West Bancorporation Inc.’s profits rose 114 percent to $2.94 million in the first quarter as bank deposits and other business grew from the previous-year period.

After a preferred stock dividend and discount totaling $567,000, net income was $2.37 million, or 14 cents per share, compared with $1.37 million, or 8 cents per share, in the year-ago period. The return on average equity and return on average assets were 7.84 percent and 0.75 percent, respectively, compared with 4.54 and 0.42 a year ago.

Deposits at its West Bank subsidiary were up about 35 percent to $1.2 billion, which the West Des Moines-based company attributes to attractive account offerings, customers’ concerns about the economy, a decline in the stock market and an increase in the Federal Deposit Insurance Corp. (FDIC) deposit insurance limit. However, the bank said some of the recent deposits could move out of the bank once other investments become more attractive.

Loans grew by $21.68 million during the first quarter and are $116.6 million higher than on March 31, 2008. However, the company said due to economic conditions, the number of loan applications is decreasing and loan growth will likely taper off in upcoming quarters.

West Bank incurred impairment losses of $1.38 million in the quarter on two trust preferred securities. However, it gained $1.45 million on the sale of investment securities in the first quarter. Provisions for loan losses were $3.5 million for the quarter, down $2.1 million from last year. Nonperforming assets were $44.1 million, compared with $35.8 million at the end of 2008, primarily related to two real estate developers with loans totaling $6.5 million.

Net interest income rose to $9.9 million, though the net interest margin decreased because the company put more of its money into shorter-term investments. Noninterest income was up nearly $500,000, primarily because of $840,000 the bank collected from a life insurance policy.

Noninterest expenses were up $738,000, with an increase in FDIC insurance expenses of $421,000. The change was related to West Bank using up a credit that was used previously to offset a portion of its FDIC expense. Banks also could face a one-time special assessment to restore the Deposit Insurance Fund, which West Bank estimates could be between 10 and 20 basis points of total deposits held by the bank, or an additional expense of $1.2 million to $2.4 million.