Each savings bank that converts under this chapter shall be
subject to the following conditions:
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:
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;
(c) A purchase in the open
market by an employee benefit plan in an amount reasonable and appropriate to
fund the plan.
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.
Stats., to be reduced below the amount required for its liquidation
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.
Stats., and any of the following apply:
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
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.