UB Bancorp Announces Board Approval to Increase Share Repurchase Program

Rhea-AI Summary

UB Bancorp (OTCQX: UBNC) has authorized an increase in its share repurchase program, allocating an additional $2.0 million following the initial repurchase of up to 1.5% of its common shares. This additional program will expire on March 31, 2022. The company emphasizes that repurchases depend on market conditions and capital considerations. CEO Rob Jones stated that this strategy aims to optimize shareholder capital. The bank operates 14 branches across 11 counties in North Carolina.

Positive

• Additional $2.0 million allocated for share repurchases, enhancing shareholder value.
• Completion of the initial repurchase program signifies effective capital management.

Negative

• None.

UB Bancorp (OTCQX: UBNC) (the “Company”), the parent of Union Bank, is pleased to announce that its Board of Directors has authorized increasing the capacity of its share repurchase program. In December of 2020, the Board announced its authorization for the repurchase of up to 1.5% of the Company’s common shares outstanding. As the Company approaches successful completion of this initial repurchase program, the Board has allocated an additional $2.0 million for share repurchases. The expiration of this additional share repurchase program is set for March 31, 2022.

This share repurchase program does not obligate the Company to purchase any shares. UB Bancorp will acquire these shares in the open market, making its program available to shareholders on an equitable basis. Actual repurchases will be subject to the availability of stock in the marketplace, general market conditions, and trading price, as well as consideration of alternative uses for the capital and the Company’s financial performance.

Rob Jones, President and Chief Executive Officer, stated, “Management and the Board of Directors believe that repurchasing shares in this current market is an effective way to utilize and maximize our shareholders’ capital. We will continue to evaluate the best use of our capital given our financial position as well as other alternatives to deploy our capital to the benefit of our shareholders.”

UB Bancorp and Union Bank are headquartered in Greenville, North Carolina and operate 14 branches located in 11 counties throughout Eastern and Central North Carolina. The Company’s stock is traded on the OTCQX Markets under the symbol UBNC. The Bank’s website is www.unionbanknc.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210524005482/en/

FAQ

What is the purpose of UB Bancorp's increased share repurchase program?

The purpose is to optimize and maximize shareholder capital in the current market.

When does the additional share repurchase program expire?

The additional share repurchase program is set to expire on March 31, 2022.

How much has UB Bancorp allocated for the new share repurchase program?

UB Bancorp has allocated an additional $2.0 million for the new share repurchase program.

What percentage of shares was initially authorized for repurchase by UB Bancorp?

The initial share repurchase program authorized the buyback of up to 1.5% of the company's common shares.

Where can I find more information about UB Bancorp?

More information about UB Bancorp can be found on their website at www.unionbanknc.com.