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

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

----

|          |                                                                                                                        |        |
|----------|------------------------------------------------------------------------------------------------------------------------|--------|
|     |                                                                                                                   | Page   |
| PART I.  | FINANCIAL INFORMATION                                                                                                  |   |
|     |                                                                                                                   |   |
| Item 1.  | Consolidated Financial Statements (Unaudited)                                                                          | 3      |
|     |                                                                                                                   |   |
|     | Consolidated Balance Sheets at September 30, 2010, and December 31, 2009                                               | 3      |
|     |                                                                                                                   |   |
|     | Consolidated Statements of Operations for the three and nine months ended September 30, 2010 and 2009                  | 4      |
|     |                                                                                                                   |   |
|     | Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2010 and 2009 | 6      |
|     |                                                                                                                   |   |
|     | Consolidated Statements of Stockholders' Equity for the nine months ended September 30, 2010 and 2009                  | 7      |
|     |                                                                                                                   |   |
|     | Consolidated Statements of Cash Flows for the nine months ended September 30, 2010 and 2009                            | 8      |
|     |                                                                                                                   |   |
|     | Notes to the Consolidated Financial Statements                                                                         | 10     |
|     |                                                                                                                   |   |
| Item 2.  | Management's Discussion and Analysis of Financial Condition and Results of Operations                                  | 25     |
|     |                                                                                                                   |   |
| Item 3.  | Quantitative and Qualitative Disclosures about Market Risk                                                             | 43     |
|     |                                                                                                                   |   |
| Item 4.  | Controls and Procedures                                                                                                | 43     |
|     |                                                                                                                   |   |
| PART II. | OTHER INFORMATION                                                                                                      |   |
|     |                                                                                                                   |   |
| Item 1.  | Legal Proceedings                                                                                                      | 43     |
|     |                                                                                                                   |   |
| Item 1A. | Risk Factors                                                                                                           | 43     |
|     |                                                                                                                   |   |
| Item 6.  | Exhibits                                                                                                               | 44     |
|     |                                                                                                                   |   |
|     | Signatures                                                                                                             | 45     |
|     |                                                                                                                   |   |
|     | Index to Exhibits                                                                                                      | 46     |

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Table of Contents

|                                                                               |                         |           |                        |           |        |           |        |
|-------------------------------------------------------------------------------|-------------------------|-----------|------------------------|-----------|--------|-----------|--------|
| West Bancorporation, Inc. and Subsidiary                                      |                    |      |                   |
| Consolidated Balance Sheets                                                   |                    |      |                   |
| (unaudited)                                                                   |                    |      |                   |
|                                                                          |                    |      |                   |
| (in thousands, except per share data)                                         | September 30, 2010 |      | December 31, 2009 |
| ASSETS                                                                        |                    |      |                   |
| Cash and due from banks                                                       | $                       | 32,979    |                   |      | $      | 27,923    |   |
| Federal funds sold and other short-term investments                           | 55,608                  |      |                   | 103,572   |   |
| Cash and cash equivalents                                                     | 88,587                  |      |                   | 131,495   |   |
| Securities available for sale                                                 | 258,780                 |      |                   | 340,478   |   |
| Federal Home Loan Bank stock, at cost                                         | 11,055                  |      |                   | 10,791    |   |
| Loans held for sale                                                           | 3,167                   |      |                   | 332       |   |
| Loans                                                                         | 926,465                 |      |                   | 1,020,710 |   |
| Allowance for loan losses                                                     | (19,085                 | )         |                   | (19,126   | )      |
| Loans, net                                                                    | 907,380                 |      |                   | 1,001,584 |   |
| Premises and equipment, net                                                   | 5,171                   |      |                   | 5,290     |   |
| Accrued interest receivable                                                   | 5,642                   |      |                   | 5,502     |   |
| Bank-owned life insurance                                                     | 25,190                  |      |                   | 25,400    |   |
| Other real estate owned                                                       | 19,740                  |      |                   | 25,350    |   |
| Deferred tax assets                                                           | 10,009                  |      |                   | 12,823    |   |
| Other assets                                                                  | 14,430                  |      |                   | 16,009    |   |
| Total assets                                                                  | $                       | 1,349,151 |                   |      | $      | 1,575,054 |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                          |                    |      |                   |
| LIABILITIES                                                                   |                    |      |                   |
| Deposits:                                                                     |                    |      |                   |
| Noninterest-bearing demand                                                    | $                       | 234,120   |                   |      | $      | 206,412   |   |
| Interest-bearing demand                                                       | 160,155                 |      |                   | 162,305   |   |
| Savings                                                                       | 259,104                 |      |                   | 442,137   |   |
| Time of $100,000 or more                                                      | 268,531                 |      |                   | 271,145   |   |
| Other time                                                                    | 112,292                 |      |                   | 164,618   |   |
| Total deposits                                                                | 1,034,202               |      |                   | 1,246,617 |   |
| Federal funds purchased and securities sold under agreements to repurchase    | 35,393                  |      |                   | 40,342    |   |
| Other short-term borrowings                                                   | 1,785                   |      |                   | 2,553     |   |
| Subordinated notes                                                            | 20,619                  |      |                   | 20,619    |   |
| Federal Home Loan Bank advances                                               | 105,000                 |      |                   | 125,000   |   |
| Accrued expenses and other liabilities                                        | 6,971                   |      |                   | 6,864     |   |
| Total liabilities                                                             | 1,203,970               |      |                   | 1,441,995 |   |
| STOCKHOLDERS' EQUITY                                                          |                    |      |                   |
| Preferred stock, $0.01 par value, with a liquidation preference of $1,000 per | 34,387                  |      |                   | 34,024    |   |
| share; authorized 50,000,000 shares; 36,000 shares issued and outstanding at  |
| September 30, 2010, and December 31, 2009                                     |
| Common stock, no par value; authorized 50,000,000 shares; 17,403,882          | 3,000                   |      |                   | 3,000     |   |
| shares issued and outstanding at September 30, 2010, and December 31, 2009    |
| Additional paid-in capital                                                    | 34,387                  |      |                   | 34,387    |   |
| Retained earnings                                                             | 74,129                  |      |                   | 65,959    |   |
| Accumulated other comprehensive loss                                          | (722                    | )         |                   | (4,311    | )      |
| Total stockholders' equity                                                    | 145,181                 |      |                   | 133,059   |   |
| Total liabilities and stockholders' equity                                    | $                       | 1,349,151 |                   |      | $      | 1,575,054 |   |

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Table of Contents

|                                                                   |                                  |        |                                 |         |        |        |         |        |        |         |        |        |   |        |        |
|-------------------------------------------------------------------|----------------------------------|--------|---------------------------------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---|--------|--------|
| West Bancorporation, Inc. and Subsidiary                          |                             |   |                            |    |   |   |    |
| Consolidated Statements of Operations                             |                             |   |                            |    |   |   |    |
| (unaudited)                                                       |                             |   |                            |    |   |   |    |
|                                                              | Three Months Ended September 30, |   | Nine Months Ended September 30, |
| (in thousands, except per share data)                             | 2010                             |   | 2009                            |    | 2010   |   | 2009    |
| Interest income:                                                  |                             |   |                            |    |   |   |    |
| Loans, including fees                                             | $                                | 13,285 |                            |    | $      | 14,914 |    |   | $      | 40,516  |   |   | $ | 45,038 |   |
| Securities:                                                       |                             |   |                            |    |   |   |    |
| U.S. Treasury, government agencies and corporations               | 564                              |   |                            | 694     |   |   | 2,032   |   |   | 1,913   |   |
| States and political subdivisions                                 | 740                              |   |                            | 1,096   |   |   | 2,480   |   |   | 3,316   |   |
| Corporate notes and other investments                             | 479                              |   |                            | 439     |   |   | 1,223   |   |   | 798     |   |
| Federal funds sold and other short-term investments               | 116                              |   |                            | 73      |   |   | 446     |   |   | 384     |   |
| Total interest income                                             | 15,184                           |   |                            | 17,216  |   |   | 46,697  |   |   | 51,449  |   |
| Interest expense:                                                 |                             |   |                            |    |   |   |    |
| Demand deposits                                                   | 513                              |   |                            | 704     |   |   | 1,737   |   |   | 1,852   |   |
| Savings deposits                                                  | 683                              |   |                            | 1,295   |   |   | 3,657   |   |   | 2,826   |   |
| Time deposits                                                     | 1,838                            |   |                            | 2,673   |   |   | 5,653   |   |   | 10,564  |   |
| Federal funds purchased and securities sold under agreements | 52                               |   |                            | 65      |   |   | 170     |   |   | 240     |   |
| to repurchase                                                     |
| Subordinated notes                                                | 371                              |   |                            | 371     |   |   | 1,101   |   |   | 1,101   |   |
| Long-term borrowings                                              | 1,030                            |   |                            | 1,335   |   |   | 3,285   |   |   | 3,961   |   |
| Total interest expense                                            | 4,487                            |   |                            | 6,443   |   |   | 15,603  |   |   | 20,544  |   |
| Net interest income                                               | 10,697                           |   |                            | 10,773  |   |   | 31,094  |   |   | 30,905  |   |
| Provision for loan losses                                         | 2,000                            |   |                            | 3,000   |   |   | 5,400   |   |   | 21,500  |   |
| Net interest income after provision for loan losses               | 8,697                            |   |                            | 7,773   |   |   | 25,694  |   |   | 9,405   |   |
| Noninterest income:                                               |                             |   |                            |    |   |   |    |
| Service charges on deposit accounts                               | 867                              |   |                            | 1,078   |   |   | 2,525   |   |   | 3,120   |   |
| Debit card usage fees                                             | 338                              |   |                            | 296     |   |   | 994     |   |   | 825     |   |
| Service fee from SmartyPig, LLC                                   | 253                              |   |                            | — |   |   | 1,314   |   |   | — |   |
| Trust services                                                    | 210                              |   |                            | 222     |   |   | 616     |   |   | 581     |   |
| Gains and fees on sales of residential mortgages                  | 571                              |   |                            | 324     |   |   | 1,044   |   |   | 859     |   |
| Increase in cash value of bank-owned life insurance               | 220                              |   |                            | 199     |   |   | 664     |   |   | 562     |   |
| Gain from bank-owned life insurance                               | 420                              |   |                            | — |   |   | 420     |   |   | 840     |   |
| Other income                                                      | 228                              |   |                            | 232     |   |   | 721     |   |   | 734     |   |
| Total noninterest income                                          | 3,107                            |   |                            | 2,351   |   |   | 8,298   |   |   | 7,521   |   |
| Investment securities gains (losses), net:                        |                             |   |                            |    |   |   |    |
| Total other than temporary impairment losses                      | (117                             | )      |                            | (986    | )      |   | (305    | )      |   | (3,414  | )      |
| Portion of loss recognized in other comprehensive income          | —                          |   |                            | 159     |   |   | — |   |   | 897     |   |
| (loss) before taxes                                               |
| Net impairment losses recognized in earnings                      | (117                             | )      |                            | (827    | )      |   | (305    | )      |   | (2,517  | )      |
| Realized securities gains, net                                    | 16                               |   |                            | 507     |   |   | 53      |   |   | 1,960   |   |
| Investment securities (losses), net                               | (101                             | )      |                            | (320    | )      |   | (252    | )      |   | (557    | )      |
| Noninterest expense:                                              |                             |   |                            |    |   |   |    |
| Salaries and employee benefits                                    | 2,813                            |   |                            | 2,294   |   |   | 8,180   |   |   | 7,494   |   |
| Occupancy                                                         | 806                              |   |                            | 794     |   |   | 2,403   |   |   | 2,637   |   |
| Data processing                                                   | 464                              |   |                            | 455     |   |   | 1,366   |   |   | 1,312   |   |
| FDIC insurance expense                                            | 835                              |   |                            | 531     |   |   | 2,280   |   |   | 2,267   |   |
| Other real estate owned expense                                   | (3                               | )      |                            | 90      |   |   | 657     |   |   | 215     |   |
| Professional fees                                                 | 230                              |   |                            | 313     |   |   | 704     |   |   | 804     |   |
| Miscellaneous losses                                              | 220                              |   |                            | 27      |   |   | 1,208   |   |   | 59      |   |
| Goodwill impairment                                               | —                          |   |                            | — |   |   | — |   |   | 13,376  |   |
| Other expenses                                                    | 1,216                            |   |                            | 1,404   |   |   | 3,545   |   |   | 4,042   |   |
| Total noninterest expense                                         | 6,581                            |   |                            | 5,908   |   |   | 20,343  |   |   | 32,206  |   |

