UNITED
      STATES


SECURITIES
      AND EXCHANGE COMMISSION


WASHINGTON,
      D.C. 20549




**FORM
      10-K**





(Mark
      One)





**x**
            **Annual
                Report Pursuant to Section 13 or 15(d) of the Securities Exchange
                Act of
                1934**




For
      the
      fiscal year ended December 31, 2007




or





**o**
            **Transition
                Report Pursuant to Section 13 or 15(d) of the Securities Exchange
                Act of
                1934**




For
      the
      transition period
      from to





Commission
      file number 0-49677





WEST
      BANCORPORATION, INC.


(Exact
      name of registrant as specified in its charter)




IOWA
              
              42
                  - 1230603(State
                  of incorporation
              
              (I.R.S.
                  Employer Identification No.)or
                  organization)
 
 1601
                  22nd STREET, WEST DES MOINES, IOWA
              
              50266(Address
                  of principal executive offices)
              
              (Zip
                  Code)





Registrant’s
      telephone number, including area code (515)
      222-2300





Securities
      registered pursuant to Section 12(b) of the Act: NONE





Securities
      registered pursuant to Section 12(g) of the Act:





COMMON
      STOCK, NO PAR VALUE


(Title
      of
      Class)





Indicate
      by check mark if the registrant is a well-known seasoned issuer, as defined
      in
      Rule 405 of the Securities Act.


o Yesx No





Indicate
      by check mark if the registrant is not required to file reports pursuant to
      Section 13 or Section 15(d) of the Act.


o  Yesx No





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





Indicate
      by check mark if disclosure of delinquent filers pursuant to Item 405 of
      Regulation S-K is not contained herein, and will not be contained, to the best
      of registrant’s knowledge, in definitive proxy or information statements
      incorporated by reference in Part III of this Form 10-K or any amendment to
      this
      Form 10-K o.





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





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




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


o Yesx No





The
      aggregate market value of the voting stock held by non-affiliates of the
      registrant as of June 30, 2007, was approximately $273,686,000.





Indicate
      the number of shares outstanding of each of the registrant’s classes of common
      stock as of the most recent practicable date, February 14, 2008.





17,403,882
      shares Common Stock, no par value





DOCUMENTS
      INCORPORATED BY REFERENCE





The
      Appendix to the Proxy Statement for the 2007 calendar year, which was filed
      on
      March 7, 2008, is incorporated by reference into Part I, Part II, and Part
      IV
      hereof to the extent indicated in such Parts.





The
      definitive proxy statement of West Bancorporation, Inc., which was filed on
      March 7, 2008, is incorporated by reference into Part II and Part III hereof
      to
      the extent indicated in such Part.









TABLE
      OF
      CONTENTS




PART
                  IPAGEITEM
                  1.
              
              BUSINESS
              
              3ITEM
                  1A.
              
              RISK
                  FACTORS
              
              10ITEM
                  1B.
              
              UNRESOLVED
                  STAFF COMMENTS
              
              12ITEM
                  2.
              
              PROPERTIES
              
              12ITEM
                  3.
              
              LEGAL
                  PROCEEDINGS
              
              12ITEM
                  4.
              
              SUBMISSION
                  OF MATTERS TO A VOTE OF SECURITY HOLDERS
              
              12PART
                  IIITEM
                  5.
              
              MARKET
                  FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER
                  PURCHASES OF EQUITY SECURITIES
              
              13ITEM
                  6.
              
              SELECTED
                  FINANCIAL DATA
              
              14ITEM
                  7.
              
              MANAGEMENT’S
                  DISCUSSION AND ANALYSIS OF FINANCIALCONDITION
                  AND RESULTS OF OPERATIONS
              
              14ITEM
                  7A.
              
              QUANTITATIVE
                  AND QUALITATIVE DISCLOSURES ABOUTMARKET
                  RISK
              
              14ITEM
                  8.
              
              FINANCIAL
                  STATEMENTS AND SUPPLEMENTARY DATA
              
              14ITEM
                  9.
              
              CHANGES
                  IN AND DISAGREEMENTS WITH ACCOUNTANTSON
                  ACCOUNTING AND FINANCIAL DISCLOSURE
              
              14ITEM
                  9A.
              
              CONTROLS
                  AND PROCEDURES
              
              14ITEM
                  9B.
              
              OTHER
                  INFORMATION
              
              14PART
                  IIIITEM
                  10.
              
              DIRECTORS,
                  EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
              
              15ITEM
                  11.
              
              EXECUTIVE
                  COMPENSATION
              
              17ITEM
                  12.
              
              SECURITY
                  OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENTAND
                  RELATED STOCKHOLDER MATTERS
              
              17ITEM
                  13.
              
              CERTAIN
                  RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTORINDEPENDENCE
              
              17ITEM
                  14.
              
              PRINCIPAL
                  ACCOUNTING FEES AND SERVICES
              
              17PART
                  IVITEM
                  15.
              
              EXHIBITS,
                  FINANCIAL STATEMENT SCHEDULES
              
              17





2


PART
      I




ITEM
      1.
      BUSINESS





GENERAL





West
      Bancorporation, Inc. (the “Company”) is an Iowa corporation and financial
      holding company registered under the Bank Holding Company Act of 1956, as
      amended by the Gramm-Leach-Bliley Act of 1999. The Company owns 100 percent
      of
      the stock of one state banking subsidiary, West Bank, and one registered
      investment advisory firm, WB Capital Management Inc. (“WB Capital”), as
      described below. All of West Bank’s operations are conducted primarily within
      the Des Moines and Iowa City, Iowa, metropolitan areas in the State of Iowa.
      The
      Company’s registered investment advisory firm’s operations are conducted
      primarily in the Des Moines and Coralville, Iowa, metropolitan areas, but they
      also have clients throughout the United States. The Company does not engage
      in
      any material business activities apart from its ownership of its banking and
      investment advisory subsidiaries. The principal executive offices of the Company
      are located at 1601 22 nd Street,
      West Des Moines, Iowa 50266, and its telephone number is (515) 222-2300. The
      Company’s website address is www.westbankiowa.com.





The
      Company was organized and incorporated on May 22, 1984, under the laws of the
      State of Iowa, to serve as a holding company for its principal banking
      subsidiary, West Bank, whose main office is located in West Des Moines, Iowa.
      For the year ended December 31, 2007, West Bank generated approximately 92
      percent of the Company’s total revenue.





The
      principal sources of Company revenue are derived from: (1) interest and fees
      earned on loans made; (2) service charges on deposit accounts; (3) interest
      on
      fixed income securities; (4) trust fees; and (5) investment advisory
      fees.





West
      Bank’s lending activities consist primarily of short-term and medium-term
      commercial and real estate loans, business operating loans and lines of credit,
      equipment loans, vehicle loans, personal loans and lines of credit, home
      improvement loans, and conventional and secondary market mortgage loan
      originations. West Bank also offers a variety of demand, savings and time
      deposits, merchant credit card processing, safe deposit boxes, wire transfers,
      debit cards, direct deposit of payroll and social security checks, automated
      teller machine access, trust services, and correspondent bank
      services.





The
      Company’s investment advisory subsidiary, WB Capital, was formed on October 1,
      2003, and is a registered investment advisor.





Information
      regarding the Company’s operating segments appearing on pages 58 through 59 of
      the Company’s Appendix to the Proxy Statement, which was filed on March 7, 2008,
      is incorporated herein by reference.





BANKING
      SUBSIDIARY





West
      Bank, West Des Moines, Iowa. West
      Bank is a state-chartered commercial bank whose deposit accounts are insured
      by
      the Federal Deposit Insurance Corporation (“FDIC”). It was organized in 1893.
      West Bank became a wholly-owned subsidiary of the Company in 1984. West Bank
      provides full-service banking to businesses and residents primarily in the
      Des
      Moines and Iowa City metropolitan areas, as well as correspondent services
      to
      banking organizations primarily located in Iowa. It provides a variety of
      products and services designed to meet the needs of the markets it serves.
      It
      has an experienced staff of bank officers who have spent the majority of their
      banking careers with West Bank and local financial service organizations, and
      who emphasize long-term customer relationships. West Bank conducts business
      from
      seven full-service offices within the Des Moines metropolitan area and three
      full-service offices in the Iowa City metropolitan area.





As
      of
      December 31, 2007, West Bank had capital of $114,328,000. West Bank had net
      income of $19,286,000 in 2007, $19,797,000 in 2006, and $19,670,000 in 2005.
      West Bank’s total assets as of December 31, 2007, 2006, and 2005 were
      $1,322,712,000, $1,250,740,000, and $1,224,010,000,
      respectively.





