DETROIT -- Direction of Comerica Inc. approved last Friday plans to redeem its Series B preferred stock and to buy back 500,000 shares of its common. It has 59.9 million shares outstanding.
The preferred shares will be purchased for $50 each plus accrued and unpaid dividends on Dec. 31. The dividend yield on the stock is 8.65%. The outstanding preferred totals about $836,000.
Comerica common shares were up sharply on the announcement, trading at $58 late in the day, up 87.5 cents.
The Jackson, Mississippi, company will use proceeds from the sale of its Fisher Brown Bottrell Insurance unit to restructure its investment portfolio, moving $1.6 billion of low-yield securities off the balance sheet.
The store-branded card issuer is raising annual percentage rates and adding fees for paper statements to compensate for lost revenue. The Consumer Financial Protection Bureau's new regulation is scheduled to take effect on May 14.
At the banks' annual meetings, shareholders at both companies struck down proposals that would have split the board chair and CEO roles. Two other proposals also failed to win shareholder support, one concerning energy financing and another on pay gap analysis.
Congressional Review Act resolutions are ramping up ahead of the 2024 election cycle. Experts say that, although none are likely to become law, the resolutions are still powerful messaging and political tools.
The ABA is testing an information-exchange network to allow banks to share their fraud data with each other. Companies including Baselayer are also building solutions.
Republicans on the House and Senate Small Business committees are accusing the SBA of being irresponsible in granting Funding Circle permission to participate in its flagship loan-guarantee program.
