CF Bankshares (CFBK) Rises 3.3% on New Share Buyback Program
CF Bankshares, Inc. CFBK shares have gained 3.3%, following the announcement of the new share repurchase program. Under the plan, the board of directors of this Columbus, OH-based bank has authorized the repurchase of up to an aggregate of 250,000 shares on or before Jun 30, 2024.
At the time of the repurchase announcement, Timothy T. O'Dell, president and CEO, stated, "We believe our stock is a good value, and the board's approval of this stock repurchase program reflects confidence in our company's intrinsic value. Repurchasing stock underscores our commitment to enhancing shareholder value and demonstrates confidence in our business model."
CFBK announced its previous stock repurchase program on Jan 28, 2021, that authorized the buyback of up to an aggregate of 250,000 of the company’s common stock. On Oct 5, 2021, under the same program, its board of directors approved to increase the buyback to 350,000 and further extended the stock repurchase program through Jun 30, 2022.
In addition to the share repurchase program, CF Bankshares also has a history of paying quarterly dividends. This April, CFBK announced a quarterly dividend of 6 cents per share, marking a 20% hike from the previous payout. The dividend was paid out on Apr 28, to shareholders of record as of Apr 17.
Prior to this, the company hiked its dividend in July 2022 by 25% to 5 cents per share. It increased its dividend four times in the last five years. Based on the current payout rate, the annual dividend comes to 24 cents per share. This results in an annualized dividend yield of 1.55%, considering the last day’s closing price of $15.50 per share.
As of Mar 31, 2023, CF Bankshares had total cash and cash equivalents of $214 million, higher than Federal Home Loan Bank advances and other debt of $137 million. Thus, given the strong liquidity position, the company will be able to continue its capital deployment activities and keep enhancing shareholder value.
Shares of CF Bankshares have lost 20.5% over the past three months compared with the industry’s decline of 3.8%.
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Currently, the company carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Share Buyback Plans of Other Banks
Preferred Bank PFBC announced that the company’s board of directors approved the first leg of its $150 million share repurchase plan. After receiving the required approvals to begin share buybacks, PFBC can repurchase up to $50 million of common stock.
On May 16, 2023, the plan was approved by the shareholders of the company, authorizing the repurchase of up to a total of $150 million of shares.
Northeast Community Bancorp's NECB board of directors has authorized the repurchase of up to an aggregate of 1.5 million shares, or 10% of the company’s currently issued and outstanding common stock.
NECB announced its first stock repurchase program on Jul 27, 2022, and authorized the buyback of up to an aggregate of 1.6 million shares of the company’s common stock. It completed this program at a cost of $22.8 million or $13.93 per share.
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