.47
            %
            
            5.71
            %
            
            5.26
            %
            
            0.45
            %Total
                investment securities
            
            
            188,566
            
            
            256,221
            
            
            (67,655
            )
            
            -26.40
            %
            
            7,577
            
            
            9,371
            
            
            (1,794
            )
            
            -19.14
            %
            
            5.36
            %
            
            4.88
            %
            
            0.48
            %Federal
                funds sold and short-term investments
            
            
            14,626
            
            
            17,394
            
            
            (2,768
            )
            
            -15.91
            %
            
            271
            
            
            682
            
            
            (411
            )
            
            -60.26
            %
            
            2.48
            %
            
            5.24
            %
            
            -2.76
            %Total
                interest-earning assets
            
            $
            1,243,024
            
            $
            1,211,911
            
            $
            31,113
            
            
            2.57
            %
            
            55,867
            
            
            63,076
            
            
            (7,209
            )
            
            -11.43
            %
            
            6.00
            %
            
            6.96
            %
            
            -0.96
            %Interest-bearing
                liabilities:Deposits:Checking
                with interest, savings and money markets
            
            $
            325,557
            
            $
            301,168
            
            $
            24,389
            
            
            8.10
            %
            
            4,173
            
            
            6,678
            
            
            (2,505
            )
            
            -37.51
            %
            
            1.71
            %
            
            2.96
            %
            
            -1.25
            %Time
                deposits
            
            
            402,979
            
            
            426,217
            
            
            (23,238
            )
            
            -5.45
            %
            
            11,741
            
            
            16,228
            
            
            (4,487
            )
            
            -27.65
            %
            
            3.89
            %
            
            5.09
            %
            
            -1.20
            %Total
                deposits
            
            
            728,536
            
            
            727,385
            
            
            1,151
            
            
            0.16
            %
            
            15,914
            
            
            22,906
            
            
            (6,992
            )
            
            -30.52
            %
            
            2.92
            %
            
            4.21
            %
            
            -1.29
            %Other
                borrowed funds
            
            
            295,912
            
            
            270,226
            
            
            25,686
            
            
            9.51
            %
            
            7,967
            
            
            10,244
            
            
            (2,277
            )
            
            -22.23
            %
            
            3.60
            %
            
            5.07
            %
            
            -1.47
            %Total
                interest-bearing liabilities
            
            $
            1,024,448
            
            $
            997,611
            
            $
            26,837
            
            
            2.69
            %
            
            23,881
            
            
            33,150
            
            
            (9,269
            )
            
            -27.96
            %
            
            3.11
            %
            
            4.44
            %
            
            -1.33
            %Tax-equivalent
                net interest income
            
            
            
            
            
            
            
            
            
            
            
            
            
            $
            31,986
            
            $
            29,926
            
            $
            2,060
            
            
            6.88
            %Net
                interest spread
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            2.89
            %
            
            2.52
            %
            
            0.37
            %Net
                interest margin
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            3.44
            %
            
            3.30
            %
            
            0.14
            %




14





Fluctuations
      in net interest income can result from the combination of changes in the
      balances of asset and liability categories and changes in interest rates. Net
      interest margin is a measure of the net return on interest-earning assets and
      is
      computed by dividing annualized tax-equivalent net interest income by the
      average of total interest-earning assets for the period. The net interest margin
      for the third quarter of 2008 was 3.37 percent, a 5 basis point increase
      compared to the same quarter last year and a 19 basis point decline from the
      second quarter of 2008.





The
      Company’s tax-equivalent net interest income for the nine months ended September
      30, 2008, increased $2,060 compared to the nine months ended September 30,
      2007.
      The net interest margin for the first nine months of 2008 increased to 3.44
      percent compared to 3.30 percent for the same period in 2007. The net interest
      margin is expected to decline somewhat for the remainder of 2008 as the result
      of the Federal Reserve’s one-half percent cut in the targeted Federal funds rate
      on October 8, 2008. The West Bank prime rate of interest declined by the same
      amount.





Tax-equivalent
      interest income and fees on loans declined $5,004 in the first nine months
      of
      2008 compared to the same period in 2007, as the combination of lower rates,
      reversals of previously accrued interest on loans charged off, and a higher
      volume of non-accrual loans exceeded the impact of the $101.5 million increase
      in the average volume of outstanding loans. The average yield on loans declined
      to 6.17 percent for the first nine months of 2008, compared to 7.56 percent
      for
      the same period in 2007. The yield on the Company’s loan portfolio is affected
      by the mix of the portfolio, the effects of competition, the interest rate
      environment, the amount of non-accrual loans, and reversals of previously
      accrued interest on charged-off loans. The interest rate environment can
      influence the volume of new loan originations and the mix of variable rate
      versus fixed rate loans. Loan pricing in the Company’s market areas remains very
      competitive.





Through
      September 30, 2008, the average balance of investment securities was $67.7
      million lower than in the first nine months of 2007, while the yield increased
      48 basis points. Investment securities totaling approximately $112 million
      were
      sold, called, or matured in the first nine months of 2008 and approximately
      $71
      million of investment securities were purchased during the same
      period.





The
      average rate paid on deposits for the first nine months of 2008 declined to
      2.92
      percent from 4.21 percent for the same period last year. This decline is
      primarily the result of a significant decline in market interest rates on
      interest-bearing checking, money market savings, and certificates of deposit.
      The average balance of time deposits declined in the first nine months of 2008
      compared to the same time period in 2007, as West Bank bid less aggressively
      on
      public unit funds than in the prior year. By September 30, 2008, however, the
      amount of brokered time deposits had increased significantly, and is expected
      to
      stay higher as more customers are participating in the CDARS program to ensure
      the safety of their deposits. CDARS is a program that coordinates a network
      of
      banks to spread deposits exceeding the FDIC insurance coverage limits out to
      numerous institutions in order to provide insurance coverage for all
      participating deposits.





