Horizon Bank announced it plans to buy back up to 2.25 million shares of its stock.
The Michigan City-based bank's stock, which is publicly traded on NASDAQ under the symbol HBNC, was traded at $16.38 a share at the start of business Wednesday.
“This stock repurchase program reflects the board’s and management’s commitment to increasing shareholder value,” Horizon Bank CEO Craig Dwight said. “We believe that at current price levels, Horizon’s shares are an attractive investment and our repurchase program reflects our continuing confidence in Horizon’s financial strength. Given our strong balance sheet, we believe we can implement this program and continue to retain sufficient liquidity to execute upon our business strategy and maintain our well-capitalized status.”
Horizon, which is the third-largest bank by market share with 45 branches in Lake, Porter and LaPorte counties, plans to buy back stock from time to time in the open market, including through block trades and privately negotiated transaction. The bank will use cash on hand to buy back shares at the discretion of management.
U.S. corporate stock buybacks exceeded $1 trillion for the first time in 2019. S&P 500 companies bought back $205 billion of their own shares in the first quarter of this year, and S&P Global analyst Howard Silverblatt forecasts that buybacks will shatter previous records this year because "companies still have the money, and institutional investors are still pushing them to buy back their stock.”