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United Community (UCB) Hikes Dividend, Amends Repurchase Plan
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United Community Banks, Inc. (UCB - Free Report) increased its quarterly cash dividend by 4.3% to 24 cents per share. The dividend will be paid out on Oct 24 to its shareholders as of Sep 16, 2024. Further, the board authorized an increase in the existing share repurchase plan.
Before the recent dividend hike, UCB increased it by 4.5% to 23 cents per share in February 2023. The company has hiked its dividend seven times in the last five years, with the annualized dividend growth of 7.37%.
Currently, its payout ratio is 44% of earnings. This indicates that the company retains sufficient earnings for reinvestment and growth initiatives while delivering lucrative returns to its shareholders.
Considering UCB’s closing price of $29.51 on Aug 19, its dividend yield is currently 3.3%.
Concurrently, United Community amended its existing share repurchase program. The board increased the program to $100 million and extended the expiration of the authorization to Dec 31, 2025. In November 2023, the company’s board of directors re-authorized the repurchase program of up to $50 million worth of shares, which was set to expire on Dec 31, 2024.
Prior to this, UCB announced an increase in share buyback plan in November 2022, with a $50 million authorization.
United Community maintains a solid liquidity position. As of Jun 30, 2024, the company had a total debt worth $732.4 million (comprising long-term debt and accrued expenses and other liabilities), while cash and due from banks and interest-bearing deposits in banks were $562.9 million. Given a robust capital and liquidity position, the company is expected to sustain its capital distribution activities. Through this, United Community will keep enhancing the value of its shareholders.
Year to date, shares of UCB have gained 0.9% compared with the industry’s growth of 11.9%.
Earlier this month, Red River Bancshares Inc. (RRBI - Free Report) announced that it entered into a private stock repurchase agreement with two of its shareholders for $3 million as of Aug 8, 2024. This move lowered its repurchase program availability by the same amount.
Per the agreement, RRBI is set to repurchase 60,000 shares for $3 million, signifying a discount to the 10, 20 and 30-day volume weighted average price on Jul 31, 2024.
RRBI has amended its $5 million program, which was approved in December 2023, in light of this agreement. Upon the completion of this transaction, the company will have roughly $1.2 million worth of shares available under the authorization for repurchase.
Likewise, last month, FS Bancorp, Inc. (FSBW - Free Report) announced a quarterly dividend hike and an additional share repurchase program. The company declared a dividend of 27 cents per share, reflecting a 3.8% increase from the prior payout. The dividend will be paid out on Aug 21, 2024, to its shareholders of record as of Aug 7.
Along with the dividend hike, FSBW’s board authorized an additional share buyback program of up to $5 million worth of shares. The repurchase plan will remain active through Jul 31, 2025.
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United Community (UCB) Hikes Dividend, Amends Repurchase Plan
United Community Banks, Inc. (UCB - Free Report) increased its quarterly cash dividend by 4.3% to 24 cents per share. The dividend will be paid out on Oct 24 to its shareholders as of Sep 16, 2024. Further, the board authorized an increase in the existing share repurchase plan.
Before the recent dividend hike, UCB increased it by 4.5% to 23 cents per share in February 2023. The company has hiked its dividend seven times in the last five years, with the annualized dividend growth of 7.37%.
Currently, its payout ratio is 44% of earnings. This indicates that the company retains sufficient earnings for reinvestment and growth initiatives while delivering lucrative returns to its shareholders.
Considering UCB’s closing price of $29.51 on Aug 19, its dividend yield is currently 3.3%.
Concurrently, United Community amended its existing share repurchase program. The board increased the program to $100 million and extended the expiration of the authorization to Dec 31, 2025. In November 2023, the company’s board of directors re-authorized the repurchase program of up to $50 million worth of shares, which was set to expire on Dec 31, 2024.
Prior to this, UCB announced an increase in share buyback plan in November 2022, with a $50 million authorization.
United Community maintains a solid liquidity position. As of Jun 30, 2024, the company had a total debt worth $732.4 million (comprising long-term debt and accrued expenses and other liabilities), while cash and due from banks and interest-bearing deposits in banks were $562.9 million. Given a robust capital and liquidity position, the company is expected to sustain its capital distribution activities. Through this, United Community will keep enhancing the value of its shareholders.
Year to date, shares of UCB have gained 0.9% compared with the industry’s growth of 11.9%.
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Currently, United Community carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Banks Taking Similar Steps
Earlier this month, Red River Bancshares Inc. (RRBI - Free Report) announced that it entered into a private stock repurchase agreement with two of its shareholders for $3 million as of Aug 8, 2024. This move lowered its repurchase program availability by the same amount.
Per the agreement, RRBI is set to repurchase 60,000 shares for $3 million, signifying a discount to the 10, 20 and 30-day volume weighted average price on Jul 31, 2024.
RRBI has amended its $5 million program, which was approved in December 2023, in light of this agreement. Upon the completion of this transaction, the company will have roughly $1.2 million worth of shares available under the authorization for repurchase.
Likewise, last month, FS Bancorp, Inc. (FSBW - Free Report) announced a quarterly dividend hike and an additional share repurchase program. The company declared a dividend of 27 cents per share, reflecting a 3.8% increase from the prior payout. The dividend will be paid out on Aug 21, 2024, to its shareholders of record as of Aug 7.
Along with the dividend hike, FSBW’s board authorized an additional share buyback program of up to $5 million worth of shares. The repurchase plan will remain active through Jul 31, 2025.