Aspen Bancshares Approves Five-for-Four Common Stock Split

Strategic Insights -

Aspen Bancshares, a leading bank in Colorado, has announced a significant move to boost its shareholders' returns. The company's Board of Directors has approved a five-for-four common stock split, which will be distributed as a stock dividend to shareholders on record by October 10, 1995. This decision comes on the heels of a successful previous stock split, and the company aims to signal its optimism for its future prospects. The move is expected to increase the shares' trading liquidity and provide a positive signal to investors.

Key Takeaways:

  • Aspen Bancshares has approved a five-for-four common stock split, to be distributed as a stock dividend on October 10, 1995.
  • The company will maintain the current $0.20 per share dividend, resulting in a 25% increase in the cash payout.
  • This is the second stock split and cash payout increase in the past two years.
  • The Board of Directors also declared a regular quarterly dividend of $0.05 per share, payable on October 3, 1995.
  • Charles Israel, President and Chief Executive, stated that the stock split aims to improve trading liquidity and signal the company's positive perception of its long-term future.
  • Aspen Bancshares is the parent company of Pitkin County Bank and Trust, Aspen's largest bank, and Centennial Savings Bank, the largest thrift in western Colorado.

Statistics:

  • 5-for-4 common stock split to be distributed on October 10, 1995.
  • 25% increase in the cash payout per share.
  • $0.20 per share dividend to be maintained, resulting in a 25% increase.
  • 2 years since the previous stock split and cash payout increase.
  • $0.05 per share quarterly dividend payable on October 3, 1995.

Sources:

  • Businesswire, August 29, 1995
  • Aspen Bancshares' Board of Directors announcement
  • The Levine Group, New York, 212/682-8875