The Bank of Princeton ( BPRN Quick Quote BPRN - Free Report) is rewarding shareholders with enhanced capital-deployment activities. The company has announced a new share-repurchase program.
The company’s board of directors authorized repurchase of 339,788 shares worth up to $10.4 million this year. This accounts for nearly 5% of its outstanding common shares.
Notably, Bank of Princeton will not start repurchasing shares before Apr 1 or till the New Jersey Department of Banking and Insurance approves the plan. The company has already received the approval from the Federal Deposit Insurance Corporation for the same.
The program may also be limited, suspended or terminated without prior notice as it does not oblige the bank to acquire any particular amount of common stock.
Bank of Princeton’s president/CEO Edward Dietzler said, "With our current stock price trading below our book value per share, our planned stock repurchase program reflects our Board's efforts to maximize shareholder value by enhancing future periods' earnings-per-share and return-on-equity without any dilution."
Additionally, the bank’s chairman Richard Gillespie stated, "We are hopeful that the benefits from our stock repurchase plan will increase the liquidity of the Bank's common stock, which will benefit all of our shareholders. In addition, after giving effect to this repurchase, the Bank will remain well capitalized, which was an essential requirement for us to move forward with this plan."
Further, the company pays regular cash dividends on a quarterly basis. In January, it announced a quarterly cash dividend of 12 cents per share, representing a 20% increase from the prior payout. Considering the last day’s closing price of $28.06, the dividend yield currently stands at 1.71%. This yield is quite attractive to income investors.
Over the past six months, shares of The Bank of Princeton have apreciated 47.9%, underperforming the
industry’s rally of 79.1%.
Bank of Princeton currently sports a Zacks Rank #1 (Strong Buy). You can see
. the complete list of today’s Zacks #1 Rank stocks here Other Finance Companies That Took Similar Actions
Several finance companies have announced new share-repurchase programs in recent months. Some of these are
Ally Financial ( ALLY Quick Quote ALLY - Free Report) , Chemung Financial ( CHMG Quick Quote CHMG - Free Report) and M&T Bank Corporation ( MTB Quick Quote MTB - Free Report) .
Ally Financial’s board of directors has authorized repurchase of up to $1.60 billion worth of shares this year. Chemung Financial’s board of directors has authorized a buyback plan of up to 250,000 shares. Further, the board of directors of M&T Bank has authorized a stock-repurchase program of up to $800 million of shares of common stock.
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