June 7 - West Bancorporation Inc. (Nasdaq: WTBA), parent company of West Bank in West Des Moines, Iowa, is pleased to report that on June 5, 2013, it repurchased 1,440,592 shares of company common stock owned by American Equity Life Holding Co., which represents 100 percent of AEL's position in the company's shares.
Representatives of AEL had contacted the company indicating a desire to sell their investment in the company. The company, with the assistance of its financial advisor Sandler O'Neill + Partners L.P., evaluated the merits of repurchasing the stock and chose to pursue the repurchase transaction.
The purchase price was $10.95 per share, for total consideration of $15,774,482. The company will ultimately finance the purchase by borrowing the funds, and it is anticipated that the lending facility will be completed prior to June 30, 2013. Management believes the low interest rate environment makes the lending facility an attractive funding source for the transaction.
"We view this transaction as an acquisition of the company we know best," said David Nelson, president and CEO of the company. "We evaluate the merger and acquisition market for other institutions from time to time. Based on the current landscape, and based on West Bank's long history of success in building a strong, earnings-driven community bank, we feel this transaction represents an excellent use of our financial resources and creates value for our shareholders."
About West Bancorporation Inc.
West Bancorporation Inc. is headquartered in West Des Moines, Iowa. Serving Iowans since 1893, West Bank, a wholly owned subsidiary of West Bancorporation Inc., is a community bank that focuses on lending, deposit services, and trust services for consumers and small- to medium-sized businesses. West Bank has eight full-service offices in the Des Moines metropolitan area, two full-service offices in Iowa City, one full-service office in Coralville and a loan production office in Rochester, Minn.