Silver State Bancorp to buy back stock
Silver State Bancorp, which has watched its shares fall 21.3 percent since it July initial public offering, said Thursday that it intends to repurchase up to 5 percent of the outstanding shares.
The Henderson-based bank holding company plans to buy as many as 764,000 shares, which would cost $1.2 million based on the Thursday closing price of $15.74 on the Nasdaq National Market.
Silver State said it believes the share buyback is in shareholders’ best interests “in light of the current price of the common stock and the general market and economic conditions.”
“We believe the stock is undervalued and unfortunately being lumped with the general banking industry which is under severe pressure stemming from the subprime issue, which we clearly are not,” a Silver State spokesman said.
Separately, the company said it plans to merge Choice Bank of Scottsdale with the Nevada bank. The two banks will operate under the Silver State Bank name.
The bank holding company acquired Choice in September 2006. The holding company has $1.6 billion in assets.