There are a number of companies that may be worth looking into this morning in light of the developments yesterday, and one such company is First Commerce Bancorp Inc. (OTC:CMRB). First Commerce Bancorp, which is the parent company of First Commerce Bank, was in the news cycle yesterday after it announced that its ongoing stock buyback program had been approved by its Board of Directors.
The company revealed that the continuation had been approved so that it could buy back 5% more of the outstanding shares of its common stock. That would take the total of the repurchase to 10% of the outstanding shares, or 2.4 million shares of the company’s common stock. It was the first stock buyback program that had been launched by First Commerce Bancorp since it concluded its holding company reorganization on May 31 last year. In a news release, it was announced by the company that the shares could be purchased in both private deals and open market transactions.
Additionally, there was no set expiration date for the repurchase program; however, the company noted that it could be terminated, modified, or suspended at any time for any conceivable reason. The amount and timing of the buybacks from First Commerce Bancorp would depend on a range of factors, which include the general conditions of the stock market, the trading price of the stock, the financial performance of the company, and the availability of capital.
The open market transaction would be performed in alignment with the relevant laws. However, it was also pointed out that First Commerce Bancorp did not have any obligation to pick up a specific number of shares in any particular time period. Additionally, there was no guarantee either with regards to the specific number of shares that the company was going to buy back.