Back to top

Image: Bigstock

QCR Holdings (QCRH) Announces 1.5M Stock Repurchase Plan

Read MoreHide Full Article

QCR Holdings, Inc. (QCRH - Free Report) announced that its board of directors authorized a share repurchase program to repurchase up to 1,500,000 shares of its outstanding common stock. This accounts for 8.5% of the outstanding shares as of May 1, 2022.

With this, the company renewed its buyback plan. On Feb 13, 2020, it was authorized to repurchase up to 800,000 million shares of its outstanding common stock, or around 5% of the outstanding shares as of Dec 31, 2019.

The program was paused during the pandemic and restarted in March 2022. In first-quarter 2022, the company repurchased 77,500 shares, bringing the total number of shares repurchased to 471,585. As of the first-quarter end, it had 328,415 shares remaining.

Management noted, “The plan provides us with another tool to best allocate capital and allows us to buy back our shares when it fits within our capital plan.”

Further, the company is growing on the back of strategic acquisitions. QCR Holdingsclosed the stock-and-cash merger with Guaranty Federal Bancshares, Inc. on Apr 1, 2022.At the time of the acquisition announcement, QCR Holdings stated that the transaction would increase its deposit market share with $1.4 billion in deposits, based on data as of Jun 30, 2021. Growth opportunities through the expansion of niche products and services to new clients in the Springfield market are also attractive.

QCR Holdings is growing organically, backed by its robust loan growth and a recovering economy. Its encouraging loan pipeline suggests accelerated growth in the near term.

Supported by its earnings strength and solid balance sheet, the company is expected to continue efficient capital deployment activities. Through this, it will keep enhancing shareholder value.

The QCRH stock has gained 7.5% against the industry’s fall of 19.6% over the past year.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Finance Stocks That Took Similar Action

Piper Sandler Companies’ (PIPR - Free Report) board of directors approved the repurchase of up to $150 million worth of PIPR’s outstanding stock.

The buyback program, which is effective immediately and will expire on Dec 31, 2024, is in addition to the existing authorization. The current plan, announced in November 2021, became effective on Jan 1, 2022, and expires on Dec 31, 2023. Under this, PIPR is authorized to repurchase up to $150 million worth of shares and has roughly $43 million remaining as of May 6, 2022.

Capital One (COF - Free Report) has been meaningfully deploying capital to enhance shareholders’ value. In sync with this, the company announced additional share repurchase authorization worth $5 billion, effective from third-quarter 2022.

The authorization is in addition to the $5-billion buyback plan for this year, which was announced this January. COF repurchased shares worth $7.5 million in 2021.

Valley National Bancorp (VLY - Free Report) announced a new share repurchase plan. The company’s board of directors approved a stock repurchase program for up to 25 million shares of VLY. The authorization to repurchase will expire on Apr 25, 2024.

Valley National terminated its 2007 stock repurchase program.

Published in