TrustCo Bank Corp NY (TRST) | Investment Case

1. Company Snapshot

1.a. Company Description

TrustCo 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.

Show Full description

1.b. Last Insights on TRST

TrustCo Bank Corp NY's recent performance was driven by robust growth in both loan and deposit portfolios, with net income increasing 17.7% year-over-year to $14.3 million. The company's repricing of its loan portfolio and well-managed cost of funds contributed to this growth. Additionally, Trustco Financial Services and Wealth Management income saw a 16.7% increase in fees and a 17.4% rise in assets under management to $1.2 billion. The company's stock repurchase program, authorizing the purchase of up to 1 million shares, or approximately 5% of its outstanding common stock, is also a positive development.

1.c. Company Highlights

Last Price	45.8
Change Percentage	0.48%
Open	45.58
Previous Close	45.58
Market Cap ( Millions)	844
Volume	291012
Year High	48.45
Year Low	27.18
M A 50	43.64
M A 200	37.91

FCF Yield	3.75%
Dividend Yield	3.23%
ROE	8.86%
Debt / Equity	28.09%
Net Debt / EBIDTA	158.51%
Price To Book	1.22
Price Earnings Ratio	13.69
Price To FCF	26.66
Price To sales	3.03
EV / EBITDA	10.99

2. TrustCo Bank Corp NY Delivers Strong Q4 2025 Results

TrustCo Bank Corp NY reported a robust 38% increase in net income for the fourth quarter of 2025, with net income reaching $15,600,000. Earnings per share (EPS) came in at $0.85, surpassing analyst estimates of $0.8. The company's net interest income was $43,700,000, up 12.4% from the prior year quarter, driven by a net interest margin of 2.82%. This strong financial performance was underpinned by a return on average assets of 0.978% and a return on average equity of 9.99%.

Publication Date: Jan -23

                                    📋 Highlights
                                    Net Income Surge::
                                                Q4 2025 net income rose 38% to $15.6M, with ROA at 0.978% and ROE at 9.99%.
Net Interest Income Growth::
                                                Increased 12.4% to $43.7M, supported by a 2.82% net interest margin.
Shareholder Value Outperformance::
                                                Returned triple the value of proxy peers YoY.
Capital Resilience::
                                                Equity-to-assets ratio at 10.66%, book value per share up 7.1% to $38.08.
Share Repurchase Momentum::
                                                Repurchased 533K shares in 2025; renewed $2M share buyback program for 2026.

                                

Loan Growth and Asset Quality

Average loans grew 2.5% to $5,200,000,000, with notable increases in home equity lines of credit (13.5%) and a modest growth in the residential real estate portfolio (1.2%). The provision for credit losses was $400,000, and non-performing loans modestly increased to $20,700,000. The company's asset quality remains stable, and management is optimistic about loan growth prospects in 2026.

Capital Management and Shareholder Returns

TrustCo Bank Corp NY's capital position remains strong, with a consolidated equity to assets ratio of 10.66% and a book value per share of $38.08, up 7.1% from the prior year. The company repurchased 533,000 shares of common stock in 2025, and the board has renewed the stock repurchase program, allowing for the repurchase of up to 2,000,000 shares in 2026. Total shareholder value returned three times that of its proxy peers year over year, highlighting the company's commitment to returning capital to shareholders.

Valuation and Outlook

At current levels, TrustCo Bank Corp NY trades at a Price-to-Tangible Book Value (P/TBV) of approximately 1.21, which is reasonable given its strong financial performance and growth prospects. The company's Dividend Yield stands at 3.25%, providing an attractive return for income-focused investors. With a Net Interest Margin (NIM) of 2.82%, TrustCo is well-positioned to benefit from potential interest rate changes. Management's guidance for 2026 total recurring non-interest expense, net of ORE expense, is expected to be in the range of $27.7 to $28,200,000 per quarter, indicating a stable operating environment.

3. NewsRoom

TrustCo Bank Corp NY $TRST Shares Sold by GSA Capital Partners LLP

Feb -18

Source: defenseworld.net

Delivering Shareholder Value, TrustCo Declares Dividend; Quarterly Payment of $0.38 Per Share

Feb -17

Source: globenewswire.com

TrustCo Bank: Mortgage Repricing And A Big Buyback Program

Feb -04

Source: seekingalpha.com

TrustCo Bank Corp NY (NASDAQ:TRST) Shares Cross Above 200 Day Moving Average – Time to Sell?