The
      average rate paid on other borrowings declined by 147 basis points compared
      to
      the first nine months of 2007. The average balance of borrowings for the first
      nine months of 2008 was $25.7 million higher than a year ago. The average rate
      paid on overnight borrowings declined 240 basis points while the average balance
      declined $3.1 million. Average long-term borrowings increased $32.7 million,
      while the rates paid on borrowings declined 74 basis points compared to
      2007.


15





Provision
      for Loan Losses and the Related Allowance for Loan Losses





The
      following table sets forth the activity in the allowance for loan losses for
      the
      three and nine months ended September 30, 2008 and 2007, as well as common
      ratios related to the allowance for loan losses.





Three
                Months Ended September 30,
            
            Nine
                Months Ended September 30,2008
            
            2007
            
            Change
            
            2008
            
            2007
            
            ChangeBalance
                at beginning of period
            
            $
            10,557
            
            $
            8,779
            
            $
            1,778
            
            $
            8,935
            
            $
            8,494
            
            $
            441Charge-offs
            
            
            (1,118
            )
            
            (390
            )
            
            (728
            )
            
            (6,239
            )
            
            (876
            )
            
            (5,363
            )Recoveries
            
            
            45
            
            
            16
            
            
            29
            
            
            188
            
            
            137
            
            
            51Net
                charge-offs
            
            
            (1,073
            )
            
            (374
            )
            
            (699
            )
            
            (6,051
            )
            
            (739
            )
            
            (5,312
            )Provision
                charged to operations
            
            
            7,000
            
            
            500
            
            
            6,500
            
            
            13,600
            
            
            1,150
            
            
            12,450Balance
                at end of period
            
            $
            16,484
            
            $
            8,905
            
            $
            7,579
            
            $
            16,484
            
            $
            8,905
            
            $
            7,579Average
                loans outstanding
            
            $
            1,094,293
            
            $
            940,608
            
            
            
            
            $
            1,039,832
            
            $
            938,296Ratio
                of net charge-offs during the period to average loans
                outstanding
            
            
            0.10
            %
            
            0.04
            %
            
            
            
            
            0.58
            %
            
            0.08
            %Ratio
                of allowance for loan losses to average loans outstanding
            
            
            1.51
            %
            
            0.95
            %
            
            
            
            
            1.59
            %
            
            0.95
            %





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
      provision for loan losses has increased significantly in the three and nine
      months ended September 30, 2008 compared to the same time periods last year.
      During the third quarter of 2008, a customer informed West Bank that one of
      his
      companies had been the victim of a substantial fraud and conversion of all
      of
      its assets. West Bank has two loans to the company with balances totaling
      approximately $11.4 million, which are secured by accounts receivable and
      inventory and personally guaranteed by the owner. The accounts receivable and
      inventory have been deemed worthless. The guarantor continues to indicate
      willingness to turn over personal assets to satisfy part of the corporate loans.
      Management has estimated the liquidation value of the additional assets provided
      to West Bank will result in an impairment of approximately $4.0 million. The
      provision for loan losses for the third quarter included this amount. The
      remaining $3.0 million of provision for the three months ended September 30,
      2008, was determined after evaluating all watch list loans, applying higher
      than
      historical net charge-off percentages to the portfolio, and other considerations
      based on the weakening economy.





Earlier
      in 2008, Iowa’s largest homebuilder and developer suspended business. As a
      result of the developer’s decision to cease operations, West Bank increased the
      allowance for loan losses by $5 million as of March 31, 2008. West Bank did
      not
      have any loans directly to the developer. However, West Bank had approximately
      $22 million in loans to closely related entities and individuals. Approximately
      $4 million of the loans were unsecured and were charged off during the second
      quarter. Collection of these loans is being pursued through legal actions,
      although substantial recovery is doubtful. Approximately $18 million of the
      loans were secured by first real estate mortgages, limited guarantees from
      parties related to the developer, and limited guarantees from parties not
      related to the developer.





Approximately
      $6.6 million of these loans were foreclosed upon and transferred to other real
      estate owned during the third quarter and approximately $2.5 million of this
      amount has been sold as of September 30, 2008. Additional charge-offs totaling
      $472 were taken during the three months ended September 30, 2008, when these
      loans were transferred to other real estate owned. As of September 30, 2008,
      approximately $8.1 million of loans related to this developer remain in the
      loan
      portfolio.


16





Net
      charge-offs during the first nine months of 2008 were $5,312 higher than in
      the
      same period in 2007. The majority of the year-to-date charge-offs were related
      to the developer discussed above and to two other construction companies. The
      ratio of net charge-offs to average loans for the nine months ended September
      30, 2008, was 0.58 percent compared to 0.08 percent for the nine months ended
      September 30, 2007. Significant efforts continue to maximize
      recoveries.





The
      allowance for loan losses represented 84.5 percent of non-accrual loans and
      loans past due more than 90 days and still accruing interest at September 30,
      2008, compared to 152.0 percent at December 31, 2007. The ratio has declined
      due
      to the increase in non-accrual loans.





The
      adequacy of the allowance for loan losses is evaluated quarterly by management
      and reviewed by West 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.





While
      management uses available information to recognize potential losses on loans,
      further reduction in the carrying amounts of loans may be necessary based on
      changes in circumstances or later acquired information. Furthermore, changes
      in
      future economic activity are always uncertain. Identifiable sectors within
      the
      general economy are subject to additional volatility, which at any time may
      have
      a substantial impact on the loan portfolio. 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.