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Table of Contents

|                                                         |                                  |         |                                 |        |        |         |         |        |        |         |        |        |   |         |        |
|---------------------------------------------------------|----------------------------------|---------|---------------------------------|--------|--------|---------|---------|--------|--------|---------|--------|--------|---|---------|--------|
| West Bancorporation, Inc. and Subsidiary                |                             |    |                            |   |   |    |    |
| Consolidated Statements of Operations (continued)       |                             |    |                            |   |   |    |    |
| (unaudited)                                             |                             |    |                            |   |   |    |    |
|                                                    | Three Months Ended September 30, |    | Nine Months Ended September 30, |
| (in thousands, except per share data)                   | 2010                             |    | 2009                            |   | 2010   |    | 2009    |
| Income (loss) before income taxes                       | $                                | 5,122   |                            |   | $      | 3,896   |    |   | $      | 13,397  |   |   | $ | (15,837 | )      |
| Income taxes (benefits)                                 | 1,181                            |    |                            | 906    |   |    | 3,514   |   |   | (8,021  | )      |
| Income (loss) from continuing operations                | 3,941                            |    |                            | 2,990  |   |    | 9,883   |   |   | (7,816  | )      |
| Discontinued operations:                                |                             |    |                            |   |   |    |    |
| Loss from discontinued operations before income taxes   | —                          |    |                            | (1,048 | )      |    | — |   |   | (10,394 | )      |
| Income taxes (benefits)                                 | —                          |    |                            | 37     |   |    | — |   |   | (777    | )      |
| Loss from discontinued operations                       | —                          |    |                            | (1,085 | )      |    | — |   |   | (9,617  | )      |
| Net income (loss)                                       | 3,941                            |    |                            | 1,905  |   |    | 9,883   |   |   | (17,433 | )      |
| Preferred stock dividends and accretion of discount     | (572                             | )       |                            | (571   | )      |    | (1,713  | )      |   | (1,708  | )      |
| Net income (loss) available to common stockholders      | $                                | 3,369   |                            |   | $      | 1,334   |    |   | $      | 8,170   |   |   | $ | (19,141 | )      |
|                                                    |                             |    |                            |   |   |    |    |
| Earnings (loss) per common share:                       |                             |    |                            |   |   |    |    |
| Basic and diluted earnings (loss) per common share from |                             |    |                            |   |   |    |    |
| continuing operations                                   | $                                | 0.19    |                            |   | $      | 0.14    |    |   | $      | 0.47    |   |   | $ | (0.55   | )      |
| Basic and diluted (loss) per common share from     |                             |    |                            |   |   |    |    |
| discontinued operations                                 | $                                | — |                            |   | $      | (0.06   | )       |   | $      | — |   |   | $ | (0.55   | )      |
| Basic and diluted earnings (loss) per common share      | $                                | 0.19    |                            |   | $      | 0.08    |    |   | $      | 0.47    |   |   | $ | (1.10   | )      |
| Cash dividends per common share                         | $                                | — |                            |   | $      | — |    |   | $      | — |   |   | $ | 0.09    |   |

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Table of Contents

|                                                                  |                                  |        |                                 |        |        |        |        |        |        |        |        |        |   |         |   |
|------------------------------------------------------------------|----------------------------------|--------|---------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---|---------|---|
| West Bancorporation, Inc. and Subsidiary                         |                             |   |                            |   |   |   |   |
| Consolidated Statements of Comprehensive Income (Loss)           |                             |   |                            |   |   |   |   |
| (unaudited)                                                      |                             |   |                            |   |   |   |   |
|                                                             | Three Months Ended September 30, |   | Nine Months Ended September 30, |
| (in thousands)                                                   | 2010                             |   | 2009                            |   | 2010   |   | 2009   |
| Net income (loss)                                                | $                                | 3,941  |                            |   | $      | 1,905  |   |   | $      | 9,883  |   |   | $ | (17,433 | ) |
| Other comprehensive income (loss):                               |                             |   |                            |   |   |   |   |
| Securities for which a portion of an other than temporary        |                             |   |                            |   |   |   |   |
| impairment has been recorded in earnings:                        |                             |   |                            |   |
| Unrealized holding gains (losses) arising during the period      | (8                               | )      |                            | (174   | )      |   | 78     |   |   | (1,187 | )      |
| Loss recognized in earnings                                      | 117                              |   |                            | 15     |   |   | 117    |   |   | 290    |   |
| Net unrealized gains (losses) on securities with other than      | 109                              |   |                            | (159   | )      |   | 195    |   |   | (897   | )      |
| temporary impairment before tax (expense) benefit                |
| Tax (expense) benefit                                            | (41                              | )      |                            | 61     |   |   | (74    | )      |   | 341    |   |
| Net unrealized gains (losses) on securities with                 | 68                               |   |                            | (98    | )      |   | 121    |   |   | (556   | )      |
| other than temporary impairment, net of tax,                     |
| in other comprehensive income (loss)                             |
| Other securities:                                                |                             |   |                            |   |   |   |   |
| Unrealized holding gains arising during the period               | 2,594                            |   |                            | 3,492  |   |   | 5,459  |   |   | 5,034  |   |
| Realized net (gains) recognized into net income                  | (16                              | )      |                            | (507   | )      |   | (53    | )      |   | (1,960 | )      |
| Realized impairment losses reclassified into net income          | —                          |   |                            | 812    |   |   | 188    |   |   | 2,227  |   |
| Net unrealized gains on other securities before tax expense | 2,578                            |   |                            | 3,797  |   |   | 5,594  |   |   | 5,301  |   |
| Tax expense                                                      | (980                             | )      |                            | (1,444 | )      |   | (2,126 | )      |   | (2,016 | )      |
| Net unrealized gains on other securities, net of tax,            | 1,598                            |   |                            | 2,353  |   |   | 3,468  |   |   | 3,285  |   |
| in other comprehensive income (loss)                             |
| Other comprehensive income (loss)                                | $                                | 5,607  |                            |   | $      | 4,160  |   |   | $      | 13,472 |   |   | $ | (14,704 | ) |

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Table of Contents

|                                                 |                |        |             |         |                          |        |                  |        |                                            |         |        |        |         |        |        |         |        |        |   |        |   |         |        |
|-------------------------------------------------|----------------|--------|-------------|---------|--------------------------|--------|------------------|--------|--------------------------------------------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---|--------|---|---------|--------|
| West Bancorporation, Inc. and Subsidiary        |           |   |        |    |                     |   |             |   |                                       |    |
| Consolidated Statements of Stockholders' Equity |           |   |        |    |                     |   |             |   |                                       |    |
| (unaudited)                                     |           |   |        |    |                     |   |             |   |                                       |    |   |
| (in thousands, except per share data)           | PreferredStock |   | CommonStock |    | AdditionalPaid-InCapital |   | RetainedEarnings |   | AccumulatedOtherComprehensiveIncome (Loss) |    | Total  |
| Balance, January 1, 2009                        | $              | 33,548 |        |    | $                        | 3,000  |             |   | $                                          | 34,452  |   |   | $       | 82,793 |   |    | $      | (3,730 | ) |   | $ | 150,063 |   |
| Cumulative effect accounting adjustment,        |           |   |        |    |                     |   |             |   |                                       |    |   |
| net of tax (1)                                  | —        |   |        | — |                     |   | —          |   |                                       | 1,625   |   |   | (1,625  | )      |   | — |   |
| Net (loss)                                      | —        |   |        | — |                     |   | —          |   |                                       | (17,433 | )      |   | — |   |   | (17,433 | )      |
| Other comprehensive income, unrealized          |           |   |        |    |                     |   |             |   |                                       |    |   |
| gains on securities, net of reclassification    |           |   |        |    |                     |   |             |   |                                       |    |   |
| adjustment, net of tax                          | —        |   |        | — |                     |   | —          |   |                                       | — |   |   | 2,729   |   |   | 2,729   |   |
| Preferred stock discount accretion              | 358            |   |        | — |                     |   | —          |   |                                       | (358    | )      |   | — |   |   | — |   |
| Preferred stock issuance costs                  | —        |   |        | — |                     |   | (65              | )      |                                       | — |   |   | — |   |   | (65     | )      |
| Cash dividends declared, $0.09 per              |           |   |        |    |                     |   |             |   |                                       |    |   |
| common share                                    | —        |   |        | — |                     |   | —          |   |                                       | (1,566  | )      |   | — |   |   | (1,566  | )      |
| Preferred stock dividends declared              | —        |   |        | — |                     |   | —          |   |                                       | (1,350  | )      |   | — |   |   | (1,350  | )      |
| Balance, September 30, 2009                     | $              | 33,906 |        |    | $                        | 3,000  |             |   | $                                          | 34,387  |   |   | $       | 63,711 |   |    | $      | (2,626 | ) |   | $ | 132,378 |   |
|                                            |           |   |        |    |                     |   |             |   |                                       |    |   |
| Balance, January 1, 2010                        | $              | 34,024 |        |    | $                        | 3,000  |             |   | $                                          | 34,387  |   |   | $       | 65,959 |   |    | $      | (4,311 | ) |   | $ | 133,059 |   |
| Net income                                      | —        |   |        | — |                     |   | —          |   |                                       | 9,883   |   |   | — |   |   | 9,883   |   |
| Other comprehensive income, unrealized          |           |   |        |    |                     |   |             |   |                                       |    |   |
| gains on securities, net of reclassification    |           |   |        |    |                     |   |             |   |                                       |    |   |
| adjustment, net of tax                          | —        |   |        | — |                     |   | —          |   |                                       | — |   |   | 3,589   |   |   | 3,589   |   |
| Preferred stock discount accretion              | 363            |   |        | — |                     |   | —          |   |                                       | (363    | )      |   | — |   |   | — |   |
| Preferred stock dividends declared              | —        |   |        | — |                     |   | —          |   |                                       | (1,350  | )      |   | — |   |   | (1,350  | )      |
| Balance, September 30, 2010                     | $              | 34,387 |        |    | $                        | 3,000  |             |   | $                                          | 34,387  |   |   | $       | 74,129 |   |    | $      | (722   | ) |   | $ | 145,181 |   |

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Table of Contents

|                                                                                          |                                 |        |        |          |        |         |   |
|------------------------------------------------------------------------------------------|---------------------------------|--------|--------|----------|--------|---------|---|
| West Bancorporation, Inc. and Subsidiary                                                 |                            |   |   |
| Consolidated Statements of Cash Flows                                                    |                            |   |   |
| (unaudited)                                                                              | Nine Months Ended September 30, |
| (in thousands)                                                                           | 2010                            |   | 2009   |
| Cash Flows from Operating Activities:                                                    |                            |   |   |
| Net income (loss)                                                                        | $                               | 9,883  |   |     | $      | (17,433 | ) |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: |                            |   |   |
| Provision for loan losses                                                                | 5,400                           |   |   | 21,500   |   |
| Goodwill impairment of banking operations                                                | —                         |   |   | 13,376   |   |
| Goodwill impairment of discontinued operations                                           | —                         |   |   | 11,160   |   |
| Net amortization and accretion                                                           | 1,095                           |   |   | 548      |   |
| (Gain) loss on disposition of premises and equipment                                     | (2                              | )      |   | 4        |   |
| Securities gains, net                                                                    | (53                             | )      |   | (1,960   | )      |
| Investment securities impairment losses                                                  | 305                             |   |   | 2,517    |   |
| Proceeds from sales of loans held for sale                                               | 47,470                          |   |   | 58,052   |   |
| Originations of loans held for sale                                                      | (50,305                         | )      |   | (58,186  | )      |
| Gain on sale of other real estate owned                                                  | (355                            | )      |   | (64      | )      |
| Gain from bank-owned life insurance                                                      | (420                            | )      |   | (840     | )      |
| Increase in value of bank-owned life insurance                                           | (664                            | )      |   | (562     | )      |
| Depreciation                                                                             | 443                             |   |   | 521      |   |
| Deferred income taxes                                                                    | 615                             |   |   | (7,957   | )      |
| Other                                                                                    | —                         |   |   | (1,543   | )      |
| Change in assets and liabilities:                                                        |                            |   |   |
| Increase in accrued interest receivable                                                  | (140                            | )      |   | (474     | )      |
| Decrease (increase) in other assets                                                      | 3,414                           |   |   | (2,938   | )      |
| Increase (decrease) in accrued expenses and other liabilities                            | 107                             |   |   | (63      | )      |
| Net cash provided by operating activities - continuing operations                        | 16,793                          |   |   | 15,658   |   |
| Net cash provided by operating activities - discontinued operations                      | —                         |   |   | 1,046    |   |
| Net cash provided by operating activities                                                | 16,793                          |   |   | 16,704   |   |
| Cash Flows from Investing Activities:                                                    |                            |   |   |
| Proceeds from sales, calls, and maturities of securities available for sale              | 232,825                         |   |   | 133,027  |   |
| Purchases of securities available for sale                                               | (146,566                        | )      |   | (160,269 | )      |
| Purchases of Federal Home Loan Bank stock                                                | (1,120                          | )      |   | (2,249   | )      |
| Proceeds from redemption of Federal Home Loan Bank stock                                 | 856                             |   |   | —  |   |
| Net decrease in loans                                                                    | 88,928                          |   |   | 2,998    |   |
| Net proceeds from sales of other real estate owned                                       | 5,180                           |   |   | 4,397    |   |
| Proceeds from sales of premises and equipment                                            | 9                               |   |   | 2        |   |
| Purchases of premises and equipment                                                      | (331                            | )      |   | (944     | )      |
| Proceeds of principal and earnings from bank-owned life insurance                        | —                         |   |   | 1,493    |   |
| Net cash provided by (used in) investing activities - continuing operations              | 179,781                         |   |   | (21,545  | )      |
| Net cash (used in) investing activities - discontinued operations                        | —                         |   |   | (20      | )      |
| Net cash provided by (used in) investing activities                                      | 179,781                         |   |   | (21,565  | )      |
| Cash Flows from Financing Activities:                                                    |                            |   |   |
| Net (decrease) increase in deposits                                                      | (212,415                        | )      |   | 6,016    |   |
| Net decrease in federal funds purchased and securities sold                              |                            |   |   |
| under agreements to repurchase                                                           | (4,949                          | )      |   | (44,667  | )      |
| Net (decrease) increase in other short-term borrowings                                   | (768                            | )      |   | 1,615    |   |
| Principal payments on long-term borrowings                                               | (20,000                         | )      |   | —  |   |
| Common stock cash dividends                                                              | —                         |   |   | (1,566   | )      |
| Preferred stock dividends paid                                                           | (1,350                          | )      |   | (1,125   | )      |
| Preferred stock issuance costs                                                           | —                         |   |   | (65      | )      |
| Net cash (used in) financing activities - continuing operations                          | (239,482                        | )      |   | (39,792  | )      |
| Net cash (used in) financing activities - discontinued operations                        | —                         |   |   | —  |   |
| Net cash (used in) financing activities                                                  | (239,482                        | )      |   | (39,792  | )      |

