FVCBankcorp Announces Extension of Share Repurchase Program

Rhea-AI Summary

FVCBankcorp (FVCB) has announced the extension of its share repurchase program initiated in 2020. The program allows the company to repurchase up to 1.3 million shares of common stock, representing approximately 7% of outstanding shares as of December 31, 2024.

The extended program will run until March 31, 2026, with repurchases possible through open market purchases, block trades, or private transactions. The implementation will comply with SEC Rule 10b-18 limitations and may include a Rule 10b5-1 trading plan. Repurchased shares will be cancelled and revert to authorized but unissued status.

Management maintains discretion over the timing and amount of repurchases, considering factors such as market conditions, share pricing, alternative investments, and liquidity needs. The program can be modified, suspended, or terminated without notice and does not obligate the company to repurchase any shares.

Positive

• Authorization to repurchase 7% of outstanding shares indicates confidence in company's value
• Extended program provides flexibility in capital management until March 2026
• Multiple repurchase methods available (open market, block trades, private transactions)

Negative

• Program doesn't obligate actual share repurchases
• Capital used for buybacks reduces funds available for other investments

Insights

Financial Analyst

FVCBankcorp's extension of its share repurchase program represents a potentially positive development for shareholders. The authorization to repurchase up to 1,300,000 shares—approximately 7% of outstanding shares—signals management's continued confidence in the company's financial position and provides a mechanism to return capital to shareholders.

Share repurchase programs typically benefit investors in several ways. They can enhance earnings per share by reducing the number of outstanding shares, potentially providing support for the stock price. For a regional bank with a market cap of approximately $187.5 million, this repurchase authorization represents a meaningful commitment.

Importantly, the program's discretionary nature gives management tactical flexibility to time purchases advantageously based on market conditions through March 2026. This extends rather than initiates a capital return strategy, suggesting consistency in the company's approach to shareholder returns.

However, investors should note that the announcement explicitly states the company is not obligated to repurchase any shares. The actual impact will depend entirely on implementation—how many shares are actually repurchased and at what prices. The extension itself doesn't guarantee new share repurchases beyond what might have occurred under the previous authorization.

For a regional bank, maintaining this capital return program suggests relatively strong capital ratios and regulatory position. This continuation of the existing buyback strategy likely indicates management's view that the bank has sufficient capital to both support operations and return value to shareholders.

FAIRFAX, Va.--(BUSINESS WIRE)-- FVCBankcorp, Inc. (Nasdaq: FVCB) (the “Company”) announced today that its Board of Directors has extended its share repurchase program that was initiated in 2020. Under the repurchase program, the Company may repurchase up to 1,300,000 shares of its common stock, or approximately 7% of its outstanding shares of common stock at December 31, 2024. The repurchase program will expire on March 31, 2026, subject to earlier termination of the program by the Board of Directors.

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 limitations 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 which commenced operations in November 2007. FVCbank is a $2.20 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 8 full-service offices in Arlington, Fairfax, Manassas, Reston and Springfield, Virginia, Washington D.C., Baltimore and Bethesda, Maryland.

For more information about the Company, 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. 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, 2023 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/20250320541106/en/

For further information, contact:

David W. Pijor, Chairman and Chief Executive Officer

Phone: (703) 436-3802

Email: dpijor@fvcbank.com

Patricia A. Ferrick, President

Phone: (703) 436-3822

Email: pferrick@fvcbank.com

Source: FVCBankcorp Inc.

FAQ

How many shares can FVCBankcorp (FVCB) repurchase under the extended program?

FVCBankcorp can repurchase up to 1.3 million shares, representing approximately 7% of outstanding shares as of December 31, 2024.

When does FVCBankcorp's (FVCB) extended share repurchase program expire?

The extended share repurchase program will expire on March 31, 2026, unless terminated earlier by the Board of Directors.

What methods will FVCB use to repurchase shares under the program?

FVCB can repurchase shares through open market purchases, block trades, or privately negotiated transactions, in compliance with SEC Rule 10b-18.

What happens to the shares repurchased by FVCBankcorp (FVCB)?

Repurchased shares will be cancelled and revert to the status of authorized but unissued shares.