Santa Cruz County Bank Announces $5 Million Share Repurchase Program

Rhea-AI Summary

Santa Cruz County Bank (OTCQX: SCZC) announced a first-ever $5 million Share Repurchase Program, authorized by its Board of Directors and approved by regulatory agencies. The initiative, which allows the bank to buy back shares in open market transactions until May 20, 2023, aims to enhance shareholder value. Chairman William J. Hansen cited the bank's strong financial performance and balance sheet as justification for the program. These repurchases will ultimately reduce the number of outstanding shares, demonstrating a commitment to investors.

Positive

• Launch of first-ever Share Repurchase Program enhances shareholder value.
• Authorization allows repurchase of up to $5 million in shares, indicating confidence in financial stability.
• Strong balance sheet and financial performance support the program.

Negative

• Repurchase program may lead to opportunity costs if funds could have been used for growth initiatives.

SANTA CRUZ, Calif., July 25, 2022 /PRNewswire/ -- Santa Cruz County Bank (OTCQX: SCZC), today announced the launch of a $5 million Share Repurchase Program. The Bank's Board of Directors authorized the Share Repurchase Program and received the required approvals from the California Department of Financial Protection and Innovation as well as the Federal Deposit Insurance Corporation.

This is the first share buyback program in the history of the Bank. In March 2022, the Bank completed a previously announced 2-for-1 stock split. 

"Since our founding, we have continuously aligned the Bank's strategic initiatives with increasing shareholder value," stated Chairman William J. Hansen. "The Board's authorization of this Program is based upon the strength of our balance sheet, our financial performance and continued growth. This Program further demonstrates our commitment to enhancing the value for all stockholders investing in Santa Cruz County Bank."

The Board's authorization for the Program permits the repurchase of up to $5 million of Santa Cruz County Bank common shares in open market and privately-negotiated transactions.  Additionally, the Bank entered into contract with Janney Montgomery Scott LLC, a nationally recognized broker dealer, to facilitate repurchases.  The Bank intends that all share repurchases will be made in compliance with the Securities Exchange Act of 1934 under rules 10b-18 and 10b5-1. The Stock Repurchase Program, which will expire on May 20, 2023, may be suspended, terminated, or modified at any time without notice.  Shares purchased under the program will reduce the number of shares outstanding and will be returned to authorized but unissued status.

The timing and amount of common stock repurchases made pursuant to the Santa Cruz County Bank Share Repurchase Program are subject to various factors, including the Bank's capital position, liquidity, financial performance, alternative uses of capital, stock trading price, regulatory requirements and general market conditions.  The repurchase program does not obligate the Bank to acquire any particular number of shares, and the repurchase program may be suspended or discontinued at any time at the Bank's discretion.

ABOUT SANTA CRUZ COUNTY BANK

Santa Cruz County Bank was founded in 2004. Locally-owned and operated, Santa Cruz County Bank is a full-service community bank headquartered in Santa Cruz, California. The bank has branches in Aptos, Capitola, Cupertino, Monterey, Santa Cruz, Scotts Valley and Watsonville. Santa Cruz County Bank is distinguished from "big banks" by its relationship-based service, problem-solving focus and direct access to decision makers. The bank is a leading SBA lender in Santa Cruz County and Silicon Valley and a top USDA lender in the state of California. The bank's many awards include: eight consecutive years in American Banker's Top 200 Community Banks in the Nation: Bauer Financial Superior 5-Star rating for every quarter in 2021: six consecutive years in Financial Management Consulting Group's Top 10 banks in California and ranked 13 out of 127 California banks based upon overall financial performance in 2021. As a full-service bank, Santa Cruz County Bank offers competitive deposit and lending solutions for businesses and individuals; including business loans, lines of credit, commercial real estate financing, construction lending, agricultural loans, SBA and USDA government guaranteed loans, asset-based lending, credit cards, merchant services, remote deposit capture, mobile and online banking, bill payment and treasury management. True to its community roots, Santa Cruz County Bank has supported regional well-being by actively participating in and donating to local not-for-profit organizations.

Santa Cruz County Bank stock is publicly traded on the OTCQX U.S. Premier marketplace under the symbol SCZC. Stock purchase orders may be placed online, through a brokerage firm, or through Market Makers listed in the Investor Relations section of the bank's website. For more information about Santa Cruz County Bank, visit www.sccountybank.com.

This release may contain forward-looking statements that are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to fluctuations in interest rates, inflation, government regulations and general economic conditions, and competition within the business areas in which the Bank is conducting its operations, including the real estate market in California and other factors beyond the Bank's control. Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated. Readers should not place undue reliance on the forward-looking statements, which reflect management's view only as of the date hereof. The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances. 

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SOURCE Santa Cruz County Bank

FAQ

What is the purpose of the $5 million Share Repurchase Program by Santa Cruz County Bank?

The program aims to enhance shareholder value by repurchasing shares, thus reducing the number of outstanding shares.

When does the Santa Cruz County Bank Share Repurchase Program expire?

The program is set to expire on May 20, 2023.

How much can Santa Cruz County Bank repurchase under the program?

The bank can repurchase up to $5 million worth of common shares.

Who is facilitating the share repurchases for Santa Cruz County Bank?

Janney Montgomery Scott LLC, a recognized broker dealer, has been contracted to facilitate the repurchases.

Are there any risks associated with the Share Repurchase Program?

Yes, the program may incur opportunity costs if the capital could have been used for growth or other investments.