Columbia Financial, Inc. CLBK announced its sixth stock repurchase program. Under the program, the board of directors of this Delaware incorporated company authorized it to repurchase up to 2,000,000 shares, or roughly 1.9% of CLBK’s currently issued and outstanding common stock.
Excluding shares held by Columbia Bank MHC, the authorization indicates 6.8% of the company’s currently issued and outstanding common stock.
On Dec 14, 2022, the company unveiled its fifth buyback program, which authorized the repurchase of up to 3,000,000 shares. It successfully concluded the repurchase of 3,000,000 shares for $57.7 million.
According to Thomas J. Kemly, president and chief executive officer of the company, “I am happy to announce a new stock repurchase program. Our continuation of our share repurchase program underscores our continued commitment to financial discipline and enhancing shareholder value.”
As of Mar 31, 2023, Columbia Financial had a total leverage of $1.70 billion, significantly higher than the cash and cash equivalents balance of $319.4 million. Also, its total debt to total capital of 62.20% at the end of the first quarter increased sequentially. The company’s times interest earned ratio of 5 decreased sequentially. Nonetheless, given the earnings strength and no dividend payments, it will likely be able to sustain the current level of capital-deployment activities.
Over the past six months, shares of CLBK have lost 25% compared with the industry’s decline of 7.9%. CLBK currently carries a Zacks Rank #4 (Sell).
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Enhanced Capital Deployment Activities by Other Banks
Stock Yards Bancorp, Inc. SYBT announced the extension of its stock-repurchase plan. The board of directors has approved the extension by around two years to May 22, 2025. The plan was previously extended in May 2021.
Implemented on May 22, 2019, the plan was authorized to repurchase one million shares. To date, SYBT has repurchased around 259,000 shares at an average cost of $35.41 per share. It has approximately 741,000 shares remaining under the authorized share-repurchase plan.
Civista Bancshares, Inc. CIVB announced a new share repurchase program. Based in Sandusky, OH, CIVB was authorized to buy back up to an aggregate of $13.5 million of its outstanding shares. The plan will expire on May 2, 2024.
This new repurchase plan of CIVB replaced the previous authorization (announced in August 2022) to buy back $13.5 million shares. CIVB repurchased $7.4 million worth of shares under that plan, which expired on May 9.
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