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F.N.B. Corporation Approves Share-Repurchase Plan of $150M

Zacks Equity Research

F.N.B. Corporation FNB continues to reward its shareholders on the back of impressive capital-deployment plans. The company’s board of directors has authorized a share-repurchase program of up to $150 million.

Shares may be repurchased in open market at the current market price or through privately-negotiated transactions. The authorization is expected to happen from time to time through the end of 2020.

Vincent J. Delie, Jr., chairman, president and CEO of F.N.B. Corporation stated, “The Board of Director’s unanimous approval of this stock repurchase program demonstrates confidence in FNB’s business model, as well as our increased capital generation capabilities.”

Moreover, the company has been paying quarterly cash dividends consistently. Notably, 2019 is the 45th consecutive year in which the bank has paid cash dividends to shareholders since its IPO. However, following the 2008 financial crisis, F.N.B. Corporation slashed its quarterly dividend by 50% and has maintained the same 12 cents per share, to date. Based on last day’s closing price of $11.53 per share, the company has a dividend yield of 4.16%, currently.

Backed by a healthy liquidity position, F.N.B. Corporation is making continued efforts to enhance shareholders’ value through share buybacks and regular dividend payments.

Further, the company has been growing inorganically. In 2017, the company acquired Raleigh, NC-based Yadkin Financial Corporation, which helped it spread into several Southeastern markets in the United States.

Also, the company’s robust capital-deployment plans seem sustainable, backed by a strong balance-sheet position.

Shares of F.N.B. Corporation have gained 17.2% so far this year, outperforming the industry’s rise of 16.5%.

Zacks Rank and Key Picks

At present, F.N.B. Corporation carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Several finance companies are undertaking efforts to reward their shareholders. In the recent past, a few of these, including Virtus Investment Partners, Inc. VRTS, Ameris Bancorp ABCB and Victory Capital Holdings, Inc. VCTR have announced share-repurchase plans.

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