1st Colonial Bancorp, Inc. Announces Stock Repurchase Program

Rhea-AI Summary

1st Colonial Bancorp, Inc. (FCOB) announced a stock repurchase program effective November 22, 2021, allowing the company to buy back up to 4% of its outstanding shares, totaling a maximum of $2.0 million. With 4,834,532 shares currently outstanding, the buyback reflects management's confidence in the company's prospects, as the stock trades below its tangible book value per share. The program is discretionary, with the Board able to modify or terminate it at any time. Repurchases may be made in open market or private transactions, adhering to relevant regulations.

Positive

• Stock repurchase program approved for up to $2.0 million, enhancing shareholder value.
• Management expresses confidence in company’s future due to stock trading below tangible book value.

Negative

• No assurance of a specific amount of common stock being repurchased.
• Potential market conditions may limit effectiveness of the buyback program.

CHERRY HILL, N.J.--(BUSINESS WIRE)-- 1st Colonial Bancorp, Inc. (FCOB), holding company of 1st Colonial Community Bank, today announced that its board of directors has approved a stock repurchase program, effective November 22, 2021. Under the stock repurchase program, management is authorized to repurchase up to 4% of the Company’s outstanding shares of common stock, with a total cost not to exceed $2.0 million. As of today, the Company had 4,834,532 shares of common stock outstanding. The stock repurchase program does not obligate the Company to acquire any particular amount of common stock, and it may be limited, suspended or terminated at any time without prior notice.

Robert White, President and Chief Executive Officer noted, “The announcement of our stock buyback plan reflects our confidence in our future. As with many other financial institutions, our common stock is currently trading at a price that is below our tangible book value per share, and our intent is to maximize shareholder value as we continue to focus on profitable growth of the company.”

Under the stock repurchase program, the Company may repurchase shares of common stock from time to time in open market transactions or in privately negotiated transactions as permitted under applicable rules and regulations. Open market repurchases will be conducted in accordance with the limitations set forth in Rule 10b-18 under the Securities Exchange Act of 1934 (the “Exchange Act”), and applicable legal requirements. The timing, volume and nature of such purchases will be determined at the sole discretion of the Company’s management at prices the Company considers attractive and in the best interests of the Company, subject to the availability of stock, general market conditions, trading price, alternate uses for capital, the Company’s financial performance, and applicable securities laws. No assurance can be given that any particular amount of common stock will be repurchased. Repurchases may also be made pursuant to a trading plan under Rule 10b5-1 under the Exchange Act, which would permit shares to be repurchased when the Company might otherwise be precluded from doing so because of self-imposed trading blackout periods or other regulatory restrictions. This repurchase program may be modified, extended or terminated by the Board of Directors at any time.

1st Colonial Community Bank, the subsidiary of 1st Colonial Bancorp, provides a range of business and consumer financial services, placing emphasis on customer service and access to decision makers. Headquartered in Collingswood, New Jersey, the Bank has branches in Westville, New Jersey and Limerick, Pennsylvania. The bank also has a loan production office in Haddonfield, New Jersey and administrative offices in Cherry Hill, New Jersey. To learn more, call (877) 785-8550 or visit www.1stcolonial.com.

This release contains forward-looking statements that are not historical facts and include statements about management’s strategies and expectations about our business. There are risks and uncertainties that may cause our actual results and performance to be materially different from results indicated by these forward-looking statements. Factors that might cause a difference include the extent of the adverse impact of the current global coronavirus outbreak on our customers, prospects and business, as well as the impact of any future pandemics or other natural disasters; economic conditions; civil unrest, rioting, acts or threats of terrorism, or actions taken by the local, state and Federal governments in response to such events, which could impact business and economic conditions in our market area; unanticipated loan losses, inability to close loans in our pipeline, lack of liquidity; varying and unanticipated costs of collection with respect to nonperforming loans; an inability to dispose of real estate owned; changes in interest rates, changes in FDIC assessments, deposit flows, loan demand, and real estate values; changes in relationships with major customers; operational risks, including the risk of fraud by employees, customers or outsiders; competition; changes in accounting principles, policies or guidelines; changes in laws or regulations and in the manner in which the regulators enforce same; new technology and other factors affecting our operations, pricing, products and services.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211110006318/en/

Mary Kay Shea at 856-885-2391

Source: 1st Colonial Bancorp, Inc.

FAQ

What is the purpose of the stock repurchase program for FCOB?

The stock repurchase program aims to enhance shareholder value and reflects management's confidence in the company's future.

How much is 1st Colonial Bancorp planning to spend on the stock buyback?

1st Colonial Bancorp plans to spend up to $2.0 million on the stock buyback program.

When does the stock repurchase program for FCOB become effective?

The stock repurchase program becomes effective on November 22, 2021.

What percentage of outstanding shares can be repurchased under FCOB’s program?

FCOB is authorized to repurchase up to 4% of its outstanding shares of common stock.

What are the potential risks associated with the stock repurchase program for FCOB?

Risks include market conditions that may affect share repurchases and no guarantee of acquiring any specific amount of shares.