FVCBankcorp Announces Extension of Share Repurchase Program

Rhea-AI Summary

FVCBankcorp, Inc. (Nasdaq – FVCB) has extended its share repurchase program originally started in 2020, now allowing repurchase of up to 1,080,860 shares, representing about 8% of outstanding shares as of December 31, 2020. This extension is set to expire on December 31, 2021. The program allows for flexibility in execution, enabling repurchases through open market purchases, block trades, or privately negotiated transactions, depending on market conditions. The repurchased shares will be canceled, reverting to authorized but unissued shares.

Positive

• Increased share repurchase program to 1,080,860 shares, enhancing shareholder value.
• Repurchase may provide upward pressure on stock price.

Negative

• The program's effectiveness is contingent on market conditions and management discretion, which introduces uncertainty.
• No obligation to repurchase shares may lead to missed opportunity and potential market undervaluation.

FVCBankcorp, Inc. (Nasdaq – FVCB) (the “Company”) announced today that its Board of Directors has extended its share repurchase program that was initiated in 2020, and increased the number of shares subject to repurchase. Under the revised repurchase program, the Company may repurchase up to 1,080,860 shares of its common stock, or approximately 8% of its outstanding shares of common stock at December 31, 2020. The repurchase program will expire on December 31, 2021, subject to earlier termination of the program by the Board of Directors. As of December 31, 2020, the Company had approximately 13.5 million shares outstanding.

Repurchases may be made in open market purchases, block trades or in privately negotiated transactions. Repurchases, if any, under the program will be made at the discretion of management, and will depend upon market pricing and conditions, business, legal, accounting and other considerations. Open market purchases will be conducted in accordance with the limitation of Rule 10b-18 of the Securities and Exchange Commission (the “SEC”). Repurchases may be made pursuant to any trading plan that may be adopted in accordance with SEC Rule 10b5-1, which would permit common stock to be repurchased when the Company might otherwise be precluded from doing so under insider trading laws. Under applicable law, repurchased shares will be cancelled and revert to the status of authorized but unissued shares.

The repurchase program may be modified, suspended or terminated at any time without notice, in the Company’s discretion, based upon a number of factors, including market conditions, the cost of repurchasing shares, the availability of alternative investment opportunities, liquidity, the need for capital in the Company’s operations and other factors deemed appropriate. These factors may also affect the timing and amount of share repurchases. The repurchase program does not obligate the Company to repurchase any shares.

About FVCBankcorp Inc.

FVCBankcorp, Inc. is the holding company for FVCbank, a wholly-owned subsidiary of FVCB which commenced operations in November 2007. FVCbank is a $1.82 billion Virginia-chartered community bank serving the banking needs of commercial businesses, nonprofit organizations, professional service entities, their owners and employees located in the greater Baltimore and Washington D.C., metropolitan areas. Locally owned and managed, FVCbank is based in Fairfax, Virginia, and has 9 full-service offices in Arlington, Fairfax, Manassas, Reston and Springfield, Virginia, Washington D.C., and Baltimore, Bethesda, and Rockville, Maryland.

For more information on the Company’s selected financial information, please visit the Investor Relations page of FVCBankcorp Inc.’s website, www.fvcbank.com.

Forward-looking Statements: This press release contains forward-looking statements within the meaning of the Securities and Exchange Act of 1934, as amended, including statements of goals, intentions, and expectations as to future trends, plans, events or results of Company operations and policies and regarding general economic conditions. In some cases, forward-looking statements can be identified by use of words such as “may,” “will,” “anticipates,” “believes,” “expects,” “plans,” “estimates,” “potential,” “continue,” “should,” and similar words or phrases. These statements are based upon current and anticipated economic conditions, nationally and in the Company’s market, interest rates and interest rate policy, competitive factors, and other conditions which by their nature, are not susceptible to accurate forecast and are subject to significant uncertainty. Because of these uncertainties and the assumptions on which this discussion and the forward-looking statements are based, actual future operations and results in the future may differ materially from those indicated herein. For details on factors that could affect these expectations, see the risk factors and other cautionary language included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 and in other periodic and current reports filed with the SEC. Readers are cautioned against placing undue reliance on any such forward-looking statements. The Company’s past results are not necessarily indicative of future performance.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210121005786/en/

FAQ

What is the updated share repurchase program for FVCB?

FVCB's repurchase program allows up to 1,080,860 shares to be bought back, about 8% of its outstanding shares.

When does the FVCB share repurchase program expire?

The repurchase program is set to expire on December 31, 2021.

What are the methods for repurchasing shares under the FVCB program?

Repurchases may be conducted through open market purchases, block trades, or privately negotiated transactions.

How might the share repurchase program affect FVCB's stock price?

The share repurchase program could increase stock price by reducing available shares, thereby potentially enhancing earnings per share.

Is FVCB obligated to repurchase shares under the program?

No, FVCB is not obligated to repurchase any shares, providing flexibility based on market conditions.