West Bancorp's (WTBA) Enters U.S. Bank Services Transition Agreement with Several Smaller Banks

June 9, 2010 2:27 PM EDT
On June 3, 2010, West Bank, the wholly-owned subsidiary of West Bancorporation, Inc. (Nasdaq: WTBA), entered into a U.S. Bank Services Transition Agreement with SmartyPig, L.L.C., Compass Bank, an Alabama banking corporation, WB Funding Corporation, and Macks, Inc. The agreement is dated and effective June 2, 2010. The Company has previously disclosed that West Bank has requested that SmartyPig acquire depository services from a larger bank due to the growth of the online savings program. The June 2 transition agreement is the culmination of the combined efforts of West Bank and SmartyPig.

The agreement defines the process for transferring the SmartyPig related savings accounts from West Bank to Compass Bank by July 31, 2010. As of today, the dollar amount of those deposits is approximately $156 million. West Bank has sufficient liquidity to accomplish transition of the accounts. The agreement also provides that West Bank will relinquish its right to appoint one member to the SmartyPig Board of Managers after the transition is complete. WB Funding Corporation, a subsidiary of West Bank, will continue to own approximately eleven percent of SmartyPig after the accounts transition.

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