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|                                                                       |                                 |         |        |         |        |         |        |
|-----------------------------------------------------------------------|---------------------------------|---------|--------|---------|--------|---------|--------|
| West Bancorporation, Inc. and Subsidiary                              |                            |    |   |
| Consolidated Statements of Cash Flows (continued)                     |                            |    |   |
| (unaudited)                                                           | Nine Months Ended September 30, |
| (in thousands)                                                        | 2010                            |    | 2009   |
| Net decrease in cash and cash equivalents                             | $                               | (42,908 | )      |    | $      | (44,653 | )      |
| Cash and Cash Equivalents:                                            |                            |    |   |
| Beginning                                                             | 131,495                         |    |   | 196,969 |   |
| Ending                                                                | $                               | 88,587  |   |    | $      | 152,316 |   |
|                                                                  |                            |    |   |
|                                                                  |                            |    |   |
| Supplemental Disclosures of Cash Flow Information                     |                            |    |   |
| Cash payments for:                                                    |                            |    |   |
| Interest                                                              | $                               | 15,834  |   |    | $      | 21,394  |   |
| Income taxes                                                          | 1,742                           |    |   | 2,276   |   |
| Supplemental Disclosure of Noncash Investing and Financing Activities |                            |    |   |
| Transfer of loans to other real estate owned                          | $                               | 6,531   |   |    | $      | 18,121  |   |
| Transfer of other real estate owned to loans                          | 6,655                           |    |   | — |   |
| Bank-owned life insurance death benefit receivable                    | 1,294                           |    |   | — |   |

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|                                                            |                                  |         |                                 |         |        |         |         |        |        |         |        |        |   |         |        |
|------------------------------------------------------------|----------------------------------|---------|---------------------------------|---------|--------|---------|---------|--------|--------|---------|--------|--------|---|---------|--------|
|                                                       | Three Months Ended September 30, |    | Nine Months Ended September 30, |
|                                                       | 2010                             |    | 2009                            |    | 2010   |    | 2009    |
| Loss from discontinued operations:                         |                             |    |                            |    |   |    |    |
| Interest income                                            | $                                | — |                            |    | $      | — |    |   | $      | — |   |   | $ | — |   |
| Interest expense                                           | —                          |    |                            | — |   |    | — |   |   | — |   |
| Net interest income                                        | —                          |    |                            | — |   |    | — |   |   | — |   |
| Noninterest income                                         | —                          |    |                            | 1,594   |   |    | — |   |   | 4,687   |   |
| Noninterest expense                                        | —                          |    |                            | 2,642   |   |    | — |   |   | 15,081  |   |
| Loss from discontinued operations before income taxes | —                          |    |                            | (1,048  | )      |    | — |   |   | (10,394 | )      |
| Income taxes (benefits)                                    | —                          |    |                            | 37      |   |    | — |   |   | (777    | )      |
| Loss from discontinued operations                          | $                                | — |                            |    | $      | (1,085  | )       |   | $      | — |   |   | $ | (9,617  | )      |

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|                                           |                         |         |                      |         |                         |        |           |        |        |         |        |        |   |         |        |
|-------------------------------------------|-------------------------|---------|----------------------|---------|-------------------------|--------|-----------|--------|--------|---------|--------|--------|---|---------|--------|
|                                      | September 30, 2010 |
|                                      | AmortizedCost           |    | GrossUnrealizedGains |    | GrossUnrealized(Losses) |   | FairValue |
| U.S. government agencies and corporations | $                       | 101,710 |                 |    | $                       | 729    |      |   | $      | — |   |   | $ | 102,439 |   |
| State and political subdivisions          | 62,750                  |    |                 | 1,481   |                    |   | (77       | )      |   | 64,154  |   |
| Mortgage-backed securities (1)            | 82,748                  |    |                 | 1,565   |                    |   | —   |   |   | 84,313  |   |
| Trust preferred securities                | 6,191                   |    |                 | — |                    |   | (4,322    | )      |   | 1,869   |   |
| Corporate notes and other investments     | 6,547                   |    |                 | 20      |                    |   | (562      | )      |   | 6,005   |   |
|                                      | $                       | 259,946 |                 |    | $                       | 3,795  |      |   | $      | (4,961  | )      |   | $ | 258,780 |   |
|                                      |                    |    |                 |    |                    |   |      |
|                                      | December 31, 2009  |
|                                      | AmortizedCost           |    | GrossUnrealizedGains |    | GrossUnrealized(Losses) |   | FairValue |
| U.S. government agencies and corporations | $                       | 177,940 |                 |    | $                       | 190    |      |   | $      | (240    | )      |   | $ | 177,890 |   |
| State and political subdivisions          | 88,831                  |    |                 | 823     |                    |   | (1,719    | )      |   | 87,935  |   |
| Mortgage-backed securities (1)            | 64,897                  |    |                 | 141     |                    |   | (460      | )      |   | 64,578  |   |
| Trust preferred securities                | 6,926                   |    |                 | — |                    |   | (4,859    | )      |   | 2,067   |   |
| Corporate notes and other investments     | 8,839                   |    |                 | 28      |                    |   | (859      | )      |   | 8,008   |   |
|                                      | $                       | 347,433 |                 |    | $                       | 1,182  |      |   | $      | (8,137  | )      |   | $ | 340,478 |   |

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

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|                                        |                         |         |           |         |        |         |        |
|----------------------------------------|-------------------------|---------|-----------|---------|--------|---------|--------|
|                                   | September 30, 2010 |
|                                   | AmortizedCost           |    | FairValue |
| Due in one year or less                | $                       | 5,817   |      |    | $      | 5,834   |   |
| Due after one year through five years  | 110,835                 |    |      | 110,871 |   |
| Due after five years through ten years | 22,424                  |    |      | 23,087  |   |
| Due after ten years                    | 38,122                  |    |      | 34,675  |   |
|                                   | 177,198                 |    |      | 174,467 |   |
| Mortgage-backed securities             | 82,748                  |    |      | 84,313  |   |
|                                   | $                       | 259,946 |      |    | $      | 258,780 |   |

|                       |                                  |        |                                 |        |        |        |        |        |        |        |        |        |   |         |        |
|-----------------------|----------------------------------|--------|---------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---|---------|--------|
|                  | Three Months Ended September 30, |   | Nine Months Ended September 30, |
|                  | 2010                             |   | 2009                            |   | 2010   |   | 2009   |
| Proceeds from sales   | $                                | 10,096 |                            |   | $      | 53,694 |   |   | $      | 77,717 |   |   | $ | 108,037 |   |
| Gross gains on sales  | 326                              |   |                            | 722    |   |   | 412    |   |   | 2,175  |   |
| Gross losses on sales | (310                             | )      |                            | 215    |   |   | (359   | )      |   | 215    |   |

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|                                       |                         |         |                         |         |           |         |                         |        |           |         |                         |        |         |         |        |         |        |         |        |        |   |         |        |
|---------------------------------------|-------------------------|---------|-------------------------|---------|-----------|---------|-------------------------|--------|-----------|---------|-------------------------|--------|---------|---------|--------|---------|--------|---------|--------|--------|---|---------|--------|
|                                  | September 30, 2010 |
|                                  | Less than 12 months     |    | 12 months or longer     |    | Total     |
|                                  | FairValue               |    | GrossUnrealized(Losses) |    | FairValue |    | GrossUnrealized(Losses) |   | FairValue |    | GrossUnrealized(Losses) |
| U.S. government agencies              |                    |    |                    |    |      |    |                    |   |      |    |                    |
| and corporations                      | $                       | — |                    |    | $         | — |                    |   | $         | — |                    |   | $       | — |   |    | $      | — |   |   | $ | — |   |
| State and political subdivisions      | 6,173                   |    |                    | (19     | )         |    | 2,008                   |   |      | (58     | )                       |   | 8,181   |    |   | (77     | )      |
| Mortgage-backed securities            | —                 |    |                    | — |      |    | —                 |   |      | — |                    |   | — |    |   | — |   |
| Trust preferred securities            | —                 |    |                    | — |      |    | 1,869                   |   |      | (4,322  | )                       |   | 1,869   |    |   | (4,322  | )      |
| Corporate notes and other investments | —                 |    |                    | — |      |    | 3,427                   |   |      | (562    | )                       |   | 3,427   |    |   | (562    | )      |
|                                  | $                       | 6,173   |                    |    | $         | (19     | )                       |   | $         | 7,304   |                    |   | $       | (4,942  | )      |    | $      | 13,477  |   |   | $ | (4,961  | )      |
|                                  |                    |    |                    |    |      |    |                    |   |      |    |                    |
|                                  | December 31, 2009  |
|                                  | Less than 12 months     |    | 12 months or longer     |    | Total     |
|                                  | FairValue               |    | GrossUnrealized(Losses) |    | FairValue |    | GrossUnrealized(Losses) |   | FairValue |    | GrossUnrealized(Losses) |
| U.S. government agencies              |                    |    |                    |    |      |    |                    |   |      |    |                    |
| and corporations                      | $                       | 42,535  |                    |    | $         | (240    | )                       |   | $         | — |                    |   | $       | — |   |    | $      | 42,535  |   |   | $ | (240    | )      |
| State and political subdivisions      | 31,433                  |    |                    | (1,159  | )         |    | 11,652                  |   |      | (560    | )                       |   | 43,085  |    |   | (1,719  | )      |
| Mortgage-backed securities            | 47,644                  |    |                    | (460    | )         |    | —                 |   |      | — |                    |   | 47,644  |    |   | (460    | )      |
| Trust preferred securities            | —                 |    |                    | — |      |    | 2,067                   |   |      | (4,859  | )                       |   | 2,067   |    |   | (4,859  | )      |
| Corporate notes and other investments | —                 |    |                    | — |      |    | 3,128                   |   |      | (859    | )                       |   | 3,128   |    |   | (859    | )      |
|                                  | $                       | 121,612 |                    |    | $         | (1,859  | )                       |   | $         | 16,847  |                    |   | $       | (6,278  | )      |    | $      | 138,459 |   |   | $ | (8,137  | )      |

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|                                              |                       |        |        |        |           |        |           |        |                       |        |                 |        |                                         |        |                               |        |                                 |        |                        |        |        |      |   |        |      |   |        |      |
|----------------------------------------------|-----------------------|--------|--------|--------|-----------|--------|-----------|--------|-----------------------|--------|-----------------|--------|-----------------------------------------|--------|-------------------------------|--------|---------------------------------|--------|------------------------|--------|--------|------|---|--------|------|---|--------|------|
| As of September 30, 2010:                    |                  |   |   |   |      |   |      |   |                  |   |            |   |                                    |   |
|                                         | Single-issuerorpooled |   | Class  |   | Bookvalue |   | Fairvalue |   | Unrealizedgain/(loss) |   | Creditrating(1) |   | Number ofentitiescurrentlyperforming(2) |   | Actualdeferralsanddefaults(3) |   | Expecteddeferralsanddefaults(4) |   | Excesssubordination(4) |
| ALESCO Preferred Funding X, Ltd.             | Pooled                |   | C-2    |   | $         | 4,473  |      |   | $                     | 1,213  |            |   | $                                       | (3,260 | )                             |   | Ca                              |   | 52                     |   |   | 19.6 | % |   | 20.5 | % |   | 0.0% |
| Heartland Financial Statutory Trust VII 144A | Single                |   | n/a    |   | 1,718     |   |      | 656    |                  |   | (1,062          | )      |                                    | NR     |                          | n/a    |                            | n/a    |                   | n/a    |   | n/a  |

|                                              |                       |        |        |        |           |        |           |        |                       |        |                 |        |                                         |        |                               |        |                                 |        |                        |     |        |      |   |        |      |
|----------------------------------------------|-----------------------|--------|--------|--------|-----------|--------|-----------|--------|-----------------------|--------|-----------------|--------|-----------------------------------------|--------|-------------------------------|--------|---------------------------------|--------|------------------------|-----|--------|------|---|--------|------|
| As of December 31, 2009:                     |                  |   |   |   |      |   |      |   |                  |   |            |   |                                    |   |                          |   |
|                                         | Single-issuerorpooled |   | Class  |   | Bookvalue |   | Fairvalue |   | Unrealizedgain/(loss) |   | Creditrating(1) |   | Number ofentitiescurrentlyperforming(2) |   | Actualdeferralsanddefaults(3) |   | Expecteddeferralsanddefaults(4) |   | Excesssubordination(4) |
| ALESCO Preferred Funding X, Ltd.             | Pooled                |   | C-2    |   | 4,591     |   |      | 1,136  |                  |   | (3,455          | )      |                                    | Ca     |                          | 58     |                            |   | 18.2                   | %   |   | 19.6 | % |   | 0.0% |
| Heartland Financial Statutory Trust VII 144A | Single                |   | n/a    |   | 1,710     |   |      | 594    |                  |   | (1,116          | )      |                                    | NR     |                          | n/a    |                            | n/a    |                   | n/a |   | n/a  |
| Old Second Capital Trust I                   | Single                |   | n/a    |   | 625       |   |      | 337    |                  |   | (288            | )      |                                    | NR     |                          | n/a    |                            | n/a    |                   | n/a |   | n/a  |

