Yahoo Finance Northfield Bancorp (NFBK) Announces New $10M Repurchase Plan
Northfield Bancorp, Inc. NFBK has announced a new share repurchase program. Under the plan, the board of directors authorized the buyback of $10 million worth of shares. The plan is set to begin on Jun 18, 2024, with no set expiration. This plan is in succession to the $5 million repurchase plan approved this April.
Prior to the April share buyback plan, NFBK had announced a share repurchase program in November 2023, authorizing the buyback of up to $7.5 million worth of shares. The company completed this program in March 2024, with the repurchase of 0.3 million shares at an average cost of $12.17 during the quarter.
Apart from the share repurchase program, the company pays out dividends to its shareholders. This April, the company announced a dividend of 13 cents per share which was paid out on May 22, 2024, to shareholders of record as of May 7. NFBK has increased its dividend once in the last five years, in April 2021, and has a payout ratio of 69%.
As of Mar 31, 2024, Northfield’s total deposits were $3.9 billion, accrued expenses and other liabilities were $40.8 million and cash and cash equivalents (primarily consisting of cash and due from banks and interest-bearing deposits in other financial institutions) totaled $238.8 million.
Given its strong balance sheet and liquidity position, Northfield is expected to be able to sustain current capital distributions. This will keep enhancing shareholders’ wealth.
Shares of NFBK have plunged 35.5% over the past six months compared with the industry’s decline of 20.3%.
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Currently, NFBK carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Share Buyback Plans of Other Financial Services Firms
Last month, Cathay General Bancorp. CATY announced a new share repurchase program. Under the plan, the board of directors authorized the buyback of $125 million worth of shares. There is no set expiration for the program.
As of May 28, 2024, CATY had roughly 72.8 million common shares outstanding.
Similarly, Robinhood Markets, Inc. HOOD announced a share buyback plan. The company announced that its board of directors approved a share repurchase program authorizing it to repurchase up to $1 billion of its outstanding common stock.
While the plan does not have an expiration date, HOOD expects to buy back shares over two to three years, starting from third-quarter 2024.
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