Dec 20 - Charter Financial Corp., West Point, Ga., (Nasdaq: CHFN) has adopted a stock repurchase program. Under the repurchase program, the company may repurchase as many as 571,577 shares of its common stock, or approximately 2.5 percent of the current outstanding shares.
Although federal regulations generally prohibit a company from repurchasing its shares of common stock within one year following a mutual-to-stock conversion, there is an exception that permits a company to repurchase shares to fund a restricted stock plan, subject to the receipt of non-objection from the Board of Governors of the Federal Reserve System. The company has received non-objection from the FRB with respect to the repurchase program, which is being used to fund grants of restricted stock under the company's 2013 Equity Incentive Plan approved by shareholders on Dec. 11, 2013.
The repurchase program permits shares to be repurchased in open market or private transactions, through block trades, and pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities and Exchange Commission.
Repurchases will be made at management's discretion at prices management considers to be attractive and in the best interests of both the Company and its shareholders, subject to the availability of stock, general market conditions, the trading price of the stock, alternative uses for capital, and the company's financial performance. Open market purchases will be conducted in accordance with the limitations set forth in Rule 10b-18 of the Securities and Exchange Commission and other applicable legal requirements.
The repurchase program may be suspended, terminated or modified at any time for any reason, including market conditions, the cost of repurchasing shares, the availability of alternative investment opportunities, liquidity, and other factors deemed appropriate. These factors may also affect the timing and amount of share repurchases. The repurchase program does not obligate the company to purchase any particular number of shares.
About Charter Financial Corp.
Charter Financial Corp. is a savings and loan holding company and the parent company of CharterBank, a full-service community bank. On April 8, 2013, Charter Financial completed its conversion and reorganization from the mutual holding company form of organization to the stock holding company form of organization. CharterBank is headquartered in West Point, Ga., and operates branches in West Central Georgia, East Central Alabama and the Florida Gulf Coast.