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|                                                                    |                                  |        |                                 |         |        |        |         |        |        |         |        |        |   |         |        |
|--------------------------------------------------------------------|----------------------------------|--------|---------------------------------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---|---------|--------|
|                                                               | Three Months Ended September 30, |   | Nine Months Ended September 30, |
|                                                               | 2010                             |   | 2009                            |    | 2010   |   | 2009    |
| Balance at beginning of period                                     | $                                | 310    |                            |    | $      | 275    |    |   | $      | 310     |   |   | $ | — |   |
| Current period credit loss recognized in earnings                  | 117                              |   |                            | 15      |   |   | 117     |   |   | 290     |   |
| Reductions for securities sold during the period                   | —                          |   |                            | — |   |   | — |   |   | — |   |
| Reductions for securities where there is an intent to sell or |                             |   |                            |    |   |   |    |
| requirement to sell                                                | —                          |   |                            | — |   |   | — |   |   | — |   |
| Reductions for increases in cash flows expected to be collected    | —                          |   |                            | — |   |   | — |   |   | — |   |
| Balance at end of period                                           | $                                | 427    |                            |    | $      | 290    |    |   | $      | 427     |   |   | $ | 290     |   |

|                                                                                |                         |        |                        |        |   |        |   |
|--------------------------------------------------------------------------------|-------------------------|--------|------------------------|--------|---|--------|---|
|                                                                           | September 30, 2010 |   | December 31, 2009 |
| Accumulated other comprehensive (loss):                                        |                    |   |                   |
| Unrealized (losses) on available for sale securities for which a portion of    |                    |   |                   |
| other than temporary impairment has been recorded in earnings, net of tax      |                    |   |                   |
| of $1,239 and $1,313, respectively                                             | $                       | (2,021 | )                      |   | $ | (2,142 | ) |
| Unrealized gains (losses) on available for sale securities which are not other |                    |   |                   |
| than temporarily impaired, net of tax of ($796) and $1,330, respectively       | 1,299                   |   |                   | (2,169 | ) |
|                                                                           | $                       | (722   | )                      |   | $ | (4,311 | ) |

|                                                     |                         |        |                        |        |        |        |        |
|-----------------------------------------------------|-------------------------|--------|------------------------|--------|--------|--------|--------|
|                                                | September 30, 2010 |   | December 31, 2009 |
| Impaired loans without an allowance                 | $                       | 10,943 |                   |   | $      | 16,809 |   |
| Impaired loans with an allowance                    | 23,342                  |   |                   | 24,745 |   |
| Total impaired loans                                | $                       | 34,285 |                   |   | $      | 41,554 |   |
| Allowance for loan losses related to impaired loans | $                       | 3,827  |                   |   | $      | 4,935  |   |

|                                              |                         |        |                        |        |        |        |        |
|----------------------------------------------|-------------------------|--------|------------------------|--------|--------|--------|--------|
|                                         | September 30, 2010 |   | December 31, 2009 |
| Nonaccrual loans                             | $                       | 11,252 |                   |   | $      | 12,350 |   |
| Troubled debt restructured loans             | 5,194                   |   |                   | 12,817 |   |
| Other impaired loans still accruing interest | 17,839                  |   |                   | 16,387 |   |
| Total impaired loans                         | $                       | 34,285 |                   |   | $      | 41,554 |   |

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|                                 |                                  |        |                                 |        |        |        |        |        |        |        |        |        |         |        |        |         |        |        |        |        |   |       |        |
|---------------------------------|----------------------------------|--------|---------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------|--------|--------|---------|--------|--------|--------|--------|---|-------|--------|
|                            | Three Months Ended September 30, |   | Nine Months Ended September 30, |
|                            | 2010                             |   | 2009                            |   | Change |   | 2010   |   | 2009   |   | Change |
| Balance at beginning of period  | $                                | 21,091 |                            |   | $      | 23,662 |   |   | $      | (2,571 | )      |   | $       | 19,126 |   |    | $      | 15,441 |   |   | $ | 3,685 |   |
| Charge-offs                     | (4,402                           | )      |                            | (7,131 | )      |   | 2,729  |   |   | (6,085 | )      |   | (17,684 | )      |   | 11,599  |   |
| Recoveries                      | 396                              |   |                            | 127    |   |   | 269    |   |   | 644    |   |   | 401     |   |   | 243     |   |
| Net charge-offs                 | (4,006                           | )      |                            | (7,004 | )      |   | 2,998  |   |   | (5,441 | )      |   | (17,283 | )      |   | 11,842  |   |
| Provision charged to operations | 2,000                            |   |                            | 3,000  |   |   | (1,000 | )      |   | 5,400  |   |   | 21,500  |   |   | (16,100 | )      |
| Balance at end of period        | $                                | 19,085 |                            |   | $      | 19,658 |   |   | $      | (573   | )      |   | $       | 19,085 |   |    | $      | 19,658 |   |   | $ | (573  | )      |

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|                                           |                         |         |                                                                |         |                                               |         |                                           |        |        |         |        |        |   |         |        |
|-------------------------------------------|-------------------------|---------|----------------------------------------------------------------|---------|-----------------------------------------------|---------|-------------------------------------------|--------|--------|---------|--------|--------|---|---------|--------|
|                                      | September 30, 2010 |
| Description                               | Total                   |    | Quoted Prices in Active Markets for Identical Assets (Level 1) |    | Significant Other Observable Inputs (Level 2) |    | Significant Unobservable Inputs (Level 3) |
| Assets:                                   |                    |    |                                                           |    |                                          |    |                                      |
| U.S. government agencies and corporations | $                       | 102,439 |                                                           |    | $                                             | — |                                      |   | $      | 102,439 |   |   | $ | — |   |
| State and political subdivisions          | 64,154                  |    |                                                           | — |                                          |    | 64,154                                    |   |   | — |   |
| Mortgage-backed securities                | 84,313                  |    |                                                           | — |                                          |    | 84,313                                    |   |   | — |   |
| Trust preferred securities                | 1,869                   |    |                                                           | — |                                          |    | 656                                       |   |   | 1,213   |   |
| Corporate notes and other investments     | 6,005                   |    |                                                           | — |                                          |    | 6,005                                     |   |   | — |   |
| Total                                     | $                       | 258,780 |                                                           |    | $                                             | — |                                      |   | $      | 257,567 |   |   | $ | 1,213   |   |
|                                      |                    |    |                                                           |    |                                          |    |                                      |
|                                      | December 31, 2009  |
| Description                               | Total                   |    | Quoted Prices in Active Markets for Identical Assets (Level 1) |    | Significant Other Observable Inputs (Level 2) |    | Significant Unobservable Inputs (Level 3) |
| Assets:                                   |                    |    |                                                           |    |                                          |    |                                      |
| U.S. government agencies and corporations | $                       | 177,890 |                                                           |    | $                                             | — |                                      |   | $      | 177,890 |   |   | $ | — |   |
| State and political subdivisions          | 87,935                  |    |                                                           | — |                                          |    | 87,935                                    |   |   | — |   |
| Mortgage-backed securities                | 64,578                  |    |                                                           | — |                                          |    | 64,578                                    |   |   | — |   |
| Trust preferred securities                | 2,067                   |    |                                                           | — |                                          |    | 931                                       |   |   | 1,136   |   |
| Corporate notes and other investments     | 8,008                   |    |                                                           | — |                                          |    | 8,008                                     |   |   | — |   |
| Total                                     | $                       | 340,478 |                                                           |    | $                                             | — |                                      |   | $      | 339,342 |   |   | $ | 1,136   |   |

|                                        |                                  |        |                                 |         |        |        |         |        |        |         |        |        |   |       |        |
|----------------------------------------|----------------------------------|--------|---------------------------------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---|-------|--------|
|                                   | Three Months Ended September 30, |   | Nine Months Ended September 30, |
|                                   | 2010                             |   | 2009                            |    | 2010   |   | 2009    |
| Beginning balance                      | $                                | 1,659  |                            |    | $      | 1,316  |    |   | $      | 1,136   |   |   | $ | 2,325 |   |
| Transfer into level 3                  | —                          |   |                            | — |   |   | 625     |   |   | 250     |   |
| Total gains or (losses):               |                             |   |                            |    |   |   |    |
| Included in earnings                   | (117                             | )      |                            | (191    | )      |   | (305    | )      |   | (466    | )      |
| Included in other comprehensive income | 109                              |   |                            | 41      |   |   | 195     |   |   | (897    | )      |
| Sale of security                       | (438                             | )      |                            | — |   |   | (438    | )      |   | — |   |
| Principal payments                     | —                          |   |                            | — |   |   | — |   |   | (46     | )      |
| Ending balance                         | $                                | 1,213  |                            |    | $      | 1,166  |    |   | $      | 1,213   |   |   | $ | 1,166 |   |

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|                         |                         |        |                                                                |         |                                               |         |                                           |        |        |         |        |        |   |        |        |
|-------------------------|-------------------------|--------|----------------------------------------------------------------|---------|-----------------------------------------------|---------|-------------------------------------------|--------|--------|---------|--------|--------|---|--------|--------|
|                    | September 30, 2010 |
| Description             | Total                   |   | Quoted Prices in Active Markets for Identical Assets (Level 1) |    | Significant Other Observable Inputs (Level 2) |    | Significant Unobservable Inputs (Level 3) |
| Assets:                 |                    |   |                                                           |    |                                          |    |                                      |
| Loans                   | $                       | 19,515 |                                                           |    | $                                             | — |                                      |   | $      | — |   |   | $ | 19,515 |   |
| Other real estate owned | 19,740                  |   |                                                           | — |                                          |    | —                                   |   |   | 19,740  |   |
| Total                   | $                       | 39,255 |                                                           |    | $                                             | — |                                      |   | $      | — |   |   | $ | 39,255 |   |
|                    |                    |   |                                                           |    |                                          |    |                                      |
|                    | December 31, 2009  |
| Description             | Total                   |   | Quoted Prices in Active Markets for Identical Assets (Level 1) |    | Significant Other Observable Inputs (Level 2) |    | Significant Unobservable Inputs (Level 3) |
| Assets:                 |                    |   |                                                           |    |                                          |    |                                      |
| Loans                   | $                       | 19,810 |                                                           |    | $                                             | — |                                      |   | $      | — |   |   | $ | 19,810 |   |
| Other real estate owned | 25,350                  |   |                                                           | — |                                          |    | —                                   |   |   | 25,350  |   |
| Total                   | $                       | 45,160 |                                                           |    | $                                             | — |                                      |   | $      | — |   |   | $ | 45,160 |   |

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|                                                          |                         |        |                        |           |                 |        |                        |        |        |           |        |        |   |        |        |
|----------------------------------------------------------|-------------------------|--------|------------------------|-----------|-----------------|--------|------------------------|--------|--------|-----------|--------|--------|---|--------|--------|
|                                                     | September 30, 2010 |   | December 31, 2009 |
|                                                     | Carrying Amount         |   | Approximate Fair Value |      | Carrying Amount |   | Approximate Fair Value |
| Financial assets:                                        |                    |   |                   |      |            |   |                   |
| Cash and due from banks                                  | $                       | 32,979 |                   |      | $               | 32,979 |                   |   | $      | 27,923    |   |   | $ | 27,923 |   |
| Federal funds sold and other short-term investments | 55,608                  |   |                   | 55,608    |            |   | 103,572                |   |   | 103,572   |   |
| Securities available for sale                            | 258,780                 |   |                   | 258,780   |            |   | 340,478                |   |   | 340,478   |   |
| Federal Home Loan Bank stock                             | 11,055                  |   |                   | 11,055    |            |   | 10,791                 |   |   | 10,791    |   |
| Loans held for sale                                      | 3,167                   |   |                   | 3,213     |            |   | 332                    |   |   | 332       |   |
| Loans, net                                               | 907,380                 |   |                   | 915,431   |            |   | 1,001,584              |   |   | 1,006,217 |   |
| Accrued interest receivable                              | 5,642                   |   |                   | 5,642     |            |   | 5,502                  |   |   | 5,502     |   |
| Financial liabilities:                                   |                    |   |                   |      |            |   |                   |
| Deposits                                                 | 1,034,203               |   |                   | 1,038,353 |            |   | 1,246,617              |   |   | 1,250,163 |   |
| Federal funds purchased and securities sold under   |                    |   |                   |      |            |   |                   |
| agreements to repurchase                                 | 35,393                  |   |                   | 35,393    |            |   | 40,342                 |   |   | 40,342    |   |
| Other short-term borrowings                              | 1,785                   |   |                   | 1,785     |            |   | 2,553                  |   |   | 2,553     |   |
| Accrued interest payable                                 | 1,525                   |   |                   | 1,525     |            |   | 1,756                  |   |   | 1,756     |   |
| Subordinated notes                                       | 20,619                  |   |                   | 17,966    |            |   | 20,619                 |   |   | 14,387    |   |
| FHLB advances                                            | 105,000                 |   |                   | 113,579   |            |   | 125,000                |   |   | 122,177   |   |
| Off-balance-sheet financial instruments:                 |                    |   |                   |      |            |   |                   |
| Commitments to extend credit                             | —                 |   |                   | —   |            |   | —                |   |   | —   |   |
| Standby letters of credit                                | —                 |   |                   | —   |            |   | —                |   |   | —   |   |

