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Ally Financial in Detroit drew more deposits into its online bank last quarter, which helped improve its lending margin even as profits declined.
October 29 -
The auto lender, which has been operating under tight regulatory restrictions since its bailout during the financial crisis, will now be allowed to use its federally insured deposit base to fund more of its loan portfolio.
July 28 -
Ally Financial faced tough questions Thursday about its strategy in the wake of the Detroit automaker's decision to use its own in-house financing arm for its entire subsidized lease business.
January 29
Ally Financial in Detroit plans to redeem about $1.3 billion of preferred stock, opening the door to a possible stock buyback next year.
The $156 billion-asset company received approval from the Federal Reserve to redeem 1.3 million shares of fixed-rate cumulative perpetual preferred stock. Ally will redeem the shares at $1,000 each, plus accrued dividends and fees, bringing the final price to $1,005.64 per share. Ally plans to complete the redemption on Dec. 14.
The preferred stock has accrued a 7% yearly dividend, terms that were set during the financial crisis. Removing that burden may lead to a share-repurchase program next year, Chief Executive Jeffrey Brown said in a Friday news release.
"Addressing this remaining legacy security will remove the restriction the company had on offering common equity distributions and position Ally to meet its objective of initiating a dividend and share repurchase program in 2016," Brown said.
Ally initially issued about $2.6 billion of preferred stock in this series. In April, Ally redeemed about half of the preferred shares.
