Prosperity Bank’s parent firm Prosperity Bancshares, on Tuesday, said it is organizing a stock buyback program, where the firm will repurchase about 5% which is 4.7 million shares of its outstanding stock over one year, which will expire on January 16, 2025.
The financial service provider said under this program, the repurchase will be made from time to time in open market transactions, and according to any trading plan that may be adopted under rule 10b5-1 of the Securities Exchange Act of 1934.
The firm said buybacks made under this program would be made in transactions outside the safe harbor provided by Rule 10b-18 during a pending merger, acquisition or similar transaction.
Rule 10b5-1 was established by the Securities and Exchange Commission (SEC) in 2000. This allows insiders of public companies to set up a trading plan for selling stocks they own. The price, amount, and sales dates are specified in advance and determined by a formula or metrics, defined Investopedia.
Additionally, the timing and number of shares repurchased will depend on various factors including price, corporate and regulatory requirements, market conditions, and other corporate liquidity requirements and priorities.
Texas-based Prosperity Bancshares operates in 285 full-service banking locations in the United States. The financial institute specializes in financial services, personal banking, online banking, mobile deposit and personal loans and many more.
