BIRMINGHAM, Ala. — The Federal Reserve has indicated to Regions Financial Corporation that it does not object to the company’s capital plan and proposed capital actions covering the period from April 1, 2014, to March 31, 2015.
The capital plan was submitted to the Federal Reserve on Jan. 6, as part of the Comprehensive Capital Analysis and Review (CCAR).
Actions that Regions may undertake as outlined in its capital plan include increasing the quarterly common dividend to $0.05 per share and potentially the repurchase of up to $350 million in common shares. These proposed capital actions are subject to approval by the Regions board of directors. The timing and amount of any repurchases will, consistent with Regions’ capital plan, be subject to the completion of certain other capital actions, as well as other factors, such as general market conditions.
Grayson Hall, Regions’ chairman, president and CEO, said, “We believe this capital plan strikes an appropriate balance between preserving our ability to deploy capital in pursuit of organic loan growth and returning capital to shareholders, consistent with our strategic priorities.”
Regions’ capital planning process is designed to ensure the efficient use of capital while maintaining a long-term approach to capital allocation and distribution. The company’s top priorities for capital deployment are reinvesting in the business through organic loan growth, increasing the company’s quarterly common dividend, and appropriately returning capital to shareholders through share repurchases. Other considerations include the pursuit of strategic opportunities consistent with the company’s risk tolerance.
BEFORE YOU GO…
… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.
If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.Click for more info