Columbia Banking System announced significant dividend increase last quarter, and these 9 other financial services companies announced similar plans
Dividends
July 24, 2023
Columbia Banking System, Inc. recently approved a significant dividend increase, with a quarterly cash dividend of $0.36 per common share. This represents a notable 20% increase from Columbia Banking System, Inc.'s previous dividend declaration before the merger with Umpqua on February 28, 2023. The dividend payout is scheduled for June 15, 2023, and will be distributed to shareholders of record as of May 31, 2023.
The decision to increase the dividend reflects the robust strength of Columbia Banking System, Inc. resulting from the successful merger between Columbia and Umpqua. Clint Stein, President & CEO of Columbia, emphasized the company's confidence in its operational fundamentals, fueled by expected cost and revenue synergies from the merger. With a diversified balance sheet and flexible capital deployment opportunities, Columbia Banking System, Inc. is well-positioned for future growth.
Norwood Financial Corp. operates as a bank holding company. The company is headquartered in Honesdale, Pennsylvania and currently employs 203 full-time employees. The firm operates through its subsidiary, Wayne Bank (the Bank). The Bank is a chartered bank and trust company. The Bank is an independent community bank that operates over five offices in the Wayne County, approximately three offices in Pike County, four offices in Monroe County and over three offices in Lackawanna County. The Bank offers various personal and business credit services, trust and investment products, and real estate settlement services to the consumers, businesses, nonprofit organizations and municipalities in each of the communities that the Bank serves. The Bank primarily serves the Pennsylvania counties of Wayne, Pike, Monroe and Lackawanna, as well as the Susquehanna County. In addition, the Bank operates approximately 20 automated teller machines. The Bank operates a Wealth Management/Trust Department, which provides estate planning, investment management and financial planning to customers.
Norwood Financial Corp (NASDAQ Global Market - NWFL) and its subsidiary Wayne Bank recently announced an exciting development for their shareholders. James O. Donnelly, the President and Chief Executive Officer, revealed that the Board of Directors declared a generous cash dividend of $.29 per share. This dividend is set to be payable on August 1, 2023, to shareholders who were recorded as of July 14, 2023.
The remarkable aspect of this dividend announcement is that it equals the per-share dividend declared in the first quarter of 2023. Moreover, it represents an impressive 3.6% increase compared to the cash dividend declared in the second quarter of 2022. Mr. Donnelly expressed the Board's enthusiasm in providing shareholders with this quarterly dividend, attributing it to Norwood Financial Corp.'s financial strength and robust capital position, which have significantly contributed to their solid performance.
Norwood Financial Corp. operates as a bank holding company. The company is headquartered in Honesdale, Pennsylvania and currently employs 203 full-time employees. The firm operates through its subsidiary, Wayne Bank (the Bank). The Bank is a chartered bank and trust company. The Bank is an independent community bank that operates over five offices in the Wayne County, approximately three offices in Pike County, four offices in Monroe County and over three offices in Lackawanna County. The Bank offers various personal and business credit services, trust and investment products, and real estate settlement services to the consumers, businesses, nonprofit organizations and municipalities in each of the communities that the Bank serves. The Bank primarily serves the Pennsylvania counties of Wayne, Pike, Monroe and Lackawanna, as well as the Susquehanna County. In addition, the Bank operates approximately 20 automated teller machines. The Bank operates a Wealth Management/Trust Department, which provides estate planning, investment management and financial planning to customers.
FirstCash Holdings, Inc. ("FirstCash" or the "Company"), the leading international operator of retail pawn stores and retail point-of-sale payment solutions, has recently announced strong operating results for the first quarter of 2023. The Company reported double-digit consolidated revenue growth over the previous year, along with record first-quarter earnings per share. This exceptional performance has led the Board of Directors to increase FirstCash, Inc.'s quarterly cash dividend by $0.33 per share, to be paid in May 2023.
The impressive results were driven by several factors. FirstCash, Inc.'s core pawn operations in the U.S. and Latin America experienced substantial growth, with a 15% increase in pawn fee revenue. Additionally, the retail point-of-sale payment solutions segment (AFF) recorded strong results due to improved transaction volumes and lower net charge-off rates compared to the previous year. This positive outlook is supported by FirstCash, Inc.'s plan to continue investing in new pawn locations and expanding its presence in Latin America.
