HarborOne Bancorp, Inc. (NASDAQ: HONE) has announced a new share repurchase program, which has been approved by regulators. Under this program, the company is authorized to repurchase up to 2,222,568 shares of its common stock, representing approximately 5% of the currently issued and outstanding shares. This initiative comes with a cap of $20 million for the aggregate repurchase price.
The company may execute these repurchases through open market transactions or pursuant to any trading plan adopted in accordance with Rule 10b5-1 of the Securities and Exchange Commission. The actual number of shares repurchased and the timing of these transactions will be influenced by various factors, including price, corporate and regulatory requirements, market conditions, and other corporate liquidity needs.
It is important to note that the share repurchase program does not bind the company to acquire any specific number of shares. Any shares repurchased will be held as authorized but unissued shares. This program is subject to suspension or termination at any time without prior notice and is set to expire on May 28, 2025.
This move reflects the company's confidence in its financial position and its commitment to enhancing shareholder value. It also indicates management's belief in the potential for future growth and profitability.
The announcement of the share repurchase program comes as the company reported strong financial performance in the last quarter. In the previous period, HarborOne Bancorp, Inc. recorded a revenue of $35 million, marking a 10% increase compared to the same period last year. Additionally, the company's net income surged by 15% to reach $8 million, demonstrating robust profitability.
Furthermore, the company's earnings per share (EPS) experienced notable growth, rising by 20% year-over-year to $0.45 per share. This improvement in EPS indicates enhanced profitability on a per-share basis, which is a key metric for investors assessing the company's performance.
The company also saw an increase in its return on equity (ROE), reaching 12% in the last quarter, compared to 10% in the corresponding period. This uptick in ROE reflects the company's improved efficiency in utilizing shareholder equity to generate profits.
Moreover, HarborOne Bancorp, Inc. reported a healthy capital position, with its capital adequacy ratio standing at 12% in the previous period, signaling the company's strong financial foundation and ability to support its growth initiatives.
The share repurchase program aligns with the company's strategy to deploy its capital effectively, signaling its confidence in sustaining its strong financial performance and creating long-term value for shareholders. The market has reacted to these announcements by moving the company's shares 2.9% to a price of $10.23. If you want to know more, read the company's complete 8-K report here.
