Summary
Truist Financial Corporation (TFC), formerly BB&T Corporation, announced a significant increase in its common stock repurchase program, adding $200 million to its existing buyback plan for 2016-2017. This strategic move, approved by the Board of Directors following non-objection from the Federal Reserve, signals the company's confidence in its financial position and its commitment to returning value to shareholders. The additional repurchases are expected to be executed through an accelerated share repurchase (ASR) agreement before the end of 2016, with completion anticipated in early 2017. This $200 million increase is in addition to the $640 million in share repurchases previously authorized, bringing the total potential buyback authorization to $840 million. The ASR will be integrated into the company's existing 2015 Share Repurchase Plan, which still had approximately 46 million shares available as of September 30, 2016. This aggressive repurchase strategy aims to enhance shareholder returns by reducing the number of outstanding shares, potentially boosting earnings per share and overall stock value.
Key Highlights
- 1BB&T (now Truist Financial) announces a $200 million increase to its common stock repurchase program for 2016-2017.
- 2The additional buyback is to be executed via an accelerated share repurchase (ASR) agreement.
- 3The ASR is expected to be completed prior to the end of 2016 and into early 2017.
- 4This $200 million increase is in addition to a previously authorized $640 million in repurchases, totaling $840 million.
- 5The increase received non-objection from the Board of Governors of the Federal Reserve System.
- 6The repurchases will be part of the company's existing 2015 Share Repurchase Plan, with approximately 46 million shares remaining as of September 30, 2016.
- 7BB&T had already repurchased 4.1 million shares in the current quarter under its existing program.