Shares of Plumas Bancorp (NASDAQ:PLBC) rose 3.6% on Monday following the company's announcement of a new $25 million stock repurchase program. The authorisation extends through the fourth quarter of 2026 and gives the company discretion over how it executes repurchases.
The program permits share repurchases through a variety of execution methods - including open-market purchases, privately negotiated transactions and block trades - with the choice of method to be guided by prevailing market conditions and other relevant considerations.
Plumas Bancorp said it intends to fund buybacks with available cash and retained earnings. The company also made clear that the repurchase plan is not irrevocable: the program may be suspended, modified or discontinued at any time at the company’s discretion.
"This repurchase program reflects our strong capital position, commitment to disciplined capital management and our confidence in the long-term outlook for the Company," said Andrew J. Ryback, President and Chief Executive Officer of Plumas Bancorp.
The company did not set a specific target for the number of shares to be repurchased. Instead, Plumas noted that the actual timing, quantity and value of any repurchases will depend on factors such as market conditions and the availability of capital.
Share repurchase programs can have the effect of lowering outstanding share counts, which in turn may increase earnings per share if other variables remain unchanged. Management framed the move as a reflection of confidence in the firm's financial position and future prospects.
Given the flexible terms announced, the final scale and schedule of the buybacks will be determined over time and remain subject to the company’s ongoing capital planning and market developments.