WEST BANCORPORATION INCWTBA

WEST BANCORPORATION INC Debt Disclosure

10-KFiled Feb 22, 20242 min read
Long-Term Debt
In December 2021, the Company entered into a credit agreement with a commercial bank and borrowed $40,000. The borrowing was used to make a capital injection into the Company’s subsidiary, West Bank. Interest under the term note is payable quarterly over five years. Required quarterly principal payments of $1,250 began in May 2023, with the remaining balance due February 2027. The Company may make additional principal payments without penalty. The interest rate is variable at the Wall Street Journal Prime Rate minus 1.00 percent, which totaled 7.50 percent as of December 31, 2023. The Company has an interest rate swap contract that effectively converts $20,000 of the borrowings to a fixed rate of 6.40 percent. See Note 11 for additional information on the interest rate swap. In the event of default, the unaffiliated commercial bank may accelerate payment of the loan. The outstanding balance was $36,250 and $40,000 as of December 31, 2023 and 2022, respectively. The note is secured by 100 percent of West Bank’s stock.

West Bank’s special purpose subsidiary has a credit agreement for $11,486. Interest is payable monthly over the term of the agreement with an interest rate of one percent. Monthly principal payments begin in January 2026 and the agreement matures in December 2048. The outstanding balance was $11,486 as of December 31, 2023 and 2022.

Future required principal payments for long-term debt as of December 31, 2023 are shown in the table below.
2024$5,000 
20255,000 
20265,446 
202721,701 
2028455 
Thereafter10,134 
$47,736 

Historical Timeline

Fiscal YearFiled
2023Feb 22, 2024Showing above
2022Feb 23, 2023
2021Feb 24, 2022
2020Mar 1, 2021
2019Feb 27, 2020
2018Feb 28, 2019
2017Mar 1, 2018
2016Mar 1, 2017
2015Mar 3, 2016

About Debt Disclosures

Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.

Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.

Other Available Disclosures

Income TaxesEarnings Per ShareFair ValuePP&ELeasesCommitmentsStock CompensationNew Standards