Absecon Bancorp Announces Share Repurchase Plan

Rhea-AI Summary

Absecon Bancorp (ASCN) announced a new share repurchase plan, allowing the buyback of up to 10,000 shares, approximately 8.9% of its outstanding shares. The purchases will be conducted via open market or private transactions, depending on market conditions and the company's performance. The company reported a net income of $210,000 and total assets of $173.8 million as of June 30, 2021. The repurchased shares may be retired or used for corporate purposes, with Keefe, Bruyette & Woods appointed as the independent purchasing agent.

Positive

• Authorization to repurchase 10,000 shares may enhance shareholder value.
• Repurchase plan represents approximately 8.9% of outstanding shares, potentially increasing EPS.
• Company has reported a net income of $210,000, indicating profitability.

Negative

• Limited buyback amount may not significantly impact stock liquidity.
• Company's reliance on market conditions for repurchases introduces uncertainty.

ABSECON, N.J., Aug. 31, 2021 (GLOBE NEWSWIRE) -- Absecon Bancorp (the “Company”) (OTC, trading as ASCN), the bank holding company of First National Bank of Absecon, an Atlantic County New Jersey based community bank, announced today that its Board of Directors authorized a 2021 share repurchase plan. Under the terms of the 2021 share repurchase plan, the Company is authorized to buy back up to 10,000 shares, representing approximately 8.9% of its 112,281 issued and outstanding shares of common stock.

The Company intends to accomplish the share repurchases through open market transactions or in privately negotiated transactions, subject to the availability of the shares, market conditions, the trading price of the shares and the Company's financial performance. The repurchased shares will be utilized for general corporate purposes or retired. The 2021 share repurchase plan does not obligate the Company to acquire any particular number of shares of common stock, and it may be modified or suspended at any time at the Company's discretion. The Company expects to appoint Keefe, Bruyette & Woods, Inc. as its independent repurchasing agent to repurchase shares of its common stock on its behalf.

As reported in the June 30, 2021 FR Y-9SP (unaudited), the Company had consolidated net income of $210,000 and total consolidated assets of $173.8 million. The net income consisted of undistributed bank income of $210,000, which was derived from its wholly owned bank subsidiary, First National Bank of Absecon. More detailed information on the June 30, 2021 financial statements of First National Bank of Absecon can be found in its June 30, 2021 Call Report available at www.fdic.gov.

Contact: Eric Gaupp, President and Chief Executive Officer

106 New Jersey Avenue
PO Box 324
Absecon, NJ 08201
Office: 609-641-6300

email: egaupp@FNBAbsecon.com

This release may contain forward-looking statements. We caution that such statements may be subject to a number of uncertainties and actual results could differ materially and, therefore, readers should not place undue reliance on any forward-looking statements. Absecon Bancorp does not undertake, and specifically disclaims, any obligation to publicly release the results of any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. 

FAQ

What is the purpose of Absecon Bancorp's 2021 share repurchase plan?

The purpose is to buy back up to 10,000 shares for general corporate purposes or to retire them, which may enhance shareholder value.

When was the share repurchase plan authorized?

The share repurchase plan was authorized on August 31, 2021.

How does the share repurchase plan affect ASCN's stock price?

By reducing the number of outstanding shares, the repurchase plan may increase earnings per share (EPS), potentially leading to a higher stock price.

How much net income did Absecon Bancorp report?

As of June 30, 2021, Absecon Bancorp reported a net income of $210,000.