TrustCo Bank Corp NY announced that its Board of Directors has approved a new share repurchase program that will allow the company to buy back up to 2,000,000 shares of common stock, roughly 11% of outstanding shares. The program follows a prior one‑million share buyback that was completed earlier in December 2025, underscoring the bank’s commitment to returning capital to shareholders and signaling confidence in its intrinsic value.
TrustCo’s most recent quarterly earnings, released in the same week, showed a strong performance that exceeded analyst expectations. Net income rose to $16.3 million, a 26.3% year‑over‑year increase, while earnings per share reached $0.86, beating the consensus estimate of $0.73 by $0.13 or 17.8%. Revenue of $47.81 million also surpassed the $47.27 million forecast by $0.54 or 1.1%. The earnings beat was driven by disciplined cost management and a favorable mix of loan and deposit growth, which helped maintain margins despite modest increases in operating expenses.
When compared to the prior quarter, TrustCo’s Q3 2025 results represent a 4.5% rise in revenue and a 3.2% increase in net income, indicating a steady acceleration in core banking activities. The year‑over‑year comparison shows revenue up 12.7% and net income up 26.3%, reflecting the bank’s ability to generate higher returns from its existing asset base while keeping leverage in check.
Management highlighted that the expanded buyback program is part of a broader strategy to optimize capital structure and enhance shareholder returns. CEO Robert J. McCormick stated, “As a company, we have determined that the best investment we can make is in ourselves. Our business model is sound and the transactional risk is low.” The decision follows a period of strong earnings and a robust dividend policy, with an annualized dividend of $1.52 per share, reinforcing the bank’s commitment to delivering value to investors.
Analysts noted the earnings beat and the new buyback authorization as positive signals of management’s confidence. The announcement was well received by investors, reflecting confidence in the bank’s financial health and its ability to generate sustainable cash flow. The expanded program also aligns with the bank’s long‑term capital allocation framework, which prioritizes share repurchases when the share price is deemed undervalued relative to intrinsic value.
The combination of a strong earnings beat, disciplined cost control, and a sizable share repurchase program positions TrustCo to continue delivering value to shareholders. The bank’s trajectory suggests that it will maintain a solid balance sheet, support dividend growth, and potentially increase the share count reduction pace, all of which are expected to support earnings per share growth in the coming quarters.
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