Noninterest
      Income





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





Three
                Months Ended September 30,2008
            
            
            2007
            
            
            Change
            
            
            Change-%Noninterest
                income:Service
                charges on deposit accounts
            
            $
            1,287
            
            $
            1,244
            
            $
            43
            
            
            3.5
            %Trust
                services
            
            
            207
            
            
            195
            
            
            12
            
            
            6.2
            %Investment
                advisory fees
            
            
            1,883
            
            
            1,968
            
            
            (85
            )
            
            -4.3
            %Increase
                in cash value of bank-owned life insurance
            
            
            248
            
            
            226
            
            
            22
            
            
            9.7
            %Securities
                gains (losses), net
            
            
            66
            
            
            11
            
            
            55
            
            
            500.0
            %Investment
                securities impairment loss
            
            
            (1,725
            )
            
            -
            
            
            (1,725
            )
            
            N/AOther:Debit
                card usage fees
            
            
            235
            
            
            169
            
            
            66
            
            
            39.1
            %VISA/Mastercard
                income
            
            
            47
            
            
            45
            
            
            2
            
            
            4.4
            %Gain
                on sale of residential mortgages
            
            
            133
            
            
            49
            
            
            84
            
            
            171.4
            %All
                other
            
            
            190
            
            
            222
            
            
            (32
            )
            
            -14.4
            %Total
                other
            
            
            605
            
            
            485
            
            
            120
            
            
            24.7
            %Total
                noninterest income
            
            $
            2,571
            
            $
            4,129
            
            $
            (1,558
            )
            
            -37.7
            %


17





Nine
                Months Ended September 30,2008
            
            
            2007
            
            
            Change
            
            
            Change-%Noninterest
                income:Service
                charges on deposit accounts
            
            $
            3,583
            
            $
            3,583
            
            $
            -
            
            
            0.0
            %Trust
                services
            
            
            605
            
            
            564
            
            
            41
            
            
            7.3
            %Investment
                advisory fees
            
            
            5,781
            
            
            5,970
            
            
            (189
            )
            
            -3.2
            %Increase
                in cash value of bank-owned life insurance
            
            
            697
            
            
            661
            
            
            36
            
            
            5.4
            %Securities
                gains (losses), net
            
            
            71
            
            
            2
            
            
            69
            
            
            3450.0
            %Investment
                securities impairment loss
            
            
            (1,725
            )
            
            -
            
            
            (1,725
            )
            
            N/AOther:Debit
                card usage fees
            
            
            647
            
            
            491
            
            
            156
            
            
            31.8
            %VISA/Mastercard
                income
            
            
            141
            
            
            152
            
            
            (11
            )
            
            -7.2
            %Gain
                on sale of residential mortgages
            
            
            353
            
            
            87
            
            
            266
            
            
            305.7
            %All
                other
            
            
            631
            
            
            677
            
            
            (46
            )
            
            -6.8
            %Total
                other
            
            
            1,772
            
            
            1,407
            
            
            365
            
            
            25.9
            %Total
                noninterest income
            
            $
            10,784
            
            $
            12,187
            
            $
            (1,403
            )
            
            -11.5
            %





Year-to-date
      service charges on deposit accounts held steady compared to the first nine
      months of 2007 as an increase in commercial fee income was offset by a decline
      in return check charges. Lower market interest rates resulted in a lower
      earnings credit on commercial checking accounts, which translated to a $165
      year-to-date increase in commercial service charge revenue. Return check charges
      have declined $114 from 2007 to 2008 as some customers presented fewer checks
      against non-sufficient funds.





Trust
      fees have increased compared to the prior year due to new business and
      additional assets added to existing accounts.





Investment
      advisory fees are fees earned by WB Capital. The decline in 2008 compared to
      2007 was the result of lower fees from the WB Capital mutual funds due to lower
      asset levels and miscellaneous fee supplements. Partially offsetting this
      decline was an 18.0 percent or $162 increase in public funds revenue due to
      increased asset levels.





In
      September 2008, West Bank recorded a $1,725 impairment charge for an investment
      in an unsecured note of Lehman Brothers Holdings, Inc. The bond was written
      down
      to 13.75 cents per dollar of the face value. Interest of $37 was reversed from
      interest income in September and no further interest accruals will be
      recorded.





Debit
      card usage fees increased because West Bank offered a new product in April
      2008
      which encourages the use of electronic payments. This source of revenue is
      expected to improve due to the new product and the convenience of this payment
      method. Year-to-date VISA/MasterCard income declined as a result of lower
      transaction volumes in the first nine months of 2008 compared to the same time
      period in 2007, however, income was up slightly in the three months ended
      September 30, 2008, compared to 2007.





The
      volume of originations of residential mortgages sold into the secondary market
      has increased significantly compared to 2007. The growth of this line of
      business is expected to continue as the result of hiring two additional loan
      originators in 2008. Despite the downturn in the housing market, consumers
      continue to refinance existing mortgages and are selectively purchasing real
      estate while locking in relatively low long-term rates.





The
      all
      other income category declined for the three and nine months ended September
      30,
      2008, due to lower income related to West Bank’s official checks. All other
      income for the prior year also included gains on disposals of fixed
      assets.