INVESTMENT
      ADVISORY SUBSIDIARY





WB
      Capital Management Inc., West Des Moines, Iowa. WB
      Capital is a registered investment advisor, regulated by the Securities and
      Exchange Commission, providing portfolio management services to individual
      investors, retirement plans, corporations, foundations, endowments, insurance
      companies, banks, political subdivisions, mutual funds, and other organizations.
      The subsidiary specializes in domestic equity and fixed income strategies and
      also provides customized strategies to meet specific investment objectives
      of
      clients.





As
      of
      December 31, 2007, WB Capital had approximately $4.5 billion in assets under
      management. For the years ended December 31, 2007, 2006, and 2005 net income
      was
      $568,000, $265,000, and $400,000, respectively.




3





BUSINESS
      STRATEGY AND OPERATIONS





The
      Company is a financial holding company serving primarily the Des Moines and
      Iowa
      City metropolitan areas. In 2005 through 2007, growth resulted from expanding
      existing relationships and acquiring new customer relationships. The Company’s
      business strategy is to emphasize strong personal and business relationships,
      and to provide products and services that meet the needs of its customers.
      The
      Company emphasizes strong cost controls while striving to achieve return on
      equity and net income goals. To accomplish these goals, West Bank focuses on
      small- to medium-sized businesses that traditionally wish to develop an
      exclusive relationship with a single bank. West Bank has the size to give the
      personal attention required by business owners, in addition to the credit
      expertise to help businesses meet their goals.





West
      Bank
      offers a full range of deposit services that are typically available in most
      financial institutions, including checking accounts, savings accounts, money
      market accounts, and time certificates of deposit. The transaction accounts
      and
      time certificates are tailored to the marketplace at competitive rates. In
      addition, West Bank offers retirement accounts such as Individual Retirement
      Accounts. The FDIC insures all deposit accounts up to the maximum amount set
      by
      law. West Bank’s focus is on providing services to small- to medium-sized
      businesses and to individuals who live and/or work within its market area.
      The
      Company does not believe that the loss of deposits of any one customer or of
      a
      few customers would have an adverse effect on West Bank’s operation or erode its
      core deposit base.





Loans
      are
      made to creditworthy borrowers regardless of their race, color, national origin
      or ancestry, religion, sex, age, marital status, sexual orientation, disability,
      veteran status, receipt of public assistance, or any other basis prohibited
      by
      law. West Bank intends to fulfill this commitment while maintaining prudent
      credit standards. In the course of fulfilling this obligation to meet the credit
      needs of the marketplace it serves, West Bank will consider each credit
      application without regard to the fact that the applicant may reside in a low
      to
      moderate income neighborhood, or to the geographic location of the residence,
      property, or business within the market area.





West
      Bank
      provides quality financial products and services, such as telephone and internet
      banking, remote deposit, and trust services that meet the banking needs of
      its
      customers and its market place. The loan programs and acceptance of certain
      loans may vary from time to time depending on the funds available and
      regulations governing the banking industry. West Bank offers all basic types
      of
      credit to its marketplace, including commercial, real estate, and consumer
      loans.





West
      Bank
      offers trust services typically found in a commercial bank with trust powers,
      including the administration of estates, conservatorships, personal and
      corporate trusts, and agency accounts.





West
      Bank
      also earns fees from the origination of residential mortgages that are sold
      in
      the secondary real estate market without retaining the mortgage servicing
      rights.





West
      Bank
      offers traditional banking services, such as safe deposit boxes, wire transfers,
      direct deposit of payroll and social security checks, automated teller machine
      access, and automatic drafts (ACH) for various accounts.





West
      Bank
      offers correspondent bank services to community banks located primarily in
      Iowa.
      These services include the buying and selling of federal funds as well as
      purchases and sales of loan participations.





During
      2007, West Bank worked with a local company named SmartyPig, LLC (“SmartyPig”)
      to develop the banking platform for an innovative, internet-based savings and
      rewards program developed by SmartyPig. West Bank will hold the deposit accounts
      for the SmartyPig programs. In return for its development efforts, West Bank
      acquired a 20 percent ownership interest in SmartyPig. SmartyPig is expected
      to
      publicly launch its programs in the first half of 2008. It is not currently
      possible to predict the amount of business that may develop as a result of
      this
      transaction.





In
      the
      last half of 2007, the Company stated it was planning to enter the Phoenix,
      Arizona market. The Company is still pursuing that objective, but is doing
      so in
      a very deliberate manner due to the slowdown in the economy in general and
      the
      real estate market in particular.





CREDIT
      MANAGEMENT





West
      Bank
      strives to achieve sound credit risk management by establishing uniform credit
      policies and underwriting criteria for its loan portfolio. West Bank diversifies
      the types of loans offered and is subject to regular credit examinations by
      regulators, annual external loan audits, internal loan reviews, and an annual
      internal review of large loans. West Bank attempts to identify potential problem
      loans early, charge off loans appropriately, and maintain an adequate allowance
      for loan losses. West Bank has established credit guidelines for the lending
      activities that include guidelines relating to the more commonly requested
      loan
      types, as follows:





Commercial
      Real Estate Loans -
      Commercial real estate loans are normally based on loan-to-appraisal value
      ratios of not more than 80 percent and are secured by a first priority lien
      position. Loans are typically subject to interest rate adjustments no less
      frequently than seven years from origination, with a maximum amortization period
      of 30 years. Projections and cash flows that demonstrate ability to service
      debt
      within the amortization period are required. Property and casualty insurance
      is
      required to protect West Bank’s collateral interests. A major risk factor for
      West Bank’s commercial real estate loan portfolio, as well as the other loan
      types described below, is the geographic concentration in the Des Moines and
      Iowa City metropolitan areas. Loans are generally guaranteed by the principal(s)
      of the customer.




4





Commercial
      Operating Lines - These
      loans are made to businesses with normal terms of up to twelve months. The
      credit needs are generally seasonal with the source of repayment coming from
      the
      entity’s normal business cycle. Cash flow reviews are completed to establish the
      ability to service the debt within the terms of the loan. A first priority
      lien
      on the general assets of the business normally secures these types of loans.
      Loan-to-value limits vary and are dependent upon the nature and type of the
      underlying collateral and the financial strength of the borrower. Loans are
      generally guaranteed by the principal(s).





Commercial
      Term Loans - These
      loans are made to businesses to finance equipment and other capital
      expenditures. Terms are generally the lesser of seven years or the useful life
      of the asset. Term loans are normally secured by the asset being financed and
      are often additionally secured with the general assets of the business.
      Loan-to-value is generally a maximum of 80 percent of the cost or value of
      the
      assets. Loans are normally guaranteed by the principal(s).





Construction
      Loans -
      Construction loans on commercial real estate are normally based on a
      loan-to-appraisal value ratio of not more than 80 percent and are secured by
      a
      first priority lien position. Loan payments typically consist of interest only
      for a term of one and one half to two years. The interest rate is usually
      variable, based on the prime rate. Residential construction loans are generally
      for a term not to exceed one year based on a loan-to-appraisal value ratio
      of
      not more than 80 percent, and are secured by a first priority lien position.
      Interest is normally paid monthly or quarterly based on a variable rate tied
      to
      prime.





Residential
      First Mortgage Loans -
      Proceeds of these loans are used to buy or refinance the purchase of residential
      real estate, with the loan secured by a first lien on the real estate. Most
      of
      the residential mortgage loans originated by West Bank during the past year
      have
      been sold (including servicing rights) in the secondary mortgage market due
      to
      the higher interest rate risk inherent in the 15- and 30-year fixed rate terms
      consumers prefer. Loans that are originated and not sold in the secondary market
      generally have higher interest rates and have rate adjustment periods normally
      no longer than seven years. The maximum amortization of first mortgage
      residential real estate loans is 30 years. The loan-to-value ratios normally
      do
      not exceed 80 percent. Property insurance is required on all loans to protect
      West Bank’s collateral position.





Home
      Equity Term Loans - These
      loans are normally for home improvement or other consumer purposes and are
      secured by a junior mortgage on residential real estate. The loan-to-value
      ratios normally do not exceed 90 percent.





Home
      Equity Lines of Credit - West
      Bank offers a home equity line of credit with a maximum term of 120 months.
      These loans are secured by a junior mortgage on residential real estate and
      normally do not exceed a loan-to-value ratio of 90 percent, with the interest
      adjusted quarterly.





Consumer
      Loans -
      Consumer loans are normally made under the following guidelines: automobiles
      -
      loans on new and used automobiles generally will not exceed 80 and 75 percent
      of
      the value, respectively; recreational vehicles and boats - 75 percent of value;
      modular home loans have a maximum term of 180 months with the loan-to-value
      ratio generally not exceeding 80 percent. Each of these loans is secured by
      a
      first priority lien on the assets and requires insurance to protect West Bank’s
      collateral position. The term for unsecured loans generally does not exceed
      24
      months.





