Los Angeles based American Business Bank (OTCQX: AMBZ) is launching its second stock repurchase program after successfully completing the initial one. The bank’s board approved this new plan ahead of receiving regulatory approval, allowing a buyback of up to $11.25 million worth of its shares. This represents about 2.3% of the bank’s outstanding common stock, or precisely 205,453 shares.
Leon Blankstein, the bank’s CEO and Director, commented on the latest buyback program’s approval, expressing satisfaction with the strong investor response to the first round of stock repurchases. He emphasized that the program continues to serve as a valuable strategy to manage capital more effectively, enhance returns for shareholders, and improve liquidity for those looking to sell shares.
The newly authorized repurchase program officially takes effect on September 3, 2025, and will remain active until August 27, 2026, unless the bank decides to terminate it earlier. The repurchased shares can be acquired through various methods at management’s discretion, including open market purchases, block trades, or private negotiations. Decisions about when and at what prices to buy back shares will depend on factors such as market conditions, the availability of shares, the bank’s financial performance, and alternative ways the capital might be used. Any open market transactions will comply with Securities and Exchange Commission rules and other relevant legal requirements. The bank also reserves the right to alter or end the program at any time before its scheduled expiration.
The first stock buyback program concluded recently, with the bank acquiring 227,541 shares, which amounted to approximately 2.5% of its total common stock. During this initial program, the average price paid per share was $44.03. The positive outcome from this activity likely bolstered confidence in repeating the strategy.
American Business Bank caters primarily to the business sector, providing a comprehensive range of financial services to wholesalers, manufacturers, service-based companies, professionals, and nonprofit organizations. The bank operates nine Loan Production Offices strategically located across Southern California, including areas like Anaheim, Irvine, Torrance, Woodland Hills, Corona, Ontario, Downtown Riverside, Long Beach, and San Diego. These locations support the bank’s focus on serving closely held middle-market businesses with specialized financial solutions tailored to diverse business needs.
This new stock repurchase announcement comes at a time when many banks are actively managing capital and shareholder returns through dividends and buybacks, following regulatory approvals and stress tests that confirm their financial resilience. For American Business Bank, the continuation of such programs reflects confidence in its current financial health and a commitment to delivering value to its investors.
While many banks use stock buybacks to enhance shareholder value, the bank’s approach underlines the importance of balancing liquidity, market conditions, and ongoing business growth opportunities. This strategy allows shareholders greater flexibility should they choose to sell their shares, while also signaling the bank’s stewardship of capital resources.
With the program running for nearly a full year, careful management will be key to maximizing benefits without compromising the bank’s operational strength or strategic goals.
