Bank approves $20M share buyback
A bank is planning to buy back up to $20 million of its shares in a move to “enhance shareholder value.”
Mercantile Bank Corporation in Grand Rapids (Nasdaq: MBWM), the holding company for Mercantile Bank of Michigan, said last Friday that its board of directors has approved a stock repurchase program of the company’s outstanding common stock.
The shares may be repurchased once in a while in open market transactions at prevailing market prices. The shares may also be repurchased by other means in compliance with federal securities laws.
The program may be discontinued at any time.
Mercantile’s management team will determine the timing, number and values of shares repurchased under the program based on a number of factors: leadership discretion, market price of Mercantile’s stock, general market and economic conditions, financial performance, capital position and applicable legal requirements.
Michael Price, president and CEO at Mercantile Bank Corporation, said the company believes the adoption of the stock repurchase program provides Mercantile with “an additional tool to enhance shareholder value.”
“With the successful integration of the Mercantile-Firstbank merger behind us, we continue to execute our growth strategy, both organically and possibly through strategic acquisitions,” Price said. “We plan to implement the program at such time and price as repurchases are considered beneficial to the company and our shareholders.”
Shares of Mercantile closed at $19 on Friday and were down .08 percent to $18.92 this morning. The stock’s 52-week high is $24.34.
In its earning report last month, Mercantile reported net income of $6.3 million, or $0.37 per diluted share, for the fourth quarter of 2014, which grew from $5.2 million, or $0.59 per diluted share, during the same period in 2013.
The company reported net income of $17.3 million, or $1.28 per diluted share, for the full year of 2014, compared with net income of $17 million, or $1.95 per diluted share for 2013.
Mercantile operates 53 branches in central and western Michigan and has assets of approximately $2.9 billion.