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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
$567.65M
Dividend Yield4.79%
Average Volume (3M)81.24K
Price to Earnings (P/E)11.7
Beta (1Y)0.93
Revenue Growth6.97%
EPS Growth-16.70%
CountryUS
Employees808
SectorFinancial
Sector Strength77
IndustryBanking
Share Statistics
EPS (TTM)2.56
Shares Outstanding19,010,433
10 Day Avg. Volume94,017
30 Day Avg. Volume81,236
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.34
Price to Cash Flow (P/CF)8.70
P/FCF Ratio4.30
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 Corp. NY is a savings and loan holding company, which through its subsidiary, engages in the provision of banking and financial services to individuals, partnerships, and corporations. It offers checking accounts, savings accounts, retirement accounts, time deposits, money market accounts, and credit cards. It also provides asset and wealth management services; estate planning and related advice; credit cards; trust and investment services; custodial services, and online banking services. The company was founded in 1981 and is headquartered in Glenville, NY.
How the Company Makes MoneyTrustCo Bank generates revenue primarily through interest income from its lending activities, which include mortgages, personal loans, and commercial loans. The bank earns interest by charging borrowers a higher interest rate on loans than it pays on customer deposits. Additionally, TrustCo Bank derives income from non-interest sources, such as fees for account maintenance, overdrafts, and other banking services. Investment services also contribute to its revenue stream, although to a lesser extent. The bank's profitability is influenced by factors such as interest rate fluctuations, loan demand, and its ability to manage credit risk effectively.
TrustCo Bank Financial Statement Overview
Summary
TrustCo Bank displays solid profitability and operational efficiency, supported by strong margins and cash flow metrics. However, the declining revenue trend and asset base may pose future challenges. The balance sheet is well-managed with low leverage, but attention to growth strategies will be crucial to sustain long-term performance.Income Statement
TrustCo Bank shows strong gross and net profit margins, with TTM gross profit margin at 82.42% and net profit margin at 35.16%. However, the revenue growth rate from the previous year to TTM is negative, indicating a decline in revenue. The bank maintains healthy EBIT and EBITDA margins, suggesting operational efficiency despite the recent revenue challenges.78
Positive
Balance Sheet
The bank's balance sheet reveals a robust equity ratio of 10.95% in the TTM, indicating a reasonable amount of equity financing. The debt-to-equity ratio is low at 0.14, showing conservative leverage. ROE is high at 7.08% for TTM, reflecting good profitability relative to equity. Despite these strengths, the decline in total assets and stockholders' equity over recent periods is a concern.75
Positive
Cash Flow
TrustCo Bank demonstrates a strong free cash flow, with a consistent positive trend. The TTM free cash flow growth rate is 2.43%, and the operating cash flow to net income ratio is 1.33, indicating strong cash flow generation relative to net income. The bank's cash flow stability supports its financial flexibility and capability to invest or manage debt without strain.80
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 134.82M | 190.16M | 189.95M | 178.34M | 170.75M | 174.40M | Gross Profit |
| 111.11M | 146.10M | 189.95M | 178.34M | 170.75M | 174.40M | EBIT |
| 64.18M | 94.47M | 95.33M | 82.13M | 69.45M | 76.51M | EBITDA |
| 50.74M | 88.40M | 109.97M | 92.72M | 79.58M | 86.50M | Net Income Common Stockholders |
| 47.40M | 58.65M | 75.23M | 61.52M | 52.45M | 57.84M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 589.53M | 578.00M | 650.60M | 456.07M | 486.27M | 622.02M | Total Assets |
| 5.16B | 6.17B | 6.00B | 6.20B | 5.90B | 5.22B | Total Debt |
| 216.50M | 44.47M | 171.68M | 297.41M | 267.54M | 205.22M | Net Debt |
| 173.44M | -4.80M | 128.25M | 249.05M | 220.34M | 157.02M | Total Liabilities |
| 4.65B | 5.52B | 5.40B | 5.60B | 5.33B | 4.68B | Stockholders Equity |
| 501.72M | 645.28M | 599.99M | 601.13M | 568.16M | 538.26M |
| Cash Flow | Free Cash Flow | ||||
| 59.88M | 58.46M | 74.84M | 52.52M | 58.33M | 59.90M | Operating Cash Flow |
| 62.92M | 64.13M | 78.63M | 55.37M | 62.16M | 63.80M | Investing Cash Flow |
| -37.58M | -233.59M | -416.63M | -175.26M | -35.35M | -248.76M | Financing Cash Flow |
| -9.63M | 96.87M | -230.87M | 232.26M | 623.44M | 138.10M |
TrustCo Bank Technical Analysis
Negative
29.92
Price Trends
31.98
Negative
33.35
Negative
31.88
Negative
Market Momentum
-0.62
Positive
30.46
Neutral
5.65
Positive
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 29.92 is below the 20-day moving average (MA) of 31.96, below the 50-day MA of 31.98, and below the 200-day MA of 31.88, indicating a bearish trend. The MACD of -0.62 indicates Positive momentum. The RSI at 30.46 is Neutral, neither overbought nor oversold. The STOCH value of 5.65 is Positive, 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $567.65M | 11.71 | 7.39% | 4.79% | 6.97% | -16.70% | |
73 Outperform | $962.68M | 10.09 | 5.95% | 4.81% | 7.54% | -2.82% | |
65 Neutral | $901.58M | 12.58 | 10.25% | 3.94% | 41.65% | 668.73% | |
64 Neutral | $13.80B | 10.64 | 9.23% | 4.22% | 17.66% | -7.66% | |
46 Neutral | $432.86M | 16.43 | -4.49% | 6.75% | -3.66% | -196.64% |
* Financial Sector Average
Performance Comparison
TRST
TrustCo Bank
29.92
4.27
16.65%
FFIC
Flushing Financial
13.01
1.07
8.96%
OCFC
Oceanfirst Financial
16.81
2.27
15.61%
TMP
Tompkins Financial Corporation
63.55
16.58
35.30%
TrustCo Bank Earnings Call Summary
Earnings Call Date: Jan 21, 2025 | % Change Since: -6.91% | Next Earnings Date: Apr 28, 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.