Former CU Buying Back Stock to Build Stock Value

TACOMA, Wash. – Rainier Pacific Financial Group, the mutual holding company which owns the $760 million Rainier Pacific Bank announced it is buying back 5% or 372,000 shares of its outstanding stock. This is the second time in the bank’s first year of stock issuance that it is doing a 5% buy back. The bank calculated that the buy back would be the best use of the bank’s capital for its shareholders, according to Vic Toy, senior vice president for Rainier Pacific. A buy back means the stock repurchased would be retired and the per share value of the remaining stock would increase. “The pie remains as large but the size of the slices shrinks,” Toy explained. “That means the value of each slice increases.” Toy also explained that a 5% buy back is, in stock terms, not very large. In addition, the more stock that is retired, the more might be available to be issued again should the bank decide it needed more capital, Toy said. Since the former Rainier Pacific Credit Union changed to a mutual bank charter in January of 2001 it has increased its assets from $389 million to $748 million, Toy said.