FNBH Bancorp, Inc., the holding company of First National Bank in Howell, a Michigan-based community bank, announced that its Board of Directors authorized a share repurchase plan. Under the terms of the share repurchase plan, the company is authorized to buy back up to 5% of its outstanding common stock. The share repurchase plan is authorized to begin immediately and last through Dec. 31, 2021.
The company intends to accomplish share repurchases through open market transactions, though the company could accomplish repurchases through other means, such as privately negotiated transactions. The timing and amount of any share repurchases will depend on a variety of factors, including, among others, securities law restrictions, the trading price of the Company’s common stock, other regulatory requirements, potential alternative uses for capital, and the Company’s financial performance. The share repurchase plan does not obligate the Company to acquire any particular amount of common stock, and it may be modified, suspended, or terminated at any time at the Company’s discretion. The Company expects to fund any repurchases from cash on hand.
Shareholders considering selling shares of FNBH Bancorp, Inc. stock are encouraged to consult with their tax advisors regarding any potential tax consequences from a sale of their shares.