Susquehanna Bancshares (SUSQ) Cuts Qtr. Dividend by 80% to $0.05/Share, Yielding 2.36%
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Susquehanna Bancshares, Inc. (Nasdaq: SUSQ) today announced that its Board has approved an 80% reduction in its quarterly dividend from $0.26 to $0.05 per common share, payable on May 20, 2009 to shareholders of record May 1, 2009.
“Our board made the decision to reduce our quarterly dividend after long and careful consideration,” said William J. Reuter, Chairman and Chief Executive Officer. “Susquehanna is well capitalized, and we believe this is a prudent step to ensure that we maintain our strong position during the current economic downturn. Reducing the quarterly dividend from $0.26 to $0.05 will enable us to retain $18 million in additional capital quarterly. This capital will enhance our capacity to grow our loan portfolio and respond to the needs of qualified borrowers in our communities. In addition, it will provide a stronger capital cushion in light of continuing uncertainty in the economy.”
“We recognize the importance of dividends to our shareholders, as demonstrated by the fact that we increased our dividend each year from Susquehanna Bancshares’ founding in 1982 through 2007,” Reuter continued. “With this track record of annual increases, the decision to decrease the dividend was not an easy one. However, it is consistent with our objective to manage the company in the best long-term interests of our shareholders.”
“Our board will regularly review the dividend, with the expectation that it can return to a more normalized rate when the economy stabilizes,” Reuter said.
Based on yesterday's closing price of $8.42, the reduced dividend will yield 2.36%, down from 12.22% previously.
“Our board made the decision to reduce our quarterly dividend after long and careful consideration,” said William J. Reuter, Chairman and Chief Executive Officer. “Susquehanna is well capitalized, and we believe this is a prudent step to ensure that we maintain our strong position during the current economic downturn. Reducing the quarterly dividend from $0.26 to $0.05 will enable us to retain $18 million in additional capital quarterly. This capital will enhance our capacity to grow our loan portfolio and respond to the needs of qualified borrowers in our communities. In addition, it will provide a stronger capital cushion in light of continuing uncertainty in the economy.”
“We recognize the importance of dividends to our shareholders, as demonstrated by the fact that we increased our dividend each year from Susquehanna Bancshares’ founding in 1982 through 2007,” Reuter continued. “With this track record of annual increases, the decision to decrease the dividend was not an easy one. However, it is consistent with our objective to manage the company in the best long-term interests of our shareholders.”
“Our board will regularly review the dividend, with the expectation that it can return to a more normalized rate when the economy stabilizes,” Reuter said.
Based on yesterday's closing price of $8.42, the reduced dividend will yield 2.36%, down from 12.22% previously.
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