EMPLOYEES





At
      December 31, 2007, West Bank had a total of 156 full-time equivalent employees
      and WB Capital had 37 full-time equivalent employees. The Company had no
      employees. Employees are provided with a comprehensive program of benefits,
      including comprehensive medical and dental plans, long-term and short-term
      disability coverage, and a profit sharing plan with both 401(k) and employee
      stock ownership features. Management considers its relations with employees
      to
      be satisfactory. No employees are represented by unions.




5




MARKET
      AREA





West
      Bank
      has seven locations throughout the Des Moines, Iowa, metropolitan area and
      three
      locations in the Iowa City, Iowa, metropolitan area.





West
      Bank’s main office is located in West Des Moines, Iowa, one of the fastest
      growing communities in Iowa. The population of the Des Moines metropolitan
      area
      is nearly 500,000. Des Moines is the capital of Iowa. Major employers are the
      State of Iowa, Principal Financial Group, Pioneer Hi-Bred International, Inc.,
      Wells Fargo, Central Iowa Hospital Corporation, Mercy Medical Center, Hy-Vee
      Food Stores, Inc., and the Des Moines Independent School District.





WB
      Capital has offices in West Des Moines and Coralville, Iowa, and customers
      throughout Iowa and the United States.





COMPETITION





The
      geographic market area served by West Bank is highly competitive with respect
      to
      both loans and deposits. West Bank competes principally with other commercial
      banks, savings and loan associations, credit unions, mortgage companies, finance
      divisions of auto companies, and other financial service providers. Some of
      these competitors are local, while others are statewide or nationwide. The
      major
      commercial bank competitors include Bankers Trust Company, NA and First American
      Bank, local banking organizations; Bank of the West, a regional bank; and
      several nationwide banks, including Bank of America, Regions Bank, U.S. Bank,
      NA, and Wells Fargo Bank. Among the advantages such larger banks offer are
      their
      ability to pursue extensive advertising campaigns and to allocate their
      investment assets to out of market geographic regions with potentially higher
      yields. Such banks offer certain services, for example, international and
      conduit financing transactions, that are not offered directly by West Bank,
      but
      that may be offered through correspondent banking institutions. These larger
      banking organizations have much higher legal lending limits than West Bank,
      and
      thus, are better able to finance large regional, national, and global commercial
      customers.





In
      order
      to compete, to the fullest extent possible, with the other financial
      institutions in its primary trade area, West Bank uses the flexibility that
      is
      afforded by its local management. This includes an emphasis on specialized
      services, local promotional activities, and personal contacts by West Bank’s
      officers, directors, and employees. In particular, West Bank competes for
      deposits principally by offering depositors a variety of deposit programs,
      convenient office locations and hours, and other personalized services. West
      Bank competes for loans primarily by offering competitive interest rates,
      experienced lending personnel with local decision-making authority, and quality
      products and services.





Pursuant
      to the FDIC’s Summary of Deposits, as of June 30, 2007, there were 36 other
      banks and savings and loan associations within Polk County, Iowa, where seven
      of
      West Bank’s offices are located. West Bank ranked fourth based on total deposits
      of all banking offices in Polk County. As of June 30, 2007, there were 16 other
      banks and savings and loan associations within Johnson County, Iowa, where
      three
      offices are located in the Iowa City area. West Bank ranked fourth  based
      on
      total deposits of all banking offices in Johnson County. For the entire state,
      West Bank ranked ninth in terms of deposit size.





West
      Bank
      also competes for funds in the financial markets for non-bank financial
      products. Yields on corporate and government debt securities and commercial
      paper affect the ability of commercial banks to attract and hold deposits.
      Commercial banks also compete for funds with money market instruments and
      similar investment vehicles offered by competitors including brokerage firms,
      insurance companies, credit card issuers, and retailers such as Sears. Money
      market funds offered by these types of organizations have provided substantial
      competition for deposits. This trend will likely continue in the
      future.





The
      Company anticipates bank competition will continue to change significantly
      over
      the next several years as more banks, including the major regional and
      nationwide banks, continue to consolidate. Smaller community banks continue
      to
      move their charters or open branches in larger metropolitan areas in an attempt
      to capture market share in a more diverse and growing economic environment.
      Credit unions, because of their income tax advantage, will continue to show
      growth.





SUPERVISION
      AND REGULATION





The
      following discussion generally refers to certain statutes and regulations
      affecting the banking industry. These references provide brief summaries and,
      therefore, do not purport to be complete and are qualified in their entirety
      by
      reference to those statutes and regulations. In addition, due to the numerous
      statutes and regulations that apply to and regulate the operation of the banking
      industry, many are not referenced below.




6




The
      Company and West Bank are subject to extensive federal and state regulation
      and
      supervision. Regulation and supervision of financial institutions is intended
      primarily to protect depositors and the FDIC rather than shareholders of the
      Company. The laws and regulations affecting banks and financial holding
      companies have changed significantly over recent years, particularly with the
      passage of the Financial Services Modernization Act and the USA Patriot Act
      of
      2001. There is reason to expect that similar changes will occur in the future.
      Any change in applicable laws, regulations, or regulatory policies may have
      a
      material effect on the business, operations, and prospects of the Company.
      The
      Company is unable to predict the nature or the extent of the effects on its
      business and earnings that any fiscal or monetary policies or new federal or
      state legislation may have in the future.





The
      Company





The
      Company is a financial holding company and is registered as such with the Board
      of Governors of the Federal Reserve System (the “Federal Reserve”). The Company
      is subject to regulation under the Bank Holding Company Act of 1956, as amended
      (the “BHCA”), which subjects the Company and West Bank to supervision and
      examination by the Federal Reserve. Under the BHCA, the Company files with
      the
      Federal Reserve quarterly and annual reports of its operations and such
      additional information as the Federal Reserve may require. The Company’s Federal
      Reserve reports are available on-line at
      www.ffiec.gov/nicpubweb/instituionProfile.aspx?parld_rssd=121066&pardt_end= 99991231.





Financial
      holding companies are permitted to engage in certain financial activities
      through affiliates that had previously been prohibited activities for bank
      holding companies. Such financial activities include securities and insurance
      underwriting and merchant banking. During 2007, the Company elected to become
      a
      financial holding company. Having the financial holding company status gives
      the
      Company additional flexibility to engage in a broader range of financial and
      other activities than are permissible for non-financial bank holding
      companies.





Source
      of Strength to West Bank. The
      Federal Reserve takes the position that a financial holding company is required
      to serve as a source of financial strength to its subsidiary bank and may not
      conduct its operations in an unsafe or unsound manner. In addition, it is the
      Federal Reserve’s position that in serving as a source of strength to its
      subsidiary bank, a financial holding company should use available resources
      to
      provide adequate capital funds to its subsidiary bank during periods of
      financial stress or adversity. It should also maintain the financial flexibility
      and capacity to obtain additional resources for providing assistance to its
      subsidiary bank. A financial holding company’s failure to meet its obligations
      to serve as a source of strength to its subsidiary bank will generally be
      considered by the Federal Reserve to be an unsafe and unsound banking practice,
      a violation of the Federal Reserve’s regulations, or both.





Federal
      Reserve Approval. Financial holding companies must obtain the approval of the Federal Reserve
      before they: (1) acquire direct or indirect ownership or control of any voting
      stock of any bank if, after such acquisition, they would own or control,
      directly or indirectly, more than five percent of the voting stock of such
      bank;
      (2) merge or consolidate with another financial or bank holding company; or
      (3)
      acquire substantially all of the assets of any additional banks.





Non-Banking
      Activities. With
      certain exceptions, the BHCA also prohibits financial holding companies from
      acquiring direct or indirect ownership or control of voting stock in any company
      other than a bank or bank holding company unless the Federal Reserve finds
      the
      company’s business to be incidental to the business of banking. When making this
      determination, the Federal Reserve in part considers whether allowing a
      financial holding company to engage in those activities would offer advantages
      to the public that would outweigh possible adverse effects. The Company obtained
      approval of the Federal Reserve to form WB Capital in 2003 and to acquire IMG
      in
      2005. A financial holding company may engage in permissible non-banking
      activities on a de novo basis, if the holding company meets certain criteria and
      notifies the Federal Reserve within ten business days after the activity has
      commenced.





Control
      Transactions. The
      Change in Bank Control Act of 1978, as amended, requires a person or group
      of
      persons acquiring “control” of a bank holding company to provide the Federal
      Reserve with at least 60 days prior written notice of the proposed acquisition.
      Following receipt of this notice, the Federal Reserve has 60 days to issue
      a
      notice disapproving the proposed acquisition, but the Federal Reserve may extend
      this time period for up to another 30 days. An acquisition may be completed
      before the disapproval period expires if the Federal Reserve issues written
      notice of its intent not to disapprove the action. Under a rebuttable
      presumption established by the Federal Reserve, the acquisition of ten percent
      or more of a class of voting stock of a bank holding company with a class of
      securities registered under Section 12 of the Securities Exchange Act of 1934,
      as amended, would constitute the acquisition of control. In addition, any
“company” would be required to obtain the approval of the Federal Reserve under
      the BHCA before acquiring 25 percent (or five percent if the “company” is a bank
      holding company) or more of the outstanding shares of the Company, or otherwise
      obtain control of the Company.




