First Hawaiian Inc.’s board of directors has approved a stock repurchase program of up to $100 million for this year.

The holding company for the state’s largest bank said today that the buyback of common shares may be conducted through open market purchases or through privately negotiated transactions. First Hawaiian said the timing and exact amount of share repurchases will be determined by various factors, including the company’s capital position and financial performance, as well as market conditions.

A stock buyback is beneficial for shareholders because it gives them a higher percent ownership of the company’s shares and a higher price per share.

First Hawaiian Bank, which went public in August 2016, previously conducted two other stock repurchases that were in conjunction with secondary stock offerings conducted by BNP Paribas, its one-time 100 percent owner. First Hawaiian last repurchased 1.8 million shares from BNP at $27.90 a share on July 30, 2018, and 3 million shares from BNP at $27.75 a share on May 9, 2018.

The Paris-based bank has been gradually divesting its shares of First Hawaiian and exited the remainder of its stake last month. The May 9, 2018, share repurchase was the first for First Hawaiian since its initial public offering.

First Hawaiian’s current buyback plan represents 2.8 percent of the company’s current market value, according to data compiled by Bloomberg News.

First Hawaiian’s stock, which is up 19.3 percent this year, dipped 10 cents to $26.86 on Friday. The repurchase announcement was made after the stock market closed.