In a recent filing with the Securities and Exchange Commission, Colony Bankcorp Inc. (NYSE:CBAN) announced the extension of its stock repurchase program.
The Fitzgerald, Georgia-based state commercial bank, currently valued at $280.78 million, has seen its stock surge over 41% in the past six months despite a recent 7.7% weekly decline. The Board of Directors authorized the continuation of the program, which allows for the buyback of up to $12 million of its outstanding common stock.
The program, initially approved in October 2022, was previously extended in March 2024 and is now set to run through the end of 2025. However, the company noted that the program could be suspended, modified, or terminated at any time for any reason without prior notice. According to InvestingPro analysis, Colony Bankcorp maintains a GOOD overall financial health score, suggesting solid fundamentals supporting this strategic move.
Since the start of the buyback initiative, Colony Bankcorp has repurchased a total of 171,481 shares, amounting to approximately $2.25 million. As of the date of the filing, there remains $9.75 million available for further repurchases.
The repurchase of shares will be conducted through open market purchases, privately negotiated transactions, or other methods in compliance with applicable laws and regulations. The exact number of shares to be repurchased and the timing of these repurchases will depend on various factors, including market conditions, stock price, and corporate requirements.
This move reflects a common strategy among corporations to return value to shareholders and potentially bolster the stock price by reducing the number of shares outstanding. Trading at a P/E ratio of 12.78 and offering a 2.81% dividend yield, the company has maintained a consistent shareholder-friendly approach, having raised its dividend for eight consecutive years.
For deeper insights into Colony Bankcorp’s valuation and growth prospects, investors can access comprehensive analysis through InvestingPro, which offers additional exclusive tips and detailed financial metrics.
The information presented in this article is based on the statements made in the press release by Colony Bankcorp Inc. and reflects the company’s current plans regarding its stock repurchase program.
In other recent news, Colony Bank reported a resilient performance in its third quarter of 2024, following Hurricane Helene. The bank’s operating net income saw an increase of $238,000, and gains were recorded in both net interest income and non-interest income.
Net interest income rose by $132,000, marking a significant first increase in a year. Total (EPA:TTEF) deposits also witnessed a growth of $64.7 million. Despite a shift in deposit mix impacting margins, loan growth remained steady at 4%.
Colony Bank also launched a new digital banking platform aimed at enhancing customer experience. A quarterly cash dividend of $0.1125 per share was declared, reinforcing the bank’s commitment to shareholder returns. The bank’s future plans include maintaining efficiency as margins begin to expand and managing deposit costs with expectations to reduce rates on maturing retail CDs.
Recent developments also indicate a slight increase in non-performing loans and a loss of $454,000 from the sale of $7.6 million in securities. However, the bank remains optimistic about maintaining profitability and growth, targeting a return to historical growth rates of 8%-12%.
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