Charter Federal Savings Bank, Bristol, Va., declared a one-for-five reverse stock split for outstanding common stock.
The reverse stock split will be effective Dec. 20. It will reduce the number of shares of the common stock outstanding to 5.1 million shares from 25.6 million shares.
No fractional shares will be issued in connection with the reverse stock spilt.
Cecil R. McCullar, president and chief executive, said the reverse stock spilt was expected to benefit the bank and its stockholders by increasing the per-share trading price of the Charter's common stock, and enable it to qualify as a marginable stock.
Charter has $718 million of assets, $546 million in deposits and 26 offices in Virginia and Tennessee.