BOSTON--(BUSINESS WIRE)--State Street Corporation (NYSE:STT) today announced that it will redeem $500 million, or 5,000 of its 7,500 outstanding shares, of its non-cumulative perpetual preferred stock, Series F on March 15, 2021, for cash at a redemption price of $100,000 per share (equivalent to $1,000 per depositary share) plus all declared and unpaid dividends (the “Redemption Price”). As separately announced, a cash dividend of $953.38 per share of Series F Preferred Stock (or approximately $9.5338 per depositary share) has been declared for the period from December 15, 2020 up to but not including March 15, 2021. The March Dividend will be paid separately to the holders of record of the Series F Preferred Stock as of March 1, 2021 in the customary manner. Accordingly, there will not be any declared and unpaid dividends included in the Redemption Price.
Separately, as previously announced, in December 2020 the Federal Reserve lifted the moratorium on common share repurchases in place since the third quarter of last year for several large financial institutions, including State Street. As a result, we expect to resume common share repurchases this quarter. Like other large financial institutions, we are authorized by the Federal Reserve to make common share repurchases in Q1 2021 in an amount such that a) common equity distributions, inclusive of dividends paid in the quarter (capped at current levels), do not exceed average 2020 quarterly net income, plus b) a number of shares equal to the share issuances in the quarter related to expensed employee compensation. State Street expects to announce details of a first quarter 2021 common share repurchase program along with its fourth quarter and full year 2020 results on January 19, 2021. The common share repurchase program is subject to approval by our Board of Directors.
“We are pleased to continue to optimize our capital structure through the redemption of approximately $500 million of preferred stock and the planned resumption of our common share repurchase program,” said Ron O’Hanley, President and Chief Executive Officer. “Our strong balance sheet performance under stress and elevated capital levels will enable us to begin the return of capital and to further optimize our capital mix, benefitting our shareholders.”
About State Street Corporation
State Street Corporation (NYSE:STT) is one of the world's leading providers of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $36.6 trillion in assets under custody and/or administration and $3.1 trillion* in assets under management as of September 30, 2020, State Street operates globally in more than 100 geographic markets and employs approximately 39,000 worldwide. For more information, visit State Street's website at www.statestreet.com.
