M&T Bank Corporation Comments on Federal Reserve 2020 DFAST Results

BUFFALO, N.Y. — M&T Bank Corporation (“M&T”) (NYSE: MTB) offered comments today on the 2020 Dodd-Frank Act Stress Test (“DFAST”) disclosed by the Board of Governors of the Federal Reserve System (“Federal Reserve”).

Based on the results of the Federal Reserve’s stress test, M&T’s preliminary stress capital buffer (“SCB”) has been set at the 2.5 percent minimum, indicating that it will be subject to a 7.0 percent Common Equity Tier 1 ratio threshold under the SCB regulation which becomes effective October 1, 2020.  M&T’s Common Equity Tier 1 ratio of 9.19 percent at March 31, 2020 exceeded the threshold below which capital distributions could be limited by that regulation.

M&T’s current $1.10 quarterly common stock dividend falls within the guidelines for the third quarter announced by the Federal Reserve.  The dividend remains subject to declaration by M&T’s Board of Directors in the ordinary course of business.  Also, in accord with the Federal Reserve’s guidelines, M&T will not be repurchasing any shares of common stock during the third quarter.

M&T’s Executive Vice President and Chief Financial Officer, Darren King, noted, “M&T’s prudent approach to managing shareholders’ capital has enabled us to meet the credit needs of our customers and communities, while ensuring our safety and soundness during times of economic stress, such as the current pandemic.”

PSB Holdings, Inc. Announces Semi-Annual Cash Dividend of $0.21 per Share

WAUSAU, Wis. — PSB Holdings, Inc. (OTCQX: PSBQ), parent company of Peoples State Bank, is pleased to announce that on June 16, 2020, its Board of Directors declared a regular semi-annual cash dividend of $0.21 per share of PSB common stock.  The dividend is payable July 31, 2020 to shareholders of record as of July 10, 2020 and represents an increase of 5.0% over the $0.20 per share semi-annual cash dividend declared on June 18, 2019.  The current dividend continues a 56-year tradition of cash dividends to PSB shareholders, including 27 consecutive years of increased cash dividends declared per share.

PSB’s Board of Directors will also continue the suspension of its common stock repurchase program until further notice.  The timing and extent of future repurchases will be dependent upon market conditions and other corporate considerations.  Year-to-date through May 31, 2020, 18,434 shares of common stock have been repurchased under the program at an average cost of $25.95 per share.

PSB President and CEO Scott M. Cattanach said, “Given our current capital strength, based on our capital stress testing results and liquidity position in the year ahead, we are continuing and modestly increasing our normal semi-annual shareholder dividend while monitoring changing economic conditions.  Increased revenue from high volume in our residential mortgage banking division and loan origination income associated with the SBA Payroll Protection Program has allowed us to build loan loss reserves believed to be needed to offset potential future credit losses driven by the COVID-19 economic downturn.  We will continue to monitor our capital needs and earnings strength to re-evaluate our dividend policy later in 2020 as the current economic environment evolves.”

Farmers National Banc Corp. Declares Quarterly Cash Dividend

CANFIELD, Ohio — The Board of Directors of the Farmers National Banc Corp. (NASDAQ: FMNB) declared a quarterly cash dividend of $0.11 per share, representing a 22% increase over the same period last year. The common stock cash dividend had a record date of June 12, 2020 and is payable to shareholders on June 30, 2020.

Top 30 Most Active Great Lakes OTC Banks, May 2020

Courtesy of OTC Markets Group
  • NWIN | NorthWest Indiana Bancorp, the most active bank in May, underwent a conversion from an Indiana chartered savings bank to a commercial bank and declared a .31 dividend.
  • WBBW | Westbury Bancorp reported a 20% increase in Net Income YOY.
  • WEIN | West End Indiana Bancshares is undergoing an acquisition by Three Rivers Federal Credit Union

CNB Community Bancorp, Inc. Declares Quarterly Cash Dividend of $0.26 Per Share

HILLSDALE, Mich. — CNB Community Bancorp, Inc. (OTC:CNBB) announced that the Board of Directors has declared a quarterly cash dividend on the Company’s common stock in the amount of $0.26 per share an increase of $0.01 per share or 4.0% over Q2 of 2019, payable on July 17, 2020 to shareholders of record on June 30, 2020.

U.S. Bank Announces Quarterly Dividends

MINNEAPOLIS — The Board of Directors of U.S. Bancorp (NYSE: USB) has declared a regular quarterly dividend of $0.42 per common share, payable July 15, 2020, to stockholders of record at the close of business on June 30, 2020. At this quarterly dividend rate, the annual dividend is equivalent to $1.68 per common share.

Southern Michigan Bancorp, Inc. Declares Cash Dividend

COLDWATER, Mich., — The Board of Directors of Southern Michigan Bancorp, Inc. (OTC Pink: SOMC) declared a quarterly dividend of $0.23 per share on the outstanding shares of the corporation’s stock. The dividend is payable on July 24, 2020 to shareholders of record July 10, 2020. The annualized cash dividend of $0.92 per share represents a 3.28% dividend yield based on the current market price of $28.05 per share.

Horizon Bancorp, Inc. Announces Pricing of Subordinated Notes Offering

MICHIGAN CITY, Ind., — Horizon Bancorp, Inc. (“Horizon” or the “Company”) announced the pricing of its public offering of $60 million aggregate principal amount of 5.625% fixed-to-floating rate subordinated notes due 2030 (the “Subordinated Notes”). The Subordinated Notes will be issued to the public at 100% of par. The Subordinated Notes will have an initial fixed interest rate of 5.625% from the original issue date to, but excluding July 1, 2025 or the date of earlier redemption, payable semi-annually in arrears. From, and including, July 1, 2025 to but excluding the maturity date or date of earlier redemption, the interest rate on the Subordinated Notes will reset quarterly to a floating rate per annum equal to a benchmark rate, which is expected to be Three-Month Term SOFR (as defined in our previously filed prospectus supplement), plus 549 basis points, payable quarterly in arrears. The Subordinated Notes matured on July 1, 2030.

The Company intends to use the net proceeds from the offering, after deducting underwriting discounts, commissions and estimated transaction expenses, for general corporate purposes. The closing of the offering of the Subordinated Notes is subject to customary closing conditions and is expected to close on June 24, 2020. The Subordinated Notes are intended to qualify as Tier 2 capital for regulatory purposes.

Keefe, Bruyette & Woods, A Stifel Company, is acting as sole book-running manager for the offering. The Subordinated Notes are being offered pursuant to a prospectus supplement and an accompanying base prospectus describing the terms of the offering. Horizon filed a registration statement (File No. 333-222624), and a preliminary prospectus supplement to the prospectus contained in the registration statement with the U.S. Securities and Exchange Commission (“SEC”) for the Subordinated Notes to which this communication relates and will file a final prospectus supplement relating to the Subordinated Notes.

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