7





Affiliate
      Transactions. The
      Company, West Bank, and WB Capital are deemed affiliates within the meaning
      of
      the Federal Reserve Act, and transactions between affiliates are subject to
      certain restrictions. Generally, the Federal Reserve Act: (1) limits the extent
      to which the financial institution or its subsidiaries may engage in "covered
      transactions” with an affiliate; and (2) requires all transactions with an
      affiliate, whether or not “covered transactions,” to be on terms substantially
      the same, or at least as favorable to the institution or subsidiary, as those
      provided to a non-affiliate. The term “covered transaction” includes the making
      of loans, purchase of assets, issuance of guarantees, and similar
      transactions.





State
      Law on Acquisitions. Iowa law
      permits bank holding companies to make acquisitions throughout the state,
      subject to a deposit concentration limit of 15 percent of the total bank
      deposits in the state.





Banking
      Subsidiaries





Applicable
      federal and state statutes and regulations governing a bank’s operations relate,
      among other matters, to capital adequacy requirements, required reserves against
      deposits, investments, loans, legal lending limits, certain interest rates
      payable, mergers and consolidations, borrowings, issuance of securities, payment
      of dividends, establishment of branches, and dealings with affiliated
      persons.





West
      Bank
      is a state bank subject to primary federal regulation and supervision by the
      Federal Deposit Insurance Corporation (the “FDIC”) and the Iowa Division of
      Banking. The federal laws applicable to West Bank regulate, among other things,
      the scope of its business, its investments, its reserves against deposits,
      the
      timing of the availability of deposited funds, and the nature and amount of
      collateral for loans. The laws and regulations governing West Bank generally
      have been promulgated to protect depositors and the deposit insurance fund
      of
      the FDIC, and not to protect stockholders of such institutions or their holding
      companies. West Bank files with the Federal Financial Institutions Examination
      Council (“FFIEC”) quarterly reports of its operations and such additional
      information as the FFIEC may require. West Bank’s reports are available on-line
      at https://cdr.ffiec.gov/public/searchfacsimiles.aspx.





The
      FDIC
      has authority to prohibit banks under its supervision from engaging in what
      it
      considers to be unsafe and unsound practices in conducting business. The Federal
      Deposit Insurance Corporation Improvement Act of 1991 (“FDICIA”) requires
      federal banking regulators to adopt regulations or guidelines in a number of
      areas to ensure bank safety and soundness, including internal controls, credit
      underwriting, asset growth, earnings, management compensation, and ratios of
      classified assets to capital. FDICIA also contains provisions that are intended
      to change independent auditing requirements, restrict the activities of
      state-chartered insured banks, amend various consumer banking laws, limit the
      ability of “undercapitalized banks” to borrow from the Federal Reserve’s
      discount window, require regulators to perform periodic on-site bank
      examinations, and set standards for real estate lending.





Borrowing
      Limitations. West
      Bank is subject to limitations on the aggregate amount of loans that it can
      make
      to any one borrower, including related entities. Subject to numerous exceptions
      based on the type of loans and collateral, applicable statutes and regulations
      generally limit loans to one borrower to 15 percent of total equity and
      reserves. West Bank is in compliance with applicable loans to one borrower
      requirements.





FDIC
      Insurance. Generally, customer deposit accounts in banks are insured by the FDIC for up
      to
      a maximum amount of $100,000, and some individual retirement accounts are
      insured up to $250,000. The FDIC has adopted a risk-based insurance assessment
      system under which depository institutions contribute funds to the FDIC
      insurance fund based on their risk classification. The FDIC may terminate the
      deposit insurance of any insured depository institution if it determines after
      an administrative hearing that the institution has engaged or is engaging in
      unsafe or unsound practices, is in an unsafe or unsound condition to continue
      operations, or has violated any applicable law.





Capital
      Adequacy Requirements. The
      Federal Reserve, the FDIC, and the Office of the Comptroller of the Currency
      (“OCC”) (collectively, the “Agencies”) have adopted risk-based capital
      guidelines for banks and bank holding companies that are designed to make
      regulatory capital requirements more sensitive to differences in risk profiles
      among banks and bank holding companies and account for off-balance sheet items.
      Failure to achieve and maintain adequate capital levels may give rise to
      supervisory action through the issuance of a capital directive to ensure the
      maintenance of required capital levels. West Bank is in compliance with
      applicable regulatory capital level requirements.





The
      current guidelines require all federally regulated banks to maintain a minimum
      risk-based total capital ratio equal to eight percent, of which at least four
      percent must be Tier 1 capital. Tier 1 capital includes common shareholders’
equity, qualifying perpetual preferred stock, and minority interests in equity
      accounts of consolidated subsidiaries, but excludes goodwill and most other
      intangibles, and the allowance for loan and lease losses. Tier 2 capital
      includes the excess of any preferred stock not included in Tier 1 capital,
      mandatory convertible securities, hybrid capital instruments, subordinated
      debt
      and intermediate term preferred stock, and general reserve for loan and lease
      losses up to 1.25 percent of risk-weighted assets. West Bank has not received
      any notice indicating that it will be subject to higher capital
      requirements.




8





Under
      these guidelines, bank assets are given risk weights of zero percent, 20
      percent, 50 percent or 100 percent. Most loans are assigned to the 100 percent
      risk category, except first mortgage loans fully secured by residential property
      and, under certain circumstances, residential construction loans (both carry
      a
      50 percent rating). Most investment securities are assigned to the 20 percent
      category, except for municipal or state revenue bonds (which have a 50 percent
      rating) and direct obligations of or obligations guaranteed by the United States
      Treasury or United States government agencies (which have a zero percent
      rating).





The
      Agencies have also implemented a leverage ratio, which is equal to Tier 1
      capital as a percentage of average total assets less intangibles, to be used
      as
      a supplement to the risk-based guidelines. The principal objective of the
      leverage ratio is to limit the maximum degree to which a bank may leverage
      its
      equity capital base. The minimum required leverage ratio for top-rated
      institutions is three percent, but most institutions are required to maintain
      an
      additional cushion of at least 100 to 200 basis points. Any institution
      operating at or near the three percent level is expected to be a strong banking
      organization without any supervisory, financial, or operational weaknesses
      or
      deficiencies. Any institution experiencing or anticipating significant growth
      would be expected to maintain capital ratios, including tangible capital
      positions, well above the minimum levels.





Prompt
      Corrective Action. Regulations adopted by the Agencies impose even more stringent capital
      requirements. The FDIC and other Agencies must take certain “prompt corrective
      action” when a bank fails to meet capital requirements. The regulations
      establish and define five capital levels: (1) “well-capitalized,” (2)
“adequately capitalized,” (3) “undercapitalized,” (4) “significantly
      undercapitalized,” and (5) “critically undercapitalized.” Increasingly severe
      restrictions are imposed on the payment of dividends and management fees, asset
      growth, and other aspects of the operations of institutions that fall below
      the
      category of being “adequately capitalized.” Undercapitalized institutions are
      required to develop and implement capital plans acceptable to the appropriate
      federal regulatory agency. Such plans must require that any company that
      controls the undercapitalized institution must provide certain guarantees that
      the institution will comply with the plan until it is adequately capitalized.
      As
      of the date of this Annual Report on Form 10-K, neither the Company nor West
      Bank was subject to any regulatory order, agreement, or directive to meet and
      maintain a specific capital level for any capital measure. Furthermore, as
      of
      that same date, West Bank was categorized as “well-capitalized” under regulatory
      prompt corrective action provisions.





Restrictions
      on Dividends. Dividends paid to the Company by West Bank are the major source of Company
      cash
      flow. Various federal and state statutory provisions limit the amount of
      dividends banking subsidiaries are permitted to pay to their holding companies
      without regulatory approval. Federal Reserve policy further limits the
      circumstances under which bank holding companies may declare dividends. For
      example, a bank holding company should not continue its existing rate of cash
      dividends on its common stock unless its net income is sufficient to fully
      fund
      each dividend and its prospective rate of earnings retention appears consistent
      with its capital needs, asset quality, and overall financial condition. In
      addition, the Federal Reserve and the FDIC have issued policy statements
      providing that insured banks and bank holding companies should generally pay
      dividends only out of current operating earnings. Federal and state banking
      regulators may also restrict the payment of dividends by order.





West
      Bank, as a state-chartered bank, is restricted under Iowa law to paying
      dividends only out of its undivided profits. Additionally, the payment of
      dividends by West Bank is affected by the requirement to maintain adequate
      capital pursuant to applicable capital adequacy guidelines and regulations,
      and
      West Bank is generally prohibited from paying any dividends if, following
      payment thereof, West Bank would be undercapitalized. As of December 31, 2007,
      approximately $15.2 million was available to be paid as dividends by West Bank
      to the Company without prior regulatory approval.





