In a strategic move, Red River Bancshares, Inc. (NASDAQ:RRBI) has agreed to repurchase 200,000 shares of its common stock from two trusts associated with the family of a former director. The transaction, involving the Angela Katherine Simpson Irrevocable Trust and the John Charles Simpson Jr. Irrevocable Trust, is set to close by Friday, with the company paying around $10 million. This purchase reflects a discount to the stock's 60-day volume-weighted average price as of March 5, 2024.
The share buyback from the trusts, which are connected to the children of the late John C. Simpson, a past director of Red River Bancshares, is part of the beneficiaries' efforts to diversify their investment portfolios for estate planning. Before this agreement, the trusts collectively held an 11.8% stake in the company's common stock. Following the completion of the deal, their combined holdings will decrease to 9.2%.
This repurchase is in addition to the company's ongoing $5 million stock buyback program, which remains unaffected by this transaction. As of today, the company has the full $5 million capacity remaining under this program.
The Board of Directors and the Nominating and Corporate Governance Committee have approved the buyback, which falls under customary representations, warranties, covenants, and conditions. The repurchase indicates the company's continued commitment to managing its capital and providing value to its shareholders.
This announcement is based on information from a recent SEC filing.
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