FirstCash, Inc. is a retail pawn store operator with locations in the United States and Latin America. They provide pawn loans on various personal items such as jewelry, electronics, and musical instruments, and sell merchandise acquired through collateral forfeitures and direct customer purchases. Additionally, the Company is involved in melting scrap jewelry and trading gold, silver, and diamonds. They also offer credit services, small consumer loans, and check cashing services. Founded in 1988 and headquartered in Fort Worth, Texas, FirstCash, Inc. operates over 3,000 stores across the Americas.
P10, Inc. (PX), a prominent private markets solutions provider, recently announced its financial results for the first quarter of 2023. Despite facing a challenging macroeconomic environment, the company displayed robust performance with noteworthy highlights. Fee Paying Assets Under Management saw an impressive 23% increase year over year, reaching $21.6 billion. Furthermore, revenue soared by 32% year over year, totaling $57.3 million, while Adjusted Net Income experienced a substantial 14% growth year over year, amounting to $25.5 million.
In light of these promising financial results and P10, Inc.'s belief in its continued growth potential, the Board of Directors decided to increase the annual dividend by 8%, elevating it from $.12 per share to $.13 per share. The quarterly cash dividend of $.0325 per share of Class A and Class B common stock will be paid on June 20, 2023, to shareholders of record as of May 30, 2023.
The dividend increase reflects P10, Inc.'s confidence in its future prospects, supported by double-digit growth in revenue, Adjusted EBITDA, and Adjusted Net Income. P10's Chairman and Co-CEO, Robert Alpert, and Co-CEO Clark Webb expressed their optimism in the Company's position for sustained growth, backed by a diverse range of complementary and expanding businesses.
P10, Inc., together with its subsidiaries, provides private market solutions for the alternative asset management industry in the United States. The Company offers private equity, venture capital, private credit, impact investing, and private credit services, as well as primary investment funds, secondary investment, and direct and co-investments services. It also provides tax credit transaction and consulting services. The Company was incorporated in 1992 and is headquartered in Dallas, Texas.
The Travelers Companies, Inc. recently reported strong financial results for the first quarter of 2023, with a net income of $975 million and a core income of $970 million. The Company's board of directors responded to these positive results by declaring an 8% increase in The Travelers Companies, Inc.'s regular quarterly cash dividend, raising it to $1.00 per share. Additionally, they authorized an additional $5.0 billion of share repurchases.
The dividend increase and share repurchases were made possible by The Travelers Companies, Inc.'s excellent performance in the quarter, driven by factors such as record net written premiums of $9.396 billion, up 12% compared to the prior year quarter, with growth in all three segments. The underlying underwriting gain was also higher, excluding net prior year reserve development and catastrophe losses, and there was a one-time tax benefit of $211 million included in the income tax line.
Moreover, Travelers reported a return on equity of 17.5% and a core return on equity of 14.5%, showcasing the Company's financial strength and profitability. With a strong balance sheet and confidence in their business outlook, The Travelers Companies, Inc. is positioning itself to continue creating shareholder value over time. These positive developments are expected to further bolster the Company's stock and dividend prospects, making it an attractive option for investors seeking stable returns.
The Travelers Companies, Inc. is a leading insurance provider offering a diverse range of commercial and personal property, as well as casualty insurance products and services. With three operating segments - Business Insurance, Bond & Specialty Insurance, and Personal Insurance - the Company caters to businesses, government units, associations, and individuals both in the United States and internationally. Their offerings include workers' compensation, automobile and property insurance, liability coverage, professional indemnity, and various other specialty insurance products. Established in 1853 and headquartered in New York, the Company operates through brokers, agents, and specialized retail agents, ensuring widespread distribution of its products.
Stock Yards Bancorp, Inc. (SYBT), the parent company of Stock Yards Bank & Trust Company, has recently announced a positive development for its shareholders. The Company increased its quarterly cash dividend to $0.29 per common share, maintaining the prior quarter's amount. This decision reflects the Company's strong financial performance and confidence in its future prospects.
