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Trustco Bank Corp NY (TRST)
NASDAQ:TRST

TrustCo Bank (TRST) AI Stock Analysis

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TrustCo Bank

(NASDAQ:TRST)

77Outperform
TrustCo Bank's strong financial foundation, attractive valuation, and positive earnings outlook contribute to its solid stock performance. Key strengths include low leverage, healthy equity ratios, and consistent cash flow generation. Potential risks involve managing profit margins and expense control.

TrustCo Bank (TRST) vs. S&P 500 (SPY)

TrustCo Bank Business Overview & Revenue Model

Company DescriptionTrustCo Bank Corp NY operates as the holding company for Trustco Bank, a federal savings bank that provides personal and business banking services to individuals, partnerships, and corporations. The company accepts deposits; and offers loans and investments. It also operates as a real estate investment trust that acquires, holds, and manages real estate mortgage assets, including residential mortgage loans and mortgage-backed securities. In addition, the company serves as the executor of estates and trustee of personal trusts; provides asset and wealth management, estate planning and related advice, and custodial services; and acts as trustee for various types of employee benefit plans, and corporate pension and profit-sharing trusts. As of December 31, 2021, it operated through 147 banking offices and 163 automatic teller machines in New York, New Jersey, Vermont, Massachusetts, and Florida. The company was founded in 1902 and is headquartered in Glenville, New York.
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
70
Positive
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.
Balance Sheet
85
Very Positive
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.
Cash Flow
75
Positive
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.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
171.77M190.16M189.95M178.34M170.75M
Gross Profit
171.77M146.10M189.95M178.34M170.75M
EBIT
0.0094.47M95.33M82.13M69.45M
EBITDA
0.0088.40M109.97M92.72M79.58M
Net Income Common Stockholders
48.83M58.65M75.23M61.52M52.45M
Balance SheetCash, Cash Equivalents and Short-Term Investments
405.55M578.00M650.60M456.07M486.27M
Total Assets
6.24B6.17B6.00B6.20B5.90B
Total Debt
40.16M44.47M171.68M297.41M267.54M
Net Debt
-7.21M-4.80M128.25M249.05M220.34M
Total Liabilities
5.56B5.52B5.40B5.60B5.33B
Stockholders Equity
676.34M645.28M599.99M601.13M568.16M
Cash FlowFree Cash Flow
54.56M58.46M74.84M52.52M58.33M
Operating Cash Flow
59.44M64.13M78.63M55.37M62.16M
Investing Cash Flow
-3.75M-233.59M-416.63M-175.26M-35.35M
Financing Cash Flow
8.12M96.87M-230.87M232.26M623.44M

TrustCo Bank Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price30.91
Price Trends
50DMA
30.36
Positive
100DMA
31.71
Negative
200DMA
32.39
Negative
Market Momentum
MACD
0.10
Negative
RSI
55.67
Neutral
STOCH
91.40
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRST, the sentiment is Neutral. The current price of 30.91 is above the 20-day moving average (MA) of 29.15, above the 50-day MA of 30.36, and below the 200-day MA of 32.39, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 55.67 is Neutral, neither overbought nor oversold. The STOCH value of 91.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$579.15M11.377.63%4.67%5.63%-3.82%
74
Outperform
$593.97M10.5711.12%1.71%13.46%8.31%
68
Neutral
$584.58M15.307.85%3.09%75.72%-41.36%
66
Neutral
$556.96M13.266.12%5.75%5.10%-24.91%
65
Neutral
$585.56M10.6810.02%3.77%16.84%-1.03%
63
Neutral
$12.46B9.568.14%17044.64%12.63%-4.25%
58
Neutral
$532.02M12.16-5.43%8.12%-18.44%-157.94%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TRST
TrustCo Bank
30.91
4.52
17.13%
THFF
First Financial Indiana
49.45
13.56
37.78%
HTBK
Heritage Commerce
9.08
1.31
16.86%
ORRF
Orrstown Financial Services
29.91
4.32
16.88%
SMBC
Southern Missouri Bancorp
52.67
12.05
29.67%
WASH
Washington Bancorp
27.96
3.48
14.22%

TrustCo Bank Earnings Call Summary

Earnings Call Date:Apr 21, 2025
(Q1-2025)
|
% Change Since: 8.72%|
Next Earnings Date:Jul 28, 2025
Earnings Call Sentiment Positive
The earnings call reflects a robust start to 2025, characterized by strong deposit and loan growth, increased commercial lending, and significant improvement in net income and interest margin. The bank maintains a solid capital position and continues to manage non-performing loans effectively. However, increased non-interest expenses and limited residential loan growth present areas of concern. Overall, the positive aspects significantly outweigh the challenges.
Q1-2025 Updates
Positive Updates
Strong Deposit Growth
Every category of deposits is up, including low-cost core and business accounts. Deposits ended the quarter at $5.5 billion, up $142 million compared to the prior year quarter.
Increase in Commercial Lending
Commercial lending is up 8%, with the total now topping $300 million.
Loan Portfolio Growth
Average loans for the first quarter of 2025 grew by 2.1% or $104.7 million to an all-time high of $5.1 billion. Home equity lines increased by $61 million or 17.3%.
Record Net Income and Margin Improvement
First quarter net income increased by 17.7% over the prior year quarter to $14.3 million. Net interest margin improved by more than 8% year-over-year to 2.64%.
Strong Capital Position
Consolidated equity to assets ratio increased to 10.85%, up 3% year-over-year. Shareholders' equity rose by 6%.
Non-Performing Loans Remain Low
Non-performing loans to total loans remained flat at a negligible 0.37%.
Share Repurchase Program
Announced a stock repurchase program of up to 1 million shares, approximately 5% of the current outstanding shares, as part of capital management strategy.
Negative Updates
Increase in Non-Interest Expenses
Total non-interest expense, net of ORE expense, increased by $1.4 million from the prior year quarter due to higher costs in salaries, equipment, and professional services.
Limited Residential Loan Growth
Residential mortgages only increased by $26.2 million over last year, indicating slower growth in this segment compared to others.
Company Guidance
During the TrustCo Bank Corp earnings call, the company reported a strong start to the fiscal year 2025, highlighting significant growth in both loans and deposits. Total deposits rose by $142 million year-over-year, reaching $5.5 billion, driven by increased engagement in digital channels and a focus on low-cost core and business accounts. Commercial lending experienced an 8% increase, surpassing $300 million, while total loans grew by over $100 million compared to the first quarter of the previous year. TrustCo's net interest margin improved by more than 8%, now standing at 2.64%, contributing to a 27% increase in return metrics, including earnings per share of $0.75. The bank's consolidated equity to assets ratio improved to 10.85%, supporting a share repurchase program of up to 1 million shares. Additionally, non-performing loans remained low at 0.37% of total loans, underscoring TrustCo's exceptional asset quality. The company emphasized its strategic focus on relationship banking and maintaining financial stability in a dynamic environment, anticipating opportunities from potential interest rate reductions.
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.