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|                                                    |                                  |         |                                 |         |        |        |         |        |        |         |        |        |   |         |   |
|----------------------------------------------------|----------------------------------|---------|---------------------------------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---|---------|---|
|                                               | Three Months Ended September 30, |    | Nine Months Ended September 30, |
|                                               | 2010                             |    | 2009                            |    | 2010   |   | 2009    |
| Income (loss) from continuing operations           | $                                | 3,941   |                            |    | $      | 2,990  |    |   | $      | 9,883   |   |   | $ | (7,816  | ) |
| Loss from discontinued operations                  | —                          |    |                            | (1,085  | )      |   | — |   |   | (9,617  | )      |
| Net income (loss)                                  | 3,941                            |    |                            | 1,905   |   |   | 9,883   |   |   | (17,433 | )      |
| Preferred stock dividends                          | (450                             | )       |                            | (450    | )      |   | (1,350  | )      |   | (1,350  | )      |
| Preferred stock discount accretion                 | (122                             | )       |                            | (121    | )      |   | (363    | )      |   | (358    | )      |
| Net income (loss) available to common stockholders | $                                | 3,369   |                            |    | $      | 1,334  |    |   | $      | 8,170   |   |   | $ | (19,141 | ) |
|                                               |                             |    |                            |    |   |   |    |
| Weighted average common shares outstanding         | 17,404                           |    |                            | 17,404  |   |   | 17,404  |   |   | 17,404  |   |
| Common stock warrant*                              | —                          |    |                            | — |   |   | — |   |   | — |   |
| Diluted weighted average common shares outstanding | 17,404                           |    |                            | 17,404  |   |   | 17,404  |   |   | 17,404  |   |
|                                               |                             |    |                            |    |   |   |    |
| Basic earnings (loss) per common share from        |                             |    |                            |    |   |   |    |
| continuing operations                              | $                                | 0.19    |                            |    | $      | 0.14   |    |   | $      | 0.47    |   |   | $ | (0.55   | ) |
| Basic (loss) per common share from                 |                             |    |                            |    |   |   |    |
| discontinued operations                            | $                                | — |                            |    | $      | (0.06  | )       |   | $      | — |   |   | $ | (0.55   | ) |
| Basic earnings (loss) per common share             | $                                | 0.19    |                            |    | $      | 0.08   |    |   | $      | 0.47    |   |   | $ | (1.10   | ) |
|                                               |                             |    |                            |    |   |   |    |
| Diluted earnings (loss) per common share from      |                             |    |                            |    |   |   |    |
| continuing operations                              | $                                | 0.19    |                            |    | $      | 0.14   |    |   | $      | 0.47    |   |   | $ | (0.55   | ) |
| Diluted (loss) per common share from               |                             |    |                            |    |   |   |    |
| discontinued operations                            | $                                | — |                            |    | $      | (0.06  | )       |   | $      | — |   |   | $ | (0.55   | ) |
| Diluted earnings (loss) per common share           | $                                | 0.19    |                            |    | $      | 0.08   |    |   | $      | 0.47    |   |   | $ | (1.10   | ) |

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|                                                        |                         |        |                        |        |        |        |        |
|--------------------------------------------------------|-------------------------|--------|------------------------|--------|--------|--------|--------|
|                                                   | September 30, 2010 |   | December 31, 2009 |
| Allowance for loan losses                              | $                       | 7,252  |                   |   | $      | 7,268  |   |
| Intangibles                                            | 2,328                   |   |                   | 2,517  |   |
| Net unrealized losses on securities available for sale | 443                     |   |                   | 2,643  |   |
| Equity security impairment                             | —                 |   |                   | 144    |   |
| Alternative minimum tax credit and other credits       | 218                     |   |                   | 909    |   |
| State net operating loss carryforward                  | 361                     |   |                   | 296    |   |
| Capital loss carryforward                              | 3,699                   |   |                   | 3,269  |   |
| Other                                                  | (232                    | )      |                   | (514   | )      |
| Net deferred tax assets before valuation allowance     | 14,069                  |   |                   | 16,532 |   |
| Valuation allowance                                    | (4,060                  | )      |                   | (3,709 | )      |
| Net deferred tax assets                                | $                       | 10,009 |                   |   | $      | 12,823 |   |

|                              |                         |         |                        |        |        |         |        |
|------------------------------|-------------------------|---------|------------------------|--------|--------|---------|--------|
|                         | September 30, 2010 |    | December 31, 2009 |
| Commitments to extend credit | $                       | 187,826 |                   |   | $      | 202,217 |   |
| Standby letters of credit    | 15,134                  |    |                   | 18,350 |   |
|                         | $                       | 202,960 |                   |   | $      | 220,567 |   |

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|                              |                                  |           |                                 |         |        |           |          |        |        |         |         |        |         |         |          |         |           |        |         |        |           |        |         |   |         |        |        |       |         |
|------------------------------|----------------------------------|-----------|---------------------------------|---------|--------|-----------|----------|--------|--------|---------|---------|--------|---------|---------|----------|---------|-----------|--------|---------|--------|-----------|--------|---------|---|---------|--------|--------|-------|---------|
|                         | Three Months Ended September 30, |      | Nine Months Ended September 30, |
|                         | 2010                             |      | 2009                            |    | Change |      | Change % |   | 2010   |    | 2009    |   | Change  |    | Change % |
| Income (loss) from           |                             |      |                            |    |   |      |     |   |   |    |    |   |    |    |     |
| continuing operations        | $                                | 3,941     |                            |    | $      | 2,990     |     |   | $      | 951     |    |   | 31.8    |  % |     | $       | 9,883     |   |    | $      | (7,816    | )      |    | $ | 17,699  |   |   | 226.4 |  % |
| Loss from                    |                             |      |                            |    |   |      |     |   |   |    |    |   |    |    |     |
| discontinued operations | —                          |      |                            | (1,085  | )      |      | 1,085    |   |   | 100.0   |  % |   | — |    |     | (9,617  | )         |   | 9,617   |   |      | 100.0  |  % |
| Net income (loss)            | $                                | 3,941     |                            |    | $      | 1,905     |     |   | $      | 2,036   |    |   | 106.9   |  % |     | $       | 9,883     |   |    | $      | (17,433   | )      |    | $ | 27,316  |   |   | 156.7 |  % |
|                         |                             |      |                            |    |   |      |     |   |   |    |    |   |    |    |     |
| Average assets               | $                                | 1,520,657 |                            |    | $      | 1,534,591 |     |   | $      | (13,934 | )       |   | (0.9    | )%      |     | $       | 1,604,393 |   |    | $      | 1,623,205 |   |    | $ | (18,812 | )      |   | (1.2  | )%      |
| Average stockholders' equity | 143,548                          |      |                            | 131,724 |   |      | 11,824   |   |   | 9.0     |  % |   | 139,128 |    |     | 145,613 |      |   | (6,485  | )      |      | (4.5   | )%      |
| Return on average assets     | 1.03                             | %         |                            | 0.49    | %      |      | 0.54     | %      |   |    |    | 0.82   | %       |    | (1.44    | )%      |      | 2.26   |  % |   |      |
| Return on average equity     | 10.89                            | %         |                            | 5.74    | %      |      | 5.15     | %      |   |    |    | 9.50   | %       |    | (16.01   | )%      |      | 25.51  |  % |   |      |
| Efficiency ratio             | 45.84                            | %         |                            | 42.84   | %      |      | 3.00     | %      |   |    |    | 49.42  | %       |    | 46.63    |  % |      | 2.79   |  % |   |      |
| Dividend payout ratio        | NM                               |      | NM                              |    | NM     |      |     |   | NM     |    | (8.98   | )%     |    | NM      |     |    |
| Average equity to average    |                             |      |                            |    |   |      |     |   |   |    |    |   |    |    |     |
| assets ratio                 | 9.44                             | %         |                            | 8.58    | %      |      | 0.86     | %      |   |    |    | 8.67   | %       |    | 8.97     |  % |      | (0.30  | )%      |   |      |
| Equity to assets ratio -     |                             |      |                            |    |   |      |     |   |   |    |    |   |    |    |     |
| end of period                |                             |      |                            |    |   |      |     |   | 10.76  | %       |    | 8.83   |  % |    | 1.93     |  % |      |   |
| Tangible common equity       |                             |      |                            |    |   |      |     |   |   |    |    |   |    |    |     |
| ratio - end of period        |                             |      |                            |    |   |      |     |   | 8.20   | %       |    | 6.48   |  % |    | 1.72     |  % |      |   |

|                                |                                                                                    |
|--------------------------------|------------------------------------------------------------------------------------|
| •     | Return on average assets - annualized net income (loss) divided by average assets. |

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

|                                |                                                                      |
|--------------------------------|----------------------------------------------------------------------|
| •     | Dividend payout ratio - dividends paid divided by net income (loss). |

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

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

|                                |                      |
|--------------------------------|----------------------|
| •     | NM - not meaningful. |