18





Noninterest
      Expense





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





Three
                Months Ended September 30,2008
            
            2007
            
            Change
            
            Change-%Noninterest
                expense:Salaries
                and employee benefits
            
            $
            3,623
            
            $
            3,354
            
            $
            269
            
            
            8.0
            %Occupancy
            
            
            901
            
            
            879
            
            
            22
            
            
            2.5
            %Data
                processing
            
            
            563
            
            
            552
            
            
            11
            
            
            2.0
            %Other:Training
            
            
            66
            
            
            31
            
            
            35
            
            
            112.9
            %Marketing
            
            
            151
            
            
            86
            
            
            65
            
            
            75.6
            %Business
                development
            
            
            126
            
            
            77
            
            
            49
            
            
            63.6
            %Professional
                fees
            
            
            250
            
            
            169
            
            
            81
            
            
            47.9
            %Director
                fees
            
            
            64
            
            
            69
            
            
            (5
            )
            
            -7.2
            %FDIC
                expense
            
            
            209
            
            
            26
            
            
            183
            
            
            703.8
            %Other
                real estate owned expense
            
            
            (2
            )
            
            (22
            )
            
            20
            
            
            90.9
            %Intangible
                amortization
            
            
            183
            
            
            214
            
            
            (31
            )
            
            -14.5
            %Miscellaneous
                losses
            
            
            459
            
            
            42
            
            
            417
            
            
            992.9
            %All
                other
            
            
            862
            
            
            739
            
            
            123
            
            
            16.6
            %Total
                other
            
            
            2,368
            
            
            1,431
            
            
            937
            
            
            65.5
            %Total
                noninterest expense
            
            $
            7,455
            
            $
            6,216
            
            $
            1,239
            
            
            19.9
            %




Nine
                Months Ended September 30,2008
            
            2007
            
            Change
            
            Change-%Noninterest
                expense:Salaries
                and employee benefits
            
            $
            10,988
            
            $
            10,325
            
            $
            663
            
            
            6.4
            %Occupancy
            
            
            2,700
            
            
            2,710
            
            
            (10
            )
            
            -0.4
            %Data
                processing
            
            
            1,761
            
            
            1,645
            
            
            116
            
            
            7.1
            %Other:Training
            
            
            176
            
            
            77
            
            
            99
            
            
            128.6
            %Marketing
            
            
            570
            
            
            344
            
            
            226
            
            
            65.7
            %Business
                development
            
            
            337
            
            
            275
            
            
            62
            
            
            22.5
            %Professional
                fees
            
            
            788
            
            
            526
            
            
            262
            
            
            49.8
            %Director
                fees
            
            
            213
            
            
            188
            
            
            25
            
            
            13.3
            %FDIC
                expense
            
            
            394
            
            
            84
            
            
            310
            
            
            369.0
            %Other
                real estate owned expense
            
            
            89
            
            
            (266
            )
            
            355
            
            
            133.5
            %Intangible
                amortization
            
            
            543
            
            
            642
            
            
            (99
            )
            
            -15.4
            %Miscellaneous
                losses
            
            
            466
            
            
            59
            
            
            407
            
            
            689.8
            %All
                other
            
            
            2,256
            
            
            2,122
            
            
            134
            
            
            6.3
            %Total
                other
            
            
            5,832
            
            
            4,051
            
            
            1,781
            
            
            44.0
            %Total
                noninterest expense
            
            $
            21,281
            
            $
            18,731
            
            $
            2,550
            
            
            13.6
            %





The
      increase in year-to-date salaries and benefits resulted from hiring 14 new
      employees since June 30, 2007, 11 of who are in business development roles,
      along with annual merit increases.





Occupancy
      expenses have held steady in the nine months ended September 30, 2008, due
      to
      closing one lower traffic office in the Des Moines metropolitan area in the
      second quarter of 2007 and lower equipment depreciation. West Bank also
      discontinued renting space at a mall for three ATM’s in the first quarter of
      2008. The Company continues to market excess space available in the facility
      in
      which WB Capital is located in West Des Moines. A portion of the space has
      been
      leased and rental payments began in the second quarter of 2008. West Bank has
      entered into a lease for a new office in Waukee, with groundbreaking occurring
      in July 2008 and an expected opening in February 2009.


19





Data
      processing expense has increased because of costs related to higher volumes
      of
      pin and signature-based debit/ATM card transactions and higher volumes of
      transactions and accounts on West Bank’s various deposit and loan application
      systems. Data processing expense is expected to decline in the fourth quarter
      and in 2009 due to pricing concessions received for agreeing to a five-year
      extension with West Bank’s data processing provider.





Training
      expense has increased as the result of beginning an extensive sales training
      program for consumer branch managers, commercial bankers, and the investment
      advisory sales force. Marketing and business development expenses are up as
      a
      result of a retail sales campaign for a new product offering and more aggressive
      sales efforts overall.





Professional
      fees increased due to higher legal fees, primarily associated with loan
      collection efforts, and higher external audit and tax compliance related fees.
      Year-to-date director fees increased in 2008 as the result of an April 2007
      increase in quarterly retainer and meeting fees.





FDIC
      expense increased as a result of the re-establishment of the FDIC assessment.
      West Bank’s share of a one-time assessment credit was almost fully utilized by
      March 31, 2008. The rate assessed to each bank is based upon risk factors
      including past due and non-performing loans, net loan charge-offs, and net
      income before taxes. As of September 30, 2008, West Bank was being assessed
      at a
      rate close to the current maximum rate of seven basis points. In early October
      2008, the FDIC proposed a premium increase for 2009 of an additional seven
      basis
      points along with a series of additional risk-based adjustments that would
      take
      place in the second quarter of 2009. Preliminary calculations show West Bank’s
      2009 expense will at least double compared to the current year, as the first
      quarter 2008 included the remainder of the one-time assessment
      credit.





Other
      real estate owned expense increased due to a write-down taken on one piece
      of
      property in the second quarter of 2008 and 2007 expense included gains on the
      sale of several other real estate properties. One sale of farmland in eastern
      Iowa resulted in a gain of $272, of which $22 was recorded in the third quarter
      of 2007.





