NewportFed parent resuming buybacks, sets 5% goal of outstanding shares

NEWPORT – Newport Bancorp Inc., the holding company for NewportFed, says it plans to repurchase up to 181,933 of its own shares – or 5 percent of the outstanding common stock – continuing a buying spree that has lasted more than three years.
The decision comes just five months after the company announced a similar stock repurchase program.
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 said the repurchases, which will be conducted on the open market or through privately negotiated transactions, will be made from time to time depending on market conditions and other factors. •