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Trustco Bank Corp NY (TRST)
NASDAQ:TRST
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TrustCo Bank
(NASDAQ:TRST)
74Outperform
TrustCo Bank (TRST) vs. S&P 500 (SPY)
Market Cap
$531.41M
Dividend Yield5.15%
Average Volume (3M)104.69K
Price to Earnings (P/E)10.9
Beta (1Y)0.81
Revenue Growth6.97%
EPS Growth-16.70%
CountryUS
Employees791
SectorFinancial
Sector Strength86
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.56
Shares Outstanding19,019,749
10 Day Avg. Volume119,196
30 Day Avg. Volume104,692
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.37
Price to Cash Flow (P/CF)10.10
P/FCF Ratio4.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
TrustCo Bank Business Overview & Revenue Model
Company DescriptionTrustCo Bank (TRST) is a regional bank that provides a wide range of banking and financial services to individuals, businesses, and municipalities. The bank operates primarily in the Northeastern United States, with a strong presence in New York. TrustCo Bank offers core banking products such as checking and savings accounts, certificates of deposit, and personal and commercial loans. Additionally, the bank provides mortgage banking services, wealth management, and investment advisory services to its customers.
How the Company Makes MoneyTrustCo Bank makes money primarily through interest income generated from its lending activities, including personal loans, commercial loans, and mortgages. The bank also earns revenue from fees associated with its various banking services, such as account maintenance fees, transaction fees, and overdraft charges. Additionally, TrustCo Bank benefits from the interest rate spread between the interest it pays on customer deposits and the interest it earns on loans and investments. The bank's investment portfolio, including government securities and other financial instruments, further contributes to its earnings. TrustCo Bank's partnerships with other financial institutions and service providers may also enhance its revenue through collaborative services and product offerings.
TrustCo Bank Financial Statement Overview
Summary
TrustCo Bank maintains a solid financial standing with strong equity and low leverage. Profitability margins have slightly declined, but the bank remains efficient in generating cash. Potential risks include pressure on profit margins and a need for careful management of liabilities.Income Statement
TrustCo Bank demonstrates stable revenue with a slight decline in recent years. The Gross Profit Margin remains strong at 100% due to the nature of the banking industry. However, the Net Profit Margin decreased from 30.8% in 2022 to 28.4% in 2024, reflecting cost pressures or reduced efficiency. The absence of EBIT and EBITDA in the latest year suggests a change in reporting or operational challenges.70
Positive
Balance Sheet
The Balance Sheet reveals a healthy financial position with a low Debt-to-Equity ratio of 0.06, indicating conservative leverage. The Equity Ratio of 10.8% shows a solid foundation, although it slightly decreased from previous years, suggesting increased liabilities. Return on Equity improved to 7.2% in 2024, indicating efficient use of equity resources.85
Very Positive
Cash Flow
Operating Cash Flow to Net Income Ratio is healthy, showing strong cash generation relative to earnings. Free Cash Flow to Net Income Ratio also remains robust. However, Free Cash Flow Growth has declined recently, which could indicate increased capital expenditures or decreased cash inflows.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 171.77M | 190.16M | 189.95M | 178.34M | 170.75M | Gross Profit |
| 171.77M | 146.10M | 189.95M | 178.34M | 170.75M | EBIT |
| 0.00 | 94.47M | 95.33M | 82.13M | 69.45M | EBITDA |
| 0.00 | 88.40M | 109.97M | 92.72M | 79.58M | Net Income Common Stockholders |
| 48.83M | 58.65M | 75.23M | 61.52M | 52.45M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 405.55M | 578.00M | 650.60M | 456.07M | 486.27M | Total Assets |
| 6.24B | 6.17B | 6.00B | 6.20B | 5.90B | Total Debt |
| 40.16M | 44.47M | 171.68M | 297.41M | 267.54M | Net Debt |
| -7.21M | -4.80M | 128.25M | 249.05M | 220.34M | Total Liabilities |
| 5.56B | 5.52B | 5.40B | 5.60B | 5.33B | Stockholders Equity |
| 676.34M | 645.28M | 599.99M | 601.13M | 568.16M |
| Cash Flow | Free Cash Flow | |||
| 54.56M | 58.46M | 74.84M | 52.52M | 58.33M | Operating Cash Flow |
| 59.44M | 64.13M | 78.63M | 55.37M | 62.16M | Investing Cash Flow |
| -3.75M | -233.59M | -416.63M | -175.26M | -35.35M | Financing Cash Flow |
| 8.12M | 96.87M | -230.87M | 232.26M | 623.44M |
TrustCo Bank Technical Analysis
Negative
27.56
Price Trends
31.11
Negative
32.51
Negative
32.28
Negative
Market Momentum
-0.31
Negative
45.05
Neutral
31.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRST, the sentiment is Negative. The current price of 27.56 is below the 20-day moving average (MA) of 29.83, below the 50-day MA of 31.11, and below the 200-day MA of 32.28, indicating a bearish trend. The MACD of -0.31 indicates Negative momentum. The RSI at 45.05 is Neutral, neither overbought nor oversold. The STOCH value of 31.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TRST.
