Fentura Financial, Inc. Announces Amendment to Stock Repurchase Program

Rhea-AI Summary

Fentura Financial, Inc. (OTCQX: FETM) has announced an amendment to its stock repurchase program, increasing the budget from $5 million to $10 million. Previously, the company repurchased $4.6 million of its common stock. The buyback will occur through open market purchases and is subject to market conditions and regulations. The repurchase aims to enhance shareholder value and may be adjusted or discontinued at any time. The funds for this initiative will come from the company's available cash reserves.

Positive

• Increased stock repurchase program to $10 million, up from $5 million.
• Previously repurchased $4.6 million, demonstrating commitment to enhancing shareholder value.

Negative

• None.

FENTON, Mich., Nov. 22, 2021 (GLOBE NEWSWIRE) -- Fentura Financial, Inc. (OTCQX: FETM, the "Corporation") today announced that its Board of Directors has approved an amendment to the Corporation's common stock repurchase program, initially authorized in April 2020 for the repurchase of up to $5 million of the Corporation's common stock. The amendment allows the Corporation to repurchase up to $10 million in aggregate of the currently outstanding shares of the Corporation's common stock through open market purchases, privately-negotiated transactions, or otherwise in compliance with Rule 10b-18 under the Securities Exchange Act of 1934. Prior to the date of this announcement, the Corporation has purchased $4.6 million of the Corporation's common stock under the repurchase program.

The actual timing, number and value of shares repurchased under the stock repurchase program will depend on a number of factors, including constraints specified in any Rule 10b5-1 trading plans, price, general business and market conditions, and alternative investment opportunities. The share repurchase program does not obligate the Corporation to acquire any specific number of shares in any period, and may be expanded, extended, modified or discontinued at any time. Payment for shares repurchased under the program will be funded using the Corporation's cash on hand.

About Fentura Financial, Inc. and The State Bank

Fentura Financial, Inc. is the holding company for The State Bank. It was formed in 1987 and is traded on the OTCQX exchange under the symbol FETM, and was recognized as one of the Best 50 performing stocks in 2018 on that exchange.

The State Bank is a full-service, 5-Star Bauer Financial rated commercial, retail and trust bank headquartered in Fenton, Michigan. It currently operates 17 full-service branches in Genesee, Livingston, Oakland, Saginaw, and Shiawassee Counties. The State Bank’s commercial department provides a complete array of products including lines of credit, term loans, commercial mortgages, SBA loans and a full-suite of cash management products. The retail department offers personal checking, savings, time and IRA deposit accounts and a wide array of loan products including home equity, auto and personal loans. The residential loan department offers construction, purchase and refinance residential mortgage loans. The wealth management department offers a full-service suite of trust and portfolio management services. More information can be found at www.thestatebank.com or www.fentura.com.

Cautionary Statement: This press release contains certain forward-looking statements that involve risks and uncertainties. Forward-looking statements include, but are not limited to, statements concerning future growth in earning assets and net income. Such statements are subject to certain risks and uncertainties which could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including, but not limited to, economic, competitive, governmental and technological factors affecting the Company's operations, markets, products, services, interest rates and fees for services. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.

Contacts:

Ronald L. Justice President & CEO Fentura Financial, Inc. 810.714.3902 ron.justice@thestatebank.com

Aaron D. Wirsing Chief Financial Officer Fentura Financial, Inc. 810.714.3925 aaron.wirsing@thestatebank.com

 

FAQ

What is the updated stock repurchase program amount for Fentura Financial (FETM)?

The updated stock repurchase program amount for Fentura Financial is $10 million, increased from the original $5 million.

How much of the stock has Fentura Financial already repurchased?

Fentura Financial has already repurchased $4.6 million of its common stock under the existing repurchase program.

What factors will influence the timing and amount of shares repurchased by Fentura Financial?

The timing and amount of shares repurchased will depend on market conditions, price, and regulatory constraints.