Reserves
      Against Deposits. The
      Federal Reserve requires all depository institutions to maintain reserves
      against their transaction accounts (primarily checking accounts) and
      non-personal time deposits. Generally, reserves of three percent must be
      maintained against total transaction accounts of $43,900,000 or less (subject
      to
      an exemption not in excess of the first $9,300,000 of transaction accounts).
      A
      reserve of $1,038,000 must be maintained in the event total transaction accounts
      exceed $43,900,000. The balances maintained to meet the reserve requirements
      imposed by the Federal Reserve may be used to satisfy applicable liquidity
      requirements. Because required reserves must be maintained in the form of vault
      cash or a non-interest bearing account at a Federal Reserve Bank, the effect
      of
      this reserve requirement is to reduce the earning assets of West
      Bank.





Bank
      Offices. Iowa
      laws regulating the establishment of bank offices were changed in 2004, which
      provided the Company with more flexibility in establishing additional offices
      of
      West Bank. Effective July 1, 2004, the geographical restrictions on bank office
      locations were repealed. Also effective July 1, 2004, Iowa law restricting
      the
      ability of a bank to establish a de novo office within the limits of a municipal
      corporation where there was already an established state or national bank or
      bank office was repealed.





Nonbanking
      Subsidiaries





WB
      Capital is under the jurisdiction of the Investment Advisors Act of 1940 and
      is
      regulated by the Securities and Exchange Commission (“SEC”). WB Capital has
      filed Form ADV with the SEC, which may be viewed at
      www.adviserinfo.sec.gov/IAPD/content/search/iapd_orgsear ch.aspx.




9





Regulatory
      Developments





In
      2001,
      the USA Patriot Act of 2001 was enacted. The Patriot Act is intended to
      strengthen U.S. law enforcements’ and the intelligence communities’ abilities to
      work together to combat terrorism. The Patriot Act contains, among other things,
      anti-money laundering and financial transparency laws, and imposes various
      regulations, including standards for verifying client identification at account
      opening, and rules to promote cooperation among financial institutions,
      regulators, and law enforcement in identifying parties that may be involved
      in
      terrorism or money laundering. Included in the Patriot Act are requirements
      for
      financial institutions to establish anti-money laundering programs that include:
      (1) internal policies, procedures and controls; (2) designation of an anti-money
      laundering compliance officer; (3) ongoing employee training programs; and
      (4)
      an independent audit function to test the anti-money laundering program. West
      Bank’s policies and procedures have been updated to meet the requirements of the
      USA Patriot Act.





The
      Deposit Insurance Reform Act of 2005 resulted in significant statutory changes
      to the FDIC deposit insurance assessment program. It allowed eligible insured
      depository institutions to share a one-time assessment credit pool of
      approximately $4.7 billion. To be eligible, an institution must have been in
      existence on December 31, 1996, and have paid a deposit insurance assessment
      prior to that date. West Bank’s share of that credit was approximately $561,000.
      West Bank’s credit will be fully utilized prior to the end of the first quarter
      of 2008. During 2007, the FDIC Board of Directors approved final rules governing
      assessments. Effective January 1, 2007, assessment rates vary by institution
      based on their risk category. Rates range from five to seven basis points for
      well-managed financial institutions to 43 basis points for institutions deemed
      to be in the highest risk category. The FDIC has also set the fund’s reserve
      ratio in a range between 1.15 and 1.50 percent of insured deposits. As of
      December 31, 2007, the designated reserve ratio was at 1.25 percent and is
      subject to an annual review.





On
      February 8, 2006, the Budget Reconciliation Bill, which contained deposit
      insurance reform provisions, was signed into law. Under the legislation, the
      Bank Insurance Fund and the Savings Association Insurance Fund were merged
      on
      March 31, 2006; the $100,000 of depositor insurance limitation was indexed
      to
      inflation, was increased to $250,000 for some retirement accounts, and is
      subject to increase every five years.





Regulatory
      Enforcement Authority





The
      enforcement powers available to federal and state banking regulators are
      substantial and include, among other things, the ability to assess civil
      monetary penalties, to issue cease-and-desist or removal orders, and to initiate
      injunctive actions against banking organizations and institution-affiliated
      parties, as defined. In general, enforcement actions must be initiated for
      violations of laws and regulations and unsafe or unsound practices. Other
      actions, or inactions, may provide the basis for enforcement action, including
      misleading or untimely reports filed with regulatory authorities. Applicable
      law
      also requires public disclosure on final enforcement actions by the federal
      banking agencies.





National
      Monetary Policies





In
      addition to being affected by general economic conditions, the earnings and
      growth of West Bank are affected by the regulatory authorities’ policies,
      including those of the Federal Reserve. An important function of the Federal
      Reserve is to regulate the money supply, credit conditions, and interest rates.
      Among the instruments used to implement these objectives are open market
      operations in U.S. Government securities, changes in reserve requirements
      against bank deposits, and the Federal Reserve Discount Rate, which is the
      rate
      charged to banks borrowing from the Federal Reserve Bank. These instruments
      are
      used in varying combinations to influence overall growth and distribution of
      credit, bank loans, investments, and deposits, and their use may also affect
      interest rates charged on loans or paid on deposits.





The
      monetary policies of the Federal Reserve have had a material impact on the
      operating results of commercial banks in the past and are expected to do so
      in
      the future.





ITEM
      1A.
      RISK FACTORS





West
      Bancorporation’s business is conducted through its two wholly-owned
      subsidiaries: West Bank and WB Capital. The most substantial risks for our
      stock
      involve West Bank, which is the most significant portion of our operations
      and
      total assets. The largest component of our 2007 income was interest received
      on
      loans. The second largest component of income was interest income on investment
      securities, Federal funds, and short-term investments. We believe the following
      are the most significant risk factors for the next year. We are also subject
      to
      other risks, both known and unknown, that may significantly affect our stock
      price. The reader, therefore, should consider all other information contained
      in
      this Form 10-K and in the Appendix to our Proxy Statement, which was filed
      on
      March 7, 2008. All of that information is incorporated herein by this
      reference.




10





West
      Bank Loan Portfolio





At
      December 31, 2007, West Bank’s loan portfolio included approximately
      $878,433,000 of commercial real estate loans, commercial lines of credit,
      commercial term loans, and construction or land development loans. These loans
      made up 89 percent of West Bank’s entire loan portfolio. These types of loans
      typically have greater credit risks than one- to four-family residential
      mortgages or consumer loans because repayment depends in significant part on
      the
      successful business operations of the borrowers. Our commercial loans also
      typically include larger loan balances to single borrowers or groups of related
      borrowers than do residential mortgages or consumer loans. In addition,
      commercial real estate, construction, and real estate development loans may
      be
      more negatively affected than residential mortgage loans by adverse developments
      in the real estate markets or the general economy. If the economy turns
      downward, commercial borrowers may not be able to repay their loans, and the
      value of their collateral may decrease. Commercial loans also involve some
      additional risk, because they generally are not fully repaid over the loan
      period and usually require a large payoff at maturity. A borrower’s ability to
      make the maturity payment typically depends on being able to either refinance
      the loan or make timely and profitable sales of the underlying property or
      business collateral. The typical West Bank borrower is a small- or medium-sized
      privately-owned business that usually has fewer resources and less ability
      to
      sustain losses over time than larger or publicly-owned businesses. In addition,
      collateral securing small business loans may be more likely to depreciate over
      time or be difficult to liquidate. The review and monitoring process by West
      Bank’s directors, officers, and staff cannot avoid all these risks.





West
      Bank’s management makes various business assumptions and judgments about the
      collectibility of all of its loans. Despite its underwriting and review
      policies, West Bank may experience loan losses that could have a material
      adverse effect on its profits. If West Bank’s current allowance for loan losses
      is found to be insufficient to cover actual loan losses, an increase in the
      allowance would be necessary. West Bank may need to significantly increase
      the
      provision for loan losses if one or more large loans become delinquent, or
      if
      the percentage of its commercial real estate, construction, land development,
      and commercial loans continues to grow. In addition, West Bank’s regulators
      periodically review the loan portfolio and may require increases in its
      provision for loan losses or loan charge-offs. Increases in West Bank’s
      allowance for loan losses would decrease West Bank’s net income. West Bank
      cannot be sure that its monitoring procedures and policies will successfully
      avoid its lending risks, or that West Bank’s present allowance for loan losses
      will be adequate to cover actual future charge-offs.





