Provident Financial (PROV) Announces Share Buyback Plan
Provident Financial Holdings, Inc. PROV has announced a share repurchase plan. Under the plan, the company’s board of directors authorized to buy back up to 350,353 shares or nearly 5% of its outstanding shares.
This new repurchase plan replaced the previous program, which was announced in April 2022, where the company was set to buy back approximately 364,259 shares. In April 2023, the company announced an extension of the program for a year or until completed, whichever is earlier.
Additionally, the company has been paying regular quarterly cash dividends from September 2002. Further, it has been increasing its dividends. The last dividend hike was announced in January 2017. PROV has been paying a steady dividend of 14 cents per share since then.
Based on the last day’s closing price of $12.80, the company’s dividend yield is currently pegged at 4.38% and its payout ratio is 46% of earnings.
As of Jun 30, 2023, Provident Financial had total cash and cash equivalents and investment securities of $222 million and the borrowings of $235 million. As of Jun 30, 2023, the company’s Tier 1 leverage ratio and Total risk-based capital ratio were 9.6% and 19.4%, respectively. Both these ratios were well above the regulatory requirement.
Given its robust capital levels and the decent liquidity position, PROV will be able to sustain such capital distribution activities. Through these, the company will keep enhancing shareholder value.
Shares of Provident Financial have lost 5.2% over the past six months compared with the industry’s decline of 5.6%.
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Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Share Buyback Plans of Other Banks
Hanover Bancorp, Inc. HNVR announced a share buyback program. Under the plan, for which it has received the board’s approval, the company is set to buy back approximately 366,050 or nearly 5% of its outstanding shares.
HNVR maintains a strong liquidity and robust capital position, indicating that it will be able to sustain such capital distribution activities, thereby enhancing shareholder value.
Pathward Financial, Inc. CASH also come up with a share repurchase 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 September 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.
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