Dividend and One Million Share Repurchase Approved at Subsequent Board Meeting; Director Announces Decision to Resign
NetBank, Inc. (NASDAQ: NTBK), a diversified financial services provider and parent company of NetBank(R) (www.netbank.com), held its 2005 Meeting of Shareholders on April 28 in Alpharetta, Ga. Eighty-nine percent of the total shares outstanding were represented at the meeting.
The company presented shareholders with two routine proposals, one for the election of directors and the second for the ratification of its independent auditors. Both proposals passed. Directors J. Stephen Heard, Douglas K. Freeman and Catherine A. Ghiglieri were each elected to a three-year term with more than 87 percent of the vote. Ernst & Young was also ratified as the company's independent auditor with more than 88 percent of the vote.
After the shareholders meeting, the board of directors conducted its annual meeting. Noteworthy items or actions include the following:
-- A dividend of $.02 per share was declared for shareholders of record as of May 15, 2005. The dividend will be disbursed on June 15.
-- Directors authorized an additional one million shares for the company's stock repurchase plan. During the first quarter of 2005, management bought back 423,726 shares of stock at an average price of $9.29 per share. Along with shares remaining under prior authorizations at quarter-end, management now has approval to repurchase up to 1.2 million shares.
-- T. Stephen Johnson, chairman emeritus, resigned from the board. The Corporate Governance committee will now conduct a search to fill the vacant director position and provide its recommendation to the full board. At present, the board is comprised of 10 members, nine of whom are independent directors.
"Steve's contributions to NetBank and its shareholders are immeasurable," said Douglas K. Freeman, chairman and chief executive officer. "As a visionary and founder of our company, he helped steer us through the critical start-up and early operational phases. He is leaving behind a legacy of insight and passion that will continue to guide our company well into the future."
About NetBank, Inc.
NetBank, Inc. (NASDAQ: NTBK) operates with a revolutionary business model through a diverse group of complementary financial services businesses that leverage technology for more efficient and cost effective delivery of services. Its primary areas of operation include personal and small business banking, retail and wholesale mortgage lending, and transaction processing. For more information, please visit www.netbankinc.com.
SOURCE: NetBank, Inc.
NetBank, Inc., Atlanta
Matthew Shepherd, 678-942-2683