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|                                               |                 |           |                         |           |            |           |          |        |        |         |         |        |        |        |          |        |        |        |        |        |        |        |         |         |        |        |        |        |    |        |       |         |        |       |    |        |      |         |
|-----------------------------------------------|-----------------|-----------|-------------------------|-----------|------------|-----------|----------|--------|--------|---------|---------|--------|--------|--------|----------|--------|--------|--------|--------|--------|--------|--------|---------|---------|--------|--------|--------|--------|----|--------|-------|---------|--------|-------|----|--------|------|---------|
| Data for the three months ended September 30: |            |      |                    |      |       |      |     |   |   |    |    |   |   |   |
|                                          |            |      |                    |      |       |      |     |   |   |    |    |   |   |   |     |   |   |   |   |   |   |
|                                          | Average Balance |      | Interest Income/Expense |      | Yield/Rate |
|                                          | 2010            |      | 2009                    |      | Change     |      | Change-% |   | 2010   |    | 2009    |   | Change |   | Change-% |   | 2010   |   | 2009   |   | Change |
| Interest-earning assets:                      |            |      |                    |      |       |      |     |   |   |    |    |   |   |   |     |   |   |   |   |   |   |
| Loans:                                        |            |      |                    |      |       |      |     |   |   |    |    |   |   |   |     |   |   |   |   |   |   |
| Commercial                                    | $               | 336,771   |                    |      | $          | 409,707   |     |   | $      | (72,936 | )       |   | (17.80 | )%     |     | $      | 4,217  |   |   | $      | 5,054  |   |    | $       | (837   | )      |   | (16.56 | )% |   | 4.97  | %       |   | 4.89  | %  |   | 0.08 |  % |
| Real estate                                   | 610,305         |      |                    | 684,799   |       |      | (74,494  | )      |   | (10.88  | )%      |   | 9,137  |   |     | 9,912  |   |   | (775   | )      |   | (7.82  | )%      |    | 5.94   | %      |   | 5.74   | %  |   | 0.20  |  % |
| Consumer and other                            | 10,289          |      |                    | 9,719     |       |      | 570      |   |   | 5.86    |  % |   | 128    |   |     | 153    |   |   | (25    | )      |   | (16.34 | )%      |    | 4.94   | %      |   | 6.26   | %  |   | (1.32 | )%      |
| Total loans                                   | 957,365         |      |                    | 1,104,225 |       |      | (146,860 | )      |   | (13.30  | )%      |   | 13,482 |   |     | 15,119 |   |   | (1,637 | )      |   | (10.83 | )%      |    | 5.59   | %      |   | 5.43   | %  |   | 0.16  |  % |
|                                          |            |      |                    |      |       |      |     |   |   |    |    |   |   |   |     |   |   |   |   |   |   |
| Investment securities:                        |            |      |                    |      |       |      |     |   |   |    |    |   |   |   |     |   |   |   |   |   |   |
| Taxable                                       | 219,876         |      |                    | 161,446   |       |      | 58,430   |   |   | 36.19   |  % |   | 1,058  |   |     | 1,219  |   |   | (161   | )      |   | (13.21 | )%      |    | 1.92   | %      |   | 3.02   | %  |   | (1.10 | )%      |
| Tax-exempt                                    | 69,200          |      |                    | 97,380    |       |      | (28,180  | )      |   | (28.94  | )%      |   | 1,078  |   |     | 1,477  |   |   | (399   | )      |   | (27.01 | )%      |    | 6.23   | %      |   | 6.07   | %  |   | 0.16  |  % |
| Total investment securities                   | 289,076         |      |                    | 258,826   |       |      | 30,250   |   |   | 11.69   |  % |   | 2,136  |   |     | 2,696  |   |   | (560   | )      |   | (20.77 | )%      |    | 2.96   | %      |   | 4.17   | %  |   | (1.21 | )%      |
|                                          |            |      |                    |      |       |      |     |   |   |    |    |   |   |   |     |   |   |   |   |   |   |
| Federal funds sold and short-                 |            |      |                    |      |       |      |     |   |   |    |    |   |   |   |     |   |   |   |   |   |   |
| term investments                              | 176,443         |      |                    | 97,188    |       |      | 79,255   |   |   | 81.55   |  % |   | 116    |   |     | 73     |   |   | 43     |   |   | 58.90  |  % |    | 0.26   | %      |   | 0.30   | %  |   | (0.04 | )%      |
| Total interest-earning assets                 | $               | 1,422,884 |                    |      | $          | 1,460,239 |     |   | $      | (37,355 | )       |   | (2.56  | )%     |     | 15,734 |   |   | 17,888 |   |   | (2,154 | )       |    | (12.04 | )%     |   | 4.39   | %  |   | 4.86  | %       |   | (0.47 | )% |
|                                          |            |      |                    |      |       |      |     |   |   |    |    |   |   |   |     |   |   |   |   |   |   |
| Interest-bearing liabilities:                 |            |      |                    |      |       |      |     |   |   |    |    |   |   |   |     |   |   |   |   |   |   |
| Deposits:                                     |            |      |                    |      |       |      |     |   |   |    |    |   |   |   |     |   |   |   |   |   |   |
| Checking with interest,                       |            |      |                    |      |       |      |     |   |   |    |    |   |   |   |     |   |   |   |   |   |   |
| savings and money markets                     | $               | 481,096   |                    |      | $          | 534,134   |     |   | $      | (53,038 | )       |   | (9.93  | )%     |     | 1,196  |   |   | 1,999  |   |   | (803   | )       |    | (40.17 | )%     |   | 0.99   | %  |   | 1.49  | %       |   | (0.50 | )% |
| Time deposits                                 | 473,831         |      |                    | 443,460   |       |      | 30,371   |   |   | 6.85    |  % |   | 1,838  |   |     | 2,673  |   |   | (835   | )      |   | (31.24 | )%      |    | 1.54   | %      |   | 2.39   | %  |   | (0.85 | )%      |
| Total deposits                                | 954,927         |      |                    | 977,594   |       |      | (22,667  | )      |   | (2.32   | )%      |   | 3,034  |   |     | 4,672  |   |   | (1,638 | )      |   | (35.06 | )%      |    | 1.26   | %      |   | 1.90   | %  |   | (0.64 | )%      |
| Other borrowed funds                          | 181,558         |      |                    | 205,785   |       |      | (24,227  | )      |   | (11.77  | )%      |   | 1,453  |   |     | 1,771  |   |   | (318   | )      |   | (17.96 | )%      |    | 3.18   | %      |   | 3.41   | %  |   | (0.23 | )%      |
| Total interest-bearing                        |            |      |                    |      |       |      |     |   |   |    |    |   |   |   |     |   |   |   |   |   |   |
| liabilities                                   | $               | 1,136,485 |                    |      | $          | 1,183,379 |     |   | $      | (46,894 | )       |   | (3.96  | )%     |     | 4,487  |   |   | 6,443  |   |   | (1,956 | )       |    | (30.36 | )%     |   | 1.57   | %  |   | 2.16  | %       |   | (0.59 | )% |
|                                          |            |      |                    |      |       |      |     |   |   |    |    |   |   |   |     |   |   |   |   |   |   |
| Tax-equivalent net interest income            |            |      |                    |      |       |      |     | $      | 11,247 |    |    | $      | 11,445 |   |     | $      | (198   | )      |   | (1.73  | )%     |   |    |    |   |   |   |
| Net interest spread                           |            |      |                    |      |       |      |     |   |   |    |    |   |   |   |     |   | 2.82   | %      |   | 2.70   | %      |   | 0.12    |  % |
| Net interest margin                           |            |      |                    |      |       |      |     |   |   |    |    |   |   |   |     |   | 3.14   | %      |   | 3.11   | %      |   | 0.03    |  % |

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|                                              |                 |           |                         |           |            |           |          |        |        |         |         |        |        |         |          |        |        |        |        |        |        |        |         |         |        |         |        |        |    |        |       |         |        |       |    |        |      |         |
|----------------------------------------------|-----------------|-----------|-------------------------|-----------|------------|-----------|----------|--------|--------|---------|---------|--------|--------|---------|----------|--------|--------|--------|--------|--------|--------|--------|---------|---------|--------|---------|--------|--------|----|--------|-------|---------|--------|-------|----|--------|------|---------|
| Data for the nine months ended September 30: |            |      |                    |      |       |      |     |   |   |    |    |   |   |    |     |   |
|                                         |            |      |                    |      |       |      |     |   |   |    |    |   |   |    |     |   |   |   |   |   |   |
|                                         | Average Balance |      | Interest Income/Expense |      | Yield/Rate |
|                                         | 2010            |      | 2009                    |      | Change     |      | Change-% |   | 2010   |    | 2009    |   | Change |    | Change-% |   | 2010   |   | 2009   |   | Change |
| Interest-earning assets:                     |            |      |                    |      |       |      |     |   |   |    |    |   |   |    |     |   |   |   |   |   |   |
| Loans:                                       |            |      |                    |      |       |      |     |   |   |    |    |   |   |    |     |   |   |   |   |   |   |
| Commercial                                   | $               | 344,963   |                    |      | $          | 406,040   |     |   | $      | (61,077 | )       |   | (15.04 | )%      |     | $      | 12,821 |   |   | $      | 14,772 |   |    | $       | (1,951 | )       |   | (13.21 | )% |   | 4.97  | %       |   | 4.86  | %  |   | 0.11 |  % |
| Real estate                                  | 624,386         |      |                    | 699,945   |       |      | (75,559  | )      |   | (10.79  | )%      |   | 27,904 |    |     | 30,315 |   |   | (2,411 | )      |   | (7.95  | )%      |    | 5.98   | %       |   | 5.79   | %  |   | 0.19  |  % |
| Consumer and other                           | 10,534          |      |                    | 10,757    |       |      | (223     | )      |   | (2.07   | )%      |   | 396    |    |     | 509    |   |   | (113   | )      |   | (22.20 | )%      |    | 5.03   | %       |   | 6.33   | %  |   | (1.30 | )%      |
| Total loans                                  | 979,883         |      |                    | 1,116,742 |       |      | (136,859 | )      |   | (12.26  | )%      |   | 41,121 |    |     | 45,596 |   |   | (4,475 | )      |   | (9.81  | )%      |    | 5.61   | %       |   | 5.46   | %  |   | 0.15  |  % |
|                                         |            |      |                    |      |       |      |     |   |   |    |    |   |   |    |     |   |   |   |   |   |   |
| Investment securities:                       |            |      |                    |      |       |      |     |   |   |    |    |   |   |    |     |   |   |   |   |   |   |
| Taxable                                      | 236,126         |      |                    | 118,826   |       |      | 117,300  |   |   | 98.72   |  % |   | 3,307  |    |     | 2,985  |   |   | 322    |   |   | 10.79  |  % |    | 1.87   | %       |   | 3.35   | %  |   | (1.48 | )%      |
| Tax-exempt                                   | 77,006          |      |                    | 96,739    |       |      | (19,733  | )      |   | (20.40  | )%      |   | 3,592  |    |     | 4,444  |   |   | (852   | )      |   | (19.17 | )%      |    | 6.22   | %       |   | 6.13   | %  |   | 0.09  |  % |
| Total investment securities                  | 313,132         |      |                    | 215,565   |       |      | 97,567   |   |   | 45.26   |  % |   | 6,899  |    |     | 7,429  |   |   | (530   | )      |   | (7.13  | )%      |    | 2.94   | %       |   | 4.59   | %  |   | (1.65 | )%      |
|                                         |            |      |                    |      |       |      |     |   |   |    |    |   |   |    |     |   |   |   |   |   |   |
| Federal funds sold and short-                |            |      |                    |      |       |      |     |   |   |    |    |   |   |    |     |   |   |   |   |   |   |
| term investments                             | 212,685         |      |                    | 203,625   |       |      | 9,060    |   |   | 4.45    |  % |   | 446    |    |     | 384    |   |   | 62     |   |   | 16.15  |  % |    | 0.28   | %       |   | 0.25   | %  |   | 0.03  |  % |
| Total interest-earning assets                | $               | 1,505,700 |                    |      | $          | 1,535,932 |     |   | $      | (30,232 | )       |   | (1.97  | )%      |     | 48,466 |   |   | 53,409 |   |   | (4,943 | )       |    | (9.25  | )%      |   | 4.30   | %  |   | 4.65  | %       |   | (0.35 | )% |
|                                         |            |      |                    |      |       |      |     |   |   |    |    |   |   |    |     |   |   |   |   |   |   |
| Interest-bearing liabilities:                |            |      |                    |      |       |      |     |   |   |    |    |   |   |    |     |   |   |   |   |   |   |
| Deposits:                                    |            |      |                    |      |       |      |     |   |   |    |    |   |   |    |     |   |   |   |   |   |   |
| Checking with interest,                      |            |      |                    |      |       |      |     |   |   |    |    |   |   |    |     |   |   |   |   |   |   |
| savings and money markets                    | $               | 598,825   |                    |      | $          | 477,760   |     |   | $      | 121,065 |    |   | 25.34  |  % |     | 5,394  |   |   | 4,678  |   |   | 716    |    |    | 15.31  |  % |   | 1.20   | %  |   | 1.31  | %       |   | (0.11 | )% |
| Time deposits                                | 443,342         |      |                    | 558,609   |       |      | (115,267 | )      |   | (20.63  | )%      |   | 5,653  |    |     | 10,564 |   |   | (4,911 | )      |   | (46.49 | )%      |    | 1.70   | %       |   | 2.53   | %  |   | (0.83 | )%      |
| Total deposits                               | 1,042,167       |      |                    | 1,036,369 |       |      | 5,798    |   |   | 0.56    |  % |   | 11,047 |    |     | 15,242 |   |   | (4,195 | )      |   | (27.52 | )%      |    | 1.42   | %       |   | 1.97   | %  |   | (0.55 | )%      |
| Other borrowed funds                         | 193,827         |      |                    | 232,615   |       |      | (38,788  | )      |   | (16.67  | )%      |   | 4,556  |    |     | 5,302  |   |   | (746   | )      |   | (14.07 | )%      |    | 3.14   | %       |   | 3.05   | %  |   | 0.09  |  % |
| Total interest-bearing                       |            |      |                    |      |       |      |     |   |   |    |    |   |   |    |     |   |   |   |   |   |   |
| liabilities                                  | $               | 1,235,994 |                    |      | $          | 1,268,984 |     |   | $      | (32,990 | )       |   | (2.60  | )%      |     | 15,603 |   |   | 20,544 |   |   | (4,941 | )       |    | (24.05 | )%      |   | 1.69   | %  |   | 2.16  | %       |   | (0.47 | )% |
|                                         |            |      |                    |      |       |      |     |   |   |    |    |   |   |    |     |   |   |   |   |   |   |
| Tax-equivalent net interest income           |            |      |                    |      |       |      |     | $      | 32,863 |    |    | $      | 32,865 |    |     | $      | (2     | )      |   | (0.01  | )%     |   |    |    |   |    |   |
| Net interest spread                          |            |      |                    |      |       |      |     |   |   |    |    |   |   |    |     |   | 2.61   | %      |   | 2.49   | %      |   | 0.12    |  % |
| Net interest margin                          |            |      |                    |      |       |      |     |   |   |    |    |   |   |    |     |   | 2.92   | %      |   | 2.86   | %      |   | 0.06    |  % |

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|                                    |                                  |         |                                 |        |        |           |        |        |        |        |        |         |         |        |        |           |        |        |        |        |   |       |        |
|------------------------------------|----------------------------------|---------|---------------------------------|--------|--------|-----------|--------|--------|--------|--------|--------|---------|---------|--------|--------|-----------|--------|--------|--------|--------|---|-------|--------|
|                               | Three Months Ended September 30, |    | Nine Months Ended September 30, |
|                               | 2010                             |    | 2009                            |   | Change |      | 2010   |   | 2009   |   | Change |
| Balance at beginning of period     | $                                | 21,091  |                            |   | $      | 23,662    |   |   | $      | (2,571 | )      |    | $       | 19,126 |   |      | $      | 15,441 |   |   | $ | 3,685 |   |
| Charge-offs                        | (4,402                           | )       |                            | (7,131 | )      |      | 2,729  |   |   | (6,085 | )      |    | (17,684 | )      |   | 11,599    |   |
| Recoveries                         | 396                              |    |                            | 127    |   |      | 269    |   |   | 644    |   |    | 401     |   |   | 243       |   |
| Net charge-offs                    | (4,006                           | )       |                            | (7,004 | )      |      | 2,998  |   |   | (5,441 | )      |    | (17,283 | )      |   | 11,842    |   |
| Provision charged to operations    | 2,000                            |    |                            | 3,000  |   |      | (1,000 | )      |   | 5,400  |   |    | 21,500  |   |   | (16,100   | )      |
| Balance at end of period           | $                                | 19,085  |                            |   | $      | 19,658    |   |   | $      | (573   | )      |    | $       | 19,085 |   |      | $      | 19,658 |   |   | $ | (573  | )      |
|                               |                             |    |                            |   |   |      |   |   |   |   |   |
| Average loans outstanding          | $                                | 957,365 |                            |   | $      | 1,104,225 |   |   |   |   | $      | 979,883 |    |   | $      | 1,116,742 |   |   |   |
|                               |                             |    |                            |   |   |      |   |   |   |   |   |
| Annualized net charge-offs to      |                             |    |                            |   |   |      |   |   |   |   |   |
| average loans outstanding          | 1.67                             | %       |                            | 2.54   | %      |      |   |   | 0.74   | %      |   | 2.06    | %       |   |   |
| Ratio of allowance for loan losses |                             |    |                            |   |   |      |   |   |   |   |   |
| to average loans outstanding       | 1.99                             | %       |                            | 1.78   | %      |      |   |   | 1.95   | %      |   | 1.76    | %       |   |   |

