GLENVILLE — TrustCo Bank Corp NY will ask shareholders to approve a 5-1 reverse split of its common stock.
The Glenville bank holding company filed notice with the U.S. Securities and Exchange Commission on Tuesday. In an accompanying news release, it made no mention of its reasons for proposing the split.
However, President and CEO Robert J. McCormick has noted publicly that TrustCo has about three times more shares outstanding (96.5 million) than the average among its peers.
A reverse split has no financial impact on shareholders — the value of their investment and the amount of their dividend would remain the same.
Shares of TrustCo Bank Corp NY closed at $6.81 on Wednesday. If the reverse split is approved, five $6.80 shares would become one $34 share.
The company’s subsidiary, Trustco Bank, operates 148 bank locations in five states.