Northfield Bancorp (NFBK) Rewards Investors With Buyback Plan

Northfield Bancorp, Inc. (Staten Island, NY) NFBK recently announced a new share repurchase program. The board of directors has approved the repurchase plan worth $45 million of NFBK’s outstanding stock.

The buyback program, which will begin on Jun 22, has no expiration date.

Prior to the announcement of this new buyback plan, Northfield Bancorp had another repurchase program in place. Under that, the company was authorized to buy back shares worth $54.2 million. This plan was fully utilized and concluded on Mar 31, 2022.

Share buybacks aside, NFBK has been regularly paying a quarterly dividends. The company had last announced a hike of 18.2% in quarterly dividend in April 2021 and since then has been paying out 13 cents per share as a quarterly payout. Based on last day’s closing price of $12, Northfield Bancorp’s dividend yield currently stands at 4.33%, which is impressive compared with the industry’s yield of 2.30%.

Supported by its earnings strength and solid balance sheet, Northfield Bancorp is expected to continue with efficient capital deployment activities. Through this, the company will keep enhancing shareholder value.

So far this year, shares of NFBK have lost 25.7% compared with a 19.3% decline of the industry it belongs to.

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Currently, the company carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Banks That Took Similar Action

Cathay General Bancorp CATY cheered investors by announcing that its board authorized a new buyback of up to $125 million worth of shares of its common stock. The company had 75,150,090 outstanding common shares as of May 26.

The old share repurchase plan announced on Sep 2, 2021, was completed on Feb 18, 2022. Under the program, CATY repurchased 2,858,503 shares at an average price of $43.73.

City Holding Company CHCO cheered investors by announcing that its board has authorized the company to buy back up to 1 million shares or almost 7% of its common stock. The buyback has no expiry date.

Simultaneously, CHCO has canceled the previous share repurchase plan approved on Mar 31, 2021. Under this program, it repurchased 826,330 shares through May 25, 2022.

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