NEWPORT – The buying spree resumes at Newport Bancorp Inc.
Newport Bancorp (Nasdaq: NFSB), the holding company for Newport Federal Savings Bank, says it plans to repurchase up to 191,508 of its own shares – or 5 percent of the outstanding common stock.
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That decision comes just two months after the bank announced it completed its fourth stock repurchase program, in which it acquired 199,852 shares – or 5 percent – of NFSB outstanding common stock at an average price of about $12.21 per share.
The stock price has ranged between $10.91 and $12.99 over the last 12 months. As of Feb. 17, shares stood at $12.
NFSB said purchases will come from time to time depending on market conditions and other factors.
Typically, a public company buys back its 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.
