Red River Bancshares, Inc. Announces Private Stock Repurchase and Amendment of Repurchase Program
Red River Bancshares, Inc. (Nasdaq: RRBI) has announced a private stock repurchase agreement and an amendment to its existing repurchase program. The company will repurchase 60,000 shares of its common stock from two shareholders in a privately-negotiated transaction for $3.0 million. This purchase price represents a discount to the 10-, 20-, and 30-day volume weighted average price as of July 31, 2024.
As a result of this transaction, Red River Bancshares has reduced the availability under its previously announced 2024 $5.0 million repurchase program by $3.0 million. Following the closure of this deal, the company will have approximately $1.2 million of remaining capacity under the Repurchase Program.
Red River Bancshares, Inc. (Nasdaq: RRBI) ha annunciato un accordo per il riacquisto di azioni e una modifica al suo programma di riacquisto esistente. L'azienda riacquisterà 60.000 azioni del suo capitale sociale da due azionisti attraverso una transazione negoziata in modo riservato per un totale di 3,0 milioni di dollari. Questo prezzo di acquisto rappresenta uno sconto rispetto al prezzo medio ponderato per volume negli ultimi 10, 20 e 30 giorni al 31 luglio 2024.
Come risultato di questa transazione, Red River Bancshares ha ridotto la disponibilità del suo programma di riacquisto del 2024, precedentemente annunciato, di 3,0 milioni di dollari, portando la capacità rimanente a circa 1,2 milioni di dollari sotto il Programma di Riacquisto.
Red River Bancshares, Inc. (Nasdaq: RRBI) ha anunciado un acuerdo privado de recompra de acciones y una enmienda a su programa de recompra existente. La empresa recomprará 60,000 acciones de sus acciones comunes de dos accionistas en una transacción negociada de forma privada por 3.0 millones de dólares. Este precio de compra representa un descuento sobre el precio promedio ponderado por volumen de 10, 20 y 30 días hasta el 31 de julio de 2024.
Como resultado de esta transacción, Red River Bancshares ha reducido la disponibilidad bajo su programa de recompra de 2024 por 3.0 millones de dólares, dejando una capacidad restante de aproximadamente 1.2 millones de dólares bajo el Programa de Recompra.
레드 리버 뱅크셰어즈, Inc. (Nasdaq: RRBI)가 사적인 주식 재매입 계약과 기존 재매입 프로그램에 대한 수정 사항을 발표했습니다. 이 회사는 60,000주의 보통주를 두 명의 주주로부터 비공식적으로 협상된 거래를 통해 300만 달러에 재매입할 것입니다. 이 구매 가격은 2024년 7월 31일 기준으로 지난 10일, 20일 및 30일 평균 거래량 가중 가격보다 할인된 가격입니다.
이번 거래의 결과로 레드 리버 뱅크셰어즈는 이미 발표한 2024년 500만 달러 재매입 프로그램의 가용성을 300만 달러 줄였습니다. 이 거래가 마무리된 후 회사는 재매입 프로그램 하에 약 120만 달러의 남은 용량을 보유하게 됩니다.
Red River Bancshares, Inc. (Nasdaq: RRBI) a annoncé un accord de rachat d'actions privé et un amendement à son programme de rachat existant. La société va racheter 60 000 actions de ses actions ordinaires auprès de deux actionnaires dans le cadre d'une transaction négociée en privé pour un montant de 3,0 millions de dollars. Ce prix d'achat représente une remise par rapport au prix moyen pondéré par volume sur 10, 20 et 30 jours au 31 juillet 2024.
À la suite de cette transaction, Red River Bancshares a réduit la disponibilité de son programme de rachat de 2024 de 5,0 millions de dollars de 3,0 millions de dollars. Après la clôture de cet accord, la société aura environ 1,2 million de dollars de capacité restante sous le Programme de Rachat.
Red River Bancshares, Inc. (Nasdaq: RRBI) hat eine private Aktienrückkaufvereinbarung und eine Änderung seines bestehenden Rückkaufprogramms angekündigt. Das Unternehmen wird 60.000 Aktien seiner Stammaktien von zwei Aktionären in einer privat verhandelten Transaktion für 3,0 Millionen Dollar zurückkaufen. Dieser Kaufpreis stellt einen Rabatt auf den volumengewichteten Durchschnittspreis der letzten 10, 20 und 30 Tage zum 31. Juli 2024 dar.
