Stockholders' Equity

12 Months Ended

Dec. 31, 2020

Equity [Abstract]

Stockholders' Equity

Note 25—Stockholders’ Equity

A summary of the Company’s preferred and common stock at December 31, 2021 and 2020 is as follows:

	2021		2020
Series B 7.5% fixed to floating non-cumulative    perpetual preferred stock
Par value per share	$	0.01	$	0.01
Liquidation preference per share		1,000		1,000
Shares authorized		50,000		50,000
Shares issued		10,438		10,438
Shares outstanding		10,438		10,438
Common stock, voting
Par value	$	0.01	$	0.01
Shares authorized		150,000,000		150,000,000
Shares issued		39,203,747		38,736,540
Shares outstanding		37,713,903		38,618,054
Treasury shares		1,489,844		118,486

During 2016, the Company authorized and issued Series B 7.50% fixed-to-floating non-voting, noncumulative perpetual preferred stock with a liquidation preference of $1,000 per share, plus the amount of unpaid dividends, if any, which is redeemable at the Company’s option on or after March 31, 2022. Holders of Series B Preferred Stock do not have any rights to convert such stock into shares of any other class of capital stock of the Company. To the extent declared by the Company’s Board of Directors, holders of Series B Preferred Stock are entitled to receive a fixed dividend of 7.50% per annum from the original issue date through December 30, 2021, after which any dividends declared accrue at a floating rate of three-month LIBOR plus 5.41% per annum.

The Series B Preferred Stock is included in Tier 1 capital for regulatory capital purposes and is redeemable at the option of the Company at a redemption price equal to the liquidation preference of $1,000 per share, plus any declared and unpaid dividends (i) in whole or part on any dividend payment date on or after March 31, 2022, and (ii) in whole but not in part prior to March 31, 2022, within 90 days following a regulatory event, as defined in the Certificate of Designations of the Series B Preferred Stock. The Company may be required to receive approval of the FRB prior to any redemption of the Series B Preferred Stock.

For the years ended December 31, 2021, and 2020 the Company declared and paid dividends on the Series B Preferred Stock of $783,000.

Note 25—Stockholders’ Equity (continued)

Total cash dividends declared and paid on the Company’s common stock during the year ended December 31, 2021 were $11.4 million, or $0.30 per share, an increase of 150.0% per share from $4.6 million, or $0.12 per share, for the year ended December 31, 2020. In December 2019, the Company’s Board of Directors declared the first cash dividend on the common stock, and for the year ended December 31, 2019, cash dividends declared and paid totaled $1.1 million, or $0.03 per share.

On February 15, 2022, the Company gave notice of its intention to redeem all of its outstanding shares of the Series B Preferred Stock (the “Preferred Stock Redemption”). The Preferred Stock Redemption is in accordance with the terms of the Certificate of Designations of the Series B Preferred Stock dated as of June 16, 2017 (the “Certificate of Designation”). There are 10,438 shares of Series B Preferred Stock currently outstanding. The redemption date for the Series B Preferred Stock is March 31, 2022 (the “Redemption Date”). Under the Certificate of Designations, the per share redemption price will be the liquidation preference of $1,000 per share plus an amount equal to any declared and unpaid dividends thereon for any prior dividend period (the “Redemption Price”). Holders of the Series B Preferred Stock will have no further rights as stockholders of the Company and in lieu thereof will have only the right to receive the Redemption Price, without interest, after the Redemption Date.

On December 10, 2020, the Company announced that its Board of Directors approved a stock repurchase program authorizing the purchase of up to an aggregate of 1,250,000 shares of the Company’s outstanding common stock, and on July 27, 2021, the Company's Board of Directors authorized an expansion of its current stock repurchase program. Under the extended program, the Company is authorized to repurchase an additional 1,250,000 shares of the Company's outstanding common stock. The shares may, at the discretion of management, be repurchased from time to time in open market purchases as market conditions warrant or in privately negotiated transactions. The Company is not obligated to purchase any shares under the program, and the program may be discontinued at any time. The actual timing, number and share price of shares purchased under the repurchase program will be determined by the Company at its discretion and will depend on a number of factors, including the market price of the Company’s stock, general market and economic conditions and applicable legal requirements. The shares authorized to be repurchased represent approximately 2.8% of the Company’s outstanding common stock at December 31, 2021. The program will be in effect until December 31, 2022 unless terminated earlier.

The Company purchased 1,331,708 shares at a cost of $28.9 million under this program during the year ended December 31, 2021. Repurchased shares are recorded as treasury shares on the trade date using the treasury stock method, and the cash paid is recorded as treasury stock. Treasury stock acquired is recorded at cost and is carried as a reduction of stockholders’ equity in the Consolidated Statement of Financial Condition.

On November 1, 2019, the Company announced that its Board of Directors approved a stock repurchase program authorizing the purchase of up to an aggregate of 1,250,000 shares of the Company’s outstanding common stock. Under this stock repurchase program that terminated on December 31, 2020, the Company purchased 118,486 shares of the 1,250,000 total shares authorized for repurchase under that program at a cost of $1.7 million during the year ended December 31, 2020.

On January 25, 2022, the Company’s Board of Directors declared a cash dividend of $0.09 per share payable on February 22, 2022, to stockholders of record of the Company’s common stock as of February 8, 2022.