Feb -03

Source: defenseworld.net

Looking for 50% plus return in 2026? Buy these 2 European stocks today

Jan -28

Source: invezz.com

TrustCo Bank Corp NY (TRST) Q4 2025 Earnings Call Transcript

Jan -22

Source: seekingalpha.com

TrustCo Reports 2025 Net Income of $61.1 Million for the Year; Posts Total Shareholder Return Three Times That Of Peers

Jan -21

Source: globenewswire.com

Trustpilot momentum builds as growth broadens and profits surprise

Jan -14

Source: proactiveinvestors.co.uk

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.77%)

6. Segments

Community Banking

Expected Growth: 4.77%

TrustCo Bank Corp NY's 4.77% community banking growth is driven by strategic branch expansion, increased commercial lending, and a focus on customer relationships. Additionally, the bank's commitment to community development and small business support has contributed to its growth. Furthermore, effective cost management and a strong risk management framework have enabled the bank to maintain a stable net interest margin, supporting its overall growth.

7. Detailed Products

Personal Banking

TrustCo Bank Corp NY offers a range of personal banking services, including checking and savings accounts, credit cards, loans, and investment products.

Business Banking

TrustCo Bank Corp NY provides business banking services, including commercial loans, cash management, and merchant services, to help businesses grow and succeed.

Mortgage Lending

TrustCo Bank Corp NY offers a variety of mortgage loan options, including fixed-rate and adjustable-rate mortgages, to help individuals and families achieve homeownership.

Investment Services

TrustCo Bank Corp NY provides investment services, including brokerage, retirement, and wealth management, to help individuals and businesses achieve their financial goals.

Insurance Services

TrustCo Bank Corp NY offers insurance services, including life, disability, and long-term care insurance, to help individuals and businesses protect their assets.

Wealth Management

TrustCo Bank Corp NY provides wealth management services, including trust and estate services, to help individuals and families manage their wealth.

8. TrustCo Bank Corp NY's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for TrustCo Bank Corp NY is medium due to the presence of alternative banking services and financial institutions.

Bargaining Power Of Customers

The bargaining power of customers for TrustCo Bank Corp NY is low due to the lack of concentration of customers and the presence of multiple banking options.

Bargaining Power Of Suppliers

The bargaining power of suppliers for TrustCo Bank Corp NY is low due to the presence of multiple suppliers and the lack of concentration of suppliers.

Threat Of New Entrants

The threat of new entrants for TrustCo Bank Corp NY is high due to the low barriers to entry and the presence of new fintech companies.

Intensity Of Rivalry

The intensity of rivalry for TrustCo Bank Corp NY is high due to the presence of multiple competitors and the high level of competition in the banking industry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	17.14%
Debt Cost	3.95%
Equity Weight	82.86%
Equity Cost	8.15%
WACC	7.43%
Leverage	20.68%

11. Quality Control: TrustCo Bank Corp NY passed 3 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

TrustCo Bank Corp NY

A-Score: 6.6/10

Value: 5.5

Growth: 4.0

Quality: 7.6

Yield: 7.0

Momentum: 7.0

Volatility: 8.3

1-Year Total Return ->

Parke Bancorp

A-Score: 6.3/10

Value: 8.0

Growth: 4.4

Quality: 5.7

Yield: 7.0

Momentum: 4.0

Volatility: 8.7

1-Year Total Return ->

Unity Bancorp

A-Score: 6.2/10

Value: 6.0

Growth: 7.4

Quality: 7.6

Yield: 2.0

Momentum: 7.0

Volatility: 7.0

1-Year Total Return ->

BankUnited

A-Score: 6.0/10

Value: 6.0

Growth: 5.7

Quality: 5.8

Yield: 6.0

Momentum: 6.0

Volatility: 6.3

1-Year Total Return ->

Southside Bancshares

A-Score: 5.7/10

Value: 5.9

Growth: 5.6

Quality: 5.4

Yield: 7.0

Momentum: 2.5

Volatility: 8.0

1-Year Total Return ->

Merchants Bank

A-Score: 5.1/10

Value: 8.1

Growth: 6.6

Quality: 4.9

Yield: 2.0

Momentum: 3.0

Volatility: 6.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

16.37%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.43%

TrustCo Bank Corp NY - US8983492047

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on TRST

1.c. Company Highlights

Weak Momentum

Average Yield

Average Quality

Earnings Beats

Revenues Beats

Average Growth

Stable Momentum

Fairly Valued

Medium Volatility

Revenues Miss

Earnings Miss

2. TrustCo Bank Corp NY Delivers Strong Q4 2025 Results

Loan Growth and Asset Quality

Capital Management and Shareholder Returns

Valuation and Outlook

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.77%)

6. Segments

Community Banking

Expected Growth: 4.77%

7. Detailed Products

Personal Banking

Business Banking

Mortgage Lending

Investment Services

Insurance Services

Wealth Management

8. TrustCo Bank Corp NY's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: TrustCo Bank Corp NY passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

45.8$

Current Price

45.8$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA