FVCBankcorp, Inc. FVCB announced today that its board of directors has extended its share repurchase program by up to 1.08 million shares, representing 8% of its 13.7 million outstanding shares of common stock as of Dec 31, 2021.
The plan is valid till Mar 31, 2023, subject to the earlier termination of the program by the board of directors.
The share buyback was originally initiated in February 2020 under which FVCBankcorp authorized the repurchase of 1.12 million shares of its common stock. This plan was valid up to Dec 31, 2020.
In January 2021, the company extended the repurchase plan for the first time for a buyback of up to 1.08 million shares expiring on Dec 31, 2021.
The company’s return on equity of 11.59% compared with the industry average of 11.24% indicates its superiority in utilizing shareholders’ funds.
Its past performance depicts a robust earnings picture. FVCB recorded an earnings growth rate of 12.4% over the last three to five years. If this momentum continues in the upcoming period, such share repurchases are here to stay. Further, the company’s earnings are projected to grow 10% and 11.4% year over year for 2022 and 2023 respectively.
Also, the recent interest rate hike of 25 basis points by the Fed will help bolster the revenues of the company. Further, supported by its strong organic growth driven by higher loans and deposits, FVCBankcorp is expected to continue with efficient capital deployment activities. Through this, it will keep enhancing shareholder value.
Over the past three months, shares of FVCB have rallied 25.9% compared with a 4.1% rise of the industry it belongs to.
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FVCBankcorp currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Banks That Took Similar Action
Southside Bancshares, Inc. SBS announced a share repurchase plan on Mar 4, 2022. The board of directors approved the repurchase of up to 1 million of SBSI’s outstanding shares. The new share buyback authorization comes with no expiration date.
The new repurchase plan replaces the previous one. On Mar 12, 2020, Southside Bancshares’ board of directors increased the authorization under the previous stock repurchase plan of September 2019 by an additional one million shares to buy back up to two million shares. In 2021, all remaining authorized shares under the plan were repurchased at an average cost of $36.39 per share.
Popular, Inc. BPOP entered into an accelerated share repurchase (“ASR”) agreement on Feb 28, 2022, to repurchase an aggregate of $400 million of the company’s common stock. This is part of the company’s plan to repurchase up to $500 million of its common stock as part of its planned capital actions for the ongoing year, as underlined this January.
Per the ASR agreement, on Mar 2, 2022, Popular was expected to have made an initial payment of $400 million to buy 3,483,942 shares of its common stock. This will be accounted as a treasury stock transaction.
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