One of the reasons I do not usually favor equity buybacks is illustrated in Bottoms post. Bank management have demonstrated notoriously poor judgement timing repurchase programs. They may be good bankers but they are not often sucessful players in the equity market place. Also, often their financial advisors are in a compromising posture by benefiting from the purchase transaction.
The bank has acquired 483,000 shares for about $945,000. Now those shares are worth $470,000, or about 47 percent less than they paid. Imo, the bank could better use the repurchase funds for capital growth, or a special year-end added dividend. This has been repeated time after time, by banks, so why not keep the money in banking where the funds can be used more profitably and provide increased stability to the balance sheet ?