First Bancorp (NASDAQ:FBNC), a North Carolina-based commercial bank, has announced the implementation of a stock repurchase program, authorizing the buyback of up to $40 million of its outstanding common stock. The program, which was initially authorized by the company's Board of Directors on January 30, 2024, commenced on Thursday.
Under the terms of the repurchase program, the company may purchase shares on the open market, through privately negotiated transactions, or by other means in accordance with the program's guidelines and market conditions. These transactions are subject to the pricing, volume, and other requirements of Rule 10b-18 under the Securities Exchange Act of 1934.
The repurchase program does not require First Bancorp to acquire a specific number of shares and can be altered, paused, or terminated at any time. The initiation of this program follows the company's strategic efforts to manage its capital effectively.
First Bancorp has not disclosed the exact timing of the repurchases, which will depend on various factors including market conditions. The company's management has the flexibility to act opportunistically to repurchase shares when it believes it is in the best interest of the shareholders.
This move reflects First Bancorp's confidence in its financial stability and commitment to delivering value to its shareholders. The repurchase program may also have the effect of increasing the company's earnings per share by reducing the number of shares outstanding.
The information regarding First Bancorp's stock repurchase program is based on the company's latest 8-K filing with the Securities and Exchange Commission.
In other recent news, First Bancorp announced a series of significant developments. The company declared a cash dividend of $0.22 per share, scheduled for payment to shareholders on record. CEO Richard Moore noted the bank's strong credit quality and increased liquidity and capital, enabling the maintenance of its dividend payout.
The North Carolina-based bank also announced the retirement of Mason Y. Garrett from its Board of Directors. Garrett, a banking veteran with over 50 years of experience, had a significant impact on the banking sector, particularly in the Carolinas, and was a key figure at First Bancorp.
In terms of leadership changes, First Bancorp appointed Christian Wilson as the Executive Vice President and Chief Operating Officer of First Bank (NASDAQ:FRBA), Donna Ward as Chief Transformation Officer, and Brent Hicks as Executive Vice President and Chief Accounting Officer. Meanwhile, Blaise Buczkowski transitioned to Executive Vice President of Corporate Finance.
These recent developments indicate a period of strategic adjustment for First Bancorp, with a focus on shareholder value, strong leadership, and organizational change.
InvestingPro Insights
As First Bancorp (NASDAQ:FBNC) embarks on its stock repurchase program, real-time data from InvestingPro provides a deeper look into the company's financial health and market performance. With a market capitalization of $1.61 billion and a P/E ratio of 14.19, the company presents a value proposition for investors considering the current market dynamics. The P/E ratio has remained stable over the last twelve months, reflecting consistent earnings relative to the company's share price.
InvestingPro Tips highlight that First Bancorp has maintained dividend payments for an impressive 38 consecutive years, indicating a strong commitment to returning value to shareholders. Additionally, the company has experienced a strong return over the last three months, with a 23.77% price total return, which may instill confidence in investors about the potential for future growth. For those seeking further insights, there are additional tips available on InvestingPro's platform.
Moreover, the company's commitment to shareholder value is further evidenced by its dividend yield of 2.25%, coupled with a track record of profitability over the last twelve months. As First Bancorp navigates the repurchase initiative, these insights may serve as valuable considerations for investors monitoring the company's strategic financial management.
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