Infolge dieser Transaktion hat Red River Bancshares die Verfügbarkeit unter seinem zuvor angekündigten Rückkaufprogramm von 2024 in Höhe von 5,0 Millionen Dollar um 3,0 Millionen Dollar reduziert. Nach Abschluss dieses Deals wird das Unternehmen unter dem Rückkaufprogramm ca. 1,2 Millionen Dollar an verbleibender Kapazität haben.
- Private stock repurchase of 60,000 shares for $3.0 million
- Purchase price reflects a discount to recent volume weighted average prices
- Demonstrates commitment to increasing shareholder value
- $1.2 million remaining capacity in the Repurchase Program
- Reduction in available funds for future stock repurchases under the Repurchase Program
Insights
Red River Bancshares' private stock repurchase of 60,000 shares for
The repurchase can be seen as a positive signal for investors. It indicates management's confidence in the company's intrinsic value and future prospects. By reducing the number of outstanding shares, this action could potentially boost earnings per share and return on equity metrics. However, investors should consider the trade-off between share repurchases and other potential uses of capital, such as investments in growth or dividend payments.
This private stock repurchase by Red River Bancshares is an intriguing development in the context of current market conditions. With many banks facing challenges due to interest rate uncertainties and economic pressures, this move suggests financial stability and a proactive approach to capital management.
The transaction's structure - a privately-negotiated deal at a discount - is particularly noteworthy. It allows the company to repurchase a significant block of shares without impacting the open market price. This approach can be more efficient than open market repurchases, especially for smaller, less liquid stocks. Investors should view this as a positive indicator of management's commitment to shareholder value, while also considering the broader implications for the company's liquidity and growth strategy.
ALEXANDRIA, La., Aug. 08, 2024 (GLOBE NEWSWIRE) -- Red River Bancshares, Inc. (Nasdaq: RRBI) (the “Company”) announced today that, on August 8, 2024, the Company entered into a stock repurchase agreement with two shareholders for the repurchase by the Company of 60,000 shares of its common stock in a privately-negotiated transaction for a purchase price of
About Red River Bancshares, Inc.
The Company is the bank holding company for Red River Bank, a Louisiana state-chartered bank established in 1999 that provides a fully integrated suite of banking products and services tailored to the needs of our commercial and retail customers. Red River Bank operates from a network of 28 banking centers throughout Louisiana and one combined loan and deposit production office in New Orleans, Louisiana. Banking centers are located in the following Louisiana markets: Central, which includes the Alexandria metropolitan statistical area (“MSA”); Northwest, which includes the Shreveport-Bossier City MSA; Capital, which includes the Baton Rouge MSA; Southwest, which includes the Lake Charles MSA; the Northshore, which includes Covington; Acadiana, which includes the Lafayette MSA; and New Orleans.
Forward-Looking Statements
This press release may contain forward-looking statements that are based on various facts and derived using numerous assumptions that are subject to known and unknown risks, uncertainties, and other factors that may cause the Company’s actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Forward-looking statements include information about the expected benefits of the repurchase, information concerning the timing, manner, amount, and overall impact of future purchases under the repurchase program, as well as any other statement other than statements of historical fact. Words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would,” and “outlook,” or the negative version of those words, or such other comparable words or phrases are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements are not historical facts, and are based on current expectations, estimates, and projections about the Company’s industry, management’s beliefs, and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond the Company’s control. Accordingly, you are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, assumptions, and uncertainties that are difficult to predict. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Unless required by law, the Company also disclaims any obligation to update any forward-looking statements. Interested parties should not place undue reliance on any forward-looking statement and should carefully consider the risks and other factors that the Company faces. For a discussion of these risks and other factors, please see the sections titled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and any subsequent quarterly reports on Form 10-Q, and in other documents that we file with the Securities and Exchange Commission from time to time.
Contact:
Julia Callis
Senior Vice President, General Counsel, and Corporate Secretary
318-561-4042
julia.callis@redriverbank.net
FAQ
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