Forrest City Financial Corporation announces stock repurchase program

Business Wire, August 1, 1996

FORREST CITY, Ark.--(BUSINESS WIRE)--Aug. 1, 1996--Forrest City Financial Corporation (FOCF) (Pink Sheets), holding company for Forrest City Bank, FSB announced its intentions today to repurchase up to 5% of its outstanding shares, or 10,000 shares, in the open market over the next six months, commencing on or after Aug. 5, 1996. The shares will be purchased at prevailing market prices from time to time over a six month period, depending upon market conditions.

John R. Stipe, President and CEO, indicated that the Board of Directors approved the repurchase program in view of the current price level of the Corporation's common stock and the strong capital position of the Corporation and its subsidiary, Forrest City Bank, FSB. Mr. Stipe stated "We believe the repurchase of our shares represents an attractive investment opportunity which will benefit the Corporation and our stockholders. The repurchased shares will become treasury shares available for general corporate purposes, including the issuance of shares in connection with the exercise of stock options."

Since the company completed its conversion to a publicly owned stock company on July 28, 1994, at $15.00 per share, the stock has traded between $11.50 and $16.75. On March 31, 1996, the Corporation had $47.45 million in assets and stockholders' equity of $4.90 million. On that date, the Corporation had 201,699 shares outstanding.

CONTACT: Forrest City Financial Corporation, Forrest City

John R. Stipe, 501/633-1525