PCB Bancorp Announces Stock Repurchase Plan

Rhea-AI Summary

PCB Bancorp (NASDAQ: PCB) announced a stock repurchase program on April 8, 2021, allowing for the buyback of up to 5% of its outstanding shares, equating to 775,000 shares. The repurchase will start following the release of unaudited Q1 2021 results, and purchases may occur through various methods, including open market transactions and block purchases. The plan may be altered or halted at the company’s discretion, with repurchases subject to market conditions. A 10b5-1 trading plan will also be implemented to facilitate these buybacks while adhering to insider trading regulations.

Positive

• Repurchase program of 775,000 shares may enhance shareholder value.
• Confidence in the company’s growth as demonstrated by the buyback plan.

Negative

• None.

PCB Bancorp (the “Company”) (NASDAQ: PCB), the bank holding company for Pacific City Bank, announced that on April 8, 2021, its Board of Directors approved a repurchase program authorizing for the repurchase up to 5% of the Company’s outstanding common stock as of the date of the board meeting, which represented 775,000 shares, through September 7, 2021, with repurchases to commence shortly after the Company announces its unaudited results for the first quarter of 2021.

Under the stock repurchase program, the Company may purchase shares of its common stock through various means such as open market transactions, including block purchases, and privately negotiated transactions. The number of shares repurchased and the timing, manner, price and amount of any repurchases will be determined at the Company’s discretion. Factors include, but are not limited to, stock price, trading volume and general market conditions, along with the Company’s general business conditions. The program may be suspended or discontinued at any time and does not obligate the company to acquire any specific number of shares of its common stock.

As part of the stock repurchase program, the Company intends to enter into a trading plan adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. The 10b5-1 trading plan would permit common stock to be repurchased at a time that the Company might otherwise be precluded from doing so under insider trading laws or self-imposed trading restrictions. The 10b5-1 trading plan will be administered by an independent broker and will be subject to price, market volume and timing restrictions.

About PCB Bancorp

PCB Bancorp, formerly known as Pacific City Financial Corporation, is the bank holding company for Pacific City Bank, a California state chartered bank, offering a full suite of commercial banking services to small to medium-sized businesses, individuals and professionals, primarily in Southern California, and predominantly in Korean-American and other minority communities.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections and statements of our beliefs concerning future events, business plans, objectives, expected operating results and the assumptions upon which those statements are based. Forward-looking statements include without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and are typically identified with words such as “may,” “could,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “aim,” “intend,” “plan,” or words or phases of similar meaning. We caution that the forward-looking statements are based largely on our expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond our control, including but not limited to our borrowers’ actual payment performance as loan deferrals related to the COVID-19 pandemic expire, changes to statutes, regulations, or regulatory policies or practices as a result of, or in response to the COVID-19 pandemic, including the potential adverse impact of loan modifications and payment deferrals implemented consistent with recent regulatory guidance, and the general economic uncertainty caused by the COVID-19 pandemic, and government and societal responses thereto. These and other important factors are detailed in various securities law filings made periodically by the Company, copies of which are available from the Company without charge. Actual results, performance or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements. Any forward-looking statements presented herein are made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210412005756/en/

FAQ

What is PCB Bancorp's stock repurchase program?

PCB Bancorp has authorized a repurchase program to buy back up to 775,000 shares, representing 5% of its outstanding stock.

When will PCB Bancorp begin its stock buybacks?

Repurchases are set to commence shortly after the company announces its unaudited Q1 2021 results.

What is the purpose of the stock repurchase program for PCB Bancorp?

The buyback aims to enhance shareholder value and can lead to an increase in earnings per share (EPS).

How will PCB Bancorp conduct the share buybacks?

The company plans to repurchase shares through open market transactions and private negotiations, guided by market conditions.

What is a 10b5-1 trading plan in relation to PCB Bancorp?

A 10b5-1 trading plan allows PCB Bancorp to repurchase shares during times when it might be restricted from trading, ensuring compliance with insider trading laws.