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|                                                     |                                  |        |        |         |        |        |          |        |        |        |         |        |        |         |
|-----------------------------------------------------|----------------------------------|--------|--------|---------|--------|--------|----------|--------|--------|--------|---------|--------|--------|---------|
|                                                | Three Months Ended September 30, |
| Noninterest income:                                 | 2010                             |   | 2009   |    | Change |   | Change % |
| Service charges on deposit accounts                 | $                                | 867    |   |    | $      | 1,078  |     |   | $      | (211   | )       |   | (19.57 | )%      |
| Debit card usage fees                               | 338                              |   |   | 296     |   |   | 42       |   |   | 14.19  |  % |
| Service fee from SmartyPig, LLC                     | 253                              |   |   | — |   |   | 253      |   |   | N/A    |
| Trust services                                      | 210                              |   |   | 222     |   |   | (12      | )      |   | (5.41  | )%      |
| Gains and fees on sales of residential mortgages    | 571                              |   |   | 324     |   |   | 247      |   |   | 76.23  |  % |
| Increase in cash value of bank-owned life insurance | 220                              |   |   | 199     |   |   | 21       |   |   | 10.55  |  % |
| Gain from bank-owned life insurance                 | 420                              |   |   | — |   |   | 420      |   |   | N/A    |
| Other:                                              |                             |   |   |    |   |   |     |
| Visa/Mastercard income                              | 47                               |   |   | 45      |   |   | 2        |   |   | 4.44   |  % |
| Wire transfer fees                                  | 45                               |   |   | 37      |   |   | 8        |   |   | 21.62  |  % |
| All other                                           | 136                              |   |   | 150     |   |   | (14      | )      |   | (9.33  | )%      |
| Total other                                         | 228                              |   |   | 232     |   |   | (4       | )      |   | (1.72  | )%      |
| Total noninterest income                            | $                                | 3,107  |   |    | $      | 2,351  |     |   | $      | 756    |    |   | 32.16  |  % |
|                                                |                             |   |   |    |   |   |     |
|                                                | Nine Months Ended September 30,  |
| Noninterest income:                                 | 2010                             |   | 2009   |    | Change |   | Change % |
| Service charges on deposit accounts                 | $                                | 2,525  |   |    | $      | 3,120  |     |   | $      | (595   | )       |   | (19.07 | )%      |
| Debit card usage fees                               | 994                              |   |   | 825     |   |   | 169      |   |   | 20.48  |  % |
| Service fee from SmartyPig, LLC                     | 1,314                            |   |   | — |   |   | 1,314    |   |   | N/A    |
| Trust services                                      | 616                              |   |   | 581     |   |   | 35       |   |   | 6.02   |  % |
| Gains and fees on sales of residential mortgages    | 1,044                            |   |   | 859     |   |   | 185      |   |   | 21.54  |  % |
| Increase in cash value of bank-owned life insurance | 664                              |   |   | 562     |   |   | 102      |   |   | 18.15  |  % |
| Gain from bank-owned life insurance                 | 420                              |   |   | 840     |   |   | (420     | )      |   | (50.00 | )%      |
| Other:                                              |                             |   |   |    |   |   |     |
| Visa/Mastercard income                              | 145                              |   |   | 129     |   |   | 16       |   |   | 12.40  |  % |
| Wire transfer fees                                  | 126                              |   |   | 107     |   |   | 19       |   |   | 17.76  |  % |
| All other                                           | 450                              |   |   | 498     |   |   | (48      | )      |   | (9.64  | )%      |
| Total other                                         | 721                              |   |   | 734     |   |   | (13      | )      |   | (1.77  | )%      |
| Total noninterest income                            | $                                | 8,298  |   |    | $      | 7,521  |     |   | $      | 777    |    |   | 10.33  |  % |

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|                                 |                                  |        |        |         |        |        |          |        |        |          |         |        |        |         |
|---------------------------------|----------------------------------|--------|--------|---------|--------|--------|----------|--------|--------|----------|---------|--------|--------|---------|
|                            | Three Months Ended September 30, |
| Noninterest expense:            | 2010                             |   | 2009   |    | Change |   | Change % |
| Salaries and employee benefits  | $                                | 2,813  |   |    | $      | 2,294  |     |   | $      | 519      |    |   | 22.62  |  % |
| Occupancy                       | 806                              |   |   | 794     |   |   | 12       |   |   | 1.51     |  % |
| Data processing                 | 464                              |   |   | 455     |   |   | 9        |   |   | 1.98     |  % |
| FDIC insurance expense          | 835                              |   |   | 531     |   |   | 304      |   |   | 57.25    |  % |
| Other real estate owned expense | (3                               | )      |   | 90      |   |   | (93      | )      |   | (103.33  | )%      |
| Professional fees               | 230                              |   |   | 313     |   |   | (83      | )      |   | (26.52   | )%      |
| Miscellaneous losses            | 220                              |   |   | 27      |   |   | 193      |   |   | 714.81   |  % |
| Other:                          |                             |   |   |    |   |   |     |
| Marketing                       | 119                              |   |   | 118     |   |   | 1        |   |   | 0.85     |  % |
| Consulting fees                 | 62                               |   |   | 73      |   |   | (11      | )      |   | (15.07   | )%      |
| Director fees                   | 86                               |   |   | 67      |   |   | 19       |   |   | 28.36    |  % |
| Insurance expense               | 94                               |   |   | 75      |   |   | 19       |   |   | 25.33    |  % |
| Bank service charges and fees   | 134                              |   |   | 100     |   |   | 34       |   |   | 34.00    |  % |
| Deposit operations expense      | 100                              |   |   | 391     |   |   | (291     | )      |   | (74.42   | )%      |
| Charitable contributions        | 38                               |   |   | — |   |   | 38       |   |   | N/A      |
| All other                       | 583                              |   |   | 580     |   |   | 3        |   |   | 0.52     |  % |
| Total other                     | 1,216                            |   |   | 1,404   |   |   | (188     | )      |   | (13.39   | )%      |
| Total noninterest expense       | $                                | 6,581  |   |    | $      | 5,908  |     |   | $      | 673      |    |   | 11.39  |  % |
|                            |                             |   |   |    |   |   |     |
|                            | Nine Months Ended September 30,  |
| Noninterest expense:            | 2010                             |   | 2009   |    | Change |   | Change % |
| Salaries and employee benefits  | $                                | 8,180  |   |    | $      | 7,494  |     |   | $      | 686      |    |   | 9.15   |  % |
| Occupancy                       | 2,403                            |   |   | 2,637   |   |   | (234     | )      |   | (8.87    | )%      |
| Data processing                 | 1,366                            |   |   | 1,312   |   |   | 54       |   |   | 4.12     |  % |
| FDIC insurance expense          | 2,280                            |   |   | 2,267   |   |   | 13       |   |   | 0.57     |  % |
| Other real estate owned expense | 657                              |   |   | 215     |   |   | 442      |   |   | 205.58   |  % |
| Professional fees               | 704                              |   |   | 804     |   |   | (100     | )      |   | (12.44   | )%      |
| Miscellaneous losses            | 1,208                            |   |   | 59      |   |   | 1,149    |   |   | 1,947.46 |  % |
| Goodwill impairment             | —                          |   |   | 13,376  |   |   | (13,376  | )      |   | (100.00  | )%      |
| Other:                          |                             |   |   |    |   |   |     |
| Marketing                       | 311                              |   |   | 403     |   |   | (92      | )      |   | (22.83   | )%      |
| Consulting fees                 | 185                              |   |   | 235     |   |   | (50      | )      |   | (21.28   | )%      |
| Director fees                   | 260                              |   |   | 197     |   |   | 63       |   |   | 31.98    |  % |
| Insurance expense               | 289                              |   |   | 205     |   |   | 84       |   |   | 40.98    |  % |
| Bank service charges and fees   | 430                              |   |   | 255     |   |   | 175      |   |   | 68.63    |  % |
| Deposit operations expense      | 290                              |   |   | 767     |   |   | (477     | )      |   | (62.19   | )%      |
| Charitable contributions        | 113                              |   |   | 200     |   |   | (87      | )      |   | (43.50   | )%      |
| All other                       | 1,667                            |   |   | 1,780   |   |   | (113     | )      |   | (6.35    | )%      |
| Total other                     | 3,545                            |   |   | 4,042   |   |   | (497     | )      |   | (12.30   | )%      |
| Total noninterest expense       | $                                | 20,343 |   |    | $      | 32,206 |     |   | $      | (11,863  | )       |   | (36.83 | )%      |

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|                                                   |                         |         |                        |        |     |        |        |        |         |        |        |     |   |
|---------------------------------------------------|-------------------------|---------|------------------------|--------|-----|--------|--------|--------|---------|--------|--------|-----|---|
| Commercial loans:                                 | September 30, 2010 |    | December 31, 2009 |
|                                              | $                       |    | %                      |   | $   |   | %      |
| Finance and insurance                             | $                       | 81,214  |                   |   | 26  | %      |   | $      | 88,960  |   |   | 25  | % |
| Real estate and rental/leasing                    | 38,117                  |    |                   | 12     | %   |   | 42,747 |   |    | 12     | %      |
| Manufacturing                                     | 32,509                  |    |                   | 10     | %   |   | 41,112 |   |    | 12     | %      |
| Publishing, broadcasting and information services | 27,807                  |    |                   | 9      | %   |   | 28,987 |   |    | 8      | %      |
| Construction                                      | 7,709                   |    |                   | 2      | %   |   | 5,019  |   |    | 1      | %      |
| Wholesale trade                                   | 11,610                  |    |                   | 4      | %   |   | 10,946 |   |    | 3      | %      |
| Building trades                                   | 17,546                  |    |                   | 5      | %   |   | 20,121 |   |    | 6      | %      |
| Transportation and warehousing                    | 16,119                  |    |                   | 5      | %   |   | 12,367 |   |    | 3      | %      |
| Retail                                            | 8,841                   |    |                   | 3      | %   |   | 10,125 |   |    | 3      | %      |
| Arts, entertainment and recreation                | 13,106                  |    |                   | 4      | %   |   | 11,091 |   |    | 3      | %      |
| Other                                             | 62,454                  |    |                   | 20     | %   |   | 85,545 |   |    | 24     | %      |
|                                              | $                       | 317,032 |                   |   | 100 | %      |   | $      | 357,020 |   |   | 100 | % |

|                                                 |                         |         |                        |        |        |        |        |        |         |        |        |     |   |
|-------------------------------------------------|-------------------------|---------|------------------------|--------|--------|--------|--------|--------|---------|--------|--------|-----|---|
| Construction, land, and land development loans: | September 30, 2010 |    | December 31, 2009 |
|                                            | $                       |    | %                      |   | $      |   | %      |
| Land development:                               |                    |    |                   |   |   |   |   |
| 1-4 family                                      | $                       | 20,272  |                   |   | 15     | %      |   | $      | 19,092  |   |   | 13  | % |
| Other construction and development              | 31,089                  |    |                   | 23     | %      |   | 38,863 |   |    | 26     | %      |
| Land:                                           |                    |    |                   |   |   |   |   |
| Agricultural                                    | 16,291                  |    |                   | 12     | %      |   | 12,798 |   |    | 8      | %      |
| Construction:                                   |                    |    |                   |   |   |   |   |
| 1-4 family:                                     |                    |    |                   |   |   |   |   |
| Owner occupied                                  | 3,119                   |    |                   | 2      | %      |   | 4,325  |   |    | 3      | %      |
| Nonowner occupied                               | 10,721                  |    |                   | 8      | %      |   | 20,466 |   |    | 14     | %      |
| Multifamily                                     | 5,865                   |    |                   | 5      | %      |   | 8,899  |   |    | 6      | %      |
| Industrial, commercial and other                | 46,949                  |    |                   | 35     | %      |   | 44,062 |   |    | 30     | %      |
|                                            | $                       | 134,306 |                   |   | 100    | %      |   | $      | 148,505 |   |   | 100 | % |

|                               |                         |         |                        |        |         |        |         |        |         |        |        |     |   |
|-------------------------------|-------------------------|---------|------------------------|--------|---------|--------|---------|--------|---------|--------|--------|-----|---|
| Commercial real estate loans: | September 30, 2010 |    | December 31, 2009 |
|                          |  $                 |    | %                      |   |  $ |   | %       |
| Owner occupied                | $                       | 205,177 |                   |   | 53      | %      |    | $      | 203,432 |   |   | 49  | % |
| Nonowner occupied:            |                    |    |                   |   |    |   |    |
| Medical/retirement            | 52,128                  |    |                   | 13     | %       |   | 51,731  |   |    | 13     | %      |
| Retail                        | 41,867                  |    |                   | 11     | %       |   | 47,225  |   |    | 12     | %      |
| Multifamily                   | 32,877                  |    |                   | 9      | %       |   | 34,321  |   |    | 8      | %      |
| Office                        | 18,292                  |    |                   | 5      | %       |   | 38,424  |   |    | 9      | %      |
| Warehouse                     | 8,664                   |    |                   | 2      | %       |   | 15,123  |   |    | 4      | %      |
| Hotel                         | 8,615                   |    |                   | 2      | %       |   | 8,440   |   |    | 2      | %      |
| Other                         | 17,894                  |    |                   | 5      | %       |   | 13,743  |   |    | 3      | %      |
| Total nonowner occupied       | 180,337                 |    |                   | 47     | %       |   | 209,007 |   |    | 51     | %      |
|                          | $                       | 385,514 |                   |   | 100     | %      |    | $      | 412,439 |   |   | 100 | % |

