Comerica Directors Increase Quarterly Dividend 50% To $0.15; Authorize Purchase Of Additional Shares
The Board of Directors of Comerica (NYSE: CMA) Incorporated today increased the quarterly cash dividend for common stock 50 percent to 15 cents ($0.15) per share. The dividend is payable July 1, 2012, to common stock shareholders of record June 15, 2012.
These capital actions follow Comerica's announcement on March 14, 2012, that the Federal Reserve had completed its 2012 capital plan review and did not object to the Comerica capital plan and capital distributions contemplated in the plan. Comerica's capital plan provides for up to $375 million in equity repurchases for the period commencing the first quarter 2012 and ending the first quarter 2013. In conjunction with this plan, at its meeting today, the board increased the number of shares of common stock that Comerica is authorized to repurchase under its share repurchase program by approximately six million shares. This action is in addition to an existing authorization, bringing the total remaining common stock authorization to approximately 13 million shares. Shares will be purchased from time to time in the open market or otherwise. The shares may be held as treasury stock or retired.
Comerica today also announced that it has submitted a redemption notice to the trustee of Sterling Bancshares Capital Trust IV, which will result in the redemption on June 15, 2012 of all $25,000,000 of the floating rate capital securities issued by Sterling Bancshares Capital Trust IV at par, plus accrued and unpaid interest to the redemption date. The securities are callable under their existing arrangement. The redemption will be funded with existing available cash. Subsequent to the redemption, Comerica's Tier 1 Capital will be comprised entirely of common equity.
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