HarborOne Bancorp, Inc. Announces Share Repurchase Program
HarborOne Bancorp announced a share repurchase program approved by its Board of Directors, allowing the company to buy back up to 2,222,568 shares, approximately 5% of its outstanding shares, for a total of up to $20 million.
The repurchases can be made in open market transactions under a trading plan consistent with SEC Rule 10b5-1. The program, ending May 28, 2025, gives flexibility regarding the timing and number of shares repurchased based on price, market conditions, and other corporate priorities. The company is not obligated to purchase a specific number of shares, and the program can be suspended or terminated at any time without prior notice.
- Share repurchase of up to 2,222,568 shares, enhancing shareholder value.
- Total repurchase amount up to $20 million, signaling financial health.
- Repurchases can be made flexibly, depending on market conditions and other corporate priorities.
- Regulatory approval ensures compliance with SEC guidelines.
- Repurchased shares to be held as authorized but unissued, potentially increasing EPS.
- No obligation to repurchase any shares, leading to possible uncertainty among investors.
- Potential for program suspension or termination without notice may affect investor confidence.
- Funds allocated to repurchase may limit resources available for other corporate initiatives.
Insights
The announcement of a share repurchase program by HarborOne Bancorp, Inc. is a significant move in the financial markets. Share repurchase programs often signal to the market that the company believes its stock is undervalued. This can lead to an increase in stock price as demand rises and the number of shares available decreases.
The repurchase of up to 2,222,568 shares, approximately 5% of the company's outstanding shares, at a cost not exceeding
However, investors must also consider the opportunity cost. The
It's essential to monitor how the company executes this plan and its impact on the market. Corporate liquidity and regulatory requirements will play pivotal roles in shaping the outcome.
From a market perspective, share repurchase programs can indicate a company's confidence in its financial health and future prospects. For retail investors, this can be a reassuring sign. By reducing the number of shares, the company's stock can appear more attractive, potentially leading to price appreciation.
However, it's also important to look at the broader market conditions. If the overall market is experiencing volatility or downturns, the intended effects of the buyback might be mitigated. Additionally, the impact on the company's stock price will heavily depend on the execution timing and market conditions during the repurchase period.
Investors should also consider the long-term implications. Over-reliance on share buybacks can sometimes mask underlying financial issues. Thus, while the repurchase program might provide a short-term boost, it's essential to keep an eye on the company's fundamental health.
From a governance perspective, the introduction of a share repurchase program reflects the board's strategy to enhance shareholder value. Such programs are often used to manage the capital structure more efficiently and to return excess capital to shareholders.
However, transparency and communication are key. The company must clearly communicate the rationale behind the buyback and how it aligns with its long-term strategy. It's also important that the board ensures this move doesn't compromise future growth opportunities or financial stability.
The potential for the program to be suspended or terminated without prior notice adds a layer of unpredictability. Investors should be mindful of the board's adherence to corporate governance principles and its commitment to maintaining a balance between enhancing shareholder value and ensuring the company's long-term sustainability.
Repurchases under this program may be made in open market transactions, and pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities and Exchange Commission. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements, market conditions, and other corporate liquidity requirements and priorities. The repurchase program does not obligate the Company to purchase any particular number of shares.
Any repurchased shares will be held by the Company as authorized but unissued shares. The repurchase program may be suspended or terminated at any time without prior notice, and it will expire on May 28, 2025.
Forward Looking Statements
Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We may also make forward-looking statements in other documents we file with the Securities and Exchange Commission (“SEC”), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “project,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, changes in general business and economic conditions (including inflation and concerns about inflation) on a national basis and in the local markets in which the Company operates, including changes that adversely affect borrowers’ ability to service and repay the Company’s loans; changes in interest rates; changes in customer behavior; ongoing turbulence in the capital and debt markets and the impact of such conditions on the Company’s business activities; increases in loan default and charge-off rates; decreases in the value of securities in the Company’s investment portfolio; fluctuations in real estate values; the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions, customer behavior or adverse economic developments; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; competitive pressures from other financial institutions; acquisitions may not produce results at levels or within time frames originally anticipated; cybersecurity incidents, fraud, natural disasters, war, terrorism, civil unrest, and pandemics; changes in regulation; changes in accounting standards and practices; the risk that goodwill and intangibles recorded in the Company’s financial statements will become impaired; demand for loans in the Company’s market area; the Company’s ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that the Company may not be successful in the implementation of its business strategy; changes in assumptions used in making such forward-looking statements and the risk factors described in the Annual Report on Form 10‑K and Quarterly Reports on Form 10‑Q as filed with the SEC, which are available at the SEC’s website, www.sec.gov. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, HarborOne’s actual results could differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as required by law.
About HarborOne Bancorp, Inc.
HarborOne Bancorp, Inc. is the holding company for HarborOne Bank, a
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Stephen W. Finocchio, EVP Chief Financial Officer (508) 895-1180
Source: HarborOne Bancorp, Inc.
FAQ
What is HarborOne Bancorp's share repurchase program?
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