Wis. Admin. Code Department of Financial Institutions § DFI-SB 21.14 - Restrictions on repurchase of stock and payment of dividends

Current through March 28, 2022

Each savings bank that converts under this chapter shall be subject to the following conditions:

(1) STOCK REPURCHASE RESTRICTIONS. No savings bank for 3 years from the date of the completion of the conversion, may repurchase any of its capital stock from any person, except that this restriction shall not apply to:
(a) A repurchase, on a proportionate basis, pursuant to an offer approved by the division and made to all shareholders of the savings bank;
(b) The repurchase of shares of a director; or
(c) A purchase in the open market by an employee benefit plan in an amount reasonable and appropriate to fund the plan.
(2) DIVIDEND PAYMENT RESTRICTIONS. No savings bank shall declare or pay a dividend on, or repurchase any of its capital stock, if the effect would cause the regulatory capital of the savings bank under s. 214.43, Stats., to be reduced below the amount required for its liquidation account.
(3) PREAPPROVAL OF CERTAIN REPURCHASES OF STOCK. A savings bank subject to sub. (1) may repurchase its capital stock if the repurchases do not reduce the savings bank's ratio of regulatory capital to assets below 6% under s. 214.43, Stats., and any of the following apply:
(a) The repurchases are part of an open-market stock repurchase program or other stock repurchase program approved by the division that does not involve greater than 5% of the savings bank's outstanding capital stock during a 6 month period.
(b) The savings bank provides to the division, no later than 10 days prior to the commencement of a repurchase program, written notice containing a full description of the repurchase program to be undertaken and the effect of these repurchases on its regulatory capital position, and the division does not disapprove the repurchase program based upon a determination that:
1. The repurchase program would adversely affect the financial condition of the savings bank; or
2. The information submitted by the savings bank is insufficient upon which to base a conclusion as to whether its financial condition would be adversely affected.
(c) An open market or other stock repurchase program containing terms and conditions other than those in this subsection if approved by the division in writing.

Notes

Wis. Admin. Code Department of Financial Institutions § DFI-SB 21.14
CR Register, February, 1994, No. 458, eff. 3-1-94.

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