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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.

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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

2. TrustCo Bank Corp NY's Q3 2025 Earnings: Strong Performance and Growth

TrustCo Bank Corp NY reported a net income of $16.3 million for the third quarter of 2025, a 26.3% increase from the prior year quarter. The company's net interest income was $43.1 million, up 11.5% from the prior year quarter, driven by a net interest margin of 2.79%. Earnings per share (EPS) came in at $0.86, beating analyst estimates of $0.73. The company's return on average assets and average equity were 1.02% and 9.29%, respectively. The efficiency ratio decreased by almost 9% compared to the same period last year, indicating improved operational efficiency.

Publication Date: Nov -23

📋 Highlights
  • Net Income Growth:: Q3 2025 net income rose 26.3% Y/Y to $16.3M, driven by 11.5% increase in net interest income to $43.1M.
  • Loan Portfolio Expansion:: Total loans hit $5.2B (up 2.5% Y/Y), with home equity loans surging 15.7% and commercial loans rising 12.4%.
  • Asset Quality:: Non-performing loans fell to $18.5M (0.36% of total loans) and credit loss coverage reached 281% ($51.9M allowance).
  • Capital Efficiency:: ROAA improved to 1.02% (+21.4% Y/Y) and ROAE to 9.29% (+20% Y/Y), with an efficiency ratio decline of ~9%.

Loan Portfolio Growth and Asset Quality

The company's loan portfolio grew 2.5% year-over-year, reaching an all-time high of $5.2 billion. Home equity loans increased 15.7%, residential mortgages grew 0.8%, and commercial loans grew 12.4% over the same period. Asset quality remains strong, with non-performing loans declining to $18.5 million and non-performing loans to total loans decreasing to 0.36%. The allowance for credit losses was $51.9 million, with a coverage ratio of 281%, indicating a robust provisioning against potential credit losses.

Capital Management and Share Repurchase

The company repurchased 298,000 shares of common stock during the quarter and has the ability to repurchase another 533,000 shares under the program. The stock repurchase program reflects the company's confidence in its long-term strength and focus on capital optimization. Book value per share was $37.30, up 6% from the prior year, and the company's equity to assets ratio was 10.9%.

Outlook and Valuation

The company expects meaningful net interest income upside in quarters to come, driven by the repricing of its CD portfolio, with about $1 billion in CDs maturing over the next four to six months at an average rate of 3.75%. Analysts estimate next year's revenue growth at 11.0%. With a Price-to-Tangible Book Value (P/TBV) ratio of 1.14 and a Dividend Yield of 3.51%, the stock appears reasonably valued. The company's strong asset quality, growing loan portfolio, and improving efficiency ratio support its long-term growth prospects.

3. NewsRoom

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American Century Companies Inc. Buys 26,482 Shares of TrustCo Bank Corp NY $TRST

Dec -03

Source: defenseworld.net

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TrustCo Bank Corp NY (NASDAQ:TRST) Sets New 1-Year High – Still a Buy?

Nov -23

Source: defenseworld.net

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TrustCo Reinforces Commitment to Shareholders with Quarterly Dividend; Highlighting Over 120 Years of Uninterrupted Payments

Nov -19

Source: globenewswire.com

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Campbell & CO Investment Adviser LLC Acquires Shares of 12,026 TrustCo Bank Corp NY $TRST

Nov -17

Source: defenseworld.net

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TrustCo Bank Corp NY (TRST) Q3 2025 Earnings Call Transcript

Oct -22

Source: seekingalpha.com

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TrustCo Announces Net Income Up 26.3%; Net Interest Income up 11.5%; The Product of Strategic Vision and Effective Tactics

Oct -21

Source: globenewswire.com

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TrustCo Bank: I'm A Buyer At These Levels

Oct -17

Source: seekingalpha.com

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TrustCo to Release Third Quarter 2025 Results on October 21, 2025; Conference Call on October 22, 2025

Oct -10

Source: globenewswire.com

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

Strength

Weaknesses

Opportunities

Threats

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

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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TrustCo Bank Corp NY

A-Score: 6.7/10

Value: 5.8

Growth: 4.0

Quality: 7.3

Yield: 8.0

Momentum: 6.5

Volatility: 8.3

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Parke Bancorp

A-Score: 6.6/10

Value: 8.0

Growth: 4.4

Quality: 6.0

Yield: 7.0

Momentum: 6.0

Volatility: 8.0

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Unity Bancorp

A-Score: 6.3/10

Value: 6.6

Growth: 7.4

Quality: 6.4

Yield: 3.0

Momentum: 8.0

Volatility: 6.7

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Southside Bancshares

A-Score: 6.0/10

Value: 6.2

Growth: 5.6

Quality: 5.8

Yield: 8.0

Momentum: 2.5

Volatility: 8.0

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BankUnited

A-Score: 5.9/10

Value: 6.7

Growth: 5.8

Quality: 4.8

Yield: 6.0

Momentum: 5.5

Volatility: 6.3

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Merchants Bank

A-Score: 4.9/10

Value: 8.2

Growth: 6.6

Quality: 5.0

Yield: 2.0

Momentum: 1.5

Volatility: 6.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

42.57$

Current Price

42.57$

Potential

-0.00%

Expected Cash-Flows