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May 20, 2013

CT's Rockville Bank plans $36M share buyback

Contributed Photo Rockville Financial Chairman and CEO Bill Crawford IV, center, his lieutenants and members of the bank's board visited Nasdaq's Times Square broadcast studio in April to ring the 4 p.m. electronic closing bell.

Vernon's Rockville Financial Inc. said Monday it will sweeten shareholder value by repurchasing 10 percent, or $36 million, of its shares in the coming months.

The buyback's value is tied to Rockville's Friday closing stock price of $13.21.

It's second time the parent to Rockville Bank is implementing a stock repurchase plan since going public in 2011.

Rockville officials say they will repurchase shares from time-to-time in open market or negotiated transactions.'

Buying back shares boosts the value of individuals' and institutions' stock holdings by reducing the number of shares in investors' hands.

In Rockville's case, the extra capital it has available is better in the hands of its investors.

“We view repurchases as an important capital management tool available to reach that goal." Rockville President and CEO William H. W. Crawford IV said in a statement.

The first $34 million repurchase program began in 2012 and is 88 percent complete, officials said. Once the company sells the remaining 342,000 shares of its initial buyback, it will open its second buyback of 2.7 million shares.

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