NEWPORT – Newport Bancorp Inc. (Nasdaq: NFSB), the holding company for Newport Federal Savings Bank, has announced that it has completed its third stock repurchase program.
The company said it acquired 440,270 shares – or 10 percent – of NFSB’s outstanding common stock at an average price of about $11.54 per share.
The stock price has ranged between $10.50 and $13.25 over the last 12 months,with its most recent trades on March 11 coming at $11.44.
Last July, Newport Bancorp completed a second repurchase program in which it purchased 231,721 shares – or 5 percent of the outstanding stock – at an average purchase price of about $12.45.
Typically, public companies buy back their own shares as a way of returning wealth to shareholders. The move reduces the number of outstanding shares on the market, thereby increasing the ownership stake of each investor. Often, companies will start buying when they believe their shares are selling below their true value.
Newport Bancorp Inc. (Nasdaq: NFSB) is the holding company for Newport Federal Savings Bank – a $432.33 million institution created by the 2005 merger of Newport Fed and Westerly Savings Bank, that converted from a mutual bank to a shareholder-owned institution in mid-2006. Newport Fed has five branches, all in Rhode Island. Additional information is available at www.NewportFederal.com.
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