Enfield lender New England Bancshares Inc. hopes to reward shareholders by buying back $2.9 million of its common stock.
The parent of New England Bank said its board of directors has approved the repurchase of up to 307,833 shares, or approximately 5 percent of its outstanding common stock.
Based on the company’s Monday closing stock price of $9.42, the shares have a value of about $2.9 million.
The repurchases will be conducted through open market purchases or privately negotiated transactions, and will depend on market conditions, the bank said.
Reducing the numbers of shares circulating on the open market, in theory, should boost the value of remaining shares outstanding.
