TrustCo announces stock repurchase program

Published 18/03/2025, 21:06
TrustCo announces stock repurchase program

GLENVILLE, N.Y. - TrustCo Bank Corp NY (NASDAQ:TRST), a savings and loan holding company with a market capitalization of $576.3 million, has initiated a stock repurchase plan authorizing the buyback of up to 1 million shares, which is about 5% of its current outstanding shares. The repurchase program, announced Monday, allows for the shares to be bought back through various methods, including open market or private transactions, block trades, and potentially under a Rule 10b5-1 trading plan. According to InvestingPro data, the company has maintained dividend payments for 44 consecutive years, demonstrating a strong commitment to shareholder returns.

Robert J. McCormick, Chairman, President, and CEO of TrustCo, expressed confidence in the program, stating it is a strategic capital deployment that could enhance shareholder value, especially if the stock is undervalued relative to the company’s robust business performance.

The timing and volume of repurchases are at the discretion of management and will depend on a range of factors, including stock availability, market conditions, stock trading price, alternative capital uses, and the company’s financial performance. TrustCo has clarified that the repurchase activities will be carried out in compliance with legal requirements and may be adjusted, halted, or terminated at any time due to various factors, including market conditions and investment opportunities.

TrustCo Bank Corp NY, with a history spanning over a century, operates 136 offices across five states and offers a broad spectrum of financial services. The company’s Wealth Management Department provides investment services, retirement planning, and trust and estate administration. TrustCo Bank has been recognized as one of the top-performing savings banks in the U.S.

The repurchase program does not obligate the company to acquire any specific number of shares. This announcement is based on a press release statement, and the program is expected to be executed over the next twelve months, subject to the aforementioned conditions.

In other recent news, TrustCo Bank Corp NY reported its fourth-quarter earnings for 2024, which showed mixed financial results. The company posted earnings per share (EPS) of $0.59, falling short of the analysts’ forecast of $0.64. Revenue also did not meet expectations, coming in at $43.31 million compared to the anticipated $43.88 million. Despite these misses, TrustCo Bank saw a 14.6% increase in net income year-over-year, reaching $11.3 million. In addition to its financial results, TrustCo Bank announced the launch of new cannabis banking services in multiple states, including New York and Massachusetts. The company plans to expand its commercial loan portfolio and remains optimistic about the real estate market’s recovery. Looking ahead, TrustCo Bank has projected EPS growth for the coming quarters, with expectations of $0.65 in Q1 2025 and $0.69 in Q2 2025.

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