Simmons First National Corp. has completed its current stock repurchase program and a new program has been approved by the board of directors, according to J. Thomas May, chairman and chief executive officer of Simmons First.
Monday afternoon May announced the completion of one program and that the board had adopted the new stock repurchase program.
“The new program authorizes the repurchase of up to 850,000 shares of Class A common stock or approximately 5 percent of the shares outstanding. The shares are to be purchased from time to time at prevailing market prices, through open market or unsolicited negotiated transactions, depending upon market conditions,” the announcement said.
There is no time limit for the stock repurchases nor a minimum number of shares the company intends to repurchase. The repurchased shares are expected to be used to satisfy stock option exercises, payment of future stock dividends and general corporate purposes, the announcement said.
“We believe our stock, at its current price, continues to be an excellent investment,” May said. “The repurchase program will allow us to acquire shares needed for corporate purposes as well as make an investment in our organization which demonstrates our commitment and confidence in our future. We expect to reinvest a portion of our annual earnings, as needed, to fund the repurchase program and do not intend to utilize any of the equity we raised from the capital markets in 2009 for this purpose.”