Back to top

Image: Shutterstock

TrustCo Bank (TRST) Rewards Shareholders With Buyback Plan

Read MoreHide Full Article

TrustCo Bank Corp NY (TRST - Free Report) announced a stock buyback plan. The company’s board of directors approved a program, under which, TRST may repurchase up to 0.2 million shares or 1% of its outstanding current stock.

The repurchases will be made at management’s discretion over the next 12 months.

The company’s last buyback plan expired on Mar 17, 2024. On Mar 17, 2023, TRTS’s board of directors approved a share repurchase program of up to 0.2 million shares.

In addition to share repurchases, the company pays regular quarterly dividends. On Feb 20, 2024, TrustCo Bank declared a quarterly cash dividend of 36 cents per share. The dividend is scheduled to be paid out on Apr 1 to shareholders of record as of Mar 1.

Based on last day’s closing price of $28.16, the company’s annualized dividend yield is currently pegged at 5.11%.

In the last five years, TRST increased its dividend payout twice. The company has a payout ratio of 47% of earnings. Additionally, it has a five-year annualized dividend growth rate of 1.54%.

Supported by a strong balance sheet and liquidity position, TrustCo Bank is expected to keep boosting shareholder value through efficient capital distribution activities.

Over the past six months, TRST shares have gained 3.4% compared with the industry’s 15.8% rally.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Share Buyback Plans of Other Finance Firms

Last month, FB Financial Corp. (FBK - Free Report) announced a share repurchase program, under which, it is authorized to buy back up to $100 million worth of shares. The plan is set to expire on Jan 31, 2026.

The new repurchase plan replaced the company’s prior authorization, which expired on Jan 31, 2024. In 2023, FBK bought back 136,262 shares of its common stock. As of Dec 31, 2023, approximately $61 million worth of shares remained under the old repurchase plan.

Christopher T. Holmes, the president and chief executive officer of FBK, stated, “This repurchase authorization reflects the Company’s financial strength and strong profitability. Our management team is keenly focused on deploying capital to deliver superior returns and to create long-term value. This program provides another arrow in our quiver to achieve those objectives.”

Likewise, Guaranty Bancshares, Inc. (GNTY - Free Report) announced a new share repurchase program, under which, it is authorized to buy back 1.25 million shares. The plan will remain in place till Apr 21, 2026, or till the repurchase of all the shares authorized.

The new program will replace the 2022 share repurchase authorization once it expires on Apr 21, 2024. Under the older plan, GNTY was authorized to buy back 1 million shares. Last year, the company repurchased 0.43 million shares. As of Dec 31, 2023, 0.37 million shares remained available under the program.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


TrustCo Bank Corp NY (TRST) - free report >>

FB Financial Corporation (FBK) - free report >>

Guaranty Bancshares Inc. (GNTY) - free report >>

Published in