LUBBOCK, Texas - South Plains Financial, Inc. (NASDAQ:SPFI), a Texas-based bank holding company, has announced the launch of a stock repurchase program with the intention of buying back up to $10 million of its outstanding common stock. The program is set to continue until February 21, 2025, or until the allocated funds are fully used, whichever occurs first.
The decision for the repurchase program follows what the company's Chairman and CEO, Curtis Griffith, described as a strong financial performance in the full year 2023, coupled with significant growth opportunities ahead for the bank. Despite these positives, Griffith believes that the company's stock is trading below its intrinsic value, prompting the board to authorize the buyback as a strategic investment.
According to the company's statement, repurchases may be made on the open market or through privately negotiated transactions, adhering to the limitations of Rule 10b-18 under the Securities Exchange Act of 1934, along with other legal requirements.
Moreover, the company may execute repurchases under a Rule 10b5-1 trading plan, which allows stock buybacks even during periods when insiders are typically not allowed to trade their own company's stock due to regulatory restrictions or self-imposed blackout periods.
The timing and amount of the repurchases will depend on various factors, including stock performance, market conditions, regulatory requirements, and availability of funds. South Plains has emphasized that the program does not obligate it to acquire any specific number of shares.
South Plains Financial, Inc. operates as the bank holding company for City Bank, which serves small and medium-sized businesses and individual clients with commercial and consumer financial services. City Bank operates in several Texas markets, including West Texas, Dallas, El Paso, Greater Houston, the Permian Basin, College Station, and also in Ruidoso, New Mexico.
The company has made this information available based on a press release statement, and it is important to note that forward-looking statements included in the release are subject to various risks and uncertainties.
These include, but are not limited to, general economic conditions, regulatory changes, market interest rates, and other factors that could influence the company's financial performance and the execution of the stock repurchase program.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.