FB Financial (FBK) Declares Share Buyback Plan Worth $100M
FB Financial Corp. FBK recently announced a share repurchase program. Per the plan, the company is authorized to buy back up to $100 million worth of shares. The plan is set to expire on Jan 31, 2026.
This new repurchase plan replaced the company’s prior authorization, which expired on Jan 31, 2024. During 2023, the company bought back 136,262 shares of its common stock. As of Dec 31, 2023, approximately $61 million worth of shares were remaining under the old repurchase plan.
As stated by Christopher T. Holmes, president and chief executive officer, “This repurchase authorization reflects the Company’s financial strength and strong profitability. Our management team is keenly focused on deploying capital to deliver superior returns and to create long-term value. This program provides another arrow in our quiver to achieve those objectives.”
Prior to this, FBK announced a repurchase program in 2022, preceded by a plan announced in 2021, worth $100 million each.
Apart from the repurchase programs, the company also pays out regular quarterly dividends. In January, FB Financial increased its dividend 13% to 17 cents from its prior payout. The dividend was paid out on Feb 27, 2024, to shareholders of record as of Feb 13, 2024.
Based on yesterday’s closing price of $37.25, the annualized dividend yield is currently pegged at 1.83%. Also, the firm has increased its dividend payout five times in the past five years and has a payout ratio of 20% of its earnings. Additionally, the company has five-year annualized dividend growth of 16.96%.
As of Dec 31, 2023, FB Financial had a total debt of $391 million, while its cash and cash equivalents were $811 million. The common equity tier 1 ratio as of Dec 31, 2023, was 12.2%, up from 11% as of Dec 31, 2022. Given its strong balance sheet and liquidity position, FB Financial is expected to keep boosting shareholder value through sustainable capital distribution activities.
Share Buyback Plans of Other Banks
In February, Axos Financial, Inc. AX announced an additional share repurchase program. Per the plan, the company is authorized to buy back up to $100 million worth of shares. There is no specific start or end date for the newly announced plan.
AX’s new share buyback plan supplements the existing repurchase program, which was approved on Apr 26, 2023. As part of the existing plan, it has almost $20 million worth of authorization remaining. AX repurchased $83.2 million worth of shares during the first half of fiscal 2024.
Last month, Zions Bancorporation ZION announced a new share repurchase plan for 2024. The plan authorizes the company to buy back up to $35 million worth of shares.
ZION has repurchased shares in each of the last three years, indicating an impressive capital distribution plan on the back of anticipated organic growth. The bank repurchased 0.9 million shares during the first nine months of 2023 but refrained from repurchasing any shares in the fourth quarter due to macroeconomic uncertainties.
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