West Coast Community Bancorp Announces Share Repurchase Program

Rhea-AI Summary

West Coast Community Bancorp (OTCQX: SCZC) has announced a new $10 million share repurchase program effective until June 30, 2026. The program allows the company to repurchase shares through open market or private transactions, with timing and pricing at management's discretion. The repurchases will be funded through internal funds and potential dividends from West Coast Community Bank. Chairman Stephen Pahl emphasized that this initiative reflects confidence in the company's balance sheet and commitment to enhancing shareholder value. The program will be executed in compliance with federal and state securities laws, including Rules 10b-18 and 10b5-1, but does not obligate the company to repurchase any specific number of shares.

Positive

• Authorization of $10 million share repurchase program demonstrates financial strength
• Program reflects management's confidence in company's long-term value
• Flexible repurchase terms allow strategic timing of purchases
• Company has sufficient internal funds to support the program

Negative

• No guaranteed number of shares to be repurchased
• Program may be suspended or terminated without notice
• Repurchase execution depends on market conditions and other factors

SANTA CRUZ, Calif., May 6, 2025 /PRNewswire/ -- West Coast Community Bancorp ("Bancorp"; OTCQX: SCZC), the parent company of West Coast Community Bank, today announced its Board of Directors recently approved a new share repurchase program. Under the share repurchase program, Bancorp is authorized to repurchase up to $10 million of common stock in the open market or through privately negotiated transactions, as market conditions warrant, but does not obligate Bancorp to repurchase any specified number of shares. 

The timing and price of repurchases as well as the actual number of shares repurchased under the program will be at the discretion of Bancorp and will depend on a variety of factors, including general market conditions, the stock price, regulatory requirements and limitations, corporate liquidity requirements and priorities and other factors. The share repurchase program expires June 30, 2026.

"This share repurchase program reflects our confidence in the strength of our balance sheet and the long-term value of our company," said Stephen Pahl, Chairman of the Board of Directors. "The program represents a disciplined and strategic use of capital, reinforcing our commitment to enhancing shareholder value while maintaining the flexibility to invest in future growth."

Bancorp intends to fund repurchases from its presently held internal funds, supplemented as needed by a dividend from West Coast Community Bank, and to execute repurchases in compliance with applicable federal and state securities laws and bank regulations, including without limitation, Rules 10b-18 and 10b5-1 promulgated under the Securities Exchange Act of 1934, as amended. The stock repurchase program may be suspended, terminated or modified at any time without notice.

ABOUT WEST COAST COMMUNITY BANK AND WEST COAST COMMUNITY BANCORP
Founded in 2004, West Coast Community Bank (formerly Santa Cruz County Bank and its division, 1st Capital Bank – the "Bank") is the wholly owned subsidiary of West Coast Community Bancorp, a bank holding company. The Bank is a top-rated, locally operated and full-service community bank headquartered in Santa Cruz, Calif. with branches in Aptos, Capitola, Cupertino, King City, Monterey, Salinas, San Luis Obispo, Santa Cruz, Scotts Valley and Watsonville. West Coast Community Bank is distinguished from "big banks" by its relationship-based service, problem-solving focus and direct access to decision makers. The Bank is a leading SBA lender in Santa Cruz County and Silicon Valley. As a full-service bank, West Coast Community Bank offers competitive deposit and lending solutions for businesses and individuals; including business loans, lines of credit, commercial real estate financing, construction lending, asset-based lending, agricultural loans, SBA and USDA government guaranteed loans, credit cards, merchant services, remote deposit capture, mobile and online banking, bill payment and treasury management. True to its community roots, West Coast Community Bank has supported regional well-being by actively participating in and donating to local nonprofit organizations. Visit wccb.com for more information.

Forward-Looking Statements

This release may contain forward-looking statements that are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to the successful integration with 1^st Capital Bancorp post-merger, achieving the targeted cost savings and synergies within expected time-frames or at all, retaining employees and clients, fluctuations in interest rates (including but not limited to changes in depositor behavior in relation thereto), inflation, government regulations and general economic conditions and competition within the business areas in which the Bank is conducting its operations, health of the real estate market in California, Bancorp's ability to effectively execute its business plans and other factors beyond Bancorp and the Bank's control. In particular, rapid and large increases in interest rates in the past few years have driven core deposit intangible levels higher. Higher interest rates reflect a higher cost of wholesale borrowing from the market relative to the cost of maintaining cheaper core deposits, which has made the value of deposit relationships increased. When interest rates fall, banks may adjust deposit rates closer to falling market rates. This could reduce the value of core deposit intangible asset and result in future impairment charges. Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated. Readers should not place undue reliance on the forward-looking statements, which reflect management's view only as of the date hereof. Bancorp undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.

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SOURCE West Coast Community Bancorp

FAQ

What is the size of SCZC's new share repurchase program?

West Coast Community Bancorp's new share repurchase program authorizes the repurchase of up to $10 million of common stock.

When does West Coast Community Bancorp's share buyback program expire?

The share repurchase program expires on June 30, 2026.

How will SCZC fund its share repurchase program?

The company plans to fund repurchases from its internal funds, supplemented as needed by dividends from West Coast Community Bank.

Who approved West Coast Community Bancorp's share repurchase program?

The share repurchase program was approved by West Coast Community Bancorp's Board of Directors.

How will SCZC execute its share repurchase program?

The company will repurchase shares through open market or privately negotiated transactions, in compliance with federal and state securities laws, including Rules 10b-18 and 10b5-1.