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TriCo Bancshares (TCBK) Rewards Investors With New Capital Plans

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Zacks Equity Research
·3 min read
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TriCo Bancshares TCBK is rewarding shareholders with enhanced capital-deployment activities. The company has announced a new share-repurchase program and a hike in its quarterly cash dividend.

The company’s boards of directors have authorized the repurchase of 2 million shares. Notably, TriCo Bancshares will not initiate repurchasing shares until management determines the actual timing of any share repurchase. Thus, the total value of the shares to be repurchased under the plan is subject to change. With a closing price of stock price $43.07 on Feb 26, buy back of all shares under the 2021 share-repurchase program will roughly be worth $86.1 million.

The new buyback plan replaces the 2019 plan, which has been terminated. TriCo Bancshares had repurchased nearly 859,000 shares for $26.3 million last year.

Further, as mentioned above, the company announced a quarterly cash dividend of 25 cents per share, marking a rise of 13.6% from the prior payout. The dividend will be paid on Mar 26, to holders of record as on Mar 12, 2021. Considering last day’s closing price of $44.52, the dividend yield currently stands at 2.2%. This yield is quite attractive to income investors.

TriCo Bancshares has been increasing its quarterly dividend on a regular basis. Prior to the current hike, the bank had announced a 15.8% rise to 22 cents per share in its quarterly dividend in August 2019.

Peter Wiese, EVP and chief financial officer of TriCo Bancshares said, "The Company has a 28 year long history of rewarding shareholders with cash dividends and we are pleased to announce that this marks our 113th consecutive quarterly payment. While the Company, like many other financial companies in recent weeks, has experienced considerable growth in its share price and therefore has reduced the volume of actual share repurchases, this expansion of our share repurchase program provides us with an on-going capital management tool."

Over the past six months, shares of TriCo Bancshares have surged 60.4%, underperforming the industry’s rally of 66.5%.

Trico Bancshares currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Finance Companies That Took Similar Actions

Several finance companies have announced new share-repurchase programs in recent months. Some of these are Ally Financial ALLY, Chemung Financial CHMG and M&T Bank Corporation MTB.

Ally Financial’s board of directors has authorized the repurchase of up to $1.60 billion worth of shares this year. Chemung Financial’s board has authorized a buyback plan of up to 250,000 shares. Also, the board of directors of M&T Bank has authorized a stock-repurchase program of up to $800 million of shares of common stock.

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M&T Bank Corporation (MTB) : Free Stock Analysis Report

TriCo Bancshares (TCBK) : Free Stock Analysis Report

Ally Financial Inc. (ALLY) : Free Stock Analysis Report

Chemung Financial Corp (CHMG) : Free Stock Analysis Report

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Zacks Investment Research