Unlike
      regional and national banks that are more geographically diversified, West
      Bank
      provides banking and financial services to customers primarily in the Des Moines
      and Iowa City, Iowa, metropolitan areas. The local economic conditions in the
      market areas we serve have a significant impact on the type of loans
      underwritten by West Bank, the ability of the borrowers to repay these loans,
      and the value of the collateral securing these loans. A significant decline
      in
      general economic conditions in our limited market areas caused by factors beyond
      West Bank’s control could adversely affect our financial condition and
      profits.





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





As
      of
      December 31, 2007, West Bank had identified approximately $20 million of loans
      to nine real estate developers who were still performing their loan obligations
      despite experiencing varying degrees of increasing financial difficulty. It
      is
      not now possible to fully predict the degree of problems these loans may
      develop. However, West Bank considers these loans to be potential problem loans,
      and it intends to continue special monitoring of all real estate development
      loans for the foreseeable future.





Interest
      Rates





West
      Bancorporation’s net income is also affected by interest rate risks. Interest
      rate risks are the possibilities that changes in market interest rates may
      adversely affect West Bank’s earnings and capital. Increases or decreases in
      interest rates and the relationship between long-term and short-term rates
      are
      both factors of interest rate risks.





Net
      interest income is the largest component of the Company’s net income. Net
      interest income is the difference between interest earned (income) and interest
      paid (expense). Interest is earned on loans made to customers and on investment
      securities in the investment portfolio. Interest is paid on customers’ deposit
      accounts and funds borrowed from other sources. The amounts of interest earned
      and interest paid are the result of interest rates and the dollar balances
      of
      loans, investments, deposits, and borrowings outstanding.




11




Interest
      rates on loans and investments may not change at the same time or in the same
      amount as interest rates on deposits and borrowings. Various factors affect
      the
      interest rates associated with loans and investments, such as the credit rating
      of the borrower and the term of the loan or investment. Generally, the longer
      the term of the loan or investment, the higher the interest rate. Interest
      rates
      on investment securities are generally fixed for the term of the investment.
      Interest rates on loans can be fixed for the term of the loan or can be variable
      and change when there is a change in an associated index, such as the prime
      rate. Interest rates on deposit accounts, such as savings and money market
      accounts, generally change over time based upon changes in market interest
      rates. Interest rates on certificates of deposit are usually fixed for the
      term
      of the certificate. Interest rates associated with borrowings can be either
      fixed or variable.





Net
      interest income is also affected by the volume of loans, investments, deposits,
      and borrowings that are maturing, the dollar amounts of new loan and deposit
      accounts being opened, and the amounts of early loan payoffs for any given
      period. These events, which to varying degrees are beyond the control of West
      Bank, affect the amount of dollars that may be reinvested as interest rates
      change.





The
      ultimate impact on net interest income over time will depend upon the direction
      and significance of changes in market interest rates as well as the dollar
      amounts of loans, investments, deposits, and borrowings subject to the changes
      in market interest rates.





Economic
      Conditions





The
      general economy is slowing. Based upon increasing numbers of foreclosures and
      slower sales of one-to-four family residences, it is generally agreed that
      the
      real estate market is in a slowdown. The Federal Reserve reduced the targeted
      fed funds rate and the discount rate by 225 basis points between September
      2007
      and January 2008, indicating its concern about the slowing economy. It is
      uncertain when this slowdown will turn around and the ripple effect it could
      have on other parts of the economy. The duration and magnitude of any near-term
      economic difficulties are not known.





ITEM
      1B.
      UNRESOLVED STAFF COMMENTS





There
      are
      no unresolved comments from the Commission staff.





ITEM
      2.
      PROPERTIES





The
      Company is located in the main office building of West Bank, at 1601
      22 nd Street
      in West Des Moines, Iowa. The headquarters location is leased. West Bank rents
      approximately 18,600 square feet and pays annual rent of approximately $398,000
      for a full-service banking location that includes drive-up facilities and one
      automated teller machine. West Bank also leases bank buildings and space for
      seven other locations. These offices are full-service banking locations, with
      drive-up facilities and automated teller machines, except an office in
      Coralville, which does not have a drive-up. Annual lease payments for these
      seven offices total approximately $605,000. West Bank also rents approximately
      5,000 square feet in an additional facility for various operational departments,
      and rents approximately 2,900 square feet of storage space, with the total
      annual rents for both facilities of approximately $100,000. West Bank owns
      two
      full-service banking locations in Iowa City.





WB
      Capital has leased offices in West Des Moines and Coralville, Iowa. In
      Coralville, WB Capital leases space within West Bank’s branch office. Lease
      payments for these offices were approximately $456,000 for the year ended
      December 31, 2007.





ITEM
      3.
      LEGAL PROCEEDINGS





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





ITEM
      4.
      SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS





There
      were no matters submitted to a vote of security holders, through the
      solicitation of proxies or otherwise, during the fourth quarter of the fiscal
      year covered by this report.




12





PART
      II





ITEM
      5.
      MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER
      PURCHASES OF EQUITY SECURITIES





The
      information appearing on page 64 of the Company’s Appendix to the Proxy
      Statement, which was filed on March 7, 2008, is incorporated herein by
      reference.





There
      were 278 holders of record of the Company’s no par value common stock as of
      February 14, 2008, and an estimated 1,300 additional beneficial holders whose
      stock was held in street name by brokerage houses. The closing price of the
      Company’s common stock was $12.48 on February 14, 2008.





In
      April
      2007, the Company’s Board of Directors authorized the buy-back of the Company’s
      common stock for a period of 12 months, in an amount not to exceed $5 million.
      In the fourth quarter of 2007, 74,500 shares were repurchased at a cost of
      approximately $974,000 or $13.08 per share. During January 2008, an additional
      58,300 shares were repurchased at an average cost of $13.53 per share, totaling
      approximately $789,000.





The
      following table provides detailed information regarding the Company’s purchases
      of its common stock during the fourth quarter of the year ended December 31,
      2007:


Quarter
                  ended
                December
                  31, 2007
              
              Total
                  Number
                of
                  Shares
                Purchased
              
              Average
                Price
                  Paid
                per
                  Share (1)
              
              Total
                Number
                  of Shares
                Purchased
                  as
                Part
                  of Publicly Announced
                Plan
              
              Maximum
                Dollar
                  Amount of
                Shares
                  that May
                Yet
                  be Purchased
                Under
                  the PlanOctober
                  1 throughOctober
                  31, 2007
              
              
              -
              
              $
              -
              
              
              -
              
              $
              5,000,000November
                  1 throughNovember
                  30, 2007
              
              
              -
              
              
              -
              
              
              -
              
              
              5,000,000December
                  1 throughDecember
                  31, 2007
              
              
              74,500
              
              
              13.08
              
              
              74,500
              
              
              4,025,713Total
              
              
              74,500
              
              $
              13.08
              
              
              74,500
              
              $
              4,025,713




(1)
            All
                shares were purchased via open market
                transactions.





Dividends
      to common shareholders in 2007 were $0.64 per common share, a 2.4 percent
      increase over $0.625 for 2006. Dividend declarations are evaluated and
      determined by the Board of Directors on a quarterly basis. The ability of the
      Company to continue to pay such dividends will depend primarily upon the
      earnings of West Bank and its ability to pay dividends to the Company. It is
      anticipated the Company will continue to pay dividends on a regular basis in
      the
      future.





The
      ability of West Bank to pay dividends is governed by various statutes. West
      Bank, as a state bank, is restricted to paying dividends only out of undivided
      profits. These statutes provide that no bank shall declare or pay any dividends
      in an amount greater than its retained earnings, without approval from governing
      regulatory bodies. In addition, applicable bank regulatory authorities have
      the
      power to require any bank to suspend the payment of any and all dividends until
      the bank complies with all requirements that may be imposed by such
      authorities.





In
      April
      2005, shareholders approved the West Bancorporation, Inc. Restricted Stock
      Compensation Plan. The plan provides awards to be made until March 1, 2015,
      with
      a maximum of 300,000 shares purchased in the open market to be granted as
      awards, subject to certain restrictions. The Compensation Committee of the
      Company’s Board of Directors administers the Plan. As of December 31, 2007, no
      awards had been granted. The table appearing on page 16 of the definitive Proxy
      Statement, which was filed on March 7, 2008, is incorporated herein by
      reference.





The
      stock
      price performance graph appearing on page 26 of the Company’s Appendix to the
      Proxy Statement, which was filed on March 7, 2008, is incorporated herein by
      reference.




13





ITEM
      6.
      SELECTED FINANCIAL DATA





The
      information appearing on page 4 of the Company’s Appendix to the Proxy
      Statement, which was filed on March 7, 2008, is incorporated herein by
      reference.





ITEM
      7.
      MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
      OPERATIONS





The
      information appearing on pages 5 through 27 of the Company’s Appendix to the
      Proxy Statement, which was filed on March 7, 2008, is incorporated herein by
      reference.





ITEM
      7A.
      QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK





The
      information appearing on pages 24 and 25 of the Company’s Appendix to the Proxy
      Statement, which was filed on March 7, 2008, is incorporated herein by
      reference.





