In Brief: Oregon Thrift Company Plans a 20% Buyback

Klamath First Bancorp of Klamath Falls, Ore., said it would repurchase 20% of its outstanding stock in a Dutch auction tender.

The $1 billion-asset thrift, which converted from a mutual to a stock holding company in 1995, said the buyback would quickly improve its return on equity and earnings per share. The transaction, announced Oct. 9, involves more than 1.98 million shares.

Klamath First said that as of Sept. 30 it was no longer restricted by Office of Thrift Supervision regulations regarding buybacks. OTS policy states that converted thrifts may not repurchase more than 25% of their outstanding stock for three years after their public offering date.

Under the Dutch auction procedure, Klamath First has set a price range of $15.50 to $19.50. Beginning Oct. 23, shareholders may offer to sell all or a portion of their shares back to the bank at a price within that range.

When the auction period closes on Nov. 19, Klamath First will review the offers and select a uniform price, at which it will buy as many as two million shares.

Keefe, Bruyette & Woods Inc. is the financial adviser for the transaction.

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