Hanover Bancorp (HNVR) Announces New Share Repurchase Plan
Hanover Bancorp, Inc. HNVR has come up with a new share repurchase plan. Under the plan, for which it has received the board’s approval, the company is authorized to buy back up to 366,050 shares or nearly 5% of its outstanding shares.
Michael P. Puorro, chairman and CEO of HNVR, stated, “While this repurchase program is a testament to our strong capital base, we will proceed cautiously with regards to capital management to ensure we remain well positioned to take advantage of growth opportunities that may arise.”
In addition to the share repurchase program, the company started paying the regular quarterly dividends of 10 cents per share since last year.
Based on the last day’s closing price of $17.98, HNVR’s dividend yield is currently pegged at 2.22% and its payout ratio is 17% of earnings.
As of Jun 30, 2023, Hanover Bancorp had total cash and cash equivalents of $211 million, lower than the borrowings of $293 million. As of Jun 30, 2023, the company’s Tier 1 leverage ratio and Total risk-based capital ratio were 9.16% and 14.24%, respectively. Both these ratios were well above the regulatory requirement.
HNVR maintains a strong liquidity position and a robust capital position, reflecting its efficiency to sustain such capital distribution activities. Through these, the company will keep enhancing the shareholder value.
Shares of HNVR have lost 1.5% over the past six months compared with the industry’s decline of 4.2%.
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Currently, the company carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Share Buyback Plans of Other Banks
Pathward Financial, Inc. CASH has announced a share buyback program, through which, it can buy back up to 7 million shares of its outstanding common stock on or before Sep 30, 2028.
CASH already has an existing share repurchase program in place. In Sep 2021, the board of directors authorized the repurchase of 6 million shares of its outstanding common stock through Sep 30, 2024. The company repurchased around 4.3 million shares from the beginning of fiscal 2023 through Aug 24, 2023. CASH had almost 1.7 million shares remaining under the program as of Aug 24, 2023.
Princeton Bancorp, Inc. BPRN has announced a share repurchase program. Under the plan, the company is authorized to buy back up to 314,000 shares, which is nearly 5% of its outstanding shares of common stock as of Aug 10, 2023.
The program does not allow BPRN to buy any shares unless the purchase price of each share is lower than the tangible book value per share.
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