ALAMOGORDO, N.M., May 22, 2019 /PRNewswire/ -- Bancorp 34, Inc.
("Bancorp 34") (NASDAQ: BCTF), the holding company for Bank 34,
announced that its Board of Directors approved a second stock
repurchase and initial quarterly cash dividend.Under the repurchase
program, the Company may repurchase up to 167,747 shares of its
common stock, or approximately 5% of the current outstanding
shares. The initial quarterly cash dividend of $0.05 per share of common stock will be payable
on June 18, 2019 to shareholders of
record as of the close of business on June
4, 2019.
The repurchase program permits shares to be repurchased in open
market or private transactions, through block trades, and pursuant
to any trading plan that may be adopted in accordance with Rule
10b5-1 of the Securities and Exchange Commission. Repurchases
will be made at management's discretion at prices management
considers to be attractive and in the best interests of both
Bancorp 34 and its stockholders, subject to the availability of
stock, general market conditions, the trading price of the stock,
alternative uses for capital, and Bancorp 34's financial
performance. Open market purchases will be conducted in accordance
with the limitations set forth in Rule 10b-18 of the Securities and Exchange Commission
and other applicable legal requirements.
The repurchase program may be suspended, terminated or modified
at any time for any reason, including market conditions, the cost
of repurchasing shares, the availability of alternative investment
opportunities, liquidity, and other factors deemed appropriate.
These factors may also affect the timing and amount of share
repurchases. The Company is not obligated to repurchase any
particular number of shares or any shares in any specific time
period.
Bancorp 34 previously paid a special dividend of $1.25 in May 2018. Future declarations of
dividends are subject to the determination and discretion of
Bancorp 34's Board of Directors.
Jill Gutierrez, President and
Chief Executive Officer of Bancorp 34, stated "The stock repurchase
and quarterly dividend programs both demonstrate confidence in our
financial prospects over the long term and commitment to enhance
shareholder value, while continuing to invest in our business and
maintaining our strong capital position. They also reflect
our continued efforts to actively manage our capital while
maintaining ample capacity to support organic growth and ongoing
operations. The decision by the Board of Directors to initiate a
regular quarterly dividend program represents a significant
milestone in our history. The repurchase program also serves
to offset some of the dilution to stockholders resulting from our
2017 equity incentive plan. "
The Company has received non-objection from the Federal Reserve
Board with respect to both the stock repurchase and quarterly
dividend programs.
Forward-Looking Statements
Certain statements
herein constitute forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Such
statements may be identified by words such as "believes," "will,"
"expects," "project," "may," "could," "developments," "strategic,"
"launching," "opportunities," "anticipates," "estimates,"
"intends," "plans," "targets" and similar expressions. These
statements are based upon the current beliefs and expectations of
Bancorp 34's management and are subject to significant risks and
uncertainties. Actual results may differ materially from those set
forth in the forward-looking statements as a result of numerous
factors. Factors that could cause such differences to exist
include, but are not limited to, general economic conditions,
changes in interest rates, regulatory considerations, competition
and the other risks described in the Company's Annual Report on
Form 10-K and Quarterly Reports on Form 10-Q as filed with the
Securities and Exchange Commission. Should one or more of these
risks materialize or should underlying beliefs or assumptions prove
incorrect, Bancorp 34's actual results could differ materially from
those discussed. Readers are cautioned not to place undue reliance
on these forward-looking statements, which speak only as of the
date of this release. Forward-looking statements speak only
as of the date they are made, and we assume no obligation to update
any of these statements in light of new information, future events
or otherwise unless required under federal securities laws.
Contact: Jan R. Thiry
EVP/Chief Financial Officer
623.777.0570
j.thiry@bank34.com
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SOURCE Bancorp 34, Inc.