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|                                                     |                         |        |                        |         |        |        |         |        |   |         |   |
|-----------------------------------------------------|-------------------------|--------|------------------------|---------|--------|--------|---------|--------|---|---------|---|
|                                                | September 30, 2010 |   | December 31, 2009 |    | Change |
| Nonaccrual loans:                                   |                    |   |                   |    |   |
| Commercial                                          | $                       | 4,163  |                   |    | $      | 9,846  |    |   | $ | (5,683  | ) |
| Real estate:                                        |                    |   |                   |    |   |
| Construction, land, and land development            | 360                     |   |                   | 1,399   |   |   | (1,039  | )      |
| 1-4 family residential first mortgages              | 1,187                   |   |                   | 597     |   |   | 590     |   |
| Home equity                                         | 93                      |   |                   | 266     |   |   | (173    | )      |
| Commercial                                          | 4,299                   |   |                   | 214     |   |   | 4,085   |   |
| Consumer and other loans                            | 1,150                   |   |                   | 28      |   |   | 1,122   |   |
| Total nonaccrual loans                              | 11,252                  |   |                   | 12,350  |   |   | (1,098  | )      |
| Loans past due 90 days and still accruing interest: |                    |   |                   |    |   |
| Commercial                                          | —                 |   |                   | — |   |   | — |   |
| Real estate:                                        |                    |   |                   |    |   |
| Construction, land, and land development            | —                 |   |                   | — |   |   | — |   |
| 1-4 family residential first mortgages              | —                 |   |                   | — |   |   | — |   |
| Home equity                                         | —                 |   |                   | — |   |   | — |   |
| Commercial                                          | —                 |   |                   | — |   |   | — |   |
| Consumer and other loans                            | —                 |   |                   | 1,150   |   |   | (1,150  | )      |
| Total past due 90 days and still accruing interest  | —                 |   |                   | 1,150   |   |   | (1,150  | )      |
| Troubled debt restructured loans:                   |                    |   |                   |    |   |
| Commercial                                          | 245                     |   |                   | 6,168   |   |   | (5,923  | )      |
| Real estate:                                        |                    |   |                   |    |   |
| Construction, land, and land development            | 1,202                   |   |                   | 84      |   |   | 1,118   |   |
| 1-4 family residential first mortgages              | —                 |   |                   | 523     |   |   | (523    | )      |
| Home equity                                         | —                 |   |                   | — |   |   | — |   |
| Commercial                                          | 3,592                   |   |                   | 6,024   |   |   | (2,432  | )      |
| Consumer and other loans                            | 155                     |   |                   | 18      |   |   | 137     |   |
| Total troubled debt restructured loans              | 5,194                   |   |                   | 12,817  |   |   | (7,623  | )      |
| Total nonperforming loans                           | 16,446                  |   |                   | 26,317  |   |   | (9,871  | )      |
| Other real estate owned                             | 19,740                  |   |                   | 25,350  |   |   | (5,610  | )      |
| Nonaccrual investment securities                    | 1,213                   |   |                   | 1,282   |   |   | (69     | )      |
| Total nonperforming assets                          | $                       | 37,399 |                   |    | $      | 52,949 |    |   | $ | (15,550 | ) |
|                                                |                    |   |                   |    |   |
| Nonperforming loans to total loans                  | 1.78                    | %      |                   | 2.58    | %      |   | (0.80   | )%     |
| Nonperforming assets to total assets                | 2.77                    | %      |                   | 3.36    | %      |   | (0.59   | )%     |

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|                               |            |        |                                                    |         |                            |         |                           |        |                         |         |                                  |        |                            |        |        |         |        |        |         |        |   |       |        |        |   |        |        |
|-------------------------------|------------|--------|----------------------------------------------------|---------|----------------------------|---------|---------------------------|--------|-------------------------|---------|----------------------------------|--------|----------------------------|--------|--------|---------|--------|--------|---------|--------|---|-------|--------|--------|---|--------|--------|
|                          | Nonaccrual |   | Loans Past Due 90 Days and Still Accruing Interest |    | Troubled Debt Restructured |    | Total Nonperforming Loans |   | Other Real Estate Owned |    | Nonaccrual lnvestment Securities |   | Total Nonperforming Assets |
| Balance at beginning          |       |   |                                               |    |                       |    |                      |   |                    |    |                             |   |                       |
| of period                     | $          | 12,350 |                                               |    | $                          | 1,150   |                      |   | $                       | 12,817  |                             |   | $                          | 26,317 |   |    | $      | 25,350 |    |   | $ | 1,282 |   |   | $ | 52,949 |   |
| Increase in fair market value | —    |   |                                               | — |                       |    | —                   |   |                    | — |                             |   | —                    |   |   | 195     |   |   | 195     |   |
| Additions                     | 4,667      |   |                                               | 2,828   |                       |    | 5,109                     |   |                    | 12,604  |                             |   | 5,159                      |   |   | 625     |   |   | 18,388  |   |
| Transfers:                    |       |   |                                               |    |                       |    |                      |   |                    |    |                             |   |                       |
| Past due to nonaccrual        | 1,738      |   |                                               | (1,738  | )                          |    | —                   |   |                    | — |                             |   | —                    |   |   | — |   |   | — |   |
| Troubled debt to nonaccrual   | 2,891      |   |                                               | — |                       |    | (2,891                    | )      |                    | — |                             |   | —                    |   |   | — |   |   | — |   |
| Troubled debt to past due     | —    |   |                                               | 13      |                       |    | (13                       | )      |                    | — |                             |   | —                    |   |   | — |   |   | — |   |
| Nonaccrual to OREO            | (1,372     | )      |                                               | — |                       |    | —                   |   |                    | (1,372  | )                                |   | 1,372                      |   |   | — |   |   | — |   |
| Upgrade in classification     | (712       | )      |                                               | (1,914  | )                          |    | (9,610                    | )      |                    | (12,236 | )                                |   | —                    |   |   | — |   |   | (12,236 | )      |
| Sales                         | —    |   |                                               | — |                       |    | —                   |   |                    | — |                             |   | (11,479                    | )      |   | (584    | )      |   | (12,063 | )      |
| Subsequent writedowns/        |       |   |                                               |    |                       |    |                      |   |                    |    |                             |   |                       |
| impairment                    | —    |   |                                               | — |                       |    | —                   |   |                    | — |                             |   | (662                       | )      |   | (305    | )      |   | (967    | )      |
| Charge-offs                   | (5,465     | )      |                                               | (8      | )                          |    | —                   |   |                    | (5,473  | )                                |   | —                    |   |   | — |   |   | (5,473  | )      |
| Payments                      | (2,845     | )      |                                               | (331    | )                          |    | (218                      | )      |                    | (3,394  | )                                |   | —                    |   |   | — |   |   | (3,394  | )      |
| Balance at end of period      | $          | 11,252 |                                               |    | $                          | — |                      |   | $                       | 5,194   |                             |   | $                          | 16,446 |   |    | $      | 19,740 |    |   | $ | 1,213 |   |   | $ | 37,399 |   |

|                                                |                         |        |                        |        |        |        |        |
|------------------------------------------------|-------------------------|--------|------------------------|--------|--------|--------|--------|
|                                           | September 30, 2010 |   | December 31, 2009 |
| Construction, land development, and other land | $                       | 13,427 |                   |   | $      | 8,596  |   |
| 1-4 family residential properties              | 632                     |   |                   | 1,853  |   |
| Multifamily                                    | 1,858                   |   |                   | 2,065  |   |
| Commercial properties                          | 3,823                   |   |                   | 12,836 |   |
|                                           | $                       | 19,740 |                   |   | $      | 25,350 |   |

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|                                           |         |         |                              |        |                                                                |        |        |        |        |        |        |        |        |         |        |        |      |   |  |  |
|-------------------------------------------|---------|---------|------------------------------|--------|----------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|---------|--------|--------|------|---|--|--|
|                                      | Actual  |    | For CapitalAdequacy Purposes |   | To Be Well-Capitalized UnderPrompt CorrectiveAction Provisions |
|                                      | Amount  |    | Ratio                        |   | Amount                                                         |   | Ratio  |   | Amount |   | Ratio  |
| As of September 30, 2010:                 |    |    |                         |   |                                                           |   |   |   |   |   |   |
| Total Capital (to Risk-Weighted Assets)   |    |    |                         |   |                                                           |   |   |   |   |   |   |
| Consolidated                              | $       | 177,328 |                         |   | 16.5                                                           | %      |   | $      | 85,785 |   |   | 8.0    | %      |    | n/a    |   | n/a  |
| West Bank (ratio required by MOU - 12.0%) | 162,856 |    |                         | 15.4   | %                                                              |   | 84,652 |   |   | 8.0    | %      |   | $      | 105,815 |   |   | 10.0 | % |
|                                      |    |    |                         |   |                                                           |   |   |   |   |   |   |
| Tier I Capital (to Risk-Weighted Assets)  |    |    |                         |   |                                                           |   |   |   |   |   |   |
| Consolidated                              | 163,854 |    |                         | 15.3   | %                                                              |   | 42,893 |   |   | 4.0    | %      |   | n/a    |    | n/a    |
| West Bank                                 | 149,557 |    |                         | 14.1   | %                                                              |   | 42,326 |   |   | 4.0    | %      |   | 63,489 |    |   | 6.0    | %    |
|                                      |    |    |                         |   |                                                           |   |   |   |   |   |   |
| Tier I Capital (to Average Assets)        |    |    |                         |   |                                                           |   |   |   |   |   |   |
| Consolidated                              | 163,854 |    |                         | 10.8   | %                                                              |   | 60,826 |   |   | 4.0    | %      |   | n/a    |    | n/a    |
| West Bank (ratio required by MOU - 8.0%)  | 149,557 |    |                         | 9.9    | %                                                              |   | 60,650 |   |   | 4.0    | %      |   | 75,812 |    |   | 5.0    | %    |
|                                      |    |    |                         |   |                                                           |   |   |   |   |   |   |
| As of December 31, 2009:                  |    |    |                         |   |                                                           |   |   |   |   |   |   |
| Total Capital (to Risk-Weighted Assets)   |    |    |                         |   |                                                           |   |   |   |   |   |   |
| Consolidated                              | $       | 172,217 |                         |   | 14.3                                                           | %      |   | $      | 96,441 |   |   | 8.0    | %      |    | n/a    |   | n/a  |
| West Bank                                 | 166,795 |    |                         | 13.9   | %                                                              |   | 95,991 |   |   | 8.0    | %      |   | $      | 119,989 |   |   | 10.0 | % |
|                                      |    |    |                         |   |                                                           |   |   |   |   |   |   |
| Tier I Capital (to Risk-Weighted Assets)  |    |    |                         |   |                                                           |   |   |   |   |   |   |
| Consolidated                              | 157,098 |    |                         | 13.0   | %                                                              |   | 48,220 |   |   | 4.0    | %      |   | n/a    |    | n/a    |
| West Bank                                 | 141,745 |    |                         | 11.8   | %                                                              |   | 47,995 |   |   | 4.0    | %      |   | 71,993 |    |   | 6.0    | %    |
|                                      |    |    |                         |   |                                                           |   |   |   |   |   |   |
| Tier I Capital (to Average Assets)        |    |    |                         |   |                                                           |   |   |   |   |   |   |
| Consolidated                              | 157,098 |    |                         | 9.8    | %                                                              |   | 64,180 |   |   | 4.0    | %      |   | n/a    |    | n/a    |
| West Bank                                 | 141,745 |    |                         | 8.9    | %                                                              |   | 64,013 |   |   | 4.0    | %      |   | 80,016 |    |   | 5.0    | %    |

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

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

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|             |                                                                                                                                                   |             |
|-------------|---------------------------------------------------------------------------------------------------------------------------------------------------|-------------|
| Exhibit No. | Description                                                                                                                                       | Page Number |
| 12          | Computation of Ratios of Earnings (Loss) to Fixed Charges and Preferred Dividends                                                                 | 47          |
| 31.1        | Certification of Chief Executive Officer under Section 302 of the Sarbanes-Oxley Act of 2002                                                      | 48          |
| 31.2        | Certification of Chief Financial Officer under Section 302 of the Sarbanes-Oxley Act of 2002                                                      | 49          |
| 32.1        | Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | 50          |
| 32.2        | Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | 51          |