GRAND ISLAND, Neb. - Central Plains Bancshares, Inc. (NASDAQ:CPBI), the parent company of Home Federal Bank, has announced the initiation of a stock repurchase program. The program authorizes the repurchase of up to 200,000 shares, which is approximately 5.0% of the company's current outstanding common stock.
The repurchase of shares will commence following the end of the company's regular trading blackout period and will align with its trading policies. The company has the option to buy back shares through various methods, including open market or private transactions, block trades, and potentially under a Rule 10b5-1 trading plan, in compliance with the Securities and Exchange Commission regulations.
Management will conduct repurchases based on its discretion, considering factors such as stock availability, market conditions, the trading price of the stock, alternative capital uses, and the company's financial performance. All open market transactions will adhere to the limitations of Rule 10b-18 of the Securities and Exchange Commission, among other legal requirements.
The repurchase program is not a commitment to buy any specific number of shares and may be adjusted, paused, or terminated at any time due to various factors, including market conditions, the cost of repurchasing shares, availability of alternative investments, liquidity, and other considerations deemed relevant by the company.
Home Federal Bank, operated by Home Federal Savings and Loan Association of Grand Island, was initially chartered in 1935 and is headquartered in Grand Island, Nebraska. The bank serves its customers from its main office, six branch offices, a drive-up facility in Grand Island, and a loan production office in Lincoln, Nebraska.
This announcement includes forward-looking statements, which are subject to risks and uncertainties. Central Plains Bancshares advises readers that a multitude of factors could cause actual results to differ from those projected in any forward-looking statements, and the company does not undertake the obligation to update these statements following the date they were made.
The information provided in this article is based on a press release statement from Central Plains Bancshares, Inc.
InvestingPro Insights
Central Plains Bancshares' recent announcement of a stock repurchase program aligns with several key financial indicators provided by InvestingPro. The company's stock has shown strong performance, with a 19.72% price total return over the last three months and a substantial 34.39% return over the past six months. This positive momentum is further reflected in the stock trading near its 52-week high, at 97.44% of that peak.
InvestingPro data reveals that Central Plains Bancshares has a market capitalization of $56.18 million and a price-to-earnings ratio of 12.78, suggesting a relatively modest valuation compared to its earnings. The company's revenue growth is noteworthy, with a 37.65% increase over the last twelve months, indicating strong business performance that may support the decision to initiate a share buyback program.
Two relevant InvestingPro Tips for investors considering Central Plains Bancshares are:
1. The company has been profitable over the last twelve months, which supports its ability to fund the share repurchase program.
2. Central Plains Bancshares does not pay a dividend to shareholders, making the stock repurchase program a potential alternative method for returning value to investors.
These insights are part of a larger set of tips available on InvestingPro, which offers 6 additional tips for CPBI, providing investors with a more comprehensive analysis of the company's financial health and market position.
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