West Bancorporation Inc., parent company of West Bank and WB Capital Management Inc., announced today that it is increasing its provision for loan losses for the first quarter of 2008 by $5 million due to Regency Homes suspending operations.

West Bank does not have any loans directly to Regency; however it does have seven loans outstanding to individuals related to Regency and six loans outstanding to limited liability companies in which the aforementioned individuals and others are owners.

These loans total approximately $22 million. Approximately $18 million of the loans are secured by first mortgages and limited guarantees from the owners of the borrowers. Loans totaling approximately $4 million are unsecured. None of these loans are in default, and several of the loans are believed to have collateral values sufficient to cover the amounts owed to West Bank.

West Bancorporation issued a press release on April 17 announcing its first quarter 2008 earnings. The company is adjusting its results for the first quarter of 2008 due to the effects of Regency ceasing operations. As a result of the additional provision for loan losses of $5 million, the company reported net income for the first quarter as $1.374 million, or 8 cents per share, compared with $4.444 million, or 25 cents per share, for the same period last year.

The return on average equity and return on average assets were 4.54 percent and 0.42 percent, respectively, compared to 15.86 percent and 1.38 percent, respectively, for the first quarter of 2007. The allowance for loan losses as a percent of total loans as adjusted was 1.42 percent as of March 31, compared to 0.092 percent as of March 31, 2007. Because the company and West Bank remain well-capitalized, no reduction in the quarterly dividend is currently anticipated.