Banks Announce Capital Plans

The nation's largest banks announced their capital plans Thursday evening following Federal Reserve approval. The Fed approved 14 of 18 capital plans, denied 2 and wanted 2 others to resubmit.

The Federal Reserve did not object to the capital plans for The Goldman Sachs Group (NYSE: GS), Inc., and JP Morgan Chase & Co. (NYSE: JPM), but required the two institutions to submit new capital plans by the end of the third quarter to address weaknesses in their capital planning processes. The Federal Reserve objected to the capital plans of Ally Financial, Inc., and BB&T Corporation (NYSE: BBT).

Below is a run-down:

American Express Company (NYSE: AXP) said today that the Board of Governors of the Federal Reserve System did not object to its 2013 capital plan to increase the Company’s quarterly dividend to 23 cents per share, to repurchase up to $3.2 billion of common shares during the last three quarters of 2013 and to repurchase up to an additional $1.0 billion in the first quarter of 2014. The Company also said that it expects to repurchase approximately $800 million of common shares during the first quarter of 2013 under the Company’s 2012 capital plan. The dividend increase would amount to 3 cents per share, or 15 percent.

Bank of America Corp. (NYSE: BAC) authorized the repurchase of up to $5.0 billion of common stock and the redemption of approximately $5.5 billion in preferred stock. The company’s 2013 capital plan did not include a request to increase the quarterly common stock dividend rate of $0.01 per share.

BNY Mellon (NYSE: BK) announced that the Federal Reserve did not object to its 2013 capital plan submitted in connection with its Comprehensive Capital Analysis and Review. As a result, the company's board of directors has approved the repurchase of up to $1.35 billion of its common stock, beginning in the second quarter of 2013 and continuing through the first quarter of 2014. The 2013 capital plan also included a 15 percent increase to BNY Mellon's quarterly common stock dividend in the second quarter of 2013, which the board of directors is expected to consider at its April meeting.

Capital One Financial Corp. (NYSE: COF) announced that the Federal Reserve has completed its 2013 Comprehensive Capital Analysis and Review ("CCAR") and did not object to Capital One's proposed capital distributions submitted on January 7, 2013 under CCAR. Capital One's submission included a planned increase in the quarterly dividend on its common stock from the current level of $0.05 per share to $0.30 per share. Consistent with the capital plan, Capital One expects to declare a quarterly dividend of $0.30 per share for the first quarter of 2013, subject to final approval of the Board of Directors at its scheduled meeting in May.

Citigroup (NYSE: C) announced that the Federal Reserve Board (FRB) has advised Citi that it has no objection to the planned capital actions requested by Citi as part of the 2013 Comprehensive Capital Analysis and Review (CCAR). The planned capital actions include a $1.2 billion common stock buyback program through the first quarter of 2014 and the maintenance of current common stock dividends ($0.01 per share per quarter). Any repurchases of common stock and common stock dividends remain subject to approval by Citigroup’s Board of Directors.

Comerica Incorporated (NYSE: CMA) today announced that the Federal Reserve had completed its 2013 Capital Plan review and that it did not object to the Comerica capital plan and capital distributions contemplated in the plan. The plan provides for up to $288 million in equity repurchases for the four-quarter period commencing in the second quarter 2013 and ending in the first quarter 2014. In addition, Comerica's Capital Plan includes the authority to redeem $25 million of subordinated notes due 2018 when callable later this year.

Fifth Third Bancorp (NASDAQ: FITB) announced today that the Board of Governors of the Federal Reserve System (“the Federal Reserve”) did not object to the proposed potential capital actions. Company has the potential increase in the quarterly common stock dividend, which will be considered by the Board at its scheduled quarterly meeting in June. The potential repurchase of common shares in an amount up to $984 million, including any shares issued in a Series G preferred stock conversion (up to $550 million in value).

Huntington Bancshares Incorporated (NASDAQ: HBAN) was notified by the Federal Reserve that it had no objection to Huntington's proposed capital actions included in Huntington's capital plan submitted to the Federal Reserve in January of this year. These actions included a 25% increase in the dividend per common share to $0.05, starting in the second quarter of 2013, and the potential repurchase of up to $227 million of common stock through the first quarter of 2014. Huntington's Board of Directors is expected to consider the next quarterly dividend and share repurchase program at its April 16, 2013 meeting.

