Among the regional banks covered by Credit Suisse, Siegenthaler expects that dividend yields in 2012 will still be the highest for "the small cap banks," but also said that "these names also have higher risk that dividends could get cut over time given the higher earnings payout ratios."
  • Bank of Hawaii (BOH) pays a quarterly dividend of 45 cents a share, for a dividend yield of 4.28%, based on Wednesday's closing price of $42.04. With $81 million in dividends and buybacks of $85 million expected for 2012, Siegenthaler expects the company to pay out 100% of its earnings in 2012. The analyst expects the dividend to remain unchanged next year, with buybacks declining to $68 million, for a combined payout ratio of 97% in 2013.
  • Fulton Financial (FULT) of Lancaster, Pa., pays a quarterly dividend of eight cents a share, for a dividend yield of 3.46%, based on Wednesday's closing price of $9.26. Siegenthaler expects the company's total payout ratio for 2012 to be 66%, including $60 million in dividends and $44 million in buybacks. The analyst expects the company to raise its quarterly dividend slightly next year, with total dividends of $62 million and buybacks rising to $77 million, for a total payout ratio of 90%.
  • Valley National Bancorp (VLY) of Wayne N.J., pays a quarterly dividend of 16 cents, for a yield of 7.34%, based on Wednesday's closing price of $8.72. Siegenthaler estimates the company's 2012 total payout ratio will be 85%, with $126 million in dividends and no buybacks The analyst expects the payout to remain the same in 2013, again with no buybacks, but that the payout ratio will climb to 92% as earnings decline slightly.


-- Written by Philip van Doorn in Jupiter, Fla.

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Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.

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