TrustCo Bank Risk Analysis
TrustCo Bank disclosed 35 risk factors in its most recent earnings report. TrustCo Bank reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
TrustCo Bank Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $533.41M | 10.31 | 10.52% | 1.90% | 17.53% | 19.94% | |
74 Outperform | $531.41M | 10.89 | 7.39% | 5.15% | 6.97% | -16.70% | |
70 Outperform | $511.72M | 10.79 | 8.78% | 4.11% | 13.46% | -21.20% | |
68 Neutral | $542.79M | 13.37 | 5.95% | 5.90% | 3.35% | -37.36% | |
64 Neutral | $13.21B | 9.26 | 9.39% | 4.87% | 16.14% | -8.87% | |
63 Neutral | $528.55M | 12.16 | -5.77% | 8.55% | -14.04% | -155.40% | |
60 Neutral | $513.19M | 17.80 | 5.64% | 3.50% | 62.98% | -45.76% |
* Financial Sector Average
Performance Comparison
TRST
TrustCo Bank
27.56
2.47
9.84%
THFF
First Financial Indiana
42.72
8.50
24.84%
HTBK
Heritage Commerce
8.26
0.77
10.28%
ORRF
Orrstown Financial Services
26.16
1.85
7.61%
SMBC
Southern Missouri Bancorp
47.36
7.78
19.66%
WASH
Washington Bancorp
26.12
2.99
12.93%
TrustCo Bank Earnings Call Summary
Earnings Call Date: Jan 21, 2025 | % Change Since: -14.25% | Next Earnings Date: Apr 21, 2025
Earnings Call Sentiment Positive
The earnings call reflects a generally positive outlook with significant growth in net income, strong loan growth, and stable credit quality. However, there are some challenges with a slight decline in net interest margin and increased noninterest expenses. The expansion into the cannabis industry presents new opportunities for growth.Highlights
Increase in Net Income and Return on Equity
The company's net income for the fourth quarter of 2024 was $11.3 million, a 14.6% increase over the prior year quarter, with a return on average equity of 6.70%.
Strong Loan Growth
Average loans for the fourth quarter of 2024 grew by 2.1% or $104.9 million, reaching an all-time high of $5.1 billion. Home equity lines of credit increased by 17.9%.
Stable Capital Position
The consolidated equity to assets ratio was 10.84% for the fourth quarter of 2024, up from 10.46% in the fourth quarter of 2023.
Low Nonperforming Loans and Net Charge-offs
Nonperforming loans stood at 0.37% of total loans, while net charge-offs for the quarter amounted to $102,000, showing strong credit quality.
Expansion into Cannabis Industry
The company is offering its services to the cannabis industry, leveraging its extensive branch network to serve cash-intensive retail outlets.
Lowlights
Decline in Net Interest Margin
Net interest margin for the fourth quarter of 2024 was 2.60%, down 1 basis point from the prior quarter.
Increase in Noninterest Expense
Total noninterest expense net of ORE expense came in at $27.7 million, up $1.7 million from the prior quarter due to higher costs in equipment and outsourced services.
Company Guidance
During the TrustCo Bancorp Q4 2024 earnings call, the company provided several key metrics reflecting their financial health and strategic direction. TrustCo reported a net income of $48.8 million for the year, with a fourth-quarter net income of $11.3 million, marking a 14.6% increase from the previous year. The efficiency ratio was noted at 61.5%, while the return on average equity was nearly 7.5%. The capital ratio stood strong at 10.84%, up from 10.46% the prior year, and the book value per share increased by 4.8% to $35.56. The bank also saw growth in average loans, which rose by 2.1% year-over-year to $5.1 billion, driven by a 17.9% increase in home equity lines of credit. TrustCo emphasized their focus on maintaining credit quality, with nonperforming loans at 0.37% of total loans and net charge-offs at 0.01%. Looking ahead, the bank remains optimistic about real estate opportunities and is expanding into the cannabis industry, leveraging its extensive branch network to support cash-intensive retail outlets.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.