GRAND RAPIDS, Mich. - The board of Old Kent Financial Corp. has declared a 3 cent, or 13%, increase in the regular quarterly dividend, to 26 cents a share. The new annual rate is $1.04, up from 92 cents, and is payable Dec. 15 to shareholders of record on Nov. 15.
Old Kent, which has $8.7 billion in assets, also boosted the Sept. 15 quarterly dividend by 11.3%, to 23 cents. And it issued shares in connection with a 3-for-2 split.
Powered by younger, affluent cardholders, American Express saw a 6% increase in billed business during the first quarter, while weak growth still plagues its small-business segment.
For the better part of the past decade, the Federal Reserve Board in Washington has played a more active role in presidential searches by regional reserve banks. The shift seems to have made the system more diverse, but some argue it's at the expense of regional bank independence.
Beth Johnson, a self-described math geek, is driving the bank's ESG strategy and training its employees to keep pace with industry trends.
The Cleveland-based bank is projecting steady growth in net interest income even as credit losses remain manageable. But Chairman and CEO Chris Gorman also said that he thinks a recession is likely.
The first-quarter increase involved commercial real estate loans, including some problematic multifamily loans and an office credit, but none of the criticized loans were to consumers, officials at the Dallas company say. Further CRE deterioration is anticipated.
The Detroit-based company is exploring ways to make more consumer auto loans without running afoul of stricter capital standards that are expected from the Federal Reserve. Possible approaches include more securitizations and the use of credit risk transfers.