ITEM
      8.
      FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA





The
      information appearing on pages 28 through 63 of the Company’s Appendix to the
      Proxy Statement, which was filed on March 7, 2008, is incorporated herein by
      reference.





ITEM
      9.
      CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
      DISCLOSURE





Within
      the two years prior to the date of the most recent financial statements, there
      have been no changes in or disagreements with accountants of the
      Company.





ITEM
      9A.
      CONTROLS AND PROCEDURES





As
      of the
      end of the period covered by this report, an evaluation of the effectiveness
      of
      the Company’s disclosure controls and procedures (as defined in Exchange Act
      Rule 240.13a-15(e)) was performed under the supervision and with the
      participation of the Company’s Chief Executive Officer and Chief Financial
      Officer. Based on that evaluation, the Chief Executive Officer and the Chief
      Financial Officer have concluded that the Company’s current disclosure controls
      and procedures are effective to ensure that information required to be disclosed
      by the Company in the reports that it files or submits under the Securities
      Exchange Act of 1934 is recorded, processed, summarized, and reported within
      the
      time periods specified in the Securities and Exchange Commission’s rules and
      forms.





Management’s
      annual report on internal control over financial reporting appears on page
      31 of
      the Company’s Appendix to the Proxy Statement, which was filed on March 7, 2008,
      and is incorporated herein by reference.





The
      audit
      report of the Company’s independent registered public accounting firm on the
      effectiveness of the Company’s internal control over financial reporting appears
      on pages 29 and 30 of the Company’s Appendix to the Proxy Statement, which was
      filed on March 7, 2008, and is incorporated herein by reference.





There
      were no changes in the Company’s internal control over financial reporting that
      occurred during the fourth fiscal quarter of 2007 that have materially affected,
      or are reasonably likely to materially affect, the Company’s internal control
      over financial reporting.





ITEM
      9B.
      OTHER INFORMATION





The
      registrant has no information to be disclosed under this item.




14


PART
      III





ITEM
      10.
      DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE





The
      following table sets forth summary information about the directors and executive
      officers of the Company and certain executive officers of West Bank and WB
      Capital Management Inc.




Name
              
              Age
              
              Position
                    with Company, West Bank or
                  WB
                    Capital Management Inc.Frank
                  W. Berlin
              
              62
              
              Director
                  of Company and BankWendy
                  L. Carlson
              
              47
              
              Director
                  of CompanyOrville
                  E. Crowley
              
              81
              
              Director
                  of CompanyGeorge
                  D. Milligan
              
              51
              
              Director
                  of Company and BankRobert
                  G. Pulver
              
              60
              
              Director
                  of Company and BankThomas
                  E. Stanberry
              
              53
              
              Chairman,
                  President and Chief Executive Officerof
                  Company; Chairman and Chief Executive Officerof
                  Bank; Chairman of WB Capital Management Inc.Jack
                  G. Wahlig
              
              75
              
              Director
                  of Company and BankConnie
                  Wimer
              
              75
              
              Director
                  of Company and BankScott
                  D. Eltjes
              
              42
              
              Director
                  and Chief Executive Officer of WB Capital Management
                  Inc.Douglas
                  R. Gulling
              
              54
              
              Executive
                  Vice President and Chief Financial Officerof
                  Company; Director and Chief Financial Officer of Bank;Director
                  and Treasurer of WB Capital Management Inc.Jeffrey
                  D. Lorenzen
              
              42
              
              Director,
                  President and Chief Investment Officer ofWB
                  Capital Management Inc.Sharen
                  K. Surber
              
              63
              
              Executive
                  Vice President of BankBrad
                  L. Winterbottom
              
              51
              
              Executive
                  Vice President of Company; Director and Presidentof
                  Bank; Director of WB Capital Management
                  Inc.




During
      2007, and until December 2007, the Board of Directors was comprised of ten
      members. During December 2007, Steven G. Chapman and Michael A. Coppola resigned
      from the Board. Since December 2007, the Board of Directors was and will be
      comprised of eight members. Subsequent to the annual meeting, the majority
      of
      the Board will continue to be “independent” pursuant to NASD Rule 4350(c)(1).
      Directors are elected at each annual meeting of shareholders to hold office
      until the next annual meeting of shareholders after their election and until
      their successor shall be elected and shall qualify or until their earlier
      resignation, removal from office, death, or incapacity. The shareholders may
      at
      any time remove any director, with or without cause, by majority vote of the
      outstanding shares and elect a successor to fill the vacancy. The executive
      officers of the Company are elected on an annual basis by the Board of Directors
      of the Company. An executive officer may be removed by the Board of Directors
      whenever in its judgment the best interests of the Company will be served
      thereby.





The
      principal occupation or business and experience of the directors, and executive
      officers of the Company and certain executive officers of West Bank and WB
      Capital for the past five years are set forth below:





FRANK
      W.
      BERLIN is president of Frank W. Berlin & Associates, an insurance broker.
      Mr. Berlin has served as a director of the Company and West Bank since
      1995.





WENDY
      L.
      CARLSON is chief financial officer and general counsel of American Equity
      Investment Life Holding Company. She has served in this capacity since 1999.
      Ms.
      Carlson has been a director of the Company since April 2007.




15





ORVILLE
      E. CROWLEY is president and chief operating officer of Linden Lane Farms
      Company, a family farm corporation involved in growing row crops in Madison
      and
      Warren counties in Iowa. Mr. Crowley has been a director of the Company since
      1984.





GEORGE
      D.
      MILLIGAN is president of The Graham Group, Inc., a Des Moines, Iowa based real
      estate development company. He has served as a director of the Company since
      2005 and West Bank since 1994.





ROBERT
      G.
      PULVER is president and chief executive officer of All-State Industries, Inc.,
      an industrial rubber products manufacturer. He has been a director of the
      Company since 1984 and West Bank since 1981.





THOMAS
      E.
      STANBERRY joined the Company in March 2003 as chairman, president, and chief
      executive officer. Effective January 1, 2005, he became chairman and chief
      executive officer of West Bank. He has been a director of West Bank since May
      2003 and of WB Capital since October 2003. From 1989 until February 2003, Mr.
      Stanberry served in a variety of capacities for U.S. Bancorp Piper Jaffray,
      most
      recently as a managing director in its Fixed Income Capital Markets
      division.





JACK
      G.
      WAHLIG is president of Integrus Financial, L.C. He is a retired partner of
      the
      certified public accounting firm, McGladrey & Pullen, LLP. Mr. Wahlig has
      been a director of the Company since 2001 and West Bank since 1997.





CONNIE
      WIMER is chairman of Business Publications Corporation. She has been a director
      of the Company and West Bank since 1985.





SCOTT
      D.
      ELTJES was named chief executive officer of WB Capital in July 2006 and was
      named a member of the Company’s executive management team and head of WB Capital
      effective January 2005. He has been a director of WB Capital since October
      2003.
      From May 1999 until October 2003, he was a managing partner of VMF Capital
      L.L.C., from which the Company purchased certain assets and liabilities to
      form
      WB Capital.





DOUGLAS
      R. GULLING joined the Company in November 2001 as chief financial officer,
      and
      was elected chief financial officer of the Bank in February 2002. He has been
      a
      director and treasurer of WB Capital since October 2003. He was elected
      executive vice president of the Company in April 2004. In May 2005, he was
      elected to the Board of Directors of West Bank.





JEFFREY
      D. LORENZEN was named president and chief investment officer of WB Capital
      in
      July 2006, and was named a member of the Company’s executive management team
      effective February 2006. He became a director of WB Capital in October 2006.
      He
      had been president of Investors Management Group since April 2005 and chief
      investment officer since March 2003. From August 2000 until October 2003, he
      served as IMG’s supervising fixed income manager.





SHAREN
      K.
      SURBER is executive vice president-operations of West Bank and has served in
      that capacity since 2001. Prior to that time, she was senior vice
      president-operations. She has been with West Bank since 1975.





BRAD
      L.
      WINTERBOTTOM is executive vice president of the Company and president of West
      Bank and has served as a director and president of West Bank since 2000. He
      has
      been a director of WB Capital since October 2003. He joined West Bank in
      1992.





Identification
      of Audit Committee and Audit Committee Financial Expert





The
      information for this matter as required pursuant to Item 407(d)(4) and (d)(5)
      of
      Regulation S-K can be found at page 5 in the Company’s definitive Proxy
      Statement, which was filed on March 7, 2008, and is incorporated herein by
      reference.





Shareholder
      Recommendations for Nominees to the Board of Directors





The
      information for this matter as required pursuant to Item 407(c)(3) of Regulation
      S-K can be found at page 18 in the Company’s definitive Proxy Statement, which
      was filed on March 7, 2008, and is incorporated herein by
      reference.





