SANDUSKY, Ohio - Civista Bancshares, Inc. (NASDAQ:CIVB), the parent company of Civista Bank, announced on Thursday the launch of a new stock repurchase program. The program authorizes the repurchase of up to $13.5 million of its outstanding common shares, effectively replacing the previous program set to expire on the same day.
Dennis G. Shaffer, President and CEO of Civista, stated that the repurchase plan underscores the bank's commitment to growth and its intention to "be opportunistic and further deliver value to our shareholders."
The repurchase of shares is a common way for companies to return capital to shareholders and can potentially improve earnings per share by reducing the number of shares outstanding.
The repurchase program permits Civista to buy back shares from the open market or through negotiated transactions, subject to market conditions and other factors, including stock price performance and legal requirements.
The company has not committed to a specific number of shares to be repurchased and may halt the program at any time based on management's discretion. The program is slated to continue until April 15, 2025.
Civista Bancshares, with a financial holding of $3.9 billion, operates through its subsidiary Civista Bank, which was established in 1884. Civista Bank offers a range of banking services, including commercial lending, mortgage, and wealth management, and operates 43 locations across Ohio, Southeastern Indiana, and Northern Kentucky. Civista Leasing & Finance, a division of Civista Bank, provides commercial equipment leasing services nationwide.
The press release also contained forward-looking statements relating to Civista's anticipated financial performance and growth strategies. These statements are subject to various risks and uncertainties that could cause actual results to differ materially from those projected.
This news article is based on a press release statement from Civista Bancshares, Inc. Investors are advised to consider the company's filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the fiscal year ended December 31, 2023, for a more comprehensive understanding of the risks involved.
InvestingPro Insights
Civista Bancshares, Inc. (NASDAQ:CIVB) has recently announced a strategic move with its new stock repurchase program aimed at enhancing shareholder value. To provide investors with a deeper understanding of the company's financial health and market position, here are some key metrics and insights from InvestingPro:
InvestingPro Data:
- The company has a market capitalization of $224.48 million USD, reflecting its size and significance in the market.
- Civista is trading at an attractive price with a P/E Ratio (Adjusted) of 5.43 for the last twelve months as of Q4 2023, indicating that the stock could be undervalued relative to its earnings.
- The bank's dividend yield as of the latest data stands at 4.48%, showcasing its commitment to returning value to shareholders.
InvestingPro Tips:
- Civista has a notable track record of raising its dividend for 14 consecutive years, which may appeal to income-focused investors.
- Despite some analysts revising their earnings estimates downwards for the upcoming period, the company is still expected to be profitable this year, according to other analysts' predictions.
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