8-K: Fulton Financial Corporation Announces Increased Dividend and $125 Million Share Repurchase Program

Fulton Financial Corporation has declared an increased quarterly dividend on its common stock, a dividend on its preferred stock, and a $125 million share repurchase program.

Summary

• Fulton Financial Corporation's Board of Directors has declared a quarterly cash dividend of 18 cents per share on its common stock, payable on January 15, 2025, to shareholders of record as of December 31, 2024.
• This dividend represents a one cent per share increase from the previous quarter.
• A quarterly dividend of $12.81 per share (equivalent to $0.32025 per depositary share) was also declared on its Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A, also payable on January 15, 2025, to shareholders of record as of December 31, 2024.
• The dividend covers the period from October 15, 2024, to January 15, 2025.
• The Board has approved a $125 million share repurchase program, commencing on January 1, 2025, and expiring on December 31, 2025.
• Up to $25 million of the repurchase program may be used to repurchase shares of Fulton's Preferred Stock.
• The repurchase program allows for purchases in open market transactions, privately negotiated transactions, or by other means in accordance with federal securities laws.
• The program may be discontinued at any time at the discretion of the Board and does not commit Fulton to repurchase any specific amount of securities.

Sentiment

Score: 8

Explanation: The announcement is positive, with increased dividends and a share repurchase program, indicating financial strength and a commitment to shareholders. The lack of negative information further supports a high sentiment score.

Positives

• The increase in the common stock dividend demonstrates the company's strength and commitment to returning value to shareholders.
• The share repurchase program indicates management's confidence in the company's financial position and future prospects.
• The dividend increase is nearly 6 percent, which is a significant increase.

Risks

• The share repurchase program may be discontinued at any time at the discretion of the Board.
• The repurchase program does not commit Fulton to repurchase any specific amount of securities.
• Purchases under the repurchase program will depend on various factors, including Fulton's capital position, liquidity, financial performance, and market conditions.

Future Outlook

The company intends to continue returning value to shareholders through dividends and share repurchases, subject to market conditions and the Board's discretion.

Management Comments

• The Board's decision to increase our common dividend nearly 6 percent demonstrates our continued strength, momentum and commitment to returning value to our shareholders, said Chairman and CEO Curt Myers.

Industry Context

This announcement is consistent with trends in the financial sector where companies are returning capital to shareholders through dividends and share repurchases, reflecting a positive outlook on their financial health and future prospects.

Comparison to Industry Standards

• Many financial institutions use share repurchase programs to manage capital and enhance shareholder value, similar to Fulton's approach.
• The dividend increase is a positive signal, as many banks are under pressure to maintain or increase dividends to attract investors.
• Companies like PNC Financial Services and M&T Bank also have active share repurchase programs and dividend policies, making Fulton's actions comparable to its peers.

Stakeholder Impact

• Shareholders will benefit from increased dividends and potential share price appreciation due to the repurchase program.
• Employees may see this as a sign of the company's stability and positive outlook.
• Customers and suppliers may view this as a sign of the company's financial health.

Next Steps

• The share repurchase program will commence on January 1, 2025.
• The declared dividends will be paid on January 15, 2025.

Key Dates

Keywords

dividends, share repurchase, common stock, preferred stock, capital allocation, financial performance, Fulton Financial Corporation