The dividend increase could be attributed to several factors. Firstly, Stock Yards Bancorp, Inc.'s robust financial position and stable earnings growth may have provided the necessary foundation for the dividend raise. Additionally, the Company's extension of the Stock Repurchase Plan, allowing the repurchase of one million shares until May 22, 2025, signals its commitment to returning value to shareholders through various means. With approximately 741,000 shares still eligible for repurchase, the Company's buyback program could further support the stock's price and investor sentiment.
Furthermore, the implementation of Rule 10b5-1 in the repurchase process allows the Company to buy its shares during potentially restricted trading periods, enhancing flexibility and strategic execution. By leveraging a broker to carry out the repurchases, Stock Yards Bancorp, Inc. ensures a transparent and compliant approach, maintaining confidence in its actions.
Stock Yards Bancorp, Inc. operates as the holding company for Stock Yards Bank & Trust Company that provides commercial and personal banking services in Louisville, Indianapolis, and Cincinnati. Its deposit products include demand deposits, savings deposits, money market deposits, and time deposits. The Company's loan portfolio comprises commercial and industrial, construction and development, undeveloped land, real estate mortgage, and consumer loans. In addition, it offers securities brokerage services through an arrangement with a third party broker-dealer; and financial planning, investment management, retirement planning, trust, and estate services. As of December 31, 2019, the Company had 42 full service banking locations, including 32 in the Louisville metropolitan statistical area (MSA), 5 in Indianapolis MSA, and 5 in Cincinnati MSA. Stock Yards Bancorp, Inc. was founded in 1904 and is headquartered in Louisville, Kentucky.
PennantPark Investment Corporation ("PNNT") recently announced its financial results for the second quarter ended March 31, 2023. The Company reported total assets of $1,216.9 million and net assets of $495.7 million, resulting in a net asset value per share of $7.60.
The Company increased its quarterly dividend to $0.20 per share, a growth of 8.1% from the previous distribution. This increase is well-covered by the Company's net investment income. The decision to increase the dividend reflects the positive performance of its investment portfolio, which consisted of various debt and equity investments in different companies.
Recent news highlights the settlement of a defamation lawsuit filed by Dominion Voting Systems, a portfolio company of PNNT. As part of the settlement, Fox News Network agreed to pay Dominion $787.5 million. Dominion intends to distribute a substantial amount of the settlement proceeds to its equity holders, including PennantPark Investment Corporation, which is estimated to receive approximately $12 million.
PennantPark Investment Corporation is a business development company. It specializes in direct and mezzanine investments in middle market companies. It invests in the form of mezzanine debt, senior secured loans, and equity investments. The fund typically invests in building and real estate, hotels and gaming, electronics, healthcare, education and childcare, financial services, printing and publishing, consumer products, business services, energy and utilities, distribution, oil and gas, media, environmental services, aerospace and defense, manufacturing industries and retail. It invests in equity securities and debt transactions through preferred stock, common stock, warrants, options, subordinated loans, mezzanine loans, and senior secured loans. It seeks to invest in companies based in the United States. The fund seeks to invest between $10 million and $50 million in its portfolio companies. Its mezzanine loans, senior secured loans, and other investments in its portfolio companies are between $15 million and $50 million. The fund may also make non-control equity and debt investments.
Trinity Capital Inc. (TRIN), a leading provider of diversified financial solutions to growth-stage companies, recently announced an increase in its dividend, reflecting the Company's commitment to distributing value to its shareholders. The Board of Directors declared a cash dividend of $0.53 per share for the quarter ending June 30, 2023, representing a 2.1% increase over Trinity Capital Inc.'s regular dividend from the prior quarter. This dividend comprises a regular quarterly dividend of $0.48 per share and a supplemental cash dividend of $0.05 per share.
The decision to increase the dividend was influenced by the Company's aim to comply with regulated investment company tax requirements for distributing its undistributed taxable income from fiscal 2023. The supplemental dividend of $0.05 per share will be paid out of Trinity Capital Inc.'s undistributed taxable income as of December 31, 2022. The Company strives to distribute four quarterly dividends that amount to approximately 90% to 100% of its taxable quarterly income or potential annual income, ensuring it qualifies for tax treatment as a regulated investment company under the Internal Revenue Code of 1986.
