When a company such as XBKS conducts a reverse share split, it is usually because shares have fallen to a lower per-share pricepoint than the company would like. This can be important because, for example, certain types of mutual funds might have a limit governing which stocks they may buy, based upon per-share price. The $5 and $10 pricepoints tend to be important in this regard. Stock exchanges also tend to look at per-share price, setting a lower limit for listing eligibility. So when a company does a reverse split, it is looking mathematically at the market capitalization before and after the reverse split takes place, and concluding that if the market capitilization remains stable, the reduced share count should result in a higher price per share.

Looking at the XBKS split history from start to finish, an original position size of 1000 shares would have turned into 100 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into XBKS shares, starting with a $10,000 purchase of XBKS, presented on a split-history-adjusted basis factoring in the complete XBKS split history.

About XBKS

Xenith Bankshares is a bank holding company. Through its subsidiary, Xenith Bank, Co. is a commercial bank engaged in providing a range of commercial and retail banking products, including commercial and industrial, commercial and residential real estate and consumer loans, including marine finance floorplan and end-user products through Shore Premier Finance. Co. also provides a range of checking, savings and treasury products, including remote deposit capture, automated clearing house transactions, debit cards, automated teller machine access, Internet and mobile banking, and bill pay service. As of Dec 31 2016, Co. had total assets of $3.27 billion and total deposits of $2.57 billion. According to our XBKS split history records, XBKS has had 1 split.

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