Section
      16(a) Beneficial Ownership Reporting Compliance





The
      information for this matter as required pursuant to Item 405 of Regulation
      S-K
      can be found at page 11 in the Company’s definitive Proxy Statement, which was
      filed on March 7, 2008, and is incorporated herein by reference.





Code
      of Ethics





The
      Company has adopted a code of conduct that applies to all directors, officers,
      and employees, including the chairman, president and chief executive officer,
      the executive vice president and chief financial officer, and the vice president
      and controller. A copy of the code of conduct is available in the investor
      relations section of the Company’s website at www.westbankiowa.com.




16





ITEM
      11.
      EXECUTIVE COMPENSATION





The
      information for this matter as required pursuant to Item 402, Item 407 (e)(4)
      and Item 407(e)(5) of Regulation S-K can be found at pages 6, 8, 9, and 11
      through 16 in the Company’s definitive Proxy Statement, which was filed on March
      7, 2008, and is incorporated herein by reference.





ITEM
      12.
      SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED
      STOCKHOLDER MATTERS





The
      information for this matter as required pursuant to Item 201(d) and Item 403
      of
      Regulation S-K can be found at pages 10 and 16 in the Company’s definitive Proxy
      Statement, which was filed on March 7, 2008, and is incorporated herein by
      reference.





ITEM
      13.
      CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR
      INDEPENDENCE





The
      information for this matter as required pursuant to Item 404 and Item 407(a)
      of
      Regulation S-K can be found at pages 5, 6, 17, and 18 in the Company’s
      definitive Proxy Statement, which was filed on March 7, 2008, and is
      incorporated herein by reference.





ITEM
      14.
      PRINCIPAL ACCOUNTING FEES AND SERVICES





The
      information for this matter as required pursuant to Item 9(e) of Schedule 14A
      can be found at page 17 in the Company’s definitive Proxy Statement, which was
      filed on March 7, 2008, and is incorporated herein by
      reference.





PART
      IV





ITEM
      15.
      EXHIBITS, FINANCIAL STATEMENT SCHEDULES





The
      following exhibits and financial statement schedules of the Company are filed
      as
      part of this report:





(a)
            1.
            Financial
                Statements




See
      the
      financial statements on pages 28 through 63 of the Company’s Appendix to the
      Proxy Statement, which was filed on March 7, 2008, and which is incorporated
      herein by reference.





2.
            Financial
                Statement Schedules




All
      schedules are omitted because they are not applicable, not required, or because
      the required information is included in the consolidated financial statements
      or
      notes thereto.





3.
            Exhibits
                (not covered by independent registered public accounting firms’
                reports)




3.1
              Restated
                  Articles of Incorporation of the
                  Company(1)
  3.2
              Amendment
                  to Bylaws of West Bancorporation,
                  Inc.(10)
  10.1
              Lease
                  for Main Bank Facility(1)
  10.2
              Supplemental
                  Agreement to Lease for Main Bank
                  Facility(1)
  10.3
              Short-term
                  Lease related to Main Bank
                  Facility(1)
  10.4
              Assignment(1)
  10.5
              Lease
                  Modification Agreement No. 1 for Main Bank
                  Facility(1)
  10.6
              Memorandum
                  of Real Estate Contract(1)
  10.7
              Affidavit(1)
  10.8
              Addendum
                  to Lease for Main Bank Facility(1)
  10.9
              Data
                  Processing Contract(1)
  10.10
              Employment
                  Contract for certain Executive
                  Officers(1)
  10.11
              Intentionally
                  omitted
  10.12
              Data
                  Processing Contract Amendment(2)
  10.13
              Intentionally
                  omitted
  10.14
              Intentionally
                  omitted
  10.15
              The
                  Employee Savings and Stock Ownership Plan, as
                  amended(3)
  17
  10.16
              Amendment
                  to Lease Agreement(4)
  10.17
              Employment
                  Agreement with Scott Eltjes(4)
  10.18
              Consulting
                  Agreement with David L. Miller(6)
  10.19
              West
                  Bancorporation, Inc. Restricted Stock Compensation
                  Plan(5)
  10.20
              Employment
                  Agreement between Investors Management Group and Jeff
                  Lorenzen(7)
  10.21
              Assignment
                  and Assumption of Lease and Consent to
                  Assignment(8)
  10.22
              2007
                  Amendment to Lease Agreement(9)
  10.23
              The
                  Appendix to the Proxy Statement for West Bancorporation, Inc. for
                  the 2007
                  calendar year(11)
  21
              Subsidiaries
  23
              Consent
                  of Independent Registered Public Accounting
                  Firm
  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
  (1)
              Incorporated
                  herein by reference to the related exhibit filed with the Form
                  10 on March
                  11, 2002.
  (2)
              Incorporated
                  herein by reference to the related exhibit filed with the Form
                  10-K on
                  March 26, 2003.
  (3)
              Incorporated
                  herein by reference to the related exhibit filed with the Form
                  S-8 on
                  October 29, 2004.
  (4)
              Incorporated
                  herein by reference to the related exhibit filed with the Form
                  10-K on
                  March 3, 2005.
  (5)
              Incorporated
                  herein by reference to the definitive proxy statement 14A filed
                  on March
                  10, 2005.
  (6)
              Incorporated
                  herein by reference to the related exhibit filed with the Form
                  10-Q on May
                  6, 2005.
  (7)
              Incorporated
                  herein by reference to the related exhibit filed with the Form
                  8-K on
                  February 22, 2006.
  (8)
              Incorporated
                  herein by reference to the related exhibit filed with the Form
                  10-K on
                  March 8, 2006.
  (9)
              Incorporated
                  herein by reference to the related exhibit filed with the Form
                  10-Q on May
                  4, 2007.
  (10)
              Incorporated
                  herein by reference to the related exhibit filed with the Form
                  8-K on
                  November 13, 2007.
  (11)
              Incorporated
                  herein by reference to the definitive proxy statement 14A filed
                  on March
                  7, 2008.




The
      Company will furnish to any person, upon request, and upon payment of a fee
      of
      $0.50 per page, a copy of any exhibit. Requests for copies of exhibits should
      be
      directed to Chief Financial Officer, West Bancorporation, Inc., 1601
      22 nd Street,
      West Des Moines, Iowa 50266.




18




SIGNATURES





Pursuant
      to the requirements of Section 13 or 15(d) of the Securities Exchange Act of
      1934, the Registrant has duly caused this report to be signed on its behalf
      by
      the undersigned, thereunto duly authorized.


WEST BANCORPORATION, INC.
              (Registrant)March
              7,
              2008
            By:
            /s/
              Thomas E. StanberryThomas
              E. StanberryChairman,
              President and Chief Executive Officer




Pursuant
      to the requirements of the Securities Exchange Act of 1934, this report has
      been
      signed below by the following persons on behalf of the registrant and in the
      capacities and on the dates indicated.


March
              7,
              2008
            By:
            /s/
              Thomas E. StanberryThomas
              E. StanberryChairman,
              President and Chief Executive Officer


March
                7,
                2008
              By:
              /s/
                Douglas R. GullingDouglas
                R. GullingExecutive
                Vice
                President and Chief Financial Officer
 March
                  7,
                  2008
                By:
                /s/
                  Marie I. RobertsMarie
                  I. RobertsVice
                  President and Controller
  BOARD
                  OF
                  DIRECTORSMarch
                  7,
                  2008
                By:
                /s/
                  Frank W. BerlinFrank
                  W. Berlin
 March
                    7,
                    2008
                  By:
                  /s/
                    Wendy L. CarlsonWendy
                    L. Carlson


March
                7,
                2008
              By:
              /s/
                Orville E. CrowleyOrville
                E. Crowley


March
                7,
                2008
              By:
              /s/
                George D. MilliganGeorge
                D. Milligan


March
                7,
                2008
              By:
              /s/
                Robert G. PulverRobert
                G. Pulver


March
                  7,
                  2008
                By:
                /s/
                  Jack
                  G. WahligJack
                  G. Wahlig


March
                  7,
                  2008
                By:
                /s/
                  Connie WimerConnie
                  Wimer




19




EXHIBIT
      INDEX





The
      following exhibits are filed herewith:


Exhibit
                  No.
              
              Description21
              
              Subsidiaries23
              
              Consent
                  of Independent Registered Public Accounting Firm31.1
              
              Certification
                  of Chief Executive Officer under Section 302 of the Sarbanes-Oxley
                  Act of
                  200231.2
              
              Certification
                  of Chief Financial Officer under Section 302 of the Sarbanes-Oxley
                  Act of
                  200232.1
              
              Certification
                  of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350,
                  as Adopted
                  Pursuant to Section 906 of the Sarbanes-Oxley Act of
                  200232.2
              
              Certification
                  of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350,
                  as Adopted
                  Pursuant to Section 906 of the Sarbanes-Oxley Act of
                  2002




20