Year-to-date
      miscellaneous losses include a loss which occurred at WB Capital in the three
      months ended September 30, 2008. The WB Capital Liquid Asset Fund held a
      short-term Lehman Brothers Holdings, Inc. bond in its portfolio. After Lehman
      Brothers Holdings, Inc. filed bankruptcy, a decision was made to purchase the
      defaulted bond from the mutual fund to prevent the fund from “breaking the
      buck,” with a resulting loss of $443 related to this item.





Income
      Tax Expense





The
      Company incurred income tax expense of $0.9 million for the nine months ended
      September 30, 2008, compared to $6.5 million for the nine months ended September
      30, 2007. The effective income tax rate as a percent of income before taxes
      for
      the nine months ended September 30, 2008 and 2007 were 13.6 percent and 31.1
      percent, respectively. The lower effective rate in 2008 is primarily due to
      the
      sharp decline in income before income taxes in the first nine months of 2008
      combined with the effect of tax-exempt income and a Federal new market tax
      credit. In the second half of 2007, West Bank invested in a qualified community
      development entity which generated the credit. The $2,730 credit reduces income
      tax expense over a seven-year period.





FINANCIAL
      CONDITION





Total
      assets were approximately $1.46 billion as of September 30, 2008, and $1.34
      billion as of December 31, 2007. The 9.2 percent increase was primarily due
      to
      increased loan volumes and a temporary increase in federal funds sold. Certain
      components of the balance sheet have changed significantly and are described
      in
      the following paragraphs.


20


Investment
      Securities





Investment
      securities available for sale declined approximately $47.5 million from December
      31, 2007, to $183.9 million at September 30, 2008. The decline was primarily
      the
      result of bonds being called due to the lower interest rate environment. West
      Bank purchased agency and municipal securities in the past three quarters to
      partially offset the calls, scheduled maturities, and sales of
      securities.





The
      world-wide financial and credit markets are experiencing considerable stress,
      due to the sub-prime turmoil and related negative developments. Despite
      substantial government intervention, the markets remain highly volatile.
      Investors seem to be hesitant to invest in any credit product except Treasuries
      and agencies until more stability returns to the market, thus contributing
      to
      pricing fluctuations. In many cases, bond prices may be the result of distressed
      selling rather than normal market transactions. Management believes some price
      fluctuations have more to do with the environment surrounding the credit markets
      than the inability to receive full principal payments.





On
      a
      quarterly basis, the investment securities portfolio is reviewed for
      other-than-temporary impairment. As of September 30, 2008, existing unrealized
      losses of $8.0 million are considered to be temporary in nature due to market
      interest rate fluctuations and illiquid markets, not estimated cash flows,
      and
      the Company has the ability and the intent to hold securities with unrealized
      losses for a period of time sufficient to allow for a recovery, which may be
      at
      maturity. Therefore, other than the Lehman Brothers Holdings, Inc. bond which
      was discussed earlier, no other than temporary impairment adjustment has been
      recorded as of September 30, 2008.





At
      September 30, 2008, West Bank had a pooled trust preferred security that had
      a
      carrying value of $2.62 million after a pre-tax fair market value adjustment
      of
      $2.33 million. In accordance with SFAS No. 115, the decline in fair market
      value
      has been charged against equity on an after income tax basis. Market pricing
      for
      this security varies widely from one pricing service to another based on a
      lack
      of trading. An October 2008 amendment to SFAS No. 157 provided additional
      guidance on valuing an investment security with an inactive market. Management
      has concluded this security is not other than temporarily impaired. The fair
      value as of September 30, 2008, was determined by discounting the expected
      cash
      flows over the life of the security. If subsequent cash flow analyses would
      indicate insufficient cash flow to repay the outstanding principal and interest
      or the credit rating of this security declined to BBB-, we would conclude the
      security is other than temporarily impaired and incur an impairment loss equal
      to the difference between original cost and the fair market value. The
      impairment loss would negatively impact net income; however, as previously
      noted, the fair market value adjustment at September 30, 2008, has already
      been
      recorded against equity. See additional discussion in Note 7 to the Financial
      Statements.





The
      investment securities available for sale portfolio consists of approximately
      33
      percent U.S. government and government agency securities, 57 percent municipal
      securities, one percent mortgage-backed securities and nine percent corporate
      and trust preferred securities.





Loans
      and
      Non-performing Assets





Loans
      outstanding increased approximately $110 million from December 31, 2007, to
      September 30, 2008. The increase was primarily attributable to growth in
      commercial and commercial real estate loans. Meanwhile residential and
      non-residential construction loans were flat compared to December 31, 2007.
      West
      Bank has new loans in process which should result in somewhat slower loan growth
      in the fourth quarter of 2008.


21





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





September 30, 2008
            
            December 31, 2007
            
            ChangeNon-accrual
                loans
            
            $
            19,317
            
            $
            5,469
            
            $
            13,848Loans
                past due 90 days and still accruing interest
            
            
            188
            
            
            408
            
            
            (220
            )Total
                non-performing loans
            
            
            19,505
            
            
            5,877
            
            
            13,628Non-accrual
                investment securities
            
            
            340
            
            
            -
            
            
            340Other
                real estate owned
            
            
            4,042
            
            
            155
            
            
            3,887Total
                non-performing assets
            
            $
            23,887
            
            $
            6,032
            
            $
            17,855Non-performing
                loans to total loans
            
            
            1.78
            %
            
            0.60
            %
            
            1.18
            %Non-performing
                assets to total loans
            
            
            2.18
            %
            
            0.61
            %
            
            1.57
            %Non-performing
                assets to total assets
            
            
            1.63
            %
            
            0.45
            %
            
            1.18
            %





Total
      non-performing assets have increased 296 percent since the end of 2007. The
      balance of loans in non-accrual status grew $5,985 since June 30, 2008. The
      increase in non-accrual loans included the two loans in which the West Bank
      customer suffered a fraud loss less a reduction due to transfers to other real
      estate owned due to foreclosure of loans related to the failure of Iowa’s
      largest home builder and developer.





