NorthEast Community Bancorp, Inc. (NASDAQ:NECB) (the "Company"), the holding company for NorthEast Community Bank, today announced that the Company's Board of Directors has authorized a stock repurchase program to acquire up to 1,637,794 shares, or 10%, of the Company's currently issued and outstanding common stock commencing on August 1, 2022. This is the Company's first repurchase program since completing its second-step conversion and related stock offering in July 2021.
The repurchase program permits shares to be repurchased in open market transactions or privately negotiated transactions, and pursuant to a trading plan in accordance with Rule 10b5-1 of the Securities and Exchange Commission. In this regard, the Board also authorized management to enter into a trading plan with Piper Sandler & Co. in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934 (the "Exchange Act"), to facilitate repurchases of its common stock pursuant to the above-mentioned stock repurchase program (the "Rule 10b5-1 plan"). The Rule 10b5-1 plan allows the Company to repurchase shares at times when they might otherwise be prevented from doing so by securities laws or because of self-imposed trading blackout periods. Under the Rule 10b5-1 plan, Piper Sandler & Co. will have the authority, subject to the prices, terms and limitations set forth in the Rule 10b5-1 plan, including compliance with Rule 10b-18 of the Exchange Act, to repurchase shares on the Company's behalf.
The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements, market conditions, and other corporate liquidity requirements and priorities. The repurchase program does not obligate the Company to purchase any particular number of shares and it may be extended, modified or discontinued at any time.