Codorus Valley Bancorp, Inc. Approves New Share Repurchase Program

Rhea-AI Summary

Codorus Valley Bancorp has announced a new stock repurchase program, allowing the company to buy back up to $5 million of its common stock. This program, authorized by the Board of Directors on January 12, 2021, will remain effective until either the full amount is repurchased or until January 31, 2022. The repurchased shares will be held as treasury stock and may be used for various purposes, including the company’s Dividend Reinvestment and Stock Purchase Plan. Codorus Valley Bancorp is the largest independent financial institution in York County, Pennsylvania, with assets exceeding $2 billion.

Positive

• Authorization of a new stock repurchase program totaling $5 million enhances shareholder value.
• Repurchase program could positively affect earnings per share (EPS) by reducing the number of outstanding shares.
• Maintains flexibility for future financial strategies, including utilization of repurchased shares in compensation plans.

Negative

• None.

YORK, Pa., Jan. 14, 2021 (GLOBE NEWSWIRE) -- Codorus Valley Bancorp, Inc. (“Codorus Valley” or the “Corporation”) (NASDAQ: CVLY), parent company of PeoplesBank, A Codorus Valley Company (PeoplesBank), today announced that its Board of Directors had approved a new treasury stock repurchase program.

Under the newly approved stock repurchase program, the Corporation is authorized to repurchase up to $5 million of the Corporation’s issued and outstanding common stock. As permitted by securities laws and other legal requirements and subject to market conditions and other factors, purchases under the program may be made from time to time in the open market at prevailing prices, or through privately negotiated transactions.

The Board of Directors’ January 12, 2021 authorization provides that: (1) the new treasury stock repurchase program shall be effective when publicly announced and shall continue thereafter until the earlier of the date an aggregate of $5 million of common stock has been repurchased or January 31, 2022, or until suspended or terminated by the Board of Directors, in its sole discretion; and (2) all shares of common stock repurchased pursuant to the new program shall be held as treasury shares and be available for use and reissuance for purposes as and when determined by the Board of Directors including, without limitation, pursuant to the Company’s Dividend Reinvestment and Stock Purchase Plan and its equity compensation program.

With assets of over $2 billion, PeoplesBank, A Codorus Valley Company, is a wholly owned subsidiary of Codorus Valley Bancorp, Inc., the largest independent financial institution headquartered in York County, Pennsylvania. PeoplesBank offers a full range of consumer, business, wealth management, and mortgage services at financial centers located in communities throughout South Central Pennsylvania and Central Maryland. Codorus Valley Bancorp, Inc.’s Common Stock is listed on the NASDAQ Global Market under the symbol CVLY.   

Questions or comments concerning this Press Release should be directed to:
Codorus Valley Bancorp, Inc. Larry J. Miller, Chairman, President and CEO 717-747-1500 lmiller@peoplesbanknet.com	Larry D. Pickett, CPA - Treasurer 717-747-1502 lpickett@peoplesbanknet.com

FAQ

What is the amount authorized for the CVLY stock repurchase program?

Codorus Valley Bancorp has authorized a stock repurchase program for up to $5 million.

When was the CVLY stock repurchase program approved?

The stock repurchase program was approved on January 12, 2021.

What is the duration of the CVLY stock repurchase program?

The program will remain effective until either $5 million of common stock has been repurchased or until January 31, 2022.

How will the repurchased CVLY shares be utilized?

Repurchased shares will be held as treasury stock and may be used for the company’s Dividend Reinvestment and Stock Purchase Plan or equity compensation programs.

What impact could the CVLY stock buyback have on shareholders?

The buyback could enhance shareholder value and potentially increase earnings per share by reducing the number of shares outstanding.