Investors can expect dividends to be paid from taxable earnings, which may include a return of capital and/or capital gains. Detailed information on the specific tax characteristics of the dividends will be reported to stockholders on Form 1099-DIV after the end of the calendar year and in the Company's periodic reports filed with the Securities and Exchange Commission.
Trinity Capital Inc. is a venture capital firm specializing in venture debt to growth stage companies looking for loans and/or equipment financing. Trinity Capital Inc. was founded in 2019 is based in Chandler, Arizona.
The First Bancshares, Inc. ("FBMS" or "the Company"), the holding company for The First Bank, has recently reported strong financial results for the quarter ended March 31, 2023. The Company's net income available to common shareholders remained steady at $16.3 million for the quarter, but excluding one-time items related to acquisitions, its net earnings increased significantly by $9.9 million or 57.8% to reach $27.1 million.
The increase in net earnings can be attributed to The First Bancshares, Inc.'s recent acquisition of Heritage Southeast Bancorporation, Inc., the parent company of Heritage Southeast Bank based in Georgia. This acquisition provided the Company with a stronger presence in Southern Georgia and access to fast-growing markets in Atlanta, Savannah, Georgia, and Jacksonville, Florida. Heritage Bank added approximately $1.6 billion of assets and 24 locations to the Company.
Moreover, the Company's strategic shift towards earning assets away from the bond portfolio and into new loans, along with an 18 basis point improvement in their core net interest margin, contributed to an impressive annualized return on average assets (ROAA) of 1.36% and a return on average tangible common equity (ROTCE) of 20.13% during the first quarter.
Given the Company's strong financial performance and successful expansion, the Board of Directors declared a 5% increase in The First Bancshares, Inc.'s cash dividend to $0.22 per share, demonstrating the Company's commitment to rewarding its shareholders and confidence in its future growth prospects.
The First Bancshares, Inc. (Mississippi) operates as a bank holding company. The Company is headquartered in Hattiesburg, Mississippi and currently employs 582 full-time employees. The firm and The First Bank engage in a general commercial and retail banking business for small to medium-sized businesses, professional concerns and individuals. The Bank provides a range of banking services across Mississippi, Louisiana, Alabama, Florida and Georgia. The Bank offers a range of commercial and personal loans. Commercial loans include both secured and unsecured loans for working capital (including loans secured by inventory and accounts receivable), business expansion (including acquisition of real estate and improvements), and purchase of equipment and machinery. The Bank offers a range of deposit services, including noninterest-bearing accounts, negotiable order of withdrawal (NOW) accounts, money market accounts, savings accounts and time deposits.
Houlihan Lokey, Inc. recently released its financial results for the fiscal year and fourth quarter ended March 31, 2023. The Company reported a decline in revenues for both the fiscal year and the fourth quarter, with revenues decreasing by 20% and 6%, respectively, compared to the previous year.
Despite the challenging market environment, the Company's CEO, Scott Beiser, expressed confidence in their diversified business model, which he believes will continue to generate solid profitability. He highlighted the strong new business activity in their Corporate Finance division and the positive outlook for their Financial Restructuring and Financial and Valuation Advisory businesses.
Despite the revenue decline, the Company has shown its commitment to shareholders by increasing its dividend. The Board of Directors declared a regular quarterly cash dividend of $0.55 per share of Class A and Class B common stock, which indicates the Company's financial stability and confidence in its future prospects.
Houlihan Lokey, Inc. is a global investment banking company specializing in merger and acquisition (M&A), capital market, financial restructuring, and valuation advisory services. With three core segments - Corporate Finance, Financial Restructuring, and Financial Advisory Services - the firm offers a wide range of financial solutions to public and private institutions, including buy-side and sell-side transactions, debt and equity offerings, initial public offerings (IPOs), and more. Founded in 1972 and headquartered in Los Angeles, California, Houlihan Lokey serves corporations, financial sponsors, and government agencies worldwide.
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