Reference
      is also made to the information and discussion earlier in this report under
      the
      heading “Provision for Loan Losses and the Related Allowance for Loan Losses”
and Notes 5 and 7 to the Financial Statements.





Deposits





Total
      deposits were approximately $1.12 billion as of September 30, 2008, an increase
      of 22.8 percent compared to December 31, 2007 balances. The majority of the
      growth was in other time deposits and is attributable to the use of wholesale
      deposits, which have been used to fund loan growth. In addition, customers
      have
      added funds to the CDARS program as discussed earlier under the “Net Interest
      Income” heading.





In
      order
      to maintain core deposits, the Bank began an extensive sales campaign in April
      2008, for a new product called “Reward Me Checking.” The new product pays a
      certificate of deposit-like rate if the customer performs a certain number
      of
      electronic banking transactions and agrees to receive monthly statements
      electronically. In addition, West Bank is the banking partner for a savings
      program called SmartyPig. SmartyPig is an innovative, internet-based savings
      and
      rewards program developed by SmartyPig, LLC. As of September 30, 2008, this
      program had gathered $5.6 million in deposits. An additional strategy for
      gathering and retaining core deposits was added in July 2008. New and current
      customers with a primary checking account at West Bank are eligible for a 50
      basis point higher rate on time certificates.





Borrowings





The
      balance of federal funds purchased and securities sold under agreement to
      repurchase was $69.4 million at September 30, 2008, down from $166.9 million
      at
      December 31, 2007. The reduction was primarily in federal funds purchased,
      which
      includes federal funds purchased from regional and national correspondent banks
      as necessary for short-term liquidity needs and funds sold to West Bank by
      approximately 20 banks throughout Iowa as part of the correspondent bank
      services provided by West Bank. The balance of federal funds purchased from
      correspondent banks throughout Iowa will fluctuate depending upon the loan
      demand and investment strategy of those banks. The balance of other short-term
      borrowings consisted of Treasury, Tax, and Loan option notes. Long-term
      borrowings increased $24.3 million compared to December 31, 2007. The increase
      consisted of a $25 million, ten-year FHLB advance with an interest rate of
      2.70
      percent that is callable after three years. The advance was used to fund loan
      growth and was a lower cost alternative to wholesale deposits when it was
      obtained.


22





Liquidity
      and Capital Resources





The
      objective of liquidity management is to ensure the availability of sufficient
      cash flows to meet all corporate financial commitments and to capitalize on
      opportunities for profitable business expansion. The Company’s principal source
      of funds is deposits, which include demand, money market, savings, and
      certificates of deposit. Other sources include principal repayments on loans,
      proceeds from the maturity and sale of investment securities, federal funds
      purchased, repurchase agreements, advances from the FHLB, and funds provided
      by
      operations. Liquidity management is conducted on both a daily and a long-term
      basis. Investments in liquid assets are adjusted based on expected loan demand,
      projected loan maturities and payments, expected deposit flows, and the
      objectives set by the Company’s asset-liability management policy. The Company
      had liquid assets (cash and cash equivalents) of $112.4 million as of September
      30, 2008, compared with $49.9 million as of December 31, 2007. West Bank had
      additional borrowing capacity available from the FHLB of approximately $52.6
      million at September 30, 2008, and the Company has a $5.0 million unsecured
      line
      of credit through a large regional correspondent bank. In addition, West Bank
      has $139.9 million in borrowing capacity available through unsecured federal
      funds lines of credit with correspondent banks. West Bank was not drawing on
      any
      of these lines of credit as of September 30, 2008. The combination of high
      levels of potentially liquid assets, cash flows from operations, and additional
      borrowing capacity provided strong liquidity for the Company at September 30,
      2008.





The
      Company’s total stockholders’ equity declined to $114.9 million at September 30,
      2008, from $121.6 million at December 31, 2007. Total equity declined as the
      amount of dividends paid and the increase in accumulated comprehensive loss
      due
      to lower market values of available for sale securities exceeded year-to-date
      earnings. Total stockholders' equity was 7.85 percent and 9.08 percent of total
      assets as of September 30, 2008, and December 31, 2007, respectively. No
      material capital expenditures or material changes in the capital resource mix
      are anticipated at this time, except for the possibility of selling preferred
      stock and warrants to the U.S. Treasury Department under the Treasury’s Capital
      Purchase Program. Please see the Company’s October 24, 2008, press release for
      further information.





Quantitative
      measures established by regulation to ensure capital adequacy require the
      Company and West Bank to maintain minimum amounts and ratios (set forth in
      the
      following table) of total and Tier 1 capital to risk-weighted assets and of
      Tier
      1 capital to average assets. Management believes the capital levels of the
      Company and West Bank met all capital adequacy requirements to which they were
      subject at September 30, 2008. Management is closely monitoring the capital
      ratios of the Company and West Bank to ensure they stay in compliance with
      the
      well-capitalized guidelines. On October 15, 2008, the Company’s Board authorized
      management to make application for participating in the U.S. Treasury
      Department’s Capital Purchase Program whereby the U.S. Department of the
      Treasury may purchase qualifying preferred stock and warrants.





