28 US banks boost dividends in December 2021

Twenty-eight U.S. banks declared higher dividends in December 2021, fewer than the number of institutions that boosted payouts to shareholders in November and October, according to S&P Global Market Intelligence data.

Some 63 others kept their common equity dividends flat with the payout amount from the previous quarter, according to the data.

Farmers & Merchants Bancorp Inc. raised its dividend to 19 cents per share from the previous 18 cents per share, which President and CEO Lars Eller attributed in part to the positive effects of the company's recent acquisitions on its earnings. The Archbold, Ohio-based bank holding company completed its purchase of Perpetual FSB in October 2021.

Birmingham, Ala.-based ServisFirst Bancshares Inc. raised its dividend 15.0% to 23 cents per share, payable Jan. 7, while Los Angeles-based Preferred Bank will pay shareholders 43 cents per share Jan. 21, up 13.2% from its previous quarterly dividend. Camden National Corp. in Maine increased its payout 11.1% to 40 cents per share. The dividend will be paid Jan. 31.

Honesdale, Pa.-based Norwood Financial Corp. boosted its dividend to 28 cents per share, up 7.7% from its previous payout. Lewis Critelli, president and CEO of the company and its bank unit, said the dividend increase reflects the company's "financial strength and strong capital position," according to a news release.

Bank7 Corp. President and CEO Thomas Travis similarly cited robust earnings and a strong capital position as the Oklahoma City-based company increased its payout 9.1% to 12 cents per common share, payable Jan. 7.

TFS Financial Corp., based in Cleveland, and Kentucky First Federal Bancorp posted the highest dividend yields in December 2021, at 6.25% and 5.44%, respectively. Neither bank declared a dividend in the last month of the year.