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FB Financial (FBK) Rewards Investors With New Buyback Plan

FB Financial Corporation FBK recently announced a new stock repurchase program of up to $100 million of the outstanding common stock of the company. The repurchase plan expires on Jan 31, 2024.

The new repurchase authorization replaces the old plan that will expire on Mar 31, 2022. The previous plan, announced in February 2021, had authorized the buyback of $100 million of the company’s outstanding common stock. As of Dec 31, 2021, FB Financial repurchased 179,276 shares under the previous plan.

Share buybacks aside, the company has been regularly paying quarterly dividends. FBK hiked its quarterly dividend in January 2022 by 18% to 13 cents per share. Prior to this, the company increased its quarterly dividend by 22.3% to 11 cents per share and 12.5% to 9 cents per share in 2021 and 2020, respectively.

Based on last day’s closing price of $44.70, the company’s dividend yield currently stands at 1.16%. This yield is not only attractive for income investors, but also represents a steady income stream.

FB Financial’s strong financials and profitability are reflected in its steady capital deployment activities. Its management has been deploying the capital wisely to provide higher returns to investors, thus enhancing shareholder value.

Over the past three months, shares of FBK have gained 3.6%, outperforming 0.6% growth of the industry it belongs to.

Zacks Investment Research
Zacks Investment Research

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Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Other Banks That Took Similar Action

Southside Bancshares, Inc. (SBSI) announced a share repurchase plan on Mar 4, 2022. The board of directors approved the repurchase of up to 1 million of SBSI’s outstanding shares. The new share buyback authorization comes with no expiration date.

The new repurchase plan replaces the previous one. On Mar 12, 2020, Southside Bancshares’ board of directors increased the authorization under the previous stock repurchase plan of September 2019 by an additional one million shares to buy back up to two million shares. In 2021, all remaining authorized shares under the plan were repurchased at an average cost of $36.39 per share.

Popular, Inc. BPOP entered an accelerated share repurchase (“ASR”) agreement on Feb 28, 2022, to repurchase an aggregate of $400 million of the company’s common stock. This is part of the company’s plan to repurchase up to $500 million of its common stock as part of its planned capital actions for the ongoing year, as underlined thisJanuary.

Per the ASR agreement, on Mar 2, 2022, Popular was expected to have made an initial payment of $400 million to buy 3,483,942 shares of its common stock. This will be accounted as a treasury stock transaction.

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