WEST BANCORPORATION INCWTBA

WEST BANCORPORATION INC Leases Disclosure

10-KFiled Feb 26, 20262 min read
Operating Leases
The Company leases real estate for four branch offices. The lease agreements have maturity dates ranging from September 2030 to September 2036, some of which include options to renew at the Company's discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the measurement of the right-of-use asset and lease liability. The weighted average remaining lives of the lease terms used in the measurement of the operating lease liability were 8.7 years and 9.6 years as of December 31, 2025 and 2024, respectively.

The discount rate used in determining the lease liability at lease commencement or extension is the FHLB fixed advance rate which corresponds with the remaining lease term. For operating leases existing prior to January 1, 2019, the rate for the remaining lease term as of January 1, 2019, was used. The weighted average discount rates used in the measurement of the operating lease liabilities were 4.07 percent and 4.06 percent as of December 31, 2025 and 2024, respectively.

Operating lease right-of-use assets are included in premises and equipment. Operating lease liabilities of $4,140 and $4,551 were included in other liabilities as of December 31, 2025 and 2024, respectively. Rent expense related to these leases was $573, $972 and $1,510, for the years ended December 31, 2025, 2024 and 2023, respectively.

Total estimated rental commitments for the operating leases were as follows as of December 31, 2025.
2026$593 
2027600 
2028610 
2029611 
2030579 
Thereafter1,964 
Total lease payments4,957 
Less: present value discount(817)
Present value of lease liabilities$4,140 

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 20, 2025
2023Feb 22, 2024
2022Feb 23, 2023
2021Feb 24, 2022
2020Mar 1, 2021
2019Feb 27, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Other Available Disclosures

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