DES MOINES, Iowa (AP) — The parent company of West Bank says it has repurchased 1.4 million shares of its stock from American Equity Investment Life Holding Co.
The purchase, valued at $15.8 million, represents all of the stock the West Des Moines-based life insurance company held in the bank, which also is based in West Des Moines.
West Bank’s parent corporation, West Bancorporation, says it paid $10.95 per share. Shares have traded between $9 and $12.35 in the past year. The money for the stock repurchase will be borrowed.
CEO David Nelson says buying the stock is an excellent use of the company’s resources and creates value for shareholders.
When a company buys its shares reducing the number publicly traded, the earnings per share increases for those who continue to hold the stock.