Officials of TrustCo Bank Corp. announced Tuesday they will cut the company’s dividend by nearly half in order to strengthen its opportunities for growth in the future.
Members of the bank’s board of directors expect the dividend will be reduced from 11 cents per share to 6.25 cents per share beginning in May. Commenting on the cut, board Chairman Robert J. McCormick said the company is aware of the importance of the cash dividend to shareholders and remains committed to continuing the long history of making these payments.
“We also need to be responsive to the dramatic changes in the banking environment and the added costs that are being assessed on the industry,” he said in a statement. “Retaining capital to support growth and to provide added cushion for the future is prudent in this environment.”
The Glenville-based company is a $3.5 billion bank holding company. Through its subsidiary, Trustco Bank, operates more than 125 offices in New York, Florida, Massachusetts, New Jersey and Vermont. It is not among the banks seeking aid through the federal government’s Troubled Asset Relief Program.