Summary
First Citizens BancShares, Inc. (FCNCA) announced on June 21, 2013, the adoption of a new stock trading plan, the 2013 Plan, effective July 1, 2013, and running through June 30, 2014. This plan replaces an expiring 2012 plan and is designed to allow the company to purchase its own shares under specific guidelines, adhering to Rule 10b5-1 of the Securities Exchange Act of 1934. This strategy is often used by companies to manage their stock repurchase programs in a structured and compliant manner.
Key Highlights
- 1Adoption of a new 2013 Stock Trading Plan, effective July 1, 2013, through June 30, 2014.
- 2The new plan replaces the existing 2012 stock trading plan which expires on June 30, 2013.
- 3The plan allows for the purchase of up to 100,000 shares of Class A common stock.
- 4The plan allows for the purchase of up to 25,000 shares of Class B common stock.
- 5Purchases will be conducted through Keefe, Bruyette & Woods, Inc. (KBW).
- 6The plan operates under the guidelines of Rule 10b5-1 of the Securities Exchange Act of 1934.
- 7The company retains the flexibility to suspend or discontinue share purchases at any time.
Frequently Asked Questions
The primary purpose of this 8-K filing is to announce the adoption of a new stock trading plan (the 2013 Plan) by First Citizens BancShares, Inc., which will govern the repurchase of the company's Class A and Class B common stock.
The 2013 Plan is scheduled to be effective from July 1, 2013, through June 30, 2014.
The company can repurchase up to 100,000 shares of its Class A common stock and up to 25,000 shares of its Class B common stock under the 2013 Plan.
No, the Board of Directors' approval of share purchases does not obligate the company to acquire any specific number of shares. The company can also suspend or discontinue purchases at any time.