KeyCorp (NYSE: KEY) has authorized a share repurchase program of up to $426 million of its common stock. KeyCorp's Board will consider a dividend increase at its regular May meeting. Key's capital plan, which was approved by its Board of Directors prior to submission, requested authority to increase its quarterly common stock dividend from $0.05 per share up to $0.055 per share, effective in the second quarter of 2013. Key's Board of Directors will consider the potential dividend increase at its regular May meeting.

Morgan Stanley (NYSE: MS) announced that it received no objection from the Board of Governors of the Federal Reserve System (the “Federal Reserve”) to the Company’s 2013 capital plan that was submitted to the Federal Reserve on January 7, 2013 (the “Capital Plan”), as previously disclosed. The Capital Plan includes the Company’s potential cash acquisition of the remaining 35% interest in Morgan Stanley Smith Barney Holdings LLC (the “Wealth Management JV”), the completion of which is subject to applicable regulatory approvals.

PNC Financial Services Group, Inc. (NYSE: PNC) announced today that the Board of Governors of the Federal Reserve System accepted its capital plan and did not object to its proposed capital actions, which included a recommendation to increase the quarterly common stock dividend in the second quarter of 2013. A share repurchase program for 2013 was not included in the capital plan primarily as a result of PNC's 2012 acquisition of RBC Bank (USA) and expansion into Southeastern markets

As part of the Comprehensive Capital Analysis and Review (CCAR), on January 7, 2013, Regions Financial Corporation (NYSE: RF) submitted to the Federal Reserve a capital plan approved by its board of directors covering the period from April 1, 2013 to March 31, 2014. The Federal Reserve indicated to Regions on March 14, 2013 that it does not object to the company’s capital plan and proposed capital actions that include increasing the company’s quarterly common dividend to $0.03 per share, as well as the repurchase over this period of common shares in an amount up to $350 million.

State Street Corp. (NYSE: STT) to buy back shares up to $2.1 billion.

SunTrust Banks, Inc. (NYSE: STI) today announced that the Federal Reserve has completed its review of the Company's capital plan submitted in connection with the 2013 Comprehensive Capital Analysis and Review ("CCAR") and has no objections to the planned capital actions. The capital actions include: An increase in the quarterly common stock dividend from $0.05 to $0.10, beginning in the second quarter of 2013 and the repurchase of up to $200 million of the Company's outstanding common stock to be completed between the second quarter of 2013 and the first quarter of 2014.

UB Bancorp (NYSE: USB) expects to recommend a second quarter dividend of $0.23 per common share, an 18 percent increase over the current dividend rate. At this quarterly dividend rate, the annual dividend will be equivalent to $0.92 per common share. Consistent with the Company’s change in the timing of the annual dividend increase, today the board of directors of U.S. Bancorp (NYSE: USB) declared the Company’s first quarter dividend of $0.195 per common share, equal to the prior quarter’s dividend, payable April 15, 2013, to shareholders of record at the close of business on March 28, 2013. Additionally, the board of directors of U.S. Bancorp has approved a one-year authorization to repurchase up to $2.25 billion of its outstanding stock, beginning on April 1, 2013, to replace the current authorization, which expires on March 31, 2013. This represents a $370 million, or 20 percent, increase over the $1.88 billion of stock repurchased in full-year 2012. U.S. Bancorp’s common stock may be repurchased through March 2014 in the open market or in privately negotiated transactions. The acquired common shares will be held as treasury shares and may be reissued for various corporate purposes.

Wells Fargo & Co. (NYSE: WFC) announced today that the Federal Reserve Board (FRB) has not objected to the Company’s 2013 Capital Plan under the recently concluded Comprehensive Capital Analysis and Review (CCAR) of the nation’s largest banks. The Company confirmed that its 2013 Capital Plan includes a proposed dividend rate of $0.30 per share for the second quarter of 2013, subject to consideration and approval by its Board of Directors at its regularly scheduled meeting in April. The plan also includes a proposed increase in common stock repurchase activity for 2013 compared with 2012.

Following the Federal Reserve Board’s release of 2013 CCAR results, JPMorgan Chase & Co. (NYSE: JPM) today announced that: The Firm is authorized to repurchase an additional $6 billion of common equity between April 1, 2013 and March 31, 2014. The Board of Directors intends to declare the first quarter common stock dividend of $0.30 per share. The Board of Directors intends to increase the Firm’s quarterly common stock dividend to $0.38 per share, effective second quarter of 2013.

The Goldman Sachs Group, Inc. (NYSE: GS) announced that the Federal Reserve did not object to Goldman Sachs’ proposed capital actions, but, as required by the Federal Reserve, the company will resubmit its capital plan by the end of the third quarter, incorporating certain enhancements to its stress test processes.

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