Chesapeake-based Monarch Financial Holdings Inc., the parent of Monarch Bank, plans to repurchase of up to 3 percent of its outstanding common stock.
As a result, the company expects to buy about 180,000 shares.
The stock repurchase program will be conducted by buying shares in the open market or through privately negotiated transactions. The timing of purchases will depend on market conditions and other factors, according to the banking company.
“This repurchase program is in direct response to the recent volatility in the market and the disconnect between our stock price and our performance,“ Brad E. Schwartz, the company’s CEO, said in a statement.
“With 10 record quarters of profitability along with strong asset quality and measured loan and deposit growth, we feel our stock price is currently undervalued in the marketplace and we have been painted with the same brush as other lower performing financial service companies,” he said. “ This is another aspect of our overall capital management strategy, and does not rule out other future growth opportunities.“
Monarch Bank has nine offices in Chesapeake, Virginia Beach, and Norfolk. OBX Bank, a division of Monarch Bank, operates offices in Kitty Hawk and Nags Head, N.C.
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