West Bancorp Redeems $36 Million Of Preferred Stock, Exits TARP

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; [e-mail]