Banking & Finance

Fed OK with Huntington Dividend, Stock Buy-Back

COLUMBUS, Ohio – The Federal Reserve has not objected to the plans Huntington Bancshares Inc. submitted in January to increase its cash dividend to seven cents per common share later this year and repurchase up to $366 million of its shares of common stock.

The holding company of Huntington National Bank announced the lack of objection after markets closed Wednesday afternoon. The holding company has $66 billion in assets.

The increase in the cash dividend of a penny a share could take effect the fourth quarter, Huntington said, and the repurchase of up to $366 million in common shares would be spread over five quarters, ending the second quarter of next year.

It’s up to the Huntington Board of Directors to act when they next meet April 21 on whether to increase the dividend and buy back common shares.

In a prepared statement, the chairman, president and CEO of Huntington, Stephen D. Steinour, said, “We are pleased to have earned the opportunity to increase our capital return to our shareholders for the second consecutive year under the CCAR process. The Federal Reserve’s nonobjection to our intended capital actions is indicative of our strong capital levels and financial performance. Our intended capital actions reflect our well-articulated capital priorities, with reinvesting excess capital in the organic growth of the business remaining top priority.”

SOURCE: Huntington Bancshares Inc.

Published by The Business Journal, Youngstown, Ohio.