Q&A talks about investor relations with Marliese L. Shaw, vice president, investor relations, Rockville Financial Inc. (RCKB)
Q: What’s the genesis of the new Shareholder Information Services system? Was it driven by the move to being entirely publicly held?
A: Yes, the system implementation was driven by the move to being entirely publicly held. Now that we are fully public, access to up-to-date transparent data about the company is more important than ever. We have an officer focusing 100 percent on investor relations to continue to provide personalized service and information to our shareholders. Customer service is our hallmark and, as we grow, we will to continue to provide important information to our community of investors, and the investor relations web-link is one element of that endeavor.
Q: It is designed to provide shareholders with “timely and thorough” information to assist them in making informed decisions about their investments in the company’s common stock. What’s the definition of timely and thorough?
A: “Timely and thorough” means that the web-link will be updated with all of the company’s SEC filings promptly upon receipt by the SEC, whether they be financial data related or other company news. The site is interactive and provides a wealth of information including current and historical stock price data, dividend history, dividend announcements, financial information, investor presentations, news releases, and users will have the ability to subscribe for email notices of events, press releases and regulatory filings — quite thorough in the availability of data at the shareholders’ fingertips.
Q: Are there any potential downsides to information being provided this quickly? Does it make shareholders too reactive? What was your company’s initial concerns that had to be addressed when putting this system into place?
A: The information that is provided on the company’s web-link is available to shareholders in a timely manner via the SEC’s website and media news releases as well. Therefore, shareholders who will react to items they may view on the web-link will not react any quicker than they may have without the web-link; however, the data on the web-link is more “user-friendly” and interactive and perhaps this will lead to a more informed, less reactive decision in the end. Additionally, press releases and executive quotes are included in their entirety, which will allow for investors to have full disclosure rather than just the pieces of the news releases that may be disseminated through the media, which is additionally beneficial to the investor.
Q: Are there compliance issues behind the release of this information? If so, how does that work? How is the information vetted before release?
A: With regard to compliance, the company is required to update the web-link within short timeframes after submitting filings with the SEC. We are ready to commit to that compliance requirement and have put in place the necessary procedures to update the web-link on a timely basis. Additionally, we are required to make clear on the Rockville Bank website that any investments in the company’s common stock are not deposits and are not FDIC insured. We do so in a disclosure statement located on the bank’s website before you access the company web-link.
Q: Is the implication of the shareholder information services system driven by any federal mandates? Or is this a new program driven by the company’s new status?
A: The company is not required by any federal or state regulation to maintain a corporate website; however, in light of the company’s new status as a fully public institution we wanted to take advantage of the opportunity to inform current and potential shareholders about our “brand-new 153-year-old company,” as William (Bill) H. W. Crawford, IV, the company’s president and CEO, often says. Although the bank has been around for 153 years, we’ve had little exposure in the investment world beyond our local marketplace as a partially public company and have been trying to increase awareness and make our story known as a fully public company — the new company web-link helps us do just that.
Q: Does a system like this ultimately save the company money? Investors can register to receive information by email. Will this replace the expense practice of having to print and mail this information?
A: We view this as an investment in investor relations. There is a cost to maintaining the site; however, the real-time availability of information adds value to the shareholder. This delivery channel may help to reduce communication costs in the future.
For more information about Rockville Financial, Inc. (RCKB), visit Investor Relations at www.rockvillebank.com — About Us. Shareholder contact is Marliese L. Shaw, vice president, investor relations, mshaw@rockvillebank.com
