SCVBank Announces Continuance of Stock Repurchase Plan
Santa Paula, CA. October 17, 2008- Santa Clara Valley Bank (SCVBank; OTC BB: SCVE.OB) today announced its board of directors has authorized a repurchase of up to an additional $220,000 of the company’s common stock. The Bank is authorized until April 17, 2009 to purchase from time to time in open market, depending on market conditions.
Over the previous six months, the Bank has repurchased 4,148 shares. The average price paid was $10.75 per share.
“Our stock is currently trading at a significant discount and it has, we believe, little correlation to our recent financial performance, including seven quarters without a loan charge-off”, said Michael D. Hause, president and CEO. “Because of our history of rigorous underwriting and stringent credit quality standards, our Bank continues to be strong. BauerFinancial, Inc. has rated SCVBank as 5 - Star, one of the safest financial institutions in America.”
Chairman Guy Cole stated, “The Board believes that it is in the best interests of the Bank and its shareholders for the Bank to reacquire shares of its common stock on the open market for several reasons, including the recent trading price of the common stock that the Board believes is undervalued and the Bank has sufficient cash available to effect repurchases without adversely affecting the Bank’s financial condition. In addition, the repurchases will have the effect of improving the Bank’s earnings per share and return on equity.”
Founded in 1998, Santa Clara Valley Bank has offices in Santa Paula, Fillmore, and Valencia. Under its stock symbol of SCVE.OB, Santa Clara Valley Bank's stock is traded through McAdams Wright Ragen, Howe Barnes Hofer & Arnett, and Wedbush Morgan Securities. The Bank's web site is www.SCVBank.com.
Santa Clara Valley Bank Corporate Headquarters
901 East Main Street
Santa Paula, California 93060
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