In an effort to reward shareholders with enhanced capital deployment activities, Amerant Bancorp Inc. AMTB recently announced a new share repurchase program authorizing $40 million worth of its Class B common stock.
Since this announcement last week, shares of Amerant Bancorp have lost1.1%.
Amerant Bancorp’s repurchase is in compliance with Rule 10b-18 under the Securities Exchange Act of 1934 or under Repurchase Program, which may be made in the open market, by block purchase, in privately negotiated transactions.
Gerald P. Plush, executive vice chairman and incoming CEO of Amerant Bancorp, said, “The Board’s stock repurchase authorization of our Class B Stock underscores the confidence we have in our future performance, and having the Repurchase Program in place will enhance our ability to efficiently manage capital while increasing total return to shareholders.”
Earlier, in December 2020, the company announced the success of modified “Dutch auction” tender offer to repurchase up to $50.0 million worth of its Class B common stock at a price neither greater than $12.55 nor less than $11.05 per share.
Over the past six months, shares of Amerant Bancorp have gained 63.5%, compared with the industry’s rally of 92.3%.
Amerant Bancorp currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Banks That Took Similar Action
Several banks have announced new share repurchase program in the recent months, which include The Bank of Princeton BPRN, TriCo Bancshares TCBK and FB Financial Corporation FBK.
The Bank of Princeton’s board of directors authorized repurchase of 339,788 shares worth up to $10.4 million this year. TriCo Bancshares’ board of directors has authorized the repurchase of 2 million shares.
Further, FB Financial has announced a new share-repurchase plan, under which its board of directors has authorized a buyback of up to $100 million of the outstanding common stock.
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