Waterstone Financial (WSBF) Rolls Out 2M Share Buyback Plan
Waterstone Financial Inc. WSBF announced that its board of directors has approved a share repurchase plan. Under this, the company has been authorized to repurchase up to 2 million shares, representing approximately 9.3% of its outstanding shares. The said plan is authorized to commence on or about May 26.
This new repurchase plan was authorized subsequent to the termination of the previous authorization (announced in fourth-quarter 2021). WSBF repurchased a total of 3.5 million shares at an average price of $17.25 per share (including the excise tax) under the previous plan.
Apart from share repurchases, Waterstone Financial pays quarterly dividends on a regular basis and has increased payouts five times in the last five years. Also, on Dec 15, 2021, WSBF announced a special dividend of 50 cents per share along with regular quarterly dividend of 20 cents.
In March 2023, it made the latest dividend announcement of 20 cents which was paid on May 2. This resulted in an annualized dividend yield of 5.8%, considering its last day’s closing price of $13.73 per share. Apart from being attractive to investors, the yield also represented a steady income stream.
We believe such regular disbursements highlight the company’s operational strength and commitment to enhancing shareholders’ wealth. Also, these capital deployment activities will stoke investors’ confidence.
As of Mar 31, Waterstone Financials’ cash and cash equivalent balance of $54.2 million increased sequentially from $46.6 million at the end of 2022.
However, the deteriorating operating backdrop is concerning.
Shares of Waterstone Financial have lost 14.4% over the past three months compared with the industry’s decline of 27.8%.
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Currently, WSBF carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Enhanced Capital Deployment Activities by Other Banks
Bar Harbor Bankshares BHB announced that its board of directors has approved a share repurchase plan. Under this, BHB has been authorized to repurchase up to 756,000 shares, indicating nearly 5% of its shares as of Apr 30. The said plan is authorized to last up to a year.
This new repurchase plan replaced the previous authorization (announced in June 2022) to buy back 751,00 shares. BHB did not repurchase any share under the previous plan.
Civista Bancshares, Inc. CIVB announced a new share repurchase program. Based in Sandusky, OH, the company was authorized to buy back up to an aggregate of $13.5 million of its outstanding shares. The plan will expire on May 2, 2024.
This new repurchase plan of CIVB replaced the previous authorization (announced in August 2022) to buy back $13.5 million shares. It repurchased $7.4 million worth of shares under the plan, which expired on May 9.
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