West Bancorporation Inc. (WTBA) said Wednesday it redeemed all
$36 million of preferred stock issued to the U.S. Treasury
Department, ending the bank's participation in the Troubled Asset
Relief Program, or TARP.
President and Chief Executive David Nelson said the news was
"very good" for the company and its shareholders, as West Bancorp
is relieved of some additional regulatory burdens and will no
longer be required to pay preferred stock dividends. Since the end
of 2008, the company has paid about $4.5 million in dividends to
the Treasury.
Looking forward, Nelson said the Iowa-based bank could now use
the company's improved earnings to compensate shareholders and
retain capital for future growth.
The news wasn't entirely a surprise, as Nelson had hinted the
company's strong performance during the first quarter would likely
allow it to finalize the TARP repayment plan. In late April, West
Bancorp reported its first-quarter profit jumped 36% on fewer loan
loss provisions.
Shares of West Bancorp, which has 11 banking locations in Des
Moines, Iowa City and Coralville in Iowa, closed down 0.4% to $8.52
and were inactive after hours.
-By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com