GLENVILLE, N.Y. - TrustCo Bank Corp NY (NASDAQ:TRST) announced on Monday a quarterly cash dividend of $0.36 per share, which annualizes to $1.44 per share. This dividend is payable on October 1, 2024, to shareholders who are on record as of September 6, 2024.
Robert J. McCormick (NYSE:MKC), Chairman, President, and Chief Executive Officer of TrustCo, commented on the company's ability to maintain its dividend payments amid market uncertainties. "While investors and market-watchers are speculating about what will happen with interest rates, Trustco Bank delivers again this quarter with a consistent and meaningful dividend, as it has done each quarter for over a century," said McCormick. He highlighted the company's strength and liquidity as the basis for continuing this tradition.
TrustCo Bank Corp NY is recognized as a $6.1 billion savings and loan holding company and operates Trustco Bank, which has a network of 139 offices across New York, New Jersey, Vermont, Massachusetts, and Florida. The company is known for its long-standing tradition of over 100 years in providing a broad range of financial services, including various deposit and loan products. Trustco Bank's Wealth Management Department also offers investment services, retirement planning, and trust and estate administration services.
The company has been rated as one of the top-performing savings banks in the country. TrustCo's common shares are traded on the NASDAQ Global Select Market.
The press release also contains forward-looking statements, cautioning readers that actual future results could differ materially from the company's current expectations due to various risks and uncertainties. These risks include changes in economic conditions, interest rate policies, the impact of the war in Ukraine, and the effects of the COVID-19 pandemic, among others.
This announcement is based on a press release statement from TrustCo Bank Corp NY.
In other recent news, TrustCo Bank Corp reported a stable growth trajectory in its Q2 2024 earnings call. The bank's net income rose by 3.5%, while the net interest margin improved to 2.53%, up from the previous quarter. Additionally, TrustCo's loan portfolio saw a significant growth, with average loans reaching an all-time high of $5 billion, a 3.8% increase from Q2 2023.
The bank's conservative strategy and focus on liquidity, capital strength, and credit quality were highlighted as key factors in its performance. TrustCo also reported a decrease in nonperforming loans, maintaining strong asset quality. The bank's Wealth Management division continues to be a significant source of noninterest income, managing approximately $1.1 billion in assets.
Among the recent developments, TrustCo aims to maintain a balance between liquidity levels and the need to fund loans without resorting to brokered deposits or borrowing. However, the bank saw a notable decrease in fees for services to customers, primarily due to lower NSF fees. Despite this, TrustCo's Wealth Management division showed robust growth, contributing positively to noninterest income.
InvestingPro Insights
TrustCo Bank Corp NY (NASDAQ:TRST) recently declared a steady quarterly dividend, underscoring the company's commitment to shareholder returns. The announcement aligns with TrustCo's historical performance, as reflected in the InvestingPro data and tips that offer a deeper dive into the company's financial health.
One of the key InvestingPro Tips highlights TrustCo's impressive track record of increasing its dividend for three consecutive years, demonstrating its commitment to returning value to shareholders. Moreover, TrustCo has maintained dividend payments for an astonishing 43 consecutive years, reinforcing the bank's stability and reliability as an income-generating investment.
The InvestingPro Data sheds light on the company's valuation and profitability. TrustCo's market capitalization stands at $622.59 million, with a price-to-earnings (P/E) ratio of 12.75, slightly adjusting to 12.67 over the last twelve months as of Q2 2024. This suggests that the company is reasonably valued compared to its earnings. Additionally, TrustCo has a dividend yield of 4.32%, which is attractive to income-focused investors, especially considering its history of consistent dividend payments.
Investors may also take note of TrustCo's performance in the market. Over the last three months leading up to mid-2024, the company has seen a strong return of 17.71%, indicating positive momentum in its share price.
For those seeking further insights, InvestingPro offers additional tips on TrustCo Bank Corp NY, which can be found at https://www.investing.com/pro/TRST. These tips provide valuable information for investors looking to make informed decisions about their investments in the financial sector.
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