Regulatory
            
            Actual
                Regulatoryrequirements
                to be:
            
            Capital
                Ratios as of:Adequately
            
            Well-
            
            September
                30,
            
            December
                31,Capitalized
            
            Capitalized
            
            2008
            
            2007Total
                risk-based capital as % of risk-weighted assets:Consolidated
            
            
            8.0
            %
            
            n/a
            
            
            10.4
            %
            
            11.1
            %West
                Bank
            
            
            8.0
            %
            
            10.0
            %
            
            10.2
            %
            
            10.8
            %Tier
                1 capital as % of risk-weighted assets:Consolidated
            
            
            4.0
            %
            
            n/a
            
            
            9.2
            %
            
            10.3
            %West
                Bank
            
            
            4.0
            %
            
            6.0
            %
            
            8.1
            %
            
            9.1
            %Tier
                1 capital as % of average assets:Consolidated
            
            
            4.0
            %
            
            n/a
            
            
            8.2
            %
            
            8.9
            %West
                Bank
            
            
            4.0
            %
            
            5.0
            %
            
            7.2
            %
            
            7.9
            %




23





On
      April
      16, 2008, the Company’s Board of Directors authorized $5 million to be used
      during the following 12 months for the buy-back of Company common stock. During
      the nine months ended September 30, 2008, 58,300 shares of its common stock
      were
      repurchased at an average price of $13.53 per share under a previous
      authorization. No shares have been repurchased under the current
      authorization.





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 7, 2008, and is
      incorporated herein by reference. The Company has not experienced any material
      changes to its market risk position since December 31, 2007. Management does
      not
      believe the Company's primary market risk exposures and how those exposures
      were
      managed in the first nine months of 2008 changed when compared to
      2007.





Effects
      of New Statements of Financial Accounting Standards





Effective
      January 1, 2008, the Company partially adopted Statement of Financial Accounting
      Standard (SFAS) No. 157, *Fair
      Value Measurements* ,
      which
      requires disclosures for those assets and liabilities carried in the balance
      sheet on a fair value basis. The Financial Accounting Standard Board (FASB)
      has
      deferred the effective date of SFAS No. 157 until 2009 for nonfinancial assets
      and liabilities which are recognized at fair value on a nonrecurring basis.
      For
      the Company, this deferral applies to other real estate owned, goodwill, and
      intangible assets. In October 2008, the FASB issued Staff Position (FSP) No.
      157-3, *Determining
      the Fair Value of a Financial Asset in a Market that is not
      Active* ,
      which
      amended SFAS No. 157. The FSP clarifies how the fair value of a financial
      instrument is determined when the market for that financial asset is inactive.
      The Company does not expect the final adoption of this Statement or the issuance
      of FSP No. 157-3 to have a material impact on its financial position or results
      of operations.





In
      March
      2008, the FASB issued SFAS No. 161, *Disclosures
      about Derivative Instruments and Hedging Activities* .
      SFAS
      No. 161 requires enhanced disclosures about how and why an entity uses
      derivative instruments; how derivative instruments are accounted for under
      SFAS
      No. 133 and its related interpretations; and how derivative instruments and
      related hedged items affect an entity’s financial position, results of
      operations, and cash flows. This Statement is effective for the Company
      beginning on January 1, 2009. Earlier application is permitted, but is not
      required. The Company does not expect the adoption of this Statement to have
      a
      material impact on its financial position or results of operations as the
      Company has limited derivative instrument activity.





In
      April
      2008, the FASB issued FSP No. FAS 142-3, *Determination
      of the Useful Life of Intangible Assets* .
      This
      FSP is an amendment of SFAS No. 142, *Goodwill
      and Other Intangible Assets* .
      FSP No.
      FAS 142-3 amends the factors that should be considered in developing renewal
      or
      extension assumptions used to determine the useful life of a recognized
      intangible asset. The objective of the FSP is to improve the consistency between
      the useful life of a recognized intangible asset and the period of expected
      cash
      flows. This FSP is effective for the Company beginning January 1, 2009. The
      Company does not expect the adoption of this Statement will have a material
      impact on its financial position or results of operations.





In
      September 2008, the FASB issued FSP No. FAS 133-1 and Financial Interpretation
      (FIN) No. 45-4, *Disclosures
      about Credit Derivatives and Certain Guarantees* ,
      an
      amendment of SFAS No. 133, *Accounting
      for Derivative Instruments and Hedging Activities* ,
      and FIN
      No. 45, *Guarantor’s
      Accounting and Disclosure Requirements for Guarantees, Including Indirect
      Guarantees of Indebtedness of Others* .
      The
      amendment of SFAS No. 133 will require disclosure of information about credit
      derivatives to enable users of financial statements to assess their potential
      effect on a Company’s financial position, financial performance, and cash flows.
      The amendment of FIN No. 45 will require disclosure of the current status of
      the
      payment/performance risk of a guarantee. This FSP is effective for the Company
      beginning January 1, 2009. The Company does not expect the adoption of this
      Statement will have a material impact on its financial position or results
      of
      operations due to its minimal use of derivative instruments and having no
      guarantees of the indebtedness of other entities.


24





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)) 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 are not parties to any material pending legal
      proceedings (other than ordinary litigation incidental to the entities’
businesses) and no property of these entities is the subject of any such
      proceeding. The Company does not know of any proceeding contemplated by a
      governmental authority against the Company, its subsidiaries, or any related
      property.





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 7, 2008. However, management believes the current
      economic environment continues to deteriorate. At the time of preparing this
      report, Federal “bailout” legislation has been enacted and the details of
      implementation are being developed.





