Big Bounce for SBNY

Shares of Signature Bank (SBNY) are getting a nice bounce today. I see that SBNY is currently up 5%.

The bank just announced a share buyback program:

Signature Bank (SBNY), a New York-based full-service commercial bank, announced today that its Board of Directors has approved the repurchase from time to time in open market transactions of up to $500 million of common stock (the “Stock Repurchase Program”) and that the Bank will seek stockholder approval of the Stock Repurchase Program at a special meeting of stockholders. Under applicable New York law, the Stock Repurchase Program must be approved by holders of at least two-thirds of the outstanding common stock.

The record date for determination of shareholders entitled to vote at the special meeting is September 4, 2018. The special meeting will be held on or about October 17, 2018 in New York City. A proxy statement with more information about the special meeting will be sent to shareholders of record following the record date.

The Stock Repurchase Program is also subject to approval by the Federal Deposit Insurance Corporation and the Department of Financial Services of the State of New York. The Bank expects to file applications seeking such approval prior to the special meeting. Implementation of the Stock Repurchase Program is subject to any limitations imposed in connection with obtaining the regulatory approvals described above and to market conditions. Once commenced, the Bank may terminate the Stock Repurchase Program at any time.

The figure of $500 million works out to $9.33 per share. (Yes, it says “up to $500 million.”)

Posted by on August 16th, 2018 at 11:49 am


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