ASHLAND, Ky., Nov. 20, 2013 /PRNewswire/ -- Poage Bankshares, Inc. (NASDAQ: PBSK) (the "Company" or "Poage Bankshares") today announced that its Board of Directors approved a program to repurchase, from time to time and subject to market conditions, up to 12,650 shares of Company outstanding common stock through open-market purchases, block trades, negotiated private transactions and pursuant to a trading plan that will be adopted in accordance with Rule 10b5-1 under the Securities Exchange Act of 1934 (the "Third Repurchase Program"). The Third Repurchase Program will commence on November 21, 2013 and terminate prior to the mailing of the proxy statement for the approval of Poage Bankshare's acquisition of Town Square Financial Corporation to its stockholders. The Company's stock repurchases pursuant to the Third Repurchase Program is dependent on certain factors, including but not limited to, the timing of the mailing of the Town Square Financial Corporation proxy statement, the timing of the Town Square Financial Corporation special meeting to approve the merger agreement, market conditions and prices, available funds and alternative uses of capital.
In conjunction with the Board's authorization of the Third Repurchase Program, the Company's Board of Directors terminated the Company's previous stock repurchase program, initially authorized on June 11, 2013 (the "Second Repurchase Program"). The Company terminated the Second Repurchase Program due to the price limitations on stock repurchases under the Second Repurchase Program and to facilitate compliance with SEC rules regarding stock repurchases during the pendency of its acquisition of Town Square Financial Corporation. Between June 11, 2013 and November 19, 2013, the Company repurchased 18,961 shares of common stock through the Second Repurchase Program.
Regarding the authorization of the Third Repurchase Program, Ralph E. Coffman, Jr. stated "Poage Bankshares is committed to increasing shareholder value over time, including through purchasing PBSK shares at reasonable market prices. While we acknowledge that stock repurchases during the pendency of a merger are limited by SEC rules, we believe this Third Repurchase Program is a worthwhile endeavor."
The Board of Directors of the Company may authorize a fourth stock repurchase program following completion of the Town Square Financial Corporation special meeting.