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





There
      were no purchases of the Company’s common shares during the third quarter of
      2008 under the $5 million stock buy-back plan approved by the Board of Directors
      on April 16, 2008. On a year-to-date basis, 58,300 shares have been repurchased
      at a total cost of $788.


25


Item
      6.
      Exhibits





The
      following exhibits are filed as part of this report:





Exhibits
            
            Description3.1
            
            Restated
                Articles of Incorporation of the Company*(incorporated
                herein by reference to Exhibit 3.1 filed with the Form 10 on March
                11,
                2002.)*3.2
            
            Amendment
                to Bylaws of the Company*(incorporated
                herein by reference to Exhibit 99 filed with the Form 8-K on November
                13,
                2007.)*10.1
            
            Lease
                for Main Bank Facility*(incorporated
                herein by reference to Exhibit 10.1 filed with the Form 10 on March
                11,
                2002.)*10.2
            
            Supplemental
                Agreement to Lease for Main Bank Facility*(incorporated
                herein by reference to Exhibit 10.2 filed with the Form 10 on March
                11,
                2002.)*10.3
            
            Short-term
                Lease related to Main Bank Facility*(incorporated
                herein by reference to Exhibit 10.3 filed with the Form 10 on March
                11,
                2002.)*10.4
            
            Assignment*(incorporated
                herein by reference to Exhibit 10.4 filed with the Form 10 on March
                11,
                2002.)*10.5
            
            Lease
                Modification Agreement No. 1 for Main Bank Facility*(incorporated
                herein by reference to Exhibit 10.5 filed with the Form 10 on March
                11,
                2002.)*10.6
            
            Memorandum
                of Real Estate Contract*(incorporated
                herein by reference to Exhibit 10.6 filed with the Form 10 on March
                11,
                2002.)*10.7
            
            Affidavit*(incorporated
                herein by reference to Exhibit 10.7 filed with the Form 10 on March
                11,
                2002.)*10.8
            
            Addendum
                to Lease for Main Bank Facility*(incorporated
                herein by reference to Exhibit 10.8 filed with the Form 10 on March
                11,
                2002.)*10.9
            
            Data
                Processing Contract*(incorporated
                herein by reference to Exhibit 10.9 filed with the Form 10 on March
                11,
                2002.)*10.10
            
            Employment
                Contract*(incorporated
                herein by reference to Exhibit 10.10 filed with the Form 10 on March
                11,
                2002.)*10.11
            
            Data
                Processing Contract Amendment (*incorporated
                herein by reference to Exhibit 10.12 filed with the Form 10-K on
                March 26,
                2003.*)10.12
            
            The
                Employee Savings and Stock Ownership Plan, as amended*(incorporated
                herein by reference to Exhibit 4.1 filed with the Form S-8 on October
                29,
                2004.)*10.13
            
            Amendment
                to Lease Agreement (*incorporated
                herein by reference to Exhibit 10.16 filed with the Form 10-K on
                March 3,
                2005.*)10.14
            
            Employment
                Agreement with Scott D. Eltjes (*incorporated
                herein by reference to Exhibit 10.17 filed with the Form 10-K on
                March 3,
                2005.*)10.15
            
            Consulting
                Agreement with David L. Miller (*incorporated
                herein by reference to Exhibit 10.18 filed with the Form 10-Q on
                May 6,
                2005.*)10.16
            
            West
                Bancorporation, Inc. Restricted Stock Compensation Plan (*incorporated
                herein by reference to Exhibit B of the definitive proxy statement
                14A
                filed on March 10, 2005.*)10.17
            
            Employment
                Agreement between Investors Management Group Ltd. and Jeff Lorenzen
                (*incorporated
                herein by reference to Exhibit 99 filed with the Form 8-K on February
                22,
                2006.*)10.18
            
            Assignment
                and Assumption of Lease and Consent to Assignment (*incorporated
                herein by reference to Exhibit 10.21 filed with the Form 10-K on
                March 8,
                2006.*)10.19
            
            2007
                Amendment to Lease Agreement (*incorporated
                herein by reference to Exhibit 10.22 filed with the Form 10-Q on
                May 4,
                2007.*)10.20
            
            Employment
                Agreement with Thomas E. Stanberry (*incorporated
                herein by reference to Exhibit 10.24 filed with the Form 8-K on May
                23,
                2008.*)10.21
            
            Employment
                Agreement with Douglas R. Gulling (*incorporated
                herein by reference to Exhibit 10.25 filed with the Form 8-K on May
                23,
                2008.*)10.22
            
            Employment
                Agreement with Brad L. Winterbottom (*incorporated
                herein by reference to Exhibit 10.26 filed with the Form 8-K on May
                23,
                2008.*)10.23
            
            Data
                Processing Contract Amendment31.1
            
            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


26





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)October
                30, 2008
            By:
            /s/
                Thomas E. StanberryDate
            Thomas
                E. StanberryChairman,
                President and Chief Executive OfficerOctober
                30, 2008
            By:
            /s/
                Douglas R. GullingDate
            Douglas
                R. GullingExecutive
                Vice President and Chief Financial Officer(Principal
                Accounting Officer)




27





EXHIBIT
      INDEX





The
      following exhibits are filed herewith:





Exhibit
                No.
            
            Description
            
            Page
                Number10.23
            
            Data
                Processing Contract Amendment
            
            2931.1
            
            Certification
                of Chief Executive Officer under Section 302 of the Sarbanes- Oxley
                Act of
                2002
            
            3031.2
            
            Certification
                of Chief Financial Officer under Section 302 of the Sarbanes- Oxley
                Act of
                2002
            
            3132.1
            
            Certification
                of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as
                Adopted
                Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
            
            3232.2
            
            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
            
            33




28